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Hays Consolidated Independent
School District
Kyle, Texas
Comprehensive
Annual Financial Report
For the Fiscal year Ended August 31, 2009
Prepared by the Financial Services Department
Carter Scherff, CPA Deputy Superintendent Annette Folmar, CPA
Executive Director of Finance Janet Meyer, CPA Assistant Director
of Finance
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HAYS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT COMPREHENSIVE
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED AUGUST 31, 2009
TABLE OF CONTENTS Exhibit Page INTRODUCTORY SECTION Letter of
Transmittal i Certificate of Achievement iv Administrative
Organizational Chart v List of Elected and Appointed Officials vi
Certificate of Board vii FINANCIAL SECTION Independent Auditors’
Report 1 Management’s Discussion and Analysis 3 Schedule Basic
Financial Statements: Government-wide Financial Statements: A-1
Statement of Net Assets 9 B-1 Statement of Activities 10
Governmental Fund Financial Statements: C-1 Balance Sheet –
Governmental Funds 12 C-2 Reconciliation of the Governmental Funds
Balance Sheet to the Statement of Net Assets 14 C-3 Statement of
Revenues, Expenditures, and Changes in Fund Balance – Governmental
Funds 15 C-4 Reconciliation of the Governmental Funds Statement of
Revenues, Expenditures, and Changes in Fund Balances to the
Statement of Activities 17 Proprietary Fund Financial Statements:
D-1 Statement of Net Assets – Proprietary Funds 18 D-2 Statement of
Revenues, Expenses, and Changes in Fund Net Assets – Proprietary
Funds 19 D-3 Statement of Cash Flows – Proprietary Funds 20
Fiduciary Fund Financial Statements: E-1 Statement of Fiduciary
Net Assets 21 E-2 Statement of Changes in Fiduciary Fund Net Assets
22 Notes to the Basic Financial Statements 23 Required
Supplementary Information: G-1 Schedule of Revenues, Expenditures
and Changes in Fund Balance Budget and Actual – General Fund 45
Notes to Required Supplementary Information 46 Combining
Statements: Nonmajor Governmental Funds: H-1 Combining Balance
Sheet 47 H-2 Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances 54
Internal Service Funds: H-6 Combining Statement of Net Assets 61
H-7 Combining Statement of Revenues, Expenses, and Changes in Fund
Net Assets 62 H-8 Combining Statement of Cash Flows 63 Nonmajor
Enterprise Funds: H-6 Combining Statement of Net Assets 64 H-7
Combining Statement of Revenues, Expenses, and Changes in Fund Net
Assets 66 H-8 Combining Statement of Cash Flows 68
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HAYS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT COMPREHENSIVE
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED AUGUST 31, 2009 (Continued)
TABLE OF CONTENTS Schedule Page Required TEA Schedules: J-1
Schedule of Delinquent Taxes Receivable 70 J-2 Schedule of
Expenditures for Computations of Indirect Cost for 2010 – 2011 72
J-4 Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual – Child Nutrition Program 73 J-5 Schedule of
Revenues, Expenditures and Changes in Fund Balance Budget and
Actual – Debt Service Fund 74 STATISTICAL SECTION (Unaudited)
Government-wide Information: 1 Net Assets by Component 75 2
Expenses, Program Revenues and Net (Expense)/Revenue 77 3 General
Revenues and Total Change in Net Assets 79 Fund Information: 4 Fund
Balances – Governmental Funds 81 5 Changes in Fund Balances –
Governmental Funds 83 6 Total Assessed and Net Taxable Value of
Taxable Property 89 7 Property Tax Rates – Direct and Major
Overlapping Governments 90 8 Principal Property Taxpayers 92 9
Property Tax Levies and Collections 93 10 Outstanding Debt by Type
94 11 Ratio of Net General Bonded Debt to Taxable Assessed
Valuation and Net Bonded Debt per Capita 95 12 Estimated General
Obligation Overlapping Debt Statement 97 13 Demographic and
Economic Statistics 98 14 Major Employers 99 15 Full-time
Equivalent District Employees by Type 100 16 Teacher Data 101 17
Expenditures, Enrollment and per Pupil Cost 103 18 Expenses of
Governmental Activities, Enrollment and Per Pupil Cost 104 19
School Building Information 105 20 Fund Balance and Cash Flow
Calculation Worksheet (Unaudited) 106 Exhibit FEDERAL AWARDS
SECTION Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing
Standards 107 Report on Compliance with Requirements Applicable to
Each Major Program and Internal Control Over Compliance in
Accordance with OMB Circular A-133 109 K-1 Schedule of Expenditures
of Federal Awards 111 Notes to Schedule of Expenditures of Federal
Awards 113 Schedule of Findings and Questioned Costs 114 Summary
Schedule of Prior Audit Findings 115
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INTRODUCTORY SECTION
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i
January 19, 2010 Mrs. Patricia J. Wood, President Board of
Trustees Hays Consolidated Independent School District 21003 IH 35
Kyle, TX 78640 Dear Mrs. Wood and Members of the Board: The
comprehensive annual financial report of the Hays Consolidated
Independent School District (the District) is submitted for the
year ended August 31, 2009. The District’s Financial Services
Department prepared the report last year, subsequently earning the
Certificate of Achievement for Excellence in Financial Reporting
from the Government Finance Officers Association (GFOA).
Responsibility for both the accuracy of the presented data and the
completeness and fairness of the presentation, including all
disclosures, rests with the District. In our opinion, we believe
the data, as presented, is accurate in all material aspects; that
they are presented in a manner designed to fairly set forth the
financial position and results of operations of the District as
measured by the financial activity of its various funds; and that
all disclosures necessary to enable the reader to gain an
understanding of the District’s financial position have been
included in this report. The comprehensive annual financial report
is presented in three sections: Introductory, Financial and
Statistical. The Introductory section includes this transmittal
letter, the District’s organizational chart and a list of principal
officials. The management’s discussion and analysis in the
Financial section provides an overview of the financial position
and results of operations for the year. The Financial section also
includes the basic financial statements, the notes to the financial
statements and other supplementary information. The Statistical
section includes selected financial and demographic information,
generally presented on a multi-year basis. The financial statements
of the District have been audited by Pattillo, Brown and Hill,
L.L.P., a firm of licensed certified public accountants. The goal
of the independent audit is to provide reasonable assurance that
the financial statements of the District are free of material
misstatement. The independent audit involves examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements; assessing the accounting principles used and
significant estimates made by management; and evaluating the
overall financial statement presentation. The independent auditors
concluded, based upon the audit, that there was a reasonable basis
for rendering an unqualified opinion that the District’s financial
statements for the fiscal year ended August 31, 2009, and are
fairly presented in conformity with GAAP. The independent auditors’
report is presented as the first component of the Financial section
of this report. THE REPORTING ENTITY AND ITS SERVICES Hays
Consolidated Independent School District was formed on May 6, 1967,
through the consolidation of Kyle Independent School District, Buda
County-Line Independent School District and Wimberley Rural High
School District. The Wimberley School District withdrew from the
consolidation in September 1986 and created Wimberley Independent
School District. The District comprises 212 square miles of land,
or approximately half of the total area of Hays County, with small
portions extending into Travis and Caldwell Counties. The District
includes the cities of Kyle and Buda, both of which are located
within Hays County. The cities of Kyle and Buda are located on
Interstate Highway 35 between Austin and San Marcos. The District
also includes the cities of Uhland, Niederwald and Driftwood.
21003 N IH 35, Kyle, Texas 78640Phone (512) 268-2141
Fax (512) 268-2147
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The District is governed by a seven member Board of Trustees
(the Board). The Trustees serve three-year staggered terms with
at-large elections being held every year. Monthly meetings of the
Board are posted and advertised as prescribed under state law so
that the Board may fulfill its charge to the students, parents,
staff, and taxpayers of the District. Special meetings or study
sessions are scheduled as needed. The Board has final control over
all school matters except as limited by state law. The Board of
Trustees adopted its mission statement, beliefs and goals and set
high standards for the students and staff of the District. They are
reviewed and revised by the Board periodically. Mission Statement –
Hays CISD prepares students to become responsible, productive, and
informed citizens. Beliefs – We believe:
• In the total development and uniqueness of each student. •
Each student can achieve to higher levels when challenged and
motivated. • Each student can be successful if given appropriate
amounts of time and a variety of teaching strategies
to match individual student’s learning styles. • Learning is a
lifelong process. • Learning occurs best in a safe, supportive
environment.
Goals for 2009-2010 – The District will:
• Commission a study team to review Academy High School programs
and services and formulate recommendations to the
superintendent.
• Identify and encourage areas for collaboration – in particular
student-related and community service – between Hays High and
Lehman High schools.
