Plano Independent School District Plano, Texas
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PLANO INDEPENDENT SCHOOL DISTRICT PLANO, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2012 PREPARED BY CHRISTIE TATE ACCOUNTING & BUDGET DIRECTOR LINDA MADON EXECUTIVE DIRECTOR OF FINANCIAL SERVICES PLANO INDEPENDENT SCHOOL DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2012 TABLE OF CONTENTS CERTIFICATE OF THE BOARD INTRODUCTORY SECTION Page Board of Trustees and Administrative Officials i Organization Chart ii Transmittal Letter iii GFOA Certificate of Achievement xi FINANCIAL SECTION Exhibit Independent Auditor’s Report 1 Management’s Discussion and Analysis 3 Basic Financial Statements 17 Government Wide Statements: A-1 Statement of Net Assets 19 B-1 Statement of Activities 20 Governmental Fund Financial Statements: C-1 Balance Sheet – Governmental Funds 22 C-2 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets 25 C-3 Statement of Revenues, Expenditures and Changes in Fund Balance – Governmental Funds 26 C-4 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities 28 D-1 Statement of Net Assets – Proprietary Funds 29 D-2 Statement of Revenues, Expenses, and Changes in Fund Net Assets – Proprietary Funds 30 D-3 Statement of Cash Flows – Proprietary Funds 31 E-1 Statement of Assets and Liabilities – Agency Funds 32 Notes to the Financial Statements 33 Required Supplementary Information 65 G-1 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund 66 Notes to Required Supplementary Information 67 PLANO INDEPENDENT SCHOOL DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2012 TABLE OF CONTENTS – CONTINUED Combining and Individual Fund Statements and Schedules 71 H-1 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Debt Service Fund 73 H-2 Combining Balance Sheet – Nonmajor Governmental Funds 74 H-3 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds 76 H-4 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – National Breakfast and Lunch Program 78 H-5 Combining Statement of Net Assets – Nonmajor Enterprise Funds 79 H-6 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets – Nonmajor Enterprise Funds 80 H-7 Combining Statement of Cash Flows – Nonmajor Enterprise Funds 81 H-8 Combining Statement of Net Assets – Internal Service Funds 82 H-9 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets – Internal Service Funds 84 H-10 Combining Statement of Cash Flows – Internal Service Funds 86 H-11 Combining Statement of Changes in Assets and Liabilities – Agency Funds 88 Required Texas Education Agency Report Section 89 J-1 Schedule of Delinquent Taxes Receivable 90 J-2 Schedule of Expenditures for Computation of Indirect Cost 92 STATISTICAL SECTION 93 (Unaudited) Exhibit S-1 Net Assets by Component 95 S-2 Change in Net Assets 96 S-3 Fund Balances Governmental Funds 98 S-4 Governmental Funds Revenues 99 S-5 Governmental Funds Expenditures and Debt Service Ratio 100 S-6 Governmental Funds Other Financing Sources and Uses and Net Change in Fund Balances 101 S-7 Assessed Value and Actual Value of Taxable Property 102 S-8 Direct and Overlapping Property Tax Rates 103 S-9 Principal Property Taxpayers 104 S-10 Property Tax Levies and Collections 105 S-11 Outstanding Debt by Type 106 S-12 Direct and Overlapping Governmental Activities Debt 107 PLANO INDEPENDENT SCHOOL DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2012 TABLE OF CONTENTS – CONTINUED S-13 Legal Debt Margin Information 108 S-14 Demographic and Economic Statistics 109 S-15 Principal Employers 110 S-16 Full-time-Equivalent District Employees by Type 111 S-17 Operating Statistics 112 S-18 Teacher Base Salaries 113 S-19 School Building Information 114 REPORTS ON INTERNAL CONTROL, COMPLIANCE AND FEDERAL AWARDS 117 Exhibit Auditor Documents: Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 119 Independent Auditor’s Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 121 Auditee Documents: K-1 Supplemental Schedule of Expenditures of Federal Awards 123 Notes to Supplemental Schedule of Expenditures of Federal Awards 125 Auditor Documents: Schedule of Findings and Questioned Costs 127 Auditee Documents: Summary of Prior Year Audit Findings 129 INTRODUCTORY SECTION BOARD OF TRUSTEES Name Length of Term Expires Occupations Service Tammy Richards 2 Years May 2013 CEO – Big Brothers Big Sisters President Lone Star Nancy Humphrey 2 