LOS FRESNOS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT [ I ANNUAL FINANCIAL REPORT … · r I II I i I II II [ I II [ I II i I 1 . 1 I I .1 1 LOS FRESNOS CONSOLIDATED INDEPENDENT SCHOOL

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LOS FRESNOS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT

ANNUAL FINANCIAL REPORT

FOR THE YEAR ENDED AUGUST 31, 2010

dyoung

Text Box

This document has been edited to remove blank pages. The original is available for review online or in person at the district's business office.

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Exhibit

LOS FRESNOS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT ANNUAL FINANCIAL REPORT


TABLE OF CONTENTS

. CERTIFICATE OF BOARD

A-I B-1

C-I C-2 C-3 C-4 C-5

D-I D-2 D-3

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H-3 H-4 H-5

H-6

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Independent Auditors' Report Management's Discussion and Analysis

Basic Financial Statements

Government Wide Statements: Statement of Net Assets Statement of Activities

Governmental Fund Financial Statements: Balance Sheet Reconciliation for C-l Statement of Revenues, Expenditures, and Changes in Fund Balance Reconciliation for C-3 Budgetary Comparison Schedule - General Fund

Proprietary Fund Financial Statements: Statement of Net Assets Statement of Revenues, Expenses, and Changes in Fund Net Assets Statement of Cash Flows

Fiduciary Fund Financial Statements: Statement of Fiduciary Net Assets

Notes to the Financial Statements

Combining Statements

Nonmajor Governmental Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures, and Changes in Fund Balances

Internal Service Funds: Combining Statement of Net Assets Combining Statement of Revenues, Expenditures, and Changes in Fund Net Assets Combining Statement of Cash Flows

Agency Funds: Statement of Changes in Assets and Liabilities

Required Supplementary Schedules

Schedule of Delinquent Taxes Receivable Schedule of Expenditures for Computations ofIndirect Cost Fund Balance and Cash Flow Calculation Worksheet Budgetary Comparison Schedule - Child Nutrition Fund Budgetary Comparison Schedule - Debt Service Fund

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2 4

11 12

13 14 15 16 17

18 19 20

21 22

38 44

50 51 52

53

54 56 57 58 59

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Exhibit

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LOS FRESNOS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT ANNUAL FINANCIAL REPORT

Federal Awards Section


TABLE OF CONTENTS (Continued)

Report 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

Report on Compliance with Requirements Applicable to Each Major Program and Internal Control Over Compliance in Accordance with OMB Circular A-133

Schedule of Findings .and Questioned Costs Corrective Action Plan Summary Schedule of Prior Audit Findings Schedule of Expenditures of Federal Awards Notes on Accounting Policies for Federal Awards

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62 64 65 66 67 69

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CERTIFICATE OF BOARD

Los Fresnos Consolidated Independent School District Name of District

Cameron County

031-906 Co.-Dis!. 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, 2010 at a

meeting of the Board of Trustees of such school district on the ____ day of January, 2011.

Signature of Board Secretary Signature of Board President

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Ilf~ PATTILLO, BROWN & HILL,L.L.p.

CERTIFIED PUBLIC ACCOUNTANTS. BUSINESS CONSULTANTS

INDEPENDENT AUDITORS' REPORT

Board of Trustees Los Fresnos Consolidated Independent School District

We have audited the accompanying financial statements of the govermnental activities, each major fund, and the aggregate remaining fund information of Los Fresnos Consolidated Independent School District (the "District") as of and for the year ended August 31, 2010, 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, each major fund, and the aggregate remaining fund information of Los Fresnos Consolidated Independent School District as of August 31, 20 I 0, and the respective changes in financial position and cash flows, where applicable, thereof and the respective budgetary comparison for the general fund 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 November IS, 2010, on our consideration of the District's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of 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 on pages 4 through 10 and the budgetary comparison information on pages 58 through 59, 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 princlpally 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.

647 EAST ST. CHARLES. BROWNSVILLE, TX 78520. (956) 544·7778. FAX: (956) 544·8465. www.pbhcpa.com AFFILIATE OFFICES: McALLEN, TX (956) 682-2853. HILLSBORO, TX (254) 582-2583 • TEMPLE, TX (254) 791-3460

WACO, TX (254) 7724901 • WHITNEY, TX (254) 694·4600 • ALBUQUERQUE, NM (50S) 266-5904

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Our audit was conducted for the purpose of fonning opinions on the financial statements that collectively comprise the District's basic financial statements. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are. not a required part of the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is also not a required part of the basic financial statements of the District. The combining and individual nonmajor fund financial statements and the 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.

November 15, 2010

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"DetI4ted f6 St«de«t S««eM . .. ~f6stall~/

MANAGEMENT'S DISCUSSION & ANALYSIS FOR THE YEAR ENDED AUGUST 31,2010

This section of Los Fresnos Consolidated 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, 2010. Please read it in conjunction with the District's financial statements, which follow this section.

FINANCIAL HIGHLIGHTS

• At August 31,2010, the District's assets exceeded its liabilities by $80,544,366. Total assets were $140,062,481 and total liabilities were $59,518,115. During the 2009-2010, fiscal period the District's revenues were $99,531,029 whereas total expenses were $92,794,173 resulting in $6,736,856 revenues over expenses for all funds including grants and American Recovery and Reinvestment Act (stimulus). The District continues to experience steady enrollment increases and anticipates a positive growth pattern for the foreseeable future. A healthy fund balance is necessary in light of the uncertainty surrounding future State funding and the need for physical plant improvements.

• The general fund reported a fund balance this year of $22,967,554. Fund balance for the general fund at August 31,2009 was $19,223,660 for an increase of $3,743,994. The increase is attributed to revenues exceeding expectations by $2.4 million and actual expenditures coming in almost $5 million under budget.

• As enrollment continues to increase, it is expected that additional revenue will be realized. Strict adherence to staffing guidelines continues to ensure that annual recurring operating costs do not increase disproportionately to the revenues generated by additional enrollment. Additional funding, in the form of federal stimulus grants, has been, and will continue to be focused on onetime expenses so as not to create a funding cliff once those funds are no longer available. .

• The Los Fresnos Consolidated Independent School District covers a very large geographical area, over 460 square miles. The percentage of overlapping jurisdictions' taxable values are as follows:

2009-2010 2008-2009 Indian Lake 1% 1% Bayview 3% 3% Rancho Viejo 7% 7% City of Brownsville 41% 41% City of Los Fresnos 12% 12% Other, Unicorporated* 36% 36%

100% 100%

* Includes rural, vacant, and farmland

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OVERVIEW OF THE FINANCIAL STATEMENTS

This annual report consisis 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 finanoial statements that provide both longterm and short-term information about the District's overall financial status.

• The remaining statements are fund financial staternents 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 long-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.

The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the information in the financial statements.

Government-wide Statements

The government-wide statements report information about the District as a whole using accounting methods similar to those used by private-sector companies. The statement of net assets inoludes all of the government's assets and liabilities. All of the current year's revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid.

The two government-wide statements report the District's net assets and how they have changed. Net assets-the difference 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.

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, curriculum and staff development, school district administrative support services and general administration. Grants and charges for services 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.

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• The Board of Trustees establishes other funds to control and manage money for particular purposes or to show that it is properly using certain grants and local sources.

The District has the following 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 finance 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.

• Proprietary funds - Services for which the District charges customers a fee are generally reported in proprietary funds. Proprietary funds, like the government-wide statements, provide both long-term and short-term fi'nancial information.

• Internal service funds - To report activities related to services provided to organizations inside the District on a cost reimbursement basis.

• 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 $80,544,366 at August 31,2010.

Summarized Net Assets

Governmental Activities as of August 31,2010 August 31,2009

Current and other assets $ 38,726,167 $ 42,455,480 Capital Assets: 101,336,314 100,033,592

Total Assets 140,062,481 142,489,072

Long-Term Liabilities 53,214,829 56,770,548 Other Liabilities 6,303,286 11,835,636

Total Liabilities 59,518,115 68,606,184

Net Assets: I~vested In capital assets, net of related debt 48,233,239 43,263,044 Restricted 5,853,937 7,406,951 Unrestricted 26,457,190 . 23,212,893

Total Net Assets $ 80,544,366 $ 73,882,888

Unrestricted net assets represent resources available to fund future district programs.

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Changes in net assets The District's total revenues were $99,531,029. A significant portion, 53%, comes from state-aid formula grants, 31 % of the District's revenue comes from operating grants, 14% is related to property taxes collected, and the remaining 2% is related to charges for services, investment earnings received and miscellaneous revenue.

The total cost of all programs and services was $92,794,173. Over 82% of these costs are in instructional, instructional related services, and student services.

Governmental Activities

• Charges for services remained stable. • The increase in operating grants and contributions is attributable to receipt of ARRA funds. • Investment earnings decreased by almost 83% due to lower interest rates and liquidation

of the 2006 Bond Projects fund resulting in fewer dollars to invest. Investment earnings are expected to decrease in 2010-11 for the same reasons.

• Debt service includes the final arbitrage payment for the Unlimited Tax School Building, Series 2000 bonds.

Summarized Changes in Net Assets

Governmental Activities as of August 31,2010 August31,2009

Revenues Program revenues:

Charges for services $ 908,415 $ 1,017,729 Operating grants & contributions 20,916,465 15,547,668

General revenues: Property taxes 13,947,134 13,649,603 State Aid - Formula Grant 53,094,647 51,592,979 Grants & contributions not restricted 9,783,212 9,253,739 Other 561,041 957,575 Special item - resource 320,115

Total Revenues 99,531,029 92,019,293

Expenses Instruction 53,464,944 50,561,400 Instructional leadership 6,230,945 5,351,353 Student support services 16,536,229 15,629,496 General administration 1,727,654 2,503,388 Support services - non student 11,963,140 11,898,848 Community services 259,423 229,628 Debt service 2,528,349 2,498,318 Debt service 83,489

Total Expenditures 92,794,173 88,672,431

Increase (Decrease) in Net Assets $ 6,736,856 $ 3,346,862

Net assets, beginning 73,882,888 70,536,485 Prior Period Adjustment (75,378) (459) Net assets, ending $ 80,544,366 $ 73,882,888

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The next table 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 funding by state revenues as well as local revenues.

• The cost of all governmental activities this year was $92,794,173. • The amount that our taxpayers paid for these activities through property taxes was

$13,947,134. • Some of the cost was paid by those who directly benefited from the programs ($908,415),

or by grants and contributions ($20,916,465).

Net Cost of Selected District's Functions

Total Cost of Services % Net Cost of Services %

2010 2009 Change 2010 2009 Change

Instruction $ 50,342,188 $48,159,486 4.34% $ 35,036,265 $ 36,834,380 -5.13%

School leadership 4,484,892 3,866,161 13.80% 4,156,120 3,594,095 13,52%

Guidance & Counseling 2,960,569 3,048,583 -2.97% 2,179,335 2,117,102 2.86%

Food services 5,957,539 5,842,546 1.93% 5,619,524 5,470,346 2.65%

Maintenance & operations 10,572,534 10,576,573 -0.04% 10,409,950 10,433,285 -0.22%

Debt service 2,519,956 2,487,754 1.28% 2,519,956 2,487,754 1.28%

FINANCIAL ANALYSIS OF THE DISTRICT'S FUNDS

Revenues from governmental fund types totaled $99,531,029, an increase of 8.16% from the preceding year. The increase in local revenues is primarily a result of higher enrollment numbers and higher taxable values.

CAPITAL ASSETS

At the end of 2010, the District had invested $101,448,068 in a broad range of capital assets, including buildings and improvements, furniture and equipment, vehicles and construction in progress. This amount represents a net increase of $1,414,476 over last year and is 'mostly attributable to completion of the final 2006 bond project, Dora Romero Elementary.

District's Capital Assets

Governmental Activities % 2010 2009 Cb;!!]ge

Capital Assets: Land $ 3,385,867 $ 3,360,923 1% Buildings & improvements 118,367,423 109,090,338 8% Furniture & equipment 8,590,918 7,382,421 14% Vehicles 6,452,983 5,895,422 90/0 Construction in progress 538,578 6,320,798 -1074%

Total Capital Assets at Historical Cost 137,335,769 132,049,902

Less: Accumulated Depreciation (35,887,701 ) (32,016,310) 11%

Net of Capital Assets $ 101,448,068 $ 100,033,592

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LONG TERM DEBT

At year end, the District had approximately $51.1 million in outstanding long term debt. More detailed information about the District's debt is presented in the notes to the financial statements.

District's Long Term Debt

Balance Principal Principal Balance 9/1/2009 Issued Retired 8/31/2010

Bonds payable $ 51,170,000 $ $ (3,180,000) $ 47,990,000

Capital leases payable 684,753 328,924 (341,564) 672,113

Loans payable 2,743,508 (269,922) 2,473,586

Total long term debt $ 54,598,261 $ 328,924 $ (3,791,486) $ 51,135,699

ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES

The most significant economic factor facing the District is the State of Texas' public school funding law, which is subject to change with each legislature. Generally speaking, state funding accounts for approximately 60% of the district's revenue with local and federal sources picking up 16% and 24% respectively. Going into the next biennium, Texas legislators may face a significant budget deficit. With K - 12 public school expenditures accounting for 44% of the state budget, it is unlikl9ly that school districts will not be affected. District management constantly monitors this situation and makes adjustments as needed in response to changes at the state and federal levels.

For tax year 2010, the net taxable value of properties on the District tax rolls was certified by the Cameron Appraisal District to be $1.25 billion. This represents a modest positive increase of approximately $20 million in taxable values. The slowdown in the rate of growth for property values was anticipated and management has responded appropriately by adopting a cautious conservative approach to fiscal planning and budgetary restraint.

