Comprehensive Annual Financial Report

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Comprehensive Annual Financial Report Comprehensive Annual Financial Report FOR THE FISCAL YEARS ENDED AUGUST 31, 2018 AND 2017 TARRANT COUNTY COLLEGE DISTRICT TEXAS Comprehensive Annual Financial Report For the Fiscal Years Ended August 31, 2018 and 2017 Prepared by: Finance Department Tarrant County College District Texas Tarrant County College District Comprehensive Annual Financial Report Table of Contents Page INTRODUCTORY SECTION Chancellor’s Letter ..................................................................................................... i Transmittal Letter ...................................................................................................... iii GFOA Certificate of Achievement .............................................................................. ix Elected Officials.......................................................................................................... x Principal Officials ....................................................................................................... xi Organizational Chart .................................................................................................. xii FINANCIAL SECTION Independent Auditor's Report ..................................................................................... 1 Management’s Discussion and Analysis...................................................................... 4 FINANCIAL STATEMENTS Statements of Net Position ................................................................................... 12 Statements of Revenues, Expenses and Changes in Net Position .......................... 14 Statements of Cash Flows .................................................................................... 15 Notes to Financial Statements .............................................................................. 16 REQUIRED SUPPLEMENTARY INFORMATION Schedule of the District’s Proportionate Share of the Net Pension Liability ............. 50 Schedule of District Contributions for Pensions ...................................................... 52 Notes to Required Supplementary Information....................................................... 54 Schedule of the District’s Proportionate Share of the Net OPEB Liability ............... 55 Schedule of District Contributions for OPEB .......................................................... 56 Notes to Required Supplementary Information....................................................... 57 SUPPLEMENTARY DATA Schedule of Operating Revenues ............................................................................ 60 Schedule of Operating Expenses by Object .......................................................... 62 Schedule of Non-Operating Revenues and Expenses ............................................ 64 Schedule of Net Position by Source and Availability ............................................ 66 STATISTICAL SECTION - (Unaudited) Net Position by Component ........................................................................................ 70 Revenues by Source .................................................................................................... 72 Program Expenses by Function ................................................................................... 74 Tuition and Fees ......................................................................................................... 76 Assessed Value and Taxable Assessed Value of Property ............................................. 78 State Appropriation Per FTSE and Contact Hour ........................................................ 80 Principal Taxpayers .................................................................................................... 82 Property Tax Levies and Collections ........................................................................... 84 Ratios of Outstanding Debt ........................................................................................ 86 Tarrant County College District Comprehensive Annual Financial Report Table of Contents (Continued) Page Legal Debt Margin Information .................................................................................. 88 Pledged Revenue Coverage ......................................................................................... 90 Demographic and Economic Statistics – Taxing District ............................................. 91 Principal Employers ................................................................................................... 92 Faculty, Staff and Administrators Statistics ................................................................. 96 Enrollment Details ..................................................................................................... 98 Student Profile .......................................................................................................... 102 Transfers to Senior Institutions ................................................................................. 105 Capital Asset Information ......................................................................................... 106 FEDERAL SINGLE AUDIT SECTION Schedule of Expenditures of Federal Awards ............................................................ 109 Notes to Schedule of Expenditures of Federal Awards ................................................ 112 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 ........................ 113 Independent Auditor’s Report on Compliance for Each Major Federal Program and Report on Internal Control over Compliance in Accordance with the Uniform Guidance ........................................................................................................... 115 Federal Schedule of Findings and Questioned Costs .................................................. 117 STATE SINGLE AUDIT SECTION Schedule of Expenditures of State Awards ................................................................. 119 Notes to Schedule of Expenditures of State Awards ................................................... 120 Independent Auditor’s Report on Compliance for Each Major State Program and Report on Internal Control over Compliance Required by UGMS Single Audit Circular .............................................................................. 121 State Schedule of Findings and Questioned Costs ...................................................... 123 Introductory Section Introductory Section CHANCELLOR’S LETTER Eugene V. Giovannini, Ed.D. Chancellor December 14, 2018 To the Board of Trustees: I am pleased to share the Comprehensive Annual Financial Report with you and with our commu- nity. Through this report, you will get a detailed picture of the District’s financial operations for fis- cal year 2018, which ended on August 31, 2018. Embarking upon my third year as TCC’s fifth chancellor, I am more confident than ever about the pivotal role Tarrant County College plays in our community. Given the ever-increasing tuition rates of four-year institutions and the long-term effects of student debt on the overall economy, communi- ty colleges have never been more vital than they are today. For a disproportionately large segment of our population, TCC represents the one viable path to a college degree or a skills credential, both of which profoundly affect an individual’s ability to obtain a meaningful job and live above the pov- erty line. Consider this: an individual with an associate degree will earn a median salary that is ap- proximately 17 percent higher than an individual with only a high school diploma. That’s why the Texas Higher Education Coordinating Board – the governmental agency tasked with overseeing all post-secondary education in the state – instituted its Texas 60x30 plan in 2015. Under this aggressive, but mission-critical plan designed to protect the state’s long-term financial vitality through a well-educated, well-prepared workforce, 60 percent of all Texas residents are expected to have a college degree or certificate by 2030. According to the Coordinating Board, “Sixty percent of Texans will need a certificate or degree for the state to stay competitive in the global economy. Right now, not nearly enough Texas students are completing the levels of education needed to fill the jobs that will be available.” We call those “new collar jobs” and we probably cannot predict what many of those jobs may look like. We just know that the state has hundreds of thousands of job openings that require training beyond high school, but not necessarily a baccalaureate degree… and that’s today. Texas 60x30 tasks us to meet this challenge while preparing for the future. i To the Board of Trustees Tarrant County College District Clearly, a plan of this magnitude requires collaboration and cooperation, and these are two of Tar- rant County College’s greatest assets. Data support what we already know to be true: the sooner we can get children onto the higher education path, the greatest their chances for continued educa- tional attainment will be. Through our robust Dual Credit program, which now includes more than 8,500 high school students throughout 16 Tarrant County school districts, high school students are taking college-level courses and earning transferable credits that will give them a significant head start – financially and academically – once they are matriculated. Through our eight
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