INGLESIDE INDEPENDENT SCHOOL DISTRICT Annual Financial Report For the Year Ended August 31, 2011
Gowland, Strealy, Morales & Company A Professional Limited Liability Company Certified Public Accountants 5934 5, Staples, Suite 201 Corpus Christi, Texas 78413
Ingleside Independent School District Annual Financial Report For The Year Ended August 31, 2011
TABLE OF CONTENTS Page Exhibit INTRODUCTORY SECTION Certificate of Board................
1
FINANCIAL SECTION Inde endentAuditor' s
Report on Financial Statements ........................................................ p Management's Discussion and Analysis (Required Supplementary Information) .................
2 4
Basic Financial Statements Government-wide Financial Statements: Statementof Net Assets ............................................................................................. Statementof Activities ................................................................................................ Fund Financial Statements: BalanceSheet - Governmental Funds ........................................................................ Reconciliation of the Governmental Funds BalanceSheet to the Statement of Net Assets ...................................................... Statement of Revenues, Expenditures, and Changes in FundBalances - Governmental Funds .................................................................. Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................. Statementof Net Assets - Internal Service Fund ........................................................ Statement of Revenues, Expenses, and Changes in FundNet Assets - Internal Service Fund ............................................................... Statementof Cash Flows - Proprietary Funds ............................................................ Statementof Fiduciary Net Assets - Fiduciary Funds ................................................. Statement of Changes in Fiduciary Net Assets - Fiduciary Funds .............................. Notesto the Financial Statements ..................................................................................
10 11
A-1 B-1
12
C-1
13
C-1 R
14
C-2
15 16
C-3 D-1
17 18 19 20 21
D-2 D-3 E-1 E-2
32
G-1
Required Supplementary Information: Budgetary Comparison Schedules: GeneralFund ..............................................................................................................
Combinina Statements and Budaetar y Com parison Schedules as Supplementar y Information: Combining Balance Sheet - All Nonmajor Governmental Funds ..................................... Combining Statement of Revenues, Expenditures and Changes in FundBalances - All Nonmajor Governmental Funds .................................................
34
H-1
35
H-2
36
H-3
40
H-4
Special Revenue Funds: Combining Balance Sheet - Nonmajor Special Revenue Funds ................................ Combining Statement of Revenues, Expenditures and Changes inFund Balances - Nonmajor Special Revenue Funds .........................................
Ingleside Independent School District Annual Financial Report For The Year Ended August 31, 2011
TABLE OF CONTENTS Page Exhibit Capital Projects Funds: Budgetary Comparison Schedule: OtherCapital Projects Funds (616-698) .....................................................................
44
H-5
45 47
J-1 J-2
48
J-3 J-4
OTHER SUPPLEMENTARY INFORMATION SECTION Scheduleof Delinquent Taxes Receivable ............................................................................ IndirectCost Computation Schedule .................................................................................... Budgetary Comparison Schedules Required by the Texas Education Agency: NationalSchool Breakfast and Lunch Program .......................................................... OtherDebt Service Funds (511-598) .......................................................................... Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed inAccordance with Government Auditing Standards ....................................................... Report on Compliance with Requirements That Could Have a Direct and Material Effect on each Major Program and on Internal Control over Com li anceIn Accordance With OMB Circular A-133 ..................................................... p Scheduleof Findings and Questioned Costs ....................................................................... SummarySchedule of Prior Audit Findings ........................................................................... CorrectiveAction Plan ........................................................................................................... Scheduleof Expenditures of Federal Awards ...................................................................... Notesto the Schedule of Expenditures of Federal Awards ................................................... Schedule of Required Responses to Selected School First Indicators .................................
49
50
52 54 56 57 58 59 60
K-1 K-2
Introductory Section
Financial Section
Tommy 5trealy CPA David Morales CPA erry D. Spence CPA
Gowland, Strealy, Morales & Company A Professional Limited Liability Company
Certified Public Accountants
Professional Associates & Senior Advisor.' Peggy 5idler CPA BettyMorales CPA Ryan Johnston Erika M. Post Thomas Withers Greg Morales Dudley Lowland CPA
Independent Auditor's Report on Financial Statements Board of Trustees Ingleside Independent School District P. O. Drawer HH Ingleside, Texas Members of the Board of Trustees: We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Ingleside Independent School District as of and for the year ended August 31, 2011, which collectively comprise the District's basic financial statements as listed in the table of contents. These financial statements are the responsibility of Ingleside Independent School District's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of Ingleside Independent School District as of August 31, 2011, and the respective changes in financial position and 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 December 22, 2011, on our consideration of Ingleside Independent School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on 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.
5934 5. Staples, Suite 201 Corpus Christi, Texas 78413 Phone: (361) 993-1000 Fax: (361) 991-2880 www.gowland-cpa,com Members of the American Institute and Texas Society of Certified Public Accountants
The Management's Discussion and Analysis and the budgetary comparison information identified as Required Supplementary Information in the table of contents are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was performed for the purpose of forming opinions on the financial statements which collectively comprise the Ingleside Independent School District's basic financial statements. The accompanying schedule of expenditures of federal awards required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-Profit Organizations and the combining financial statements and supporting schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. This information 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. Respectfull submitted,
Gowland, Streaiy, Mora & Co., PLLC December 22, 2011
3
MANAGEMENT'S DISCUSSION AND ANALYSIS
This section of Ingleside Independent School District's annual financial report presents our discussion and analysis of the District's financial performance during the fiscal year ended August 31, 2011. Please read it in conjunction with the District's financial statements, which follow this section. FINANCIAL HIGHLIGHTS • The District's total combined net assets were $22,310,102 at August 31, 2011. • During the year, the District's expenses were $644,401 less than the $18,979,424 generated in taxes and other revenues for governmental activities. • The total cost of the District's programs decreased $74,482 this year, and no new programs were added this year. • The general fund reported a fund balance this year of $6,528,222. • The District issued $8,060,000 in Unlimited Tax Refunding bonds, Series 2011 to payoff 1995 Series Bonds and a portion of 2004 Series Bonds. The savings of refunding the bonds is expected to be $315,595. OVERVIEW OF THE FINANCIAL STATEMENTS This annual report consists of three parts—management's discussion and analysis (this section), the basic financial statements, and required supplementary information. The basic financial statements include two kinds of statements that present different views of the District: • The first two statements are government-wide financial statements that provide both long-term and short-term information about the District's overall financial status.
Figure A IF, Required Components of the District's Annual Financial Report
"
*aye*eK€ ' d
Basic
Required Supplemenlary Information
Financial
Statements
• The remaining statements are fund financial statements that focus on individual parts of the government, reporting the District's operations in more detail than the government-wide statements. • The governmental funds statements tell how general government services were financed in the short term as well as what remains for future spending. • Proprietary fund statements offer short- and tong-term financial information about the activities the government operates like businesses, such as food service. • Fiduciary fund statements provide information about the financial relationships in which the District acts solely as a trustee or agent for the benefit of others, to whom the resources in question belong.
Government•wide Financial Statements
II
Fund Frnanclal Statements
I I
r, rife
9(U4€ Statu+rwrra
The financial statements also include notes that explain some of the Detail information in the financial statements and provide more detailed data. The Summary statements are followed by a section of required supplementary information that further explains and supports the information in the financial statements. Figure A-1 shows how the required parts of this annual report are arranged and related to one another.
Figure A-2. Major Features or the District's Govenlment-wide and Fund Financial Statements
Figure A-2 summarizes the major features of the District's financial
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1
The two government-wide statements report the District's net assets and how they have changed. Net assets—the di fference between the District's assets and liabilities—is one way to measure the District's financial health or position. • Over time, increases or decreases in the District's net assets are an indicator of whether its financial health is improving or deteriorating, respectively. • To assess the overall health of the District, you need to consider additional non fi nancial factors such as changes in the District's tax base. The government-wide financial statements of the District include the Governmental activities. Most of the District's basic services are included here, such as instruction, extracurricular activities, curriculum and staff development, health services, and general administration. Property taxes and grants finance most of these activities. Fund Financial Statements The fund financial statements provide more detailed information about the District's most significant funds—not the District as a whole. Funds are accounting devices that the District uses to keep track of specific sources of funding and spending for particular purposes. • Some funds are required by State law and by bond covenants. • The Board of Trustees establishes other funds to control and manage money for particular purposes or to show that it is properly using certain taxes and grants. The District has three kinds of funds: Governmental funds—Most of the District's basic services are included in governmental funds, which focus on (1) how cash and other financial assets that can readily be converted to cash flow in and out and (2) the balances left at year-end that are available for spending. Consequently, the governmental fund statements provide a detailed short-term view that helps you determine whether there are more or fewer financial resources that can be spent in the near future to fi nance the District's programs. Because this information does not encompass the additional long-term focus of the government-wide statements, we provide additional information at the bottom of the governmental funds statement, or on the subsequent page, that explain the relationship (or differences) between them.
• We use internal service funds to report activities that provide supplies and services for the District's other programs and activities-such as the District's Self Insurance Fund. • Fiduciary funds-The District is the trustee, or fiduciary, for certain funds. It is also responsible for other assets that-because of a trust arrangement-can be used only for the trust beneficiaries. The District is responsible for ensuring that the assets reported in these funds are used for their intended purposes. All of the District's fiduciary activities are reported in a separate statement of fiduciary net assets and a statement of changes in fiduciary net assets. We exclude these activities from the District's government-wide financial statements because the District cannot use these assets to finance its operations. FINANCIAL ANALYSIS OF THE DISTRICT AS A WHOLE Net assets. The District's combined net assets were $22,310.102 at August 31, 2011 (See Table A-1). Table A41 Inglesiie Independent School Districts Net Assets Governmental Activities 2011 2010 Current assets: Cash and cash equivalents PropertyTaxes Receivabb (Net) Due from other governments Due from Fiduciary Other receivables Inventories at cost Deferred Expenses Total Current Assets
7.776,191
(329,079) 28,206 460.509 8,687 23.489 (8,672) 408,893 584,033
1.206,355 0 21,647,501 976,479 23,830,335
1,206.355 32,004 22,259,452 985,273 24,483,084
0 (32,004) (611,951) (8,794) (65Z749)
32,190,559
32,259,275
(68.716)
Current Liabilities: Accounts Payable Accrued Liabilities Due to Other Governments Deferred Revenue Current Portion of Long-Term Liabilities Total Current Liabilities
98,247 553,893 1,576 6,045 526.230 1,185,991
57,651 686,984 855 175,461 781,806 1,702,757
40,596 (133,091) 721 (169,416) (255,576) (516,766)
Long-term liabilities:
8,694,466
8,893,814
(199,348)
Total Liabilities
9,880,457
10,596,571
(71 6, 114)
14,986,521 209,497 215,942 6,898.142
14.807,464 173,228 116,449 6,568,563
178,057 36.269 99,493 329,579
22,310.102 $
21.665.704 $
644.398
$
Noncurrent assets; Land Construction in Progress Buildings and Improvements, Net Furniture and Equipment, Net Total noncurrent assets Total Assets
Net Assets: Invested in capital assets. Net of Related Debt State and Federal Programs Debt Service Unrestricted Total NetAssets
$
6,920,979 $ 278,002 680,543 31,623 38,961 9,223 400,893 8,360,224
7,250,058 $ 249.796 220,034 22,936 15,472 17,895
Change
The $6,898,142 of unrestricted net asset represents resources available to fund the programs of the District next year.