In the current tax year, the district adopted a total tax rate of $1.20 per $100 valuation. Of which, $1.04 goes toward maintenance and operations. The district has maintained this rate since 2007 and it is currently the highest rate allowed without voter approval. Under present law, an additional $.13 per $100 is available but only through a tax ratification election.

Despite recessionary pressures, tax collections have been holding steady, between 96% and 98%. They are expected to remain within that range.

For the eighth consecutive year, the district received a "Superior Achievement" rating from the Texas Education Agency on its finances through the Financial Integrity Rating System of Texas (FIRST) for the 2008-09 school year. The FIRST was initiated by the Texas Legislature in 1999 and is used as a benchmark for management and a guide to maximize taxpayer dollars.

In December 2010, the State Comptroller's Office released the Financial Allocation Study for Texas (FAST) in which her office was charged with measuring the efficiency and effectiveness of all school districts in the State of Texas and assigning them a rating. For consistent academic performance and strong fiscal responsibility, Los Fresnos CISD received a rating of 4.5 stars out of a possible high score of 5 stars, the highest rating for a public school district in the region.

Instructional focus and students' academic accomplishments are the driving force behind management's strategic vision. Los Fresnos CISD's students, though many may be categorized

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as academically or economically disadvantaged, continue to meet or exceed state standards in most academic areas.

Although general economic conditions may be uncertain for the foreseeable future, the district expects to continue its tradition of providing solid value for taxpayers through sound financial planning, conservative management and the pursuit of academic excellence for all students.

CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, customers, 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 any questions about this report or need additional financial information, contact the District's Finance Department at (956) 254-5036.

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BASIC FINANCIAL STATEMENTS

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LOS FRESNOS CONSOLIDATED ISD STATEMENT OF NET ASSETS

AUGUST 31, 2010

Data Control

Codes

ASSETS 1110 Cash and Cash Equivalents 1220 Property Taxes Receivable (Delinquent) 1230 Allowance for Uncollectible Taxes 1240 Due from Other Govermnents 1290 Other Receivables, net 1410 Deferred Expenses

Capital Assets: 1510 Land 1520 Buildings, Net 1530 Furniture and Equipment, Net 1540 Vehicles, Net 1580 Construction in Progress

1000 Total Assets

. LIABILITIES 2110 Accounts Payable 2120 .short Term Debt Payable 2150 Payroll Deductions & Withholdings 2160 Accrued Wages Payable 2180 Due to Other Govermnents 2200 Accrued Expenses 2300 Deferred Revenues 2400 Payable from Restricted Assets

Noncurrent Liabilities 2501 Due Within One Year 2502 Due in More Than One Year

2000 Total Liabilities

NET ASSETS 3200 Invested in Capital Assets, Net of Related Debt 3820 Restricted for Federal and State Programs 3850 Restricted for Debt Service 3860 Restricted for Capital Projects 3890 Restricted for Other Purposes 3900 Unrestricted Net Assets

3000 Total Net Assets

The notes to the fmancial statements are an integral part ofthis statement.

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Primary Government


$ 30,558,812 3,725,116 (111,754)

3,564,480

$

4,589 873,170

3,385,867 91,753,785

4,187,058 1,582,780

538,578

140,062,481

1,431,848 2,176

56,316 2,520,768 1,990,403

215,803 52,342 33,630

2,858,607 50,356,222

59,518,115

48,233,239 219,866

1,547,624 233,893

4,106,134 26,203,610

80,544,366

EXHIBIT A-I

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LOSFRESNOSCONSOLIDATEDISD STATEMENT OF ACTIVITIES


Data

Control

Codes

Program Revenues

Primary Government:

GOVERNMENTAL ACTIVITIES: 11 Instruction $ 12 Instructional Resources and Media Services 13 Curriculum and Staff Development 21 Instructional Leadership 23 School Leadership 31 Guidance, Counseliug and Evaluation Services 32 Social Work Services 33 Health Services 34 Student (pupil) Transportation 35 Food Services 36 Extracurricular Activities 41 General Administration 51 Plant Maiutenance and Operations 52 Security and Monitoriug Services 53 Data Processiug Services 61 Community Services 72 Debt Service - Interest on Long Term Debt 73 Debt Service - Bond Issuance Cost and Fees 93 Payments related to Shared Services Arrangements 95 Payments to Juvenile Justice Alternative Ed. Prg.

[TP] TOTAL PRIMARY GOVERNMENT: $

Expenses

50,342,188 $ 1,300,928 1,821,828 1,746,053 4,484,892 2,960,569

118,782 917,970

3,908,970 5,957,539 2,672,399 1,727,654

10,572,534 599,994 790,612 259,423

2,519,956 8,393

82,500 989

92,794,173 $

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Charges for Services

23,460 $

338,015 513,067 32,665

1,208

908,415 $

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Operating Grants and

Contributions

15,282,463 551,555

1,342,166 1,098,920

328,772 781,234 62,978 49,910

125,167

355,344 307,985 162,584 54,966 79,255

250,666

82,500

20,916,465 ====

Data Control Codes

MT DT SF GC IE

MI SI

TR

General Revenues: Taxes:

Property Taxes, Levied for General Purposes Property Taxes, Levied for Debt Service

State Aid - Formula Grants Grants and Contributions not Restricted Investment Eamiugs Miscellaneous Local and Intermediate Revenue

Special Item - Resource

Total General Revenues and Special Items

CN Change in Net Assets

NB Net Assets--Beginning PA Prior Period Adjustment

NE Net Assets--Ending

The notes to the fmaneial statements are an iutegral part of this statement. 12

EXIDBITB-l

Net (Expense) Revenue and

Changes in Net Assets

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Primary Gov.


$ (35,036,265) (749,373) (479,662) (647,133)

(4,156,120) (2,179,335)

(55,804) (868,060)

(3,783,803) (5,619,524) (1,803,988) (1,387,004)

(10,409,950) (543,820) (711,357)

(8,757) (2,519,956)

(8,393)

(989)

(70,969,293)

12,088,775 1,858,359

53,094,647 9,783,212

105,384 455,657 320,115

77,706,149

6,736,856 73,882,888

(75,378)

$ 80,544,366

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LOS FRESNOS CONSOLIDATED ISO BALANCE SHEET

GOVERNMENTAL FUNDS AUGUST 31, 2010

Data 10 Nonmajor

Control General Governmental

Codes Fund Funds

ASSETS Ill0 Cash and Cash Equivalents $ 24,308,737 $ 2,196,867 1220 Property Taxes - Delinquent 3,216,537 1230 Allowance for Uncollectible Taxes (96,550) 1240 Receivables from Other Govermnents 2,199,185 1260 Due from Other Funds 1,511,834 1290 Other Receivables 4,589 1410 Deferred Expenditures 873,170

1000 Total Assets $ 32,017,502

LIABILITIES AND FUND BALANCES

Liabilities: 2110 Accounts Payable $ 934,107 2120 Short Term Debt Payable - Current 2,176 2150 Payroll Deductions and Withholdings Payable 56,316 2160 Accrued Wages Payable 2,461,170 2170 Due to Other Funds 589,702 2180 Due to Other Govermnents 1,856,950 2300 Deferred Revenues 3,149,527 2400 Payable from Restricted Assets

2000 Total Liabilities 9,049,948

Fund Balances:

Restricted Fund Balance: 3420 Retirement of Long Term Debt

Unspendable Fund Balance: 3450 Food ServicelFederal or State Funds 881,134

Committed Fund Balance: 3510 Construction 3,000,000 3545 Other Committed Fund Balance 225,000

Unassigned Fund Balance: 3600 Reported in the General Fund 18,861,420 3610 Reported in Special Revenue Funds 3620 Reported in Capital Projects Funds

------3000 Total Fund Balances 22,967,554

4000 Total Liabilities and Fund Balances $ 32,017,502

The notes to the fInancial statements are an integral part of this statement.

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508,579 (15,204)

1,365,295 40,286

$ 4,095,823

$ 386,339

59,598 965,244 133,453 516,176

33,630

2,094,440

1,547,624

219,866 233,893

2,001,383 ----,~---

$ 4,095,823

EXHIBIT C-l

Total Governmental

Funds

$ 26,505,604 3,725,116 (111,754)

3,564,480 1,552,120

4,589 873,170

$ 36,113,325

$ 1,320,446 2,176

56,316 2,520,768 1,554,946 1,990,403 3,665,703

33,630

11,144,388

1,547,624

881,134

3,000,000 225,000

18,861,420 219,866 233,893

24,968,937

$ 36,113,325

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LOS FRESNOS CONSOLIDATED ISD RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE

STATEMENT OF NET ASSETS AUGUST 31, 2010

Total Fund Balances - Governmental Funds

The District uses internal service funds to charge the costs· of certain activities, such as self-insurance and workers' compensation, 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.

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 $132,049,902 and the accumulated depreciation was $32,016,310. 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 longterm debt in the governmental activities is to increase (decrease) net 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 effect of including the 20 I 0 capital outlays and debt principal payments is to increase net assets.

The 2010 depreciation expense increases accumulated depreciation. The net effect of the current year's depreciation is to (decrease) net assets.

Various other reclassifications and eliminations are necessary to convert from the modified accrual basis of accounting to accrual basis of accounting. These include recognizing deferred revenue as revenue, eliminating interfund transactions, and recognizing the liabilities associated with maturing long-term debt and interest. The net effect of these reclassifications and recognitions is to increase net assets.

Net Assets of Governmental Activities

The notes to the fmaneial statements are an integral part of this statement.

14

$

$

EXHIBITC-2

24,968,937

3,728,829

43,263,044

8,875,974

(3,923,558)

3,631,140

80,544,366

! I [ I II

LOS FRESNOS CONSOLIDATED ISD STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

GOVERNMENTALFIINDS FOR THE YEAR ENDED AUGUST 31, 2010

Data 10 Control General Codes Fund

REVENUES: 5700 Total Local and Intetmediate Sources $ 13,548,302 5800 State Program Revenues 55,623,796 5900 Federal Program Revenues 7,031,758 ----_.-5020 Total Revenues 76,203,856

------------

EXPENDITURES:

Current: 001l Instruction 37,704,223 0012 Instructional Resources and Media Services 798,521 0013 Curriculum and Instructional Staff Development 525,209 0021 Instructional Leadership 723,512 0023 School Leadership 4,348,191 0031 Guidance, Counseling and Evaluation Services 2,316,272 0032 Social Work Services 60,030 0033 Health Services 912,414 0034 Student (Pupil) Transportation 3,513,891 0035 Food Services 6,154,170 0036 Extracurricular Activities 2,406,424 0041 General Administration 2,579,608 0051 Facilities Maintenance and Operations 7,986,100 0052 Security and Monitoring Services 569,900 0053 Data Processing Services 1,096,262 0061 Community Services 16,549

Debt Service: 0071 Debt Service· Principal on Long Term Debt 611,486 0072 Debt Service· Interest on Long Term Debt 112,138 0073 Debt Service· Bond Issuance Cost and Fees

Capital Outlay: 0081 Facilities Acquisition and Construction 670,012

Intergoverrnnental: 0093 Payments to Fiscal AgentlMember Districts of SSA 0095 Payments to Juvenile Justice Alternative Ed. Prg. 989

6030 Total Expenditures 73,105,901

1100 Excess (Deficiency) of Revenues Over (Under) 3,097,955 Expenditures

OTHER FINANCING SOURCES (USES): 7913 Capital Leases 328,924 7915 Transfers In 2,017,050 8911 Transfers Out (Use) (2,020,050) 7957 Contributed Capital 320,115

7080 Total Other Financing Sources (Uses) 646,039

1200 Net Change in Fund Balances 3,743,994

0100 Fund Balance· September I (Beginning) 19,223,560

3000 Fund Balance· August 31 (Ending) $ 22,967,554

The notes to the fmancial statements are an integral part of this statement.

15

Nonmajor Governmental

Funds

$ 2,422,492 4,282,468

16,451,111

23,156,071

13,196,585 502,407

1,296,619 1,022,541

136,701 644,297

58,752 5,556

285,986 211,497

10,973 30,094 56,266

242,874

3,180,000 2,407,818

8,393

2,849,797

82,500

26,229,656

(3,073,585) --------

3,000

3,000

(3,070,585)

5,071,968

$ 2,001,383

Total Governmental

Funds

$ 15,970,794 59,906,264 23,482,869

99,359,927

50,900,808 1,300,928 1,821,828 1,746,053 4,484,892 2,960,569

118,782 917,970

3,513,891 6,154,170 2,692,410 2,791,105 7,997,073

599,994 1,152,528

259,423

3,791,486 2,519,956

8,393

3,519,809

82,500 989

99,335,557

24,370 ----

328,924 2,020,050

(2,020,050) 320,115

649,039

673,409

24,295,528

$ 24,968,937

EXHIBITC·3

II i I

i I

I

EXHIBITC-4 LOS FRESNOS CONSOLIDATED ISD

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES


Total Net Change in Fund Balances - Governmental Funds

The District uses internal service funds to charge the costs of certain activities, such as self-insurance and workers' compensation, to appropriate functions in other funds, The net income of internal service funds are reported with governmental activities, The net effect ofthis consolidation is to increase net 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 effect of removing the 20 I 0 capital outlays and debt principal payments is to increase net assets.

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.

