Collin County Community College District

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Comprehensive Annual Financial Report

For the Fiscal Year Ended August 31, 2009

Prepared by:

Administrative Services COLLIN COUNTY COMMUNITY COLLEGE DISTRICT

Comprehensive Annual Financial Report

Fiscal Year Ended August 31, 2009

TABLE OF CONTENTS

INTRODUCTORY SECTION

Exhibit No. Page No. Schedule No. Table No.

Letter of Transmittal ...... 1 GFOA Certificate of Achievement ...... 13 Board of Trustees ...... 14 Officials and Staff ...... 15 Organizational Chart ...... 16

FINANCIAL SECTION

Independent Auditors’ Report ...... 17 Management‘s Discussion and Analysis ...... 19

Basic Financial Statements:

Statements of Net Assets As of August 31, 2009 and 2008 ...... Exhibit 1 ...... 28

Statements of Revenues, Expenses and Changes in Net Assets For the years ended August 31, 2009 and 2008 ...... Exhibit 2 ...... 29

Statements of Cash Flows For the years ended August 31, 2009 and 2008 ...... Exhibit 3 ...... 30

Notes to Basic Financial Statements ...... 32

Texas Higher Education Coordinating Board (THECB) Supplemental Schedules:

Schedule of Operating Revenues For the year ended August 31, 2009 ...... Schedule A ...... 54

Schedule of Operating Expenses by Object For the year ended August 31, 2009……… ………………..Schedule B ...... 56

Schedule of Non-Operating Revenues and Expenses For the year ended August 31, 2009 ...... Schedule C ...... 57

Schedule of Net Assets by Source and Availability As of August 31, 2009 ...... Schedule D ...... 58

STATISTICAL SECTION (Unaudited)

Statistical Section Categories…………………………………………………………………………….. 61

Net Assets by Component…… ...... Statistical Supplement 1 ...... 62

Revenues by Source ...... Statistical Supplement 2 ...... 63

Program Expenses by Function ...... Statistical Supplement 3 ...... 64

Tuition and Fees ...... Statistical Supplement 4 ...... 65

Assessed Value and Taxable Assessed Value of Property ...... Statistical Supplement 5 ...... 66

State Appropriation per FTSE and Contact Hour ...... Statistical Supplement 6 ...... 67

Principal Taxpayers ...... Statistical Supplement 7 ...... 68

Property Tax Levies and Collections ...... Statistical Supplement 8 ...... 70

Ratio of Outstanding Debt ...... Statistical Supplement 9 ...... 72

Legal Debt Margin Information ...... Statistical Supplement 10 ...... 74

Pledged Revenue Coverage ...... Statistical Supplement 11 ...... 76

Demographic and Economic Statistics ...... Statistical Supplement 12 ...... 78

Principal Employers ...... Statistical Supplement 13 ...... 79

Faculty, Staff and Administrators Statistics ...... Statistical Supplement 14 ...... 80

Enrollment Details ...... Statistical Supplement 15 ...... 82

Student Profile ...... Statistical Supplement 16 ...... 83

Transfers to Senior Institutions ...... Statistical Supplement 17 ...... 84

Capital Asset Information ...... Statistical Supplement 18 ...... 86

SUPPLEMENTARY FINANCIAL INFORMATION (Unaudited)

Schedule of Fund Assets and Liabilities – Unaudited As of August 31, 2009…………………………………………...... Exhibit A……………………...88

Schedule of Changes in Fund Balances - Unaudited For the year ended August 31, 2009 ...... Exhibit B……………….….....90

Schedule of Changes in Fund Balance – Unrestricted Current Funds – Auxiliary Enterprises - Unaudited For the year ended August 31, 2009………………………...... Schedule B-3……………..….92

Schedule of Bonds Payable – Unaudited For the year ended August 31, 2009 ……………………...... Schedule D-1………….……..95

Schedule of Debt Service Requirements – Unaudited For the year ended August 31, 2009…..…………………...... Schedule D-2………………...96

Schedule of Pledged Revenues and Fund Balances For Revenue Bonds Outstanding – Unaudited For the year ended August 31, 2009 ...... Schedule D-3……….…….…98

SINGLE AUDIT SECTION

Report of Independent Certified Public Accountants 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 ………………….….………………………………………...... ……..101

Report of Independent Certified Public Accountants on Compliance with Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 and State of Texas Single Audit Circular ...... 103

Schedule of Expenditures of Federal Awards ...... Schedule E ...... 105

Notes to Schedule of Expenditures of Federal Awards ...... 106

Schedule of Expenditures of State Awards ...... Schedule F ...... 108

Notes to Schedule of Expenditures of State Awards ...... 109

Schedule of Findings and Questioned Costs ...... 110

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December 15, 2009

Honorable Chairman, Board of Trustees, and President Collin County Community College District Plano, TX

Dear Board Members and President:

The following comprehensive annual financial report of the Collin County Community College District (“CCCCD”, “the District” or “Collin College”) for the fiscal year ended August 31, 2009, is hereby submitted. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the District. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to fairly present the financial position and results of operations of the District. All disclosures necessary to enable the reader to gain an understanding of the District's financial activities have been included.

The District is reporting as a special purpose government engaged solely in business type activity (BTA). Adhering to Governmental Accounting Standards Board (GASB) Statements 34 and 35, this presentation of financial reporting combines all fund groups into a single column and resembles the format of the corporate presentation, thus facilitating comparison. There are no significant component units of the District to report under GASB Statement 39.

State statutes require an annual audit by independent certified public accountants. The District’s Board of Trustees selected the accounting firm of Grant Thornton LLP. In addition to meeting the requirements set forth in state statutes, the audit also was designed to meet the U.S. Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non- Profit Organizations and the State of Texas Single Audit Circular. Information related to this single audit is included in the single audit section of this report.

As a recipient of federal, state, and local financial awards, the District is responsible for providing an adequate internal control structure to ensure compliance with applicable laws and regulations related to those programs. This internal control structure is subject to periodic review or evaluation by management, internal audit, and the independent auditors of the District. As a part of the District’s single audit, tests are made to determine the effectiveness of the internal control structure, including that portion related to major federal and state financial award programs. It is also used to determine that the District has complied with significant applicable laws and regulations. The results of the District’s single audit for the fiscal year ended August 31, 2009, provided no instances of material weakness in the internal control structure or significant violations of applicable laws and regulations.

The Administrative Services division is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the District are protected from loss, theft, or misuse, and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with accounting principles generally accepted in the United States. 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; and 2) the valuation of costs and benefits require estimates and judgments by management.

This report includes all funds of the District. The Board of Trustees has no financial accountability over Collin County, related foundations, or any other governmental unit, and accordingly, only the financial data for CCCCD is included in this report.

As demonstrated by the statements and schedules included in the financial section of this report, the District continues meeting its responsibility for sound financial management. Refer to the Management’s Discussion and Analysis for more information on the District’s financial activity and position.

PROFILE OF THE GOVERNMENT

Governmental Structure and Information Collin County Community College District’s mission is to provide students a community centered institution committed to developing skills, strengthening character and challenging the intellect. The student body is comprised mainly of residents of Collin County and surrounding communities.

The District strives to offer affordable, small, personalized classes and award- winning faculty in a safe and friendly environment allowing students to fulfill their potential and achieve their goals. The college promotes life-long learning and the opportunity for its residents to further their education regardless of their schedule, time and distance constraints.

The District was established as a public community college in an election held in Collin County, Texas, on April 6, 1985, in accordance with the laws of the State of Texas. It operates as a community college district under the Constitution of the state of Texas and the Texas Education Code. The District is governed by an elected, nine-member Board of Trustees (hereinafter called the “Board”). At each election (the first Saturday in May in even-numbered years), three Trustees are elected to serve in a six-year, at-large position. The Board holds regularly

scheduled meetings on the fourth Tuesday of each month. Board meetings are held in the Board Room at the Courtyard Center campus located in Plano or as noted in the notice for a meeting in accordance with public notice requirements.

The Board has the final authority to determine and interpret the policies that govern the District. It has complete and full control of the District’s activities limited only by the state legislature, the courts, and the will of the people as expressed in Board of Trustee elections. Official Board action is taken only in meetings that comply with the Open Meetings Act and are based on a majority vote of a quorum (five members) of the Board.

In general, the Board provides policy direction and sets goals for the District consistent with the District's role and mission. Besides general Board business, trustees are charged with numerous statutory regulations, including appointing the tax assessor/collector, ordering elections, and issuing bonds. The Board is also responsible for appointing the President, setting the tax rate, causing the preparation and adoption of a budget for the ensuing fiscal year, and employing faculty and other employees of the District.

Collin County Community College District is accredited by the Commission on Colleges of the Southern Association of College and Schools (SACS) to award associate degrees and certificates. An associate degree is an award that normally requires at least two but less than four years of full-time equivalent college work. The college offers Associate of Arts, Associate of Arts in Teaching, Associate of Science and Associate of Applied Science degrees and certificate programs.

The District continues to also meet the needs of the community in developing a professional workforce by expanding the educational opportunities available to its residents. The District provides training for many of the county’s essential service positions such as police officers, emergency medical technicians, nurses, dental hygienists, respiratory therapists and teachers.

CCCCD is located in Collin County which is in the Dallas metropolitan area of North Central Texas. The county consists of 889 square miles with a population density of approximately 860 residents per square mile. Collin County continues to be one of the fastest growing areas in the region increasing by 2.2 percent or approximately 16,450 persons in 2009. There was a slowing of growth this year due to the national mortgage crisis and economic recession but we do not anticipate any long-term consequences.

According to the North Central Texas Council of Governments, Collin County has an estimated 2009 population of 764,500. The Collin County cities with the largest 2009 population increases were McKinney (3,650), Frisco (3,200), and Plano (2,900). Other cities with significant increases in growth percentages include Lavon (15.4%), Melissa (12.8%), and Prosper (11.8%). In the past ten years, Collin County has experienced an increase in population of almost fifty-four percent (54%) as illustrated by the graph below.

Collin County Population 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 3 4 5 6 7 8 9 -00 -01 -02 -0 -0 -0 -0 0 0 0 9 00 01 02 03 04 05 06- 99 0 0 0 0 0 0 0 1 2 2 2 2 2 2 2 2007- 2008-

Component units The Collin County Community College District Foundation (the “Foundation”) is a nonprofit organization with the sole purpose of supporting the educational and other activities of the District. The District does not appoint a voting majority nor does it fund or is it obligated to pay debt related to the Foundation. The Foundation solicits donations and acts as coordinator of gifts made by other parties. During the fiscal year, the District furnished certain services, such as

office space, utilities and staff assistance to the Foundation. The costs of these services were not significant to the District. The financial position of the Foundation as a whole is also not significant to the District and therefore it is not included as a component unit for financial reporting purposes.

Inter-local agreements and partnerships The District’s commitment to provide programs and services to the communities it serves is reflected by the many partnerships with local cities and schools. Such agreements are efficient and cost-effective. The District leases approximately 15 acres of land located on the northeast corner of the Preston Ridge Campus to the City of Frisco to provide parkland for the city. It is a 25- year lease with an option to extend it to insure that the area remains a permanent outdoor recreation facility. Through an agreement with the City of Plano, the District shares the use of Oak Point Recreation Center, which has indoor and outdoor pools. The Center is located adjacent to the Spring Creek Campus. CCCCD also has an agreement with the City of Plano to provide an automated Library System to the District. CCCCD has an inter-local agreement with the City of McKinney whereby the City has a fire station located on the Central Park Campus. There is a classroom in the fire station dedicated to the Fire Science Training program. Other inter-local agreements include ones with the Allen ISD, Rockwall ISD, and Texas A & M University at Commerce to create satellite campuses to benefit students and staff. CCCCD has reciprocal technical/occupational course agreements with the Dallas County Community College District and Grayson County College, allowing students to enroll in programs not available in their home district at the in-county tuition rate. The District’s Fiber Optic Wide Area Network (WAN), which is approximately 54.4 miles long, surrounds the county and connects our campuses with high speed communications. The WAN was constructed with 48 strands of fiber and CCCCD entered into an inter-local agreement with Collin County to lease up to sixteen strands of fiber to the County. The District also has an agreement with the Department of Homeland Security/Collin County Health Care Services to establish procedures to utilize the District’s facilities and staff in case of a public health emergency.

CCCCD participates in several cooperative purchasing programs that offer volume discounts for items commonly purchased by a number of public entities. Purchases made through these contracts meet the competitive bid requirements as set forth by the State statutes and provides a method for the District to efficiently utilize its resources.

Budget Administrative Services maintains the District’s budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the District’s Board of Trustees. Activities of the unrestricted current funds, auxiliary enterprise funds, restricted funds, unexpended plant funds, and retirement-of-indebtedness funds are included in the annual appropriated budget. The District also maintains an encumbrance accounting system which includes full-time payroll costs as a

method for accomplishing budgetary control. Any encumbered amounts lapse at year-end and generally are re-appropriated as part of the next year’s budget.

ECONOMIC CONDITION

Local economy Major industries located within the County consist of retail, finance, education, computer technology, electronics, telecommunications, health care, food industry, and insurance institutions. The local economy has been negatively affected by the national recession, but did have some growth. Possessing a well educated workforce is a key factor in an area’s ability to attract new businesses and maintain economic growth. Residents of Collin County are typically well educated and are a valuable resource of skilled professionals for companies who locate to this area. Another critical factor for a growing economy is the availability of workforce training. CCCCD regularly consults with employers in the area to determine their needs and develops training to fulfill those needs. Given the area’s readily accessible workforce training, the desirability of the location, the excellence of the school districts, the proximity of family entertainment including shopping, fine arts, professional sports, entertainment parks, and the wealth of well trained individuals, the District is optimistic that Collin County will continue to prosper.

The County had a civilian employed labor force from August 2008 to August 2009 of approximately 413,119, which was an increase of 1.9 percent over fiscal year 2008. The Collin County unemployment rate of 7.7 percent was lower than the state unemployment rate of 8. percent and the national unemployment rate of 9.7 percent in August 2009 but higher than the county’s unemployment rate of 4.8 percent last year.

Community colleges are playing an increasingly important role in the state’s workforce and economic development. Job and economic development depends on the strength of having a trained and educated workforce. As the economy changes due to automation, increased productivity, and advanced technology, the demand for physical jobs begins to decrease and workers are under greater pressure to learn new skills. In these difficult economic times, community colleges are important in helping grow the state economy.

Student enrollment at public two-year institutions in Texas has outnumbered enrollment in public four-year universities for the past ten years and state officials expect that trend to continue. The Collin County Community College District saw increased enrollment in the fall 2008 and spring 2009 semesters. The challenge for CCCCD and other community colleges in Texas is in trying to expand campuses, buildings, faculty, and staff to meet the educational needs of an increasing number of students with limited funding. There is concern about the amount of future funding from the state. In 2009, the formula produced State appropriations of $2,459 per full-time student equivalent (FTSE). For 2006, 2007, 2008, the District received $2,451, $2,342, and $2,513 per FTSE, respectively. The total taxable value for Collin County property has increased

during the past ten years. The District’s property values increased by 4.95 percent for fiscal year 2008-2009, putting CCCCD’s total tax roll at $72.1 billion. Another indicator of the economic health is the Consumer Price Index (CPI) which decreased 2.8 percent from July 2008 to July 2009 for the Dallas-Fort Worth area.

There was no tuition and fee rate increase per credit hour for in-county residents during fiscal year 2009. The tuition and fees at Collin County Community College District continue to rank in the lowest quartile among colleges and universities in the state of Texas. A quality education at CCCCD remains an smart economical choice and a wise investment.

Semester credit enrollment at CCCCD for 2008-2009 grew for the fifteenth consecutive year to 14,043 full time student equivalent (FTSE) on census date, an increase of 2.2 percent over 2007-2008. The following chart reflects the District’s FTSE growth, an increase of 84 percent over the past ten years.

FTSE - Credit Students 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 0 1 2 3 4 5 6 7 8 9 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 9 0 1 2 3 4 5 6 7 8 9 0 0 0 0 0 0 0 0 0 9 0 0 0 0 0 0 0 0 0 1 2 2 2 2 2 2 2 2 2

CCCCD remains a valuable resource to the community in updating the skills necessary to obtain the new jobs of the 21st century by providing training and degrees in growth industries, such as technology and health care, which are projected to have the greatest increase in demand.

Long-term financial planning The District’s budget development begins with updating and reviewing a multiyear budget model to ensure adequate funding is available to implement current as well as long-term initiatives.

Future major construction projects include the Higher Education Center to be completed in McKinney, a major expansion of the Central Park Campus Phase 1 has been completed and phase 2 has begun, Preston Ridge campus new parking garage, conference center, and classroom building, and renovation of the Courtyard Center.

To further promote excellence, the District also develops well-defined and ambitious goals it plans to achieve each biennium and identifies indicators to

measure its success in meeting those goals. The District reviews these Strategic Goals and Achievement Indicators annually. The 2007 through 2009 Strategic Goals are as follows:

Goal 1: Create and elevate programs and services that foster a scholarly community.

Goal 2: Implement and expand Center(s) of Excellence in Healthcare to provide comprehensive solutions to the needs of the local healthcare industry.

Goal 3: Implement new software systems and technologies to assure quality services and information for students, faculty, and the community.

Goal 4: Identify and design academic programs that meet the evolving needs of the business community.

Goal 5: Create Campus and Destination College Centers to broaden educational access for all residents of the District.

Relevant financial policies Cash Management - During the year, cash temporarily idle was invested in TexPool and TexSTAR, both public funds investment pools. Additionally, the District invested a portion of its temporarily idle funds in U.S. government agency discount notes, to further diversify its investment portfolio. The average yield on investments was 0.99 percent in TexPool and 0.93 percent in TexSTAR. The District’s investment performance is higher than the average yield rate of 0.28 percent for 90-day U.S. Treasury bills. The District had investment income of $2,412,354 net of investment expenses on all investments for the year ended August 31, 2009.

The District’s investment policy is required by statute to be reviewed and updated annually. It is designed to minimize credit and market risks while maintaining a competitive yield on the portfolio. Accordingly, bank deposits were either insured by federal depository insurance or collateralized throughout the year. The securities pledged to the District as collateral are held by the Federal Reserve Bank, which acts as the pledging bank’s agent.

CCCCD received the Certificate of Distinction from the Government Treasurers Organization of Texas for its Investment Policy for the second straight time. The Certificate of Distinction program is designed to provide professional guidance in developing an investment policy and to recognize outstanding examples of written investment policies. The award is valid for two years.

Risk Management - Risk Management is the ongoing process by which financial loss and exposure to risk are assessed and action is taken to minimize risk, to transfer risk, or to finance risk through various devices, including insurance. All areas of the District are reviewed for possible risk management and loss-control

activities. The Vice President of Administration and CFO is responsible for recommending to the President and the Board the amounts of insurance the District should carry and the amount of risk the District should assume through coinsurance and deductibles. The District strives to develop risk management programs which help better manage its resources.

Programs covered under insurance include Property, Liability, Employee Educators Liability, Employer Dishonesty Coverage, Interscholastic Accident Insurance, Student Medical Professional Liability, Unemployment Compensation, and Workers' Compensation. Additionally, all eligible employees are provided with paid medical, dental, life, and accidental death and dismemberment insurance. Dependent coverage is also available at group rates.

For unemployment compensation, the District participates in a program offered by the Texas Association of School Boards (TASB). Participation through TASB is in lieu of being a taxing employer with rates set by the Texas Employment Commission. Rates are factored according to the experience and size of the District. The program is a form of self-insurance with stop-loss coverage.

The District participates in a self-funded workers' compensation insurance program that is administered by Deep East Texas Self Insurance Fund. The District pays a premium to Deep East Texas Self Insurance Fund for the fixed cost and loss fund maximum.

AWARDS AND ACKNOWLEDGEMENTS

Major initiatives The District has been recognized and honored for its dedication to excellence and innovative endeavors. National, state, and local awards and academic milestones during the past year have validated the District’s place as a leader in higher education. A partial list of our accomplishments and major initiatives includes:

• The college announced the university partners and programs that will be offered at its new site in McKinney, the Collin Higher Education Center. The district will partner with universities to offer junior- and senior-level college courses as well as graduate and doctoral degree programs. The new Collin Higher Education center will also house selected administrative departments now located at the Courtyard Center.

• Collin College opened its new library at its Central Park Campus in McKinney. Renovations were also completed to the existing building, which included the new student development center, bookstore, science labs, a surgical technology lab and parking garage.

• The Texas Higher Education Coordinating Board rated Collin College’s real-estate, nursing and child-development programs as

being “exemplary.” This is the third time for real-estate and the second time for nursing to receive this award.

• THECB also awarded Collin College’s nursing program a $25,000 grant for top graduation and licensure rates. Only Collin College, Stephen F. Austin State University and Texas A&M University-Corpus Christi received this prestigious honor for achieving graduation and licensure rates of 85 percent or above for the 2008 academic year. Collin College December 2008 nursing student graduates had a 100 percent NCLEX-RN pass rate on their first attempt.

• For the fall 2009, the Institute of Hospitality and Culinary Education opened a newly renovated facility totaling 9,200 square feet including three teaching kitchens, a classroom/restaurant lab, ingredients room, central dish room and faculty offices. A third kitchen will come on line for the spring 2010 semester.

• Collin College has been approved by the Department of Aging and Disability Services (DADS) to begin a Certified Nursing Assistant (CAN) program. The associate of applied science degree in biotechnology was granted program recognition by the Texas Skill Standards Board (TSSB). The college also introduced a new International Business associate of applied science degree and a Green associate of applied science degree.

• Twelve Collin College students, plus two professors visited NASA Johnson Space Center for three days as part of the Community College Aerospace Scholars program sponsored by the Texas Legislature and NASA.

• Collin College took home two Successful Transfer Enhancement Programs (STEP) awards for its pre-admission program at the Texas Transfer Success Conference May 2009. The program won bronze in both the Student Services and Development and Collaboration Between Two- and Four-Year Colleges categories.

• Collin College was recognized by the Case Foundation as one of 16 institutions across the country to watch for civic endeavors. The Case Foundation is an organization dedicated to finding lasting solutions to complex social problems, including expanding civic engagement and volunteerism. Only six colleges and universities across the United State were selected.

