Hurst-Euless-Bedford Independent School District

Transcription

Comprehensive Annual Financial Report
For the Fiscal Year Ended August 31, 2008
Bedford, Texas
Bedford, Texas
Comprehensive Annual Financial Report
For the Fiscal Year Ended August 31, 2008
Prepared by
Business Operations Department
Debbe Roesler, CPA
Deputy Superintendent of Business Operations
Steven Franks, CPA
Director of Finance
HEB ISD Vision Statement
HEB – Empowering Today to Excel Tomorrow
HEB Mission Statement
HEB ISD will maintain the quality of personnel and rigorous curriculum
and instructional design necessary to meet the challenge of successfully
educating our increasingly diverse population in an atmosphere that
fosters strong character, encourages academic, physical, and creative
achievement, and ensures student safety.
2004 – 2009 District Goals
1.
2.
3.
4.
Student Achievement
Effective and Efficient Operations for All Components
Quality Teaching, Administrative, and Support Staff
Safe, Healthy, and Nurturing Schools
5. Enduring Relationship with Stakeholders
Core Messages
1.
2.
3.
4.
Students are responsible for their own learning.
Quality teachers and effective schools are essential to students’ learning.
Parents and patrons are vital partners in the educational process.
A safe environment for every student and employee is a prerequisite to
learning.
5. Decisions and actions, at all levels, focus on and support effective student
learning.
HURST-EULESS-BEDFORD INDEPENDENT SCHOOL DISTRICT
TABLE OF CONTENTS
INTRODUCTORY SECTION
Page
Certificate of Board
Letter of Transmittal
ASBO Certificate of Excellence
GFOA Certificate of Achievement
Organizational Chart
List of Principal Officials
i
ii
vii
viii
ix
x
Exhibit
FINANCIAL SECTION
INDEPENDENT AUDITOR'S REPORT
MANAGEMENT'S DISCUSSION AND ANALYSIS
1
3
BASIC FINANCIAL STATEMENTS
Government Wide Financial Statements:
Statement of Net Assets
Statement of Activities
15
16
A-1
B-1
Fund Financial Statements:
Balance Sheet - Governmental Funds
17
C-1
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Assets
18
C-2
Statement of Revenues, Expenditures and Changes in Fund
Balances - Governmental Funds
19
C-3
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of the Governmental Funds to the
Statement of Activities
20
C-4
Statement of Net Assets - Proprietary Funds
21
D-1
Statement of Revenues, Expenses, and Changes in Fund Net Assets Proprietary Funds
22
D-2
Statement of Cash Flows - Proprietary Funds
23
D-3
Statement of Fiduciary Assets and Liabilities
24
E-1
TABLE OF CONTENTS
FINANCIAL SECTION (cont'd)
Page
Exhibit
Notes to Basic Financial Statements
25
(Notes to the Financial Statements are an integral part of the Basic Financial Statements)
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule - General Fund
Notes to Required Supplementary Information
40
41
G-1
SUPPLEMENTARY INFORMATION - COMBINING STATEMENTS AND SCHEDULES
Non-Major Special RevenueFunds:
Combining Balance Sheet - Non-Major Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in
Fund Balance - Non-Major Governmental Funds
46
50
H-1
H-2
56
57
H-3
H-4
58
H-5
Agency Funds:
Combining Statement of Changes in Assets and Liabilities - Agency Funds
60
H-6
Capital Assets Used in the Operation of Governmental Funds:
Schedule of General Capital Assets by Source
Schedule of General Capital Assets by School / Location
Schedule of General Capital Assets Changes by School / Location
62
63
64
I-1
I-2
I-3
Schedule of Delinquent Taxes Receivable
66
J-1
Schedule of Expenditures for Computation of Indirect Cost General and Special Revenue Funds
68
J-2
Optimum Fund Balance Calculation Schedule - General Fund
(unaudited)
Budgetary Comparison Schedule - Child Nutrition Fund
69
J-3
70
J-4
Budgetary Comparison Schedule - Debt Service Fund
71
J-5
Internal Service Funds:
Combining Statement of Net Assets - Internal Service Funds
Combining Statement of Revenues, Expenses and Changes
In Fund Net Assets - Internal Service Funds
Combining Statement of Cash Flows - Internal Service Funds
TEXAS EDUCATION AGENCY REQUIRED SCHEDULES
TABLE OF CONTENTS
Schedule
STATISTICAL SECTION (unaudited)
Net Assets by Component
77
1
Expenses, Program Revenues, and Net (Expense)/Revenue
78
2
General Revenues and Total Change in Net Assets
81
3
Fund Balances, Governmental Funds
82
4
Governmental Funds Revenues
84
5
Governmental Funds Expenditures and Debt Service Ratio
86
6
Other Financing Sources and Uses and Net Change in Fund
Balances, Governmental Funds
88
7
Assessed Value and Actual Value of Taxable Property
90
8
Direct and Overlapping Property Tax Rates
92
9
Ten Largest Taxpayers
94
10
Property Tax Levies and Collections
95
11
Outstanding Debt by Type
96
12
Direct and Overlapping Governmental Activities Debt
97
13
Legal Debt Margin Information
98
14
Ratio of Net General Bonded Debt to Taxable Assessed Valuation
100
15
Demographic and Economic Statistics
102
16
Principal Employers
103
17
Full-time-Equivalent District Employees by Type
105
18
Operating Statistics
106
19
Teacher Base Salaries
109
20
Capital Asset Information
110
21
TABLE OF CONTENTS
Exhibit
FEDERAL AWARDS SECTION
Independent Auditor's Report Internal Control Over Financial Reporting
and Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
115
Independent Auditor's Report on Compliance with Requirements Applicable
to Each Major Program and Internal Control Over Compliance in
Accordance with OMB Circular A-133
117
Supplementary Schedule of Expenditures of
Federal Awards
119
Notes to Supplementary Schedule of Expenditures of
Federal Awards
120
Schedule of Findings and Questioned Costs
121
Summary Schedule of Prior Audit Findings
123
K-1
INTRODUCTORY SECTION
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January 20, 2009
Board of Trustees
1849 Central Drive
Bedford, Texas 76022
Dear Board Members:
The Comprehensive Annual Financial Report (CAFR) of Hurst-Euless-Bedford Independent
School District (“District”) for the fiscal year ended August 31, 2008 is submitted herewith. The
District’s Business Office has prepared this report, with responsibility for the accuracy and
completeness of the report resting solely with the District. To provide a reasonable basis for
making these representations, management of the District has established a comprehensive
internal control framework that is designed both to protect the District’s assets from loss, theft, or
misuse and to compile sufficient reliable information for the preparation of the District’s financial
statements in conformity with accounting principles generally accepted in the United States of
America. Because the cost of internal controls should not outweigh their benefits, the District’s
comprehensive framework of internal controls has been designed to provide reasonable rather
than absolute assurance that the financial statements will be free from material misstatement. We
believe the data, as presented, is accurate in all material aspects, that it is presented in a manner to
fairly represent the financial position and results of operations of the District and that all
disclosures necessary to enable the reader to gain the maximum understanding of the District’s
financial affairs have been included. The CAFR for the year ended August 31, 2008, is prepared
in accordance with generally accepted accounting principles (GAAP) and in conformance with
standards of financial reporting established by the Governmental Accounting Standards Board
(GASB) using guidelines recommended by the Government Finance Officers Association of the
United States and Canada (GFOA).
The CAFR is presented in three sections: introductory, financial, and statistical. The
Introductory Section includes this transmittal letter, the District’s organizational chart, the GFOA
and ASBO Certificates, and a list of principal officers. The Financial Section includes the basic
financial statements and the combining and individual fund financial statements and schedules, as
well as the auditor’s report on the basic financial statements and schedules. The Statistical
Section includes selected financial and demographic information, generally presented on a multiyear basis.
GAAP also requires 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 can be found immediately following the report of the
independent auditors.
ii
Copies of this report will be widely distributed throughout the District. A copy will be sent to
each city’s Chamber of Commerce and public library, Moody’s and Standard and Poor’s
Financial Rating Services and the Texas Education Agency.
Profile of the District
The Hurst-Euless-Bedford Independent District is one of 1,229 school districts (both public and
charter districts) in the State of Texas. It provides a program of public education from prekindergarten through grade twelve.
The Hurst-Euless-Bedford Independent School District’s Board of Trustees (“Board”), a sevenmember group, is elected by the public and has decision-making authority. This level of
government has responsibilities over all activities related to public elementary and secondary
school education within the jurisdiction of the District. The members have the power to designate
management, the responsibility to significantly influence operations and primary accountability
for fiscal matters.
The District receives funding from local, state and federal funding sources. The District is not
included in any other governmental “reporting entity” as defined in Section 2100, Codification of
Governmental Accounting and Financial Reporting Standards. Management of the District is
independent of other state and local governments. The Tarrant County Tax Assessor-Collector
collects taxes for the District, but exercises no control over its expenditures.
The annual expenditure budget serves as the foundation for the District’s financial planning and
control. The objective of theses budgetary controls is to ensure compliance with legal provisions
embodied in the annual expenditure budget approved by the District’s Board of Trustees.
Budget-to-actual comparisons are provided in this report for the General Fund. This comparison
is presented as required supplementary information.
Economic Outlook
The District, comprised of 44.3 miles, is located between Dallas and Fort Worth. The majority of
the District is comprised of the cities of Hurst, Euless and Bedford. These cities are both
residential and commercial in makeup. The combined population for the three cities is estimated
to be 142,200. The populations have risen approximately 7.9% since 2000, and the student
population of 20,048 has risen 3.8% during the same time frame. The commercial aspects of the
community include industrial, manufacturing, and transportation jobs for the residents. Bell
Helicopter, Inc., one of the world’s largest manufacturers of commercial and military helicopters
employs over 4,000 people. The Dallas-Fort Worth International Airport is partially located
within the District.
The District has continued to see a modest rise in taxable values. While the cities’ population has
remained relatively stable over the last few years, the District has experienced student growth.
This trend is expected to continue. The District’s central location and proximity to the mass
transit lines of the Dallas/Fort Worth area has resulted in the development of large tracts of land
in the southern portion of the District. In addition, a portion of the District’s enrollment growth is
due to the regeneration of older neighborhoods.
iii
Major Initiatives
Instruction
HEB ISD will maintain the quality of personnel and rigorous curriculum and instructional design
necessary to meet the challenge of successfully educating our increasingly diverse population in
an atmosphere that fosters strong character, encourages academic, physical, and creative
achievement, and ensures student safety.
During the 2001 – 2002 school year, the District implemented the Schools of Choice program at
five elementary campuses. This program provides elementary students with enriched educational
choices beyond the traditional framework of excellent neighborhood schools. The three
programs, Suzuki Strings, Foreign Language Immersion, and Core Knowledge have been such a
success that the programs have been expanded each year since inception. Now the District offers
the Core Knowledge curriculum at every elementary school. Foreign Language Immersion has
grown from one first grade classroom in 2001- 2002 to offerings in first through sixth grades at
the original school. A second elementary offers first through fifth grade. Each year, an
additional year is added to the curriculum to accommodate the aging of the students. This
program was expanded to the junior high school level beginning with the 2007 – 2008 school
year. A new language program offering Mandarin Chinese and Hindi was implemented at the
junior high school level beginning in the fall of 2007. Suzuki Strings has expanded from four
elementary sites to seven sites. In 2005 – 2006, the Suzuki students joined a new orchestra
program when they entered junior high. These same students will also enjoy an orchestra
program during their high school years, currently planned for the 2008 – 2009 school year. A
tuition-based Core Knowledge Pre-Kindergarten program began in the 2002 - 2003 school year.
The popularity of this program prompted expansion to three sites for the 2005 - 2006 school year.
These three sites continue to operate at capacity.
The District’s two high schools, L.D. Bell and Trinity, were accepted to participate in the
prestigious International Baccalaureate Program. The District was the first school system in
Tarrant County to offer this rigorous course of study that is designed to meet the needs of highly
motivated and academically talented high school students. The District also has the distinction of
being one of the few districts in the world to have the program on multiple campuses. The
International Baccalaureate Program is offered in 1,980 schools in more than 124 countries.
During the 2006 - 2007 school year the district served 213 International Baccalaureate students.
The academic preparation provides students with the skills and opportunities necessary for
success in the competitive, modern world. Students who enter the program embark on an
advanced curriculum recognized by premier colleges and universities throughout the world. The
District’s fifth class of IB graduates received their diplomas in the spring of 2008. Of the 103
seniors in the program, 80 received the full International Baccalaureate Diploma.
The District started a district-wide extended day program at the elementary schools for the 2003 –
2004 school year. This program provides childcare after school to accommodate working
parents’ schedules while enriching the learning experience of the students with a structured,
nurturing environment. The program was well received and turned out to be financially
successful as well. All proceeds from the tuition remain at the campus to be utilized by the
principal to provide additional funding for the needs of the school and its students. During the
summer of the 2006 – 2007 school year, three campuses offered a summer enrichment day care
program. These, too, were successful and plans include offering the program in the future.
iv
Planning
Much of the District’s planning effort is focused on the District’s Improvement Plan. The plan
demonstrates the commitment to increase student achievement for all students. Campus
Improvement Plans, which work in concert with the District’s plan, 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.
Debt Administration
Debt service costs continue to be a major area of expense due to the building program, which is
financed by the sale of bonds. The District has enjoyed a favorable market for its bonds, which
has resulted in savings in interest cost. In May 2006, the District issued $84,185,000 of refunding
bonds, saving approximately $3.1 million in interest costs over the life of the debt. The District
maintained its “AAA” rating based on the guarantee of the Permanent School Fund of the State of
Texas. The district’s underlying rating for debt outstanding is “AA-” by the Standard & Poor’s
Ratings Service and “A1” by Moody’s Investor Services, Inc. Under current State law, with
respect to any proposed new bond issuance, a district must have a projected ability to pay the
principal of and interest on the proposed bonds and all previously issued bonds other than bonds
authorized to be issued at an election held on or before April 1, 1991, and issued before
September 1, 1992, from a tax at a rate not to exceed $0.50 per $100 of valuation. The District
complies with this requirement.
Cash Management
Cash temporarily idle during the year was invested in various investment pools guaranteed by
federally backed securities.
The District’s investment policy is to minimize risk while maintaining a competitive yield on its
portfolio. All investment collateral was held by the District’s depository bank or by the District’s
agent in the District’s name. Accordingly, deposits were either insured by federal depository
insurance or collateralized by securities held in the District’s name.
To comply with the reporting requirements set forth in House Bill 2459, quarterly investment
reports were prepared and submitted to the Board of Trustees. The reports detailed the District’s
investment position as of the end of each quarter and reflected the compliance with the District’s
investment strategy and the investment policies.
Risk Management
The District’s administration is charged with the responsibility of supervising the protection of
the District’s assets by employing various risk management techniques and procedures to reduce,
absorb, minimize or transfer risk. The District carries insurance for general liability, auto liability
and workers’ compensation. District property is insured for its replacement value. The
administration is also responsible for directing the District’s fringe benefits program, which
includes the administration of health, life and other benefits for full-time employees.
v
Other Information
Independent Audit
State law and District policy require an annual audit by independent certified public accountants.
The accounting firm of Weaver and Tidwell, L.L.P. was selected to fulfill this requirement. In
addition to meeting the requirements set forth in state statutes, the audit also was designed to
meet the requirement of the federal Single Audit Act of 1984, as amended in 1996 and U.S.
Office of Management and Budget Circular A-133, Audits of State, Local Governments, and
Non-Profits Organizations. The auditors’ report on the government-wide financial statements and
the fund statements and schedules is included in the financial section of this report.
Awards
The Association of School Business Officials (ASBO) awarded a Certificate of Excellence in
Financial Reporting to the District for its comprehensive annual financial report for the fiscal year
ended August 31, 2007. In addition, the Government Finance Officers Association of the United
States and Canada (GFOA) awarded a Certificate of Achievement in Financial Reporting to the
District for its comprehensive annual financial report for the fiscal year ended August 31, 2007.
This is the seventh consecutive year that the District has achieved this prestigious award. In order
to be awarded these certificates, the District must publish an easily readable and efficiently
organized comprehensive annual financial report. This report satisfied both accounting principles
generally accepted in the United States of America and applicable legal requirements.
These certificates are valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the programs’ requirements and we are
submitting it to ASBO and GFOA to determine its eligibility for the fiscal year 2007 – 2008
certificates.
Acknowledgments
The preparation of this report on a timely basis could not be accomplished without the efficient
and dedicated services of the entire staff of the Business Department. We would like to express
our appreciation to all members of the Department who assisted and contributed to its
preparation.
We also wish to thank the members of the Board of Trustees for their continued leadership and
support, and for planning and conducting the financial operations of the District in a responsible
and progressive manner.
Sincerely,
__________________________________________________
__________________________________________________
Gene Buinger, Ed.D.
Superintendent
Debra A. Roesler, CPA
Deputy Superintendent for
Business Operations
vi
vii
viii
ix
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HURST-EULESS-BEDFORD
INDEPENDENT SCHOOL DISTRICT
Organizational Chart
August 31, 2008
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Board of Trustees
Name
Length of Service
Term Expires
Occupation
Jeff Burnett, D. Min.,
President
11 years
May 2009
Pastor
Jim Schooler, Vice
President
4 years
May 2010
Financial
Advisor
Kay Miller, Secretary
5 years
May 2009
Volunteer
Faye Beaulieu, Ph.D.,
member
13 years
May 2010
Project Director
Andy Cargile,
member
1 year
May 2011
Retired
Educator
Mark Cyrier, member
2 years
May 2011
Business Owner
Ellen Jones, member
7 years
May 2010
Volunteer
Administrative Officials
Name
Position
Experience
Gene Buinger, Ed. D.
Superintendent
33 years
Debbe Roesler, CPA
Deputy Superintendent for Business
Operations
22 years
Steve Chapman
Deputy Superintendent for Educational
Operations
24 years
Joy Busey
Assistant Superintendent for Elementary
Administration
39 years
Debbie Tribble, Ed. D.
Assistant Superintendent for Secondary
Administration
29 years
Callie Hearne
Assistant Superintendent for Human
Resources
35 years
Janice Short
Assistant Superintendent for Technology
23 years
x
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT
WEAVER
TIDWELL
AND
L.L.P.
Certified Public
Accountants
and Consultants
Board of Trustees
Bedford, Texas
We have audited the accompanying financial statements of the governmental
activities, each major fund, and the aggregate remaining fund information of the
Hurst-Euless-Bedford Independent School District (the District) as of and for the
year ended August 31, 2008, which collectively comprise the District’s basic
financial statements as listed in the table of contents. These financial statements
are the responsibility of the District'
s administration. Our responsibility is to
express opinions on these basic financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in the United States of America and the standards applicable to
financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the basic
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the basic financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall basic financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all
material respects, the respective financial position of the governmental activities,
each major fund, and the aggregate remaining fund information of the District as
of August 31, 2008, and the respective changes in financial position and the cash
flows, where applicable, thereof, for the year then ended in conformity with
accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our
report dated January 7, 2009, on our consideration of the District'
s internal
control over financial reporting and our tests of its compliance with certain
provisions of laws, regulations, contracts, 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 the
testing, and not to provide an opinion on the internal control over financial
reporting or on compliance. That report is an integral part of an audit performed
in accordance with Government Auditing Standards and should be considered in
assessing the results of our audit.
WWW.WEAVERANDTIDWELL.COM
AN INDEPENDENT MEMBER OF
BAKER TILLY
INTERNATIONAL
DALLAS
1
OFFICES IN
FORT WORTH
HOUSTON
Page 2
The accompanying management's discussion and analysis (on pages 3 through
14) and the budgetary comparison schedule-general fund on page 40 are not a
required part of the basic financial statements but are supplementary information
required by the Governmental Accounting Standards Board. We have applied
certain limited procedures, which consisted principally of inquiries of
management regarding the methods of measurement and presentation of the
required supplementary information. However, we did not audit the information
and express no opinion on it.
Our audit was conducted for the purpose of forming an opinion on the financial
statements that collectively comprise the Hurst-Euless-Bedford Independent
School District’s basic financial statements. The introductory section,
supplementary information – combining statements and schedules, Texas
Education Agency required schedules, and statistical section are presented for
purposes of additional analysis and are not a required part of the basic financial
statements. The accompanying schedule of expenditures of federal awards is
presented for purposes of additional analysis as required by U.S. Office of
Management and Budget Circular A-133, Audits of States, Local Governments,
and Non-Profit Organizations, and in addition to the combining statements and
schedules and the Texas Education Agency required schedules listed in the table
of contents, are not a required part of the basic financial statements. Such
information, excluding the Fund Balance and Cash Flow Worksheet – General
Fund (Exhibit J-3) and statistical section marked unaudited on which we express
no opinion, has been subjected to the auditing procedures applied in the audit of
the basic financial statements and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
WEAVER AND TIDWELL, L.L.P.
Fort Worth, Texas
January 7, 2009
2
Management's Discussion and Analysis
Year Ended August 31, 2008
As management of the Hurst-Euless-Bedford Independent School District (the District), we offer readers of
the District’s basic financial statements this narrative overview and analysis of the financial activities of the
District for the fiscal year ended August 31, 2008. We encourage readers to consider the information
presented here in conjunction with additional information that we have furnished in our letter of transmittal,
which can be found on pages ii to vi of this report.
FINANCIAL HIGHLIGHTS

The General Fund had $148.2 million in fiscal year 2008 revenues, which primarily consisted of property
taxes and state aid; and $138.5 million in expenditures. The General Fund’s fund balance increased from
$44.5 million as of August 31, 2007 to $56.5 million as of August 31, 2008.

