~~ Arlington ~_;-.,_<IINDEPENDENT SCHOOL DISHICT <l_ ·V More Thana RemarkableEducation Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2020 ARLINGTON INDEPENDENT SCHOOL DISTRICT 1203 W. Pioneer Pkwy, Arlington, TX 76013 Prepared By The Finance Department: Darla Moss Chief Financial Officer '5/~ Arlington h _;.,.,_\I INDEPENDENT SCHOOL DISTRICT <L. More Than a Remarkable Education ARLINGTON INDEPENDENT SCHOOL DISTRICT TABLE OF CONTENTS Exhibit/ Page Table Introductory Section Board of Trustees and Administration i Certificate of the Board xi Transmittal Letter xiii GFOA Certificate of Achievement xxi ASBO Certificate of Excellence xxii Organizational Chart xxiii Financial Section Report of Independent Auditors 1 Management’s Discussion and Analysis 5 Basic Financial Statements: Government-Wide Financial Statements Statement of Net Position 24 A-1 Statement of Activities 25 B-1 Governmental Fund Financial Statements Balance Sheet 26 C-1 Reconciliation of Balance Sheet for Governmental Funds to the Statement of Net Position 29 C-2 Statement of Revenues, Expenditures, and Changes in Fund Balance 30 C-3 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance of Governmental Funds to the Statement of Activities 32 C-4 Statement of Revenues, Expenditures, and Changes in Fund Balances - Original Budget, Amended Final (GAAP Basis) and Actual - General Fund 33 C-5 Proprietary Fund Financial Statements Statement of Net Position 34 D-1 Statement of Revenues, Expenses and Changes in Net Position 35 D-2 Statement of Cash Flows 36 D-3 Fiduciary Fund Financial Statements Statement of Fiduciary Assets and Liabilities 37 E-1 Notes to the Financial Statements 39 F-1 Required Supplementary Information Schedule of the District’s Proportionate Share of the Net Pension Liability 78 G-1 Schedule of the District’s Pension Contributions 79 G-2 Notes to Required Supplementary Information - Pensions and OPEB 80 G-3 Schedule of the District’s Proportionate Share of the Net OPEB Liability 81 G-4 Schedule of the District’s OPEB Contributions 82 G-5 Arlington ISD 2020 CAFR ARLINGTON INDEPENDENT SCHOOL DISTRICT TABLE OF CONTENTS (continued) Exhibit/ Page Table Financial Section (continued) Other Supplementary Information: Combining Fund Statements: Combining Balance Sheet - Nonmajor Governmental Funds 88 H-1 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance - Nonmajor Governmental Funds 96 H-2 Combining Statement of Net Position - Internal Service Funds 104 H-3 Combining Statement of Revenues, Expenses, and Changes in Net Position - Internal Service Funds 105 H-4 Combining Statement of Cash Flows - Internal Service Funds 106 H-5 Statement of Changes in Assets and Liabilities - Agency Funds 109 H-6 Required TEA Schedules Schedule of Delinquent Taxes Receivable 112 J-1 Schedule of Revenues, Expenditures, and Changes in Net Position - Original Budget, Amended Final and Actual - Child Nutrition 114 J-2 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Original Budget, Amended Final and Actual - Debt Service Fund 115 J-3 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Original Budget, Amended Final and Actual - Capital Projects Fund 116 J-4 Statistical Section (Unaudited) Net Position by Component 118 1 Expenses, Program Revenues, and Net Expenses 120 2 General Revenues and Total Change in Net Position 122 3 Fund Balances, Governmental Funds 124 4 Governmental Funds Expenditures and Debt Service Ratio 126 5 Governmental Funds Revenues 128 6 Other Financing Sources and Uses and Net Change in Fund Balances 130 7 Appraised Value and Actual Value of Taxable Property 132 8 Direct and Overlapping Property Tax Rates 133 9 Direct and Overlapping Property Tax Levies 134 10 Principal Property Taxpayers 135 11 Property Tax Levies and Collections 136 12 Outstanding Debt by Type 137 13 Ratio of Net Bonded Debt to Assessed Value and Net Bonded Debt Per Capita 138 14 Statement of Direct and Overlapping Debt 139 15 Legal Debt Margin Information 140 16 Demographic and Economic Statistics 141 17 Principal Employers 142 18 Full-Time Equivalent District Campus Employees 144 19 Operating Statistics 147 20 Capital Asset Information 148 21 Arlington ISD 2020 CAFR ARLINGTON INDEPENDENT SCHOOL DISTRICT TABLE OF CONTENTS (continued) Exhibit/ Page Table Federal Awards Section Independent Auditors’ 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 153 Independent Auditors’ Report on Compliance for Each Major Program and on Internal Control over Compliance Required by Uniform Guidance 155 Schedule of Findings and Questioned Costs 157 Schedule of Expenditures of Federal Awards 159 K-1 Notes to Schedule of Expenditures of Federal Awards 161 K-2 Summary Schedule of Prior Audit Findings 162 Corrective Action Plan 163 Arlington ISD 2020 CAFR '5/\A Arlington h_;.,.,_ V INDEPENDENT SCHOOL DISTRICT <l_ More Than a Remarkable Education Arlington ISD 2020 CAFR INTRODUCTORY SECTION Arlington ISD 2020 CAFR '5/\A Arlington h_;.,.,_ V INDEPENDENT SCHOOL DISTRICT <l_ More Than a Remarkable