Organizations, professors, staff and students of the district also received the following special recognition during the year:

• Collin College’s Students in Free Enterprise (SIFE) won two awards from the SIFE United States Regional Competition in Philadelphia.

They were second runner-up in the opening round and named National Rookie of the Year. This positioned Collin College SIFE as a top-12 community college team nationally.

• A Collin nursing professor has been selected for induction into the National League for Nursing’s Academy of Nursing Education. She joins the academy’s 21 fellows this year representing nursing schools and programs throughout the United States.

• Collin College’s Alpha Mu Tau Chapter of Phi Theta Kappa won several awards at the Texas Regional Convention. The Alpha Mu Tau Chapter won the Continued Excellence Award. This award is given to the top chapter in Texas that has consistently been a top chapter for several years in a row. It is the second highest award in the Texas Region. Several individual members and the sponsor also received awards.

• For the second straight year, a Collin College professor was named a Piper professor by the Minnie Stevens Piper Foundation in 2009. The professor is one of 15 professors statewide to be honored. This is the fifth Piper Professor to have taught at Collin College.

• The Collin College President was named the national Pacesetter of the Year by the National Council for Marketing and Public Relations (NCMPR) in the spring 2009. This award is the most prestigious honor presented by the council. It recognizes a chief executive officer at a community college who has demonstrated extraordinary leadership and support of college communications and marketing.

The District offers students and the public a wide variety of theatre, music and dance programs, art exhibits, athletic events and a guest lecture series bringing renowned scholars to Collin County Community College District campuses. CCCCD also has athletic teams in men’s and women’s basketball and tennis. The men’s and women’s tennis coach and the men’s basketball coach were selected as the NJCAA Region V Coach of the Year in their respective sports.

The Continuing Education and Workforce Development Division offers many individual and customized courses from language skills to web server administration. Through CCCCD’s Business Solutions Group, the District provides customized training to several companies and public entities each year.

CCCCD offers various alternatives to the traditional day and evening classroom such as online classes and Weekend College. The Weekend College provides the opportunity to complete the entire core curriculum of the Associate of Arts, Associate of Science or Associate of Arts in Teaching degree, with a variety of schedule options of Friday evenings, Saturday mornings, Saturday afternoons, Sunday afternoons or any combination without interrupting the work week.

Through the Service Learning program, many of our instructors have integrated service projects into their class work, benefiting both the community and the student through external hands-on learning experiences and encouraging the application of knowledge to real-life situations. In the past year, students in the Service Learning program volunteered more than 10,000 hours in the Collin County Community.

The District’s fitness centers, gymnasium, libraries, tennis courts and racquetball courts are also available to the public as well as to students.

Certificate of Achievement The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Collin County Community College District for its comprehensive annual financial report (CAFR) for the fiscal year ended August 31, 2008. This was the twelfth consecutive 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 Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.

Acknowledgments The preparation of this report could not have been accomplished without the efficient and dedicated services of the staff of Administrative Services, particularly in the Accounting Department. We would also like to thank the accounting firm of Grant Thornton LLP for their assistance and timely completion of the audit. Due credit should be given to the governing Board and President for their interest in planning and conducting the operations of the District in a responsible manner.

Respectfully submitted,

Ralph G. Hall Julie Bradley Vice President of Administration & CFO Associate Vice President of Financial Services and Reporting

Joseph E. Madden Associate Vice President and Controller

BOARD OF TRUSTEES

The Board of Trustees is a nine member governing board that serves without compensation and is elected at large for six-year terms of office by the voters of Collin County. The Board manages and governs the Collin County Community College District, provides policy direction,

Dr. J.R. (Bob) Collins, establishes goals, and appoints Brenda Willard Chairman Goodell, Vice Chair the faculty and staff. The Board is also responsible for the levy, assessment, and collection of taxes, the issuance of bonds, the adoption of an annual budget, the execution of contracts, and the performance of an annual audit. The Board of Trustees sets campus admission standards consistent with the role and mission of the District. Regular Cynthia W. Bauge, Stacy Anne Arias, board meetings are held the fourth Cynthia W. Bauge, Secretary Treasure r Tuesday of each month and are Secretary open to the public. The Collin County Community College District Trustees are committed to the mission and vision of the college. The Board of Trustees provides leadership and direction, as well as represents the college in a wide range of community activities and committees.

Mac Hendricks Dr. E.T. Boon

Fortino (Tino) Trujillo Sam Roach Dr. David Hammel

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT

Officials and Staff

Elected Officials

Board of Trustees City Term Expires

Dr. J. Robert Collins Chairman, Place 8 Farmersville, Texas May 2014

Brenda Willard Goodell Vice Chair, Place 9 Celina, Texas May 2014

Cynthia W. Bauge Secretary, Place 2 Plano, Texas May 2010

Stacy Anne Arias Treasurer, Place 5 Celina, Texas May 2012

Dr. David Hammel Place 1 Parker, Texas May 2010

Dr. E. T. Boon Place 3 Allen, Texas May 2010

Sam Roach Place 4 Frisco, Texas May 2012

Mac Hendricks Place 6 McKinney, Texas May 2012

Fortino P. (Tino) Trujillo Place 7 Plano, Texas May 2014

Principal Administrative Officers

Name Position

Dr. Cary Israel President

Ralph G. Hall Vice President of Administration and CFO

Dr. Toni Jenkins Vice President / Provost Preston Ridge Campus

Dr. Mary McRae Vice President / Provost Central Park Campus

Dr. Tom Rodgers Vice President / Provost Spring Creek Campus

Dr. Barbara Money Vice President of Student Development

Kim Russell Vice President of Organizational Effectiveness and Human Resources

15 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Organizational Chart

Citizens

Board of Trustees

President

VP of Student Associate VP of Director of Public VP/Provost SCC Associate VP of VP/Provost PRC VP/Provost CPC VP of Development Organizational Administrative Strategic Initiatives Relations Effectiveness & Services/CFO Human Resources Dean Advising Continuing Dean Health 16 Communication & Education/ Sciences & Internal Institutional Research Humanities Staff Development Workforce Emergency Compliance Athletic Director & Development Services Physical Education Dean Social & Construction/ Center for Scholarly Behavioral Dean & Civic Human Resources Dean of Academic Facilities Developmental Sciences Counseling Affairs, PRC Engagement Education Information Dean Mathematics Dean Engineering Technology Transfer Programs Dean of Academic & Natural Sciences Student Life & Emerging Affairs, CPC Technology Police Dept. Outcomes & Quality Respective Financial Aid Respective Enhancement Campus Academic Executive Director Campus Academic Areas of Development & Areas Registration/ Foundation Purchasing Admission

Dean Business & Testing/ Auxiliary Services Computer Science Assessment Notes

Recruitment/ Respective Accounting Blue highlight denotes Leadership Team Retention Campus Academic (CCCCD’s executive level involved in all Areas aspects of the college’s decision making process.) Budget Dean of Students

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Management’s Discussion and Analysis Fiscal Year Ended August 31, 2009

Overview of the Financial Statements and Financial Analysis

Collin County Community College District (the District) is proud to present its financial statements for Fiscal Year 2009 which are in conformance with Governmental Accounting Standards Board (GASB) standards. There are three financial statements presented: the Statement of Net Assets; the Statement of Revenues, Expenses and Changes in Net Assets; and the Statement of Cash Flows. These statements should be read in conjunction with the notes to the basic financial statements. The following summary and management’s discussion and analysis of the results is intended to provide readers with an overview of the basic financial statements.

Some of the financial highlights of the Fiscal Year are as follows:

• Assets of the District exceeded liabilities at the close of the Fiscal Year on August 31, 2009, by $340.5 million (net assets). Of this amount, $183.1 million (unrestricted net assets) may be used to meet the District’s ongoing obligations.

• Total net assets increased by $31.4 million from Fiscal Year 2008 to Fiscal Year 2009. This increase can be attributed to increases in ad-valorem tax revenue, tuition and fee revenue, and grants and contracts revenue. Fiscal Year 2009 assessed property valuations increased 4.9% producing an increase in property tax revenues. Student FTE (Full Time Equivalent) enrollment for this same time increased 7.3%. In addition, there was a $10 per credit hour tuition increase for out-of-county students and a $10 per credit hour tuition increase for out-of- state/country students effective Spring 2009 which generated additional tuition and fee revenue. Grants and contracts revenue increased due to an increase in federal Pell grants.

• The District’s total debt decreased to $57.1 million primarily due to payments made during the year of $2,250,000 on the General Obligation Bonds.

Statement of Net Assets

The Statement of Net Assets presents the assets, liabilities, and net assets of the District as of the end of the Fiscal Year. It is a point in time financial statement. The purpose of the Statement of Net Assets is to give the financial statement readers a snapshot of the fiscal condition of Collin County Community College District. It presents end-of-year data for Current and Noncurrent Assets, Current and Noncurrent Liabilities, and Net Assets (Assets minus Liabilities). Also shown is the sum of Total Liabilities and Net Assets which equals Total Assets.

From the information shown, financial statement readers are able to determine the assets available to continue the operations of the District. The reader can also determine how much the institution owes vendors and bondholders. The net assets and their availability for expenditure can be determined as well.

Net assets are divided into three major categories. The first category, invested in capital assets, net of related debt, provides the District’s equity in property, plant and

19 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Management’s Discussion and Analysis Fiscal Year Ended August 31, 2009 equipment it owns. The next net asset category is restricted net assets. These assets have external limitations on the way in which they may be used. The last category is unrestricted net assets. They are available to use for any lawful purpose of the District.

Total assets of the District for Fiscal Year 2009 are $421,941,249, an increase from $388,940,168 in Fiscal Year 2008 and $354,448,086 in Fiscal Year 2007. Total assets increased from Fiscal Year 2008 to Fiscal Year 2009 primarily due to an increase in cash and capital assets. The total assets continue to increase as indicated in the following chart:

500,000,000 421,941,249 450,000,000 388,940,168 400,000,000 354,448,086

350,000,000

300,000,000

250,000,000

Dollars 200,000,000 150,000,000 100,000,000 50,000,000 0 2007 2008 2009

Current assets are comprised of several categories. Cash and cash equivalents include the District’s cash and investments in TexPool and TexSTAR, which are both statewide investment pools. In Fiscal Year 2009, cash and cash equivalents increased by $61.4 million from the Fiscal Year 2008 amount of $135,739,239 and investments decreased to $0 in Fiscal Year 2009 from $71,604,903 in Fiscal Year 2008. This is due to the movement of District funds from government agencies to investment pools. The total of cash and cash equivalents and investments decreased to $197.1 million in Fiscal Year 2009 compared to $207.3 million in Fiscal Year 2008. Receivables include tuition and fees receivable, accounts receivable, and taxes receivable. Prepaid expenses and inventories are also assets of the District. Non-current assets consist of capital assets and a contract receivable. Capital assets include land, land improvements, buildings, equipment, WAN/LAN network equipment, library books and construction in progress, and are shown net of accumulated depreciation. The contract receivable is related to the sale of land at the Central Park Campus. Further information regarding noncurrent assets is shown in Notes 2(h) and 5 in the Notes to Basic Financial Statements.

Total liabilities of the District are $81,443,668 in Fiscal Year 2009 as compared with $79,877,893 in Fiscal Year 2008 and $81,963,329 in Fiscal Year 2007 and also include a current and non-current portion. Total liabilities increased from Fiscal Year 2008 to Fiscal Year 2009 due to an increase in accounts payable and unearned revenue. Current liabilities include accounts payable and accrued liabilities, funds held for

20 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Management’s Discussion and Analysis Fiscal Year Ended August 31, 2009 others, deferred revenue, accrued compensable absences payable and the current portion of bonds payable. A liability is considered to be current if it is due within one year. The two non-current liabilities are accrued compensable absences payable and the remainder of the bonds payable representing the portion which is not due within one year. Further information regarding long-term liabilities is shown in Notes 6, 7, and 8 in the Notes to Basic Financial Statements.

Net assets represents the District’s equity, some of which is restricted for certain uses and some of which is unrestricted.

2009 2008 2007 Assets: Current Assets $ 206,276,658 $ 214,965,417 $ 202,821,736 Capital Assets 211,414,591 168,974,751 146,626,350

Other Noncurrent Assets 4,250,000 5,000,000 5,000,000 Total Assets 421,941,249 388,940,168 354,448,086

Liabilities: Current Liabilities 26,964,460 22,182,108 18,514,515

Noncurrent Liabilities 54,479,208 57,695,785 63,448,814

Total Liabilities 81,443,668 79,877,893 81,963,329

Net Assets Invested in capital assets, net of related debt 154,294,591 108,769,751 85,151,890 Restricted – Expendable 3,111,119 2,878,393 5,245,704

Unrestricted 183,091,871 197,414,131 182,087,163

Total Net Assets 340,497,581 309,062,275 272,484,757

Total Liab. and Net Assets $ 421,941,249 $ 388,940,168 $ 354,448,086

Statement of Revenues, Expenses and Changes in Net Assets

The purpose of the Statement of Revenues, Expenses and Changes in Net Assets is to present the revenues earned by the District, both operating and non-operating, and the expenses incurred, operating and non-operating, and any other revenues, expenses, gains and losses received or spent by the District. Generally operating revenues are received for providing goods and services to the various customers of the District.

21 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Management’s Discussion and Analysis Fiscal Year Ended August 31, 2009 Operating expenses are those paid to acquire or produce the goods and services provided in return for the operating revenues, and to carry out the District’s mission. Non-operating revenues are funds received for which goods and services are not provided.

2009 2008 2007 Operating Revenues: Tuition and fees, net $ 22,498,442 $ 19,489,224 $ 18,277,273 Federal grants and contracts 1,066,775 873,556 1,072,664 State grants and contracts 943,864 687,929 389,576 Non-governmental grants and contracts 9,240 23,991 11,862 Sales and services of educational activities 313,790 302,878 274,927 Auxiliary enterprises 8,403,605 7,683,019 8,355,599

Other operating revenues 93,012 214,742 235,532

Total Operating Revenues 33,328,728 29,275,339 28,617,433

Operating Expenses: Instruction 48,239,642 42,794,701 39,935,069 Public service 502,870 454,130 621,999 Academic support 10,968,150 8,453,432 7,664,703 Student services 8,164,472 7,842,678 7,123,789 Institutional support 11,402,452 11,146,898 10,753,717 Operation and maintenance of plant 9,799,019 9,526,095 8,531,481 Scholarships 6,839,746 4,226,017 3,298,728 Auxiliary enterprises 8,687,861 8,008,239 8,343,012

Depreciation 5,614,898 5,066,598 4,292,962

Total Operating Expenses 110,219,110 97,518,788 90,565,460

Operating Loss (76,890,382) (68,243,449) (56,838,330)

Non-Operating Revenues (expenses): State appropriations 34,736,692 34,531,169 30,348,597 Maintenance ad-valorem taxes: Taxes for maintenance and operations 57,771,468 54,584,586 49,296,819 Taxes for general obligation bonds 4,681,934 4,758,228 4,710,749 Federal grants and contracts 8,071,608 5,969,004 5,109,697 Gifts 2,904,466 75,503 324,320 Investment income, net 2,412,354 7,255,898 10,034,876 Interest on capital related debt (2,444,297) (2,519,323) (2,805,393)

Other non-operating revenues, net 191,463 165,902 7,560,259

Net non-operating revenues 108,325,688 104,820,967 104,579,924

Increase in Net Assets 31,435,306 36,577,518 42,631,897

Net Assets - Beginning of Year 309,062,275 272,484,757 229,852,860 Net Assets – Ending of Year $ 340,497,581 $ 309,062,275 $ 272,484,757

Total revenues for the District were $144,098,713, $136,615,629 and $136,002,750 in 2009, 2008, and 2007, respectively. Total expenses were $112,663,407, $100,038,111 and $93,370,853 in 2009, 2008, and 2007, respectively.

22 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Management’s Discussion and Analysis Fiscal Year Ended August 31, 2009 Revenues for the District consist of three main categories: taxes, state appropriations, and net tuition and fees. The following table shows the breakdown of total revenue for the District for 2009: 2009 Revenues

Investment Income Gifts 1.7% 2.0% Other Non-Operating Revenues State Appropriations 0.1% 24.1%

Taxes 43.3%

Tuition and Fees 15.6%

Other Operating Revenues Grants and Contracts 0.1% 7.0% Auxiliary Enterprises Sales and Services of 5.8% Educational Activities 0.2%

Non-operating revenues consist of the following: state appropriations, tax revenue, gifts, net investment income, and other revenues. Non-operating expenses consist of interest on capital related debt.

Operating revenues increased from Fiscal Year 2008 to Fiscal Year 2009 primarily due to an increase in tuition and fees, auxiliary enterprise revenues, and grants and contracts revenue. Tuition and fee revenue increased due to a $10 per credit hour tuition increase for out-of-county students and a $10 per credit hour tuition increase for out-of-state/country students that was effective in the spring semester of 2009. In addition, the District experienced a growth in contact hours of 6%. Non-operating grants and contracts revenue increased due to an increase in federal Pell grants. Property tax revenue increased due to a 7.2% increase in assessed property valuations.

Operating revenues increased from Fiscal Year 2007 to Fiscal Year 2008 primarily due to an increase in tuition and fees and grants and contracts revenue. Tuition and fee revenue increased due to a $4 per credit hour tuition increase for out-of-county students and a $6 per credit hour tuition increase for out-of-state/country students that was effective in the spring semester of 2008. In addition, the District experienced a growth in contact hours of 7%. Grants and contracts revenue increased due to an increase in federal Pell grants. Non-operating revenue also increased. Property tax revenue increased due to an 11% increase in assessed property valuations. State appropriations increased due to the beginning of a new biennium for the State’s funding. This reflected an increase in fundable contact hours taken by students at the District.

23 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Management’s Discussion and Analysis Fiscal Year Ended August 31, 2009

Operating Expenses by Functional Classification

Functional classifications are the traditional categories that have been used to show expenses. They represent the type of programs and services provided. The chart below shows the District’s 2009 operating expenses in comparison to 2008 and 2007:

2007 / 2008 / 2009 Expense Comparison

50,000,000 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 2009 10,000,000 5,000,000 2008 ‐ 2007

Operation & Academic Student Institutional Auxiliary Instruction Public Service Maintenance Scholarships Depreciation Support Services Support Enterprises of Plant FY 2009 $48,239,642 $502,870 $10,968,150 $8,164,472 $11,402,452 $9,799,019 $6,839,746 $8,687,861 $5,614,898 FY 2008 $42,794,701 $454,130 $8,453,432 $7,842,678 $11,146,898 $9,526,095 $4,226,017 $8,008,239 $5,066,598 FY 2007 $39,935,069 $621,999 $7,664,703 $7,123,789 $10,753,717 $8,531,481 $3,298,728 $8,343,012 $4,292,962

From Fiscal Year 2008 to Fiscal Year 2009 operating expenses increased primarily due to increases in instruction, academic support and scholarships. Instruction expenses increased due to the hiring of 21 full-time faculty positions in addition to increases in part-time faculty/instructors. Salary increases for current faculty and new instructional equipment purchases also added to the increased instructional expenses. Other expenses for instruction and academic support increased primarily due to expenses incurred for the new culinary arts program at Preston Ridge campus and the new learning resource center at the McKinney campus. Scholarship expenses increased due to an increased amount of federal Pell grants. From Fiscal Year 2007 to Fiscal Year 2008 operating expenses increased due primarily to increases in instruction, operation and maintenance of plant and scholarships. Instruction expenses increased due to the hiring of nine new full-time faculty members in addition to increases in part-time faculty/instructors. Salary increases for current faculty and new instructional equipment purchases also added to the increased instructional expenses. Operation and maintenance of plant expenses increased due to the hiring

24 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Management’s Discussion and Analysis Fiscal Year Ended August 31, 2009

of two new full-time staff members, salary increases for current staff members and increases in operating costs such as custodial services and utilities for buildings. Building operating cost increases are due to increased size of buildings that have been expanded, new building construction and rising utility costs. Scholarship expenses increased due to an increased amount of federal Pell grants.

Capital Assets and Debt Administration

The District had additions to its capital assets in Fiscal Year 2009 which included the completion of two construction projects. The Central Park expansion includes the addition of a new library and the remodel of current facilities. A new facility for the culinary arts program was completed at the former pool area at the Preston Ridge campus. Construction progress continues to be made on the new Higher Education Complex being built in McKinney, Texas. This building will allow the District to offer the third and fourth years of coursework for students through partnerships the District has with four-year universities. This will enable students to obtain Bachelor degrees at our campuses. In addition, administrative offices will be relocated to this building allowing for complete use of the Courtyard Campus for continuing education courses. The remodel and renovation of the existing Central Park Campus will be the final phase of construction for the McKinney campus.

As of August 31, 2009, the District’s bond ratings by both Moody’s Investors Service and Standard and Poor’s remain at a Aaa/AAA rating since being elevated to this level at the issuance of the bonds in 2002. At August 31, 2009, amounts committed under construction contracts were $19,266,280. These commitments were primarily for costs related to the Higher Education Complex and the renovation of Central Park Campus.

2009 2008 2007

Land $25,194,879 $21,211,659 $21,205,532 Construction in progress 20,870,713 24,225,957 14,385,898 Buildings 142,592,617 107,994,266 95,883,492 Land improvements 11,124,739 3,446,622 3,946,290 Equipment 8,064,346 8,799,521 8,061,446 Library books 2,811,931 2,253,495 1,812,596

WAN/LAN network equipment 755,366 1,043,231 1,331,096

Total $211,414,591 $168,974,751 $146,626,350

25 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Management’s Discussion and Analysis Fiscal Year Ended August 31, 2009

The District had $57,000,000 in tax improvement bonds approved by the voters in November 2001. A $20,000,000 bond sale closed in July 2002 and another bond sale for $18,585,000 closed in September 2003. The District sold the remaining unissued bonds totaling $18,415,000 during Fiscal Year 2006. Shown in the table below is the outstanding debt at the end of the Fiscal Year as compared to the end of the two previous Fiscal Years.

2009 2008 2007 General obligation bonds $48,345,000 $50,595,000 $52,745,000

Revenue bonds 8,775,000 9,610,000 13,511,860

Total $57,120,000 $60,205,000 $66,256,860

For more detailed information on the District’s capital assets and long-term debt, see Notes 5 – 8 in the Notes to Basic Financial Statements.

