Grand Prairie Independent School District Comprehensive Annual Financial Report For the Fiscal Year Ended August 31, 2014
2602 S. Belt Line Road Grand Prairie, Texas 75052 www.gpisd.org
Grand Prairie Independent School District Grand Prairie, Texas
Comprehensive Annual Financial Report For the Fiscal Year Ended August 31, 2014
Prepared By Grand Prairie Independent School District Business Operations Department
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED AUGUST 31, 2014 TABLE OF CONTENTS
Page
Exhibit/ Table
INTRODUCTORY SECTION Letter of Transmittal ......................................................................................................................... 1 Certificate of Achievement for Excellence in Financial Reporting ...................................................... 8 Certificate of Excellence in Financial Reporting ................................................................................ 9 Organizational Chart ...................................................................................................................... 10 Principal Officials and Advisors ...................................................................................................... 11 Certificate of Board ........................................................................................................................ 14 FINANCIAL SECTION Independent Auditors’ Report ........................................................................................................ 15 Management’s Discussion and Analysis......................................................................................... 17 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements: Statement of Net Position .......................................................................................................... 24
A-1
Statement of Activities ............................................................................................................... 25
A-2
Fund Financial Statements: Balance Sheet - Governmental Funds ....................................................................................... 26
B-1
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ........................................................................................................ 29
B-1R
Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds..................................................................................... 30
B-2
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ...................................... 32
B-2R
Statements of Revenues, Expenditures, and Changes in Fund Balances - Budget (GAAP Basis) and Actual - General Fund .......................................... 33
C-1
Statement of Fiduciary Assets and Liabilities - Fiduciary Fund ................................................... 34
D-1
Notes to the Financial Statements.................................................................................................. 35 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS Combining Balance Sheet - Nonmajor Governmental Funds - Special Revenue Funds .................. 54
E-1
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds - Special Revenue Funds ................................. 62
E-2
Statement of Change in Assets and Liabilities - Fiduciary Fund ...................................................... 72
F-1
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GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED AUGUST 31, 2014 TABLE OF CONTENTS (CONTINUED)
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Exhibit/ Table
SUPPLEMENTARY INFORMATION Compliance Schedules: Schedule of Delinquent Taxes Receivable ..................................................................................... 74
G-1
Budgetary Comparison Schedule - National School Breakfast and Lunch Program ........................ 76
G-2
Budgetary Comparison Schedule - Debt Service Fund ................................................................... 77
G-3
STATISTICAL SECTION Financial Trends: Net Position by Component - Last Ten Fiscal Years ......................................................................... 80
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Changes in Net Position - Last Ten Fiscal Years .............................................................................. 82
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Fund Balances - Governmental Funds - Last Ten Fiscal Years......................................................... 86
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Changes in Fund Balances - Governmental Funds - Last Ten Fiscal Years ...................................... 88
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Revenue Capacity: Assessed Value and Actual Value of Taxable Property - Last Ten Fiscal Years ................................ 91
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Property Tax Rates - Direct and Overlapping Governments Last Ten Fiscal Years .................................................................................................................... 92
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Principal Property Taxpayers - Current Year and Nine Years Ago .................................................... 94
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Property Tax Levies and Collections - Last Ten Fiscal Years............................................................ 95
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Debt Capacity: Ratios of Outstanding Debt by Type - Last Ten Fiscal Years ............................................................ 96
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Ratios of Net General Obligation Bonded Debt Outstanding Last Ten Fiscal Years .................................................................................................................... 97
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Computation of Estimated Direct and Overlapping Debt ................................................................... 98
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Demographic and Economic Information: Demographic and Economic Statistics - Last Ten Fiscal Years......................................................... 99
12
Principal Employers - Current Year and Nine Years Ago ................................................................ 101
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Demographic Statistics - Last Ten Fiscal Years.............................................................................. 102
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GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED AUGUST 31, 2014 TABLE OF CONTENTS (CONCLUDED)
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Exhibit/ Table
Operating Information: Full-time Equivalent District Employees by Position - Last Ten Fiscal Years ................................... 104
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Operating Statistics - Last Ten Fiscal Years ................................................................................... 106
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Teacher Base Salaries - Last Ten Fiscal Years .............................................................................. 109
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School Building Information - Last Ten Fiscal Years ....................................................................... 110
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FEDERAL AWARDS SECTION Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ....................................................................123 Independent Auditors’ Report on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-133 ..........................................................125 Schedule of Findings and Questioned Costs .................................................................................. 127 Summary Schedule of Prior Audit Findings .................................................................................... 128 Corrective Action Plan ................................................................................................................... 129 Schedule of Expenditures of Federal Awards ................................................................................. 130 Notes to Schedule of Expenditures of Federal Awards ................................................................... 131
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December 11, 2014 Board of Trustees and Citizens of Grand Prairie Independent School District 2602 S. Belt Line Road Grand Prairie, TX. 75052 Dear Board of Trustees and Citizens: The Office of Business Operations is pleased to submit the Comprehensive Annual Financial Report for the Grand Prairie Independent School District for the fiscal year ended August 31, 2014. Responsibility for both the accuracy of the data presented and the completeness and fairness of the presentation including all disclosures rests with the District. In our opinion, we believe the data, as presented, is accurate in all material aspects and is presented in a manner designed to fairly set forth the financial position and results of operations of the District as measured by the financial activity of its various funds; and that all disclosures necessary to enable the reader to gain the maximum understanding of the District’s financial affairs are included in this report. The MD&A (Management Discussion and Analysis) is a narrative introduction, overview and analysis to accompany the basic financial statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The MD&A can be found immediately following the independent auditors’ report. The Statistical section includes selected financial and demographic information, generally presented on a multi-year basis. The Financial section is prepared in accordance with generally accepted accounting principles for governments, as prescribed by the Governmental Accounting Standards Board and other professional associations. Profile of the District The mission of the Grand Prairie Independent School District is to ensure student success through engaging learning experiences, collaborative leadership, and a focus on maximizing student achievement. To achieve this mission, the District has an overarching vision statement with four goals and five “plays” that drive every decision from academics to finance. Vision Statement We are a learning community vigorously pursuing student success. GPISD Goals Maximization of Student Achievement Exercise Responsible Fiscal Oversight Develop Leadership Capacity st Promote 21 Century Learners who are College and Career Ready The 5 Plays of Grand Prairie Schools Vertically and Horizontally Aligned Curriculum 5E Model of Instruction Data-driven Decisions Relational Capacity 1
Intentional Leadership Description of the Entity Grand Prairie is the 7th largest city in the Dallas-Fort Worth metroplex and the 16th largest city in the state of Texas. Grand Prairie is conveniently located between Dallas and Fort Worth in the far western part of Dallas County. The city offers relaxation, family fun, friendly neighbors and a smart place to live and do business. More than 183,000 people live in Grand Prairie. Residents tend to be 30-something, dual-income homeowners. In Grand Prairie, families who have lived here for generations welcome newcomers who choose to move to Grand Prairie for the same reasons the natives don't leave—location and hometown atmosphere. Schools The Grand Prairie Independent School District is the largest employer in Grand Prairie with approximately 3,700 staff members. More than 2,100 of those are instructional staff. GPISD is a 58-square mile district serving approximately 28,500 students within the Dallas County portion of Grand Prairie. The District anticipates annual student growth of approximately 600 students. Through open enrollment, the District also expects to gain another 400-500 additional students annually. Facilities in GPISD range in construction dates of 1939 to as recently as 2014 (for detail information on age of buildings, refer to Table 18 in the Statistical Section). A K-12 District, the Grand Prairie ISD now boasts 40 schools, including two in-district charter schools. GPISD is an open-enrollment portfolio district featuring numerous schools of choice. In addition to the regular curriculum, the District also offers several programs of choice. ELEMENTARY SCHOOL OF CHOICE Bonham Early Education Center Global Leadership Academy at Barbara Bush Elementary David Daniels Elementary Academy of Science and Math Garner Fine Arts Academy Marshall Leadership Academy Ellen Ochoa STEM Academy at Ben Milam Elementary School School for the Highly Gifted (Charter, Grades 1-3) Whitt Fine Arts Academy Lorenzo de Zavala Environmental Science Academy SECONDARY SCHOOL OF CHOICE Young Men’s Leadership Academy at John F. Kennedy Middle School Young Women’s Leadership Academy at Bill Arnold Middle School (Grades 6-12) Grand Prairie Collegiate Institute (Charter, Grades 6-9) Grand Prairie Fine Arts Academy (Grades 6-12) HOPE Academy (Grade 8) Crosswinds High School Dubiski Career High School PROGRAMS OF CHOICE A STEM Academy at Crockett 5th Grade Center Center for Law & Public Safety at Grand Prairie High School Center for Sports Medicine at South Grand Prairie 9th Grade Center Center for Sports Medicine at South Grand Prairie High School The School of Environmental Science and Technology at South Grand Prairie High School Veterinary Studies at South Grand Prairie High School and SGP 9th Grade Center Tuition-based Pre-Kindergarten Construction and Trade TRADITIONAL CAMPUSES Grand Prairie High School South Grand Prairie High South Grand Prairie 9th Grade Johnson DAEP 2
Adams Middle School Fannin Middle School Jackson Middle School Reagan Middle School Truman Middle School Austin Elementary Bowie Elementary Crockett 5th Grade Center Dickinson Elementary Eisenhower Elementary Florence Hill Elementary Garcia Elementary Lee Elementary Moore Elementary Moseley Elementary Powell Elementary Rayburn Elementary Seguin Elementary Travis Elementary Williams Elementary At the secondary level, students have the opportunity to select from a variety of career pathways: Agricultural, Food & Natural Resources Architecture Auto Collision Repair Auto Tech Business and Marketing Cosmetology Culinary Arts Engineering Graphic Communication Health Science Technology Information Technology / Computer Maintenance Media Technology Science, Technology, Engineering, and Math (STEM) Each GPISD school, traditional or choice, has a rigorous curriculum that is required by the State of Texas for the mastery of standards for each grade level. What makes our schools different is that we let parents consider their child’s strengths and interests, and then customize his or her education. The District has a diverse student population with 65.94 percent Hispanic students, 17.63 percent black students, 10.8 percent white students, 3.23 percent Asian students, 2.02 percent “two or more” ethnicities, .09 percent Hawaiian/Pacific Islander, and .28 percent American Indian/Alaskan students.
Two or More Hawaiian/Pacific Island White Hispanic/Latino Black/African American Asian American Indian/Alaskan 0
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Voted into existence on July 5, 1902, the District had the distinction of acknowledging its 112-year anniversary in 2014. 3
The District has a robust Internet site that includes pages for all campuses and departments. Audiences both internal and external may access pertinent information about the District and its wide array of services at www.gpisd.org. The District also maintains a social media presence on Facebook, Twitter and the GPISD Flickr Photo Gallery at: www.facebook.com/grandprairieisd @grandprairieisd https://www.flickr.com/photos/grandprairieisd/ Education Foundation The Grand Prairie ISD Charitable Trust was originally established in 1970 to raise funds for innovative teaching grants, student scholarships, and educational equipment/program funding to help strengthen our public school system. The renamed GPISD Education Foundation has grown tremendously and today operates with an annual budget of approximately $225,000. The Foundation supports the District’s 28,000+ students and approximately 2,000 teachers through “friendraising” and fundraising. The group seeks out parents, business owners, alumni, community leaders, and Grand Prairie citizens who believe in public education and want to contribute to the success of GPISD. Through these partnerships, the group is able to support financially a wide variety of activities and initiatives that affect the lives of children. Accomplishments: $480,825 in Innovative Teaching Grants $104,434 in scholarships for college-bound students $136,600 in science field experiences for students $16,600 towards fine arts programming More detailed information about the GPISD Education Foundation can be found at http://www.gpisd.org/edfoundation. Economic Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Grand Prairie operates. Grand Prairie, Texas, is centrally located in the Dallas-Fort Worth-Arlington Metropolitan Statistical Area. The community stretches 26 miles long by about eight miles at its widest point. The city covers about 81 square miles (100 square miles including extraterritorial jurisdiction) and has an estimated population of 181,824 (July 2012, American Fact Finder). The city's northern border lies 5 to 10 minutes south of the Dallas/Fort Worth International Airport. The eastern boundary is 12 miles west of downtown Dallas and the western 15 miles east of Fort Worth. Passing east and west through Grand Prairie and linking the city with major markets are Interstate 30, a strong entertainment and business corridor, and Interstate 20, developing as a significant retail and corporate location. Because of its central location and proximity to air and highway transportation infrastructure, Grand Prairie also is a well-established distribution center. Much of the Great Southwest Industrial District's approximately 80-million square feet lies in Grand Prairie. Quick access to the Dallas-Fort Worth International Airport, large local markets of Dallas and Fort Worth, rail and interstate highways continue to attract new construction of warehouse, distribution and manufacturing buildings. Recent industrial, hotel and multifamily development has taken up large tracts in the north Great Southwest Industrial District, yet additional land remains there, nearby and southward. The southernmost section of the city, amid hill country-like vistas around Joe Pool Lake, is attracting high-end residential housing and plans for resort development.
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Local Economy The combined 2014 property tax rate of all taxing jurisdictions in the City of Grand Prairie varies because the city's boundaries overlap with six school districts and three counties. The two predominant taxing areas in Grand Prairie are Dallas County/Grand Prairie Independent School District and Tarrant County/Arlington Independent School District. The combined local and state sales tax is 8.25 percent (6.25 percent state, 2 percent city - effective April 1, 2002). Sales tax is collected on rentals, sales, use of tangible property and services. It is not collected on grocery, prescription medicine, property consumed in manufacturing and processing. 2012 median household income in Grand Prairie was estimated to be $52,733 (ESRI). Per capita income was $22,259. Fifty-three and a half percent of the city's households have income above $50,000 (ESRI). With the completion of Lake Ridge Parkway from I-20 to Great Southwest Parkway in 2014, the major new corridor along SH 161 from the north end of town to the south becomes a complete and extremely valuable commodity. Simultaneously, the frontage roads on I-30 and I-20 are being designed, constructed or breaking ground in 2014, giving the City the opportunity to market the available and soon-to-be-available frontage road property on SH 161, I-30 and I-20. Major City Projects: The remodeled Dalworth Recreation Center is more than double the size of the old facility, which opened in the 1960s, and features open and modern space with an expanded gym, activity room, study room, meeting rooms, catering kitchen and more. Grand Prairie recently celebrated the grand opening of the city’s new Fire Station No. 1. The new station has replaced the Fire Station No. 1 on Main Street, which was built in 1949. The new 11,933-square-foot building features four-fold style apparatus bay doors, which open more quickly and will allow for faster truck exiting than the traditional garage style doors. The facility also includes sleeping quarters for up to 10 firefighters and three officers, a kitchen, dining area, laundry room, work room, day room, workshop and emergency treatment area. The voters of the City of Grand Prairie voted to use the two 1/8 cent sales taxes be combined into a ¼ cent sales tax to build a mega recreation center, library, indoor/ outdoor water park, Central Park amphitheater, trails and gigantic playground. The center will be located in west Central Park west of State Highway 161 and adjacent to the future extension of Waterwood Drive, across the lake from The Summit and Public Safety Building. With the recent addition of an in-house clinic, Prairie Paws Animal Adoption Center can perform on-site sterilization and rabies vaccination. All animals adopted from the shelter will now be sterilized and vaccinated for rabies. Planning is underway for a new Fire Station No. 10 at the intersection of South Grand Peninsula and Balboa in the Joe Pool Lake area. The four-bay station, similar in plan layout to Fire Station No. 1, will feature a tower element with a lighthouse/nautical theme. Financial Information Internal Controls – The management of the District is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the District are protected from loss, theft, and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived from its implementation; and (2) the valuation of cost and benefits requires estimates and judgments by management. Management believes the District’s internal controls provide reasonable assurance errors or irregularities that could be material to the financial statements would be detected within a timely period by employees in the normal course of performing their assigned functions. 5
Budgetary Controls – In addition, the District maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual budget approved by the Board of Trustees. Activities in the General Fund, National School Breakfast and Lunch Program Fund, and Debt Service Fund are included in the District’s formally adopted budget. Budgets for Special Revenue Funds (other than the National School Breakfast and Lunch Program Fund) and Capital Projects Fund are prepared on a project basis, based on grant regulations or applicable bond ordinances. Budgetary control (the level at which expenditures cannot legally exceed the appropriated amount) is maintained at the fund-function level as required by the Texas Education Agency. The Business Operations Department submits requests for budget transfers from one functional category to another functional category, on a monthly basis, to the Board of Trustees for their approval. Budget changes that would increase/decrease the overall fund are submitted to the Board of Trustees for their approval as well. Independent Audit The Texas Education Code requires an annual audit of all public schools. This audit must be on an organizationwide basis and include all fund types and account groups that are the accounting responsibility of the District. The audit is performed by an independent certified public accountant firm selected by the District’s Board of Trustees. The auditor’s report has been included in this report. Organization of the District The Board of Trustees (the Board) of the Grand Prairie Independent School District (GPISD) is a seven-member body. The Board serves as the taxing authority, contracting body, policy maker, ensures that all other general compliance laws and rules applicable to the District are followed in the expenditure of the District’s funds, and approves the annual budget resolution and tax adoption. Financial Achievements GPISD passed a $222 million bond election in 2007 GPISD passed a $70 million bond election in 2011 which required no tax rate increase GPISD issued refunding bonds in 2011 providing an interest cost savings of $11,485,608 GPISD issued refunding bonds in 2013 providing an interest cost savings of $2,076,337 GPISD’s most recent bond ratings: o AAA based on the Permanent School Fund Guarantee o AA underlying credit rating affirmed by Fitch Ratings o AA- underlying credit rating affirmed by Standard & Poor’s Ratings Services GPISD has almost tripled the General fund balance in the last five years, increasing it from $19,010,054 in the 2009-2010 fiscal year to $56,213,442 in the fiscal year ending 2013-2014 – an increase of more than 195 percent Awards In 1999, the 76th Texas Legislature approved legislation requiring the commissioner of education in consultation with the comptroller of public accounts to develop a rating system for school district financial accountability. The 77th Texas Legislature in 2001 subsequently adopted rules for the implementation and administration of the financial accountability rating system known as School FIRST, Financial Integrity Rating System of Texas. The financial accountability rating system benefits the public by having a system in place to ensure that school districts will be held accountable for the quality of their financial management practices and achieve improved performance in the management of their financial resources. The Grand Prairie Independent School District has received a Superior Achievement rating in ten out of the last eleven years. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Grand Prairie Independent School District for its comprehensive annual financial report for the fiscal year ended August 31, 2013. This was the first year that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A 6
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Association of School Business Officials International
The Certificate of Excellence in Financial Reporting Award is presented to
Grand Prairie Independent School District For Its Comprehensive Annual Financial Report (CAFR) For the Fiscal Year Ended August 31, 2013 The CAFR has been reviewed and met or exceeded ASBO International’s Certificate of Excellence standards
Terrie S. Simmons, RSBA, CSBO President
John D. Musso, CAE, RSBA Executive Director 9
GRAND PRAIRIE INDEPENDENT SCHOOL Organization Chart
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GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT PRINCIPAL OFFICIALS AND ADVISORS
BOARD OF TRUSTEES Terry Brooks President Burke Hall Vice-President Chester McCrary Secretary J.D. Stewart Member Katrina Jones Member Steve Pryor Member Mike Skinner Member ADMINISTRATION Susan Simpson Hull, Ph.D. Superintendent Nancy Bridges Deputy Superintendent of Human Capital Vern Alexander, Ed.D. Deputy Superintendent of Student Services Tommy Dyar, J.D. Legal Counsel Dr. Jerry Hunkapiller Assistant Superintendent of Business & Operations Vicki Bridges Assistant Superintendent of School Accountability Pat Lewis Assistant Superintendent of School Improvement Calvin Harrison Assistant Superintendent of Student Services and Safety Linda Ellis Assistant Superintendent of Teaching and Learning Michael McSwain Chief Career and Technical Education Officer
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GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT PRINCIPAL OFFICIALS AND ADVISORS
ADMINISTRATION (continued) Carolyn Foster Chief Financial Officer Vicki Villarreal Chief Human Capital Elna Davis Chief of Schools Robert Steeber Chief of Schools Gabriel Trujillo Chief of Schools Teri Wilson Chief of Staff Susanna Ramirez Chief Student Support Services Matthew Yeager Chief Technology Officer Sam Buchmeyer Public Information Officer Melissa Rowe Executive Director of Assessment and Research Troy Mathieu Executive Director of Athletics Jeffery Miller Executive Director of College Readiness Gay Lynn Broom Executive Director Community Relations Susan Gainer, Ed.D. Executive Director of Fine Arts Demetrus Liggins Executive Director of Human Capital Traci Davis Executive Director of Innovation & Choice Loraine Morazzano, Ph. D. Executive Director of Staff Development
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GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT PRINCIPAL OFFICIALS AND ADVISORS
CONSULTANTS AND ADVISORS Hereford, Lynch, Sellars, Kirkham, P.C. Conroe, Texas - Independent Auditors Fulbright & Jaworski L.L.P. Dallas, Texas - Bond Counsel Southwest Securities Dallas, Texas - Financial Advisor
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11th December
HLSK
Hereford, Lynch, Sellars & Kirkham Certified Public Accountants Conroe 1406 Wilson Rd., Suite 100 Conroe, Texas 77304 Tel 936-756-8127 Metro 936-441-1338 Fax 936-756-8132
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A Professional Corporation
Members of the American Institute of Certified Public Accountants Texas Society of Certified Public Accounts Private Companies Practice Section of the AICPA Division for Firms
Cleveland 111 East Boothe Cleveland, Texas 77327 Tel 281-592-6443 Fax 281-592-7706
INDEPENDENT AUDITORS’ REPORT
The Board of Trustees of Grand Prairie Independent School District 2602 S. Beltline Road Grand Prairie, Texas 75052 Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Grand Prairie Independent School District (District), as of and for the year ended August 31, 2014, and the related notes to the financial statements, which collectively comprise the District's basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessments of the risk of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of Grand Prairie Independent School District, as of August 31, 2014, and the respective changes in financial position, thereof and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.
