school district independent calhoun county
TRANSCRIPT
CALHOUN COUNTY
INDEPENDENT
SCHOOL DISTRICT
Annual Financial Report
For the Year Ended August 31, 2012
Gowland, Strealy, Morales & CompanyA Professional Limited Liability Company
Certified Public Accountants5934 S. Staples, Suite 201
Corpus Christi, Texas 78413
Calhoun County Independent School DistrictAnnual Financial Report
For The Year Ended August 31, 2012
TABLE OF CONTENTS
Page Exhibit
INTRODUCTORY SECTION
Certificateof Board ................................................................................................................ 1
FINANCIAL SECTION
IndependentAuditor's Report on Financial Statements ........................................................ 2Management's Discussion and Analysis (Required Supplementary Information) ................. 3
Basic Financial Statements
Government-wide Financial Statements:Statementof Net Assets ............................................................................................. 10 A-1Statementof Activities ................................................................................................ 11 B-1
Fund Financial Statements:BalanceSheet - Governmental Funds ........................................................................ 12 C-1Reconciliation of the Governmental Funds
BalanceSheet to the Statement of Net Assets ...................................................... 13 C-1 RStatement of Revenues, Expenditures, and Changes in
FundBalances - Governmental Funds .................................................................. 14 C-2Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities ................. 15 C-3Statementof Net Assets - Internal Service Funds ...................................................... 16 D-1Statement of Revenues, Expenses, and Changes in
FundNet Assets - Internal Service Funds ............................................................. 17 D-2Statementof Cash Flows - Proprietary Funds ............................................................ 18 D-3Statementof Fiduciary Net Assets - Fiduciary Funds ................................................. 19 E-1
Notesto the Financial Statements ..................................................................................
Required Supplementary Information:
Budgetary Comparison Schedules:
GeneralFund .............................................................................................................. 30 G-1
Combining Statements and Budgetary Comparison Schedules as Supplementary Information:
Combining Balance Sheet - All Nonmajor Governmental Funds ..................................... 32 H-1
Combining Statement of Revenues, Expenditures and Changes inFundBalances - All Nonmajor Governmental Funds ................................................. 33 H-2
Special Revenue Funds:
Combining Balance Sheet - Nonmajor Special Revenue Funds ................................ 34 H-3Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Nonmajor Special Revenue Funds ......................................... 37 H-4
Calhoun County Independent School DistrictAnnual Financial Report
For The Year Ended August 31, 2012
TABLE OF CONTENTS
Paw Exhibit
Capital Projects Funds:
Budgetary Comparison Schedule:
CapitalProjects Fund .................................................................................................. 42 H-5
Internal Service Funds:
CombiningStatement of Net Assets ........................................................................... 43 H-6
Combining Statement of Revenues, Expenses and ChangesinFund Net Assets ................................................................................................ 44 H-7
CombiningStatement of Cash Flows .......................................................................... 45 H-8
OTHER SUPPLEMENTARY INFORMATION SECTION
Scheduleof Delinquent Taxes Receivable ............................................................................ 46 J-1IndirectCost Computation Schedule .................................................................................... 48 J-2Budgetary Comparison Schedules Required by the Texas Education Agency:
NationalSchool Breakfast and Lunch Program .......................................................... 49 J-3DebtService Fund .................... ......................................................................... 50 J-4
Report on Internal Control over Financial Reporting and on Compliance andOther Matters Based on an Audit of Financial Statements Performedin Accordance with Government Auditing Standards ....................................................... 51
Report on Compliance with Requirements That Could Have a Direct andMaterial Effect on each Major Program and on Internal Control overCom p lianceIn Accordance With OMB Circular A-1 33 .................................................... 53
Scheduleof Findings and Questioned Costs ....................................................................... 55SummarySchedule of Prior Audit Findings ........................................................................... 57CorrectiveAction Plan ........................................................................................................... 58Scheduleof Expenditures of Federal Awards ...................................................................... 59 K-1Notesto the Schedule of Expenditures of Federal Awards ................................................... 60Schedule of Required Responses to Selected School First Indicators ................................. 61 K-2
Introductory Section
Financial Section
Gowlartd, Strealy, Morales & CompanyA Professional Limited Liability Company
Certified Public Accountants
Tommy Strealy CPA
David Morales CPAJerry D. Spence CPA
Professional Associates A Senior Advisor:Peggy 5idler CPA
Petty Morales CPAThomas Withers CPA
Erika M. PostGreg Morales
Dudley Gowland CPA
Independent Auditor's Report on Financial Statements
Board of TrusteesCalhoun County Independent School District525 N. CommercePort Lavaca, Texas 77979
Members of the Board of Trustees:
We have audited the accompanying financial statements of the governmental activities, each major fund, andthe aggregate remaining fund information of Calhoun County Independent School District as of and for the yearended August 31, 2012, which collectively comprise the District's basic financial statements as listed in thetable of contents. These financial statements are the responsibility of Calhoun County Independent SchoolDistrict's management. Our responsibility is to express opinions on these financial statements based on ouraudit.
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica 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 theaudit 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 financialstatements. An audit also includes assessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation. We believe that our auditprovides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respectivefinancial position of the governmental activities, each major fund, and the aggregate remaining fund informationof Calhoun County Independent School District as of August 31, 2012, and the respective changes in financialposition and cash flows, where applicable, thereof for the year then ended in conformity with accountingprinciples generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated October 9,2012, on our consideration of Calhoun County Independent School District's internal control over financialreporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grantagreements and other matters. The purpose of that report is to describe the scope of our testing of internalcontrol over financial reporting and compliance and the results of that testing, and not to provide an opinion onthe internal control over financial reporting or on compliance. That report is an integral part of an auditperformed in accordance with Government Auditing Standards and should be considered in assessing theresults of our audit.
5934 5. Staples, Suite 201 Corpus Christi, Texas 78413Phone: (361) 993-1000 Fax: (361) 991-2880 www.gowland-cpa.com
Members of the American Institute and Texas Society of Certified Public Accountants
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The Management's Discussion and Analysis and the budgetary comparison information identified as RequiredSupplementary Information in the table of contents are not a required part of the basic financial statements butare supplementary information required by accounting principles generally accepted in the United States ofAmerica. We have applied certain limited procedures, which consisted principally of inquiries of managementregarding the methods of measurement and presentation of the required supplementary information. However,we did not audit the information and express no opinion on it.
Our audit was performed for the purpose of forming opinions on the financial statements which collectivelycomprise the Calhoun County Independent School District's basic financial statements. The accompanyingschedule of expenditures of federal awards required by U. S. Office of Management and Budget CircularA-133, Audits of States, Local Governments and Non-Profit Organizations and the combiningfinancial statements and supporting schedules listed in the table of contents are presented for purposes ofadditional analysis and are not a required part of the basic financial statements. This information has beensubjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, isfairly stated in all material respects in relation to the basic financial statements taken as a whole.
Respectfully
c
Lowland, Strealy, orales & Company, PLLC
October 9, 2012
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Figure A-1F, Required Components ofthe District's Annual Financial Report
ltana9eme d 'a Basic Requireda K Financial Supplementary
and Statements Information
rA^rafyala____________ _____________
L
--------------------r
Government•Wrde 1 FundFinancial I Financial I I r4g
Statements Sisiements 74,aHd4t
MANAGEMENT'S DISCUSSION AND ANALYSIS
This section of Calhoun County Independent School District's annual financial report presents our discussion andanalysis of the District's financial performance during the fiscal year ended August 31, 2012. Please read it inconjunction with the District's financial statements, which follow this section.
FINANCIAL HIGHLIGHTS
• The District's total combined net assets were $53,316,663 at August 31, 2012. Of this amount $21,247,611may be used to meet the District's needs.
• As of the close of the current fiscal year, the District's general fund reported combined ending fund balance of$18,822,751. Approximately 51 percent of this total $9,606,975 is available for spending at the government'sdiscretion (unassigned).
• The general fund reported a fund balance this year of $18,822,751, or 51% of the total General Fundexpenditures
• The District did not issue any bonds in 2012.
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of three pa rts--management's discussion andanalysis (this section), the basic financial statements, and requiredsupplementa ry information. The basic financial statements include twokinds of statements that present different views of the District:
• The first two statements are government-wide financial statementsthat provide both long-term and short-term information about theDistrict's overall financial status.
• The remaining statements are fund financial statements that focuson individual parts of the government, reporting the District'soperations in more detail than the government-wide statements.
• The governmental funds statements tell how general governmentservices were financed in the short term as well as what remains forfuture spending.
• We use internal service funds to report activities that providesupplies and services for the District's other programs and activities,such as the District's self-insurance programs and stock.
• Fiduciary fund statements provide information about the financialrelationships in which the District acts solely as a trustee or agent forthe benefit of others, to whom the resources in question belong.
The financial statements also include notes that explain some of theinformation in the financial statements and provide more detailed data. The Summary Detail
statements are followed by a section of required supplementa ry informationthat further explains and supports the information in the financial statements. Figure A-1 shows how the requiredparts of this annual report are arranged and related to one another.
Figure A-2. Major Fealures of the District's Gorernment-wide and Fmtd Fiusncial Slate nients
Figure A-2 summarizes the majorfeatures of the District's financialstatements, including the portion ofthe District government they coverand the types of information theycontain. The remainder of thisoverview section of management'sdiscussion and analysis explains thestructure and contents of each of thestatements.
Government-wide Statements
The government-wide statementsreport information about the Districtas a whole using accountingmethods similar to those used byprivate-sector companies. Thestatement of net assets includes allof the government's assets andliabilities. All of the current year'srevenues and expenses are
accounted for in the statement ofactivities regardless of when cash isreceived or paid.
1 EnIre Agency's gnremmem IThe activities oflhedistricl :Aclivilies the district :Instances in which the;(except fiduciary funds) !that are not proprieta ry or ; operates simil ar to private 'district is the trustee orand the Agency's component !fiduciary !businesses: self insurance ;agent for someone rise'su'^
. units r i i resources
51a[ernrhl urneA dtxis .:: lHalanc 5fiix`1 i • Stare menlpF net assets .. .; •.5[ateritent or Fducisi)
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is ek.-.expenses1 .alyd:ch3ri ^ln:::.Pen.
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.. ..: ...........;All asscis and habrlltle8. ::': ;Onlyexpecte
assets ex ... Ira ::: `::-::;AIV a:..etn and liahilih^ .;All asselsand Llabrlipes,both linoanal and eapifal, . (be used uli grid l ittes } be h rina it cjal and capita!, both shnrf-terrir ,sad fora;
ye ileLy.:..::::::shcvf-.lens aia{lririg=terfn .:: comed!that ue dihingAhe::::.:::iand........... llisntte •n and:long': . :: iteiu:; the AKipcy^s.[dilds.ii'. .
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jAll revenues and l Revenues For which cash :All revenues and expenses !All revenues and: expenses du ring year, i is received during or soon !during year . regardless of :expenses during year,
regardless of when cash rafter the end of the year, lwfien cash is received or ;regardless of when cashType of is received or paid expenditures when goods :paid i ts received or paidSifTsw/onijiow ;or ser v ices have been } }ir rmrrfiwr =received and payment is
due during Ihcyearor;soon Ihereater
The two government-wide statements report the District's net assets and how they have changed. Net assets—thedifference between the District's assets and liabilities—is one way to measure the District's financial health orposition.
• Over time, increases or decreases in the District's net assets are an indicator of whether its financial health isimproving or deteriorating, respectively.
• To assess the overall health of the District, you need to consider additional non financial factors such aschanges in the District's tax base.
The government-wide financial statements of the District include the Governmental activities. Most of the District'sbasic services are included here, such as instruction, extracurricular activities, curriculum and staff development,health services, and general administration. Prope rty taxes and grants finance most of these activities.
Fund Financial Statements
The fund financial statements provide more detailed information about the District's most significant funds—not theDistrict as a whole. Funds are accounting devices that the District uses to keep track of specific sources of fundingand spending for particular purposes.
• Some funds are required by State law and by bond covenants.
• The Board of Trustees establishes other funds to control and manage money for particular purposes or toshow that it is properly using certain taxes and grants.
The District has three kinds of funds:
• Governmental funds—Most of the District's basic services are included in governmental funds, which focus on(1) how cash and other financial assets that can readily be conve rted to cash flow in and out and (2) thebalances left at year-end that are available for spending. Consequently, the governmental fund statementsprovide a detailed short-term view that helps you determine whether there are more or fewer financialresources that can be spent in the near future to finance the District's programs. Because this informationdoes not encompass the additional long-term focus of the government-wide statements, we provide additionalinformation at the bottom of the governmental funds statement, or on the subsequent page, that explain therelationship (or differences) between them.
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TotalChange
2012-2011
$ 4,588,904(528,211)
4,060,693
1,776,401(2,140,000)
(363,599)
1,611,789551,328
2,261,175$ 4,424,292
• We use internal service funds to report activities that provide supplies and services for the District's otherprograms and activities.
• Fiduciary funds—The District is the trustee, or fiduciary, for certain funds. It is also responsible for otherassets that—because of a trust arrangement—can be used only for the trust beneficiaries. The District isresponsible for ensuring that the assets reported in these funds are used for their intended purposes. All ofthe District's fiduciary activities are reported in a separate statement of fiduciary net assets and a statement ofchanges in fiduciary net assets. We exclude these activities from the District's government-wide financialstatements 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 approximately $53,317,319 at August 31, 2012. (See Table A-1)
Table A-1The District's Net Assets
GovernmentalActivities
2012 2011
Current and Other Assets $ 27,157,149 $ 22,568,245Capital and Non-Current 42,764,111 43,292,322Total Assets 69,921,260 65,860,567
Current Liabilities 4,354,597 2,576,196Noncurrent Liabilities 12,250,000 14,390,000Total Liabilties 16,604,597 16,968,196
Net Assets Invested in CapitalAssets net of related debt 30,514,111 28,902,322Restricted 1,554,941 1.003.613Unrestricted 21.247,611 18,986.436Total Net Assets $ 53,316,663 $ 48,892,371
Changes in net assets. The District's total revenues were $47,493,514. A significant portion, 76%, of the District'srevenue comes from taxes. 7% comes from state-aid not restricted to specific programs.