Economic Factors That Will Affect the Future

The economic position of Collin County Community College District is closely tied to that of Collin County. Since tax revenues are the largest source of revenue for the District, the assessed property value for the county is extremely important. Our Fiscal Year 2009 assessed property value increased 4.9% over the assessed value in fiscal year 2008. Enrollment growth at the District also continues. In Fall 2009, we experienced a 15% enrollment growth in contact hours over Fall 2008.

Financial information can be obtained from the Collin County Community College District Business Office via written request to 4800 Preston Park Boulevard, Plano, TX, 75093.

Ralph G. Hall Julie Bradley Vice President of Administration & CFO Associate Vice President of Financial Services and Reporting

Joseph E. Madden Associate Vice President and Controller

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT

Basic Financial Statements

These basic financial statements and related notes provide a summary overview of the financial position and results of operations of the District.

Exhibit 1 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Statements of Net Assets As of August 31, 2009 and 2008 2009 2008 Assets Current assets Cash and cash equivalents (note 4)$ 197,132,067 $ 135,739,239 Investments (note 4) 0 71,604,903 Accounts receivable (note 12) 5,131,149 3,566,096 Tax receivable (net of allowance for doubtful accounts of $711,335 and $672,488 respectively - note 12) 659,253 686,074 Consumable inventory 33,340 37,297 Inventories for resale 2,641,581 2,717,876 Prepaid expenses 679,268 613,932 Total current assets 206,276,658 214,965,417 Noncurrent assets Capital assets, net (note 5) Not subject to depreciation 46,065,592 45,437,616 Subject to depreciation 165,348,999 123,537,135 Contract receivable (note 12) 4,250,000 5,000,000 Total noncurrent assets 215,664,591 173,974,751 Total assets 421,941,249 388,940,168

Liabilities Current liabilities Accounts payable (note 12) 10,952,327 8,426,149 Accrued liabilities 445,177 497,184 Funds held for others 625,968 540,248 Unearned revenue 11,605,207 9,523,364 Accrued compensable absences payable 110,781 110,163 Bonds payable - current portion (note 6) 3,225,000 3,085,000 Total current liabilities 26,964,460 22,182,108 Noncurrent liabilities Accrued compensable absences payable 584,208 575,785 Bonds payable (notes 6, 7 and 8) 53,895,000 57,120,000 Total noncurrent liabilities 54,479,208 57,695,785 Total liabilities 81,443,668 79,877,893 Net Assets Invested in capital assets, net of related debt 154,294,591 108,769,751 Restricted for: Expendable Student aid 365,896 412,888 Instructional programs 29,959 34,572 Loans 39,519 48,519 Debt service 2,675,745 2,382,414 Unrestricted 183,091,871 197,414,131 Total net assets 340,497,581 309,062,275

Total liabilities and net assets $ 421,941,249 $ 388,940,168 See accompanying notes to basic financial statements.

28 Exhibit 2 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Statements of Revenues, Expenses and Changes in Net Assets For the Years Ended August 31, 2009 and 2008

2009 2008 Revenues Operating revenues: Tuition and fees (net of discounts of $3,112,523 and $3,153,155 respectively)$ 22,498,442 $ 19,489,224 Federal grants and contracts 1,066,775 873,556 State grants and contracts 943,864 687,929 Non-governmental grants and contracts 9,240 23,991 Sales and services of educational activities 313,790 302,878 Auxiliary enterprises 8,403,605 7,683,019 Other operating revenues 93,012 214,742 Total operating revenues 33,328,728 29,275,339

Expenses Operating expenses: Instruction 48,239,642 42,794,701 Public service 502,870 454,130 Academic support 10,968,150 8,453,432 Student services 8,164,472 7,842,678 Institutional support 11,402,452 11,146,898 Operation and maintenance of plant 9,799,019 9,526,095 Scholarships 6,839,746 4,226,017 Auxiliary enterprises 8,687,861 8,008,239 Depreciation 5,614,898 5,066,598 Total operating expenses 110,219,110 97,518,788

Operating loss (76,890,382) (68,243,449)

Non-operating revenues (expenses): State appropriations 34,736,692 34,531,169 Maintenance ad-valorem taxes: Taxes for maintenance and operations 57,771,468 54,584,586 Taxes for general obligation bonds 4,681,934 4,758,228 Federal grants and contracts 8,071,608 5,969,004 Gifts 2,904,466 75,503 Investment income (net of investment expenses) 2,412,354 7,255,898 Interest on capital related debt (2,444,297) (2,519,323) Other non-operating revenues, net 191,463 165,902 Net non-operating revenues 108,325,688 104,820,967

Increase in net assets 31,435,306 36,577,518

Net assets - beginning of year 309,062,275 272,484,757

Net assets - ending of year$ 340,497,581 $ 309,062,275

See accompanying notes to basic financial statements.

29 Collin County Community College District Statements of Cash Flows For the Years Ended August 31, 2009 and 2008

2009 2008 Cash flows from operating activities Receipts from students and other customers$ 33,232,052 $ 27,429,597 Receipt of grants and contracts 1,719,115 1,660,787 Receipt / (payment) of loans to students 3,923 (12,654) Other receipts 93,012 214,742 Payments to or on behalf of employees: Payments to employees (58,252,420) (52,993,224) Payments for benefits (5,629,126) (2,593,471) Payments to suppliers for goods or services (28,950,557) (25,847,204) Payments of scholarships (6,839,746) (4,226,017) Net cash used in operating activities (64,623,747) (56,367,444)

Cash flows from noncapital financing activities Receipt of state appropriations 31,975,736 28,191,439 Ad valorem tax revenues (maintenance and operations) 57,787,758 54,564,511 Receipt of grants and contracts 8,071,608 5,969,004 Gifts and grants (other than capital purposes) 200 15,500 Receipts from student organizations and other agency transactions 1,115,536 717,737 Payments for student organizations and other agency transactions (1,029,816) (783,653) Net cash provided by noncapital financing activities 97,921,022 88,674,538

Cash flows from capital and related financing activities Proceeds from issuance of capital related debt 0 9,610,000 Ad valorem tax revenues (general obligation bonds) 4,692,465 4,759,692 Purchases of capital assets (45,222,223) (24,492,128) Payments on capital debt (3,085,000) (15,655,000) Tax increment reinvestment payment 200,000 200,000 Interest payments on capital related debt (2,506,947) (2,888,327) Net cash used in capital and related financing activities (45,921,705) (28,465,763) Cash flows from investing activities Proceeds from sales and maturities of investments 106,000,000 0 Investment income (net of investment expenses) 1,514,475 6,995,110 Purchases of investments (33,497,217) (71,344,116) Net cash provided by / (used in) investing activities 74,017,258 (64,349,006)

Increase / (decrease) in cash and cash equivalents 61,392,828 (60,507,675) Cash and cash equivalents - beginning of year 135,739,239 196,246,914 Cash and cash equivalents - end of year $ 197,132,067 $ 135,739,239

30 Exhibit 3 Collin County Community College District Statements of Cash Flows (Continued) For the Years Ended August 31, 2009 and 2008

2009 2008 Reconciliation of operating loss to net cash used in operating activities: Operating loss $ (76,890,382) $ (68,243,449) Adjustments to reconcile operating loss to net cash used in operating activities: Depreciation expense 5,614,898 5,066,598 Payments made directly by state for benefits 2,760,956 6,339,730 Donated non-cash items 1,439,468 0 Changes in assets and liabilities Receivables, net (818,977) (737,249) Inventories 80,252 (220,196) Prepaid expenses (65,336) (57,741) Accounts payable & other accrued liabilities 1,149,924 527,717 Unearned revenue 2,081,843 823,234 Accrued compensable absences payable 19,684 146,566 Loans to students 3,923 (12,654) Net cash used in operating activities $(64,623,747) $(56,367,444)

See accompanying notes to basic financial statements.

Significant donated non-cash operating items received for the year ended August 31, 2009 included $1,439,468 in classroom supplies / software. Cash flows from capital and related financing activity also do not include non-cash transaction of $1,450,798 in donated land.

31 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Notes to Basic Financial Statements August 31, 2009 and 2008 (1) Reporting Entity

The Collin County Community College District (the "District") was established in 1985, in accordance with the laws of the State of Texas, to serve the educational needs of the District. The District's student body is comprised mainly of residents of Collin County and surrounding communities. The District is considered to be a special-purpose entity, primary government according to the definition in Governmental Accounting Standards Board (GASB) Statement 14, The Financial Reporting Entity. While the District receives funding from local, state, and federal sources and must comply with the spending, reporting, and record keeping requirements of these entities, it is not a component unit of any other governmental entity.

GASB Statement 39, Determining Whether Certain Organizations are Component Units – an amendment of GASB 14, gives guidance in determining whether certain organizations for which the primary government is not financially accountable should be reported as component units based on the nature and significance of their relationship with the primary government. It requires reporting as a component unit if the organization raises and holds economic resources for the direct benefit of the governmental unit and the component unit is significant compared to the primary government. GASB 39 has been applied as required in the preparation of these financial statements, and no component unit information is required to be included as further discussed below.

The Collin County Community College District Foundation (the "Foundation") is a nonprofit organization with the sole purpose of supporting the educational and other activities of the District. The District does not appoint a voting majority, does not fund operations nor is it obligated to pay debt related to the Foundation. The Foundation solicits donations and acts as coordinator of gifts made by other parties. The Foundation made restricted payments to or on behalf of the District in amounts totaling approximately $568,000 and $306,000 during the years ending August 31, 2009, and August 31, 2008, respectively. During the fiscal year, the District furnished certain services, such as office space, utilities and staff assistance to the Foundation. The costs of these services were not significant to the District. The financial position of the Foundation is not significant to the District, and therefore, the Foundation is not included in the District’s basic financial statements as a component unit.

(2) Summary of Significant Accounting Policies

(a) Reporting Guidelines

The significant accounting policies followed by the District in preparing these financial statements are in accordance with the Texas Higher Education Coordinating Board's (THECB) Annual Financial Reporting Requirements for Texas Public Community and Junior Colleges. The District applies all applicable GASB pronouncements and all applicable Financial Accounting Standard Board (FASB) statements and interpretations issued on or before November 30, 1989, unless they conflict or contradict GASB pronouncements. The District has elected not to apply

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Notes to Basic Financial Statements August 31, 2009 and 2008 FASB guidance issued subsequent to November 30, 1989, unless specifically adopted by the GASB. The District is reported as a special- purpose government engaged in business-type activities. The District complies with the financial statement presentation format required by the THECB.

(b) Tuition Discounting

Texas Public Education Grants

Certain tuition amounts are required to be set aside for use as scholarships by qualifying students. These funds, called the Texas Public Education Grant (TPEG), are shown with tuition and fee revenue amounts as a separate set aside amount (Texas Education Code §56.0333). When the award for tuition is used by the student, the amount is recorded as tuition and a corresponding amount is recorded as a tuition discount. If the amount is disbursed directly to the student, the amount disbursed is recorded as scholarships expense.

Title IV Higher Education Authority (HEA) Program Funds

Certain Title IV HEA Program funds (Pell grants and FSEOG) are received by the District to pass through to the student. These funds are initially received by the District and recorded as restricted revenue. When the student is awarded and uses these funds for tuition and fees, a corresponding amount is recorded as a tuition discount. If the amount is disbursed directly to the student, the amount is recorded as a scholarships expense.

Other Tuition Discounts

The District awards tuition and fee scholarships from institutional funds to students who qualify. When these amounts are used for tuition and fees, the amounts are recorded as tuition and fee revenue and a corresponding amount is recorded as a tuition discount. If the amount is disbursed directly to the student, the amount is recorded as a scholarships expense.

The financial statements of the District are reported using the economic resources measurement focus and the accrual basis of accounting, whereby all revenues are recorded when earned and all expenses are recorded when the liability is incurred and they have been reduced to a legal or contractual obligation to pay.

(d) Budgetary Data

Each community college district in Texas is required by law to prepare an annual operating budget of anticipated revenues and expenses for the fiscal year beginning September 1. The District’s Board of Trustees adopts

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Notes to Basic Financial Statements August 31, 2009 and 2008 the budget, which is prepared on the accrual basis of accounting. A copy of the approved budget and subsequent amendments must be filed with the THECB, Legislative Budget Board, Legislative Reference Library, and Governor’s Office of Budget and Planning by December 1. Board policy requires that the District maintain a minimum fund balance equal to 25% of educational expenses adjusted for reserves and allocations. For the years ended August 31, 2009 and August 31, 2008, respectively, the minimum unrestricted fund balance to be maintained was $22,254,973 and $20,711,882. The District exceeded this minimum required fund balance for both years.

(e) Cash and Cash Equivalents

The District’s cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. The District also considers funds on deposit with TexPool and TexSTAR, which are both statewide investment pools, as cash and cash equivalents.

(f) Investments

In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and External Investment Pools, investments are reported at fair value or money market and other short- term, highly liquid investments may be reported at amortized cost, provided that the fair market value is not significantly different. This GASB Statement considers U.S. Treasury and agency obligations with maturities of less than one year to be money market investments. Accordingly, the U.S. Government Agency Issues are reported at amortized cost.

Short-term investments have an original maturity greater than three months but less than one year at time of purchase. Long-term investments have an original maturity of greater than one year at the time of purchase.

(g) Inventories

Consumable inventories consist of office supplies and postage, which are valued at cost and are charged to expense as consumed. Inventory held for sale, consisting primarily of textbooks, is stated at the lower of cost or market as determined by the retail method and is recorded as an expense when sold.

(h) Capital Assets

Assets with a purchase cost of at least $5,000 and a useful life greater than one year are capitalized. Interest costs incurred during construction of physical plant are capitalized as incurred. Depreciation on buildings and site improvements is calculated using the half-year convention, straight-line method with residual value of 10%. Depreciation for the fiscal years 2009 and 2008 totaled $5,614,898 and $5,066,598, respectively. Depreciation is

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Notes to Basic Financial Statements August 31, 2009 and 2008 not allocated to the functional expense categories. Expenditures for construction in progress are capitalized as incurred.

Capital assets are stated at cost. Donated capital assets are valued at their estimated fair market value on the date received. The District reports capital assets net of accumulated depreciation under a single-line item as a business-type unit. Depreciation on assets other than buildings and site improvements is computed using the straight-line method over the estimated useful lives of the assets applying the half-year convention and no residual value. The following lives are used:

Buildings 50 years Facilities and other improvements 20 years Library books 15 years Furniture, machinery, vehicles and other equipment 10 years Telecommunications and peripheral equipment 5 years

(i) Unearned Revenues

Revenues of $11,605,207 and $9,523,364 are recorded on the Statement of Net Assets as unearned revenue at August 31, 2009 and 2008, respectively, and primarily consist of tuition and fees related to academic terms in the next fiscal year. Unearned revenue of $54,329 and $24,591 at August 31, 2009 and 2008, respectively, relate to grant funds received but not yet expended.

(j) Estimates

The preparation of the financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

(k) Operating and Non-Operating Revenue and Expense Policy

The District distinguishes operating revenues and expenses from non- operating items. CCCCD reports as a business type activity (BTA) and as a single, proprietary fund. Operating revenues and expenses generally result from providing services in connection with the District’s principal ongoing operations. The principal operating revenues are tuition and related fees. The major non-operating revenues consist of state allocations, property tax collections, grant revenue related to Title IV financial aid programs, investment income and gifts. Operating expenses include the cost of sales and services, administrative expenses, and depreciation on capital assets. Non-operating expenses consist of interest on capital related debt and other miscellaneous expenses.

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Notes to Basic Financial Statements August 31, 2009 and 2008 (l) Vested Vacation Benefits and Other Compensated Absences

Vacation is earned in varying amounts up to a maximum of 21 days for employees with 11 years or more of service. Unused vacation leave carried forward from one year to the next is limited to 15 days for each employee. Upon termination, employees are paid for earned but unused vacation for the current year and up to the 10 day maximum allowed for unused vacation carried over from the prior year.

Compensated absences activity for the years ended August 31, 2009 and 2008 were as follows:

Beginning Ending Current

Balance Additions Reductions Balance Portion 2008 $608,282 $1,412,086 $(1,334,420) $685,948 $110,163 2009 $685,948 $1,512,503 $(1,503,462) $694,989 $110,781

District employees are entitled to sick leave, which is accumulated but does not vest. Therefore, no liability for accumulated sick leave has been recorded in the accompanying basic financial statements.

(m) Income Tax Status

The District is exempt from income taxes under Internal Revenue Code Section 115, Income of States, Municipalities, etc., although unrelated business income may be subject to income taxes under Internal Revenue Code Section 511(a)(2)(B), Imposition of Tax on Unrelated Business Income of Charitable, Etc., Organizations. The District had no significant unrelated business income tax liability for the years ended August 31, 2009 and 2008, and therefore, has not recorded a liability for income taxes.

(n) Contract and Grant Awards

Contract and grant awards are accounted for in accordance with the provisions of GASB Statement No. 33. Grant funds are considered to be earned when all eligibility requirements have been met and to the extent of expenses made under the provisions of the grant. Accordingly, when such funds are received in advance, they are recorded as unearned revenue until earned. Revenues recognized are presented on Exhibit 2 and Schedule A. Funds expended for federal and non-federal contract and grant awards, but not collected, are reported within accounts receivable on Exhibit 1. Contract and grant awards that are not yet funded and for which the institution has not yet performed services are not included in the financial statements.

(o) Board Designations

Included in unrestricted net assets are certain amounts that have been set aside by the Board. The Board has designated $20,000,000 to provide

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Notes to Basic Financial Statements August 31, 2009 and 2008 maintenance and operations stabilization. Although maintenance and operations costs are budgeted yearly, this amount was set aside in case of decreased property values. The District also designated $100,000 to cover insurance deductibles in the event of a catastrophic loss and $10,000,000 for a health insurance reserve.

(p) Reclassifications

Certain reclassifications have been made to prior year amounts in order to confirm with Fiscal 2009 presentation. Federal grants and contracts were previously presented as operating revenue. Fiscal 2008 amounts have been reclassified for this purpose.

(3) Authorized Investments

The District is authorized to invest in obligations and instruments as defined in the Public Funds Investment Act (Sec. 2256.001 Texas Government Code). Such investments include (1) obligations of the United States or its agencies, (2) direct obligations of the State of Texas or its agencies, (3) obligations of political subdivisions rated not less than A by a national investment rating firm, (4) certificates of deposit, and (5) other instruments and obligations authorized by statute.

(4) Deposits and Investments

At August 31, 2009 and August 31, 2008, the net carrying amount of the District's deposits was an overdraft of $1,837,477 and $1,554,952, respectively. Bank balances up to $250,000 were covered by Federal Depository Insurance Corp. and the remainder was covered by collateral pledged in the District's name. The collateral was held in the District's name by the safekeeping department of the Federal Reserve Bank, which acts as the pledging bank's agent and had a fair value of $375,937 and $449,854, at August 31, 2009, and August 31, 2008, respectively. The District is subject to custodial credit risk in the event of the bank's nonperformance under the collateral agreement.

Cash and cash equivalents, as reported on Exhibit 1, Statement of Net Assets, consist of the following items:

As of As of

Cash and Cash Equivalents August 31, 2009 August 31, 2008

Petty cash on hand $ 27,485 $ 27,485 Checking account 266,154 251,666 TexPool 159,719,185 110,677,708

TexSTAR 37,119,243 24,782,380 Total cash and cash equivalents $ 197,132,067 $ 135,739,239

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Notes to Basic Financial Statements August 31, 2009 and 2008 Reconciliation of Deposits and Investments to Exhibit 1

As of As of Type of Security August 31, 2009 August 31, 2008 U.S. agency notes and bonds $ 0 $ 71,604,903 Total investments 0 71,604,903

Total cash and cash equivalents 197,132,067 135,739,239

Total deposits and investments 197,132,067 207,344,142

Cash and cash equivalents (Exhibit 1) 197,132,067 135,739,239 Investments (Exhibit 1) 0 71,604,903

Total deposits and investments $197,132,067 $207,344,142

In accordance with GASB Statement No. 31, colleges may also report money market and other short-term, highly liquid investments at amortized cost, provided that the fair market value is not significantly different. This GASB Statement considers U.S. Treasury and agency obligations with maturities of less than one year to be money market investments. Accordingly, the U.S. Government Agency Issues are reported at amortized cost.

As of August 31, 2009, the District had the following investments and maturities:

Weighted Average Investment Type Fair Value Maturity (Years) TexPool $ 159,719,185 0.20 TexSTAR 37,119,243 0.19

Interest Rate Risk – In accordance with state law and District policy, the District does not directly purchase any investments with maturities greater than 24 months beyond the date of purchase unless specifically permitted by the Public Funds Investment Act as noted in Section 2256, Texas Government Code.

Credit Risk – In accordance with state law and the District’s investment policy, investments in investment pools are rated at least AAA or an equivalent rating by at least one nationally recognized rating service. Both TexPool and TexSTAR investment pools are rated AAAm by Standard & Poors. During each fiscal year, the District is authorized and has also invested in direct obligations of agencies and instrumentalities of the United States. U.S. government agencies are only implicitly guaranteed by the government but, when rated, are considered AAA by Standard & Poors. It is the investment strategy of the District to hold these types of investments until maturity so as to eliminate credit risk. The District held investments of $0 and $71,604,903 in governmental agencies on August 31, 2009 and August 31, 2008, respectively.

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Notes to Basic Financial Statements August 31, 2009 and 2008

Concentration of Credit Risk – The District does not place a limit on the amount the District may invest in any one issuer. Major investment types of greater than 5% of the District’s total cash and investments are in TexPool (81.1%), and TexSTAR (18.9%).

The local government investment pools such as TexPool and TexSTAR are not evidenced by securities in physical form. They are managed conservatively to provide safe, efficient and liquid investments to Texas governmental entities. The pools both seek to maintain a $1 value per share as required by the Texas Public Funds Investment Act.