This District’s total long-term liabilities decreased by $4.4 million during this report’s fiscal year. The
primary reason for this decrease was the retirement of $2.7 million in general obligation bonds.

General revenues accounted for $163.3 million, or 84.4% of all fiscal year 2008 revenues. Programspecific revenues in the form of charges for services and grants and contributions accounted for $30.1
million or 15.6% of total fiscal year 2008 revenues.

The District had approximately $183.8 million in expenses related to governmental activities; of which,
$30.1 million of these expenses were offset by program-specific charges for services or grants and
contributions. General revenues of $163.3 million offset the remaining costs of these programs, resulting
in a 43.0% increase or $9.6 million addition to net assets.
OVERVIEW OF FINANCIAL REPORT
This discussion and analysis is intended to serve as an introduction to the District’s basic financial
statements. The District’s 2007-2008 comprehensive annual financial report’s financial section is comprised
of four components: 1) government-wide financial statements, 2) fund financial statements, 3) notes to the
financial statements, and 4) supplementary information.
Government-wide Financial Statements
The government-wide basic 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. This section begins with statements
of net assets and activities. These two statements provide information about the activities of the District as a
whole and present a long-term view of the District's property and debt obligations and other financial
matters.
The statement of net assets presents information on all of the District’s assets and liabilities with the
difference between the two reported as net assets. Over time, changes in net assets serve as a useful indicator
of whether the financial position of the District is improving or not.
3
The statement of activities presents information showing how the District’s net assets changed during the
reported fiscal year. All changes in net assets are recorded as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Therefore, revenues and expenses are reported
for some items that will result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but
unused compensated absences).
The government-wide financial statements outline functions of the District that are principally supported by
property taxes and intergovernmental revenues (governmental activities). The governmental activities of the
District include instruction, support services, operation and maintenance of plant, student transportation, and
operation of non-instructional services.
Fund Financial Statements
The fund financial statements report the District's operations through fund groups to allow detailed analysis
of the government-wide statements by providing specific information about the District's major funds. The
District’s major funds are the General Fund, Debt Service Fund, and Capital Projects Fund. The District uses
fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
The governmental activity statements tell how services were financed in the short term as well as what
resources remain for future spending. They reflect the flow of current financial resources, supply the basis
for tax levies and identify the District’s appropriation controls.
Because the focus of governmental funds is narrower than that of the government-wide financial statements,
it is most useful to thoroughly understand the components of the major fund groups, and then review the
government-wide financial statements for governmental activities as a whole. By doing so, readers may
better understand the long-term impact of the District’s near-term financing decisions. Analysis of both the
governmental fund balance sheet by fund and the governmental fund statement of revenues, expenditures,
and changes in fund balances will facilitate the readers understanding of the District’s financial activities.
For proprietary activities, fund financial statements tell how goods or services were sold to departments
within the District or to external customers and how the sales revenues covered the expenses of the goods or
services. Proprietary funds, like the government-wide statements, provide both long-term and short-term
financial information.
Notes to the Basic Financial Statements
The notes sub-section provides both narrative explanations and additional data needed for full disclosure and
enhancement to the government-wide statements and the various fund financial statements. These notes are
meant to ensure that a complete picture is presented in the District’s annual financial report.
Required Supplementary Information
GAAP also call for certain information to accompany the audited basic financial statements. This section
includes general fund budgetary comparisons and notes to the District’s budgeting process and financial
management controls. The management’s discussion and analysis of the District’s financial status is
presented before the basic financial statements for better reader understanding and easier review of the
annual report.
Supplementary Information
The combining statements for non-major governmental funds and internal service funds contain even more
information about the District's financial management and service offerings. Texas Education Agency
(TEA) does not require the supplemental material. It should be noted, the section labeled Other Schedules
contains data used by monitoring or regulatory agencies, such as TEA, for assurance that the District is using
allocated funds in compliance with the terms of grant agreements. The combining balance sheets of nonmajor governmental funds provides detailed information of the District’s Federal support, campus activities,
4
and other special grants, that identifies enrichment opportunities to the District’s local effort. Please refer to
the Exhibits H1 and H2.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net assets may serve over time as a useful indicator of a government’s financial position. In the case of the
District, assets exceed liabilities on August 31, 2008 by $32.1 million indicating the District’s overall
financial position remains sound.
A portion of the District’s net assets represents resources subject to external restrictions on how they may be
used. As of August 31, 2008, the District’s restricted net assets for food service was $2.2 million. As of
August 31, 2008, the unrestricted net assets, the part of net assets that can be used to finance day-to-day
operations without constraints established by debt covenants, enabling legislation, or legal requirements were
$42.9 million.
The investment in capital assets less any related debt is ($13.0 million). The District uses capital assets to
provide services; consequently, these assets are not available for future appropriation. Although the
District’s investment in its capital assets is reported net of related debt, it should be understood that the
resources needed to repay District debt is provided from other resources, since the capital assets themselves
cannot be used to meet debt obligations.
The following table presents a summary of the District’s net assets for the fiscal year ended August 31, 2008
with a comparison to the fiscal year ended August 31, 2007:
Table I
Condensed Statement of Net Assets
Governmental
Activities
2007
Current and other assets
Capital assets
Total assets
Current liabilities
Long-term liabilities
Total liabilities
Net Assets:
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total net assets
Governmental
Activities
2008
% Change
2007 to 2008
$ 67,883,278
212,878,871
280,762,149
$ 81,001,597
203,598,614
284,600,211
19.32%
-4.36%
1.37%
10,528,836
247,774,350
258,303,186
9,176,631
243,339,939
252,516,570
-12.84%
-1.79%
-2.24%
(5,468,408)
1,472,897
26,454,474
$ 22,458,963
(13,042,146)
2,221,063
42,904,724
$ 32,083,641
138.50%
50.80%
62.18%
42.85%
5
Significant current-year transactions that have had an impact on the statement of net assets:




A net reduction in outstanding general obligation bonds payable of $2.7 million.
The net addition of $1.3 million in capital assets through the construction of various school
improvements and purchases of land and personal property.
Total revenues for the fiscal year ended August 31, 2008, $193.5 million.
Total cost of all programs and services, $183.8 million with a resulting increase in net assets of $9.6
million.
The following information and Table II presents a summary of the changes in net assets for the fiscal year
ended August 31, 2008 with a comparison to the fiscal year ended August 31, 2007:
Net assets of the District's governmental activities increased from $22.5 million to $32.1 million.
The increase in governmental net assets is primarily due to:



An increase in state funding due to a change in the state funding formula.
An increase in investment earnings due to higher interest rates.
Proceeds from sale of district property.
6
Table II
Change in Net Assets
Governmental
Activities
2007
Revenues:
Program revenues:
Charges for services
Operating grants and contributions
General revenues:
Maintenance and operations taxes
Debt service taxes
State grants
Investment earnings
Miscellaneous
Total revenue
Governmental
Activities
2008
% Change
2007 to 2008
$5,761,110
22,581,829
$4,783,340
25,343,721
-16.97%
12.23%
102,882,662
19,428,573
22,171,179
4,066,136
3,421,758
180,313,247
83,590,286
21,094,490
52,913,100
3,347,497
2,398,921
193,471,355
-18.75%
8.57%
138.66%
-17.67%
-29.89%
7.30%
93,815,272
3,348,897
100,115,053
2,986,858
6.72%
-10.81%
3,061,832
1,743,579
9,288,936
3,111,620
1,914,495
9,605,865
1.63%
9.80%
3.41%
6,563,505
361,572
1,847,134
2,666,232
7,475,814
5,496,519
4,799,355
13,287,993
786,959
2,864,774
1,214,803
16,860,776
2,332
-
6,899,080
475,657
1,863,388
3,029,782
7,431,378
5,438,441
3,910,315
14,493,713
814,667
3,638,339
1,407,095
16,081,023
1,780
14,842
5.11%
31.55%
0.88%
13.64%
-0.59%
-1.06%
-18.52%
9.07%
3.52%
27.00%
15.83%
-4.62%
-23.67%
100.00%
28,960
175,515,244
14,625
598,661
183,846,677
-49.50%
100.00%
4.75%
Change in net assets
4,798,003
9,624,678
100.60%
Net assets-beginning
Net assets-ending
17,660,960
$22,458,963
22,458,963
$32,083,641
27.17%
42.85%
Expenses:
Instruction
Instructional resources and media services
Curriculum and instructional staff
development
Instructional leadership
School leadership
Guidance, counseling and evaluation
services
Social services
Health services
Student (pupil) services
Food services
Cocurricular/extracurricular activities
General administration
Plant maintenance and operations
Security monitoring services
Data processing services
Community services
Interest on long-term debt
Bond issuance cost and fees
Contracted instructional
Juvenile Justice alternative educational
placement
Other intergovernmental charges
Total expenses
7
The District’s continued reliance upon tax revenues is demonstrated by the graph below, which indicates that
54% of total revenues for governmental activities come from local taxes.
Revenues
3%
16%
State Revenue
27%
General Tax Revenues
Program Revenues
Miscellaneous Revenues
54%
The cost of all governmental activities this year was $183.8 million. However, as shown in the statement
of activities, the amount that our taxpayers ultimately financed for these activities through district taxes
was $104.7 million because some of the costs were paid by those who directly benefited from the
programs ($4.8 million) or by other governments and organizations that subsidized certain programs with
grants and contributions ($25.3 million).
8
Table III presents the net cost of the District’s major functional activities (net cost is total cost less charges
for services generated by the activities and intergovernmental aid provided for specific programs):
Table III
Function Analysis
Function
Instruction
Curriculum and instructional staff
development
School leadership
Guidance, counseling and evaluation
services
Social services
Health services
Food services
Security monitoring services
Community services
Interest on long-term debt
Bond issuance cost and fees
Juvenile Justice alternative educational
placement
Total expenses
Net
Expenses
2007
$82,160,066
3,043,843
Net
Expenses
2008
$87,337,188
2,646,011
% Change
2007 to 2008
6.30%
-13.07%
2,077,553
2,288,631
10.16%
1,378,357
8,579,290
1,472,610
8,736,284
6.84%
1.83%
5,255,659
5,713,258
8.71%
233,291
1,704,379
1,936,844
(101,734)
3,179,666
4,553,404
12,716,744
696,195
2,799,061
67,619
16,860,776
2,332
-
361,254
1,723,047
2,622,229
(508,404)
3,049,503
3,743,708
13,418,386
795,612
3,554,235
55,133
16,081,023
1,780
14,842
54.85%
1.10%
35.39%
399.74%
-4.09%
-17.78%
5.52%
14.28%
26.98%
-18.47%
-4.62%
-23.67%
100.00%
28,960
$147,172,305
14,625
598,661
$153,719,616
-49.50%
100.00%
4.45%
9
HIGHLIGHTS OF THE DISTRICT'S MAJOR FUNDS
As the District completed the year, its governmental funds balance sheet reported a fund balance of $65.3
million, which is an increase of $13.8 million from the prior year.
The schedule below indicates the fund balance by fund type as of August 31, 2008.
Fund Balance
August 31, 2007
Fund Balance
August 31, 2008
% Change
2007 to 2008
General Fund
Debt Service
Capital Projects
Non-major
$ 44,512,929
1,605,088
776,591
4,633,961
$ 56,538,770
2,845,883
132,202
5,825,923
27.02%
77.30%
-82.98%
25.72%
Total
$ 51,528,569
$ 65,342,778
26.81%
General Fund
The General Fund increased fund balance $12.0 million from the prior year. The following factors
contributed to the General Fund's gain in fund balance: an increase in state funding due to a change in the
state funding formula, an increase in investment earnings due to higher interest rates, and proceeds from sale
of district property.
The District is a service entity; therefore, the largest portions of the General Fund expenditures are related to
payroll and contracted services such as utilities, as illustrated below.
Expenditures
By Object
2007
2008
% Change
2007 to 2008
Payroll
Contracted Services
Supplies
Other Operating
Capital Outlay
$ 111,776,873
8,298,324
7,464,455
1,638,675
4,807,108
$ 119,491,222
8,967,067
6,832,083
1,710,311
1,463,973
6.90%
8.06%
-8.47%
4.37%
-69.55%
Total
$ 133,985,435
$ 138,464,656
3.34%
10
General Fund Expenditures
2%
Payroll
5%
7%
Contracted Services
Supplies
All Others
86%
Debt Service Fund
The Debt Service fund balances increased $1.2 million from $1.6 million in 2006-2007 to $2.8 million in
2007–2008 year due to continued efforts to collect delinquent taxes and increased interest earnings.
Capital Projects Fund
The Capital Projects fund balances decreased $644,389 from $776,591 in 2006-2007 to $132,202 in 20072008, due to the completion of construction projects. Although these capital expenditures reduce available
fund balances, they create new assets for the District as reported in the statement of net assets and as
discussed in note L in the financial statements.
BUDGETARY PROCESS
Over the course of the year, budget amendments are necessary to realign funds. Realignment of funds will
increase and/or decrease various function levels within the budget. Budget amendments, which are
controlled at the function level, are approved by the Board of Trustees and recorded in the official board
minutes. The final amended budget reflects necessary amendments needed to address unforeseen situations
and estimates after the original budget was adopted. The $3,692,299 change in appropriations, reflected on
Exhibit G-1, were related to the following:



$2,008,900 for expenditures associated with roll over allocations for campus and department
materials and services.
$1,000,000 for District technology upgrades.
$683,396 for state contributions to TRS made on behalf of district employees.
11
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
As of August 31, 2008, the District had invested $203.6 million in capital assets, including facilities and
equipment for instruction, transportation, athletics, administration, and maintenance. This amount represents
a net decrease after depreciation of $9.3 million from last year. Assets totaling $2.0 million were added to
the District’s capital asset inventory, and depreciation expense for the year was $10.4 million.
The following schedule presents capital asset balances net of depreciation for the fiscal year ended August
31, 2008:
% Change
2007
2008
2007 to 2008
Land
$ 7,228,823
$ 6,808,982
-5.81%
Furniture and equipment
7,347,339
7,327,663
-0.27%
Buildings and improvements
198,302,709
189,461,969
-4.46%
Total
$ 212,878,871
$ 203,598,614
-4.36%
Additional information on the District’s capital assets can be found in Note L of this report.
LONG-TERM LIABILITIES
As of August 31, 2008, the District had $243.3 million in general obligation bonds and other long-term
liabilities outstanding, of which $7.9 million is due prior to August 31, 2009. Table IV presents a summary
of the District’s outstanding long-term liabilities for the fiscal year ended August 31, 2008.
School building bonds
Premium on GO bonds
Loss on refunding
Accreted interest
Compensated absences
payable
Total
Table IV
Long-Term Liabilities
2007
$ 217,605,395 3,472,276 (1,653,391) 27,374,179 975,891
$ 247,774,350
2008
$ 214,930,493
3,266,400
(1,556,133)
25,698,883
% Change
2007 to 2008
-1.23%
-5.93%
-5.88%
-6.12%
1,000,296 $ 243,339,939
2.50%
-1.79%
The District maintained its “AAA” rating based on the guarantee of the Permanent School Fund of the State
of Texas. The district’s underlying rating for debt outstanding is “AA-” by the Standard & Poor’s Ratings
Service and “A1” by Moody’s Investor Services, Inc.
Under current State law, with respect to any proposed new bond issuance, a district must have a projected
ability to pay the principal of and interest on the proposed bonds and all previously issued bonds other than
bonds authorized to be issued at an election held on or before April 1, 1991, and issued before September 1,
12
1992, from a tax at a rate not to exceed $0.50 per $100 of valuation. The District complies with this
requirement.
Additional information on the District’s long-term liabilities can be found in Notes M & N of this report.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
Economic Factors
The District's elected and appointed officials considered many factors when setting the 2007-2008 budget
and tax rates. One of those factors was the economy. The District has maintained an increasing property tax
base for the last nine years – an average of 10% prior to 2002 slowing to a steady 2% to 5% growth during
the past five years. A majority of the economy within the area is related to the airline industry, with the
Dallas-Fort Worth airport partially located in the District boundaries. American Airlines, whose
headquarters are located within the District, is the District’s largest taxpayer, making up 2.54% of the
District’s tax base. The District’s second largest taxpayer and largest employer is Bell Helicopter, Inc., one
of the world’s largest manufacturers of commercial and military helicopters. Employing over 4,000 people,
Bell Helicopter values made up 1.71% of the District’s 2007 tax base. On a smaller scale, the District’s
central location and proximity to the mass transit lines of the Dallas/Fort Worth area has resulted in the
purchase and planned development of large tracts of land in the southern portion of the District. As a result,
the District’s taxable property values for fiscal year 2007-2008 increased approximately 4.7% from the prior
fiscal year.
District’s Tax Rate
In the spring of 2006, the Texas Legislature met in a special session to address the educational funding
problem based on public sentiment that rising property taxes had placed an undue burden on taxpayers to
fund Texas education. The state set a cap on the Maintenance and Operations tax rate for each district. For
2006 – 2007, a district may tax no more than 88% of the 2005 – 2006 tax rate. The state also authorized
districts to raise an additional maximum $0.04 for enrichment purposes.
For 2007 – 2008, the state required districts to roll back their tax rates to 66% of the 2005 – 2006 tax rate.
As a result, the District set the 2007 – 2008 tax rate at $1.04 for Maintenance and Operations and $0.2637 for
Debt Service. The Maintenance and Operation tax rate decreased by .3041 from 1.3441 in 2006-2007 to
1.0400 in 2007-2008, The Debt Service tax rate increased by .0102 from .2535 in 2006-2007 to .2637 in
2007-2008.
CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors
with a general overview of the District's finances and to show the District's accountability for the resources it
receives. If you have questions about this report or need additional financial information, feel free to contact
the Business Operations department at Hurst-Euless-Bedford Independent School District, 1849 Central
Drive, Bedford, Texas, 76022.
13
BASIC FINANCIAL STATEMENTS
14
Exhibit A-1
STATEMENT OF NET ASSETS
AUGUST 31, 2008
Data
Control
Codes
ASSETS
1110
1220
1230
1240
1250
1290
1300
1410
1420
1510
1520
1530
1000
Governmental
Activities
Cash and cash equivalents
Property taxes receivable (delinquent)
Allowance for uncollectible taxes
Due from other governments
Accrued interest
Other receivables
Inventories, at cost
Deferred expenses
Bond issuance costs
Land
Buildings and improvements, net
Furniture and equipment, net
$
Total assets
61,488,544
4,959,470
(743,921)
14,337,511
79,453
2,148
506,428
89,549
282,415
6,808,982
189,461,969
7,327,663
284,600,211
LIABILITIES
2110
Accounts payable
2140
Interest payable
2150
Payroll deductions and withholdings payable
2160
Accrued wages and benefits payable
2180
Due to other governments
2200
Other accrued expenses
2300
Unearned revenue
Long-term liabilities:
2501
Due within one year
2502
Due in more than one year
7,879,479
235,460,460
2000
252,516,570
866,586
428,493
135,039
4,927,529
33,572
858,525
1,926,887
Total liabilities
NET ASSETS
3200
Investment in capital assets, net of related debt
3820
Restricted for food service
3900
Unrestricted
3000
(13,042,146)
2,221,063
42,904,724
Total net assets
$
The notes to financial statements are an integral part of this statement.
15
32,083,641
Exhibit B-1
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED AUGUST 31, 2008
Net (Expense) Revenue
and Changes in
Net Assets
Program Revenues
Data
Control
Codes
Operating
Grants &
Contributions
Charges for
Services
Expenses
$ 100,115,053
0011
Instruction
0012
2,986,858
-
340,847
(2,646,011)
0013
Curriculum and instructional staff development
3,111,620
-
822,989
(2,288,631)
0021
1,914,495
-
441,885
(1,472,610)
0023
School leadership
9,605,865
-
869,581
(8,736,284)
0031
Guidance, counseling, and evaluation services
6,899,080
-
1,185,822
(5,713,258)
0032
Social services
475,657
-
114,403
(361,254)
0033
Health services
1,863,388
-
140,341
(1,723,047)
0034
3,029,782
-
407,553
(2,622,229)
0035
Food services
7,431,378
3,652,606
4,287,176
0036
5,438,441
525,692
1,863,246
(3,049,503)
0041
3,910,315
166,607
(3,743,708)
0051
14,493,713
569,982
(13,418,386)
0052
Security and monitoring services
814,667
-
19,055
(795,612)
0053
3,638,339
-
84,104
(3,554,235)
0061
Community services
1,407,095
-
1,351,962
(55,133)
0071
Debt service - interest on long term debt and fees
16,082,803
-
-
(16,082,803)
0091
14,842
-
-
(14,842)
0095
Juvenile Justice alternative educational placement
14,625
-
-
(14,625)
0099
598,661
-
-
(598,661)
TOTAL PRIMARY GOVERNMENT:
$
99,697
$
505,345
$ 183,846,677
$
4,783,340
$
12,678,168
Governmental
Activities
$
(87,337,188)
508,404
25,343,721
(153,719,616)
General Revenues:
Data Control Codes
Taxes:
MT
Property taxes, levied for general purpose
83,590,286
DT
Property taxes, levied for debt service
21,094,490
SF
State grants, unrestricted
MI
Miscellaneous local and intermediate
1,037,809
IE
Investment earnings
3,347,497
S1
Special item - gain on sale of assets
1,361,112
TR
52,913,100
Total general revenues and special items
163,344,294
9,624,678
CN
NB
Net assets -- beginning
NE
Net assets -- ending
22,458,963
$
16
32,083,641
Exhibit C-1
BALANCE SHEET
GOVERNMENTAL FUNDS
AUGUST 31, 2008
Data
control
codes
General
Fund
Debt Service
Fund
Capital
Projects
Fund
Nonmajor
Funds
Total
1110
1220
1230
1240
1250
1260
1290
1300
1410
ASSETS
Cash and temporary investments
Property taxes - delinquent
Allowance for uncollectible taxes
Accrued interest
Due from other funds
Due from other sources
Prepaid expenditures
$ 54,701,874
4,209,125
(631,369)
13,917,721
74,538
939,881
2,148
432,316
89,549
$ 2,840,320
750,345
(112,552)
3,696
1,867
—
—
—
—
$
803,004
—
—
—
—
—
—
—
—
$ 2,412,612
—
—
416,094
3,048
3,819,683
—
74,112
—
$ 60,757,810
4,959,470
(743,921)
14,337,511
79,453
4,759,564
2,148
506,428
89,549
1000
Total Assets
$ 73,735,783
$ 3,483,676
$
803,004
$ 6,725,549
$ 84,748,012
$
$
$
3,375
—
—
667,427
—
—
$
$
2110
2150
2160
2170
2180
2300
2000
LIABILITIES and FUND BALANCES
Liabilities:
Accounts payable
Payroll deduction and withholdings payable
Accrued wages and benefits payable
Due to other funds
Deferred revenue
Total liabilities
3610
Fund Balances:
Reserved Fund Balance:
Investments in inventory
Retirement of funded indebtedness
Prepaid items
Food service
Authorized construction
Unreserved fund balance:
Designated for construction and other
Unreserved
Unreserved, reported in nonmajor:
Special revenue funds
3000
Total fund balance
3410
3420
3430
3450
3470
3510
3600
4000
Total liabilities and fund balances
598,666
135,039
4,689,940
6,349,488
4,916
5,418,964
—
—
—
—
—
637,793
258,849
—
237,561
272,454
28,656
102,106
860,890
135,039
4,927,501
7,289,369
33,572
6,158,863
17,197,013
637,793
670,802
899,626
19,405,234
432,316
—
89,549
—
—
—
2,845,883
—
—
—
—
—
—
—
132,202
74,112
—
—
2,146,951
—
506,428
2,845,883
89,549
2,146,951
132,202
29,203,320
26,813,585
—
—
—
—
—
—
29,203,320
26,813,585
—
—
—
3,604,860
3,604,860
56,538,770
2,845,883
132,202
5,825,923
65,342,778
$ 73,735,783
$ 3,483,676
803,004
$ 6,725,549
$ 84,748,012
17
$
Exhibit C-2
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE
AUGUST 31, 2008
Total fund balances - governmental funds (from C-1)
Capital assets used in governmental activities are not financial resources and
therefore are not reported in governmental funds.
$ 65,342,778
336,350,709
Accumulated depreciation, including current year depreciation expense of $10,372,075
is not reported in the fund financial statements.
(132,752,095)
Long-term liabilities including bonds payable, premiums, loss on refunding, accreted
interest, and compensated absences are not included in the fund financial statements.
(243,339,939)
Interest is accrued on outstanding debt in the government-wide financial statements,
whereas in the fund financial statements interest expenditures are reported when due.
(428,493)
The District uses internal service funds to charge the costs of certain activities, such
as self-insurance and catering, 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 assets. The net effect of this consolidation is to increase net
assets.
2,396,290
Bond issuance costs are expended in full when paid on the fund financial statements.
Amounts are reported net of amortization on the government-wide financial
statements.
282,415
Revenue from property taxes are 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 financial statements.
4,231,976
$ 32,083,641
Net assets of governmental activities (from A-1)
18
Exhibit C-3
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED AUGUST 31, 2008
Data
Control
Codes
5700
5800
5900
5020
10
General
Fund
REVENUES:
Total local and intermediate sources
State program revenues
Federal program revenues
Total revenues
$
50
Debt Service
Fund
60
Capital
Project Fund
$
Total
Governmental
Funds
Nonmajor
Funds
88,155,851
59,765,435
272,508
148,193,794
$ 21,765,152
21,765,152
29,451
29,451
$
8,458,408
2,622,763
10,941,284
22,022,455
$
118,408,862
62,388,198
11,213,792
192,010,852
86,655,556
2,489,290
2,464,583
1,486,741
8,582,855
5,698,029
368,761
1,674,796
2,704,444
168,190
3,398,621
3,879,502
14,297,412
725,184
3,091,395
134,128
-
656
-
7,614,004
195,622
634,784
355,222
376,186
853,447
102,857
48,510
302,163
7,164,644
1,687,218
301,004
28,239
1,266,640
94,269,560
2,684,912
3,099,367
1,841,963
8,959,041
6,551,476
471,618
1,723,306
3,006,607
7,332,834
5,085,839
3,879,502
14,599,072
753,423
3,091,395
1,400,768
-
2,674,902
17,847,675
1,780
-
-
2,674,902
17,847,675
1,780
17,041
-
673,184
-
690,225
14,842
14,625
-
-
-
14,842
14,625
598,661
-
-
-
598,661
138,464,656
20,524,357
673,840
20,930,540
180,593,393
9,729,138
1,240,795
(644,389)
1,091,915
11,417,459
2,242,057
54,646
-
-
-
42,813
100,047
(42,813)
2,242,057
42,813
154,693
(42,813)
2,296,703
-
-
100,047
2,396,750
12,025,841
1,240,795
1,191,962
13,814,209
EXPENDITURES:
Current:
0011
Instruction
0012
0013
0021
0023
School leadership
0031
Guidance, counseling and evaluation services
0032
Social services
0033
Health services
0034
Student transportation
0035
Food service
0036
0041
0051
0052
0053
0061
Community services
Debt Service:
0071
Principal
0072
Interest
0073
Cost and fees
Capital Outlay:
0081
Facilities acquisition and construction
Contracted Instructional:
0091
Contracted Instructional
0095
Juvenile Justice AEP
Other Intergovernmental:
0099
6030
1100
Total expenditures
Excess (deficiency) of revenues over
(under) expenditures
Other Financing Sources (Uses):
7912
Sale of Real and Personal Property
7915
Transfers in
7949
Other resources - insurance proceeds
8911
Transfers out
Total other financing sources (uses)
1200
Net change in fund balance
0100
3000
Fund balance - September 1 (beginning)
Fund balance - August 31 (ending)
$
44,512,929
56,538,770
$
19
1,605,088
2,845,883
(644,389)
$
776,591
132,202
$
4,633,961
5,825,923
$
51,528,569
65,342,778
Exhibit C-4
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES OF THE GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
Net change in fund balances - total governmental funds (from C-3)
$
13,814,209
The District uses internal service funds to charge the costs of certain activities, such as
self-insurance and catering, to appropriate functions in other funds. The net income of
internal service funds are reported with governmental activities. The net effect of this
consolidation is to increase net assets.
728,879
Current year capital outlays are expenditures in the fund statements, but they should be
shown as increases in capital assets in the government-wide financial statements. The
net effect of removing the current year's capital outlay is to increase net assets.
1,972,763
Depreciation is not recognized as an expenditure 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 assets.
(10,372,075)
Capital assets used in governmental activities are not financial resources and therefore
are not reported in governmental funds. The effect of recording the disposition of capital
assets reduced net assets.
(880,945)
Current year bond principal payments are expenditures in the fund financial statements,
whereas they are reported as reductions of bonds payable in the government-wide
financial statements. The effect of current year principal paid on bonds payable increased
net assets.
2,674,902
Premiums associated with bonds payable are reported as revenue on the fund financial
statements when bonds are issued. Amounts are reported net of amortization on the
government-wide financial statements. The effect of the amortization of premiums
was to increase net assets.
205,876
Compensated absences are recognized when the related obligation matures and is
expected to be liquidated with expendable available financial resources. Therefore
additions to the accrual for compensated absences are not reported in the fund
financial statements. The net effect of the current year increase in compensated
absences was to decrease net assets
(24,405)
Revenue not recognized on the fund financial statements under the modified accrual basis
are recognized on the accrual basis in the government-wide financial statements. The
effect of the increase in deferred revenue from 2007 is to increase net assets.
(55,302)
Interest is accrued on outstanding debt in the government-wide financial statements,
whereas in the fund financial statements an interest expenditure is reported when due.
The effect of recording the decrease in accrued interest of $733 and the decrease in accreted
interest of $1,675,296 was to increase net assets.
1,676,029
Amortization of losses on refundings is not recognized in the fund level financial statements.
(97,258)
Bond issuance costs are expended in full when paid on the fund financial statements,
whereas they are amortized to expense over the life of the related bonds payable
on the government-wide financial statements. The effect of the amortization of bond
issuance costs was to decrease net assets.
(17,995)
Change in Net Assets of Governmental Activities (from B-1)
20
$
9,624,678
Exhibit D-1
PROPRIETARY FUNDS
AUGUST 31, 2008
Internal
Service
Funds
ASSETS
Current Assets:
$
730,734
2,293,804
Total assets
3,024,538
LIABILITIES
Current Liabilities:
Account payable
5,696
Accrued wages
28
622,524
Total liabilities
628,248
NET ASSETS
Unrestricted net assets
2,396,290
Total net assets
$
21
2,396,290
Exhibit D-2
STATEMENT OF REVENUE, EXPENSES, AND CHANGES IN FUND ASSETS
PROPRIETARY FUNDS
Internal
Service
Funds
Operating Revenues
$
Total operating revenues
1,432,676
1,432,676
Operating Expenses
Payroll
Insurance claims
Contracted services
Supplies and materials
Other operating expenses
Total operating expenses
77,284
450,064
86,782
45,530
70,488
730,148
Operating income
702,528
Nonoperating Revenues
Investment earnings
26,351
728,879
Total net assets - September 1
(beginning )
1,667,411
Total net assets - August 31
(ending)
$
22
2,396,290
Exhibit D-3
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Internal
Service
Funds
Cash flows from operating activities :
Cash received from user charges
Cash payments to other funds, net
Cash payments to employees for services
Cash payments for contracted services
Cash payments for insurance claims
Cash payments for suppliers
Cash payments for other operating expenses
$
Net cash used by operating activities
1,432,676
(672,066)
(77,286)
(85,445)
(482,606)
(45,005)
(70,268)
—
Cash flows from investing activities
Interest received
26,351
Net cash provided by investing activities
26,351
Net decrease in cash and cash equivalents
26,351
Cash and cash equivalents at beginning of the year
704,383
Cash and cash equivalents at end of the year
$
730,734
$
702,528
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:
Increase in due from other funds
Decrease in prepaid expenses
Increase in accounts payable
Decrease in accrued wages
Decrease in other accrued expenses
(672,066)
1,020
1,062
(2)
(32,542)
Net cash provided by operating activities
$
23
—
Exhibit E-1
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
AUGUST 31, 2008
Agency
Funds
Assets
$
649,863
236,001
Total assets
$
885,864
$
9,786
Liabilities
Accounts payable
Due to student groups
218,060
Due to employees
658,018
Total liabilities
$
24
885,864
NOTES TO THE BASIC FINANCIAL STATEMENTS
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Hurst-Euless-Bedford Independent School District (the "District") is a public educational agency operating under the
applicable laws and regulations of the State of Texas. The District 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 (GASB) and other authoritative sources identified in Statement on Auditing Standards No. 69 of the American
Institute of Certified Public Accountants; and it complies with the requirements of the appropriate version of 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.
A. REPORTING ENTITY
The Board is elected by the public and it has the authority to make decisions, appoint administrators and managers, and
significantly influence operations. It also has the primary accountability for fiscal matters. Therefore, the District is a
financial reporting entity as defined by GASB in its Statement No. 14, "The Financial Reporting Entity" as amended by
GASB 39 “Determining Whether Certain Organizations Are Component Units.” There are no component units
included within the reporting entity. The District is a governmental entity exempt from federal income taxation and
reporting under the Internal Revenue Code Section 115.
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The statement of net assets and the statement of activities are government-wide financial statements. They report
information on all of the Hurst-Euless-Bedford Independent School District's nonfiduciary activities with most of the
interfund activities removed. Governmental activities include programs supported primarily by taxes, state foundation
funds, grants, and other intergovernmental revenues.
The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by
program revenues and how other people or entities that participate in programs the District operates have shared in the
payment of the direct costs. The program revenues include charges for services and operating grants and contributions.
The charges for services revenues include payments made by parties that purchase, use, or directly benefit from goods
or services provided by a given function or segment of the District. Examples include tuition paid by students not
residing in the district, school lunch charges, charges for athletic events, etc. The grants and contributions revenues
include amounts paid by organizations outside the District to help meet the operational or capital requirements of a
given function. Examples include grants under the Elementary and Secondary Education Act. If revenue is not labeled
as program revenue, it is general revenue used to support all of the District's functions. Taxes are always general
revenues.
Interfund activities between governmental funds and between governmental funds and proprietary funds appear as due
to/due from on the Governmental Fund balance sheet and Proprietary Fund statement of net assets. All interfund
transactions between governmental funds and between governmental funds and internal service funds are eliminated on
the government-wide statements, with the exception of interfund services provided and used which are not eliminated in
the process of consolidation. Interfund activities between governmental funds and fiduciary funds remain as due to/due
from other governments on the government-wide statement of activities. The fund financial statements provide reports
on the financial condition and results of operations for three fund categories-governmental, proprietary, and fiduciary.
Since the resources in the fiduciary funds cannot be used for District operations, they are not included in the
government-wide statements. The District considers some governmental funds major and reports their financial
condition and results of operations in a separate column.
25
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS - continued
Proprietary funds are used by the District as Internal Service Funds. Internal Service Funds are an accounting device
used to accumulate and allocate costs internally across the District’s various functions. These 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 not meeting this definition are reported as nonoperating revenues and expenses. Because
proprietary funds predominately benefits governmental rather than business-type functions, they have been included
within governmental activities in the government-wide financial statements.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
The government-wide financial statements use the economic resources measurement focus and the accrual basis of
accounting, as do the proprietary fund financial statements. 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.
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
mature and are expected to be liquidated with expendable available financial resources. The District considers all
revenues available if they are collectible within sixty 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 when all eligibility requirements have been met, (including time requirements)
to the extent of expenditures made under the provisions of the grant. Accordingly, when such funds are received in
advance, they are recorded as deferred revenues until earned. If balances have not been expended by the end of the
project period, grantors sometimes require the District to refund all or part of the unused amount.
The Proprietary Fund types are accounted for on 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. With this measurement focus, all assets and all liabilities associated with the operation of these funds are
included on the fund statement of net assets. The fund equity is segregated into invested in capital assets net of related
debt, restricted net assets, and unrestricted net assets.
26
D. FUND ACCOUNTING
The District reports the following major governmental funds:

The General Fund – The General Fund is the District's primary operating fund. It accounts for all financial
resources except those required to be accounted for in another fund.

Debt Service Fund – The District accounts for resources accumulated and payments made for principal and
interest on long-term general obligation debt of governmental funds in a debt service fund.

Capital Project Fund – The proceeds from long-term debt financing and revenues and expenditures related to
authorized construction and other capital asset acquisitions are accounted for in a capital projects fund.
Additionally, the District reports the following fund type(s):
Governmental Funds:

Special Revenue Funds – The District accounts for resources restricted to, or designated for, specific
purposes by the District or a grantor in a special revenue fund. Most federal and some state financial
assistance is accounted for in a Special Revenue Fund and sometimes unused balances must be returned to the
grantor at the close of specified project periods.
Proprietary Funds:

Internal Service Funds – Revenues and expenses related to services provided to organizations inside the
District on a cost reimbursement basis are accounted for in an internal service fund. The District's Internal
Service Funds are Workers’ Compensation Insurance, Catering, Tech Services, and Print Shop.
Fiduciary Funds:

Agency Funds – The District accounts for resources held for others in a custodial capacity in agency funds.
The District's Agency Funds are the Student Activity funds and Flexible Spending Fund.
E. OTHER ACCOUNTING POLICIES
1.
For purposes of the statement of cash flows for proprietary and similar fund-types, the District considers
highly liquid investments to be cash equivalents if they have a maturity date of three months or less when
purchased. Investments are carried at amortized cost if they have original maturity dates less than one
year.
2.
The District reports inventories of supplies at weighted average cost including consumable instructional,
office, and transportation items. Supplies are recorded as expenditures when they are consumed.
Inventories of food commodities are recorded at market values supplied by the Texas Department of
Human Services. Although commodities are received at no cost, their fair market value is supplied by the
Texas Department of Human Services and recorded as inventory and revenue when received.
4.
Capital assets, which include, land, buildings, furniture, and equipment, are reported in the applicable
governmental column in the government-wide financial statements. The District defines capital assets as
assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two
years. 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.
27
E. OTHER ACCOUNTING POLICIES - continued
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as
projects are constructed.
Capital assets of the District are depreciated using the straight-line method over the following estimated
useful lives:
Assets
Years
30 - 40
5 - 10
5.
The Workers’ Compensation insurance program of the District is accounted for in the Internal Service
Funds.
6.
In the fund financial statements, governmental funds report reservations of fund balance for amounts that
are not available for appropriation or are legally restricted by outside parties for use for a specific purpose.
Designations of fund balance represent tentative management plans that are subject to change. The
District designated the General Fund unreserved fund balance as follows:
Facilities Repair & Maintenance
$15,000,000
Campus / Department Carryover
2,000,000
Equipment Replacement
1,500,000
Land Acquisition / Modification
5,703,320
Contingency Reserve
5,000,000
Total Proposed Designation of
General Fund Fund Balance
$29,203,320
Descriptions of the District's designations are as follows:

Facilities repair and maintenance is designated for unanticipated facilities repair and maintenance
needs.