The total cost of all programs and services was 43,069,220; 53% of these costs are for direct student services, whichinclude: instruction; instructional resources; guidance and counseling; social services; health services and co-curricular activities.
Governmental Activities
The Board of Trustees adopted a Maintenance & Operating lax rate of $1.0401 and an Interest & Sinking tax rate of$0.0861 cents.
Property values increased approximately 268 million, which generated $5 million more in revenue from propertytaxes. CCISD is considered a property wealthy district and is required to equalize property values to $476,500 perweighted average daily attendance (WADA). Approximately 20% of CCISD's tax revenue is used to purchase WADAfrom the Texas Education Agency and/or property poor districts. This costs the taxpayers of Calhoun County $6.4million in 2011-2012 a reduction of 1.7 million from $8.1 million in 2010-2011 and a reduction of $3.7 million from the$11.8 million in 2009-10.
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Table A-2Changes in the District's Net Assets
Governmental TotalActivities Change
2012 2011 2012-2011
Program Revenues:Charges for Services $ 1,255.113 $ 1,213,025 $ 42.088Operating Grants and
Contributions 5,807.300 7.657,645 (1.8E0,345)General Revenues
Property Taxes 35.945, 861 33.248, 575 2,697,286State Aid — Formula 3.413,799 7.845,305 (4,431.506)Investmerl Earnings 50,645 52866 (2.221)Other 1,020,796 751,432 269,364
Total Revenues 47,493,514 50,768,848 (3,275,334)
Instruction 19,835,529 22,212108 (2,376,579)Instructional Resources and
Media Services 391,688 515.661 (123,973)Curriculum Dev. And
Instructional Staff Dev. 234,344 233,262 1,082Instructional Leadership 438,447 486,861 (48,414)School Leadership 1,926,968 2,284,847 (357,879)Guidance, Counseling and
Evaluation Services 1,139,648 1,183,933 (44,285)Social Work Services 36,033 62035 (26,002)Health Services 211,741 218,572 (6,831)Student (Pupil) Transportation 1,227,762 1,257,552 (29,790)Food Services 1,876.866 2,028,461 (151,595)C urricuia rlExtracurricu lar
Activities 1,387, 348 1,388, 937 (1,589)General Administration 1,073,334 1.116,670 (43,336)Plant Maintenance & Oper. 4,905,882 5.389,096 (483,214)Security& Monitounq Svcs. 99.371 127,659 (28,288)Data Processing Services 516,512 465,477 51,035Community Services 124,169 130,733 {6.564)Debt Service 593,295 692,570 (90,275)Capital Outlay 2,540 2.540Contracted Instructional Service
between Schools 6.404.285 8.167,415 (1.763,130)Other Intergovernmental charges 642, 458 530. 934 112,524Total Expenses 43,069,220 48,492,78 (5.423.563)
Increase (Decrease) inNet Assets 4,424,294 2,276,065 2.148,229
Beginning Net Assets 48,892369 46,616,304 2,276,065Ending Net Assets $ 53.316.663 $ 48.892369 $4.424.294.
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Table A-3 presents the cost of each of the District's largest functions.
• The cost of all govemmontaf activities this year was $43,021,866.• However, the amount that our taxpayers paid for these activities through property taxes was $35,945,861.• Some of the cost was paid by those who directly benefited from the programs; $1,255,113 or• By operating grants and contributions 5,760,602.
Table A-3Net Cost of Selected District Functions
(in actual dollars)
Total Cost of % Net Cost of %Services Change Services Change
2612 2011 2012 2011
Instruction $ 19,835,529 $ 22,212.108 -11.98% $ 16,572,670 $ 18.661,184 -1260%School Leadership 1.926,968 2,284,847 -18.57% 1.843,387 2,151,584 -16.72%Food Services 1,876,866 2,028.461 -8.08% (202,934) (95,401) 5299%Plant Maintenance & Operations 4,905,882 5,389.096 -9.85% 4,707,479 4,006,786 14.88%Contracted Instructional Services 6,404,285 8.167,415 -27.53% 6,153,090 7,825,920 -27.19%
FINANCIAL ANALYSIS OF THE DISTRICT'S FUNDS
Revenues from governmental fund types totaled $47,521,572, a decrease of 6.4% over the preceding year of$50,778,838. The decrease in revenue from local and intermediate sources was primarily due to lower propertyvalues and a decrease in enrollment.
General Fund Budgetary Highlights
All revenue sources exceeded final budget by $146,816. Over the course of the year, the District revised its budget.Even with these adjustments, actual expenditures were $2,785,012 below final budget amounts. Areas that weresignificantly less than budget were Instruction, General Administration, Plant Maintenance, Contracted InstructionalServices Between Public Schools, and Other Governmental Charges. The district also used $300,000 in Job EdFunds for salaries for 2011-2012 and saved approximately .5 million due to the differences for year-end accruals asthe number of employees decreased resulting in lowering the expenditures for August 2012. Our CCISD staff playeda large part in reducing costs for this year so that the district could still serve our students even with reduced statefunding and staff.
The culmination of the above mentioned events resulted in the increase in fund balance of $2,374,050.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At the end of 2012, the District had invested a net $42,764,112 in a broad range of capital assets, including land,equipment, buildings, and vehicles. (See Table A-4.) This amount represents a net decrease (including additions,construction in progress, depreciation and adjustments) of $528,211.
Table A•4Distrid's Capital Assets
GovernmentalActivities Change
2012 2011 2011-2010
Land $ 3,712,524 3.712,524 $ -Construdicn in Progress - 21.683,092 (21,683,092)Buildings and improvements 69,302.388 47.226.412 22,075,976Furniture and Equipment 5,285,577 5.165,212 120,355Totals at historical cost 78.300,489 77,787,240 513,249
Total accumulated depreciation 35.536,378 34,494,918 1,041,460Net capital assets $ 42,764,111 $ 43,292,322 $ (528,211)
More detailed information about the District's capital assets is presented in Note 1 to the financial statements.
Long Term Debt
At year-end the District had $14,390,000 bonds outstanding as shown in Table A-5. More detailed information aboutthe District's debt is presented in the Notes to the Financial Statements.
Table A-5District's Long-Term Debt
GovernmentalActivities
2012 2011
Bonds payable $ 12,250,000 $ 14.390,000
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
Our budget for 2012-13 is $39,879,104 for Maintenance & Operation, $2,092,352. for Food Service, and $2,718,570for Interest & Sinking. The tax rate is $1.0401 for Maintenance & Operation and $.0800 for Interest & Sinking, for atotal of $1.1201. Property values increased by $168 million for the school year 2012-2013. No raises were given forthe 2012-2013 school year due to the severe reduction by the legislature in slate funding. Also as a result of thisreduction, CCISD passed on to the employees the increase in premiums for the health insurance for 2012-2013.
CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with ageneral overview of the District's finances and to demonstrate the District's accountability for the money it receives. Ifyou have questions about this report or need additional financial information, contact the District's Director ofFinance.
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Basic Financial Statements
GovernmentalActivities
3,756,70221,614,790
732,580273,220
32,485208,827201,988269,057
67,500
3,712,52437,831,028
1,220,55969.921.260
80,9491,079,908
311,4682,882,272
2,240,00010,010,00016.604.597
30,514,111
711,800418,194145,846279,101
21,247,6115331&66
EXHIBIT A-1
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTSTATEMENT OF NET ASSETSAUGUST 31, 2012
DataControlCodes
ASSETS:1110 Cash and Cash Equivalents1120 Current Investments1225 Property Taxes Receivable (Net)1240 Due from Other Governments1250 Accrued Interest1267 Due from Fiduciary1290 Other Receivables (Net)1300 Inventories1410 Deferred Expenses
Capital Assets:1510 Land
1520 Buildings and Improvements, Net1530 Furniture and Equipment. Net1000 Total Assets
LIABILITIES:2110 Accounts Payable2165 Accrued Liabilities2180 Due to Other Governments2300 Unearned Revenue
Noncurrent Liabilities:2501 Due Within One Year2502 Due in More Than One Year2000 Total Liabilities
NET ASSETS3200 Invested in Capital Assets, Net of Related Debt
Restricted For:3820 Federal and State Programs3850 Debt Service3860 Capital Projects3870 Campus Activities3900 Unrestricted3 0 :::.Tdta1 NetSSetS:
..
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The accompanying notes are an integral part of this statement.
Program RevenuesOperating
Charges for Grants andServices Contributions
Net(Expense)Revenue andChanges inNot Assets
GovernmentalActivities
EXHIBIT B-1
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTSTATEMENT OF ACTIVITIESFOR THE YEAR ENDED AUGUST 31, 2012
DataControlCodes Functions/Programs
Governmental Activities:11 Instruction12 Instructional Resources and Media Services13 Curriculum and Staff Development21 Instructional Leadership23 School Leadership31 Guidance, Counseling, & Evaluation Services32 Social Work Services33 Health Services34 Student Transportation35 Food Service36 CocurricularlExtracu ►ricular Activities41 General Administration51 Plant Maintenance and Operations52 Security and Monitoring Services53 Data Processing Services61 Community Services72 Interest on Long-term Debt73 Bond Issuance Costs and Fees81 Capital Outlay91 Contracted Instructional Services between Schools99 Other Intergovernmental ChargesTG Total Governmental ActivitiesTP Total Primary Government
Expenses
$ 19,835,529391,688234,344438,447
1,926,9681,139,648
36,033211,741
1,227,7621,876,8661,387, 3481,073,3344,905,882
99,371516,512124,169579,295
14,0002,540
6,404,285643,458
43,069.220S 43,069,220
154,97623,407
1,0751,064
16,0162,809
100648
9,761645,870349,743
5,83917,785
3041.5901,979
20,1252,022
1,255.113$ 1,255,113
3,107,88315,351
189,393101,54667,565
250,5053,7177,438
39,6341.433,930
45,18837,736
180,6183,489
18,25250,769
231,07023,216
5,807,300$ 5,807,300
(16, 572,670)(352,930)
(43,876)(335.837)
(1,843,387)(686,334)
(32,216)(203,655)
(1,178,367)202,934
(992,417)(1.029,759)(4,707,479)
(95,578)(496,670)
(71,421)(579,295)
(14,000)(2,540)
(6,153,090)(618,220)
(36,006,807)(36,006,807)
General Revenues:MT Property Taxes, Levied for General Purposes 33,104,454DT Properly Taxes, Levied for Debt Service 2,841,407IE Investment Earnings 50,645
GC Grants and Contributions Not Restricted to Specific Programs 3,413,799MI Miscellaneous 1,020,796TR Total General Revenues 40,431,101ON Change in: Net Assets ......::::.......::......:::... 4424,294;NB Net Assets - Beginning 48,892,369NE Net Assets - Ending $ 53,316,663
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The accompanying notes are an integral part of this statement.
EXHIBIT C-1
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTBALANCE SHEET- GOVERNMENTAL FUNDSAUGUST 31, 2012
10 98Data Other Total
Control General Governmental GovernmentalFund Funds I,
ASSETS:1110 Cash and Cash Equivalents $ 1.736,077 $ 1,223,335 $ 2,959,4121120 Current Investments 20.811,904 77 20,811,9811225 Taxes Receivable, Net 681,307 51,273 732,5801240 Due from Other Governments -- 273,220 273,2201250 Accrued Interest 30,051 2,434 32,4851260 Due from Other Funds 19,255 208.827 228,0821290 Other Receivables 201,889 99 201,9881300 Inventories 130,776 112,944 243,7201000 Total Assets ::; $ 23 611 259 $.:: 1;872209. :: $ ::. 25483468
LIABIILITIES.Current Liabilities:
2110 Accounts Payable $ 70,136 $ 10,813 $ 80,9492150 Payroll Deductions & Withholdings 32.025 -- 32,0252160 Accrued Wages Payable 913,532 70,859 984,3912170 Due to Other Funds 19,255 -- 19,2552180 Due to Other Governments 311,468 -- 311,4682200 Accrued Expenditures 56,553 6,939 63,4922300 Deferred Revenue 3,385,539 229,313 3.614,8522000 Total Liabilities 4,788,508 317,924 5,106,432
FUND BALANCES:Nonspendable Fund Balances:
3410 Inventories 130,776 112,944 243,720Restricted Fund Balances:
3450 Federal/State Funds Grant Restrictions -- 536.907 536,9073480 Retirement of Long-Term Debt -- 418,194 418,1943490 Other Restrictions of Fund Balance -- 61,293 61,293
Committed Fund Balances:3510 Construction 685.000 145,846 830,8463520 Claims and Judgments 1,500,000 -- 1,500,0003540 Self-Insurance 1,200,000 -- 1,200,0003545 Other Committed Fund Balance 5,700.000 -- 5,700,0003600 Unassigned 9,606.975 -- 9,606,975
Unassigned, Reported in Nonmajor:3610 Special Revenue Funds -- 279.101 279,1013000 Total Fund Balances 18,822,751 1,554,285 20,377,036
4000 Total Li:a#7ihti g Flmd sa[arlcs 23611 259 4:. 1872,209: :: $ :; 254834681;
12
The accompanying notes are an integral part of this statement.