Federated Investors manages the assets, provides participant services, and arranges for all custody and other functions in support of TexPool operations under a contract with the State Comptroller of Public Accounts. The state comptroller maintains oversight responsibility for TexPool, including the ability to influence operations, designation of management and accountability for fiscal matters. Although TexPool is not registered with the SEC as an investment company, it operates in a manner consistent with the SEC’s Rule 2a7 of the Investment Company Act of 1940. GASB 31 allows 2a7-like pools to use amortized cost (which excludes unrealized gains and losses) rather than market value to report net assets to compute share price. The fair value of the District’s position in TexPool is the same as the value of TexPool shares.

TexSTAR is co-administered by JPMorgan Fleming Asset Management (USA), Inc. and First Southwest Asset Management, Inc. The fair value of funds in TexSTAR is also the same as the value of TexSTAR shares.

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Notes to Basic Financial Statements August 31, 2009 and 2008 (5) Noncurrent Assets

(a) Capital Assets

The following table summarizes changes in capital assets balances for the year ended August 31, 2009:

Balance Balance 08/31/08 Increases Decreases 08/31/09 Not Depreciated Land $ 21,211,659 $ 3,983,220 $ 0 $ 25,194,879 Construction in Progress 24,225,957 42,576,925 (45,932,169) 20,870,713 Subtotal 45,437,616 46,560,145 (45,932,169) 46,065,592

Depreciable Buildings 137,180,533 37,344,826 0 174,525,359 Land Improvements 8,870,874 8,200,971 0 17,071,845 Equipment 17,634,064 1,052,626 (300,647) 18,386,043 Library Books 6,613,932 836,874 (196,446) 7,254,360 WAN/LAN Network Equipment 2,940,746 0 0 2,940,746 Subtotal 173,240,149 47,435,297 (497,093) 220,178,353

Accumulated Depreciation Buildings 29,186,267 2,746,475 0 31,932,742 Land Improvements 5,424,252 522,854 0 5,947,106 Equipment 8,834,543 1,781,499 (294,345) 10,321,697 Library Books 4,360,437 276.205 (194,213) 4,442,429 WAN/LAN Network Equipment 1,897,515 287,865 0 2,185,380 Subtotal 49,703,014 5,614,898 488,558) 54,829,354 Net Depreciable Assets 123,537,135 41,820,399 (8,535) 165,348,999

Net Capital Assets $168,974,751 $88,380,544 $(45,940,704) $211,414,591

At August 31, 2009, amounts committed under capital construction contracts were $19,266,280. Of the amount committed, $18,246,120 is for construction costs, $151,080 is for architectural services, and $869,080 is for equipping the buildings.

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Notes to Basic Financial Statements August 31, 2009 and 2008 For comparison purposes, the following table summarizes changes in capital assets balances for the year ended August 31, 2008:

Balance Balance 08/31/07 Increases Decreases 08/31/08 Not Depreciated Land $ 21,205,532 $ 6,127 $ 0 $ 21,211,659 Construction in Progress 14,385,898 23,035,739 (13,195,680) 24,225,957 Subtotal 35,591,430 23,041,866 (13,195,680) 45,437,616

Depreciable Buildings 122,485,182 14,695,351 0 137,180,533 Land Improvements 8,870,874 0 0 8,870,874 Equipment 15,317,986 2,316,078 0 17,634,064 Library Books 6,056,548 557,384 0 6,613,932 WAN/LAN Network Equipment 2,940,746 0 0 2,940,746 Subtotal 155,671,336 17,568,813 0 173,240,149

Accumulated Depreciation Buildings 26,601,690 2,584,577 0 29,186,267 Land Improvements 4,924,584 499,668 0 5,424,252 Equipment 7,256,540 1,578,003 0 8,834,543 Library Books 4,243,952 116,485 0 4,360,437 WAN/LAN Network Equipment 1,609,650 287,865 0 1,897,515 Subtotal 44,636,416 5,066,598 0 49,703,014 Net Depreciable Assets 111,034,920 12,502,215 0 123,537,135

Net Capital Assets $146,626,350 $35,544,081 $(13,195,680) $168,974,751

At August 31, 2008, amounts committed under capital construction contracts were $59,566,044. Of the amount committed, $58,281,308 is for construction fees, $844,346 is for architectural/engineering services, and $440,390 is for equipping the buildings.

In 2008 the District incurred $2,868,211 in interest cost, of this amount $2,519,323 was expensed and $348,888 was capitalized.

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Notes to Basic Financial Statements August 31, 2009 and 2008 (6) Long-Term Liabilities

The following table summarizes changes in long-term liabilities for the year ended August 31, 2009:

Amortization/ (Accretion) of Balance Discount/ Balance Current Bonds payable: 09/01/2008 Additions Reductions Premium 08/31/2009 Portion

General obligation bonds: Ltd. tax imp. bonds, series 2002 $16,480,000 $ 0 $ (820,000) $ 0 $15,660,000 $ 865,000

Ltd. tax imp. bonds, series 2003 16,435,000 0 (780,000) 0 15,655,000 820,000

Ltd. tax imp. bonds, series 2006 17,680,000 0 (650,000) 0 17,030,000 680,000

Total general obligations bonds 50,595,000 0 (2,250,000) 0 48,345,000 2,365,000 Revenue bonds: Refunding bonds, series 2008 9,610,000 0 (835.000) 0 8,775,000 860,000 Total revenue bonds 9,610,000 0 (835.000) 0 8,775,000 860,000

Total bonds payable $60,205,000 $ 0 $(3,085,000) $ 0 $57,120,000 $3,225,000

For comparison purposes, the following table summarizes changes in long- term liabilities for the year ended August 31, 2008:

Amortization/ (Accretion) of Balance Discount/ Balance Current Bonds payable: 09/01/2007 Additions Reductions Premium 08/31/2008 Portion

General obligation bonds: Ltd. tax imp. bonds, series 2002 $17,260,000 $ 0 $ (780,000) $ 0 $16,480,000 $ 820,000

Ltd. tax imp. bonds, series 2003 17,185,000 0 (750,000) 0 16,435,000 780,000

Ltd. tax imp. bonds, series 2006 18,300,000 0 (620,000) 0 17,680,000 650,000

Total general obligations bonds 52,745,000 0 (2,150,000) 0 50,595,000 2,250,000 Revenue bonds: Revenue bonds, series 1997 4,280,000 0 (4,280,000) 0 0 0

Refunding bonds, series 1998 9,231,860 0 (9,225,000) (6,860) 0 0

Refunding bonds, series 2008 0 9,610,000 0 0 9,610,000 835,000

Total revenue bonds 13,511,860 9,610,000 (13,505,000) (6,860) 9,610,000 835,000

Total bonds payable $66,256,860 $9,610,000 $(15,655,000) $ (6,860) $60,205,000 $3,085,000

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Notes to Basic Financial Statements August 31, 2009 and 2008

(7) Debt Obligations

Debt service requirements as of August 31, 2009, were as follows:

For the year ended General Obligation Bonds Revenue Bonds August 31, Principal Interest Principal Interest

2010 $ 2,365,000 $ 2,144,885 $ 860,000 $ 247,847 2011 2,475,000 2,051,366 890,000 221,859 2012 2,600,000 1,953,276 915,000 195,055 2013 2,730,000 1,849,277 945,000 167,434 2014 2,860,000 1,733,651 970,000 138,996 2015-2019 16,560,000 6,664,853 4,195,000 253,860 2020-2024 16,005,000 2,547,439 0 0 2025-2026 2,750,000 181,781 0 0 Subtotal 48,345,000 19,126,528 8,775,000 1,225,051 Net premium / discount 0 0 0 0 Total $ 48,345,000 $ 19,126,528 $ 8,775,000 $ 1,225,051

For comparison purposes, debt service requirements as of August 31, 2008, were as follows:

For the year ended General Obligation Bonds Revenue Bonds August 31, Principal Interest Principal Interest

2009 $ 2,250,000 $ 2,233,860 $ 835,000 $ 273,017 2010 2,365,000 2,144,885 860,000 247,847 2011 2,475,000 2,051,366 890,000 221,859 2012 2,600,000 1,953,276 915,000 195,055 2013 2,730,000 1,849,277 945,000 167,434 2014-2018 15,780,000 7,359,899 5,165,000 392,856 2019-2023 18,360,000 3,409,512 0 0 2024-2026 4,035,000 358,313 0 0 Subtotal 50,595,000 21,360,388 9,610,000 1,498,068 Net premium / discount 0 0 0 0 Total $ 50,595,000 $ 21,360,388 $ 9,610,000 $ 1,498,068

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Notes to Basic Financial Statements August 31, 2009 and 2008

(8) Bonds Payable

Bonds payable as of August 31, 2009 and August 31, 2008 consisted of the following: Outstanding Outstanding balance balance Date Amount Revenue August 31, August 31, Bond issue Purpose issued issued source 2009 2008

Series 2008 Refunded 1997 and 2/20/08 $9,610,000 Pledged $8,775,000 $9,610,000 Refunding 1998 Revenue revenues from Revenue Bonds Bonds general use fees, gross revenues from the bookstore, tuition pledge Series 2002 Constructing, 6/15/02 $20,000,000 Ad valorem $15,660,000 $16,480,000 Limited Tax renovating, improving taxes Improvement and equipping school Bonds buildings and purchasing necessary sites. Series 2003 Constructing, 8/15/03 $18,585,000 Ad valorem $15,655,000 $16,435,000 Limited Tax renovating, improving taxes Improvement and equipping school Bonds buildings and purchasing necessary sites. Series 2006 Constructing, 1/15/06 $18,415,000 Ad valorem $17,030,000 $17,680,000 Limited Tax renovating, improving taxes Improvement and equipping school Bonds buildings and purchasing necessary sites. $57,120,000 $60,205,000

Bonds payable are due in annual principal installments varying from $650,000 to $1,615,000 with interest rates from 2.97% to 5.15% and the final installments are due in 2026.

During February 2008, the District closed on $9,610,000 in Consolidated Fund Revenue Refunding Bonds with an interest rate of 2.97 percent. The proceeds from the bonds were used to call Revenue Series 1997 and 1998 Bonds. The District had related issuance costs of $50,178 at the closing of the bond sale. This refunding reduces the District’s debt service payments by $941,870. An economic gain (the difference between net present values of the debt service payments on the old and new debt adjusted for cash paid out) of $901,391 was obtained by the refunding. The accounting loss that resulted from the bond refunding is $80,571.

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Notes to Basic Financial Statements August 31, 2009 and 2008 The Series 2008 revenue bonds are collateralized by pledged revenues of the Unrestricted Current Fund other than state allocations or those raised by local taxation. They require mandatory transfer of gross revenue to the Retirement of Indebtedness Fund as set forth in the bonds' covenants. This transfer provides for principal and interest payments as they become due. In addition, they impose certain restrictions on the District with respect to the maintenance of insurance and other financial covenants. At August 31, 2009, the District was in compliance with these restrictions and had made all applicable insurance premium payments. Insurance policies in force at August 31, 2009, include major equipment, fire and extended property, general liability and auto coverage.

In January 2006, the District closed on $18,415,000 in Limited Tax Improvement Bonds with an average interest rate of 4.24 percent. Proceeds from the sale of the bonds are being used for constructing, renovating and equipping buildings, and paying issuance costs. Proceeds of the bonds were $18,412,449. The District had related issuance costs of $95,000 and accrued interest of $92,449 at the closing of the bond sale.

During September 2003, the District closed on $18,585,000 in Limited Tax Improvement Bonds with an average interest rate of 4.56 percent. Proceeds from the sale of the bonds are being used for constructing, renovating and equipping buildings, and paying issuance costs. Proceeds of the bonds were $18,585,000. The District had related issuance costs of $68,756 and accrued interest of $89,220 at the closing of the bond sale.

In July 2002, the District closed on $20,000,000 in Limited Tax Improvement Bonds with an average interest rate of 4.40 percent. Proceeds from the sale of the bonds are being used for constructing, renovating, improving and equipping school buildings, purchasing necessary sites and paying costs of issuance associated with the sale of the bonds. Proceeds of the bonds were $20,000,000. The District had related issuance costs of $76,100 and accrued interest of $114,944 at the closing of the bond sale.

The Series 2002, Series 2003 and Series 2006 Tax Improvement Bonds are tax- supported general obligation bonds. The tax rates authorized and assessed to pay principal and interest on these bonds are set forth in Note 14.

(9) Employees' Retirement Plan

The State of Texas (the "State") has joint contributory retirement plans for almost all its employees.

Teacher Retirement System of Texas One of the primary plans in which the District participates is administered under the provisions of the U.S. Internal Revenue Code Section 401(a) by the Teacher Retirement System of Texas (TRS or the "System"), a multi-employer defined benefit public employee retirement system (PERS). It is a cost-sharing PERS with one exception: all risks and costs are not shared by the District, but are the liability of the State. All District employees, except those employed less than one-half the standard workload and those exempted by law, are required to

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Notes to Basic Financial Statements August 31, 2009 and 2008 participate in the System as a condition of employment. The System administers retirement and disability annuities and death and survivor benefits to employees and to beneficiaries of employees covered under the plan. It operates primarily under the provisions of the Texas Constitution, Article XVI, Sec. 67, and Texas Government Code, Title 8, Subtitle C. The System also administers proportional retirement benefits and service credit transfer under Texas Government Code, Title 8, Chapters 803 and 805. The Texas state legislature has the authority to establish and amend benefit provisions of the pension plan. TRS does not separately account for each of its component government agencies because it bears sole responsibility for retirement commitments beyond contributions fixed by the Legislature. 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.

Contribution requirements are not actuarially determined but are legally established each biennium 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% of the member’s annual compensation and a State contribution rate of not less than 6% and not more than 10% of the aggregate annual compensation of all members of the system during that fiscal year, and (2) a State statute prohibits benefit improvements or contribution reductions if, as a result of the particular action, the time required to amortize the System’s 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. State law provides for a State contribution rate of 6.58% in fiscal years 2009 and 2008 and 6% in fiscal year 2007 and a member contribution rate of 6.4% in fiscal years 2009, 2008, and 2007.

State contributions to TRS made on behalf of the District’s employees for the years ended August 31, 2009 and 2008 were approximately $1,686,800 and $1,484,300, respectively, on wages covered by the System of approximately $25,635,600 and $22,558,000 respectively. In certain instances, the reporting district is required to make all or a portion of the state’s 6.58% for fiscal years 2009 and 2008 and 6% for fiscal year 2007. Eligible new employees become members of TRS on their first day of employment and local employers are statutorily mandated to pay the state contribution for TRS participation for the first 90 days of employment. The cost of this to the District for the year ended August 31, 2009 and 2008 was approximately $54,900 and $50,300 on payroll of approximately $834,600 and $764,800, respectively.

Optional Retirement Plan The State has also established an optional retirement program for institutions of higher education. The Optional Retirement Program (ORP) is a defined contribution plan. The Texas Higher Education Coordinating Board (THECB) is responsible for amending pension provisions and contribution requirements. Participation in the optional retirement program is in lieu of participation in the Teachers Retirement System (TRS) and at the option of full-time teaching faculty, reference librarians, the president, vice-presidents, deans, associate

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Notes to Basic Financial Statements August 31, 2009 and 2008 deans, and directors. Other professional staff may also be eligible for participation in the optional retirement program if those positions held are advertised in national publications and are at a salary rate equivalent to the rate for teaching faculty for the institution. The ORP provides for the purchase of annuity contracts and operates under the provisions of the Texas Constitution, Article XVI, Sec. 67, and Texas Government Code, Title 8, Subtitle C.

Contribution requirements are not actuarially determined but are established and amended by the Texas state legislature. The percentages of ORP participant salaries currently contributed by the State and each participant are 6.58% and 6.65%, respectively. In addition, the District contributed 1.92% for ORP participants employed as an ORP participant at any Texas public higher education institution at any time prior to September 1, 1995. Benefits fully vest after one year plus one day of employment. Because these are individual annuity contracts, the State has no additional or unfunded liability for this program.

State contributions for employees of the District covered by ORP for the years ended August 31, 2009 and 2008 were approximately $1,000,400 and $982,400 respectively, on wages of approximately $15,202,900 and $14,173,100 respectively.

Other Part-time employees of the District are provided the option of participating in the Social Security system of the U. S. Government or the Program for Extra Retirement Compensation (the "PERC plan"). The PERC plan, as established by the District under the provisions of the Omnibus Budget Reconciliation Act of 1990, requires participants to contribute 7.5% of their pay to a tax-sheltered annuity administered by Metropolitan Life Insurance Company. Contributions to the PERC plan are immediately 100% vested. The District makes no contributions to the PERC plan. For the years ended August 31, 2009, and August 31, 2008, total payroll of participants in the PERC plan was approximately $5,849,100 and $5,370,800, respectively; the District's total part-time employee payroll was approximately $12,398,200 and $11,197,400, respectively.

Total Retirement Expense The District’s total payroll for the years ended August 31, 2009 and 2008, including full-time and part-time employees, was $58,255,797 and $53,068,925, respectively. The total retirement expense to the state for the District was $2,687,175 and $2,456,386 for the fiscal years ended August 31, 2009 and 2008, respectively. This amount represents the portion of expended appropriations made by the state legislature on behalf of the District and are recognized as revenues or expenses during the period.

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Notes to Basic Financial Statements August 31, 2009 and 2008

(10) Post-Retirement Healthcare and Life Insurance Benefits

In addition to the pension benefits described in Note 9 above, the State provides certain healthcare and life insurance benefits for retired employees. Almost all of the employees may be eligible for those benefits if they reach normal retirement age with at least ten years of TRS/ORP eligible service credit while working for the State. Those and similar benefits for active employees are provided through an insurance company whose premiums are based on benefits paid during the previous year. The State recognized the cost of providing these benefits by expending the annual insurance premiums. For the fiscal years ended both August 31, 2009 and 2008, the State’s maximum contribution was $361 per month for employee only and $567, $498 and $705 per month, including coverage for spouse, child(ren) or both, respectively. The cost to the State in FY09 was approximately $3,475,938 for 892 active employees and approximately $382,140 for 85 retirees for a grand total of $3,858,078. The cost to the State in FY08 was $3,606,305 for 839 active employees and $407,874 for 83 retirees for a grand total of $4,014,179.

(11) Deferred Compensation Program

Employees of the District may elect to defer a portion of their earnings for income tax and investment purposes pursuant to the authority granted under Government Code 609.001. The general maximum contribution limit was $16,500 in tax year 2009 and $15,500 in tax year 2008, with a $5,000 make-up provision for individuals 50 years or older in both tax years.

198 District employees contributed a total of $997,510 under the Internal Revenue Code Section 403(b) Tax Sheltered Annuity (TSA) program and 36 participants contributed a total of $209,754 to a Section 457 Deferred Compensation Plan (DCP) in the fiscal year ended August 31, 2009.

191 District employees contributed a total of $794,539 under the Section 403(b) Tax Sheltered Annuity (TSA) program and 26 participants contributed a total of $92,466 to a Section 457 Deferred Compensation Plan (DCP) in the fiscal year ended August 31, 2008.

The District does not contribute to either plan. The deferred compensation program is not included in the basic financial statements because the programs’ assets are assets of the plan participants and not of the District.

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Notes to Basic Financial Statements August 31, 2009 and 2008

(12) Disaggregation of Receivables and Payables Balances

Receivables at August 31 were as follows: 2009 2008 Student loans $ 22,264 $ 26,187 Federal and state receivables 771,136 455,126 Trade receivables 4,087,745 2,881,214 Other receivables (auxiliary) 250,004 203,569 5,131,149 3,566,096

Contract receivable $4,250,000 $5,000,000

Taxes receivable 1,370,588 1,358,562 Less allowance for doubtful accounts (711,335) (672,488) $ 659,253 $ 686,074

Contract Receivable - The District sold a 35 acre tract of land at its Central Park Campus in McKinney, Texas in fiscal year 2007. The sales price consisted of $7.5 million in cash and a $5 million contract receivable, $750,000 of which was collected in fiscal year 2009. The contract receivable is in the form of an Economic Incentive Agreement with the City of McKinney, to be paid to the District from the future sales tax revenue received by the city from businesses located on the land. In the event that payments under this agreement do not fully satisfy the contract receivable, the city is obligated to make a lump sum payment for the difference on or before July 1, 2013.

Payables at August 31 were as follows: 2009 2008 Vendors payable $ 9,114,850 $ 6,871,197 Short-term bank overdraft 1,837,477 1,554,952 $ 10,952,327 $ 8,426,149

(13) Risk Management

For several years, the District participated in a self-funded workers’ compensation program in which the remaining outstanding claims are administered by Claims Administrative Services (CAS) of Tyler, Texas. Total claims paid by the District to CAS during the years ended August 31, 2009, and August 31, 2008, were $405 and $501, respectively. Total estimated claims outstanding for the years ended August 31, 2009, and August 31, 2008, were $7,742 and $13,865, respectively. The District now pays a premium to Deep East Texas for the fixed cost and loss fund maximum. Fixed costs are primarily affected by payroll; the loss costs, however, are determined by expected losses, which are determined primarily by historical loss experience. The fixed costs cover claims administration and loss control and are not recoverable by the District. Loss costs are only paid if the District experiences losses. Health 49

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Notes to Basic Financial Statements August 31, 2009 and 2008 benefits are provided to benefit eligible employees through the Employees Retirement System of Texas. The District has other insurance coverage such as property, general liability, and automobile insurance. There were no significant reductions in coverage in the past fiscal year and there were no settlements exceeding insurance coverage in each of the past three fiscal years.

GASB Statement No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues, requires that a liability be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Accrued liabilities include provisions for claims reported and claims incurred but not reported.

Changes in the fund’s claims liability amount in fiscal years 2007, 2008, and 2009 were:

Beginning of Claims & End of fiscal year changes in Claim fiscal year liability estimates payments liability 2007 5,405 14,174 (10,595) 8,984 2008 8,984 5,382 (501) 13,865 2009 13,865 (5,718) (405) 7,742

(14) Property Tax

The District’s ad valorem property tax is levied each October 1 on the assessed value listed as of the prior January 1 for all real and business personal property located in the District. Taxes are due on receipt of the tax bill and are delinquent if not paid before February 1 of the year following the year in which imposed. Property taxes attach an automatic enforceable lien on property the first day of January. The lien is removed if taxes are paid by February 1.