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Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Grand Prairie Independent School District’s basic financial statements. The introductory section, combining and individual fund financial statements, supplementary information, and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is also not a required part of the basic financial statements. The combining and individual fund financial statements, supplementary information, and the schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements, supplementary information, and the schedule of expenditures of federal awards are fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 1, 2014, on our consideration of the Grand Prairie Independent School District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Grand Prairie Independent School District’s internal control over financial reporting and compliance. Respectfully,
Hereford, Lynch, Sellars & Kirkham, P.C. HEREFORD, LYNCH, SELLARS & KIRKHAM, P.C. Certified Public Accountants Conroe, Texas December 1, 2014
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Management's Discussion and Analysis As management of the Grand Prairie Independent School District (“the District”), we offer readers of the accompanying report this narrative overview and analysis of the financial activities of the District for the fiscal year ended August 31, 2014. (In reviewing this report, readers should be mindful that it is often necessary for management to make and use estimates in the preparation of financial statements. Examples of the use of such estimates may be found in amounts reported for depreciation, net taxes receivable and claims payable of the District’s self-insured workers’ compensation program.) Financial Highlights • Governmental Activities assets and deferred outlflows of resources exceeded liabilities at year-end by $42,459,091. • The District’s total net position increased by $16,613,820 from current operations. • As of the close of the year, the District’s governmental funds had combined ending fund balances of $75,566,019, an increase of $9,023,411 as compared to the preceding year. • At the end of the year, unassigned fund balance of the general fund was $54,102,352, or 26 percent of the year’s total general fund expenditures. • The District’s total bonded debt decreased by $15,116,688 (3 percent) during the year. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the District’s basic financial statements. The District’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. This report also contains other supplementary information in addition to the basic financial statements. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector enterprise. The Statement of Net Position (Exhibit A-1) presents information on all of the District’s assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as an indicator of how the financial position of the District is changing. The Statement of Activities (Exhibit B-1) presents information showing how the District’s net position changed during the year. Changes in net position are reported upon occurrence of the underlying event giving rise to the change, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some transactions that will not result in cash flows until future fiscal periods (e.g., uncollected taxes and incurred but unpaid workers’ compensation benefits). The government-wide financial statements of the District are principally supported by taxes and intergovernmental revenues (governmental activities). The governmental activities of the District include Instruction, Instructional Resources and Media Services, Curriculum and Staff Development, Instructional Leadership, School Leadership, Guidance, Counseling, and Evaluation Services, Social Work Services, Health Services, Student Transportation, Food Services, Extracurricular Activities, General Administration, Plant Maintenance and Operations, Security and Monitoring Services, Data Processing Services, Community Services, Interest on Long-term Debt, Issuance Costs and Fees, Facilities Repair and Maintenance, Payments Related to Shared Services Arrangements, Payments to Juvenile Justice Alternative Education Programs, Payments to Tax Increment Fund, and Other Intergovernmental Charges. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, as do other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the District can be divided into two categories: governmental funds and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of cash resources, as well as on balances of cash resources available at the end of the fiscal year. Such information may be useful in evaluating near-term financing requirements.
17
Because the focus of governmental funds financial statements is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term effect of the District's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The District maintained thirty-two individual governmental funds during the year. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, debt service fund, and capital projects funds, which are considered to be major funds. Data from the other twenty-nine governmental funds are combined into a single, aggregated presentation titled other governmental funds. The District adopts an annual revenue and appropriations budget for its general fund. Subsequent to adoption, amendments approved by the governing body are reflected in a revised budget. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with this budget. The basic governmental fund financial statements are noted in the table of contents of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of students and student organizations. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the District’s own programs and activities. A statement of fiduciary assets and liabilities is presented as noted in the table of contents of this report. Notes to the basic financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the basic financial statements are noted in the table of contents of this report. Other information. In addition to the basic financial statements and accompanying notes, this report presents combining funds financial statements and other supplementary information, which includes schedules required by the Texas Education Agency. Such supplementary information is noted in the table of contents of this report. Government-wide Financial Analysis As mentioned earlier, net position may, over time, serve as an indicator of a District's changing financial position. At the close of the District’s most recent fiscal year, assets and deferred outflows of resources exceeded liabilities in the amount of $42,459,091, an increase of $16,613,820 over the preceding year. GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT'S NET POSITION
Current and Other Assets Capital Assets, net of Depreciation Total Assets Total Deferred Outflows of Resources Long-Term Liabilities Outstanding Other Liabilities Total Liabilities Net Position: Net Investment in Capital Assets Restricted for Grants Unrestricted Total Net Position
$
$
2014 Amount 86,374,045 467,824,811 554,198,856 8,567,904 512,375,719 7,931,950 520,307,669
% 16 84 100 100 98 2 100
3,311,636 3,830,709 35,316,746 42,459,091
8 9 83 100
Governmental Activities 2013 Amount % $ 78,716,275 14 475,814,908 86 554,531,183 100 9,294,951 100 528,701,668 98 9,279,195 2 537,980,863 100
$
(1,477,387) 27,322,658 25,845,271
(6) 106 100
$
$
Increase (Decrease) Amount % 7,657,770 10 (7,990,097) (2) (332,327) (727,047) (8) (16,325,949) (3) (1,347,245) (15) (17,673,194) 4,789,023 3,830,709 7,994,088 16,613,820
(324) 100 29
The District’s investment in capital assets (e.g., land, buildings and improvements, furniture and equipment and construction in progress), less any related debt used to acquire those assets that are still outstanding totaled $3,311,636 or 8 percent of net position. The District uses these capital assets to provide services to students; consequently, these assets are not available for future spending. Although the District’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Net 18
position that is restricted for grants totals $3,830,709 or 9 percent of net position. The remaining balance, unrestricted net position $35,316,746 or 83 percent of net position, may be used to meet future obligations to students and creditors. Governmental activities. Governmental activities increased the District’s net position by $16,613,820. The elements giving rise to this change may be determined from the table below. GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT'S CHANGES IN NET POSITION 2014 Amount Revenue: Program Revenues: Charges for Services Operating Grants and Contributions General Revenues: Property Taxes, Levied for General Purpose Property Taxes, Levied for Debt Service Grants and Contributions Not Restricted to Specific Programs Investment Earnings Miscellaneous Total Revenues Expenses: Instruction Instructional Resources and Media Services Curriculum and Staff Development Instructional Leadership School Leadership Guidance, Counseling, and Evaluation Services Social Work Services Health Services Student Transportation Food Service Extracurricular Activities General Administration Plant Maintenance and Operations Security and Monitoring Services Data Processing Services Community Services Interest on Long-term Debt Issuance Costs and Fees Facilities Repair and Maintenance Payments Related to Shared Services Arrangements Payments to Juvenile Justice Alternative Education Programs Payments to Tax Increment Fund Other Intergovernmental Charges Total Expenses Change in Net Position Net Position - Beginning Prior Period Adjustments - Implement GASB 65 for Bond Issuance Costs Net Position - Beginning, as restated Net Position - Ending
$
$
Governmental Activities 2013 Amount %
%
5,290,454 61,056,172
2 21
50,876,078 20,725,531
5,158,754 53,440,159
2 20
18 7
49,512,362 20,185,207
149,941,903 69,742 2,156,962 290,116,842
51 1 100
144,213,958 2,798,237 6,491,607 3,775,342 15,298,020 10,721,647 744,198 2,876,703 4,599,538 15,241,786 5,454,029 5,868,930 18,994,898 1,691,952 3,404,841 4,250,713 23,531,684 26,680 7,081 198,250 65,892 2,973,788 273,248 273,503,022 16,613,820 25,845,271 25,845,271 42,459,091
$
Increase (Decrease) Amount %
131,700 7,616,013
3 14
19 8
1,363,716 540,324
3 3
132,277,340 146,944 4,853,999 265,574,765
49 2 100
17,664,563 (77,202) (2,697,037) 24,542,077
13 (53) (56)
52 1 2 1 6 4 1 2 6 2 2 7 1 1 2 9 -
136,758,543 2,764,116 6,295,374 3,641,954 14,118,138 10,237,528 715,752 2,456,136 4,267,183 14,009,283 5,929,767 6,452,388 20,832,601 886,040 2,767,977 2,770,496 24,778,170 595,460 375,343 223,125
53 1 3 1 5 4 1 2 5 2 3 8 1 1 9 -
7,455,415 34,121 196,233 133,388 1,179,882 484,119 28,446 420,567 332,355 1,232,503 (475,738) (583,458) (1,837,703) 805,912 636,864 1,480,217 (1,246,486) (568,780) (368,262) (24,875)
5 1 3 4 8 5 4 17 8 9 (8) (9) (9) 91 23 53 (5) (96) (98) (11)
1 100
86,982 2,919,542 280,162 264,162,060 1,412,705 27,688,652
1 100
(21,090) 54,246 (6,914) 9,340,962 15,201,115 (1,843,381)
(24) 2 (2)
$
(3,256,086) 24,432,566 25,845,271
$
$
3,256,086 1,412,705 16,613,820
The increase in governmental activities net position was primarily the result of increases in grants and contributions revenues was greater than the increase in instruction expenditures. Revenues, aggregating $290,116,842, were generated primarily from two sources. Property taxes $71,601,609 represent 25 percent of total revenues while grants and contributions (including those not restricted for programspecific use as well as for general operations, totaling $210,998,075), represent 72 percent of total revenues. The remaining 3 percent is generated from investment earnings, charges for services, and miscellaneous revenues. The primary functional expense of the District is Instruction $144,213,958, which represents 52 percent of total expenses, while all remaining expense categories are 10 percent or less of total expenses. 19
Financial Analysis of the Government's Funds As mentioned earlier, the District uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements. Governmental funds. At the end of the fiscal year, the District’s governmental funds had combined ending fund balances of $75,566,019, an increase of $9,023,411 from the preceding year. Comments as to each individual fund’s change in fund balance follow. The general fund is the primary operating fund of the District. At year-end, unassigned fund balance of the general fund was $54,102,352, while total fund balance was $56,213,442. To evaluate the general fund’s liquidity, it may be helpful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 26 percent of total general fund expenditures, while total fund balance represents 27 percent of that same total. The fund balance of the general fund increased $8,380,634 during the year from current activities, primarily due to the increase in local revenues (increased assessed property values), state revenues and other items exceeded the increase in the function for instruction expenditures. The debt service fund ending fund balance of $13,187,125 is restricted for the payment of principal and interest on debt. The debt service fund balance increased $396,615 during the year, primarily due to an increase in tax (increased assessed property values) and state revenue. The capital projects fund ending fund balance of $828,403 is restricted for capital expenditures. The net decrease in fund balance during the current year in the capital projects fund was $656,040. The decrease was due to expenditure of funds as authorized per the bond issue. Governmental funds financial statements may be found by referring to the table of contents. General Fund Budgetary Highlights Differences between the originally-adopted budget and the final amended budget of the general fund were to increase appropriations $14,526,186. The most significant change was to increase appropriations for instruction. Amendments were approved by the governing body. There were no significant variations between the final appropriations and actual expenditures. Capital Asset and Debt Administration Capital assets. The District’s investment in capital assets for its governmental activities as of August 31, 2014 was $467,824,811 (net of accumulated depreciation). This investment in capital assets includes land and improvements, buildings and improvements, furniture and equipment, and construction in progress. The decrease in net investment in capital assets for governmental activities for the current fiscal year was $7,990,097. Major capital asset activity during the year included the following: •
An addition of $4,223,755 in construction to build school buildings and renovate and equip such school buildings. GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT'S CAPITAL ASSETS (net of depreciation)
Land and Improvements Buildings and Improvements Furniture and Equipment Construction in Progress Totals
$
$
2014 Amount 18,601,206 433,752,692 15,470,913 467,824,811
% 4 93 3 100
Governmental Activities 2013 Amount % $ 18,601,206 4 438,710,157 92 17,123,816 4 1,379,729 $ 475,814,908 100
$
$
Increase (Decrease) Amount % (4,957,465) (1) (1,652,903) (10) (1,379,729) (100) (7,990,097)
Additional information on the District’s capital assets can be found in Note III. D. Capital Assets of the notes to the financial statements per the table of contents of this report.
20
Long-term Liabilities. At year-end, the District had a liability for bonded debt of $511,017,110. The debt is supported by the full faith and credit of the District, as further guaranteed by the Permanent School Fund of the State of Texas. Other long-term obligations represent claims expense of the self-funded workers’ compensation program of $1,159,280 and compensated absences of $199,329. GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT'S LONG-TERM LIABILITIES OUTSTANDING
General Obligation Bonds (Net) Workers' Compensation Claims Compensated Absences Totals
2014 Amount $ 511,017,110 1,159,280 199,329 $ 512,375,719
% 100 100
Governmental Activities 2013 Amount % $ 526,133,798 100 2,381,466 186,404 $ 528,701,668 100
$
$
Increase (Decrease) Amount % (15,116,688) (3) (1,222,186) (51) 12,925 7 (16,325,949)
The District’s total bonded debt decreased by $15,116,688 due to regularly scheduled debt payments. The District’s general obligation debt is backed by the full faith and credit of the District and is further guaranteed by the Texas Permanent School Fund Guarantee Program. State statutes do not limit the tax rate or amount of local tax support of school districts’ bonded indebtedness. However, approval of the Attorney General of the State of Texas is required prior to the sale of bonds. Additional information on the District’s long-term debt can be found as noted in Note III. E. Long-term Liabilities of the notes to the financial statements per the table of contents of this report. Economic and Other Factors and Fiscal Year 2014-15 Budgets and Rates • School year (2014-15) student enrollment is 27,740. • District staff totals 3,295 employees in 2014-15, excluding substitutes and other part-time employees, which includes 1,756 teachers and 394 are teacher aides and secretaries. • The District maintains forty regular education campuses. • The unemployment rate for the County is currently 5.8 percent, which is favorable compared to 6.9 percent a year ago. This compares unfavorably to the state’s average unemployment rate of 5.3 percent, which was 6.4 percent a year ago. • Property values of the District are projected to increase by 9 percent in the 2014-15 year. • A maintenance and operations tax rate of $1.04 and a debt service tax rate of $.425, a total rate of $1.465 was adopted for 2014-15. All of these factors and others were considered in preparing the District’s budget for the 2014-15 fiscal year. During 2013-14, fund balance in the general fund increased to $56,213,442. Due to the uncertainty of state school funding, the District plans to set-aside these additional funds to ensure operating expenses are met in the 2014-15 and 2015-16 fiscal years. Requests for Information This financial report is intended to provide a general overview of the District’s finances for those with an interest in this information. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Chief Financial Officer, Grand Prairie Independent School District, 2602 S. Beltline Rd. Grand Prairie, Texas 75052.
21
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22
BASIC FINANCIAL STATEMENTS
23
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT
EXHIBIT A-1
STATEMENT OF NET POSITION AUGUST 31, 2014 1 Data Control Codes 1110 1120 1225 1240 1267 1290 1300 1410 1510 1520 1530 1000
1700
Governmental Activities ASSETS: Cash and Cash Equivalents Current Investments Property Taxes Receivables (Net) Due from Other Governments Receivable from External Parties Other Receivables (Net) Inventories Prepaid Items Capital Assets, Not Being Depreciation: Land and Improvements Capital Assets, Net of Accumulated Depreciation: Buildings and Improvements Furniture and Equipment Total Assets
$
18,601,206 433,752,692 15,470,913 554,198,856
DEFERRED OUTFLOWS OF RESOURCES: Deferred Charge on Refunding Total Deferred Outflows of Resources
8,567,904 8,567,904
LIABILITIES: Accounts Payable Interest Payable Accrued Wages Payable Unearned Revenue Noncurrent Liabilities: 2501 Due Within One Year 2502 Due in More Than One Year 2000 Total Liabilities 2110 2140 2165 2300
3200 3820 3900 3000
4,331,036 69,711,572 3,618,698 5,572,111 5,609 11,170 1,258,319 1,865,530
66,700 742,622 7,069,495 53,133 16,232,099 496,143,620 520,307,669
NET POSITION: Net Investment in Capital Assets Restricted for Grants Unrestricted Total Net Position
$
The accompanying notes are an integral part of this statement. 24
3,311,636 3,830,709 35,316,746 42,459,091
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT
EXHIBIT A-2
STATEMENT OF ACTIVITIES FOR THE YEAR ENDED AUGUST 31, 2014
1
Data Control Codes 0011 0012 0013 0021 0023 0031 0032 0033 0034 0035 0036 0041 0051 0052 0053 0061 0072 0073 0081 0093 0095 0097 0099 TG TP
MT DT GC IE MI TR CN NB NE
Functions/Programs Governmental Activities: Instruction Intructional Resources and Media Services Curriculum and Staff Development Instructional Leadership School Leadership Guidance, Counseling, and Evaluation Services Social Work Services Health Services Student Transportation Food Service Extracurriculur Activities General Administration Plant Maintenance and Operations Security amd Monitoring Services Data Processing Services Community Services Interest on Long-term Debt Issuance Costs and Fees Facilities Repair and Maintenance Payments Related to Shared Services Arrangements Payments to Juvenile Justice Alternative Education Programs Payments to Tax Increment Fund Other Intergovermental Charges Total Governmental Activities Total Primary Government
3
Program Revenues Operating Charges for Grants and Contributions Services
Expenses $
$
144,213,958 2,798,237 6,491,607 3,775,342 15,298,020 10,721,647 744,198 2,876,703 4,599,538 15,241,786 5,454,029 5,868,930 18,994,898 1,691,952 3,404,841 4,250,713 23,531,684 26,680 7,081 198,250 65,892 2,973,788 273,248 273,503,022 273,503,022
$
$
1,157,040 12,078 6,078 831,868 2,838,802 289,505 153,437 1,646 5,290,454 5,290,454
$ 16,500,220 155,329 5,009,221 759,156 801,375 2,321,135 522,938 151,443 590,343 13,233,385 104,723 336,119 913,496 23,363 181,972 844,999 18,408,705 198,250 61,056,172 $ 61,056,172
General Revenues: Property Taxes, Levied for General Purposes Property Taxes, Levied for Debt Services Grants and Contributions Not Restricted to Specific Programs Investment Earnings Miscellaneous Total General Revenues Change in Net Position Net Position - Beginning Net Position - Ending
The accompanying notes are an integral part of this statement.
25
Net (Expense) Revenue and Changes in Net Position
4
Governmental Activities $
$
(126,556,698) (2,630,830) (1,482,386) (3,010,108) (13,664,777) (8,400,512) (221,260) (2,725,260) (4,009,195) 830,401 (5,059,801) (5,532,811) (17,927,965) (1,668,589) (3,222,869) (3,404,068) (5,122,979) (26,680) (7,081) (65,892) (2,973,788) (273,248) (207,156,396) (207,156,396)
50,876,078 20,725,531 149,941,903 69,742 2,156,962 223,770,216 16,613,820 25,845,271 42,459,091
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT BALANCE SHEET - GOVERNMENTAL FUNDS AUGUST 31, 2014
Data Control Codes 1110 1120 1225 1240 1260 1290 1300 1410 1000
ASSETS: Cash and Cash Equivalents Current Investments Property Taxes Receivable (Net) Due from Other Governments Due from Other Funds Other Receivables (Net) Inventories Prepaid Items Total Assets
2110 2160 2170 2300 2000
LIABILITIES: Accounts Payable Accrued Wages Payable Due to Other Funds Unearned Revenue Total Liabilities
$
$
$
DEFERRED INFLOWS OF RESOURCES: 2600 Unavailable Revenue - Property Taxes Total Deferred Inflows of Resources
3410 3430 3450 3470 3480 3545 3590 3600 3000 4000
FUND BALANCES: Nonspendable: Inventories Prepaid Items Restricted: Grant Funds Capital Acquisitions and Contractual Obligations Debt Service Committed: Other Assigned: Technology Operating Leases Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances
$
The accompanying notes are an integral part of this statement. 26
199
599
General Fund
Debt Service Fund
1,892,482 56,885,975 2,667,958 2,978,857 769,831 11,170 694,130 711,219 66,611,622
66,700 7,069,495 581,504 12,523 7,730,222
$
$
$
1,342 12,580,943 950,740 604,840 14,137,865
-
2,667,958 2,667,958
950,740 950,740
694,130 711,219
-
-
13,187,125
-
-
705,741 54,102,352 56,213,442
13,187,125
66,611,622
$
14,137,865
EXHIBIT B-1
699
Nonmajor Other Governmental Funds
Capital Projects Fund $
$
$
$
2,345 244,654 581,404 828,403
-
$
$
$
2,434,867 1,988,414 2,796,365 564,189 1,154,311 8,938,146
3,560,487 40,610 3,601,097
98 Total Governmental Funds $
$
$
4,331,036 69,711,572 3,618,698 5,572,111 4,147,600 11,170 1,258,319 1,865,530 90,516,036
66,700 7,069,495 4,141,991 53,133 11,331,319
-
-
3,618,698 3,618,698
-
564,189 -
1,258,319 711,219
828,403 -
3,830,709 -
3,830,709 828,403 13,187,125
-
942,151
942,151
828,403
5,337,049
705,741 54,102,352 75,566,019
828,403
$
8,938,146
27
$
90,516,036
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28
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT
EXHIBIT B-1R
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION AUGUST 31, 2014 Total Fund Balances - Governmental Funds (Exhibit B-1)
$
75,566,019
Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported as assets in governmental funds. The governmental capital assets at year-end consist of: Governmental Capital Assets Costs Accumulated Depreciation of Governmental Capital Assets
$
676,116,654 (208,291,843)
467,824,811
Property taxes receivable, which will be collected subsequent to year-end, but are not available soon enough to pay expenditures and, therefore, are deferred in the funds.