• Identify, encourage and educate new community leadership
throughout the District. The District provides a well-rounded
program of public education for children from pre-kindergarten
through grade 12. In addition to basic instructional programs, the
District offers special education, gifted and talented,
Bilingual/ESL, remedial, college preparatory, and career and
technical programs. The District is fully accredited by the Texas
Education Agency (TEA). The District operates 11 elementary
schools, 5 middle schools, 2 traditional high schools, 1
alternative education program high school, and 1 disciplinary
alternative education program campus. Enrollment for the 2008-09
year was 13,881, an increase of approximately 6.9% over the
previous year. In May 2008, the Hays CISD voters approved a bond
package of $86.7 million to address enrollment growth. The package
included two new elementary schools, a new middle school and
District-wide improvements. Simon Middle School opened in August
2009. Construction of both Ralph Pfluger Elementary School and
Carpenter Hill Elementary School will be completed in the summer of
2010. ECONOMIC INFORMATION Hays County (the County), created in
1843, is located in south central Texas and is a component of the
Austin Metropolitan Statistical Area. Hays County is traversed by
Interstate Highway 35, U. S. Highway 290, State Highways 21 and 123
and 10 farm-to-market roads with the City of San Marcos as the
county seat. The 2000 census was 97,589, increasing 31,975, or
48.73% since 1990. The Hays Consolidated Independent School
District covers land which is considered ranching and recreational
area. Residential and resort development has recently begun to
increase in the northern parts of the District. The District is
centered over the City of Kyle, a local retail and shipping center,
with a 2000 census population of 5,314, increasing 3,089, or
138.83% since 1990. Kyle and Buda are located on Interstate Highway
35 between San Marcos and Austin.
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iv
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HAYS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT Administrative
Organizational Chart
v
Students Parents Citizens
Board of Trustees
Superintendent
Assistant Superintendent
Human Resources
Assistant Superintendent Info., Com., Student Svcs
Deputy Superintendent
Director Student Services
Director Health Services
Executive Director Finance
Executive Director Maintenance and
Operations
Director New Construction
Executive Director Technology
Executive Director Human Resources
Director Transportation
Director Maintenance
Director Operations
Director Child Nutrition
Director Purchasing
Assistant Superintendent
Curric. & Instruction
Principals
Director Community Partnerships
Executive Director Special Education
Executive Director Curriculum &
Instruction
Executive Director Assessment
Director Career & College Readiness
Director Bilingual/ESL
Director Library/ Media Services
Athletic & Music Directors
Director Professional Development
Director Management
Information Systems
Director Performing Arts Center
Director Elementary Academic Services /
RTI
Director Secondary Academic Services
Director Federal Programs
Director Network Services
Director Instructional Technology
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HAYS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT School Board and
Administrators
Board of Trustees Patti Wood President Mark Jones Vice President
Bert Bronaugh Secretary Melissa Villarreal Trustee Willie Tenorio
Trustee Ralph Pfluger Trustee Chip DuPont Trustee
Administration Jeremy Lyon, Ph. D. Superintendent of Schools
Carter Scherff Deputy Superintendent Julie Jerome Assistant
Superintendent Carolyn Hitt Assistant Superintendent Kimbroly Pool,
Ed. D. Assistant Superintendent
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CERTIFICATE OF BOARD
Hays Consolidated Independent School District Hays 105906
Name of School District County Co.-Dist. Number We, the
undersigned, certify that the attached annual financial reports of
the above-named school district were reviewed and
(check one) _____ approved _____ disapproved for the year ended
August 31, 2009, at a meeting of the Board of Trustees of
such school district on the 25th day of January, 2010.
Signature of Board Secretary Signature of Board President
If the Board of Trustees disapproved of the auditors’ report,
the reason(s) for disapproving it is (are): (attach list as
necessary)
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FINANCIAL SECTION
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INDEPENDENT AUDITORS’ REPORT
Board of Trustees of Hays Consolidated Independent School
District Kyle, Texas We have audited the accompanying financial
statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund
information of Hays Consolidated Independent School District (the
“District”), as of and for the year ended August 31, 2009, which
collectively comprise the District’s basic financial statements as
listed in the table of contents. These financial statements are the
responsibility of the District’s management. Our responsibility is
to express opinions on these financial statements based on our
audit. We conducted our audit in accordance with auditing standards
generally accepted in the United States of America and the
standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United
States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
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, the business-type activities, each major fund, and the
aggregate remaining fund information of Hays Consolidated
Independent School District as of August 31, 2009, 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.
1
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ALBUQUERQUE, NM (505) 266-5904
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In accordance with Government Auditing Standards, we have also
issued our report dated January 19, 2010, on our consideration of
the District’s internal control over financial reporting and on our
tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements, and other matters. The
purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on 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.
The Management’s Discussion and Analysis and budgetary
comparison information on pages 3
through 8 and 45 through 46, 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 conducted for the purpose of forming opinions on
the financial statements that collectively comprise the District’s
basic financial statements. The introductory section, combining and
individual nonmajor fund financial statements, TEA schedules,
budgetary comparison schedules and statistical section are
presented for the purposes of additional analysis and are not a
required part of the basic financial statements. The accompanying
Schedule of Expenditures of Federal Awards is presented for
purposes of additional analysis as required by U. S. Office of
Management and Budget Circular A-133, Audits of States, Local
Governments and Nonprofit Organizations, and is also not a required
part of the basic financial statements of Hays Consolidated
Independent School District. The combining and individual nonmajor
fund financial statements, required TEA schedules, budgetary
comparison schedules and accompanying Schedule of Expenditures of
Federal Awards have been subjected to the auditing procedures
applied in the audit of the basic financial statements and, in our
opinion, are fairly stated in all material respects in relation to
the basic financial statements taken as a whole. The introductory
and statistical sections have not been subjected to the auditing
procedures applied in the audit of the basic financial statements
and, accordingly, we express no opinion on it.
January 19, 2010
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HAYS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
AUGUST 31, 2009 As Management of the Hays Consolidated
Independent School District, we offer readers of the District’s
financial statements this narrative overview and analysis of the
financial activities of the Hays Consolidated Independent School
District for the fiscal year ended August 31, 2009. We encourage
readers to consider the information presented here in conjunction
with the District’s financial statements, which follow this
section. FINANCIAL HIGHLIGHTS
• The District held a bond election in May 2008, at which voters
authorized the issuance of $86.7 million dollars of unlimited tax
school building bonds. The bond package included two elementary
schools, a new middle school, new buses and new technology,
improvements to existing campuses, middle school track
improvements, the purchase of land and infrastructure for future
sites, and parent drop off and parking improvements at several
campuses.
• A product of the 2008 bond program, Simon Middle School opened
in August 2009. Two additional
schools, Ralph Pfluger Elementary and Carpenter Hill Elementary,
will open in August 2010. • The District maintained its property
tax rate of $1.4613 for 2009-10. The tax rate for Hays CISD has
remained constant since 2007-08. Prior to that, the 2006-07
total tax rate was $1.7780 and the 2005-06 rate was $1.8763.
• At the end of the current fiscal year, fund balance for the
general fund was $22,098,480, with
$21,068,679 undesignated, unreserved. Undesignated, unreserved
fund balance represents 21 percent of total general fund
expenditures.
• For the seventh year in a row, Hays CISD earned a rating of
Superior Achievement by the Texas
Education Agency under its Financial Integrity Rating System of
Texas (FIR$T). Superior Achievement is the highest rating possible
and is based on 24 criteria used to determine the overall financial
health and stability of school districts throughout Texas.
OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and
analysis is intended to serve as an introduction to the Hays
Consolidated Independent School District’s basic financial
statements. The District’s basic financial statements comprise
three components: 1) government-wide financial statements, 2) fund
financial statements, and 3) notes to the financial statements.
This report also contains other required supplementary information
in addition to the basic financial statements themselves.
Government-wide financial statements. The government-wide financial
statements are designed to provide readers with a broad overview of
the Hays Consolidated Independent School District’s finances in a
manner similar to a private-sector business. The statement of net
assets presents information on all of the District’s assets and
liabilities, with the difference between the two reported as net
assets. Over time, increases or decreases in net assets may serve
as a useful indicator of whether the financial position of the
District is improving or deteriorating. The statement of activities
presents information showing how the government’s net assets
changed during the most recent fiscal year. All changes in net
assets are reported as soon as the underlying event giving rise to
the change occurs, regardless of the timing of related cash flows.
Thus revenues and expenses are reported in this statement for some
items that will only result in cash flows in future fiscal periods
(e.g. uncollected taxes).