Exemptions include $30,000 for over age 65 and $20,000 for disabled persons in addition to Homestead and Veteran exemptions. If a person who is disabled or is sixty-five (65) years of age or older receives a residence homestead exemption, the total amount of ad valorem taxes imposed by the Collin County Community College District may not be increased while it remains the residence homestead of that person or that person’s spouse who is disabled or sixty-five (65) years of age or older and receives the residence homestead exemption on the homestead. This tax limitation cannot be repealed or rescinded.

At August 31, 2009 2008 Assessed Valuation of the District: $ 84,577,368,984 $ 80,761,165,342 Less: Exemptions (11,811,138,820) (11,315,270,614) Less: Abatements (653,050,214) (730,254,345) Net Assessed Valuation of the District 72,113,179,950 68,715,640,383 Plus: Supplements through August 31 6,862,289 6,319,817 Adjusted Assessed Valuation $ 72.120,042,239 $ 68,721,960,200 50

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Notes to Basic Financial Statements August 31, 2009 and 2008

Tax rates for the years ended August 31, 2009 and 2008, are as follows:

FY 2009 FY 2008 Per $100 Current Debt Current Debt valuation: Operations Service Total Operations Service Total Authorized Tax Rate (Maximum $0.080000 $0.120000 $0.200000 $0.080000 $0.120000 $0.200000 per enabling legislation) Assessed Tax Rate $0.080000 $0.006493 $0.086493 $0.080000 $0.006984 $0.086984

Taxes levied for the years ended August 31, 2009 and 2008, were $64,396,785 and $60,872,723 respectively, including any penalty and interest assessed.

2009 2008 Current Debt Current Debt Operations Service Total Operations Service Total Current Taxes Collected $58,186,461 $4,722,559 $62,909,020 $54,468,174 $4,755,072 $59,223,246 Delinquent Taxes Collected 758,646 61,574 820,220 999,301 84,468 1,083,769 Penalties & Interest Collected 386,184 31,343 417,527 395,956 34,567 430,523 Total Collections $59,331,291 $4,815,476 $64,146,767 $55,863,431 $4,874,107 $60,737,538

The use of tax proceeds is restricted to either maintenance and operations or debt service expenditures. Current taxes collected for the years ended August 31, 2009 and 2008, were 97.69% and 97.29% of the current tax levy, respectively. Allowances for uncollectible taxes are based upon historical experience in collecting property taxes. Total Tax Increment Finance District funding net of collection costs for the years ended August 31, 2009 and 2008 was $1,693,365 and $1,394,724, respectively.

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Notes to Basic Financial Statements August 31, 2009 and 2008

(15) Operating Lease Commitments and Rental Agreements

The District had the following commitments for operating leases and rental agreements having initial or remaining non-cancelable terms in excess of one year:

FY At August 31, 2009 At August 31, 2008 2009 $ 0 $ 12,108 2010 2,238 2,238 2011 $ 2,238 $ 14,346

Rent paid under operating leases totaled approximately $365,500 and $345,000 for the years ended August 31, 2009 and 2008, respectively. There are other operating leases that are for less than one year which result in rents actually paid under operating leases being greater than the commitments listed in the above table.

(16) Contingencies

The District participates in a number of federal and state assisted grant programs. These programs are subject to program compliance audits by the grantors or their representatives. These financial statements do not contain any liability for reimbursement which may arise as a result of these audits. In the opinion of District management, such reimbursement, if any, would not be significant to the District’s financial statements.

The District participates in the Federal Family Education Loan Program (the “Loan Program”), which includes the Federal Stafford Loan Program and Federal Parents Loans for Undergraduate Students. The District receives and disburses funds for the Student Loan program and is required to perform certain administrative functions under the Loan Program. Due to the short duration, receipts and disbursements for the Loan Program are not included in the District’s Statement of Cash Flows. Total loans made through the Student Loan Program during fiscal years 2009 and 2008 were $15,802,633 and $7,939,622, respectively.

(17) Postemployment Benefits Other than Pensions

The District contributes to the State Retiree Health Plan (SRHP), a cost-sharing, multiple-employer, defined benefit postemployment healthcare plan administered by the Employees Retirement System of Texas (ERS). SRHP provides medical benefits to retired employees of participating universities, community colleges, and state agencies in accordance with Chapter 1551, Texas Insurance Code. Benefit and contribution provisions of the SRHP are authorized by State law and may be amended by the Texas Legislature.

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Notes to Basic Financial Statements August 31, 2009 and 2008 ERS issues a publicly available financial report that includes financial statements and required supplementary information for SRHP. That report may be obtained from ERS via their website at http://www.ers.state.tx.us/.

Section 1551.055 of Chapter 1551, Texas Insurance Code provides that contribution requirements of the plan members and the participating employers are established and may be amended by the ERS board of trustees. Plan members or beneficiaries receiving benefits pay any premium over and above the employer contribution.

The employer’s share of the cost of retiree healthcare coverage for the current year is known as the implicit rate subsidy. It is the difference between the claims costs for the retirees and the amounts contributed by the retirees. The ERS board of trustees sets the employer contribution rate based on the implicit rate subsidy which is actuarially determined in accordance with the parameters of GASB statement 45.

The employer contribution rate represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each year and amortize any unfunded actuarial liabilities (or funding excess) of the plan over a period not to exceed thirty years.

The District’s contributions to SRHP for the years ended August 31, 2009, 2008, and 2007, were $1,225,100, $841,500, and $1,225,100, respectively, which equaled the required contributions each year.

(18) New Accounting Pronouncements

GASB Statement No. 49, Accounting and Financial Reporting for Pollution Remediation Obligations, provides guidance on how to calculate and report the costs and obligations associated with pollution cleanup efforts. The requirements of this statement became effective for fiscal periods beginning after December 15, 2007. This pronouncement did not impact the District.

GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets, establishes accounting and financial reporting requirements for intangible assets including easements, water rights, timber rights, patents, trademarks, and computer software. The requirements of this statement are effective for financial statements for periods beginning after June 15, 2009.

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COLLIN COUNTY COMMUNITY COLLEGE DISTRICT

THECB Supplemental Schedules

Schedule A COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Schedule of Operating Revenues For the year ended August 31, 2009 (with comparative totals at August 31, 2008)

Total Educational Auxiliary Total Unrestricted Restricted Activities Enterprises 2009 2008

Tuition State funded courses In-district resident tuition$ 7,983,829 $ 0 $ 7,983,829 $ 0 $ 7,983,829 $ 7,121,995 Out-of-district resident tuition 4,498,471 0 4,498,471 0 4,498,471 3,753,160 TPEG Credit (set aside)* 715,020 0 715,020 0 715,020 655,930 Non-resident tuition 3,572,344 0 3,572,344 0 3,572,344 2,928,275 Continuing education 3,106,243 0 3,106,243 0 3,106,243 2,903,207 TPEG Non-Credit (set aside)* 223,281 0 223,281 0 223,281 207,022 Non-state funded continuing education 391,830 0 391,830 0 391,830 353,599 Total tuition 20,491,018 0 20,491,018 0 20,491,018 17,923,188

Fees Building fees 4,019,965 0 4,019,965 0 4,019,965 3,721,857 General fees 298,125 0 298,125 0 298,125 250,208 Student activity fee 0 0 0 446,660 446,660 413,722

Laboratory fee 355,197 0 355,197 0 355,197 333,404 Total fees 4,673,287 0 4,673,287 446,660 5,119,947 4,719,191

Scholarship allowances and discounts Scholarship allowances - auxiliary 0 0 0 0 0 (13,239) Remissions and exemptions (404,744) 0 (404,744) 0 (404,744) (381,767) TPEG allowances (253,111) 0 (253,111) 0 (253,111) (310,189) Federal grants to students (2,181,514) 0 (2,181,514) 0 (2,181,514) (2,176,343) Other (273,154) 0 (273,154) 0 (273,154) (271,617) Total scholarship allowances (3,112,523) 0 (3,112,523) 0 (3,112,523) (3,153,155)

Total net tuition and fees$ 22,051,782 $ 0 $ 22,051,782 $ 446,660 $ 22,498,442 $ 19,489,224

54 Schedule A COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Schedule of Operating Revenues For the year ended August 31, 2009 (Continued) (with comparative totals at August 31, 2008)

Total Educational Auxiliary Total Unrestricted Restricted Activities Enterprises 2009 2008

Additional operating revenues Federal grants and contracts$ 23,997 $ 1,042,778 $ 1,066,775 $ 0 $ 1,066,775 $ 873,556 State grants and contracts 0 943,864 943,864 0 943,864 687,929 Nongovernmental grants and contracts 0 9,240 9,240 0 9,240 23,991 Sales and services of educational activities 313,760 0 313,790 0 313,790 302,878 Other operating revenues 93,012 0 93,012 0 93,012 214,742 Total additional operating revenues 430,769 1,995,882 2,426,681 0 2,426,681 2,103,096

Auxiliary enterprises Bookstore (net of discount of $408,818 and $313,500 respectively) 0 0 0 7,440,853 7,440,853 6,671,748 Other auxiliary enterprises 0 0 0 962,752 962,752 1,011,271 Total net auxiliary enterprises 0 0 0 8,403,605 8,403,605 7,683,019

Total Operating Revenues$ 22,482,551 $ 1,995,882 $ 24,478,463 $ 8,850,265 $ 33,328,728 $ 29,275,339

* In accordance with Education Code 56.033; $938,301 was set aside for Texas Public Education Grants (TPEG).

See accompanying independent auditors' report.

55 Schedule B Collin County Community College District Schedule of Operating Expenses by Object For the year ended August 31, 2009 (with comparative totals at August 31, 2008)

Operating Expenses Total

SalariesBenefits Other and Wages State Local Expenses 2009 2008

Unrestricted - educational activities Instruction $ 35,490,958 $ 0 $ 1,583,487 $ 6,840,951 $ 43,915,396 $ 38,672,736 Public service 39,571 0 1,838 0 41,409 46,296 Academic support 6,361,136 0 117,010 3,132,450 9,610,596 7,718,817 Student services 6,000,195 0 278,695 650,652 6,929,542 7,060,591 Institutional support 6,265,902 0 291,037 4,088,245 10,645,184 10,380,258 Operation and maintenance of plant 2,328,177 0 267,156 7,203,319 9,798,652 9,526,095 Total unrestricted educational activities 56,485,939 0 2,539,223 21,915,617 80,940,779 73,404,793

Restricted - educational activities Instruction 34,975 4,289,271 0 0 4,324,246 4,121,965 Public service 174,586 4,782 20,717 261,376 461,461 407,834 Academic support 198,327 768,777 24,104 366,346 1,357,554 734,615 Student services 321,969 725,155 42,801 145,005 1,234,930 782,087 Institutional support 0 757,268 0 0 757,268 766,640 Operation and maintenance of plant 0 0 0 367 367 0 Scholarships 0 0 0 6,839,746 6,839,746 4,226,017 Total restricted educational activities 729,857 6,545,253 87,622 7,612,840 14,975,572 11,039,158

Total educational activities 57,215,796 6,545,253 2,626,845 29,528,457 95,916,351 84,443,951

Auxiliary enterprises 1,040,001 0 69,466 7,578,394 8,687,861 8,008,239

Depreciation expense - buildings and other real estate improvements 0 0 0 3,269,329 3,269,329 3,084,245 Depreciation expense - equipment and furniture 0 0 0 2,345,569 2,345,569 1,982,353 Total operating expenses $ 58,255,797 $ 6,545,253 $ 2,696,311 $ 42,721,749 $ 110,219,110 $ 97,518,788

See accompanying independent auditors' report.

56 Schedule C COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Schedule of Non-Operating Revenues and Expenses For the year ended August 31, 2009 (with comparative totals at August 31, 2008)

Auxiliary Totals Unrestricted Restricted enterprises 2009 2008 NON-OPERATING REVENUES:

State appropriations Education and general state support $ 28,191,439 $ 0 $ 0 $ 28,191,439 $ 28,191,439 State group insurance 0 3,858,078 0 3,858,078 4,014,179 State retirement matching 0 2,687,175 0 2,687,175 2,325,551 Total state appropriations 28,191,439 6,545,253 0 34,736,692 34,531,169

Maintenance ad valorem taxes 57,771,468 4,681,934 0 62,453,402 59,342,814 Federal contracts and grants 8,071,608 0 8,071,608 5,969,004 Gifts 2,904,466 0 0 2,904,466 75,503 Investment income (net of investment expenses) 2,412,354 0 0 2,412,354 7,255,898 Tax increment reinvestment payment 200,000 0 0 200,000 200,000 Total non-operating revenues 71,359,896 4,681,934 0 76,041,830 72,843,219

NON-OPERATING EXPENSES:

Interest on capital related debt 0 (2,444,297) 0 (2,444,297) (2,519,323) Gain on disposal of land 0 0 0 0 0 Other non-operating expenses 0 (8,537) 0 (8,537) (34,098) Total non-operating expenses 0 (2,452,834) 0 (2,452,834) (2,553,421)

Net non-operating revenues $ 99,551,335 $ 8,774,353 $ 0 $ 108,325,688 $ 104,820,967

(Exhibit 2) (Exhibit 2)

See accompanying independent auditors' report.

57 Schedule D COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Schedule of Net Assets by Source and Availability As of August 31, 2009 (with comparative totals at August 31, 2008)

Available for Current Detail by Source Operations

Restricted Capital Assets Net of Non- Depreciation & Unrestricted Expendable Expendable Related Debt Total Yes No Current: Unrestricted: Unreserved Undesignated$ 35,567,614 $ 0 $ 0 $ 0 $ 35,567,614 $ 35,567,614 $ 0 Board designated - Stabilization of maintenance and operations 20,000,000 0 0 0 20,000,000 0 20,000,000 Board designated - Insurance deductibles 100,000 0 0 0 100,000 0 100,000 Board designated - Health Reserve 10,000,000 0 0 0 10,000,000 0 10,000,000 Reserved Encumbrances 105,733 0 0 0 105,733 105,733 0 Accounts receivable 4,087,743 0 0 0 4,087,743 4,087,743 0 Prepaid expenses 556,557 0 0 0 556,557 556,557 0 Restricted: Student aid 0 365,896 0 0 365,896 0 365,896 Instructional programs 0 29,959 0 0 29,959 0 29,959 Auxiliary enterprises 3,858,911 0 0 0 3,858,911 3,858,911 0 Quasi-Endowment 1,285,417 0 0 0 1,285,417 1,285,417 0 Loans 0 39,519 0 0 39,519 0 39,519 Plant: Unexpended 107,529,896 0 0 0 107,529,896 0 107,529,896 Debt service 0 2,675,745 0 0 2,675,745 0 2,675,745 Investment in plant 0 0 0 154,294,591 154,294,591 0 154,294,591 Total net assets - August 31, 2009 183,091,871 3,111,119 0 154,294,591 340,497,581 45,461,975 295,035,606 (Exhibit 1) Total net assets - August 31, 2008 197,414,131 2,878,393 0 108,769,751 309,062,275 37,681,413 271,380,862 (Exhibit 1) Net increase in net assets$ (14,322,260) $ 232,726 $ 0 $ 45,524,840 $ 31,435,306 $ 7,780,562 $ 23,654,744

(Exhibit 2)

Note: Board policy requires that the District maintain a minimum fund balance equal to 25% of educational expenses adjusted for reserves and allocations. For the years ended August 31, 2009 and August 31, 2008, the minimum required unrestricted fund balance was $22,254,973 and $20,711,882, respectively. This amount is included as part of the undesignated balance.

See accompanying independent auditors' report.

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT

Statistical Tables

These statistical tables provide selected financial and demographic information. The statistical tables are for informational purposes only and are not audited.

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COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Statistical Section Categories Fiscal Year Ended August 31, 2009 Statistical Section (unaudited)

Tables in the statistical section present detailed information as a context for understanding what the information contained in the financial statements, note disclosures, and required supplementary information says about the overall financial health of the District.

Financial Trends- Schedules 1-3 These schedules contain trend information to help the reader understand how the District’s financial performance and well-being have changed over time.

Revenue Capacity- Schedules 4-8 These schedules contain information to help the reader assess the District’s significant revenue sources.

Debt Capacity- Schedules 9-11 These schedules present information to help the reader assess the affordability of the District’s current levels of outstanding debt and the District’s ability to issue additional debt as needed in the future.

Demographic and Economic Information- Schedules 12-13 These schedules offer demographic and economic indicators to help the reader understand the environment within which the District’s financial activities take place.

Operating Information- Schedules 14-18 These schedules contain employment, enrollment and infrastructure data to help the reader understand how the information in the District’s financial report relates to the services the District provides and the activities it performs.

Statistical Supplement 1 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Net Assets by Component Fiscal Years 2002 to 2009 (unaudited)

For the Fiscal Year Ended August 31,

2009 2008 2007 2006 2005 2004

Invested in capital assets, $154,294,591 $108,769,751 $85,151,890 $88,104,269 $83,734,597 $80,846,543 net of related debt Restricted - expendable 3,111,119 2,878,393 5,245,704 4,065,409 4,094,095 3,767,062

Unrestricted 183,091,871 197,414,131 182,087,163 137,683,182 110,978,913 86,851,854

Total Net Assets $340,497,581 $309,062,275 $272,484,757 $229,852,860 $198,807,605 $171,465,459

For the Fiscal Year Ended August 31,

2003 2002

Invested in capital assets, $78,215,559 $70,821,531 net of related debt Restricted - expendable 3,198,151 3,349,328

Unrestricted 63,900,415 48,198,262

Total Net Assets $145,314,125 $122,369,121

Note: Due to reporting format and definition changes prescribed by GASB Statement 34, only fiscal years 2002-2009 are available.

62 Statistical Supplement 2 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Revenues by Source Fiscal Years 2002 to 2009 (unaudited)

For the Fiscal Year Ended August 31,

2009 2008 2007 2006 2005 2004 2003 2002

Tuition and Fees (Net of Discounts) $22,498,442 $19,489,224 $18,277,273 $17,035,800 $16,296,743 $15,168,539 $13,232,742 $12,261,636 Governmental Grants and Contracts Federal Grants and Contracts 1,066,775 873,556 1,072,664 1,152,523 1,452,012 1,128,790 842,259 728,492 State Grants and Contracts 943,864 687,929 389,576 557,477 529,951 606,988 1,104,497 1,065,070 Non-Governmental Grants and Contracts 9,240 23,991 11,862 20,925 16,849 41,456 21,705 9,722 Sales & Services of Educational Activities 313,790 302,878 274,927 258,971 297,877 294,077 265,498 247,903 Auxiliary Enterprises 8,403,605 7,683,019 8,355,599 6,974,235 6,597,576 6,199,364 5,651,203 4,845,787 Other Operating Revenues 93,012 214,742 235,532 207,392 143,571 261,396 218,575 300,595 Total Operating Revenues 33,328,728 29,275,339 28,617,433 26,207,323 25,334,579 23,700,610 21,336,479 19,459,205 State Appropriations 34,736,692 34,531,169 30,348,597 30,034,523 26,323,004 26,304,599 25,544,291 26,822,811 Ad Valorem Taxes 62,453,402 59,342,814 54,007,568 49,784,859 47,034,008 45,778,327 42,295,633 38,567,024 Federal Grants and Contracts 8,071,608 5,969,004 5,109,697 5,206,232 4,517,215 4,408,555 3,703,931 2,568,880 Gifts 2,904,466 75,503 324,320 250,430 1,006,634 56,525 6,977 4,046 Investment Income 2,412,354 7,255,898 10,034,876 6,946,868 3,040,550 1,279,558 1,230,364 1,193,704 Other Non-Operating Revenues 200,000 165,902 7,560,259 1,100,000 0000 Total Non-Operating Revenues 110,778,522 107,340,290 107,385,317 93,322,912 81,921,411 77,827,564 72,781,196 69,156,465 Total Revenues $144,107,250 $136,615,629 $136,002,750 $119,530,235 $107,255,990 $101,528,174 $94,117,675 $88,615,670

For the Fiscal Year Ended August 31,

2009 2008 2007 2006 2005 2004 2003 2002

Tuition and Fees (Net of Discounts) 15.61% 14.27% 13.44% 14.25% 15.19% 14.94% 14.06% 13.84% Governmental Grants and Contracts Federal Grants and Contracts 0.74% 0.64% 0.79% 0.96% 1.35% 1.11% 0.89% 0.82% State Grants and Contracts 0.65% 0.50% 0.29% 0.47% 0.49% 0.60% 1.17% 1.20% Non-Governmental Grants and Contracts 0.01% 0.02% 0.01% 0.02% 0.02% 0.04% 0.02% 0.01% Sales & Services of Educational Activities 0.22% 0.22% 0.20% 0.22% 0.28% 0.29% 0.28% 0.28% Auxiliary Enterprises 5.83% 5.62% 6.14% 5.83% 6.15% 6.11% 6.00% 5.47% Other Operating Revenues 0.06% 0.16% 0.17% 0.17% 0.13% 0.26% 0.23% 0.34% Total Operating Revenues 23.12% 21.43% 21.04% 21.92% 23.61% 23.35% 22.65% 21.96% State Appropriations 24.10% 25.28% 22.31% 25.13% 24.54% 25.91% 27.14% 30.27% Ad Valorem Taxes 43.35% 43.43% 39.71% 41.65% 43.87% 45.08% 44.95% 43.52% Federal Grants and Contracts 5.60% 4.37% 3.76% 4.36% 4.21% 4.34% 3.94% 2.90% Gifts 2.02% 0.06% 0.24% 0.21% 0.94% 0.06% 0.01% 0.00% Investment Income 1.67% 5.31% 7.38% 5.81% 2.83% 1.26% 1.31% 1.35% Other Non-Operating Revenues 0.14% 0.12% 5.56% 0.92% 0.00% 0.00% 0.00% 0.00% Total Non-Operating Revenues 76.88% 78.57% 78.96% 78.08% 76.39% 76.65% 77.35% 78.04% Total Revenues 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Note: Due to reporting format and definition changes prescribed by GASB Statement 34, only fiscal years 2002-2009 are available.