Campus / department carryover is designated for the reallocation of unspent funds back to each
campus or department for the next fiscal year.

Equipment replacement is designated for unanticipated equipment replacement and upgrades.

Land acquisition / modification is designated for the future land acquisition and/ or modification.

Contingency reserve is designated for unanticipated expenditures.
28
E. OTHER ACCOUNTING POLICIES – continued
7.
When the District incurs an expense for which it may use either restricted or unrestricted assets, it uses the
restricted assets first unless unrestricted assets will have to be returned because they were not used.
8.
The Data Control Codes refer to the account code structure prescribed by Texas Education Agency in the
Resource Guide. TEA requires school districts to display these codes in the financial statements filed with
the TEA in order to insure accuracy in building a statewide database for policy development and funding
plans.
STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
F. BUDGETARY INFORMATION
The appropriated budget is prepared by fund, function and department. The District’s campus and department heads
may make transfers of appropriation within their campus or department budget. Transfers of appropriations between
functions require approval of the Board of Trustees. The legal level of budgetary control (i.e., the level at which
expenditures may not legally exceed appropriations) is the function level. The Board approved several supplementary
budget appropriations.
G. DEFICIT FUND EQUITY
The District had no deficit fund balances at August 31, 2008.
DETAILED NOTES ON ALL FUNDS
H. DEPOSITS 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.
29
H. DEPOSITS AND INVESTMENTS - continued
At August 31, 2008, the carrying amount of the District's deposits (cash, bank balances, certificates of deposit, and
interest-bearing savings accounts included in temporary investments) was $89,900. The District's cash deposits at
August 31, 2008 and during the year ended August 31, 2008 were entirely covered by FDIC insurance or by pledged
collateral held by the District's agent bank in the District's name.
In addition, the following is disclosed regarding coverage of combined balances on the date of highest deposit:
a. Depository: Chase Bank, Texas, N.A.
b. The market value of securities pledged as of the date of the highest combined balance on deposit was
$19,263,738.
c. The highest combined balances of cash, savings, and time deposit accounts amounted to $17,984,624 and
occurred on April 23, 2008.
d. Total amount of FDIC coverage at the time of the highest combined balance was $200,000.
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 dollarweighted 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 authorize the District to invest in (1)
obligations of the U.S. Treasury, certain U.S. agencies, and the State of Texas; (2) certificates of deposit; (3) certain
municipal securities; (4) money market savings accounts; (5) repurchase agreements; (6) bankers acceptances; (7)
mutual funds; (8) investment pools; (9) guaranteed investment contracts; (10) and common trust funds. 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.
The District's investments at August 31, 2008 are as follows:
Carrying
Amount
Temporary Investment Pools
MBIA
$ 43,912,295
LOGIC
213,871
TexasDAILY
173,518
TexStar
1,118,833
TexasTerm
6,000,000
Government Agency
Securities
Fair
Value
$
10,629,990
Total Investments $ 62,048,507
$
Less than 1
43,912,295
213,871
173,518
1,118,833
6,000,000
$ 43,912,295
213,871
173,518
1,118,833
6,000,000
10,629,990
5,816,758
62,048,507
$ 57,235,275
30
Investment Maturies (in Years)
1-2
2-3
$
-
$
-
-
$
-
-
$
More than 3
$
-
2,035,992
2,777,240
2,035,992
2,777,240
H. DEPOSITS AND INVESTMENTS – continued
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment or a
deposit. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in
market interest rates. As a means of limiting its exposure to fair value losses arising from rising interest rates, the
majority of the District’s investment maturities are less than one year.
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.
All investment pools policies require a rating of AA or better from a nationally recognized rating agency. Government
agency securities are not considered to have credit risk in that the U.S government explicitly guarantees them.
Concentration of Credit Risk
The investment policy of the District does not limit the amount that can be invested in any one issuer. As of August 31,
2008, the District’s investments were in external investment pools or government agency securities which do not
expose the District to concentration of credit risk.
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 requires that a financial institution secure
deposits made by state or local government entities by pledging securities in an undivided collateral pool held by a
depository regulated under state law (unless so waived by the government unit). The market value of the pledged
securities in the collateral pool must equal at least the bank balances less FDIC insurance at all times.
As of August 31, 2008 the District deposits with the financial institution in excess of federal depository insurance limits
were fully collateralized.
Each investment pool the District participates in operates in a manner consistent with the SEC’s Rule 2a-7 of the
Investment Company Act of 1940; to the extent such rule is applicable to its operations. Accordingly, the investment
pools use the amortized cost method permitted by SEC Rule 2a-7 to report net assets and share prices since that amount
approximates fair value. A Board of Directors comprised of local government officers, including participants of the
investments pools, performs regulatory oversight in the external investment pools.
I. PROPERTY TAXES
Property taxes are levied by October 1 on the assessed value listed as of the prior January 1 for all real and business
personal property located in the District in conformity with Subtitle E, Texas Property Tax Code. The assessed value of
the roll upon which the levy for the 2008 fiscal year was based, was $8,247,133,260. The tax rates assessed for the year
ended August 31, 2008 to finance general fund operations and the payment of principal and interest on general
obligation long-term debt were $1.0400 and $0.2637 per $100 valuation, respectively, for a total of $1.3037 per $100
valuation.
31
I. PROPERTY TAXES – continued
Taxes are due on receipt of the tax bill and are delinquent if not paid before February 1 of the year following the year in
which imposed. On January 31 of each year, a tax lien attaches to property to secure the payment of all taxes, penalties,
and interest ultimately imposed. Property tax revenues are considered available when they become due or past due and
receivable within the current period.
J. DELINQUENT TAXES RECEIVABLE
Delinquent taxes are prorated between maintenance and debt service based on rates adopted for the year of the levy.
Allowances for uncollectible tax receivables within the General and Debt Service Funds are based on historical
experience in collecting property taxes. Uncollectible personal property taxes are periodically reviewed and written off,
but the District is prohibited from writing off real property taxes without specific statutory authority from the Texas
Legislature.
K. INTERFUND RECEIVABLES AND PAYABLES AND TRANSFERS
Interfund balances at August 31, 2008 consisted of the following individual fund balances:
Receivable
Fund
General Fund
General Fund
Nonmajor Funds
Internal Service Funds
Agency Funds
Payable
Fund
Capital Projects
Nonmajor Funds
General Fund
General Fund
General Fund
Amount
$
667,427
272,454
3,819,683
2,293,804
236,001
$
7,289,369
Purpose
Funds to cover cash shortages
As each fund is a separate self-balancing set of accounts, transactions between funds should be recorded properly in
each fund affected. Interfund receivables and payables generally arise from interfund loans between different funds. All
balances will be repaid within one year.
Interfund transfers at August 31, 2008 consisted of the following transfers:
Receivable
Fund
Nonmajor Funds
Payable
Fund
Nonmajor Funds
Amount
$
42,813
$
42,813
32
Purpose
Transfer of excess cash from Summer Feeding
Program to Child Nutrition Fund
L. CAPITAL ASSET ACTIVITY
Capital asset activity for the District for the year ended August 31, 2008 was as follows:
Beginning
Balance
Additions
Retirements/
Transfers
-
$ (419,841)
(419,841)
Ending
Balance
Governmental Activities
Capital assets, not depreciated:
Land
Total capital assets not depreciated
$
7,228,823
7,228,823
$
$
6,808,982
6,808,982
Capital assets, being depreciated:
Total capital assets being depreciated
312,196,338
16,040,260
328,236,598
687,072
1,285,691
1,972,763
(656,675)
(10,959)
(667,634)
312,226,735
17,314,992
329,541,727
Less accumulated depreciation for:
Total accumulated depreciation
(113,893,629)
(8,692,921)
(122,586,550)
(9,066,708)
(1,305,367)
(10,372,075)
195,571
10,959
206,530
(122,764,766)
(9,987,329)
(132,752,095)
Total capital assets, being depreciated, net
205,650,048
(8,399,312)
(461,104)
196,789,632
Governmental activities capital assets, net
$ 212,878,871
$ (8,399,312)
$ (880,945)
$ 203,598,614
33
L. CAPITAL ASSET ACTIVITY – continued
Depreciation expense was charged to governmental functions as follows:
Instruction
School leadership
Social services
Health services
Student (pupil) transportation
Food services
Co-curricular/extracurricular activities
Security and monitoring service
Community service
Total Depreciation Expense
$
6,349,010
341,707
24,851
80,132
690,696
376,730
5,924
148,642
239,390
99,403
426,765
50,643
551,913
64,951
914,306
7,012
$ 10,372,075
M. CHANGES IN LONG-TERM LIABILITIES
Long-term liabilities activity for the year ended August 31, 2008 was as follows:
Beginning
Balance
Governmental Activities:
Bonds payable:
General obligation bonds
Premium on GO bonds
Loss on refunding
Total bonds payable
Other liabilities:
Accreted interest
Compensated absences
Total governmental activities
long-term liabilities
Additions
Reductions
Ending
Balance
Due Within
One Year
$ 217,605,395 $
3,472,276
(1,653,391)
—
—
—
(2,674,902) $ 214,930,493 $
(205,876)
3,266,400
97,258
(1,556,133)
2,778,461
205,876
(97,258)
219,424,280
—
(2,783,520)
216,640,760
2,887,079
27,374,179
975,891
3,385,800
172,419
(5,061,096)
(148,014)
25,698,883
1,000,296
4,717,400
275,000
3,558,219 $
(7,992,630) $ 243,339,939 $
$ 247,774,350 $
34
7,879,479
N. BONDS PAYABLE
Current requirements for principal and interest expenditures are accounted for in the Debt Service Fund.
A summary of general long-term debt for the year ended August 31, 2008 is as follows:
Interest
Rate
Payable
Description
Amounts
Original
Issue
4.1% to 7.1% $
School Building Series 1998
4.2% to 5.0%
171,406,172
9,597,973
110,488,850
109,807,000
Refunding 2004
2.3% to 5.0%
15,434,973
574,205
11,525,000
11,515,000
Refunding 2006
4.0% to 5.0%
84,185,000
4,048,550
83,935,000
83,530,000
337,567,690
$
$
3,626,947
17,847,675
$
$
11,656,545
Outstanding
8/31/08
Refunding 1994
$
66,541,545
Payable
Amounts
Outstanding
9/1/07
Interest
Current
Year
217,605,395
$
$
10,078,493
214,930,493
Debt service requirements are as follows:
Year Ended
August 31,
Principal
2009
2010
2011
2012
2013
2014-2018
2019-2023
2024-2028
Total
2,778,461
2,705,305
5,944,847
6,033,454
6,140,492
33,427,934
69,180,000
88,720,000
$
214,930,493 $
Interest
17,742,641
17,816,297
13,570,306
13,481,529
13,376,498
64,136,263
31,110,555
12,953,713
184,187,802 $
Total
20,521,102
20,521,602
19,515,153
19,514,983
19,516,990
97,564,197
100,290,555
101,673,713
399,118,295
The District defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to
provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and liabilities for
the defeased bonds are not included in the District’s financial statements. On August 15, 2008 the escrow provided for
final payment on the old bonds, and as of August 31, 2008 the District does not have any defeased bonds outstanding.
35
O. ACCUMULATED UNPAID VACATION AND SICK LEAVE BENEFITS
Employees earn ten days sick leave each year. These days accumulate without limit. However, employees are only
reimbursed for any unused accumulated sick pay upon retirement up to a maximum of $5,000. Such liability, which
includes salary related payments and is paid from the District’s General Fund, is estimated to be $1,000,296 at August
31, 2008.
Teachers do not receive paid vacations but are paid only for the number of days they are required to work each year.
All regular 12-month employees are entitled to an annual vacation of two weeks with full pay, which increases to three
weeks during the 15th year. The District has no liability for unused vacation pay for other personnel since all vacation
leave is used or lost if not taken each year. Vacation pay is charged to operations when taken by the employees of the
District.
P. DEFINED BENEFIT PENSION PLAN
Plan Description. Hurst-Euless-Bedford 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 transfer
under Texas Government Code, Title 8, Chapters 803 and 805, respectively. 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
8701, by calling the TRS Communications Department at 1-800-223-8778, or by downloading the report from the TRS
internet web site, www.trs.state.tx.us, under the TRS Publications heading.
Funding Policy. State law provides for fiscal years 2006 and 2007 a state contribution rate of 6.0%, and 6.58% for
fiscal year 2008. State law further provides a member contribution rate of 6.4% for fiscal years 2006, 2007, and 2008.
In certain instances, the reporting district (I.S.D., college, university, or state agency) is required to make all or a
portion of the state's contribution. Contribution requirements are not actuarially determined but are legally established
each biennium pursuant to the following state funding policy: (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 10.0% of the aggregate annual compensation of all members
of the system during that fiscal year; (2) A state statute prohibits benefit improvements or contribution reductions if, as
a result of a the 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 contributions to TRS made on behalf of the District's employees for the years ended August 31,
2008, 2007, and 2006 were $6,852,335, $5,755,838, and $5,266,904, respectively. The District paid additional state
contributions for the years ended August 31, 2008, 2007 and 2006 in the amount of $1,300,765, $1,048,107, and
$921,162, respectively, on the portion of the employees’ salaries that exceeded the statutory minimum.
Q. RETIREE HEALTH PLAN
Plan Description. Hurst-Euless-Bedford Independent School District contributes to the Texas Public School
Retired Employees Group Insurance Program (TRS-Care), a cost-sharing multiple-employer defined benefit
postemployment health care plan administered by the Teacher Retirement System of Texas. TRS-Care Retired Plan
provides health care coverage for certain persons (and their dependents) who retired under the Teacher Retirement
System of Texas. The statutory authority for the program is Texas Insurance Code, Chapter 1575. Section 1575.052
grants 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. This report may be obtained by visiting the TRS Web site at
www.trs.state.tx.us, by writing to the Communications Department of the Teacher Retirement System of Texas at 1000
Red River Street, Austin, Texas 78701, or by calling 1-800-223-8778.
36
Funding Policy. Contribution requirements are not actuarially determined but are legally established each biennium by
the Texas Legislature. Texas Insurance Code, Sections 1575.202, 203, and 204 establish state, active employee, and
public school contributions, respectively. The State of Texas and active public school employee contribution rates were
1.0% and 0.65% of public school payroll, respectively, with school districts contributing a percentage of payroll set at
0.55% for fiscal years 2008, 2007, and 2006. 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, 2008, 2007, and 2006, the State’s contributions to TRS-Care were $1,096,579, $1,050,676, and
$957,037, respectively, the active member contributions were $712,777, $682,939, and $622,074, respectively, and the
District’s contributions were $603,119, $577,872, and $526,371, respectively, which equaled the required contributions
each year.
R. HEALTH AND WORKERS’ COMPENSATION INSURANCE
The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and
omissions; injuries to employees; and natural disasters. The District continues to carry commercial insurance for risks
of loss including property, fleet, general liability, boiler and crime covering all facilities, properties, equipment and
personnel. Settled claims have not exceeded the commercial coverage in any of the last three years.
In previous years the District sponsored a self-insurance plan to provide health care benefits to staff members and their
dependents. Transactions related to the plan were accounted for in the Health Insurance Fund (the "Fund"), an internal
service fund of the District. In 2004, the District began using purchased insurance for health care benefits to staff
members and their families.
The District sponsors a self-insurance plan to pay workers’ compensation benefits. The District fully funded actual
claims and potential claims incurred during the year. Claims exceeding a limit for any one accident or occurrence are
covered through an insurance carried through Safety National Casualty Corporation. The self-insured retention is
$225,000 per claim with an employer’s liability maximum limit of indemnity of $1,000,000 per occurrence.
Estimates of claims payable and of claims incurred but not reported at August 31, 2008 are reflected as accrued
expenses in the worker’s compensation insurance fund. Because actual claims liabilities depend on such complex
factors as inflation, changes in legal doctrines, and damage awards, the process used in computing claims liability does
not necessarily result in an exact amount. Claims liabilities are reevaluated periodically to take into consideration
recently settled claims, the frequency of claims, and other economic and social factors. The plan is funded to discharge
liabilities of the fund as they become due.
Changes in the balances of claims liabilities for the workers’ compensation insurance fund during the past year are as
follows:
Year Ended
August 31, 2007
Year Ended
August 31, 2008
Unpaid claims, beginning of the year
Incurred claims (including IBNR)
Claim Payments
$ 493,754
929,767
(768,455)
$ 655,066
525,690
(558,232)
Unpaid claims, end of fiscal year
$ 655,066
$ 622,524
37
S. DEFERRED REVENUE
Deferred revenue at August 31, 2008 consisted of the following:
Debt
Service
Fund
General
Fund
Net tax revenue
Other