Various other reclassifications and eliminations are necessary to convert from the modified accrual basis of accounting to accrual basis of accounting. These include recognizing deferred revenue as revenue, adjusting current year revenue to show the revenue earned from the current year's tax levy, eliminating interfund transactions, and recognizing the liabilities associated with maturing long-term debt and interest. The net effect of these reclassifications and recognitions is to (decrease) net assets.

Change in Net Assets of Governmental Activities

The notes to the fmaneial statements are an integral part of this statement.

16

$' 673,409

1,166,887

8,875,974

(3,923,558)

(55,856)

$ 6,736,856

II II II

I I I

LOS FRESNOS CONSOLIDATED ISD

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGETANDACTUAL-GENERALFUND


Data

Control Budgeted Amounts Codes

Original

REVENUES:

5700 Total Local and Intermediate Sources $ 12,652,200

5800 State Program Revenues 57,758,471

5900 Federal Program Revenues 5,603,682

5020 Total Revenues 76,014,353

EXPENDITURES: Current:

0011 Instruction 40,823,998

0012 Instructional Resources and Media Services 1,214,938

0013 Curriculum and Instructional Staff Development 559,991

0021 Instructional Leadership 706,047

0023 School Leadership 4,321,721

0031 Guidance, Counseling and Evaluation Services 2,420,787

0032 Social Work Services 106,830

0033 Health Services 1,114,529

0034 Student (pupil) Transportation 3,101,582

0035 Food Services 5,640,682

0036 Extracurricular Activities 2,410,538

0041 General Administration 2,623,435

0051 Facilities Maintenance and Operations 9,156,056

0052 Security and Monitoring Services 597,923

0053 Data Processing Services 863,456

0061 Community Services 18,255

Debt Service: 0071 Debt Service - Principal on Long Tenn Debt 724,085

0072 Debt Service - Interest on Long Tenn Debt Capital Outlay:

0081 Facilities Acquisition and Construction 1,246,514

Intergovernmental: 0095 Payments to Juvenile Justice Alternative Ed. Prg.

6030 Total Expenditures 77,651,367

1100 Excess (Deficiency) of Revenues Over (Under) (1,637,014) Expenditures

OTHER FINANCING SOURCES (USES):

7913 Capital Leases 375,000

7915 Transfers In 1,640,075

8911 Transfers o.ut (Use) (1,640,075)

7957 Contributed Capital

7080 Total Other Financing Sources (Uses) 375,000

1200 Net Change in Fund Balances (1,262,014)

0100 Fund Balance - September 1 (Beginning) 19,223,560

3000 Fund Balance - August 31 (Ending) $ 17,961,546

The notes to the financial statements are an integral part of this statement. 17

Final

$ 12,694,559 55,224,075

5,857,765

73,776,399

39,625;808

843,998

591,649 764,963

4,439,673 2,411,814

104,806

983,001 3,628,598

6,170,212

2,474,601 2,713,396

8,941,603 600,978

1,239,433 18,936

611,563

112,522

1,822,758

989

78,101,301

(4,324,902)

375,000 2,105,216

(2,108,216) 320,115

692,115

(3,632,787)

19,223,560

$ 15,590,773

Actual Amounts (GMP

Basis - See

Note ID A)

$ 13,548,302 55,623,796

7,031,758

76,203,856

37,704,223 798,521

525,209 723,512

4,348,191 2,316,272

60,030 912,414

3,513,891

6,154,170 2,406,424

2,579,608

7,986,100 569,900

1,096,262 16,549

611,486 112,138

670,012

989

73,105,901

3,097,955

328,924

2,017,050 (2,020,050)

320,115

646,039

3,743,994

19,223,560

$ 22,967,554

EXHIBITC-5

Variance With Final Budget Positive or (Negative)

$ 853,743

399,721

1,173,993

2,427,457

1,921,585 45,477

66,440

41,451 91,482

95,542 44,776

70,587

114,707 16,042

68,177 133,788

955,503 31,078

143,171 2,387

77 384

1,152,746

4,995,400

7,422,857

(46,076)

(88,166)

88,166

(46,076)

7,376,78t

$ 7,376,781

II

II

I I I I

LOS FRESNOS CONSOLIDATED ISD STATEMENT OF NET ASSETS

PROPRIETARY FUNDS AUGUST 31,2010

--.---~~ .. ~~

ASSETS Current Assets:

Cash and Cash Equivalents Due from Other Funds

Total Assets

LIABILITIES Current Liabilities:

Accounts Payable Accrued Expenses

Total Liabilities

NET ASSETS

Unrestricted Net Assets

Total Net Assets

The notes to the financial statements are an integral part of this statement.

18

EXHIBITD-I

Governmental Activities ~

Total Internal

Service Funds

$ 4,053,208 2,826

4,056,034

111,402 215,803

327,205

3,728,829

$ 3,728,829

i I [ I [ I

I I

EXHIBITD-2 LOS FRESNOS CONSOLIDATED ISD

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS

OPERATING REVENUES:

Local and Intermediate Sources

Total Operating Revenues

OPERATING EXPENSES:


Professional and Contracted Services Other Operating Costs

Total Operating Expenses

Operating Income

NONOPERATING REVENUES (EXPENSES):

Earnings from Temporary Deposits & Investments Non-operating Expenses

Total Nonoperating Revenues (Expenses)

Change in Net Assets

Total Net Assets - September 1 (Beginning)

Total Net Assets - August 31 (Ending)

The notes to the fmancial statements are an integral part ofthis statement.

19

Governmental Activities ~

Total

Internal Service Funds

$ 7,629,398

7,629,398

30,475 6,118,107

6,148,582

1,480,816

6,186 (320,115)

(313,929)

1,166,887

2,561,942

$ 3,728,829

[ I

i I f I f I

LOS FRESNOS CONSOLIDATED ISD STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS FOR THE YEAR ENDED AUGUST 31, 2010

Cash Flows from Operating Activities:

Cash Received from User Charges Cash Payments for Insurance Claims

Net Cash Provided by Operating Activities

Cash Flows from Non-Capital Financing Activities:

Non-operating expenses

Cash Flows from Investing Activities:

Interest and Dividends on Investments

Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning ofthe Year:

Cash and Cash Equivalents at the End of the Year:

Reconciliation of Operating Income to Net Cash Provided by Operating Activities:

Operating Income: .

Effect of Increases and Decreases in Current Assets and Liabilities:

Decrease (increase) in Due from Other Funds Decrease (increase) in Other Receivables Increase (decrease) in Accounts Payable Increase ( decrease) in Accrued Expenses

Net Cash Provided by Operating Activities


20

EXHIBITD-3

Governmental Activities·

$

Total

Internal

Service Funds

7,626,572 (6,058,906)

1,567,666

(320,115)

6,186 ----

$

$

$

. 1,253,737

2,799,471

4,053,208

1,480,816

(1,543) 1,458

58,630 28,305

1,567,666

[ I [ I

I I

, I

, I

I

ASSETS

Cash and Cash Equivalents

Total Assets

LIABILITIES

Accounts Payable

Due to Student Groups

Total Liabilities

LOS FRESNOS CONSOLIDATED ISD STATEMENT OF FIDUCIARY NET ASSETS

FIDUCIARY FUNDS AUGUST 31, 2010


21

EXHIBITE-I

Agency

Fund

$ 77,827

$ 77,827

$ 1'8,710

59,117

$ 77,827

II

I.

, I

LOS FRESNOS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED AUGUST 31, 2010

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Los Fresnos Consolidated Independent School District (the "District") is a public educational agency operating under the applicable laws and regulations of the State of Texas. The Board of Trustees (the "Board"), a sevenmember group, has governance responsibilities over all activities related to educational services within the jurisdiction of the District. The District prepares its basic fmaneial statements in conformity with generally accepted accounting principles promulgated by the Governmental Accounting Standards Board and other authoritative sources identified in Statement on Auditing Standards No. 69 of the American Institute of Certified Public Accountants; and it complies with the requirements ofthe appropriate version of Texas Education Agency's

. Financial Accountability System Resource Guide (the "Resource Guide") and the requirements of contracts and grants of agencies from which it receives funds.

A. REPORTING ENTITY

The Board is elected by the public and has the authority to make decisions, appoint administrators and managers, significantly influence operations of the district, and has the primary accountability for fiscal matters. The District is not included in any other governmental "reporting entity" as defmed by the Governmental Accounting Standards Board ("GASB") in its Statement No. 14, The Financial Reporting Entity and there are no component units included within the reporting entity.

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 District with the interfund activities removed. Governmental activities include programs supported primarily by grants, state foundation funds and other intergovernmental revenues.

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" colunm 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. The "grants and contributions" colunm includes amounts paid by organizations outside the District to help meet the operational or capital requirements of a given function. Examples include grants through the Department of Education, Department of Health & Human Services and Texas Education Agency. Ifrevenue is not program revenue, it is general revenue used to support all of the District's functions.

Interfund activities between governmental funds appear as due to/due froms 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.

The fund fmaneial statements provide reports on the financial condition and results of operations for three fund categories - governmental, proprietary, and fiduciary. Since the resources in the fidueiary 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 fmancial condition and results of operations in a separate colunm.

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.

22

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION

The government-wide fmancial statements use the economic resources measurement focus and the accrual basis of accounting, as do the proprietary fund and fiduciary fund fmancial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund fmancial statements use the current fmancial 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 tlle balance sheet. Operating statements of these funds present net increases and decreases in current assets (Le., revenues and other fmancing sources and expenditures and other fmancing uses).

The modified accrual basis of accounting recognizes revenues in the accounting period in which they become both measurable and available, and it recognizes expenditures in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest and principal on long-term debt, which is recognized when due. The expenditures related to certain compensated absences and claims and judgments are recognized when the obligations are expected to be liquidated with expendable available financial resources. The District considers all revenues available if they are collectible within 60 days after year end.

Revenues from local sources consist primarily of property tax revenue. Miscellaneous revenues are recorded as revenue when received in cash because they are generally not measurable until actually received. Investment earnings are recorded as earned, since they are both measurable and available.

Grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant. Accordingly, when such funds are received, they are recorded as deferred revenues until related and authorized expenditures have been made. If balances have not been expended by the end of the project period, grantors sometimes require the District to refund all or part ofthe unused amount.

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 revenues in the accounting period in which they are earned and become measurable and expenses in the accounting period in which they are incurred and become measurable.

The District applies all GASB pronouncements as well as the Financial Accounting Standards Board pronouncements issued on or before November 30, 1989, unless these pronouncements conflict or contradict GASB pronouncements. With this measurement focus, all assets and all liabilities associated with the .operation of these funds are included on the fund Statement of Net Assets. The fund equity is segregated into invested in capital assets net of related debt, restricted net assets, and unrestricted net assets.

D. BASIS OF PRESENTATION - FUND ACCOUNTING

The District reports the following major governmental funds:

1. General Fund - is used to account for fmancial resources used for general operations. This is a budgeted fund and any fund balances are considered resources available for current operations. All revenues and expenditures not required to be accounted for in other funds, are accounted for in this fund.

23

II II

I.

i I

, I

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

D. BASIS OF PRESENTATION - FUND ACCOUNTING (Continued)

Additionally, the District reports the following fund type(s):

Governmental Funds:

I. Special Revenue Funds - are used to account for resources restricted to, or designated for, specific purposes bya grantor. Federal and state fmancial assistance genenilly is accounted for in a Special Revenue Fund. Normally, unused balances are returned to the grantor at the close of specified project periods.

2. Capital Projects Fund - is used to account for proceeds from long-term debt fmancing and revenues and expenditures related to authorized construction and other capital asset acquisitions.

3. Debt Service Fund - is used to account for resources accumulated and payments made for principal and interest on long-term general obligation debt of governmental funds in a debt service fund.

4. Permanellt Funds - is used to account for donations for which the donor has stipulated that the principal may not be expended and where the income may only be used for purposes that support the District's programs. The District has no Permanent Funds.

Proprietary Fund:

1. Enterprise Funds - are used to account for those operations that are fmanced and operated in a manner similar to private business. The District has no Enterprise funds.

2. Internal Service Funds - are used to account for revenues and expenses related to services provided to organizations inside the District on a cost reimbursement basis are accounted for in an internal service fund.

Fiduciary fuuds:

I. Private Purpose Trust Funds - are used to account for donations, which have stipulations that the principal may not be expended; only the income may be used for a specific purpose. The District has no Private Purpose Trust Funds.

2. Agency Funds - are used to account for resources held for others in a custodial capacity in agency funds. The District's Agency Funds are the Student Activity Accounts.

E. OTHER ACCOUNTING POLICIES

1. For purposes of the statement of cash flows, the District considers highly liquid investments to be cash equivalents if they have a maturity of three months or less when purchased.

2. The District uses the purchase method of accounting for inventory. An immediate change for inventory costs is recorded under the appropriate supply expenditure code and inventories are not reported on the balance sheet unless there is a significant amount at the fiscal year end. There were no significant amounts of inventory on hand at August 31, 2010.

3. In the government-wide financial statements, and proprietary fund types in the fuud fmancial statements, long-term obligations are reported as liabilities in the applicable governmental activities statement of net assets.

24

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICmS (Continned)

E. OTHER ACCOUNTING POLICIES (Continued)

4. Capital assets, which include land, buildings, vehicles, furniture & equipment and construction in progress, are reported in the applicable govermnental activities columns in the govermnent-wide fmancial statements. Capital assets are defmed 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 the 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, vehicles and furniture & equipment of the District is depreciated using the straight line method over the following estimated useful lives:

Land Improvements 20 Buildings 45 Vehicles 6 Office Equipment 3- i 0 Fumiture& Equipment 5-15

5. In the fund fmaneial statements, govermnental funds report reservations of fund balance for amounts that are not available for appropriation by outside parties for use for a speeific purpose. Designations of fund balance represent tentative management plans that are subject to change for future construction needs.