63 Statistical Supplement 3 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Program Expenses by Function Fiscal Years 2002 to 2009 (unaudited)

For the Fiscal Year Ended August 31,

2009 2008 2007 2006 2005 2004 2003 2002

Instruction$ 48,239,642 $ 42,794,701 $ 39,935,069 $ 35,980,980 $ 32,131,290 $ 30,472,608 $ 28,632,554 $ 26,892,563 Research 0 0000000 Public Service 502,870 454,130 621,999 753,826 899,261 904,225 539,406 576,403 Academic Support 10,968,150 8,453,432 7,664,703 7,395,302 8,272,392 6,771,931 7,065,977 6,656,733 Student Services 8,164,472 7,842,678 7,123,789 6,534,106 6,313,181 5,976,613 5,817,607 5,335,523 Institutional Support 11,402,452 11,146,898 10,753,717 11,043,141 10,183,764 9,247,880 9,042,096 8,579,448 Operation and Maintenance of Plant 9,799,019 9,526,095 8,531,481 8,801,289 6,004,515 6,711,496 6,109,031 5,312,378 Scholarships and Fellowships 6,839,746 4,226,017 3,298,728 3,508,836 3,101,749 2,783,769 1,887,696 1,721,706 Auxiliary Enterprises 8,687,861 8,008,239 8,343,012 7,068,053 6,744,883 6,349,890 5,861,177 5,106,457 Depreciation 5,614,898 5,066,598 4,292,962 4,454,986 3,775,806 3,169,504 3,146,480 2,927,418 Total Operating Expenses 110,219,110 97,518,788 90,565,460 85,540,519 77,426,841 72,387,916 68,102,024 63,108,629 Interest on Capital Related Debt 2,444,297 2,519,323 2,805,393 2,922,248 2,332,489 2,636,385 2,628,436 2,091,990 Loss on Disposal of Fixed Assets 8,537 0 0 22,213 154,514 352,539 442,211 338,768 Other Non-Operating Expenses 0 0000000 Total Non-Operating Expenses 2,452,834 2,519,323 2,805,393 2,944,461 2,487,003 2,988,924 3,070,647 2,430,758 Total Expenses $ 112,671,944 $ 100,038,111 $ 93,370,853 $ 88,484,980 $ 79,913,844 $ 75,376,840 $ 71,172,671 $ 65,539,387

For the Fiscal Year Ended August 31,

2009 2008 2007 2006 2005 2004 2003 2002

Instruction 42.81% 42.79% 42.76% 40.66% 40.22% 40.44% 40.24% 41.02% Research 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Public Service 0.45% 0.45% 0.67% 0.85% 1.13% 1.20% 0.76% 0.88% Academic Support 9.73% 8.45% 8.21% 8.36% 10.35% 8.98% 9.93% 10.16% Student Services 7.25% 7.84% 7.63% 7.38% 7.90% 7.93% 8.17% 8.14% Institutional Support 10.12% 11.14% 11.52% 12.48% 12.74% 12.27% 12.70% 13.09% Operation and Maintenance of Plant 8.70% 9.52% 9.14% 9.95% 7.51% 8.90% 8.58% 8.11% Scholarships and Fellowships 6.07% 4.22% 3.53% 3.97% 3.88% 3.69% 2.65% 2.63% Auxiliary Enterprises 7.71% 8.01% 8.94% 7.99% 8.44% 8.42% 8.24% 7.79% Depreciation 4.98% 5.06% 4.60% 5.03% 4.72% 4.20% 4.42% 4.47% Total Operating Expenses 97.82% 97.48% 97.00% 96.67% 96.89% 96.03% 95.69% 96.29% Interest on Capital Related Debt 2.17% 2.52% 3.00% 3.30% 2.92% 3.50% 3.69% 3.19% Loss on Disposal of Fixed Assets 0.01% 0.00% 0.00% 0.03% 0.19% 0.47% 0.62% 0.52% Other Non-Operating Expenses 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total Non-Operating Expenses 2.18% 2.52% 3.00% 3.33% 3.11% 3.97% 4.31% 3.71% Total Expenses 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Note: Due to reporting format and definition changes prescribed by GASB Statement 34, only fiscal years 2002-2009 are available.

64 Statistical Supplement 4 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Tuition and Fees Last Ten Academic Years (unaudited)

Resident Fees per Semester Credit Hour (SCH)

Academic Student ID Records Year Fee Fee Tuition Cost for 12 SCH Increase from Prior Year (Fall) (per student) (per student) In-District Out-of-District In-District Out-of-District In-District Out-of-District

2008 $2.00 $2.00 $27.00 $41.00 $448 $616 0.0% 8.5% 2007 2.00 2.00 27.00 37.00 448 568 0.0% 4.4% 2006 2.00 2.00 27.00 35.00 448 544 0.0% 4.6% 2005 2.00 2.00 27.00 33.00 448 520 5.7% 4.8% 2004 2.00 2.00 25.00 31.00 424 496 6.0% 5.1% 2003 2.00 2.00 23.00 29.00 400 472 6.4% 0.0% 2002 2.00 2.00 21.00 29.00 376 472 6.8% 5.4% 2001 2.00 2.00 19.00 27.00 352 448 7.3% 5.7% 2000 2.00 2.00 17.00 25.00 328 424 0.0% 0.0% 1999 2.00 2.00 17.00 25.00 328 424

Non-Resident Fees per Semester Credit Hour (SCH)

Academic Student ID Records Year Fee Fee Tuition Cost for 12 SCH Increase from Prior Year (Fall) (per student) (per student) Out of State International In-District Out-of-District In-District Out-of-District

2008 $2.00 $2.00 $96.00 $96.00 $1,276 $1,276 10.4% 10.4% 2007 2.00 2.00 90.00 90.00 1,204 1,204 11.1% 11.1% 2006 2.00 2.00 86.00 86.00 1,156 1,156 9.1% 9.1% 2005 2.00 2.00 80.00 80.00 1,084 1,084 2.3% 2.3% 2004 2.00 2.00 78.00 78.00 1,060 1,060 2.3% 2.3% 2003 2.00 2.00 76.00 76.00 1,036 1,036 16.1% 16.1% 2002 2.00 2.00 64.00 64.00 892 892 2.8% 2.8% 2001 2.00 2.00 62.00 62.00 868 868 2.8% 2.8% 2000 2.00 2.00 60.00 60.00 844 844 0.0% 0.0% 1999 2.00 2.00 60.00 60.00 844 844

Note: Includes basic enrollment tuition and fees but excludes course based fees such as laboratory fees, testing fees, building use fees and certification fees.

65 Statistical Supplement 5 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Assessed Value and Taxable Assessed Value of Property Last Ten Fiscal Years (unaudited)

Direct Rate

Ratio of Taxable Maintenance Assessed Taxable Assessed Value & Debt Valuation of Less: Exemptions Assessed Value to Assessed Operations Service Total Fiscal Year Property / Abatements (TAV) Value (a) (a) (a)

2008-09 $84,577,368,984 $12,464,189,034 $72,113,179,950 85.26% 0.080000 0.006493 0.086493

2007-08 80,761,165,342 12,045,524,959 68,715,640,383 85.09% 0.080000 0.006984 0.086984

2006-07 72,611,550,902 10,599,692,156 62,011,858,746 85.40% 0.080000 0.007683 0.087683

2005-06 65,033,720,014 8,771,690,622 56,262,029,392 86.51% 0.080000 0.009422 0.089422

2004-05 60,503,212,557 8,231,934,419 52,271,278,138 86.39% 0.080000 0.010646 0.090646

2003-04 56,801,677,128 7,615,545,714 49,186,131,414 86.59% 0.080000 0.011932 0.091932

2002-03 54,381,799,691 7,648,622,399 46,733,177,292 85.94% 0.080000 0.011946 0.091946

2001-02 48,847,572,140 6,921,223,321 41,926,348,819 85.83% 0.080000 0.012843 0.092843

2000-01 42,197,212,110 5,815,713,523 36,381,498,587 86.22% 0.080000 0.014049 0.094049

1999-00 36,521,097,888 5,189,173,033 31,331,924,855 85.79% 0.080000 0.016723 0.096723

Source: Collin County Central Appraisal District Note: Property is assessed at full market value. (a) per $100 Taxable Assessed Valuation

66 Statistical Supplement 6 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT State Appropriation per FTSE and Contact Hour Last Ten Fiscal Years (unaudited)

Appropriation per FTSE Appropriation per Contact Hour State State Academic Voc/Tech Total Appropriation State FTSE Appropriation Contact Contact Contact per Contact Fiscal Year Appropriation (a) per FTSE Hours (a) Hours (a,b) Hours Hour

2008-09 $34,736,692 14,043 $2,474 7,806,584 1,583,558 9,390,142 $3.70

2007-08 34,531,169 13,741 2,513 7,347,024 1,507,665 8,854,689 3.90

2006-07 30,348,597 12,960 2,342 6,804,144 1,479,300 8,283,444 3.66

2005-06 30,034,523 12,253 2,451 6,503,995 1,455,764 7,959,759 3.77

2004-05 26,323,004 11,829 2,225 6,247,036 1,473,108 7,720,144 3.41

2003-04 26,304,599 11,392 2,309 5,931,820 1,550,337 7,482,157 3.52

2002-03 25,544,291 10,646 2,399 5,456,992 1,587,029 7,044,021 3.63

2001-02 26,822,811 9,568 2,803 4,864,976 1,613,019 6,477,995 4.14

2000-01 22,504,566 8,475 2,655 4,340,352 1,562,963 5,903,315 3.81

1999-00 21,317,463 7,629 2,794 3,855,469 1,210,626 5,066,095 4.21

1998-99 18,584,272 6,970 2,666 3,470,448 1,292,180 4,762,628 3.90

Note: FTSE is defined as the number of full time students plus total hours taken by part-time students divided by 15 for a semester calculation or 30 for yearly calculation.

(a) Source CBM001 (b) Source CBM00A

67 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Principal Taxpayers Last Ten Tax Years (unaudited)

Taxable Assessed Value (TAV) by Tax Year Taxpayer Type of Business 2009 2008 2007 2006 Oncor/TXU/Lone Star Gas Public Utility$ 449,097,946 $ 465,330,568 $ 444,233,857 $ 448,001,719 Stonebriar Mall Ltd. Partnership Commercial 221,339,975 221,339,975 209,537,242 199,407,047 JC Penney Co. Inc. Commercial 166,407,858 171,255,476 169,035,192 163,853,668 Electronic Data Systems Corp Computer Center 134,919,916 140,996,529 138,310,883 134,115,136 Coventry II DDR Commercial 133,138,544 Briar Preston Ridge Shop. Ctr. Commercial 126,955,751 124,500,000 121,547,370 109,005,094 IBM Credit Commercial 118,976,125 Southwestern Bell/SBC Telephone Utility 117,082,347 131,758,930 142,582,790 134,742,940 Willow Bend Shopping Center Commercial 116,500,000 127,374,433 127,000,000 120,000,004 AT&T Mobility LLC Telephone Utility 107,715,878 Texas Instruments, Inc Manufacturer 99,132,100 304,177,822 Legacy Campus LP Commercial 100,000,000 United Dominion Realty LP Commercial 113,285,714 General Telephone of the SW Telephone Utility 108,684,240 Alcatel USA Commercial 116,857,023 EDS Information Services LLC Commercial Tenet Frisco LTD Commercial 98,758,617 108,855,385 Digital Switch Corp Manufacturer Countrywide Home Loans Inc Commercial 111,297,882 Fujitsu Network Transmission Manufacturer Dallas Morning News Publishing Collin Creek Mall Commercial Albertson's Commercial O.T.R. Investment Company Cisco Systems Commercial Totals 1,692,134,340 1,715,823,747 1,650,138,051 1,839,015,838 Total Taxable Assessed Value $ 72,113,179,950 $ 68,715,640,383 $ 62,011,858,746 $ 56,262,029,392

Type of Taxable Assessed Value (TAV) by Tax Year Taxpayer Business 2009 2008 2007 2006 Oncor/TXU/Lone Star Gas Public Utility 0.62% 0.68% 0.72% 0.80% Stonebriar Mall Ltd. Partnership Commercial 0.31% 0.32% 0.34% 0.35% JC Penney Co. Inc. Commercial 0.23% 0.25% 0.27% 0.29% Alcatel USA Commercial 0.21% Electronic Data Systems Corp Computer Center 0.19% 0.21% 0.22% 0.24% Coventry II DDR Commercial 0.18% Southwestern Bell/SBC Telephone Utility 0.16% 0.19% 0.23% 0.24% Willow Bend Shopping Center Commercial 0.16% 0.19% 0.20% 0.21% EDS Information Services LLC Commercial Briar Preston Ridge Shop. Ctr. Commercial 0.18% 0.18% 0.20% 0.19% IBM Credit Commercial 0.16% AT&T Mobility Telephone Utility 0.15% Tenet Frisco LTD Commercial 0.16% 0.19% Digital Switch Corp Manufacturer Texas Instruments, Inc Manufacturer 0.16% 0.54% United Dominion Realty LP Commercial 0.16% Countrywide Home Loans Inc Commercial 0.16% Fujitsu Network Transmission Manufacturer Dallas Morning News Publishing Collin Creek Mall Commercial General Telephone of the SW Telephone Utility 0.16% Albertson's Commercial O.T.R. Investment Company Cisco Systems Commercial Legacy Campus LP Commercial

Totals 2.35% 2.50% 2.50% 3.26%

Source: Tax Assessor/Collector of Collin County

68 Statistical Supplement 7 COLLIN COUNTCOLLIN COUNTY COMMUNITY COLLEGE DISTRICT Principal Taxpayers Last Ten Years (unaudited)

Taxable Assessed Value (TAV) by Tax Year 2005 2004 2003 2002 2001 2000 $ 430,799,408 $ 440,740,734 $ 385,345,180 $ 429,809,290 $ 397,482,131 $ 344,701,392 204,696,624 189,907,788 188,740,343 139,493,234 88,096,255 162,976,760 222,671,857 159,975,177 199,593,202 181,503,814 212,810,618 134,832,418 306,513,439 124,527,452 319,927,071 328,676,896 358,412,807

106,000,000 124,377,167 110,000,000 99,548,293

131,985,690 182,099,531 146,847,870 202,845,105 156,967,985 136,486,026 115,539,989 107,652,858 105,140,788

92,807,629 99,688,060

81,832,886 76,299,955 141,425,066 99,641,880 112,747,868 117,707,972 92,529,664 109,082,760 108,281,094 331,196,673 200,519,680 226,552,388

112,085,539 96,957,201 96,695,103 87,985,827 88,284,042 89,305,727 88,234,231 112,401,435 98,118,249 104,199,403 1,633,533,487 1,886,887,417 1,543,260,979 2,020,918,379 1,729,278,542 1,728,426,720 $ 52,271,278,138 $ 49,186,131,414 $ 46,733,177,292 $ 41,926,348,819 $ 36,381,498,587 $ 31,331,924,855

Taxable Assessed Value (TAV) by Tax Year 2005 2004 2003 2002 2001 2000 0.82% 0.90% 0.82% 1.03% 1.09% 1.10% 0.39% 0.39% 0.40% 0.33% 0.24% 0.31% 0.45% 0.34% 0.48% 0.50% 0.68% 0.27% 0.20% 0.26% 0.62% 0.27% 0.76% 0.90% 1.14%

0.25% 0.37% 0.31% 0.48% 0.43% 0.44% 0.22% 0.22% 0.22% 0.22% 0.25% 0.20% 0.25% 0.24% 0.24%

0.18% 0.22% 0.23% 0.79% 0.55% 0.72% 0.26% 0.32%

0.31% 0.31% 0.21% 0.21% 0.28% 0.25% 0.28% 0.22% 0.24% 0.27% 0.23% 0.21%

3.12% 3.83% 3.29% 4.82% 4.75% 5.51%

69 Statistical Supplement 8 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Property Tax Levies and Collections Last Ten Tax Years (unaudited) (amounts expressed in thousands)

Prior Current Fiscal Year Cumulative Adjusted Collections Collections Collections Total Cumulative Ended Levy Levy Tax Levy Year of Levy Prior Levies Prior Levies Collections Collections of August 31 (a) Adjustments (b) (c) Percentage (d) (e) (C+D+E) Adjusted Levy

2009 $64,397 $0 $64,397 62,909 97.69% $0 $0 $62,909 97.69%

2008 60,873 (69) 60,804 60,265 99.11% 0 542 60,807 100.00%

2007 54,846 305 55,151 54,058 98.02% 1,045 49 55,152 100.00%

2006 50,866 150 51,016 50,057 98.12% 949 8 51,014 100.00%

2005 47,802 (37) 47,765 47,260 98.94% 500 3 47,763 100.00%

2004 45,713 n/a 45,713 45,079 98.61% n/a 2 n/a n/a

2003 43,187 n/a 43,187 42,482 98.37% n/a 1 n/a n/a

2002 39,206 n/a 39,206 38,544 98.31% n/a 1 n/a n/a

2001 34,709 n/a 34,709 34,122 98.31% n/a 1 n/a n/a

2000 30,625 n/a 30,625 30,271 98.85% n/a 1 n/a n/a

Source: (a) As reported in notes to the financial statement for the year of the levy. (b) As of August 31st of the current reporting year. (c) Property tax only - does not include penalties and interest. (d) Represents cumulative collections of prior years not collected in the current year of the year of the tax levy. (e) Represents current year collections of prior years levies.

Total Collections = C + D + E

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71 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Ratios of Outstanding Debt Last Ten Fiscal Years (unaudited)

For the Year Ended August 31, 2009 2008 2007 2006

General Bonded Debt General Obligation Bonds$ 48,345,000 $ 50,595,000 $ 52,745,000 $54,315,000 Notes 0 0 0 0 Less: Funds restricted for debt service (2,686,501) (2,324,904) (1,962,274) (1,481,080) Net General Bonded Debt 45,658,499 48,270,096 50,782,726 52,833,920

Other Debt Revenue Bonds 8,775,000 9,610,000 13,511,860 14,312,547 Notes 0 0 0 0 Capital Lease Obligations 0 0 0 0 Less: Funds restricted for debt service 0 0 (2,826,857) (2,684,573) Total Outstanding Debt $ 54,433,499 $ 57,880,096 $ 61,467,729 $ 64,461,894

General Bonded Debt Ratios Per Capita 61.04 64.53 70.05 76.52 Per FTSE 3,323 3,513 4,145 4,466 As a percentage of Taxable Assessed Value 0.07% 0.07% 0.09% 0.10%

Total Outstanding Debt Ratios Per Capita 72.77 77.37 89.02 93.36 Per FTSE 3,961 4,212 5,017 5,449 As a percentage of Taxable Assessed Value 0.08% 0.08% 0.12% 0.12%

72 Statistical Supplement 9

Ratios of Outstanding Debt Last Ten Fiscal Years (unaudited)

For the Year Ended August 31, 2005 2004 2003 2002 2001 2000

$39,225,000 $42,698,564 $28,172,129 $32,205,695 $16,943,301 $20,718,172 0 0 0000 (857,256) (857,256) (1,054,749) (1,083,990) (1,194,541) (842,404) 38,367,744 41,841,308 27,117,380 31,121,705 15,748,760 19,875,768

15,083,235 16,263,923 23,334,610 25,125,296 26,825,983 28,466,670 0 0 0000 0 0 0000 (2,566,666) (2,586,351) (2,558,882) (2,722,724) (2,859,394) (2,850,297) $ 50,884,313 $ 55,518,880 $ 47,893,108 $ 53,524,277 $ 39,715,349 $ 45,492,141

58.73 68.01 46.99 56.61 30.30 40.01 3221 3,673 2,547 3,253 1,858 2,605 0.07% 0.09% 0.06% 0.07% 0.04% 0.05%

78.02 90.25 82.99 97.41 76.41 91.57 4279 4,873 4,499 5.594 4,686 5,963 0.10% 0.11% 0.10% 0.13% 0.09% 0.13%

73 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT

For the Year Ended August 31 2009 2008 2007 2006

Taxable Assessed Value $73,798,652,899 $68,715,640,383 $62,011,858,746 $56,262,029,392

General Obligations

Statutory/Tax Levy/Limit for Debt Service $8,855,838,348 $8,245,876,846 $7,441,423,050 $6,751,443,527 Less: Funds Restricted for Repayment of General Obligations (2,686,501) (2,324,904) (1,962,274) (1,481,080) Total Net General Obligation Debt 8,853,151,847 8,243,551,942 7,439,460,776 6,749,962,447 Current Year Debt Service Requirements (5,529,297) (6,282,577) (4,421,633) (5,089,918) Excess Statutory Limit for Debt Service Over Current Requirements $8,847,622,550 $8,237,269,365 $7,435,039,143 $6,744,872,529

Net Current Requirements as a % of Statutory Limit -0.09% -0.10% -0.09% -0.10%

Note: Texas Education Code Section 130.122 limits the debt service tax levy of community colleges to $0.50 per hundred dollars TAV.

