Comprehensive Annual Financial Report Fiscal Year Ended August 31, 2016
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Del Mar College Del Mar College West Campus Emergency Training Building Comprehensive Annual Financial Report Fiscal Year Ended August 31, 2016 Del Mar College • 101 Baldwin Blvd. • Corpus Christi, TX 78404-3897 This page intentionally left blank. Comprehensive Annual Financial Report Fiscal Year Ended August 31, 2016 Prepared by Catherine West, CPA, Ed.D. Interim Chief Financial Officer John Johnson Comptroller Lenora Keas Vice President, Workforce Development and Strategic Initiatives Del Mar College 101 Baldwin Blvd., Corpus Christi, Texas 78404-3897 www.delmar.edu Front cover photo: Del Mar College West Campus Emergency Training Building Del Mar College COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED AUGUST 31, 2016 Table of Contents Page No. INTRODUCTORY SECTION Transmittal Letter .......................................................................................................................... 1 Board of Regents and Administration .......................................................................................... 16 Certificate of Excellence in Financial Reporting ......................................................................... 17 Organizational Chart .................................................................................................................... 18 FINANCIAL SECTION Independent Auditor’s Report ....................................................................................................... 21 Management’s Discussion and Analysis ....................................................................................... 25 Basic Financial Statements: Exhibit 1 Statements of Net Position ............................................................................................................ 43 Statements of Financial Position, Component Unit ...................................................................... 44 Exhibit 2 Statements of Revenues, Expenses and Changes in Net Position ................................................ 45 Statements of Revenues, Expenses and Changes in Net Assets, Component Unit ..................... 46 Exhibit 3 Statements of Cash Flows ............................................................................................................ 47 Notes to Financial Statements ....................................................................................................... 49 Required Supplementary Information ........................................................................................... 89 Schedules Required by the Texas Higher Education Coordinating Board: Schedule A Schedule of Operating Revenues ................................................................................................. 91 Schedule B Schedule of Operating Expenses by Object .................................................................................. 92 Schedule C Schedule of Non-Operating Revenues and Expenses .................................................................. 93 i Del Mar College COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED AUGUST 31, 2016 TABLE OF CONTENTS (Continued) Page No. Schedule D Schedule of Net Assets by Source and Availability...................................................................... 94 STATISTICAL SECTION (UNAUDITED) Statistical Information ................................................................................................................... 97 Statistical Supplement 1 Net Position by Component (Unaudited) ...................................................................................... 99 Statistical Supplement 2 Revenues by Source (Unaudited) .................................................................................................. 100 Statistical Supplement 3 Program Expenses by Function (Unaudited) ............................................................................... 102 Statistical Supplement 4 Tuition and Fees (Unaudited) ....................................................................................................... 104 Statistical Supplement 5 Assessed Value and Taxable Assessed Value of Property (Unaudited) ...................................... 105 Statistical Supplement 6 State Appropriation Per FTSE and Contact Hour (Unaudited) ..................................................... 106 Statistical Supplement 7 Principal Taxpayers (Unaudited) ................................................................................................. 107 Statistical Supplement 8 Property Tax Levies and Collections (Unaudited) ....................................................................... 109 Statistical Supplement 9 Ratios of Outstanding Debt (Unaudited) ...................................................................................... 110 Statistical Supplement 10 Legal Debt Margin Information (Unaudited) ................................................................................ 111 ii Del Mar College COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED AUGUST 31, 2016 TABLE OF CONTENTS (Continued) Page No. Statistical Supplement 11 Pledged Revenue Coverage (Unaudited) ..................................................................................... 112 Statistical Supplement 12 Demographic and Economic Statistics – Taxing District (Unaudited) ........................................ 113 Statistical Supplement 13 Principal Employers (Unaudited) .................................................................................................. 114 Statistical Supplement 14 Faculty, Staff, and Administrators Statistics (Unaudited) ........................................................... 115 Statistical Supplement 15 Enrollment Details (Unaudited) ................................................................................................... 116 Statistical Supplement 16 Student Profile (Unaudited) ......................................................................................................... 117 Statistical Supplement 17 Transfers to Senior Institutions (Unaudited) ................................................................................. 118 Statistical Supplement 18 Capital Asset Information (Unaudited) ........................................................................................ 119 Statistical Supplement 19 Changes in Net Assets (Unaudited) ............................................................................................. 120 Statistical Supplement 20 Ad Valorem Tax Rates Authorized (Unaudited) ......................................................................... 122 Statistical Supplement 21 Property Tax Rates – All Direct and Overlapping Governments (Unaudited) ............................ 123 Statistical Supplement 22 Computation of Direct and Overlapping Debt (Unaudited) .......................................................... 125 iii Del Mar College COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED AUGUST 31, 2016 TABLE OF CONTENTS (Continued) Page No. FEDERAL AND STATE AWARDS SECTION Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................. 129 Independent Auditor’s Report on Compliance (with Requirements Applicable) for Each Federal Major Program and on Internal Control Over Compliance Required by the Uniform Guidance .............................................................................................. 131 Schedule of Federal Findings and Questioned Costs .................................................................... 133 Schedule E Schedule of Expenditures of Federal Awards ............................................................................... 135 Independent Auditor’s Report on Compliance (with Requirements Applicable) for Each State Major Program and on Internal Control Over Compliance in Accordance with State Single Audit Circular ........................................................................... 139 Schedule of State Findings and Questioned Costs ........................................................................ 141 Schedule F Schedule of Expenditures of State Awards ................................................................................... 143 iv )NTRODUCTORY 3ECTION This page intentionally left blank. 1 The College maintains its accounts and prepares its financial statements in accordance with generally accepted accounting principles in the United States of America (GAAP) as set forth by Governmental and Financial Accounting Standards Boards (GASB and FASB), National Association of College and University Business Officers (NACUBO) and the Texas Higher Education Coordinating Board (THECB). The financial records of the College are maintained on the accrual basis of accounting, whereby all revenues are recorded when earned and all expenses are recorded when incurred. The College’s financial statements are prepared using the economic resources measurement focus. The notes to the financial statements expand on and explain the financial statements and the accounting principles applied. Profile of the College Del Mar College District is a political subdivision of the State of Texas located in Nueces County. The College was founded in 1935, under the control the Board of the Trustees of Corpus Christi Independent School District and started in borrowed classrooms with 154 students in the