3,618,698
Long-term liabilities are not due and payable in the current period and, therefore, are not reported as liabilities in the funds. Liabilities at year-end related to such items consist of: Bonds Payable, at Original Par Premium on Bonds Payable Discount on Bonds Payable Accreted Interest Defeasance Costs Accrued Interest on the Bonds Workers' Compensation Compensated Absences
$
Total Net Position - Governmental Activities (Exhibit A-1)
(462,964,392) (11,613,131) 668,041 (37,107,628) 8,567,904 (742,622) (1,159,280) (199,329)
(504,550,437) $
The accompanying notes are an integral part of this statement. 29
42,459,091
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS FOR THE YEAR ENDED AUGUST 31, 2014
Data Control Codes REVENUES: 5700 Local and Intermediate Sources 5800 State Program Revenues 5900 Federal Program Revenues 5020 Total Revenues
0011 0012 0013 0021 0023 0031 0032 0033 0034 0035 0036 0041 0051 0052 0053 0061 0071 0072 0073 0081 0093 0095 0097 0099 6030
$
EXPENDITURES: Current: Instruction Instructional Resources and Media Services Curriculum and Staff Development Instructional Leadership School Leadership Guidance, Counseling, and Evaluation Services Social Work Services Health Services Student Transportation Food Service Extracurricular Activities General Administration Plant Maintenance and Operations Security and Monitoring Services Data Processing Services Community Services Debt Service: Principal on Long-term Debt Interest on Long-term Debt Issuance Costs and Fees Capital Outlay: Facilities Acquisition and Construction Intergovernmental: Payments to Shared Services Arrangements Payments to Juvenile Justice Alternative Education Programs Payments to Tax Increment Fund Other Intergovernmental Charges Total Expenditures
1200 Net Change in Fund Balances 0100 Fund Balances - Beginning 3000 Fund Balances - Ending
$
The accompanying notes are an integral part of this statement. 30
199
599
General Fund
Debt Service Fund
54,595,092 155,599,996 3,708,114 213,903,202
$
20,739,251 18,408,705 39,147,956
125,495,559 2,790,466 1,560,653 3,160,724 14,312,132 8,848,473 238,764 2,893,156 4,390,683 3,771,946 5,798,796 18,977,796 1,693,733 3,371,617 3,550,039
-
-
13,195,438 24,810,549 26,680
2,073,777
-
65,892 2,255,114 273,248 205,522,568
718,674 38,751,341
8,380,634
396,615
47,832,808 56,213,442
$
12,790,510 13,187,125
EXHIBIT B-2
699
Nonmajor Other Governmental Funds
Capital Projects Fund $
$
8,117 8,117
$
3,920,474 3,958,782 29,281,369 37,160,625
98 Total Governmental Funds $
79,262,934 177,967,483 32,989,483 290,219,900
350,265 58,281 178,023 -
10,265,165 24,328 4,972,469 637,650 723,462 1,933,131 510,689 1,305 399,909 15,471,847 30,201 308,167 66,166 715,684
136,110,989 2,814,794 6,533,122 3,798,374 15,035,594 10,781,604 749,453 2,894,461 4,790,592 15,471,847 3,771,946 5,828,997 19,344,244 1,693,733 3,615,806 4,265,723
-
-
13,195,438 24,810,549 26,680
77,588
-
2,151,365
664,157
198,250 36,258,423
198,250 65,892 2,973,788 273,248 281,196,489
(656,040)
902,202
9,023,411
1,484,443 828,403
$
4,434,847 5,337,049
31
$
66,542,608 75,566,019
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT
EXHIBIT B-2R
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED AUGUST 31, 2014 Total Net Changes in Fund Balances - Governmental Funds (Exhibit B-2)
$
9,023,411
Amounts reported for governmental activities in the statement of activities are different because: Capital outlays are reported in governmental funds as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. $
Capital Assets increased Depreciation Expense
4,223,755 (18,102,440)
(13,878,685)
The net effect of miscellaneous transactions involving capital assets (transfers, adjustments and dispositions) is a increase (decrease) to net position.
5,888,588
Because some property taxes will not be collected for several months after the District's fiscal year end, they are not considered "available" revenues and are deferred in the governmental funds. Deferred tax revenues increased (decreased) by this amount this year.
(103,058)
Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position.
13,195,438
Interest on long-term debt in the statement of activities differs from the amount reported in the governmental funds because interest is recognized as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the statement of activities, however, interest expense is recognized as the interest accrues, regardless of when it is due. The (increase) decrease in interest reported in the statement of activities consist of the following: Accrued Interest on Current Interest Bonds Payable (increased) decreased $ Accreted Interest Paid Interest Accreted on the Capital Appreciation Bonds Amortization of Bond Premium and Discount Amortization of Defeasance Costs
84,662 7,849,562 (6,895,081) 966,769 (727,047)
1,278,865
The (increase) decrease in workers' compensation is reported in the statement of activities but does not require the use of current financial resources and, therefore, is not reported as expenditures in the governmental funds.
1,222,186
The (increase) decrease in compensated absences is reported in the statement of activities but does not require the use of current financial resources and, therefore, is not reported as expenditures in the governmental funds. Change in Net Position for Governmental Activities (Exhibit A-2)
The accompanying notes are an integral part of this statement. 32
(12,925) $
16,613,820
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT
EXHIBIT C-1
GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET (GAAP BASIS) AND ACTUAL FOR THE YEAR ENDED AUGUST 31, 2014 1 Data Control Codes 5700 5800 5900 5020
2
3
Budgeted Amounts Original Final REVENUES: Local and Intermediate Sources State Program Revenues Federal Program Revenues Total Revenues
$
EXPENDITURES: Current: Instruction and Instructional Related Services: Instruction 0011 Instructional Resources and Media Services 0012 Curriculum and Staff Development 0013 Total Instruction and Instructional Related Services
47,449,041 147,342,942 515,000 195,306,983
$
Variance with Final Budget Positive (Negative)
Actual
54,237,841 152,342,942 3,252,386 209,833,169
$
54,595,092 155,599,996 3,708,114 213,903,202
$
357,251 3,257,054 455,728 4,070,033
122,959,287 2,302,940 1,548,620 126,810,847
125,725,837 2,855,240 1,621,536 130,202,613
125,495,559 2,790,466 1,560,653 129,846,678
230,278 64,774 60,883 355,935
0021 0023
Instructional and School Leadership: Instructional Leadership School Leadership Total Instructional and School Leadership
3,205,462 16,287,577 19,493,039
3,323,684 14,746,761 18,070,445
3,160,724 14,312,132 17,472,856
162,960 434,629 597,589
0031 0032 0033 0034 0036
Support Services - Student (Pupil): Guidance, Counseling, and Evaluation Services Social Work Services Health Services Student Transportation Extracurricular Activities Total Support Services - Student (Pupil)
8,160,283 250,297 2,714,884 3,930,811 3,648,940 18,705,215
9,079,018 262,297 2,957,911 4,920,811 3,784,454 21,004,491
8,848,473 238,764 2,893,156 4,390,683 3,771,946 20,143,022
230,545 23,533 64,755 530,128 12,508 861,469
0041
Administrative Support Services: General Administration Total Administrative Support Services
4,599,987 4,599,987
6,773,187 6,773,187
5,798,796 5,798,796
974,391 974,391
0051 0052 0053
Support Services - Nonstudent Based: Plant Maintenance and Operations Security and Monitoring Services Data Processing Services Total Support Services - Nonstudent Based
18,604,110 966,927 2,567,248 22,138,285
20,210,220 1,718,032 3,457,248 25,385,500
18,977,796 1,693,733 3,371,617 24,043,146
1,232,424 24,299 85,631 1,342,354
0061
Ancillary Services: Community Services Total Ancillary Services
859,610 859,610
3,609,410 3,609,410
3,550,039 3,550,039
59,371 59,371
25,000 25,000
2,138,275 2,138,275
2,073,777 2,073,777
64,498 64,498
175,000 2,250,000 250,000 2,675,000
120,000 2,256,000 273,248 2,649,248
65,892 2,255,114 273,248 2,594,254
54,108 886 54,994
195,306,983
209,833,169
205,522,568
4,310,601
-
-
8,380,634
8,380,634
0081
Capital Outlay: Facilities Acquisition and Construction Total Capital Outlay
0095 0097 0099
Intergovernmental Charges: Payments to Juvenile Justice Alternative Education Programs Payments to Tax Increment Fund Other Intergovernmental Charges Total Intergovernmental Charges
6030
Total Expenditures
1200 Net Change in Fund Balances 0100 Fund Balances - Beginning 3000 Fund Balances - Ending
$
The accompanying notes are an integral part of this statement.
33
47,832,808 47,832,808
$
47,832,808 47,832,808
$
47,832,808 56,213,442
$
8,380,634
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT
EXHIBIT D-1
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES FIDUCIARY FUND AUGUST 31, 2014 Data Control Codes
Agency Fund
ASSETS: 1110 Cash and Cash Equivalents 1000 Total Assets LIABILITIES: Current Liabilities: 2170 Due to Other Funds 2190 Due to Student Groups 2000 Total Liabilities
$ $
570,600 570,600
$
5,609 564,991 570,600
$
The accompanying notes are an integral part of this statement. 34
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT NOTES TO THE FINANCIAL STATEMENTS AUGUST 31, 2014
I. Summary of Significant Accounting Policies A. Description of Government-wide Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government (District). All fiduciary activities are reported only in the fund financial statements. Governmental activities are normally supported by taxes, intergovernmental revenues, and other nonexchange transactions. B. Reporting Entity The Grand Prairie Independent School District (District) is governed by a seven-member board of trustees (Board), which has governance responsibilities over all activities related to public, elementary and secondary, education within the District. Members of the Board are elected by the public; have authority to make decisions; appoint management and significantly influence operations; and have primary accountability for fiscal matters; the District is not included in any other governmental reporting entity. The accompanying financial statements present the District. C. Basis of Presentation – Government-wide Financial Statements While separate government-wide and fund financial statements are presented, they are interrelated. The governmental activities column incorporates data from governmental funds. Separate financial statements are provided for governmental funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. D. Basis of Presentation – Fund Financial Statements The fund financial statements provide information about the District’s funds, including its fiduciary funds. Separate statements for each fund category—governmental and fiduciary—are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds. Major individual governmental funds are reported as separate columns in the fund financial statements. The District reports the following major governmental funds: The general fund is the District’s primary operating fund. It accounts for all financial resources of the District, except those accounted for in another fund. The debt service fund is used to account for the accumulation of resources that are restricted, committed, or assigned for the payment of principal and interest on long-term obligations of governmental funds. The capital projects fund accounts for the acquisition and construction of the District’s major capital facilities, other than those financed by proprietary funds. Additionally, the District reports the following fund types: The agency fund accounts for assets held by the District for student organizations. The fund is custodial in nature (assets equal liabilities) and does not involve measurement or results of operations. During the course of operations, the District has activity between funds for various purposes. Any residual balances outstanding at year end are reported as due from/to other funds and advances to/from other funds. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Balances between the governmental funds included in the governmental activities (i.e., the governmental funds) column are eliminated. Further, certain activity occurs during the year involving transfers of resources between funds. In fund financial statements these amounts are reported at gross amounts as transfers in/out. While reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Transfers between the governmental funds included in governmental activities are eliminated. 35
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT NOTES TO THE FINANCIAL STATEMENTS AUGUST 31, 2014
E. Measurement Focus and Basis of Accounting The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, and claims and judgments, are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and acquisitions under capital leases are reported as other financing sources. Interest associated with the current fiscal period is considered to be susceptible to accrual and has been recognized as revenues of the current fiscal period. Entitlements are recorded as revenues when all eligibility requirements are met, including any time requirements, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year end). Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year end). All other revenue items, including property taxes, are considered to be measurable and available only when cash is received by the District. The agency fund has no measurement focus but utilizes the accrual basis of accounting for reporting its assets and liabilities. F. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance 1. Cash and Cash Equivalents The District’s cash and cash equivalents are considered to be cash on hand, and demand or time deposits with original maturities of three months or less from the date of acquisition. 2. Investments Investments for the District are reported at fair value (generally based on quoted market prices) except for the position in investment pools. In accordance with state law, the pools operate in conformity with all of the requirements of the Securities and Exchange Commission’s (SEC) Rule 2a7 as promulgated under the Investment Company Act of 1940, as amended. Accordingly, the pools qualify as a 2a7-like pool and are reported at the net asset value per share (which approximates fair value) even though it is calculated using the amortized cost method. The pools are subject to regulatory oversight by the State Treasurer, although it is not registered with the SEC. 3. Inventories and Prepaid Items Inventories are valued at cost using the first-in/first-out (FIFO) method and consist of expendable supplies. The cost of such inventories is recorded as expenditures/expenses when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.
36
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT NOTES TO THE FINANCIAL STATEMENTS AUGUST 31, 2014
4. Capital Assets Capital assets, which include land and improvements, construction in progress, buildings and improvements, and furniture and equipment, are reported in the applicable governmental activities column in the governmentwide financial statements. The District’s infrastructure includes parking lots and sidewalks associated with various buildings. The cost of the infrastructure was initially capitalized with the building cost and is being depreciated over the same useful life as the building. Capital assets are defined by the District as assets with an initial, individual cost of more than $5,000, and an estimated useful life in excess of two years. In the case of the initial capitalization of general infrastructure assets (i.e., those reported by governmental activities), the District chose to include all such items regardless of their acquisition date or amount. The District was able to estimate the historical cost for the initial reporting of these assets through back trending (i.e., estimating the current replacement cost of the infrastructure to be capitalized and using an appropriate price-level index to deflate the cost to the acquisition year or estimated acquisition year). As the District constructs or acquires additional capital assets each period, including infrastructure assets, they are capitalized and reported at historical cost. The reported value excludes normal maintenance and repairs which are essentially amounts spent in relation to capital assets that do not increase the capacity or efficiency of the item or increase its estimated useful life. Donated capital assets are recorded at their estimated fair value at the date of donation. Land and improvements and construction in progress are not depreciated. The buildings and improvements and furniture and equipment of the District are depreciated using the straight line method over the following estimated useful lives: Capital Asset Classes Buildings and Improvements Furniture and Equipment
Lives 7-50 3-25
5. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The District only has one item that qualifies for reporting in this category. It is the deferred charge on refunding reported in the government-wide statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The District has only one type of item, which arises only under a modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the item, unavailable revenue - property taxes, is reported only in the governmental funds balance sheet. The amount is deferred and recognized as an inflow of resources in the period that the amount becomes available. 6. Net Position Flow Assumption Sometimes the District will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the District’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied. 7. Fund Balance Flow Assumptions Sometimes the District will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the 37
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT NOTES TO THE FINANCIAL STATEMENTS AUGUST 31, 2014
District’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. 8. Fund Balance Policies Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The District itself can establish limitations on the use of resources through either a commitment (committed fund balance) or an assignment (assigned fund balance). The committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the District’s highest level of decision-making authority. The board of trustees is the highest level of decision-making authority for the District that can, by board action or adoption of a resolution prior to the end of the fiscal year, commit fund balance. Once adopted, these amounts can only be used for the purpose intended, which requires formal Board action to establish (as noted in Board minutes or resolution), unless the Board modifies or removes the specified use by taking the same formal Board action. Amounts in the assigned fund balance classification are intended to be used by the District for specific purposes but do not meet the criteria to be classified as committed. The board of trustees (Board) has by resolution authorized the superintendent or his designee to assign fund balance. The Board may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year’s appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment. G. Revenues and Expenditures/Expenses 1. Program Revenues Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. All taxes, including those dedicated for specific purposes, and other internally dedicated resources are reported as general revenues rather than as program revenues. 2. Property Taxes Property values are determined by the Appraisal District as of January 1 of each year. Prior to September 1 of each year, the District must adopt its annual budget and as soon thereafter as practicable, shall adopt a tax rate thus creating the tax levy. Property taxes for current calendar year are levied on approximately October 1 of each year and are payable by January 31 of the following year. Property tax receivables are recorded as of the date levied. Unpaid taxes become delinquent on February 1 and a tax lein on real property is created as of July 1 of each year. 3. Compensated Absences It is the District's policy to permit employees to accumulate earned but unused sick leave bene ts. Payment for unused sick leave days accumulated locally will be made upon retirement (in accordance with guidelines established by the Teacher Retirement System of Texas). All sick pay is accrued when incurred (employee is eligible for retirement) in the government-wide financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, the result of employee terminations. The District does not have a liability for unpaid vacation at year end due to the District's policy does not allow a carryover of vacation not taken at August 31. 4. Use of Estimates The presentation of financial statements, in conformity with generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. 38
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT NOTES TO THE FINANCIAL STATEMENTS AUGUST 31, 2014
5. Data Control Codes The Data Control Codes refer to the account code structure prescribed by TEA in the Financial Accountability System Resource Guide. Texas Education Agency requires school districts to display these codes in the financial statements filed with the Agency in order to ensure accuracy in building a statewide data base for policy development and funding plans. II. Stewardship, Compliance, and Accountability A. Budgetary Information Annual budgets are adopted on a basis consistent with generally accepted accounting principles for the general fund, National School Breakfast and Lunch Program special revenue fund and, debt service fund. All other governmental funds adopt project length budgets. All annual appropriations lapse at fiscal year-end. The following procedures are followed in establishing the budgetary data reflected in the financial statements. 1. Prior to August 20 of the preceding fiscal year, the District prepares a budget for the next succeeding fiscal year beginning September 1. The operating budget includes proposed expenditures and the means of financing them. 2. A meeting of the Board is then called for the purpose of adopting the proposed budget after ten days’ public notice of the meeting has been given. 3. Prior to September 1, the budget is legally enacted through passage of a resolution by the Board. The appropriated budget is prepared by fund, function, and campus/department. The District's campus/department heads may make transfers of appropriations within a campus/department. Transfers of appropriations between campus/departments require the approval of the District’s management. Transfers of appropriations between functions require the approval of the Board. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the function level within a fund. The District made several supplemental budgetary appropriations throughout the year that were not significant to a function. B. Encumbrances Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts) outstanding at year-end are reported as restricted, committed, or assigned fund balances as appropriate. The encumbrances do not constitute expenditures or liabilities because the commitments will be reappropriated and honored during the subsequent year. Encumbrances are reported as restricted, committed, or assigned in the governmental funds. At August 31, 2014, significant encumbrances included in governmental fund balances are as follows: Assigned Fund Balance $ 705,741
Encumbrances Included in: General Fund
III. Detailed Notes on All Funds A. Deposits and Investments Cash Deposits. The District’s funds are required to be deposited and invested under the terms of a depository contract pursuant to the Texas School Depository Act. The depository bank pledges securities which comply with state law and these securities are held for safekeeping and trust with the District’s and the depository banks’ agent bank. The pledged securities are approved by the Texas Education Agency (TEA) and shall be in an amount sufficient to protect District funds on a day-to-day basis during the period of the contract. The pledge of approved securities is waived only to the extent of the depository bank’s dollar amount of Federal Deposit Insurance Corporation (FDIC) insurance.
39
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT NOTES TO THE FINANCIAL STATEMENTS AUGUST 31, 2014
Investments. The District’s investment policy is in accordance with the Public Funds Investment Act (PFIA), the Public Funds Collateral Act, and federal and state laws. State law and District policy limits credit risk by allowing investing in 1) Obligations of the United States or its agencies which are backed by the full faith and credit of the United States, obligations of the State of Texas or its agencies, counties, cities and other political subdivisions of any state rated as to investment quality by a nationally recognized investment rating firm (NRIRF) not less than A or its equivalent; 2) Certificates of deposit issued by a depository located in Texas which is insured by the FDIC or purchased through a broker who has an office located in Texas; 3) Repurchase agreements secured by obligations of the United States or its agencies not to exceed 90 days to maturity from the date of purchase; 4) Securities lending program if the loan is secured by pledged securities, irrevocable letters of credit, or cash and the term of the loan is one year or less; 5) Bankers acceptances with a stated maturity of 270 days or fewer which are eligible for collateral for borrowing from a Federal Reserve Bank; 6) Commercial paper that has a stated maturity of 270 days or fewer from the date of issuance is rated not less than A-1 or P-1 or an equivalent rating by at least two nationally recognized credit rating agencies; 7) No-load money market mutual funds which shall be registered with the Securities and Exchange Commission which have an average weighted maturity of less than two years, investments comply with the Public Funds Investment Act and are continuously rated not less than AAA by at least one NRIRF. 8) A guaranteed investment contract (for bond proceeds only) which meets the criteria and eligibility requirements established by the Public Funds Investment Act; 9) Public funds investment pools which meets the requirements of the Public Funds Investment Act. As of August 31, 2014, the District had the following governmental fund investments: Investment Type Texpool Texas Class Lonestar TexStar Total Fair Value Portfolio Weighted Average Maturity
Standard & Poor's Rating AAAm AAAm AAAm AAAm
$
$
Fair Value 40,971,084 23,617,702 4,009,657 1,113,129 69,711,572
Percentage of Total Investments 59% 34% 6% 1% 100%
Weighted Average Maturity (Years) 0.22 0.18 0.08 0.78 0.21
Credit risk. For fiscal year 2014, the District invested in Texpool, Texas Class, Lone Star, and TexStar. Texpool is duly chartered and administered by the State Comptroller’s Office. Texas Class is duly chartered by the State of Texas Interlocal Cooperation Act and is administered by Public Trust Advisors, LLC. Lone Star Investment Pool is duly chartered by the State of Texas Interlocal Cooperation Act and is administered by First Public, LLC., formerly the Texas Association of School Boards Financial Services. TexStar is duly chartered by the State of Texas Interlocal Cooperation Act and is administered by First Southwest Asset Management, Inc. and JPMorgan Chase. At year end, the District’s investments were rated as noted in the table above. All credit ratings met acceptable levels required by legal guidelines prescribed in both the PFIA and the District’s investment policy. Interest rate risk. Interest rate risk is the risk that changes in interest rates may adversely affect the value of the investments. The District monitors interest rate risk utilizing weighted average maturity analysis. In accordance with its investment policy, the District reduces its exposure to declines in fair values by limiting the weighted average maturity of any internally created pool to no more than 180 days, and any other individual investment shall not exceed one year from the time of purchase, unless specifically authorized by the Board of Trustees. Concentration of credit risk. The District’s investment policy does not limit an investment in any one issuer. The investment portfolio shall be diversified in terms of investment instruments, maturity scheduling, and financial institutions to reduce risk of loss resulting from over-concentration of assets in a specified class of investments, specific maturity, or specific issuer. Custodial credit risk – deposits. In the case of deposits, this is the risk that in the event of a bank failure, the District’s deposits may not be returned to it. As of August 31, 2014, District’s bank balances of $8,834,534 were not exposed to custodial credit risk because the balance was secured by FDIC Insurance and pledged securities as required by the Texas School Depository Act.
40
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT NOTES TO THE FINANCIAL STATEMENTS AUGUST 31, 2014
B. Receivables Receivables as of year end for the District's individual major governmental funds and nonmajor governmental funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows:
General Receivables: Property Taxes Due From Other Governments Other Gross Receivables Less: Allowance for Uncollectibles Net Total Receivables
$
$
2,750,472 $ 2,978,857 11,170 5,740,499 (82,514) 5,657,985 $
Nonmajor Governmental Funds
Debt Service 980,144 $ 604,840 1,584,984 (29,404) 1,555,580 $
Total
1,988,414 1,988,414 1,988,414
$
$
3,730,616 5,572,111 11,170 9,313,897 (111,918) 9,201,979
Tax revenues of the general and debt service fund are reported net of estimated uncollectible amounts. Total uncollectible amounts related to revenues of the current period increased (decreased) revenues as follows: Uncollectibles Related to General Fund Property Taxes Uncollectibles Related to Debt Service Property Taxes Total Uncollectibles of the Current Fiscal Year
$ $
3,198 (10) 3,188
Approximately 69% of the outstanding balance of property taxes receivable is not anticipated to be collected within the next year. C. Interfund Receivables and Payables Receivables/Payables The composition of interfund balances as of August 31, 2014, is as follows: Interfund Receivables $ 769,831 581,404 2,796,365 $ 4,147,600
Fund General Fund Capital Projects Fund Other Governmental Funds - Nonmajor Fiduciary Fund - Agency Totals
$
$
Interfund Payables 581,504 3,560,487 5,609 4,147,600
Interfund balances consist of short-term lending/borrowing arrangements that result primarily from payroll and other regularly occurring charges that are primarily paid by the general fund and then charged back to the appropriate other fund. Additionally, some lending/borrowing may occur between two or more nonmajor governmental funds.