Total deferred revenue
Non-Major
Funds
Total
$
3,594,183 $
1,824,781
637,793 $
-
- $
102,106
4,231,976
1,926,887
$
5,418,964 $
637,793 $
102,106 $
6,158,863
T. DUE FROM OTHER GOVERNMENTS
The District participates in a variety of federal and 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 federal and state governments as of August 31, 2008 are summarized
below. All federal grants shown below are passed through the TEA and are reported on the combined financial
statements as due from state agencies.
State
Entitlements
Federal
Grants
Other Local
Governments
Total
$
13,901,636 $
77,176
-
- $
338,919
-
16,084 $
3,696
13,917,720
416,095
3,696
$
13,978,812 $
338,919 $
19,780 $
14,337,511
U. LITIGATION
There are claims and pending actions incident to normal operations of the District. In the opinion of the District
administration, the District's potential liability in these matters will not have a material impact on the financial
statements.
V. COMMITMENTS AND CONTINGENCIES
Federal Programs - The District participates in numerous state and federal grant programs, which are governed by
various rules and regulations of the grantor agencies. Costs charged to the respective grant programs are subject to
audit and adjustment to the grantor agencies; therefore, to the extent that the District has not complied with the rules
and regulations governing the grants, refunds of any money received may be required and the collectibility of any
related receivable at August 31, 2008 may be impaired. In the opinion of the District administration, there are no
significant contingent liabilities relating to compliance with the rules and regulations governing the respective grants;
therefore, no provisions has been recorded in the accompanying combined financial statements for such contingencies.
38
REQUIRED SUPPLEMENTARY INFORMATION
39
Exhibit G-1
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
Data
Control
Budgeted Amounts
Codes
Original
5700
5800
5900
REVENUES:
Total Local and Intermediate Sources
State Program Revenues
Federal Program Revenues
5020
Total Revenues
$
Actual Amounts
Variance With
Final Budget
Positive or
(GAAP Basis)
(Negative)
Final
86,258,683
52,705,829
260,000
$
87,028,005
53,389,225
260,000
$
88,155,851
59,765,435
272,508
$
1,127,846
6,376,210
12,508
139,224,512
140,677,230
148,193,794
7,516,564
85,171,267
3,158,948
2,463,074
1,559,354
8,496,638
5,913,087
387,129
1,748,126
2,362,228
135,000
3,587,545
5,278,525
14,010,829
720,448
2,319,057
200,224
1,517,133
150,000
45,900
-
87,622,551
2,530,815
2,902,632
1,597,597
8,633,406
5,796,402
401,438
1,760,171
2,766,683
188,488
3,719,791
4,501,422
15,244,397
749,758
3,511,287
166,326
27,747
150,000
45,900
600,000
86,655,556
2,489,290
2,464,583
1,486,741
8,582,855
5,698,029
368,761
1,674,796
2,704,444
168,190
3,398,621
3,879,502
14,297,412
725,184
3,091,395
134,128
17,041
14,842
14,625
598,661
966,995
41,525
438,049
110,856
50,551
98,373
32,677
85,375
62,239
20,298
321,170
621,920
946,985
24,574
419,892
32,198
10,706
135,158
31,275
1,339
139,224,512
142,916,811
138,464,656
4,452,155
EXPENDITURES:
0011
0012
0013
0021
0023
0031
0032
0033
0034
0035
0036
0041
0051
0052
0053
0061
0081
0091
0095
0099
Current:
Instruction
Instructional Resources & Media Services
Curriculum & Instructional Staff Development
Instructional Leadership
School Leadership
Guidance, Counseling & Evaluation Services
Social Services
Health Services
Student (Pupil) Transportation
Food services
Cocurricular/Extracurricular Activities
General Administration
Plant Maintenance and Operations
Security and Monitoring Services
Data Processing Services
Community Services
Facilities Acquisition and Construction
Juvenile Justice AEP
Intergovernmental Charges
6030
Total Expenditures
1100
expenditures
7912
7949
-
(2,239,581)
9,729,138
11,968,719
-
2,239,581
-
2,242,057
54,646
2,476
54,646
-
2,239,581
2,296,703
57,122
-
-
12,025,841
12,025,841
44,512,929
44,512,929
44,512,929
-
56,538,770
$ 12,025,841
Other Financing Sources:
Sale of Real and Personal Property
Other resources
Total other financing (uses)
1200
Net Change in Fund Balances
0100
Fund Balances - September 1 (Beginning)
3000
Fund Balance - August 31 (Ending)
$
44,512,929
40
$
44,512,929
$
NOTES TO THE REQUIRED SUPPLEMENTAL INFORMATION
BUDGETARY DATA
The Board adopts an "appropriated budget" for the General Fund on a basis consistent with generally accepted
accounting principles. The District is required to present the adopted and final amended budgeted revenues and
expenditures. The District compares the final amended budget to actual revenues and expenditures. The General
Fund budget report appears in exhibit G-1.
The following procedures are completed in establishing the budgetary data reflected in the financial statements:
1.
Prior to August 20, 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.
2.
A meeting of the Board is then called for the purpose of adopting the proposed budget. At least ten
days public notice of the meeting must be given.
3.
Prior to September 1, the budget is legally enacted through passage of a resolution by the Board. Once
a budget is approved, it can only be amended at the fund and function level by approval of a majority
of the members of the Board. Fund and function level amendments are presented to the Board at its
regular meetings and each amendment must have Board approval. As required by law, such amendments
are made before the fact, are reflected in the official minutes of the Board, and are not made after
fiscal year end. Because the District has a policy of careful budgetary control, several amendments
were necessary during the year.
4.
Each budget is controlled by the budget coordinator at the revenue and expenditure function/object level.
Budgeted amounts are as amended by the Board. All budget appropriations lapse at year end.
41
42
SUPPLEMENTARY INFORMATION - COMBINING STATEMENTS AND SCHEDULES
43
NON-MAJOR SPECIAL REVENUE FUNDS
Special revenue funds are funds used to account for the proceeds of specific revenue sources that are
legally restricted to expenditures for specified purposes. These funds are as follows:
Title IV, Part A – Safe and Drug-Free Schools and Communities Program – this fund accounts for
funds granted to support comprehensive (EE–12) drug use prevention and violence prevention programs.
ESEA, Title I, Part A – Improving Basic Programs – this fund accounts for funds granted to enable
schools to provide opportunities for children served to acquire the knowledge and skills contained in the
State content standards and to meet the State performance standards.
IDEA – Part B, Formula – this fund accounts for funds granted to operate educational programs for
children with disabilities.
IDEA – Part B, Preschool – this fund accounts for funds granted to supplement and increase services
beyond the level of State and local funds expended for preschool students ages 3–5 with disabilities.
National School Lunch and Breakfast Program – this fund accounts for funds granted for programs
using federal reimbursement revenues originating from the United States Department of Agriculture
(USDA).
Summer Feeding Program – this fund accounts for funds awarded from the Department of Human
Services to provide meals to the community based on the average number of daily participants.
Vocational Education - Basic Grant – this fund accounts for funds granted to develop new and/or
improve career and technology education programs for paid and unpaid employment.
ESEA, Title II, Part A: Teacher and Principal Training and Recruiting – this fund accounts for funds
granted to provide financial assistance to local education agencies to (1) increase student academic
achievement through improving teacher and principal quality and increasing the number of highly
qualified teachers in classrooms and highly qualified principals and assistant principals in schools, and (2)
hold local education agencies and schools accountable for improving student academic achievement.
Title II, Part D, Subpart 1, Enhancing Education Through Technology – this fund accounts for funds
granted to improve student academic achievement through the use of technology in elementary and
secondary schools.
Title III, Part A, English Language Acquisition and Language Enhancement – this fund accounts for
funds granted to provide supplemental resources to LEAs to help ensure that children who are limited
English proficient attain English proficiency (LEP) at high levels in core academic subjects and can meet
state mandated achievement performance standards.
Title V, Part A—Innovative Programs – this fund accounts for funds granted to support local education
reform efforts that are consistent with and support statewide education reform efforts.
Medicaid Administrative Claiming (MAC) – this fund accounts for reimbursements to the district for
certain outreach and case management activities.
Federally Funded Special Revenue Program – this fund accounts for funds not specifically defined
elsewhere.
44
State Supplemental Visually Impaired – this fund accounts for State Supplemental Visually Impaired
funds received from the Education Service Center.
Pregnancy, Education, and Parenting Program – this fund accounts for funds granted to provide
pregnant and parenting students the services needed to keep them in school until completion.
Advanced Placement Incentives – this fund accounts for funds awarded to school districts under the
Texas Advanced Placement Award Incentive Program, Chapter 28, Subchapter C, Texas Education Code.
Optional Extended Year Program – this fund accounts for funds granted to support academic
enrichment for students in kindergarten through Grade 11 who are unlikely to be promoted to the next
grade or for students in Grade 12 who are unlikely to graduate.
Accelerated Reading Instruction – Student Success Initiative – this fund accounts for funds granted to
support teacher training and allocations to schools to implement scientific, research-based programs for
students who have been identified as unlikely to achieve the third grade TAAS reading standard by the
end of the third grade.
Technology Allotment – this fund accounts for funds granted to school districts to purchase
technological software or equipment that contributes to student learning, or to pay for training for
educational personnel involved in the use of these materials.
Texas High School Allotment – this fund accounts for funds granted for special programs for students in
grade nine who are at risk of not earning sufficient credit or who have not earned sufficient credit to
advance to grade 10 and who fail to meet minimum skills levels.
State Funded Special Revenue Program – this fund accounts for funds not specifically defined
elsewhere.
Campus Activity Fund – this fund accounts for transactions related to a principal’s activity fund if
monies generated are not subject to recall by the local education agency’s board of trustees into the
General Fund.
Education Foundation – this fund accounts for grants to provide enrichment and instructional
opportunities through additional materials, software, field trips and professional development.
Child Care Management Services – this fund accounts for a child care program for parenting students to
keep them in school until completion.
Meadows Foundation Grant – this fund accounts for grants used to provide resources to students for
character development activities.
Schools of Choice – this fund accounts for the tuition and expenditures for the District's Pre-Kindergarten
Core Knowledge program.
Campus Based Grants – this fund accounts for donations received from various sources.
45
COMBINING BALANCE SHEET
NON MAJOR GOVERNMENTAL FUNDS
AUGUST 31, 2008
ESEA
Title IV
Drug Free
Schools
Assets
Cash & temporary investments
$
ESEA
Title I
Part A
IDEA-B
Formula
—
—
139,426
—
105,408
2,788
—
Accrued Interest
—
—
—
—
—
—
—
6,081
11,358
14,959
741
1,395,745
—
—
—
—
—
—
74,112
—
—
$
6,081 $
11,358 $
154,385 $
741 $
2,581,037 $
2,788 $
—
$
— $
— $
534 $
— $
192,638 $
— $
—
Accrued wages payable
—
—
13,275
—
108,031
—
—
Due to other funds
—
—
137,142
—
—
2,788
—
6,081
11,358
3,434
741
—
—
—
Deferred revenue
Total liabilities
Fund equity
Unreserved
Reserved
Investment in inventory
Prepaids
Food service
—
6,081
—
11,358
—
154,385
—
741
59,305
359,974
—
2,788
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
74,112
—
2,146,951
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2,221,063
—
—
6,081 $
11,358 $
2,788 $
—
Total assets
1,005,772 $
— $
Vocational
Education
Basic Grant
— $
— $
Summer
Feeding
Program
— $
— $
IDEA-B
Preschool
National
School
Lunch &
Breakfast
Program
—
Liabilities and
fund equity
Accounts payable
Total equity
Total liabilities and
fund equity
$
154,385 $
46
741 $
2,581,037 $
Exhibit H-1
Title II
Teacher and
Principal
Training and
Recruiting
$
Title II
Enhancing
Education
Through
Technology
Title III
English
Language
Acquisition
Title V
Innovative
Programs
Federally Funded
Medicaid
Special
Administrative
Claiming
Revenue
Program
Program
— $
— $
State
Supplemental
Visually
Impaired
— $
— $
— $
— $
—
—
—
—
—
14,805
76,491
—
—
—
—
—
—
—
—
5,467
—
1,575
—
—
9,371
—
—
—
—
—
—
—
—
$
5,467 $
— $
1,575 $
— $
14,805 $
85,862 $
—
$
— $
— $
— $
— $
— $
— $
—
—
—
—
—
—
—
—
—
—
—
—
14,805
76,491
—
5,467
—
1,575
—
—
—
—
—
5,467
—
—
—
1,575
—
—
—
14,805
—
76,491
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
9,371
—
—
—
—
—
—
—
—
—
—
—
—
—
—
9,371
—
$
5,467 $
— $
1,575 $
— $
14,805 $
85,862 $
—
(Continued)
47
COMBINING BALANCE SHEET
AUGUST 31, 2008
Pregnancy
Education &
Parenting
Assets
Cash & temporary investments
$
— $
Advanced
Placement
Incentives
Optional
Extended Year
Program
— $
— $
Accelerated
Reading
Instruction
— $
Technology
Allotment
— $
High
School
Allotment
— $
State Funded
Special
Revenue
Funds
—
8,717
—
17,183
43,933
6,928
—
415
Accrued Interest
—
—
—
—
—
—
—
—
99,932
—
—
169,677
972,713
3,046
—
—
—
—
—
—
—
$
8,717 $
99,932 $
17,183 $
43,933 $
176,605 $
972,713 $
3,461
$
— $
45 $
— $
— $
— $
— $
—
Total assets
Liabilities and
fund equity
Accounts payable
Accrued wages payable
1,179
—
13,937
13,904
—
38
—
Due to other funds
7,538
—
3,246
30,029
—
—
415
—
—
—
—
—
—
—
Deferred revenue
Total liabilities
Fund equity
Unreserved
Reserved
Investment in inventory
Prepaids
Food service
—
8,717
—
45
—
17,183
—
43,933
—
—
—
38
—
415
—
—
—
—
—
99,887
—
—
—
—
—
—
—
—
—
—
—
—
—
—
176,605
—
—
—
—
972,675
—
—
—
—
3,046
—
—
—
—
—
99,887
—
—
176,605
972,675
3,046
17,183 $
43,933 $
176,605 $
972,713 $
3,461
Total equity
Total liabilities and
fund equity
$
8,717 $
99,932 $
48
Exhibit H-1
Campus
Activity
Fund
$
1,406,840 $
Education
Foundation
Grant
Child Care
Management
Services
Meadows
Foundation
Grant
Schools of
Choice
CampusBased
Grants
Total
Nonmajor
Governmental
(See C-1)
— $
— $
— $
— $
— $
2,412,612
—
—
—
—
—
—
416,094
3,048
—
—
—
—
—
3,048
962,018
10,655
76,698
206
62,260
17,181
3,819,683
—
—
—
—
—
—
74,112
$
2,371,906 $
10,655 $
76,698 $
206 $
62,260 $
17,181 $
6,725,549
$
64,847 $
104 $
338 $
206 $
137 $
— $
258,849
$
87,197
—
—
—
—
—
237,561
—
—
—
—
—
—
272,454
—
—
—
—
—
—
28,656
—
152,044
—
104
—
338
—
206
42,801
42,938
—
102,106
899,626
2,219,862
—
—
—
—
10,551
—
—
—
—
76,360
—
—
—
—
—
—
—
—
—
19,322
—
—
—
—
17,181
—
—
—
—
3,604,860
—
74,112
—
2,146,951
2,219,862
10,551
76,360
—
19,322
17,181
5,825,923
2,371,906 $
10,655 $
76,698 $
62,260 $
17,181 $
6,725,549
206 $
49
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
Special Revenue Funds
ESEA
Title IV
Drug Free
Schools
Revenues:
Local, intermediate
and out-of-state
State program
revenues
Federal program
revenues
$
Total revenues
Expenditures:
Current:
Instruction
Instructional
resources and media
Staff development
Instructional
leadership
Campus leadership
Guidance and
counseling services
Social work services
Health services
Pupil transportation
Food services
Extracurricular/cocurricular
Maintenance and operations
Security and monitoring
Community services
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other Financing Sources (Uses)
Transfers in
Other Resources
Transfers out
Excess (deficiency) of revenues and
other resources over expenditures
Fund balance
September 1 (beginning)
Fund balance
August 31 (ending)
$
ESEA
Title I
Part A
IDEA-B
Formula
IDEA-B
Preschool
— $
— $
— $
— $
—
—
—
—
46,059
1,854,999
3,618,345
46,059
1,854,999
—
National
School
Lunch &
Breakfast
Program
Vocational
Education
Basic Grant
— $
—
55,641
—
—
98,472
4,025,516
92,031
177,321
3,618,345
98,472
7,830,231
92,031
177,321
1,546,075
2,485,284
98,472
—
—
144,695
—
—
1,715
76,353
—
28,566
—
—
—
—
—
—
—
4,164
300
—
132,696
—
139,714
—
—
—
—
—
—
—
1,622
5,355
21,588
14,000
—
—
—
—
—
10,171
—
—
88,857
5,266
—
—
—
—
—
4,037
642,803
—
18,965
302,163
—
—
226
—
624
—
—
—
—
—
—
—
—
—
—
—
—
—
7,111,312
—
113,613
—
—
—
—
—
—
49,218
—
—
—
—
21,485
—
—
—
—
—
—
—
—
46,059
1,854,999
3,618,345
98,472
7,224,925
49,218
177,321
—
—
—
—
605,306
42,813
—
—
—
—
—
—
—
—
—
—
—
—
—
42,813
100,047
—
—
—
(42,813)
—
—
—
—
—
—
—
748,166
—
—
—
—
—
—
1,472,897
—
—
— $
— $
— $
— $
2,221,063 $
— $
—
50
3,749,074 $
Summer
Feeding
Program
Exhibit H-2
ESEA
Title II
Teacher &
Principal
Training &
Recruiting
$
$
ESEA
Title II
Part D
Technology
Title III
English Language
Acquisition &
Language Enhancement
Medicaid
Administrative
Claiming
Program
Title V
Part A
Innovative
Federal Funded
Special
Revenue
Program
State
Supplemental
Visually
Impaired
— $
— $
— $
— $
—
— $
—
—
—
—
—
—
—
13,311
642,378
16,510
222,977
42,986
23,494
80,196
—
642,378
16,510
222,977
42,986
23,494
80,196
13,311
503,703
810
113,683
35,636
—
61,645
30,139
—
138,675
—
15,700
—
32,982
—
7,350
—
—
—
528
—
—
—
—
—
—
28,686
—
—
—
—
—
9,702
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
20,895
—
—
—
—
—
—
—
26,731
—
—
—
—
—
—
—
—
—
—
—
23,494
—
—
—
—
—
—
—
—
—
—
—
—
8,309
—
—
—
—
—
—
—
—
—
—
—
642,378
16,510
222,977
42,986
23,494
80,184
30,139
—
—
—
—
—
12
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
12
—
—
—
—
—
9,359
— $
— $
— $
— $
— $
9,371 $
(16,828)
—
—
—
(16,828)
16,828
—
(Continued)
51
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
Pregnancy
Education &
Parenting
Revenues:
Local, intermediate
and out-of-state
State program
revenues
Federal program
revenues
$
Total revenues
Expenditures:
Current:
Instruction
Instructional
resources and media
Staff development
Instructional
leadership
Campus leadership
Guidance and
counseling services
Social work services
Health services
Pupil transportation
Food services
Extracurricular/cocurricular
Maintenance and operations
Security and monitoring
Community services
Total expenditures
expenditures
Transfers in
Other Resources
Transfers out
Excess (deficiency) of revenues and other
resources over expenditures
Fund balance
September 1 (beginning)
Fund balance
August 31 (ending)
$
— $
Advanced
Placement
Incentives
State Funded
Optional
Extended-Year
Program
—
— $
Accelerated
Reading
Instruction
— $
Technology
