We`re HCDE. Always Educating.

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Popular Annual Financial Report
F o r
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Au g u s t
2 0 1 1
H ARRI S COUNT Y / H OU S TON , TE X A S
We’re HCDE. Always Educating.
contents
3
About Harris County/Houston, Texas 4
Mission, Goals, and Governance 5
Message from the Superintendent
Administrative Officials
About the Department
6
7
Property Values and Taxes
Business Indicators
9
11
11
Uses of Fiscal Year 2010-2011 Funds 13
Grant Administration and Capital Projects 14
Debt 15
Business Awards and Accomplishments 17
Sources of Fiscal Year 2010-2011 Funds
In December of last year (and for the second consecutive year), HCDE was awarded the Gold
Standard Leadership Circle highlighting the organization’s efforts for financial transparency online.
For more information on the Texas Comptroller’s Leadership Circle Program, please refer to the
Comptroller’s website at: http://www.window.state.tx.us/comptrol/checkup/leadership.php
a message from
3
THE superintendent
Our mission at Harris County Department of Education (HCDE) is to advance excellence in the delivery
of education in Harris County, Texas in partnership with the educational community. HCDE is a vibrant
organization, which provides services to children, educators, adults, school districts, local governments, charter
schools, and taxpayers.
We have been successful with our grant activity and our grants have increased over the last 10 years and, in
turn, have increased services to our member districts. We have been able to leverage federal, state, and local
dollars. In Fiscal Year 2010-2011, HCDE attracted over $41 million in grants, and provided $88.7 million as an economic
benefit to our member districts. The minimal maintenance and operations tax levied by HCDE allows us to provide valuable
resources and supplementation to our local districts. We are thankful to our patrons for their financial support and seek their
continued support and involvement.
We welcome the opportunity to showcase our best practices and award-winning programs. We invite you to visit our campuses,
our headquarters at 6300 Irvington Boulevard, and/or our Westview site to experience, firsthand, our focus and commitment
to excellence. We charge every staff member with the opportunity to make a difference in every student’s life, and to tweak
the instructional process to that same end. As a means to our end, we have increasingly offered services outside our county to
other clients in order to leverage our resources even more. Finally, in this era of increased accountability, we strive to be the
most transparent and efficient of governmental agencies. We believe that education is the tool for prosperity and success for
individuals, the state, and the nation.
Yours in Education,
John E. Sawyer, Ed.D.
County School Superintendent
letter to
the community
We are pleased to present the HCDE Popular Annual Financial Report (PAFR) for the fiscal year ended August 31,
2011. This report is designed to make the financial operations of the Department easy to understand for our citizens
and other readers. We have also included information about our programs and services which benefit the children
and taxpayers of Harris County.
Our staff is committed to providing quality financial information that is transparent and readily available to the public.
We have created a transparency page at http://www.hcde-texas.org/docs/221-HCDEFinancialTransparency.pdf
to further highlight our fiscal results and successes. In 2011, HCDE received a perfect score in meeting the transparency criteria as set
by the Texas Comptroller’s Office.
The PAFR summarizes the financial activities and operating results of the Department, and was gathered from the financial information
reported in our FY 2010-11 Comprehensive Annual Financial Report (CAFR). The CAFR is a more comprehensive document that is
prepared in conformance with Generally Accepted Accounting Principles (GAAP) and audited by Null Lairson, P.C., who expressed an
“unqualified” (the highest) opinion–meaning that, in their opinion, the financial statements are free from material misstatement. The PAFR
is unaudited and presented on a GAAP basis. While the underlying accounting methods are similar to the CAFR, the PAFR simplifies
reporting by not including all segregated funds, required presentations, and full disclosure of all material financial and non-financial
events in the notes to the basic financial statements. Citizens desiring to review the CAFR may obtain a copy from the Communications
and Public Information division at (713) 696-0751, or may view it on the HCDE website at www.hcde-texas.org.
Respectfully,
Jesus J. Amezcua, CPA
4
about harris county / houston, texas
Local Economy
HCDE is located in Harris County, Texas, in the upper Gulf Coast region of Texas, approximately 50 miles from the Gulf of
Mexico. Harris County, with an estimated population of 3.8 million people, is the third most-populous county in the United
States and ranks as one of the top ten fastest growing counties in the nation. Harris County’s population base includes a
wide variety of racial, ethnic, and socioeconomic groups that gives the area rich diversity and a cosmopolitan feel.
