carrollton-farmers branch independent school district

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Highland Park Independent School District
Dallas, Texas
Comprehensive Annual Financial Report
for the
Fiscal Year Ended August 31, 2013
Prepared by:
Business Services Department
Kris Ingersoll, CPA, RSTBA
Director of Business Services
Tim Turner, CPA, RSTBA
Assistant Superintendent
For Business Services
.
HIGHLAND PARK INDEPENDENT SCHOOL DISTRICT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED AUGUST 31, 2013
TABLE OF CONTENTS
Exhibit
Page
Introductory Section
Certificate of Board
Letter of Transmittal
School Administration
Consultants and Advisors
Organization Chart
GFOA Certificate
ASBO Certificate
Map of Highland Park
Financial Section
Independent Auditor’s Report
Management's Discussion and Analysis
A-1
B-1
C-1
C-2
C-3
C-4
D-1
D-2
D-3
E-1
E-2
F-1
G-1
G-2
G-3
G-4
G-5
G-6
Basic Financial Statements
Government-Wide Statements:
Statement of Net Position
Statement of Activities
Governmental Funds Financial Statements:
Balance Sheet
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
Statement of Revenues, Expenditures, and Changes in Fund Balance
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures
and Changes in Fund Balance to the Government-Wide Statement of Activities
Proprietary Fund Financial Statements:
Statement of Revenues, Expenses, and Changes in Fund Net Position
Statement of Cash Flows
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position
Statement of Changes in Fiduciary Net Position
Notes to the Basic Financial Statements
Required Supplementary Information
Budgetary Comparison Schedule - General Fund
Notes to Required Supplementary Information
Supplementary Information - Combining and Individual Statements and Schedules
Nonmajor Governmental Funds:
Combining Balance Sheet
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Budgetary Comparison Schedule - Debt Service Fund
Nonmajor Enterprise Funds:
Combining Statement of Net Position
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position
Combining Statement of Cash Flows
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4
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED AUGUST 31, 2013
TABLE OF CONTENTS - CONTINUED
Exhibit
Page
Supplementary Information - Combining and Individual Statements and Schedules
Private Purpose Trust Funds
Combining Statement of Net Position
Combining Statement of Changes in Fiduciary Fund Net Position
Agency Funds:
Combining Statement of Changes in Assets and Liabilities - All Agency Funds
Other TEA Schedules:
Schedule of Delinquent Taxes Receivable
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Statistical Section (unaudited):
S
Statistical Section Narrative
S-1
Net Position by Component
S-2
Change in Net Position
S-3
Fund Balances, Governmental Funds
S-4
Governmental Funds Revenues
S-5
Governmental Funds Expenditures and Debt Service Ratio
S-6
Governmental Funds, Other Financing Sources and Uses and Net Change in Fund Balance
S-7
Assessed Value and Actual Value of Taxable Property
S-8
Direct and Overlapping Property Tax Rates
S-9
Principal Property Taxpayers
S-10
Property Tax Levies and Collections
S-11
Ratios of General Bonded Debt Outstanding
S-12
Direct and Overlapping Governmental Activities Debt
S-13
Legal Debt Margin Information
S-14
Demographic and Economic Statistics
S-15
Top Ten Principal Employers
S-16
Full-Time-Equivalent District Employees by Type
S-17
Teacher Average Salary and FTE Counts
S-18
Operating Statistics
S-19
School Building Information
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G-7
G-8
G-9
H-1
Reports on Internal Control, Compliance, and Federal Awards
Report on Internal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in Accordance
with Government Auditing Standards
Independent Auditor's Report on Compliance for Each Major Program and on
Internal Control over Compliance Required by OMB Circular A-133
Schedule of Expenditures of Federal Awards
Notes to the Schedule of Expenditures of Federal Awards
Schedule of Findings and Questioned Costs
Summary of Prior Year Audit Findings
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Introductory Section
Dallas County, 057-911
Certificate of Board
We, the undersigned, certify that the attached Comprehensive Annual Financial Report of the
Highland Park Independent School District for the fiscal year ended August 31, 2013, was reviewed
and approved at a meeting of the Board of Trustees of the Highland Park Independent School
District on January 21, 2014.
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7015 Westchester Drive, Dallas Texas 75205
(214) 780-3000 Fax (214) 780-4019
www.hpisd.org
January 21, 2014
Board of Trustees and the Taxpayers of the Highland Park Independent School District:
The Texas Education Code requires that all school districts file a complete set of
financial statements with the Texas Education Agency (TEA) within 150 days of the
close of each fiscal year. The financial statements must be presented in conformity with
general accepted accounting principles (GAAP) and audited by a firm of licensed
certified public accountants in accordance with generally accepted auditing standards.
Pursuant to that requirement, we hereby issue the Comprehensive Annual Financial
Report (CAFR) of the Highland Park Independent School District (the District) for the
fiscal year ended August 31, 2013.
This report consists of management’s representations concerning the finances of the
District. Responsibility for both the accuracy of the presented data and the completeness
and fairness of the presentation, including all disclosures, rests with the District. We
believe the information presented is accurate in all material aspects; that it is presented
in a manner designed to fairly set forth the financial position and the results of operations
of the District as measured by the financial activity of its various funds; and that all
disclosures necessary to enable the reader to gain an understanding of the District’s
financial activities have been included.
Weaver and Tidwell, LLP, Dallas, Texas, a firm of licensed certified public accountants,
have audited the financial statements of the District. The goal of the independent audit
is to provide reasonable assurance that the financial statements of the District for the
fiscal year ended August 31, 2013 are free of material misstatement. The independent
audit involves 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; and evaluating the overall financial
statement presentation. The independent auditor concluded, based upon the audit, that
there was a reasonable basis for rendering an unqualified opinion that the District’s
financial statements for the fiscal year ended August 31, 2013, are fairly presented in
conformity with GAAP. The independent auditor’s report is presented as the first
component of the financial section of this report.
GAAP require that management provide a narrative introduction, overview, and analysis
to accompany the basic financial statements in the form of Management’s Discussion
and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and
should be read in conjunction with it. The District’s MD&A is found immediately following
the report of the independent auditor.
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Profile of the District
The District opened its first campus, John S. Armstrong School in 1914 with ninety-five
students, three teachers and a principal. The residents of the District elect a sevenmember Board of Trustees (the “Board”). The seven members of the Board serve,
without compensation, a three-year term of office. On a rotating basis, two or three
places are filled during annual elections held in May. In 2014, the election will be held
on May 10th. Vacancies may be filled by appointment until the next election. Candidates
must be qualified voters of the District.
Regular meetings are scheduled the second Tuesday of every month with the exception
of the month of July when there is no Board meeting. Special meetings and study
sessions are scheduled as needed and announced in compliance with public notice
requirements.
The Board has final control over local school matters limited only by the state legislature,
by the courts, and by the will of the people as expressed in school board elections.
Board decisions are based on a majority vote of those present.
In general, the Board adopts policies, sets direction for curriculum, and employs the
Superintendent, who oversees the operations of the District and its schools. Along with
general Board business, Trustees are charged with numerous statutory regulations that
include calling trustee and other school elections, canvassing the results, organizing the
Board, and electing its officers. The Board is also responsible for setting the tax rate,
setting salary schedules, acting as a board of appeals in personnel and student matters,
confirming recommendations for textbook adoptions, and adopting and amending annual
budgets for the General Fund and the Debt Service Fund.
The District serves three communities within a six square mile area located in north
central Dallas County and is surrounded by the Dallas Independent School District. The
Town of Highland Park, City of University Park and City of Dallas are the three different
municipalities served by the District.
The small community is known as the “Park
Cities.” There is no raw land for residential, commercial, or industrial development.
Southern Methodist University is located in the District.
The District provides a quality public education program for children from kindergarten
through grade 12. In addition to the basic instructional programs, the District offers
special education, gifted and talented, bilingual/ESL, remedial, college preparatory, and
career and technical programs. The District is fully accredited by the Texas Education
Agency.
Since the opening of the first campus in 1914, it has become apparent that the
preservation of a quality education is a priority in the community. The District has
attained a national standing for excellence due to the generous support of the
community and the deep commitment of faculty and staff. This affiliation paralleled with
an atmosphere set upon high expectations, results in a phenomenal educational
environment.
The District currently has four elementary schools (grades K-4), an intermediate school
(grades 5-6), a middle school (grades 7-8), and one high school (grades 9-12).
Enrollment for the 2013-14 year is 7,034, an increase of 186 students from the previous
year. Highland Park High School graduated 474 seniors in 2013.
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The District’s mission statement is as follows: “The Highland Park Independent School
District, with an unyielding commitment to excellence, will provide an exceptional
academic program that recognizes the unique potential of each student and integrates
the intellectual, social, cultural and physical aspects of learning. This program will
empower each student to become an eager lifelong learner committed to academic
excellence, integrity, responsible citizenship and service to others.”
To accomplish its mission, the District attracts highly qualified personnel to teach an
individualized educational program in all grade levels. A student-centered approach to
learning through the use of a widely diversified curriculum is the educational philosophy
of the District. A high degree of professionalism exists among District employees, and
an on-going recognition of student and staff excellence contributes to this environment.
The HPISD schools have long been committed to excellence in education. The District’s
students continue to win academic and co-curricular honors in district, state and national
competitions. District staff, likewise, is recognized as outstanding educators and
professionals by their peers in Texas and throughout the nation.
Long Range Planning
Much of the District's instructional program planning is done using the District and
Campus Improvement Plans. The plans demonstrate the commitment to increase
student achievement for all students. Campus Improvement Plans address specific
needs of students at individual campuses. The District and Campus Improvement Plans
include annual goals for improving student achievement and objective evaluation criteria
for measuring success.
The annual budget serves as the foundation for the District’s financial planning and
control. This process begins in January. The District’s Finance Committee sets budget
targets and provides oversight for the budget development process. In addition, multiyear budget targets are established so that future finance challenges can be addressed
and met. The Finance Committee is comprised of district administrators, all members of
the Board, and community members.
Based on the parameters set forth, all district managers are required to submit to the
District’s Business Services Department their requests for appropriations for the next
school year. The requests are compiled, summarized, and provided to the Finance
Committee for review and discussion. Upon approval of the Finance Committee, a
preliminary budget is then presented and discussed with the Board at one or more public
budget workshops. The proposed budget is prepared by August 20th for the September
1 fiscal year start date. The Board president calls a board meeting for the purpose of
discussing and adopting the budget and the tax rate. A notice of this meeting is required
to be published at least 10 days, but not more than 30 days before the public meeting.
The budget is adopted prior to August 31st for a September 1 fiscal year start date.
Internal Controls
Management of the District is responsible for establishing and maintaining an internal
control structure. In addition, management is to ensure that the District’s assets are
protected from loss, theft, or misuse, and to ensure that adequate accounting data are
compiled to allow for the preparation of financial statements are in conformity with
generally accepted accounting principles. The internal control structure is designed to
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provide reasonable, but not absolute, assurance that these objectives are met. The
concept of reasonable assurance recognizes that:
•
The cost of a control should not exceed the benefits likely to be derived.
•
The valuation of costs and benefits requires estimates and judgments by
Management.
As a recipient of state financial assistance, the District’s internal control structure is
designed to ensure District compliance with applicable laws and regulations related to
this assistance.
This internal control structure is subject to periodic evaluation by
Management and independent auditors.
The District’s internal control structure includes budgetary, as well as accounting
controls. The objective of budgetary controls is to ensure compliance with legal
provisions embodied in the official budget adopted by the Board. The Board adopts an
official budget for the general fund and the debt service fund. In accordance with
procedures prescribed by the State Board of Education, the Board must approve budget
amendments that affect the total amount in a fund or functional spending category prior
to the expenditure of the funds. The functional level is specified by the Board policy as
the legal level of budgetary control.
Budgetary control is maintained at the
organizational level by the encumbrance of estimated purchase amounts prior to the
release of purchase orders to vendors. Outstanding encumbrances at the end of the
fiscal year are a reserve of fund balance and are treated as expenditures in the
subsequent year upon receipt of the goods or services.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when
it is considered within the broader perspective of the specific environment in which the
District operates.
Introduction. The District is located in the Park Cities community, north central Dallas
County, approximately three miles north of downtown Dallas. The Park Cities
community is considered one of the finest communities in which to live in Dallas County
because of the outstanding public schools, distinguished homes and excellent public
service departments. In addition, the Park Cities community is one of the wealthiest
communities in Texas.
Population. The Texas Department of State Health Services estimates the population
in Dallas County at 2,508,741 for 2013. The estimated population for the Park Cities is
34,600.
Local economy. Dallas has established a national reputation as an economic force.
The economic stability of the Park Cities provides a solid tax base for the District. The
largest employers in the Park Cities are Southern Methodist University, the District, and
the municipalities. In the Dallas Area, major employers include AMR Corporation, Dallas
ISD, Walmart, Verizon Communications Inc., SBC Communications, Texas Health
Resources, City of Dallas, Baylor Health Care System, UT Southwestern Medical City,
Medical City of Dallas, and the U.S. Postal Service. There are many other major
employers in Dallas County providing products or services in the industries of
telecommunications, retail, health services, financial services, military aircraft design,
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restaurants, and many other areas. The diverse economy and highly skilled work force
contributes to the strengths of the Dallas Area.
The District’s tax base has grown 5 percent over the previous year. For tax year 2013,
the Dallas County Appraisal District certified that, as of July 2013, the total market value
of all real and business personal property, before qualified exemptions, was
$15,488,842,000. The taxable value for the same property was $11,733,798,388.
Residential property makes up 87 percent of the taxable value on the tax roll. The
District is required to provide a $15,000 homestead exemption for qualified homeowners.
In addition to State required exemptions, the District offers the maximum local
homestead exemption of twenty percent, thereby reducing the taxable value of the
average home to approximately $1,110,000.
Major Accomplishments and Initiatives
As reflected in the District’s mission statement, activities of the District focus on learning
opportunities for students. The following information reflects the degree of success that
both the District and its students have accomplished in both academics, extra and cocurricular activities:
•
All seven Highland Park Independent School District campuses were named
National Center for Educational Achievement higher performing schools.
•
In the last seven years, the Highland Park Independent School District and all
seven of its campuses were rated “Exemplary” by the Texas Education Agency,
the highest possible rating.
•
Highland Park High School was named among the Top High Schools in the country
in 2013 by Newsweek magazine. The publication listed HPHS in the 86th spot.
•
Highland Park High School earned the 92nd spot on U.S. News & World Report’s
Gold Medal list of the top 100 high schools in 2012.
•
In the 2013 year, 1,095 students took 2,719 AP tests, with 70% scoring a 3, 4 or 5.
•
Highland Park High School students posted a composite score of 1780 (617 in
math, 588 in critical reading and 575 in writing) on the 2013 Scholastic Aptitude
Test (SAT).
•
In 2013, Highland Park High School students earned a composite score of 26.7 on
the ACT, surpassing both state and national averages. The Texas state average
score increased to a high of 20.9, while the national average was also 20.9.
•
Approximately 98% of 2011-12 graduates matriculated to institutions of higher
education.
•
Scholarships offered to the Class of 2012 exceeded $14.8 million.
•
In 2013, eight Highland Park High School students were named National Merit
Semifinalists by the National Merit Scholarship Corporation. Thirty students were
named National Merit Commended students and four were named National
Hispanic Scholars.
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•
In 2013, the Highland Park High School science team won the UIL 4A State
Competition for the eight consecutive year.
•
In 2013, three Highland Park High School band students and three choir students
were named All-State and performed at the Texas Music Educators’ Association
convention.
•
In 2013, the Highland Park Debate Team won the UIL 4A Texas Forensic
Association State Championship.
•
In 2013, the HPHS tennis team won the UIL 4A state tournament for the sixth
consecutive year for 15 state titles overall.
•
In 2013, the Highland Park Blue Wave Girls Swim and Dive team won the UIL 4A
State meet for the 12th time in 13 years.
•
In 2013, the boys “Blue” Golf team won the UIL State Championship.
•
In 2013, the wrestling team Coach was named State 4A Coach of the Year.
•
District staff and students were awarded 20 awards at the Texas School Public
Relations Association Conference, including Best of Category Award.
Student Demographic Study. During the 2009-10 school year, Population and Survey
Analysts, Inc. completed a student demographic study within District boundaries in the
following areas of concern: housing projections; ratios of students per household;
student enrollment projections, and long range planning. The scenario of most-likely
growth projections shows a projected increase of 759 students over the next five years,
with an additional 217 students projected by the 2018-19 school year. Therefore, by fall
2016, Highland Park ISD could have a projected enrollment of 7,529 students and by fall
2018 a total of 7,746 students. Annual growth rates could range from 1.2% to 2.5%.
District Facilities. Currently, the District is able to house all students under the
individual campuses. In 2013, the District began capital projects to the Intermediate and
Middle School campus to include expanding the cafeteria area and refinishing out a
6400 square foot shell space into three classrooms. The final cost of the project was
approximately $3.7 million and was completed in the fall of 2013.
The cafeteria project renovated 12,066 square feet of dining and kitchen space while
adding an additional 6,512 square feet of the same space. A security entry way was also
included in the renovations. The increased area will serve the projected student
population in the grades 5-8 for future years.
Projects completed in the 2012-13 year, included remodeling bathrooms and the media
center at one elementary campus; replacing the field turf and installing additional
handrails at the football stadium; remodeling a District owed building that is used by the
Highland Park Education Foundation; and remodeling a custodial house at one of the
elementary campuses.
The facility upgrades over the last three years accommodates the current enrollment of
students and will be adequate for several more years. However, the District is looking
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into how further expansion can be done at the existing campuses if enrollment exceeds
a project 8,000 by the end of the decade.
Component Unit. The Government-wide financial statements for the District include
one component unit, the Highland Park Education Foundation. The entity is a separate
503(c)(3) entity that has the sole purpose of raising funds for the District. The component
unit has its own Board of Trustees that is separate from the District’s Board of Trustees.
The financial information provided has been audited by a separate audit firm than the
Districts’ but has provided their financial data to Weaver and Tidwell, LLP for review and
inclusion into the District’s financial statements.
Awards and Acknowledgments
GFOA Certificate of Achievement. The Governmental Finance Officers Association of
the United States and Canada (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to Highland Park Independent School District for its
comprehensive annual financial report for the fiscal year ended August 31, 2012. This
was the 15th consecutive year that the District has achieved this prestigious award. In
order to be awarded a Certificate of Achievement, a government must publish an easily
readable and efficiently organized comprehensive annual financial report. This report
satisfied both generally accepted accounting principles and applicable legal
requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our
current CAFR continues to meet the Certificate of Achievement Program’s requirements
and we are submitting it to the GFOA to determine its eligibility for another certificate.
ASBO Certificate of Excellence. The Association of School Business Officials (ASBO)
has awarded the Certificate of Excellence in Financial Reporting to the District for 15
consecutive years. This award is for school districts whose comprehensive annual
financial reports substantially conform to the recommended principles and standards of
financial reporting adopted by that organization. The award is granted only after an
intensive review of financial reports by an expert panel of certified public accountants
and practicing school business officials. Management believes that the CAFR for the
fiscal year ended August 31, 2013, which will be submitted to ASBO for review, also
conforms to their principles and standards.
FIRST (Financial Integrity Rating System of Texas). Highland Park Independent
School District received a rating of "Superior Achievement" under Texas' Schools FIRST
financial accountability rating system. The Superior Achievement rating is the state's
highest, demonstrating the quality of the Highland Park ISD's financial management and
reporting system. This is the 11th consecutive year Highland Park ISD has received the
superior rating.
Schools FIRST (Financial Integrity Rating System of Texas) is a financial accountability
system for Texas school districts developed by the Texas Education Agency in response
to Senate Bill 875 of the 76th Texas Legislature in 1999. The primary goal of Schools
FIRST is to achieve quality performance in the management of school districts' financial
resources, a goal made more significant due to the complexity of accounting associated
with Texas' school finance system. The accountability system was established in 2003.
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The preparation of this report would not have been possible without the efficient and
dedicated services of the entire staff of the Business Services Department. We want to
express our appreciation to all members who assisted and contributed to the preparation
of this report. We would also like to thank the members of the Board of Trustees for
their interest and support in planning and conducting the financial operations of the
District in a responsible and progressive manner.
Respectfully submitted,
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School Administration
Elected Officials
Board of Trustees
Leslie L. Melson
President
Jim Hitzelberger
Vice-President
Cynthia Beecherl
Secretary
Joe Taylor
Finance Officer
Kelly Walker
Member
Paul Rowsey
Member
Sam Dalton
Member
Appointed Officials
Superintendent of Schools
Dr. Dawson R. Orr
Assistant Superintendent for Business Services
Timothy Turner
Assistant Superintendent for Curriculum, Instruction, and Special Programs
Gena Gardiner
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Consultants and Advisors
Architects
SHW Group Inc Architects + Engineers
4000 McEwen Road North
Dallas, Texas 75244-5083
Auditors
Weaver and Tidwell, LLP
12221 Merit Drive
Suite 1400
Bond Counsel
Vinson & Elkins, L.L.P.
3700 Trammell Crow Center
2001 Ross Avenue
Depository Bank
PlainsCapital Bank
8200 Douglas Avenue, Ste 200
Dallas, Texas 75225
Financial Advisors
Dain Rauscher Incorporated
Cityplace, Suite 2400
2711 North Haskell Avenue
General Counsel
Thompson & Knight, L.L.P.
One Arts Plaza
1722 Routh Street, Suite 1500
Dallas, Texas 75201
Fiscal Agent
The Bank of New York Mellon Trust Company, N.A.
600 North Pearl Street
Suite 420
Dallas, Texas 75201
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Organization Chart
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Financial Section
INDEPENDENT AUDITOR'S REPORT
To the Board of Trustees
7015 Westchester Drive
Dallas, Texas 75205
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, the discretely presented component unit, each major fund, and the
aggregate remaining fund information of Highland Park Independent School District (the
District), as of and for the year ended August 31, 2013, and the related notes to the financial
statements, which collectively comprise the District’s basic financial statements as listed in the
table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States of
America; this includes the design, implementation, and maintenance of internal control relevant
to the preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
did not audit the financial statements of the Highland Park I.S.D. Education Foundation, the
discretely presented component unit. Those financial statements were audited by other auditors
whose report has been furnished to us, and our opinions, insofar as they relate to the amounts
included for the Highland Park I.S.D. Education Foundation, are based solely on the report of
the other auditors. We conducted our audit in accordance with auditing standards generally
accepted in the United States of America and the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the United
States. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement. The
financial statements of the Highland Park I.S.D. Education Foundation were not audited in
accordance with Government Auditing Standards.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity’s internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
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Page 2
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
In our opinion, based on our audit and the report of other auditors, the financial statements
referred to above present fairly, in all material respects, the respective financial position of the
governmental activities, the business-type activities, the discretely presented component unit,
each major fund, and the aggregate remaining fund information of the District, as of August 31,
2013, and the respective changes in financial position, and, where applicable, cash flows
thereof for the year then ended in accordance with accounting principles generally accepted in
the United States of America.
