PLANO INDEPENDENT SCHOOL DISTRICT
PLANO, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED
JUNE 30, 2008
PREPARED BY
CHRISTIE TATE
ACCOUNTING & BUDGET DIRECTOR
LINDA MADON
EXECUTIVE DIRECTOR OF FINANCIAL SERVICES
PLANO INDEPENDENT SCHOOL DISTRICT
COMPREHENSVIE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2008
TABLE OF CONTENTS
CERTIFICATE OF THE BOARD
INTRODUCTORY SECTION
Board of Trustees and Administrative Officials
Organization Chart
Transmittal Letter
GFOA Certificate of Achievement
Page
i
ii
iii
x
FINANCIAL SECTION
Exhibit
A-1
B-1
C-1
C-2
C-3
C-4
D-1
D-2
D-3
E-1
G-1
Independent Auditor’s Report
Management’s Discussion and Analysis
Basic Financial Statements
1
3
15
Government Wide Statements:
Statement of Net Assets
Statement of Activities
17
18
Governmental Fund Financial Statements:
Balance Sheet – Governmental Funds
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net
Assets
Statement of Revenues, Expenditures and Changes in Fund Balance – Governmental
Funds
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and
Changes in Fund Balances to the Statement of Activities
Statement of Net Assets – Proprietary Funds
Statement of Revenues, Expenses, and Changes in Fund Net Assets – Proprietary
Funds
Statement of Cash Flows – Proprietary Funds
Statement of Fiduciary Net Assets – Fiduciary Funds
20
23
24
26
27
28
29
30
Notes to the Financial Statements
31
Required Supplementary Information:
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and
Actual – General Fund
51
52
Notes to Required Supplementary Information
53
PLANO INDEPENDENT SCHOOL DISTRICT
COMPREHENSVIE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2008
TABLE OF CONTENTS CONTINUED
H-1
H-2
H-3
H-4
H-5
H-6
Combining and Individual Fund Statements and Schedules
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and
Actual – Debt Service
Combining Balance Sheet – Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances –
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and changes in Fund Balance – Budget and
Actual – Child Nutrition Program
55
57
58
60
63
Combining Statement of Net Assets – Enterprise Funds
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets –
Enterprise Funds
Combining Statement of Cash Flows – Enterprise Funds
64
65
68
70
H-10
Combining Statement of Net Assets – Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets –
Internal Service Funds
Combining Statement of Cash Flows – Internal Service Funds
H-11
Statement of Changes in Assets and Liabilities – Agency Funds
74
REQUIRED TEXAS EDUCATION AGENCY
REPORT SECTION
Schedule of Delinquent Taxes Receivable
Schedule of Expenditures for Computation of Indirect Costs
Fund Balance and Cash Flow Calculation Worksheet
75
H-7
H-8
H-9
J-1
J-2
J-3
STATISTICAL SECTION
(Unaudited)
Exhibit
S-1
S-2
S-3
S-4
S-5
S-6
S-7
S-8
S-9
S-10
S-11
S-12
Net Assets by Component
Change in Net Assets
Fund Balances Governmental Funds
Governmental Funds Revenues
Governmental Funds Expenditures and Debt Service Ratio
Governmental Funds Other Financing Sources and Uses and Net Change in Fund
Balances
Assessed Value and Actual Value of Taxable Property
Direct and Overlapping Property Tax Rates
Principal Property Tax Payers
Property Tax Levies and Collections
Outstanding Debt by Type
Direct and Overlapping Governmental Activities Debt
67
72
76
78
79
81
83
84
86
87
88
89
90
91
92
93
94
95
PLANO INDEPENDENT SCHOOL DISTRICT
COMPREHENSVIE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2008
TABLE OF CONTENTS CONTINUED
S-13
S-14
S-15
S-16
S-17
S-18
S-19
Legal Debt Margin Information
Demographic and Economic Statistics
Principal Employers
Full-time-Equivalent District Employees by Type
Operating Statistics
Teacher Base Salaries
School Building Information
96
97
98
99
100
101
102
SCHEDULE OF FEDERAL AWARDS
105
Auditor Documents:
Independent Auditor’s Report on Internal Control Over Financial Reporting and
Compliance and Other Matters Based Upon the Audit Performed in Accordance with