6. 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.

7. The Data Control Codes refer to the account code structure prescribed by TEA in the Financial Accountability System Resource Guide. The Texas Education Agency requires school districts to display these codes in the fmancial statements filed with the Agency in order to insure accuracy in building a statewide data base for policy development and funding plans.

8. The District is exposed to various risks of loss related to torts, theft, damage or destruction of assets, errors and omissions, n,juries to employees, and natural disasters. During fiscal year 2010, the District purchased commercial insurance to cover general liabilities.

9. Compensated absences do not vest and employees can only be paid sick leave when sick since the employees' accumulating rights to receive compensation from future absences being caused by future illnesses and such amounts cannot be reasonably estimated. However, the District recorded a liability for $2,079,130 for accumulated employee sick leave as of August 3 1,2010.

II. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS

A. EXPLANATION OF DIFFERENCES BETWEEN THE GOVERNMENTAL FUND BALANCE SHEET AND THE GOVERNMENT-WIDE STATEMENT OF NET ASSETS

Exhibit C-2 provides the reconciliation between the fund balance for total govermnental funds on the govermnental fund balance sheet and the net assets for govermnental activities as reported in the govermnent-wide statement of net assets.

One element of that reconciliation explains that capital assets are not fmancial resources and are therefore not reported in govermnental funds. In addition, long-term liabilities, including capital leases payable, are not due and payable in the current period and are not reported as liabilities in the funds. The details of capital assets and long-term debt at the beginning of the year were as follows:

25

i I

II

1 I , I

n. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (Continued)

A. EXPLANATION OF DIFFERENCES BETWEEN THE GOVERNMENTAL FUND BALANCE SHEET AND THE GOVERNMENT-WIDE STATEMENT OF NET ASSETS (Continued)

Capital Assets at the

Beginning of Year

Land Buildings Vehicles Furniture & Equipment Construction in Progress


Long -Term Liabilities at the

Beginning of Year

Bonds Payable Capital Leases Payable Loans Payable Compensated Absences


Net Adjustment to Net Assets

Historic

Cost

$ 3,360,923 109,090,338

5,895,422 7,382,421 6,320,798

Accumulated

DeQreciation

$ (24,034,269) .

(4,846,144) (3,135,897)

Net Value at the Change in

Beginning of Year Net Assets

$ 3,360,923 85,056,069

1,049,278 4,246,524 6,320,798

100,033,592

Payable at the

Beginning of Year

(51,170,000) (684,753)

(2,743,508) (2,172,287)

(56,770,548)

$ 43,263,044

B. EXPLANATION OF DIFFERENCES BETWEEN THE GOVERNMENTAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES AND THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES

Exhibit C-4 provides a reconciliation between the net changes in fund balance as shown on the governmental fund statement of revenues, expenditures and changes in fund balances and the changes in net assets of governmental activities as reported on the government-wide statement of activities. One element of that reconciliation explains that current year capital outlays and debt principal payments are expenditures in the fund financial statements, but should be shown as increases in capital assets and decreases in long

. term debt in the government-wide statements. This adjustment affects both the net asset balance and the change in net assets. The details of this adjustment are as follows:

Adjustments to Adjustments in Current Year CaQital Outlay Amount Changes in Net Assets Net Assets

Land $ 24,944 $ 24,944 Buildings & Improvements 2,956,288 2,956,288 Vehicles 685,106 685,106 Furniture & Equipment 1,208,497 1,208,497 Construction in Progress 538,577 538,577

Total Capital Outlay $ 5,413,412

Debt Princillal Pawents

Bonds Payable 3,180,000 3,180,000 Capital Lease Payments 341,564 341,564 Loans Payable 269,922 269,922

Total Principal Payments 3,791,486 3,791,486 3,791,486

Proceeds from Capital Leases (328,924) (328,924) (328,924)

Net Adjustment to Net Assets $ 8,875,974

26

m. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

A. BUDGETARY DATA

The Board of Trustees adopts an "appropriated budgef' for the General Fund, which is included in the General Fund. The District is required to present the adopted and final amended budgeted revenues and expenditures. The District compares the final amended budget to actual revenues and expenditures. The General Fund Budget report appears in Exhibit C-5.

The following procedures are followed in establishing the budgetary data reflected in the general-purpose financial statements:

1. Prior to August 20th the District prepares a budget for the next succeeding fiscal year beginning September 1 'to The operating budget includes proposed expenditures and the means offmancing them.

2. A meeting of the Board is then called for the purpose of adopting the proposed budget. Public notice of the meeting must be given at least ten days prior to the meeting.

3. Prior to September I", the budget is legally enacted through passage of a resolution by the Board. Once a budget is approved, it can only be amended at the function and fund level by approval of a majority ofthe members of the Board. Amendments are presented to the Board at its regular meetings. Each amendment must have Board approval. As required by law, such amendments are made before the fact, are reflected in the offieial minutes of the Board, and are not made after fiscal year-end. During the year, the budget was amended as necessary. Because the District has a policy of careful, conservative budgetary control, the following budget amendments were significant during the year:

$ 211,394 General Fund roll-forward funds for ERATE projects.

$ 1,182,430 General Fund increase for Dora Romero Elementary furniture and start up costs.

$ 200,000 General Fund increase for instructional vacancy.

$ 220,961 General Fund increase for UIL higher participation, one time athletic equipment, and upgrade student and fmaneial software.

4. Each budget is controlled by the budget coordinator at the revenue and expenditure function or object level. Budgeted amounts are as amended by the Board. All budget appropriations lapse at year-end.

5. Encumbrances for goods or purchased services are documented by purchase orders or contracts. Under Texas law, appropriations lapse at August 31 ", and encumbrances outstanding at that time are to be either canceled or appropriately provided for in the subsequent year's budget.

IV. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS

A. DEPOSITS AND INVESTMENTS

The funds of the District must be deposited and invested under the terms of a contract, contents of which are set out in the Depository Contract Law. The depository bank places approved pledged securities for safekeeping and trust with counterparty's trust department in the Districts name in an amount sufficient to protect District funds on a day-to-day basis during the period of the contract. The pledge of approved securities is waived only to the extent of the depository bank's dollar amount of Federal Deposit Insurance Corporation ("FDIC") insurance.

At August 31, 2010, the carrying amount of the District's deposits (cash, certificates of deposit, and interest-bearing savings accounts included in temporary investruents) was $8,419,647 and the bank balance was $8,414,225. The District's cash deposits at August 31, 20 I 0 and during the year were covered by FDIC insurance or by pledged collateral held by the District's agent bank in the District's name. The District monitors cash flows regularly when TEA funds are received to ensure that the bank pledges sufficient collateral.

27

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IV. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)

A. DEPOSITS AND INVESTMENTS (Continued)

In addition, the following is disclosed regarding coverage of combined balances on the date of highest deposit:

a. Depository: Wells Fargo Bank

b. The market value of securities pledged as of the date of the highest combined balance on deposit was $23,209,111.

c. The highest combined balances of cash, savings, and time deposit accounts amounted to $19,480,273 and occurred during the month ofJanuary 2010.

d. Total amount of FDIC coverage at the time of the highest combined balance was $500,000.

District Policies and Legal Contractual Provisions Governing Deposits

Custodial Credit Risk for Deposits - State law requires govermnental entities to contract with ·fmancial institutions in which funds will be deposited to secure on deposit at the end of each business day. The pledged securities must be in the name of the govermnental entity and held by the entity or its agent. Since the District complies with this law, it has no custodial risk for deposits.

Foreign Currency Risk for Deposits - The District limits the risk that changes in exchange rates will adversely affect the fair value of a deposit. At year-end, the District was not exposed to foreign currency risk.

District Policies and Legal Contractual Provisions Governing Investments

The Public Funds Investment Act (Govermnent Code Chapter 2256) contains specific provisions in the areas· of investment. practices, management reports and establishment of appropriate policies. Among other things, it requires the District to adopt, implement, and publicize an investment policy. The policy must address the following areas: (I) safety of principal and liquidity, (2) portfolio diversification, (3) allowable investments, (4) acceptable risk levels, (5) expected rates of return, (6) maximum allowable stated maturity of portfolio investments, (7) maximum average dollar-weighted maturity allowed based on the stated maturity date for the portfolio, (8) investment staff quality and capabilities, (9) and bid solicitation preferences for certificates of deposit. The Statutes authorize the District to invest in (I) obligations of the U.S. Treasury, certain U.S. agencies, and the State of Texas; (2) certificates of deposit, (3) certain municipal securities, (4) money market savings accounts, (5) repurchase agreements, (6) bankers acceptances, (7) Mutual Funds, (8) Investment pools, (9) guaranteed investment contracts, (lO) and common trust funds. The Act also requires the District to have independent auditors perform test procedures related to investment practices as provided by the Act. The district is in substantial compliance with the requirements of the Act and with local policies.

The District's temporary investments at August 31, 2010, are shown below:

Investment Maturities {in ~ears} Fair Less More

Investment Tn~e Value Than 1 Ito 5 6 to 10 Than 10 Agency Bonds and Discount Notes

Lone Star Investment Pool $ 13,506,846 $ 13,506,846 $ $ $ TexPool 8,632,319 8,632,319

Total $ 22,139,165 $ 22,139,165 $ $ $

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A. DEPOSITS AND INVESTMENTS (Continued)

Additional policies and contractual provisions governing deposits and investments for the District are specified below:

Credit Risk - In accordance with state law and the District's investment policy, investments in mutual funds and investment pools must be rated at least AAA or have an equivalent rating, commercial paper must be rated at least A-I, P·I or have an equivalent rating, and obligations of states, agencies, counties, and cities must be at least A or its equivalent. At year-end, the District was not exposed to credit risk.

Custodial Risk for Investments - For an investment, this is the risk that, in the event of the failure of the counterparty, the District will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. All investments held by third parties were fully collateralized and held in the District's name.

Concentration of Credit Risk - The investment portfolio is diversified in terms of investment instruments and maturity scheduling to reduce risk of loss resulting from over concentration of assets in specific class of investments, specific maturity or specific issuer. As of August 31, 2010, the District had 100% of its investments in money market accounts.

Interest Rate Risk- In accordance with state law and the District's investment policy, the District does not purchase any investments greater than five (5) years for its operating funds.

Foreign Currency Risk for Investments - The District limits the risk that changes in exchange rates will adversely affect the fair value of an investment. At year-end, the District was not exposed to foreign currency risk.

B. PROPERTY TAXES

Property taxes are levied by October I" on the assessed value listed as of the prior January I" for all real and business personal property located in the District in conformity with Subtitle E, Texas Property Tax Code. The assessed value of the certified roll upon which the levy for the current fiscal year was based, was $1,114,276,718. The tax rates assessed for the year ended August 31, 2010 as follows:

$ 1.040 ---.JQQ $..l.2l)J)

For the purpose of maintenance and operations . For the payment of principal and interest on bonds

Total tax rate

Taxes are due on receipt of the tax bill and are delinquent if not paid before February 1" of the year following the year in which imposed. On January 31'1 of each year, a tax lien attaches to property to secure the payment of all taxes, penalties, and interest ultimately imposed. Property tax revenues are considered available when they become due or past due and receivable within the current period.

C. DELINQUENT TAXES RECEIVABLE

Delinquent taxes are prorated between maintenance and debt service based on rates adopted for the year of the levy. Allowances for uncollectible tax receivables within the General and Debt Service funds are based on historical experience in collecting property taxes. Uncollectible personal property taxes are periodically reviewed and written off, but the District is prohibited from writing off real property taxes without specific statutory authority from the Texas Legislature.

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D. DUE FROM OTHER GOVERNMENTS

E.

The District participates in a variety of federal and state programs from which it receives grants to partially or fully fmance certain activities. In addition, the District receives entitlements from the State through the School Foundation and Per Capita Programs. Amounts due from federal and state governments as of August 31, 2010, are summarized below:

State Federal Fund Entitlements Grants Total

General $ 1,990,925 $ 208,260 $ 2,199,185 Special Revenue 56,093 1,309,202 1,365,295

Total $ 2,047,018 $ 1,517,462 $ 3,564,480

INTERFUND RECEIVABLES AND PAY ABLES

Interfund balances at August 31,2010 consisted of the following individual fund balances:

General Fund:

General Fund Special Revenue Fund Debt Service Fund Capital Projects Fund Interal Service Fund

Total General Fund

Special Revenue Fund:

General Fund

Total Special Revenue Fund

Capital Projects Fund:

General Fund

Total Capital Projects Fund

Debt Service Fund:

General Fund

Total Debt Service Fund

Internal Service Fund:

General Fund

Total Internal Service Fund

Totals

$

$

Due from Other Funds

546,590 965,244

1,511,834

27,265

27,265

13,021

13,021

2,826

2,826

1,554,946

$

$

Due to .Other Funds

546,590

13,021 27,265

2,826 589,702

965,244

965,244

1,554,946

Balances resulted from the time lag between the dates that 1) inter-fund goods and services are provided and/or reimbursement expenditures occur, 2) transactions are recorded in the accounting system and 3) payments between funds are made.

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N. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)

F. CAPITAL ASSET ACTNITY

Capital asset activity for the District for the year ended August 31, 20 I 0, was as follows:

Prinia!2: Government Chan!!es Durin!! Year

Balance Reclassifications!