Other Matters
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and budgetary comparison information on pages 4–12
and 53–54 be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic, or historical
context. We have applied certain limited procedures to the required supplementary information
in accordance with auditing standards generally accepted in the United States of America,
which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management’s responses to our inquiries, the
basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion
or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the District’s basic financial statements. The introductory section,
combining and individual nonmajor fund financial statements, and statistical section, are
presented for purposes of additional analysis and are not a required part of the basic financial
statements. The schedule of expenditures of federal awards is presented for purposes of
additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits
of States, Local Governments, and Non-Profit Organizations, and is also not a required part of
the basic financial statements.
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Page 3
The combining and individual nonmajor fund financial statements and the schedule of
expenditures of federal awards are the responsibility of management and were derived from and
relate directly to the underlying accounting and other records used to prepare the basic financial
statements. Such information has been subjected to the auditing procedures applied in the audit
of the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to
prepare the basic financial statements or to the basic financial statements themselves, and
other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the combining and individual nonmajor fund financial
statements and the schedule of expenditures of federal awards are fairly stated in all material
respects in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an
opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
January 15, 2014, on our consideration of the District’s internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements and other matters. The purpose of that report is to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the District’s internal control over financial reporting and compliance.
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
January 15, 2014
-3-
Management’s Discussion and Analysis
The business management team of Highland Park Independent School District has prepared this
narrative overview and analysis of the financial activities of the District for the fiscal year ended August
31, 2013. Readers are encouraged to review the information furnished in the letter of transmittal,
found at the front of this report, as well as the District’s financial statements, which follow this section.
Financial Highlights
•
The net position of the District at the close of the fiscal year was $75,394,638. Of this amount,
$25,767,489 is unrestricted and may be used to meet future obligations of the District’s operations.
•
As of the close of the fiscal year, the District’s governmental funds reported combined ending
fund balances of $24,282,747. Of this amount, $16,718,127 (approximately 68.8 percent) is
unassigned; and therefore, is available for spending at the government’s discretion.
•
At the end of the fiscal year, unassigned fund balance for the general fund was $16,730,139,
which approximated 13.6 percent of the total general fund expenditures.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the District’s basic financial
statements. The basic financial statements are comprised of three components: 1) government-wide
financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report
also contains other supplementary information in addition to the basic financial statements.
Government-wide financial statements. The government-wide financial statements are designed to
provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector
business.
The statement of net position presents information on all of the District’s assets and liabilities, with the
difference between the two reported as net position. Over time, increases or decreases in net position
may serve as a useful indicator of whether the financial position of the District is improving or
deteriorating.
The statement of activities presents information for all of the current year’s revenues and
expenses regardless of when cash is received or paid. Thus, revenues and expenses are reported
in this statement for some items that will only result in cash flows in future fiscal periods.
Both of the District’s government-wide financial statements distinguish the functions of the District as
being principally supported by taxes and intergovernmental revenues (governmental activities) as
opposed to business-type activities that are intended to recover all or a significant portion of their costs
through user fees and charges. The business-type activities of the District include a community
education program and a community tennis center. The government-wide financial statements can be
found at Exhibits A-1 and B-1.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The District, like other
state and local governments, uses fund accounting to ensure and demonstrate compliance with
finance-related requirements. The fund financial statements provide more detailed information about
the District’s most significant funds not the District as a whole. Some funds are required by State law
and/or bond covenants. Other funds may be established by the District to control and manage money for
-4-
particular purposes or to evidence appropriate use of certain taxes, grants and other special revenues.
All of the funds of the District can be divided into three categories: governmental funds, proprietary funds,
and fiduciary funds.
•
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements focus on short-term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may be
useful in evaluating the District’s short-term financing requirements.
Because the focus on governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the District’s short-term
financing decisions. Reconciliations are provided for both the governmental fund balance sheet
and statement of revenues, expenditures, and changes in fund balances. These reconciliations
facilitate the comparison between governmental funds and governmental activities.
The District maintained 12 governmental funds in fiscal year 2012-13. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of
revenues, expenditures, and changes in fund balance for the general fund and the capital
projects fund, which are considered to be the only major funds. Financial data from the other 10
governmental funds are combined into a single, aggregated presentation. Individual fund data for
each of these non-major governmental funds are provided in the form of combining statements
found elsewhere in this report. The District adopts an annual appropriated budget for its general
fund and debt service fund. A budgetary comparison schedule has been provided to demonstrate
compliance with these budgets. The basic governmental fund financial statements can be found
at Exhibit C-1 and C-3.
•
Proprietary funds. Proprietary funds provide the same type of information as the governmentwide financial statements, only in more detail. There are two proprietary fund types. Enterprise
funds are used to report the same functions presented as business-type activities in the
government-wide financial statements. As mentioned above in the government-wide definition,
the District has two business-type activities or enterprise funds. The second type of proprietary
fund is the internal service fund.
Internal service funds are an accounting device used to
accumulate and allocate costs internally among the various functions. The District uses the
internal service fund to report activities for its self-funded insurance program.
The basic
proprietary fund financial statements are at Exhibits D-1, D-2 and D-3 in this report.
•
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties
outside the District. Fiduciary funds are not reflected in the government-wide financial statements
because the resources of those funds are not available to support the District’s programs. The
District is the trustee, or fiduciary, for these funds and is responsible for ensuring that the assets
reported in these funds are used for their intended purposes. All the District’s fiduciary activities
are reported in a separate statement of fiduciary net assets and a statement of changes in
fiduciary net assets are at Exhibits E-1 and E-2 in this report.
Notes to the financial statements. The notes provide additional information that is essential to having
a complete understanding of the data provided in the government-wide and fund financial statements.
-5-
Other information. In addition to the basic financial statements and accompanying notes, this report
also presents certain required supplementary information that further explains and supports the
information in the financial statements. Required supplementary information can be found at Exhibits F-1
and G-3 in this report.
The combining statements referred to earlier in connection with non-major governmental funds are
presented immediately following the required supplementary information. Combining statements start at
Exhibit G-1 in this report and continue through Exhibit G-9. A required TEA schedule is located at Exhibit
H-1.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. Exhibited below in Table I, are the District’s net positions summarized for both the governmental
activities and the business-type activities. Exhibited in Table II, is the change in the District’s net assets.
Table I
District’s Net Position
Governmental Activities
Business-type Activities
2013
Current and other
assets
2012
2013
Total Primary Government
2012
2013
2012
$ 36,917,914
$ 41,584,645
$ 2,198,776
$ 2,243,665
$ 39,116,690
$ 43,828,310
147,615,695
148,795,792
268,475
256,191
147,884,170
149,051,983
184,533,609
190,380,437
2,467,251
2,499,865
187,000,860
192,880,293
9,560,156
10,991,560
28,968
163,677
9,589,124
11,155,237
Noncurrent liabilities
102,017,098
109,410,202
-
-
102,017,098
109,410,202
Total Liabilities
111,577,254
120,401,762
28,968
163,677
111,606,222
120,565,439
46,259,243
40,044,080
268,475
256,191
46,527,718
40,300,271
Capital assets
Total Assets
Current liabilities
Net position:
Net investment in
capital assets
Restricted
Unrestricted
Total Net Position
3,099,431
3,154,823
-
-
3,099,431
3,154,823
23,597,681
26,779,772
2,169,808
2,079,988
25,767,489
28,859,760
$ 72,956,355
$ 69,978,675
$2,438,283
$2,336,179
$ 75,394,638
$ 72,314,854
Government-Wide Activities. As of August 31, 2013, the District’s position exceeded its liabilities by
$75,394,638, an increase of $3,079,784 over the previous year-end. The total cost of all governmentwide activities for the fiscal year was $138,325,233. Funding for these government-wide activities is from
specific program revenues, property taxes, grants and contributions, and other general revenues. The
following is a summary of the government-wide activities:
•
•
•
The total cost of government-wide activities for fiscal year 2012-13 was $138,325,233.
Specific program revenues received in the amount of $13,885,800 were used to offset the cost of
activities.
The remaining cost of government-wide activities not directly funded by program revenues was
$124,439,433.
The following graph, Figure A-1, shows the District’s sources of revenue for the fiscal year.
-6-
Figure A-1
District Sources of Revenue for Year Ended August 31, 2013
State Aid
7%
Operating Grants &
Contributions
Charges
6%
for Services and
all others
3%
Property Taxes
84%
Total District’s investment in capital assets (e.g., land, buildings and improvements, and furniture and
equipment) less any outstanding debt used to acquire those assets is $46,527,718. The District uses the
capital assets within the governmental activities 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.
A small portion of the District’s net position, $3,099,431 (10.7 percent), represents resources that are
subject to external restrictions on how they may be used. The remaining balance of unrestricted net
position, $25,767,489, may be used to meet the District’s ongoing obligations. This surplus is not an
indication that the District has significant resources available to meet financial obligations next year, but
rather the result of having long-term commitments that are less than currently available resources.
Table II
Change in the District’s Net Position
Revenues:
2013
2012
Business-type
Activities
2013
2012
2013
2012
Program Revenues
Charges for services
3,068,230
$1,573,612
$1,550,067
$ 4,612,214
$ 4,618,297
8,810,448
9,807,850
40,827
37,668
8,851,275
9,845,518
422,311
80,323
-
-
422,311
80,323
118,441,821
117,048,949
-
-
118,441,821
117,048,949
8,775,795
10,894,879
-
-
8,775,795
10,894,879
Investment Earnings
296,910
304,777
4,691
3,799
301,601
308,576
Misc. Local and Intermediate Revenue
400,000
42,980
(400,000)
-
-
42,980
140,185,887
141,247,988
1,219,130
1,591,534
141,405,017
142,839,522
Operating Grants and Contributions
Capital Grants and Contributions
$
3,038,602
$
General Revenues
Property Taxes
State Aid - Formula Grants
Total Revenue
-7-
Business –type
Activities
Expenses:
2013
Instruction & Instructional-Related Services
2012
2013
2012
2013
2012
$ 42,604,480
$ 42,168,726
-
-
$ 42,604,480
Instructional and School Leadership
4,120,465
3,921,649
-
-
4,120,465
3,921,649
Support Services – Student
7,921,207
7,599,178
-
-
7,921,207
7,599,178
Administrative Support Services
2,996,012
2,768,530
-
-
2,996,012
2,768,530
Support Services – Nonstudent Based
6,347,949
6,916,624
-
-
6,347,949
6,916,624
Debt Service
4,356,850
5,131,258
-
-
4,356,850
5,131,258
Facilities acquisition and Construction
$ 42,168,726
-
99,170
-
-
-
99,170
68,861,244
69,600,253
-
-
68,861,244
69,600,253
Seay Tennis Center
-
-
450,476
445,749
450,476
445,749
Academy for Lifelong Learning
-
-
666,550
625,018
666,550
625,018
137,208,207
138,205,388
1,117,026
1,070,767
138,325,233
139,276,155
Intergovernmental Charges
Total Expenses
Change in net position
Net position – beginning
Net position – ending
2,977,680
3,042,600
69,978,675
66,936,075
$ 72,956,355
$ 69,978,675
102,104
520,767
3,079,784
3,563,367
1,815,412
72,314,854
68,751,487
$ 2,438,283 $ 2,236,179
$ 75,394,638
$ 72,314,854
2,336,179
Governmental Activities.
For the 2012-13 fiscal year, net position from activities, decreased by
$2,977,680. The net cost of governmental activities for the year was $124,936,846. The amount paid by
taxpayers for these activities through property taxes was $118,441,821 or 94.8 percent. However, of the
total amount of property taxes collected, the District was required to send $68,513,500 to the State as
required under the recapture provisions of Chapter 41 in the Texas Education Code. This amount
represents approximately 57.8 percent of all property tax revenue collected locally. The District’s Chapter
41 recapture payments to the State are shown on Exhibit B-1 of the financial statements under the
expense line item “Contracted Instructional Services Between Schools.” When excluding Chapter 41
recaptured payments to the State, the cost of governmental activities for the District was $68,694,707, a
decrease of 0.4 percent from the previous year.
Business-Type Activities.
Net position for business-type activities as of August 31, 2013, was
$2,438,283, an increase from prior year by $102,104. Charges for services, Operating Grants and
Contributions combined were $1,614,439 for the year, an increase of $26,704. Total cost of operations for
business-type activities were $1,117,026, which increased from the previous year by $46,259. Both
enterprises were profitable for the year. There was an operating transfer from the business-type activities
to the governmental activities in the amount of $400,000. As previously mentioned business-type
activities consist of two for-profit operations, the Seay Tennis Center and the Academy for Life-long
Learning. Transfers from their operations are done to support the governmental activities annual budget.
Financial Analysis of the District’s Funds
As stated earlier, the District uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements, bond covenants, and segregation for particular purposes.
Governmental funds. The focus of the District’s governmental funds is to provide information on shortterm inflows, outflows, and balances of spendable resources. Such information is useful in assessing the
District’s financing requirements. In particular, unassigned fund balance may serve as a useful measure
of the District’s net resources available for spending at the end of the fiscal year.
-8-
As of August 31, 2013, the District’s governmental funds reported combined ending fund balances of
$24,282,747, a decrease of $3,958,562 from the previous year. Of the combined ending fund balances
approximately 61.5 percent, or $16,718,127 of this total amount constitutes unassigned fund balance.
Table III illustrates the fund balances of the governmental funds.
Table III
Fund Balances
Governmental Funds – Fund Balance
As of August 31, 2013
Capital
Projects
General Fund
Non major
Governmental
Funds
Total
Governmental
Funds
Restricted for:
Advanced Placement Initiatives
104,408
$ 104,408
State Funded Special Revenue
$
-
$
-
$
20,227
20,227
Debt Service
-
-
1,432,942
1,432,942
Local Special Revenue
-
-
1,604,123
1,604,123
Committed for:
Capital Expenditures
-
3,127,558
-
Campus Activities
Unassigned:
Total Fund Balance
16,730,139
$ 16,730,139
$ 3,127,558
$
3,127,558
1,275,362
1,275,362
(12,012)
4,425,050
16,718,127
$ 24,282,747
At the end of the current fiscal year, the ending fund balance for the General Fund was unassigned and
totaled $16,730,139. The total fund balance represents 13.6 percent of total general fund expenditures.
The fund balance decreased by $639,435 as of the end of the fiscal year. The decrease is due to
expenditures exceeding revenues by $444,435 and net operating transfers out of $195,000 to the Capital
Projects Fund.
Property taxes are the primary source of revenue for the General Fund, representing 86.6 percent of the
total revenue for the fund. Property tax collections totaled $106,551,334 for the current fiscal year, an
increase of $966,423 from the previous year. The increase is related to the net property values increasing
by 0.2 percent. Total revenues for the General Fund equaled $121,923,431.
Total General Fund expenditures for the year ended August 31, 2013, were $122,367,866, an increase of
$481,056 over 2012 expenditures. The increase is primarily related to the net impact to the payroll
expenditure budget when considering of a 2 percent raise to the existing staff.
For the 2012-13 fiscal year, the Capital Projects Fund is a major reportable fund. This is reflected on
Exhibits C-1 and C-3. The fund balance as of August 31, 2013, is $3,127,558, a decrease of $3,226,273
from the prior year. The decrease is primarily attributed to a capital project at our intermediate and middle
school where the cafeteria dining and kitchen area is being expanded and the three classrooms are being
finished out from a shell state. In addition, $595,000 was transferred in from the General Fund for minor
renovations to the athletic stadium to include replacing the field turf and installing additional handrails.
Revenues for the Capital Projects Fund were $444,544, of which $422,311 was generated from donations
from support booster clubs. Donated revenue was used to renovate a media center at one of the District’s
elementary schools and minor capital improvements at two other elementary schools.
The non-major governmental funds column is comprised of the Debt Service Fund and 9 Special
Revenue Funds. The significant funds are discussed below.
-9-
The Debt Service Fund had tax revenues of $11,155,099 for the 2012-13 year. Expenditures from the
fund were $11,015,913 resulting in net revenues over expenditures in the amount of $202,516. On July
17, 2013, the District refinanced $22,545,000 of Series 2005 of Tax Unlimited Tax Refunding Bonds by
issuing Series 2013 Tax Refunding Bonds in the amount of $22,285,000. The final cost of the issuance
was $24,842,217. The District made a contribution of $495,000 towards the transaction to eliminate any
savings the District would have earned through the refunding in 2013. See Note 10 for addition
information on the refinancing. The ending fund balance was $1,432,942 for the fund.
The District maintained 9 special revenue funds in the current fiscal year. The total ending fund balance
for all special revenue funds combined was $2,992,108, an increase of $71,744 from the previous year.
The campus activity fund and the gift fund are the two largest special revenue funds. Together the two
funds represent $2,688,935 (89.9 percent) of the total ending fund balance of all special revenue funds.
Proprietary funds. As mentioned earlier, the District’s proprietary funds statements provide the same
type of information found in the government-wide financial statements, but in more detail.
Total net position for the enterprise funds as of August 31, 2013, totaled $2,438,283, an increase of
$102,104 from the previous year. Total income for the year was $1,573,612, an increase of $23,545
from last year. Expenditures for the year were $1,117,026, an increase of $46,259 over prior year. Detail
schedule can be reviewed at Exhibits G-4 and G-5
Total net position for the internal service fund as of August 31, 2013, totaled $1,418,122, an increase of
$401,071 from the prior year. The primary reason for the increase in net position was due to a favorable
year with workers compensation claims.
General Fund Budgetary Highlights
For the General Fund, the final budgeted amount for revenues was $122,912,887. This was $429,598
higher than the original adopted budget of $122,483,289. The difference was due to an increase in state
aid from the Texas Education Agency (TEA).
In August 2013, the District amended its appropriations budget to $123,653,585, an increase of $429,598
over the original adopted budget. The most significant appropriation budget amendment for the year was
a $595,000 operating transfer out to the Capital Projects Fund to fund the returfing of the field at the
football stadium and miscellaneous renovation to the stadium.
Capital Asset and Debt Administration
Capital assets. At August 31, 2013, the District had invested $147,884,170 in a broad range of capital
assets, including land, buildings and improvements, furniture and equipment and construction in
progress. (See Table V below).
- 10 -
Table V
District’s Capital Assets, net of Depreciation
(In thousands)
Governmental
Activities
2013
2012
Business-type
Activities
2013
Land
Buildings and Improvements
Furniture and Equipment
Construction in Progress
$ 23,296 $ 23,296
116,857 120,692
3,958
4,808
3,505
-
$
93
175
-
Totals at Historical Cost
$147,616 $148,796
$ 268
2012
$
Total
Activities
2013
2012
Increase
(Decrease)
Perc. (%)
104
152
$ 23,296 $ 23,296
116,950
120,796
4,133
4,808
3,505
152
( 3.2)
( 14.0)
2,205.9
$ 256
$ 147,884 $ 149,052
( 0.8)
As of the end of the fiscal year, there was a decrease of $1,180,097 in capital assets (net of depreciation)
used for governmental activities. Additional information about the District’s capital assets is presented in
Note 6 of the financial statements.
Long-term debt. As of August 31, 2013, the District had total bonded debt outstanding of $101,595,000,
a decrease of $7,190,000 from the prior year. As previously mentioned, the District refunded Series 2005
Bonds with Series 2013 Bonds. The refunding resulted in a decrease in the District’s debt service
payments of $1,442,756, which resulted in a present value economic gain of $1,373,710. The
$22,285,000 of the Unlimited Tax Refunding Bonds, Series 2005, were refunded and are considered
legally defeased, and are no longer included in the District’s basic financial statements. More detailed
information about the District’s long-term debt is presented in Note 9 of the financial statements.
Economic Factors and Next Year’s Budgets and Rates
The District experienced a 5 percent increase in taxable values for tax year 2013. The total appraised
local taxable value for the 2013-14 budget year was certified by the Dallas Central Appraisal District at
$11,733,798,388, an increase of $556,167,761 from the previous year. The District’s weighted average
daily attendance (WADA) used for the 2013-13 fiscal budget is 7,679.5.
The total tax rate for fiscal year 2013-14 is $1.1267 per $100 of value, $1.0267 for maintenance and
operations (General Fund) and $0.10 for interest and sinking (Debt Service Fund). This is a decrease in
the rate by $0.0075 which is in the Debt Service Rate. The Dallas County Tax Office certified adjusted
tax collections for both the General fund and the Debt Service Fund at $125,412,609, an increase of
$6,146,067 over the previous year.
For the 2013-14 fiscal year, the District budgeted total revenues for the General Fund at $125,500,147, of
which $112,699,955 will come from property tax collections, $8,571,692 will come from State aid, and the
remaining $4,228,500 will come from other local resources. Parent Teacher Organizations, Highland Park
Education Foundation and the Highland Park Sports Club has committed $2,723,500 to the District’s
General Fund budget.
The General Fund appropriations budget for 2013-14 is $126,276,517, which is an increase from the prior
year adopted budget by $3,052,530, or 2.5 percent increase. Of the $126,276,517 budgeted for 201314, $69,287,492 will be sent to the State for Chapter 41 recapture. This amount is an increase of 1.1
percent from the previous year. When eliminating that payment to the State, the District’s expenditure
budget for the 2013-14 year is $56,989,025, a 4.2 percent increase from prior year. An operating transfer
- 11 -
into the General Fund from an enterprise fund in the amount of $400,000 is budgeted for the 2013-14
year. The same amount that was budgeted in the 2012-13 year.
The 2013-14 general fund ending fund balance is estimated to be $16,353,764, which is adequate to fund
3.4 months of general fund operating expenditures when Chapter 41 recapture is eliminated from the
equation.