Allotment
— $
Texas
High School
Allotment
— $
State Funded
Special
Revenue
Funds
—
58,211
52,420
49,040
324,496
563,609
1,497,563
8,472
—
—
—
—
—
—
—
58,211
52,420
49,040
324,496
563,609
1,497,563
8,472
—
15,742
49,040
324,234
67,683
1,183,666
8,274
—
—
—
22,987
—
—
—
262
126,982
237,680
—
—
99
—
—
—
—
—
—
—
—
—
—
—
42,502
—
—
—
—
—
—
—
—
—
—
—
58,211
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
128,764
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
58,211
38,729
49,040
324,496
432,345
1,354,932
8,373
—
13,691
—
—
131,264
142,631
99
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
13,691
—
—
131,264
142,631
99
—
86,196
—
—
45,341
830,044
2,947
— $
99,887 $
— $
— $
972,675 $
3,046
52
176,605 $
Exhibit H-2
Campus
Activity
Fund
$
$
Education
Foundation
Grant
4,278,524 $
Child Care
Management
Services
Meadows
Foundation
Grant
29,688 $
54,886 $
—
—
—
—
—
—
—
4,278,524
29,688
689,889
CampusBased
Grants
Schools of
Choice
15,856 $
8,458,408
—
—
2,622,763
—
—
—
10,941,284
54,886
794
329,586
15,856
22,022,455
22,218
127
1,062
226,207
5,720
7,614,004
61,934
69,221
—
316
—
—
—
—
—
—
4,892
—
195,622
634,784
—
370,831
—
—
—
—
—
—
—
—
—
—
355,222
376,186
17,912
—
785
—
4,114
1,687,218
178,856
18,068
1,064,951
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
27,236
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
84,850
—
—
—
—
—
—
—
—
—
853,447
102,857
48,510
302,163
7,164,644
1,687,218
301,004
28,239
1,266,640
4,163,779
22,534
27,363
1,062
311,057
10,612
20,930,540
114,745
7,154
27,523
18,529
5,244
1,091,915
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
114,745
7,154
27,523
(268)
18,529
5,244
1,191,962
2,105,117
3,397
48,837
268
793
11,937
4,633,961
17,181 $
5,825,923
2,219,862 $
10,551 $
76,360 $
794 $
Total
Nonmajor
Governmental
Funds
(See C-3)
(268)
—
—
—
— $
53
329,586 $
19,322 $
42,813
100,047
(42,813)
54
INTERNAL SERVICE FUNDS
Internal Service Funds account for the financing of goods or services provided by one department to other
departments on a cost reimbursement basis. The Internal Service Funds are as follows:
Workers’ Compensation – this fund accounts for costs associated with the workers’ compensation selffunded program.
Tech Trades Fund – this fund group provides instructional opportunities to students in industrial
technology through real life experiences including providing services to customers for fees with overhead
charges above costs of parts or materials. Proceeds remain within the department for future program
operations.
Catering Fund – this fund accounts for catering service costs for schools and various organizations
within the district.
Print Shop – this fund accounts for costs associated with the District’s print shop. The print shop is
available to all of the District’s departments and campuses and provides high volume copying and other
services not available at the campus.
55
Exhibit H-3
COMBINING STATEMENT OF NET ASSETS
AUGUST 31, 2008
Workers'
compensation
Tech
trades
Catering
Total
(See D-1)
Print Shop
Assets
Current Assets:
Total assets
$
730,734
$
—
$
—
$
—
$
730,734
2,126,610
15,566
53,360
98,268
2,293,804
2,857,344
15,566
53,360
98,268
3,024,538
1,623
165
415
3,493
5,696
—
—
28
—
28
622,524
—
—
—
622,524
624,147
165
443
3,493
628,248
2,233,197
15,401
52,917
94,775
2,396,290
Liabilities and net assets
Current Liabilities:
Accounts payable
Accrued wages
Total liabilities
Net Assets
Unrestricted
56
Exhibit H-4
COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN NET ASSETS
Workers'
compensation
Tech
trades
Catering
Print Shop
Total
(See D-2)
$ 1,303,713
$ 14,669
$
7,667
$ 106,627
$ 1,432,676
1,303,713
14,669
7,667
106,627
1,432,676
Operating Expenses
Payroll
Insurance claims
Contracted services
Supplies and materials
Other operating costs
76,799
450,064
48,409
1,619
68,545
—
—
—
11,239
1,943
485
—
—
6,796
—
—
—
38,373
25,876
—
77,284
450,064
86,782
45,530
70,488
Total operating expenses
645,436
13,182
7,281
64,249
730,148
Operating income
658,277
1,487
386
42,378
702,528
26,351
—
—
—
26,351
684,628
1,487
386
42,378
728,879
1,548,569
13,914
52,531
52,397
1,667,411
$ 2,233,197
$ 15,401
$ 52,917
$ 94,775
$ 2,396,290
Operating Revenues
Total operating revenues
Nonoperating Revenues
Investment earnings
Total net assets - September 1
(beginning)
Total net assets - August 31
(ending)
57
Exhibit H-5
COMBINING STATEMENT OF CASH FLOWS
Workers'
compensation
Cash flows from operating activities Cash received from user charges
Cash payments to other funds, net
Cash payments to employees for services
Cash payments for contracted services
Cash payments for insurance claims
Cash payments for suppliers
Cash payments for other operating expenses
$ 1,303,713
(626,758)
(76,799)
(47,386)
(482,606)
(1,619)
(68,545)
Net cash provided used in operating activities
Tech
trades
$
Catering
14,669
(1,872)
—
—
—
(11,074)
(1,723)
$
7,667
(744)
(487)
—
—
(6,436)
—
Internal
Service
Funds
Print Shop
$
106,627
(42,692)
—
(38,059)
—
(25,876)
—
$ 1,432,676
(672,066)
(77,286)
(85,445)
(482,606)
(45,005)
(70,268)
—
—
—
—
—
Cash flows from investing activities Interest received
26,351
—
—
—
26,351
Net cash provided by investing activities
26,351
—
—
—
26,351
Net decrease in cash and cash equivalents
26,351
—
—
—
26,351
704,383
—
—
—
704,383
Cash and Cash Equivalents at Beginning of the Year
Cash and Cash Equivalents at End of the Year
$
730,734
$
—
$
—
$
—
$
730,734
$
658,277
$
1,487
$
386
$
42,378
$
702,528
Reconciliation of operating income (loss) to net cash
provided by (used in) operating activities Operating income (loss)
Adjustments to reconcile operating income
to net cash provided by operating activities:
Decrease (increase) in due from other funds
Decrease (increase) in prepaid expenses
Increase (decrease) in accounts payable
Increase (decrease) in accrued wages
Increase (decrease) in other accrued expenses
Net cash provided by (used in) operating activities
(626,758)
800
223
—
(32,542)
$
—
58
(1,872)
220
165
—
—
$
—
(744)
—
360
(2)
—
$
—
(42,692)
—
314
—
—
$
—
(672,066)
1,020
1,062
(2)
(32,542)
$
—
AGENCY FUNDS
Agency funds are established to account for assets held by the District in a custodial capacity.
Expenditures are made only in accordance with the purpose for which assets are received. The District
has the following Agency Funds:
Student Activity Fund – this fund accounts for the receipt and disbursement of monies from student
activity organizations.
Flex Spending Fund – this fund accounts for costs associated with the IRS flexible medical and
dependent care spending account offered to the District employees through payroll deduction.
59
Exhibit H-6
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
Balance
Balance
September 1,
August 31,
2007
Additions
Deductions
2008
Student Activity Account
Assets
$
157,506
$
32,911
Accrued interest
1,089
Total assets
282,258
$ 406,040
184,735
32,911
-
$
191,506
$
466,993
$
—
$
399
$
33,724
184,735
1,089
-
$ 440,040
$
218,459
$
$
399
Liabilities
Accounts payable
Total liabilities
191,506
—
277,845
251,291
218,060
$
191,506
$
278,244
$ 251,291
$
218,459
$
593,920
$
536,563
$ 514,344
$
616,139
51,266
57,273
$ 571,617
$
667,405
$
$
9,387
Flexible Spending
Assets
Total assets
57,273
$
651,193
$
587,829
$
—
$
9,387
51,266
Liabilities
Accounts payable
Due to employees
651,193
Total liabilities
—
521,168
514,343
658,018
$
651,193
$
530,555
$ 514,343
$
667,405
$
751,426
$
818,821
$ 920,384
$
649,863
236,001
90,184
Total Agency Funds
Assets
90,184
Accrued interest
1,089
Total assets
$
842,699
$
—
-
236,001
1,089
-
$ 1,054,822
$1,011,657
$
885,864
$
$
$
9,786
Liabilities
Accounts payable
9,786
—
191,506
277,845
251,291
218,060
Due to employees
651,193
521,168
514,343
658,018
808,799
$ 765,634
Total liabilities
$
842,699
60
$
$
885,864
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
61
Exhibit I-1
SCHEDULE OF GENERAL CAPITAL ASSETS BY SOURCE
AUGUST 31, 2008
Governmental Capital Assets
Land
$
Total Governmental Funds Capital Assets
6,808,982
312,226,735
17,314,992
$ 336,350,709
Investments in Governmental Funds Capital Assets by Source
Beginning balance
Additions:
General fund
School lunch and breakfast program
Capital projects fund
$ 335,465,421
Retirements:
General fund
Total Governmental Funds Capital Assets
1,463,973
125,616
383,174
1,972,763
(1,087,475)
(1,087,475)
$ 336,350,709
62
Exhibit I-2
SCHEDULE OF GENERAL CAPITAL ASSETS BY SCHOOL / LOCATION
AUGUST 31, 2008
School/Location
High Schools
Middle Schools
Elementary Schools
Administration and Services
Total Capital Assets
Land
Buildings and
Improvements
Furniture and
Equipment
$ 1,215,619
$ 77,359,072
$
625,982
Total
1,194,438
$ 79,769,129
68,972,855
546,247
70,145,084
4,410,416
139,112,979
1,018,536
144,541,931
556,965
26,781,829
14,555,771
41,894,565
$ 6,808,982
$ 312,226,735
$ 17,314,992
$ 336,350,709
63
Exhibit I-3
SCHEDULE OF GENERAL CAPITAL ASSETS CHANGES BY SCHOOL / LOCATION
AUGUST 31, 2008
School/Location
High Schools
General
Capital Assets
September 1, 2007
$
Middle Schools
Elementary Schools
Administration and Services
Total Capital Assets
$
Additions
79,419,703
$
349,426
General
Capital Assets
August 31, 2008
Transfers/
Retirements
$
—
$
79,769,129
69,939,779
205,305
-
70,145,084
144,492,599
49,332
-
144,541,931
41,613,340
1,368,700
(1,087,475)
335,465,421
$ 1,972,763
$ (1,087,475)
64
41,894,565
$
336,350,709
TEXAS EDUCATION AGENCY REQUIRED SCHEDULES
65
SCHEDULE OF DELINQUENT TAXES RECEIVABLE
1
Years ended
August 31,
1999 and prior
2
3
10
Debt service
Assessed or
appraised
valuation
Delinquent
balance
by year
September 1
Tax rates
Maintenance
Various
Various
2000
1.4415
0.1903
5,618,501,550
172,230
2001
1.4501
0.2274
6,201,253,141
262,249
2002
1.4312
0.2218
6,898,126,092
468,969
2003
1.4712
0.2407
6,999,070,848
330,022
2004
1.4176
0.2440
7,211,297,519
326,685
2005
1.4588
0.2517
7,354,368,745
475,659
2006
1.4707
0.2523
7,504,101,582
703,565
2007
1.3441
0.2535
7,872,238,503
1,449,675
2008 (current)
1.0400
0.2637
8,247,133,260
—
Totals
$
Various
$
$
66
854,803
5,043,857
Exhibit J-1
$
$
20
31
32
30
40
Current
year’s total
levy
Maintenance
Collections
Debt Service
Collections
Total
collections
Adjustments
—
$
8,973
$
1,146
$
10,119
$
(95,959) $
50
Delinquent
balance
by year
August 31,
2008
748,725
—
8,094
1,069
9,163
(1,357)
161,710
—
9,992
1,567
11,559
(1,593)
249,097
—
17,091
2,649
19,740
(3,618)
445,611
—
19,854
3,249
23,103
180
307,099
—
26,963
4,641
31,604
7,425
302,506
—
75,146
12,966
88,112
27,932
415,479
—
125,267
21,490
146,757
12,346
569,154
—
279,871
52,790
332,661
(496,700)
620,314
105,672,654
82,324,729
20,874,934
103,199,663
(1,333,216)
1,139,775
(1,884,560) $
4,959,470
105,672,654
$
82,895,980
$
20,976,501
$
67
103,872,481
$
Exhibit J-2
SCHEDULE OF EXPENDITURES FOR COMPUTATION OF INDIRECT COST FOR 2007-2008
GENERAL AND SPECIAL REVENUE FUNDS
Account
number
6100
6211
6212
6213
621X
6220
6230
6240
6250
6260
6290
6320
6330
63XX
6410
6420
6430
6490
6500
6600
Function 41 and Related Function 53– General Administration, Function 99 Appraisal District Cost
1
2
3
4
5
6
Account
School
Tax
Supt’s.
Indirect
Direct
name
board
collection
office
cost
cost
Misc
Payroll costs
Legal services
Audit services
Tax appraisal and
collection
$
—
—
—
$ 369,063
249,904
—
$ 2,486,155
—
75,000
—
621,076
—
—
—
—
621,076
—
—
5,325
56,883
—
—
62,208
—
—
—
—
—
—
—
—
—
—
4,000
—
—
4,000
—
—
—
—
—
—
—
1,571
—
—
489
—
—
—
17,522
45,896
3,167
—
—
—
—
—
—
—
3,167
18,011
47,467
—
—
—
—
10,378
—
5,278
—
—
—
—
—
15,656
—
2,448
—
12,313
182,605
—
—
197,366
8,360
—
5,100
22,392
—
—
35,852
—
15,341
43,417
—
—
—
—
—
—
—
—
—
56,751
—
—
76,473
—
101,256
—
—
—
—
—
—
—
—
—
—
—
—
76,473
15,341
201,424
—
—
$ 69,566
$622,647
$ 709,323
$ 3,073,460
Tuition and
transfer payments
Education Service
Center
Contr maint and
repair
Utilities
Rentals
Misc contractors
Textbooks and
reading
Testing materials
Other supplies,
materials
Travel and
subsistence
Insurance and
bonding costs
Election costs
Misc operating
Debt service
Capital outlay
Total
$
$
—
—
—
3,167
Total expenditures/expenses for General and Special Revenue Funds
$
$
—
—
—
Total
—
—
—
Other professional
services
$
7
—
(9)
$
$
2,855,218
249,904
75,000
4,478,163
$ 159,395,196
Less: Deductions of unallowable costs
Fiscal year:
Total capital outlay (6600)
Total debt & lease (6500)
Plant maintenance (function 51, 6100-6400)
Food (function 35, 6341 and 6499)
Stipends (6413)
Column 4 (above) - total indirect cost
$ 1,463,973
13,510,880
3,413,901
3,073,460
(10)
(11)
(12)
(13)
(14)
Subtotal
21,462,214
Net allowed direct cost
$ 137,932,982
Cumulative:
Total cost of building before depreciation (1520)
Historical cost of buildings over 50 years old
Amount of federal money in building cost (net of #16)
Total cost of furniture and equipment before depreciation (1530 & 1540)
Historical cost of furniture & equipment over 16 years old
Amount of federal money in furniture & equipment (net of above)
68
(15)
(16)
(17)
(18)
(19)
(20)
$ 312,226,735
N/A
N/A
$ 17,314,992
N/A
N/A
Exhibit J-3
OPTIMUM FUND BALANCE CALCULATION SCHEDULE - GENERAL FUND
(UNAUDITED)
1. Total general fund balance as of August 31, 2008
$
2. Total reserved fund balance
56,538,770
521,865
3. Total designated fund balance
29,203,320
4. Estimated amount needed to cover fall (September 1, 2008 January 31, 2009) cash flow deficits in the General Fund
(net of borrowed funds and funds representing deferred
revenues) (unaudited)
12,287,086
5. Estimate of one month's average cash disbursements during the
regular school session (9/1/08 - 5/31/09) (unaudited)
14,529,527
6. Optimum fund balance and cash flow (lines 2+3+4+5) (unaudited)
56,541,798
7. Deficiency undesignated unreserved General Fund
balance (line 1 minus line 6) (unaudited)
$
69
(3,028)
Exhibit J-4
CHILD NUTRITION FUND
Data
Control
Budgeted Amounts
Codes
Original
Final
Actual Amounts
Variance With
Final Budget
Positive or
(GAAP Basis)
(Negative)
REVENUES:
5700
5800
5900
5020
Total local and intermediate sources
State program revenues
Federal program revenues
$
Total revenues
3,976,168
54,475
3,958,379
$
3,606,168
54,475
3,958,379
$
3,749,074
55,641
4,025,516
$
142,906
1,166
67,137
7,989,022
7,619,022
7,830,231
211,209
7,875,409
113,613
7,625,409
113,613
7,111,312
113,613
514,097
-
7,989,022
7,739,022
7,224,925
514,097
605,306
725,306
42,813
100,047
42,813
100,047
748,166
868,166
1,472,897
-
EXPENDITURES:
0035
0051
6030
1100
Current:
Food service
Total expenditures
Excess (deficiency) of revenues
over expenditures
-
7915
7949
Other Financing Sources
Transfers in
Other Resources
-
1200
Net changes in fund balances
-
0100
Fund balance - September 1 (beginning)
3000
Fund balance - August 31 (ending)
(120,000)
(120,000)
1,472,897
$
1,472,897
70
1,472,897
$
1,352,897
$
2,221,063
$
868,166
Exhibit J-5
DEBT SERVICE FUND
Data
Control
Budgeted Amounts
Original
Final
Codes
Variance With Final
Budget Positive or
(Negative)
Actual Amounts
(GAAP Basis)
REVENUES:
5700 Total local and intermediate sources
$ 20,530,078
$ 20,530,078
20,530,078
20,530,078
21,765,152
1,235,074
Current:
0071 Debt service - principal on long-term debt
0072 Debt service - interest on long-term debt
0073 Debt service - bond issuance cost and fees
2,674,902
17,847,676
7,500
2,674,902
17,847,676
7,500
2,674,902
17,847,675
1,780
1
5,720
6030
20,530,078
20,530,078
20,524,357
5,721
-
-
1,240,795
1,240,795
-
-
1,240,795
1,240,795
1,605,088
1,605,088
1,605,088
-
5020
Total revenues
$
21,765,152
$
1,235,074
EXPENDITURES:
Total expenditures
Excess (deficiency) of revenues over (under)
expenditures
1200 Net change in fund balance
0100 Fund balance - September 1 (beginning)
3000 Fund balance - August 31 (ending)
$ 1,605,088
71
$
1,605,088
$
2,845,883
$
1,240,795
72
STATISTICAL SECTION
(Unaudited)
73
74
This section of the District's comprehensive annual financial report presents information as a
context for understanding what the information in the financial statements, note disclosures,
and required supplementary information says about the District's overall financial health.
Financial Trends
Schedules 1 - 7
These schedules contain trend information to help the reader
understand how the District's financial performance and well
being has changed over time.
Revenue Capacity
Schedules 8 - 11
These schedules contain information to help the reader assess
the District's ability to generate its own source of revenues.
Debt Capacity
Schedules 12 - 15
These schedules present information to help the reader assess
the affordability of the District's current level of outstanding
debt and the District's ability to issue additional debt in the future.
Demographic and Economic Information
Schedules 16 - 17
These schedules offer demographic and economic indicators to
help the reader understand the socioeconomic environment within
which the District's financial activities take place and to provide
information that facilitates comparisons of financial statement
information over time and among governments.
Operating Information
Schedules 18 - 21
These schedules contain operational and structure data to help
the readers understand how the information in the District's financial
report relates to the services the District provides and the activities
it performs.
75
76
Schedule 1
Net Assets by Component
Last Six Fiscal Years
(accrual basis of accounting)
(Unaudited)
Fiscal Year
2003
2004
2005
2006
2007
2008
$ 1,741,383
$ 2,797,506
$ (1,384,715)
$ (3,065,038)
$ (5,468,408)
$ (14,183,661)
6,924,062
1,268,041
1,261,476
1,556,847
1,472,897
2,221,063
37,773,639
17,170,047
15,672,422
19,169,151
26,454,474
44,046,239
$ 46,439,084
$ 21,235,594
$ 15,549,183
$ 17,660,960
$ 22,458,963
$ 32,083,641
Governmental activities
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total primary government net assets
Note: The district began to report accrual information when it implemented GASB Statement 34 in 2002.
77
Expenses, Program Revenues, and Net (Expense)/Revenue
Last Six Fiscal Years*
(Unaudited)
Expenses by function
Governmental activities:
Instruction
Instructional Resources & Media Services
Curriculum & Instructional Staff Development
Instructional Leadership
School Leadership
Guidance, Counseling & Evaluation Services
Social Services
Health Services
Student (Pupil) Transportation
Food Services
Cocurricular/Extracurricular Activities
General Administration
Plant Maintenance and Operations
Security and Monitoring Services
Data Processing Services
Community Services
Debt Service - Interest and fees on long-term debt
Facility Acquisition and Construction
Juvenile Justice Alternative Educational Placement
Total primary government expenses
2003
$
81,478,134
3,717,419
1,728,834
2,387,599
8,396,720
5,834,099
89,723
1,541,155
2,455,959
6,238,902
4,346,229
4,443,485
14,661,343
687,778
2,545,004
96,734
12,783,120
1,054,356
—
—
—
$
85,450,648
3,604,876
1,811,082
2,258,762
8,360,049
5,910,290
93,085
1,549,715
2,409,720
6,902,578
4,308,421
4,403,498
12,970,316
704,491
2,680,077
933,794
15,650,273
1,699,619
—
—
—
$
154,486,593
$
161,701,294
Program Revenues