EXHIBIT C-1R
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEETTO THE STATEMENT OF NET ASSETSAUGUST 31, 2012
Total fund balances - governmental funds balance sheet
Amounts reported for governmental activities in the Statement of Net Assets{"SNA") are different because:
$ 20,377,036
Capital assets used in governmental activities are not reported in the funds. 42,764.111Property taxes receivable unavailable to pay for current period expenditures are deferred in the funds. 732,580The assets and liabilities of internal service funds are included in governmental activities in the SNA. 1.625.436Payables for bond principal which are not due in the current period are not reported in the funds. (12.250.000)Other long-term assets are not available to pay for current period expenditures and are deferred in the funds. 67.500
Net assets of governmental activities - Statement of Net Assets $ 53,316,663
13
The accompanying notes are an integral part of this statement.
EXHIBIT C-2
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGESIN FUND BALANCES - GOVERNMENTAL FUNDSFOR THE YEAR ENDED AUGUST 31, 2012
10 98Data Other Total
Control General Governmental GovernmentalCodes Fund Funds Funds
REVENUES:
5700 Local and Intermediate Sources $ 34,412,590 $ 3,934,581 $ 38,347,1715800 State Program Revenues 4,624,806 602,239 5,227,0455900 Federal Program Revenues 69,608 3,924,446 3,994,0545020 Total Revenues 39,107,004 8,461,266 47,568,270
EXPENDITURES:Current:
0011 Instruction 16,640,549 2,645,273 19,285,6220012 Instructional Resources and Media Services 363,606 15,333 378,9390013 Curriculum and Staff Development 40,132 202,220 242,3520021 Instructional Leadership 338,516 88,558 427,0740023 School Leadership 1,868,467 6,129 1,874,5960031 Guidance, Counseling, & Evaluation Services 893,992 216,030 1,110,0220032 Social Work Services 31,942 2,532 34,4740033 Health Services 206,146 -- 206,1460034 Student Transportation 1,188,339 5,008 1,193,3470035 Food Service -- 1,825,228 1,825,2280036 CocurricularlExlracurricularActivities 1,252,407 102,380 1,354,7870041 General Administration 1,045,873 1,504 1,047,3770051 Plant Maintenance and Operations 4,765,309 10,838 4,776,1470052 Security and Monitoring Services 96,711 -- 96,7110053 Data Processing Services 505,872 -- 505,8720061 Community Services 73,119 48,574 121,6930071 Principal on Long-term Debt -- 2,140,000 2,140,0000072 Interest on Long-term Debt -- 579,295 579,2950073 Bond Issuance Costs and Fees -- 500 5000081 Capital Outlay 374,231 21,193 395,4240091 Contracted Instructional Services0091 Between Public Schools 6,404,285 -- 6,404,2850099 Other Intergovernmental Charges 643,458 -- 643,4586030 Total Expenditures 36,732,954 7,910,595 44,643,549
1100 Excess (Deficiency) of Revenues Over (Under)1100 Expenditures 2,374,050 550,671 2,924,7211200 Net Change in Fund Balances 2,374,050 550,671 2.924,721
0100 Fund Balances - Beginning 16,448,701 1,003,61 4 17,452,3153000 Fund Balances Ending :: $ 18822751 $: 1,554,285: $ 20377036
14
The accompanying notes are an integral part of this statement.
513,251(1,041,461)
(74, 757)2,140,000
(13,500)(23,960)
$ 4,424,294
EXHIBIT C-3CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTRECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDSTO THE STATEMENT OF ACTI VI TI ESFOR THE YEAR ENDED AUGUST 31, 2012
Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the Statement of Activities("SOA") are different because:
Capital outlays are not reported as expenses in the SOA.The depreciation of capital assets used in governmental activities is not reported in the funds.Certain property lax revenues are deferred in the funds. This is the change in these amounts this yearRepayment of bond principal is an expenditure in the funds but is not an expense in the SOA.Bond issuance costs and similar items are amortized in the SOA but not in the funds.The net revenue (expense) of internal service funds is reported with governmental activities.
Change in net assets of governmental activities - Statement of Activities
2,924,721
15
The accompanying notes are an integral part of this statement.
EXHIBIT D-1
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTSTATEMENT OF NETASSETSINTERNAL SERVICE FUNDSAUGUST 31, 2012
Data InternalControl ServiceCodes Funds
ASSETS:Current Assets:
1110 Cash and Cash Equivalents $ 797,2901120 Investments 802,8091310 Inventories, at Cost 25,337
Total Current Assets 1,625,4361000 Total Assets $ 1,625,436
LIABILITIES:2000 Total Liabilities --
NET ASSETS:3900 Unrestricted Net Assets $ 1,625,436
;; ;O[ t -: , 1 F` ; _ t ;r %r, ,f ; rf• y ;• `%;f %f i•= ",'>' F;';=r = t=i1 r xYs = x;1 - 5-t
16
The accompanying notes are an integral part of this statement.
EXHIBIT D-2
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTSTATEMENT OF REVENUES, EXPENSES, AND CHANGESIN FUND NET ASSETS - INTERNAL SERVICE FUNDSFOR THE YEAR ENDED AUGUST 31, 2012
Data InternalControl ServiceCodes Funds
OPERATING REVENUES:5700 Local and Intermediate Sources $ 59,9415020 Total Revenues 59,941
OPERATING EXPENSES:6300 Supplies and Materials 83,9016030 Total Expenses 83,901
1300 Change in Net Assets (23,960)
0100 Total Net Assets - Beginning 1.649,3963tO ^"^=;^^^^i=1^^^i1 ^:^^^^:^i:dt =--:.^:^.^:^::^^:^^.•^^t,•f^r;^,•t,•rr;<:r.ir.^;t.^:^:^:r:•f,: : _43G --..........^,,...-.-r.F,..^r^^r,.,^^r=^^,t.,.,.r.^.t-r.^.^.....^...t.t.^..r.^.r..-^.,r.,-r.,^.,-r..,.,r.f....^.,.,. - •
17
The accompanying notes are an integral part of this statement.
EXHIBIT D-3
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTSTATEMENT OF CASH FLOWSPROPRIETARY FUNDSFOR THE YEAR ENDED AUGUST 31, 2012
InternalServiceFunds
Cash Flows from Operating Activities:Cash Received from Customers $ --Cash Received from Grants --Cash Receipts (Payments) for Quasi-external
Operating Transactions with Other Funds 59,859Cash Payments to Employees for Services --Cash Payments to Other Suppliers for Goods and Services (58.134)Cash Payments for Grants to Other Organizations --Other Operating Cash Receipts (Payments) --
Net Cash Provided (Used) by Operating Activities 1.725
Cash Flows from Non-capital Financing Activities:Transfers From (To) Other Funds
Net Cash Provided (Used) by Non-capital Financing Activities
Cash Flows from Capital and Related Financing Activities:Contributed Capital
Net Cash Provided (Used) for Capital & Related Financing Activities
Cash Flows from Investing Activities:Purchase of Investment Securities (870)Proceeds from Salo and Maturities of Securities --
Net Cash Provided (Used) for Investing Activities (870)
Net Increase (Decrease) in Cash and Cash Equivalents 855Cash and Cash Equivalents at Beginning of Year 796,435Cash and Cash Equivalents at End of Year $ 797,290
Reconciliation of Operating Income to Net CashProvided by Operating Activities:
Operating Income (Loss) $ (23,960)Adjustments to Reconcile Operating Income to Net Cash
Provided by Operating ActivitiesDepreciation
Change in Assets and Liabilities:Decrease (increase) in Receivables --Decrease (Increase) in Inventories 25,685Increase (Decrease) in Accounts Payable (918)Increase (Decrease) in tnterfund Payables (82)Increase (Decrease) in Due to Other Governments --Increase (Decrease) in Accrued Expenses --
Total Adjustments 25,685Net Cash Provided (Used) by Operating Activities $ 1,725
18
The accompanying notes are an integral part of this statement.
EXHIBIT E-1
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTSTATEMENT OF FIDUCIARY NET ASSETSFIDUCIARY FUNDSAUGUST 31, 2012
AgencyFund
Data InvestmentControl Trust StudentCodes Fund Activity
ASSETS:1110 Cash and Cash Equivalents $ -- $ 284,6761800 Restricted Assets 4,858 --1000 Total Assets $ 4,858 $ 284,676
LIABILITIES:Current Liabilities:
2170 Duo to Other Funds $ -- $ 208,8272190 Due to Student Groups -- 75,8492400 Payable from Restricted Assets 4,810 --2000 Total Liabilities 4,810 284,676
NET ASSETS3800 Hold in Trust for Investments 48 --
19
The accompanying notes are an integral part of this statement.
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED AUGUST 31, 2012
A. Summary of Significant Accountina Policie
The basic financial statements of Calhoun County Independent School District (the "District") have been prepared inconformity with accounting principles generally accepted in the United States of America ("GAAP") applicable togovernmental units in conjunction with the Texas Education Agency's Financial Accountability System ResourceGuide ("Resource Guide"). The Governmental Accounting Standards Board ("GASB") is the accepted standard settingbody for establishing governmental accounting and financial reporting principles.
1. Reporting Entity
The Board of School Trustees ("Board"), a seven-member group, has governance responsibilities over all activitiesrelated to public elementary and secondary education within the jurisdiction of the District. The Board is elected by thepublic and has the exclusive power and duty to govern and oversee the management of the public schools of theDistrict. All powers and duties not specifically delegated by statute to the Texas Education Agency ("TEA") or to theState Board of Education are reserved for the Board, and the TEA may not substitute its judgment for the lawfulexercise of those powers and duties by the Board. The District receives funding from local, state and federalgovernment sources and must comply with the requirements of those funding entities. However, the District is notincluded in any other governmental "reporting entity" as defined by the GASB in its Statement No. 14, "The FinancialReporting Entity," as revised by GASB Statement No.39, and there are no component units included within the reportingentity.
Basis of Presentation, Basis of Accounting
Basis of Presentation
Government-wide Financial Statements: The statement of net assets and the statement of activitiesinclude the financial activities of the overall government, except for fiduciary activities. Eliminations havebeen made to minimize the double-counting of internal activities. Governmental activities generally arefinanced through taxes, intergovernmental revenues, and other nonexchange transactions.
The statement of activities presents a comparison between direct expenses and program revenues foreach function of the District's governmental activities. Direct expenses are those that are specificallyassociated with a program or function and, therefore, are clearly identifiable to a particular function. TheDistrict does not allocate indirect expenses in the statement of activities. Program revenues include (a)fees, fines, and charges paid by the recipients of goods or services offered by the programs and (b) grantsand contributions that are restricted to meeting the operational or capital requirements of a particularprogram. Revenues that are not classified as program revenues, including all taxes, are presented asgeneral revenues.
Fund Financial Statements: The fund financial statements provide information about the District's funds,with separate statements presented for each fund category. The emphasis of fund financial statements ison major governmental funds, each displayed in a separate column. All remaining governmental fundsare aggregated and reported as nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from exchange transactionsassociated with the principal activity of the fund. Exchange transactions are those in which each party receivesand gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings,result from nonexchange transactions or ancillary activities.
The District reports the following major governmental funds:
General Fund: This is the District's primary operating fund. It accounts for all financial resources of theDistrict except those required to be accounted for in another fund.
In addition, the District reports the following fund types:
20
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED AUGUST 31, 2012
Internal Service Funds: These funds are used to account for revenues and expenses related to services providedto parties inside the District. These funds facilitate distribution of support costs to the users of supportservices on a cost-reimbursement basis. Because the principal users of the internal services are theDistrict's governmental activities, this fund type is included in the "Governmental Activities" column of thegovernment-wide financial statements.
Agency Funds: These funds are used to report student activity funds and other resources held in a purely custodialcapacity (assets equal liabilities). Agency funds typically involve only the receipt, temporary investment, andremittance of fiduciary resources to individuals, private organizations, or other governments.
Fiduciary funds are reported in the fiduciary fund financial statements. However, because their assets are held ina trustee or agent capacity and are therefore not available to support District programs, these funds are notincluded in the government-wide statements.
b. Measurement Focus, Basis of Accounting
Government-wide, Proprietary, and Fiduciary Fund Financial Statements: These financial statements arereported using the economic resources measurement focus. The government-wide and proprietary fundfinancial statements are reported using the accrual basis of accounting. Revenues are recorded whenearned and expenses are recorded at the time liabilities are incurred, regardless of when the related cashflows take place. Nonexchange transactions, in which the District gives (or receives) value without directlyreceiving (or giving) equal value in exchange, include property taxes, grants, entitlements, anddonations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which thetaxes are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year inwhich all eligibility requirements have been satisfied.
Governmental Fund Financial Statements: Governmental funds are reported using the current financialresources measurement focus and the modified accrual basis of accounting. Under this method, revenuesare recognized when measurable and available. The District does not consider revenues collected afterits year-end to be available in the current period. Revenues from local sources consist primarily ofproperty taxes. Property tax revenues and revenues received from the State are recognized under thesusceptible-to-accrual concept. Miscellaneous revenues are recorded as revenue when received in cashbecause they are generally not measurable until actually received. Investment earnings are recorded asearned, since they are both measurable and available. Expenditures are recorded when the related fundliability is incurred, except for principal and interest on general long-term debt, claims and judgments,and compensated absences, which are recognized as expenditures to the extent they have matured.General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds ofgeneral long-term debt and acquisitions under capital leases are reported as other financing sources.
When the District incurs an expenditure or expense for which both restricted and unrestricted resources maybe used, it is the District's policy to use restricted resources first, then unrestricted resources.
Under GASB Statement No. 20. "Accounting and Financial Reporting for Proprietary Funds and OtherGovernmental Entities Thai Use Proprietary Fund Accounting," all proprietary funds will continue tofollow Financial Accounting Standards Board ("FASB") standards issued on or before November 30, 1989.However, from that date forward, proprietary funds will have the option of either 1) choosing not to applyfuture FASS standards (including amendments of earlier pronouncements), or 2) continuing to follow newFASB pronouncements unless they conflict with GASB guidance. The District has chosen not to applyfuture FASB standards.