Debt Service fund revenues are budgeted at $10,926,848 for the 2013-14 year. Appropriations are
budgeted at $10,938,880, to include principal, interest and fees payments towards the District’s
outstanding bonded debt. The debt service ending fund balance as of the August 31, 2014 is estimated
at $1,311,063.
Requests for Information
This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with
a general overview of the District’s finances. In addition, it provides evidence of accountability for funds
the District receives. Questions concerning any of the information provided in this report or requests for
additional information should be addressed to the District’s Administration Office, Business Services
Department, Highland Park I.S.D., 6915 Westchester Drive, Dallas, Texas 75205.
- 12 -
Basic Financial Statements
- 13 -
- 14 -
STATEMENT OF NET POSITION
AUGUST 31, 2013
Data
Control
Codes
Primary Government
Governmental
Activities
1110
1120
1220
1230
1240
1250
1260
1290
1410
1490
1510
1520
1530
1570
1580
1810
1000
EXHIBIT A-1
ASSETS
Cash and cash equivalents
Current investments
Delinquent property taxes receivables
Allowance for uncollectible taxes (credit)
Due from other governments
Accrued interest
Internal balances
Other receivables (net)
Deferred expenses
Other current assets
Capital assets:
Land
Buildings and building improvements
Furniture and equipment
Accumulated depreciation
Construction in progress
Restricted cash and investments
$
23,296,152
173,225,698
12,417,510
(64,828,478)
3,504,813
-
Total assets
LIABILITIES
Accounts payable
Interest payable
Accrued wages payable
Due to other governments
Unearned revenue
Noncurrent liabilities:
2501
Due within one year
2502
Due in more than one year
2000
Total liabilities
2110
2140
2160
2180
2300
NET POSITION
3200 Net investment in capital assets
Restricted for:
3820
State programs
3850
Debt service
3890
Donor stipulations
3900 Unrestricted net position
3000
Total net position
16,634,907 $
19,149,083
1,935,889
(290,382)
317,054
86,095
(1,441,679)
321,082
205,865
-
$
Business-type
Activities
50,064 $
703,289
3,744
1,441,679
310,163
201,456
(243,144)
-
Total
Component Unit
HPISD
Education
Foundation
16,684,971 $
19,852,372
1,935,889
(290,382)
317,054
89,839
321,082
205,865
23,296,152
173,535,861
12,618,966
(65,071,622)
3,504,813
-
2,035,271
3,457,681
528,949
1,802
8,819,839
184,533,609
2,467,251
187,000,860
14,843,542
3,849,578
194,481
1,922,497
1,428,923
2,164,677
7,624
21,344
-
3,857,202
194,481
1,943,841
1,428,923
2,164,677
702,914
41,330
7,131,456
94,885,642
111,577,254
28,968
7,131,456
94,885,642
111,606,222
744,244
46,259,243
268,475
46,527,718
124,635
1,370,673
1,604,123
23,597,681
72,956,355 $
2,169,808
2,438,283 $
124,635
1,370,673
1,604,123
25,767,489
75,394,638 $
The accompanying notes to the basic financial statements are an integral part of this statement.
- 15 -
12,951,029
1,148,269
14,099,298
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED AUGUST 31, 2013
Program
Revenues
Data
Control
Codes
1
3
Expenses
Charges for
Services
4
Operating
Grants and
Contributions
GOVERNMENTAL ACTIVITIES:
11
12
13
21
23
31
33
34
35
36
41
51
52
53
72
73
81
91
92
Instruction
Instructional resources and media services
Curriculum and staff development
Instructional leadership
School leadership
Guidance, counseling, and evaluation services
Health services
Student transportation
Food service
Extracurricular activities
General administration
Plant maintenance and operations
Security and monitoring services
Data processing services
Interest on long-term debt
Debt Service - Bond fees
Facilities acquisition and construction
Contracted instructional services between schools
Incremental costs related to WADA
$
39,949,333 $
1,004,711
1,650,436
1,076,148
3,044,317
2,975,043
560,365
185,584
1,412,509
2,787,706
2,996,012
5,399,657
122,336
825,956
4,343,604
13,246
68,513,500
347,744
137,208,207 $
1,711,648 $
123,606
16,594
7,904
89,303
28,784
4,632
17,134
795,834
16,594
223,748
2,821
3,038,602 $
5,896,570
205,746
371,672
54,879
238,800
154,299
31,274
1,171,016
328,788
128,120
197,442
31,842
8,810,448
[TB] TOTAL BUSINESS-TYPE ACTIVITIES:
$
450,476
666,550
1,117,026 $
631,562
942,050
1,573,612 $
18,390
22,437
40,827
[TP] TOTAL PRIMARY GOVERNMENT:
$
138,325,233 $
4,612,214 $
8,851,275
$
2,985,004 $
-
3,454,652
[TG] TOTAL GOVERNMENTAL ACTIVITIES:
$
BUSINESS-TYPE ACTIVITIES:
01
02
Seay Tennis Center
COMPONENT UNIT:
03
Highland Park I.S.D. Education Foundation
Data
Control
Codes
MT
DT
GC
IE
FR
Taxes
Property taxes, levied for general purposes
Property taxes, levied for debt service
Grants & contributions not restricted
Investment earnings
Transfers
TR
CN
NB
NE
Total general revenues and transfers
Net position-beginning
Net position-ending
$
General Revenues and Transfers:
- 16 -
EXHIBIT B-1
Program
Revenues
5
Capital
Grants and
Contributions
$
Net (Expense) Revenue and
Changes in Net Position
6
7
Primary Government
Governmental
Business-type
Activities
Activities
$
31,711 $
390,600
422,311 $
$
-
$
422,311 $
$
-
$
$
(32,309,404) $
(675,359)
(1,262,170)
(1,013,365)
(2,716,214)
(2,791,960)
(524,459)
(185,584)
(224,359)
(1,663,084)
(2,851,298)
(4,978,467)
(122,336)
(791,293)
(4,343,604)
(13,246)
390,600
(68,513,500)
(347,744)
(124,936,846) $
Total
$
$
199,476
297,937
497,413 $
199,476
297,937
497,413 $
-
(124,936,846) $
497,413 $
(124,439,433) $
-
$
107,217,132
11,224,689
8,775,795
296,910
400,000
$
HPISD
Education
Foundation
-
-
127,914,526
2,977,680
69,978,675
72,956,355 $
-
$
8
(32,309,404) $
(675,359)
(1,262,170)
(1,013,365)
(2,716,214)
(2,791,960)
(524,459)
(185,584)
(224,359)
(1,663,084)
(2,851,298)
(4,978,467)
(122,336)
(791,293)
(4,343,604)
(13,246)
390,600
(68,513,500)
(347,744)
(124,936,846) $
-
-
Component
Unit
$
4,691
(400,000)
(395,309)
102,104
2,336,179
2,438,283 $
- 17 -
-
$
107,217,132
11,224,689
8,775,795
301,601
127,519,217
3,079,784
72,314,854
75,394,638 $
469,648
1,447,237
1,447,237
1,916,885
12,182,413
14,099,298
BALANCE SHEET
GOVERNMENTAL FUNDS
AUGUST 31, 2013
Data
Control
Codes
1110
1120
1220
1230
1240
1250
1260
1290
1000
ASSETS
Current investments
Property taxes-delinquent
Allowance for uncollectible taxes (credit)
Accrued interest
Due from other funds
Other receivables
Total assets
3510
3545
3600
3000
4000
Total liabilities and fund balances
3450
3450
3480
3490
Capital
Projects
General
Fund
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable
Due to other funds
Due to other governments
Deferred revenue
Total liabilities
Fund balances:
Restricted for:
State funded special revenue
Debt service
Donor stipulations
Committed for:
Capital expenditure
Campus activities
Unassigned
Total fund balances
2110
2160
2170
2180
2300
2000
EXHIBIT C-1
$
$
$
9,812,955
17,521,146
1,780,345
(267,051)
228,535
79,119
459,110
205,354
29,819,513
484,252
1,872,846
6,422,722
1,428,923
2,880,631
13,089,374
$
$
$
$
$
3,127,558
3,127,558
16,730,139
16,730,139
29,819,513
1,009,201
405,090
1,414,291
$
-
-
$
4,506,769
35,080
4,541,849
Non-major
Governmental
Funds
$
4,541,849
$
1,774,231
627,937
155,544
(23,331)
88,519
3,343
2,893,008
4,622
5,523,873
65,607
49,651
54,014
929,551
1,098,823
Total
Governmental
Funds
$
$
$
1,559,060
1,922,497
6,881,826
1,428,923
3,810,182
15,602,488
104,408
20,227
1,432,942
1,604,123
104,408
20,227
1,432,942
1,604,123
1,275,362
(12,012)
4,425,050
3,127,558
1,275,362
16,718,127
24,282,747
5,523,873
$
- 18 -
16,093,955
18,149,083
1,935,889
(290,382)
317,054
82,462
3,352,118
245,056
39,885,235
39,885,235
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE GOVERNMENT-WIDE STATEMENT OF NET POSITION
AUGUST 31, 2013
TOTAL FUND BALANCES - GOVERNMENTAL FUNDS
EXHIBIT C-2
$
24,282,747
1 The District uses internal services funds to charge the costs of certain activities, such
as self-insurance, to appropriate functions in other funds. The assets and liabilities
of the internal service funds are included in governmental activities in the statement
of net position. The net effect of this consolidation is to increase net position.
1,418,122
2 Capital assets used in governmental activities are not financial resources and
therefore are not reported in governmental fund financial statements.
212,444,173
3 Accumulated depreciation has not been included in the governmental fund financial
statements.
(64,828,478)
4 Long-term liabilities have not been included in the governmental fund financial
statements.
(102,017,098)
5 Property taxes reported as deferred revenue in the governmental fund financial statements
are recognized as revenue in the government-wide financial statements.
1,645,505
6 Interest is accrued on outstanding debt in the government-wide financial statements,
whereas in the governmental fund financial statements, an interest expenditure is
reported when due.
(194,481)
7 Costs associated with the issuance of long-term debt are expensed when incurred in
the governmental funds financial statements. These costs are capitalized and
amortized over the life of the life of the debt in the government-wide financial statements.
NET POSITION OF GOVERNMENTAL ACTIVITIES
205,865
$
72,956,355
- 19 -
EXHIBIT C-3
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
Data
Control
Codes
10
General
Fund
620
Capital
Projects
Non-major
Governmental
Funds
Total
Governmental
Funds
REVENUES
5700
5800
5900
5020
Total local and intermediate sources
State program revenues
Federal program revenues
Total revenues
$
110,675,171
11,248,260
121,923,431
$
444,544 $
444,544
16,165,439 $
223,975
798,067
17,187,481
127,285,154
11,472,235
798,067
139,555,456
EXPENDITURES
0011
0012
0013
0021
0023
0031
0033
0034
0035
0036
0041
0051
0052
0053
0071
0072
0073
0081
0091
0092
6030
1100
CURRENT:
Instruction
Instructional resources & media services
Curriculum & instructional staff development
School leadership
Health services
Student (pupil) transportation
Food service
Cocurricular/extracurricular activities
DEBT SERVICE:
Debt service - Principal on long-term debt
Debt service - Interest on long-term debt
Debt service - Bond issuance costs and fees
CAPITAL OUTLAY:
Facilities Acquisition and Construction
INTERGOVERNMENTAL:
Incremental costs associated with Chapter 41
Total expenditures
Excess (deficiency) of revenues over (under)
expenditures
32,242,710
669,203
1,144,915
977,660
2,654,081
2,630,160
507,438
1,275,511
2,197,211
2,743,315
5,076,457
156,313
767,992
425,000
38,656
68,513,500
347,744
122,367,866
(444,435)
176,247
94,643
34,067
25,531
12,714
18,409
3,904,206
4,265,817
(3,821,273)
4,328,161
184,617
409,277
393
113,704
84,167
1,324
185,584
13,722
469,938
12,043
67,160
27,218
36,747,118
948,463
1,554,192
978,053
2,767,785
2,714,327
508,762
185,584
1,323,300
2,692,680
2,768,072
5,162,026
156,313
795,210
6,505,000
4,393,336
117,577
6,930,000
4,431,992
117,577
16,913,221
3,904,206
68,513,500
347,744
143,546,904
274,260
(3,991,448)
22,285,000
2,062,217
(24,714,331)
(367,114)
(92,854)
4,517,904
4,425,050 $
22,285,000
995,000
2,062,217
(595,000)
(24,714,331)
32,886
(3,958,562)
28,241,309
24,282,747
OTHER FINANCING SOURCES (USES) :
7901
7915
7916
8911
8940
7080
1200
0100
3000
Refunding bonds issued
Transfers in
Premium or discount on issuance of bonds
Transfers out (use)
Payment to bond refunding escrow agent (use)
Total other financing sources and (uses)
Net change in fund balances
Fund balances - September 1 (beginning)
Fund balances - August 31 (ending)
$
400,000
(595,000)
(195,000)
(639,435)
17,369,574
16,730,139 $
595,000
595,000
(3,226,273)
6,353,831
3,127,558 $
- 20 -
RECONCILIATON OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
TO THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
TOTAL NET CHANGE IN FUND BALANCES - GOVERNMENTAL FUNDS
EXHIBIT C-4
$
(3,958,562)
The District uses internal service funds to charge the costs of certain activities such as
self-insurance to appropriate functions in other funds. The net income of
internal service funds is reported with government activities. The net effect of this
consolidation is to increase net position.
401,071
Current year capital outlays are expenditures in the fund financial statements, but
they are shown as increases in capital assets in the government-wide financial statements.
4,207,423
Depreciation is not recognized as an expense in governmental funds since it does not
require the use of current financial resources. The net effect of the current year's
depreciation is to decrease net position in the government-wide financial statements.
(5,343,736)
The issuance of long-term debt (e.g. bonds) provides current financial resources to
governmental funds, while the repayment of the principal of long-term debt consumes the
current financial resources of governmental funds. Neither transaction, however, has any
effect on net position. Also, governmental funds report the effect of issuance costs,
premiums, and deferred losses on refunding when debt is first issued; however the amounts
are deferred and amortized in the government-wide financial statements. This amount
represents the net effect of the following items:
o Refunding bonds issued - (22,285,000)
o Repayments - 29,475,000
o Debt issue costs - 127,886
o Deferred loss on refunding - 2,040,994
o Premium on bonds (2,062,217)
o Amortization of premium on bonds, 1,176,238, less the amortization of debt issue
costs (57,764) and deferred loss on refunding (951,911)
7,463,226
Current year changes in accrued interest payable do not require the use of current
financial resources; and therefore, are not reported as expenditures in governmental funds.
26,607
Loss on disposition of capital assets results in a decrease in net position , but the effect
is not recognized in the governmental funds.
(43,784)
Revenue from property taxes is deferred in the fund financial statements until they
are considered available to finance current expenditures, but such revenues are
recognized when assessed, net of an allowance for uncollectible accounts, in the
government-wide statements.
225,435
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES
$
- 21 -
2,977,680
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
AUGUST 31, 2013
EXHIBIT D-1
Business-Type
Activities
Enterprise
Funds
ASSETS
CURRENT ASSETS:
Current investments
Accrued interest
Other receivables
Total current assets
$
NON CURRENT ASSETS
Capital Assets:
Buildings and improvements
Accumulated depreciation on
buildings and improvements
furniture and equipment
Total noncurrent assets
Total assets
LIABILITIES
CURRENT LIABILITIES:
Accounts payable
Total liabilities
NET POSITION
Net investment in capital assets
Unrestricted
Total net position
$
50,064
703,289
3,744
1,441,679
2,198,776
Governmental
Activities
Internal Service
Funds
$
540,952
1,000,000
3,633
72,128
70,805
1,687,518
310,163
-
(217,105)
201,456
-
(26,039)
268,475
-
2,467,251
1,687,518
7,624
21,344
28,968
269,396
269,396
268,475
2,169,808
2,438,283
1,418,122
1,418,122
$
- 22 -
STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN FUND NET POSITION
PROPRIETARY FUNDS
EXHIBIT D-2
Business-Type
Activities
Enterprise
Funds
Governmental
Activities
Internal Service
Funds
OPERATING REVENUES:
Local and intermediate sources
$
Total operating revenues
OPERATING EXPENSES:
Payroll costs
Professional and contractual services
Supplies and materials
Depreciation expense
Other operating costs
Total operating expenses
Operating income
NONOPERATING REVENUES:
Earnings from temporary deposits and investments
Total nonoperating revenues
Income before transfers
TRANSFERS
Transfers out
Total transfers
Total Net Position- September 1 (Beginning)
Total Net Position - August 31 (Ending)
$
1,573,612 $
537,047
1,573,612
537,047
858,239
109,912
42,507
30,724
75,644
104,237
36,735
1,117,026
140,972
456,586
396,075
4,691
40,827
45,518
4,996
4,996
502,104
401,071
(400,000)
-
(400,000)
-
102,104
401,071
2,336,179
1,017,051
2,438,283 $
1,418,122
- 23 -
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from user charges
Payments to employees for services
Payments to suppliers
EXHIBIT D-3
Business-Type
Activities
Enterprise
Funds
Governmental
Activities
Internal
Service Funds
$
$
Net cash provided by operating activities
1,223,192
(992,704)
(228,307)
2,181
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investment securities
Investment earnings
Purchase of capital assets
Sale of capital assets
398,530
(270,608)
127,922
(3,289)
4,075
(194,908)
151,900
(1,000,000)
1,363
-
Net cash used in investing activities
(42,222)
(998,637)
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES:
Transfers out
Received from state government
(400,000)
40,827
-
Net cash used in financing activities
(359,173)
-
Net decrease in cash and cash equivalents
(399,214)
Cash and cash equivalents at the beginning of year
Cash and cash equivalents at the end of year
Reconciliation of operating income to net cash
provided by operating activities:
Operating income
Adjustments to reconcile operating income
to net cash provided by operating activities
Depreciation
Effect of increases and decreases in current
assets and liabilities:
(Increase) decrease in receivables
(Increase) in interfund
Increase (decrease) in accounts payable
Increase (decrease) in accrued wages payable
Net cash provided by operating activities
(870,715)
$
449,278
50,064
$
1,411,667
540,952
$
456,586
$
396,075
30,724
$
(350,420)
(156,053)
21,344
2,181
-
$
(66,389)
(72,128)
(129,636)
127,922
- 24 -
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
AUGUST 31, 2013
EXHIBIT E-1
Private
Purpose
Trust Funds
ASSETS
Current investments
Accrued interest
Other receivable
Restricted assets
$
Total assets
38,074
145,035
Agency
Funds
$
67,354
125,587
669
22,504
2,021,122
-
183,109
2,237,236
LIABILITIES
Accounts payable
Due to other funds
Due to other organizations
Due to student groups
500
6
-
42,076
5,215
1,991,916
198,029
Total liabilities
506
NET POSITION
Held in trust for other purposes
$
2,237,236
182,603
Total net position
$
182,603
- 25 -
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE FISCAL YEAR ENDED AUGUST 31, 2013
EXHIBIT E-2
Private
Purpose
Trust Funds
ADDITIONS:
$
Total additions
7,028
7,028
DEDUCTIONS:
9,150
Total deductions
9,150
(2,122)
Total Net Position - September 1 (Beginning)
Total Net Position - August 31 (Ending)
184,725
$
- 26 -
182,603
NOTES TO THE BASIC FINANCIAL STATEMENTS
Note 1. Significant Accounting Policies
Highland Park Independent School District (the District) is a public educational agency operating
under the applicable laws and regulations of the State of Texas. It is governed by a seven
member Board of Trustees (the Board) elected by registered voters of the District. The District
prepares its basic financial statements in conformity with generally accepted accounting
principles promulgated by the Governmental Accounting Standards Board 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
Texas Education Agency's Financial Accountability System Resource Guide (the Resource
Guide) and the requirements of contracts and grants of agencies from which it receives funds.
Reporting Entity
In defining the scope of the District for financial reporting purposes, the District conforms with
the criteria of GASB Statement No. 14, “The Financial Reporting Entity” as amended by GASB
Statement No. 39, “Determining Whether Certain Organizations Are Component Units” and
GASB No. 61, “The Financial Reporting Entity: Omnibus”. This report includes the financial
statements of the District’s primary government, which covers all funds or organizations that
are part of the District’s legal entity.
Additionally, the District’s reporting entity also includes the accounts of the Highland Park I.S.D.
Education Foundation, (the Foundation) as a discretely presented component unit, a legally
separate, tax exempt entity. The Foundation was organized to receive and distribute funds,
property and gift of any kind exclusively for the benefit of Highland Park Independent School
District, its students, and personnel in furtherance of the education objectives of the
Foundation. Separate financial statements are issued by the Foundation and can be obtained
from: Highland Park I.S.D. Education Foundation, 4201 Grassmere, Dallas, TX 75205.
Contributions from the Foundation to the District were approximately $350,000 for the year
ending August 31, 2013.
Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement
of changes in net position) report information on all of the non-fiduciary activities of the primary
government. For the most part, the effect of interfund activity has been removed from these
statements. The governmental activities are supported by tax revenues and intergovernmental
revenues. Business-type activities include operations that 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 are offset by program revenues. Direct expenses are those that are clearly identifiable
with a specific function. Program revenues include: 1) charges to customers or applicants who
purchase, use or directly benefit from goods, services, or privileges provided by a given
function and 2) grants and contributions that are restricted to meeting operational or capital
requirements of a particular function. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
- 27 -
Note 1. Significant Accounting Policies - Continued
Government-wide and Fund Financial Statements - Continued
Interfund activities between governmental funds and between governmental and proprietary
funds appear as due to/due from on the governmental fund balance sheet and proprietary fund
statement of net position and as other resources and other uses on the governmental fund
statement of revenues, expenditures and changes in fund balance and on the proprietary fund
statement of revenues, expenses, and changes in net position. All interfund transactions
between governmental funds and between governmental funds and internal service funds are
eliminated on the government-wide statements. Interfund activities between governmental
funds and enterprise funds remain on the government-wide statements and appear on the
government-wide statement of net position as internal balances and on the statement of
activities as interfund transfers. Interfund services provided and used are not eliminated in the
process of consolidation.