74 Statistical Supplement 10

Legal Debt Margin Information Last Ten Fiscal Years (unaudited)

For the Year Ended August 31 2005 2004 2003 2002 2001 2000

$52,271,278,138 $49,186,131,414 $46,733,177,292 $41,926,348,819 $36,381,498,587 $31,331,924,855

$6,272,553,377 $5,902,335,770 $5,607,981,275 $5,031,161,858 $4,365,779,830 $3,759,830,983

(1,124,002) (857,256) (1,054,749) (1,083,990) (1,194,541) (842,404) 6,271,429,375 5,901,478,514 5,606,926,526 5,030,077,868 4,364,585,289 3,758,988,579 (5,274,509) (6,106,289) (6,343,262) (5,745,127) (4,873,469) (6,209,184)

$6,266,154,866 $5,895,372,225 $5,600,583,264 $5,024,332,741 $4,359,711,820 $3,752,779,395

-0.10% -0.12% -0.13% -0.14% -0.14% -0.19%

75 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Pledged Revenue Coverage Last Ten Fiscal Years (unaudited)

Revenue Bonds

Pledged Revenues Fiscal Year Ended Building Interest Food August 31 Tuition Fees Income Services

2009 $786,968 $4,019,965 $2,412,354 $67,102

2008 731,213 3,721,857 7,255,898 95,073

2007 683,775 3,472,763 10,034,876 109,013

2006 659,700 3,330,112 6,946,868 103,613

2005 623,887 3,247,071 3,040,550 98,645

2004 616,680 3,152,155 1,279,558 98,391

2003 568,943 2,893,713 1,230,364 101,008

2002 528,510 2,603,430 1,193,704 96,437

2001 477,173 2,319,488 1,669,237 92,064

2000 434,175 2,074,410 1,345,740 90,793

1999 412,230 1,933,911 953,435 90,812

76 Statistical Supplement 11

Pledged Revenue Coverage Last Ten Fiscal Years (unaudited)

Pledged Revenues Debt Service Requirements

Bookstore Coverage Commission Total Principal Interest Total Ratio

$7,466,484 $14,752,873 $835,000 $273,017 $1,108,017 13.31

6,692,096 18,496,137 1,160,000 643,748 1,803,748 10.25

7,192,529 21,492,956 800,000 688,709 1,488,709 14.44

5,918,794 16,959,087 770,000 724,701 1,494,701 11.35

5,638,060 12,648,213 1,180,000 769,535 1,949,535 6.49

5,332,434 10,479,218 1,870,000 932,777 2,802,777 3.74

5,052,267 9,846,295 1,790,000 1,180,185 2,970,185 3.32

4,241,739 8,663,820 1,700,000 1,275,687 2,975,687 2.91

3,796,077 8,354,039 1,640,000 1,378,826 3,018,826 2.77

3,320,387 7,265,505 1,480,000 1,480,398 2,960,398 2.45

3,145,009 6,535,397 1,325,000 1,673,325 2,998,325 2.18

77 Statistical Supplement 12 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Demographic and Economic Statistics - Taxing District Last Ten Fiscal Years (unaudited)

District District District Fiscal District Personal Income Personal Income Unemployment Year Population1 ($ in thousands)2 Per Capita Rate3

2009 764,500 N/A* N/A* 8.2%

2008 748,050 N/A* N/A* 4.8%

2007 724,900 N/A* N/A* 3.6%

2006 690,500 N/A* N/A* 4.0%

2005 648,800 30,217,445 45,720 4.2%

2004 615,200 25,885,770 42,077 4.8%

2003 577,100 23,329,268 40,425 6.2%

2002 549,800 22,420,294 40,779 6.7%

2001 519,755 22,343,228 42,988 4.7%

2000 496,806 22,556,483 45,403 2.2%

1999 462,042 19,853,945 42,970 2.2%

1 Source: Population from North Texas Council of Governments Research and Information Services Due to refinements in the NCTCOG's 2008 population estimates methodology, amounts reported may differ from prior years. 2 Personal Income from U.S. Bureau of Economic Analysis 3 Unemployment rate from Texas Workforce Commission

* Information not currently available from above mentioned source for these years.

78 Statistical Supplement 13 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Principal Employers Current Fiscal Year and Ten Years Ago (unaudited)

2009 1999

Percentage Percentage Number of of Total Number of of Total Employer Employees Employment Employees Employment Bank of America Home Loans (formerly Countrywide Home Loans) 8,141 2.18% Plano Independent School District 7,073 1.90% 5,200 2.19% J.C. Penney, Inc. 5,100 1.37% 5,100 2.15% Electronic Data Systems Corp 5,000 1.34% 8,000 3.37% Frisco Independent School District 4,700 1.26% University of Texas at Dallas 2,830 0.76% 2,000 0.84% Perot Systems Corporation 2,697 0.72% McKinney Independent School District 2,622 0.70% Raytheon 2,500 0.67% Allen Independent School District 2,348 0.63% Alcatel 2,023 0.54% 7,000 2.95% AT&T 2,000 0.54% CHC Acquisition Corporation 2,000 0.54% Collin County Community College District 1,665 0.45% 2,100 0.88% T-Mobile USA 1,500 0.40% Presbyterian Hospital of Plano 1,488 0.40% Capital One Auto Finance 1,415 0.38% Medical Center of Plano (HCA Medical Ctr) 1,348 0.36% City of Plano 1,256 0.34% 2,200 0.93% American Pad and Paper 1,200 0.32% Hewlett-Packard Company 1,200 0.32% Medical Center of McKinney 1,200 0.32% Fujitsu Network Communications 1,150 0.31% 2,000 0.84% Network Associates 1,000 0.27% Pepsico Information Technology 1,000 0.27% Texas Instruments Incorporated 7,100 2.99% Collin County 1,000 0.42% Frito-Lay 6,000 2.53% North Central Medical Center 1,900 0.80% 64,456 17.29% 49,600 20.88%

Source: North Central Texas Council of Governments and Local University and School District web sites Note: Percentages are calculated using the lowest points of the range.

79 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Faculty, Staff, and Administrators Statistics Last Ten Fiscal Years (unaudited)

Fiscal Year 2009 2008 2007 2006

Faculty Full-Time 328 293 268 238 Part-Time 368 361 338 345 Total 696 654 606 583

Percent Full-Time 47.1% 44.8% 44.2% 40.8% Part-Time 52.9% 55.2% 55.8% 59.2%

Staff and Administrators Full-Time 564 546 525 495 Part-Time 405 888 738 894 Total 969 1,434 1,263 1,389

Percent Full-Time 58.2% 38.1% 41.6% 35.6% Part-Time 41.8% 61.9% 58.4% 64.4%

FTSE per Full-Time Faculty 42.81 46.90 48.36 51.48 FTSE per Full-Time Staff Member 24.90 25.17 24.69 24.75

Average Annual Faculty Salary$ 54,181 $ 53,404 $ 51,109 $ 47,365

FTSE as reported on CBM00A

80 Statistical Supplement 14

Faculty, Staff, and Administrators Statistics Last Ten Fiscal Years (unaudited)

Fiscal Year 2005 2004 2003 2002 2001 2000

214 228 186 180 184 188 327 310 385 311 307 326 541 538 571 491 491 514

39.6% 42.4% 32.6% 36.7% 37.5% 36.6% 60.4% 57.6% 67.4% 63.3% 62.5% 63.4%

493 470 516 473 459 446 743 1,007 1,219 898 1,017 838 1,236 1,477 1,735 1,371 1,476 1,284

39.9% 31.8% 29.7% 34.5% 31.1% 34.7% 60.1% 68.2% 70.3% 65.5% 68.9% 65.3%

55.28 49.96 57.24 53.16 46.06 40.58 23.99 24.24 20.63 20.23 18.46 17.11

$ 45,836 $ 45,355 $ 44,971 $ 44,788 $ 41,139 $ 39,048

81 Statistical Supplement 15 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Enrollment Details Last Five Fiscal Years (unaudited)

Fall 2008 Fall 2007 Fall 2006 Fall 2005 Fall 2004 Student Classification Number Percent Number Percent Number Percent Number Percent Number Percent 00-30 hours 13,387 64% 13,455 68% 12,614 66% 11,983 66% 11,413 65% 31-60 hours 5,034 24% 4,866 24% 4,756 25% 4,562 25% 4,329 25% > 60 hours 2,579 12% 1,623 8% 1,766 9% 1,707 9% 1,759 10% Total 21,000 100% 19,944 100% 19,136 100% 18,252 100% 17,501 100%

Fall 2008 Fall 2007 Fall 2006 Fall 2005 Fall 2004 Semester Hour Load Number Percent Number Percent Number Percent Number Percent Number Percent Less than 3 245 1% 140 1% 197 1% 221 1% 278 2% 3-5 semester hours 4,371 21% 4,611 23% 4,432 23% 4,228 23% 4,152 24% 6-8 semester hours 4,706 22% 4,409 22% 4,325 23% 4,107 23% 3,861 22% 9-11 semester hours 3,224 15% 3,204 16% 3,077 16% 2,922 16% 2,889 17% 12-14 semester hours 6,850 33% 6,296 32% 5,860 30% 5,673 31% 5,178 28% 15-17 semester hours 1,423 7% 1,208 6% 1,131 6% 996 5% 1,045 6% 18 & Over 181 1% 76 0% 114 1% 105 1% 98 1% Total 21,000 100% 19,944 100% 19,136 100% 18,252 100% 17,501 100%

Average course load 8.6 8.6 8.6 8.6 8.5

Fall 2008 Fall 2007 Fall 2006 Fall 2005 Fall 2004 Tuition Status Number Percent Number Percent Number Percent Number Percent Number Percent TX Resident (In-District) 14,585 69% 13,667 69% 13,046 69% 12,308 67% 11,975 69% TX Resident (Out-of-District) 4,878 23% 4,877 24% 4,662 24% 4,367 24% 4,065 23% Non-Resident Tuition 1,537 7% 1,400 7% 1,428 7% 1,577 9% 1,461 8% Total 21,000 100% 19,944 100% 19,136 100% 18,252 100% 17,501 100%

Source: CBM001 Fall 2008

82 Statistical Supplement 16 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Student Profile Last Five Fiscal Years (unaudited)

Fall 2008 Fall 2007Fall 2006 Fall 2005 Fall 2004 Gender Number Percent Number Percent Number Percent Number Percent Number Percent Male 9,116 43% 8,733 44% 8,372 44% 7,945 44% 7,520 43% Female 11,884 57% 11,211 56% 10,764 56% 10,307 56% 9,981 57% Total 21,000 100% 19,944 100% 19,136 100% 18,252 100% 17,501 100%

Fall 2008 Fall 2007 Fall 2006Fall 2005 Fall 2004 Ethnic Origin Number Percent Number Percent Number Percent Number Percent Number Percent White 13,183 63% 12,950 64% 12,952 67% 12,549 68% 12,267 70% Hispanic 2,582 12% 2,296 12% 2,041 11% 1,855 10% 1,612 9% African American 1,906 9% 1,718 9% 1,556 8% 1,403 8% 1,263 7% Asian 1,810 9% 1,626 8% 1,528 8% 1,420 8% 1,317 8% Foreign 827 4% 838 4% 897 5% 902 5% 945 5% Native American 170 1% 147 1% 131 1% 118 1% 97 1% Other 522 2% 369 2% 31 0% 5 0% 0 0% Total 21,000 100% 19,944 100% 19,136 100% 18,252 100% 17,501 100%

Fall 2008 Fall 2007 Fall 2006Fall 2005 Fall 2004 Age Number Percent Number Percent Number Percent Number Percent Number Percent Under 18 1,711 8% 1,606 8% 1,436 8% 1,151 6% 966 6% 18 - 21 9,794 47% 9,251 47% 8,790 46% 8,313 45% 7,817 44% 22 - 24 2,697 13% 2,569 13% 2,432 13% 2,398 13% 2,385 14% 25 - 35 4,017 19% 3,854 19% 3,879 20% 3,760 21% 3,747 21% 36 - 50 2,280 11% 2,174 11% 2,141 11% 2,131 12% 2,133 12% 51 & Over 501 2% 490 2% 458 2% 499 3% 453 3% Total 21,000 100% 19,944 100% 19,136 100% 18,252 100% 17,501 100%

Average Age (Fall) 25.2 24.9 25.3 25.4 25.8

83 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Transfer to Senior Institutions 2006 Fall Students as of Fall 2007 (Includes community, technical and public senior colleges in Texas) (unaudited)

Transfer Student Count Academic Technical Tech-Prep Total Percentage Transfer Destination ACCD-San Antonio College 4 1 0 5 0.0820% ACCD- St Phillip's College 1 1 0 2 0.0328% ACCD-Northwest Vista College 4 0 0 4 0.0656% Alvin Community College 1 1 0 2 0.0328% Amarillo College 1 1 0 2 0.0328% Angelina College 1 0 0 1 0.0164% Austin Community College 64 4 2 70 1.1487% Blinn College 66 6 0 72 1.1815% Central Texas College 2 1 0 3 0.0492% Cisco Junior College 4 1 0 5 0.0820% Coastal Bend College 1 0 0 1 0.0164% College of the Mainland 1 0 0 1 0.0164% Collin County Community College 251 47 9 307 5.0377% Dallas County Community College District 473 75 14 562 9.2222% Del Mar College 3 0 0 3 0.0492% El Paso Community College District 3 0 0 3 0.0492% Frank Phillips College 1 0 0 1 0.0164% Grayson County College 58 33 0 91 1.4933% Hill College 3 0 0 3 0.0492% Houston Community College System 11 0 1 12 0.1969% Kilgore College 6 0 0 6 0.0985% Lamar State College 2 0 0 2 0.0328% Lone Star College 13 2 1 16 0.2626% McLennan Community College 3 1 1 5 0.0820% Navarro College 7 0 0 7 0.1149% North Central Texas College 55 9 0 64 1.0502% Northeast Texas Community College 2 1 0 3 0.0492% Odessa College 3 0 0 3 0.0492% Paris Junior College 12 4 0 16 0.2626% Ranger College 2 0 0 2 0.0328% San Jacinto College 5 0 0 5 0.0820% South Plains College 23 0 1 24 0.3938% Southwest Texas Junior College 1 0 0 1 0.0164% Tarrant County College District 31 6 0 37 0.6072% Temple College 1 0 0 1 0.0164% Texarkana College 2 0 0 2 0.0328% Texas Southmost College 1 0 0 1 0.0164% Texas State Technical College- Waco 3 0 0 3 0.0492% Texas State Technical College- West Texas 2 0 0 2 0.0328% Trinity Valley Community College 10 3 0 13 0.2133% Tyler Junior College 12 0 0 12 0.1969% Vernon College 5 0 0 5 0.0820% Victoria College, The 1 0 0 1 0.0164% Weatherford College 9 2 0 11 0.1805% Western Texas College 1 0 0 1 0.0164% Wharton County Junior College 1 0 0 1 0.0164% Angelo State University 12 1 0 13 0.2133% The University of Texas at Dallas 1062 84 10 1156 18.9695%

84 Statistical Supplement 17

Transfer to Senior Institutions 2006 Fall Students as of Fall 2007 (Includes community, technical and public senior colleges in Texas) (unaudited)

University of North Texas 1001 64 10 1075 17.6410% The University of Texas Austin 426 11 3 440 7.2202% Texas A&M University 414 11 1 426 6.9905% Texas Tech University 379 7 3 389 6.3833% Texas Woman's University 282 38 1 321 5.2675% Texas A&M University at Commerce 112 7 3 122 2.0020% Texas A&M University at Corpus Christi 10 0 0 10 0.1641% Texas A&M University at Galveston 14 0 0 14 0.2297% Texas A&M University at Kingsville 1 0 0 1 0.0164% Texas A&M University at Texarkana 1 0 0 1 0.0164% Texas A&M International University 1 0 0 1 0.0164% The University of Texas Arlington 158 19 2 179 2.9373% Texas State University 145 7 0 152 2.4943% Midwestern State University 40 5 1 46 0.7548% Sam Houston State University 39 2 0 41 0.6728% West Texas A&M University 12 0 0 12 0.1969% The University of Texas San Antonio 25 5 1 31 0.5087% Prairie View A&M University 12 2 0 14 0.2297% Texas Southern University 5 0 0 5 0.0820% Tarleton State University 19 1 0 20 0.3282% Stephen F. Austin State University 102 5 1 108 1.7722% University of Houston 37 1 0 38 0.6236% Lamar University 2 1 0 3 0.0492% Sul Ross State University 4 0 0 4 0.0656% The University of Texas of the Permian Basin 3 0 0 3 0.0492% The University of Texas Tyler 27 3 0 30 0.4923%

Health Science Institutions Baylor College of Medicine 0 1 0 1 0.0164% UT Southwestern Medical Center at Dallas 5 2 0 7 0.1149% The Univ of Texas Health Science Ctr at Houston 3 0 0 3 0.0492% The Univ of Texas Health Science Ctr at San Antonio 2 0 0 2 0.0328% The Univ of Texas Medical Branch at Galveston 5 5 0 10 0.1641% University of N Texas Health Science Ctr at Ft Worth 2 2 0 4 0.0656% University of Texas M.D. Anderson Cancer Center 1 0 0 1 0.0164% Texas A&M Univ Health Science Center 8 0 0 8 0.1313% Texas Tech Univ Health Sciences Center 8 1 0 9 0.1477%

Total 5,545 484 65 6,094 100.00%

85 Statistical Supplement 18 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Capital Asset Information Fiscal Years 2003 to 2009 (unaudited)

Fiscal Year 2009 2008 2007 2006 2005 2004 2003

Academic Building 8888877 Square Footage 744,634 723,368 651,361 651,361 649,249 594,434 541,247

Libraries 3333333 Square Footage 206,539 135,172 135,172 135,172 135,172 88,987 88,987 Number of Volumes 204,403 193,266 189,003 185,327 180,032 160,816 154,854

Administrative and Support Buildings * * * * * * * Square Footage 350,215 241,691 239,991 239,991 239,991 239,991 239,991

Dining Facilities 2222222 Square Footage 11,926 11,926 11,926 11,926 11,926 11,926 11,926 Average Daily Customers n/a n/a n/a n/a n/a n/a n/a

Athletic Facilities 3333333 Square Footage 89,647 99,167 99,167 99,167 99,167 99,167 99,167 Gymnasiums 1111111 Fitness Centers 3333333 Tennis Courts 10 10 10 10 10 10 10 Racquet Ball Courts 9999999

Plant Facilities 4444444 Square Footage 20,381 20,381 20,381 18,269 18,269 16,269 16,269

Transportation Cars 7776655 Light Trucks/Vans 16 15 15 15 15 13 11 Buses 0000000

* Comprise parts of various buildings.

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT

Supplementary Financial Information (Schedules for Comparative Review)

These fund schedules are presented for comparison to previous financial reports and are unaudited.

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Schedule of Fund Assets and Liabilities - Unaudited As of August 31, 2009 (with comparative totals at August 31, 2008)

Current funds Auxiliary Quasi - Unrestricted enterprises Restricted Endowment Total

Cash and cash equivalents $ 84,204,917 $ 286,154 $ 0 $ 0 $ 84,491,071 Investments 0 0 0 0 0 Accounts receivable (with no allowance) 4,087,743 250,005 0 0 4,337,748 Tax receivable (net of allowance for doubtful accounts of $711,335 and $672,488) 504,914 0 0 0 504,914 Prepaid expenses 556,557 121,767 199 0 678,523 Contracts and grants receivables 0 0 771,137 0 771,137 Consumable inventory 0 33,340 0 0 33,340 Inventories for resale 0 2,641,581 0 0 2,641,581 Capital assets 0 0 0 0 0 Total assets 89,354,131 3,332,847 771,336 0 93,458,314

Liabilities: Accounts payable / accrued liabilities 2,234,865 1,103,619 712 0 3,339,196 Claim on cash 6,686,982 (1,860,913) 320,440 (1,285,417) 3,861,092 Unearned revenues 11,319,648 231,230 54,329 0 11,605,207 Accrued compensable absences payable 694,989 0 0 0 694,989 Bonds payable 0 0 0 0 0 Amounts held for others 0 0 0 0 0

Total liabilities 20,936,484 (526,064) 375,481 (1,285,417) 19,500,484

Unrestricted: Reserved: Encumbrances 105,733 0 0 0 105,733 Accounts receivable 4,087,743 250,005 0 0 4,337,748 Consumable inventories 0 33,340 0 0 33,340 Prepaid expenses 556,557 121,767 0 0 678,324 Unreserved: Designated - insurance deductibles 100,000 0 0 0 100,000 Designated - stabilization of maintenance and operations 20,000,000 0 0 0 20,000,000 Designated - health reserve 10,000,000 0 0 0 10,000,000 Undesignated 35,567,614 3,453,799 0 1,285,417 40,306,830 Restricted: Other 0 0 29,959 0 29,959 Texas Public Education Grant 0 0 365,896 0 365,896 Unexpended plant 0 0 0 0 0 Retirement of indebtedness 0 0 0 0 0 Net investment in plant 0 0 0 0 0 Student loans 0 0 0 0 0 Total fund balances, commitments and contingencies 70,417,647 3,858,911 395,855 1,285,417 75,957,830 Total liabilities and fund balances$ 91,354,131 $ 3,332,847 $ 771,336 $ 0 $ 95,458,314

88 Exhibit A COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Schedule of Fund Assets and Liabilities - Unaudited (Continued) As of August 31, 2009 (with comparative totals at August 31, 2008)

Totals Plant funds (memorandum only) Retirement of Investment Student Agency Unexpended indebtedness in plant loans funds 2009 2008

$ 109,954,495 $ 2,686,501 $ 0 $ 0 $ 0 $ 197,132,067 $ 135,739,239 0 0 0 0 0 0 71,604,903 4,250,000 0 0 22,264 0 8,610,012 8,110,970

0 154,339 0 0 0 659,253 686,074 745 0 0 0 0 679,268 613,932 0 0 0 0 0 771,137 455,126 0 0 0 0 0 33,340 37,297 0 0 0 0 0 2,641,581 2,717,876 0 0 211,414,591 0 0 211,414,591 168,974,751 114,205,240 2,840,840 211,414,591 22,264 0 421,941,249 388,940,168

6,109,253 111,088 0 0 490 9,560,027 7,368,381 (1,433,909) 54,007 0 (17,255) (626,458) 1,837,477 1,554,952 0 0 0 0 0 11,605,207 9,523,364 0 0 0 0 0 694,989 685,948 0 0 57,120,000 0 0 57,120,000 60,205,000 0 0 0 0 625,968 625,968 540,248

4,675,344 165,095 57,120,000 (17,255) 0 81,443,668 79,877,893

0 0 0 0 0 105,733 149,727 0 0 0 0 0 4,337,748 3,084,783 0 0 0 0 0 33,340 37,297 0 0 0 0 0 678,324 613,282

0 0 0 0 0 100,000 100,000

0 0 0 0 0 20,000,000 20,000,000 0 0 0 0 0 10,000,000 7,000,000 0 0 0 0 0 40,306,830 33,796,324

0 0 0 0 0 29,959 34,572 0 0 0 0 0 365,896 412,888 107,529,896 0 0 0 0 107,529,896 132,632,718 0 2,675,745 0 0 0 2,675,745 2,382,414 0 0 154,294,591 0 0 154,294,591 108,769,751 0 0 0 39,519 0 39,519 48,519

107,529,896 2,675,745 154,294,591 39,519 0 340,497,581 309,062,275 $ 112,205,240 $ 2,840,840 $ 211,414,591 $ 22,264 $ 0 $ 421,941,249 $ 388,940,168