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Both of the government-wide financial statements distinguish
functions of the District that are principally supported by taxes
and intergovernmental revenues (governmental activities). The
governmental activities of the District are designed to educate and
benefit the children of the community. Functional codes for Texas
school districts are uniform throughout the state. They include
instruction and instructional-related services, instructional and
school leadership, support services for students, administrative
support services, non-student based support services, ancillary
services, debt service and capital outlay for facilities and
construction. Fund financial statements. A fund is a grouping of
related accounts that is used to maintain control over resources
that have been segregated for specific activities or objectives.
The Hays Consolidated Independent School District, like other state
and local governments, uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. The
fund financial statements provide more detailed information about
the District’s most significant funds and not the District as a
whole.
• Some funds are required by State law and/or bond covenants. •
Other funds may be established by the Board to control and manage
money for particular purposes or
to show that it is properly using certain taxes or grants. All
of the funds of the Hays Consolidated Independent School District
can be divided into three categories: governmental funds,
proprietary funds, and fiduciary funds. Governmental funds.
Governmental funds are used to account for essentially the same
functions reported as governmental activities in the
government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial
statements focus on near-term inflows and outflows of expendable
resources, as well as on balances of spendable resources available
at the end of the fiscal year. Such information may be useful in
evaluating a government’s near-term financing requirements. Because
the focus of governmental funds is narrower than that of the
government-wide financial statements, it is useful to compare the
information presented for governmental funds with similar
information presented for governmental activities in the
government-wide financial statements. By doing so, readers may
better understand the long-term impact of the government’s
near-term financial decisions. Both the governmental fund balance
sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balance provide a reconciliation
to facilitate this comparison between governmental funds and
governmental activities. The District maintains individual
governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures, and changes in fund balances
for the general fund, the debt service fund, and the capital
projects fund that are considered to be major funds. Data from the
other individual governmental funds are combined into a single,
aggregated presentation. Individual fund data for each of these
non-major governmental funds is provided in the form of combining
statements elsewhere in this report. Proprietary funds. Proprietary
funds provide the same type of information as the government-wide
financial statements, only in more detail. There are two
proprietary fund types. Enterprise funds are used to report the
same functions presented as business-type activities in the
government-wide financial statements. The District uses enterprise
funds for childcare operations and health clinic services. The
second type of proprietary fund is the internal service fund.
Internal service funds are an accounting device used to accumulate
and allocate costs internally among the various functions. The
District uses internal service funds for printing services and to
report activities outstanding from its previously self-funded
workers’ compensation program. Fiduciary funds. Fiduciary funds are
used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not reflected in the
government-wide financial statement because the resources of those
funds are not available to support the District’s own programs. The
District is the trustee, or fiduciary, for these funds and is
responsible for ensuring that the assets reported in these funds
are used for their intended purpose. All of the District’s
fiduciary activities are reported in a separate statement of
fiduciary net assets. These activities are excluded from the
District’s government-wide financial statements because the
District cannot use these assets to finance its operations. Notes
to the financial statements. The notes provide additional
information that is essential to a complete understanding of the
data provided in the government-wide and fund financial
statements.
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GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net assets
may serve over time as a useful indicator of a government’s
financial position. In the case of the Hays Consolidated
Independent School District, assets exceeded liabilities by
$14,216,750 as of August 31, 2009. The District’s total net assets
increased $39,831 over the prior year.
2009 2008 2009 2008 2009 2008
Current and other assets 106,322,420$ 138,530,414$ 221,655$
182,205$ 106,544,075$ 138,712,619$ Capital assets 271,853,374
245,698,373 - - 271,853,374 245,698,373
Total assets 378,175,794 384,228,787 221,655 182,205 378,397,449
384,410,992
Long-term liabilities 335,864,777 343,653,348 - - 335,864,777
343,653,348 Other liabilities 28,278,427 26,540,950 37,495 39,775
28,315,922 26,580,725 Total liabilities 364,143,204 370,194,298
37,495 39,775 364,180,699 370,234,073
Net assets: Invested in capital assets, net of related debt
10,685,595 2,307,570 - - 10,685,595 2,307,570 Restricted 573,209
199,357 - - 573,209 199,357 Unrestricted 2,773,786 11,527,562
184,160 142,430 2,957,946 11,669,992
Total net assets 14,032,590$ 14,034,489$ 184,160$ 142,430$
14,216,750$ 14,176,919$
Governmental Activities Business-type Activities
TABLE 1
HAYS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT
NET ASSETS
Totals
A portion of the District’s net assets reflects its investment
in capital assets (e.g. land, buildings, machinery, and equipment)
less any related debt used to acquire those assets that are still
outstanding. The District uses these capital assets to provide
services to students; consequently, these assets are not available
for future spending. Although the District’s investment in its
capital assets is reported net of related debt, it should be noted
that the resources needed to repay this debt must be provided from
other sources, since the capital assets themselves cannot be used
to liquidate these liabilities. An additional portion of the
District’s net assets represents resources that are subject to
external restrictions on how they may be used (e.g. debt service).
This surplus is not an indication that the District has significant
resources available to meet financial obligations next year, but
rather the result of having long-term commitments that are less
than currently available resources. Governmental activities.
Program and general revenues for the year totaled $140,742,439, a
6% increase over the prior year. Expenses for the year totaled
$140,702,608 which is an increase of 9% from the prior year. Key
elements of the increase or decrease are shown in the following
table:
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2009 2008 2009 2008 2009 2008
REVENUES Program revenues: Charges for services 3,636,000$
3,148,652$ 1,071,202$ 810,508$ 4,707,202$ 3,959,160$ Operating
grants and contributions 15,048,930 13,761,277 - - 15,048,930
13,761,277 General revenues: Maintenance and operations taxes
35,917,979 32,024,233 - - 35,917,979 32,024,233 Debt service taxes
14,566,881 12,939,907 - - 14,566,881 12,939,907 Grants and
contributions not restricted 68,430,655 67,548,779 - - 68,430,655
67,548,779 Investment earnings 1,408,635 2,808,175 - - 1,408,635
2,808,175 Miscellaneous local and intermediate 662,157 206,440 - -
662,157 206,440
Total revenues 139,671,237 132,437,463 1,071,202 810,508
140,742,439 133,247,971
EXPENSES Instruction 70,698,911 65,519,854 - - 70,698,911
65,519,854 Instructional resources and media services 2,405,631
1,945,468 - - 2,405,631 1,945,468 Curriculum and staff development
1,480,294 1,631,962 - - 1,480,294 1,631,962 Instructional
leadership 1,206,655 1,021,230 - - 1,206,655 1,021,230 School
leadership 5,881,895 5,597,283 - - 5,881,895 5,597,283 Guidance,
counseling and evaluation services 3,591,055 3,369,494 - -
3,591,055 3,369,494 Social work services 276,329 143,600 - -
276,329 143,600 Health services 1,472,429 1,392,086 26,325 22,638
1,498,754 1,414,724 Student (pupil) transportation 7,774,751
8,185,517 - - 7,774,751 8,185,517 Food services 5,489,368 5,398,699
- - 5,489,368 5,398,699 Co-curricular/extracurricular activities
2,884,748 2,674,290 - - 2,884,748 2,674,290 General administration
2,796,386 2,991,317 - - 2,796,386 2,991,317 Plant maintenance and
operations 12,488,161 12,200,011 - - 12,488,161 12,200,011 Security
and monitoring services 939,220 846,175 - - 939,220 846,175 Data
processing services 2,231,685 1,791,751 - - 2,231,685 1,791,751
Community services 421,358 472,218 - - 421,358 472,218 Debt service
- interest and fees 16,953,909 12,853,787 - - 16,953,909 12,853,787
Facilities acquisition and construction - 3,369 - - - 3,369
Payments to fiscal agent/SSA 166,125 115,285 - - 166,125 115,285
Other intergovernmental charges 514,226 - - - 514,226 - Childcare
services - - 1,003,147 760,167 1,003,147 760,167
Total expenses 139,673,136 128,153,396 1,029,472 782,805
140,702,608 128,936,201
INCREASE (DECREASE) IN NET ASSETS 1,899)( 4,284,067 41,730
27,703 39,831 4,311,770
NET ASSETS, BEGINNING 14,034,489 9,750,422 142,430 114,727
14,176,919 9,865,149
NET ASSETS, ENDING 14,032,590$ 14,034,489$ 184,160$ 142,430$
14,216,750$ 14,176,919$
Governmental Activities Business-type Activities
TABLE 2
HAYS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT
CHANGES IN NET ASSETS
Totals
6
-
7
Property taxes, including penalties and interest, increased 12%
and accounted for 36% of total 2009 revenues. This revenue increase
was the result of additional property values related to new
businesses and residential construction. Business-type Activities.