The fund financial statements provide reports on the financial condition and results of
operations for two fund categories - governmental and fiduciary. Since the resources in the
fiduciary funds cannot be used for District operations, they are not included in the governmentwide statements. The District considers some governmental funds major and reports their
financial condition and results of operations in a separate column.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses result from providing services and producing and delivering
goods in connection with a proprietary fund’s principal ongoing operations. All other revenues
and expenses are nonoperating.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
Measurement focus is the accounting convention, which determines which assets and liabilities
are included on the balance sheet of a fund type and whether a fund type's operating statement
presents "financial flow" or capital maintenance information.
Basis of accounting refers to when revenues and expenditures are recognized in the accounts
and reported in the financial statements. Basis of accounting relates to the timing of
measurements made, regardless of the measurement focus applied.
The government-wide financial statements use the economic resources measurement focus
and the accrual basis of accounting, as do the proprietary fund and fiduciary fund financial
statements (with the exception of Agency funds which are custodial in nature thus do not have
a measurement focus). Revenues are recorded when earned and expenses are recorded when
a liability is incurred, regardless of the timing of the 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.
- 28 -
Note 1. Significant Accounting Policies - Continued
Measurement Focus, Basis of Accounting, and Financial Statement Presentation Continued
Governmental fund financial statements use the current financial resources measurement
focus and the modified accrual basis of accounting. With this measurement focus, only current
assets, current liabilities and fund balances are included on the balance sheet. Operating
statements of these funds present net increases and decreases in current assets (i.e.,
revenues and other financing sources and expenditures and other financing uses).
The modified accrual basis of accounting recognizes revenues in the accounting period in
which they become both measurable and available, and it recognizes expenditures in the
accounting period in which the fund liability is incurred, if measurable, except for unmatured
interest and principal on long-term debt, which is recognized when due. The expenditures
related to certain compensated absences and claims and judgments are recognized when the
obligations are expected to be liquidated with expendable available financial resources. The
District considers all revenues available if they are collectible within 60 days after year end.
Revenues from local sources consist primarily of property taxes. Property tax revenues and
revenues received from the State are recognized under the susceptible to accrual concept.
Miscellaneous revenues are recorded as revenue when received in cash because they are
generally not measurable until actually received. Investment earnings are recorded as earned,
since they are both measurable and available.
Grant funds 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 and Fiduciary Fund types are accounted for on a flow of economic
resources measurement focus and utilize the accrual basis of accounting. This basis of
accounting recognizes revenues in the accounting period in which they are earned and become
measurable and expenses in the accounting period in which they are incurred and become
measurable. The District applies all GASB pronouncements. With this measurement focus, all
assets and all liabilities associated with the operation of these funds are included on the fund
Statement of Net Position. The fund equity is segregated into net investment in capital assets,
restricted net position, and unrestricted net position.
Fund Accounting
The District's accounting system is organized and operated on the basis of funds, each of which
is considered a separate accounting entity. The operations of each fund are accounted for with a
separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues
and expenditures. District resources are allocated to and accounted for in individual funds based
upon the purposes for which they are to be spent and the means by which spending activities are
controlled.
- 29 -
Note 1. Significant Accounting Policies – Continued
Fund Accounting - Continued
The District reports the following major governmental funds:
General Fund is the general operating fund of the District. It is utilized to account for all
revenues and expenditures except those required to be accounted for in another fund. Major
sources include local property taxes, state funding under the minimum Foundation Program
and interest earnings. Expenditures include all costs associated with the daily operations of
the schools.
Capital Projects Fund is utilized to account for financial resources to be used for the
acquisition or construction of major capital facilities. Such resources are derived from
proceeds of general obligation bonds and interest earned on such monies and local sources
committed for such purposes.
Additionally, the District reports the following fund types:
Governmental Funds:
Special Revenue Funds are utilized to account for the proceeds of specific revenue sources,
other than expendable trusts or for major capital projects that are legally restricted or
committed for specified purposes.
Debt Service Fund is utilized to account for the accumulation of resources for, and the
payment of, general long-term debt principal, interest, and related costs arising from general
obligation bonds.
Proprietary Funds:
Enterprise Funds are used to account for operations that are financed and operated in a
manner similar to private business enterprises where the intent of the District is that the costs
(expenses including depreciation) of providing services to the general public on a continuing
basis be financed through user charges.
Seay Tennis Center is used to account for the operations of the tennis center that provides
services to the residents of the District and to the District's athletic teams.
Academy for Lifelong Learning is used to account for the operations of the continuing
education school that provides services to the residents of the District.
Internal Service Funds are used to account for the financing of goods or services by one
department to another on a cost reimbursement basis.
Insurance Fund is used to account for the District's partially self-insured workers’
compensation plan.
- 30 -
Fund Accounting - Continued
Fiduciary Funds:
Private Purpose Trust Funds consist of various scholarship funds held in a trustee capacity.
Agency Funds are used to account for assets held by the District in a trustee or agency
capacity for student and employee activities, as well as other organizations.
Budgets and Budgetary Accounting
The District facilitates budgeting and budgetary control by preparing annual budgets for the
General Fund and Debt Service Fund and appropriately amending the budgets as
circumstances dictate; the annual budgets as amended are an integral part of the accounting
system, providing appropriate budgetary control over revenues, expenditures and transfers
through comparison of actual data and encumbrances to budgetary data.
The Superintendent of Schools is designated as the budget officer of the District and is
responsible for preparing, or causing to be prepared, a budget for the next succeeding fiscal
year.
The budget is required to be prepared not later than August 20 at a meeting of the Board of
Trustees called for the purpose of adopting such budget after ten days public notice of the
meeting has been given.
The administration performs semi-annual budget reviews by which budget requirements are reevaluated and revisions recommended to the Board of Trustees. The Board of Trustees may
approve amendments to the budget, which are required when a change is made to any one of
the functional expenditure categories or revenue object accounts defined by the Texas
Education Agency. Such amendments must be reflected in the official minutes of the Board,
and may not, by law, occur after August 31. Therefore, the legal level of budgetary control is at
the function level within each budgeted fund. Management may transfer appropriations
between objects, sub-objects, organizations, programs, and projects without approval from the
Board of Trustees, as long as appropriations are not increased at the function level.
The Texas Education Agency (TEA) requires the budgets to be filed with the Texas Education
Agency through regular submissions to the Public Education Information Management System
(PEIMS). The budget should not be exceeded in any functional expenditure category under
TEA requirements. The final amended versions of these budgets are used in this report.
Unused appropriations lapse at the end of each fiscal year; however, the District increases the
subsequent year appropriations by an amount equal to outstanding encumbrances.
Supplemental appropriations were not significant to the original adopted budget for the fiscal
year ended August 31, 2013.
Budgets for the General and Debt Service Funds are adopted on a basis consistent with
generally accepted accounting principles (GAAP).
- 31 -
Investments
The District’s general policy is to report money market investments and short-term participating
interest-earning investment contracts at amortized cost and to report nonparticipating interestearning investment contracts using a cost-based measure. However, if the fair value of an
investment is significantly affected by the impairment of the credit standing of the issuer or by
other factors, it is reported at fair value. All other investments are reported at fair value unless
a legal contract exists which guarantees a higher value. The term “short-term” refers to
investments, which have a remaining term of one year or less at time of purchase. The term
“nonparticipating” means that the investment’s value does not vary with market interest rate
changes.
Local Tax Revenues and Receivables
Ad valorem taxes are levied from valuations assessed as of January 1 and are recognized as
revenue beginning on the date of levy, October 1, when they become available. Available means
collected within the current period or expected to be collected soon enough thereafter to be used
to pay current liabilities. Taxes not expected to be collected within sixty days of the fiscal year
end are recorded as deferred revenues and are recognized when they become available. Taxes
collected prior to the levy date to which they apply are recorded as deferred revenues and
recognized as revenue of the period to which they apply.
Current taxes are due on October 1 and become delinquent if unpaid on February 1. Pursuant to
Subtitle E of the Texas Property Tax Code, penalties and interest on unpaid taxes are calculated
at the rate of 1% per month of delinquency. On January 1 of each year, a tax lien attaches to
property to secure the payment of all taxes, penalties and interest ultimately imposed.
Allowance for Uncollectible Taxes
An allowance for uncollectible taxes is provided based upon an analysis of historical trends.
Uncollectible personal property taxes are periodically reviewed and written off, but the District is
prohibited from writing-off real property taxes without specific authority from the Texas
legislature.
The District expects to receive all significant receivables within one year of August 31, 2013.
- 32 -
Capital Assets
Capital assets which include land, buildings, furniture and equipment, are reported in the
applicable governmental or business-type activities columns in the government-wide financial
statements. Capital assets are defined by the District as assets with an initial, individual cost of
more than $5,000 and an estimated life of two years or more. Such assets are recorded at
historical cost or estimated historical cost if purchased or constructed. Donated capital assets
are recorded at estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend asset lives are not capitalized. Major outlays for capital assets are capitalized
as projects are constructed.
Buildings, furniture, and equipment of the District are depreciated using the straight line method
over the following estimated useful lives:
Years
Buildings
Building Improvements
Vehicles
Office Equipment
Computer Equipment
10-40
10-20
5-11
5-7
5-7
Compensated Absences
This District does not compensate its employees for unused leave; therefore no accrual for
compensated absences is required.
Long Term Debt
In the government-wide financial statements bond premiums and discounts, as well as
issuance costs, are deferred and amortized over the life of the bonds using the effective
interest method. Bonds payable are reported net of the applicable bond premium or discount.
Bond issuance costs are reported as deferred charges and amortized over the term of the
related debt.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, in the period the debt is issued. 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.
- 33 -
Governmental Fund Financial Statements
The District has adopted the provisions of GASB Statement No. 54, Fund Balance Reporting
and Government Fund Type Definitions. The objective of the statement is to enhance the
usefulness of fund balance information by providing clearer fund balance classifications that
can be more consistently applied and by clarifying the existing government fund type
definitions. The statement establishes fund balance classifications that comprise a hierarchy
based primarily on the extent to which a government is bound to observe constraints imposed
upon the use of the resources reported in governmental funds. Fund balance classifications,
under GASB 54 are Nonspendable, Restricted, Committed, Assigned, and Unassigned. These
classifications reflect not only the nature of funds, but also provide clarity to the level of
restriction placed upon fund balance. Fund balance can have different levels of constraint,
such as external versus internal compliance requirements. Unassigned fund balance is a
residual classification within the General Fund. The General Fund should be the only fund that
reports a positive unassigned balance. In all other funds, unassigned is limited to negative
residual fund balance.
In accordance with GASB 54, the District classifies governmental fund balances as follows:
Nonspendable -- includes amounts that cannot be spent because they are either not in
spendable form, or, for legal or contractual reasons, must be kept intact. This classification
includes inventories, prepaid items and long term receivables.
Restricted -- includes fund balance amounts that are constrained for specific purposes which
are externally imposed by providers, such as creditors or amounts restricted due to
constitutional provisions or enabling legislation. This classification includes the retirement of
long term debt, donations, construction programs and other federal and state grants.
Committed -- includes fund balance amounts that are constrained for specific purposes that are
internally imposed by the District through formal action of the highest level of decision making
authority. Committed fund balance is reported pursuant to resolution passed by the District’s
Board of Trustees. This classification includes campus activity funds, and various other
construction funds.
Assigned -- includes fund balance amounts that are self-imposed by the District to be used for
a particular purpose.
Fund balance can be assigned by the District’s Board, the
Superintendent, or the Superintendent’s designee.
Unassigned -- includes residual positive fund balance within the General Fund which has not
been classified within the other above mentioned categories. Unassigned fund balance may
also include negative balances for any governmental fund if expenditures exceed amounts
restricted, committed, or assigned for those specific purposes.
When both restricted and unrestricted fund balances are available for use, it is the District’s
policy to use restricted fund balance first, then unrestricted fund balance. Furthermore,
committed fund balances are reduced first, followed by assigned amounts and the unassigned
amounts when expenditures are incurred for purposes for which amounts in any of those
unrestricted fund balance classifications can be used.
- 34 -
Debt Service
The ad valorem tax rate is allocated each year between the General Fund and the Debt Service
Fund. The full amount estimated to be required for general obligation bond retirement is
provided by the debt service tax together with interest earned within the Debt Service Fund.
Accounting Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
The amount of state foundation revenue a school district earns for a year may vary until the
time when final values for all factors in the state and formula become available. Availability can
be as late as midway into the next fiscal year. It is at least reasonably possible that the
foundation revenue estimate for the year ended August 31, 2013 will change.
Cash Flow Presentation
For the purpose of presenting the statement of cash flows, the District considers all highly liquid
investments with an original maturity or initial maturity of less than three months to be cash
equivalents.
Interfund Transactions
During the course of normal operations, it is necessary for the District to enter into transactions
among its various funds. These transactions consist of one or more of the following types:
•
•
•
Reimbursements to a fund, which are generally reflected through the allocation of pooled
cash accounts, for expenditures or expenses initially made from it that are properly applicable
to another fund. All interfund receivable / payable balances at August 31, 2013 were the
result of these types of reimbursements and are expected to be repaid within one year.
Transfers in and out, as appropriate, which are shown as other financing sources or uses in
the fund financial statements.
All other outstanding balances between funds are reported as “due to/from other funds” in
the fund financial statements.
- 35 -
Account Code Reporting
The Data Control Codes refer to the account code structure prescribed by TEA in the Financial
Accountability Resource Guide. The Texas Education Agency requires school districts to display
these codes in the financial statements filed with the Agency in order to insure accuracy in
building a statewide data base for policy development and funding plans.
Note 2. Cash and Investments
The funds of the District must be deposited and invested under the terms of a contract,
contents of which are set out in the Depository Contract Law. 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.
At August 31, 2013, the carrying amount of the District’s deposits (cash, certificates of deposit,
and interest-bearing savings accounts included in temporary investments) was $10,246,884
and bank balance was $10,208,601. The District’s cash deposits at August 31, 2013 and
during the year ended August 31, 2013 were entirely covered by FDIC insurance or by pledged
collateral held by the District’s agent bank in the District’s name.
The following is disclosed regarding coverage of combined balances on the date of highest
deposit:
a. Depository: Plains Capital Bank
b. The market value of securities pledged as of the date of the highest combined balance
on deposit was $141,237,328.
c. The highest combined balances of cash, savings, and time deposit accounts amounted
to $113,649,032 on February 6, 2013.
d. Total amount of FDIC coverage at the time of the highest combined balance was
$250,000.
- 36 -
Note 2. Cash and Investments - Continued
Legal and Contractual Provisions Governing Deposits and Investments
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. Statutes and the District’s investment
policy authorized the District to invest in the following investments as summarized in the
table below:
Maximum
Maximum
Authorized
Maximum
Percentage Investment
Investment Type
Maturity
of Portfolio In One Issuer
U.S. Treasury Obligations
1 year
None
None
U.S. Agency Securities
1 year
None
None
State of Texas Securities
1 year
None
None
Certificates of Deposit
1 year
None
None
Money Market
None
None
Repurchase agreements
90 days
15%
None
Mutual Funds
15%
None
Investment pools
None
None
Guaranteed investment contracts
1 year
None
None
Commercial paper
270 days
None
None
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.
Cash and cash investments as of August 31, 2013 are classified in the accompanying financial
statements as follows:
Primary Government:
Current investments
$ 16,684,971
19,852,372
Fiduciary Funds:
Current investments
Restricted assets
105,428
125,587
145,035
Total cash and investments
- 37 -
$ 36,913,393
Note 2. Cash and Investments – Continued
Cash and investments as of August 31, 2013 consist of the following:
$
Cash on hand
Deposits with financial institutions
Investments
Total cash and investments
5,755
10,246,884
26,660,754
$ 36,913,393
Disclosures relating to interest rate risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair
value of an investment. Generally, the longer the maturity of an investment the greater the
sensitivity of its fair value to changes in market interest rates. By policy the District shall use
final and weighted-average maturity limits and diversification to reduce exposure to changes in
interest rates. One of the ways that the District manages its exposure to interest rate risk is by
investing mainly in investment pools which purchase a combination of shorter term investments
with an average maturity of less than 60 days thus reducing the interest rate risk. The District
monitors the interest rate risk inherent in its portfolio by measuring the weighted average
maturity of its portfolio.
As of August 31, 2013, the District had the following investments:
Investment Type
Lone Star Investment Pool
Certificates of Deposit
Common Stock
Total Investments
$
$
Amount
6,537,760
19,977,959
145,035
Weighted
Average
Maturity
57 days
70 days
NA
Minimum
Legal
Rating
N/A
N/A
N/A
Rating as
of Year
End
Triple A
Not rated
Triple A
26,660,754
As of August 31, 2013 the District did not invest in any securities which are highly sensitive to
interest rate fluctuations.
Disclosures relating to credit risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. This is measured by the assignment of a rating by a nationally
recognized statistical rating organization. The table in the previous section lists the minimum
rating required by (where applicable) the Public Funds Investment Act, the District’s investment
policy, or debt agreements, and the actual rating as of year-end for each investment type.
- 38 -
Note 2. Cash and Investments – Continued
Concentration of credit risk
The investment policy of the District contains no limitations on the amount that can be invested
in any one issuer. As of August 31, 2013 other than external investment pools the District did
not have 5% or more of its investment with one issuer.
Custodial credit risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover its deposits or will not be able to
recover collateral securities that are in the possession of an outside party. The custodial credit
risk for investments is the risk that, in the event of the failure of the counterparty to a
transaction, a government will not be able to recover the value of its investment or collateral
securities that are in the possession of another party. The Public Funds Investment Act and
the District’s investment policy do not contain legal or policy requirements that would limit the
exposure to custodial credit risk for deposits or investments, other than the following provision
for deposits: The Public Funds Investment Act requires that a financial institution secure
deposits made by state or local governmental units by pledging securities in an undivided
collateral pool held by a depository regulated under state law (unless so waived by the
governmental unit). The market value of the pledged securities in the collateral pool must
equal at least the bank balance less the FDIC insurance at all times.
As of August 31, 2013 the District deposits with financial institutions in excess of federal
depository insurance limits were fully collateralized.
The Lone Star Investment Pool (the “Pool”) is organized in conformity with the Interlocal
Cooperation Act, Chapter 791 of the Texas Government Code, and the Public Funds Investment
Act, Chapter 2256 of the Texas Government Code. The Pool is governed by an 11 member
Board of Trustees, consisting of individuals representing entities participating in the Pool. The
fair value of the District’s position in the Pool is the same as the value of the Pool shares.
- 39 -
Note 3. Due From Other Governments
The District participates in a variety of state programs from which it receives grants to partially or
fully finance certain activities. In addition, the District receives entitlements from the State
through the School Foundation and Per Capita Programs. Amounts due from state governments
as of August 31, 2013, are as follows:
Fund
Due From State
General
Non-major:
IDEA-B Formula
IDEA-B Preschool
$
228,535
87,939
580
Total Non-major
88,519
Total
$
317,054
Note 4. Other Receivables
Other receivables recorded in the fund level financial statements consisted of the following at
August 31, 2013:
General
Fund
Sports Club gift receivable
PTA gifts receivable
Sundry receivable
Miscellaneous receivable
- 40 -
Capital
Projects
Non-Major
Funds
$
128,500 $
38,826
30,839
7,189
$
35,080
-
4,622
$
205,354 $
35,080 $
4,622
Note 5. Interfund Receivables/Payables
Schedule of Interfund receivables and payables at August 31, 2013, is as follows:
Receivable Fund
Payable Fund
Amount
Purpose
General Fund:
General Fund
General Fund
General Fund
Non-Major Funds
Trust and Agency
Capital Projects Funds
Total Due From Other Funds
Non-Major Funds
Internal Service Fund
Enterprise Funds
Agency Funds
General Fund
General Fund
General Fund
General Fund
Total Due To Other Funds
$
54,014
6
405,090
$
459,110
$
2,887,793
72,128
1,441,679
2,021,122
Operational
Operational
Operational
(1)
Operational
Operational
Operational
Operational
$
6,422,722
$
405,090
$
405,090
$
5,215
2,887,793
$
2,893,008
$
54,014
$
54,014
$
1,441,679
$
1,441,679
General Fund
$
$
72,128
72,128
Operational
General Fund
General Fund
$
9,634
2,011,488
Operational
Operational
$
2,021,122
Agency Funds
$
5,215
6
$
5,221
Capital Projects Funds:
General Fund
Capital Projects Funds
Total Due To From Other Funds
Operational
Non-Major Funds:
Non-Major Funds
Non-Major Funds
Agency Funds
General Fund
General Fund
Non-Major Funds
(2)
Operational
Operational
Operational
Enterprise Funds:
Enterprise Funds
General Fund
Operational
Internal Service Funds:
Internal Service Funds
Agency Funds:
Agency Funds
Agency Funds
Non-Major Funds
General Fund
Operational
Operational
(1) Reclassified to accounts payable in the government – wide Statement of Net Position
(2) Reclassified to other receivables in the Government – wide Statement of Net Position
- 41 -
Note 6. Capital Asset Activity
Capital asset activity for the District for the year ended August 31, 2013, was as follows:
Beginning
Additions
Balance
Retirements/
Ending
Transfers
Balance
Governmental Activities:
Capital assets,
not depreciated:
Land
$
23,296,152
$
-
-
$
-
$
23,296,152
3,504,813
-
3,504,813
23,296,152
3,504,813
-
26,800,965
172,885,961
339,737
-
173,225,698
12,169,667
362,873
(115,030)
12,417,510
185,055,628
702,610
(115,030)
185,643,208
Total capital assets
not depreciated
Capital assets,
being depreciated:
Furniture, equipment and
other
being depreciated
Less accumulated
depreciation for:
(52,194,420)
(4,174,259)
-
(56,368,679)
(7,361,568)
(1,169,477)
71,246
(8,459,799)
(59,555,988)
(5,343,736)
71,246
(64,828,478)
125,499,640
(4,641,126)
(43,784)
120,814,730
(1,136,313) $
(43,784) $
147,615,695
Furniture, equipment and
other
Total accumulated
depreciation
Total capital assets, being
depreciated, net
Governmental activities capital
assets, net
$
148,795,792
$
Business-type Activities:
Capital assets,
not depreciated:
151,900
-
(151,900)
-
151,900
-
(151,900)
-
not depreciated
Capital assets,
being depreciated:
$
310,163 $
-
$
-
$
310,163
6,548
194,908
-
201,456
316,711
194,908
-
511,619
(205,872)
(11,233)
-
(217,105)
(6,548)
(19,491)
-
(26,039)
(212,420)
(30,724)
-
(243,144)
104,291
164,184
-
268,475
(151,900) $
268,475
being depreciated
Less accumulated
depreciation for:
Total accumulated
depreciation
Total capital assets, being
depreciated, net
Business-type activities capital
assets, net
$
- 42 -
256,191
$
164,184
$
Note 6. Capital Asset Activity – Continued
Depreciation expense was charged to governmental functions as follows:
Instruction
Instructional Resources and Media Services
Curriculum and Instructional Staff Development
Instructional Leadership
School Leadership
Guidance, Counseling and Evaluation Services
Health Services
Food Services
Cocurricular/ Extracurricular Activities
General Administration
Plant Maintenance and Operations
Data Processing Services
$
3,630,997
71,225
102,665
104,676
298,026
276,757
55,707
144,357
146,983
194,696
284,497
33,150
Total Depreciation Expense
$
5,343,736
The District has active construction commitments totaling $1,509,426 as of August 31, 2013.