Government Auditing Standards
Independent Auditor’s Report on Compliance with Requirements Applicable to Each
Major Program and Internal Control Over Compliance in Accordance with OMB
Circular A-133
107
Exhibit
K-1
Auditee Documents:
Supplemental Schedule of Expenditures of Federal Awards
Notes to Supplemental Schedule of Expenditures of Federal Awards
109
111
113
Auditor Documents:
Schedule of Findings and Questioned Costs
114
Auditee Documents:
Status of Prior-Year Findings
116
INTRODUCTORY SECTION
BOARD OF TRUSTEES
Length of
Service
Term
Expires
Lloyd “Skip” Jenkins
President
6 Years
May 2011
Certified Public Accountant
Brad Shanklin
Vice-President
3 Years
May 2011
President/CEO, Plano Chamber
of Commerce
Missy Bender
Secretary
2 Years
May 2009
Community Volunteer
Mary Beth King
Member
13 Years
May 2010
Community Volunteer
John Muns
Member
13 Years
May 2010
Partner, Investment Company
Melody Timinsky
Member
7 Years
May 2009
Chief Operating Officer, NonProfit Organization
Duncan Webb
Member
10 Year
May 2010
Attorney
Name
Occupation
ADMINISTRATIVE OFFICIALS
Name
Position
Length of
District Service
Dr. Douglas Otto
Superintendent
*total school district experience 36 years
13 Years*
Jeff Bailey
Deputy Superintendent
29 Years
Jim Hirsch
Associate Superintendent – Academic &
Technology Services
*total school district experience 33 years
12 Years*
Richard Matkin
Associate Superintendent – Business Service
*total school district experience 31 years
7 Years*
Karla Oliver
Executive Director-Government & Community
Relations
*total school district experience 18 years
4 Years*
Mike Collinsworth
Area Assistant Superintendent – East Cluster
22 Years
Patty Meyer
Area Assistant Superintendent – West Cluster
*total school district experience 35 years
22 Years*
Roxanne Burleson
Area Assistant Superintendent – Central Cluster
*total school district experience 28 years
26 Years*
August 7, 2008
Exec. Director,
Auxiliary Services
(Richard Butler)
Exec. Director,
Facilities Svcs.
(Tom Kimbrough)
Exec. Director
Financial Services
(Linda Madon)
Associate Superintendent
Business Services
(Richard Matkin)
Director, Benefits
& Risk Mgmt.
(Becky Garrett)
Director, Diversity
Compensation &
Employee Records
(Jun Melvin)
Director,
HR Services
(Becky Wussow)
Executive Director
Human Resources
(Tamira Griffin)
Executive Director, Community
& Governmental Relations
(Karla Oliver)
Internal Auditor
(Dan Clark)
Director, Athletics
(Gerald Brence)
Director, Security
Police Services
(Mark Hinshaw)
Principals
Area Asst Supt.
East Cluster
(Mike Collinsworth)
Principals
Area Asst Supt.
Central Cluster
(Roxanne Burleson)
Principals
Area Asst Supt.
West Cluster
(Patty Meyer)
Deputy Superintendent
(Jeff Bailey)
Superintendent of Schools
(Dr. Doug Otto)
Board of Trustees
Coordinator, Social
Services
(Dorothy Shaw)
Coordinator eSchool &
Special Projects
(Jean Parmer)
Director, After
School Program
(Arlene Carnes)
Manager, Student
Admin. Svcs.
(Sherry Easterling)
Director,
Counseling Service
(Paul Weaver)
Director, Student
Mgmt.
(Mark Allen)
Executive Director
Student Services
(Cathy Galloway)
Executive Assistant
(Margie Grounds)
Executive Assistant
(Denise Gillespie)
Director Assessment &
Accountability
(James Ashby)
Executive Director
Elem. Academic Services
(Jayne Cantwell)
Executive Director
Secondary Academic Svcs.
(Jim Wussow)
Executive Director
Technology Operations
(John Alawneh)
Executive Director
Instuctional Technology
(Mary Hewett)
Associate Superintendent,
Technology & Academic
Services
(Jim Hirsch)
October 31, 2008
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, 2008, 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, 2008 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. The presentation of the CAFR includes: Management’s
discussion and analysis (MD&A), government-wide financial statements, fund financial statements,
notes to the financial statements and required supplementary information (RSI) other than MD&A.
