Comprehensive Annual Financial Report Fiscal Year Ended August 31, 2015
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Del Mar College Del Mar College historical photos selected from the 1940s - 1960s. Comprehensive Annual Financial Report Fiscal Year Ended August 31, 2015 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, 2015 Prepared by John Johnson Comptroller Catherine West, CPA, Ed.D. Budget Officer and Director of Accounting Lenora Keas Vice President, Workforce Development and Strategic Initiatives Interim Provost and Vice President, Instruction and Student Services Del Mar College 101 Baldwin Blvd., Corpus Christi, Texas 78404-3897 www.delmar.edu Front cover photo: In recognition of 80 Years of Del Mar College history, a variety of photos from editions of the Cruiser yearbook. Clockwise from top left: East Campus entrance in 1941, Nursing student ca. 1940s, Students on campus in 1939, Student with teacher in 1966, West Campus entrance (then called Del Mar Technical Insti- tute) in 1960, construction of Memorial Classroom Building in 1942. Del Mar College COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED AUGUST 31, 2015 Table of Contents Page No. INTRODUCTORY SECTION Transmittal Letter .......................................................................................................................... 1 Board of Regents and Administration .......................................................................................... 17 Certificate of Excellence in Financial Reporting ......................................................................... 18 Organizational Chart .................................................................................................................... 19 FINANCIAL SECTION Independent Auditor’s Report ....................................................................................................... 23 Management’s Discussion and Analysis ....................................................................................... 27 Basic Financial Statements: Exhibit 1 Statements of Net Position ............................................................................................................ 45 Statements of Financial Position, Component Unit ...................................................................... 46 Exhibit 2 Statements of Revenues, Expenses and Changes in Net Position ................................................ 47 Statements of Revenues, Expenses and Changes in Net Assets, Component Unit ...................... 48 Exhibit 3 Statements of Cash Flows ............................................................................................................ 49 Notes to Financial Statements ....................................................................................................... 51 Required Supplementary Information ........................................................................................... 87 Schedules Required by the Texas Higher Education Coordinating Board: Schedule A Schedule of Operating Revenues ................................................................................................. 89 Schedule B Schedule of Operating Expenses by Object .................................................................................. 90 Schedule C Schedule of Non-Operating Revenues and Expenses .................................................................. 91 i Del Mar College COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED AUGUST 31, 2015 TABLE OF CONTENTS (Continued) Page No. Schedule D Schedule of Net Assets by Source and Availability...................................................................... 92 STATISTICAL SECTION (UNAUDITED) Statistical Information ................................................................................................................... 95 Statistical Supplement 1 Net Position by Component (Unaudited) ...................................................................................... 97 Statistical Supplement 2 Revenues by Source (Unaudited) .................................................................................................. 98 Statistical Supplement 3 Program Expenses by Function (Unaudited) ............................................................................... 100 Statistical Supplement 4 Tuition and Fees (Unaudited) ....................................................................................................... 102 Statistical Supplement 5 Assessed Value and Taxable Assessed Value of Property (Unaudited) ...................................... 103 Statistical Supplement 6 State Appropriation Per FTSE and Contact Hour (Unaudited) ..................................................... 104 Statistical Supplement 7 Principal Taxpayers (Unaudited) ................................................................................................. 105 Statistical Supplement 8 Property Tax Levies and Collections (Unaudited) ....................................................................... 107 Statistical Supplement 9 Ratios of Outstanding Debt (Unaudited) ...................................................................................... 108 Statistical Supplement 10 Legal Debt Margin Information (Unaudited) ................................................................................ 109 ii Del Mar College COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED AUGUST 31, 2015 TABLE OF CONTENTS (Continued) Page No. Statistical Supplement 11 Pledged Revenue Coverage (Unaudited) ..................................................................................... 110 Statistical Supplement 12 Demographic and Economic Statistics – Taxing District (Unaudited) ........................................ 111 Statistical Supplement 13 Principal Employers (Unaudited) .................................................................................................. 112 Statistical Supplement 14 Faculty, Staff, and Administrators Statistics (Unaudited) ........................................................... 113 Statistical Supplement 15 Enrollment Details (Unaudited) ................................................................................................... 114 Statistical Supplement 16 Student Profile (Unaudited) ......................................................................................................... 115 Statistical Supplement 17 Transfers to Senior Institutions (Unaudited) ................................................................................. 116 Statistical Supplement 18 Capital Asset Information (Unaudited) ........................................................................................ 117 Statistical Supplement 19 Changes in Net Assets (Unaudited) ............................................................................................. 118 Statistical Supplement 20 Ad Valorem Tax Rates Authorized (Unaudited) ......................................................................... 120 Statistical Supplement 21 Property Tax Rates – All Direct and Overlapping Governments (Unaudited) ............................ 121 Statistical Supplement 22 Computation of Direct and Overlapping Debt (Unaudited) .......................................................... 133 iii Del Mar College COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED AUGUST 31, 2015 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 ................................................. 127 Independent Auditor’s Report on Compliance (with Requirements Applicable) for Each Federal Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 .................................................................................... 129 Schedule of Federal Findings and Questioned Costs .................................................................... 131 Schedule E Schedule of Expenditures of Federal Awards ............................................................................... 133 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 ........................................................................... 137 Schedule of State Findings and Questioned Costs ........................................................................ 139 Schedule F Schedule of Expenditures of State Awards ................................................................................... 141 iv Introductory Section This page intentionally left blank. by GASB Statements No. 34 and No. 35 provides a comprehensive, entity-wide perspective of the College’s assets, liabilities, net assets, revenues, expenses, changes in net assets and cash flows and replaces the fund-group perspective previously required. 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