Harris County and the Houston metropolitan area comprise a leading region of business development in the nation.
Houston continues to be a leader in aerospace, industrial engineering, and medical research, but diversification is fueling
the local economy. The County’s major hospitals, many of these concentrated just south of downtown Houston in the area of
the Texas Medical Center, offer world-class facilities for general and specialized medical needs. Houston is the fourth largest
city in the nation, and, in 2008, ranked second in the rate of job growth (based on most recent data). It is important to note
that 90 percent of new jobs are in non-energy dependent sectors, thus continuing to add diversity to the overall Houston
economy. These positive economic indicators should continue to positively affect the Department’s tax base.
There are 26 public school districts either entirely or partially within Harris County, as well as charter, private, and parochial
schools. The County is also home to many colleges, universities, institutes, and technical schools.
5
mission and goals
Our Mission
Harris County Department of Education:
Advancing Excellence in Partnership with the Educational Community
Goals
HCDE will have:
•
•
•
•
Programs to improve achievement for learners;
Adequate resources to efficiently and effectively accomplish its mission;
A cohesive planning and evaluation process resulting in successful delivery of services;
Professional development programs to attract and maintain qualified staff necessary to provide educational
opportunities;
• Effective technology infrastructure and systems to ensure communication and service delivery; and
• High positive visibility in the community that supports public education.
governance
Governing Body
HCDE, a political subdivision of the state of Texas, is located in Houston, Texas. The Harris County Board of Education
(Board), elected by voters of Harris County, Texas, has governance responsibility over all activities and operations of the
Department. The Board consists of seven members who serve overlapping, six-year terms.
The Department is a primary governmental unit and is not included in any other governmental “reporting entity.” The Harris
County Department of Education Public Facility Corporation (PFC) has been included as a blended component unit in the
financial statements of the Department. The PFC, a legally separate entity, is reported as a capital projects fund that is
part of the Department’s operations and its purpose is to finance the Department’s construction and building acquisition
needs. The Education Foundation of Harris County (EFHC) is included as a discretely presented component in the financial
statements of the Department. The EFHC, a non-profit entity, was created to raise money to support the Department. A
financial statement may be obtained from the office of the EFHC. No other organizations meet the criteria specified by
GASB 39 to be included as a component unit within the reporting entity.
angie
chesnut
President
louis d.
evans, iii
Vice-President
jim henley
Trustee
roy morales
Trustee
debra kerner
Trustee
michael wolfe
Trustee
Marvin Morris
Trustee
1/1-8/31/11
C arl
Schwartz
Trustee
9/1-12/31/10
6
administrative officials
John E. Sawyer, Ed.D.
County School Superintendent
Jesus J. Amezcua, CPA
Assistant Superintendent for Business Services
Celes Harris, M.Ed.
Assistant Superintendent for Student Services
Linda Pitre, Ed. D.
Assistant Superintendent for Professional Support Services
7
about the department
Profile of the Department
HCDE is an entity separate and distinct from county agencies of Harris County, Texas. The Department was the original school
district in Harris County, Texas, established by the Texas State Legislature in 1889. While virtually all the other departments
of education in Texas became obsolete, as independent school districts incorporated and assumed the responsibilities of
public education, the Department’s service strategy evolved rapidly to respond to educational and community needs, and
thus is one of only two remaining entities in the State.
The Department’s primary service area geographically covers 1,788 square miles. The Department offers services to
26 rural, suburban, and urban school districts entirely or partially within Harris County, Texas; to neighboring school
districts and governmental agencies in surrounding counties; as well as to schools, education service centers, and other
governmental agencies statewide.
Programs and Services
Responding to and serving the needs of learners of all ages, socioeconomic status, ethnic backgrounds, educational or
developmental delays, and at-risk behaviors requires the Department to be an institution of great flexibility as evidenced
by the activities described below. Affordable and highly flexible programming and products are developed with clients in
mind. Examples of client populations include:
• Academic and Behavior Centers (ABC Schools) serve children, youth, and young adults ages 5-22 with severe emotional
disturbances, mental retardation, pervasive developmental disorders, and other health impairments.