Revenues of the District’s business-type activities represent
$1,003,147 from childcare operations at District campuses and
$22,638 from health clinic operations. FINANCIAL ANALYSIS OF THE
DISTRICT’S FUNDS As noted earlier, the Hays Consolidated
Independent School District uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements,
bond covenants, and segregation for particular purposes.
Governmental funds. The focus of the District’s governmental funds
is to provide information on near-term inflows, outflows, and
balances of expendable resources. Such information is useful in
assessing the District’s financing requirements. In particular,
unreserved, undesignated fund balance may serve as a useful measure
of a government’s net resources available for spending at the end
of the fiscal year. As of the end of the current fiscal year, the
District’s governmental funds reported combined ending fund
balances of $82,666,798. A complete listing of fund balances at
August 31, 2009, is shown in the following table:
Fiscal YearFund Balances 2009 % of Total
General Fund, Unreserved/Designated 1,029,801$ 1.2%General Fund,
Unreserved/Undesignated 21,068,679 25.5%Food Service,
Unreserved/Undesignated 573,209 0.7%2008 Capital Projects,
Unreserved/Undesignated 46,112,705 55.8%2006 Capital Projects,
Unreserved/Undesignated 5,537,938 6.7%2004 Capital Projects,
Unreserved/Undesignated 668,479 0.8%Local Capital Projects,
Unreserved/Undesignated 1,098,870 1.3%Debt Service, Reserved for
Retirement of Long-term Debt 6,577,117 8.0%
Total Fund Balances 82,666,798$ 100.0% The General Fund
increased its total fund balance by $3,833,747. Expenditures were
less than anticipated in the areas of payroll costs and supplies.
The District’s total capital projects fund balance of $53,417,992
is primarily due to proceeds from the 2008 bond program. The bond
package included two elementary schools, a new middle school, new
buses and new technology, improvements to existing campuses, middle
school track improvements, the purchase of land and infrastructure
for future sites, and parent drop off and parking improvements at
campuses. Simon Middle School was completed before the end of
2008-09 and construction is underway on the two new elementary
schools that are due to open in August 2010. Construction fund
balances remaining are due to ongoing construction projects,
interest earnings, project savings, and retainage on completed
projects. GENERAL FUND BUDGETARY HIGHLIGHTS Over the course of the
year, actual expenditures were less than final budget amounts for
the General Fund. Positive variances were widespread, including the
functional categories of instruction, transportation, and
maintenance. Also, resources available were $89,588 above the final
budgeted amount.
-
8
CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets. At the
end of 2009, the District had invested $271,853,374 in a broad
range of capital assets, including land, equipment, buildings, and
vehicles. This amount represents a net increase (including
depreciation, additions and deductions) of $26,155,001 over last
year. A product of the 2008 bond program, Simon Middle School
opened in August 2009. Two additional schools, Ralph Pfluger
Elementary and Carpenter Hill Elementary, will open in August 2010.
Additional information on the District’s capital assets can be
found in Note III, D on pages 34 and 35 of this report. Long-term
Debt. At year-end the District has $340,451,123 in bonds
outstanding. Additional information about the District’s debt is
presented in Note III, E through I on pages 35 through 40 of this
report. The Hays Consolidated Independent School District maintains
an “AAA” rating from Standard & Poor’s and Fitch for general
obligation debt based upon the guarantee from the State of Texas
Permanent School Fund (PSF). On July 8, 2008, Fitch Ratings
upgraded the underlying debt rating of the District from “A” to
“A+.” On July 11, 2008, Standard & Poor’s Ratings Services
upgraded the underlying debt rating of the District from “A” to
“A+.” ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
• The District is in the process of developing a strategic plan
for all areas of operations that will guide the allocation of
resources for the next five years and beyond.
• The District’s 2009-10 enrollment for budget purposes was
14,542, an increase of 4.8% from 2008-09.
Enrollment for 2009-10 was 14,588 on January 11, 2010. • The
2009-10 budget addressed Board priorities for employee
compensation, funding the needs
associated with the District’s growth, the opening of Simon
Middle School. The budget also included funding for expansion of
high school career and technical course offerings.
• The District’s 2009-10 total tax rate remained unchanged at
$1.4613 per $100/valuation, with a
Maintenance and Operations tax of $1.04 and Interest and Sinking
of $0.4213. The 2006 Special Session of the Texas Legislature
mandated a compression of the local maintenance tax rate to $1.04.
In 2006-07, an additional four cents was added after compression to
maximize the District’s Tier II funding from the state.
The largest increases in the 2009-10 budget were for additional
teachers to address enrollment growth, compensation increases for
all employees, and opening of a new school. If budget estimates are
realized, the District’s undesignated, unreserved general fund
balance is not expected to change significantly by the close of
2009-10. 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 Financial Services Department at (512) 268-2141, or
log on to www.hayscisd.net.
-
BASIC FINANCIAL STATEMENTS
-
EXHIBIT A-1HAYS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT
STATEMENT OF NET ASSETSAUGUST 31, 2009
1 2 3
ControlData
CodesGovernmental
Activities ActivitiesType
Business
Total
Primary Government
ASSETS188,273 297,270 485,543 Cash and Cash Equivalents $ $
$1110
- 99,073,160 99,073,160 Current Investments1120 - 2,205,208
2,205,208 Property Taxes Receivable (Delinquent)1220 - (663,570)
(663,570)Allowance for Uncollectible Taxes1230 - 3,090,437
3,090,437 Due from Other Governments1240 - 53,142 53,142 Accrued
Interest1250
33,382 12,239 45,621 Other Receivables, net1290 - 130,519
130,519 Deferred Expenses1410 - 2,124,015 2,124,015 Capitalized
Bond and Other Debt Issuance Costs1420
Capital Assets: - 16,034,790 16,034,790 Land1510 - 238,057,618
238,057,618 Buildings, Net1520 - 10,277,425 10,277,425 Furniture
and Equipment, Net1530 - 7,483,541 7,483,541 Construction in
Progress1580
Total Assets1000 378,175,794 221,655 378,397,449
LIABILITIES4,115 6,534,290 6,538,405 Accounts Payable2110 -
642,673 642,673 Interest Payable2140 - 944,081 944,081 Payroll
Deductions & Withholdings2150
33,380 3,468,466 3,501,846 Accrued Wages Payable2160 - 8,789,648
8,789,648 Due to Other Governments2180 - 201,981 201,981 Accrued
Expenses2200 - 113,965 113,965 Deferred Revenues2300
Noncurrent Liabilities - 7,583,323 7,583,323 Due Within One
Year2501 - 335,864,777 335,864,777 Due in More Than One
Year2502
Total Liabilities2000 364,143,204 37,495 364,180,699
NET ASSETS - 10,685,595 10,685,595 Invested in Capital Assets,
Net of Related Debt3200 - 573,209 573,209 Restricted for Federal
and State Programs3820
184,160 2,773,786 2,957,946 Unrestricted Net Assets3900
Total Net Assets3000 14,032,590 184,160 14,216,750 $ $ $
9
The notes to the financial statements are an integral part of
this statement.
-
HAYS CONSOLIDATED INDEPENDENT SCHOOL DISTRICTSTATEMENT OF
ACTIVITIES
FOR THE YEAR ENDED AUGUST 31, 2009
ControlData
Codes Expenses ServicesCharges for
ContributionsGrants andOperating
Program Revenues431
Primary Government:GOVERNMENTAL ACTIVITIES:
806,242 70,698,911 8,699,987 Instruction $ $ $11 - 2,405,631
80,499 Instructional Resources and Media Services12 - 1,480,294
263,982 Curriculum and Instructional Staff Development13 -
1,206,655 235,037 Instructional Leadership21 - 5,881,895 285,091
School Leadership23 - 3,591,055 417,007 Guidance, Counseling and
Evaluation Services31 - 276,329 14,281 Social Work Services32 -
1,472,429 69,319 Health Services33 - 7,774,751 269,563 Student
(Pupil) Transportation34
2,354,933 5,489,368 3,429,927 Food Services35274,927 2,884,748
84,664 Extracurricular Activities36
- 2,796,386 94,725 General Administration41199,898 12,488,161
321,925 Plant Maintenance and Operations51
- 939,220 11,029 Security and Monitoring Services52 - 2,231,685
483,202 Data Processing Services53 - 421,358 256,575 Community
Services61 - 16,943,725 - Debt Service - Interest on Long Term
Debt72 - 10,184 - Debt Service - Bond Issuance Cost and Fees73 -
166,125 32,119 Payments to Fiscal Agent/Member Districts of SSA93 -
514,226 - Other Intergovernmental Charges99
139,673,136 3,636,000 15,048,930 [TG] Total Governmental
Activities:
BUSINESS-TYPE ACTIVITIES:72,827 77,656 - Childcare - KES01
254,751 269,734 - Childcare - BES0260,732 55,444 - Childcare -
TES0387,616 76,622 - Childcare - SHES04
109,123 99,832 - Childcare - NES06156,853 138,598 - Childcare -
EGES07133,650 134,401 - Childcare - FES08
26,345 26,325 - School Based Health Clinic09169,305 150,860 -
All Remaining EF Funds Combined10
1,029,472 1,071,202 - [TB] Total Business-Type Activities:
[TP] TOTAL PRIMARY GOVERNMENT: 140,702,608 4,707,202 15,048,930
$ $ $DataControlCodes
General Revenues:Taxes:
Property Taxes, Levied for General PurposesMT Property Taxes,
Levied for Debt ServiceDT
Grants and Contributions not RestrictedGCInvestment
EarningsIEMiscellaneous Local and Intermediate RevenueMI
Total General RevenuesTR
Net Assets--BeginningChange in Net Assets
Net Assets--Ending
CNNB
NE
10The notes to the financial statements are an integral part of
this statement.