Additional sections in the CAFR include the introductory section, which includes this transmittal
letter, the District’s organizational chart and a list of principal officials. Combining and individual
fund statements and schedules for nonmajor funds are included along with required schedules for
the Texas Education Agency. The statistical section includes selected financial and demographic
information, generally presented on a multiyear basis. The District is required to undergo an
annual single audit in conformity with provisions of the Single Audit Act of 1996 and U.S. Office of
Management and Budget Circular A-133, Audits of States, Local Governments and Non-Profit
Organizations. Information related to this single audit, including the supplemental schedule of
expenditures of federal awards, findings and recommendations, and independent auditors’ reports
on internal control and compliance with applicable laws and regulations, is included in the back of
this report.
The remainder of this transmittal highlights the governance structure, the mission, the
accomplishments and initiatives, the economic conditions and outlook, and the financial activities
of the District.
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 three-year term with the elections being
staggered 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 are appointed by the
Board.
iii
Regular action meetings are scheduled the first Tuesday of the month and are held in the District’s
Administration Building. Regular work sessions are scheduled the third Tuesday of the month and
are held at the District’s staff development training center, the Sockwell Center. Special meetings
are scheduled as needed and announced in compliance with public notice requirements.
The Board has final control over local school matters limited only by the state legislature, by the
courts and by the will of the people as expressed in School Board elections. Board decisions are
based on a majority vote of a quorum of the Board.
In general, the Board adopts policies, sets direction for curriculum, employs the superintendent and
oversees the operations of the District and its schools. Besides general Board business, trustees
are charged with numerous statutory regulations, including appointing the tax assessor/collector,
calling trustee and other school elections and canvassing the results, organizing the Board and
electing its officers. The Board is also responsible for setting the tax rate, setting salary schedules,
and acting as a board of appeals in personnel and student matters, confirming recommendations
for textbook adoptions, and adopting and amending the annual budget.
The Board has responsibilities and control over all activities related to the public school education
within its geographic boundaries. Even though there is considerable association between such
other entities as the Collin County Tax office and the Collin County Central Appraisal District, this
report is restricted only to the actual activities of the District.
The Board solicits and evaluates community input and support concerning school policies.
MISSION
The District is a public school system whose adopted mission is:
“. . .to provide an excellent education for all students.”
To accomplish its mission, the District provides a full range of educational services appropriate to
grade levels ranging from pre-kindergarten through grade 12. These include regular and enriched
academic education, special education for handicapped children, vocational education and special
programs for those with limited English proficiency. These programs are supplemented by a wide
variety of co-curricular offerings, including those in fine arts and athletics. The District’s curriculum
is well-defined for the purpose of preparing students early for college readiness. The participation
rate of PISD students in Advanced Placement/International Baccalaureate ranks among the
highest in the state and nation. PISD students’ performance on these exams gives them a
competitive edge for college admission and college success.
As reflected in the District’s mission statement, activities of the District focus on learning
opportunities for students. The District is providing educational services to over 54,000 students in
state of the art facilities that include three early childhood schools for pre-kindergarten age
students, 43 elementary schools, 20 secondary school programs and two special program centers.
The District has long maintained the philosophy of renovating its schools every 20 to 25 years to
ensure that all facilities continue to meet new building standards as well as curriculum and
technology requirements.
ECONOMIC CONDITIONS AND OUTLOOK
Situated in the heart of north Texas, and as an integral part of the Dallas/Fort Worth Metroplex, the
City of Plano enjoys easy access to major transportation and shipping hubs in air, rail and trucking
to any destination in the United States. A significant factor in the growth of the City’s economic
base is the addition, expansion and retention of numerous corporate and regional headquarters.
Plano is home to more than 6,000 businesses, including global corporate headquarters and
iv
technology-related companies, and a large retail environment including two major shopping
centers. Electronic Data Systems, J.C. Penney Co., Frito-Lay Inc., Cadbury Schwepps, Alcatel
USA, Perot Systems, Countrywide Home Loans Inc., and Ericsson all call Plano home. The
combined effects of population, income, employment and residential growth along with increased
industrial, commercial and retail development, have ensured the continuance of steady growth
during the past several years.
The Texas Economic Development Act amended the Texas Tax Code in 2001 to allow businesses
to apply for appraised value limitation on qualified property for economic development, making the
state more attractive for large-scale projects. Texas Instruments (TI) made application to the
District for approval of this limitation in November 2003. The District entered into a Texas
Economic Development Act Participation Agreement with TI in February 2004. The construction of
the Texas Instruments $3 billion semiconductor manufacturing facility located near the southern
border of Plano ISD is complete. The benefits associated with the construction of this plant in
Plano ISD and Collin County are estimated to be as large as 2.8 billion dollars in assets. In
conjunction with the construction of this facility, Plano ISD along with other higher education
entities in the area, have formed the High Technology Education Coalition of Collin County. The
collaboration between the entities in the coalition will provide internships and increase scholarship
opportunities for students and professional development opportunities for teachers.