• Adult Education serves individuals who are 16 years of age and older and cannot read, do not speak English, and/or
have not completed a high school education.
• Cooperative for After-School Enrichment (CASE) improves the academic achievement of elementary, middle, and high
school students and keeps them safe by providing quality after-school programs.
• Early Childhood Intervention – Keep Pace Program (ECI Keep Pace) serves children ages 0-3 who have medical
conditions with a high probability of delay, atypical development, developmental delay, or are at-risk for delay.
• Head Start serves 3-5 year old economically-disadvantaged children and their families, with over 10 percent of those
having an identified disability requiring intervention.
• Highpoint Schools serve client school districts’ adjudicated youth by providing intensive counseling and a technologydriven curriculum in a strict disciplinary environment.
• Instructional Support Services (ISS) provides professional development trainings to administrators, teachers, support
personnel, students, parents, and the community by experts from all instructional content areas.
8
about the department
• Texas Virtual School Network (TxVSN) provides additional opportunities and options for Texas students through online
courses since 2007. Visit http://www.hcde-texas.org/default.aspx?name=TXVSNHome.
• Therapy Services serves individuals ages 0-22 years of age with identified disability groups, diagnosed disabilities,
developmental delays, or at-risk for delays from diverse socioeconomic families.
Cooperative Programs:
Choice Facility Partners
www.choicefacilitypartners.org
Gulf Coast Food Cooperative
http://www.hcde-texas.org/default.aspx?name=PurchCoopGCC
Purchasing Cooperative
http://www.hcde-texas.org/default.aspx?name=PurchCoopHome
Records Management Cooperative
http://www.hcde-texas.org/default.aspx?name=RecordsHome
Centers of Excellence:
Center for Safe and Secure Schools
http://www.hcde-texas.org/default.aspx?name=csss.home
Center for School Governance and Executive Leadership
http://www.hcde-texas.org/default.aspx?name=governhome
School Finance Council
http://www.hcde-texas.org/default.aspx?name=SFC
9
property values and taxes
What are Property Taxes?
The tax year runs concurrently with the calendar year, January 1 through December 31. Property taxes are levied by
October 1 in conformity with Subtitle E. Texas Property Tax Code on the appraised value listed as of the prior January 1 for
all real and business personal property located within Harris County Department of Education’s taxing jurisdiction of Harris
County, Texas. Taxes are due upon receipt of the tax bill in October. On February 1st of each year, a tax lien attaches to
property to secure the payment of all taxes, penalties, and interest ultimately imposed. Taxes become delinquent if not paid
before February 1. On July 1, additional penalties and interest are imposed on unpaid taxes.
Appraised values are established by the Harris County Appraisal District (HCAD) of Harris County, Texas. The Department’s
property tax rate is established in accordance with state law. The Department’s County Board of Education sets the
maintenance and operating (M&O) tax rate. Currently, the Department does not have a debt service rate. Billing and
collection of tax levies are conducted by the Harris County Tax Assessor-Collector’s Office. Tax revenues received are used
in financing the Department’s general government expenditures.
Tax Rates and Values
The Department’s tax rate for the 2010 tax year was $0.006581 per
$100 assessed property valuation; up from $0.006050 the previous
year. The assessed property valuation for the same period was $271.8
billion resulting in an adjusted tax levy of $17.9 million. The assessed
valuation decreased 4 percent from $283.9 billion in calendar/tax
year 2009 to $271.8 billion in calendar/tax year 2010.
The ‘current tax’ collection rate for fiscal year 2010-11 was 98.5
percent, a decrease of 0.6 percent from the fiscal year 2009-10
‘current tax’ collection rate of 99.1 percent.