Governmental Activities: 9/112009 Additions Deletions Adjustments

Land $ 3,360,923 $ 24,944 $ $ Buildings & Improvements 109,090,338 2,956,288 6,320,797 Furniture and Equipment 7,382,421 1,208,497 Vehicles 5,895,422 685,106 (127,545) Construction in Progress 6,320,798 538,577 (6,320,797)

Totals at Historic Cost 132,049,902 5,413,412 (127,545)

Less Accumulated Depreciation: Buildings & Improvements (24,034,269) (2,579,369) Furniture and Equipment (3,135,897) (757,272) (510,691) Vehicles (4,846,144) (586,917) 52,167 510,691

Total Accum. Depreciation (32,016,310) (3,923,558) 52,167

Governmental Activities Capital Assets, Net $ 100,033,592 $ 1,489,854 $ (75,378) $

Depreciation expense was charged to governmental functions as follows:

Student (pupil) Transportation General Administration Plant Maintenance & Operations

Totals

$ 1,052,927 261,593

2,609,038

$ 3,923,558

Balance

8/3112010

$ 3,385,867 118,367,423

8,590,918 6,452,983

538,578

137,335,769

(26,613,638) (4,403,860) (4,870,203)

(35,887,701)

$ 101,448,068

G. LONG-TERM OBLIGATIONS

Bonds Payable

Bonded indebtedness of the District is reflected within the Statement of Net Assets and current requirements for principal and interest expenditures are accounted for in the Debt Service Fund. A summary Qf change for long-term debt for the year ended August 31, 2010 is as follows:

Original Interest Interest Issue Current Balance Principal Balance

Description Rate Amount Year 9/01/09 Retired 8/31/10

Unlimited Tax School Building, Series 2000 5.00-6_00% $ 20,000,000 $ 42,750 $ 900,000 $ (900,000) $

Unlimited Tax Refunding Bonds, Series 200 I 3.38-4.38% 7,703,285 109,781 2,545,000 (1,250,000) 1,295,000

Unlimited Tax Refunding Bonds, Series 2006 4.75-6.00% 16,930,000 .663,000 15,885,000 (610,000) 15,275,000

Unlimited Tax School Building, Series 2006 4.00-4.50% 32,955,000 1,512,276 31,840,000 (420,000) 31,420,000

Totals $ 2,327,807 $ 51,170,000 $ (3,180,000) $ 47,990,000

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II 11 IV. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)

G.

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LONG-TERM OBLIGATIONS (Continued)

Bonds Payable (Continued)

The Unlimited Tax School Building Bonds, Series 2000 in the amount of $20,000,000 were issued for the purpose of fmancing the acquisition, construction, and equipping of school buildings and making other improvements. The bonds were issued with interest rates varying from 5.00% to 6.00%.

In 2001, the District issued Unlimited Tax Refunding Bonds in the amount of $7,703,285. The bonds were issued with interest rates varying from 3.38% to 4.38%.

The Unlimited Tax Refunding Bonds, Series 2006 in the amount of $16,929,992 were issued to refund a portion of the District's Unlimited Tax School Building Bonds, Series 1997 and Series 2000. The bonds were issued with.interest rates varying from 4.75% to 6.00%.

The Unlimited Tax School Building Bonds, Series 2006 in the amount of $32,955,000 were issued for the purpose of fmancing the acquisition, construction, and equipping of school buildings. The bonds were issued with interest rates varying from 4.00% to 4.50%.

There are a number of limitations and restrictions contained in the general obligation bond indentmes. Management has indicated that the District is in compliance with all significant limitations and restrictions at August 31, 2010.

Los Fresnos Consolidated Independent School District has entered into a continuing disclosure undertaking to provide Annual Reports and Material Event Notices to the State Information Depository of Texas (SID), which is the Municipal Advisory Council. This information is required under SEC Rule 15c2-12 to enable. investors to analyze the fmancial condition and operations to the District.

Debt service requirements are as follows:

Year Ending

August 31, Princil2al

2011 $ 2,244,992 2012 2,040,000 2013 2,120,000 2014 2,210,000 2015 2,300,000

2016-2020 10,960,000 2021-2025 3,630,008 2026-2030 4,530,000 2031-2035 5,725,000 2036-2040 7,295,000 Thereafter 4,935,000

Totals $ 47,990,000

Interest

$ 3,261,741 2,116,927 2,034,757 1,948,770 1,859,133 7,845,887 6,031,228 5,129,500 3,940,880 2,363,750

483,250

$ 37,015,823

32

Total

$ 5,506,733 4,156,927 4,154,757 4,158,770 4,159,133

18,805,887 9,661,236 9,659,500 9,665,880 9,658,750 5,418,250

$ 85,005,823

IV. DETAILED NOTES ON ALL FUNDS ANn ACCOUNT GROUPS (Continued)

G. LONG-TERM OBLIGATIONS (Continued)

H.

Advance Refunding

On February 2006, the government issued $16,929,992 of tax bonds to provide resources to purchase U.S. Government State and Local Government Series Securities that were placed in an irrevocable trust for the purpose of generating resources for all future debt service payments of $25,695,234 of general obligation bonds. As a result, the refunded bonds are considered to be defeased and the liability has been removed from the governmental activities column of the statement of net aSSets. This advance refunding was undertaken to reduce total debt service payments over the next 17 years by $740,919 and resulted in an economic gain of $562,347.

Loan Payable

The District has entered into a loan agreement through the LoanSTAR Revolving Loan Program with the Texas Comptroller of Public Accounts, State Energy Conservation Office, in the amount of$2,743,508. The purpose of this loan is to assist the District in reducing their utility bills. The loan was issued with an interest rate of3.00%.

Loan payable requirements are as follows:

Year Ending

August 31, Princil1al Interest Total

2011 $ 278,111 $ 76,430 $ 354,541 2012 286,549 67,993 354,542 2013 295,243 59,300 354,543 2014 304,200 50,343 354,543 2015 313,429 41,113 354,542

2016-2019 996,054 67,096 1,063,150

Totals $ 2,473,586 $ 362,275 $ 2,835,861

COMMITMENTS UNDER LEASES

Ollerating Leases

The District has entered into several operating leases that contain cancellation provisions subject to annual appropriations. For the year ended August 31, 2010, expenditures were $118,566 in General Fund and $83,869 in other funds.

Cal1ital Leases

The District has entered into capital leases to acquire school buses for a combined cost of $1,000,629. The interest rates for the leases range from 2:920% to 4.60%. The leases were authorized under section 271.005 of the Local Government Code.

The minimum annual lease payments, which are paid from the general fund, are as follows:

Year Ending

August 31, Princil1al Interest Total

2011 $ 335,504 $ 23,170 $ 358,674 2012 223,797 10,617 234,414 2013 112,812 3,294 116,106

Totals $ 672,113 $ 37,081 $ 709,194

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CHANGES IN LONG-TERM ACTIVITY

Long-tenn liability activity for the governmental activities for the governmental activities for the year ended August 31,2010, was as follows:

Balance Balance Due Within Governmental Activities: 9/112009 Additions Reductions 8/3112010 One Year

Bonds Payable $51,170,000 $ $ (3,180,000) $47,990,000 $ 2,244,992 Capital Leases Payable 684,753 328,924 (341,564) 672,113 335,504 Loans Payable 2,743,508 (269,922) 2,473,586 278,111 Compensated Absences 2,172,287 {93,157) 2,079,130

Totals $ 56,770,548 $ 328,924 $ {3,884,643) $ 53,214,829 $ 2,858,607

DEFINED BENEFIT PENSION PLAN

The Los Fresnos Consolidated Independent School District contributes to the Teacher Retirement System of Texas (TRS), a cost-sharing multiple employer defined benefit pension plan. TRS administers retirement and disability annuities, and death and survivor benefits to employees and beneficiaries of employees of the public school systems of Texas. It operates primarily under the provisions of the Texas Constitution, Article XVI, Sec. 67, and Texas Government Code, Title 8, Subtitle C. TRS also administers proportional retirement benefits and service credit transfer under Texas Government Code, Title 8, Chapters 803 and 805, respectively. The Texas state legislature has the authority to establish and amend benefit provisions of the pension plan and may, under certain circumstances, grant special authority to the TRS Board of Trustees. TRS issues a publicly available fmancial report that includes fmancial statement and required supplementary infonnation for the defmed benefit pension plan. That report may be obtained by writing to the TRS Communications Department, 1000 Red River Street, Austin, Texas 78701, by calling the TRS· Communications Department at 1-800-223-8778, or downloading the report from the TRS Internet website, www.trs.state.lx.us. under the TRS Publications heading.

State law provides for fiscal year 2008, 2009 and 20 lOa state contribution rate of 6.0% and a member contribution rate of 6.4%. In certain instances the reporting district is required to make all or a portion of the state's 6.0% contribution. Contribution requirements are not actuarially detennined but are legally established each biennium pursuant to the following state funding policy:

(I) The state constitution required the legislature to establish a member contribution rate of no less than 6.0% of the member's annual compensation and a state contribution rate of not less than 6.0% and not more than 10.0% of the aggregate annual compensation of all members of the system during that fiscal year,

(2) A state statute prohibits benefit improvements or contribution reductions if, as a result of a particular action, the time required to amortize TRS's unfunded actuarial liabilities would be increased to a period that exceeds 31 years, or, if the amortization period already exceeds 31 years, then the period would be increased by such action.

State contributions to TRS made on behalf of the Los Fresnos Consolidated Independent School District employees for the years ended August 31, 2008, 2009, and 2010 were $2,704,975, $2,624,421 and $2,996,474 respectively. The Los Fresnos Consolidated Independent School District paid additional state contributions for the years ended August 31, 2008, 2009, and 2010 in the amount of $525,053, $535,469 and $435,601 respectively, on the portion of the employees' salaries that exceed the statutory minimum.

Medicare Part D

Federal legislation enacted in January 2006 established prescription drug coverage for Medicare beneficiaries known as Medicare Part D. As a result, this provision 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 phannacy claims paid by TRS-Care on behalf of plan participants. GASB Statement No. 24 requires recognition of these on-behalf payments in the fmaneial statements. Medicare Part D payments made on-behalf of Los Fresnos CISD participants for the years ended August 31, 2008, 2009, and 2010 were $119,115, $114,351 and $137,104 respectively.

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K. RISK MANAGEMENT

The District is exposed to various risks ofloss related to torts; theft of, damage to and destrnction of assets; errors and omissions and natural disasters for which the District carries commercial insurance. There have been no significant reductions in coverage from the prior year.

Health Care Coverage

The District sponsors a modified self-insurance plan to provide health care benefits to staff members and their dependents. Transactions related to the plan are accounted for in the Health Insurance Fund (the "Fund"), an internal service fund of the District. Partial staff member contributions are required for personal coverage and total staff member contributions are required for coverage of dependents. The District obtained excess loss insurance tbrough BCBS, TX, which limited annual claims paid from the Fund for the year, ended August 31, 2010, to $150,000 for any individual participant and an aggregate limit equal to $5,987,088.

Estimates of claims payable and of claims incurred, but not reported at August 31,2010, are-reflected as accounts and claims payable of the Fund. The plan is funded to discharge liabilities of the Fund as they become due. Changes in the balances of claims liabilities during the past year are as follows:

Unpaid claims, beginning of year Incurred claims (including IBNR's) Claim payments

Unpaid claims, end of fiscal year

Worker's Compensation Coverage

Year Ended -August 31, 2009 $ 437,110

3,903,207 (4,152,819)

$ 187,498

Year Ended August 31, 2010 $ 187,498

4,689,023 (4,660,718)

$ 215,803

As of September 1,2005, the District established a modified self-insurance plan for Workers' Compensation claims tbrough the TASB Risk Management Fund (the"Fund"). Claims incurred prior to September 1,2005 were fully insured tbrough coverage purchased from the Fund.

Transactions related to the modified self-insurance plan are accounted for in the Workers' Compensation Fund, an internal service fund of the District. The District obtained excess loss insurance coverage tbrough the Fund which provides an aggregate limit. After the aggregate limit has been met, the Fund is responsible for additional claims. The plan is funded to discharge liabilities of the Workers' Compensation as they become due. The following information is provided for the period September 1, 2005 tbrough August 31, 2010.

Estimated

Fund School Aggregate Paid Estimated Outstanding Year Year Liability Claims Claims Liability

2005 05-06 $ 461,280 $ 207,412 $ 266,129 $ 58,716 2006 06-07 501,252 300,165 408,345 108,180 2007 07-08 543,357 345,727 469,986 124,258 2008 08-09 526,785 120,305 254,572 134,268 2009 09-10 584,587 150,147 492,543 342,396

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L. DEFERRED REVENUE

Deferred revenue at year-end consisted of the following:

General Special Debt

Description Fund Revenue Service Total

Net Tax Revenue $ 3,119,987 $ $ 493,375 $ 3,613,362 Other 29,540 22,801 52,341

Totals $ 3,149,527 $ 22,801 $ 493,375 $ 3,665,703

M. USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS

The preparation of fmancial statements inconformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities andlor disclosures of contingent liabilities at the date of the fmancial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

N. REVENUE FROM LOCAL AND INTERMEDIATE SOURCES

O.

During the current year, revenues from local and intermediate sources consisted of the following:

General Special Debt Capital

Description Fund Revenue Service Projects Total

Property Taxes $ 12,233,790 $ $ 1,863,299 $ $ 14,097,089 Penalties & Interest 656,796 91,779 748,575 Investment Income 44,162 68 7,804 53,419 105,453 Food Sales 338,015 338,015 Co-curricular Student Act. 121,856 38,775 160,631 Rent 589 589 Other 153,094 367,348 520,442

Totals $ 13,548,302 $ 406,191 $ 1,962,882 $ 53,419 $ 15,970,794

COMMITMENTS AND CONTINGENT LIABILITIES

The District participates in numerous state and federal grant programs, which are governed by various rules and regulations of the grantor agencies. Costs charged to the respective grant programs are subject to audit and adjustment 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 monies received may be required and the ability to collect any of the related receivable at August 31, 2010 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 combined fmancial statements for such contingencies.