-
EXHIBIT B-1
Net (Expense) Revenue and
Activities ActivitiesBusiness Type
TotalGovernmental
Changes in Net Assets6 7 8
Primary Government
- (61,192,682) (61,192,682)$ $ $ - (2,325,132) (2,325,132) -
(1,216,312) (1,216,312) - (971,618) (971,618) - (5,596,804)
(5,596,804) - (3,174,048) (3,174,048) - (262,048) (262,048) -
(1,403,110) (1,403,110) - (7,505,188) (7,505,188) - 295,492 295,492
- (2,525,157) (2,525,157) - (2,701,661) (2,701,661) - (11,966,338)
(11,966,338) - (928,191) (928,191) - (1,748,483) (1,748,483) -
(164,783) (164,783) - (16,943,725) (16,943,725) - (10,184) (10,184)
- (134,006) (134,006) - (514,226) (514,226)
(120,988,206) - (120,988,206)
(4,829) - (4,829)(14,983) - (14,983)
5,288 - 5,288 10,994 - 10,994
9,291 - 9,291 18,255 - 18,255
(751) - (751)20 - 20
18,445 - 18,445
- 41,730 41,730
(120,988,206) 41,730 (120,946,476)
- 35,917,979 35,917,979 - 14,566,881 14,566,881 - 68,430,655
68,430,655 - 1,408,635 1,408,635 - 662,157 662,157
120,986,307 - 120,986,307
(1,899)14,034,489
14,032,590 $
41,730 142,430
184,160 $
39,831 14,176,919
14,216,750 $
11
-
HAYS CONSOLIDATED INDEPENDENT SCHOOL DISTRICTBALANCE SHEET
GOVERNMENTAL FUNDSAUGUST 31, 2009
ControlData
Codes GeneralFund Fund
Debt Service50
ProjectsCapital
6010
ASSETS - - - Cash and Cash Equivalents $ $ $1110
6,434,622 36,362,653 48,064,452 Investments - Current1120674,682
1,530,526 - Property Taxes - Delinquent1220
(244,062)(419,508) - Allowance for Uncollectible Taxes
(Credit)123035,505 2,220,000 - Due from Other Governments1240
- - 53,142 Accrued Interest125051,435 561,505 861,232 Due from
Other Funds1260
- 12,239 - Other Receivables1290 - 129,268 - Deferred
Expenditures1410
Total Assets1000 40,396,683 6,952,182 48,978,826 $ $ $
LIABILITIES AND FUND BALANCESLiabilities:
1,000 3,281,651 2,866,121 Accounts Payable $ $ $2110 - 944,081 -
Payroll Deductions and Withholdings Payable2150 - 3,201,754 -
Accrued Wages Payable2160 - 1,109,659 - Due to Other Funds2170 -
8,789,648 - Due to Other Governments2180 - - - Accrued
Expenditures2200
374,065 971,410 - Deferred Revenues2300
Total Liabilities2000 18,298,203 375,065 2,866,121
Fund Balances:Unreserved Designated For:
- 1,029,801 - Other Purposes3590Unreserved and Undesignated:
- 21,068,679 - Reported in the General Fund3600 - - - Reported
in Special Revenue Funds3610 - - 46,112,705 Reported in Capital
Projects Funds3620
6,577,117 - - Reported in Debt Service Funds3640
Total Fund Balances3000 22,098,480 6,577,117 46,112,705
Total Liabilities and Fund Balances4000 40,396,683 6,952,182
48,978,826 $ $ $
12
The notes to the financial statements are an integral part of
this statement.
-
EXHIBIT C-1
OtherFunds Funds
GovernmentalTotal
232,310 232,310 $ $8,106,333 98,968,060
- 2,205,208 - (663,570)
834,932 3,090,437 - 53,142
196,992 1,671,164 - 12,239
1,251 130,519
9,371,818 105,699,509 $ $
349,280 6,498,052 $ $ - 944,081
266,106 3,467,860 561,990 1,671,649
- 8,789,648 201,981 201,981 113,965 1,459,440
1,493,322 23,032,711
- 1,029,801
- 21,068,679 573,209 573,209
7,305,287 53,417,992 - 6,577,117
7,878,496 82,666,798
9,371,818 105,699,509 $ $
13
-
EXHIBIT C-2HAYS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO
THESTATEMENT OF NET ASSETS
AUGUST 31, 2009
82,666,798 $Total Fund Balances - Governmental Funds
133,701 1 The District uses internal service funds to charge the
costs of certain activities, such as The District uses internal
service funds to charge the costs of certain activities, such as
self-insurance and printing, to appropriate functions in other
funds. The assets and The District uses internal service funds to
charge the costs of certain activities, such as self-insurance and
printing, to appropriate functions in other funds. The assets and
liabilities of the internal service funds are included in
governmental activities in the
The District uses internal service funds to charge the costs of
certain activities, such as self-insurance and printing, to
appropriate functions in other funds. The assets and liabilities of
the internal service funds are included in governmental activities
in the statement of net assets. The net effect of this
consolidation is to increase net assets.
(103,822,956)2 Capital assets used in governmental activities
are not financial resources and therefore Capital assets used in
governmental activities are not financial resources and therefore
are not reported in governmental funds. At the beginning of the
year, the cost of these Capital assets used in governmental
activities are not financial resources and therefore are not
reported in governmental funds. At the beginning of the year, the
cost of these assets was $313,829,078 and the accumulated
depreciation was $68,130,705. In
Capital assets used in governmental activities are not financial
resources and therefore are not reported in governmental funds. At
the beginning of the year, the cost of these assets was
$313,829,078 and the accumulated depreciation was $68,130,705. In
addition, long-term liabilities, including bonds payable, are not
due and payable in the current period, and, therefore are not
reported as liabilities in the funds. The net effect
Capital assets used in governmental activities are not financial
resources and therefore are not reported in governmental funds. At
the beginning of the year, the cost of these assets was
$313,829,078 and the accumulated depreciation was $68,130,705. In
addition, long-term liabilities, including bonds payable, are not
due and payable in the current period, and, therefore are not
reported as liabilities in the funds. The net effect of including
the beginning balances for capital assets (net of depreciation) and
long-
Capital assets used in governmental activities are not financial
resources and therefore are not reported in governmental funds. At
the beginning of the year, the cost of these assets was
$313,829,078 and the accumulated depreciation was $68,130,705. In
addition, long-term liabilities, including bonds payable, are not
due and payable in the current period, and, therefore are not
reported as liabilities in the funds. The net effect of including
the beginning balances for capital assets (net of depreciation) and
long-term debt in the governmental activities is to decrease net
assets.
42,691,930 3 Current year capital outlays and long-term debt
principal payments are expenditures in Current year capital outlays
and long-term debt principal payments are expenditures in the fund
financial statements,but they should be shown as increases in
capital assets Current year capital outlays and long-term debt
principal payments are expenditures in the fund financial
statements,but they should be shown as increases in capital assets
and reductions in long-term debt in the government-wide financial
statements. The net
Current year capital outlays and long-term debt principal
payments are expenditures in the fund financial statements,but they
should be shown as increases in capital assets and reductions in
long-term debt in the government-wide financial statements. The net
effect of including the 2009 capital outlays and debt principal
payments is to increase net assets.
(8,982,358)4 The 2009 depreciation expense increases accumulated
depreciation. The net effect of The 2009 depreciation expense
increases accumulated depreciation. The net effect of the current
year's depreciation is to decrease net assets.