41
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT NOTES TO THE FINANCIAL STATEMENTS AUGUST 31, 2014
D. Capital Assets Capital asset activity for the year ended August 31, 2014 was as follows: Beginning Balance Governmental Activities: Capital Assets, not being Depreciated: Land and Improvements Construction in Progress Total Capital Assets, not being Depreciated
$
Capital Assets, being Depreciated: Buildings and Improvements Furniture and Equipment Total Capital Assets, being Depreciated Less Accumulated Depreciation for: Buildings and Improvements Furniture and Equipment Total Accumulated Depreciation Total Capital Assets, being Depreciated, net Governmental Activities Capital Assets, net
$
18,601,206 1,379,729 19,980,935
Retirements, Adjustments & Transfers
Additions
$
2,585,714 2,585,714
$
(3,965,443) (3,965,443)
Ending Balance
$
18,601,206 18,601,206
611,690,833 41,247,927 652,938,760
1,638,041 1,638,041
3,258,131 (319,484) 2,938,647
614,948,964 42,566,484 657,515,448
(172,980,676) (24,124,111) (197,104,787)
(14,919,120) (3,183,320) (18,102,440)
6,703,524 211,860 6,915,384
(181,196,272) (27,095,571) (208,291,843)
455,833,973
(16,464,399)
9,854,031
449,223,605
475,814,908
$
(13,878,685)
$
5,888,588
$
467,824,811
Depreciation expense was charged to functions/programs of the District as follows: 11 23 31 34 35 36 41 51 52
Governmental Activities: Instruction School Leadership Instructional Leadership Student Transportation Food Service Extracurricular Activities General Administration Facilities Maintenance and Operations Security and Monitoring Services Total Depreciation Expense-Governmental Activities
$
$
13,550,091 535,560 2,654 592,180 327,206 2,527,901 104,157 459,366 3,325 18,102,440
E. Long-term Liabilities The District’s long-term liabilities consist of bond indebtedness, workers’ compensation claims, and compensated absences. The current requirements for general obligation bonds principal and interest expenditures are accounted for in the debt service fund. The current requirements for workers’ compensation claims and compensated absences are accounted for in the general fund. Changes in Long-term Liabilities Long-term liability activity for the year ended August 31, 2014, was as follows: Beginning Balance Governmental Activities: Bonds Payable: General Obligation Bonds Deferred Amounts: For Issuance Premiums (CIB's) For Issuance Discount (CIB's) For Accreted Interest (CAB's) Total Bonds Payable, net Workers' Compensation Compensated Absences Governmental Activity Long-term Liabilities
(Provision Adjustment)
Reductions
Ending Balance
Due Within One Year
$
476,159,830 $
- $
(13,195,438) $
462,964,392 $
14,873,490
$
12,613,342 (701,483) 38,062,109 526,133,798 2,381,466 186,404 528,701,668 $
6,895,081 6,895,081 (660,833) 39,910 6,274,158 $
(1,000,211) 33,442 (7,849,562) (22,011,769) (561,353) (26,985) (22,600,107) $
11,613,131 (668,041) 37,107,628 511,017,110 1,159,280 199,329 512,375,719 $
14,873,490 1,159,280 199,329 16,232,099
42
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT NOTES TO THE FINANCIAL STATEMENTS AUGUST 31, 2014
General Obligation Bonds The District issues general obligation bonds to provide funds for the construction and equipment of school buildings (BLDG) and to refund general obligation bonds (REF). General obligation bonds are direct obligations and pledge the full faith and credit of the District. These bonds are issued as 2-31 year current interest (CIB) or capital appreciation bonds (CAB) with various amounts of principal maturing each year. Rates may be fixed or variable. The following is a summary of changes in the general obligation bonds for the fiscal year: Series 1994 (REF)(CAB) 1996 (REF)(CAB) 2000A (REF)(CAB) 2002 (REF)(CAB) 2004A (REF) 2004A (REF)(CAB) 2005 (REF) 2005 (REF)(CAB) 2006 (REF) 2007 (REF) 2007 (REF)(CAB) 2007A (BLDG) 2008 (BLDG) 2009 (REF)(CAB) 2011 (BLDG) 2011 (REF) 2012 (BLDG) 2013 (BLDG) 2013 (REF) 2013 (REF)(CAB) Totals
Interest Rate - $ 3.00-3.8% 5.00% 4.00-4.25% 4.00-4.50% 4.00-5.00% 2.00-4.77% 2.00-4.00% 2.00-5.00% 2.00-3.00% 2.00-4.00% 0.23-2.04% -
Original Issue 110,000 52,236,410 24,588,398 1,175,884 21,950,000 636,630 17,080,000 249,623 9,105,000 45,725,000 1,495,000 157,795,000 60,465,000 71,335,393 45,000,000 55,805,000 8,900,000 13,945,000 19,245,000 195,000
Maturity Date 2014 2014 2018 2017 2020 2015 2024 2021 2024 2031 2016 2037 2037 2040 2029 2026 2029 2030 2020 2015
$
$
43
Beginning Balance 55,000 85,426 8,259,815 85,000 25,000 636,630 17,080,000 249,623 8,970,000 42,450,000 1,495,000 138,045,000 57,590,000 66,368,336 37,810,000 54,670,000 8,900,000 13,945,000 19,245,000 195,000 476,159,830
Additions $
$
-
Reductions $ (55,000) $ (85,426) (2,097,996) (25,000) (25,000) (25,000) (460,000) (1,930,000) (935,000) (2,322,016) (4,030,000) (450,000) (630,000) (125,000) $ (13,195,438) $
Ending Balance 6,161,819 60,000 636,630 17,080,000 249,623 8,945,000 42,450,000 1,035,000 136,115,000 56,655,000 64,046,320 33,780,000 54,670,000 8,450,000 13,315,000 19,120,000 195,000 462,964,392
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT NOTES TO THE FINANCIAL STATEMENTS AUGUST 31, 2014
Annual debt service requirements to maturity for general obligation bonds are as follows: Year Ending August 31 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Totals
$
$
Principal Value 14,873,490 16,612,113 16,371,085 18,788,836 19,995,210 20,452,304 21,175,250 22,139,980 22,763,393 23,470,391 24,799,186 23,279,495 16,829,435 16,705,556 16,496,994 17,201,623 25,490,210 20,732,962 14,656,036 18,555,273 19,216,136 19,925,105 20,547,077 4,217,070 3,957,271 3,712,911 462,964,392
$
$
Interest 16,680,829 16,410,344 16,079,594 15,639,972 15,072,781 14,427,827 13,646,775 12,755,462 11,879,412 10,928,869 9,849,310 8,832,500 8,094,181 7,530,681 6,963,381 6,358,994 5,455,319 4,409,500 3,674,000 3,007,250 2,199,500 1,350,250 457,500 211,704,231
Total Requirements $ 31,554,319 33,022,457 32,450,679 34,428,808 35,067,991 34,880,131 34,822,025 34,895,442 34,642,805 34,399,260 34,648,496 32,111,995 24,923,616 24,236,237 23,460,375 23,560,617 30,945,529 25,142,462 18,330,036 21,562,523 21,415,636 21,275,355 21,004,577 4,217,070 3,957,271 3,712,911 $ 674,668,623
As of August 31, 2014, the District did not have any authorized, but unissued bonds. Operating Leases The District is committed under various noncancelable operating leases, primarily personal computers, servers, and networking equipment (principally in the General Fund). Future minimum operating lease commitments are as follows: Year Ending August 31 2015 Totals
$ $
Amount 705,741 705,741
F. Fund Balance Other committed fund balance includes the following commitments of funds: Nonmajor and Other Funds Other Governmental Funds - Campus Activity Funds Other Governmental Funds - Crime Stopper Funds Other Governmental Funds - Scholarship Fund Total Other Committed Fund Balance
$
$
44
930,276 1,875 10,000 942,151
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT NOTES TO THE FINANCIAL STATEMENTS AUGUST 31, 2014
G. Revenues from Local and Intermediate Sources During the current year, revenues from local and intermediate sources consisted of the following:
Property Taxes Investment Income Food Sales Extracurricular Student Activities Rental Income Miscellaneous Total
$
$
Debt Service 20,725,188 $ 14,063 20,739,251 $
General 50,979,479 $ 55,096 289,505 96,894 3,174,118 54,595,092 $
Other Governmental Funds - $ - $ 583 2,838,802 56,543 7,534 1,025,129 8,117 $ 3,920,474 $
Capital Projects
Totals 71,704,667 69,742 2,838,802 289,505 153,437 4,206,781 79,262,934
IV. Other Information A. Risk Management Property/Liability The District is exposed to various risks of loss related to property/liability losses for which the District carries commercial insurance and participates in the Texas Association of Public Schools Property and Liability Fund (Fund) for property, liability, vehicle coverage, and crime. The Fund was created to formulate, develop and administer a program of modified self-funding for the Fund’s membership, obtain competitive costs for coverages and develop a comprehensive loss control program. The District pays an annual premium to the Fund for its liability coverage and transfers the risk of loss to the Fund. The District’s agreement with the Fund provides that the Fund will be self-sustaining through member premiums and may provide, through commercial companies, reinsurance contracts. In the event that the Fund was to discontinue operations, the member districts would be responsible for any eligible claims not funded by the Fund. In addition, there were no significant reductions in coverage in the past fiscal year and there were no settlements exceeding insurance coverage for each of the past three fiscal years. Health Care Coverage During the year ended August 31, 2014, employees of the District were covered by a health insurance plan. The District paid premiums of $301 per month per employee to the plan and employees, at their option, authorized payroll withholdings to pay premiums for dependents. All premiums were paid to a licensed insurer. The contract between the District and the licensed insurer is renewable annually and terms of coverage and premium costs are included in the contractual provisions. Workers’ Compensation During the year ended August 31, 2014, Grand Prairie ISD met its statutory workers’ compensation obligations by participating as a self-funded member of the TASB Risk Management Fund (the Fund). The Fund was created and is operated under the provisions of the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code and Chapter 504, Texas Labor Code. All members participating in the Fund execute Interlocal Agreements that define the responsibilities of the parties. As a self-funded member of the TASB Risk Management Fund, Grand Prairie ISD is solely responsible for all claim costs, both reported and unreported. Workers’ compensation liability is discounted at a rate of 3%. The Fund provides administrative services to its self-funded members including claims administration and customer service. Liabilities of the fund are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities also include an estimated amount for claims that have been incurred but not reported (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of inflation, recent claim settlement trends (including frequency and amount of pay-outs), and other economic and social factors. The estimate of the claims liability also includes amounts for incremental claim adjustment expenses related to specific claims and other nonincremental claims adjustment expenses regardless of whether allocated to specific claims. Estimated recoveries, for example for subrogation, are another component of the claims liability estimate. Workers’ compensation liability is discounted at a rate of 3%. An excess coverage insurance policy covers individual claims in excess of $1,000,000. Settlements have not exceeded coverages for each of the past 45
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT NOTES TO THE FINANCIAL STATEMENTS AUGUST 31, 2014
three fiscal years and there were no significant reductions in insurance coverage from the prior year. The workers’ compensation claims liability is presented at a discounted rate of 3% in the amount of $1,159,280. Changes in the balances of claims liabilities during the past two years are as follows:
Unpaid Claims, Beginning of Fiscal Year Incurred Claims, including incremental provision (adjustment) for IBNRs Claim Payments Unpaid Claims, End of Fiscal Year
Year Ended Year Ended 8/31/2014 8/31/2013 $ 2,381,466 $ 2,776,321 (660,833) 360,542 (561,353) (755,397) $ 1,159,280 $ 2,381,466
B. Litigation and Contingencies The District is a defendant in various lawsuits arising principally in the normal course of operations. In the opinion of the District’s management, the potential losses, after insurance coverage, on all allegations, claims, and lawsuits will not have a material effect on the District’s financial position, results of operations or liquidity. The District participates in a number of federal and state financial assistance programs. Although the District’s grant programs have been audited in accordance with the provisions of the Single Audit Act through August 31, 2014, these programs are subject to financial and compliance audits by the grantor agencies. The District is also subject to audit by the TEA of the attendance data upon which payments from the agency are based. These audits could result in questioned costs or refunds to be paid back to the granting agencies. C. Joint Ventures – Shared Service Agreement Irving Regional School Program for the Deaf: The District participates in the Regional Day School for the Deaf with Irving Independent School District acting as the fiscal agent and the District as a member district. The District’s portion of expenditures for the year ended August 31, 2014, totaled $198,250. The District does not account for the revenues or expenditures for this program and does not disclose them in these financial statements. The District neither has a joint ownership interest in capital assets purchased by the fiscal agent, Irving Independent School District, nor does the District have a net equity interest in the fiscal agent. The fiscal agent is neither accumulating significant financial resources nor fiscal contingencies that would give rise to a future additional benefit or burden to the District. The fiscal agent manager is responsible for all financial activities of the Shared Service Arrangements. D. Defined Benefit Pension Plan Pension Plan for Employees Participating in Teacher Retirement System Plan Description. The Grand Prairie Independent School District contributes to the Teacher Retirement System of Texas (TRS), a cost-sharing multiple employer defined benefit pension plan. TRS administers retirement and disability annuities, and death and survivor benefits to employees and beneficiaries of employees of the public school systems of Texas. It operates primarily under the provisions of the Texas Constitution, Article XVI, Sec. 67, and Texas Government Code, Title 8, Subtitle C. TRS also administers proportional retirement benefits and service credit transfer under Texas Government Code, Title 8, Chapter 803 and 805, respectively. The Texas state legislature has the authority to establish and amend benefit provisions of the pension plan and may, under certain circumstances, grant special authority to the TRS Board of Trustees. TRS issues a publicly available financial report that includes financial statements and required supplementary information for the defined benefit pension plan. That report may be obtained by downloading the report from the TRS Internet website, www.trs.state.tx.us, under the TRS Publications heading, by calling the TRS Communications Department at 1-800-223-8778, or by writing to the TRS Communications Department, 1000 Red River Street, Austin, Texas 78701. Funding Policy. Contribution requirements are not actuarially determined but are established and amended pursuant to the following state funding policy: (1) The state constitution requires the legislature to establish a member contribution rate of not less than 6.0% of the member’s annual compensation and a state contribution rate of not less than 6.0% and not more than 10% of the aggregate annual compensation of all members of the system during the fiscal year; (2) A state statute prohibits benefit improvements, if as a result of the particular action, the time required to amortize TRS’ unfunded actuarial liabilities would be increased to a period that exceeds 31 years, or, if the amortization period already exceeds 31 years, the period would be increased by such action.
46
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT NOTES TO THE FINANCIAL STATEMENTS AUGUST 31, 2014
Contributions. Contribution rates and contributions for fiscal years 2014-2012 are shown in the table below. These rates are set by the General Appropriations Act. In certain instances, the reporting district is required to make all or a portion of the state’s and/or member’s contribution and on the portion of the employees’ salaries that exceeded the statutory minimum. Contribution Rates and Contribution Amounts
Member Year 2014 2013 2012
Rate 6.4% 6.4% 6.4%
$ $ $
School District Statutory Minimum Amount $ 2,268,810 $ 1,900,019 $ 1,493,689
State Amount 9,993,859 9,390,706 8,868,601
Rate 6.800% 6.400% 6.000%
$ $ $
Amount 7,313,557 6,566,424 6,065,985
For the current fiscal year and each of the past two years, the District’s actual contributions were equal to 100 percent of the required contributions. The contributions made by the State are on behalf of the District and have been recorded in the governmental funds’ financial statements of the District as both state revenues and expenditures. These contributions are the legal responsibility of the State. E. School District Retiree Health Plan Plan Description. The Grand Prairie Independent School District contributes to the Texas Public School Retired Employees Group Insurance Program (TRS-Care), a cost-sharing multiple-employer defined benefit postemployment health care plan administered by the Teacher Retirement System of Texas. TRS-Care provides health care coverage for certain persons (and their dependents) who retired under the Teacher Retirement System of Texas. The statutory authority for the program is Texas Insurance Code, Chapter 1575. Section 1575.052 grants the TRS Board of Trustees the authority to establish and amend basic and optional group insurance coverage for participants. The Teacher Retirement System of Texas issues a publicly available financial report that includes financial statements and required supplementary information for TRSCare. That report may be obtained by visiting the TRS Web site at www.trs.state.tx.us under the TRS Publications heading, by calling the TRS Communications Department at 1-800-223-8778, or by writing to the Communications Department of the Teacher Retirement System of Texas at 1000 Red River Street, Austin, Texas 78701. Funding Policy. Contribution requirements are not actuarially determined but are legally established each biennium by the Texas Legislature. Texas Insurance Code, Sections 1575.202, 203, and 204 establish state, active employee and public school contributions, respectively. Funding for free basic coverage is provided by the program based upon public school district payroll. Per Texas Insurance Code, Chapter 1575, the public school contribution may not be less than 0.25% or greater than 0.75% of the salary of each active employee of the public school. Funding for optional coverage is provided by those participants selecting the optional coverage. Contribution rates and amounts are shown in the table below for fiscal years 2014-2012. Contribution Rates
Year 2014 2013 2012
Active Member Rate Amount 0.65% $ 1,015,001 0.65% $ 953,744 0.65% $ 900,717
State Rate 1.00% 0.50% 1.00%
$ $ $
Amount 1,428,201 667,953 1,259,909
Rate 0.55% 0.55% 0.55%
School District Amount $ 858,847 $ 807,014 $ 762,145
In addition, the State of Texas contributed $419,445, $559,504 and $647,340 in 2014, 2013, and 2012, respectively, for on-behalf payments for Medicare Part D and Early Retiree Reinsurance Program. For the current fiscal year and each of the past two years, the District’s actual contributions were equal to 100 percent of the required contributions. The contributions made by the State are on behalf of the District and have been recorded in the governmental funds’ financial statements of the District as both state revenues and expenditures. These contributions are the legal responsibility of the State.
47
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT NOTES TO THE FINANCIAL STATEMENTS AUGUST 31, 2014
F. Nonmonetary Transactions During 2014, the District received textbooks purchased by the State of Texas for the benefit of the District for a purchase price of $393,752. The District receives the textbooks as part of state funding for textbook allotment. The textbooks have been recorded in the amount of $393,752 in a special revenue fund as both state revenues and expenditures, which represents the amount of consideration given by the State of Texas.
48
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS
49
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50
Non-Major Governmental Funds Special Revenue Funds
The Special Revenue Funds are used to account for financial resources restricted to or committed for specific purposes by a grantor. These funds may be locally, state, or federally funded. Programs accounted for in the Special Revenue Funds include: ESEA, Title X, Part C – Education for the Homeless Children and Youth This fund classification is used to account, on a project basis, for funds granted for a variety of staff development and supplemental services, including in-service training, counseling, psychological services and tutoring. ESEA, Title I, Part A – Improving Basic Programs This fund classification is used to account, on a project basis, for funds to enable schools to provide opportunities for children served to acquire the knowledge and skills contained in the challenging State content standards and to meet the challenging State performance standards developed for all children. ESEA, Title I, Part C – Education of Migratory Children This fund classification is used to account on a project basis for funds granted for programs benefiting children of migrant agriculture or agriculture-related workers and children of migrant fishermen. IDEA – Part B, Formula This fund classification is used to account, on a project basis, for funds granted to operate educational programs for children with disabilities. IDEA – Part B, Preschool This fund classification is used to account, on a project basis, for funds granted for preschool children with disabilities. National School Breakfast and Lunch Program This fund classification is used for programs using federal reimbursement revenues originating from the United States Department of Agriculture (USDA). The funds are used exclusively for allowable child nutrition program purposes. Career and Technical – Basic Grant This fund classification is used to account, on a project basis, for funds granted to provide Career and Technical education to develop new and/or improve Career and Technical education programs for paid and unpaid employment. ESEA, Title II, Part A – Teacher and Principal Training and Recruiting This fund classification is used to provide financial assistance to increase student academic achievement through improving teacher and principal quality and increase the number of highly qualified teachers in classrooms and highly qualified principals and assistant principals in schools; and, to hold schools accountable for improving student academic achievement. Public Charter Schools – Start-Up This fund classification is used to account on a project basis, for funds granted to public charter schools for planning, program design, implementation, assisting other schools and/or to disseminate information about the charter school. ESEA, Title III, Part A – English Language Acquisition and Language Enhancement This fund classification is used to account, on a project basis, for funds granted to improve the education of limited English proficient children, by assisting the children to learn English and meet challenging State academic content and student academic achievement standards. Texas Title I Priority Schools Program This fund classification is used to account, on a project basis, for funds awarded to school districts to assist the lowest-achieving schools across the state of Texas. Campuses are eligible if identified as persistently lowestachieving or have met other eligibility criteria defined in the federal guidelines. 51
Teacher Incentive Fund, Year 2 This fund classification is used to account, on a project basis, to improve student achievement in high need schools through a comprehensive strategy aimed at rewarding teachers and principals for effectiveness with performance-based differentiated compensations. Additional goals include recruiting and retaining high quality teachers and principals in high need schools. National Institution for Excellence in Teaching This fund classification is used to account, on a project basis, to unitize TAP evaluation and professional development content and processes using video capture and feedback by regional Master Teachers to TAP Leadership team. Also for participation in the Literacy, STEM, or Leadership Certificate Programs with Texas Tech University and for placement and support for students in completing their clinical field experience. Improving Academic Achievement (Summer School LEP) This fund classification is used to account for funds to provide summer school instruction for Limited English Proficient (LEP) students. Indian Education Act Title V This fund classification is used to account for funds on a project basis for funds granted for programs benefiting children of native Indians from the Office of Indian Education. State Supplemental Visually Impaired (SSVI) This fund classification is used to account for funds to support the education needs of students who have visual impairments. Advanced Placement Incentives This fund classification is used to account, on a project basis, for funds awarded to school districts under the Texas Advanced Placement Award Incentive Program, Chapter 28, Subchapter C, TEC, and is used to reward students, teachers, and campuses for high achievement. Campuses are awarded money for each student who scores three or above on an AP examination or four or above on an IB examination. Texas High School Project This fund classification is used to account, on a project basis, for funds granted for schools to implement programs to support the improvement of high school graduation rates and post-secondary readiness. State Textbook Fund This fund classification is used to account, on a project basis, for state funds awarded to school districts under the textbook allotment. One Community One Child This fund classification is used to account, on a project basis, for family engagement activities. These funds flow from Region 10 to the LEA’s. State Funded Grants This fund classification is used to account for state funds received for various state grants not specified above. Campus Activity Funds This fund classification is used to account for transactions related to a campus or principals’ activity funds. Crime Stopper This fund classification is used to account for funds received through donations which flow through the City of Grand Prairie and are used to reward students for any tips or information regarding criminal activity. Scholarship Fund This fund classification is used to account for funds received through donations for the purpose of college scholarships for graduating seniors of the district. Meadows Foundation Grant This fund classification is used to account, on a project basis, for campuses that submit and get approved charitable projects. The funds are donated from the Meadows Foundation.