3. Financial Statement Amounts
Cash and Cash Equivalents
For purposes of the statement of cash flows, highly liquid investments are considered to be cash equivalents if theyhave a maturity of three months or less when purchased.
21
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED AUGUST 31, 2012
b.
C.
d.
Property Taxes
Property taxes are levied by October 1 on the assessed value listed as of the prior January 1 for all realand business personal property in conformity with Subtitle E, Texas Property Tax Code. Taxes are due onreceipt of the tax bill and are delinquent if not paid before February 1 of the year following the year inwhich imposed. On January 1 of each year, a tax lien attaches to property to secure the payment of alltaxes, penalties, and interest ultimately imposed. Property tax revenues are considered availablewhen they become due or past due and receivable within the current period.
Delinquent Taxes are summarized as follows:General Debt Service
Fund Fund TotalDelinquent Taxes $ 1,105,060 83,164 1,188,224Allowance for Delinquent Taxes (423,753) (31,891) (455,644)
$ 681,307 $ 51,273 $ 732580
Allowances For uncolleclible tax receivables within the General and Debt Service Funds are based uponhistorical experience in collecting property taxes. Uncolleclible personal property taxes are periodicallyreviewed and written off, but the District is prohibited from writing off real property taxes without specificstatutory authority from the Texas Legislature.
Inventories and Prepaid Items
Inventories of supplies on the balance sheet are stated at weighted average cost, while inventories of foodcommodities are recorded at market values supplied by the Texas Department of Human Services. Inventoryitems are recorded as expenditures when they are consumed. Supplies are used for almost all functions ofactivity, while food commodities are used only in the food service program. Although commodities are receivedat no cost, their fair market value is supplied by the Texas Department of Human Services and recorded asinventory and deferred revenue when received. When requisitioned, inventory and deferred revenue arerelieved, expenditures are charged, and revenue is recognized for an equal amount. Inventories also includeplant maintenance and operation supplies as well as instructional supplies.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaiditems.
Capital Assets
Purchased or constructed capital assets are reported at cost or estimated historical cost. Donated fixed assetsare recorded at their estimated fair value at the date of the donation. The cost of normal maintenance and repairsthat do not add to the value of the asset or materially extend assets' lives are not capitalized. A capitalizationthreshold of $5,000 is used.
Capital assets are being depreciated using the straight-line method over the following estimated useful lives:
EstimatedAsset Class Useful Lives
Buildings 30Building Improvements 10-30Vehicles 5-15Office Equipment 5
22
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED AUGUST 31, 2012
e. Receivable and Payable Balances
The District believes that sufficient detail of receivable and payable balances is provided in the financialstatements to avoid the obscuring of significant components by aggregation. Therefore, no disclosure is providedwhich disaggregates those balances.
There are no significant receivables which are not scheduled for collection within one year of year end.
f. Interfund Activity
Interfund activity results from loans, services provided, reimbursements or transfers between funds. Loans arereported as interfund receivables and payables as appropriate and are subject to elimination upon consolidation.Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures orexpenses. Reimbursements occur when one fund incurs a cost, charges the appropriate benefiting fund andreduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers Inand Transfers Out are netted and presented as a single "Transfers" line on the government-wide statement ofactivities. Similarly, Interfund receivables and payables are netted and presented as a single "Internal Balances"li ne of the government-wide statement of net assets.
g. Use of Estimates
The preparation of financial statements in conformity with GAAP requires the use of management's estimates.
h. Data Control Codes
Data Control Codes appear in the rows and above the columns of certain financial statements. The TEA requiresthe display of these codes in the financial statements filed with TEA in order to insure accuracy in building astatewide database for policy development and funding plans.
Fund Balances - Governmental Funds
Fund balances of the governmental funds are classified as follows:
Nonspendable Fund Balance - represents amounts that cannot be spent because they are either not inspendable form (such as inventory or prepaid insurance) or legally required to remain intact (such as notesreceivable or principal of a permanent fund).
Restricted Fund Balance - represents amounts that are constrained by external parties, constitutionalprovisions or enabling legislation.
Committed Fund Balance - represents amounts that can only be used for a specific purpose because of aformal action by the District's governing board. Committed amounts cannot be used for any other purposeunless the governing board removes those constraints by taking the same type of formal action.Committed fund balance amounts may be used for other purposes with appropriate due process by thegoverning board. Commitments are typically done through adoption and amendment of the budget.Committed fund balance amounts differ from restricted balances in that the constraints on their use do notcome from outside parties, constitutional provisions, or enabling legislation.
Assigned Fund Balance - represents amounts which the District intends to use for a specific purpose, butthat do not meet the criteria to be classified as restricted or committed. Intent may be stipulated by thegoverning board or by an official or body to which the governing board delegates the authority. Specificamounts that are not restricted or committed in a special revenue, capital projects, debt service orpermanent fund are assigned for purposes In accordance with the nature of their fund type or the fund'sprimary purpose. Assignments within the general fund conveys that the intended use of those amounts isfor a specific purpose that is narrower than the general purposes of the District itself.
23
B
C.
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED AUGUST 31, 2012
Unassigned Fund Balance - represents amounts which are unconstrained in that they may be spent forany purpose. Only the general fund reports a positive unassigned fund balance. Other governmentalfunds might report a negative balance in this classification because of overspending for specific purposesfor which amounts had been restricted, committed or assigned.
When an expenditure is incurred for a purpose for which both restricted and unrestricted fund balance isavailable, the District considers restricted funds to have been spent first. When an expenditure is incurredfor which committed, assigned, or unassigned fund balances are available, the District considers amountsto have been spent first out of committed funds, then assigned funds, and finally unassigned funds.
Finance-Related Legal and Contractual Provisions
In accordance with GASB Statement No. 38, "Certain Financial Statement Note Disclosures," violations of finance-related legal and contractual provisions, if any, are reported below, along with actions taken to address such violations:
ViolationExpenditures exceeded budget:
Budget Actual VarianceGeneral Fund:0091 Contracted Instr. Services Between
Schools $ 6,117,502 $ 6,404,285 $ (286,783)
2. Deficit Fund Balance or Fund Net Assets of Individual Funds
Following are funds having deficit fund balances or fund net assets at year end, if any, along with remarks which addresssuch deficits:
DeficitFund Name Amount RemarksNone reported Not applicable Not applicable
Deposits and Investments
The District's funds are required to be deposited and invested under the terms of a depository contract. The depositorybank deposits for safekeeping and trust with the District's agent bank approved pledged securities in an amount sufficientto protect District funds on a day-to-day basis during the period of the contract. The pledge of approved securities iswaived only to the extent of the depository bank's dollar amount of Federal Deposit Insurance Corporation ("FDIC")insurance.
Cash Deposits:
At August 31, 2012, the carrying amount of the District's deposits (cash, certificates of deposit, andinterest-bearing savings accounts included in temporary investments) was $4,041,376 and the bank balance was$4,309,338. The District's cash deposits at August 31, 2012 and during the year ended August 31, 2012, wereentirely covered by FDIC insurance or by pledged collateral held by the District's agent bank in the District'sname.
Investments:
The District Is required by Government Code Chapter 2256, The Public Funds Investment Act, to adopt,implement, and publicize an investment policy. That policy must address the following areas: (1) safety ofprincipal 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 averagedollar-weighted maturity allowed based on the stated maturity date for the portfolio, (8) investment staff qualityand capabilities, and (9) bid solicitation preferences for certificates of deposit.
24
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED AUGUST 31, 2012
The Public Funds Investment Act ("Act") requires an annual audit of investment practices. Audit procedures inthis area conducted as a part of the audit of the basic financial statements disclosed that in the areas ofinvestment practices, management reports and establishment of appropriate policies, the District adhered to therequirements of the Act. Additionally, investment practices of the District were in accordance with local policies.
The Act determines the types of investments which are allowable for the District. These Include, with certainrestrictions, 1) obligations of the U.S. Treasury, U.S. agencies, and the Stale of Texas, 2) certificates of deposit,3) certain municipal securities, 4) securities lending program, 5) repurchase agreements, 6) bankers acceptances,7) mutual funds, 8) investment pools, 9) guaranteed investment contracts, and 10) commercial paper.
The District's investment at August 31, 2012 are shown below.
Investment or Investment TypeTexStar Investment PoolMBIA Asset ManagementTexPoolLone Star Investment PoolTotal Investments
Maturity Fair ValueN/A $ 1,270,708N/A 4,750,376N/A 2,120, 058N/A 13.473,648
$21,614,790
3. Analysis of Specific Deposit and Investment Risks
GASS Statement No. 40 requires a determination as to whether the District was exposed to the following specificinvestment risks at year end and if so. the reporting of certain related disclosures:
a. Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The ratingsof securities by nationally recognized rating agencies are designed to give an indication of credit risk. Al year end,the District was not significantly exposed to credit risk.
b. Custodial Credit Risk
Deposits are exposed to custodial credit risk if they are not covered by depository insurance and thedeposits are uncollateralized, collateralized with securities held by the pledging financial institution, orcollateralized with securities held by the pledging financial institution's trust department or agent but not in theDistrict's name.
Investment securities are exposed to custodial credit risk if the securities are uninsured, are not registered inthe name of the government, and are held by either the counterparty or the counterparty's trust departmentor agent but not in the District's name.
At year end, the District was not exposed to custodial credit risk.
c. Concentration of Credit Risk
This risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. At yearend, the District was not exposed to concentration of credit risk.
d. Interest Rate Risk
This is the risk that changes in interest rates will adversely affect the fair value of an investment. At year end,the District was not exposed to interest rate risk.
e. Foreign Currency Risk
This is the risk that exchange rates will adversely affect the fair value of an investment. At year end, theDistrict was not exposed to foreign currency risk.
25
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED AUGUST 31, 2012
A
Investment Accounting PolicyThe District's general policy is to report money market investments and short-term participating interest-earninginvestment contracts at amortized cost and to report nonparticipating interest-earning investment contracts using acost-based measure. However, if the fair value of an investment is significantly affected by the impairment of the creditstanding of the issuer or by other factors, it is reported at fair value. All other investments are reported at fair value unless alegal contract exists which guarantees a higher value. The term "short-term" refers to investments which have a remainingterm of one year or less at time of purchase. The term "nonparticipating" means that the investment's value does not varywith market interest rate changes. Nonnegotiable certificates of deposit are examples of nonparticipating interest-earninginvestment contracts.
Ca pital Assets
Capital asset activity for the year ended August 31, 2012, was as follows:
Beginning EndingBalances Increases Decreases Balances
Governmental activities:Capita! assets not being depreciated.Land $ 3,712,524 $ -- $ -- $ 3,712,524Construction in progress 21,683,091 (21,683,091) - --Total capital assets not being depreciated 25,395,615 (21,683,091) -- 3,712,524
Capital assets being depreciated:Buildings and improvements 47,226.413 22,075,975 -- 69,302,388Equipment 2,171,424 30,522 2,201,946Vehicles 2,993.788 89,845 -- 3,083,633Total capital assets being depreciated 52,391,625 22,196,342 -- 74,587,967
Less accumulated depreciation for:Buildings and improvements (30,681.304) (790,056) -- (31,471,360)Equipment (1,875.933) (127,146) -- (2,003,079)Vehicles (1,937,680) (124,260) -- (2,061,940)
Total accumulated depreciation (34,494.917) (1,041,462) --_
(35,536,379)Total capital assets being depreciated, net 17,896.708 21,154,880 -- 39,051,588
Governmental activities capital assets, net $ 43,292,323 $ ( 28,211)$ -- $ 42,764,112
Depreciation was charged to functions as follows:
Instruction $ 531.885Instructional Resources and Media Services 12.749Curriculum and Staff Development 3,577Instructional Leadership 11,373School Leadership 52,372Guidance, Counseling, & Evaluation Services 29,626Social Work Services 1.559Health Services 5.595Student Transportation 124,260Food Services 51,638Extracurricular Activities 32,561General Administration 25,957Plant Maintenance and Operations 142,533Security and Monitoring Services 2,660Data Processing Services 10,640Community Services 2,477
$1,041,462
26
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED AUGUST 31, 2012
E. Interfund Balances andActivities
Due To and From Other Funds
Balances due to and due from other funds at August 31, 2012, consisted of the following:
Due To Fund Due From Fund Amount Pu
$ 16,486 Short-term loans2.769 Short-term loans
75,770 Short-term loans$ 95 025
General Fund Gerneral Fund (Payroll)General Fund Other Governmental FundsOther Governmental Funds Agency Fund
Total
All amounts due are scheduled to be repaid within one year.
Long-Term Obligations
The District has entered into a continuing disclosure undertaking to provide Annual Reports and Material Event Noticesto the State Information Depository of Texas, which is the Municipal Advisory Council. This information is required underSEC Rule 15c2-12 to enable investors to analyze the financial condition and operations of The District.