Instruction
Instructional Resources and media services
School leadership
Guidance, counseling, and evaluation services
Social services
Health services
Food services
Cocurricular/extracurricular services
Community services
Operating grants and contributions
Total primary government program revenues
Net (Expense)/Revenue
Total primary government net expense
2004
2,362,134
62,899
20,618
60,656
38
653
—
1,406
3,687,182
1,466,074
378
166,942
394
38,048
21,740,145
29,607,567
$
(124,879,026)
370,278
—
—
—
—
—
—
—
3,702,153
390,374
—
—
—
—
19,230,149
23,692,954
$
(138,008,340)
Notes: The district began to report accrual information when it implemented GASB Statement 34 in 2002.
78
Schedule 2
2005
2006
2007
2008
$
86,942,846
3,424,431
1,892,829
2,403,121
8,336,325
6,165,359
101,432
1,662,133
2,384,021
7,085,255
4,396,497
4,439,832
12,767,309
717,862
2,507,087
1,006,525
15,552,726
—
3,456,090
25,613
—
$
89,057,620
3,414,205
2,697,978
1,854,050
8,754,623
6,302,943
245,792
1,675,749
2,868,012
7,043,340
5,202,815
4,612,456
12,273,238
739,331
2,461,809
1,165,430
15,437,044
309,114
1,687,590
21,070
—
$
93,815,272
3,348,897
3,061,832
1,743,579
9,288,936
6,563,505
361,572
1,847,134
2,666,232
7,475,814
5,496,519
4,799,355
13,287,993
786,959
2,864,774
1,214,803
16,863,108
—
—
28,960
—
$
100,115,053
2,986,858
3,111,620
1,914,495
9,605,865
6,899,080
475,657
1,863,388
3,029,782
7,431,378
5,438,441
3,910,315
14,493,713
814,667
3,638,339
1,407,095
16,082,803
—
14,842
14,625
598,661
$
165,267,293
$
167,824,209
$
175,515,244
$
183,846,677
2,520,994
75,142
53,779
125,111
19
235
—
304,509
3,770,733
1,323,279
—
350,562
1,548
919,903
16,503,605
25,949,419
$
(139,317,874)
1,869,579
75,346
59,352
309,761
4,146
—
636
319,533
3,908,630
2,088,220
—
322,642
4,008
954,466
19,498,596
29,414,915
$
(138,409,294)
551,488
—
359,372
—
—
—
—
351,103
3,735,842
358,865
17,722
161,745
76,724
148,249
22,581,829
28,342,939
$
(147,172,305)
79
99,697
—
—
—
—
—
—
—
3,652,606
525,692
—
505,345
—
—
25,343,721
30,127,061
$
(153,719,616)
80
Schedule 3
General Revenues and Total Change in Net Assets
Last Six Fiscal Years
(Unaudited)
2003
Net (Expense)/Revenue
Total primary government net expense
$
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes
Property taxes levied for general purposes
Property taxes levied for debt service
State aid - formula grants
Miscellaneous local and intermediate
Investment earnings
Special Item
Total primary government
Change in Net Assets
Total primary government
$
(124,879,026) $
100,588,743
16,457,117
7,436,232
924,073
813,688
126,219,853
1,340,827 $
2004
2005
(138,008,340) $
100,192,735
17,259,412
13,624,196
2,038,021
865,912
133,980,276
(4,028,064) $
(139,317,874) $
103,200,251
17,784,752
9,515,964
1,459,359
1,671,137
133,631,463
(5,686,411) $
Notes: The district began to report accrual information when it implemented GASB Statement 34 in 2002.
81
2006
(138,400,321) $
108,302,000
18,585,740
9,408,394
1,628,604
3,217,811
141,142,549
2,742,228 $
2007
(147,172,305) $
102,882,662
19,428,573
22,171,179
3,421,758
4,066,136
151,970,308
4,798,003 $
2008
(153,719,616)
83,590,286
21,094,490
52,913,100
1,037,809
3,347,497
1,361,112
163,344,294
9,624,678
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(Unaudited)
1999
General Fund
Reserved
Unreserved
Total general fund
All Other Governmental Funds
Reserved
Unreserved, reported in:
Total all other governmental funds
$
2000
$
$
7,175,478
20,877,638
28,053,116
$
$
2001
$
$
617,962
25,916,983
26,534,945
137,269,768
$
61,539
137,331,307
$
2002
$
$
733,717
24,108,687
24,842,404
67,290,336
$
26,610,487
$
1,160,474
68,450,810
$
1,863,109
28,473,596
1,898,554
$ 11,091,963
82
610,159
27,234,458
$ 27,844,617
9,193,409
Schedule 4
2003
$
$
648,167
31,363,000
32,011,167
$
$
2004
$
$
381,814
34,823,329
35,205,143
6,972,729
$
2,101,607
9,074,336
$
2005
$
2006
$
358,716
34,877,603
35,236,319
$
$
454,373
38,932,183
39,386,556
5,263,458
$
3,686,708
$
1,723,859
6,987,317
$
2,238,350
5,925,058
$
2007
2008
$
534,798
43,978,131
$ 44,512,929
$
3,698,699
$ 3,862,802
$ 5,199,148
2,120,620
5,819,319
3,152,838
$ 7,015,640
3,604,860
$ 8,804,008
83
521,865
56,016,905
$ 56,538,770
Governmental Funds Revenues
(Unaudited)
1999
2000
2001
2002
Local Sources:
Local maintenance and debt service tax
Tuition from patrons
Other revenue from local sources
Other revenue from intermediate sources
Co-curricular revenues
$
Total Local Sources
83,218,609 $
430,345
10,998,481
3,834,635
89,924,821 $ 100,797,748 $ 112,443,479
237,112
227,067
212,864
9,312,325
6,463,302
2,943,756
305,529
93,017
23,674
5,494,048
6,830,558
7,002,319
98,482,070
105,273,835
114,411,692
122,626,092
14,055,048
4,509,093
17,475,555
6,105,615
12,560,212
7,243,547
12,405,963
6,759,448
18,564,141
23,581,170
19,803,759
19,165,411
5,109,931
5,347,681
6,005,370
6,862,955
5,109,931
5,347,681
6,005,370
6,862,955
691,468
177,202
State Programs:
Per capita and foundation
Other state program revenues
Total State Programs
Federal Programs:
State distributed revenues from federal sources
Total Federal Programs
Other Financing Sources:
Bond proceeds and other
Total Revenues
-
-
$ 122,156,142 $ 134,894,154 $ 140,398,023 $ 148,654,458
Includes General, Special Revenue, Debt Service, and Capital Project Funds
84
Schedule 5
2003
$
2004
2006
2007
2008
116,946,239 $
318,712
1,557,865
15,603
6,799,552
117,871,395 $
370,278
2,849,093
8,195
7,710,327
121,716,632 $
444,367
2,841,787
29,615
7,939,183
127,851,250 $ 123,752,455 $
509,008
555,776
4,508,871
7,171,964
43,140
80,834
8,118,225
7,881,135
104,740,077
527,997
4,902,307
55,532
8,182,949
125,637,971
128,809,288
132,971,584
141,030,494
139,442,164
118,408,862
12,344,441
8,580,462
13,168,187
7,299,705
9,620,643
7,213,769
9,497,278
7,399,002
23,710,229
6,858,076
54,496,426
7,891,772
20,924,903
20,467,892
16,834,412
16,896,280
30,568,305
62,388,198
8,251,474
8,824,094
9,579,468
10,941,284
10,535,514
11,213,792
8,251,474
8,824,094
9,579,468
10,941,284
10,535,514
11,213,792
87,878,904
150,557
2,439,564
$
2005
154,814,348 $
15,735,483
173,836,757 $
159,385,464 $
85
256,746,962 $ 180,696,540 $
194,450,416
Governmental Funds Expenditures and Debt Service Ratio
(Unaudited)
Expenditures by Function
1999
Instruction
School leadership
Social services
Health services
Food services
Community services
Debt service
Principal
Interest
Cost and fees
Facilities acquisition and construction
Juvenile justice alternative educational placement
$
Total Expenditures
69,266,190 $
1,977,974
860,047
2,080,757
5,216,217
4,488,906
—
1,187,257
2,019,057
5,500,577
2,943,169
4,259,423
11,111,964
584,163
2,000,883
34,027
68,149,427
2,715,379
1,351,796
2,566,842
6,626,971
4,848,640
54,193
1,252,237
2,272,119
5,461,219
3,771,631
4,150,044
12,195,393
670,871
2,078,745
28,761
1,145,719
12,638,910
—
41,288,565
—
—
—
1,850,000
11,975,038
—
76,228,669
—
—
—
4,090,000
11,744,265
—
44,687,945
—
—
—
14.02%
Includes General, Special Revenue, Debt Service, and Capital Project Funds
86
2001
58,865,863 $
2,377,636
540,627
1,909,402
4,136,039
3,451,045
—
1,010,977
1,396,533
5,258,094
2,237,927
3,439,263
10,754,269
572,527
1,358,732
42,902
$ 152,425,030 $
Debt service as a percentage of noncapital expenditures
2000
203,584,318 $ 178,716,479
12.25%
13.50%
Schedule 6
2002
$
2003
2004
2005
2006
2007
2008
73,703,308 $
3,294,238
1,630,801
2,292,225
7,372,385
5,331,279
61,251
1,293,991
2,392,375
5,991,778
4,123,650
4,028,801
13,092,353
1,045,073
2,035,873
82,691
76,001,915 $
3,370,505
1,694,922
2,340,667
7,760,410
5,419,566
89,071
1,389,486
2,366,094
6,150,603
3,957,686
4,434,997
15,145,810
619,574
1,915,983
96,734
79,313,040 $
3,315,840
1,783,282
2,224,755
7,715,864
5,535,626
92,724
1,404,975
2,266,985
6,855,507
3,957,563
4,358,482
14,730,216
650,546
2,032,655
927,470
80,334,206 $
3,055,781
1,868,064
2,328,747
7,668,124
5,758,086
100,948
1,510,731
2,221,132
7,000,881
3,968,597
4,372,499
12,549,581
653,247
2,065,795
999,620
82,776,315 $
3,067,606
2,685,804
1,784,394
8,102,481
5,910,450
245,553
1,527,332
2,889,267
7,236,212
4,791,894
4,548,947
12,463,612
682,719
3,760,864
1,159,285
87,726,732 $
3,041,329
3,040,569
1,667,089
8,605,996
6,196,904
355,922
1,701,062
3,632,163
7,619,252
5,105,590
4,721,892
14,218,264
730,659
4,463,605
1,208,483
94,269,560
2,684,912
3,099,367
1,841,963
8,959,041
6,551,476
471,618
1,723,306
3,006,607
7,332,834
5,085,839
3,879,502
14,599,072
753,423
3,091,395
1,400,768
4,473,037
12,086,898
—
18,701,421
—
—
—
5,089,031
12,232,240
—
2,645,560
—
—
—
5,536,032
12,332,815
—
1,804,761
—
—
—
5,550,768
13,228,172
—
1,699,865
3,456,090
25,613
—
3,874,632
14,847,191
—
1,514,074
1,687,590
21,070
—
2,708,792
17,111,080
—
451,851
—
28,960
—
2,674,902
17,847,675
1,780
690,225
14,842
14,625
598,661
$ 163,033,428 $ 152,720,854 $ 156,839,138 $ 160,416,547 $ 165,577,292 $ 174,336,194 $ 180,593,393
12.59%
13.09%
13.14%
13.46%
87
13.07%
13.28%
11.49%
Other Financing Sources and Uses and Net Change in Fund Balances, Governmental Funds
(Unaudited)
1999
Excess of revenues over
(under) expenditures
Proceeds from sale of bonds
Sale of equipment and/or capital assets
Premium on issuance of bonds
Transfers in
Payment to refunded bond escrow
Other resources
Transfers out
Total other financing sources (uses)
Net change in fund balances
2000
2001
2002
$ (30,268,883) $ (69,381,636) $ (38,495,659) $ (14,379,420)
-
6,573,847
29,121
608,500
(6,520,000)
(608,500)
82,968
177,202
(3,351,298)
(3,174,096)
-
$ (30,268,883) $ (69,298,668) $ (41,669,755) $ (14,379,420)
88
Schedule 7
2003
$
2,093,494 $
55,429
55,429
$
2,148,923 $
2004
1,262,136 $
15,434,973
300,510
(15,890,663)
(155,180)
1,106,956 $
2005
2006
(1,031,083) $
(1,031,083) $
2007
4,977,636 $
84,185,000
3,614,769
79,135
(88,732,907)
(79,135)
(933,138)
6,209,789 $
38,421
37,652
74,484
(37,652)
112,905
4,044,498 $
89
6,322,694 $
2008
11,417,459
2,242,057
42,813
154,693
(42,813)
2,396,750
13,814,209
Schedule 8
Assessed Value and Actual Value of Taxable Property
(Unaudited)
Fiscal
Year
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Actual Value
Real
Personal
Property
Property
4,472,945,447
4,738,230,215
5,197,883,842
5,636,885,144
5,992,826,582
6,347,492,313
6,571,249,322
6,890,049,951
7,241,607,179
7,622,888,804
1,294,708,141
1,453,145,763
1,527,925,416
1,768,299,914
1,268,213,499
1,170,946,877
841,726,425
1,188,114,422
1,165,271,513
1,142,281,768
Less:
Exemptions
Total
Taxable
Value
604,859,402
572,874,428
524,556,117
507,058,966
261,969,233
307,141,671
58,607,002
574,062,791
534,640,189
518,037,312
5,162,794,186
5,618,501,550
6,201,253,141
6,898,126,092
6,999,070,848
7,211,297,519
7,354,368,745
7,504,101,582
7,872,238,503
8,247,133,260
Source: Tarrant County Appraisal District.
Notes: Property is assessed at full market value.
a
Per $100 of assessed value.
90
Total
Direct
Rate a
1.606
1.632
1.678
1.653
1.712
1.662
1.711
1.723
1.598
1.304
91
Direct and Overlapping Property Tax Rates
(rate per $100 of assessed value)
(Unaudited)
August 31,
Hurst - Euless
Bedford
ISD*
City of
Arlington
City of
Bedford
City of
Colleyville
City of
Euless
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
1.606
1.632
1.678
1.653
1.712
1.662
1.711
1.723
1.598
1.304
0.638
0.638
0.634
0.634
0.634
0.648
0.648
0.648
0.648
0.648
0.344
0.331
0.339
0.339
0.384
0.389
0.401
0.447
0.447
0.447
0.347
0.347
0.347
0.347
0.347
0.347
0.347
0.347
0.347
0.356
0.524
0.515
0.515
0.497
0.497
0.495
0.495
0.492
0.490
0.470
*includes levies for operating and debt service costs
Source: Tarrant County Appraisal District website.
92
Schedule 9
Overlapping Rates*
City of
Hurst
City of
Fort Worth
City of
North Richland Hills
Tarrant
County
Tarrant Co.
Hospital
District
0.546
0.536
0.511
0.501
0.499
0.499
0.499
0.499
0.518
0.535
0.898
0.885
0.865
0.865
0.865
0.865
0.865
0.865
0.860
0.855
0.570
0.570
0.570
0.570
0.570
0.570
0.570
0.570
0.570
0.570
0.265
0.265
0.275
0.273
0.272
0.2725
0.2725
0.2725
0.2715
0.2665
0.234
0.234
0.234
0.234
0.232
0.235
0.235
0.235
0.235
0.230
93
Tarrant Co.
College
District
0.092
0.106
0.106
0.106
0.139
0.139
0.139
0.139
0.139
0.139
Schedule 10
Ten Largest Taxpayers
Current Year and Nine Years Ago
(Unaudited)
Principal Taxpayers
American Airlines
Bell Helicopter Textron
Centreport Partners LP
TXU Electric Delivery Co
Simon Property Group
Southwestern Bell
Colonial Realty LP
Bank One Na
Somerset Village Partners LP
Ira Stoneleigh
Sabre Group
Coltec Industries
Merck Medco Rx Services
Nokia Telecommunications
Uniden Corp of America
Reliance Communications
2007-2008
Assessed
Valuation (1)
Rank
$
209,161,902
141,321,388
108,823,161
68,497,475
63,832,740
59,268,365
56,517,383
47,500,000
44,978,468
39,469,294
—
—
—
—
—
—
1
2
3
4
5
6
7
8
9
10
—
—
—
—
—
—
$
839,370,176
Type of Property
Airline Industry
Defense Industry
Real Estate
Utility
Real Estate
Utility
Real Estate
Banking
Real Estate
Real Estate
Airline Industry
Manufacturing
Pharmeceutical
Utility
Manufacturing
Utility
Total
Percentage
of Total
Assessed Value
2.54 % $ 185,761,103
1.71
161,277,426
1.32
—
0.83
41,638,446
0.77
—
0.72
88,023,198
0.69
—
0.58
—
0.55
—
0.48
—
—
148,987,542
—
65,203,442
—
48,120,724
—
44,585,693
—
42,901,199
—
34,771,013
10 % $
(1) October 2007 assessed valuation of $8,247,133,260 was the basis of the 2007 fiscal year property tax revenues.
Source: Tarrant County Appraisal District
94
1998-1999
Assessed
Valuation
861,269,786
Rank
1
2
—
9
—
4
—
—
—
—
3
5
6
7
8
10
Percentage
of Total
Assessed Value
3.63 %
3.15
—
0.81
—
1.72
—
—
—
—
2.91
1.27
0.94
0.87
0.84
0.68
17 %
Schedule 11
Property Tax Levies and Collections
(Unaudited)
Taxes Levied
for the
Fiscal Year
Fiscal
Year
1998 and prior
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Collected within the
Fiscal Year of the Levy
Percentage
Amount
of Levy
$
79,674,429
83,317,071
90,163,311
102,201,717
111,843,813
116,757,835
119,822,920
119,286,899
125,621,671
122,641,908
105,672,654
$
77,318,320
82,053,781
88,929,873
100,102,884
110,863,161
115,548,521
116,743,391
120,410,258
125,693,408
121,408,050
103,199,663
Collections
in Subsequent
Years
97.04 %
98.48
98.63
97.95
99.12
98.96
97.43
100.94
100.06
98.99
97.66
Source: Tarrant County Tax Assessor and District records.
95
$
532,530
368,715
73,375
835,745
671,647
922,777
786,904
936,350
734,286
332,661
-
Total Collections to Date
Percentage
Amount
of Levy
$
77,850,850
82,422,496
89,003,248
100,938,629
111,534,808
116,471,298
117,530,295
121,346,608
126,427,694
121,408,050
103,199,663
97.71 %
98.93
98.71
98.76
99.72
99.75
98.09
101.73
100.64
98.99
97.66
Schedule 12
Outstanding Debt by Type,
(Unaudited)
Fiscal
Year
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
$
School
Building
Bonds
Refunding
Bonds
180,611,172 $
174,091,172
174,091,172
173,968,136
171,084,105
170,768,100
170,345,850
111,134,250
110,488,850
109,807,000
68,481,514 $
73,696,514
70,176,514
66,421,513
64,841,513
60,271,486
55,827,968
109,179,937
107,116,545
105,123,493
Contractual
Obligations
4,385,000 $
3,840,000
3,270,000
2,675,000
2,050,000
1,400,000
715,000
-
Total
Primary
Government
Percentage
of Personal
Incomea
253,477,686
251,627,686
247,537,686
243,064,649
237,975,618
232,439,586
226,888,818
220,314,187
217,605,395
214,930,493
0.06
0.06
0.05
0.05
0.05
0.04
N/A
N/A
N/A
N/A
Per
Capitaa
% $
1,949
1,909
1,874
1,837
1,765
1,666
1,626
1,576
1,544
1,511
Notes: N/A = not available. Details of the district's outstanding debt can be found in Note M in the notes to the
See Schedule 16 for personal income and population data. These ratios are calculated using personal income and
population for the prior calendar year.
a
96
Schedule 13
Direct and Overlapping Governmental Activities Debt
August 31, 2008
(Unaudited)
Net Debt
Outstanding
Taxing Body
City of Fort Worth
City of Colleyville
City of North Richland Hills
City of Euless
City of Hurst
City of Bedford
City of Arlington
Tarrant County Junior College District
Tarrant County
Tarrant County Hospital District
$
438,386,622
12,375,000
37,400,263
33,825,000
27,373,330
39,940,000
330,530,000
46,301,947
346,495,000
64,620,000
Amount
Overlapping
Net Debt
Percent
Overlapping
8.08 %
5.63
0.20
67.08
58.75
100.00
0.12
9.37
9.50
9.50
$
Total Overlapping Net Debt
Hurst - Euless - Bedford ISD
35,421,639
696,218
74,801
22,689,810
16,081,831
39,940,000
396,636
4,338,492
32,917,025
6,138,900
158,695,352
214,930,493
Total Direct and Overlapping Debt to Net Debt
100 %
214,930,493
$
Ratio of Total Direct and Overlapping Net Debt to 2008 Taxable
Assessed Valuation $8,247,133,260
373,625,845
4.53%
Notes: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the district.
This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the
residents and businesses of the district. This process recognizes that, when considering the district's ability to issue and
repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account.
However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt,
of each overlapping government.
a
The percentage of overlapping debt applicable is estimated using taxable property values. Applicable percentages
were estimated by determining the portion of another governmental unit's taxable value that is within the district's
boundaries and dividing it by each unit's total taxable value.
Source: Information furnished by each governmental unit.
97
Legal Debt Margin Information,
(Unaudited)
1999
Debt limit
$
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the limit
as a percentage of debt limit
516,279,419
$
253,417,660
$
262,861,759
49.09%
2001
2000
561,850,155
$
251,391,313
$
310,458,842
44.74%
(1) The debt limit percentage is in accordance with the Texas Education Code,
Bulletin 721, Section 20.04.
98
620,125,314
2002
$
256,997,908
$
363,127,406
41.44%
689,812,609
2003
$
242,499,564
$
447,313,045
35.15%
699,907,085
238,205,626
$
461,701,459
34.03%
Schedule 14
Legal Debt Margin Calculation for Fiscal Year 2008
Assessed value
$
Debt limit (10% of assessed value)
824,713,326 (1)
Debt applicable to limit
212,084,610
Legal debt margin
2004
$
721,129,752
489,117,072
32.17%
$
2005
$
232,012,680
$
8,247,133,260
735,436,875
2006
$
226,366,865
$
509,070,010
30.78%
750,410,158
2007
$
219,304,831
$
531,105,327
29.22%
787,223,850
2008
$
216,000,307
$
571,223,543
27.44%
99
612,628,716
824,713,326
212,084,610
$
612,628,716
25.72%
Ratio of Net General Bonded Debt to Taxable Assessed Valuation and Net Bonded Debt Per Capita
Last Ten Years
(Unaudited)
Taxable
Assessed Value
August 31,
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
$
4,959,927,624
5,162,794,186
5,618,501,550
6,201,253,141
6,898,126,092
6,999,070,848
7,211,297,519
7,354,368,745
7,504,101,582
7,872,238,503
8,247,133,260
Gross Bonded
Debt Outstanding
at Year End (1)
Assessment
Ratio
100
100
100
100
100
100
100
100
100
100
100
%
$
Reserve For
Retirement of
Bonded Debt
254,623,405 $
253,477,686
251,627,686
247,537,686
244,504,822
238,716,799
232,724,471
227,158,078
220,314,187
217,605,395
214,930,493
4,278,708 $
60,026
236,373
409,098
565,085
511,173
711,791
791,213
1,009,356
1,605,088
2,845,883