52
Camp Invention Program This fund classification is used to account, on a project basis, for Camp Invention, a STEM summer camp to ensure student success through engaging learning experiences, collaborative leadership, and a focus on maximizing student achievement. DORR Foundation Ozone North and South This fund classification is used to account, on a project basis, for Young Men's Leadership Academy Middle school. It encompasses two aspects, a biological component and a technological constituent. The biological component involves planting a bio-indicator garden with ozone sensitive plants can observe. The technological constituent comprises gathering real time ozone date near the garden. Foundation for the Education of Young Women This fund classification is used to account, on a project basis, a college-preparatory academy for young women in grades six through twelve. These funds are to assist the school to nurture the intellectual curiosity and creativity of young women and to address their developmental needs. Its mission is to cultivate dynamic, participatory learning, enabling students to experience great academic success at many levels, especially in the fields of math, science and technology. Metrotex Association of Realtors This fund classification is used to account, on a project basis, for campuses with projects for the enrichment of students in our schools and is intended for projects developed by a student organization.
53
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS AUGUST 31, 2014
Data Control Codes 1110 1240 1260 1300 1410 1000
ASSETS: Cash and Cash Equivalents Due from Other Governments Due from Other Funds Inventories Prepaid Items Total Assets
$
$
LIABILITIES: Current Liabilities: 2170 Due to Other Funds 2300 Unearned Revenue 2000 Total Liabilities
3410 3450 3545 3000 4000
$
FUND BALANCES: Nonspendable: Inventories Restricted: Grant Funds Committed: Other Total Fund Balances Total Liabilities and Fund Balances
$
54
206
211
ESEA Title X Part C Homeless
ESEA Title I Part A Improving Basic Programs
25,016 25,016
25,016 25,016
$
$
$
638,918 638,918
638,918 638,918
-
-
-
-
-
-
25,016
$
638,918
EXHIBIT E-1
Page 1 of 4
212
224
ESEA Title I Part C Migratory Children $
$
$
$
IDEA Part B Formula
813 813
813 813
$
$
$
387,050 387,050
387,050 387,050
$
$
$
225
240
IDEA Part B Preschool
National School Breakfast and Lunch Program
5,713 5,713
$
$
5,713 5,713
$
1,437,765 346,012 2,796,365 564,189 5,144,331
749,433 749,433
$
$
$
244
255
Career and Technical Basic Grant
ESEA Title II Part A Teacher & Principal Training & Recruiting
111,270 111,270
111,270 111,270
$
$
$
58,926 58,926
58,926 58,926
-
-
-
564,189
-
-
-
-
-
3,830,709
-
-
-
-
-
4,394,898
-
-
813
$
387,050
$
5,713
$
5,144,331
$
111,270
$
58,926
Continued
55
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS AUGUST 31, 2014
Data Control Codes 1110 1240 1260 1300 1410 1000
ASSETS: Cash and Cash Equivalents Due from Other Governments Due from Other Funds Inventories Prepaid Items Total Assets
$
$
LIABILITIES: Current Liabilities: 2170 Due to Other Funds 2300 Unearned Revenue 2000 Total Liabilities
3410 3450 3545 3000 4000
$
FUND BALANCES: Nonspendable: Inventories Restricted: Grant Funds Committed: Other Total Fund Balances Total Liabilities and Fund Balances
$
56
258
263
Public Charter Schools StartUp
ESEA Title III Part A English Language Acquisition and Enhancement
41,019 41,019
41,019 41,019
$
$
$
50,193 50,193
50,193 50,193
-
-
-
-
-
-
41,019
$
50,193
EXHIBIT E-1
Page 2 of 4
276
Texas Title I Priority Schools $
$
$
$
66,058 66,058
66,058 66,058
$
$
$
286
287
288
289
385
Teacher Incentive Fund, Year 2
National Institution for Excellence in Teaching
Improving Academic Achievement (Summer School LEP)
Indian Education Act Title V
Supplemental Visually Impaired
238,353 238,353
238,353 238,353
$
$
$
5,445 5,445
$
$
5,445 5,445
$
-
-
$
$
$
5,778 5,778
5,778 5,778
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
66,058
$
238,353
$
5,445
$
-
$
5,778
$
-
Continued
57
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS AUGUST 31, 2014
Data Control Codes 1110 1240 1260 1300 1410 1000
ASSETS: Cash and Cash Equivalents Due from Other Governments Due from Other Funds Inventories Prepaid Items Total Assets
$
$
LIABILITIES: Current Liabilities: 2170 Due to Other Funds 2300 Unearned Revenue 2000 Total Liabilities
3410 3450 3545 3000 4000
$
FUND BALANCES: Nonspendable: Inventories Restricted: Grant Funds Committed: Other Total Fund Balances Total Liabilities and Fund Balances
$
58
397
409
Advanced Placement Incentives
Texas High School Project
7,260 7,260
7,260 7,260
$
$
$
26,336 26,336
26,336 26,336
-
-
-
-
-
-
7,260
$
26,336
EXHIBIT E-1
Page 3 of 4
$
$
$
$
410
427
429
461
477
State Textbook Fund
One Community One Child
State Funded Grants
Campus Activity Funds
Crime Stopper
1,154,311 1,154,311
1,154,311 1,154,311
$
$
$
-
-
$
7,850 7,850
$
$
7,502 348 7,850
$
$
$
944,965 944,965
14,689 14,689
$
$
$
1,875 1,875
-
-
-
-
-
-
-
-
-
-
-
-
-
-
930,276 930,276
1,875 1,875
1,154,311
$
-
$
7,850
$
944,965
$
1,875
Continued
59
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS AUGUST 31, 2014
Data Control Codes 1110 1240 1260 1300 1410 1000
ASSETS: Cash and Cash Equivalents Due from Other Governments Due from Other Funds Inventories Prepaid Items Total Assets
$
$
LIABILITIES: Current Liabilities: 2170 Due to Other Funds 2300 Unearned Revenue 2000 Total Liabilities
3410 3450 3545 3000 4000
$
FUND BALANCES: Nonspendable: Inventories Restricted: Grant Funds Committed: Other Total Fund Balances Total Liabilities and Fund Balances
$
60
478
480
Scholarship Fund
Meadows Foundation Grant
10,000 10,000
-
$
$
$
-
-
-
-
-
-
10,000 10,000
-
10,000
$
-
EXHIBIT E-1
Page 4 of 4
$
$
$
$
484
489
490
495
Camp Invention Program
DORR Foundation Ozone North and South
Foundation for the Education of Young Women
Metrotex Association of Realtors
2,874 2,874
2,874 2,874
$
$
$
501 501
501 501
$
3,182 3,182
$
$
3,182 3,182
$
$
$
109 109
109 109
Total Nonmajor Governmental Funds $
$
$
2,434,867 1,988,414 2,796,365 564,189 1,154,311 8,938,146
3,560,487 40,610 3,601,097
-
-
-
-
564,189
-
-
-
-
3,830,709
-
-
-
-
942,151 5,337,049
2,874
$
501
$
3,182
61
$
109
$
8,938,146
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS FOR THE YEAR ENDED AUGUST 31, 2014 206
ESEA Title X Part C Homeless
Data Control Codes REVENUES: 5700 Local and Intermediate Sources 5800 State Program Revenues 5900 Federal Program Revenues 5020 Total Revenues
0011 0012 0013 0021 0023 0031 0032 0033 0034 0035 0041 0051 0053 0061 0091 0093 6030
211 ESEA Title I Part A Improving Basic Programs
$
EXPENDITURES: Current: Instruction Instructional Resources and Media Services Curriculum and Staff Development Instructional Leadership School Leadership Guidance, Counseling, and Evaluation Services Social Work Services Health Services Student Transportation Food Service General Administration Plant Maintenance and Operations Data Processing Services Community Services Intergovernmental: Contracted Instructional Services Between Schools Payments to Shared Services Arrangements Total Expenditures
1200 Net Change in Fund Balances 0100 Fund Balances - Beginning 3000 Fund Balances - Ending
$
62
103,854 103,854
$
6,216,522 6,216,522
103,854 -
1,774,838 14,801 3,146,711 177,578 11,303 675 349,739 26 32,776 20,147 41,004 646,924
103,854
6,216,522
-
-
-
$
-
EXHIBIT E-2
Page 1 of 4
$
$
212
224
225
ESEA Title I Part C Migratory Children
IDEA Part B Formula
IDEA Part B Preschool
15,569 15,569
$
4,681,676 4,681,676
$
240 National School Breakfast and Lunch Program
64,399 64,399
$
2,895,344 87,432 13,409,535 16,392,311
244
255 ESEA Title II Part A Teacher & Principal Training & Recruiting
Career and Technical Basic Grant $
331,416 331,416
$
516,410 516,410
1,825 13,744
2,185,764 5,000 220,706 1,680,010 366,784 25,162 -
64,399 -
15,471,847 308,167 -
93,771 237,645 -
512,660 3,750 -
15,569
198,250 4,681,676
64,399
15,780,014
331,416
516,410
-
-
-
612,297
-
-
-
$
-
$
-
$
3,782,601 4,394,898
$
-
$
-
Continued
63
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS FOR THE YEAR ENDED AUGUST 31, 2014 258
Data Control Codes
Public Charter Schools StartUp
REVENUES: 5700 Local and Intermediate Sources 5800 State Program Revenues 5900 Federal Program Revenues 5020 Total Revenues
0011 0012 0013 0021 0023 0031 0032 0033 0034 0035 0041 0051 0053 0061 0091 0093 6030
263 ESEA Title III Part A English Language Acquisition and Enhancement
$
EXPENDITURES: Current: Instruction Instructional Resources and Media Services Curriculum and Staff Development Instructional Leadership School Leadership Guidance, Counseling, and Evaluation Services Social Work Services Health Services Student Transportation Food Service General Administration Plant Maintenance and Operations Data Processing Services Community Services Intergovernmental: Contracted Instructional Services Between Schools Payments to Shared Services Arrangements Total Expenditures
1200 Net Change in Fund Balances 0100 Fund Balances - Beginning 3000 Fund Balances - Ending
$
64
291,454 291,454
$
905,520 905,520
244,876 37,898 533 6,762 1,385 -
472,232 407,603 9,712 9,997 2,613 3,363
291,454
905,520
-
-
-
$
-
EXHIBIT E-2
Page 2 of 4
$
$
276
286
287
Texas Title I Priority Schools
Teacher Incentive Fund, Year 2
National Institution for Excellence in Teaching
1,635,686 1,635,686
$
970,622 970,622
$
288 Improving Academic Achievement (Summer School LEP)
106,933 106,933
$
15,583 15,583
$
289
385
Indian Education Act Title V
Supplemental Visually Impaired
16,190 16,190
$
4,247 4,247
581,910 972 664,284 224,816 68,442 8,287 57,096 1,279 349 252 27,999
781,492 149,694 32,247 7,189 -
90,730 16,203 -
15,583 -
4,666 269 11,255
4,140 107 -
1,635,686
970,622
106,933
15,583
16,190
4,247
-
-
-
-
-
-
-
$
-
$
-
$
-
$
-
$
-
Continued
65
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS FOR THE YEAR ENDED AUGUST 31, 2014
Data Control Codes REVENUES: 5700 Local and Intermediate Sources 5800 State Program Revenues 5900 Federal Program Revenues 5020 Total Revenues
0011 0012 0013 0021 0023 0031 0032 0033 0034 0035 0041 0051 0053 0061 0091 0093 6030
$
EXPENDITURES: Current: Instruction Instructional Resources and Media Services Curriculum and Staff Development Instructional Leadership School Leadership Guidance, Counseling, and Evaluation Services Social Work Services Health Services Student Transportation Food Service General Administration Plant Maintenance and Operations Data Processing Services Community Services Intergovernmental: Contracted Instructional Services Between Schools Payments to Shared Services Arrangements Total Expenditures
1200 Net Change in Fund Balances 0100 Fund Balances - Beginning 3000 Fund Balances - Ending
$
66
397
409
Advanced Placement Incentives
Texas High School Project
25,840 25,840
$
6,808 6,808
25,840 -
6,808 -
25,840
6,808
-
-
-
$
-
EXHIBIT E-2
Page 3 of 4
$
$
410
427
429
461
477
State Textbook Fund
One Community One Child
State Funded Grants
Campus Activity Funds
Crime Stopper
3,816,745 3,816,745
$
9,860 9,860
$
7,850 7,850
$
993,821 993,821
$
-
3,816,745 -
9,860
6,200 1,650 -
100,684 8,555 4,305 589,206 1,166
-
3,816,745
9,860
7,850
703,916
-
-
-
-
289,905
-
-
$
-
-
$
$
640,371 930,276
$
1,875 1,875
Continued
67
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS FOR THE YEAR ENDED AUGUST 31, 2014
Data Control Codes REVENUES: 5700 Local and Intermediate Sources 5800 State Program Revenues 5900 Federal Program Revenues 5020 Total Revenues
0011 0012 0013 0021 0023 0031 0032 0033 0034 0035 0041 0051 0053 0061 0091 0093 6030
$
EXPENDITURES: Current: Instruction Instructional Resources and Media Services Curriculum and Staff Development Instructional Leadership School Leadership Guidance, Counseling, and Evaluation Services Social Work Services Health Services Student Transportation Food Service General Administration Plant Maintenance and Operations Data Processing Services Community Services Intergovernmental: Contracted Instructional Services Between Schools Payments to Shared Services Arrangements Total Expenditures
1200 Net Change in Fund Balances 0100 Fund Balances - Beginning 3000 Fund Balances - Ending
$
68
478
480
Scholarship Fund
Meadows Foundation Grant -
$
1,373 1,373
-
1,373
-
1,373
-
-
10,000 10,000
$
-
EXHIBIT E-2
Page 4 of 4
$
$
484
489
490
495
Camp Invention Program
DORR Foundation Ozone North and South
Foundation for the Education of Young Women
Metrotex Association of Realtors
6,059 6,059
$
5,060 5,060
$
16,818 16,818
$
1,999 1,999
Total Nonmajor Governmental Funds $
3,920,474 3,958,782 29,281,369 37,160,625
6,059 -
5,060 -
11,584 105 5,129 -
1,999 -
10,265,165 24,328 4,972,469 637,650 723,462 1,933,131 510,689 1,305 399,909 15,471,847 30,201 308,167 66,166 715,684
6,059
5,060
16,818
1,999
198,250 36,258,423
-
-
-
-
902,202
-
$
-
-
$
69
$
-
$
4,434,847 5,337,049
(This page was intentionally left blank)
70
Fiduciary Fund Agency Fund
The District’s agency fund is used to account for assets held by the District as an agent for student organizations. These funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations.
71
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT
EXHIBIT F-1
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUND FOR THE YEAR ENDED AUGUST 31, 2014 AGENCY FUND: Beginning Balance 9/1/13
Data Control Codes ASSETS: 1110 Cash and Cash Equivalents 1000 Total Assets
2170 2190 2000
LIABILITIES: Due to Other Funds Due to Student Groups Total Liabilities
Additions
Ending Balance 8/31/14
Deductions
$ $
674,548 674,548
$ $
943,163 943,163
$ $
1,047,111 1,047,111
$ $
570,600 570,600
$
5,609 668,939 674,548
$
943,163 943,163
$
1,047,111 1,047,111
$
5,609 564,991 570,600
$
72
$
$
$
Supplementary Information Compliance Schedules
Compliance schedules are required by Texas Education Agency and are not required disclosures in the Comprehensive Annual Financial Report.
73
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT SCHEDULE OF DELINQUENT TAXES RECEIVABLE FOR THE YEAR ENDED AUGUST 31, 2014 1 Year Ended August 31
2
3 Actual Taxable Value For School Tax Purposes
Tax Rates Maintenance Debt Service
2005 and Prior Years
$
Various
$
Various
$
Various
2006
1.4900
0.2686
4,048,510,651
2007
1.3611
0.2686
4,330,790,557
2008
1.0400
0.4250
4,741,559,318
2009
1.0400
0.4250
5,982,899,701
2010
1.0400
0.4250
4,797,819,113
2011
1.0400
0.4250
4,784,353,678
2012
1.0400
0.4250
4,734,829,420
2013
1.0400
0.4250
4,598,635,222
2014 (School Year Audit)
1.0400
0.4250
4,801,502,799
1000 Totals 9000 - Portion of Row 1000 for Taxes Paid into Tax Increment Zone Under Chapter 311, Tax Code
74
EXHIBIT G-1
10 Beginning Balance 9/1/13 $
$
20 Current Year's Total Levy
789,813
$
-
$
31
32
Maintenance Collections
Debt Service Collections
13,358
$
2,636
40 Entire Year's Adjustments $
(169,082)
50 Ending Balance 8/31/14 $
604,737
126,347
-
4,126
743
(24,218)
97,260
147,167
-
4,959
978
(37,685)
103,545
152,674
-
6,147
2,512
(21,841)
122,174
218,476
-
11,133
4,550
(18,073)
184,720
364,887
-
23,019
9,406
(2,836)
329,626
406,776
-
43,765
17,885
(23,356)
321,770
690,960
-
42,079
17,195
(253,046)
378,640
939,762
-
262,528
107,283
(54,553)
515,398
-
70,342,016
49,171,935
20,094,301
(3,034)
1,072,746
3,836,862
$
70,342,016
$
49,583,049
$
20,257,489
$
2,255,114
$
718,674
75
$
(607,724)
$
3,730,616
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT
EXHIBIT G-2
NATIONAL SCHOOL BREAKFAST AND LUNCH PROGRAM BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED AUGUST 31, 2014 1 Data Control Codes 5700 5800 5900 5020
6030
3
Budgeted Amounts Original Final REVENUES: Local and Intermediate Sources State Program Revenues Federal Program Revenues Total Revenues
$
EXPENDITURES: Current: Support Services - Student (Pupil): 0035 Food Service Total Support Services - Student (Pupil)
0051
2
2,828,486 87,000 12,871,077 15,786,563
2,895,344 87,432 13,409,535 16,392,311
$
66,858 432 538,458 605,748
15,471,847 15,471,847
738,716 738,716
-
308,167 308,167
308,167 308,167
-
15,786,563
16,518,730
15,780,014
738,716
612,297
1,344,464
-
$
$
16,210,563 16,210,563
1200 Net Change in Fund Balances 0100 Fund Balance - Beginning 3000 Fund Balance - Ending
2,828,486 87,000 12,871,077 15,786,563
Actual
15,786,563 15,786,563
Support Services - Nonstudent Based Plant Maintenance and Operations Total Support Services - Nonstudent Based Total Expenditures
$
Variance with Final Budget Positive (Negative)
3,782,601 3,782,601
76
(732,167)
$
3,782,601 3,050,434
$
3,782,601 4,394,898
$
1,344,464
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT
EXHIBIT G-3
DEBT SERVICE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED AUGUST 31, 2014 1 Data Control Codes $
EXPENDITURES: Debt Service: 0071 Principal on Long-term Debt 0072 Interest on Long-term Debt 0073 Issuance Costs and Fees Total Debt Service
6030
3
Budgeted Amounts Original Final
REVENUES: 5700 Local and Intermediate Sources 5800 State Program Revenues 5020 Total Revenues
0097
2
19,921,217 17,060,172 36,981,389
1200 Net Change in Fund Balances 0100 Fund Balance - Beginning 3000 Fund Balance - Ending
$
20,097,287 17,649,411 37,746,698
Actual $
20,739,251 18,408,705 39,147,956
$
641,964 759,294 1,401,258
13,195,438 24,810,549 800,000 38,805,987
13,195,438 24,810,549 800,000 38,805,987
13,195,438 24,810,549 26,680 38,032,667
773,320 773,320
-
718,674 718,674
718,674 718,674
-
38,805,987
39,524,661
38,751,341
773,320
(1,824,598)
(1,777,963)
396,615
2,174,578
Intergovernmental: Payments to Tax Increment Fund Total Intergovernmental Charges Total Expenditures
$
Variance with Final Budget Positive (Negative)
12,790,510 10,965,912
77
$
12,790,510 11,012,547
$
12,790,510 13,187,125
$
2,174,578
(This page was intentionally left blank)
78
STATISTICAL SECTION
The statistical section of the Grand Prairie Independent School District’s Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the District’s economic condition and overall financial health. To assist financial statement users, the information contained within this section is categorized as follows: Contents
Page
Financial Trends
80-89
These schedules contain trend information to show how the District’s financial performance and position have changed over time. Revenue Capacity
91-95
These schedules contain information to help assess the factors affecting the District’s most significant local revenue source, the property tax. Debt Capacity
96-98
These schedules present information to help assess the affordability of the District’s current debt burden and its ability to issue additional debt in the future. Demographic and Economic Information
99-103
These schedules provide demographic and economic indicators to help in understanding the environment in which the District operates and to facilitate in comparisons over time. Operating Information
104-121
These schedules provide information about the District’s operations and resources to assist in using the financial statement information to better understand and assess the District’s economic condition.