Note 7. Deferred Revenues
Deferred revenue at year end in the fund level financial statements consisted of the following:
General
Fund
Debt
Service
Fund
Other
Non-Major
Funds
Total
Net Tax Revenue
Donations
Student Fees
Athletic Receipts
$
1,513,293 $ 132,212 $
500,000
152,502
714,836
-
$
12,800
784,539
-
1,645,505
512,800
937,041
714,836
Total
$
2,880,631 $ 132,212 $
797,339 $
3,810,182
Note 8. Risk Management
The District is exposed to various risk of loss related to torts, theft or damage to and destruction of
assets; errors and omissions and national disasters for which the District carries commercial
insurance. There have been no significant reductions in coverage from the prior year and
settlements have not exceeded coverage in the past three years.
- 43 -
Note 8. Risk Management - Continued
As of August 31, 2011, the District discontinued all of the self-funded medical plans. At that time,
employees became eligible to purchase health insurance through TRS-Active Care which is the
statewide health plan for public education employees established by the 77th Texas Legislature and
is a fully insured plan administered by Blue Cross and Blue Shield of Texas. Additionally, the
District maintains a self-insured worker's compensation plan administered by the Texas
Association of School Boards. For this plan, stop-loss coverage was in effect with an aggregate
limit of $365,305.
Self-insurance fund revenues and expenses are recognized on the accrual basis. Unpaid claims
filed prior to August 31 and subsequently approved by the administrator of the plan are recorded as
a liability.
2013
Health
Claims payable, beginning of year
Claims incurred for and changes in estimates
Claim payments
Claims payable, end of year
$
2012
-
$
$
$
776,279
(394,480)
(381,799)
-
Because remaining claims under the District’s self-funded medical plan were less than the
estimated claims payable as of August 31, 2011, reversal of the remaining balance resulted in a
negative expense for the year ended August 31, 2012.
Workers' Compensation
Claims payable, beginning of year
Claims incurred for and changes in estimates
Claim payments
Claims payable, end of year
- 44 -
$
$
2013
2012
328,426 $
104,237
(163,267)
269,396 $
271,732
232,852
(176,158)
328,426
Note 8. Risk Management - Continued
End-of-year claims payable for Workers’ Compensation includes an estimate of incurred but
unreported claims reserve loss. This liability is based on requirements of Governmental
Accounting Standards Board Statement No. 10, which requires that a liability has been incurred
as of the date of the financial statements and the amount of loss can be reasonably estimated.
Because actual claim liabilities depend on such complex factors as inflation, changes in legal
doctrines, and damage awards, the process used in computing the liability does not result
necessarily in an exact amount. The liability booked was the discounted actuarial estimate at the
mean funding level. The District does not provide any post-retirement health benefits to its
employees
Note 9. Bonds Payable
General long-term debt of the District consists of Unlimited Tax School Building Bonds payable.
Debt service requirements are payable solely from future revenues of the Debt Service Fund
which consist principally of property taxes collected by the District and investment income.
General obligation bonds payable at August 31, 2013, are summarized as follows:
Interest
Rate
Payable
Final
Maturity
Unlimited Tax
Refunding Bonds,
Series 2005
3.00%
to
5.00%
2019
Unlimited Tax School
Building Bonds,
Series 2008
4.00%
to
5.00%
Unlimited Tax School
Building Bonds,
Series 2009
Description
Payable
Amounts
Outstanding
9/1/2012
Amounts
Original
Issue
Retired
Outstanding
8/31/2013
-
$ 27,005,000
$ 9,595,000
2,045,000
62,105,000
Issued
$
40,195,000
$ 36,600,000
2028
70,000,000
64,150,000
-
3.50%
to
5.00%
2028
5,400,000
5,400,000
-
Maintenance
Tax Note,
Series 2011
0.25%
to
2.00%
2018
3,045,000
2,635,000
-
Unlimited Tax
Refunding Bonds,
Series 2013
2.00%
to
4.00%
2019
22,285,000
Total
$
-
22,285,000
$ 108,785,000 $ 22,285,000 $
- 45 -
-
425,000
-
5,400,000
2,210,000
22,285,000
29,475,000 $ 101,595,000
Note 9. Bonds Payable – Continued
Debt service requirements are as follows:
General Obligations
Year Ended
August 31,
2014
2015
2016
2017
2018
2019-2023
2024-2028
Principal
7,080,000 $
7,405,000
7,640,000
7,915,000
8,220,000
29,835,000
33,500,000
Interest
4,314,393 $
3,988,043
3,689,743
3,403,980
3,080,755
11,178,347
4,173,138
Total
Requirements
11,394,393
11,393,043
11,329,743
11,318,980
11,300,755
41,013,347
37,673,138
101,595,000 $
33,828,399 $
135,423,399
$
$
Note 10. Changes in Long Term Liabilities
A summary of changes in general long-term debt follows:
Beginning
Balance
Additions
Reductions
Ending
Balance
22,285,000 $
2,062,217
(2,040,994)
(29,050,000) $
(425,000)
(1,176,238)
951,911
99,385,000 $
2,210,000
2,632,431
(2,210,333)
Due Within
One Year
Governmental Activities:
Bonds Payable:
General Obligation Bonds
Maintenance Tax Notes
Premium on Bonds
Deferred loss on refunding
Total Governmental Activities
Long-term Liabilities
$
106,150,000 $
2,635,000
1,746,452
(1,121,250)
$ 109,410,202 $
22,306,223 $ (29,699,327) $ 102,017,098 $
6,655,000
425,000
578,911
(527,455)
7,131,456
During the year ended August 31, 2013, the District issued $22,285,000 Unlimited Tax Refunding
Bonds, Series 2013. Net proceeds from the sale of the bonds and an issuer contribution totaled
$24,821,948. Of these proceeds, $24,714,331 was placed with an escrow agent to provide for all
future debt payments of the refunded bonds.
This refunding resulted in a decrease in the District’s debt service payments of $1,442,756, which
resulted in an economic gain (difference between the present value of the debt service payments of
the old debt and new debt) of $1,373,710. As a result of this transaction, $22,545,000 of Unlimited
Tax Refunding Bonds, Series 2005 were refunded and are considered legally defeased, and are no
longer included in the District’s basic financial statements.
- 46 -
Note 11. Local, Intermediate and Out-of-State Revenues
During the current year, revenues from local and intermediate sources in the fund level
financial statements consisted of the following:
General
Fund
Property Taxes
Penalties and Interest
Tuition and Fees
Investment Earnings
Rent
Parking Garage Fees
Gifts
Athletic Activities
Co-curricular Activities
Total
Capital
Projects
Funds
Non - Major Funds
Special
Debt
Revenue
Service
Funds
Fund
Total
Governmental
Funds
$
106,551,334 $
462,357
445,389
249,426
200,502
90,765
2,200,469
474,929
-
$
22,233
422,311
-
$
1,067,600
4,521
3,115,472
759,417
11,155,099 $
47,596
15,734
-
117,706,433
509,953
1,512,989
291,914
200,502
90,765
5,738,252
474,929
759,417
$
110,675,171 $
444,544 $
4,947,010 $
11,218,429 $
127,285,154
Note 12. Employees’ Retirement Plan
Plan Description. The Highland Park Independent School District contributes to the Teacher
Retirement System of Texas (TRS), a cost-sharing multiple employer defined benefit pension
plan. TRS administers retirement and disability annuities, and death and survivor benefits to
employees and beneficiaries of employees of the public school systems of Texas. It operates
primarily under the provisions of the Texas Constitution, Article XVI, Sec. 67, and Texas
Government Code, Title 8, Subtitle C. TRS also administers proportional retirement benefits
and service credit transfers under Texas Government Code, Title 8, Chapters 803 and 805,
respectively. The Texas State Legislature has the authority to establish and amend benefit
provisions of the pension plan and may, under certain circumstances, grant special authority to
the TRS Board of Trustees. TRS issues a publicly available financial report that includes
financial statements and required supplementary information for the defined benefit pension
plan. That report may be obtained by writing to the TRS Communications Department, 1000
Red River Street, Austin, Texas 78701, by calling the TRS Communications Department at
1-800-223-8778, or by downloading the report from the TRS Internet website,
www.trs.state.tx.us, under the TRS Publications heading.
Funding Policy. Contribution requirements are not actuarially determined, but are established
and amended by the Texas State Legislature. The state funding policy is as follows: (1) The
state constitution requires the legislature to establish a member contribution rate of not less
than 6.0% of the member’s annual compensation and a state contribution rate of not less than
6.0% and not more than 10% of the aggregate annual compensation of all members of the
system; (2) A state statute prohibits benefit improvements or contribution reductions if, as a
result of a particular action, the time required to amortize TRS’s unfunded actuarial
liabilities would be increased to a period that exceeds 31 years, or, if the amortization period
already exceeds 31 years, the period would be increased by such action State law provides
- 47 -
Note 12. Employees’ Retirement Plan – Continued
for a member contribution rate of 6.4% for fiscal years 2013-2011, and a state contribution rate
of 6.4% for fiscal year 2013, 6.0% for fiscal year 2012, and 6.644% for fiscal year 2011. In
certain instances the reporting district is required to make all or a portion of the state’s
contribution, limited to 6.644% for fiscal year 2011, 6.0% for fiscal year 2012, and 6.4% for
fiscal year 2013. State contributions to TRS made on behalf of the Highland Park Independent
School District’s employees for the years ended August 31, 2013, 2012, and 2011 were
$2,444,251, $2,215,806, and $2,186,317 respectively. The District has recognized these
payments as both revenue and expenditures.
Note 13. 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 Systems of Texas. The statutory
authority for the program is Texas Insurance Code, Chapter 1575. Section 1575.052 grants
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 website 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, or by calling
1-800-223-8778.
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 0.50% and 0.65% of public
school payroll, respectively, for fiscal year 2013, and 1.0% and 0.65% of public school payroll,
respectively, for fiscal years 2012 and 2011. The school district contributed a percentage of
payroll set at 0.55% for fiscal years 2013, 2012, and 2011. 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,
2013, 2012 and 2011, the active member contributions were $248,504, $241,188, and
$239,458, respectively, and the school district’s contributions were $210,273, $204,082, and
$202,586, respectively, which equaled the required contributions each year. In addition, the
State of Texas contributed $101,064, $95,214, and $84,299 in 2013, 2012, and 2011,
respectively, for on-behalf payments for Medicare, Part D and $90,041 in 2012 under the
temporary Early Retiree Reinsurance Program (ERRP). As ERRP was a temporary program
that TRS participated in during fiscal year 2012, there was no funding received for fiscal year
2013 under this program. The District has recognized these payments as both revenues and
expenditures.
- 48 -
Note 14. Interfund Transfers
All interfund transfers between various funds are approved supplements to the operations of
those funds. Individual fund operating transfers for fiscal year 2013 were as follows:
Transfer In
Transfer Out
Capital Projects
General Fund
General Fund
Enterprise Fund
Amount
$
$
Purpose
595,000
Field turf and future projects
400,000
Operating transfer for budget purposes
995,000
Note 15. New Accounting Pronouncements
The GASB issued Statement No. 65, Items Previously Reported as Assets and Liabilities,
which will be effective for periods beginning after December 15, 2012. The Statement
reclassifies certain items that were previously reported as assets and liabilities, as deferred
outflows or inflows of resources, and recognizes these items as outflows or inflows of
resources. This statement applies to all state and local governmental entities. The District will
evaluate the impact of the standard on its Financial Statements and will take the necessary
steps to implement it.
The GASB Issued Statement No. 66, Technical Conditions, an Amendment of GASB
statements 10 and 62, which will be effective for periods beginning after December 15, 2012.
The objective of the statement is to improve accounting and financial reporting by resolving
conflicting guidance caused by the issuance of two recent pronouncements: statements 54 and
62. The District will evaluate the impact of the standard on its financial statements and take the
necessary steps to implement it.
The GASB issued Statement No. 67, Financial Reporting for Pension Plans, which will be
effective for periods beginning after June 15, 2013. The objective of this Statement is to
improve financial reporting of state and local governmental pension plans with regard to
providing decision-useful information, supporting assessments of accountability and interperiod
equity, and creating additional transparency. This Statement applies to all state and
governmental entities and amends Statements 25 and 50. The District will evaluate the impact
of the standard on its Financial Statements and will take the necessary steps to implement it.
The GASB issued Statement No. 68, Accounting and Financial Reporting for Pensions, which
will be effective for periods beginning after June 15, 2014. The objective of this Statement is to
improve accounting and financial reporting of state and local governmental pension plans. This
Statement applies to all state and governmental entities and replaces Statements 27 and 50.
The District will evaluate the impact of the standard on its Financial Statements and will take
the necessary steps to implement it.
- 49 -
Note 15. New Accounting Pronouncements – Continued
The GASB issued Statement No. 69, Governmental Combinations and Disposals of Government
Operations, which will be effective for periods beginning after December 15, 2013. The objective
of this Statement is to establish accounting and financial reporting standards related to
government combinations and disposals of government operations. The District will evaluate the
impact of the standard on its Financial Statements and will take the necessary steps to
implement it.
The GASB issued Statement No. 70, Accounting and Financial Reporting for Nonexchange
Financial Guarantees, which will be effective for periods beginning after June 15, 2013. The
objective of this Statement is to require a state or local government guarantor that offers a
nonexchange financial guarantee to another organization or government to recognize a liability
on its financial statements when it is more likely than not that the guarantor will be required to
make a payment to the obligation holders under the agreement. The District will evaluate the
impact of the standard on its Financial Statements and will take the necessary steps to
implement it.
- 50 -
- 51 -
- 52 -
BUDGETARY COMPARISON SCHEDULE – GENERAL FUND
Data
Control
Codes
5700
5800
5020
0011
0012
0013
0021
0023
0031
0033
0035
0036
0041
0051
0052
0053
0071
0072
0073
0091
0092
6030
1100
7915
8911
7080
1200
0100
3000
EXHIBIT F-1
Budgeted Amounts
Original
Final
REVENUES:
$ 111,451,018 $
11,032,271
Total revenues
EXPENDITURES:
CURRENT:
Instruction
Instructional resources and media services
Curriculum and instructional staff development
School leadership
Health services
Food service
Cocurricular/extracurricular activities
Principal on long-term debt
Interest on long-term debt
Bond issuance costs and fees
Incremental costs associated with Chapter 41
Total expenditures
Deficiency of revenues over expenditures
111,451,018 $
11,461,869
110,675,171 $
11,248,260
(775,847)
(213,609)
122,483,289
122,912,887
121,923,431
(989,456)
32,425,955
703,044
1,421,159
866,222
2,577,295
2,719,303
511,592
1,289,122
2,118,033
2,470,071
5,763,490
150,176
848,636
425,000
38,657
750
68,537,957
357,525
32,403,141
705,764
1,288,510
1,010,915
2,686,311
2,673,273
520,719
1,339,826
2,218,450
2,788,177
5,683,504
175,176
799,930
425,000
38,657
750
68,537,957
357,525
32,242,710
669,203
1,144,915
977,660
2,654,081
2,630,160
507,438
1,275,511
2,197,211
2,743,315
5,076,457
156,313
767,992
425,000
38,656
68,513,500
347,744
160,431
36,561
143,595
33,255
32,230
43,113
13,281
64,315
21,239
44,862
607,047
18,863
31,938
1
750
24,457
9,781
123,223,987
123,653,585
122,367,866
1,285,719
(740,698)
(740,698)
(444,435)
400,000
-
400,000
(595,000)
400,000
(595,000)
400,000
(340,698)
17,369,574
17,028,876 $
(195,000)
(935,698)
17,369,574
16,433,876 $
(195,000)
(639,435)
17,369,574
16,730,139 $
OTHER FINANCING (USES) :
Transfers in
Transfers out (use)
Total other financing (uses)
Net change in fund balances
$
Actual Amounts
(GAAP BASIS)
Variance With
Final Budget
Positive or
(Negative)
- 53 -
296,263
296,263
296,263
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED AUGUST 31, 2013
Note 1.
Summary of Significant Accounting Policies
Official Budget
The District is required by state law to adopt annual budgets for its General and Debt Service
Fund. Each budget is presented on the modified accrual basis of accounting, which is
consistent with generally accepted accounting principles (GAAP).
The following procedures are followed in establishing the budgetary data reflected in the
financial statements:
Prior to August 20 of the preceding fiscal year, the District prepares a budget for the next
succeeding fiscal year beginning September 1. The operating budget includes proposed
expenditures and the means of financing them.
A meeting of the Board of Trustees is then called for the purpose of adopting the proposed
budget after ten days public notice of the meeting has been given. Prior to September 1, the
Board of Trustees legally enacts the budget through passage of a resolution.
The approved budget is filed with the Texas Education Agency.
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. Amendments are presented to the
Board at their regular meetings. Each amendment must have Board approval. Such
amendments are made before the fact, are reflected in the official minutes of the Board, and
are not made after fiscal year-end as dictated by law.
- 54 -
Combining Statements and Schedule
- 55 -
- 56 -
NON MAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
The Special Revenue Funds account for the proceeds of specific revenue sources that have been
restricted to expenditures for specific purposes other than expendable trusts or for major capital
projects. The programs included within these funds are as follows:
IDEA-B Formula Fund is funded by the U.S. Department of Education, as passed through the State
of Texas, for the purpose of providing special education and related services to children with
disabilities, ages 3-21.
IDEA-B Preschool Fund is funded by the U.S. Department of Education, as passed through the
State of Texas, for the purpose of providing special education and related services to children with
disabilities, ages 3-5.
Advanced Placement Incentives Fund receives State Program Revenue to support professional
development of teachers teaching advanced classes.
Textbook Allotment Fund is for funds awarded to school districts under the textbook allotment.
Special Education Needs Fund is for the purpose of benefitting children with disabilities in the
District by building staff capacity and providing for exceptional expenditures beyond the budget,
such as specialized training, assistive technology, and other educational services to benefit
students with disabilities.
State Funded Special Revenue Fund is used to account for activities related to the Read to
Succeed license plate program designed to help generate money for public libraries and
strengthen the campus reading program.
Campus Activity Funds - each campus has an activity fund and the campus principal is
accountable for all aspects of the fund at that campus. Revenues are generated by sales and fund
raising events at the campus locations.
Summer Camps Fund is used to account for fees received by the District for summer camps and
their related expenditures.
Gifts Fund is used to account for donations received by the District with donor imposed restrictions.
Debt Service Fund
The Debt Service Fund is utilized to account for the accumulation of resources for, and the
payment of, governmental long term debt principal, interest, and related costs arising from general
obligation bonds.