Taxes are assessed as of January of each calendar year. The tax
assessments for tax year 2010 are collected in fiscal year 2010-2011.
taxes
pro p e r t y i n c o m e economic sales rate assessment levied expenditures gover nm e n t r e v e n u e s
inter e s t p e n a l t i e s v a l uation tax code jurisdiction fiscal rate business percentage collec t i o n p r o p e r t y
incom e e c o n o m ic sales rate assessment levied expenditures gover nment reve n u e s i n t e r e s t
p ena l t i e s v a l u a t i o n t ax code jurisdiction fis cal rate business percentage collection pro p e r t y i n c o m e
econ o m i c s a l e s r a t e assessment levied expenditures gover nment revenues interest penal t i e s v a l u a t i o n
tax c o d e j u r i s d i c t i o n fiscal rate business percentage collection property income ec o n o m i c s a l e s
rate a s s e s s m e n t l e v i ed expenditures gover nment revenues interest penalties valuat i o n t a x c o d e
jurisd i c t i o n f i s c a l rate business percentage collection property income economic s a l e s r a t e
asses s m e n t l e v i e d e x penditures gover nment revenues interest penalties valuation ta x j u r i s d i c t i o n
fisca l r a t e b u s i n e s s percentage collection property income economic sales
levied e x p e n d i t u r e s
program and service highlights
We’re HCDE. Always Educating.
THE COOPERATIVE FOR AFTER-SCHOOL ENRICHMENT (CASE)
713-696-1332
12,000 STUDENTS SERVED
FY 2010-2011
HCDE’s CASE program provides quality after-school programming in 70 after-school sites across greater Harris County, serving approximately
12,000 students in elementary grades through high school.
Did you know?
• Over the past 10 years, CASE has raised over $50 million from funding sources including Texas Education Agency (TEA), Texas
Workforce Commission (TWC), Houston Endowment, Frost Bank, and the Education Foundation of Harris County. Most of these dollars
are then passed on to community partners who operate the programs in our neighborhood schools.
• CASE has been providing quality after-school programming to the youth of Harris County since 1999.
• CASE also facilitates the CASE AmeriCorps program, placing volunteers inside after-school programs to educate and lead youth in
exciting activities, community service projects and Kids’ Day curriculum.
• CASE’s mission is to strengthen, support, and sustain quality after-school programming for all children.
Adult Education
713-692-6216
9,700 STUDENTS SERVED
FY 2010-2011
HCDE’s Adult Education division provides exceptional adult education services to all adults desiring to improve their basic skills in order
to obtain a job or advance a career. Obtaining such skills usually leads to the students’ active participation in their communities as well
as the ability to help educate their children.
Adult Education services include but are not limited to:
• Preparation for the GED
• Adult Basic Education (Grade equivalent 1-8)
• Adult Secondary Education (Grade Equivalent 9-12)
English as a Second Language (ESL) is another essential program offering
and is delivered in the following sections:
• Levels 1-6 (Beginning Literacy ESL to Advances ESL)
• English Language Civics
• Citizenship
• Workplace ESL
Did you know?
• HCDE provides Adult Education services in 15 school districts: Alief, Channelview, Crosby, Cy-Fair, Deer Park, Galena Park, Goose
Creek, Huffman, Katy, Klein, LaPorte, North Forest, Pasadena, Sheldon and Spring Branch.
• HCDE’s Adult Education division operates two learning centers, one in Houston and the other in Baytown.
• We teach over 800 classes a year and we employ 360 employees (mostly part-time staff) to provide these services.
• Plus, we offer services in 60 other sites around Harris County in schools, churches and in
other community-based venues.
special section
program and service highlights
We’re HCDE. Always Educating.
EARLY CHILDHOOD INTERVENTION (ECI) KEEP PACE
281-397-4000
3,006 STUDENTS SERVED
FY 2010-2011
ECI Keep Pace serves families of children birth to age 3 with disabilities or developmental delays. Services are regionalized, and HCDE
is the affiliate sponsor of the program that now serves 13 school districts surrounding northern Harris and southern Montgomery counties.
School districts included in the ECI Keep Pace regional service area of 43 zip codes include Aldine, Conroe, Cy-Fair, Huffman, Humble,
Klein, Magnolia, New Caney, North Forest, Splendora, Spring, Tomball and Waller. ECI Keep Pace-HCDE, one of 58 ECI programs in
Texas, helps families with infants who are developing later than children their age in sitting, walking, talking or playing with toys.
Did you know?