Changes in net assets. The District's total revenues were $18,979,424. A significant portion, 65%, of the District's revenue comes from taxes. 15% percent comes from state aid - formula grants, and 17% from operating grants, while 2% relates to charges for services. The total cost of all programs and services was $18,335,023; 69% of these costs are for instructional and student
services including food service. Governmental Activities • Maintenance & Operations (M & 0) property tax rates remained the same at $1.04 per $100 and Debt Service tax rates increased to $.1160 per $100 valuation. Property values decreased by $70.8 million, or 6.1 %. Table A-2 Changes in Ingleside Independent School District's Net Assets Governmental Activities 2010
2011
Program Revenues: Charges for Services operating Grants and Contributions General Revenues PropertyTaxes Slate Aid - Formula Investment Earnings Other Total Revenues
430,228 $ 3,294,822
$
546,391 $ 3,296.961
Change 2011-2010 (116,163) (2.139)
12,859,608 2,467,814 12,707 161,465
(592,019) 337,818 25,146
19,344946
365,522
10,000,503
9,756,962
243,541
237,155
177,858
59,297
169,586 288.939 914,762
196,297 249.468 949,305
(26,711) 39,471 (34,543)
487,416 222,765 247,275 1,086,399
617,496 224,424 291,411 978,526
(130,080) (1.659) (44,136) 107,873
664,963 558,838 1.719,846 62,009 465,296 367,415 5.000
794,710 598,134 1,781,915 59,634 427,182 464,698 0
(129,747) (39,296) (62,069) 2,375 38,114 (97.283) 5,000
0
6,832
(6,832)
580,516 256,340
585,155 249,498
(4,639) 6,842
Total Expenses
18,335,023
18,409.505
2Y
Chanqe in Net Assets
644,401 2 65701
935,441
(291,040)
20,730.260
935,441
22.310.102 $ ,
21.665.701 $
644,401
12,267,589 2,805,632 37,853 173420 18,979.424
Expenses: Instruction inst+uctional Resources and Media Services Curriculum Dev. And Instructional Staff Dev. Instructional Leadershin School Leadership Guidance, Counseling and Evaluation Services Health Services Student (Pupil) Transportation Food Services C urricuiariExtracurricutar Activities General Administration Plant Maintenance & Oper. Security& Monitoring Svcs. Data Processing Services Debt Service Canital Outlav Contracted Instr. Services Between Public Achools Payments to Fiscal Agent/ Member Dist.-SSA Other intergovernmental Charges
Net Assets Beginning Net Assets
$
7
Table A-3 presents the cost of each of the District's largest functions as well as each function's net cost (total cost less fees generated by the activities and intergovernmental aid). The net cost reflects what was funded by state revenues as well as local tax dollars. • The cost of all governmental activities this year was $18,355,023. • However, the amount that our taxpayers paid for these activities through property taxes was only $12,267,589. • Some of the cost was paid by those who directly benefited from (he programs $430,228 or By grants and contributions $ 3,294.822. • Table A-3 Net Cost of Selected District Functions
Total Cost of Services 2011 2010 Instruction General Administration Plant Maintenance & Operations Food Service
$ 10,000.503 $ 9,756,962 558,838 598,134 1,719,846 1,781,915 1,086,399 978,526
% Change
Net Cost of Services 2011 2010
2% $ 8,019,673 $ 7,644,729 -7% 520,043 554,898 -3% 1,580,455 1,595,721 11% 22,416 7,185
FINANCIAL ANALYSIS OF THE DISTRICT'S FUNDS Revenues from governmental fund types totaled $19,283,397, a decrease of 0.56% over the preceding year. General Fund Budgetary Highlights Over the course of the year, the District revised its budget 4 times. Actual expenditures were $746,453 below final budget amounts. The positive variance resulted from controlling costs in the maintenance and other areas, as well as staffing. Staffing is budgeted for employment throughout the full year. Budget amounts for vacant positions throughout the year are not eligible for budget revisions. On the other hand, total revenues were $471,483 below the final budgeted amount. This resulted as follows: • Property tax collections were more than expected ($1,460,627). • Impact Aid revenues were more than expected ($58,728). • State Revenues were lee than expected ($1,990,838). CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets At the end of 2011, the District had invested $23,830,334 in a broad range of capital assets, including land, equipment, buildings, and vehicles. (See Table A-4.)
8
% Change
5% -6% -1% 212%
Table A-4 Distrids Capital Assets Governmental Activities 2011
Land Buildirns and improvements Equipment & Vehicles Construction in Progress Totals at historical cost
1,206,355 $ 32,281.772 2,910.122 36,398,249
Total accumulated depreciation Net capital assets
(12,567,915) $ _23,630,334 $
2010
Total Percentage Change 2011-2010
1.206,355 33.019,758 2.679,792 32,004 _ 35,937,909
0.00% -2.23% 8.60%
(12,454,825) 24.483,084
0.91% -2.67%
-1.46%
Long Term Debt At year-end the District had $9,220,696 in bonds and notes outstanding as shown in Table A-5. More detailed information about the District's debt is presented in the Notes to the Financial Statements. Table A-5 District's Long Term Debt Governmental Activities 2011 Bonds payable Notes payable Accretion Payable Total bonds & notes payable
$ $
2010
8,645,000 $ 9,430,000 198,814 245,620 376,882 20 9^ 2 6` $ 9,675,620
Total Percentage Change 2011-2010 -8.3% -19.1% -4.7%
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES The District's 2012 M & 0 Tax Rate is $1.04 per $100 Assessed Valuation, the same rate as 2011. Certified Appraised value used for the 2012 budget preparation is up $51.97 million, or 4.7% from the prior year. General operating fund spending per student decreased in the 2012 budget from $7,624 to $7,018. The District's 2012 refined average daily attendance is expected to be 1,950, down 0.5 %. These indicators were taken into account when adopting the general fund budget for 2012. Amounts available for appropriation in the general fund budget are $15.1 million. Property taxes will increase approximately $1.1 million from 2011. State revenue is expected to decrease approximately $1.76 million. The District has added no major new programs or initiatives to the 2012 budget. If these estimates are realized, the District's budgetary general fund balance is expected to decline by approximately $658,113 by the close of 2012.
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 demonstrate the District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact the District's Business Office.
Basic Financial Statements
EXHIBIT A-1
INGLESIDE INDEPENDENT SCHOOL DISTRICT STATEMENT OF NETASSI; TS AUGUST 31, 2011
Data Control Codes 1110 1225 1240 1267 1290 1300 1410 1510 1520 1530 1000
2110 2165 2180 2300 2501 2502 2000
Governmental Activities ASSETS: Cash and Cash Equivalents Property Taxes Receivable (Net) Due from Other Governments Due from Fiduciary Other Receivables (Net) Inventories Deferred Expenses Capital Assets: Land Buildings and Improvements, Net Furniture and Equipment, Net Total Assets
$
6,920,979 278,002 680,543 31,623 36,961 9,223 400,893 1,206,355 21.647,501 976,479 32,190,559
LIABILITIES: Accounts Payable Accrued Liabilities Due to Other Governments Unearned Revenue Noncurrent Liabilities: Due Within One Year Due in More Than One Year Total Liabilities
98,247 553.893 1,576 6,045 526,230 8,694,466 9,880,457
NET ASSETS Invested in Capital Assets, Net of Related Debt Restricted For: State and Federal Programs 3820 Debt Service 3850 3900 Unrestricted 3.000 .Total Net;Aset5 :
14,986,521
3200
209,497 215,942 6,898,142 22;310,102:
The accompanying notes are an integral part of this statement.
10
EXHIBIT B-1
INGLESIDE INDEPENDENT SCHOOL DISTRICT STATEMENT OF ACTIVITIES FOR THE YEAR ENDED AUGUST 31, 2011 Net(Expense) Revenue and Changes in Net Assets
4
Data Control Codes 11 12 13 21 23 31 33 34 35 36 41 51 52 53 72 73 81 93 99 TG TP
MT DT IE GC MI TR CN NS NE
FunctionslPrograms Governmental Activities: Instruction Instructional Resources and Media Services Curriculum and Staff Development Instructional Leadership School Leadership Guidance, Counseling, & Evaluation Services Health Services Student Transportation Food Service Cocurricular/ExtracurricularActivities General Administration Plant Maintenance and Operations Security and Monitoring Services Data Processing Services Interest on Long-term Debt Bond Issuance Costs and Fees Capital Outlay Payments Related to Shared Services Arrangements Other Intergovernmental Charges Total Governmental Activities Total Primary Government
Program Revenues Operating Grants and Charges for Contributions Services
Expenses $ 10.000,503 237,155 169,586 288.939 914,762 487,416 222,765 247,275 1,086,399 664,963 558,838 1,719.846 62,009 465,296 364,765 2,650 5,000 580,516 256,340 18,335,023 1 5,023 $
$
$
38,192 1,053 576 711 4,062 2.108 989 921 361,975 2,953 2,482 7,989 275 1,962 48 23 2,712 1,197 430,228 430,228
$
$
Governmental Activities
1,942,638 15,410 46.361 133,041 59,441 43,738 14,475 13,470 702,008 43,209 36,313 131,402 4,029 51,045 698
(8,019,673) (220,692) (122,649) (155,187) (851,259) (441,570) (207.301) (232.884) (22.416) (618.801) (520.043) (1,580,455) (57.705) (412,289) (364,019) (2,650) (4,635) (538,124) (237,621) (14,609,973) (14,609,973)
342 39,680 17.522 3,294.822 3,294,822
General Revenues: Property Taxes, Levied for General Purposes Property Taxes, Levied for Debt Service Investment Earnings Grants and Contributions Not Restricted to Specific Programs Miscellaneous Total General Revenues
Net Assets - Ending
The accompanying notes are an integral part of this statement.
11
11,013.911 1,253,678 37.853 2,805,632 143.300
$
22,310,102
EXHIBIT C-1
INGLESIDE INDEPENDENT SCHOOL DISTRICT BALANCE SHEET - GOVERNMENTAL FUNDS AUGUST 31, 2011
98
10
Data Control Codes
General
Other Governmental
Total Governmental
Fund
Funds
Funds
ASSETS: 1110 1225 1240
6,402,934 262,506 541,961
$
Cash and Cash Equivalents Taxes Receivable, Not Due from Other Governments Due from Other Funds
9,223
Inventories
3410 3450 3480 3500 3520 3540 3600 3000 t. ,
LIABILITIES: Current Liabilities: Accounts Payable Payroll Deductions & Withholdings Accrued Wages Payable Due to Other Funds Due to Other Governments Accrued Expenditures Unearned Revenue Total Liabilities
It
-^
. /-41 ^.
258,012 38,961 9,223
--
,. ^_.'^ '^`s t^r;^ ^:•`a.^...,.:.s.:_.^..
43,843 20,573 531,681 118,442 -594 264,814 979,947
$
FUND BALANCES: Nonspendable Fund Balances: Inventories Restricted Fund Balances: Federal/Slate Funds Grant Restrictions Retirement of Long-Term Debt Committed Fund Balances: Construction Claims and Judgments Self-Insurance Unassigned Total Fund Balances
^t^::4x :'at Ot ' t = ^^.^
6,817.321 278,002 680,543
$
1,445 3,983
'^ ''^t):;'•'•-'='-^'^'0^`^^^8'::^^t^^r'^^`^•^'^.':';?'•'r<'•`^`'r'`FF^'^E^^^r^^r^^t^rt^^.
2110 2150 2160 2170 2180 2200 2300 2000
414,387 15.496 138.582
256.567 34.978
1260 1290 Other Receivables 1300
$
$
350,000 25,000 100,000 6,043,998 6,528.222
The accompanying notes are an integral part of this statement.