Long-Term Obligation Activity
Long-term obligations include debt and other long-term liabilities. Changes in long-term obligations for the year endedAugust 31, 2012, are as follows:
AmountsBeginning Ending Due WithinBalance Increases Decreases Balance One Year
Governmental activities:Tax School Building Bonds
4.3%-4.75% $ 14,390,000 $____________$ 2,140,000 $ 12,250,000 $ 2,240.000Total governmental activities $ 14,390,000 $ --$ 2,140,000 $ 12,250,000 $ 2,240.000
Other long-term liabilitiesThe funds typically used to liquidate other long-term liabilities in the past are as follows:
LiabilityCompensated absencesClaims and judgmentsCompensated absencesClaims and judgments
Activity Type FundGovernmentalGovernmentalBusiness-typeBusiness-type
2. Debt Service Requirements
Debt service requirements on tong-term debt at August 31, 2012, are as follows:
Governmental ActivitiesYear Ending August 31, Principal Interest Total2013 $ 2,240,000 $ 478.070 $ 2,718,0702014 2,345,000 374,908 2,719,9082015 2,450,000 271,920 2,721,9202016 2.550.000 168,145 2,718,1452017 2,665,000 57,297 2.722,297Totals $ 12,250,000 $ 1,350,340 $ 13,600,340
27
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED AUGUST 31, 2012
G. Risk Management
The District is exposed to various risks of loss related to torts, theft, damage or destruction of assets, errors andomissions, injuries to employees, and natural disasters. During fiscal year 2012, the District purchased commercialinsurance to cover general liabilities. There were no significant reductions in coverage in the past fiscal year andthere were no settlements exceeding insurance coverage for each of the past three fiscal years.
H. Pension Plan
Plan Description
The District contributes to the Teacher Retirement System of Texas (TRS), a cost-sharing multiple employerdefined benefit pension plan. TRS administers retirement and disability annuities, and death and survivorbenefits to employees and beneficiaries of employees of the public school systems of Texas. It operatesprimarily 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 TexasGovernment Code, Title 8, Chapters 803 and 805, respectively. The Texas state legislature has the authority toestablish and amend benefit provisions of (he pension plan and may, under certain circumstances, grant specialauthority to the TRS Board of Trustees. TRS issues a publicly available financial report that includes financialstatements and required supplementary information for the defined benefit pension plan. That report may beobtained by downloading the report from the TRS internet website, www.trs.stale.tx.us , under the TRSPublications heading, by calling the TRS Communications Department at 1-800-223-8778, or by writing to theTRS Communications Department, 1000 Red River Street, Austin, Texas 78701.
2. Funding Policy
Contribution requirements are not actuarially determined but are established and amended by the Texas statelegislature. The state funding policy is as follows: (1) The state constitution requires the legislature to establish amember contribution rate of not less than 6.0% of the member's annual compensation and a state contributionrate of not less that 6.0% and not more than 10% of the aggregate annual compensation of all members of thesystem. (2) A state statute prohibits benefit improvements or contribution reductions if, as a result of a particularaction, the time required to amortize TRS unfunded actuarial liabilities would be increased to a period thatexceeds 31 years, or, if the amortization period already exceeds 31 years, the period would be increased by suchaction. State law provides for a member contribution rate of 6.4% for fiscal years 2011, 2010, and 2009, and astate contribution rate of 6.644% for fiscal years 2011-2010 and 6.58% for fiscal year 2009. In certain instancesthe reporting district is required to make all or a portion of the state's 6.644% contribution, limited to 6.4% for theperiod of September through December 2009 and increased to 6.644% for the period of January 2010 throughAugust 2011. State contributions to TRS made on behalf of the District's employees for the years ending August31, 2012, 2011 and 2010 were $1,607,314, $1,789,175 and $1,759,234, respectively. The District paidadditional state contributions for the years ending August 31, 2012, 2011 and 2010 in the amount of $147,374,$224,204 and $230,634, respectively, on portion of the employees' salaries that exceeded the statutoryminimum.
Retiree Health Care Plan
Plan Description
The District contributes to the Texas Public School Retired Employees Group Insurance Program (TRS-Care), acost-sharing multiple-employer defined benefit postemployment health care plan administered by the TeacherRetirement System of Texas (TRS). TRS-Care Retired Plan provides health care coverage for certain persons(and their dependents) who retired under the Teacher Retirement System of Texas. The statutory authority forthe program is Texas Insurance Code, Chapter 1575. Section 1575.052 grants the TRS Board of Trustees theauthority to establish and amend basic and optional group insurance coverage for participants. The TRS issuesa publicly available financial report that includes financial statements and required supplementary informationfor TRS-Care. That report may be obtained by visiting the TRS web site at www.trs.state.lx.us under theTRS Publications heading, by writing to the System of Texas at 1000 Red River Street, Austin, Texas 78701, orby calling 1-800-223-8778.
28
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED AUGUST 31, 2012
Funding Policy
Contribution requirements are not actuarially determined but are legally established each biennium by theTexas Legislature. Texas Insurance Code, Sections 1575.202, 203, and 204 establish state, active employee,and public school contributions, respectively. The State of Texas and active public school employeecontribution rates were 1.0% and 0.65% of public school payroll, respectively, with school districts contributing apercentage of payroll set at 0.55% for fiscal years 2012, 2011 and 2010. Per Texas Insurance Code, Chapter1575, the public school contribution may not be less than 0.25% or greater than 0.75% of the salary of eachactive employee of the public school. For the years ended August 31, 2012, 2011, and 2010, the State'scontributions to TRS-Care were $213,471, $227,935, and $231,148, respectively, the active membercontributions were $138,756, $148,157. and $150,461, respectively, and the District's contributions were$117,409, $125,364, and $127,313, respectively, which equaled the required contributions each year.
The Medicare Prescription Drug, Improvement, and Modernization Act of 2003, which was effective January 1,2006. established prescription drug coverage for Medicare beneficiaries known as Medicare Part D. One of theprovisions of Medicare Part D allows for the Texas Public School Retired Employee Group Insurance Program(TRS-Care) to receive retiree drug subsidy payments from the federal government to offset certain prescriptiondrug expenditures for eligible TRS-Care participants. For the fiscal years ended August 31, 2012, 2011, and2010, the subsidy payments received by TRS-Care on behalf of the District were $52,269, $52,173, and$57,196, respectively.
J. Employee Health Care Coverage
During the year ended August 31. 2012, employees of the District were covered by a health insurance plan (the Plan).The District paid premiums of $346 per month per employee to the Plan. Employees, at their option, authorizedpayroll withholdings to pay premiums for dependents. All premiums were paid to a licensed insurer. The Plan wasauthorized by Section 21.922, Texas Education Code and was documented by contractual agreement.
The contract between the District and the licensed insurer is renewable September 1, and terms of coverage andpremium costs are included in the contractual provisions.
K. Commitments and Contingencies
1. Contingencies
The District participates in grant programs which are governed by various rules and regulations of the grantoragencies. Costs charged to the respective grant programs are subject to audit and adjustment by the grantoragencies; therefore, to the extent that the District has not complied with the rules and regulations governing thegrants, refunds of any money received may be required and the collectibility of any related receivable may beimpaired. In the opinion of the District, there are no significant contingent liabilities relating to compliance withthe rules and regulations governing the respective grants; therefore, no provision has been recorded in theaccompanying basic financial statements for such contingencies.
29
Required Supplementary Information
Required supplementary information includes financial information and disclosures required by the GovernmentalAccounting Standards Board but not considered a part of the basic financial statements.
3 Variance withFinal Budget
PositiveActual (Negative)
$ 109,8297,379
29,608
1,630.26630.212
1,671,624
25,313111,884
43,0085,853
13,322153,38977,504
138,609138,609
591,21424,57427,979
643,767
31,49031,490
5,8695,869
(286,783)3,347
(283,436)
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICT EXHIBIT G-1GENERAL FUND Page 1 of 2BUDGETARY COMPARISON SCHEDULEFOR THE YEAR ENDED AUGUST 31, 2012
1 2Data
Control Budgeted AmountsCodes Original Final
REVENUES:5700 Local and Intermediate Sources $ 34,275,511 $ 34,302,7615800 State Program Revenues 4,617,427 4,617,4275900 Federal Program Revenues 40,000 40,0005020 Total Revenues 38,932,938 38,960,188
EXPENDITURES:Current:
Instruction & Instructional Related Services:0011 Instruction 18,472,694 18,270,8150012 Instructional Resources and Media Services 393,818 393,8180013 Curriculum and Staff Development 43,713 51,278
Total Instruction & Insir. Related Services 18,910,225 18.715,911
Instructional and School Leadership:0021 Instructional Leadership 353,829 363,8290023 School Leadership 1,971,167 1,980,351
Total Instructional & School Leadership 2,324,996 2,344,180
Support Services - Student (Pupil):0031 Guidance, Counseling and Evaluation Services 927,000 937,0000032 Social Work Services 33,795 37,7950033 Health Services 214,468 219,4680034 Student (Pupil) Transportation 1,339,728 1,341,7280036 Cocurncular/ExlracurricularActivities 1,324,936 1,329.911
Total Support Services - Student (Pupil) 3,839,927 3,865,902
Administrative Support Services:0041 General Administration 1.127,782 1,184.482
Total Administrative Support Services 1,127,782 1,184,482
Support Services - Nonstudent Based:0051 Plant Maintenance and Operations 5.353,318 5,356,5230052 Security and Monitoring Services 122,785 121,2850053 Data Processing Services 528,851 533,851
Total Support Services - Nonstudent Based 6,004,954 6,011,659
Ancillary Services:0061 Community Services 102.747 104,609
Total Ancillary Services 102,747 104,609
Capital Outlay:0081 Capital Outlay -- 380,100
Total Capital Outlay -- 380,100
Intergovernmental Charges:0091 Contracted lnstr. Services Between Public Schools 6,092,502 6,117,5020099 Other Intergovernmental Charges 529.805 646,805
Total Intergovernmental Charges 6,622,307 6,764,307
6030 Total Expenditures 38,932,938 39,371,150
1100 Excess (Deficiency) of Revenues Over (Under)
30
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICT EXHIBIT G -1GENERAL FUND Page 2 of 2BUDGETARY COMPARISON SCHEDULEFOR THE YEAR ENDED AUGUST 31, 2012
DataControlCodes1100 Expenditures1200 Net Change in Fund Balance
Budgeted AmountsOriginal Final
-- 41 u,5e)-- (410,962)
3 Variance withFinal Budget
PositiveActual (Negative)
?4f0S03T45Q Q: 2, 785,012
0100 Fund Balance- B 16,448, 701 16,448,701
31
Combining Statements and Budget Comparisonsas Supplementary Information
This supplementary information includes financial statements and schedules not required by the Governmental AccountingStandards Board, nor a part of the basic financial statements, but are presented for purposes of additional analysis.
EXHIBIT H-1
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTCOMBINING BALANCE SHEETNONMAJOR GOVERNMENTAL FUNDSAUGUST 31, 2012
TotalNonmajor
Data Special Debt Capital GovernmentalControl Revenue Service Projects Funds (SeeCodes Funds Fund Fund Exhibit C-1)
ASSETS:1110 Cash and Cash Equivalents $ 661,763 $ 415,760 $ 145,812 $ 1,223,3351120 Current Investments 43 -- 34 771225 Taxes Receivable, Net -- 51,273 -- 51,2731240 Due from Other Governments 273,220 -- -- 273,2201250 Accrued Interest -- 2,434 -- 2,4341260 Due from Other Funds 208,827 -- -- 208,8271290 Other Receivables 99 -- -- 991300 Inventories 112.944 - -- 112,9441000: Total Assets . 'f 256;89:6, _$ .:: 469,467: : $ 145;846 . $ . 1,872209
LIABILITIES:Current Liabilities:
2110 Accounts Payable $ 10.813 $ -- $ -- $ 10,8132160 Accrued Wages Payable 70,859 -- -- 70,8592200 Accrued Expenditures 6,939 -- -- 6,9392300 Deferred Revenue 178,040 51,273 - 229,3132000 Total Liabilities 266,651 51,273 -- 317,924
FUND BALANCES:Nonspendabte Fund Balances:
3410 Inventories 112,944 - -- 112.944Restricted Fund Balances:
3450 Federal/State Funds Grant Restrictions 536,907 -- -- 536,9073480 Retirement of Long-Tenn Debt -- 418,194 -- 418,1943490 Other Restrictions of Fund Balance 61,293 -- -- 61.293
Committed Fund Balances:3510 Construction -- -- 145,846 145.846
Unassigned, Reported in Nonmajor:3610 Special Revenue Funds 279,101 -- -- 279.1013000 Total Fund Balances 990,245 418,194 145,846 1,554,285
4000 ... Total Liabilities and Fund Balances 1 ;256,896 $:::: 469467 :: $ 145,846 $ 1.872,209.
32
EXHIBIT H-2
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTCOMBINING STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCESNONMAJOR GOVERNMENTAL FUNDSFOR THE YEAR ENDED AUGUST 31, 2012
TotalNonmajor
Data Special Debi Capital GovernmentalControl Revenue Service Projects Funds (SeeCodes Funds Fund Fund Exhibit C-2)
REVENUES:5700 Local andtntennediate Sources $ 1.091,987 $ 2,842,134 $ 460 $ 3.934,5815800 State Program Revenues 602,239 -- -- 602,2395900 Federal Program Revenues 3.924,446 -- - 3,924,4465020 Total Revenues 5.618,672 2,842,134 460 8.461,266
EXPENDITURES:Current:
0011 Instruction 2,645,273 -- -- 2,645,2730012 Instructional Resources and Media Services 15,333 -- -- 15,3330013 Curriculum and Staff Development 202,220 -- 202,2200021 Instructional Leadership 88,558 -- -- 88,5580023 School Leadership 6,129 -- -- 6,1290031 Guidance, Counseling, & Evaluation Services 216,030 -- -- 216,0300032 Social Work Services 2,532 -- -- 2,5320034 Student Transportation 5,008 -- -- 5,0080035 Food Service 1,825,228 -- -- 1,825,2280036 Cocurricular/Extracurricular Activities 102,380 -- -- 102,3800041 General Administration 1,504 -- -- 1,5040051 Plant Maintenance and Operalions 10,838 -- -- 10,8380061 Community Services 48,574 -- -- 48,5740071 Principal on Long-term Debt -- 2,140,000 -- 2,140,0000072 Interest on Long-term Debt -- 579,295 -- 579,2950073 Bond Issuance Costs and Fees -- 500 -- 5000081 Capital Outlay -- -- 21,193 21,1936030 Total Expenditures 5,169.607 2,719,795 21,193 7,910,595
1100 Excess (Deficiency) of Revenues Over (Under)1100 Expenditures 449,065 1 22,339 (20,733) 550,6711200 Nei Change in Fund Balances 449.065 122,339 (20,733) 550,671
0100 Fund Balances - Beginning 541,180 295,855 166,579 1,003,614Fund Balances - Beginning, as Restated 541,180 295,855 166,579 1,003,614
3000 Fund Balances :Ending $ 990 245 418__194 :: $ 145,846 $ , : 9.55:4 8
33
211 224Data ESEA Title
Control Improving IDEA-BCodes Basic Programs Formula
ASSETS:1110 Cash and Cash Equivalents $ -- $ --1120 Current Investments -- --1240 Due from Other Governments 26,737 21,0101260 Due from Other Funds -- --1290 Other Receivables -- --1300 Inventories -- --1.000 ...:::Total: Assess . ....:: :::: : 25.737............. .