Our ECI Keep Pace staff assists children under the age of 3 (from birth to 36 months) with
• Developmental delays in movement, communication, social skills, eating, dressing or toileting, or problem solving;
• Diagnosed conditions such as Down’s Syndrome or seizure disorder
• Unusual development in movement skills or behavior
Children are served in natural environments such as in the home, in child care centers, mother’s day out facilities or in other community
sites. We provide a wide array of services to families. Visit www.hcde-texas.org for more information.
SPECIAL SCHOOLS
713-696-8218
The Special Schools division of HCDE operates two programs: The Academic and Behavior Centers
(ABC) and the Highpoint Schools. The ABC sites are special education alternative schools that
specialize in the delivery of educational services identified by the Admissions, Review, Dismissal
(ARD) committee for students age five through twenty-two (5-22). The two Highpoint campuses
serve expelled and adjudicated youth in grades six through twelve (6-12).
All students served in these programs are referred or placed directly from their home districts that
have contract agreements with HCDE for these services. The ultimate goal for students served in all
of our programs is successful re-integration back into their home districts.
Did you know?
• The Highpoint program offers at-risk students a second chance to succeed.
• High school students have the opportunity to earn credits toward receipt of a diploma.
• Eligible students in our program participate in the Special Olympics.
1,300 STUDENTS SERVED
FY 2010-2011
program and service highlights
We’re HCDE. Always Educating.
THERAPY SERVICES
713-696-8232
5,500 STUDENTS SERVED
FY 2010-2011
Our Therapy Services division has a staff of over 150 specialists including art therapists, music therapists, occupational therapists,
occupational therapist assistants, physical therapists, and physical therapy assistants who serve children 0-21 years of age who
are challenged by learning disabilities, audio or visual impairments, orthopedic impairments, attention deficit disorder, intellectual
disabilities, and/or autism.
Our staff also provides training to parents, volunteers, educators, community healthcare professionals, and early intervention
professionals. We partner with colleges and universities to assist in creating a new generation of specialists to serve children with
disabilities.
Our services include evaluation, intervention, problem-solving and training.
Did you know?
• Division therapists provided over 18,000 days of service in fulfillment of these contracts, with the most frequently provided service
being occupational therapy
• Our services are paid for primarily through contracts from districts and programs on a fee-for-service basis.
• HCDE Therapy Service staff goes to schools, homes, day care centers- wherever infants and toddlers spend their days or where
school-aged children receive their education.
• During the 2010-2011 school year, our therapists provided services to some 5,500 struggling learners!
How they do what they do:
Our therapy staff
• Ensure students have proper positioning equipment for sitting and accessing
learning materials
• Teach self-help skills needed for school including feeding and toileting
• Improve a child’s mobility so he/she can navigate classrooms, hallways, or
playgrounds
• Foster social/emotional health through play-based activities
• Support teachers by helping them understand the impact of a child’s disability on
curriculum content
• Provide problem-solving strategies that remove obstacles existing in classroom
activities or in the environment
special section
program and service highlights
We’re HCDE. Always Educating.
HEAD START
713-694-6300
1,284 STUDENTS SERVED
FY 2010-2011
Head Start is a federally-funded program for preschool children from low-income families and HCDE operates 16 Head Start locations.
Children who attend Head Start participate in a variety of educational activities. They also receive free vision, hearing, nutrition, and
developmental screening, have healthy meals and snacks, and enjoy playing indoors and outdoors in a wholesome setting.
Head Start helps all children succeed. Services are offered to meet the special needs of children with disabilities. Children in Head Start
are between the ages of three and five years old.
Did you know?
• Our Head Start division provides services to children and families in at least 43 Zip Codes in the greater Houston area.
INSTRUCTIONAL SUPPORT SERVICES
713-696-8200
45 SCHOOL DISTRICTS
SERVED FY 2010-2011
The mission of the Instructional Support Services division is to advance excellence in education for all students– one teacher at a time.
This group of professionals provides professional development and instructional support to administrators, teachers, support personnel,
students, parents, and the community. Our consultants will meet with individual administrators and other staff as part of program
improvement planning to help design and meet specified staff development needs. We can also support educators through curriculum
development, alignment, and implementation. Consultants may be available on a long-term basis for specified projects.