36


P. MAINTENANCE OF EFFORT

The District sponsors a modified self-insurance plan to provide health care benefits to staff members and their dependents.

A. Total District premium paid for health care for 2009-20 I 0: $ 5,807,303

B. Subtract any non-medical expenditures: Life insurance $

Dental insurance

Vision insurance Long-term disability

Short-term disability

Alternate plans

COBRA expense

Retiree expense

C. 2009-2010 Maintenance of Effort: $ 5,807,303

Q. FUND BALANCE REPORTING

In preparation for full implementation of new fund balance reporting rules which will become effective in the current year, the District made the following adjustments to its spendable fund balance as of August 31, 2010:

Dissolved, by resolution of the Board of Trustees, designations of $300,000 reserved for debt and $225,000 reserved for the purchase ofland,

Committed, by resolution of the Board of Trustees, $3,000,000 to address capital improvement projects as prioritized by the Board of Trustees in consultation with District administration; and,

Committed, by resolution of the Board of Trustees, $225,000 for th,e purchase ofland.

Committed amounts of fund balance can only be un-committed through official action of the Board of Trustees.

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COMBINING STATEMENTS

LOS FRESNOS CONSOLIDATED ISD COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS AUGUST 31, 2010

204 211 212' 224 Data ESEA Title IV ESEAI,A ESEA Title I Control Safe & Drug Improving parte IDEA - PartB Codes Free Schools Basic Program Migraot Formula

ASSETS 11I0 Cash and Cash Equivalents $ (8,037) $ 71,651 $ (15,894) $ (40,153)

1220 Property Taxes - Delinquent

1230 Allowance for Uncollectible Taxes

1240 Receivables from Other Governments 9,373 861,688 23,448 98,508

1260 Due from Other Funds

1000 Total Assets $ 1,336 $ 933,339 $ 7,554 $ 58,355


Liabilities:

2110 Accounts Payable $ $ 159,586 $ 123 $ 9,089

2160 Accrued Wages Payable' 11,022

2170 Due to Other Funds 1,336 762,731 7,431 49,266

2180 Due to Other Governments

2300 Deferred Revenues

2400 Payable from Restricted Assets

2000 Total Liabilities 1,336 933,339 7,554 58,355

Fund Balances:


Unassigned Fund Balance:

3610 Reported in Special Revenue Funds

3620 Reported in Capital Projects Funds

3000 Total Fund Balances

4000 Total Liabilities and Fund Balances $ 1,336 $ 933,339 $ 7,554 $ 58,355

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225 244 255 Career and ESEAII,A

IDEA·PartB Technical· Training and

Preschool Basic Grant . Recruiting

$ (58) $ (19,492) $ (4,316) $

917 25,310 23,976

$ 859 $ 5,818 $ 19,660 $

$ $ $ 1,813 $

859 5,818 17,847

859 5,818 19,660

$ 859 $ 5,818 $ 19,660 $

EXHIBIT H·I (Cont'd)

261 262 263 266 279 Title 11, D Title III, A Title XIV Title 11, D

Reading Education English Lang. ARRAS!a!e ARRA·Ed. First Technology Acquisition Stabilization Technology

(4,036) $

11,805

7,769 $

4,487 $

3,282

7,769

7,769 $

39

(27,790) $

30,612

2,822 $

998 $

1,685

139

2,822

2,822 $

(13,072) $

19,690

6,618 $

1,540 $

254

4,789

35

6,618

6,618 $

(4,921) $ (3,612)

11,535 7,257

6,614 $ 3,645

$ 1,281

6,614 2,364

6,614 3,645

6,614 $ 3,645 ~~~

LOS FRESNOS CONSOLIDATED ISD COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS AUGUST 31, 2010

283 284 285 288 Data IDEA, PI. B IDEA, PI. B ESEAI,A Control

ARRA ARRA Improving Gear Up Codes Formula Preschool Basic Program Project

ASSETS IllO Cash and Cash Equivalents $ (2,875) $ (228) $ (9,408) $ (4,202) 1220 Property Taxes - Delinquent


1240 Receivables from Other Governments 22,442 228 157,727 4,685 1260 Due from Other Funds

1000 Total Assets $ 19,567 $ $ 148,319 $ 483


Liabilities: 2110 Accounts Payable $ 2,929 $ $ 26,579 $ 483 2160 Accrued Wages Payable 48,322 2170 Due to Other Funds 16,638 73,418 2180 Due to Other Governments

2300 Deferred Revenues

2400 Payable from Restricted Assets

2000 Total Liabilities 19,567 148,319 483

Fund Balances:


Unassigned Fund Balance: 3610 Reported in Special Revenue Funds


3000 Total Fund Balances

4000 Total Liabilities and Fund Balances $ 19,567 $ $ 148,319 $ 483

40

II EXHIBIT H-1 (Cont'd)

II ~ I 289 397 401 404 409 411 415 427

Summer Advanced Optional Student High School Kindergarten TX Educator School Placement Extended Year Success Completion Technology and Pre-K Excellence

i I LEP- RD16 Incentives Program Initiative and Success Allotment Grants Grant

: I $ 2,751 $ 20,009 $ (67) $ (25,435) $ (1,161) $ 175,696 $ (13,866) $ (72)

I 67 25,435 1,461 27,484 1,647

I $ 2,751 $ 20,009 $ $ $ 300 $ 175,696 $ 13,618 $ 1,575

I $ $ $ $ $ 300 $ 12,703 $ 3,253 $ 774

10,365 801

2,751 20,009

2,751 20,009 300 12,703 13,618 1,575

162,993

162,993

$ 2,751 $ 20,009 ~$~~~ $ ~$~~=,,3~OO~ $ 175,696 $ 13,618 ~$~~1~,5~7~5

41

· LOS FRESNOS CONSOLIDATED ISD COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS AUGUST 31,2010

429 461 482 Total Data Other State Campus Nonmajor Control Special Activity Scholarship Special Codes Revenue Funds Funds Fund Revenue Funds

ASSETS lllO Cash and Cash Equivalents $ 41 $ 88,503 $ 2,000 $ 161,956

1220 Property Taxes - Delinquent


1240 Receivables from Other Governments 1,365,295

1260 Due from Other Funds

1000 Total Assets $ 41 $ 88,503 $ 2,000 $ 1,527,251


Liabilities: \ 2110 Accounts Payable $ $ $ $ 225,938

2160 Accrued Wages Payable 59,598

2170 Due to Other Funds 965,244

2180 Due to Other Governments 174

2300 Deferred Revenues 41 22,801

2400 Payable from Restricted Assets 33,630 33,630

2000 Total Liabilities 41 33,630 1,307,385

Fund Balances:


Unassigned Fund Balance:

3610 Reported in Special Revenue Funds 54,873 2,000 219,866


3000 Total Fund Balances 54,873 2,000 219,866

4000 Total Liabilities and Fund Balances $ 41 $ 88,503 $ 2,000 $ 1,527,251

42

! I EXHIBITH-1

i I [ I 599 698 Total

Debt Capital Nonmajor Service Projects Governmental

! I Fund Fund Funds

I I $ 1,616,114 $ 418,797 $ 2,196,867

508,579 508,579

(15,204) (15,204)

, I 1,365,295

13,021 27,265 40,286

, I $ 2,122,510 $ 446,062 $ 4,095,823

$ 81,511 $ 78,890 $ 386,339

59,598

965,244

133,279 133,453

493,375 516,176

I 33,630

574,886 212,169 2,094,440

I 1,547,624 1,547,624

I 219,866

233,893 233,893

I ----

1,547,624 233,893 2,001,383

. I $ 2,122,510 $ 446,062 $ 4,095,823

43

LOS FRESNOS CONSOLIDATED ISD COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN

FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED AUGUST 31, 2010

204 211 212 224 Data ESEA Title IV ESEAI,A ESEA Title! Control Safe & Drug Improving parte IDEA-PartB Codes Free Schools Basic Program Migrant Fonnula

REVENUES: 5700 Total Local and Intennediate Sources $ $ $ $ 5800 State Program Revenues 5900 Federal Program Revenues 68,058 6,039,632 239,073 1,644,149

5020 Total Revenues 68,058 6,039,632 239,073 1,644,149 -----

EXPENDITURES:

Current: OOll Instruction 26,746 4,226,354 53,250 1,185,253 0012 Instructional Resources and Media Services 0013 Curriculum and Instructional Staff Development 556,404 148 5,880 0021 Instructional Leadership 918,831 3,746 0023 School Leadership 28,072 0031 Guidance, Counseling and Evaluation Services 16,383 5,222 83,634 323,797 0032 Social Work Services 58,752 0033 Health Services 4,117 1,414 0036 Extracurricular Activities 41,451 0041 General Administration 130,786 557 0051 Facilities Maintenance and Operations 10,598 0052 Security and Monitoring Services 24,929 4,945 0053 Data Processing Services 0061 Community Services 154,303 42,732 108

Debt Service: 0071 Debt Service - Principal on Long Tenn Debt 0072 Debt Service - Interest on Long Term Debt 0073 Debt Service - Bond Issuance Cost and Fees

Capital Outlay: 0081 Facilities Acquisition and Construction

Intergovernmental: 0093 Payments to Fiscal AgentlMember Districts of 82,500

6030 Total Expenditures 68,058 6,039,632 239,073 1,644,149

llOO Excess (Deficiency) of Revenues Over (Under) Expenditures

OTHER FINANCING SOURCES (USES): 7915 Transfers In

-~~-

7080 Total Other Financing Sources (Uses) --.---- ~~.~-

1200 Net Change in Fund Balance

0100 Fund Balance - September I (Beginning)

3000 Fund Balance - August 3 I (Ending) $ $ $ $

44

! J EXHIBIT H-2 (Cont'd)

: 1 t J

: I 22.5 244 255 261 262 263 266 279

Career and ESEA1I,A Title 11, D Title Ill, A Title XlV Title 11, D

lDEA-PartB Technical- Training and Reading Education English Lang. ARRAState ARRA-Ed.

! I Preschool Basic Grant Recruiting First Technology Acquisition Stabilization Technology

$ $ $ $ $ • $ $ $

I I 30,430 196,965 591,527 154,164 92,055 233,772 2,829,339 380,620 --~~--

30,430 196,965 591,527 154,164 92,055 233,772 2,829,339 380,620

I 20,914 104,690 517,463 29,090 55,478 160,418 2,459,537 364,638

369,802 1,566 487 51,140 122,167 36,577 73,354 15,982

4,166 5,349 11,539 2,907

7,950 87,622 340

5,696

30,430 196,965 591,527 154,164 92,055 233,772 2,829,339 380,620

$ $ $ $ $ $ $ $

45

LOS FRESNOS CONSOLIDATED ISO COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN


283 284 285 Data IDEA, Pt. B IDEA, Pt. B ESEAI,A Control ARRA ARRA Improving Codes Fonnula Preschool Basic Program

REVENUES: 5700 Total Local and Intennediate Sources $ $ $ 5800 State Program Revenues 5900 Federal Program Revenues 893,474 47,308 2,889,327

-~-~

5020 Total Revenues 893,474 47,308 2,889,327 ~-~".-~

EXPENDITURES: Current:

0011 Instruction 844,688 47,308 2,193,204 0012 Instructional Resources and Media Services 108,244 0013 Curriculnm and Instructional Staff Development 48,786 243,185 0021 Instructional Leadership 89,537 0023 School Leadership 32,694 0031 Guidance, Counseling and Evaluation Services 69,708 0032 Social Work Services 0033 Health Services 0036 Extracurricular Activities 0041 General Administration 73,882 0051 Facilities Maintenance and Operations 0052 Security and Monitoring Services 0053 Data Processing Services 56,266 0061 Community Services 22,607

Debt Service: 0071 Debt Service - Principal on Long Tenn Debt 0072 Debt Service - Interest on Long Tenn Debt 0073 Debt Service - Bond Issuance Cost and Fees


Intergovernmental: 0093 Payments to Fiscal AgentJMember Districts of SSA

6030 Total Expenditures 893,474 47,308 2,889,327

1100 Excess (Deficiency) of Revenues Over (Under) Expenditures

OTHER FINANCING SOURCES (USES): 7915 Transfers In

7080 Total Other Financing Sources (Uses)

1200 Net Change in Fund Balance

0100 Fund Balance - September I (Beginning)

3000 Fund Balance - August 31 (Ending) $ $ $

46

288

Gear Up Project

$

110,710 ~--~~

110,710

39,810

2,245

49,641

19,014

1l0,71O

$

II : I i I 289 397 401 404

Summer Advanced Optional Student

School Placement Extended Year Success

i I LEP-RDI6 Incentives Program Initiative

$ $ $ $

II 5,708 13,146 62,680 10,508

-~-------

10,508 5,708 13,146 62,680 -----

10,508 4,090 13,146 62,680

, I 1,618

10,508 5,708 13,146 62,680

$ $ $ $

47

409

High School

Completion

and Success

$

$

126,101

126,101

110,958

13,530 892

721

126,101

$

$

EXHIBIT H-2 (Cont'd)

4I1

Technology

Allotment

243,286

243,286

167,823

21,185

189,008

54,278

54,278

108,715

415

Kindergarten and Pre-K

Grants

$ 513,899

513,899

419,566

94,333

513,899

162,993 $ ~~~

427

TXEducator

Excellence Grant

$ 16,023

16,023

13,483

2,368

172

16,023

$

LOS FRESNOS CONSOLIDATED ISD COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN


