Fiscal Year Ended August 31, 2017
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Del Mar College Del Mar College East Campus General Academic Building Rendering Comprehensive Annual Financial Report Fiscal Year Ended August 31, 2017 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, 2017 Prepared by Lenora Keas Vice President and Chief Financial Officer John Johnson Comptroller Catherine West, CPA, Ed.D. Director of Accounting and Budget Officer Del Mar College 101 Baldwin Blvd., Corpus Christi, Texas 78404-3897 www.delmar.edu Front cover photo: Del Mar College East Campus General Academic Building Rendering Del Mar College COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED AUGUST 31, 2017 Table of Contents Page No. INTRODUCTORY SECTION Transmittal Letter .......................................................................................................................... 1 Board of Regents and Administration .......................................................................................... 18 Certificate of Excellence in Financial Reporting ......................................................................... 19 Organizational Chart .................................................................................................................... 20 FINANCIAL SECTION Independent Auditor’s Report ....................................................................................................... 23 Management’s Discussion and Analysis ....................................................................................... 27 Basic Financial Statements: Exhibit 1 Statements of Net Position ............................................................................................................ 47 Statements of Financial Position, Component Unit ...................................................................... 48 Exhibit 2 Statements of Revenues, Expenses and Changes in Net Position ................................................ 49 Statements of Revenues, Expenses and Changes in Net Assets, Component Unit ..................... 50 Exhibit 3 Statements of Cash Flows ............................................................................................................ 51 Notes to Financial Statements ....................................................................................................... 53 Required Supplementary Information ........................................................................................... 93 Schedules Required by the Texas Higher Education Coordinating Board: Schedule A Schedule of Operating Revenues ................................................................................................. 95 Schedule B Schedule of Operating Expenses by Object .................................................................................. 96 Schedule C Schedule of Non-Operating Revenues and Expenses .................................................................. 97 i Del Mar College COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED AUGUST 31, 2017 TABLE OF CONTENTS (Continued) Page No. Schedule D Schedule of Net Assets by Source and Availability...................................................................... 98 STATISTICAL SECTION (UNAUDITED) Statistical Information ................................................................................................................... 101 Statistical Supplement 1 Net Position by Component (Unaudited) ...................................................................................... 103 Statistical Supplement 2 Revenues by Source (Unaudited) .................................................................................................. 104 Statistical Supplement 3 Program Expenses by Function (Unaudited) ............................................................................... 106 Statistical Supplement 4 Tuition and Fees (Unaudited) ....................................................................................................... 108 Statistical Supplement 5 Assessed Value and Taxable Assessed Value of Property (Unaudited) ...................................... 109 Statistical Supplement 6 State Appropriation Per FTSE and Contact Hour (Unaudited) ..................................................... 110 Statistical Supplement 7 Principal Taxpayers (Unaudited) ................................................................................................. 111 Statistical Supplement 8 Property Tax Levies and Collections (Unaudited) ....................................................................... 113 Statistical Supplement 9 Ratios of Outstanding Debt (Unaudited) ...................................................................................... 114 Statistical Supplement 10 Legal Debt Margin Information (Unaudited) ................................................................................ 115 ii Del Mar College COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED AUGUST 31, 2017 TABLE OF CONTENTS (Continued) Page No. Statistical Supplement 11 Pledged Revenue Coverage (Unaudited) ..................................................................................... 116 Statistical Supplement 12 Demographic and Economic Statistics – Taxing District (Unaudited) ........................................ 117 Statistical Supplement 13 Principal Employers (Unaudited) .................................................................................................. 118 Statistical Supplement 14 Faculty, Staff, and Administrators Statistics (Unaudited) ........................................................... 119 Statistical Supplement 15 Enrollment Details (Unaudited) ................................................................................................... 120 Statistical Supplement 16 Student Profile (Unaudited) ......................................................................................................... 121 Statistical Supplement 17 Transfers to Senior Institutions (Unaudited) ................................................................................. 122 Statistical Supplement 18 Capital Asset Information (Unaudited) ........................................................................................ 123 Statistical Supplement 19 Changes in Net Assets (Unaudited) ............................................................................................. 124 Statistical Supplement 20 Ad Valorem Tax Rates Authorized (Unaudited) ......................................................................... 126 Statistical Supplement 21 Property Tax Rates – All Direct and Overlapping Governments (Unaudited) ............................ 127 Statistical Supplement 22 Computation of Direct and Overlapping Debt (Unaudited) .......................................................... 129 iii Del Mar College COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED AUGUST 31, 2017 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 ................................................. 133 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 .............................................................................................. 135 Schedule of Federal Findings and Questioned Costs .................................................................... 138 Schedule E Schedule of Expenditures of Federal Awards ............................................................................... 141 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 ........................................................................... 144 Schedule of State Findings and Questioned Costs ........................................................................ 146 Schedule F Schedule of Expenditures of State Awards ................................................................................... 148 iv Introductory Section 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 first