12
9,224
--
---
,^::^:^:::i Ja ..:
62,496 21.618 531.681 226.389 1,576 594 284,047 1,128,401
$
-107,947 1,576 -19,233 148,454
9,224
.Y. ^. ^.,, r,^, rf ,,^, rfr..^ ^
18,653 1,045
^ is i i .: t ^ sri
209,497 215,942
209,497 215.942
----425,439
350,000 25,000 100.000 6,043,998 6,953,661
. Y....
^^'^^•"?:
,
i
EXHIBIT CAR
INGLESIDE INDEPENDENT SCHOOL DISTRICT RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS AUGUST 31, 2011
$
Total fund balances - governmental funds balance sheet
6,953,661
Amounts reported for governmental activities in the Statement of Net Assets ("SNA .) are different because: 23,830,335 278,002 67,907 (8,645,000) (198.814) (376.882) 400.893
Capital assets used in governmental activities are not reported in the funds. Property taxes receivable unavailable to pay for current period expenditures are deferred in the funds. The assets and liabilities of internal service funds are included in governmental activities in the SNA. Payables for bond principal which are not due in the current period are not reported in the funds. Payables for notes which are not due in the current period are not reported in the funds. Other long-term liabilities which are not due and payable in the current period are not reported in the funds. Other long-term assets are not available to pay for current period expenditures and are deferred in the funds. $
Net assets of governmental activities - Statement of Net Assets
The accompanying notes are an integral part of this statement.
13
22,310,102
EXHIBIT C-2
INGLESIDE INDEPENDENT SCHOOL DISTRICT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS FOR THE YEAR ENDED AUGUST 31, 2011
General
Other Governmental
98 Total Governmental
Fund
Funds
Funds
10 Data Control Codes
5700 5800 5900 5020
REVENUES: Local and Intermediate Sources Slate Program Revenues Federal Program Revenues Total Revenues
$
$
11,536,515 3,509,022 288,728 15,334,265
1,646,428 126,397 2,176,307 3,949,132
$
13,182,943 3,635,419 2,465,035 19,283,397
EXPENDITURES: Current: Instruction Instructional Resources and Media Services Curriculum and Staff Development Instructional Leadership School Leadership Guidance, Counseling, & Evaluation Services Health Services Student Transportation Food Service Cocurricular/Extracurricular Activities General Administration Plant Maintenance and Operations Security and Monitoring Services Data Processing Services Principal on Long-term Debt Interest on Long-term Debt Bond Issuance Costs and Fees Capital Outlay Payments to Shared Service Arrangements Other Intergovernmental Charges Total Expenditures
8.175.986 225.453 123.284 152,191 869,623 451,364 211,773 370,646 -632,150 531,262 1,621,629 58,949 419,999 46,806 9,067 1,150 5.000 580.516 256.340 14,743,188
1,384,817 -37,934 122,490 -12,000 --1,046,051 --21,531 -22,337 810,000 354,709 80,696 ---3.892,565
9,560,803 225,453 161,218 274,681 869,623 463,364 211,773 370,646 1,046.051 632,150 531.262 1,643,160 58,949 442,336 856,806 363,776 81,846 5,000 580,516 256,340 18.635,753
1100 Excess (Deficiency) of Revenues Over (Under) Expenditures 1100
591,077
56.567
647,644
0011 0012 0013 0021 0023 0031 0033 0034 0035 0036 0041 0051 0052 0053 0071 0072 0073 0081 0093 0099 6030
Other Financing Sources and (Uses): 7911 Capital-Related Debt Issued (Regular Bonds) 7915 Transfers In 7916 Premium or Discount on Issuance of Bonds Transfers Out 8911 Other Uses 8949 7080 Total Other Financing Sources and (Uses) 1200 Net Change in Fund Balances
8,060,000 2.810 819,765 -(8,800,569) 82,006 138,573
---(2,810) (332,178) (334,988) 256.089
6,272.133 0100 Fund Balances - Beginning ;F..;^..^::•:: ^::r.^:r,F^f.^.i,,.^:^f: •:.•1^:3r.•3^ .f::., ( 5 tt._I~ rt^i;^^^d^:ubs.. ending tr^^
•-:^(3.
The accompanying notes are an integral part of this statement.
14
286,866 r
-
-rffs:45!
8,060.000 2.810 819,765 (2,810) (9,132,747) (252,982) 394,662 6,558, 999 r1 69 : ' 0
EXHIBIT C-3
INGLESIDE INDEPENDENT SCHOOL DISTRICT RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACT! V! TIES FOR THE YEAR ENDED A UGUST 31, 2011
$
Net change in fund balances - total governmental funds
394.662
Amounts reported for governmental activities in the Statement of Activities ("SOA") are different because: 230,330 (883,079) 28,205 (400,893) 810,000 46.806 400.893 (989) 18,466 1
Capital outlays are not reported as expenses in the SOA. The depreciation of capital assets used in governmental activities is not reported in the funds. Certain property tax revenues are deferred in the funds. This is (he change in these amounts this year. Expenses not requiring the use of current financial resources are not reported as expenditures in the funds. Repayment of bond principal is an expenditure in the funds but is not an expense in the SOA. Repayment of loan principal is an expenditure in the funds but is not an expense in the SOA. Bond issuance costs and similar items are amortized in the SOA but not in the funds. The accretion of interest on capital appreciation bonds is not reported in the funds. The net revenue (expense) of internal service funds is reported with governmental activities. Rounding difference Change in net assets of governmental activities - Statement of Activities
The accompanying notes are an integral part of this statement.
15
$
644,401
EXHIBIT D-1
INGLESIDE INDEPENDENT SCHOOL DISTRICT STATEMENT OF NET ASSETS INTERNAL SERVICE FUND AUGUST 31, 2011 Nonmajor Internal Service Fund Data Control Codes
Insurance Fund
ASSETS: Current Assets: 1110 Cash and Cash Equivalents Total Current Assets 1000 Total Assets
103,658 103,658 103,658
$
$
LIABILITIES: Current Liabilities: 2110 2000
35.751 35.751 35,751
$
Accounts Payable
Total Current Liabilities Total Liabilities
NET ASSETS: 3900 Unrestricted Net Assets t xs €.,.,, -.,,F:.:..r-,::-•:F:.. r•, ..,•t,,i,•f.,, tf,F,,,,F.,,3r.:3f,,f,.3.,..f.,,.,.,. .4f T )
The accompanying notes are an integral part of this statement.
16
67,907 .
EXHIBIT D -2
INGLESIDE INDEPENDENT SCHOOL DISTRICT STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS - INTERNAL SERVICE FUND FOR THE YEAR ENDED AUGUST 31, 2011 Non major Internal Service Fund Data Control Codes 5700
5020
Insurance Fund OPERATING REVENUES: Local and Intermediate Sources Total Revenues
$
62,770 62,770
OPERATING EXPENSES: 6400
6030 1300
44,304 44,304
Other Operating Costs Total Expenses
18,466
Change in Net Assets
0100 Total Net Assets - Beginning 1Ia1r #Aasis Ending
,.. :.. rr..
:
The accompanying notes are an integral part of this statement.
17
49,441 $____________
EXHIBIT D-3
INGLESIDE INDEPENDENT SCHOOL DISTRICT STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED AUGUST 31, 2011
Internal Service Funds Cash Flows from Operating Activities: Cash Received from Customers Cash Receipts (Payments) for Quasi-external Operating Transactions with Other Funds Cash Payments to Other Suppliers for Goods and Services Other Operating Cash Receipts (Payments) Net Cash Provided (Used) by Operating Activities
$
-62,770 (48,224) -14,546
Cash Flows from Non-capital Financing Activities: Transfers From (To) Other Funds Net Cash Provided (Used) by Non-capital Financing Activities
--
Cash Flows from Capital and Related Financing Activities: Contributed Capital Net Cash Provided (Used) for Capital & Related Financing Activities
---
--
Cash Flows from Investing Activities: Net Cash Provided (Used) for Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Reconciliation of Operating Income to Net Cash Provided by Operating Activities: Operating Income (Loss) Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities Depreciation Provision for Uncollectible Accounts Change in Assets and Liabilities: Decrease (Increase) in Receivables Increase (Decrease) in Accounts Payable Increase (Decrease) in Interfund Payables Increase (Decrease) in Accrued Expenses Increase (Decrease) in Unearned Revenue Total Adjustments Net Cash Provided (Used) by Operating Activities
$
14,546 89,112 103,658
$
18.466
---
$
The accompanying notes are an integral part of this statement.
18
-(3,920) ---(3,920) 14,546
EXHIBIT E-1
INGLESIDE INDEPENDENT SCHOOL DISTRICT STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS AUGUST 31, 2011
Private-purpose
Data Control Codes ASSETS: 1110 Cash and Cash Equivalents Total Assets 1000 LIABILITIES: Current Liabilities: 2170 Due to Other Funds 2190 Due to Student Groups Total Liabilities 2000
Trust
Agency
Fund
Fund
Private-Purpose Trust Fund
Student Activity
$ $
127,182 127,182
$ $
152,796 152,796
$
----
$
31,623 121,173 152,7 96
NET ASSETS 3800 Held in Trust :+o -td
;
^^'^^t^«^t;^r;f:;F^-s;F'^;'^";^"^f^-',,,,,,.r^=; '
The accompanying notes are an integral pa rt of this statement.
19
127,182 ,7^-
ff^^2: $rt ^-:.`^.^'^'^'r^^t^;t-f^%>>'•.: f`
EXHIBIT E-2
INGLESIDE INDEPENDENT SCHOOL DISTRICT STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIDUCIARY FUNDS FOR THE YEAR ENDED AUGUST 31, 2011
PrivatePurpose
Trusts Additions: Investment Income Net (Decrease) in Fair Value of Investments Contributions Total Additions
$
173
1,900 2,073
Deductions: Scholarship Awards Refunds of Contributions Administrative Expenses Total Deductions Change in Net Assets
2,073
Net Assets-Beginning of the Year Net Assets-End of the Year
$
The accompanying notes are an integral part of this statement.
20
125,109 127,182
INGLESIDE INDEPENDENT SCHOOL DISTRICT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2011
A.
Summary of Significant Accounting Policl The basic financial statements of Ingleside Independent School District (the "District") have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") applicable to governmental units in conjunction with the Texas Education Agency's Financial Accountability System Resource Guide ("Resource Guide"). The Governmental Accounting Standards Board ("GASB") is the accepted standard setting body for establishing governmental accounting and financial reporting principles. 1.
Reporting Entity The Board of School Trustees ("Board"), a seven-member group, has governance responsibilities over all activities related to public elementary and secondary education within the jurisdiction of the District. The Board is elected by the public and has the exclusive power and duty to govern and oversee the management of the public schools of the District. All powers and duties not specifically delegated by statute to the Texas Education Agency ("TEA") or to the State Board of Education are reserved for the Board, and the TEA may not substitute its judgment for the lawful exercise of those powers and duties by the Board. The District receives funding from local, state and federal government sources and must comply with the requirements of those funding entities. However, the District is not included in any other governmental "reporting entity" as defined by the GASB in its Statement No. 14, "The Financial Reporting Entity," as revised by GASB Statement No.39, and there are no component units included within the reporting entity.
2.
Basis of Presentation, Basis of Accounting a.