We
•
•
•
•
offer support in the following core areas:
English/Language Arts
Mathematics
Science
Social Studies
We also offer services in the areas listed below:
• Elementary Art
• Behavior Management
• Bilingual/ESL
• Digital Learning
• Early Childhood
• Gifted and Talented
• The Scholastic Art and Writing Awards
10
property values and taxes
PRINCIPAL TAXPAYERS IN HARRIS COUNTY, TEXAS FOR TAX YEAR 2010
RANK
TAXPAYERS
TAXABLE VALUE (a)
PERCENT OF TOTAL
ASSESSED VALUE (b)
1
Exxon Mobil Corporation
$2,835,689
1.04%
2
Centerpoint Energy, Inc.
2,393,466
0.88%
3
Shell Oil Company
2,319,116
0.85%
4
Chevron Chemical Company
1,531,504
0.56%
5
Hines Interests Ltd. Partnership
1,180,204
0.43%
6
Hewlett Packard
1,118,453
0.41%
7
Crescent Real Estate
1,076,211
0.39%
8
National Oilwell
1,053,525
0.39%
9
Equistar Chemicals LP
984,725
0.36%
10
Houston Refining
948,896
0.35%
$15,441,789
6.49%
TOTAL
(a) Taxable value equals appraised value less exemptions
(b) Total assessed value: $271.8 (expressed in billions)
Source: Harris County (Texas) Appraisal District
indicators of successful
business operations
11
The following list includes some key financial indicators:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Exceeded the 96 percent tax collection rate goal; actual current taxes collected were at 98.5%;
Administered over $44M in local, state, and federal grants including indirect cost;
Provided $88.7M in economic benefits through cooperatives, grants, and fees-for-services, including professional development;
“Unqualified” opinion expressed by the independent auditors–which is the best auditors’ opinion;
No “Findings” or “Questioned Costs” in the annual financial report;
Maintained a credit rating of “AAA” from Standard & Poor’s and “Aaa” from Moody’s;
Received the Certificate of Excellence in Financial Reporting Award from the Association of School Business Officials International
(ASBO);
Received the Certificate of Achievement Award of Excellence in Financial Reporting from the Government Finance Officers
Association (GFOA);
Received the Award for Outstanding Achievement in Popular Annual Financial Reporting from the Government Finance Officers
Association (GFOA);
Received the Meritorious Budget Award from the Association of School Business Officials International (ASBO);
Received the Distinguished Budget Presentation Award from the Government Finance Officers Association (GFOA);
Received the Award of Merit for purchasing best practices from Texas Association of School Business Officials (TASBO);
Received the Gold Circle Award in the Texas Comptroller’s Leadership Circle Program. (HCDE is the first entity to achieve a perfect
score in meeting the Texas Comptroller’s criteria.);
Received certification from the Government Treasurers’ Association of Texas (GTOT) for the investment policy; and
Received statewide Gold Award from the Texas School Public Relations Association (TSPRA) for the 2010 Popular Annual Financial
Report
where did fy 2010-2011 money come from?
HCDE accounts are organized on the basis of funds, including:
• The General Fund accounts for all revenues and expenditures not reported in another fund.
• The Special Revenue Funds account for specific revenue sources that are limited to being used for a particular purpose.
• The Debt Service Fund accounts for the repayment of debt.
• The Capital Projects Fund tracks the accumulation and use of resources for acquiring, constructing, and rehabilitating capital assets
such as buildings.
Other Sources
The $2.5M difference between total revenues of $86.3M and total expenditures of $88.8M is from the use of fund balance for various
projects.
Local Sources
Local sources of revenue generated $46,930,230 (or 54 percent) of total revenues. This is an increase of 4 percent over the previous
fiscal year. Local revenue sources include charges for services, property taxes, local grants, and miscellaneous revenues.
Charges for services are a significant source of revenue for the Department and, in fiscal year 2011, these constituted 25 percent of
total revenues. Property taxes (what you, as a citizen, pay for supporting education in Harris County) accounted for 21 percent of total
revenues. Other sources including local grants and miscellaneous income represented 8 percent of total revenues.
State Sources
State sources of revenue totaled $9,210,881 (or 11 percent) of total revenues. State revenues increased this year by $1,472,261 (or
19 percent) over last year.