The East section of the District continues to experience the most growth. The District’s latest multiyear bond program was successfully approved by the voters at the May 10, 2008 election.
Approval of $490 million will provide funding for four new schools, 20-year renovations, additions
and expansions, system and compliance for several facilities and district wide technology initiatives
and capital improvements. This multi-year bond program will impact every child and school in
Plano ISD. During the year, architects were selected for the construction of three of the new
schools approved in the May 2008 bond program. Preliminary expenses have been incurred for
the construction of these new schools. The first bond sale from the 2008 authorization will occur in
November 2008. The fourth and final bond sale from the August 2004 authorization occurred on
February 5, 2008 in the amount of $58,280,000. Contracts funded by the fourth bond sale awarded
during the year were for a new Sigler Elementary school building to be built on the existing site and
for renovation of Clark High school. Preliminary expenses were incurred related to the renovation
of Clark High School. During fiscal year 2008, the District completed the renovations of Davis
Elementary, Mathews Elementary, Carlisle Elementary and the Administration Building. Additions
for the fine arts area at Plano East Senior High School, science area at Bowman Middle School
and a press box at Clark Stadium were completed. Kitchen and HVAC improvements were
completed at Jackson Elementary, Forman Elementary, Christie Elementary and Frankford Middle
School. New roofs were added at Christie Elementary, the Special Programs Center and the
Service Center. Lastly, flooring projects were completed at Plano Senior High School, Haggard
Middle School and Miller Elementary. Purchases of school buses, technology and capital
equipment were also made during 2008.
Since the 1970s, the State of Texas has been involved with lawsuits challenging the system of
financing public schools. In 1987, the courts declared the system unconstitutional according to
standards of the Texas Constitution. The ruling focused not only on operating revenues and
expenditures, but also on facilities and capital financing. In the ensuing years, the Legislature has
tried to remain a step ahead of the courts, but has had several efforts at satisfying the
requirements of the Constitution found unconstitutional. In 1992, the Supreme Court of Texas
found Senate Bill 351, passed by the Legislature in 1991, to be unconstitutional in that it imposed a
statewide property tax by creating “county education districts” (CEDs). The Texas Constitution
prohibits a state property tax. Following this ruling, the Legislature called a referendum to
constitutionalize the provisions of Senate Bill 351 and the CEDs. The voters of the state turned
down the referendum issues, with 63% saying no. The next effort at meeting the tests of equity,
Senate Bill 7, passed by the Texas Legislature in 1993, was challenged by property-poor school
districts as well as property-wealthy districts. Points litigated include the equity issue, the capital
financing issues, and issues of adequacy and suitability. The Texas Supreme Court ruled, in
v
January 1995, that the law was constitutional at the time, but could become unconstitutional unless
changes were made in the law over the next several years.
Senate Bill 7 mandated that all districts having a wealth per student based on the weighted
average daily attendance (WADA) exceeding $280,000 must give up that excess wealth in one of
several manners: (1) consolidation with a property-poor district such that the combined wealth is
less than $280,000 per WADA; (2) tax base consolidation with a property-poor district such that the
combined wealth is less than $280,000 per WADA; (3) purchase of attendance credits from the
State to reduce the wealth to less than $280,000 per WADA; (4) purchase of attendance credits
from a property-poor district to reduce the wealth to less than $280,000 per WADA; or
(5) disannexation of property from a property-wealthy district to reduce the wealth to less than
$280,000 and attachment of that property to a property-poor district.
In 1995, the Texas Legislature passed Senate Bill 1, which rewrote the entire Texas Education
Code. This new law made very few changes to the school financing provisions. During the 1997
legislative session, the Texas Legislature revised the formula for calculating the recapture amount
to exclude taxes collected for debt service from the calculation. The voters approved an additional
$10,000 homestead exemption in August 1998. The 1997 legislation included provisions in the
revised recapture calculation to hold the District harmless from any lost tax revenues caused by
the loss in taxable value due to the increased homestead exemption.