79
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) 2014 Governmental Activities: Net Investment in Capital Assets Restricted Unrestricted Total Governmental Activities Net Position Business-type Activities: Net Investment in Capital Assets Unrestricted Total Business-type Activities Net Position Primary Government: Net Investment in Capital Assets Restricted Unrestricted Total Primary Government Net Position
$
$
$ $
$
$
2013
3,311,636 3,830,709 35,316,746 42,459,091
-
$
$
$ $
3,311,636 $ 3,830,709 35,316,746 42,459,091 (1) $
2012
(1,477,387) 27,322,658 25,845,271
-
(1,477,387) 27,322,658 25,845,271
$
$
$ $
$
$
2011
(1,937,419) 29,626,071 27,688,652
-
(1,937,419) 29,626,071 27,688,652
$
$
68,895,551 (58,057,733) 10,837,818
$
-
$
$
$
68,895,551 (58,057,733) 10,837,818
Source: Grand Prairie ISD's Financial Records (1) Beginning net position increased as a result of increases in state and federal funding and property tax revenue as further noted in the management's discussion and analysis.
80
TABLE 1
2010 $
$
$ $
$
$
2009
60,274,523 (60,537,925) (263,402)
-
60,274,523 (60,537,925) (263,402)
$
$
$ $
$
$
11,130,616 9,534,847 (66,855,956) (46,190,493)
747,701 1,212,125 1,959,826
11,878,317 9,534,847 (65,643,831) (44,230,667)
2008 $
$
$ $
$
$
2007
7,748,905 5,847,209 (50,136,570) (36,540,456)
$
$
802,571 998,254 1,800,825
$ $
8,551,476 5,847,209 (49,138,316) (34,739,631)
$
$
81
4,954,716 4,292,704 (39,599,020) (30,351,600)
891,733 557,761 1,449,494
5,846,449 4,292,704 (39,041,259) (28,902,106)
2006 $
$
$ $
$
$
(6,388,785) 3,119,457 (36,698,759) (39,968,087)
990,461 (156,437) 834,024
(5,398,324) 3,119,457 (36,855,196) (39,134,063)
2005 $
$
$ $
$
$
(28,610,491) (17,449,877) (46,060,368)
1,110,814 (699,478) 411,336
(27,499,677) (18,129,355) (45,629,032)
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT CHANGES IN NET POSITION LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) 2014 Expenses: Governmental Activities: Instruction Instructional Resources and Media Services Curriculum and Staff Development Instructional Leadership School Leadership Guidance, Counseling, and Evaluation Services Social Work Services Health Services Student Transportation Food Service Extracurricular Activities General Administration Plant Maintenance and Operations Security and Monitoring Services Data Processing Services Community Services Interest on Long-Term Debt Issuance Costs and Fees Facilities Repair and Maintenance Pymts. Related to Shared Serv. Arrngmnts. Pymts. to Juvenile Justice Alt. Ed. Program Pymts. to Tax Increment Fund Other Intergovernmental Charges Total Governmental Activities Expenses Business-type Activities: Enterprise Fund - Nat'l. School Brkfst & Lunch Total Primary Government Expenses
$
144,213,958 2,798,237 6,491,607 3,775,342 15,298,020 10,721,647 744,198 2,876,703 4,599,538 15,241,786 5,454,029 5,868,930 18,994,898 1,691,952 3,404,841 4,250,713 23,531,684 26,680 7,081 198,250 65,892 2,973,788 273,248 273,503,022
2013
$
136,758,543 2,764,116 6,295,374 3,641,954 14,118,138 10,237,528 715,752 2,456,136 4,267,183 14,009,283 5,929,767 6,452,388 20,832,601 886,040 2,767,977 2,770,496 24,778,170 595,460 375,343 223,125 86,982 2,919,542 280,162 264,162,060
2012
$
126,213,019 2,597,450 5,722,171 3,177,293 14,284,628 9,751,608 681,870 2,715,087 3,780,221 12,597,959 5,644,132 4,652,733 20,242,255 892,431 2,532,381 2,207,584 23,480,781 623,575 215,000 127,338 2,896,669 283,765 245,319,950
2011
$
131,540,831 3,495,058 3,930,432 3,924,656 12,862,024 10,430,569 795,430 2,681,263 3,639,838 12,948,004 6,618,071 5,507,453 23,116,198 1,001,951 2,558,252 2,144,967 24,840,682 202,620 206,047 118,500 78,318 3,046,048 275,696 255,962,908
273,503,022
264,162,060
245,319,950
255,962,908
Program Revenues: Governmental Activities: Charges for Services: Instruction Instructional Resources and Media Services Instructional Leadership School Leadership Food Service Extracurricular Activities General Administration Plant Maintenance and Operations Other Activities Operating Grants and Contributions Total Primary Government Governmental Activities Program Revenues
1,157,040 12,078 6,078 831,868 2,838,802 289,505 153,437 1,646 61,056,172
885,470 741,558 3,017,766 358,871 155,089 53,440,159
864,527 615,198 2,684,836 622,251 54,298,985
496,801 691 2,619,226 285,393 76,523 125,687 70,967,139
66,346,626
58,598,913
59,085,797
74,571,460
Business-type Activities: Charges for Services Operating Grants and Contributions Total Primary Government Program Revenues
66,346,626
58,598,913
59,085,797
74,571,460
$ (207,156,396)
$ (205,563,147)
Net (Expense)/Revenue Total Primary Government Net Expense
82
$ (186,234,153)
$ (181,391,448)
TABLE 2 Page 1 of 2
2010
$
132,063,162 4,052,836 3,451,203 3,754,669 13,747,275 9,890,663 612,305 2,382,305 3,212,320 12,331,511 5,076,928 6,572,359 21,689,248 1,488,218 4,483,140 1,731,904 25,176,706 367,297 3,610,961 138,600 2,956,298 141,420 258,931,328
2009
$
134,734,094 4,381,340 2,910,124 3,471,206 13,504,474 9,971,390 537,522 2,415,797 3,440,411 25,743 4,071,809 5,250,739 20,972,863 2,036,584 5,164,942 1,183,476 20,271,769 228,976 340,185 147,847 2,792,439 237,853,730
2008
$
2007
124,663,439 3,906,975 2,632,100 3,242,408 11,995,583 9,865,270 679,750 2,212,821 3,284,195 16,391 3,809,660 3,881,661 32,225,486 1,618,934 5,599,063 1,265,468 20,889,048 548,957 405,952 190,584 2,245,987 235,179,732
$
113,016,795 3,777,742 2,392,268 3,120,413 10,236,169 8,749,722 532,402 1,863,512 2,635,942 9,315 3,836,268 3,988,249 17,595,860 934,642 3,358,426 1,023,937 13,323,028 383,403 68,629 284,864 1,467,880 192,599,466
2006
$
103,697,659 3,586,462 2,564,572 3,021,387 9,377,232 7,911,192 515,473 1,975,189 2,709,980 86,486 3,539,289 3,910,665 17,776,149 766,377 2,398,914 1,585,706 13,641,338 539,903 (366,360) 204,318 999,284 180,441,215
2005
$
100,995,757 3,815,083 2,509,902 3,029,340 9,385,319 7,475,411 498,670 1,741,381 2,420,353 89,190 3,511,089 3,890,508 18,792,569 1,006,908 2,351,063 1,175,630 12,485,003 524,262 199,947 720,158 176,617,543
747,701 259,679,029
11,803,138 249,656,868
10,671,741 245,851,473
9,309,751 201,909,217
8,964,378 189,405,593
8,735,143 185,352,686
283,940 3,146,005 793,723 111,436 64,360,802
102,812 789,188 125,121 100,658 36,747,449
167,727 834,616 129,480 85,676 36,632,692
129,198 834,959 203,451 79,515 33,650,098
115,316 795,266 234,132 66,641 35,171,562
128,688 761,566 235,395 58,352 29,511,376
68,695,906
37,865,228
37,850,191
34,897,221
36,382,917
30,695,377
68,695,906
3,645,902 8,316,237 49,827,367
3,438,214 7,584,858 48,873,263
3,173,415 6,751,806 44,822,442
3,222,428 6,164,638 45,769,983
3,176,318 5,371,877 39,243,572
$ (196,978,210)
$ (157,086,775)
$ (190,983,123)
$ (199,829,501)
$ (143,635,610)
$ (146,109,114)
Continued 83
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT CHANGES IN NET POSITION LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) 2014 General Revenues and Other Changes in Net Position: Governmental Activities: Property Taxes, Levied for General Purposes Property Taxes, Levied for Debt Service Grants and Contributions Not Restricted Investment Earnings Gain on Asset Disposal Miscellaneous Transfers Special Item - Insurance Proceeds Special Item - Settlement Total Governmental Activities General Revenues and Special Items
$
50,876,078 20,725,531 149,941,903 69,742 2,156,962 -
Change in Net Position Governmental Activities Business-type Activities Total Change in Net Position
$ $
$
2012
49,512,362 20,185,207 132,277,340 146,944 4,853,999 -
$
2011
50,514,674 20,549,988 130,134,362 158,844 1,727,119 -
$
51,125,698 20,864,438 116,886,465 88,347 77,180 -
223,770,216
206,975,852
203,084,987
189,042,128
-
-
-
-
Business-type Activities: Total Business-type Activities Gen. Revenues Total Primary Government General Revenues $
2013
223,770,216
$
206,975,852
$
203,084,987
$
189,042,128
16,613,820 16,613,820
$
1,412,705 1,412,705
$
16,850,834 16,850,834
$
7,650,680 7,650,680
Source: Grand Prairie ISD's Financial Records
84
$
$
$
TABLE 2 Page 2 of 2
2010
$
$
$ $
2009
50,697,004 20,606,736 113,622,839 388,313 3,541,242 1,212,125 -
$
2008
50,652,905 20,757,790 111,864,203 4,300,907 2,762,660 -
$
2007
47,964,275 19,172,237 111,735,303 7,390,043 1,472,771 3,406,056 -
$
2006
58,510,928 11,311,696 86,168,082 3,298,485 929,541 7,100,000 -
$
2005
59,418,346 10,559,583 77,488,110 1,904,898 779,642 -
$
53,840,118 10,505,748 75,517,678 1,110,004 174,667 713,896
1,204,214
190,068,259
190,338,465
191,140,685
167,318,732
150,150,579
143,066,325
-
-
-
-
-
2,404 2,404
190,068,259
(167,163) (1,959,826) (2,126,989)
$
$ $
190,338,465
(9,650,037) 159,001 (9,491,036)
$
191,140,685
$
167,318,732
$
150,150,579
$
$
(6,188,856) 351,331 (5,837,525)
$
9,616,487 615,470 10,231,957
$
6,092,281 422,688 6,514,969
$
$
$
85
$
$
143,068,729
(2,855,841) (184,544) (3,040,385)
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT FUND BALANCES - GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) 2014 General Fund Nonspendable: Inventories Prepaid items Assigned - Technology Operating Leases Unassigned Total General Fund
$
All Other Governmental Funds Nonspendable: Inventories Prepaid items Restricted for: Capital Acquisition and Contractual Obligations Debt Service Other Committed - Other Total All Other Governmental Funds Total All Government Funds
$
694,130 711,219 705,741 54,102,352 56,213,442
2013
$
237,665 517,701 3,189,721 43,887,721 47,832,808
2012
$
241,988 1,992,658 41,947,868 44,182,514
2011
$
446,733 269,290 27,929,235 28,645,258
564,189
106,181 686,055
686,055
323,124 686,055
828,403 13,187,125 3,830,709 942,151 19,352,577
1,484,443 12,790,510 3,642,611 18,709,800
7,488,765 14,275,272 10,000 3,023,064 25,483,156
44,536,168 17,069,556 10,000 1,994,278 64,619,181
75,566,019
$
66,542,608
$
69,665,670
$
93,264,439
General Fund Reserved for: Investments in Inventory Prepaid Items Encumbrances Designated for: Construction Capital expenditures for equipment Unreserved and Undesignated Total General Fund All Other Governmental Funds Reserved for: Investments in Inventory Debt Service Prepaid Items Encumbrances Food Service Other Unreserved and Undesignated, Reported In Special Revenue Fund Capital Projects Fund Total All Other Governmental Funds Total All Government Funds
Source: Grand Prairie ISD's Financial Records Note: The District adopted the provisions of GASB 54 in 2011 which changed the fund balance classifications to Nonspendable, Restricted, Committed, Assigned and Unassigned. GASB 54 provides more clearly defined fund balance categories to make the nature and extent of the constraints placed on a government's fund balances more transparent.
86
TABLE 3
2010
$
$
439,701 271,457 -
2009
$
57,741 398,109 1,236,225
2008
$
569,444 388,189 -
2007
$
934,468 565,877 -
2006
$
1,099,688 543,127 -
2005
$
1,159,260 520,890 -
18,298,896 19,010,054
2,137,500 21,674,495 25,504,070
3,406,056 4,221,720 22,937,123 31,522,532
4,221,720 19,257,073 24,979,138
4,221,720 19,114,603 24,979,138
4,221,720 13,349,824 19,251,694
175,578 14,130,623 2,555,819 3,005,643
12,355,936 22,723,405 10,000
10,018,777 69,380,743 10,000
8,955,506 480,258 10,000
7,154,420 7,516,189 10,000
4,016,955 677,938 10,000
19,867,663
347,547 17,262,234 52,699,122
364,885 62,079,771 141,854,176
267,363 166,466,545 176,179,672
207,664 724,530 15,612,803
285,822 11,677,556 16,668,271
38,877,717
$
78,203,192
$
173,376,708
$
87
201,158,810
$
40,591,941
$
35,919,965
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) 2014 REVENUES: Local and Intermediate Sources State Program Revenues Federal Program Revenues Total Revenues
$
EXPENDITURES: Current: Instruction Instructional Resources and Media Services Curriculum and Staff Development Instructional Leadership School Leadership Guidance, Counseling, and Evaluation Services Social Work Services Health Services Student Transportation Food Services Extracurricular Activities General Administration Plant Maintenance and Operations Security and Monitoring Services Data Processing Services Community Services Debt Service: Principal on Long-term Debt Interest on Long-term Debt Issuance Costs and Fees Capital Outlay: Facilities Acquisition and Construction Intergovernmental: Payments to Shared Services Arrangements Payments to Juvenile Justice Alternative Education Programs Payments to Tax Increment Fund Other Intergovernmental Charges Total Expenditures
2013
79,262,934 177,967,483 32,989,483 290,219,900
$
2012
79,667,635 153,349,013 32,326,956 265,343,604
$
2011
76,255,277 151,805,179 32,628,168 260,688,624
$
76,389,375 140,345,160 47,508,444 264,242,979
136,110,989 2,814,794 6,533,122 3,798,374 15,035,594 10,781,604 749,453 2,894,461 4,790,592 15,471,847 3,771,946 5,828,997 19,344,244 1,693,733 3,615,806 4,265,723
125,532,582 2,769,321 6,305,970 3,649,122 13,662,190 10,254,573 717,300 2,461,565 5,537,652 14,555,202 3,654,050 6,366,400 21,408,924 903,846 3,166,484 2,774,231
115,976,881 2,604,235 5,737,931 3,185,903 13,872,022 9,862,860 683,793 2,722,555 4,787,490 12,692,872 3,530,390 4,579,195 20,467,437 889,700 4,074,741 2,222,389
125,809,927 3,501,867 3,941,644 3,940,508 12,666,625 10,675,599 795,795 2,682,562 4,527,835 12,989,220 3,534,349 5,456,916 19,413,094 1,028,425 3,174,118 2,145,755
13,195,438 24,810,549 26,680
13,730,934 23,073,713 595,460
16,248,526 22,168,502 611,271
10,109,679 22,128,019 219,472
2,151,365
29,534,199
34,434,711
4,870,577
198,250 65,892 2,973,788 273,248 281,196,489
223,125 86,982 2,919,542 280,162 294,163,529
215,000 127,338 2,896,669 283,765 284,876,176
118,500 78,318 3,046,048 275,696 257,130,548
9,023,411
(28,819,925)
(24,187,552)
7,112,431
OTHER FINANCE SOURCES (USES): Capital-related Debt Issued (Regular Bonds) Issuance of Refunding Bonds Sale of Real and Personal Property Insurance Recovery Amounts Paid to Bond Refunding Escrow Agent Transfers In Premium or Discount on Issuance of Bonds Proceeds from Legal Settlement Special Item Transfers Out Other Uses Total Other Financing Sources (Uses)
-
22,845,000 19,440,000 (20,403,037) 3,214,294 600,606 25,696,863
55,805,000 289,147 5,862,552
45,000,000 227,946 499,950
(289,147) (61,078,769) 588,783
(1,742,609) 43,985,287
Special Items: Special Item - Resource
-
Excess (Deficiency) of Revenues Over (Under) Expenditures
Net Change in Fund Balances
$
9,023,411
Debt Service (Principal and Interest) Expenditures as a Percentage of Noncapital Expenditures
13.72%
Source: Grand Prairie ISD's Financial Records
88
$
(3,123,062)
14.16%
$
(23,598,769)
15.58%
$
51,097,718
12.87%
TABLE 4
2010 $
2009
78,958,747 134,986,317 42,997,322 256,942,386
$
81,113,920 135,998,542 11,477,160 228,589,622
$
2007
78,681,636 134,455,087 11,980,004 225,116,727
$
2006
75,480,063 105,316,069 14,206,702 195,002,834
$
2005
73,499,650 97,687,915 14,764,254 185,951,819
$
67,216,525 93,417,069 11,405,495 172,039,089
126,825,652 3,763,575 3,452,484 3,749,017 13,539,466 10,037,183 611,779 2,381,489 3,991,736 12,349,020 4,431,199 6,577,136 20,290,656 1,468,764 4,477,913 1,737,792
125,404,810 3,975,225 2,900,497 3,440,911 13,069,575 9,843,100 527,156 2,379,067 3,229,619 25,743 3,830,264 5,216,140 20,583,135 2,117,720 5,416,901 1,167,501
118,512,838 3,599,066 2,629,960 3,236,498 11,745,381 9,836,471 677,139 2,205,264 3,174,910 16,391 3,166,124 3,867,913 32,197,828 1,562,825 6,266,408 1,261,543
107,740,102 3,501,908 2,393,696 3,122,688 10,046,355 8,763,095 533,670 1,867,627 2,945,544 9,315 3,218,871 3,987,761 17,596,302 931,977 3,472,355 1,025,433
97,246,254 3,278,720 2,559,374 2,998,336 9,100,505 7,854,378 510,183 1,959,339 2,351,187 86,486 2,919,243 3,886,068 17,420,371 762,767 2,389,924 1,580,716
93,045,141 3,434,517 2,497,530 2,980,358 9,003,304 7,344,660 488,168 1,704,214 2,023,606 89,190 2,883,053 3,853,142 18,395,614 1,003,867 2,475,005 1,162,378
15,590,000 17,765,532 185,868
6,410,874 21,940,440 3,162,474
7,858,642 22,292,544 855,210
6,446,344 14,211,898 2,093,358
5,520,412 14,088,162 263,803
6,019,732 12,598,583 698,180
34,332,332
85,426,952
79,700,990
7,419,035
3,300,013
1,627,431
138,600 2,956,298 141,420 290,794,911
147,847 2,792,439 323,008,390
190,584 2,245,987 317,100,516
284,864 1,467,880 203,080,078
204,318 999,284 181,279,843
199,947 720,158 174,247,778
(33,852,525)
(94,418,768)
(91,983,789)
(8,077,244)
4,671,976
(2,208,689)
22,452 1,424,197 -
71,335,393 (70,484,630) (605,509)
61,205,000 111,045 590,631
157,795,000 59,625,176 (58,710,179) 315,387 4,206,469
-
42,176,045 715,935 1,219,889 (42,024,026) -
(212,072) 1,234,577
(1,000,000) (754,746)
3,406,056 (1,111,045) 64,201,687
7,100,000 (1,687,740) 168,644,113
-
2,087,843
-
-
$
2008
(32,617,948)
13.08%
$
(95,173,514)
13.26%
$
-
(27,782,102)
$
13.06%
160,566,869
11.63%
89
$
4,671,976
11.17%
$
(120,846)
11.19%
(This page was intentionally left blank)
90
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT
TABLE 5
ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Assessed Value Fiscal year Ended August 31, 2014
Real Property Value $
5,001,853,460
Personal Property Value $
1,346,293,940
Actual Taxable Value
Less Exemptions $
1,546,644,601
$
Total Direct Rate (1)
4,801,502,799
1.4650
2013
4,911,893,540
1,188,289,180
1,501,547,498
4,598,635,222
1.4650
2012
4,949,770,340
1,156,857,030
1,371,797,950
4,734,829,420
1.4650
2011
5,008,898,030
1,163,239,511
1,387,783,863
4,784,353,678
1.4650
2010
5,069,144,440
1,124,957,720
1,396,283,047
4,797,819,113
1.4650
2009
5,139,773,470
1,022,573,950
179,447,719
5,982,899,701
1.4650
2008
4,901,558,150
952,462,690
1,112,461,522
4,741,559,318
1.4650 (2)
2007
4,561,978,470
825,655,500
1,056,843,413
4,330,790,557
1.6297 (2)
2006
4,219,573,920
785,764,400
956,827,669
4,048,510,651
1.7586
2005
3,932,919,140
710,477,301
869,984,973
3,773,411,468
1.7511
Source: Dallas Central Appraisal District provides the District's tax office with appraised values for properties within the District's tax authority. Appraised value equals assessed value. Assessed value less exemptions equals actual taxable value. Actual taxable value times the tax rate set by the District's Board of Trustees each fall equals the tax levy. (1) Tax Rates are per $100 of actual taxable value. (2) Tax Rate reduces as a results of State Legislative Reform.
91
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT PROPERTY TAX RATES – DIRECT AND OVERLAPPING GOVERNMENTS (PER $100 ASSESSED VALUE) LAST TEN FISCAL YEARS Taxing Authority Overlapping Rates: Dallas County Dallas County CCD Dallas Co FCD #1 Dallas County Hospital District Dallas County Schools City of Dallas City of Grand Prairie City of Irving Total Overlapping Rates District Direct Rates: (2) Grand Prairie ISD Maintenance and Operations Debt Service Total District Direct Rates
2014 $
$
$ $
2013
0.243100 0.124775 0.286000 0.010000 0.797000 0.669998 0.594100 2.724973
1.040000 0.425000 1.465000
Source: Dallas Central Appraisal District (1) Tax rate was reduced as a result of State Legislative Reform. (2) The District is not subject to a legal debt margin.