1,345,475 5 Some of the District's taxes will be collected after
year-end, but are not available to paySome of the District's taxes
will be collected after year-end, but are not available to payfor
the current period's expenditures, and therefore are reported as
deferred revenues Some of the District's taxes will be collected
after year-end, but are not available to payfor the current
period's expenditures, and therefore are reported as deferred
revenues in the funds The net effect of this recognition is to
increase net assets.
14,032,590 $19 Net Assets of Governmental Activities
14The notes to the financial statements are an integral part of
this statement.
-
HAYS CONSOLIDATED INDEPENDENT SCHOOL DISTRICTSTATEMENT OF
REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDSFOR THE YEAR ENDED AUGUST 31, 2009
ControlData
Codes FundGeneral
10
FundDebt Service
50
ProjectsCapital
60
REVENUES:38,292,030 14,811,648 775,924 Total Local and
Intermediate Sources $ $ $570065,285,186 7,214,128 - State Program
Revenues5800
315,415 - - Federal Program Revenues5900
Total Revenues5020 103,892,631 22,025,776 775,924
EXPENDITURES:Current:
57,337,894 - 648,369 Instruction00111,763,941 - 270,172
Instructional Resources and Media Services00121,231,265 - -
Curriculum and Instructional Staff Development00131,025,566 - -
Instructional Leadership00215,376,183 - 12,258 School
Leadership00233,160,293 - - Guidance, Counseling and Evaluation
Services0031
276,329 - - Social Work Services00321,384,662 - 3,039 Health
Services00336,608,773 - 695,943 Student (Pupil)
Transportation0034
- - 19,332 Food Services00352,757,495 - 25,197 Extracurricular
Activities00362,785,878 - - General Administration0041
12,588,066 - 166,115 Facilities Maintenance and
Operations0051884,595 - 10,584 Security and Monitoring
Services0052
1,086,170 - 19,456 Data Processing Services0053174,554 - -
Community Services0061
Debt Service:405,496 8,905,000 - Debt Service - Principal on
Long Term Debt0071110,316 15,184,917 - Debt Service - Interest on
Long Term Debt0072
9,184 1,000 - Debt Service - Bond Issuance Cost and
Fees0073Capital Outlay:
- - 31,499,259 Facilities Acquisition and
Construction0081Intergovernmental:
134,006 - - Payments to Fiscal Agent/Member Districts of
SSA0093514,226 - - Other Intergovernmental Charges0099
Total Expenditures6030 99,614,892 24,090,917 33,369,724
1100 Excess (Deficiency) of Revenues Over (Under)
Expenditures
4,277,739 (2,065,141) (32,593,800)
OTHER FINANCING SOURCES (USES): 58,334 - - Sale of Real and
Personal Property7912
- - - Transfers In7915(502,326) - - Transfers Out (Use)8911
Total Other Financing Sources (Uses) 7080 (443,992) - -
1200 Net Change in Fund Balances 3,833,747 (2,065,141)
(32,593,800)0100 Fund Balance - September 1 (Beginning) 18,264,733
8,642,258 78,706,505
3000 Fund Balance - August 31 (Ending) $ 22,098,480 $ 6,577,117
$ 46,112,705
15The notes to the financial statements are an integral part of
this statement.
-
EXHIBIT C-3
OtherFunds Funds
GovernmentalTotal
56,517,773 2,638,171 $ $74,656,232 2,156,918 8,816,719
8,501,304
13,296,393 139,990,724
64,163,970 6,177,707 2,231,125 197,012 1,453,841 222,576
1,205,730 180,164 5,414,333 25,892 3,402,453 242,160
276,329 - 1,387,725 24 8,436,839 1,132,123 5,490,931 5,471,599
2,783,128 436 2,785,878 -
12,783,620 29,439 898,504 3,325
1,981,694 876,068 421,358 246,804
9,310,496 - 15,295,233 -
10,184 -
33,031,823 1,532,564
166,125 32,119 514,226 -
16,370,012 173,445,545
(3,073,619) (33,454,821)
58,334 - 467,788 467,788
(502,326) -
467,788 23,796
(2,605,831) (33,431,025)10,484,327 116,097,823
$ 7,878,496 $ 82,666,798
16
-
EXHIBIT C-4HAYS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
EXPENDITURES,AND CHANGES IN FUND BALANCES TO THE STATEMENT OF
ACTIVITIES
FOR THE YEAR ENDED AUGUST 31, 2009
(33,431,025)$Total Net Change in Fund Balances - Governmental
Funds
39,041 The District uses internal service funds to charge the
costs of certain activities, such as The District uses internal
service funds to charge the costs of certain activities, such as
self-insurance and printing, to appropriate functions in other
funds. The net income The District uses internal service funds to
charge the costs of certain activities, such as self-insurance and
printing, to appropriate functions in other funds. The net income
(loss) of internal service funds are reported with governmental
activities. The net effect
The District uses internal service funds to charge the costs of
certain activities, such as self-insurance and printing, to
appropriate functions in other funds. The net income (loss) of
internal service funds are reported with governmental activities.
The net effect of this consolidation is to increase net assets.
42,691,930 Current year capital outlays and long-term debt
principal payments are expenditures in Current year capital outlays
and long-term debt principal payments are expenditures in the fund
financial statements, but they should be shown as increases in
capital assets and Current year capital outlays and long-term debt
principal payments are expenditures in the fund financial
statements, but they should be shown as increases in capital assets
and reductions in long-term debt in the government-wide financial
statements. The net effect
Current year capital outlays and long-term debt principal
payments are expenditures in the fund financial statements, but
they should be shown as increases in capital assets and reductions
in long-term debt in the government-wide financial statements. The
net effectof removing the 2009 capital outlays and debt principal
payments is to increase net assets. The components of this
difference are noted in Note II, A. on page 30.
(8,982,358)Depreciation is not recognized as an expense in
governmental funds since it does not Depreciation is not recognized
as an expense in governmental funds since it does not require the
use of current financial resources. The net effect of the current
year's Depreciation is not recognized as an expense in governmental
funds since it does not require the use of current financial
resources. The net effect of the current year's depreciation is to
decrease net assets.
(319,487)Revenues in the statement of activities that do not
provide current financial resources Revenues in the statement of
activities that do not provide current financial resources are not
reported as revenues in the funds. The net effect of this
recognition is to Revenues in the statement of activities that do
not provide current financial resources are not reported as
revenues in the funds. The net effect of this recognition is to
decrease net assets.
(1,899)$ Change in Net Assets of Governmental Activities
17The notes to the financial statements are an integral part of
this statement.
-
EXHIBIT D-1HAYS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT
STATEMENT OF NET ASSETSPROPRIETARY FUNDS
AUGUST 31, 2009
TotalEnterprise
Funds Service FundsInternalTotal
Governmental Activities -
Business-Type Activities -
ASSETSCurrent Assets:
64,960 188,273 Cash and Cash Equivalents $ $105,100 -
Investments - Current
485 - Due from Other Funds - 33,382 Other Receivables
Total Assets 221,655 170,545
LIABILITIESCurrent Liabilities:
36,238 4,115 Accounts Payable606 33,380 Accrued Wages
Payable
Total Liabilities 37,495 36,844
NET ASSETS133,701 184,160 Unrestricted Net Assets
Total Net Assets 184,160 133,701 $ $
18The notes to the financial statements are an integral part of
this statement.
-
EXHIBIT D-2HAYS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET
ASSETSPROPRIETARY FUNDS
FOR THE YEAR ENDED AUGUST 31, 2009
TotalEnterprise
Funds Service FundsInternalTotal
Business-Type Activities -
Governmental Activities -
OPERATING REVENUES:37,994 1,071,202 Local and Intermediate
Sources $ $
Total Operating Revenues 1,071,202 37,994
OPERATING EXPENSES:1,310 944,919 Payroll Costs
10,525 17,515 Professional and Contracted Services20,484 61,788
Supplies and Materials1,172 5,250 Other Operating Costs
Total Operating Expenses 1,029,472 33,491
Income Before Transfers 41,730 4,503
34,538 - Transfer InOperating Income
Total Net Assets - September 1 (Beginning)
Total Net Assets - August 31 (Ending)
41,730 142,430
$ 184,160
39,041 94,660
$ 133,701
19The notes to the financial statements are an integral part of
this statement.