(1) The District's bonded indebtedness consists of General Obligation Bonds.
(2) Funded Debt Limitation: Total principal amount of tax bond indebtedness cannot exceed 10% of
assessed valuation of taxable property in the District according to the last completed and approved
ad valorem tax rolls of the District at the time of issuance of bonds.
Source: District records, Tarrant County Appraisal District, North Central Texas Council of Governments
100
Net Bonded Debt
Outstanding
at Year End
250,344,697
253,417,660
251,391,313
247,128,588
243,939,737
238,205,626
232,012,680
226,366,865
219,304,831
216,000,307
212,084,610
Schedule 15
August 31,
Ratio Net Bonded
Debt to Taxable
Assessed Valuation (2)
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
5.05
4.91
4.47
3.99
3.54
3.40
3.22
3.08
2.92
2.74
2.57
Estimated
Population
%
127,450
130,050
131,778
132,118
132,300
134,800
139,500
139,500
139,800
140,950
142,200
Net Bonded
Debt Per Capita
$
101
1,964 $
1,949
1,908
1,871
1,844
1,767
1,663
1,623
1,569
1,532
1,491
Taxable Assessed
Valuation Per Capita
38,917
39,699
42,636
46,937
52,140
51,922
51,694
52,719
53,677
55,851
57,997
Schedule 16
Demographic and Economic Statistics,
Last Ten Calendar Years
(Unaudited)
Calendar
Year
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Estimated
Populationa
130,050 $
131,778
132,118
132,300
134,800
139,500
139,500
139,800
140,950
142,200
Personal
Incomeb
Per
Capita
Personal
Incomeb
40,231,412 $
44,068,188
47,011,291
47,426,814
48,346,513
51,951,087
N/A
N/A
N/A
N/A
28,285
30,299
31,575
31,096
31,054
32,735
N/A
N/A
N/A
N/A
Unemployment
Ratec
3.30 %
3.90
5.20
6.70
6.80
5.70
5.00
4.90
4.00
5.10
Notes: N/A = not available.
North Central Texas Council of Governments
b
Texas Labor Market Information for Tarrant County (information not available by city)
c
Bureau of Labor Statistics for Dallas-Fort Worth-Arlington Metropolitan Statistical
a
102
Schedule 17
Principal Employers,
Current Year and Nine Years Ago
(Unaudited)
2008
Employer
Bell Helicopter Textron
Hurst-Euless-Bedford ISD
Harris Methodist HEB
Carter Blood Care
Warrantech
Citigroup
Tarrant County College
City of Euless
Dillard's
Wal-Mart Supercenter-Hurst
Northeast Mall
Wal-Mart Supercenter-Bedford
Bank One
R-Tec
Employees
4,000
2,422
1,800
600
550
540
490
466
400
369
11,637
1999
Rank
Percentage
of Total
Employment
1
2
3
4
5
6
7
8
9
10
-
5.31%
3.21%
2.39%
0.80%
0.73%
0.72%
0.65%
0.62%
0.53%
0.49%
-
8,000
2,260
1,500
15.43%
16,253
Employees
465
323
400
1,600
300
730
675
Rank
Percentage
of Total
Employment
1
2
4
7
9
8
3
10
5
6
12.18%
3.44%
2.28%
0.71%
0.49%
0.61%
2.44%
0.46%
1.11%
1.03%
Source: District records, City of Bedford Economic Development Department, City of Euless Economic Development
Department, and City of Hurst Economic Development Department. Percentages based on total district workforce.
103
24.75%
104
Schedule 18
Full-time-Equivalent District Employees by Type,
Last Seven Fiscal Years
(Unaudited)
Full-time-Equivalent Employees as of August 31, 2008
2002
2003
2004
2005
2006
2007
2008
Percentage
Change
2008–2002
Supervisory
Instructional administrators
Noninstructional administrators
Principals
Assistant principals
Total supervisory
11
14
29
39
93
11
14
24
37
86
6
19
27
39
91
7
22
27
40
96
7
22
27
41
97
7
22
27
41
97
6
20
27
41
94
-45.5%
42.9%
-6.9%
5.1%
1.1%
Instruction
Elementary classroom teachers
Secondary classroom teachers
ESpecial education teachers
Other teachers
Aides
Total instruction
645
474
123
34
184
1,460
640
473
114
36
183
1,446
647
479
119
27
189
1,461
648
481
120
25
189
1,463
643
468
120
33
187
1,451
658
443
121
62
187
1,471
661
454
121
63
192
1,491
2.5%
-4.2%
-1.6%
85.3%
4.3%
2.1%
Student Services
Guidance counselors
Therapists
Psychologists/diagnosticians
Librarians
Nurses
Total student services
45
22
24
25
28
144
40
20
23
25
28
136
40
22
24
25
29
140
40
21
25
26
29
141
39
21
25
26
29
140
41
22
25
26
29
143
43
23
25
26
27
144
-4.4%
4.5%
4.2%
4.0%
-3.6%
0.0%
Support and Administration
Clerical/secretarial
Auxiliary staff
Total support and administration
55
658
713
37
684
721
43
654
697
45
659
704
46
629
675
53
645
698
54
639
693
-1.8%
-2.9%
-2.8%
2,410
2,389
2,389
2,404
2,363
2,409
2,422
0.5%
Total
Source: Texas Education Agency PEIMS reports, (information at this detail level is not available prior to 2001)
Notes: Full-time instructional employees (teachers) of the district are employed for all 187 scheduled school days.
All other employees scheduled work days range from 200 to 248 days per year.
105
Operating Statistics
(Unaudited)
Fiscal
Year
Enrollment
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
19,410
19,308
19,203
19,178
19,040
19,117
19,090
19,553
19,816
20,048
Operating
Expenditures
$
97,351,836 $
113,530,611
118,194,268
127,772,072
132,754,023
137,165,530
139,937,742
145,341,395
154,064,471
159,378,811
Cost
per
Pupil
Percentage
Change
5,016
5,880
6,155
6,662
6,972
7,175
7,330
7,433
7,775
7,950
1.02
17.23
4.68
8.24
4.65
2.91
2.17
1.40
4.59
2.25
%
Expenses
$
n/a
$
n/a
n/a
156,257,816
158,839,981
161,701,294
165,267,293
167,824,209
175,515,244
183,846,677
Source: Nonfinancial information from district records.
Notes: n/a = not available. Operating expenditures are total expenditures less debt service
and capital outlays.
106
Cost
per
Pupil
n/a
n/a
n/a
8,148
8,342
8,459
8,657
8,583
8,857
9,170
Schedule 19
Percentage
Change
n/a
n/a
n/a
n/a
2.39
1.39
2.35
-0.86
3.19
3.53
Teaching
Staff
%
1,209
1,232
1,233
1,276
1,263
1,272
1,273
1,264
1,284
1,298
Pupil–
Teacher
Ratio
Percentage
of Students
Receiving
Free or
Reduced-Price
Meals
16.1
15.7
15.6
15.0
15.1
15.0
15.0
15.5
15.4
15.4
25.5
26.1
27.4
29.7
35.1
38.0
37.3
40.6
41.7
41.3
107
%
108
Schedule 20
Teacher Base Salaries
(Unaudited)
Fiscal
Year
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Minimum
Salarya
$
30,100 $
33,500
36,300
36,000
37,000
37,000
38,500
40,000
44,250
46,000
Maximum
Salarya
41,194 $
48,775
55,044
51,960
53,779
54,351
55,585
57,993
62,243
64,303
District
Average
Salaryb
36,601 $
39,676
40,962
41,612
42,447
43,673
44,839
46,680
50,933
52,589
Region
Average
Salaryb
34,679 $
37,681
38,965
40,138
40,933
41,672
42,378
43,240
46,808
48,394
Statewide
Average
Salaryb
34,336
37,567
38,361
39,232
39,974
40,478
41,011
41,744
44,897
46,179
Sources:
District records.
b
Texas Education Agency - AEIS reports
a
Note: Amounts are for a teacher with a bachelor's degree. Amounts do not include additional salary
steps based on experience or academic credentials, nor fringe benefits such as health insurance,
workers' compensation, and so on.
109
Capital Asset Information,
(Unaudited)
Schools
Elementary
Buildings
Square feet
Capacity
Enrollment
Junior High
Buildings
Square feet
Capacity
Enrollment
High
Buildings
Square feet
Capacity
Enrollment
Other
Buildings
Square feet
Capacity
Enrollment
Administrative
Buildings
Square feet
1999
2000
2001
2002
2003
19
1,261,984
12,375
10,735
19
1,261,984
12,375
10,612
19
1,261,984
12,375
10,693
19
1,261,984
13,275
10,790
20
1,339,414
13,275
10,661
5
690,552
6,625
4,511
5
690,552
6,625
4,523
5
690,552
6,625
4,383
5
690,552
6,625
4,392
5
690,552
6,625
4,343
2
637,936
4,525
4,118
2
637,936
4,525
4,147
2
637,936
4,525
3,730
2
637,936
4,525
3,832
2
637,936
4,525
3,836
1
35,962
200
n/a
1
35,962
200
n/a
1
35,962
200
230
1
35,962
200
164
1
35,962
200
200
7
242,235
7
242,235
7
242,235
7
242,235
7
242,235
Transportation
Garages
Buses
82
82
82
82
82
Athletics
Football fields
Running tracks
Baseball/softball
Swimming pools
Playgrounds
Concession stands
3
2
4
1
19
5
3
2
4
1
19
5
3
2
4
1
19
5
3
2
4
1
19
5
3
2
4
1
20
5
Source: District records.
110
Schedule 21
2004
2005
2006
2007
2008
20
1,339,414
13,275
10,758
20
1,339,414
13,275
10,823
20
1,339,414
13,275
11,151
20
1,339,414
13,275
11,311
20
1,339,414
13,275
11,517
5
690,552
6,625
4,329
5
690,552
6,625
4,291
5
690,552
6,625
4,351
5
690,552
6,625
4,418
5
690,552
6,625
4,503
2
637,936
4,525
3,808
2
637,936
4,525
3,769
2
637,936
4,525
3,855
2
637,936
4,525
3,883
2
637,936
4,525
3,911
1
35,962
200
222
1
35,962
200
207
1
35,962
200
196
1
35,962
200
204
1
35,962
200
117
7
242,235
7
242,235
7
242,235
7
242,235
7
242,235
82
82
84
85
90
3
2
4
1
20
5
3
2
4
1
20
5
3
2
4
1
20
5
3
2
4
1
20
5
3
2
4
1
20
5
111
112
FEDERAL AWARDS SECTION
113
114
WEAVER
TIDWELL
AND
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENTAL AUDITING STANDARDS
L.L.P.
Certified Public
Accountants
and Consultants
Board of Trustees
We have audited the financial statements of the governmental activities, each
major fund, and the aggregate remaining fund information of the Hurst-EulessBedford Independent School District (“the District”) as of and for the year ended
August 31, 2008, which collectively comprise the District’s basic financial
statements and have issued our report thereon dated January 7, 2009. We
conducted our audit in accordance with auditing standards generally accepted in
the United States of America and the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General
of the United States.
Internal Control over Financial Reporting
In planning and performing our audit, we considered the District’s internal control
over financial reporting in order to determine our auditing procedures for the
purpose of expressing our opinion on the financial statements and not to provide
assurance on the internal control over financial reporting.
A control deficiency 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 misstatements on a timely basis. A
significant deficiency is a control deficiency, or a combination of control
deficiencies, that adversely affect the District’s ability to initiate, authorize, record,
process, or report financial data reliably in accordance with generally accepted
accounting principles such that there is more than a remote likelihood that a
misstatement of the District’s financial statements that is more than
inconsequential will not be detected by the District’s internal control.
A material weakness is a significant deficiency, or combination of significant
deficiencies, that results in more than a remote likelihood that a material
misstatement of the financial statements will not be prevented or detected by the
District’s internal control.
Our consideration of internal control over financial reporting was for the limited
purpose described in the first paragraph of this section and would not necessarily
identify all deficiencies in internal control that might be significant deficiencies or
material weaknesses. We did not identify any deficiencies in internal control over
financial reporting that we consider to be material weaknesses as defined above.
BAKER TILLY
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OFFICES IN
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District’s financial
statements are free of material misstatement, we performed tests of its
compliance with certain provisions of laws, regulations, contracts and grant
agreements, noncompliance with which could have a direct and material effect
on the determination of financial statement amounts. However, providing an
opinion on compliance with those provisions was not an objective of our audit
and, accordingly, we do not express such an opinion. The results of or our tests
disclosed no instances of noncompliance that are required to be reported under
Government Auditing Standards.
This report is intended for the information of the District'
s Trustees, the
administration, federal awarding agencies, the Texas Education Agency and
pass-through entities, and is not intended to be used and should not be used by
anyone other than these specified parties.
Fort Worth, Texas
January 7, 2009
116
WEAVER
TIDWELL
AND
L.L.P.
Certified Public
Accountants
and Consultants
REPORT ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENTAL AUDITING STANDARDS
Board of Trustees
Compliance
We have audited the compliance of Hurst-Euless-Bedford Independent School
District (the “District”) with the types of compliance requirements described in the
U S. Office of Management and Budget (OMB) Circular A-133 Compliance
Supplement that are applicable to each of its major federal programs for the year
ended August 31, 2008. The District's major federal programs are identified in
the summary of auditor's results section of the accompanying schedule of
findings and questioned costs. Compliance with the requirements of laws,
regulations, contracts and grants applicable to each of its major federal programs
is the responsibility of the District's management. Our responsibility is to express
an opinion on the District's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards
generally accepted in the United States of America; the standards applicable to
financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States; and OMB Circular A-133, Audits of
States, Local Governments, and Non-Profit Organizations. Those standards and
OMB Circular A-133 require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of
compliance requirements referred to above that could have a direct and material
effect on a major federal program occurred. An audit includes examining, on a
test basis, evidence about the District’s compliance with those requirements and
performing such other procedures as we considered necessary in the
circumstances. We believe that our audit provides a reasonable basis for our
opinion. Our audit does not provide a legal determination on the District's
compliance with those requirements.
In our opinion, Hurst-Euless-Bedford Independent School District complied, in all
material respects, with the requirements referred to above that are applicable to
each of its major federal programs for the year ended August 31, 2008.
Internal Control over Compliance
The management of the District is responsible for establishing and maintaining
effective internal control over compliance with requirements of laws, regulations,
contracts and grants applicable to federal programs. In planning and performing
our audit, we considered the District's internal control over compliance with
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OFFICES IN
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Page 2
requirements that could have a direct and material effect on a major federal
program in order to determine our auditing procedures for the purpose of
expressing our opinion on compliance and to test and report on internal control
over compliance in accordance with OMB Circular A-133.
Our consideration of the internal control over compliance would not necessarily
disclose all matters in the internal control that might be material weaknesses. A
material weakness is a condition in which the design or operation of one or more
of the internal control components does not reduce to a relatively low level the
risk that noncompliance with applicable requirements of laws, regulations,
contracts and grants caused by error or fraud that would be material in relation to
a major federal program being audited may occur and not be detected within a
timely period by employees in the normal course of performing their assigned
functions. We noted no matters involving the internal control over compliance
and its operation that we consider to be material weaknesses.
This report is intended for the information of the District's Trustees, the
administration, federal awarding agencies, and the Texas Education Agency and
pass-through entities and is not intended to be used and should not be used by
anyone other than these specified parties.
Fort Worth, Texas
January 7, 2009
118
Exhibit K-1
SUPPLEMENTARY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Federal
CFDA
number
Federal grantor agency
Pass-through
entity identification
number
Expenditures
indirect costs
and refunds
U.S. Department of Education
(Passed through State Department of Education)
ESEA Title IV - Drug Free Schools
ESEA Title I - Part A
IDEA Part B Formula
IDEA Part B Preschool
Federal Vocational Education (Basic Grant)
ESEA Title II, Part A - Teacher/Principal Training/Recruiting
ESEA Title II, Part D - Enhancing Education Through Technology
Title III LEP
Title V Part A - Innovative
Summer School LEP
84.186a
84.010a
84.027 *
84.173 *
84.048
84.367
84.318x
84.365
84.298
84.369a
Total Department of Education
8691001220916
8610101220916
86600012209166600
86610012209166610
8420006220916
8694501220916
8630001220916
8671001220916
8685001220916
69550702
$46,920
1,889,652
3,688,080
100,310
177,321
654,464
16,818
227,141
43,788
17,336
6,861,830
U.S. Department of Agriculture
(passed through State Department of Education)
National School Lunch
National School Breakfast
10.555 *
10.553 *
Total passed through State Department of
Education
3,165,369
746,232
3,911,601
U.S. Department of Agriculture (direct)
Commodity supplement (noncash)
10.550
Total Department of Agriculture
205,945
4,117,546
U.S. Department of Defense
Discover Asia
12.901
Total Department of Defense
62,860
62,860
Total expenditures of federal awards
$11,042,236
RECONCILIATION
Federal Program Revenues General Fund
Federal Program Revenues Special Revenue Fund
$272,508
10,941,284
Total federal program revenues per exhibit C-3
11,213,792
Medicaid Administrative Claiming Program and School Health and Related Services (Shars)
Total expenditures of federal awards
(171,556)
$11,042,236
* Clustered programs under OMB Circular A-133
119
NOTE TO SUPPLEMENTARY SCHEDULE OF EXPENDITURES
OF FEDERAL AWARDS
Basis of Presentation
The accompanying schedule of expenditures of federal awards includes the federal grant
activity of the District and is presented on the modified accrual basis of accounting, which is
described in Note C to the District’s financial statements. The information in this schedule is
presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local
Governments and Non-Profit Organizations.
120
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?
•
Significant deficiency(s) identified that are not
considered a material weakness
_____ Yes __X__ No
c. Noncompliance material to financial
• Statements noted
_____ Yes __X__ None
reported
_____ Yes __X__ No
Major Programs
d.
Internal control over major programs
•
Material weakness(es) identified?
•
Significant deficiency(s) identified that are not
considered a material weakness
_____ Yes __X__ No
_____ Yes __X__ None
reported
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 __X__ No
g. Identification of major programs:
10.553
10.555
10.565
National School Breakfast Program
National School Lunch Program
USDA Donated Commodities
h. The dollar threshold used to distinguish between Type
A and Type B programs
i.
Auditee qualified as a low-risk auditee.
$331,267
__ X__ Yes ____ No
121
SCHEDULE OF FINDINGS AND QUESTIONED COSTS – CONTINUED
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
122
HURST EULESS BEDFORD INDEPENDENT SCHOOL DISTRICT
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
None
123

Hurst-Euless-Bedford Independent School District

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