Basis of Presentation Government-wide Financial Statements: The statement of net assets and the statement of activities include the financial activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize the double-counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. The statement of activities presents a comparison between direct expenses and program revenues for each function of the District's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. The District does not allocate indirect expenses in the statement of activities. Program revenues include (a) fees, fines, and charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. Fund Financial Statements: The fund financial statements provide information about the District's funds, with separate statements presented for each fund category. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds. Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities. The District reports the following major governmental funds: General Fund: This is the District's primary operating fund. It accounts for all financial resources of the District except those required to be accounted for in another fund. In addition, the District reports the following fund types:
21
INGLESIDE INDEPENDENT SCHOOL DISTRICT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2011 internal Service Funds: These funds are used to account for revenues and expenses related to services provided to parties inside the District. These funds facilitate distribution of support costs to the users of support services on a cost-reimbursement basis. Because the principal users of the internal services are the District's governmental activities, this fund type is included in the "Governmental Activities" column of the government-wide financial statements. Private-Purpose Trust Funds: These funds are used to report trust arrangements under which principal and income benefit individuals, private organizations, or other governments not reported in other fiduciary fund types. Agency Funds: These funds are used to report student activity funds and other resources held in a purely custodial capacity (assets equal liabilities). Agency funds typically involve only the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations, or other governments. Fiduciary funds are reported in the fiduciary fund financial statements. However, because their assets are held in a trustee or agent capacity and are therefore not available to support District programs, these funds are not included in the government-wide statements. b.
Measurement Focus, Basis of Accounting Government-wide, Proprietary, and Fiduciary Fund Financial Statements: These financial statements are reported using the economic resources measurement focus. The government-wide and proprietary fund financial statements are reported using the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the lime liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, grants, entitlements, and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Governmental Fund Financial Statements: Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The District considers all revenues reported in the governmental funds to be available if the revenues are collected 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. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and acquisitions under capital leases are reported as other financing sources. When the District incurs an expenditure or expense for which both restricted and unrestricted resources may be used, it is the District's policy to use restricted resources first, then unrestricted resources. Under GASB Statement No. 20, "Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting," all proprietary funds will continue to follow Financial Accounting Standards Board ("FASB") standards issued on or before November 30, 1989. However, from that date forward, proprietary funds will have the option of either 1) choosing not to apply future FASB standards (including amendments of earlier pronouncements), or 2) continuing to follow new FASB pronouncements unless they conflict with GASB guidance. The District has chosen to apply future FASB standards.
22
INGLESIDE INDEPENDENT SCHOOL DISTRICT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2011 Financial Statement Amounts a.
Cash and Cash Equivalents For purposes of the statement of cash flows, highly liquid investments are considered to be cash equivalents if they have a maturity of three months or less when purchased.
b.
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 in conformity with Subtitle E. Texas Property Tax Code. Taxes are due on receipt of the tax bill and are delinquent if not paid before February 1 of the year following the year in which imposed. On January 1 of each year, a lax lien attaches to property to secure the payment of all taxes, penalties, and interest ultimately imposed. Property tax revenues are considered available (1) when they become due or past due and receivable within the current period and (2) when they are expected to be collected during a 60-day period after the close of the fiscal year.
Properly Taxes Receivable Allowance for Uncollectible Accounts Property Taxes Receivable, Net
$ $
General Debt Service Fund Fund 634,435 $ 37,451 $ (371,929) (21,955) 262,506 $ 15.496 $
Total 671,886 (393,884) 278,002
Allowances for uncollectible tax receivables within the General and Debt Service Funds are based upon 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 (he Texas Legislature. c.
Inventories and Prepaid Items The District records purchases of supplies as expenditures, utilizing the purchase method of accounting for inventory in accordance with the Resource Guide. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items.
d.
Capital Assets Purchased or constructed capital assets are reported at cost or estimated historical cost. Donated fixed assets are recorded at their estimated fair value at the date of the donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. A capitalization threshold of $5,000 is used. Capital assets are being depreciated using the straight-line method over the following estimated useful lives:
Asset Class Buildings Building Improvements Vehicles Office Equipment Computer Equipment
Estimated Useful Lives 40-70 40-70 10-15 7-15 7-15
23
INGLESIDE INDEPENDENT SCHOOL DISTRICT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2011
Receivable and Payable Balances The District believes that sufficient detail of receivable and payable balances is provided in the financial statements to avoid the obscuring of significant components by aggregation. Therefore, no disclosure is provided which disaggregates those balances. There are no significant receivables which are not scheduled for collection within one year of year end. f.
Interfund Activity Interfund activity results from loans, services provided, reimbursements or transfers between funds. Loans are reported as interfund receivables and payables as appropriate and are subject to elimination upon consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures or expenses. Reimbursements occur when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers In and Transfers Out are netted and presented as a single "Transfers" line on the government-wide statement of activities. Similarly, inlerfund receivables and payabtes are netted and presented as a single 'Internal Balances" line of the government-wide statement of net assets.
g.
Use of Estimates The preparation of financial statements in conformity with GAAP requires the use of management's estimates. Data Control Codes Data Control Codes appear in the rows and above the columns of certain financial statements. The TEA requires the display of these codes In the financial statements filed with TEA in order to insure accuracy in building a statewide database for policy development and funding plans.
B.
Compliance and Accountability 1.
Finance-Related Legal and Contractual Provisions In accordance with GASB Statement No. 38, "Certain Financial Statement Note Disclosures,' violations of financerelated legal and contractual provisions, if any, are reported below, along with actions taken to address such violations: Violation Excess Expenditures Over Appropriations
Action Taken Review of Budget and Amendment Process
The following is a list of the excess of expenditures over appropriations, at the legal control by an individual fund: Fund Type General (Major) General (Major) General (Major) 2.
Functions 12 52 NIA
Instructional Resourves and Media Services Security and Monitoring Services Transfers Out
$
Excess 1,839 169 2,810
Deficit Fund Balance or Fund Net Assets of Individual Funds Following are funds having deficit fund balances or fund net assets at year end, if any, along with remarks which address such deficits:
Fund Name None reported
Deficit Amount Not applicable
24
Remarks Not applicable
INGLESIDE INDEPENDENT SCHOOL DISTRICT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2011 C. Deposits and Investmen ts The District's funds are required to be deposited and invested under the terms of a depository contract. The depository bank deposits for safekeeping and trust with the District's agent bank approved pledged securities 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.
Cash Deposits: At August 31, 2011, the carrying amount of the District's deposits (cash, certificates of deposit, and interest-bearing savings accounts included in temporary investments) was $1,078,804 and the bank balance was $1,526,408. The District's cash deposits at August 31, 2011 and during the year ended August 31, 2011, were entirely covered by FDIC insurance or by pledged collateral held by the District's agent bank in the District's name.
2.
Investments: The District is required by Government Code Chapter 2256, The Public Funds Investment Act, 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 slated maturity of portfolio investments, (7) maximum average dollar-weighted maturity allowed based on the stated maturity date for the portfolio, (8) investment staff quality and capabilities, and (9) bid solicitation preferences for certificates of deposit. The Public Funds Investment Act ('Act') requires an annual audit of investment practices. Audit procedures in this area conducted as a part of the audit of the basic financial statements disclosed that in the areas of investment practices, management reports and establishment of appropriate policies, the District adhered to the requirements of the Act. Additionally, investment practices of the District were in accordance with local policies. The Act determines the types of investments which are allowable for the District. These include, with certain restrictions, 1) obligations of the U.S. Treasury, U.S. agencies, and the State of Texas, 2) certificates of deposit, 3) certain municipal securities, 4) securities lending program, 5) repurchase agreements, 6) bankers acceptances, 7) mutual funds, 8) investment pools, 9) guaranteed investment contracts, and 10) commercial paper. The District's investments at August 31, 2011 are shown below. These investments were included in Cash and Cash Equivalents. Investment or Investment Type TexPool Lone Star-Corporate Overnight Plus Total Investments
3.
urity Mat N/A
$ $
Fair Value 916,351 5,205,799 6,122,150
Analysis of Specific De posit and Investment Risks GASB Statement No. 40 requires a determination as to whether the District was exposed to the following specific investment risks at year end and if so, the reporting of certain related disclosures: a.
Credit Risk Credit risk is the risk that an issuer or other counterparly to an investment will not fulfill its obligations. The ratings of securities by nationally recognized rating agencies are designed to give an indication of credit risk. At year end, the District was not significantly exposed to credit risk.
25
INGLESIDE INDEPENDENT SCHOOL DISTRICT NOTES TO THE FINANCIAL. STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2011
At August 31, 2011, the District's investments, other than those which are obligations of or guaranteed by the U. S. Government, are rated as to credit quality as follows: AAAf/S1} AAAm
First Public - Liquidity Corporate Fund TexPool b.
Custodial Credit Risk Deposits are exposed to custodial credit risk if they are not covered by depository insurance and the deposits are uncollateralized. collateralized with securities held by the pledging financial institution, or collateralized with securities held by the pledging financial institution's trust department or agent but not in the District's name. Investment securities are exposed to custodial credit risk if the securities are uninsured, are not registered in the name of the government, and are held by either the counterparty or the counterparty's trust department or agent but not in the District's name. At year end, the District was not exposed to custodial credit risk.
c.
Concentration of Credit Risk This risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. At year end, the District was not exposed to concentration of credit risk.
d.
Interest Rate Risk This is the risk that changes in interest rates will adversely affect the fair value of an investment. At year end, the District was not exposed to interest rate risk.
e.
Foreign Currency Risk This is the risk that exchange rates will adversely affect the fair value of an investment. At year end, the District was not exposed to foreign currency risk.
Investment Accounting Policy The District's general policy is to report money market investments and short-term participating interest-earning investment contracts at amortized cost and to report nonparticipating interest-earning investment contracts using a cost-based measure. However, if the fair value of an investment is significantly affected by the impairment of the credit standing of the issuer or by other factors, it is reported at fair value. All other investments are reported at fair value unless a legal contract exists which guarantees a higher value. The term "short-term" refers to investments which have a remaining term of one year or less at time of purchase. The term "nonparticipating" means that the investment's value does not vary with market interest rate changes. Nonnegotiable certificates of deposit are examples of nonparticipating interest-earning investment contracts. Capital Assets Capital asset activity for the year ended August 31, 2011, was as follows: Beginning Balances Governmental activities: Capital assets not being depreciated: Land Construction in progress Total capital assets not being depreciated
$
1.206,355 $ 32,004 1,238,359
26
Increases
----
Ending Balances
Decreases
$
--
$ 32,004 32.004
1,206,355 -1.206,355
INGLESIDE INDEPENDENT SCHOOL DISTRICT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2011
Capital assets being depreciated: Buildings and improvements Equipment Vehicles Total capital assets being depreciated Less accumulated depreciation for: Buildings and improvements Equipment Vehicles Total accumulated depreciation Total capital assets being depreciated, net Governmental activities capital assets, net $
32,004 56,749 173,581 262,334
33,019,757 1,293,224 1,386,568 35,699,549 (10,760,305) (645,947) (1,048,572) (12,454,824) 23,244,725 24,483,084 $
(643,955) (188,914) (50.210) (883,079) (620,745) (620,745) $
769,989 --769,989
32,281.772 1,349,973 1,560,149 35,191,894
(769,989) --(769,989) -32,004 $
(10,634,271) (834,861) (1,098,782) (12,567,914) 22,623,980 23,830,335
Depreciation was charged to functions as follows: Instruction Instructional Resources and Media Services Curriculum and Staff Development Instructional Leadership School Leadership Guidance, Counseling, & Evaluation Services Health Services Student Transportation Food Services Extracurricular Activities General Administration Plant Maintenance and Operations Security and Monitoring Services Data Processing Services
$
$ E.
