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Comprehensive Annual Financial Report 2018-2019

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Comprehensive Annual Financial Report 2018-2019 COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Years Ended August 31, 2019 and 2018 101 Baldwin Blvd. Corpus Christi, TX 78404-3897 This page intentionally left blank. Comprehensive Annual Financial Report For the Fiscal Years Ended August 31, 2019 and 2018 Prepared by Raul Garcia, CPA Vice President and Chief Financial Officer John Johnson Comptroller Catherine West, CPA, Ed.D. Director of Accounting and Budget Officer If you need this document in a different format, please contact the Office of the Vice President and Chief Financial Officer at (361) 698-1258. Del Mar College 101 Baldwin Blvd., Corpus Christi, Texas 78404-3897 www.delmar.edu Front cover photos: Student life and programs at Del Mar College Del Mar College COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEARS ENDED AUGUST 31, 2019 AND 2018 Table of Contents Page No. INTRODUCTORY SECTION Transmittal Letter .......................................................................................................................... 1 Board of Regents and Administration .......................................................................................... 11 Certificate of Excellence in Financial Reporting ......................................................................... 12 Organizational Chart .................................................................................................................... 13 FINANCIAL SECTION Independent Auditor’s Report ....................................................................................................... 17 Management’s Discussion and Analysis ....................................................................................... 21 Basic Financial Statements: Exhibit 1 Statements of Net Position ............................................................................................................ 41 Statements of Financial Position, Component Unit ...................................................................... 42 Exhibit 2 Statements of Revenues, Expenses and Changes in Net Position ................................................ 43 Statements of Activities, Component Unit .................................................................................. 44 Exhibit 3 Statements of Cash Flows ............................................................................................................ 45 Notes to Financial Statements ....................................................................................................... 47 Required Supplementary Information ........................................................................................... 95 Schedules Required by the Texas Higher Education Coordinating Board: Schedule A Schedule of Operating Revenues ................................................................................................. 99 Schedule B Schedule of Operating Expenses by Object .................................................................................. 100 Schedule C Schedule of Non-Operating Revenues and Expenses .................................................................. 101 i Del Mar College COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEARS ENDED AUGUST 31, 2019 AND 2018 TABLE OF CONTENTS (Continued) Page No. Schedule D Schedule of Net Assets by Source and Availability...................................................................... 102 STATISTICAL SECTION (UNAUDITED) Statistical Information ................................................................................................................... 105 Statistical Supplement 1 Net Position by Component (Unaudited) ...................................................................................... 107 Statistical Supplement 2 Revenues by Source (Unaudited) .................................................................................................. 108 Statistical Supplement 3 Program Expenses by Function (Unaudited) ............................................................................... 110 Statistical Supplement 4 Tuition and Fees (Unaudited) ....................................................................................................... 112 Statistical Supplement 5 Assessed Value and Taxable Assessed Value of Property (Unaudited) ...................................... 113 Statistical Supplement 6 State Appropriation Per FTSE and Contact Hour (Unaudited) ..................................................... 114 Statistical Supplement 7 Principal Taxpayers (Unaudited) ................................................................................................. 115 Statistical Supplement 8 Property Tax Levies and Collections (Unaudited) ....................................................................... 117 Statistical Supplement 9 Ratios of Outstanding Debt (Unaudited) ...................................................................................... 118 Statistical Supplement 10 Legal Debt Margin Information (Unaudited) ................................................................................ 119 ii Del Mar College COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEARS ENDED AUGUST 31, 2019 AND 2018 TABLE OF CONTENTS (Continued) Page No. Statistical Supplement 11 Pledged Revenue Coverage (Unaudited) ..................................................................................... 120 Statistical Supplement 12 Demographic and Economic Statistics – Taxing District (Unaudited) ........................................ 121 Statistical Supplement 13 Principal Employers (Unaudited) .................................................................................................. 122 Statistical Supplement 14 Faculty, Staff, and Administrators Statistics (Unaudited) ........................................................... 123 Statistical Supplement 15 Enrollment Details (Unaudited) ................................................................................................... 124 Statistical Supplement 16 Student Profile (Unaudited) ......................................................................................................... 125 Statistical Supplement 17 Transfers to Senior Institutions (Unaudited) ................................................................................. 126 Statistical Supplement 18 Capital Asset Information (Unaudited) ........................................................................................ 127 Statistical Supplement 19 Changes in Net Assets (Unaudited) ............................................................................................. 128 Statistical Supplement 20 Ad Valorem Tax Rates Authorized (Unaudited) ......................................................................... 130 Statistical Supplement 21 Property Tax Rates – All Direct and Overlapping Governments (Unaudited) ............................ 131 Statistical Supplement 22 Computation of Direct and Overlapping Debt (Unaudited) .......................................................... 133 iii Del Mar College COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEARS ENDED AUGUST 31, 2019 AND 2018 TABLE OF CONTENTS (Continued) Page No. FEDERAL AND STATE AWARDS SECTION Independent Auditor’s 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 ................................................. 137 Independent Auditor’s Report on Compliance for Each Federal Major Program and on Internal Control Over Compliance Required by the Uniform Guidance .............................................................................................. 139 Schedule of Federal Findings and Questioned Costs .................................................................... 141 Schedule E Schedule of Expenditures of Federal Awards ............................................................................... 143 Independent Auditor’s Report on Compliance for Each State Major Program and on Internal Control Over Compliance in Accordance with State Single Audit Circular ........................................................................... 147 Schedule of State Findings and Questioned Costs ........................................................................ 149 Schedule F Schedule of Expenditures of State Awards ................................................................................... 151 iv Introductory Section This page intentionally left blank. 1 College Profile Del Mar College District (DMC) is an independent political subdivision of the State of Texas located in Nueces County. The College started in 1935 under the control of Corpus Christi Independent School District’s Board of Trustees. In 1999, the College’s Board of Regents adopted Del Mar College District as the official name. The College’s enrollment has increased from 154 students since inception of the institution to over 25,000 students. The College’s instructional delivery space consists of a one college multi-campus model consisting of four locations throughout our district and service areas, with a planned campus expansion in the South location of Corpus Christi. The service areas include Nueces, Aransas, San Patricio Counties and parts of Kleberg and Kenedy Counties. Our course delivery sites include the East and West campuses, the Center for Economic Development, and the Northwest Center. In addition, the College will begin construction of a new 96-acre campus on the south side of Corpus
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