LIABILITIES:Current Liabilities:
2110 Accounts Payable $ -- $ --2160 Accrued Wages Payable 24,385 18,5202200 Accrued Expenditures 2.352 2,4902300 Deferred Revenue -- --2000 Total Liabilities 26.737 21.010
786113
225
IDEA-B
899
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTCOMBINING BALANCE SHEETNONMAJOR SPECIAL REVENUE FUNDSAUGUST 31, 2012
FUND BALANCES:Nonspendable Fund Balances:
3410 Inventories -- -- --Restricted Fund Balances:
3450 Federal/State Funds Grant Restrictions -- --3490 Other Restrictions of Fund Balance -- --
Unassigned, Reported in Nonmajor:3610 Special Revenue Funds -- -- --3000 Total Fund Balances -- -- --
4000 Total Liabilities and fund $ landds ::: $ 26,737 $ : 21,010 $ .... 899:
34
EXHIBIT H-3
Page 1 of 2
240 242 255 392 410National School Summer ESEA Title II Non-Educational StateBreakfast/Lunch Feeding Training & Community-Based Textbook
Program Program Recruiting Support Fund
$ 536,408 $ (4,846) $ -- $ (1.924) $ 65743 -- -- -- --
32,296 4,846 8,125 1,924 177,383
112.944 -- -- -- --$ ':::$ :: _..:::::::::: $ :: ......178040:
$ 10.813 $ $ $ $19,582 -- 7,586 -- --
1,445 -- 539 -- --- 178.040
31,840 -- 8,125 - 1 78,040
112,944 -- -- -- --
536,907 -- -- -- --
$ 681,691 $:.::: $ p.325 .: : $: $ 178,040:
35
EXHIBIT H-3
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICT
Page 2 of 2COMBINING BALANCE SHEETNONMAJOR SPECIAL REVENUE FUNDSAUGUST 31, 2012
TotalNonmajor
461 499 SpecialData Campus TSR Revenue
Control Activity Project Funds (SeeCodes Funds Mentor Exhibit H-1)
ASSETS:1110 Cash and Cash Equivalents $ 70,175 $ 61,293 $ 661,7631120 Current Investments -- -- 431240 Due from Other Governments -- -- 273.2201260 Due from Other Funds 208,827 -- 208.8271290 Other Receivables 99 -- 991300 Inventories -- -- 112.9441000 Total Assets $ 279101 $.: 61293: : $ .1;.256,$96:',:
LIABILITIES:Current Liabilities:
2110 Accounts Payable $ -- $ -- $ 10,8132160 Accrued Wages Payable -- -- 70.8592200 Accrued Expenditures -- -- 6,9392300 Deferred Revenue -- -- 178.0402000 Total Liabilities - - 266.651
FUND BALANCES:Nonspendable Fund Balances:
3410 Inventories -- -- 112,944Restricted Fund Balances:
3450 Federal/State Funds Grant Restrictions -- -- 536,9073490 Other Restrictions of Fund Balance -- 61,293 61,293
Unassigned, Reported in Nonmajor:3610 Special Revenue Funds 279,101 -- 279,1013000 Total Fund Balances 279,101 61,293 990,245
4000 Total Liabilities and Fund ::: 279;101 61 ,293 1 256896'
36
DataControlCodes
REVENUES:5700 Local and Intermediate Sources5800 State Program Revenues5900 Federal Program Revenues5020 Total Revenues
EXPENDITURES:Current:
0011 Instruction0012 Instructional Resources and Media Services0013 Curriculum and Staff Development0021 Instructional Leadership0023 School Leadership0031 Guidance, Counseling, & Evaluation Services0032 Social Work Services0034 Student Transportation0035 Food Service0036 Cocurricular/ExtracurricularActivities0041 General Administration0051 Plant Maintenance and Operations0061 Community Services6030 Total Expenditures
1100 Excess (Deficiency) of Revenues Over (Under)1100 Expenditures1200 Net Change in Fund Balances
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTCOMBINING STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCESNONMAJOR SPECIAL REVENUE FUNDSFOR THE YEAR ENDED AUGUST 31, 2012
211 212 224 225ESEA Title I ESEAImproving Title I, Part C IDEA-B IDEA-B
Basic Programs Migrant Children Formula Preschool Grant
915,121 26,404 865,168 17,912915,121 26,404 865,168 17,912
499,958 26,404 800,031 17,9121 ,537 -- -- --
124,200 -- 5,046 --59,657 -- 22,313 --
181,618 30,429 --2,532 -- -- --
-- - 7,349 --45,619 -- -- --
0100 Fund Balances - Beginning -- -- -- --3000 Fund Balances .- Ending ....: :: $ $ - $ _- $_- :.
37
255 263ESEA Title it English LanguageTraining & Acquisition andRecruiting Enhancement
$
189451 45,17745,177
126.929 40,137675 --
55,124 3,6005,448 1,140
1501,275 150
EXHIBIT H-4
Page 1 of 3
240 242 244National School Summer Career and TechBreakfast/Lunch Feeding Basic
Program Program Grant
$ 645,868 $ 1,292 $ --52,904 -- --
1 366.006 16,816 50.0382,064,778 18,108 50,038
46,114
1,366
2,558
1,807,120 18.108 --
2,290 -- --
1809,410 18,108 50.038 189,451 45,177
GJJ,JV U '-
255,368 -- -- -- --
394,483 -- -- -- --$....: :: : 649851' ::::::::$::..: ..:..__....:. . :: :... :. $ .::.: ---- $ :.::::=_
38
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTCOMBINING STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCESNONMAJOR SPECIAL REVENUE FUNDSFOR THE YEAR ENDED AUGUST 31, 2012
287 289 385Data Education Summer Supplemental
Control Jobs School VisuallyCodes Fund LEE' I mpaired
REVENUES:
5700 Local and Intermediate Sources $ -- $ -- $ --5800 State Program Revenues -- -- 2,1295900 Federal Program Revenues 430.133 2,220 --5020 Total Revenues 430,133 2,220 2,129
EXPENDITURES:
Current:0011 Instruction 430,133 2,220 2,1290012 Instructional Resources and Media Services -- -- --0013 Curriculum and Staff Development -- -- --0021 Instructional Leadership -- -- --0023 School Leadership -- -- --0031 Guidance, Counseling, & Evaluation Services -- -- --0032 Social Work Services -- -- --0034 Student Transportation -- -- --0035 Food Service -- -- --0036 Cocurricular/ExtracurricutarActivities -- -- --0041 General Administration -- -- --0051 Plant Maintenance and Operations -- -- --0061 Community Services -- -- --6030 Total Expenditures 430,133 2,220 2,129
1100 Excess (Deficiency) of Revenues Over (Under)1100 Expenditures -- -- --1200 Net Change in Fund Balances -- -- --
0100 Fund Balances - Beginning -- -- --3000 Fund Balances =: Ending
...$ ;::: $:: $
39
1,924
266,065 270,511
8,706
60.52913,121
559
5,979
3,718
102,3801,5041.1991,031
190,020
EXHIBIT H -4
Page 2 of 3
392 410 429 461Non-Educational State State Funded CampusCommunity-Based Textbook Special Revenue Activity
Support Funds
$ 322,4241,924 266,065 279,217
279,217 322,424
_ 132.404132,404
146,697$_______ $ : :. : 279.101:
40
EXHIBIT H-4
Page 3 of 3
TotalNon major
SpecialRevenue
Funds (SeeExhibit H-2)
$ 1,091,987602,239
3,924,446
54,346 2,645,27315.333
3,619 202.22088,558
6.129216.030
2,5321,290 5,008
1.825,228102,380
1.50410,83848,574
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTCOMBINING STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCESNONMAJOR SPECIAL REVENUE FUNDSFOR THE YEAR ENDED AUGUST 31, 2012
DataControlCodes
REVENUES:5700 Local and Intermediate Sources5800 State Program Revenues5900 Federal Program Revenues5020 Total Revenues
EXPENDITURES:Current:
0011 Instruction 1,8550012 Instructional Resources and Media Services0013 Curriculum and Staff Development0021 Instructional Leadership0023 School Leadership0031 Guidance, Counseling, & Evaluation Services0032 Social Work Services0034 Student Transportation0035 Food Service0036 Cocurricular/Extracurricular Activities0041 General Administration0051 Plant Maintenance and Operations0061 Community Services6030 Total Expenditures
1100 Excess (Deficiency) of Revenues Over (Under)1100 Expenditures1200 Net Change in Fund Balances
61,293 449,06561,293 449,065
480 499Texas Healthy TSR
Habitats ProjectGrant Mentor
$ 1.855 $ 120,548
0100 Fund Balances - Beginning ---- 541.180---3000 Fund Balances = Ending :` : $_____________ $: 61 293. $ :::..:.990,245
41
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICT EXHIBIT H-5CAPITAL PROJECTS FUNDBUDGETARY COMPARISON SCHEDULEFOR THE YEAR ENDED AUGUST 31, 2012
1 2 3Data Variance
Control PositiveCodes Budget Actual (Negative)
REVENUES;:,,.. r
'`'' " '^•if i
5700 Local and Intermediate Source $____________
:i f. ^; 1 r•^J i•!f ilf/
. $ 4605020 Total Revenues A 460
EXPENDITURES:Capital Outlay: `
0081 Cap,taIOuUay 166,579 %r tf 21i93 145,386Total Capital Outlay 166,579 '-' ''"'`' `'` 145,386
6030 Total Ex endituresp 166,579 ;F; ;; 11 9 145,386
1100 Excess (Deficiency) of Revenues Over (Under)1100 Expenditures (166,579) ,% :r :;.g ( O73) 145,8461200 Net Change in Fund Balance (166,579) ti :,;,JFJ:r(f f ) 145,846
fir.;'•':< : % 3?,'•i} .%^%is:l,•`f;:.
0100 Fund Balance - Beginning -- : ,,; r;,%',;31 6 19 ;: 166,579
42
EXHIBIT H-6
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTCOMBINING STATEMENT OF NET ASSETSINTERNAL SERVICE FUNDSAUGUST 31, 2012
Total770 799 Internal
Data Claims ServiceControl Clearing Stock Funds (SeeCodes Account Account Exhibit D-1)
ASSETS:Current Assets:
1110 Cash and Cash Equivalents $ 701,890 $ 95,400 $ 797,2901120 Investments 802,809 -- 802,8091310 Inventories, at Cost -- 25,337 25,337
Total Current Assets 1,504,699 120,737 1,625,4361000 Total Assets $ 1,504,699 $ 120,737 $ 1,625,436
LIABILITIES:2000 Total Liabitities -- -- --
NET ASSETS:3900{, Unrestricted Net Assets $ 1.504,699 $ 120,737 $ 1,625,436
ti 1 '^Y-F }' F r: L; . N t " e &;''= ^^,yA, y1 1 X1; 6 ' ;,Ay- 1$; x:. .Y r 1 ' ^ ^> > ^r^-5-`F^^r^rf :^Y'
r^'^ 'r^'^'J'^ ^< [^ •{(.^^ YF;^.^r. 7+ h.J.{..t .^^` 3.)•
frfrr.f^M.A^^iYSY:rY'r; rtr`^t•^;r^Y}^^1 J^rf^^J sr^'^^J• <f ^^r^ii r^'i^r^'^^i ^^rl •3
:i l Jar
43
EXHIBIT H-7
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTCOMBINING STATEMENT OF REVENUES, EXPENSES,AND CHANGES IN FUND NET ASSETSINTERNAL SERVICE FUNDSFOR THE YEAR ENDED AUGUST 31, 2012
Total770 799 Internal
Data Claims ServiceControl Clearing Stock Funds (SeeCodes Account Account Exhibit D-2)
OPERATING REVENUES:5700 Local and Intermediate Sources $ 1,646 $ 58,295 $ 59,9415020 Total Revenues 1,646 58,295 59,941
OPERATING EXPENSES:6300 Supplies and Materials -- 83,901 83,9016030 Total Expenses -- 83,901 83,901
Operating Income (Loss) 1,646 (25,606) (23,960)
Income (Loss) before Contributions and Transfe 1.646 (25,606) (23,960)1300 Change in Net Assets 1.646 (25,606) (23,960)1300 Change in Net Assets 1.646 (25,606) (23,960)
0100 Total Net Assets - Beginning 1,503.053 146,343 1,649,396Total Net Assets - Beginning, as Restated 1,503,053 146,34 1,649,396
•.. ^ fl^i•1^f''tf!^'!''J•''if!•s'!f!i!!li i
iF f! _
Q . If ^` , ,
'^S S .^-.. ;^:f^:'' ^ " '6. ^ '_^3't:, f%:tf;:_: Q737.f• •^; ^ - ^3'r; .fi ^ ^ ^^:..^^ ^ !f^^^'^.