493,475 11,702 8,368 14,258 45,139 24,052 10,992 50,210 53,608 32,813 27,576 84,866 3,060 22.960 883,079
Inter-fund Balances and Activities Due To and From Other Funds Balances due to and due from other funds at August 31, 2011, consisted of the following: Amount
Due To Fund
Due From Fund
General Fund General Fund Other Governmental Funds
General Fund (Payroll) Other Governmental Funds General Fund Total
$
$
Purpose
21,388 Short-term loans 235,179 Short-term loans 1,445 Short-term loans 258,012
All amounts due are scheduled to be repaid within one year. Transfers To and From Other Funds Transfers to and from other funds at August 31, 2011, consisted of the following: Transfers From
Transfers To
Amount
General fund
Other Governmental Funds
27
$
Reason
2,810 Supplement other funds sources
INGLESIDE INDEPENDENT SCHOOL DISTRICT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2011 $
Total F.
2,810
Long-Term Obligations The District has entered into a continuing disclosure undertaking to provide Annual Reports and Material Event Notices to the Slate Information Depository of Texas. which is the Municipal Advisory Council. This information is required under SEC Rule 15c2-12 to enable investors to analyze the financial condition and operations of the District. 1.
Long-Term Obligation Activity Long-term obligations include debt and other long-term liabilities. Changes in long-term obligations for the year ended August 31, 2011, are as follows: Amounts Due Within Ending Beginning Balance One Year Increases Decreases Balance Governmental activities: General obligation bonds 635.000 $ 310.000 7,890,000 $ $ 8,525,000 $ -$ 2004 Unlimited Tax 2.8% --905,000 905,000 -1995 Unlimited Tax 4.6% 2011 Unlimited Tax 170,000 50,000 8,010,000 8,060,000 Refunding 3.0% Notes Public Property Finance 198,814 46,230 46,806 245,620 Contract No. 5508 3.69% 8,843,814 $ 526,230 8,060,000 $ 8,891,806 $ 9,675,620 $ Total governmental activities $ Accretion Payable
401,882
--
376,882 9,220,696 (526,230)
25,000
Less Current Portion $
Due in More Than One Year
Other long-term liabilities The funds typically used to liquidate other long-term liabilities in the past are as follows: Liability Compensated absences Claims and judgments Compensated absences Claims and judgments 2.
Activity Type Governmental Governmental Business-type Business-type
Fund
Debt Service Requirements Debt service requirements on long-term debt at August 31, 2011, are as follows:
Year Ending Aug ust 31. 2012 2013 2014 2015 2016 2017-2021 2022-2026 2027-2029 Totals
Governmental Activities Principal Interest 323,675 $ $ 480,000 $ 308,175 330,000 293,550 370,000 385,000 282,450 400,000 270,900 1,154,650 2,185,000 695,400 2,645,000 149,800 1,850,000 $ 8.645,000 $ 3,478,600 $
28
Total 803,675 638,175 663,550 667,450 670,900 3,339,650 3,340,400 1,999,800 12,123,600
8,694,466
INGLESIDE INDEPENDENT SCHOOL DISTRICT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2011
Year Ending August 31. 2012 2013 2014 2015 Totals
$
$
Principal 46,230 $ 48.472 50.824 53,288 198,814 $
Notes Payable Interest 9,643 $ 7,400 5,049 2,585 24,677 $
Total 55,873 55,872 55,873 55,873 223,491
Advance Refunding of Debt On April 12, 2011, the District issued Series 2011 bonds totaling $8,060,000 with interest rates ranging from 3% to 4% to advance refund a portin of the Series 2004 Bonds that were stated to mature on or after August 15, 2029 and all of the 1995 Series bonds on Agust 15, 2011. The net proceeds of $8,888,734 (after payment of $79,196 in issuance costs) were used to purchase U.S. Government securities, which were deposited in an irrevocable trust with an escrow agent to the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments are as follows: provide for future debt service payments on the refunded bonds, and to pay additional issuance costs and fees totaling $79,196. As a result, $7,595,000 of Series 2004 bonds are considered to be defeased and $465,000 of the 1995 Series, and the liability for those bonds has been removed from long-term debt. The District advance refunded the Series 2004 and 1995 bonds to reduce its total debt service payments over the next 20 years by $315,595 and to obtain an economic gain (difference between the present values of the debt service payments on the old and new debt) of $249,534. The deferred loss on defeasance of bonds, which is the difference between the reacquisition price and the net carrying amount of the refunded bonds is being amortized over the life of the bonds. G.
Risk Management The District is exposed to various risks of loss related to torts, theft, damage or destruction of assets, errors and omissions, injuries to employees, and natural disasters. During fiscal year 2011, the District purchased commercial insurance to cover general liabilities. There were no significant reductions in coverage in the past fiscal year and there were no settlements exceeding insurance coverage for each of the past three fiscal years.
H.
Pension Plan 1.
Plan Description The District contributes to the Teacher Retirement System of Texas (the "System"), a public employee retirement system. It is a cost-sharing, multiple-employer defined benefit pension plan with one exception: all risks and costs are not shared by the District, but are the liability of the State of Texas. The System provides service retirement and disability retirement benefits, and death benefits to plan members and beneficiaries. The System operates primarily under the provisions of the Texas Constitution and Texas Government Code, Title 8, Subtitle C. The Texas legislature has the authority to establish or amend benefit provisions. The System issues a publicly available financial report that includes financial statements and required supplementary information for the District. That report may be obtained by writing the Teacher Retirement System of Texas, 1000 Red River Street, Austin, TX 78701-2698 or by calling (800) 223-8778.
2.
Funding Policy Under provisions in State law, plan members are required to contribute 6.4% of their annual covered salary and the State of Texas contributes an amount equal to 6.644% of the District's covered payroll. The District's employees' contributions to the System for the years ending August 31, 2011, 2010 and 2009 were $720,593, $707,464 and $723,201, respectively, and were equal to the required contributions for each year. Other contributions made from federal and private grants and from the District for salaries above the statutory minimum for the years ending August 31, 2011, 2010 and 2009 were $49,819, $34,853 and $33,579, respectively, and were equal to the required contributions for each year. The amount contributed by the State on behalf of the
29
INGLESIDE INDEPENDENT SCHOOL DISTRICT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2011 District was $694,712 for the year ended August 31, 2011. Retiree Health Care Plan 1.
Plan Description The District contributes to the Texas Public School Retired Employees Group Insurance Program (TRS-Care), a cost-sharing multiple-employer defined benefit postemployment health care plan administered by the Teacher Retirement System of Texas (TRS). 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. That report may be obtained by visiting the TRS web site at www.trs.state.tx.us , by writing to the Communications Department of the Teacher Retirement System of Texas at 1000 Red River Street, Austin, Texas 78701, or by calling 1-800-223-8778. Funding Policy Contribution requirements are not actuarially determined but are legally established each biennium by the Texas Legislature. Texas Insurance Code, Sections 1575.202, 203, and 204 establish state, active employee, and public school contributions, respectively. The State of Texas and active public school employee contribution rates were 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 2011, 2010 and 2009. 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, 2011, 2010, and 2009, the State's contributions to TRS-Care were $7,588, $5,723, and $5,577. respectively, the active member contributions were $73,185, $71,850, and $73,451, respectively, and the District's contributions were $61,924, $60,800, and $62,149, respectively, which equaled the required contributions each year. The Medicare Prescription Drug, Improvement, and Modernization Act of 2003, which was effective January 1, 2006, established prescription drug coverage for Medicare beneficiaries known as Medicare Part D. One of the provisions of Medicare Part D allows for the Texas Public School Retired Employee Group Insurance Program (TRS-Care) to receive retiree drug subsidy payments from the federal government to offset certain prescription drug expenditures for eligible TRS-Care participants. For the fiscal years ended August 31. 2011, 2010, and 2009, the subsidy payments received by TRS-Care on behalf of the District were $25,998, $27,592, and $25,190, respectively.
Employee Health Care Coverage During the year ended August 31, 2011, employees of the District were covered by a health insurance plan (the Plan). The District paid premiums of $75 per month per employee to the Plan. Employees, at their option, authorized payroll withholdings to pay premiums for dependents. All premiums were paid to a licensed insurer. The Plan was authorized by Section 21.922, Texas Education Code and was documented by contractual agreement. The contract between the District and the licensed insurer is renewable September 1, and terms of coverage and premium costs are included in the contractual provisions.
30
INGLESIDE INDEPENDENT SCHOOL DISTRICT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2011
K.
Commitments and Contingencies Contingencies The District participates in 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 by 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 collectibitity of any related receivable may be impaired. In the opinion of the District, there are no significant contingent liabilities relating to compliance with the rules and regulations governing the respective grants; therefore, no provision has been recorded in the accompanying basic financial statements for such contingencies.
31
Required Supplementary Information Required supplementary information includes financial information and disclosures required by the Governmental Accounting Standards Board but not considered a part of the basic financial statements.
INGLESIDE INDEPENDENT SCHOOL DISTRICT
EXHIBIT G-1 Page 1 of 2
GENERAL FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED AUGUST 31, 2011
1 Data Control Codes 5700 5800 5900 5020
0011 0012 0013
3
2
Budgeted Amounts Final Original REVENUES: Local and Intermediate Sources State Program Revenues Federal Program Revenues Total Revenues EXPENDITURES: Current: Instruction & Instructional Related Services: Instruction Instructional Resources and Media Services Curriculum and Staff Development Total Instruction & Instr. Related Services
$
10,014,638 5,002,023 130,000 15.146,661
$
10,075,888 5,499,860 230,000 15,805,748
Variance with Final Budget Positive (Negative)
Actual $
1,460,627 (1.990,838)
8,318,432 229,271 138,500 8,686.203
8,525,353 223,614 133,478 8,882,445
349,367 (1,839) 10,194
0021 0023
Instructional and School Leadership: Instructional Leadership School Leadership Total Instructional & School Leadership
211,200 935,100 1,146,300
171,830 908,246 1,080,076
19,639 38,623 58,262
0031 0033 0034 0036
Support Services - Student (Pupil): Guidance, Counseling and Evaluation Services Health Services Student (Pupil) Transportation Cocurricular/Extracurricular Activities Total Support Services - Student (Pupil)
582,000 218,150 376,350 688,055 1.864,555
459.744 215,602 389,050 673,301 1,737,697
8,380 3,829 18,404 - AAA
0041
Administrative Support Services: General Administration Total Administrative Support Services
607,350 607,350
538,830 538,830
7,568
0051 0052 0053
Support Services - Nonstudent Based: Plant Maintenance and Operations Security and Monitoring Services Data Processing Services Total Support Services - Nonstudent Based
1,958,310 13,170 558,900 2,530,380
1,674,605 58,780 494,835 2,228,220
46,806 9,067 1,500 57,373
46,806 9,067 1,500 57,373
5,000 5,000
5,000 5.000
700,000 260,000 960,000
700,000 260,000 960,000
15.857,161
15,489,641
0071 0072 0073
Debt Service: Principal on Long-Term Debt Interest on Long-Term Debt Bond Issuance Costs and Fees Total Debt Service
0081
Capital Outlay: Capital Outlay Total Capital Outlay
0093 0099
Intergovernmental Charges: Payments to Fiscal Agent/Member Dist.-SSA Other Intergovernmental Charges Total Intergovernmental Charges
6030
Total Expenditures
32
52,976 (169) 74,836
350
119,484 3,660 123,144
INGLESIDE INDEPENDENT SCHOOL DISTRICT
EXHIBIT G-1 Page 2 of 2
GENERAL FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED AUGUST 31, 2011
1 Data Control Codes 1100 Excess (Deficiency) of Revenues Over (Under) 1100 Expenditures Other Financing Sources (Uses): Transfers Out 8911 Other Uses 8949 7080 Total Other Financing Sources and (Uses) 1200 Net Change in Fund Balance 0100 Fund Balance- Beginning
2
Budgeted Amounts Final Original (710,500)
(378,130)
-(710,500)
(332,180) (332,180) (710,310)
6,272,133
33
6,272,133
3
Actual
Variance with Final Budget Positive (Negative)
(2,810) 2 (2,808) 966,399
Combining Statements and Budget Comparisons as Supplementary Information This supplementary information includes financial statements and schedules not required by the Governmental Accounting Standards Board, nor a part of the basic financial statements, but are presented for purposes of additional analysis.