429 461 482 Total Data Other State . Campus Nonmajor Control Special Activity Scholarship Special Codes Revenue Funds Funds Fund Revenue Funds

REVENUES: 5700 Total Local and Intennediate Sonrces $ $ 405,191 $ 1,000 $ 406,191 5800 State Program Revenues 20 980,863 5900 Federal Program Revenues 16,451,111

-5020 Total Revenues 20 405,191 1,000 17,838,165

----EXPENDITURES:

Cnrrent: 0011 Instruction 65,490 13,196,585 0012 Instructional Resonrces and Media Services 20 24,341 502,407 0013 Cnrriculum and Instructional Staff Development 5,664 1,296,619 0021 Instructional Leadership 20 1,022,541 0023 School Leadership 61,489 136,701 0031 Guidance, Counseling and Evaluation Services 644,297 0032 Social Work Services 58,752 0033 Health Services 25 5,556 0036 Extracnrricular Activities 244,535 285,986 0041 General Administration 576 211,497 0051 Facilities Maintenance and Operations 375 10,973 0052 Secnrity and Monitoring Services 220 30,094 0053 Data Processing Services 56,266 0061 Conununity Services 3,217 242,874

Debt Service: 0071 Debt Service - Principal on Long Tenn Debt 0072 Debt Service - Interest on Long Term Debt 0073 Debt Service - Bond Issuance Cost and Fees


Intergovernmental: 0093 Payments to Fiscal AgentlMember Districts of SSA 82,500

6030 Total Expenditnres 20 405,952 17,783,648

1100 Excess (Deficiency) of Revenues Over (Under) (761) 1,000 54,517 Expenditnres

OTHER FINANCING SOURCES (USES): 7915 Transfers In 3,000 3,000

----

7080 Total Other Financing Sonrces (Uses) 3,000 3,000 ------

1200 Net Change in Fund Balance 2,239 1,000 57,517

0100 Fund Balance - September 1 (Beginning) 52,634 1,000 162,349

3000 Fund Balance - August 31 (Ending) $ $ 54,873 $ 2,000 $ 219,866

48

[ I EXHIBITH-2

[ I

: I 599 698 Total

nebt Capital Nonmajor Service Projects Governmental

: I Fund Fund Funds

$ 1,962,882 $ 53,419 $ 2,422,492

! I 3,301,605 4,282,468 16,451,111

-----5,264,487 53,419 23,156,071

------

: I 13,196,585

I 502,407

1,296,619 1,022,541

136,701 644,297

58,752 5,556

285,986 211,497

10,973 30,094 56,266

242,874

3,180,000 3,180,000 2,407,818 2,407,818

8,393 8,393

2,849,797 2,849,797

82,500

5,596,211 2,849,797 26,229,656

(331,724) (2,796,378) (3,073,585)

3,000

3,000

(331,724) (2,796,378) (3,070,585)

1,879,348 3,030,271 5,071,968

$ 1,547,624 $ 233,893 $ 2,001,383

49

II EXHIBITH-3

[ I LOS FRESNOS CONSOLIDATED ISD

COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS

AUGUST 31, 201O

i I 753 799 Total

Workers' Internal

II ASSETS

Insurance Compensation Service Funds

: I Current Assets:

Cash and Cash Equivalents $ 3,515,026 $ 538,182 $ 4,053,208 Due from Other Funds 2,826 2,826

: I Total Assets 3,517,852 538,182 4,056,034

-----LIABILITIES

Current Liabilities:

I Accounts Payable 93,580 17,822 111,402 Accrued Expenses 215,803 215,803

Total Liabilities 309,383 17,822 327,205

NET ASSETS Unrestricted Net Assets 3,208,469 520,360 3,728,829

Total Net Assets $ 3,208,469 $ 520,360 $ 3,728,829

50

[ I LOS FRESNOS CONSOLIDATED ISD

EXHIBIT 1I-4

II COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS INTERNAL SERVICE FUNDS


II 753 799 Total

Workers' Internal

: I Insurance Compensation Service Funds

OPERATING REVENUES:

: I Local and Intennediate Sources $ 7,461,432 $ 167,966 $ 7,629,398

Total Operating Revenues 7,461,432 167,966 7,629,398 ._-_._-------OPERATING EXPENSES: , I Professional and Contracted Services 24,185 6,290 30,475

Other Operating Costs 5,710,851 407,256 6,118,107

I Total Operating Expenses 5,735,036 413,546 6,148,582

Operating Income (Loss) 1,726,396 (245,580) 1,480,816

NONOPERATING REVENUES (EXPENSES):

Earnings from Temporary Deposits & Investments 4,699 1,487 6,186 Non-operating Expenses (320,115) (320,115)

I Total Nonoperating Revenues (Expenses) (315,416) 1,487 (313,929)

Change in Net Assets 1,410,980 (244,093) 1,166,887

Total Net Assets - September 1 (Beginning) 1,797,489 764,453. 2,561,942

Total Net Assets - August 31 (Ending) $ 3,208,469 $ 520,360 $ 3,728,829

51

52

II EXHIBITH-6

II LOS FRESNOS CONSOLIDATED ISD

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

: I FOR THE YEAR ENDED AUGUST 31, 2010

I I BALANCE BALANCE SEPlEMBER 1 AUGUST 31

2009 ADDITIONS DEDUCTIONS 2010

I I STUDENT ACTnnTY ACCOUNT Assets:

Cash and Temporary Investments $ 89,891 $ 340,223 $ 352,287 $ 77,827

: I Liabilities: Accounts Payable $ 26,073 $ 39,084 $ 46,447 $ 18,710 Due to Student Groups 63,818 300,771 305,472 59,117

Total Liabilities $ 89,891 $ 339,855 $ 351,919 $ 77,827

TOTAL AGENCY FUNDS

I Assets:

Cash and Temporary Investments $ 89,891 $ 340,223 $ 352,287 $ 77,827

I I Liabilities: Accounts Payable $ 26,073 $ 39,084 $ 46,447 $ 18,710 Due to Student Groups 63,818 300,771 305,472 59,117

Total Liabilities $ 89,891 $ 339,855 $ 351,919 $ 77,827

53

II ! I , I

: I '; I , I

I

I

I

I

REQUIRED SUPPLEMENTARY SCHEDULES

Last 10 Years Ended August 31

2001 and prior years

2002

2003

2004

2005

2006

2007

2008

2009

2010 (School year under audit)

100 TOTALS

LOS FRESNOS CONSOLIDATED ISO

SCHEDULE OF DELINQUENT TAXES RECEIVABLE

FISCAL YEAR ENDED AUGUST 31, 2010

(I) (2)

Tax Rates

Maintenance Debt Service

Various Various

1.341000 0.146000

1.471000 0.140000

1.471000 0.135000

1.454000 0.122000

1.454000 0.122000

1.328000 0.122000

1.040000 0.160000

1.040000 0.160000

1.040000 0.160000

54

(3) Assessed! Appraised

Value for Schoo! Tax Purposes

$ Various

438,364,663

490,711,254

613,633,651

681,488,265

743,318,269

898,881,105

1,025,959,349

1,102,823,762

1,114,276,718

i I EXHIBIT J-1

: I i I

(10) (20) (31) (32) (40) (50)

: I Beginning Current Entire Ending Balance Year's Maintenance Debt Service Year's Balance 9/112009 Total Levy Collections Collections Adjustments 8/3112010

: I $ 490,693 $ $ 21,664 $ 5,434 $ (8,379) $ 455,216

, I 87,661 10,723 1,167 (884) 74,887

113,970 17,688 1,684 (839) 93,759

, I 148,968 31,873 2,925 (1,662) 112,508

I 217,606 52,542 4,409 217 160,872

327,013 80,406 6,746 (991) 238,870

449,368 128,820 11,834 1,826 310,540

616,029 207,028 31,851 1,381 378,531

1,427,429 667,108 102,633 (23,829) 633,859

13,974,909 11,014,997 1,694,615 777 1,266,074

$ 3,878,737 $ 13,974,909 $ 12,232,849 $ 1,863,298 $ (32,383) $ 3,725,116 - ----

55

r I

, I

EXHIBIT J-2 LOS FRESNOS CONSOLIDATED ISD

SCHEDULE OF EXPENDITURES FOR COMPUTATIONS OF INDIRECT COST FOR 2011-2012 GENERAL AND SPECIAL REVENUE FUNDS

AUGUST 31, 2010 FUNCTION 41 AND RELATED FUNCTION 53 - GENERAL ADMINISTRATION, 99 - APPRAISAL DISTRICT COST

1 2 3 4 5 6 (702) (703) (701) (750) (720) (other)

Account Account School Tax Supt's Indirect Direct Number Name Board Collections Office Cost Cost Miscellaneous

61lX-6146 PAYROLL COSTS $ - $ - $ 285,903 $ 2,216,612 $ - $ 6149 Leave for .Separating Employees

inFn41&53

6149 Leave - Separating Employees not in41&53

621l Legal Services 27,723

6212 Audit Services 20,600

6213 Tax AppraisaVCoUection - 261,643 Appraisal in Fn 99

621X Other Professional Services 2,636 650

6220 Tuition and Transfer Payments 6230 Education Service Centers 101,21l

6240 Contr. Maint. and Repair 6250 Utilities 6260 Rentals 3,143 19,093

6290 Miscellaneous Contr. 892 326 21l,468

6320 Textbooks and Reading 893 10,345

6330 Testing Materials 63XX Other Supplies Materials 24,805 12,294 124,162

6410 Travel, Subsistence, Stipends 29,199 9,798 51,816

6420 ms. and Bonding Costs 6430 Election Costs 16,212

6490 Miscellaneous Operating 13,185 1,563 13,714 51,717

6500 Debt Service 6600 Capital Outlay 370,650

----~-~

6000 TOTAL $ 114,652 $ 263,206 $ 326,721 $ 2,807,024 $

Total expenditures/expenses for General and Special Revenue Funds: LESS: Deductions of Unallowable Costs

FISCAL YEAR Total Capital Outlay (6600) Total Debt & Lease(6500) Plant Maintenance (Function 51. 6100·6400) Food (Function 35, 6341 and 6499) Stipends (6413)

Column 4 (above) - Total Indirect Cost

SubTotal:

Net Allowed Direct Cost

CUMULATIVE

Total Cost of Buildings before Depreciation (1520) Historical Cost of Building over 50 years old Amount of Federal Money in Building Cost (Net of# 16) Total Cost of Fumiture & Equipment before Depreciation (1530 & 1540) Historical Cost of Furniture & Equipment over 16 years old Amount of Federal Money in Furniture & Equipment (Net of#19)

(10) $ (Il) (12) (13)

(14)

(8) NOTE A: $I,094,9lO in Function 53 expenditures are included in this report on administrative costs. No Function 99 expenditures for appraisal district costs are included in this report on administrative costs.

56

$ 370,650

(9) $

2,943,844 723,624

7,963,496 2,614,700

2,807,024

$

(15) $ (16) $ (17) $ (18) $ (19) $ (20) $

7

Total

$ 2,502,515

27,723

20,600

261,643

3,286

101,21l

22,236

212,686

1l,238

161,261

90,813

16,212

80,179

370,650

$ 3,882,253

90,889,549

17,052,688

73,836,861

1l8,367,424

8,590,917

I I

, I

EXHIBIT J-3


FUND BALANCE AND CASH FLOW CALCULATION WORKSHEET GENERAL FUND AS OF AUGUST 31, 2010

UNAUDITED

I Total General Fund Balance as of 8/31110 (Exhibit C-I object 3000 $ 22,967,554 for the General Fund Only)

2 Total Reserved Fund Balance (from Exhibit C-I - total of object 3400s $ 881,134 for the General Fund Only)

3 Total Designated Fund Balance (from Exhibit C-I - total of object 3,225,000 . 3500s for the General Fund Only)

4 Estimated amount needed to cover fall cash flow deficits in the General Fund (Net of borrowed funds and funds representing deferred revenues.)

5 Estimate of two month's average cash disbursements during the 11,470,000 fiscal year.

6 Estimate of delayed payments from state sources (58xx).

7 Estimate of underpayment from state sources equal to variance between Legislative Payment Estimate (LPE) and District Planning Estimate (DPE) or District's calculated earned state aid amount.

8 Estimate of delayed payments from federal sources (59xx)

9 Estimate of expenditures to be reimbursed to General Fund from Capital Projects Fund (uses of General Fund cash after bond referendum and prior to issuance of bonds)

10 Adjustment to meet Board Policy

11 Optimum Fund Balance and Cash Flow (Lines 2+3+4+5+6+7+8+9+ 10) 15,576,134

12 Excess (Deficit) Undesignated Unreserved General Fund $ 7,391,420 Balance (Line I minus Line II)

Explanation of need for andlor projected use of net positive Undesignated Unreserved General Fund Fund Balance:

The District needs the positive undesignated general fund balance for the following purposes: (a) The District continues to experience an increasing rate of enroliment growth and has a very large geographical area. Rapid expansion of the City of Brownsville to the North and Northwest overlaps the Los Fresnos CISD boundaries; (b) Despite the recent economic slowdown nationwide, large residential subdivisions continue to open within the District and more subdivisions are being planned; and, (c) The District recently completed construction projects fmanced by a $33 million bond issue which required several million dollars of general funds to supplement bond proceeds. Physical plant improvements and replacements which had been deferred during the bond construction projects are currently being prioritized and will move forward in the next 12 to 24 months.