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EXHIBIT D-3HAYS CONSOLIDATED INDEPENDENT SCHOOL
DISTRICTSTATEMENT OF CASH FLOWS
FOR THE YEAR ENDED AUGUST 31, 2009PROPRIETARY FUNDS
Total TotalEnterprise Internal
Funds Service Funds
Governmental Activities -
Business-Type Activities
Cash Flows from Operating Activities:37,994 1,075,809 Cash
Received from User Charges $ $
(702)(948,159)Cash Payments to Employees for Services(21,735) -
Cash Payments for Insurance Claims(6,607)(86,726)Cash Payments for
Suppliers
40,924 Net Cash Provided by Operating
8,950 Activities
Cash Flows from Non-Capital Financing Activities:34,538 -
Operating Transfer Out
Cash Flows from Investing Activities:16,697 - Proceeds from Sale
& Maturities of Securities
Net Increase in Cash and Cash Equivalents 40,924 60,185 Cash and
Cash Equivalents at Beginning of the Year: 147,349 4,775
Cash and Cash Equivalents at the End of the Year: 188,273 64,960
$ $
Operating Income: $ $
Reconciliation of Operating Income to Net CashProvided by
Operating Activities:
41,730 4,503
Assets and Liabilities:Effect of Increases and Decreases in
Current
- 4,607 Decrease (increase) in Receivables(485) - Decrease
(increase) in Inventories5,993 (600)Increase (decrease) in Accounts
Payable - (79)Increase (decrease) in Payroll Deductions606
(1,601)Increase (decrease) in Accrued Wages Payable
(1,667)(3,133)Increase (decrease) in Due to Other FundsNet Cash
Provided by Operating
8,950 Activities 40,924 $ $
20The notes to the financial statements are an integral part of
this statement.
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EXHIBIT E-1HAYS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT
STATEMENT OF FIDUCIARY NET ASSETSFIDUCIARY FUNDSAUGUST 31,
2009
PrivatePurpose
Trust Fund FundAgency
ASSETS1,078,683 24,240 Cash and Cash Equivalents $ $
Total Assets 24,240 1,078,683 $
LIABILITIES - 197 Accounts Payable $
1,078,683 - Due to Student Groups
Total Liabilities 197 1,078,683 $
NET ASSETS24,043 Unrestricted Net Assets
Total Net Assets 24,043 $
21
The notes to the financial statements are an integral part of
this statement.
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EXHIBIT E-2HAYS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT
STATEMENT OF CHANGES IN FIDUCIARY FUND NET ASSETSFIDUCIARY
FUNDS
FOR THE YEAR ENDED AUGUST 31, 2009
PrivatePurpose
Trust Fund
ADDITIONS:51,850 Local and Intermediate Sources $
Total Additions 51,850
DEDUCTIONS:8,496 Payroll Costs
32,621 Professional and Contracted Services914 Supplies and
Materials
7,718 Other Operating Costs
Total Deductions 49,749
Change in Net Assets
Total Net Assets - September 1 (Beginning)
Total Net Assets - August 31 (Ending)
2,101
21,942
$ 24,043
22The notes to the financial statements are an integral part of
this statement.
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23
HAYS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
AUGUST 31, 2009 I. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
The Hays Consolidated Independent School District (the
“District”) is a public educational agency operating under the
applicable laws and regulations of the State of Texas. It is
governed by a seven-member Board of Trustees (the “Board”) elected
by registered voters of the District. The District prepares its
basic financial statements in conformity with generally accepted
accounting principles and it complies with the requirements of the
appropriate version of Texas Education Agency’s Financial
Accountability System Resource Guide (the “Resource Guide”) and the
requirements of contracts and grants of agencies from which it
receives funds. A. Reporting Entity
The Board of Trustees (the “Board”) is elected by the public and
it has the authority to make decisions, appoint administrators and
managers, and significantly influence operations. It also has the
primary accountability for fiscal matters. Therefore, the District
is a financial reporting entity as defined by the Governmental
Accounting Standards Board (“GASB”) in its Statement No. 14, “The
Financial Reporting Entity.” There are no component units included
within the reporting entity. The Hays Education Foundation (the
“Foundation”), a not-for-profit entity which was organized to
provide scholarship funds, is a “related organization” of the
District as defined by Governmental Accounting Standards Board
Statement No. 14. The members of the Board of the Foundation are
appointed by an outside group.
B. Government-wide and Fund Financial Statements
The Statement of Net Assets and the Statement of Activities are
government-wide financial statements. They report information on
all of the Hays Consolidated Independent School District’s
nonfiduciary activities with most of the interfund activities
removed. Governmental activities include programs supported
primarily by taxes, state foundation funds, grants and other
intergovernmental revenues. Business-type activities include
operations that rely to a significant extent on fees and charges
for support.
(continued)
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24
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. Government-wide and Fund Financial Statements (Continued)
The Statement of Activities demonstrates how other people or
entities that participate in programs the District operates have
shared in the payment of the direct costs. The “charges for
services” column includes payments made by parties that purchase,
use, or directly benefit from goods or services provided by a given
function or segment of the District. Examples include tuition paid
by students not residing in the District, school lunch charges,
etc. The “grants and contributions” column includes amounts paid by
organizations outside the District to help meet the Secondary
Education Act. If revenue is not program revenue, it is general
revenue used to support all of the District’s functions. Taxes are
always general revenues. Interfund activities between governmental
funds and between governmental funds and proprietary funds appear
as “due to/due from” on the governmental fund Balance Sheet and
proprietary fund Statement of Net Assets and as “other resources
and other uses” on the governmental fund Statement of Revenues,
Expenditures and Changes in Fund Balance and on the proprietary
fund Statement of Revenues, Expenses and Changes in Fund Net
Assets. All interfund transactions between governmental funds and
between governmental funds and internal service funds are
eliminated on the government-wide statements. Interfund activities
between governmental funds and enterprise funds remain on the
government-wide statements and appear on the government-wide
Statement of Net Assets as internal balances and on the Statement
of Activities as interfund transfers. Interfund activities between
governmental funds and fiduciary funds remain as “due to/due from”
on the government-wide Statement of Activities. The fund financial
statements provide reports on the financial condition and results
of operations for three fund categories – governmental, proprietary
and fiduciary. Since the resources in the fiduciary funds cannot be
used for District operations, they are not included in the
government-wide statements. The District considers some
governmental funds major and reports their financial condition and
results of operations in a separate column. Proprietary funds
distinguish operating revenues and expenses from nonoperating
items. Operating revenues and expenses result from providing
services and producing and delivering goods in connection with a
proprietary fund’s principal ongoing operations. All other revenues
and expenses are nonoperating.
C. Measurement Focus, Basis of Accounting, and Financial
Statement Presentation
The government-wide financial statements use the economic
resources measurement focus and the accrual basis of accounting, as
do the proprietary fund and fiduciary fund financial statements.
Revenue is recorded when earned and expenses are recorded when a
liability is incurred, regardless of the timing of related cash
flows. Property taxes are recognized as revenue in the year for
which they are levied. Grants and similar items are recognized as
revenue as soon as all eligibility requirements imposed by the
provider have been met.
(continued)
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25
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus, Basis of Accounting, and Financial
Statement Presentation (Continued)
Governmental fund financial statements use the current financial
resources measurement focus and the modified accrual basis of
accounting. With this measurement focus, only current assets,
current liabilities and fund balances are included on the balance
sheet. Operating statements of these funds present net increases
and decreases in current assets (i.e., revenue and other financing
sources and expenditures and other financing uses).
The modified accrual basis of accounting recognizes revenue in
the accounting period in which it becomes both measurable and
available, and it recognizes expenditures in the accounting period
in which the fund liability is incurred, if measurable, except for
unmatured interest and principal on long-term debt, which is
recognized when due. The expenditures related to certain
compensated absences and claims and judgments are recognized when
the obligations are expected to be liquidated with expendable
available financial resources. The District considers all revenue
available if it is collectible within 60 days after year-end.
Revenue from local sources consists primarily of property taxes.
Property tax revenue and revenue received from the state are
recognized under the susceptible-to-accrual concept. Miscellaneous
revenue is recorded as revenue when received in cash because it is
generally not measurable until actually received. Investment
earnings are recorded as earned, since they are both measurable and
available.
Grant funds are considered to be earned to the extent of
expenditures made under the provisions of the grant. Accordingly,
when such funds are received, they are recorded as deferred revenue
until related and authorized expenditures have been made. If
balances have not been expended by the end of the project period,
grantors sometimes require the District to refund all or part of
the unused amount. Amounts reported as program revenues include 1)
charges to customers or applicants for goods, services, or
privileges provided, 2) operating grants and contributions, and 3)
capital grants and contributions, including special assessments.
Internally dedicated resources are reported as general revenues
rather than as program revenues. Likewise, general revenues include
all taxes. Proprietary funds distinguish operating revenues and
expenses from non-operating items. Operating revenues and expenses
generally result from providing services and producing and
delivering goods in connection with a proprietary fund’s principal
ongoing operations. The principal operating revenues of the
District’s enterprise funds and of the District’s internal service
funds are charges to customers for daycare services. Operating
expenses for enterprise funds and internal service funds include
the cost of daycare services and administrative expenses. All
revenues and expenses not meeting this definition are reported as
non-operating revenues and expenses.