EXHIBIT H-I I NGLESIDE INDEPENDENT SCHOOL DISTRICT COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS AUGUST 31, 2011
Data Control Codes
Special Revenue Funds
ASSETS: 1110 Cash and Cash Equivalents $ 1225 Taxes Receivable, Net 1240 Due from Other Governments 1260 Due from Other Funds 1290 Other Receivables ^^:o.t^^?^
2110 2150 2170 2180 2300 2000
LIABILITIES: Current Liabilities: Accounts Payable Payroll Deductions & Withholdings Due to Other Funds Due to Other Governments Unearned Revenue Total Liabilities
3450 3480 3000
FUND BALANCES: Restricted Fund Balances: Federal/State Funds Grant Restrictions Retirement of Long-Term Debt Total Fund Balances
$
Debt Service Fund
201,978
Capital Projects Fund
$
212,409 15,496 --3,533
$
------
$
414,387 15,496 138,582 1,445 3,983
$
-----
$
$
15,496 15,496
-------
18,653 1,045 107,947 1,576 19,233 148,454
-215,942 215,942
----
--
138,582 1.445 450 -
Total Nonmajor Governmental Funds (See Exhibit C-1)
.. 4 :
18,653 1.045 107.947 1.576 3,737 132,958
209,497 -209.497
F,. ^;..: i i i^^=."ri^ ^..... , - `3•;,;^^,:^.^,:r>.^,;^;:;t;:rf,;,;. f :^T....F,..•:r ^Z^` _=^^===^F^: ^.8^_ ... F^ ^^ , t^^;^,^r;^^;F= ^ ^:'.. 1.ti!i:^^^:%f%,f ir; =•{zt^^.^,^^s,f^;:,:^:.^„^.,:,uc1;d_1^.;F^^i .r. .,.,.^y.........4^,.......
209,497 215,942 425,439
:,
:^>^.
.
.-
34
^,^v^ : ^^3,;
EXHIBIT H-2
INGLESIDE INDEPENDENT SCHOOL DISTRICT COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED AUGUST 31, 2011
Data Control Codes
Special Revenue
Debt Service
Capital Projects
Funds
Fund
Fund
Total Nonmajor Governmental Funds (See Exhibit C-2)
REVENUES:
5700 Local and Intermediate Sources 5800 State Program Revenues 5900 Federal Program Revenues 5020 Total Revenues
$
1
n a'7c on7
$
1,646,428 126,397 2,176,307 O
1100 Excess (Deficiency) of Revenues Over (Under) 1100 Expenditures Other Financing Sources and (Uses): 7911 Capital-Related Debt Issued (Regular Bonds) 7915 Transfers In 7916 Premium or Discount on Issuance of Bonds 8949 Other Uses 7080 Total Other Financing Sources and (Uses) 1200 Net Change in Fund Balances 0100 Fund Balances - Beginning iJ d rt^;•;. rr ;rr r; •;•^.rr•. «:F^•Ft^:f •
1,265.702 $
126,397
EXPENDITURES; Current: 0011 Instruction 0013 Curriculum and Staff Development 0021 Instructional Leadership 0031 Guidance, Counseling, & Evaluation Services 0035 Food Service 0051 Plant Maintenance and Operations 0053 Data Processing Services 0071 Principal on Long-term Debt 0072 Interest on Long-term Debt 0073 Bond Issuance Costs and Fees 6030 Total Expenditures
.....:-,.:-
380,725 $
•
:ice=f ^^.%^•:f
1,384,817 37,934 122,490 12,000 1,046,051 21,531 22,337 --2.647,160
-------810,000 354,709 80,696 1,245,405
13e lien
on on7
------------
1,384,817 37,934 122,490 12,000 1,046,051 21,531 22,337 810,000 354,709 80,696 3,892,565
I
56,567
2,810
8,060,000 2,810
2,810 2,811
(8,800, 569) 82,006 138,573
8,060,000
36.269
819,765 (8,800,569) 79,196 99,493
173,228 ^,•i 'f F•:;: ._ -
35
116,449
(4g-
819,765
(2,811)
286,866
INGLESIDE INDEPENDENT SCHOOL DISTRICT COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS AUGUST 31, 2011
211
1110 1240 1260 1290 f
ASSETS: Cash and Cash Equivalents Due from Other Governments Due from Other Funds Other' Receivables
$
..G
2,171 22,400
3450 3000
^`
LIABILITIES: Current Liabilities: Accounts Payable
$
FUND BALANCES: Restricted Fund Balances: Federal/State Funds Grant Restrictions Total Fund Balances
$
109 38,393
$
l- . Y.. Y !i i'F ••iiiri ^e`lir
$ 418 24,153
---
r
.
!-.
---
179,915 27,733 651 --
.h
-`r f iii: F.` - -
.!•,
$
---
--9.084
---
,'f.}^N::
1,858 627 167
9.084 ---
38.502
---
$
--
38,502
24.571
36
IDEA-B Preschool Grant
f•J^''itii'i^Ye^.`ri^iii.
$
---
---
240
National School BreakfasULunch Program
---
r`r
3
225
9,084
---
--
Payroll Deductions & Withholdings
Due to Other Funds Due to Other Governments Unearned Revenue Total Liabilities
IDEA-B Formula
--
^^lff.'^^if.•...r......Tlifr:if.^r`r^Yj E lfifr: f^Yfljtf lfrilf f^iif lj if ljrjrr.lif ^rf`rYl s` !1 . r.Y,`^ti ^Yiiri
2110 2150 2170 2180 2300 2000
224
ESEA Title l Improving Basic Programs
Data Control Codes
2.652
205,647 205,647
EXHIBIT H-3 Pagel of 2
244
255
Career and Tech Basic Grant
ESEA Title II Training & Recruiting
$
856
$
794 1 ^:i f :e J:e. „}yi//.; 'a^'-'t_:i^'rr^i^is f:l^'Fi^A ' %.- ^T4 a
ti^'t'
$
$ 1,650
1,650
rf
n ^!^J Y^'Sf ^'
$
711 5,906 --
q
:^
263
-.
..:e^ r
266
English Language Acquisition and Enhancement $
----
264 9.666
$
--
5.990 3
---
6,617
--
y} Ei'1^" 4.YF...
s
J•raf^'F -.
37
$
--
n (./1V(} :e.`f:r'r-^:`!:.`.'e.`f Y^r :r:f:F^f. F. r.n ^. f. Fr F:J'F' ff`h^•. J9lYYr^i F,rr jfjr fi^i rit ^: ^ibfhr'r^ii fr ri/'ril:^:n'fjljlin',•r't^r:l
624
279
ARRA of 2009 Enhancing Title XIV State Education through Fiscal Stabilizati on Technology-ARRA
.'^..
$
__
_
9,897
r ^(l :,s^:ri: .. ifl
_
$
--
33
--
9,930
--
--
f...
_
----
,y,C, f:^:;^!'::':tf rfri.!?.r.....,. . :^^if ^.,^YYf_ tom. r. -s J. f--..-. -
irY :^i::^:r ,.'^^9^ I.. <.^.f ',^,^%?fY^ ^^•.^i.
INGLESIDE INDEPENDENT SCHOOL DISTRICT COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS AUGUST 31, 2011
283
Data Control Codes 1110 1240 1260 12( 90
ASSETS: Cash and Cash Equivalents Due from Other Governments Due from Other Funds Other Rec$( eivables
$
1,758 17,013
393
285
ESEA Title 1 Part A IDEA - Part B Improving Basic Preschool - ARRA Programs - ARRA
IDEA - Part B Formula - ARRA
y[ j(J r). s..?,T^'tjntj•^!l.
$
1,123
450
2,679 821
$
----
--
Texas Successful Schools
$
389 ----
---
• Q r'e'f ,rti`r3^YY•t1:•.:r ^Y ^' i f{ r.. j .. :.:iii/.^'r.:^]`LT r.^-: r. .. ^^Ji 3,l^Y^Y"!.G•;'J.,i^ i'J Ci,^^fl:: li;l.;^,.;.•..,.,.,:.,/.JF.f•.,Fl/.Fl.f•. . ^}
2110 2150 2170 2180 2300 2000
LIABILITIES: Current Liabilities: Accounts Payable Payroll Deductions & Withholdings Due to Other Funds Due to Other Governments Unearned Revenue Toial Liabilities
3450 3000
FUND BALANCES: Restricted Fund Balances: Federal/State Funds Grant Restrictions Total Fund Balances
0
284
O ;^F.^;=:qtr T
L a t i ^^•
:. ^•:. _; an: Fun ^
a
F:
3,671
$ --
15.100 450 --
$
-----
^:
,---f^....-, r^..::,r,„^;,;:sr;,;,,^,,;-•--^-:3rr, 'f^^ f^^^F:z : :^:^:^:^3
38
$
---
1,123
---
---
---
---
3,500 1,123
19,221
.
$
389 ---
3,500
---
389
---
EXHIBIT H-3 Page 2 of 2
404 Student Success Initiative
397 Advanced Placement Incentives $
2,068
$
--
411
429 State Funded Special Revenue Fund
Technology Allotment
3,566 7,566
$
1,753
$
Total Nonmajor Special Revenue Funds (See Exhibit H-1)
6,371
$
----
$
201,978 138,582 1,445 450
850
$
--
$
--
-
$
--
$
9,379 2,066 2,066
1,671 2,521
---
18.653 1.045 107,947 1.576 3,737 132,958
3,850 3.850
---
209,497 209,497
--
-11,132
39
--
INGLESIDE INDEPENDENT SCHOOL DISTRICT COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS FOR THE YEAR ENDED AUGUST 31, 2011 211
224
ESEA Title I Improving Basic Programs
Data Control Codes
IDEA-B Formula
225
240
IDEA-B Preschool Grant
National School Breakfast/Lunch Program
REVENUES:
5700 5800 5900 5020
Local and Intermediate Sources State Program Revenues Federal Program Revenues Total Revenues
EXPENDITURES: Current: 0011 Instruction 0013 Curriculum and Staff Development 0021 Instructional Leadership 0031 Guidance, Counseling, & Evaluation Services 0035 Food Se rvice 0051 Plant Maintenance and Operations 0053 Data Processing Services 6030 Total Expenditures
•=:
$ -325,648
$
--335,012
243.355
296,815
82,293
38,197
-335,012
1100 Excess (Deficiency) of Revenues Over (Under) 1100 Expenditures 1200 Net Change in Fund Balances
--
--
0100 Fund Balances - Beginning
--
:.