Federal Sources
Revenues from federal sources constituted $30,146,813 (or 35 percent) of total revenues. These federal sources include grants for the
Adult Education, After School, Early Childhood Intervention Keep Pace, and Head Start programs, and various non-major governmental
funds. Federal revenues showed a decline of $1,772,367 from last year due to reduction in available federal assistance.
where did fy 2010-2011
money come from?
revenue
12
FY 2010-11
FY 2009-10
$21,866,639
18,044,185
6,693,136
326,270
46,930,230
$20,865,525
17,252,729
5,088,500
241,409
43,448,163
state sources
Grants-Restricted to Specific Program
On-Behalf Payments
7,253,451
1,957,430
5,034,164
2,704,456
Total State Sources:
9,210,881
7,738,620
30,146,813
31,919,180
$86,287,924
$83,105,963
local sources
Charges for Services
Property Taxes, Levied for General Purposes
Local Grants
Miscellaneous
Total Local Sources:
federal sources
Grants-Restricted to Specific Program
Total Revenues:
MAJOR FUNDS
general
head start
program
federal adult
education
21st
century
clc cycle 5
eci keep
pace
program
eci keep pace
nonmajor
maint of
governmental
effort
funds
total
governmental
funds
revenues
Local
$40,280,929
$0
$0
$0
$0
$153,413
$6,495,888
$46,930,230
State
2,880,297
0
0
0
0
2,101,858
4,228,726
9,210,881
Federal
2,276,822
10,474,324
3,149,779
2,171,427
3,453,233
734,548
7,886,680
30,146,813
$45,438,048
$10,474,324
$3,149,779
$2,171,427
$3,453,233
$2,989,819
$18,611,294
$86,287,924
Total Revenues
how was fy 2010-2011
money spent?
13
Total expenditures increased a net of $3.9M primarily due to the following:
• Decrease in grants for Adult Education, Cooperative for After School Enrichment (CASE), and Early Childhood
Intervention programs;
• Increase in renovation and construction projects (QZAB);
• Decreased Therapy Services contracts;
• Additional Head Start funding resources;
• Increases in grants for Texas Virtual Schools Network, and Texas LEARNS
GRANT ADMINISTRATION
AND CAPITAL PROJECTS
14
Grants
Grants are resources that are limited to being used for specific purposes by the grantor. During Fiscal Year
2010-11, HCDE received $44,093,400 in revenues from local, state, and federal grants. This represents a
4.8 percent increase of $2,015,305 over fiscal year 2009-10. Below is a chart presenting the last ten years in
grants for the Department.
2011
2010
2009
2008
2007
FEDERAL
$30,146,813
$31,919,181
$32,870,856
$33,069,146
$33,848,308
$30,371,781
$30,814,669
$29,653,635
$26,978,517
$22,740,799
STATE
$7,253,451
$5,034,166
$4,144,134
$5,046,756
$3,742,295
$4,024,874
$3,835,931
$3,400,753
$3,507,636
$816,103
LOCAL
2006
2005
2004
2003
2002
$6,693,136
$5,124,748
$4,416,313
$3,204,374
$5,115,563
$6,497,405
$4,735,049
$3,102,667
$3,659,899
$-
$44,093,400
$42,078,095
$41,431,303
$41,320,276
$42,706,166
$40,894,060
$39,385,649
$36,157,055
$34,146,052
$23,556,902
15
debt
HCDE debt service requirements of bonds and notes are payable from future revenues consisting of school
contracts. These bonds and notes were issued as 3 through 17 year bonds and notes with varying amounts of
principal maturing each year. The Department is in compliance with all significant limitations and restrictions.
Effective interest rates on currently outstanding lease revenue bonds range from 3.5 to 5.75 percent. The QZABs
have a zero interest rate. The maintenance tax notes have effective interest rates of 3.0 to 4.0 percent. The
Department has never defaulted on any principal or interest payments.
lease revenue bond repayment schedule
years ended
august 31
principal
interest
total
requirements
2012
$1,761,429
$892,994
$2,654,423
2013
1,811,429
841,469
2,652,898
2014
1,866,429
787,322
2,653,751
2015
1,901,429
730,841
2,632,270
2016-2020
10,442,145
2,522,528
12,964,673
2021-2023
6,744,283
451,411
7,195,694
$24,527,144
$6,226,565
$30,753,709
Totals:
Annual debt service requirements to maturity for lease revenue bonds, QZABs, and maintenance tax notes are
as follows:
Debt principal at August 31, 2011 is comprised of the following individual issues:
16
DEBT
Capital Projects Fund
The HCDE Capital Projects Fund accounts, on a project basis, for projects financed by the proceeds of bond
issues, QZAB bonds, and maintenance tax notes, or for capital projects otherwise mandated to be accounted in
this fund.
