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Canutillo Independent School District El Paso, Texas

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Canutillo Independent School District El Paso, Texas CANUTILLO INDEPENDENT SCHOOL DISTRICT EL PASO, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2018 PREPARED BY FINANCIAL SERVICES DEPARTMENT CANUTILLO INDEPENDENT SCHOOL DISTRICT Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2018 Table of Contents Page Exhibit Introductory Section (Unaudited) .................................................... 1 Letter of Transmittal . .............................................................. 3 GFOA Certificate of Achievement for Excellence in Financial Reporting ....................... 19 ASBO Certificate of Excellence in Financial Reporting ..................................... 20 Canutillo ISD Organizational Chart ..................................................... 21 List of Elected and Appointed Officials (Directory) ........................................ 22 Certificate of Board . .............................................................. 23 Financial Section . ............................................................. 25 Independent Auditor's Report ......................................................... 27 Management’s Discussion and Analysis ................................................. 31 Basic Financial Statements .......................................................... 43 Government-Wide Financial Statements Statement of Net Position ....................................................... 44 A-1 Statement of Activities ......................................................... 45 B-1 Governmental Fund Financial Statements ................................................ 47 Balance Sheet - Governmental Funds . ............................................ 48 C-1 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ..................................................... 49 C-2 Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds ......................................................... 50 C-3 Reconciliation of the Governmental Funds Statement of Revenue, Expenditures, And Changes in Fund Balance to the Statement of Activities ......................... 51 C-4 Proprietary Fund Financial Statements .................................................. 53 Statement of Net Position ....................................................... 54 D-1 Statement of Revenues, Expenses, and Changes in Fund Net Position .................... 55 D-2 Statement of Cash Flows ........................................................ 56 D-3 Fiduciary Fund Financial Statements ................................................... 57 Statement of Fiduciary Assets and Liabilities ........................................ 58 E-1 Notes to the Basic Financial Statements ................................................. 59 Required Supplementary Information ................................................ 105 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - General Fund .............................................. 106 G-1 Notes to the Required Supplementary Information - Budget and Actual General Fund ........ 107 Schedule of the District’s Proportionate Share of the Net Pension Liability- Teacher Retirement System of Texas ............................................ 108 G-2 Schedule of the District’s Contributions for Pensions - Teacher Retirement System of Texas .. 109 G-3 Notes to Required Supplementary Information for Pensions ............................ 110 Schedule of the District’s Proportionate Share of the Net OPEB Liability- Teacher Retirement System of Texas ............................................ 111 G-4 Schedule of the District’s OPEB Contributions - Teacher Retirement System of Texas ....... 112 G-5 Notes to Required Supplementary Information for OPEB .............................. 113 CANUTILLO INDEPENDENT SCHOOL DISTRICT Table of Contents (Continued) Page Exhibit Combining and Other Statements .................................................... 115 Nonmajor Governmental Funds ..................................................... 116 Combining Balance Sheet ....................................................... 118 H-1 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .............................................................. 122 H-2 Agency Fund . .............................................................. 127 Statement of Changes in Assets and Liabilities ...................................... 128 H-3 Other Information - Required TEA Schedules .......................................... 129 Schedule of Delinquent Taxes Receivable .......................................... 130 J-1 Fund Balance and Cash Flow Calculation Worksheet ................................. 132 J-2 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Child Nutrition Program ..................................... 133 J-3 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Debt Service Fund .......................................... 134 J-4 Table Statistical Section (Unaudited) ....................................................... 135 Financial Trends . .............................................................. 137 Net Position by Component ...................................................... 139 I Expenses, Program Revenues, and Net (Expense)/Revenue ............................. 140 II General Revenues and Total Change in Net Position .................................. 142 III Fund Balances, Governmental Funds .............................................. 144 IV Revenue Capacity Information ........................................................ 147 Governmental Funds Revenues ................................................... 148 V Governmental Funds Expenditures and Debt Service Ratio ............................. 150 VI Other Financing Sources and Uses and Net Change in Fund Balances .................... 152 VII Assessed Value and Actual Value of Taxable Property ................................ 154 VIII Direct and Overlapping Property Tax Rates ......................................... 155 IX Principal Property Taxpayers .................................................... 156 X Property Tax Levies and Collections .............................................. 157 XI Debt Capacity Information ........................................................... 159 Outstanding Debt by Type ....................................................... 160 XII Direct and Overlapping Governmental Activities Debt ................................ 161 XIII Legal Debt Margin Information .................................................. 162 XIV Demographic and Economic Information ................................................ 165 Demographic and Economic Statistics ............................................. 166 XV Principal Employers ........................................................... 167 XVI Operating Information ............................................................... 169 Full-Time Equivalent District Employees by Type .................................... 170 XVII Operating Statistics ............................................................ 171 XVIII Building Information ........................................................... 172 XIX CANUTILLO INDEPENDENT SCHOOL DISTRICT Table of Contents (Continued) Page Exhibit Reports on Compliance, Internal Control and Federal Awards ............................ 175 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 ....................... 177 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance .................. 179 Schedule of Findings and Questioned Costs ......................................... 180 Schedule of Status of Prior Findings ............................................... 183 Schedule of Expenditures of Federal Awards ........................................ 184 K-1 Notes to Schedule of Expenditures of Federal Awards ................................. 185 INTRODUCTORY SECTION (UNAUDITED) 1 This page is left blank intentionally. 2 November 5, 2018 Letter of Transmittal To the Board of Trustees and Taxpayers of the Canutillo Independent School District: The Texas Education Code requires that all school districts file a set of financial statements with the Texas Education Agency (TEA) within 150 days of the close of each fiscal year. The financial statements must be presented in conformity with generally accepted accounting principles (GAAP) and audited by a firm of licensed certified public accountants in accordance with generally accepted auditing standards. Pursuant to this requirement, we hereby issue the Comprehensive Annual Financial Report of the Canutillo Independent School District (the District) for the fiscal year ended June 30, 2018. This report consists of management’s representations concerning the finances of the District. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. In order to provide a reasonable basis for making these representations, management of the District has established a comprehensive internal control framework that is designed to protect the District’s assets from loss, theft or misuse. Additionally, the internal control
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