- 57 -
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
AUGUST 31, 2013
224
IDEA-B
Formula
Fund
1110
1120
1220
1230
1240
1250
1260
1290
ASSETS
Current investments
Property taxes - delinquent
Allowance for uncollectible
taxes (credit)
Accrued interest
Other receivables
Total assets
$
$
3545
3600
3000
LIABILITIES AND FUND BALANCES
Accounts payable
$
Due to other funds
Deferred revenue
Total liabilities
Fund balances:
Restricted for:
State funded special revenue
Debt service
Donor stipulations
Committed for:
Campus activities
Unassigned
Total fund balances
4000
Total liabilities and fund balances
2110
2160
2170
2300
3450
3450
3480
3490
$
-
225
IDEA-B
Preschool
Fund
$
-
397
Advanced
Placement
Incentives
$
410
Textbook
Allotment
-
87,939
87,939 $
580
375
955 $
104,668
104,668
$
33,925
54,014
87,939
$
955
955
260
260
428
Special
Education
Needs Fund
-
$
$
$
18,134
18,134 $
-
$
192,934
192,934
421
1,963
2,384
-
-
104,408
-
18,134
-
190,550
-
-
104,408
18,134
190,550
955 $
104,668
18,134 $
192,934
87,939 $
- 58 -
EXHIBIT G-1
429
State Funded
Special
Revenue Fund
-
461
Campus
Activity
Funds
$
2,093
2,093 $
-
$
2,093
-
344,312 $
627,937
-
480
Summer
Camps
Fund
Total
Nonmajor
Special
Revenue Funds
Gifts
3,343
1,103,388
2,078,980 $
646
150
796 $
1,470,770
1,450
1,472,220 $
344,312 $
627,937
88,519
3,343
2,893,008
1,600
3,958,719 $
19,079 $
784,539
803,618
$
12,808
12,808
45,847 $
12,800
58,647
65,607 $
49,651
54,014
797,339
966,611
-
2,093
1,275,362
1,275,362
2,093 $
2,078,980 $
-
499
$
-
-
-
1,413,573
(12,012)
(12,012)
796 $
$
599
Debt
Service
Total
Nonmajor
Governmental
Funds
1,429,919 $
155,544
1,774,231
627,937
155,544
(23,331)
3,022
1,565,154 $
(23,331)
88,519
3,343
2,893,008
4,622
5,523,873
$
132,212
132,212
65,607
49,651
54,014
929,551
1,098,823
1,432,942
-
104,408
20,227
1,432,942
1,604,123
1,413,573
104,408
20,227
1,604,123
1,275,362
(12,012)
2,992,108
1,432,942
1,275,362
(12,012)
4,425,050
1,472,220 $
3,958,719 $
1,565,154 $
5,523,873
- 59 -
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES
NONMAJOR GOVERNMENTAL FUNDS
224
IDEA-B
Formula
Fund
REVENUES:
5700 Total local and intermediate sources
5800 State program revenues
5900 Federal program revenues
5020
Total Revenues
EXPENDITURES:
Current:
0011 Instruction
0012 Instructional resources and media services
0013 Curriculum and staff development
0021 Instructional leadership
0023 School leadership
0031 Guidance, counseling, and evaluation services
0033 Health services
0034 Student Pupil Transportation
0035 Food service
0036 Cocurricular/Extracurricular activities
0041 General administration
0051 Plant maintenance and operations
0053 Data processing services
Debt Service:
0071 Debt Service - Principal on long-term debt
0072 Debt Service - Interest on long-term debt
0073 Debt Service - Bond issuance costs and fees
6030
Total expenditures
1100
Excess (deficiency) of revenues over
(under) expenditures
OTHER FINANCING SOURCES (USES):
7901 Refunding bonds issued
7916 Premium or discount on issuance of bonds
8940 Payments to bond refunding escrow agent (use)
7080
Total other financing sources (uses)
1200
$
Net change in fund balance
0100 Fund Balance - September 1 (beginning)
3000 Fund Balance- August 31 (ending)
$
782,624
782,624
225
IDEA-B
Preschool
Fund
$
15,443
15,443
397
Advanced
Placement
Incentives
Textbook
Allotment
$
$
-
410
-
595,900
1,140
185,584
-
15,443
-
1,483
5,695
3,980
-
782,624
204,009
204,009
428
Special
Education
Needs Fund
$
4,336
4,336
-
156,285
29,628
-
1,346
38,291
38,136
-
15,443
11,158
185,913
77,773
-
-
(11,158)
18,096
(73,437)
-
-
-
-
-
-
-
(11,158)
18,096
(73,437)
-
-
38
18,134
263,987
190,550
- 60 -
$
115,566
$ 104,408
$
$
EXHIBIT G-2
$
$
47
47
1,675,781
1,675,781
$
Total
Nonmajor
Special
Revenue Funds
499
Gifts
298,594
15,583
314,177
$ 2,972,635
2,972,635
$
4,947,010
223,975
798,067
5,969,052
11,218,429
11,218,429
$
16,165,439
223,975
798,067
17,187,481
4,328,161
184,617
409,277
393
113,704
84,167
1,324
185,584
13,722
469,938
12,043
67,160
27,218
-
6,505,000
4,393,336
117,577
16,913,221
127,057
71,744
202,516
274,260
2,139,551
57,208
355,574
393
39,979
7,679
1,169
13,722
123,882
12,043
67,160
27,218
-
1,645,093
333,726
30,688
(19,549)
-
-
47
30,688
(19,549)
127,057
71,744
2,046
2,093
1,244,674
1,275,362
7,537
(12,012)
1,286,516
$ 1,413,573
2,920,364
2,992,108
$
$
6,505,000
4,393,336
117,577
11,015,913
333,726
-
$
Debt
Service
2,845,578
1,418,153
127,409
8,577
69,745
8,724
155
12,330
-
-
Total
Nonmajor
Governmental
Funds
599
4,328,161
184,617
409,277
393
113,704
84,167
1,324
185,584
13,722
469,938
12,043
67,160
27,218
5,897,308
-
47
$
480
Summer
Camps
Fund
461
Campus
Activity
Funds
429
State Funded
Special
Revenue Fund
- 61 -
$
22,285,000
2,062,217
(24,714,331)
(367,114)
22,285,000
2,062,217
(24,714,331)
(367,114)
-
-
(92,854)
(164,598)
$
1,597,540
1,432,942
$
4,517,904
4,425,050
BUDGETARY COMPARISON SCHEDULE
DEBT SERVICE FUND
Actual Amounts
(GAAP BASIS)
Data
Control
Codes
Budgeted Amounts
Original
Final
5700
5020
REVENUES:
Total revenue
0071
0072
0073
EXPENDITURES:
Debt Service - Principal on long-term debt
Debt Service - Interest on long-term debt
Debt Service - Bond issuance costs and fees
6030
7901
7916
8940
7080
EXHIBIT G-3
$ 11,222,640 $
11,222,640
Total expenditures
Excess (deficiency) of revenues over
(under) expenditures
0100
3000
11,218,429 $
11,218,429
(4,211)
(4,211)
6,505,000
4,893,030
4,000
6,505,000
4,893,030
4,000
6,505,000
4,393,336
117,577
499,694
(113,577)
11,402,030
11,402,030
11,015,913
386,117
202,516
381,906
(179,390)
OTHER FINANCING SOURCES:
Refunding bonds issued
Premium or discount on issuance of bonds
Payments to bond refunding escrow agent (use)
Total other financing sources
1200
11,222,640 $
11,222,640
Variances With
Final Budget
Positive or
(Negative)
(179,390)
$
- 62 -
(179,390)
(179,390)
22,285,000
2,062,217
(24,714,331)
(367,114)
(164,598)
1,597,540
1,597,540
1,597,540
1,418,150 $
1,418,150 $
1,432,942 $
22,285,000
2,062,217
(24,714,331)
(367,114)
14,792
14,792
NONMAJOR ENTERPRISE FUNDS
Enterprise Funds
The Enterprise Funds account for operations that are financed and operated in a manner similar to
private business enterprises where the intent of the District is that of costs (expenses including
depreciation) of providing services to the general public on a continuing basis be financed through
user charges. The Fund is comprised of the following individual funds:
Seay Tennis Center is used to account for the operations of the tennis center that provides
services to the residents of the District and to the District’s athletic teams.
Academy for Lifelong Learning is used to account for the operations of the continuing education
school that provides services to the residents of the District.
- 63 -
COMBINING STATEMENT OF NET POSITION
AUGUST 31, 2013
EXHIBIT G-4
700
Seay
Tennis
Center
ASSETS
CURRENT ASSETS:
Current investments
Accrued interest
$
NONCURRENT ASSETS:
Capital assets:
buildings and improvements
furniture and equipment
Total Noncurrent Assets
Total assets
LIABILITIES
Accounts payable
Total liabilities
NET POSITION
Net investment in capital assets
Unrestricted net position
Total net position
50,064 $
703,289
3,744
31,876
788,973
- 64 -
$
1,409,803
1,409,803
Total
Nonmajor
Enterprise
Funds
50,064
703,289
3,744
1,441,679
2,198,776
310,163
-
310,163
(217,105)
201,456
-
(217,105)
201,456
(26,039)
268,475
1,057,448
-
(26,039)
268,475
2,467,251
5,121
5,121
$
711
Academy
For Lifelong
Learning
268,475
783,852
1,052,327 $
1,409,803
2,503
21,344
23,847
1,385,956
1,385,956 $
7,624
21,344
28,968
268,475
2,169,808
2,438,283
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
EXHIBIT G-5
700
Seay
Tennis
Center
OPERATING REVENUES:
$
711
Academy
For Lifelong
Learning
Total
Nonmajor
Enterprise
Funds
631,562 $
942,050 $
1,573,612
Total operating revenues
OPERATING EXPENSES:
Payroll costs
Professional and contractual services
Supplies and materials
Depreciation expense
Total operating expenses
631,562
942,050
1,573,612
369,106
38,058
12,588
30,724
450,476
489,133
71,854
29,919
75,644
666,550
858,239
109,912
42,507
30,724
75,644
1,117,026
Operating income
NONOPERATING REVENUES:
Earnings from temporary deposits and investments
181,086
275,500
456,586
4,691
18,390
22,437
4,691
40,827
23,081
22,437
45,518
204,167
297,937
502,104
Total nonoperating revenues
Income before transfers
Transfers out
(400,000)
Total net position- September 1 (Beginning)
Total net position - August 31 (Ending)
$
- 65 -
-
(195,833)
297,937
1,248,160
1,052,327 $
1,088,019
1,385,956 $
(400,000)
102,104
2,336,179
2,438,283
COMBINING STATEMENT OF CASH FLOWS
EXHIBIT G-6
700
Seay
Tennis
Center
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from user charges
Cash payments to employees for services
Cash payments to suppliers
711
Academy
For Lifelong
Learning
Total
Nonmajor
Enterprise
Funds
600,179 $
(524,915)
(50,646)
623,013 $
(467,789)
(177,661)
24,618
(22,437)
(3,289)
4,075
(194,908)
151,900
-
(3,289)
4,075
(194,908)
151,900
(42,222)
-
(42,222)
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES:
Transfers out
Received from state government
Net cash provided by (used in) non-capital
financing activities
(400,000)
18,390
22,437
(400,000)
40,827
(381,610)
22,437
(359,173)
Net decrease in cash and cash equivalents
(399,214)
-
(399,214)
$
Net cash provided by (used in) operating activities
CASH FLOWS FROM INVESTING ACTIVITIES:
(Net) purchase of investment securities
Interest and dividends on investments
Purchase of capital assets
Sale of capital assets
Net cash used in investing activities
1,223,192
(992,704)
(228,307)
2,181
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year
$
449,278
50,064 $
-
$
449,278
50,064
Reconciliation of Operating Income to Net Cash
Provided by (Used in) Operating Activities:
Operating income:
$
181,086 $
275,500 $
456,586
30,724
-
30,724
(31,383)
(155,809)
24,618 $
(319,037)
(244)
21,344
(22,437) $
(350,420)
(156,053)
21,344
2,181
Adjustments to reconcile operating income to net
cash provided by (used in) operating activities:
Depreciation
Effect of increases and decreases in current
assets and liabilities:
(Increase) decrease in receivables
Increase (decrease) in accounts payable
Increase (decrease) in accrued wages payable
Net cash provided by (used in) operating activities
$
- 66 -
PRIVATE PURPOSE TRUST FUNDS
The Private Purpose Trust Funds are utilized to account for assets held by the District in a trustee
capacity. The various trust funds consist of memorial donations and bequests for student
scholarships, for which the District serves as the trustee.
- 67 -
COMBINING STATEMENT OF NET POSITION
AUGUST 31, 2013
ASSETS
CURRENT ASSETS:
$
NONCURRENT ASSETS:
Restricted assets
Total noncurrent assets
Total assets
LIABILITIES
Accounts payable
Due to other funds
810
812
813
Gage Art
Trust
Bradfield
Scholarship
Martin
Memorial
Jordan
Memorial
6,400 $
6,400
$
10,093 $
10,093
11,900 $
11,900
2,269
2,269
145,035
145,035
-
-
-
151,435
10,093
11,900
2,269
6
-
-
-
6
-
-
-
-
Total Liabilities
NET POSITION
Held in Trust for Other Purposes
Total net position
809
151,429
151,429 $
- 68 -
10,093
10,093 $
11,900
11,900 $
2,269
2,269
EXHIBIT G-7
$
$
814
815
816
817
818
Mclean
Memorial
Varner
Memorial
Park Cities
Memorial
Goodloe
Trust
Other
Trusts
3,457 $
3,457
3,756 $
3,756
-
-
3,457
3,756
154 $
154
-
43 $
43
-
154
Total
Private
Purpose
Trust Funds
2 $
2
43
38,074
38,074
145,035
145,035
2
183,109
500
-
-
-
-
-
500
6
500
-
-
-
-
506
2,957
2,957 $
3,756
3,756 $
154
154 $
- 69 -
43
43 $
2
2 $
182,603
182,603
COMBINING STATEMENT OF CHANGES IN FIDUCIARY FUND NET POSITION
ADDITIONS:
Total additions
$
DEDUCTIONS:
Total deductions
810
812
813
Gage Art
Trust
Bradfield
Scholarship
Martin
Memorial
Jordan
Memorial
3,672 $
3,672
3,900
3,900
(228)
Total net position - September 1 (Beginning)
Total net position - August 31 (Ending)
809
$
18 $
18
500
500
(482)
151,657
10,575
151,429 $
10,093 $
- 70 -
3,315 $
3,315
500
500
2,815
9,085
11,900 $
5
5
500
500
(495)
2,764
2,269
EXHIBIT G-8
$
$
814
815
816
817
818
Mclean
Memorial
Varner
Memorial
Park Cities
Memorial
Goodloe
Trust
Other
Trusts
6 $
6
7 $
7
500
500
500
500
(494)
(493)
3,451
4,249
2,957 $
3,756 $
2 $
2
1,000
1,000
(998)
1,152
3 $
3
- 71 -
$
7,028
7,028
1,750
1,750
-
9,150
9,150
(1,747)
-
(2,122)
1,790
154 $
-
Total
Private
Purpose
Trust Funds
43 $
2
184,725
2 $
182,603
This page is intentionally left blank
- 72 -
AGENCY FUNDS
Agency Funds
The District accounts for resources held for others in a custodial capacity in agency funds. The
Districts agency funds are as follows:
Student Activities Fund – accounts for the receipt and disbursement of monies for student activity
organizations.
Employee Activities – accounts for the receipt of money from District vending machines used for
employee activities.
Other Organizations – accounts for receipt of monies collected on behalf of other organizations.
- 73 -
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
Balance
September 1
2012
Student Activities
Assets:
Cash and temporary investments
Current investment
Accrued interest
Total assets
Liabilities:
Due to other funds
Total liabilities
Employee Activities
Assets:
Liabilities:
Due to employees
Other Organizations
Assets:
Other receivable
Total assets
Liabilities:
Accounts payable
Total liabilities
Total Agency Funds
Assets:
Current investments
Accrued interest
Other receivable
Total assets
Liabilities:
Accounts payable
Due to other funds
Total liabilities
$
Additions
EXHIBIT G-9
Deductions
Balance
August 31
2013
65,643 $
125,000
559
14,303
205,505 $
8,081 $
587
669
304,389
313,726 $
7,956 $
559
309,058
317,573 $
65,768
125,587
669
9,634
201,658
$
1,533 $
203,972
205,505 $
3,786 $
296,784
300,570 $
104 $
304,313
304,417 $
5,215
196,443
201,658
$
833 $
2,411 $
1,658 $
1,586
$
833 $
2,411 $
1,658 $
1,586
$
$
2,064,017
2,064,017 $
22,504 $
2,039,264
2,061,768 $
$
2,091,793
2,091,793 $
22,504
2,011,488
2,033,992
$
2,064,017
2,064,017 $
42,076 $
2,090,542
2,132,618 $
$
2,162,643
2,162,643 $
42,076
1,991,916
2,033,992
66,476 $
125,000
559
2,078,320
2,270,355 $
10,492 $
587
669
22,504
2,343,653
2,377,905 $
9,614 $
559
2,400,851
2,411,024 $
67,354
125,587
669
22,504
2,021,122
2,237,236
$
1,533
2,064,017
204,805
2,270,355 $
42,076 $
3,786
2,090,542
299,195
2,435,599 $
$
104
2,162,643
305,971
2,468,718 $
42,076
5,215
1,991,916
198,029
2,237,236
$
$
$
$
$
$
$
$
$
- 74 -
OTHER TEXAS EDUCATION AGENCY SCHEDULE
- 75 -
SCHEDULE OF DELINQUENT TAXES RECEIVABLE
Year Ended
August 31,
2004 and prior years
2005
2006
2007
2008
2009
2010
2011
2012
2013 (School Year Under Audit)
$
1
2
Tax Rate
Maintenance
Debt Service
various
$
1.5000
1.4500
1.2857
0.9767
0.9950
1.0125
1.0125
1.0267
1.0267
1000 Totals
- 76 -
various $
0.1100
0.0800
0.0700
0.0600
0.1000
0.1000
0.1025
0.1075
0.1075
3
Assessed/Appraised
Value For School
Tax Purposes
various
7,345,918,996
8,059,328,914
9,091,554,443
10,245,668,114
11,247,904,634
11,691,476,226
11,234,350,824
11,069,317,404
11,177,630,627
EXHIBIT H-1
10
Beginning
Balance
09/01/12
$
$
20
Current
Year's
Total Levy
520,190 $
80,975
128,071
109,536
86,950
101,326
102,544
142,699
398,387
1,670,678 $
30
30a
Maintenance
Collections
Debt Service
Collections
40
Entire
Year's
Adjustments
50
Ending
Balance
8/31/2013
$
119,266,542
5,926 $
1,966
8,721
8,155
4,447
7,866
1,273
2,077
(41,472)
106,552,375
516 $
144
481
444
273
751
123
210
(4,342)
11,156,499
(63,231) $
2
11,923
5,244
69,941
(172,333)
(1,146,444)
450,517
78,865
118,869
100,937
82,232
104,632
106,392
210,353
271,868
411,224
119,266,542 $
106,551,334 $
11,155,099 $
(1,294,898) $
1,935,889
- 77 -
- 78 -
EXHIBIT S
Statistical Section Narrative
This part of the District's statistical comprehensive annual financial report presents
detailed information as a context for understanding the information in the financial
statements, note disclosures, and required supplementary information.
Contents
Pages
Financial Trends
These schedules contain trend information on how the District's financial
performance and well-being have changed over time.
80-93
Revenue Capacity
These schedules contain information on the District's most significant local revenue
source, the property tax.
95-99
Debt Capacity
These schedules present information to help assess the affordability of the District's
current levels of outstanding debt and the District's ability to issue additional debt in
the future.
100-102
Demographic and Economic Information
These schedules offer demographic and economic indicators to help understand the
environment within which the District's financial activities take place.
103-107
Operating Information
These schedules contain service and infrastructure data to help the reader
understand how the information in the District's financial report relates to the service
the District provides and the activities it performs.
108-109
Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year. The District implemented GASB
Statement 34 in 2002; schedules presenting government-wide information include information
beginning that year.
- 79 -
NET POSITION BY COMPONENT
LAST TEN YEARS (unaudited)
(accrual basis of accounting)
2004
Invested in capital assets,
net of related debt
$
Restricted
Unrestricted
2005
26,780,555
$
28,260,954
2006
$
31,069,612
2007
$
31,672,140
1,647,898
2,938,626
3,220,242
3,363,852
16,725,792
19,487,554
19,329,320
22,983,565
Total Governmental Activities
$
45,154,245
$
50,687,134
$
53,619,174
$
58,019,557
Business-Type Activities
net of related debt
$
179,248
$
168,157
$
158,265
$
160,448
Unrestricted
619,355
640,230
939,273
1,261,932
Total Business-Type Activities
$
798,603
$
808,387
$
1,097,538
$
1,422,380
net of related debt
$
26,959,803
$
28,429,111
$
31,227,877
$
31,832,588
Restricted
Unrestricted
$
1,647,898
2,938,626
3,220,242
3,363,852
17,345,147
20,127,784
20,268,593
24,245,497
45,952,848
- 80 -
$
51,495,521
$
54,716,712
$
59,441,937
EXHIBIT S-1
2008
2009
2010
2011
2012
$ 31,952,770
$ 33,064,019
$ 35,895,983
$ 37,686,728
$ 40,044,080
3,683,076
3,664,755
3,492,623
3,356,530
3,154,823
3,099,431
27,448,430
28,724,975
27,858,029
25,892,817
26,779,772
23,597,681
$ 63,084,276
$ 65,453,749
$ 67,246,635
$ 66,936,075
$ 69,978,675
$
72,956,355
$
$
$
$
$
$
268,475
149,214
1,642,274
$
1,791,488
137,982
1,525,551
$
1,663,533
126,749
1,257,673
$
1,384,422
115,525
1,699,887
$
1,815,412
256,191
2013
$
2,079,988
$
46,259,243
2,169,808
2,336,179
$
2,438,283
$
46,527,718
$ 32,101,984
$ 33,202,001
$ 36,022,732
$ 37,802,253
$ 40,300,271
3,683,076
3,664,755
3,492,623
3,356,530
3,154,823
3,099,431
29,090,704
30,250,526
29,115,702
27,592,704
28,859,760
25,767,489
$ 64,875,764
$ 67,117,282
$ 68,631,057
$ 68,751,487
$ 72,314,854
- 81 -
$
75,394,638
CHANGE IN NET POSITION
2004
EXPENSES
Governmental activities:
Instruction
Instructional Resources & Media Services
Curriculum & Instructional Staff Development
School Leadership
Guidance, Counseling & Evaluation Services
Health Services
Student (Pupil) Transportation
Food Services
Cocurricular/Extracurricular Activities
Security and Monitoring Services
Debt Service - Interest on Long Term Debt
Debt Service - Bond Issuance Cost and Fees
Contracted Instructional Services Between Schools
Incremental Costs Associated with Chapter 41
Payments to Fiscal Agent/Member Districts of SSA
$
27,929,131
814,345
1,435,769
622,456
2,219,810
1,957,899
417,822
129,373
988,656
1,664,568
1,858,883
4,556,176
63,842
694,790
3,515,420
7,884
65,340,479
291,804
-
2005
$
27,371,274
837,053
1,409,214
601,991
2,376,037
1,959,747
433,506
154,353
1,004,134
1,667,812
1,831,442
4,361,254
57,283
664,842
2,558,309
11,131
69,806,684
289,922
-
2006
$
30,592,791
920,459
1,620,555
587,113
2,500,678
2,020,702
491,620
186,005
1,136,131
1,777,149
1,856,186
5,120,282
166,419
676,266
2,761,874
22,099
75,088,095
306,493
-
Total governmental activities expenses
114,509,107
117,395,988
127,830,917
Business-type activities:
Seay Tennis Center
Total business-type activities expenses
296,914
413,257
710,171
310,345
405,310
715,655
311,077
414,092
725,169
$ 128,556,086
Total primary government expenses
PROGRAM REVENUES:
Charges for Services
Instruction
School Leadership
Cocurricular/Extracurricular Activities
Other
Capital Grants and Contributions
$
115,219,278
$
118,111,643
$
387,843
410,157
97,246
6,107,560
526,294
$
177,454
644,687
80,571
6,974,180
241,049
$
209,862
738,749
105,907
8,364,769
387,908
Total governmental activities program revenues
7,529,100
8,117,941
9,807,195
Charges for services:
Seay Tennis Center
Total business-type activities program revenues
361,703
565,339
927,042
380,227
588,915
969,142
395,184
603,931
999,115
Total primary government program revenues
$
Net (Expense) Revenue
Governmental activities
Business-type activities
Total primary government net expense
$ (106,980,007)
216,871
$ (106,763,136)
- 82 -
8,456,142
$
9,087,083
$ (109,278,047)
253,487
$ (109,024,560)
$
10,806,310
$ (118,023,722)
273,946
$ (117,749,776)
EXHIBIT S-2
2007
$
32,058,561
940,146
1,640,436
609,334
2,552,318
2,070,495
507,596
105,187
1,118,283
1,964,558
2,007,866
5,472,258
79,746
663,279
2,631,121
22,097
78,323,583
315,988
-
2008
$
33,398,933
870,156
1,725,249
587,120
2,643,862
2,127,991
540,745
112,550
1,155,440
2,078,876
2,230,234
5,608,371
61,661
692,352
2,623,947
22,098
64,619,761
321,212
-
2009
$
35,812,175
896,333
1,608,911
648,409
2,762,773
2,377,581
558,316
221,814
1,199,034
2,217,654
2,428,777
5,931,617
133,039
686,249
5,706,797
10,509
72,011,116
316,212
-
$
38,187,936
926,867
1,704,046
955,592
2,971,682
2,719,804
593,606
156,223
1,404,474
2,278,055
2,370,326
5,886,997
267,966
1,210,774
5,522,347
27,396
577,333
72,548,252
370,881
-
2011
$
40,644,171
1,007,883
1,764,722
1,164,601
3,095,222
2,970,773
626,080
205,651
1,368,215
2,697,688
2,850,506
5,986,822
265,219
927,484
5,270,149
61,519
150,984
70,429,680
305,184
2012
$
39,294,695
914,754
1,959,277
1,051,758
2,869,891
2,835,728
545,288
209,000
1,339,042
2,670,120
2,768,530
5,933,301
66,373
916,950
5,098,781
32,477
99,170
69,253,860
346,393
-
2013
$
39,949,333
1,004,711
1,650,436
1,076,148
3,044,317
2,975,043
560,365
185,584
1,412,509
2,787,706
2,996,012
5,399,657
122,336
825,956
4,343,604
13,246
68,513,500
347,744
-
133,082,852
121,420,558
135,527,316
140,680,557
141,792,553
138,205,388
137,208,207
305,749
461,224
766,973
319,810
507,999
827,809
316,388
524,921
841,309
348,521
544,284
892,805
366,013
608,424
974,437
445,749
625,018
1,070,767
450,476
666,550
1,117,026
$ 141,573,362
$
142,766,990
$
139,276,155
$
138,325,233
$
$
1,168,549
74,163
63,562
1,043,515
107,573
12,043
9,277,376
831,015
$
1,503,657
95,536
74,201
1,215,390
162,873
16,573
9,807,850
80,323
$
1,711,648
123,606
89,303
795,834
223,748
94,463
8,810,448
422,311
$
133,849,825
$
122,248,367
$
136,368,625
$
1,210,073
191,315
87,756
733,409
95,144
31,158
8,066,747
426,954
$
1,212,946
78,355
90,560
952,859
107,058
26,758
7,514,641
402,721
$
1,270,179
95,028
92,216
870,571
99,773
23,783
7,099,581
553,646
$
2010
1,336,747
76,569
79,120
844,370
106,671
13,289
7,542,095
114,297
10,842,556
10,385,898
10,104,777
10,113,158
12,577,796
12,956,403
12,271,361
398,439
670,074
1,068,513
403,746
773,805
1,177,551
373,405
744,807
1,118,212
347,958
744,381
27,065
1,119,404
474,091
894,915
33,862
1,402,868
634,381
915,686
37,668
1,587,735
631,562
942,050
40,827
1,614,439
11,911,069
$ (122,240,296)
301,540
$ (121,938,756)
$
11,563,449
$ (111,034,660)
349,742
$ (110,684,918)
$
11,222,989
$
(125,422,539)
276,903
(125,145,636)
$
$
11,232,562
$ (130,567,399)
226,599
$ (130,340,800)
- 83 -
$
13,980,664
$ (129,214,757)
428,431
$ (128,786,326)
$
14,544,138
$ (125,248,985)
516,968
$ (124,732,017)
$
13,885,800
$ (124,936,846)
497,413
$ (124,439,433)
CHANGE IN NET POSITION
Net (Expense) Revenue
Total primary government net expense
2004
2005
2006
$ (106,980,007)
216,871
(106,763,136)
$(109,278,047)
253,487
(109,024,560)
$(118,023,722)
273,946
(117,749,776)
101,990,614
7,477,632
3,253,840
1,350,192
488,658
250,000
114,810,936
109,300,071
6,031,177
3,080,691
2,521,423
22,400
120,955,762
General Revenues and Other Changes in
Net Assets
Taxes
Property taxes levied for general purposes
Property taxes levied for debt service
Unrestricted grants and contributions
Investment earnings
Miscellaneous local and intermediate revenue
Transfers in
Total governmental activities
97,004,809
7,110,455
2,783,434
533,596
857,277
108,289,571
Investment earnings
Transfer (out)
Total business-type activities
845
845
6,297
(250,000)
(243,703)
15,205
15,205
Total primary government
$ 108,290,416
$ 114,567,233
$ 120,970,967
Change in Net Position
$
1,309,564
217,716
$
5,532,889
9,784
$
2,932,040
289,151
$
1,527,280
$
5,542,673
$
3,221,191
- 84 -
EXHIBIT S-2
(cont.)