Years May 2013 Public and Contract Accountant Vice President Marilyn Hinton 3 Years May 2013 Community Volunteer Secretary Missy Bender 6 Years May 2015 Community Volunteer Trustee Carolyn Moebius 2 Years May 2013 Veterinary Hospital Trustee Administrator Michael Friedman 1 Year May 2015 Senior Vice President Trustee Retail Brokerage Services David Stolle 1 Year May 2015 Attorney Trustee ADMINISTRATIVE OFFICIALS Name Position Length of District Service Richard Matkin Superintendent 11 Years* *total school district experience 37 years Dr. Cathy Galloway Associate Superintendent for District Services 26 Years Jim Hirsch Associate Superintendent for Academic and 16 Years* Technology Services *total school district experience 37 years Steve Fortenberry Associate Superintendent of Business and Joined District Facilities Services July 2012* *total school district experience 29 years Patty Meyer Associate Superintendent for Campus Services 26 Years* *total school district experience 39 years Karla Oliver Assistant Superintendent for Government, 8 Years* Community and planning Initiatives *total school district experience 22 years i Board of Trustees Internal Auditor (Jenna Isensee) Superintendent of Schools (Richard Matkin) Executive Assistant (Denise Gillespie) Associate Superintendent Associate Superintendent Associate Superintendent Associate Superintendent Assistant Superintendent Business & Facilities District Services Campus Services Academic & Technology Governmental, Services (Dr. Cathy Galloway) (Patty Meyer) Services Community & Planning (Steve Fortenberry) (Jim Hirsch) Initiatives (Karla Oliver) Executive Director Executive Director Executive Director Executive Director Financial Services Human Resources Elementary Instructional Director of (Linda Madon) (Tamira Griffin) Administration Technology Communications (Susan Dantzler) (Mary Hewett) (Lesley Range-Stanton) Director Executive Director Purchasing Executive Director Director of Auxiliary Services Elementary (Ray Weaver) Technology Development – PISD (Richard Butler) Principals Operations Education Foundation (Dan Armstrong) (Carlos Sastoque) Director Executive Director Executive Director Facility Services Security Secondary (Juan Ramos) (Joe Parks) Executive Director Policy & Elections Administration Secondary Academic Specialist (Susan Modisette) Services (Gloriane Fernandez) Director Director (Dr. Jim Wussow) Facility Planning Athletics Secondary & Construction (Gerald Brence) Principals Executive Director (Bruce Larson) Elementary Academic Services Legal Specialist Executive Director (Jayne Cantwell) (Margie Grounds) Student & Family Services (Mark Allen) Executive Director Assessment & Records Accountability Management Officer (Dash Weerasinghe) (Debbie Cox) ii November 6, 2012 Board of School Trustees Plano Independent School District 2700 W. 15th Street Plano, Texas 75075 Members of the Board: The Comprehensive Annual Financial Report (CAFR) of the Plano Independent School District (District) for the year ended June 30, 2012, is submitted herewith. This report was prepared by the District’s Financial Services Department. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the District. We believe the data, as presented, is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and the results of operations of the District as measured by the financial activity of its various funds; and that all disclosures necessary to enable the reader to gain an understanding of the District’s financial activities have been included. This report includes all funds of the District. The District discusses in greater detail its financial position in the narrative, introduction, overview and analysis sections of the Management’s Discussion and Analysis (MD&A). The CAFR for the year ended June 30, 2012 is presented in conformance with the reporting model adopted by the Governmental Accounting Standards Board (“GASB”) in their Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments, issued in June 1999. GOVERNANCE The governance of the District is overseen by a seven-member board of trustees (Board) that are elected by the citizens. Each member is elected to a four-year term with the elections being staggered on odd years so that not all positions are voted on during the same year. See page i for a listing of the present members of the Board along with the administrative officials who