9.084
380,725 21,181 681,705
9,084
--
---
$
--
-1.046,051 1,291
--
325,648
3YQ t
$
.
did.^ ^ Fic,`^^. , to d
40
*
9,084
1,047,342
--
36,269 36,269
--
169,378
EXHIBIT H-4 Page lot 2
244 Career and Tech Basic Grant $
255 ESEA Title 11 Training & Recruiting $
263 English Language Acquisition and Enhancement $
-
266 279 ARRA of 2009 Enhancing Education through Title XIV State Fiscal Stabilizati on Technology-ARRA $
$ 220 220
17,494 17,494
84,964 84,964
10,902 10.902
585,940 585.940
17,224 270
49.220 35,744
10,302 600
529,363 -2,000 12,000
--
20,240 22,337 585,940
---
---
--
-17,494
84,964
10,902
41
220 ---
220
INGLESIDE INDEPENDENT SCHOOL DISTRICT COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS FOR THE YEAR ENDED AUGUST 31, 2011 283
Data Control
IDEA - Part B
Codes
Formula - ARRA
284
285
ESEA Title 1 Part A Improving Basic Programs - ARR A
IDEA - Part B Preschool - ARR A
REVENUES:
5700 5800 5900 5020
0011 0013 0021 0031 0035 0051 0053 6030
Local and Intermediate Sources State Program Revenues Federal Program Revenues Total Revenues
$
EXPENDITURES: Current: Instruction Curriculum and Staff Development Instructional Leadership Guidance, Counseling, & Evaluation Services Food Service Plant Maintenance and Operations Data Processing Services Total Expenditures
1100 Excess (Deficiency) of Revenues Over (Under) Expenditures 1100 1200 Net Change in Fund Balances 0100 Fund Balances - Beginning fl> rs: 31t fundr SFtf G Sa I~i^thr' - -f:-
---
$
97,717 -----97,717
28.744 28,744
28,744 -------
(1,123)
--
:^;'a`:r.'^>;^=•:^ r^=:^^^r-F:
---
(1,123)
-------
42
$ (1,123) (1,123)
97,717 97,717
-•°^;•;,.^,'^iFF^-'.'.^'f^'^','`'.^=^-F-:. ^^; ,
---
f ^-
28,74
---
---
--
--
EXHIBIT H-4 Page 2 of 2
397 Advanced Placement
404 Student Success
411 Technology Allotment
28,413
1,100
28,413
Exhibit H-2)
$
$ 1.100
Total Nonmajor Special Revenue Funds (See
75,703
380.725 126.397 2,176,307
2,683,429
28.413
75,703
1,100
1,100
1,384,817 37,934 122,490 12,000 1,046,051 21,531 22,337 2,647,160
36,269
36.269
--
3,850
-
43
173,228
INGLESIDE INDEPENDENT SCHOOL DISTRICT
EXHIBIT H-5
OTHER CAPITAL PROJECTS FUNDS (616-698) CAPITAL PROJECTS FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED AUGUST 31, 2011
Data Control Codes REVENUES: 5700 Local and Intermediate Sources 5020 Total Revenues
1
2
Budget
Actual
3 Variance Positive (Negative)
E
EXPENDITURES: 1100 Excess (Deficiency) of Revenues Over (Under) Expenditures 1100
1
Other Financing Sources (Uses): Transfers In 7915 7080 Total Other Financing Sources and (Uses) 1200 Net Change in Fund Balance
2.810
2,811
0100 Fund Balance - Beginning
44
Other Supplementary Information This section includes financial information and disclosures not required by the Governmental Accounting Standards Board and not considered a part of the basic financial statements. It may, however, include information which is required by other entities.
INGLESIDE INDEPENDENT SCHOOL DISTRICT SCHEDULE OF DELINQUENT TAXES RECEIVABLE FOR THE YEAR ENDED AUGUST 31, 2011
1 Year Ended Auaust 31 2002 and Prior Years
2
3 Assessed/Appraised Value For School Tax Purposes
Tax Rates Maintenance $
Various
Debt Service $
Various
$
Various
2003
1.42
.0496
982.852,976
2004
1.50
.0501
935,187,305
2005
1.50
.1296
907.641.517
2006
1.50
.1288
909.446,228
2007
1.37
.13
942,753,706
2008
1.04
.13
1,037,242,256
2009
1.04
.09
1,098,497,747
2010
1.04
.099
1,170,530,363
2011 (School Year Under Audit)
1.04
.116
1,099,691,986
1000 Totals 9000 - Portion of Row 1000 for Taxes Paid into Tax Increment Zone Under Chapter 311, Tax Code
45
EXHIBIT J-1
10 Beginning Balance 9/1/10
20 Current Year's Total Levy $
--
$
32
Maintenance Collections
Debt Service Collections $
9,461
40 Entire Year's Adjustments $
--
(3,281)
1.326
46
--
1.232
41
--
3.778
326
--
6,500
558
--
-
3,568
339
(651)
--
11,989
1,499
(416)
26,336
2,279
830
52,302
4,979
(4,933)
11,097,450
1,237,793
34,893
12,488,950 $
31
12,488,950
$
11,213,943
$
46
1,247,859
$
26,442
50 Ending Balance 8131111
INGLESIDE INDEPENDENT SCHOOL DISTRICT
EXHIBIT J-2
SCHEDULE OF EXPENDITURES FOR COMPUTATION OF INDIRECT COST FOR 2012-2013 GENERAL AND SPECIAL REVENUE FUNDS FOR THE YEAR ENDED AUGUST 31, 2011 FUNCTION 41 - GENERAL ADMINISTRATION AND FUNCTION 99 - APPRAISAL DISTRICT COI
Account Account Name Number $ 611X-6146 Payroll Costs ;;". Fringe Benefits (Unused Leave
1 (702) School Board --
"""""5 "
for Separating Employees in
T
2 (703) Tax Collection $ $ --
""" ^,$ ^,,,_
3 (701) Supt's OfIlce I 185,889 $
6149 6211 6212 6213 621X 6220 6230 6240 6250 6260 6290 6310 6320 6330 63XX 6410
Travel, Subsistence, Stipends
6420 6430 6490 6500
Ins. and Bonding Costs Election Costs Miscellaneous Operating Debt Service Capital Outlay
6600
Total
1,936
--
2,335
2,567 """" " " 8,027 " -". ` °' .:":""""z.. A
S
5 (720) Direct Cost -^
17.160 $ 229,712 $
I $ _
i
.
° "^
9,250 _ ., 9,080
.^ y.
n_T_"">"
f
-
"
°>r
6
""
Total 416,082
I
Op
.' "
. .:_
,>.. -..
7
I
Misc. I 25,181 $
I
^S
°W
u ^, "°" " ..° °^ " " k; --
41,489 9,250 228,812 13,659
1,985
--
--
2,280
9.206 ,
--
__
15,106
--
--
--
35 -5,842
----
-•• --
3,281
-
--
:" ;_ ", . m 1,474 3,351 .. x ", . ;.
242,356 $
6 (Other)
I
^">_. "
-,.
.." ..
^"_
y" Function 41 and Related 53) """ 4 4 >s Fringe Bene fi ts (Unused Leave for Separating Employees in all Functions except Function p ry^^ "4 "• > ° . m 41 and Related 53) 41,489 ;^^ Legal Services .:"." °. ... Audit Se rv ices ,; 228,812 :": ". =^ ""y ;_, ; Tax Appraisal and Collection 2,747 900 932 Other Prof. Services Tuilion and Transfer Payments -295 Education Service Centers -Contr. Maint. and Repair s^^"a'r:... "` :.: `s: Utilities ` °^= " .> s"' 5,900 5, --Rentals ---Miscellaneous Contr. Operational Supplies, Materials -Textbooks and Reading -----Testing Materials 2,165 1,883 -Other Supplies, Materials
6149
4 I (750) Indirect Cost I 205,012 $
245.165 $
-
9,890 7,552
'.5, w ".. 500
¢>" " -
35 --
°="
-- $
25,681 $
760,074
$
17.390.348
(9)
Total Expenditures for General and Special Revenue Funds
2567 13,352
LESS: Deductions of Unallowable Costs FISCAL YEAR
(10) (11) (12) (13) (14)
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
$ $ $ $ $ $
230,330 57,023 1,634,980 436,189 -245,165 2.603,687
Subtotal Net Allowed Direct Cost CUMULATIVE Total Cost of Buildings Before Depreciation (1520)
(15)
Historical Cost of Buildings over 50 years old Amount of Federal Money in Building Cost (Net of #16) Total Cost of Furniture & Equipment Before Depreciation (1530 & 1540) Historical Cost of Furniture & Equipment over 16 years old
(16) (17) (18) (19)
Amount of Federal Money in Furniture & Equipment (Net of #19)
(20)
$
14,786,661
$
32,281,772
22,553 -2,910,122 664,936 $
(8) Note A - No Function 53 expenditures and $228,812 in Function 99 expenditures are included in this report on administrative costs
47
--
INGLESIDE INDEPENDENT SCHOOL DISTRICT
EXHIBIT J-3
NATIONAL SCHOOL BREAKFAST AND LUNCH PROGRAM BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED AUGUST31, 2011
1
2
Budget
Actual
3 Variance Positive (Negative)
Data Control Codes
REVENUES; 5700 Local and Intermediate Sources 5800 State Program Revenues 5900 Federal Program Revenues 5020 Total Revenues
0035
0051
6030
$
EXPENDITURES: Current: Support Services - Student (Pupil): Food Services Total Suppo rt Services - Student (Pupil)
480,000 35,000 611,035 1,126,035
_
1,072.520 1,072,520
'=
07Z „'f+1;:= r 6847 ?. .
-f;
;f%tr
'r%
$i.7;
t%)' t6`t35 .x. t `
=
rr
_. s. ^t;
$
(99,275) (13,619) 70,670 (42,424)
26,469 26,469
e'f ei.'. rJitift^ffr iti f^fj •:
Support Services - Nonstudent Based: Plant Maintenance and Operations Total Support Services - Nonstudeni Based
1 525 1 525
f::f
1,074,045
Total Expenditures
1100 Excess (Deficiency) of Revenues Over (Under) Expenditures 1100 1200 Net Change in Fund Balance
51,990 51,990 169,378
0100 Fund Balance - Beginning
48 .
,.
234 234 26,703 26
1Q47
(15,721) ;fJt?i3,
3J89
' f r `r F `F,.
9Y
;
INGLESIDE INDEPENDENT SCHOOL DISTRICT
EXHIBIT J-4
OTHER DEBT SERVICE FUNDS (511-598) BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED AUGUST 31, 2011
Data Control Codes
Budget
Actual ...........:..:..-
REVENUES: 5700 5020
Local and Intermediate Sources
Variance Positive (Negative)
$
1,175,687 1,175,687
$:::::: ;265,702: 1 ,265702
81000 0. : 364,709.
Total Debt Service
785,000 379,713 159,896 1,324,609
8.4 96 1`;245,405:.'
(25,000) 25,004 79,200 79,204
Total Expenditures
1,324,609
1;245 405
79,204
(148,922)
20297
169,219
$
Total Revenues
90,015 90,015
EXPENDITURES: Debt Service: 0071 0072 0073 6030 1100 1100
Principal on Long Term Debt Interest on Long-Term Debt Bond Issuance Costs and Fees
Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses):
7911 7916 8949 7080 1200
Other Uses Total Other Financing Sources and (Uses) Net Change in Fund Balance
0100
Fund Balance - Beginning
Capital-Related Debt Issued (Regular Bonds) Premium or Discount on Issuance of Bonds
8,060,000 819,765 (8,800,569 79,196 (69,726)
..:.................... . 060 000 .............8 ,... ::819;765: 79;196: 99;493,:
116,450
3:000 .Fund Balance E dirig :::
$
49
T
46;724
169,219
::116,450 $
215943
$ 169,25..9.:
Tommy Strealy CPA
Gowland, Strealy, Morales & Company
David Morales CPA y err D. Spence CPA
Professional Associates d Senior Advisor: Peggy Sidler CPA Betty Morales CPA Ryan Johnston Erika M. Post Thomas Withers Greg Morales Dudley Lowland CPA
A Professional Limited Liability Company
Certified Public Accountants
Independent Auditor's Report
Board of Trustees Ingleside Independent School District P. O. Drawer HH Ingleside, Texas Members of the Board of Trustees: We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Ingleside Independent School District as of and for the year ended August 31, 2011, which collectively comprise the Ingleside Independent School District's basic financial statements and have issued our report thereon dated December 22, 2011. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. rting Internal Control Over Financial Reporting In planning and performing our audit, we considered Ingleside Independent School District's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Ingleside Independent School District's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Ingleside Independent School District's internal control over financial reporting. Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over financial reporting that might be significant deficiencies, or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. However, as described in the accompanying schedule of findings and questioned costs, we identified certain deficiencies in internal control over financial reporting that we consider to be material weaknesses.