2007
2008
2009
2010
2011
2012
2013
$(122,240,296)
301,540
(121,938,756)
$ (111,034,660)
349,742
(110,684,918)
$ (125,422,539)
276,903
(125,145,636)
$ (130,567,399)
226,599
$ (130,340,800)
$ (129,214,757)
428,431
$ (128,786,326)
$ (125,248,985)
516,968
$ (124,732,017)
$ (124,936,846)
497,413
$ (124,439,433)
110,086,061
5,985,264
7,343,584
3,205,711
20,059
126,640,679
93,605,112
5,756,339
13,866,853
2,824,311
46,764
116,099,379
23,302
23,302
19,366
19,366
$ 126,663,981
$
116,118,745
$
4,400,383
324,842
$
$
4,725,225
$
103,818,560
9,945,424
12,183,413
1,427,868
727
416,020
127,792,012
109,544,185
10,542,707
11,498,361
230,079
36,178
508,775
132,360,285
11,162
(416,020)
(404,858)
3,065
(508,775)
(505,710)
106,576,800
10,783,360
11,137,280
156,930
249,827
128,904,197
105,959,270
11,089,679
10,894,879
304,777
42,980
128,291,585
2,559
2,559
3,799
3,799
107,217,132
11,224,689
8,775,795
296,910
400,000
127,914,526
4,691
(400,000)
(395,309)
$ 127,387,154
$ 131,854,575
$ 128,906,756
$ 128,295,384
$ 127,519,217
5,064,719
369,108
$
2,369,473
(127,955)
$
1,792,886
(279,111)
$
(310,560)
430,990
$
3,042,600
520,767
$
2,977,680
102,104
5,433,827
$
2,241,518
$
1,513,775
$
120,430
$
3,563,367
$
3,079,784
- 85 -
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS (unaudited)
(modified accrual basis of accounting)
General Fund
Reserved
Unreserved designated
Unreserved
Unassigned
$
23,123
1,246,664
11,764,685
-
$
24,129
14,545,458
-
2007
2006
2005
2004
$
15,657,164
$
16,893,669
13,034,472
14,569,587
15,657,164
16,893,669
All Other Governmental Funds
Reserved for retirement of debt
Reserved for other - Special Revenue
Unreserved designated - Capital Projects
Unreserved reported in Special Revenue
Restricted
Committed
Unassigned
1,215,397
457,506
172,285
604,296
-
2,154,249
912,474
802,269
551,327
-
2,024,687
1,204,514
1,431,479
672,241
-
2,185,991
1,204,456
2,199,965
866,947
-
Total all Other Governmental Funds
2,449,484
4,420,319
5,332,921
6,457,359
$ 15,483,956
$ 18,989,906
$ 20,990,085
$ 23,351,028
Total General Fund
Total Governmental Funds
Note: In 2011, the District implemented GASB statement 54 which changed the classifications of fund balance.
- 86 -
EXHIBIT S-3
2008
$
$
17,967,687
2009
$
19,114,055
2011
2010
$
22,739,637
$
16,516,949
2012
$
17,369,574
2013
$
16,730,139
17,967,687
19,114,055
22,739,637
16,516,949
17,369,574
2,442,234
1,490,344
72,574,303
1,017,724
-
2,286,491
1,581,153
44,218,659
1,162,321
-
2,115,516
1,473,335
5,050,508
1,130,591
-
3,461,449
8,058,780
-
3,265,693
7,606,042
-
3,161,700
4,402,920
(12,012)
77,524,605
49,248,624
9,769,950
11,520,229
10,871,735
7,552,608
28,037,178
$ 28,241,309
$ 24,282,747
95,492,292
$
68,362,679
$
32,509,587
- 87 -
$
16,730,139
GOVERNMENTAL FUNDS REVENUES
Local Source Revenues
Local Maintenance and Debt Service Tax
Investment earnings
Charitable donations
Tuition from Patrons
Co-curricular athletic gate receipts
Other Revenue from Local Sources
Total Local Sources
State Programs Revenues
Per Capita and Foundation
Other Revenue from State
On-behalf Payments
Total State Programs
Federal Program Revenues
Federal grants
Total Federal Revenues
Total Revenues
2004
2005
2006
2007
$104,192,243
516,166
2,868,363
396,435
410,157
2,169,597
$109,351,642
1,308,422
3,736,054
386,358
351,056
2,070,699
$114,370,086
2,414,694
5,390,242
380,750
449,379
2,318,928
$115,296,884
3,096,321
6,661,642
412,747
419,721
2,357,829
110,552,961
117,204,231
125,324,079
128,245,144
2,775,130
525,361
1,486,625
3,004,530
807,167
1,491,976
3,073,435
589,739
1,552,696
7,336,637
227,609
1,611,398
4,787,116
5,303,673
5,215,870
9,175,644
-
-
-
-
-
-
-
-
$ 115,340,077
- 88 -
$ 122,507,904
$ 130,539,949
$ 137,420,788
EXHIBIT S-4
2008
2009
2010
2011
2012
2013
$ 98,410,398
2,708,238
5,969,926
418,159
622,571
2,188,407
$112,932,204
1,388,203
5,601,417
506,890
483,198
2,283,191
$119,445,087
224,063
5,656,871
463,438
488,734
2,387,024
$ 116,903,847
153,032
5,534,263
529,063
593,656
2,034,204
$ 117,227,386
302,482
5,304,348
747,671
586,152
1,777,387
$ 118,216,386
291,914
5,738,252
1,512,989
474,929
1,050,684
110,317,699
123,195,103
128,665,217
125,748,065
125,945,426
127,285,154
13,310,337
820,135
1,679,193
12,175,731
(10,609,904)
-
9,619,126
223,164
1,884,293
10,994,746
336,337
2,446,658
10,845,587
606,836
2,406,633
8,775,795
204,056
2,492,384
15,809,665
1,565,827
11,726,583
13,777,741
13,859,056
11,472,235
-
-
1,771,299
1,933,667
1,619,648
798,067
-
-
1,771,299
1,933,667
1,619,648
798,067
$ 142,163,099
$ 141,459,473
$ 141,424,130
$ 139,555,456
$ 126,127,364
$ 124,760,930
- 89 -
GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO
Instruction
Curriculum Development & Staff Development
School Leadership
Guidance, Counseling and Evaluation Services
Health Services
Student (Pupil) Transportation
Food Services
Co-curricular/Extracurricular Activities
Security and Monitoring Services
Debt Service - Principal on long-term debt
Debt Service - Interest on long-term debt
Debt Service - Bond fees
Contracted Instructional Services Between Public Schools (2)
Incremental Cost Associated with Chapter 41
Total Expenditures (1)
Debt service as a percentage of noncapital expenditures
2004
2005
2006
$ 26,186,834
773,144
1,374,394
582,806
2,073,048
1,834,903
388,763
129,373
958,508
1,589,581
1,764,526
4,431,036
63,842
666,896
3,140,000
3,521,669
207,601
43,608
65,340,479
291,804
$ 25,638,230
791,240
1,338,098
562,108
2,210,606
1,828,959
403,282
154,353
933,962
1,611,833
1,734,762
4,566,670
57,283
664,826
3,605,000
2,672,855
229,694
69,806,684
289,922
$ 27,805,172
847,432
1,534,839
535,895
2,256,936
1,840,879
443,211
186,005
986,333
2,008,754
1,728,934
5,474,653
51,360
638,547
3,420,000
2,884,731
1,501
75,088,095
306,493
$ 115,362,815
$ 119,100,367
$ 128,039,770
6.0%
5.5%
5.0%
Notes:
(1) Includes General Fund, Special Revenue Fund, Debt Service Fund, and Capital Projects Fund. Expenditures have
been grouped by function category which is consistent with the Financial Accountability System Resource Guide.
(2) Function category is for recording the cost of purchasing average daily attendance credits.
- 90 -
EXHIBIT S-5
2007
2008
2009
2010
2011
2012
2013
$ 30,299,567
892,329
1,573,645
570,414
2,383,326
1,939,321
472,949
105,187
1,043,244
2,059,862
1,907,930
5,957,433
92,874
675,891
3,255,000
2,753,978
1,500
435,824
78,323,583
315,988
$ 31,717,369
828,170
1,663,558
553,191
2,492,394
2,009,602
508,349
112,550
1,093,116
2,093,717
2,137,145
5,476,108
94,979
717,767
3,405,000
2,607,763
63,675
1,854,912
64,619,761
321,212
$ 33,159,111
838,242
1,538,161
598,977
2,540,803
2,202,394
513,350
221,814
1,124,416
2,114,089
2,285,971
5,771,958
133,242
3,393,527
4,320,000
5,847,577
18,507
31,483,173
72,011,116
316,212
$ 33,944,196
831,964
1,636,652
846,291
2,601,724
2,411,910
521,420
156,223
1,230,614
2,117,223
2,458,180
5,404,061
114,133
1,286,342
5,060,000
5,678,686
2,501
39,303,713
72,548,252
370,881
$ 36,093,682
901,786
1,616,782
1,044,859
2,694,444
2,605,008
544,743
260,381
1,192,633
2,504,398
2,559,563
5,656,988
84,736
926,414
5,630,000
5,425,224
28,995
5,899,872
70,429,680
305,184
$ 36,332,567
843,191
1,836,332
964,449
2,612,516
2,579,018
495,732
209,000
1,246,655
2,660,784
2,576,420
5,660,916
118,888
971,384
6,630,000
5,223,085
3,000
655,809
69,253,860
346,393
$ 36,747,118
948,463
1,554,192
978,053
2,767,785
2,714,327
508,762
185,584
1,323,300
2,692,680
2,768,072
5,162,026
156,313
795,210
6,930,000
4,431,992
117,577
3,904,206
68,513,500
347,744
$ 135,059,845
$ 124,370,338
$ 170,432,640
$ 178,524,966
$ 146,405,372
$ 141,219,999
$ 143,546,904
4.5%
5.0%
7.5%
7.7%
- 91 -
7.9%
8.5%
8.2%
GOVERNMENTAL FUNDS, OTHER FINANCING SOURCES AND USES
AND NET CHANGE IN FUND BALANCE
2005
2006
2007
(22,738)
$ 3,407,537
$ 2,500,179
$ 2,360,943
Other financing sources (uses)
Transfer In
Transfer Out
Issuance of Bonds
Payment to bond refunding escrow agent
Premium or Discount on Issuance of Bonds
Sale of capital asset
Other resources
-
925,000
(675,000)
57,980,000
(62,107,523)
3,957,836
18,100
Total other financing sources (uses)
-
2004
Excess of revenues over (under) expenditures
$
$
- 92 -
(22,738)
98,413
$ 3,505,950
982,000
(1,482,000)
(500,000)
$ 2,000,179
1,225,000
(1,225,000)
$ 2,360,943
EXHIBIT S-6
2008
$
1,757,026
2009
2010
$ (33,000,713)
$ (36,361,867)
2,220,347
(2,220,347)
70,000,000
384,238
-
416,020
5,400,000
55,080
-
508,775
-
70,384,238
5,871,100
508,775
$ 72,141,264
$ (27,129,613)
$ (35,853,092)
2011
$
(4,945,899)
2012
$
5,017,170
(7,600,000)
3,045,000
11,320
-
(4,472,409)
- 93 -
204,131
480,000
(480,000)
-
473,490
$
2013
$
204,131
$ (3,991,448)
995,000
(595,000)
22,285,000
(24,714,331)
2,062,217
32,886
$ (3,958,562)
- 94 -
ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY
EXHIBIT S-7
Fiscal
Year
Residential
Property
Commercial
Property
Personal
Property
2004
$ 7,764,215,280
$ 1,081,391,835
$ 194,408,416
$ 2,012,763,027
$ 7,027,252,504
1.6100
2005
8,052,207,337
1,157,990,357
188,434,623
2,052,713,321
7,345,918,996
1.6100
2006
8,879,092,745
1,359,299,871
190,054,143
2,369,117,846
8,059,328,914
1.5300
2007
10,203,157,640
1,540,329,890
188,586,920
2,840,520,007
9,091,554,443
1.3557
2008
11,566,464,650
1,940,802,050
193,784,190
3,455,382,776
10,245,668,114
1.0367
2009
12,760,335,810
2,412,478,510
201,268,010
4,126,177,696
11,247,904,634
1.0950
2010
13,128,818,630
2,151,919,380
182,576,320
3,771,838,104
11,691,476,226
1.1100
2011
12,249,505,320
2,357,163,870
209,206,560
3,581,524,926
11,234,350,824
1.1150
2012
11,962,716,480
2,428,404,920
201,288,880
3,523,092,876
11,069,317,404
1.1342
2013
11,953,046,950
2,590,164,500
210,340,800
3,575,921,623
11,177,630,627
1.1342
Source:
Total Taxable
Assessed
Value
Total
Direct
Tax
Rate
Less:
Tax-Exempt
Property
Dallas Central Appraisal District. Property in the district is reassessed every 3 years.
Property is assessed at actual value; therefore, the assessed values are equal to
actual values. Tax rates are per $100 of assessed value.
- 95 -
DIRECT AND OVERLAPPING PROPERTY TAX RATES
District Direct Tax Rates
Year Ended
Maintenance
August 31,
& Operations
Debt Service
Total
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
1.5000
1.5000
1.4500
1.2857
0.9767
0.9950
1.0125
1.0125
1.0267
1.0267
0.1100
0.1100
0.0800
0.0700
0.0600
0.0950
0.0975
0.1025
0.1075
0.1075
1.6100
1.6100
1.5300
1.3557
1.0367
1.0900
1.1100
1.1150
1.1342
1.1342
Source: Dallas County Tax Office
Note:
(1) Includes both Maintenance & Operations and Debt Service rates.
- 96 -
EXHIBIT S-8
Overlapping Tax Rates (1)
Dallas County
Town of
City of
City of
County of
Highland Park
University Park
Dallas
Dallas
$ 0.2208
0.2300
0.2300
0.2300
0.2250
0.2200
0.2200
0.2200
0.2200
0.2200
0.2200
$ 0.32932
0.32601
0.32539
0.30958
0.29272
0.26836
0.26548
0.26548
0.27845
0.27845
0.27432
$ 0.6998
0.6998
0.7197
0.7417
0.7292
0.7479
0.7479
0.7479
0.7970
0.7970
0.7970
0.196
0.2039
0.2039
0.2139
0.2139
0.2281
0.2281
0.2281
0.2431
0.2431
0.2431
- 97 -
Dallas County
Dallas County
School
Community
Equalization
Hospital District College District
$ 0.25400
0.25400
0.25400
0.25400
0.25400
0.25400
0.25400
0.27100
0.27100
0.27100
0.27600
$ 0.060000
0.077800
0.080160
0.081000
0.080400
0.089400
0.094900
0.099230
0.099670
0.119375
0.124700
District
$ 0.005530
0.005460
0.005460
0.005300
0.005034
0.004714
0.004928
0.010000
0.010000
0.010000
0.010000
CURRENT YEAR AND NINE YEARS AGO (unaudited)
PRINCIPAL PROPERTY TAXPAYERS
EXHIBIT S-9
2013
Type of
Property
Taxpayer
Highland Park Village Partners LP
CFO DT III LLC
SP Millenium Center, LP
Caruth Preston Road
SPUSV5 Sterling Plaza LP
Sherry Realty Holdings
USA Preston Center Pavilion
RREEF Sherry Lane LP
BPC CORP Inc.
Intercity Investments Inc.
Preston Commons LP
RS Partners LTD 1
TR 8333 Douglas Corp.
CLPF Berkshire LP
Trammell Crow
Peruna Properties, Inc.
Total
Commercial
Commercial
Commercial
Commercial
Commercial
Commercial
Commercial
Commercial
Commercial
Commercial
Commercial
Commercial
Commercial
Commercial
Residential
Commercial
Taxable
Value
$
$
114,984,320
81,506,000
78,420,330
68,703,780
67,597,000
66,185,000
45,250,000
39,247,550
35,517,860
29,756,780
627,168,620
Source: Dallas County Tax Assessor
- 98 -
Rank
1
2
3
4
5
6
7
8
9
10
2004
Percentage
of Total
Taxable
Value
1.03 % $
0.73
0.70
0.61
0.60
0.59
0.37
0.35
0.32
0.23
Taxable
Value
Rank
Percentage
of Total
Taxable
Value
58,145,720
2
0.79 %
27,007,650
6
0.37
40,872,410
25,915,526
3
7
0.56
0.35
87,794,300
36,923,180
32,413,940
25,559,144
24,275,050
23,179,558
5.53 % $ 382,086,478
1
4
5
8
9
10
1.20
0.50
0.44
0.35
0.33
0.32
5.21 %
PROPERTY TAX LEVIES AND COLLECTIONS
Collected Within the
Fiscal Year of the Levy
Percent
Amount
of Levy
Fiscal
Year
Taxes Levied
For the
Fiscal Year (1)
2004
$ 104,212,425
$ 103,327,160
99.15%
2005
109,166,722
108,599,242
2006
114,521,429
2007
EXHIBIT S-10
Collections
in Subsequent
Years
$
Total Collections to Date
Percent
Amount
of Levy
795,535
$ 104,122,695
99.91%
99.48%
469,788
109,069,030
99.91%
113,867,728
99.43%
491,563
114,359,291
99.86%
115,522,702
114,738,224
99.32%
635,310
115,373,534
99.87%
2008
98,695,629
97,723,474
99.01%
111,046
97,834,520
99.13%
2009
113,494,073
112,754,006
99.35%
610,070
113,364,076
99.89%
2010
119,496,606
118,727,034
99.36%
588,702
119,315,736
99.85%
2011
116,694,954
116,056,204
99.45%
2,288
116,058,492
99.45%
2012
116,519,962
116,293,908
99.81%
(45,814)
116,248,094
99.77%
2013
118,120,098
117,708,874
99.65%
-
117,708,874
99.65%
SOURCE: Current and prior District Annual Financial Reports.