(continued)
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26
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus, Basis of Accounting, and Financial
Statement Presentation (Continued)
The proprietary fund types and fiduciary funds are accounted for
on a flow of economic resources measurement focus and utilize the
accrual basis of accounting. This basis of accounting recognizes
revenue in the accounting period in which it is earned and becomes
measurable, and expenses in the accounting period in which they are
incurred and become measurable. The District applies all GASB
pronouncements, as well as the Financial Accounting Standards Board
pronouncements issued on or before November 30, 1989, unless these
pronouncements conflict or contradict GASB pronouncements. The
District has elected not to follow subsequent private-sector
guidance. With this measurement focus, all assets and all
liabilities associated with the operation of these funds are
included on the Statement of Net Assets. The fund equity is
segregated into invested in capital assets net of related debt,
restricted net assets, and unrestricted net assets.
When both restricted and unrestricted resources are available
for use, it is the government’s policy to use restricted resources
first, then unrestricted resources as they are needed.
D. Fund Accounting
The District reports the following major governmental funds:
The General Fund is the District’s primary operating fund. It
accounts for all financial resources except those required to be
accounted for in another fund. Debt Service Fund – The District
accounts for resources accumulated and payments made for principal
and interest on long-term general obligation debt of governmental
funds in a Debt Service Fund.
Capital Projects Funds – The proceeds from long-term debt
financing and revenue and expenditures related to authorized
construction and other capital asset acquisitions are accounted for
in a Capital Projects Fund.
The District has no major Enterprise Funds.
Additionally, the District reports the following fund types:
Governmental Funds:
Special Revenue Funds – The District accounts for resources
restricted to, or designated for, specific purposes by the District
or a grantor in a Special Revenue Fund. Most federal and some state
financial assistance is accounted for in a Special Revenue Fund,
and sometimes unused balances must be returned to the grantor at
the close of specified project periods.
(continued)
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27
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Fund Accounting (Continued) Capital Projects Fund – The
proceeds from long-term debt financing and revenue and expenditures
related to authorized construction and other capital asset
acquisitions are accounted for in a Capital Projects Fund.
Proprietary Funds:
Enterprise Funds – The District’s activities for which outside
users are charged a fee roughly equal to the cost of providing the
goods or services of those activities are accounted for in an
Enterprise Fund. The District’s non-major Enterprise Funds consist
of 11 Campus Childcare Funds, and one School Based Health
Clinic.
Internal Service Fund – Revenue and expenses related to services
provided to organizations inside the District on a cost
reimbursement basis are accounted for in an Internal Service Fund.
The District’s Internal Service Funds are the Workers’ Compensation
Fund and Print Shop.
Fiduciary Funds:
Private Purpose Trust Fund – The District uses this fund to
sponsor a training seminar for music instruction. Revenues for this
fund are fees paid by seminar participants. Expenses associated
with this conference are also paid out of this fund.
Agency Fund – The District accounts for resources held for
others in a custodial capacity in an Agency Fund. The District’s
Agency Fund is the Student Activity Fund.
E. Other Accounting Policies 1. The District’s cash and cash
equivalents are considered to be cash on hand, demand
deposits and short-term investments with original maturities of
three months or less from the date of acquisition. Investments for
the District are reported at fair value.
2. For purposes of the statement of cash flows for proprietary
and similar fund types, the
District considers highly liquid investments to be cash
equivalents if they have a maturity of three months or less when
purchased.
3. The District records purchases of supplies as expenditures.
Supplies are used for almost
all functions of activity, while food commodities received from
the Texas Department of Human Services are used only in the food
service program. Although the food commodities are received at no
cost, their fair market value is supplied by the Texas Department
of Human Services and recorded as expenditures when received.
(continued)
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28
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
E. Other Accounting Policies (Continued)
4. In the government-wide financial statements, and proprietary
fund types in the fund financial statements, long-term debt and
other long-term obligations are reported as liabilities in the
applicable governmental activities, business-type activities, or
proprietary fund type statement of net assets. Bond premiums and
discounts, as well as issuance costs, are deferred and amortized
over the life of the bonds using the effective interest method.
Bonds payable are reported net of the applicable bond premium or
discount. Bond issuance costs are reported as deferred charges and
amortized over the term of the related debt.
5. It is the District’s policy to permit some employees to
accumulate earned but unused
vacation and sick pay benefits. All vacation pay is accrued when
incurred in the government-wide, proprietary, and fiduciary fund
financial statements. A liability for these amounts is reported in
governmental funds only if they have matured, for example, as a
result of employee resignations and retirements.
6. Capital assets, which include land, buildings, furniture and
equipment, are reported in the
applicable governmental or business-type activities columns in
the government-wide financial statements. Capital assets are
defined by the District as assets with an initial, individual cost
of more than $5,000 and an estimated useful life in excess of two
years. Such assets are recorded at historical cost or estimated
historical cost if purchased or constructed. Donated capital assets
are recorded at estimated fair market value at the date of
donation.
The costs of normal maintenance and repairs that do not add to
the value of the asset or materially extend assets lives are not
capitalized. Major outlays for capital assets and improvements are
capitalized as projects are constructed. Buildings, furniture and
equipment of the District is depreciated using the straight-line
method over the following estimated useful lives:
Assets Years
Buildings 39Building improvements 20Vehicles 10Office equipment
5 - 15Computer equipment 5
7. As of September 1, 2004, the District is no longer
self-insured for its workers’
compensation insurance. All outstanding claims prior to the
switch are handled by the District and are accounted for in the
Workers’ Compensation Internal Service Fund.
The District also provides healthcare benefits to its employees
under a healthcare insurance plan. The insurance is provided by a
licensed insurer.
(continued)
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29
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
E. Other Accounting Policies (Continued)
8. In the fund financial statements, governmental funds report
reservations of fund balance for amounts that are not available for
appropriation or are legally restricted by outside parties for use
for a specific purpose. Designations of fund balance represent
tentative management plans that are subject to change. The
remaining portions are unreserved.
9. When the District incurs an expense for which it may use
either restricted or unrestricted
assets, it uses the restricted assets first unless unrestricted
assets will have to be returned because they were not used.
10. The Data Control Codes refer to the account code structure
prescribed by TEA in the
Financial Accountability System Resource Guide. Texas Education
Agency requires school districts to display these codes in the
financial statements filed with the Agency in order to insure
accuracy in building a statewide database for policy development
and funding plans.
11. Estimates – The preparation of financial statements in
conformity with accounting
principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect
certain reported amounts and disclosures. Accordingly, actual
results could differ from those estimates.
The amount of state foundation revenue a school district earns
for a year can and does vary until the time when final values for
each of the factors in the formula become available. Availability
can be as late as midway into the next fiscal year. It is at least
reasonably possible that the foundation revenue estimates as of
August 31, 2009, will change.
II. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL
STATEMENTS
A. Explanation of Certain Differences Between the Governmental
Fund Balance Sheet and the Government-wide Statement of Net
Assets
The governmental fund balance sheet includes a reconciliation
between fund balance – total governmental funds and net assets –
governmental activities as reported in the government-wide
statement of net assets. One element of that reconciliation
explains, “The net effect of including the beginning balances for
capital assets (net of depreciation) and long-term debt in the
governmental activities.” The details of this $(103,822,956)
difference are as follows:
Capital assets 245,698,373$ Bonds payable 346,226,289)( Loans
payable 245,000)( Capital leases payable 1,867,565)( Compensated
absences 1,182,475)(
Net adjustment to reduce fund balance - total governmental funds
to arrive at net assets - governmental activities
103,822,956)$(
(continued)
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30
II. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL
STATEMENTS (Continued)
A. Explanation of Certain Differences Between the Governmental
Fund Balance
Sheet and the Government-wide Statement of Net Assets
(Continued)
The governmental fund balance sheet includes a reconciliation
between fund balance – total governmental funds and net assets –
governmental activities as reported in the government-wide
statement of net assets. One element of that reconciliation
explains, “The net effect of including the 2009 capital outlays and
debt principal payments is to increase net assets.” The details of
this $42,691,930 difference are as follows:
Debt payments 9,244,484$ Debt issue costs 197,668)( Capital
outlay 35,137,359 Accreted interest on long-term debt
1,492,245)(
Net adjustment to reduce fund balance - total governmental funds
to arrive at net assets - governmental activities 42,691,930$
III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
A. Deposits and Investments
As of August 31, 2009, the District had the following
investments:
Fair Weighted AverageInvestment Type Value Maturity (Days)
TexPool 54,651,909$