Education Arlington ISD 2020 CAFR ARLINGTON INDEPENDENT SCHOOL DISTRICT Board of Trustees and Administration BOARD OF TRUSTEES Mrs. Kecia Mays President Mr. Bowie Hogg Vice President Ms. Polly Walton Secretary Mrs. Melody Fowler Dr. Aaron Reich Mr. David Wilbanks Mr. Justin Chapa SUPERINTENDENT Marcelo Cavazos, Ph.D. CHIEF ACADEMIC OFFICER Steven Wurtz, Ph.D. CHIEF FINANCIAL OFFICER Darla Moss ASSISTANT SUPERINTENDENT OF ADMINISTRATION Michael Hill, Ed.D. ASSISTANT SUPERINTENDENT OF TECHNOLOGY Eric Upchurch ASSISTANT SUPERINTENDENT OF HUMAN RESOURCES Scott Kahl ASSISTANT SUPERINTENDENT OF RESEARCH AND ACCOUNTABILITY Kevin Barlow, Ph.D. ASSISTANT SUPERINTENDENT OF SCHOOL LEADERSHIP A. Tracie Brown, Ed.D. AREA SUPERINTENDENT- AREA 1 Christi Buell, Ed.D. AREA SUPERINTENDENT- AREA 2 Theodore Jarchow, Ed.D. AREA SUPERINTENDENT- AREA 3 Laina McDonald, Ed.D. AREA SUPERINTENDENT- STRATEGIC SUPPORT NETWORK Kristina Turner, Ed.D. EXECUTIVE DIRECTOR OF FINANCE Tony Drollinger i Arlington ISD 2020 CAFR ARLINGTON INDEPENDENT SCHOOL DISTRICT Board of Trustees and Administration (continued) DIRECTOR OF ACCOUNTING Alice Hamrick, CPA DIRECTOR OF BUDGET/CASH MANAGEMENT Mandy Mew DIRECTOR OF FINANCE Sheena Joslyn CHIEF INTERNAL AUDITOR Timothy Edwards, CIA, CFE ii Arlington ISD 2020 CAFR ARLINGTON INDEPENDENT SCHOOL DISTRICT Board of Trustees and Administration (continued) BOARD OF TRUSTEES Kecia Mays – President Kecia Mays was elected to the Board in 2014. She has been married for 24 years and has three sons that are products of AISD. Mrs. Mays is a graduate of Texas A&M University with a BBA in Accounting and is a Supervisor who has been employed with the Texas Comptroller of Public Accounts - Audit Division for over 30 years. Mrs. Mays has served in a leadership capacity for several local PTAs and as a Field Service Representative for Texas PTA. She has received the PTA Life Membership and PTA Extended Life Membership Awards. Mrs. Mays has served on the Board for the Dream Weaver Foundation, Black Former Students Association of Texas A&M University, Arlington Education Foundation and Arlington – United Way Advisory Board. Kecia Mays enjoys spending time with her sons, going to the movies and celebrating life with a large extended family. Bowie Hogg – Vice President Bowie Hogg was elected to the board in May of 2008 and is a product of the Arlington schools from kindergarten through high school graduation. Mr. Hogg graduated from The Mays Business School at Texas A&M University with a Bachelors of Business Administration degree. Mr. Hogg also represented Arlington and the Dallas-Fort Worth Metroplex by being chosen out of 216,000 applicants to appear on the original edition of the Emmy nominated television show, The Apprentice. Mr. Hogg is the Public Sector Leader with Alight Solutions LLC, and serving on the board of multiple non-profits in Arlington. Mr. Hogg also served his community as a Board member for the United Way of Tarrant County, Leadership Arlington, Theatre Arlington, Downton Arlington Management Corporation, Chamber of Commerce, and the Advisory Board for the Arlington Life Shelter and Junior League Arlington. Mr. Hogg’s passions are education, healthcare and community service with his two daughters and wife, who is a former 5th grade teacher. Polly Walton – Secretary Polly Walton, elected to the Board in May 2015, is a retired AISD elementary teacher and librarian. She has lived in Arlington for 46 years and been involved with the AISD all 46 years as an educator, parent, and grandparent. She is currently active with Retired Teachers, Director of the Friends and Foundation of Arlington Public Library Board, and a Director of her homeowners’ association. During her years of teaching, she was an active member of three teacher organizations, CTA, TSTA, and UEA, serving as president of all three. Ms. Walton’s degrees, a Bachelors and a Masters of Education are from Southern Methodist University, and Library Science is from Texas Woman’s University. She has served in leadership roles on civic organizations including the City Arts Grants Review Board, the Board of Creative Arts Theatre and School (CATS), and PTA, including eight years on the Arlington Council of PTAs. Ms. Walton’s two children graduated from AISD. She has three grandchildren, two who are now students in the AISD. iii Arlington ISD 2020 CAFR ARLINGTON INDEPENDENT SCHOOL DISTRICT Board of Trustees and Administration (continued) BOARD OF TRUSTEES (continued) Justin Chapa Mr. Chapa has served on the Board since September 2017. He and his wife, Anna, are Arlington natives, graduates of Sam Houston High School, and parents of AISD students. Mr. Chapa earned a Bachelor’s in Government, with honors, from Harvard University, a Master’s in Education from the Stanford Graduate School of Education, and a Juris Doctorate from Stanford Law School. He works as an attorney at the law firm of Morgan, Lewis & Bockius LLP and has been named a "Rising Star" in Appellate Law and Civil Litigation Defense.