NOTE:
(1) Includes supplements and corrections to the original levy calculation for the fiscal year.
- 99 -
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
Fiscal
Year
General
Unlimited
Tax Bonds (1)
2004
$
67,020,000
Maintenance
Tax
Notes (1)
$
-
Restricted
for
Debt Service
Net Bonded
Debt
Outstanding
Percentage of
Actual Taxable
Value of
Property (2)
Percentage
of Personal
Income (3)
67,020,000
$ 2,024,687
$ 64,995,313
0.92%
1.14%
Total
$
EXHIBIT S-11
Total
Outstanding
Debt
Per Capita (3)
$
2,022
2005
62,060,000
-
62,060,000
2,185,991
59,874,009
0.82%
1.03%
1,871
2006
58,640,000
-
58,640,000
2,442,234
56,197,766
0.70%
0.92%
1,756
2007
55,385,000
-
55,385,000
2,286,491
53,098,509
0.58%
0.84%
1,672
2008
121,980,000
-
121,980,000
2,442,234
119,537,766
1.17%
1.81%
3,801
2009
123,060,000
-
123,060,000
2,286,491
120,773,509
1.07%
1.79%
3,774
2010
118,000,000
-
118,000,000
2,115,516
115,884,484
0.99%
1.55%
3,604
2011
112,370,000
3,045,000
115,415,000
1,873,862
113,541,138
1.01%
1.52%
3,600
2012
106,150,000
2,635,000
108,785,000
1,597,540
107,187,460
0.97%
1.26%
3,097
2013
99,385,000
2,210,000
101,595,000
1,432,942
100,162,058
0.90%
1.16%
2,895
Source: District audited financial records.
Notes: Details regarding the district's outstanding debt can be found in the notes to the financial statements.
(1) General Unlimited Tax Bonds and Maintenance Tax Notes are from governmental activities. The district has no other debt.
(2) See Exhibit S-7 for property value data.
(3) See Exhibit S-14 for population data.
- 100 -
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITES DEBT
AS OF AUGUST 31, 2013 (unaudited)
Name of Governmental Unit
Gross
Outstanding
City of Dallas
County of Dallas
Dallas County Schools
Dallas County Hospital District
Dallas County Community College District
$ 1,691,244,734
136,430,000
67,675,000
705,000,000
355,880,000
Total Overlapping Debt
$ 2,956,229,734
Total Direct and Overlapping Debt
101,595,000
$ 3,057,824,734
EXHIBIT S-12
Percent
Overlapping
1.14 %
7.08
7.08
7.06
6.76
Amount
Overlapping
Gross Debt
$
19,280,190
9,659,244
4,791,390
49,773,000
24,057,488
$ 107,561,312
100 %
101,595,000
$ 209,156,312
Ratio of Total Direct and Overlapping Debt to Assessed Valuation
Per Capita Overlapping Debt
1.87%
$
SOURCE: Gross Debt Outstanding and Percent Overlapping were obtained from the
Municipal Advisory of Texas (Texas MAC). The methodology used in deriving Overlapping Percentages:
1) Determine the estimated shared assessed valuation of taxable property within both the Overlapping
Taxing Body(s) and our District;
2) Divide that shared value by the total assessed value of taxable property within the overlapping
taxing body.
- 101 -
6,045
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEAR (unaudited)
Fiscal
Year
2004
Total Net
Debt
Applicable
To Limit
Debt Limit
$
702,725,250
$
64,995,313
EXHIBIT S-13
Legal
Debt
Margin
$
Total Net Debt
Applicable to the
Limit as a Percentage
of Debt Limit
637,729,937
9.25
2005
734,591,900
59,874,009
674,717,891
8.15
2006
805,932,891
56,197,766
749,735,125
6.97
2007
909,155,444
53,098,509
856,056,935
5.84
2008
1,024,566,811
119,537,766
905,029,045
11.67
2009
1,124,790,463
120,773,509
1,004,016,954
10.74
2010
1,169,147,623
115,884,484
1,053,263,139
9.91
2011
1,123,435,082
113,541,138
1,009,893,944
10.11
2012
1,106,931,740
107,187,460
999,744,280
9.68
2013
1,117,763,063
100,162,058
1,017,601,005
8.96
Legal Debt Margin Calculation for Fiscal Year 2013
Taxable Assessed Value
Debt Limit (10% of assessed value)
Total Bonded Debt
Less: Restricted for Debt Service
Debt applicable to limit
$
$
11,177,630,627
1,117,763,063
99,385,000
1,432,942
97,952,058
Legal debt margin
$
- 102 -
1,019,811,005
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEAR (unaudited)
Fiscal
Year
Estimated
Population (1)
Personal
Income
2004
32,150
$ 5,714,813,389
2005
32,000
2006
EXHIBIT S-14
Per Capita
Personal
Income (1,2)
Unemployment
Rate (3)
177,755
6.6 %
5,826,941,050
182,092
5.6
32,000
6,104,886,138
190,778
5.1
2007
31,750
6,346,119,760
199,878
4.4
2008
31,450
6,594,178,088
209,672
5.0
2009
32,000
6,755,042,989
211,095
8.1
2010
32,150
7,465,377,979
232,205
8.8
2011
31,540
7,492,179,034
237,545
8.7
2012
34,605
8,483,303,578
245,147
6.7
2013
34,600
8,660,201,479
250,295
6.5
$
Source:
(1) North Central Texas Council of Governments Census (NCTCG) and Estimates.
(2) US Census Bureau, 2000 census data. Years 2004 through 2013 were adjusted by the CPI.
(3) Texas Workforce Commission. Unemployment rate is for Dallas County.
- 103 -
TOP TEN PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO (unaudited)
Employer (1)
AMR Corp.
Bank of America
Texas Health Resources
Dallas Independent School District
Baylor Health Care System
AT&T Inc.
Lockheed Martin Aeronautics Co.
JPMorgan Chase
UT Southwestern Medical Systems
City of Dallas
Wal-Mart Stores, Inc.
Verizon Communications, Inc.
Albertson's, Inc.
Texas Instruments Inc.
2012
Employees
24,700
20,000
19,230
18,314
17,907
15,800
14,126
13,500
13,122
12,836
169,535
Estimated Employed Workforce in 2012
1,098,888
Estimated Employed Workforce in 2004
1,077,373
EXHIBIT S-15
Rank
Percentage
of Total
Employment
1
2
3
4
5
6
7
8
9
10
2.25%
1.82%
1.75%
1.67%
1.63%
1.44%
1.29%
1.23%
1.19%
1.17%
2004
Employees
Rank
28,000
1
17,000
19,691
15,000
14,000
16,442
4
3
6
7
5
23,000
12,500
11,200
10,600
2
8
9
10
167,433
Source: Dallas Business Journal Book of Listings. Employment information for 2013 was unavailable at the time
of publication.
Note: (1) Information regarding principal employers within the District is unavailable due to size of the community.
- 104 -
FULL–TIME–EQUIVALENT DISTRICT EMPLOYEES BY TYPE
EXHIBIT S-16
Fiscal Year
Instruction
Teachers
Librarians
Educational Aides
Other Professionals (instructional)
Campus Administration
Principal
Assistant Principal
Instructional Officer
Teacher Supervisor
Campus Support
Student Services
Counselor
Educational Diagnostician
School Nurse
LSSP/Psychologist/Therapist
Support and Administration
Superintendent and Asst Superintendent
Instructional Officer
Teacher Supervisor
Non-Campus Professionals
Auxiliary Staff
Total
Percent
Change
2004-2013
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
391.4
7.0
49.8
10.5
458.7
384.8
7.0
45.6
11.0
448.4
391.9
8.0
42.5
11.0
453.4
397.8
8.0
46.1
11.0
462.9
406.7
8.0
42.8
11.0
468.5
410.6
8.1
45.1
11.8
475.6
417.8
7.1
48.1
10.3
483.3
427.2
8.0
47.9
10.2
493.3
427.5
5.9
63.5
15.1
512.0
432.8
5.8
71.3
15.6
525.5
7.0
4.9
1.0
2.7
25.5
41.1
7.0
6.0
1.0
4.0
24.2
42.2
6.0
6.7
1.0
5.1
25.3
44.1
6.0
6.7
1.0
3.8
25.3
42.8
6.0
6.8
1.0
3.8
25.8
43.4
6.0
7.0
0.1
3.5
26.0
42.6
6.0
7.0
1.5
26.5
41.0
6.0
7.0
3.0
26.0
42.0
6.0
5.4
7.3
26.0
44.7
6.0
5.5
7.0
26.0
44.5
(14.3)
12.2
(100.0)
159.3
2.0
8.3
15.0
3.0
7.5
9.3
34.8
14.8
3.0
7.5
11.0
36.3
14.5
3.0
8.0
11.0
36.5
14.5
3.0
8.0
10.0
35.5
14.5
3.0
8.0
10.1
35.6
15.0
4.5
8.0
11.0
38.5
14.3
4.5
8.0
12.0
38.8
15.0
3.0
8.0
15.1
41.1
14.1
3.0
7.0
15.1
39.2
13.8
3.0
7.0
20.5
44.3
(8.0)
0.0
(6.7)
120.4
27.3
3.0
3.0
2.0
5.0
124.6
137.6
3.0
1.6
3.0
4.0
127.4
139.0
3.0
1.6
3.5
4.0
121.9
134.0
3.0
1.6
3.5
4.0
128.7
140.8
3.0
1.6
3.5
4.0
126.8
138.9
3.0
1.5
5.0
4.0
133.1
146.6
3.0
2.3
4.0
3.5
139.3
152.1
3.0
1.5
4.0
3.6
142.6
154.7
3.0
0.5
5.0
3.5
132.7
144.7
3.0
0.5
3.0
3.5
132.2
142.2
0.0
(83.3)
50.0
(30.0)
6.1
(1.0)
672.2
665.9
668.0
682.0
686.4
703.3
715.2
731.1
740.6
756.5
Source:
(1) Fall Public Education Information Management System (PEIMS) Submissions with full-time equivalent employees
as of the last Friday in October.
Note:
Full-time instructional employees of the district are employed for 187 contract days. Campus Administrators and
Student Services employees are primarily employed for 200 or 215 days. Central administrative and non-campus
professional staff are employed for 226 days. Non-professional support staff are employed for 230 days. Auxiliary
staff are employed on an hourly basis with daily hours ranging from 8 hours to 4 hours.
- 105 -
10.6 %
(17.1)
43.2
48.6
14.6
12.5 %
TEACHER AVERAGE SALARY AND FTE COUNTS
Fiscal
Beginning
Teacher
1 - 5 Years
Experience
Year
Average
Salary
FTE
2004
$ 38,166
17.0
2005
39,549
2006
Average
Salary
$
FTE
38,522
117.0
14.0
40,064
39,785
11.0
2007
44,510
2008
6 - 10 Years
Experience
Average
Salary
$
FTE
41,443
73.6
111.8
41,981
88.0
40,802
103.1
42,631
95.8
12.1
43,956
96.0
46,315
99.4
44,950
11.9
45,750
97.2
48,059
104.7
2009
47,281
6.3
47,516
105.8
50,072
99.5
2010
49,562
13.8
48,348
94.9
50,840
90.7
2011
46,994
7.3
48,968
90.2
51,448
103.5
2012
47,456
10.8
48,873
82.8
50,667
104.1
2013
47,368
11.6
48,511
99.1
51,105
103.9
Sources: Data obtained from the Public Education Information System (PEIMS) data reported to
Texas Education Agency annually. State-wide average salary was obtained from
the Academic Excellence Indicator System Annual Report for State of Texas (AEIS)
- 106 -
EXHIBIT S-17
11 - 20 Years
Experience
Average
Salary
FTE
$ 45,336
87.0
46,257
Over 20 Years
Experience
Average
Salary
$
District
Total Teachers
Average
Salary
FTE
56,177
96.9
74.0
55,429
46,684
74.5
50,279
$
FTE
State-wide
Average
Salary
44,948
391.5
97.1
45,550
384.9
41,011
56,297
107.4
46,580
391.8
41,744
83.1
60,095
107.2
50,223
397.8
44,897
52,054
85.8
62,303
107.1
52,014
406.7
46,179
53,657
91.1
64,499
107.9
53,957
410.6
47,159
54,770
111.4
65,983
107.0
55,168
417.8
48,263
55,589
117.1
66,792
109.1
55,894
427.2
48,639
50,667
126.0
65,554
103.8
55,043
427.5
48,868
55,489
121.3
66,185
96.9
55,018
432.8
48,375
- 107 -
$
40,478
OPERATING STATISTICS
Fiscal
Year
Enrollment (1)
2004
6,074
2005
Operating
Expenditures (2)
$
Cost
Per
Pupil
108,391,106
$ 17,845
6,166
112,547,651
2006
6,276
2007
Operating
Expenditures
Excluding
Recapture (2)
$
EXHIBIT S-18
Cost
Per
Pupil
(FTEs)
Teaching
Staff (3)
Pupil
Teacher
Ratio
43,050,627
$ 7,088
391.4
15.5
18,253
42,740,967
6,932
384.8
16.0
121,344,377
19,335
46,256,282
7,370
391.9
16.0
6,293
127,806,218
20,309
49,482,635
7,863
397.8
15.8
2008
6,324
116,196,923
18,374
51,577,162
8,156
406.7
15.5
2009
6,331
125,624,943
19,843
53,613,827
8,468
410.6
15.4
2010
6,448
127,470,727
19,769
54,922,475
8,518
417.8
15.4
2011
6,689
128,359,298
19,190
57,929,618
8,660
427.2
15.7
2012
6,804
128,896,597
18,944
59,642,737
8,766
427.5
15.9
2013
6,848
128,265,174
18,730
59,751,674
8,725
432.8
15.8
Notes:
(1) Enrollment is as of the October reporting date to TEA through the Public Education Information System (PEIMS).
(2) Operating expenditures are total governmental fund expenditures less debt service and capital projects.
(3) Teachers (FTEs) are as of October reporting date to TEA through PEIMS and District records.
- 108 -
SCHOOL BUILDING INFORMATION
EXHIBIT S-19
2005
2006
2007
2008
2009
2010
2011
2012
2013
John S. Armstrong Elementary School (Constructed 1953)
Square feet
61,544
Capacity
418
Enrollment
503
61,544
418
540
63,039
526
542
63,039
526
541
63,039
526
540
63,039
526
535
79,885
633
558
79,885
633
556
79,885
633
598
79,885
633
569
John S. Bradfield Elementary School (Constructed 1926)
75,858
Square feet
569
Capacity
572
Enrollment
75,858
569
580
73,887
576
600
73,887
576
613
73,887
576
651
73,887
576
650
86,603
697
643
86,603
697
651
86,603
697
703
86,603
697
701
Robert S. Hyer Elementary School (Constructed 1947)
Square feet
Capacity
Enrollment
64,651
563
570
64,651
563
554
72,542
535
580
72,542
535
560
72,542
535
576
72,542
535
621
78,211
657
654
78,211
657
691
78,211
657
693
78,211
657
700
University Park Elementary School (Constructed 1928)
Square feet
Capacity
Enrollment
73,050
499
617
73,050
499
663
70,997
614
676
70,997
614
645
70,997
614
613
70,997
614
649
86,287
655
677
86,287
655
679
83,287
655
705
83,287
655
696
Arch H. McCulloch Intermediate School (Constructed 1995)
Square feet
108,500
961
Capacity
901
Enrollment
108,500
961
961
108,500
1,000
944
108,500
1,000
986
108,500
1,000
997
108,500
1,000
967
112,186
1,072
980
112,186
1,072
1,063
112,186
1,072
1,043
112,186
1,107
1,030
Highland Park Middle School (Constructed 1995)
Square feet
Capacity
Enrollment
108,500
942
993
108,500
942
947
108,500
1,000
961
108,500
1,000
967
108,500
1,000
927
108,500
1,000
975
166,544
1,205
1,032
166,544
1,205
1,032
166,544
1,205
1,036
166,544
1,205
1,107
Highland Park High School (Constructed 1937)
Square feet
Capacity
Enrollment
292,510
2,100
1,918
292,510
2,100
1,921
376,890
2,000
1,973
376,890
2,000
1,981
376,890
2,000
2,020
376,890
2,000
1,934
376,890
2,000
1,904
376,890
2,000
2,017
376,890
2,000
2,026
376,890
2,000
2,045
n/a
n/a
n/a
n/a
n/a
n/a
60,000
60,000
60,000
60,000
Schools
Multi-Purpose Activity Building
2004
Source:
(1) Square feet and functional capacity data for years 2004 and 2005 was obtained from a Capacity Study performed
by VLK Architects as of July 1, 1998.
(2) Square feet and functional capacity data for 2006 through 2013 was obtained from a Facility Study performed by SHW
Group LLP.
(3) Enrollment is as of the October reporting date to TEA through the Public Education Information System.
- 109 -
- 110 -
REPORTS ON INTERNAL CONTROL,
COMPLIANCE, AND FEDERAL AWARDS
- 111 -
- 112 -
INDEPENDENT AUDITOR’S 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
Board of Trustees
Dallas, TX 75205
We have audited, in accordance with the 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, the financial
statements of the governmental activities, the business-type activities, the discretely presented
component unit, each major fund, and the aggregate remaining fund information of Highland
Park Independent School District (the District), as of and for the year ended August 31, 2013,
and the related notes to the financial statements, which collectively comprise the District’s basic
financial statements, and have issued our report thereon dated January 15, 2014. Our report
includes a reference to other auditors who audited the financial statements of the Highland Park
I.S.D. Education Foundation as described in our report on the District’s financial statements.
The financial statements of the Highland Park I.S.D. Education Foundation were not audited in
accordance with Government Auditing Standards.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the District’s
internal control over financial reporting (internal control) to determine the audit procedures that
are appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the
District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the
District’s internal control.
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 a 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. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
- 113 -
Page 2
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District’s financial statements are
free from 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.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the entity’s internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the entity’s
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
Dallas, Texas
January 15, 2014
- 114 -
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH
MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE REQUIRED BY OMB CIRCULAR A-133
Board of Trustees
Dallas, TX 75205
Report on Compliance for Each Major Federal Program
We have audited Highland Park Independent School District’s (the District) compliance with the
types of compliance requirements described in the 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, 2013. 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.
Management’s Responsibility
Management is responsible for compliance with the requirements of laws, regulations,
contracts, and grants applicable to its federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of the District’s major federal
programs based on our audit of the types of compliance requirements referred to above. 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 on compliance for each
major federal program. However, our audit does not provide a legal determination of the
District’s compliance.
Opinion on Each Major Federal Program
In our opinion, the District complied, in all material respects, with the types of 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, 2013.
- 115 -
Page 2
Report on Internal Control over Compliance
Management of the District is responsible for establishing and maintaining effective internal
control over compliance with the types of compliance requirements referred to above. In
planning and performing our audit of compliance, we considered the District’s internal control
over compliance with the types of requirements that could have a direct and material effect on
each major federal program to determine the auditing procedures that are appropriate in the
circumstances for the purpose of expressing an opinion on compliance for each major federal
program 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 material noncompliance with a type
of compliance requirement of a federal program will not be prevented, or detected and
corrected, on a timely basis. A significant deficiency in internal control over compliance is a
deficiency, or a combination of deficiencies, in internal control over compliance with a type of
compliance requirement of a federal program that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with
governance.
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 material weaknesses or significant deficiencies. We did
not identify any deficiencies in internal control over compliance that we consider to be material
weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of
our testing of internal control over compliance and the results of that testing based on the
requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other
purpose.
Dallas, Texas
January 15, 2014
- 116 -
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FEDERAL GRANTOR/
PASS-THROUGH GRANTOR/
PROGRAM OR CLUSTER TITLE
FEDERAL
CFDA
NUMBER
PASSTHROUGH
ENTITY
IDENTIFYING
NUMBER
FEDERAL
EXPENDITURES
U.S. DEPARTMENT OF EDUCATION
Passed Through State Department of Education
Title IV IDEA - Part B, Formula
Title IV IDEA - Part B, Preschool
84.027A
84.173A
13-6600010579116600
13-6610010579116610
$
Total Special Education Cluster
782,624
15,443
798,067
Total Passed Through
State Department of Education
798,067
TOTAL EXPENDITURES OF FEDERAL AWARDS
$
- 117 -
798,067
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
1.
The District utilizes the fund types specified in the Texas Education Agency Financial
Accountability System Resource Guide.
Special Revenue Funds are used to account for resources restricted to, or committed
for, specific purposes by a grantor. Federal and state awards generally are accounted
for in a Special Revenue Fund. Generally, unused balances are returned to the grantor
at the close of specified grant periods.
2.
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 were accounted for in a
Special Revenue Fund which is a Governmental Fund type. With this 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, except for
unmatured interest on 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 deferred revenues until earned.
3.
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 A133 Compliance Statement.
- 118 -
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
I. Summary of the Auditor's Results:
Financial Statements
a. An unqualified opinion was issued on the financial statements.
b. Internal control over financial reporting:
•
Material weakness(es) identified?
Yes
X
No
•
Significant deficiency(ies) identified that are not
considered a material weakness?
Yes
X
None reported
Yes
X
No
c. Noncompliance material to financial
statements noted.
Major Programs
d. Internal control over major programs:
•
Material weakness(es) identified?
Yes
X
No
•
Significant deficiency(ies) identified that are not
considered a material weakness?
Yes
X
None reported
X
No
e. An unqualified opinion was issued on compliance for major programs.
f.
Any audit findings disclosed that were required to be
reported under Section 510(a) or OMB Circular
A-133.
Yes
g. Identification of major programs:
Special Education Cluster:
84.027A, 84.173A
h. The dollar threshold used to distinguish between Type
A and Type B programs.
$300,000
i.
Auditee qualified as a low-risk auditee.
X
- 119 -
Yes
No
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
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
- 120 -
SUMMARY OF PRIOR YEAR AUDIT FINDINGS
IV. Findings Relating to the Financial Statements Which Are Required To Be Reported in
Accordance with Generally Accepted Government Auditing Standards.
None
- 121 -

carrollton-farmers branch independent school district

Transcription

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