Lease Revenue Bonds
In January 2006 the HCDE PFC issued lease revenue bonds–Series 2006A, 2006B, and 2006C. The bonds
were spent on the renovation of a facility for administrative offices, meeting rooms, warehouse, records storage,
and printing; and the construction of new Academic Behavior Center (ABC) and High Point schools. Bond money
was spent on furnishing and equipping the new facilities.
Qualified Zone Academy Bonds (QZAB)
In July 2009, HCDE issued QZAB bonds–Series 2009A. In 1997, the U.S. Congress enacted the Tax Payer Relief
Act which authorized QZAB, allowing qualifying schools and communities to borrow, at little or no interest cost.
The bonds were spent for the energy renovation, furnishing, and equipping of HCDE High Point and ABC schools.
Maintenance Tax Notes
In May 2009, HCDE issued maintenance tax notes-Series 2009B. The notes were spent for energy renovation at
buildings used primarily for administrative purposes.
other business awards
and accomplishments
17
HCDE’s Comprehensive Annual Financial Report (CAFR) for the fiscal year ended August 31, 2010, was awarded the
Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association of the
United States and Canada (GFOA). The Certificate of Achievement is the highest form of recognition for excellence in state
and local government financial reporting.
In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently
organized CAFR, whose contents conform to program standards. Such CAFR must satisfy both GAAP and applicable legal
requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our CAFR continues to conform to the
Certificate of Achievement program requirements and we are submitting our CAFR for the current year to the GFOA.
The Government Finance Officers Association of the United States and Canada (GFOA) has given
an Award for Outstanding Achievement in Popular Annual Financial Reporting to Harris County
Department of Education for its Popular Annual Financial Report for the fiscal year ended August
31, 2010. The Award for Outstanding Achievement in Popular Annual Financial Reporting is a
prestigious national award recognizing conformance with the highest standards for preparation
of state and local government popular reports.
In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting,
a government unit must publish a PAFR whose contents conform to program standards of creativity,
presentation, understandability, and reader appeal.
An Award for Outstanding Achievement in Popular Annual Financial Reporting is valid for a
period of one year only. We believe our current report continues to conform to the Popular
Annual Financial Reporting requirements, and we are submitting it to GFOA.
HCDE has also received the Distinguished Budget Presentation Award from the Government Finance Officers Association
of the United States and Canada (GFOA) for the fiscal year 2011-12 budget document based on the highest quality
that reflects the guidelines established by the national Advisory Council on State and Local Budgeting and GFOA’s best
practices on budgeting.
The Distinguished Budget Preparation Award is valid for a period of one year only. We believe our current budget
presentation report continues to conform to the Distinguished Budget Presentation Award requirements, and we will be
submitting our fiscal year 2012-13 Budget Presentation to GFOA.
On February 14, 2011 Harris County Department of Education was awarded the Gold Standard
Leadership Circle highlighting the organization’s efforts for financial transparency online for the
second straight year. For more information on the Texas Comptroller Leadership Circle Program,
please refer to the Comptroller’s website at:
http://www.window.state.tx.us/comptrol/checkup/leadership.php.
6300 Irvington Boulevard Houston, Texas 77022 www.hcde-texas.org
This document is a product of the Communications and Public Information division of Harris County Department of
Education. The information contained in this Popular Annual Financial Report was compiled by the Business Services
division. We would like to acknowledge the following individuals for the development of this report:
Jesus J. Amezcua, CPA, Assistant Superintendent for Business Services
Rosa Maria Torres, Chief Accounting Officer
John Weber, MBA, RTSBA, Accounting, Reporting and Compliance Officer
Individuals wishing to review the full disclosure financial statements should refer to Harris County Department’s
Comprehensive Annual Financial Report, which available online at the HCDE website at www.hcde-texas.org
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