92
$
$
$ $
0.243100 0.124700 0.276000 0.010000 0.797000 0.669998 0.598600 2.719398
1.040000 0.425000 1.465000
2012 $
$
$ $
0.243100 0.119375 3.050000 0.271000 0.009937 0.797000 0.669998 0.598600 5.759010
1.040000 0.425000 1.465000
2011 $
$
$ $
0.243100 0.099670 2.900000 0.271000 0.010000 0.797000 0.669998 0.598600 5.589368
1.040000 0.425000 1.465000
TABLE 6
2010 $
$
$ $
0.243100 0.099230 2.835540 0.271000 0.010000 0.797000 0.669998 0.576100 5.501968
1.040000 0.425000 1.465000
2009 $
$
$ $
0.228100 0.094900 2.835540 0.274000 0.005212 0.747900 0.669998 0.540600 5.396250
1.040000 0.425000 1.465000
2008 $
$
$ $
0.228100 0.089400 2.835540 0.254000 0.004928 0.747900 0.669998 0.540600 5.370466
1.040000 0.425000 1.465000
2007 $
$
$ $
93
0.228100 0.080400 2.835540 0.254000 0.004714 0.747900 0.669998 0.540600 5.361252
1.040000 (1) 0.425000 1.465000
2006 $
$
$ $
0.213900 0.081000 2.835540 0.254000 0.005034 0.729200 0.669998 0.547900 5.336572
1.361100 (1) 0.268600 1.629700
2005 $
$
$ $
0.213900 0.081600 2.780000 0.254000 0.005300 0.741700 0.669998 0.547900 5.294398
1.490000 0.268600 1.758600
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT
TABLE 7
PRINCIPAL PROPERTY TAXPAYERS CURRENT AND NINE YEARS AGO 2014 Actual Taxable Value (1)
Taxpayer Oncor Electric Delivery
$
Rank
2005 Percentage of Actual Taxable Value
94,143,680
1
1.96%
Triumph Group Vought Aircraft
92,294,270
2
1.92%
Poly America LP
69,181,150
3
1.44%
Duke Realty Ltd. PS
66,841,720
4
1.39%
Lockheed Martin Missiles & Fire
59,486,440
5
1.24%
Mars Partners Ltd.
40,809,970
6
0.85%
Hanson Pipe & Precast Inc.
40,169,140
7
0.84%
Catellus Development Corp
38,058,180
8
0.79%
Coca Cola Company The
29,450,529
9
0.61%
Falken Tire Corporation
28,274,478
10
0.59%
Actual Taxable Value (1)
Rank
Percentage of Actual Taxable Value
$
42,009,900
7
1.11%
Vought Aircraft Industries
106,787,010
1
2.83%
Prologis
100,210,290
2
2.66%
Bell Helicopter - Textron
81,418,520
3
2.16%
Texas Utilities Elec. Co.
61,426,530
4
1.63%
Southwestern Bell/Cingular
47,880,040
5
1.27%
Republic Beverage
45,561,150
6
1.21%
Hanson Pipe & Products
40,885,000
8
1.08%
Walmart Stores
20,879,360
9
0.55%
Alpha-Barnes
20,808,370
10
0.55%
TOTALS
$
558,709,557
TOTAL ACTUAL TAXABLE VALUE
$ 4,801,502,799
11.63%
$
567,866,170
$ 3,773,411,468
Source: Dallas County Tax Office (1) Actual taxable value equals appraised/assessed value after exemptions.
94
15.05%
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT
TABLE 8
PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS
Fiscal Year 2014
Collected within the Fiscal Year of the Levy
Net Tax Levy For The Fiscal Year (1) $
70,338,982
Amount $
Total Collections to Date Collections In Subsequent Years
Percentage of Levy
69,266,236
98.47%
$
-
Amount $
Percentage of Levy
69,266,236
98.47%
2013
68,175,403
67,290,194
98.70%
369,811
67,660,005
99.24%
2012
69,052,204
68,201,587
98.77%
471,977
68,673,564
99.45%
2011
70,044,583
69,212,854
98.81%
509,959
69,722,813
99.54%
2010
70,073,719
68,790,500
98.17%
953,593
69,744,093
99.53%
2009
70,887,467
69,613,328
98.20%
1,089,419
70,702,747
99.74%
2008
68,182,923
66,414,471
97.41%
1,646,278
68,060,749
99.82%
2007
69,352,696
67,634,468
97.52%
1,614,683
69,249,151
99.85%
2006
69,282,288
67,407,350
97.29%
1,777,678
69,185,028
99.86%
2005
63,597,241
62,207,753
97.82%
1,306,180
63,513,933
99.87%
Source: Grand Prairie ISD's Financial Records and Dallas County Tax Office (1) Appraised/assessed value less exemptions equal actual taxable value. The beginning actual taxable value net of adjustments times the tax rate set by the District's Board of Trustees each fall equals the total net tax levy. The net tax levy for current and prior years reflects ongoing adjustments applied to that year's tax levy.
95
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT
TABLE 9
RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Governmental Activities General Obligation Capital Bonds (1) Leases (1)
Fiscal Year 2014
$
511,017,110
$
-
Total Primary Government $
Ratio of Debt to Actual Taxable Value (2)
511,017,110
10.64%
Debt Per Student (3) $
19,772
2013
526,133,798
-
526,133,798
11.44%
21,079
2012
513,426,519
-
513,426,519
10.84%
20,671
2011
525,964,115
-
525,964,115
10.99%
21,397
2010
488,401,464
-
488,401,464
10.18%
20,148
2009
496,954,107
-
496,954,107
8.31%
20,758
2008
506,166,885
-
506,166,885
10.68%
21,624
2007
453,890,973
-
453,890,973
10.48%
19,909
2006
296,796,117
-
296,796,117
7.33%
13,400
2005
302,972,812
-
302,972,812
8.03%
14,273
(1) Details regarding the District's outstanding debt, net of premiums, discounts, and adjustments can be found in the Notes to the Financial Statements. (2) See Table 5 for actual taxable value data. (3) See Table 16 for student average daily attendance data.
96
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT
TABLE 10
RATIOS OF NET GENERAL OBLIGATION BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS
Fiscal Year 2014
Less Amount Available in Debt Service Fund (4)
General Obligation Bonds (1) $
511,017,110
$
13,187,125
Net Bonded Debt $
12,790,510
Ratio of Net Bonded Debt To Actual Taxable Value (2)
Net Bonded Debt Per Student (3)
497,829,985
10.37%
$
19,262
513,343,288
11.16%
20,566
2013
526,133,798
2012
513,426,519
14,275,272
499,151,247
10.54%
20,096
2011
525,964,115
17,069,556
508,894,559
10.64%
20,703
2010
488,401,464
14,130,623
474,270,841
9.89%
19,565
2009
496,954,107
12,355,936
484,598,171
8.10%
20,242
2008
506,166,885
10,018,777
496,148,108
10.46%
21,196
2007
453,890,973
8,955,506
444,935,467
10.27%
19,516
2006
296,796,117
7,154,420
289,641,697
7.15%
13,077
2005
302,972,812
4,016,955
298,955,857
7.92%
14,084
(1) Details regarding the District's outstanding debt, net of premiums, discounts, and adjustments can be found in the Notes to the Financial Statements. (2) See Table 5 for actual taxable value data. (3) See Table 16 for student average daily attendance data. (4) This is the amount restricted for debt service payments on general obligation bonds at the fund level.
97
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT
TABLE 11
COMPUTATION OF ESTIMATED DIRECT AND OVERLAPPING DEBT AUGUST 31, 2014 Gross Debt Amount (2)
Taxing Body Overlapping: Dallas County Dallas County CCD Dallas Co FCD #1 Dallas County Hospital District Dallas County Schools City of Dallas City of Grand Prairie City of Irving
$
111,350,000 339,035,000 28,565,000 736,235,000 67,265,000 1,547,227,904 214,055,000 390,000,000
Percent Overlapping (1) 2.95% 2.95% 92.83% 2.95% 2.95% 0.22% 47.62% 1.12%
Share of Debt $
173,211,391
Total Net Overlapping Debt Direct: Grand Prairie ISD
3,284,825 10,001,533 26,516,890 21,718,933 1,984,318 3,403,901 101,932,991 4,368,000
462,964,392
TOTAL NET OVERLAPPING AND DIRECT DEBT
100.00%
462,964,392 $
636,175,783
Source: Municipal Advisory of Texas (1) Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the District. The percentage of overlapping debt is estimated using actual taxable property values. Percentages were estimated by determining the portion of the overlapping taxing authorities actual taxable value that is within the District's boundaries and dividing it by the overlapping taxing authorities' total actual taxable value. (2) The District's debt is reported gross for comparability due to premiums and discounts of overlapping entities not being readily available.
98
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT
TABLE 12
DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS Actual Taxable Value of Residential Units (2)
Average Actual Taxable Value Per Residential Unit
Average Daily Attendance (3)
Unemployment Rate (4)
86,252
25,845
5.6%
Fiscal Year
Residential Units (1)
2014
31,144
2013
31,112
2,685,705,531
86,324
24,961
6.0%
2012
31,050
2,741,257,296
88,285
24,839
7.2%
2011
31,013
2,782,992,922
89,736
24,581
8.1%
2010
30,861
2,894,927,732
93,805
24,240
8.6%
2009
30,653
3,041,360,450
99,219
23,941
8.9%
2008
30,114
2,929,526,082
97,281
23,407
5.6%
2007
29,240
2,739,361,049
93,685
22,798
4.8%
2006
28,232
2,497,822,515
88,475
22,149
5.5%
2005
27,427
2,312,306,213
84,308
21,227
5.4%
$
2,686,234,632
$
(1) Source: Dallas Central Appraisal District - Residential Units include: Single Family Residences, Multifamily Residences, and Mobile Homes (2) Source: Dallas Central Appraisal District (3) Source: Texas Education Agency (4) Source: Texas Workforce Commission, July, Not Seasonally Adjusted
99
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100
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT
TABLE 13
PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO 2014
Employer
Employees
2005
Rank
Percentage of Top Ten Employers
Employees
Rank
Percentage of Top Ten Employers
Grand Prairie Independent School District
3,700
1
25.17%
2,900
1
23.63%
Lockheed Martin Missiles and Fire Control
2,800
2
19.05%
2,700
2
22.00%
Poly-America Inc.
2,000
3
13.61%
1,350
4
11.00%
Bell Helicopter-Textron
1,200
4
8.16%
872
6
7.10%
City of Grand Prairie
1,200
5
8.16%
1,100
5
8.96%
Lone Star Park at Grand Prairie
950
6
6.47%
1,400
3
11.41%
Triumph Aerostructures - Vought Aircraft Div.
900
7
6.12%
-
-
Republic National Distributing
700
8
4.76%
-
-
Bureau of Prisons, U.S. Dept. of Justice
650
9
4.42%
-
-
Wal-Mart
600
10
4.08%
480
9
3.91%
Hanson Pipe & Products, Inc.
-
-
512
7
4.17%
Pollock Paper
-
-
480
8
3.91%
Vought Aircraft
-
-
480
10
3.91%
Total Employed
14,700
100.00%
Source: City of Grand Prairie
101
12,274
100.00%
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS Total Personal Income (2)
Per Capita Personal Income (2)
Labor Force (3)
Employment (3)
$
n/a
3,481,290
3,290,801
n/a
$
n/a
3,433,713
3,228,094
n/a
$
n/a
3,339,582
3,116,834
285,259,943,000 $
43,708
3,301,924
3,044,247
$
268,491,633,000 $
41,948
3,245,275
2,978,923
6,287,664
$
253,558,777,000 $
40,326
3,174,185
2,928,618
166,650
6,158,022
$
271,345,036,000 $
44,064
3,115,901
2,959,551
2007
161,550
6,030,240
$
255,311,694,000 $
42,339
3,076,261
2,943,190
2006
156,000
5,892,305
$
239,307,804,000 $
40,614
3,055,371
2,909,124
2005
147,750
5,727,758
$
220,481,629,000 $
38,494
3,007,967
2,851,984
Calendar Year
City Population (1)
Area Population (2)
2014
n/a
n/a
$
n/a
2013
n/a
n/a
$
2012
181,824
6,700,991
$
2011
178,779
6,526,548
$
2010
175,396
6,400,511
2009
168,500
2008
(1) Source: City of Grand Prairie. (2) Area population and personal income is for the Dallas-Fort Worth-Arlington, TX. Metropolitan Statistical Area. Data for 2005-2012 provided by Bureau of Economics Analysis. Data for 2013 from U.S. Census Bureau population estimates. (3) Data from Texas Workforce Commission for the Dallas-Fort Worth-Arlington, TX. Metropolitan Statistical Area (annual averages except for 2013 and 2014 which are actual for August). n/a = data not available
102
TABLE 14
Unemployment (3)
Percent Unemployment (3)
Construction (3)
Manufacturing (3)
Trade (3)
Government (3)
190,489
5.5%
193,300
258,500
666,600
387,900
205,619
6.0%
183,000
261,100
501,500
377,400
222,748
6.7%
169,300
257,200
479,100
386,200
257,677
7.8%
158,600
254,600
466,500
391,600
266,352
8.2%
156,300
251,200
456,000
394,300
245,567
7.7%
168,000
260,800
459,000
388,700
156,350
5.0%
193,900
287,300
483,800
382,200
133,071
4.3%
187,900
296,500
481,600
370,400
146,247
4.8%
175,700
299,000
474,800
363,200
155,983
5.2%
165,600
293,000
466,600
356,100
103
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY POSITION LAST TEN FISCAL YEARS POSITION Teachers: Pre-Kindergarten Kindergarten Elementary (Grades 1-6) Middle School (Grades 6-8) Secondary (Grades 7-12) All Grade Levels Other Teacher Totals
2014
2013
2012
2011
29.20 103.09 641.79 20.15 858.02 99.08 5.00 1,756.33
29.83 101.17 758.08 0.47 707.93 61.72 1.00 1,660.20
28.20 102.66 698.43 8.73 658.14 99.52 2.75 1,598.43
29.00 105.28 723.65 12.56 625.31 149.90 2.70 1,648.40
Professional Support: Athletic Trainer Corrective Therapist Counselor Department Head Educational Diagnostician Librarian LSSP/Psychologist Occupational Therapist Orientation/Mobility Spec Other Campus Prof. Personnel Other Non-Instr. Personnel Physical Therapist Psychological Associate School Nurse Social Worker Speech Therapist/Speech-Lang Pathologist Visiting Teacher Work-Based Learning Site Coordinator Teacher Facilitator Total Support Staff
0.00 1.81 61.00 0.00 30.00 0.30 18.00 6.00 1.00 47.00 51.00 1.00 0.00 40.00 11.00 23.94 0.00 0.00 52.00 344.05
0.00 1.00 62.00 0.00 32.00 0.77 13.00 5.90 1.00 40.37 48.59 1.00 0.00 39.00 10.00 25.00 0.00 0.00 54.25 333.88
0.00 1.81 54.45 0.00 31.00 15.01 13.00 6.00 1.00 44.30 61.93 1.00 0.00 38.32 8.00 28.00 0.00 0.00 38.80 342.62
0.00 2.53 56.01 0.00 30.98 30.17 14.43 4.00 1.00 51.96 56.73 1.00 0.00 37.61 10.00 23.86 0.00 0.00 49.58 369.86
Administrative Staff: Assistant Principal Asst/Assoc/Deputy Superintendent Athletic Director Business Manager Director - Human Resources Dist Instr. Pgm. Dir. or Exc. Director Principal Superintendent Teacher Supervisor Total Administrative Staff
58.05 3.00 1.00 1.00 4.00 20.69 39.96 1.00 25.00 153.70
60.89 2.00 1.00 1.00 1.00 24.02 38.62 1.00 14.09 143.62
58.92 3.00 1.00 1.00 1.00 2.97 36.69 1.00 24.89 130.47
63.44 4.00 1.00 1.00 1.00 1.11 36.56 1.00 32.40 141.51
Support Staff Educational Aides Auxiliary Staff: Total Support Staff
267.00 774.81 1,041.81
306.00 793.50 1,099.50
234.26 821.14 1,055.40
268.13 859.97 1,128.10
Total Employees
3,295.89
3,237.20
3,126.92
3,287.87
Source: PEIMS Standards Reports and District records
104
TABLE 15
2010
2009
2008
2007
2006
2005
27.87 109.77 725.76 18.35 621.53 108.79 0.00 1,612.07
39.35 102.37 789.69 20.56 594.81 170.63 1.00 1,718.41
19.87 114.82 748.23 11.37 579.16 175.61 0.00 1,649.05
20.59 126.68 682.99 13.98 536.80 198.39 0.00 1,579.43
15.44 111.12 694.28 13.15 511.11 174.27 3.00 1,522.37
18.51 103.57 638.74 17.30 505.43 164.60 0.00 1,448.15
0.00 2.00 58.11 0.00 32.48 31.29 12.00 4.96 0.00 47.00 52.63 0.00 0.00 38.85 7.00 62.97 0.00 0.00 37.28 386.57
1.00 0.00 60.42 0.00 28.96 31.83 1.00 0.00 0.00 4.00 85.54 0.00 10.82 38.17 9.00 10.00 1.00 0.00 25.00 306.74
0.00 0.00 56.25 0.00 29.40 33.21 1.00 2.67 1.00 2.00 38.39 1.00 11.87 36.12 9.00 16.00 0.00 0.00 36.87 274.78
0.00 0.00 50.87 0.00 23.66 33.93 0.00 3.00 1.00 1.50 36.68 2.00 13.00 34.68 11.00 17.00 0.00 0.00 39.00 267.32
0.00 0.00 49.14 1.00 24.93 34.00 1.00 3.00 1.00 2.00 37.00 2.00 9.84 34.28 7.00 19.00 1.00 0.00 43.98 270.18
0.00 0.00 49.92 0.00 25.40 34.00 3.00 2.89 1.24 1.00 36.22 1.88 8.00 30.80 7.00 21.43 0.00 0.00 73.15 295.92
66.49 4.00 1.00 1.00 1.00 3.13 36.00 1.00 47.16 160.78
58.00 4.00 0.00 0.00 1.00 3.00 38.00 1.00 1.36 106.36
53.17 5.00 1.00 0.00 2.00 16.00 37.00 1.00 0.97 116.14
49.50 5.00 1.00 0.00 2.00 13.41 36.00 0.55 0.00 107.46
45.10 5.62 1.00 0.00 2.00 4.00 35.99 1.00 0.00 94.70
47.00 7.63 1.00 1.00 2.00 6.00 36.00 1.00 1.00 102.63
288.97 849.43 1,138.40
19.73 1,042.96 1,062.68
265.02 744.16 1,009.19
255.25 687.87 943.12
249.97 695.75 945.72
208.80 720.12 928.92
3,297.82
3,194.21
3,049.16
2,897.32
2,832.97
2,775.62
105
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT OPERATING STATISTICS LAST TEN FISCAL YEARS
Fiscal Year
Average Daily Attendance
2014
25,845
2013
24,961
2012
Cost Per Student
Operating Expenditures (1) $
237,501,279
$
Percentage Change
9,189
2.53%
223,719,412
8,963
7.09%
24,839
207,890,394
8,370
-4.88%
2011
24,581
216,284,239
8,799
-2.91%
2010
24,240
219,684,861
9,063
6.81%
2009
23,941
203,127,364
8,485
-2.62%
2008
23,407
203,956,559
8,713
16.06%
2007
22,798
171,156,699
7,507
5.98%
2006
22,149
156,903,851
7,084
-1.32%
2005
21,227
152,383,747
7,179
-3.37%
Source: Grand Prairie ISD records (1) Total Governmental Fund expenditures less capital outlay, debt service, and intergovernmental expenditures per Exhibit B-2.