`^= •^^= ^•^ .' _.,... . ., ^.,. .. .^, . .,.^ll,. , ^, ^-..,'^^6
44
Total799 Internal
ServiceStock Funds (See
Account Exhibit D-3)
$ -- $
1,646 58,213 59,859
(918) (57,216) (58,134)
770Claims
Clearing
EXHIBIT H-8
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTCOMBINING STATEMENT OF CASH FLOWSALL INTERNAL SERVICE FUNDSFOR THE YEAR ENDED AUGUST 31, 2012
Cash Flows from Operating Activities:Cash Received from CustomersCash Received from GrantsCash Receipts (Payments) for Quasi-external
Operating Transactions with Other FundsCash Payments to EmployeesCash Payments to Suppliers for Goods and ServicesCash Payments for Grants to Other OrganizationsOther Operating Cash Receipts (Payments)
Net Cash Provided (Used) by Operating Activities
Cash Flows from Non -capital Financing Activities:Transfers From (To) Other Funds
Net Cash Provided (Used) by Non-capitalFinancing Activities
Cash Flows from Capital and Related Financing Activities:Contributed Capital
Net Cash Provided (Used) for Capital andRelated Financing Activities
Cash Flows from Investing Activities:Purchase of Investment SecuritiesProceeds from Sale and Maturities of Securities
Net Cash Provided (Used) for Investing Activities
Net Increase (Decrease) in Cash and Cash EquivalentsCash and Cash Equivalents at Beginning of YearCash and Cash Equivalents at End of Year
Reconciliation of Operating Income to Net CashProvided by Operating Activities:
Operating Income (Loss)Adjustments to Reconcile Operating Income to Net
Cash Provided by Operating ActivitiesDepreciationProvision for Uncoltectibte Accounts
Change in Assets and Liabilities:Decrease (Increase) in ReceivablesDecrease (Increase) in InventoriesDecrease (Increase) in Prepaid ExpensesIncrease (Decrease) in Accounts PayableIncrease (Decrease) in Payroll DeductionsIncrease (Decrease) in Accrued Wages PayableIncrease (Decrease) in Interfund PayablesIncrease (Decrease) in Due to Other GovernmentsIncrease (Decrease) in Accrued ExpensesIncrease (Decrease) in Unearned Revenue
Total AdjustmentsNet Cash Provided (Used) by Operating Activities
(870) -- (870)
(870) -- (870)
(142) 997 855
$ 1,646 $ (25,606) $ (23,960)
26,685 26,685
(918) -- (918)
(82) (82)
$ 728 $ 997 $ 1,725
45
Other Supplementary Information
This section includes financial information and disclosures not required by the Governmental Accounting StandardsBoard and not considered a part of the basic financial statements. It may, however, include information which isrequired by other entities.
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTSCHEDULE OF DELINQUENT TAXES RECEIVABLEFOR THE YEAR ENDED AUGUST 31, 2012
1 2 3Assessed/Appraised
Year Ended Tax Rates Value For SchoolAuaust 31 Maintenance Debt Service Tax Purposes
2003 and Prior Years $ Various $ Various
2004 1.3278 .039
2005 1.3855 .0321
2006 1.4176 --
2007 1.2969 --
2008 1.0268 .07
2009 1.0401 .0699
2010 1.0401 .08
2011 1.0401 .093
2012 (School Year Under Audit) 1.0401 .0861
1000 Totals
9000 - Portion of Row 1000 for Taxes Paid into Tax Increment Zone Under Chapter 311, Tax Code
$ Various
3,485,254,953
3,474,421,952
3,535,221,524
3,706,542,569
3,932,882,900
3,952,055,313
3,539, 891, 738
3,104,705,315
3,099,532,299
46
EXHIBIT J-1
10BeginningBalance9/1/11
50EndingBalance8/31/12
20CurrentYear's
Total Levy
$ $
35, 567,501
31 32 40Entire
Maintenance Debt Service Year'sCollections Collections Adjustments
11,177 $ 328 $ (443)
3,653 107 (3)
5,624 130 736
8,604 -- (181)
11,194 -- (34)
20,747 1,414 143
44,992 3.024 (874)
123,599 9,507 724
302,197 27,021 (12.609)
32,378,505 2,680,309 (58.565)
$ $ $ $
47
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICT EXHIBIT J-2SCHEDULE OF EXPENDITURES FOR COMPUTATION OF INDIRECT COST FOR 2013-2014GENERAL AND SPECIAL REVENUE FUNDSFOR THE YEAR ENDED AUGUST 31, 2012
FUNCTION 41 AND RELATED FUNCTION 53- GENERAL ADMINISTRATION AND FUNCTION 99 - APPRAISAL DISTRICT COST
1 2 3 4 5 6 7(702) (703) (701) (750) (720) (Other)
Account Account School Tax Supt's Indirect DirectNumber Name Board Collection Office Cost Cost Misc. Total
611X-6146 Payroll Costs $ - $ -- $ 243,075 $ 456,733 $ -- $ 118,052 $ 817.860Fringe Benefits (Unused Leave c::coc::o: o: fro '= <k ;`¢ =cc;.° fYr:;ac::a ::o:: ;i: # q _?:"o "v.:v . :0'0-3
for Separating Employees in f F
A h ]W .iL`'}WC k]G - U $,^ h , w M iLwJi.n 4* * GG L L ' 'Y
¢ J
6149 f=unction41andRelated53)rro w^ rowo-•r.. o-:a:.,,o-:ro- -}..- ^°>?;f:-^^^"^ --..:p _h:ro
r.V x:1F{
^ ^ °'°=°$-^^°•^^ s;. _^-a h x o::c.:_::.:..:-:'^ .r --
>^-^.For Separating Employees in •:^.:x:-:c.'^'r.v^,:fir ^:;:ary ry: ;` ,^;;....:; .?oo^o ;;u C::`a,. ;.:. ::
,x.:3:,...•r..?rn.?u:q:-v:;.all Functions pexce t Function fA5}
^'^ilEL -0CJOC \^F ^ IX IX h ^ ^L J}^P' J' '$'' ^'C O G
6149 41 and Related 53) ,;,,^ ,^,^ {}:' v.y
rM,
w.co28,054^- ny M :.
28,0546211 Legal Services -- I E= '>: s «_xt=
"6212 Audit Servicesrvices _ ¢°¢ :< au.. w : :, 20630 wx u: = aoc ar «°<=: > c, ::,^;..y ti ¢ y`^
r r20,630
62133 TaxA PP raisal and Collection ...<., n': ^ 893 211 `' °'^" ^ ,. ^^ ^ :^^:fi: : °:^°^. y n
rd
, , ry s^ ^^^ 893,211621X Other Prof. Services -- -- 9,037 --
---- 9,037
6220 Tuition and Transfer Payments >°° ez - .::nrr^ ^^o 6230 Education Service Centers -- 750 9,691 -- -- 10,4416240 Contr, Maint. and Repair i° °° =
r. rary.:-Jcc^.:-
ss;:::no-:co-:„_^;;.t; ' :2:'vd:'"•;o:°-.:p°::°°' o: ^n.•:ao-::u:c:eu::: ciio=°`"'° ;?: 2,828 : fi Yw.v 2,828
6250 Utilitie ^a~s ue... . ^;: w,.w'' ,; ^__^_^_^»^ {x:^^.^;:.^,r «:^::^;:..6260 Rental ,6113,243 1,610 14,8536290 Miscellaneous Contr. -- -- 825 7,804 8,6296310 Operational Supplies, Materials -- -- -- -- -- --6320 Textbooks and Reading -- 392 392
336 0 Testing Materials -63XX Other Supplies, Materials 62 -- 2,540 15,991 -- 6 18,5996410 Travel, Subsistence, Stipends I 2,043 - 3,110 5,205 -- 2,751 13,1096420 Ins. and Bonding Costs -- -- 3,635 -- -- -- 3.6356430 Election Costs 1 -- es`: • ;;,ys :- ," ___6490 Miscellaneous Operating 202 -- 19,151 13,291 -- 424 33,0686500 Debt Service c°6600 rm:• aa:-:o::<x:-xi:Capital Outlay e^..,,fi ;- ; :^ ,;:sr:.-,;vv .
xw ,, :>:c :tr
u. ..d -
-? 1d-:i:`c;•:rto-:9.^ ^iSSix::ao:°° ^ a^'•
ao-:ao-:
Total $ 2,307 $ 893,211 $ 310,569 $ 542,588 $ 2,828 $ 122,843 $ 1,874,346
Total Expenditures for General and Special Revenue Funds (9) $ 41.902,561
LESS: Deductions of Unallowable Costs
ELSSAL YEARTotal Capital Outlay (6600) (10) $ 494,598Total Debt & Lease (6500) (11) $ --Plant Maintenance (Function 51, 6100-6400) (12) $ 4,763,349Food (Function 35, 6341 and 6499) (13) $ 698,024Stipends (6413) (14) $ --Column 4 (above) - Total Indirect Cost $ 542,588
Subtotal 6.498.559
Net Allowed Direct Cost $ 35,404,002
CUMULATIVETotal Cost of Buildings Before Depreciation (1520) (15) $ 69,302,388Historical Cost of Buildings over 50 years old (16) 13,737,119Amount of Federal Money in Building Cost (Net of #16) (17) --Total Cost of Furniture & Equipment Before Depreciation (1530 & 1540) (18) 5,285,579Historical Cost of Furniture & Equipment over 16 years old (19) 1,227,172Amount of Federal Money in Furniture & Equipment (Net of #19) (20) $ --
(8) Note A - $183,511 in Function 53 expenditures and $643,458 in Function 99 expenditures are included in this report on administrative costs
48
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICT EXHIBIT J-3NATIONAL SCHOOL BREAKFAST AND LUNCH PROGRAMBUDGETARY COMPARISON SCHEDULEFOR THE YEAR ENDED AUGUST 31, 2012
1 2 3Data Variance
Control PositiveCodes Budget Actual (Negative)
REVENUES:5700 Local and Intermediate Sources $ 674,878 %;r';,;1; 4 $ (29,010)5800 State Program Revenues 57,077 f:% F ,,520 (4,173)5900 Federal Program Revenues 1,336,214 = f;;;°,;, t; 6 006 29,7925020 Total Revenues 2,068,169 #.;47•: _ (3,391)
EXPENDITURES'Current : ,rf;r.rff;,,rf;_rftr. fi rlf el ^
rfl
ffif,^if•rlf,^J'
,r,,, _.
Support Services - Student (Pupil)::-!r;lrs-lf;-lF;l
fl; afr>r000-
:r,^'^jf ^fj frs^jf^ry'•jf^ri•'^'fj ^i+0035 Food Services 2,065,56 t: 258,449
Total Support Services - Student (Pupil) 2,065,569 ris 1 807 '20; 258,449•GBrI _ _
Support Services - Nonsludent Based: ^G, Y^,rY^t ^ rl ^^rr r^rJ r;ryr, r;q.
0051 Plant Maintenance and Operations 2,600 f l; 310Total Support Services - Nonsludent Based 2,600 `r' r% % `' f 'rr'%`. y ; 310
6030 Total Expenditures 2,068,169 .' 1 09 41 258,759
1100 Excess (Deficiency) of Revenues Over (Under)1100 Expenditures 2i 68 255,3681200 Nel Change in Fund Balance - ;;: tx t2536B 255,368
0100 Fund Balance - Beginning 394,483 .3f,;_fr'r',%r.%;; r4$
49
2 3VariancePositive
Actual (Negative)
4Z14 $ 122,339
1
Budget
$ 2,719,7952,719,795
2,140,000579,295
500
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICT EXHIBIT J-4DEBT SERVICE FUNDBUDGETARY COMPARISON SCHEDULEFOR THE YEAR ENDED AUGUST 31, 2012
DataControlCodes
REVENUES:5700 Local and Intermediate Sources5020 Total Revenues
EXPENDITURES:Debt Service:
0071 Principal on Long-Term Debt0072 Interest on Long-Term Debt0073 Bond Issuance Costs and Fees
Total Debt Service
6030 Total Expenditures
1100 Excess (Deficiency) of Revenues Over (Under)1100 Expenditures1200 Net Change in Fund Balance
0100 Fund Balance - Beginninu
122,339122,339
50
Tommy Strealy CPA
Gowland, Streaiy, Morales & Company David Morales CPAJerry D. $pence CPA
A Professional Limited Liability Company Professional Associates 4 Senior Advisor:
Certified Public Accountants Peggy Sidler CPABetty Morales CPA
Thomas Withers CPAErika M. PostGreg Morales
Dudley 6owland CPA
Independent Auditor's Report
Board of TrusteesCalhoun County Independent School District525 N. CommercePort Lavaca, Texas 77979
Members of the Board of Trustees:
We have audited the financial statements of the governmental activities, each major fund, and the aggregateremaining fund information of Calhoun County Independent School District as of and for the year endedAugust 31, 2012, which collectively comprise the Calhoun County Independent School District's basicfinancial statements and have issued our report thereon dated October 9, 2012. We conducted our audit inaccordance with auditing standards generally accepted in the United States of America and the standardsapplicable to financial audits contained in Government Auditing Standards, issued by the ComptrollerGeneral of the United States.