5934 5. Staples, Suite 201 Corpus Christi, Texas 78413 Phone: (361) 993-1000 Fax: (361) 991-2880 www.Qowlend-cpa.com Members of the American Institute and Texas Society of Certified Public Accountants
50
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiency described in the accompanying schedule of findings and questioned costs as item 2011-2 to be a material weakness. Compliance and Other Matters As part of obtaining reasonable assurance about whether Ingleside Independent School District's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of management, others within the entity, the Board of Trustees, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Respectfully submitted,
Lowland, Strealy, Moral
Co., PLLC
December 22, 2011
51
Tommy 5trealy CPA an Gowland, Streal y, Morales & Company p y
QryiD. Spence CPA Jerry D. Spence Professional Associates d Senior Advisor:
A Professional Limited Liability Company
Peggy Sidler CPA
Certified Public Accountants
Betty Morales CPA Ryan Johnston Erika M. Post Thomas Withers Greg Morales Dudley Lowland CPA
Independent Auditor's Report
Board of Trustees Ingleside Independent School District P. O. Drawer HH Ingleside, Texas Members of the Board of Trustees: Compliance We have audited Ingleside Independent School District's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of Ingleside Independent School District's major federal programs for the year ended August 31, 2011. Ingleside Independent School District's major federal programs are identified in the summary of auditors 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 Ingleside Independent School District's management. Our responsibility is to express an opinion on Ingleside Independent School 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 Ingleside Independent School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of Ingleside Independent School District's compliance with those requirements. As described in item 2011-1 in the accompanying schedule of findings and questioned costs, Ingleside Independent School District did not comply with requirements regarding OMB A-87 that are applicable to its IDEA-B Formula. Compliance with such requirements is necessary, in our opinion, for Ingleside Independent School District to comply with the requirements applicable to that program. 5934 5. Staples, Suite 201 Corpus Christi, Texas 78413 www.gowtond-cpa.com Fax: (361) 991-2880 Phone: (361) 993-1000 Members of the American Institute and Texas Society of Certified Public Accountants
52
In our opinion, except for the noncompliance described in the preceding paragraph, Ingleside Independent School District complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended August 31, 2011. InternaLGontrol Over Compliance Management of Ingleside Independent School District is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and pe rforming our audit, we considered Ingleside Independent School District's internal control over compliance with the requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Ingleside Independent School District's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we considered to be material weaknesses, as defined above. This report is intended solely for the information and use of management, others within the entity, the Board of Trustees, federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Respectfully
itted,
^
Lowlan,
, Morale & Co., PLLC
December 22, 2011
53
INGLESIDE INDEPENDENT SCHOOL DISTRICT SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED AUGUST 31, 2011
Results
A. Summary 1.
Financial Statements Unqualified
Type of auditor's report issued: Internal control over financial reporting: One or more material weaknesses identified?
X Yes
One or more significant deficiencies identified that are not considered to be material weaknesses?
Yes
X None Reported
Yes
X No
One or more material weaknesses identified?
Yes
X No
One or more significant deficiencies identified that are not considered to be material weaknesses?
Yes
X None Reported
Noncompliance material to financial statements noted? 2.
No
Federal Awards Internal control over major programs:
Type of auditor's report issued on compliance for major programs:
Unqualified
Any audit findings disclosed that are required to be reported in accordance with section 510(a) of OMB Circular A-133?
X Yes
Identification of major programs: CFDA Numbers ). Name of Federal Program or Cluster Title I Cluster: ESEA Title I - Part A 84.010 ESEA Title I - Part A, SSA 84.389 Special Education Cluster: 84 . 027 84.173 84.391 84.392
IDEA-B Formula IDEA-B Preschool IDEA-B Formula - ARRA IDEA-B Preschool - ARRA
School Lunch Cluster: 10.553 10.555 10.555
School Breakfast Program National School Lunch Program National School Lunch Program (Non-cash)
84.394
ARRA Title XIV Fiscal Stabilization
54
No
INGLESIDE INDEPENDENT SCHOOL DISTRICT SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED AUGUST 31, 2011
Dollar threshold used to distinguish between type A and type B programs:
$_ 300.000
Auditee qualified as low-risk auditee?
Yes
X No
B. Financial Statement Findings 2011-2 Internal control over cash Condition: The payroll bank reconciliation was not reconciled as of August 31, 2011. The unreconciled difference amounted to $21,979. Criteria: Internal control over cash requires bank reconcilations be completed timely and accurately. Effect:Lack of control over payroll Cause: The District implemented new software during 2011. Staff had trouble using the payroll portion of the new software and was unable to reconcile the payroll bank account at year end. There was also a lack of adequate support from the software company. Recommendation: The District should find other distrcts in the area that use the same software system and use their knowledge and support to correct the reconciliation problems. C. Federal Award Findings and Questioned Costs 2011-1 84.027 IDEA-B Formula Condition: Ten employees were selected from the February 15, 2011 IDEA-B Formula payroll. We examined the employees time and effort for compliance with OMB A-87, Cost Principles. We determined Time and Effort reports were not correctly implemented for one employee's split funded. The activity report only included the percentage by fund and not a detail of the hours worked in each fund. Criteria: OMB A-87 requires employees working in Federal Programs to comply with Time and Effort Standards. Employee working in more than one activity must prepare activity reports that accounts for the total activity for which the employee is compensated. Effect: Wages of $15,682 are considered questioned cost. Cause: The lack of understanding of the OMB Circular A-87 for split funded employees resulted in non-compliance with payroll time and effort. Recommendation: Additinal compliance training should be implemented to ensure compliance with time and effort documentation for Federal Program employees.
55
INGLESIDE INDEPENDENT SCHOOL DISTRICT SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS FOR THE YEAR ENDED AUGUST 31, 2011
Current Status
Finding/Recommendation 2010-1 ESEA TITLE I, PART A In order to be in compliance with the Title Funding requirements, the following corrective action was put into place for the Spring of 2010. Title funded staff responsibilities were evaluated to ensure 100% funding compliance. In addtion, all Title staff are required to complete and sign the required Semi-Annual Certification Form.
I mplemented
2010-2 IDEA-B Formula In order to comply with the time and effort requirements for Special Education funding, the following corrective action plan was put in place in June 2010. Special education staff was evaluated to ensure 100% funding compliance. All special education staff have completed a time and effort certificate for the semi-annual report.
I mplemented
56
Management's Explanation If Not Implemented
INGLESIDE INDEPENDENT SCHOOL DISTRICT CORRECTIVE ACTION PLAN FOR THE YEAR ENDED AUGUST 31, 2011
2011-1 Non-Compliance with Payroll Time & Effort IDEA-B Formula Time & Effort Reports not Correctly Implemented Recommendation: Additional compliance training should be implemented to ensure compliance with time and effort documentation for Federal Program employees. Action Taken: We concur with the recommendation, and the employee has received further training, on January 9, 2012, regarding the rules for preparing time and effort reports. Charles Simmons, Business Manager, will be responsible for the continued implementation of the corrective action.
2011-2 Internal Control Over Cash Payroll Bank Account not Reconciled as of August 31, 2011 Recommendation: The District should find other districts in the area that use the same software system and use their knowledge and support to correct the reconciliation problems. Action Taken: We concur with the recommendation, and we have contacted another district on January 10, 2012, and we are working together to fully understand the software process necessary to reconcile the payroll account bank statement. Charles Simmons, Business Manager, will be responsible for the continued implementation of the corrective action.
57
INGLESIDE INDEPENDENT SCHOOL DISTRICT
EXHIBIT K-1 Page 1 of 2
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED AUGUST 31, 2011
(2 )
(2A)
(3)
Federal CFDA Number
Pass-Through Entity Identifying Number
Federal Expenditures
93.718
205-903
84.010a
11610101205903
325,648
IDEA-B Formula
84.027
11660001205903600(
335,012
Impact Aid - P.L. 81.874
84.041
205-903
44,438
Career and Technical - Basic Grant
84.048
11420006205903
17,494
IDEA-B Preschool*
84.173
11661001205903661(
(1) Federal Grantor/ Pass-Through Grantor/ Program Title U. S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Passed Through State Department of Education: Medicaid Total U. S. Department of Health and Human Services U. S. DEPARTMENT OF EDUCATION Passed Through State Department of Education: ESEA Title I Part A - Improving Basic Programs
$
244,290
9,084
Title Ill Part A English Language Acquisition and Language Enhancer 84.365
11671001205903
10,902
ESEA Title 11 Part A - Teacher & Principal Training & Recruiting
84.367a
11694501205903
84,964
ARRA - Title 11 Part D Subpart 1-Enhancing Education Through Techi 84.386
10553001205903
220
ARRA - ESEA, Title 1, Part A - Improving Basic Programs *
84.389
10551001205903
28.744
ARRA - IDEA-Part B Formula *
84.391
10554001205903
97.717
ARRA - IDEA Part B, Preschool *
84.392
10555001205903
(1.123)
84.394 84.394
10557001205903 11557001205903
ARRA of 2009 Title XIV State Fiscal Stabilization Fund • ARRA of 2009 Title XIV State Fiscal Stabilization Fund • Total CFDA Number 84.394 Total Passed Through Slate Department of Education Total U. S. Department of Education U. S. DEPARTMENT OF AGRICULTURE Passed Through State Department of Education: School Breakfast Program * National School Lunch Program * National School Lunch Program (Non-cash) * Total CFDA Number 10.555 Total Passed Through State Department of Education Total U. S. Department of Agriculture ror E!( El ..1WS F FIDERPL A1NARfS
10.553
71401001
10.555 10.555
71301001 205-903
$
72,558 513.382 585.940 1,539,040 1.539.040
$
132,546 488,127 61,032 549,159 681,705 681,705
Z650 35
* Indicates clustered program under OMB Circular A-1 33 Compliance Supplement The accompanying notes are an integral part of this schedule.
58
INGLESIDE INDEPENDENT SCHOOL DISTRICT NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED AUGUST 31, 2011
Basis of Presentation The accompanying schedule of expenditures of federal awards includes the federal grant activity of Ingleside Independent School District and is presented on the modified accrual basis of accounting. 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the general purpose financial statements.
59
EXHIBIT K-2
INGLESIDE INDEPENDENT SCHOOL DISTRICT SCHEDULE OF REQUIRED RESPONSES TO SELECTED SCHOOL FIRST INDICATORS AS OF AUGUST 31, 2011
Data Control Codes SF2
SF4
SF5
SF9
Responses Were there any disclosures in the Annual Financial Report and/or other sources of information concerning default on bonded indebtedness obligations?
No
Did the district receive a clean audit? - Was there an unqualified opinion in the Annual Financial Report?
Yes
Did the Annual Financial Report disclose any instances of material weaknesses in internal controls?
No
Was there any disclosure in the Annual Financial Report of material noncompliance?
No
SF10 What was the total accumulated accretion on capital appreciation bonds included in the government-wide financial statements at fiscal year-end?
60
$
376,882