106
TABLE 16
Government Wide Expenses $
Percentage of Students in Free/Reduced Lunch Program
Percentage Change
Teaching Staff
Student to Teacher Ratio
10,582
0.00%
1,756
14.72
71.62%
264,162,060
10,583
7.15%
1,660
15.04
73.18%
245,319,950
9,877
-5.15%
1,598
15.54
72.60%
255,962,908
10,413
-2.52%
1,648
14.92
72.10%
258,931,328
10,682
7.52%
1,612
15.04
69.80%
237,853,730
9,935
-1.12%
1,718
13.94
66.00%
235,179,732
10,047
18.93%
1,649
14.19
64.90%
192,599,466
8,448
3.70%
1,579
14.44
62.50%
180,441,215
8,147
-2.09%
1,522
14.55
59.80%
176,617,543
8,321
-2.53%
1,448
14.66
52.20%
273,503,022
Cost Per Student $
107
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108
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT
TABLE 17
TEACHER BASE SALARIES LAST TEN FISCAL YEARS District Fiscal Year 2014
Minimum Salary (1) $
47,500
Maximum Salary (1) $
66,715
Region Average Salary (2)
Average Salary (1) $
51,884
$
50,851
Statewide Average Salary (2) $
49,692
2013
47,000
66,715
50,939
50,249
48,821
2012
46,500
66,538
50,125
46,327
48,375
2011
47,000
66,538
50,693
46,612
48,638
2010
46,500
66,038
49,976
46,500
48,263
2009
45,500
65,038
50,098
46,416
47,159
2008
43,500
63,144
48,663
44,969
46,179
2007
42,000
61,305
47,625
47,733
44,897
2006
38,500
57,305
44,419
46,225
41,744
2005
38,000
55,636
43,336
43,363
41,011
(1) Source: District records (2) Source: AEIS reports
109
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT SCHOOL BUILDING INFORMATION LAST TEN FISCAL YEARS Building:
Year Built
HIGH SCHOOLS Dubiski Career High School Square Footage Capacity Enrollment
2014
2013
2012
247,880 1,800 1,512
247,880 1,800 1,521
247,880 1,800 1,513
2009
Grand Prairie Collegiate (at Lee Elementary) Square Footage Capacity Enrollment
2014
Grand Prairie Fine Arts Academy (6) Square Footage Capacity Enrollment
2002
Grand Prairie High School Additions: 1955/1957/1960/1963/1964/1965/1969, 1971/1979/1986/1989/1998/2003/2004/2008 Square Footage Capacity Enrollment
1951
South Grand Prairie High School Additions: 1979/1986/1990/1992/1996/2001/2003, 2008/2010/2012 Square Footage Capacity Enrollment
1970
South Grand Prairie 9th Grade Center Additions: 2002/2008 Square Footage Capacity Enrollment
1968
5,600 180 88
Young Women's Leadership Academy at Arnold (Grades 6-12) (7) Square Footage Capacity Enrollment
-
-
157,046 1,300 387
157,046 1,300 664
157,046 975 674
481,325 2,938 2,502
481,325 2,938 1,910
481,325 2,673 1,851
516,047 2,730 2,322
505,779 2,730 2,314
505,779 2,600 2,307
126,743 1,248 849
126,743 1,248 800
126,743 1,000 828
2002 143,962 1,222 1,104
MIDDLE SCHOOLS Adams Middle School Additions: 1971/1979/1986/1998/2008/2009 Square Footage Capacity Enrollment
-
-
1963
Fannin Middle School (1) Additions: 1986/2000/2008/2010 Square Footage Capacity Enrollment
99,977 1,000 623
99,977 1,000 715
99,977 1,000 767
100,945 750 763
100,945 700 746
100,945 700 728
1984
110
TABLE 18 Page 1 of 6
2011
2010
247,880 1,800 1,082
247,880 1,800 781
-
2009
-
2008
2007
2006
2005
-
-
-
-
-
-
-
-
-
-
157,046 975 745
157,046 975 808
157,046 975 918
157,046 975 890
157,046 975 979
157,046 975 984
157,046 975 823
481,325 2,673 1,975
481,325 2,673 2,006
481,325 2,673 2,100
394,173 2,673 2,157
394,173 2,673 1,988
394,173 2,673 1,975
394,173 2,673 1,976
505,779 2,600 2,334
480,523 2,502 2,409
480,523 2,502 2,499
393,410 2,502 2,569
393,410 2,502 2,410
393,410 2,502 2,320
393,410 2,502 2,146
126,743 1,000 882
126,743 1,000 849
126,743 1,000 990
125,417 1,000 1,040
125,417 1,000 1,078
125,417 1,000 957
125,417 1,000 923
-
99,977 1,000 812
100,945 700 659
-
99,977 1,000 768
-
-
97,852 740 789
-
89,782 740 793
-
-
-
89,782 740 771
-
-
89,782 740 718
-
-
89,782 740 716
-
Continued 111
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT SCHOOL BUILDING INFORMATION LAST TEN FISCAL YEARS Building:
Year Built
MIDDLE SCHOOLS (continued) HOPE Academy Square Footage Capacity Enrollment
2014
2013
2012
2014 9,100 312 113
Jackson Middle School Square Footage Capacity Enrollment
2002
Lee Middle School (2) Additions: 1947/1954/1986/1987/1993/2001 Square Footage Capacity Enrollment
1942
Reagan Middle School Square Footage Capacity Enrollment
2004
Truman Middle School Additions: 1987/1993/1997/2004/2008 Square Footage Capacity Enrollment
1979
137,690 1,200 1,031
-
Young Men's Leadership Academy at Kennedy Middle School Additions: 1993/1997/2008/2013 Square Footage Capacity Enrollment
-
137,690 1,200 1,023
-
-
137,690 1,000 1,052
-
138,925 1,175 714
138,970 1,175 902
138,970 1,175 718
115,364 806 583
115,364 806 569
115,364 806 568
127,019 1,118 1,003
114,762 1,118 967
114,762 844 982
143,962 1,000 1,024
143,962 1,000 1,068
67,566 540 544
67,566 540 579
67,566 540 569
68,082 680 409
68,082 680 373
68,082 680 330
1986
Young Women's Leadership Academy at Arnold Middle School (7) Square Footage Capacity Enrollment
2002 -
ELEMENTARY SCHOOLS Austin Elementary Additions: 1958/1963/1967/1986/1988/2001/2008 Square Footage Capacity Enrollment
1954
Bonham ECC Additions: 1971/1996/2008 Square Footage Capacity Enrollment
1967
112
TABLE 18 Page 2 of 6
2011
2010
-
137,690 1,000 1,065
2009
-
2008
-
2007
-
2006
-
2005
-
-
137,690 1,000 1,074
137,690 1,000 1,127
137,690 1,000 1,075
137,478 1,000 1,040
137,478 1,000 994
137,478 1,000 994
143,769 1,000 843
143,769 1,000 770
143,769 1,000 791
143,769 1,000 762
143,769 1,000 780
143,769 1,000 779
138,970 1,175 749
138,970 1,000 768
138,970 1,000 797
138,970 1,000 800
138,970 1,000 673
138,970 1,000 609
138,970 1,000 581
115,364 806 550
115,364 806 697
115,364 977 750
107,294 977 694
107,294 977 692
107,294 977 609
107,294 977 539
114,762 844 997
114,762 844 912
114,762 844 895
110,478 844 823
110,478 844 851
110,478 844 896
110,478 844 839
143,962 1,000 989
143,962 1,000 793
143,962 1,000 795
143,962 1,000 750
143,962 1,000 764
143,962 1,000 764
143,962 1,000 829
67,566 540 536
67,566 520 535
67,566 520 522
63,422 520 481
63,422 520 449
63,422 520 485
63,422 520 461
68,082 680 280
68,082 760 475
68,082 760 494
67,521 760 639
67,521 760 592
67,521 760 586
67,521 760 602
-
Continued
113
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT SCHOOL BUILDING INFORMATION LAST TEN FISCAL YEARS Building:
Year Built
ELEMENTARY SCHOOLS (continued) Bowie Elementary Additions: 1954/1986/1998/2004/2008 Square Footage Capacity Enrollment
2014
2013
2012
1951
Bush Elementary Square Footage Capacity Enrollment
1997
Crockett 5th Grade Center Square Footage Capacity Enrollment
2000
Daniels Elementary Academy of Science and Math Additions: 1995/2011 Square Footage Capacity Enrollment
1955
Dickinson Elementary Additions: 1986/2002/2009 Square Footage Capacity Enrollment
1981
Eisenhower Elementary Additions/Renovations: 1986/1991/2000/2009 Square Footage Capacity Enrollment
1968
Fannin Elementary (1) Additions/Renovations: 1986/2002/2008 Square Footage Capacity Enrollment
1984
Florence Hill Elementary Square Footage Capacity Enrollment
1990
Garcia Elementary Square Footage Capacity Enrollment
1998
48,655 580 439
48,655 580 443
48,655 580 454
65,710 680 570
65,710 680 568
65,710 680 576
72,231 660 513
72,231 660 487
72,231 660 521
83,927 660 694
83,927 660 610
83,927 660 606
65,685 640 471
65,685 640 431
65,685 640 448
81,501 800 713
81,501 800 703
81,501 800 657
-
114
-
-
62,000 600 514
62,000 600 484
62,000 600 466
68,185 680 614
68,185 680 604
68,185 680 547
TABLE 18 Page 3 of 6
2011
2010
2009
2008
2007
2006
2005
48,655 580 440
48,655 620 517
48,655 620 529
44,829 620 523
44,829 620 525
44,829 620 510
44,829 620 565
65,710 680 609
65,710 640 549
65,710 640 565
65,710 640 475
65,710 640 510
65,710 640 518
65,710 640 521
72,231 660 539
72,231 660 454
72,231 660 583
72,231 660 608
72,231 660 575
72,231 660 586
72,231 660 578
83,927 660 526
75,231 660 528
75,231 660 544
75,231 660 605
75,231 660 573
75,231 660 488
75,231 660 466
65,685 640 460
61,524 640 463
61,524 640 459
61,524 640 468
61,524 640 662
61,524 640 619
61,524 640 503
81,501 800 766
81,501 800 536
47,101 500 537
47,101 500 481
47,101 500 430
47,101 500 438
47,101 500 440
52,932 620 433
52,932 620 420
52,932 620 388
52,932 620 406
52,932 620 399
52,932 620 427
62,000 600 468
62,000 600 530
62,000 600 529
62,000 600 538
62,000 600 562
62,000 600 546
62,000 600 518
68,185 680 570
68,185 680 558
68,185 680 523
68,185 680 566
68,185 680 540
68,185 680 520
68,185 680 523
-
Continued
115
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT SCHOOL BUILDING INFORMATION LAST TEN FISCAL YEARS Building:
Year Built
ELEMENTARY SCHOOLS (continued) Garner Fine Arts Academy Additions: 1987/1993/2008/2011 Square Footage Capacity Enrollment
2014
2013
2012
1986 63,851 660 641
Houston Elementary (3) Additions:1954/1958/1969/1986/1988/1996/2004 Square Footage Capacity Enrollment
1952
Johnson Elementary (8) Additions: 1986 Square Footage Capacity Enrollment
1969
Lee Elementary (2) Additions: 1947/1954/1986/1987/1993/2001 Square Footage Capacity Enrollment
1942
Marshall Leadership Academy Square Footage Capacity Enrollment
2004
Ellen Ochoa STEM Academy at Milam Elementary Additions: 1986/2008 Square Footage Capacity Enrollment
1955
Moore Elementary Square Footage Capacity Enrollment
2001
Moseley Elementary Square Footage Capacity Enrollment
2007
Powell Elementary Square Footage Capacity Enrollment
1997
-
-
116
63,851 660 564
-
63,851 660 552
-
54,708 580 518
54,708 580 506
134,342 720 773
139,942 900 768
139,942 900 750
73,525 700 591
73,525 700 556
73,525 700 530
91,864 900 844
56,831 560 603
56,831 560 581
72,872 700 555
72,872 700 574
72,872 700 569
77,980 720 633
77,980 720 587
77,980 720 552
65,710 540 484
65,710 540 500
65,710 540 466
TABLE 18 Page 4 of 6
2011
2010
60,963 660 375
-
54,708 580 531
139,942 900 693
2009
2008
2007
2006
2005
60,963 660 387
60,963 660 416
60,059 660 452
60,059 660 472
60,059 660 482
60,059 660 449
62,947 620 516
62,947 620 577
62,947 620 564
62,947 620 557
62,947 620 569
62,947 620 569
54,708 560 500
54,708 560 546
54,708 560 519
54,708 560 525
54,708 560 523
54,708 560 493
-
-
-
-
-
-
73,525 700 533
73,525 700 587
73,525 700 535
73,525 700 505
73,525 700 429
73,525 700 410
73,525 700 322
56,831 560 582
56,831 560 584
52,670 560 574
52,670 560 473
52,670 560 488
52,670 560 509
52,670 560 461
72,872 700 607
72,872 700 629
72,872 700 599
72,872 700 591
72,872 700 565
72,872 700 564
72,872 700 494
77,980 720 549
77,980 832 562
77,980 832 545
77,980 832 453
65,710 540 471
65,710 540 505
65,710 540 523
65,710 540 524
-
65,710 540 599
-
65,710 540 555
-
65,710 540 525
Continued
117
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT SCHOOL BUILDING INFORMATION LAST TEN FISCAL YEARS Building:
Year Built
ELEMENTARY SCHOOLS (continued) Rayburn Elementary Additions: 1986/1998/2009 Square Footage Capacity Enrollment
2014
2013
2012
1973
Seguin Elementary Square Footage Capacity Enrollment
2004
Travis Elementary Additions: 1942/1950/1954/1958/1960/1971/1979, 1986/1989/2001 Square Footage Capacity Enrollment
1939
Whitt Fine Arts Academy Additions: 2009 Square Footage Capacity Enrollment
2001
Williams Elementary Square Footage Capacity Enrollment
2008
De Zavala Environmental Science Academy Additions: 1986/2008 Square Footage Capacity Enrollment
1977
ALTERNATIVE CAMPUSES Crosswinds High School Additions: 2009 Square Footage Capacity Enrollment
83,550 720 512
83,550 720 559
83,550 720 580
73,525 700 538
73,525 700 523
73,525 700 557
112,121 700 603
112,121 700 592
112,121 700 630
74,649 700 620
74,649 700 599
74,649 700 566
77,980 720 609
77,980 720 622
77,980 720 585
95,637 900 832
57,013 620 469
57,013 620 458
49,755 360 272
49,755 360 326
49,755 360 286
2008
Boze Learning Center (4) Square Footage Capacity Enrollment
1930
Johnson DAEP (8)(9) Additions: 1986 Square Footage Capacity Enrollment
1969
118
-
-
-
54,708 580 119
-
-
TABLE 18 Page 5 of 6
2011
2010
2009
2008
2007
2006
2005
83,550 720 603
83,550 720 499
49,350 460 455
49,350 460 534
49,350 460 521
49,350 460 518
49,350 460 465
73,525 700 577
73,525 700 653
73,525 700 569
73,525 700 655
73,525 700 660
73,525 700 626
73,525 700 556
112,121 700 624
112,121 700 483
112,121 700 473
112,121 700 499
112,121 700 478
112,121 700 506
112,121 700 466
74,649 700 598
74,649 700 577
72,872 700 619
72,872 700 592
72,872 700 581
72,872 700 532
72,872 700 502
77,980 720 614
77,980 832 468
77,980 832 369
57,013 620 532
57,013 620 577
52,852 620 552
49,755 360 363
49,755 360 359
46,795 320 288
-
-
-
-
-
-
-
52,852 620 513
-
18,632 360 -
-
-
52,852 620 522
-
18,632 360 104
-
-
52,852 620 525
-
18,632 360 90
-
-
52,852 620 495
-
18,632 360 116
-
Continued
119
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT SCHOOL BUILDING INFORMATION LAST TEN FISCAL YEARS Building:
Year Built
ALTERNATIVE CAMPUSES (continued) Lamar AEP (9) Additions/Renovations: 1979/1986/2000 Square Footage Capacity Enrollment
2014
2013
2012
1952 -
OTHER BUILDINGS Annex A&B (CEC) Demo and Torn Down: 2010 Square Footage
27,174 225 93
27,174 225 107
1950 -
Annex C, D, & E Square Footage
1956
Boze Center (4) Additions:1952/1956/1968/1986 Square Footage
1930
Daniels Book Depository Additions:1991 Square Footage
1951
Education Center Additions:2003 Square Footage
1997
Gentry Long Service Center Additions:1985/1986/1987/2002 Square Footage
1975
Houston Staff Development Center (3) Additions:1954/1958/1969/1986/1988/1996/2004 Square Footage
1952
Lamar (9) Square Footage
1952
Textbook Depository (5) Square Footage
2013
-
3,672
3,672
3,672
18,632
18,632
18,632
10,159
10,159
10,159
77,921
77,921
77,921
77,447
77,447
77,447
53,847
62,947
62,947
27,174
11,000
-
11,000
Source: District records (1) (2) (3) (4) (5) (6)
Fannin Elementary became Fannin Middle School at the beginning of the 2011 fiscal year. Lee Middle School became Lee Elementary at the beginning of the 2011 fiscal year. Houston Elementary became Houston Staff Development Center at the beginning of the 2011 fiscal year. Boze Learning Center (Alternative Ed.) became the Boze Center at the beginning of the 2009 fiscal year. Year built of 2013 is actually the year the Textbook Depository building was purchased. Grand Prairie 9th Grade Center became Grand Prairie Fine Arts Academy at the beginning of the 2014 fiscal year. (7) Young Women's Leadership Academy at Arnold Middle School became a High School to include grades 6-8 at the beginning of the 2014 fiscal year. (8) Johnson Elementary became Johnson DAEP at the beginning of the 2014 fiscal year. (9) Lamar AEP students moved to Johnson DAEP in 2014. The Lamar building was reclassed to Other Buildings.
120
-
-
-
TABLE 18 Page 6 of 6
2011
2010
27,174 225 143
2009
2008
2007
2006
2005
27,174 225 111
27,174 225 161
27,174 225 107
27,174 225 138
27,174 225 124
27,174 225 109
15,654
15,654
15,654
15,654
15,654
15,654
3,672
3,672
3,672
3,672
3,672
3,672
3,672
18,632
18,632
18,632
10,159
10,159
10,159
10,159
10,159
10,159
10,159
77,921
77,921
77,921
77,921
77,921
77,921
77,921
77,447
77,447
77,447
77,447
77,447
77,447
77,447
-
62,947
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
121
(This page was intentionally left blank)
122
HLSK
Hereford, Lynch, Sellars & Kirkham Certified Public Accountants Conroe 1406 Wilson Rd., Suite 100 Conroe, Texas 77304 Tel 936-756-8127 Metro 936-441-1338 Fax 936-756-8132
•
A Professional Corporation
Members of the American Institute of Certified Public Accountants Texas Society of Certified Public Accounts Private Companies Practice Section of the AICPA Division for Firms
Cleveland 111 East Boothe Cleveland, Texas 77327 Tel 281-592-6443 Fax 281-592-7706
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
The Board of Trustees of Grand Prairie Independent School District 2602 S. Beltline Road Grand Prairie, Texas 75052 We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Grand Prairie Independent School District (District), as of and for the year ended August 31, 2014, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements and have issued our report thereon dated December 1, 2014. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the District’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the District’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the District’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 123
Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Respectfully,
Hereford, Lynch, Sellars & Kirkham, P.C. HEREFORD, LYNCH, SELLARS & KIRKHAM, P.C. Certified Public Accountants Conroe, Texas December 1, 2014
124
HLSK
Hereford, Lynch, Sellars & Kirkham Certified Public Accountants Conroe 1406 Wilson Rd., Suite 100 Conroe, Texas 77304 Tel 936-756-8127 Metro 936-441-1338 Fax 936-756-8132
•
A Professional Corporation
Members of the American Institute of Certified Public Accountants Texas Society of Certified Public Accounts Private Companies Practice Section of the AICPA Division for Firms
Cleveland 111 East Boothe Cleveland, Texas 77327 Tel 281-592-6443 Fax 281-592-7706
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133
The Board of Trustees of Grand Prairie Independent School District 2602 S. Beltline Road Grand Prairie, Texas 75052 Report on Compliance for Each Major Federal Program We have audited Grand Prairie Independent School District’s (District) compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the District’s major federal programs for the year ended August 31, 2014. The District’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of the District’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the District’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the District’s compliance. Opinion on Each Major Federal Program In our opinion, Grand Prairie Independent School District, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended August 31, 2014.
125
Report on Internal Control Over Compliance Management of the District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the District’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. Respectfully,
Hereford, Lynch, Sellars & Kirkham, P.C. HEREFORD, LYNCH, SELLARS & KIRKHAM, P.C. Certified Public Accountants Conroe, Texas December 1, 2014
126
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED AUGUST 31, 2014
SECTION I – SUMMARY OF AUDITORS’ RESULTS FINANCIAL STATEMENTS 1.
Type of auditors’ report issued
2.
Internal Control over Financial Reporting:
3.
Unmodified
a. Material Weakness(es) identified?
No
b. Significant Deficiency(ies) identified that are not considered to be material weaknesses?
None reported
Noncompliance material to the Financial Statements noted?
No
FEDERAL AWARDS 4.
Internal control over major programs: a. Material Weakness(es) identified?
No
b. Significant Deficiency(ies) identified that are not considered to be material weaknesses?
None reported
5.
Type of auditors’ report issued on compliance with major programs?
Unmodified
6.
No Any Audit Findings Disclosed that are Required to be Reported in Accordance with Section 510(a) of OMB Circular A-133?
7.
Identification of Major Programs
84.010A ESEA Title I, Part A Special Education Cluster 84.374A Teacher Incentive Fund TIF/TAP Grant
8.
Dollar Threshold Used to Distinguish Between Type A and Type B Federal Programs
$887,856
9.
Auditee Qualified as a Low-Risk Auditee?
Yes
SECTION II –FINANCIAL STATEMENT FINDINGS None reported
SECTION III-FEDERAL AWARD FINDINGS AND QUESTIONED COSTS None reported
127
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS FOR THE YEAR ENDED AUGUST 31, 2014
PRIOR YEAR FINDINGS None reported
128
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT CORRECTIVE ACTION PLAN FOR THE YEAR ENDED AUGUST 31, 2014
CURRENT YEAR FINDINGS None reported.
129
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT
EXHIBIT H-1
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED AUGUST 31, 2014 (1) Federal Grantor/ Pass-Through Grantor/ Program Title
(2) Federal CFDA Number
(2A) Pass-Through Entity Identifying Number
U.S. DEPARTMENT OF EDUCATION Direct: Indian Education Act, Title V
84.060A
S060A131185
Texas SEED Grant
84.367D
U367D130024
Passed Through State Department of Education: ESEA Title I, Part A - Improving Basic Programs ESEA Title I, Part A - Improving Basic Programs Total Program 84.010A
84.010A 84.010A
15610101057910 14610101057910
9,772 6,283,357 6,293,129
Special Education Cluster (IDEA): IDEA - Part B, Formula IDEA - Part B, Preschool Total Special Education Cluster (IDEA)
84.027A 84.173A
146600010579106600 146610010579106610
4,705,890 64,399 4,770,289
Career and Technical - Basic Grant Career and Technical - Basic Grant Total Program 84.048A
84.048A 84.048A
15420006057910 14420006057910
111,270 220,147 331,417
Public Charter Schools
84.282A
135900017110002
291,454
Title III, Part A - English Language Acquisition and Language Enhancement Title III, Part A - English Language Acquisition and Language Enhancement Total Program 84.365A
84.365A 84.365A
15671001057910 14671001057910
21,337 894,741 916,078
ESEA Title II, Part A - Teacher and Principal Training and Recruiting
84.367A
14694501057910
523,172
Improving Academic Achievement, Summer School LEP
84.369A
S369A120045
15,583
Texas Title I Priority Schools
84.377A
136107047110011
1,653,050
84.011A
14615001057950
15,569
84.196A
14-002
103,854
84.374A
S374A110176
970,622
Passed Through Region X Education Service Center: Title I, Part C - Migrant Education Program McKinney-Vento Homeless Education Passed Through Region XVIII Education Service Center: Teacher Incentive Fund TIF/TAP Grant
(3) Total Federal Expenditures
$
16,190 106,933
TOTAL U.S. DEPARTMENT OF EDUCATION
16,007,340
U.S. DEPARTMENT OF AGRICULTURE Child Nutrition Cluster: Passed Through State Department of Agriculture - Non-Cash Assistance: National School Lunch Program Passed Through State Department of Education - Cash Assistance: National School Lunch Program School Breakfast Program
10.555
00280
10.555 10.553
71301401 71401401
957,653 8,731,112 3,720,770
TOTAL U.S. DEPARTMENT OF AGRICULTURE - CHILD NUTRITION CLUSTER U.S. DEPARTMENT OF DEFENSE Direct: Reserve Officers' Training Corps
12.000
TOTAL EXPENDITURES OF FEDERAL AWARDS
13,409,535
N/A
178,316 $
The accompanying notes are an integral part of this schedule.
130
29,595,191
GRAND PRAIRIE INDEPENDENT SCHOOL DISTRICT NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED AUGUST 31, 2014
Basis of Presentation: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Grand Prairie Independent School District and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 and Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Presented below is a reconciliation of federal revenues: Total Expenditures of Federal Awards per Exhibit H-1 General Fund - Federal Revenue SHARS E-Rate Medical Assistance Program Total Federal Revenues per Exhibit B-2
131
$
29,595,191
$
2,908,618 420,675 64,999 32,989,483