57

II EXHIBIT J·4


i I SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL· CIDLD NUTRITION PROGRAM FOR THE YEAR ENDED AUGUST 31, 2010

i I Data Actual Amounts Variance With

Control (GAAP Final Budget Budgeted Amounts

Basis - See Positive or Codes

i I Original Final Note ill A) (Negative)

REVENUES: 5700 Total Local and Intennediate. Sources $ 347,000 $ 347,000 $ 339,389 $ (7,611)

I I 5800 State Program Revenues 40,000 40,000 39,358 (642) 5900 Federal Program Revenues 5,253,682 5,484,212 5,730,004 245,792

5020 Total Revenues 5,640,682 5,871,212 6,108,751 237,539 , I EXPENDITURES: 0035 Food Services 5,640,682 6,170,212 6,154,170 16,042

----~--

6030 Total Expendilures 5,640,682 6,170,212 6,154,170 16,042

lIOO Excess (Deficiency) of Revenues Over (Under) (299,000) (45,419) 253,581 Expendilures

OTHER FINANCING SOURCES (USES): 7915 Transfers In 299,000 299,000

7080 Total Other Financing Sources (Uses) 299,000 299,000

1200 Net Change in Fund Balances 253,581 253,581

0100 Fund Balance· September 1 (Beginning) 627,553 627,553 627,553

3000 Fund Balance· August 31 (Ending) $ 627,553 $ 627,553 $ 881,134 $ 253,581

58

i 1 EXHIBIT J-5

:1

LOSFRESNOSCONSOLIDATEDISD SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL - DEBT SERVICE FUND

r 1


Data Actual Amounts Variance With

Control Budgeted Amounts (GAAP Final Budget

Codes Basis - See Positive or

Original Final Note ID A) (Negative)

REVENUES: 5700 Total Local and Intermediate Sources $ 1,774,481 $ 1,774,481 $ 1,962,882 $ 188,401

: 1 5800 State Program Revenues 3,745,327 3,745,327 3,301,605 (443,722)

5020 Total Revenues 5,519,808 5,519,808 5,264,487 (255,321)

, I EXPENDITURES:

Debt Service: 0071 Debt Service - Principal on Long Term Debt 3,180,000 3,180,000 3,180,000 0072 Debt Service - Interest on Long Term Debt 2,327,808 2,407,819 2,407,818

, 1 0073 Debt Service - Bond Issuance Cost and Fees 12,000 12,000 8,393 3,607

6030 Total Expenditures 5,519,808 5,599,819 5,596,211 3,608

1 1200 Net Change in Fund Balances (80,011) (331,724) (251,713)

0100 Fund Balance - September I (Beginning) 1,879,348 1,879,348 1,879,348

3000 Fund Balance - August 31 (Ending) $ 1,879,348 $ 1,799,337 $ 1,547,624 $ (251,713)

59

r I i I : I i I

I C I

I

I I I

I I

I

I

FEDERAL AWARDS SECTION

~ I

[ I I I I I

Itt~ PATTILLO, BROWN & HILL,L.L.p.


REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Board of Trustees Los Fresnos Consolidated Independent School District

We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund infonnation of Los Fresnos Consolidated Independent School District (the "District") as of and for the year ended August 31,2010, which collectively comprise the District's basic financial statements and have issued our report thereon dated November IS, 2010. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

Internal Control Over Financial Reporting

In planning and perfonning our audit, we considered the 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 District's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of Los Fresnos Consolidated Independent School District's internal control over financial reporting.

A control deficiency exists when the design or operation of a control does not allow management or employees, in the nonnal course of perfonning their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the District's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the District's financial statements that is more than inconsequential will not be prevented or detected by the District's internal control.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the District's internal control.

Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we considered to be material weaknesses, as defined above.

647 EAST ST. CHARLES. BROWNSVILLE, TX 78520. (956) 544·7778. FAX: (956) 544·8465. www.pbhcpa.com AFFILIATE OFFICES: McALLEN, TX (956) 682·2853. HILLSBORO, TX (254) 582·2583 • TEMPLE, TX (254) 79[·3460

WACO, TX (254) 772-4901 • WHITNEY, TX (254) 694·4600 • ALBUQUERQUE, NM (505) 266·5904

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Compliance and Other Matters

As part of obtaining reasonable assurance about whether the District's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of 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, the Board of Trustees, the Texas Education Agency, 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.

November 15,2010

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Board of Trustees

Ilf~ PAT TIL L 0, B ROW N & HI L L, L.L.P.


REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON

INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CmCULAR A-133

Los Fresnos Consolidated Independent School District

Compliance

We have audited the compliance of Los Fresnos Consolidated Independent School District (the "District") with the types of compliance requirements described in the U S. Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement that are applicable to each of its major federal programs for the year ended August 31, 2010. The District's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the District's management. Our responsibility is to express an opinion on the District's compliance based on our audit.

We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-l33 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the District's compliance with those requirements.

In our opinion, the District complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended August 31, 2010. .

Internal Control Over Compliance

The management of the 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 performing our audit, we considered the District's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the District's internal control over compliance.

647 EAST ST. CHARLES. BROWNSVILLE, TX 78520. (956) 544-7778. FAX: (956) 544-8465. www.pbhcpa.com AFFILIATE OFFICES: McALLEN, TX (956) 682-2853 • HILLSBORO, TX (254) 582-2583 • TEMPLE, TX (254) 791-3460

WACO, TX (254) 772-4901 • WHITNEY, TX (254) 694·4600. ALBUQUERQUE, NM (505) 266-5904

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A control deficiency in an entity's internal control over compliance 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 noncompliance with a type of compliance requirement of a federal program on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the District's ability to administer a federal program such that there is more than a remote liklihood that noncompliance with a type of compliance requirement of a federal program that is more than inconsequential will not be prevented or detected by the District's internal control.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a federal program will not be prevented or detected by the District's internal control.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identity all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identity any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above.

This report is intended solely for the information and use of management, the Board of Trustees, the Texas Education Agency, 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.

, November 15, 2010

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LOS FRESNOS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT SCHEDULE OF FINDINGS AND QUESTIONED COSTS

FOR THE YEAR ENDED AUGUST 3!, 20!0

Summary of the Auditors' Results:

The type of auditors' report on fmancia! statements: Unqualified

Regarding internal control over fmancial reporting:

a. Material weakness( es) identified: None

b. Sigoificant deficiency(ies) identified that are not considered to be material weaknesses: None reported

c. Noncompliance which is materia! to the fmancial statements: None

d. Regarding internal control over major programs: Material weakness( es) identified: None reported Sigoificant deficiency(ies )identified that are not considered to be material weaknesses: None

e. Type of auditors' report on compliance with major programs: Unqualified

f. Any audit fmdings which are required to be reported in accordance with OMB Circular A-133, Sec. 51O(a): No

g. Major programs are as follows: ESEA Title I, Part A Cluster CFDA 84.0IOAl84.389A

Special Education Cluster CFDA 84.027 Al84.173A1

84.391A184.392A

ESEA Title II, Part D CFDA 84.318X

ESEA Title II, Part D - ARRA CFDA 84.386A

Title XIV SF SF - ARRA CFDA 84.394A

h. Dollar threshold used to distinguish between Type A and Type B programs: $657,784

i. Low risk auditee: Yes

II. Findings Relating to the Financial Statements Which Are Required To Be Reported in Accordance with Generally Accepted Government Auditing Standards.

None reported

III. Findings and Questioned Costs for Federal Awards.

None reported

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Not Applicable.

LOS FRESNOS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS


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Not applicable.

LOS FRESNOS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT . CORRECTIVE ACTION PLAN


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EXHIBIT K-I

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SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED AUGUST 31, 2010

r I (I) (2) (3) (4)

FEDERAL GRANTOR! Federal Pass-Through

: 1 PASS-THROUGH GRANTOR! CFDA Entity IdentifYing Federal

. PROGRAM or CLUSTER TITLE Number Number Expenditures

, I U.S. DEPARTMENT OF EDUCATION

Passed Through University of Texas - Pan American:

I Gear Up Project 84.334 P334A050 122-10 $ 110,710

Total Passed Through UTPA 110,710

'I Passed Through State Department of Education:

ESEA Title I, Part A - Improving Basic Programs' 84.0 lOA 10610101031906 5,613,012

ESEA Title I, Part A - Improving Basic Programs' 84.01OA 11610101031906 385,212

I ESEA Title I, Part D - Subpart 2 - Delinquent Programs' 84.01OA 10610103031906 40,715 ESEA Title I, Part D - Subpart 2 - Delinquent Programs' 84.010A 11610103031906 693

Total CFDA 84.0 lOA 6,039,632

I ESEA Title I, Part A - ARRA' 84.389A 10551001031906 2,870,404

ESEA Title I, Part D - Subpart 2 ARRA' 84.389A 10551003031906 18,923

Total CFDA 84.389A 2,889,327

ESEA Title I, Part C, - Migratory Children 84.011A 10615001031906 223,699 ESEA Title I, Part C, - Migratory Children 84.011A 11615001031906 15,374

Total CFDA 84.011A 239,073

IDEA - Part B,Formula' 84.027A 106600010319066600 1,614,128 IDEA - Part B, Formula' 84.027A 116600010319066600 30,021

Total CFDA 84.027 A 1,644,149

IDEA - Part B, Formula - ARRA' 84.391A 10554001031906 893,474

IDEA - Part B Pre-School' 84.173A 106610010319066610 30,430

IDEA - Part B Pre-School - ARRA' 84.392A 10555001031906 47,308

Carl D. Perkins - Basic Grant 84.048A 10420006031906 188,628 Carl D. Perkins - Basic Grant 84.048A 11420006031906 8,337

Total CFDA 84.048A 196,965

ESEA Title IV, Part A Safe & Drug Free Schools 84.186A 10691001031906 68,058

Texas Reading First Initiative 84.357A 096455017110037 154,164

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EXHIBITK-I

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SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED AUGUST 31, 2010

1 I (I) (2) (3) (4)

FEDERAL GRANTOR! Federal Pass-Through

I I PASS-THROUGH GRANTOR! CFDA Entity Identirying Federal PROGRAM or CLUSTER TITLE Number Number EXEenditures

1,1

Title II, Part D - Enbancing Tecbnology 84.318X 10630001031906 92,055

Title II, Part D- Enbancing Educ Through Tech - ARRA 84.386A 105530027110036 335,031

I I Title II, Part D - Enbancing Educ Through Tech - ARRA 84.386A 10553001031906 45,589

Total CFDA 84.386A 380,620

'I Title XIV, State Fiscal Stabilization - ARRA 84.394A 10557001031906 2,829,339

Sunnner School LEP 84.369A 69550902 10,508

I ESEA, Title III - LEP 84.365A 10671 001031906 225,122 ESEA, Title III -'LEP 84.365A 11671001031906 8,650

'I Total CFDA 84.365 233,772

ESEA Title II, Part A - Training and Recruiting 84.367 10694501031906 591,527

,I Total Passed Through State Dept. of Education 16,340,401

I TOTAL U.S. DEPARTMENT OF EDUCATION 16,451,111

U.S. DEPARTMENT OF AGRICULTURE

Passed Through State Department of Education:

National School Breakfast & Lunch Program' 10.555 7130301123000406 3,314,107

School Breakfast Program' 10.553 71400401/71400501 2,020,699

After School Snacks 10.553 031906 13,098

GR School Lunch Matching 10.553 300301 39,358

I Sunnner Feeding Program 10.559 71300401171400401 87,780

TOTAL U.S. DEPARTMENT OF AGRICULTURE 5,475,042

TOTAL EXPENDITURES OF FEDERAL AWARDS $ 21,926,153

I ' Indicates clustered program under OMB Circular A-133 Compliance Supplement

The accompanying notes are an integral part of this schedule.

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LOS FRESNOS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT NOTES ON ACCOUNTING POLICIES FOR FEDERAL A WARDS

YEAR ENDED AUGUST 31, 2010

I. For all Federal programs, the District uses the fund types specified in Texas Education Agency's Financial Accountability System Resource Guide. Special revenue funds are used to account for resources restricted to, or designated for, specific purposes by a grantor. Federal and state fmancial assistance generally is accounted for in a Special Revenue Fund.

2. The accounting and fmancial reporting treatment applied to a fund is determined by its measurement focus. The Governmental Fund types and Trust Funds are accounted for using a current fmancial resources measurement focus. All Federal grant funds were accounted for in a Special Revenue Fund which is a Governmental Fund type. With this measurement focus, only current assets and current liabilities and the fund balance are included on the balance sheet. Operating statements of these funds present increases and decreases in net current assets.

The modified accrual basis of accounting is used for the Governmental Fund types, the Trust Funds and Agency Funds. This basis of accounting recognizes revenues inlhe accounting period in which they become susceptible to accrual, i.e., both measurable and available, and expenditures in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on Long-Term Debt, which is recognized when due, and certain compensated absences and claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable available fmancial resources.

Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and, accordingly, when such funds are received, they are recorded as deferred revenues until earned.

3. The period of availability for federal grant funds for the purpose of liquidation of outstanding obligations made on or before the ending date of the federal project period extended 30 days beyond the federal project period ending date, in accordance with provisions in Section H, Period of Availability of Federal Funds, Part 3, OMB Circular A-133 Compliance Statement - Provisional 6/97.

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LOS FRESNOS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT [ I ANNUAL FINANCIAL REPORT … · r I II I i I II II [ I II [ I II i I 1 . 1 I I .1 1 LOS FRESNOS CONSOLIDATED INDEPENDENT SCHOOL

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