Internal Control Over Financial ReportingManagement of Calhoun County Independent School District is responsible for establishing and maintainingeffective internal control over financial reporting. In planning and performing our audit, we consideredCalhoun County Independent School District's internal control over financial reporting as a basis for designingour auditing procedures for the purpose of expressing our opinions on the financial statements, but not forthe purpose of expressing an opinion on the effectiveness of the Calhoun County Independent SchoolDistrict's internal control over financial reporting. Accordingly, we do not express an opinion on theeffectiveness of the Calhoun County independent School District's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow managementor employees, in the normal course of performing their assigned functions, to prevent, or detect and correctmisstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, ininternal control such that there is a reasonable possibility that a material misstatement of the entity's financialstatements will not be prevented, or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose described in the firstparagraph of this section and was not designed to identify all deficiencies in internal control over financialreporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any
5934 S. Staples, Suite 201 Corpus Christi, Texas 78413Phone: (361) 993-1000 Fax: (361) 991-2880 www.gowland-cpa.com
Members of the American Institute and Texas Society of Certified Public Accountants
51
deficiencies in internal control over financial reporting that we consider to be material weaknesses, asdefined above. However, we identified certain deficiencies in internal control over financial reporting,described in the accompanying schedule of findings and questioned costs as item(s) 2012-3, that weconsider to be significant deficiencies in internal control over financial reporting. A significant deficiency isa deficiency, or a combination of deficiencies, in internal control that is less severe than a materialweakness, yet important enough to merit attention by those charged with governance.
Compliance and Other MattersAs part of obtaining reasonable assurance about whether Calhoun County Independent School District'sfinancial statements are free of material misstatement, we performed tests of its compliance with certainprovisions of 'laws, regulations, contracts, and grant agreements, noncompliance with which could have adirect and material effect on the determination of financial statement amounts. However, providing an opinionon compliance with those provisions was not an objective of our audit, and accordingly, we do not expresssuch an opinion. The results of our tests disclosed no instances of noncompliance or other matters that arerequired to be repo rted under Government Auditing Standards.
This report is intended solely for the information and use of management, others within the entity, the Boardof Trustees, and federal awarding agencies and pass-through entities and is not intended to be and shouldnot be used by anyone other than these specified parties.
Respectfully ubmitter `
Lowland, Slrealy, Mor es & Company, PLLC
October 9, 2012
52
Gowland, Strealy, Morales & Company
A Professional Limited Liability Company
Certified Public Accountants
Tommy 5treely CPA
David Morales CPAJerry D. Spence CPA
Professlona! Associates & Senior Advisor:Peggy Sidler CPA
Betty Morales CPAThomas Withers CPA
Erika M. PostGreg Morales
Dudley Lowland CPA
,I ndependent Auditor's Report
Board of TrusteesCalhoun County Independent School District525 N. CommercePort Lavaca, Texas 77979
Members of the Board of Trustees:
Compliance anceWe have audited Calhoun County Independent School District's compliance with the types of compliancerequirements described in the OMB Circular A-133 Compliance Supplement that could have a direct andmaterial effect on each of Calhoun County Independent School District's major federal programs for the yearended August 31, 2012. Calhoun County Independent School District's major federal programs are identifiedin 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 majorfederal programs is the responsibility of Calhoun County Independent School District's management. Ourresponsibility is to express an opinion on Calhoun County Independent School District's compliance based onour audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in theUnited States of America; the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133require that we plan and perform the audit to obtain reasonable assurance about whether noncompliancewith the types of compliance requirements referred to above that could have a direct and material effect on amajor federal program occurred. An audit includes examining, on a test basis, evidence about CalhounCounty Independent School District's compliance with those requirements and performing such otherprocedures as we considered necessary in the circumstances. We believe that our audit provides areasonable basis for our opinion. Our audit does not provide a legal determination of Calhoun CountyIndependent School District's compliance with those requirements.
In our opinion, Calhoun County Independent School District complied, in all material respects, with thecompliance requirements referred to above that could have a direct and material effect on each of its majorfederal programs for the year ended August 31, 2012. However, the results of our auditing proceduresdisclosed instances of noncompliance with those requirements, which are required to be reported inaccordance with OMB Circular A-133 and which are described in the accompanying schedule of findingsand questioned costs as items 2012-1, 2012-2 and 2012-3.
5934 5. Staples, Suite 201 Corpus Christi, Texas 78413Phone: (361) 993-1000 Fax: (361) 991-2880 www, owland-c .com
Members of the American Institute and Texas Society of Certified Public Accountants
53
Unq atu ified
Yes X No
X Yes None Reported
Yes X No
Yes X No
X Yes None Reported
Qualified
X Yes No
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTSCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED AUGUST 31, 2012
A. Summary of Auditors Results
1. Financial Statements
Type of auditor's report issued:
Internal control over financial reporting:
One or more material weaknesses identified?
One or more significant deficiencies identified thatare not considered to be material weaknesses?
Noncompliance material to financialstatements noted?
2. Federal Awards
Internal control over major programs:
One or more material weaknesses identified?
One or more significant deficiencies identified thatare not considered to be material weaknesses?
Type of auditor's report issued on compliance formajor programs:
Any audit findings disclosed that are requiredto be reported in accordance with section 510(a)of OMB Circular A-133?
Identification of major programs:
CFDA Number(s) Name of Federal Program or Cluster84.040 ESEA Title I Part A
Food Service Cluster10.553 School Breakfast Program10.555 National School Lunch Program10.555 National School Lunch Program (Non-cash)
84.41 OA Education Jobs fund
Dollar threshold used to distinguish betweentype A and type B programs: 300 000
Auditee qualified as low-risk auditee? Yes X No
B. Financial Statement Findings
See 2012-3 below
55
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTSCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED AUGUST 31, 2012
C. Federal Award Findin gs and Questioned Costs
2012-1 National School Breakfast/Lunch Program:
Condition: One application was found to have been approved as Free and should have been reduced.
Criteria: Free and reduced Lunch Applications should be classified based upon informationsupplied by the applicant.
Cause: Procedures were not followed.
Effect: Misclassification of applications could have an effect upon the funding received for this program.
Recommendation: Emphasize to employees the importance of following established procedureswhen classifying free and reduced applications.
2012-2 National School Breakfast/Lunch Program:
Condition: The cash balance exceeds three months operating costs.
Criteria: Cash in the Food Service Fund should not exceed three months operating costs.
2012-3 National School Breakfast/Lunch Program
Condition: Food Service cash count sheets at one campus did not equal the amount deposited in all threedays examined.
Criteria: Cashiers count sheets should tie to the deposit.
Effect: Lack of control over cash receipts could cause errors or ommissions in the recording of revenue.
Recommendation: The District should make sure internal control procedures are in place toensure cash count sheets agree with the related deposits.
56
Internal Control Over Compliance anceManagement of Calhoun County Independent School District is responsible for establishing and maintainingeffective internal control over compliance with the requirements of laws, regulations, contracts, and grantsapplicable to federal programs. In planning and performing our audit, we considered Calhoun CountyIndependent School District's internal control over compliance with the requirements that could have a directand material effect on a major federal program to determine the auditing procedures for the purpose ofexpressing our opinion on compliance and to test and report on internal control over compliance inaccordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectivenessof internal control over compliance. Accordingly, we do not express an opinion on the effectiveness ofCalhoun County Independent School District's internal control over compliance.
Our consideration of internal control over compliance was for the limited purpose described in the precedingparagraph, and was not designed to identify all deficiencies in internal control over compliance that might besignificant deficiencies or material weaknesses and therefore, there can be no assurance that alldeficiencies, significant deficiencies, or material weaknesses have been identified. However, as discussedbelow, we identified certain deficiencies in internal control over compliance that we consider to be significantdeficiencies.
A deficiency in infernal control over compliance exists when the design or operation of a control overcompliance does not allow management or employees, in the normal course of performing their assignedfunctions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of afederal program on a timely basis. A material weakness in internal control over compliance is adeficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonablepossibility that material noncompliance with a type of compliance requirement of a federal program will not beprevented, or detected and corrected, on a timely basis.
A significant deficiency in interal control over compliance is a deficiency, or a combination of deficiencies, ininternal control over compliance with a type of compliance requirement of a federal program that is lesssevere than a material weakness in internal control over compliance, yet important enough to merit attentionby those charged with governance. We consider the deficiencies in internal control over compliancedescribed in the accompanying schedule of findings and questioned costs as item 2012-3 to be significantdeficiencies.
This report is intended solely for the information and use of management, others within the entity, the Boardof Trustees, federal awarding agencies and pass-through entities and is not intended to be and should notbe used by anyone other than these specified parties.
Respectfully ubmitted,
G wland, Strealy, Mor s & Company, PLLC
October 9, 2012
54
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTSUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED AUGUST 31, 2012
Management's ExplanationFindinglRecommendation Current Status If Not Implemented
NONE-N/A
57
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTCORRECTIVE ACTION PLAN
FOR THE YEAR ENDED AUGUST 31, 2012
2012-1 The district will hire a temporary employee to review the Free and Reduced Applications aftercompletion for accuracy and to insure all applications are calculated correctly. This temporary employee willalso compare the master list to make sure that it matches approved applications on file and on the directcertification list. This procedure has been implemented for the 2012-2013 year.
2012-2 The fund balance that exceeds three months operating has been budgeted into the 2012-2013school year. This was budgeted in the area of salaries as the Food Service personnel have not had a raisein two years, or a change in the pay scale in the last six years. This small pay scale has resulted in ahardship on the Food Service Program maintaining personnel and has therefore resulted in a large turnover inemployees. Hopefully this improved salary amount will maintain personnel for consistency.
2012-3 Prior to making a deposit, each cafeteria manager has appointed a person to review the calculationsand initial the daily deposits. Food Service central office will print out daily Cash Reconciliation reports and ifany discrepancies with the actual deposit ticket will contact the proper campus to reconcile the differenceprior to submitting to the Business Office. This procedure in in place for the 2012-2013 school year.
Charlene willoughby, CCISD Food Service Director, Will coordinate these efforts.
58
(2) (2A)
Federal Pass-ThroughCFDA Entity Identifying
Number Number
15.608 029-901 $ 46,086
(3)
Federal
45.177
181,3268.125
189,451
2,220
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICT EXHIBIT K-1SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSFOR THE YEAR ENDED AUGUST 31, 2012
(1)
Federal Grantor/Pass-Through Grantor/Program Title
U. S. DEPARTMENT OF THE INTERIORPassed Through State Department of Education:
Guadalupe Delta Wildlife ManagementTotal U. S. Department of the Interior
U. S. DEPARTMENT OF EDUCATIONPassed Through State Department of Education:
ESEA Title I Part A - Improving Basic Programs *ESEA Title I Part A - Improving Basic Programs *Total CFDA Number 84.010a
ESEA Title I Part C - Education of Migratory Children
IDEA-B FormulaIDEA-B Formula *Total CFDA Number 84.027
Career and Technical - Basic Grant
IDEA-B Preschool*IDEA-B Preschool*Total CFDA Number 84.173
84.01Oa 12610101029901 899,22984.01Oa 13610101029901 26,737
925,966
84.011 1261500271203 26,404
84.027 12660001029901660( 854,59684.027 13660001029901660( 21,010
875,606
84.048 12420006029901 50,038
84.173 12661001029901661( 17,22384.173 13661001029901661( 899
Title Ill Part A English Language Acquisition and Language Enhance, 84.365
ESEA Title 11 Part A - Teacher & Principal Training & Recruiting 84.367aESEA Title 11 Part A - Teacher & Principal Training & Recruiting 84.367aTotal CFDA Number 84.367a
Summer School LEP 84.369A
12671001029901
1269450102990113694501029901
11024002029901
Education Jobs Fund 84.410 11550101029901 430,133Total Passed Through State Department of Education 2,563,116Total U. S. Department of Education 2,563,116
U. S. DEPARTMENT OF AGRICULTUREPassed Through State Department of Education:
School Breakfast Program * 10.553 71401201 264,347
National School Lunch Program * 10.555 71301101 991,308National School Lunch Program (Non-cash)) * 10.555 029-901 110,351Total CFDA Number 10.555 1,101,659
Summer Food Service Program * 10.559 029-901 16,816Total Passed Through State Department of Education 1,382,822Total U. S. Department of Agriculture 1,382,822TOTAL EXPENDITURE$ OF FEDERAL AWARDS $ 3,9921024
Indicates clustered program under OMB Circular A-133 Compliance Supplement
TOTAL EXPENDITURES OF FEDERAL AWARDS $ 3,992,024School Health & Related Services (SHARS) 2,030
TOTAL EXHIBIT C-2 $ 3,994,054
The accompanying notes are an integral part of this schedule
59
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTNOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED AUGUST 31, 2012
Basis of Presentation
The accompanying schedule of expenditures of federal awards includes the federal grant activity of CalhounCounty Independent School District and is presented on the modified accrual basis of accounting. Theinformation in this schedule is presented in accordance with the requirements of OMB Circular A-133, Auditsof States, Local Governments, and Non- Profit Organizations. Therefore, some amounts presented inthis schedule may differ from amounts presented in, or used in the preparation of, the general purposefinancial statements.
60
EXHIBIT K-2
CALHOUN COUNTY INDEPENDENT SCHOOL DISTRICTSCHEDULE OF REQUIRED RESPONSES TO SELECTED SCHOOL FIRST INDICATORSAS OF AUGUST 31, 2012
DataControlCodes Responses
SF2 Were there any disclosures in the Annual Financial Report and/orother sources of information concerning default on bondedindebtedness obligations? No
SF4 Did the district receive a clean audit? - Was there an unqualifiedopinion in the Annual Financial Report? Yes
SF5 Did the Annual Financial Report disclose any instances of materialweaknesses in internal controls? No
SF9 Was there any disclosure in the Annual Financial Report of materialnoncompliance? No
SF10 What was the total accumulated accretion on capital appreciationbonds included In the government-wide financial statements atfiscal year-end? $ --
61