89 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Schedule of Changes in Fund Balances - Unaudited For the year ended August 31, 2009 (with comparative totals for the year ended August 31, 2008)

Current funds Auxiliary Quasi - Unrestricted enterprises Restricted Endowment Total Fund balances - beginning of year $59,958,550 $3,549,648 $447,460 $1,273,215 $65,228,873

Revenues and other additions: Unrestricted current funds revenue 115,670,165 8,851,527 0 13,023 124,534,715 State appropriations - restricted 0 0 6,545,252 0 6,545,252 Tax revenues for debt service 0 0 0 0 0 Federal grants and contracts 0 0 9,050,119 0 9,050,119 State grants and contracts 0 0 943,864 0 943,864 Private gifts, grants and contracts 0 0 9,240 0 9,240 Investment income 0 0 4,255 0 4,255 Miscellaneous income 0 0 0 0 0 Net decrease in bonds payable 0 0 0 0 0 Bond proceeds on sale of bonds 0 0 0 0 0 Expended for plant facilities (includes $1,336,825 and $2,679,716 of current funds expenses) 0 0 0 0 0 Total revenues and other additions 115,670,165 8,851,527 16,552,730 13,023 141,087,445

Expenses and other deductions: Expenses 81,949,740 8,687,861 17,606,684 0 108,244,285 Indirect costs 0 0 23,997 0 23,997 Administrative and collection costs 0 0 0 0 0 Retirement of indebtedness 0 0 0 0 0 Interest on indebtedness 0 0 0 0 0 Depreciation 0 0 0 0 0 Loss on disposal of plant facilities 0 0 0 0 0 Total expenditures and other deductions 81,949,740 8,687,861 17,630,681 0 108,268,282

Transfers - additions (deductions): Mandatory transfers: Retirement of indebtedness: Building use fee (1,108,086) 0 0 0 (1,108,086) Texas Public Education Grant (868,713) 0 868,713 0 0 FSEOG match paid by TPEG (69,588) 0 69,588 0 0 Grant matching (88,045) 0 88,045 0 0 Non-mandatory transfers (21,126,896) 145,597 0 (821) (20,982,120) Total transfers - additions (deductions) (23,261,328) 145,597 1,026,346 (821) (22,090,206)

Net increase (decrease) for the fiscal year 10,459,097 309,263 (51,605) 12,202 10,728,957 Fund balances - end of year $70,417,647 $3,858,911 $395,855 $1,285,417 $75,957,830

90 Exhibit B COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Schedule of Changes in Fund Balance - Unaudited (Continued) For the year ended August 31, 2009 (with comparative totals for the year ended August 31, 2008)

Plant funds Totals Retirement of Investment Student (memorandum only) Unexpended indebtedness in plant loans 2009 2008 $132,632,718 $2,382,414 $108,769,751 $48,519 $309,062,275 $272,484,757

00 00 124,534,715 118,046,756 00 00 6,545,252 6,339,730 0 4,824,296 0 0 4,824,296 4,890,140 00 00 9,050,119 6,747,049 00 00 943,864 687,929 0 0 1,464,798 0 1,474,038 23,991 1,555,571 32,609 0 0 1,592,435 4,473,936 200,000 0 0 0 200,000 200,000 0 0 3,085,000 0 3,085,000 6,051,860 00 0 0 0 9,610,000

0 0 46,598,478 0 46,598,478 27,415,000 1,755,571 4,856,905 51,148,276 0 198,848,197 184,486,391

47,840,513 0 0 9,000 156,093,798 124,098,336 0 0 0 0 23,997 22,322 0 142,363 0 0 142,363 190,646 0 3,085,000 0 0 3,085,000 15,661,860 0 2,444,297 0 0 2,444,297 2,869,111 0 0 5,614,898 0 5,614,898 5,066,598 0 0 8,538 0 8,538 0 47,840,513 5,671,660 5,623,436 9,000 167,412,891 147,908,873

0 1,108,086 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 20,982,120 0 0 0 0 0 20,982,120 1,108,086 0 0 0 0

(25,102,822) 293,331 45,524,840 (9,000) 31,435,306 36,577,518 $107,529,896 $2,675,745 $154,294,591 $39,519 $340,497,581 $309,062,275

91 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Schedule of Changes in Fund Balance - Unrestricted Current Funds - Auxiliary Enterprises Unaudited For the year ended August 31, 2009

Student Camps & Student Intercollegiate Food Activities Scholarships Athletics Services Bookstore Revenues Sales and services $ 0 $ 62,530 $ 0 $ 62,102 $ 7,440,853 Student fees 446,608 0 0 0 0 Miscellaneous income 0 73,124 1,740 5,000 25,631 Total revenue 446,608 135,654 1,740 67,102 7,466,484

Expenditures Salaries and wages 50 7,584 100,785 0 445,249 Staff benefits 0 0 0 0 59,158 Other operating expenses 281,434 125,035 289,375 46,416 6,358,218 Capital outlay 0 0 0 0 8,400 Total expenditures 281,484 132,619 390,160 46,416 6,871,025

Excess (deficit) of revenue over (under) expenditures 165,124 3,035 (388,420) 20,686 595,459

Summary of fund balances as of September 1, 2008 127,405 154,934 0 0 3,267,309

Additions (deductions): Transfer from operating fund 0 0 0 0 0 Excess (deficit) of revenue over (under) expenditures 165,124 3,035 (388,420) 20,686 595,459

Intrafund transfers Student activities (157,321) 0 126,090 0 0 Bookstore 0 0 241,644 0 (297,034) Food service 0 0 20,686 (20,686) 0 Total intrafund transfers (157,321) 0 388,420 (20,686) (297,034)

Total additions (deductions) 7,803 3,035 0 0 298,425

Fund balances - end of year $ 135,208 $ 157,969 $ 0 $ 0 $ 3,565,734

92 Schedule B-3 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Schedule of Changes in Fund Balance - Unrestricted Current Funds - Auxiliary Enterprises Unaudited (Continued) For the year ended August 31, 2009

Facilities Child Care Fitness Fine Print Rental Center Center Arts Shop Total

$ 88,535 $ 213,051 $ 13,981 $ 0 $ 417,780 $ 8,298,832 0 0 52 0 0 446,660 0 0 0 0 540 106,035 88,535 213,051 14,033 0 418,320 8,851,527

73,243 308,270 15,008 0 89,812 1,040,001 0 0 0 0 10,308 69,466 34,391 49,558 436 66,931 318,200 7,569,994 0 0 0 0 0 8,400 107,634 357,828 15,444 66,931 418,320 8,687,861

(19,099) (144,777) (1,411) (66,931) 0 163,666

0 0 0 0 0 3,549,648

0 144,777 0 820 0 145,597

(19,099) 0 (1,411) (66,111) 0 309,263

0 0 0 31,231 0 0 19,099 0 1,411 34,880 0 0 0 0 0 0 0 0 19,099 0 1,411 66,111 0 0

0 0 0 0 0 309,263

$ 0 $ 0 $ 0 $ 0 $ 0 $ 3,858,911 (Exhibit B)

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94 Schedule D-1 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Schedule of Bonds Payable - Unaudited For the year ended August 31, 2009

Bonds Range of Bonds Bonds Discount Bonds Bonds issued to interest outstanding issued after amortization/ matured or outstanding Description date rates 9/1/2008 9/1/2008 (accretion) retired 8/31/2009

General Obligation Ltd. Tax Imp. Bonds, series 2002$ 20,000,000 3.65 - 5.15%$ 16,480,000 $ 0 $ 0 $ 820,000 $ 15,660,000 Ltd. Tax Imp. Bonds, series 2003 18,585,000 3.50 - 5.00% 16,435,000 0 0 780,000 15,655,000 Ltd. Tax Imp. Bonds, series 2006 18,415,000 4.00 - 4.50% 17,680,000 0 0 650,000 17,030,000 Subtotal 57,000,000 50,595,000 0 0 2,250,000 48,345,000

Revenue Bonds Refunding bonds, series 2008 9,610,000 2.97% 9,610,000 0 0 835,000 8,775,000 Subtotal 9,610,000 9,610,000 0 0 835,000 8,775,000

Grand total $ 66,610,000 $ 60,205,000 $ 0 $ 0 $ 3,085,000 $ 57,120,000 (Exhibit 1)

95 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Schedule of Debt Service Requirements - Unaudited For the year ended August 31, 2009

Maturities First First Last call Description year year date 2010 2011 2012 2013 2014

General Obligation Ltd. Tax Imp. Bonds, series 2002 2004 2022 8/15/2013$ 1,581,504 $ 1,592,985 $ 1,607,495 $ 1,619,095 $ 1,631,170 Ltd. Tax Imp. Bonds, series 2003 2006 2023 8/15/2014 1,529,794 1,531,994 1,537,794 1,546,994 1,549,394 Ltd. Tax Imp. Bonds, series 2006 2007 2026 2/15/2016 1,398,587 1,401,387 1,407,987 1,413,188 1,413,087 Subtotal 4,509,885 4,526,366 4,553,276 4,579,277 4,593,651

Revenue Bonds Refunding Bonds, series 2008 2009 2018 n/a 1,107,847 1,111,859 1,110,055 1,112,434 1,108,996 Subtotal 1,107,847 1,111,859 1,110,055 1,112,434 1,108,996

Grand total$ 5,617,732 $ 5,638,225 $ 5,663,331 $ 5,691,711 $ 5,702,647

96 Schedule D-2 d Schedule of Debt Service Requirements - Unaudited For the year ended August 31, 2009

Summary of debt service requirements to maturity

Year ending August 31,

2015- 2020 2025- Total Net Prem/ 2019 2024 2026 requirements Disc Total

$ 8,305,090 $ 5,072,045 $ 0 $ 21,409,384 $ 0 $ 21,409,384 7,807,200 6,233,775 0 21,736,945 0 21,736,945 7,112,563 7,246,619 2,931,781 24,325,199 0 24,325,199 23,224,853 18,552,439 2,931,781 67,471,528 0 67,471,528

4,448,860 0 0 10,000,051 0 10,000,051 4,448,860 0 0 10,000,051 0 10,000,051

$ 27,673,713 $ 18,552,439 $ 2,931,781 $ 77,471,579 $ 0 $ 77,471,579

97 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Schedule of Pledged Revenues and Fund Balances - Unaudited For Revenue Bonds Outstanding For the year ended August 31, 2009

Pledged revenues used and related expenditures (a+b-c) Interest Interest (a) (b) (c) Net earned on earned on Total Other available Pledged investments investments pledged revenue Operating for debt Description revenues (debt service) (operating) revenues sources expense service

Tuition and fee revenue for the series 2008 bond issues $ 4,019,965 $ 0 $ 0 $ 4,019,965 $ 0 $ 0 $ 4,019,965

98 Schedule D-3 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Schedule of Pledged Revenues and Fund Balances - Unaudited (Continued) For Revenue Bonds Outstanding For the year ended August 31, 2009

Restricted account balances

Interest and Debt service Debt service sinking fund Bond reserve fund principal interest paid paid Required Actual Required Actual

$ 835,000 $ 273,017 $ 0 $ 0 $ 0 $ 0

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100

Schedule E COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Schedule of Expenditures of Federal Awards For the year ended August 31, 2009

Federal Pass-through Federal Grantor/Pass-through Grantor/ CFDA Grantor's Disbursements/ Program Title Number Number Expenses

U.S. Department of Education Direct programs: Federal Supplemental Educational Opportunity Grants 84.007 N/A$ 167,395 Federal Work-Study Programs 84.033 N/A 146,180 Federal Pell Grant Programs 84.063 N/A 7,650,610 Academic Competitiveness Grants 84.375 N/A 71,275 Pass-through from: Texas Higher Education Coordinating Board Career and Technical Education - Basic Grants to States 84.048 94213 141,331 Leveraging Educational Assistance Partnership 84.069A N/A 15,811 Special Leveraging Educational Assistance Partnership 84.069B N/A 20,337 Robert C. Byrd Honors Scholarship Program 84.185A N/A 3,750 Tech-Prep Education 84.243 91706 308,936 Total U.S. Department of Education 8,525,625

U.S Department of Justice Direct Programs: Grants to Reduce Violent Crimes Against Women on Campus 16.525 14,019 Bulletproof Vest Partnership Program 16.607 367 Total U.S. Department of Justice 14,386

National Science Foundation Direct Programs: Education and Human Resources 47.076 N/A 586,944 Pass-through from: The University of Tulsa Education and Human Resources 47.076 DUE-0355246 1,833 Total National Science Foundation 588,777

U.S. Small Business Administration Pass-through from: Dallas County Community College District: Small Business Development Center 59.037 8-603001-Z0046-22 11,051 Small Business Development Center 59.037 9-603001-Z0046-23 66,234 Total U.S. Small Business Administration 77,285

Department of Health and Human Services Pass-through from: Texas Woman's University Biomedical Research and Research Training 93.859 R25GM58397-06 11,787 Total Federal Financial Assistance $ 9,217,860

Notes to schedule on following page.

105 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Notes to Schedule of Expenditures of Federal Awards For the year ended August 31, 2009

Note 1: Federal Assistance Reconciliation

Federal Grants and Contracts revenue - per Schedule A $ 1,042,778 Add: Indirect/Administrative Costs Recoveries - per Schedule A 23,997 Add: Non Operating Federal Revenue - per Schedule C 8,071,608

Total federal revenues per Basic Financial Statements (Exhibit 2) 9,138,383

Reconciling item: Add: Funds passed through to others 79,477

Total Federal Revenues per Schedule of Expenditures of Federal Awards $ 9,217,860

Note 2: Significant accounting policies used in preparing the schedule The expenditures included in the schedule are reported for the District's fiscal year using the accrual basis of accounting. Expenditure reports to funding agencies are prepared on the award period basis. The expenditures reported above represent funds that have been expended by the District for the purposes of the award. The expenditures reported above may not have been reimbursed by the funding agencies as of the end of the fiscal year. Some amounts reported in the schedule may differ from the amounts used in the preparation of the basic financial statements. Separate accounts are maintained for the different awards to aid in the observance of limitations and restrictions imposed by the funding agencies. The District has followed all applicable guidelines issued by various entities in the preparation of the schedule.

Note 3: Student Loans Processed and Administrative Costs Recovered - if not included in schedule Total loans Administrative processed and Federal grantor New loans cost admin. cost CFDA Number/Program Name processed recovered recovered

U.S. Department of Education 84.032 Federal Family Education Loan Program $ 15,802,633 $ 0 $ 15,802,633

106 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Notes to Schedule of Expenditures of Federal Awards For the year ended August 31, 2009 (Continued)

Note 4: Amounts passed-through by the District The following amounts were passed-through to the listed subrecipients by the District. These amounts were from the Grants to Reduce Violent Crimes Against Women on Campus Program CFDA 16.525 from the Department of Justice:

Hope's Door$ 10,728 The Turning Point 2,684

Total amount passed-through $ 13,412

The following amounts were passed-through to the listed subrecipients by the District. These amounts were from the Education and Human Resources Program CFDA 47.076 from the National Science Foundation:

Dallas County Community College $ 40,081 Springfield Technical Community College 11,797 University of North Texas 3,490

Total amount passed-through$ 55,368

The following amounts were passed-through to the listed subrecipients by the District. These amounts were from the Tech Prep Program CFDA 84.243 passed through by the Texas Higher Education Coordinating Board:

Allen Independent School District$ 412 Anna Independent School District 840 Blue Ridge High School 1,680 Frisco Independent School District 3,434 Plano Indedendent School District 968 Royse City Independent School District 1,080 Wolfe City Independent School District 1,778 Wylie Independent School District 505

Total amount passed-through$ 10,697

107 Schedule F COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Schedule of Expenditures of State Awards For the year ended August 31, 2009

Disbursements Grantor/Pass-through Grantor/ and Program Title Grantor's Number Expenses

Texas Workforce Commission Skills Development 0408SDF000$ 193,971 Skills Development 0409SFD000 31,852 Total Skills Development 225,823

Texas Higher Education Coordinating Board Professional Nursing Shortage Reduction Program 08/09 34,975 Professional Nursing Scholarship 08/09 3,473 College Readiness Special Advisors Program 6,361 Texas Educational Opportunities Grant-Renewal Year 08/09 32,870 Texas Educational Opportunities Grant-Initial Year 07/08 (1,730) Texas Educational Opportunities Grant-Initial Year 08/09 54,495 Toward EXcellence, Access & Success Grant-Renewal Year 08/09 49,305 Toward EXcellence, Access & Success Grant-Initial Year 07/08 (865) Toward EXcellence, Access & Success Grant-Initial Year 08/09 427,310 College Access Loans 07/08 3,325 College Access Loans 08/09 20,508 Total Texas Higher Education Coordinating Board 630,027

Pass-through from: Dallas County Community College District Small Business Development Center 07/08 8-603001-Z0046-22 2,338 Small Business Development Center 08/09 9-603001-Z0046-23 85,676 Total Small Business Development Center 88,014

Total State Financial Assistance $ 943,864

Notes to schedule on following page.

108 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Notes to Schedule of Expenditures of State Awards For the year ended August 31, 2009

Note 1: Significant accounting policies used in preparing the schedule. The accompanying schedule is presented using the accrual basis of accounting. These expenditures are reported on the Collin County Community College District's fiscal year. Expenditure reports to funding agencies are prepared on the award period basis. The expenditures reported above represent funds that have been expended by the District for the purpose of the award. The expenditures reported above may not have been reimbursed by the funding agencies as of the end of the fiscal year. Some amounts reported in the schedule may differ from the amounts used in the preparation of the basic financial statements. Separate accounts are maintained for the different awards to aid in the observance of limitations and restrictions imposed by the funding agencies. The District has followed all applicable guidelines issued by various entities in the preparation of the schedule.

109 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

Year ended August 31, 2009

SECTION I - SUMMARY OF AUDITORS’ RESULTS

Financial Statements

Type of auditor’s report issued: Unqualified

Internal control over financial reporting:

· Material weakness identified? No

· Significant deficiencies identified that are not considered to be material weaknesses? None reported

Noncompliance material to financial statements noted? No

Federal Awards

Internal control over major programs:

· Material weakness identified? No

· Significant deficiencies identified that are not considered to be material weaknesses? None reported

Type of auditor’s report issued on compliance for major programs: Unqualified

Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A-133? Yes

Identification of major programs:

CFDA/Grant Numbers/State Identifying Number Name of Federal and State Program or Cluster

Major Federal Program: Student Financial Aid Cluster 84.007, 84.032, 84.033, 84.063, 84.375, 84.376 Tech-Prep Education 83.243 Toward Excellence, Access & Major State Program: Success Grant

Dollar threshold used to distinguish between $300,000 type A and type B programs:

Auditee qualified as low-risk auditee? Yes

110 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

Year ended August 31, 2009

SECTION II - FINANCIAL STATEMENT FINDINGS

The results of our procedures disclosed no findings to be reported for the year ended August 31, 2009.

SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

Finding 2009-1

Federal Program: U.S. Department of Education - Student Financial Assistance Cluster

CFDA: 84.063 Federal Award Number: Not Applicable Award Year: 2008/2009

Type of Finding: Control Deficiency and Noncompliance

Compliance Requirement: Special Tests- Verification

Criteria or Specific Requirement: An institution is required to establish policies and procedures to verify information in student aid applications. The institution shall require applicants to verify any information used to calculate an applicant’s Expected Family Contribution (EFC) that the institution has reason to believe is inaccurate. For students determined to be eligible to receive Pell funds, the EFC, along with additional components, is used to calculate the Pell award.

Condition and Context: For three students out of twenty five selected for testing, we noted that the incorrect input of information obtained during the verification process resulted in the District incorrectly calculating the EFC, which is used in computing Pell award amounts. This resulted in one over award of $200 and two under awards in the amounts of $300 and $75.

Questioned Costs: None

Effect: The District over disbursed federal funds to one student and under disbursed federal funds to two students.

Recommendation: We recommend that the District enhance review procedures to ensure that the information received during the verification process is accurately input into the Banner system.

Views of Responsible Officials and Planned Corrective Action: Verification is a manual function and is performed by three Financial Aid Advisors. The District will institute a procedure whereby twice a year, the Advisors will review 25 of each other's verification processes. If the margin of error is greater than 25%, they will review a larger sample. At least once a year, the Financial Aid Leadership will review 25 files from each Advisor's alphabet. If the margin of error is 25% or greater, a larger sample will be reviewed.

111 COLLIN COUNTY COMMUNITY COLLEGE DISTRICT

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

Year ended August 31, 2009

SECTION IV - SUMMARY OF PRIOR YEAR AUDIT FINDINGS

Finding 2008-1

Federal Program: U.S. Department of Education - Student Financial Assistance Cluster

CFDA: 84.007 Federal Award Number: Not applicable Award Year: 2007/2008

Type of Finding: Significant Deficiency and Noncompliance

Compliance Requirement: Eligibility

Criteria or Specific Requirement: The Federal Supplemental Educational Opportunity Grant (FSEOG) program provides grants to eligible undergraduate students. The institution decides the amount to grant, which can be up to $4,000 but not less than $100, for an academic year.

Condition and Context: For four students out of twenty-five judgmentally selected for testing, we noted that the District’s grant award was $70 each, which is below the minimum threshold.

Questioned Costs: None

Effect: The District under-disbursed federal funds to four students.

Recommendation: We recommend that the District enhance review procedures to ensure that the amounts disbursed to the students are in accordance with the FSEOG requirements.

Prior Year management responses: The District will ensure that the financial aid staff is aware of the minimum FSEOG requirements. In addition, a report will be run and reviewed by the Financial Aid Director at the end of each year to ensure that the awards are accurate and are in compliance with federal regulations.

Current Year Status: Corrective Action Plan has been implemented.

Management Status: The Financial Aid/Veterans Affairs Office has used the Banner software for one full year. Due to its technical structure, the technical team was expanded to four members in anticipation of the increased technical processes. Various reports were created to examine the accuracy of both Pell and FSEOG awards and are checked at least four times during the award year. In addition, the Financial Aid Office has implemented limits within the Banner system that prevent any under or over disbursing of funds. The Banner system allows the Director to set up funds with a minimum and maximum award. SEOG is set up to have a minimum $100 award.

112