In the 1999 legislative session, the Texas Legislature passed House Bill 4. This new law increased
the wealth per WADA that districts may retain to $295,000. This $15,000 increase in wealth per
weighted student represents the first increase since Senate Bill 7 was enacted in 1993. This
minimal adjustment to the wealth per weighted student provided some relief to the District
regarding its equalization efforts.
During the 2001 legislative session, the Texas Legislature passed House Bill 3343. This new law
increased the wealth per WADA that districts may retain to $300,000 for 2001-02 and to $305,000
for 2002-03. During the legislative session the Legislature agreed to name an interim committee
following the session to study public school finance in Texas. In September 2001 the Lieutenant
Governor and Speaker of the House appointed this committee. The committee was charged with
conducting a comprehensive review of the structure of the Texas public school finance system,
including facilities and transportation issues; the method used to fund public schools; and the
criteria used to determine state payments to school districts. The legislative leaders also instructed
the committee to carefully consider all of the equity issues that govern public school finance and
fully examine all of the revenue resources for funding public schools, including the state’s property
tax system.
The Joint Select Committee on Public School Finance completed its review of the Texas public
school finance system in 2002. However, the committee failed to come to a consensus and make
a recommendation to state officials. The decision was left for Legislators to address in the 2003
legislative session. The regular session of the Texas Legislature ended June 2, 2003. The
legislation passed during the regular session that addressed the school finance system left the
current funding structure in place. The Texas Governor called a special session of the Legislature
that convened April 20, 2004, to consider changes to the Texas public school finance system. The
special session ended without the enactment of new school finance legislation.
On April 9, 2001 four districts filed a suit now known as the West Orange case that challenged the
Texas school finance system on the basis that it effectively forces school districts to levy
maintenance and operation taxes at the maximum rate of $1.50 per $100 assessed value, there by
resulting in an unconstitutional statewide ad valorem tax. Initially, the trial court in West Orange
dismissed the suit stating that the plaintiffs had failed to establish that a sufficient number of school
districts were levying the maximum tax rate of $1.50 in an effort to provide an accredited education
and that the $1.50 statutory cap did not constitute a statewide property tax. Upon appeal, the
appeals court affirmed the trial court’s ruling. On May 29, 2003, the Texas Supreme Court
reversed the lower courts and remanded the case back to the trial court for further proceedings.
vi
On September 15, 2004 the trial court ruled on remand that the State’s school finance system (1)
fails to provide an adequate suitable education as required by the State Constitution; (2) forces
certain school districts in the State to levy an ad valorem tax at the $1.50 statutory cap on
maintenance and operations tax rate, therefore violating the State constitution’s proscription
against a statewide ad valorem tax; and (3) is neither financially efficient nor efficient in the sense
of providing for the mandated adequate education nor the statutory regime of accreditation,
accountability and assessment. The judge further stated that he intends to enter an injunction on
approximately October 1, 2004 that State funding of public schools cease unless the State
legislature conforms the State school finance system to meet State constitutional standards, with
the effective date of the injunction to be one year from the date the injunction order is entered. The
Texas Attorney General immediately announced that his office would appeal the trial court’s ruling
directly to the Texas Supreme Court. After the failure of the 79th regular Legislative Session and
two subsequent special sessions to enact legislation addressing the constitutional issues identified
in the final judgment entered by the District Court, the court’s ruling was appealed to the Texas
Supreme Court in June 2005. The Texas Supreme Court ruling in October 2005 upheld the trial
court’s ruling on points one and two stated above. Although the Texas Supreme Court noted
significant deficiencies in the system, it did not declare it to be unconstitutional at this time. The
results of the Texas Supreme Court ruling required the Legislature to significantly alter the Texas
system of school finance. The Court established a deadline of June 1, 2006 by which the
Legislature had to restore meaningful local discretion to school districts or the State funding system
to school districts would cease to operate. The special session called by the Governor which
convened on April 17, 2006 was the sixth attempt in three years by the Legislature to address
school finance and tax policy issues.
This time the Legislature did take action and met the June deadline imposed by the Texas
Supreme Court. House Bill I was passed by the Legislature with its primary focus on property tax
relief. Some additional financial capacity was available in the 2006-07 school year for districts.
However, no long term stable revenue source was created for public education. House Bill 1
provided for the reduction of maintenance and operating taxes by $0.17. Districts reducing the tax
rate by this amount were guaranteed the better of their 2005-06 or 2006-07 state aid and local tax
revenue. For the 2007-08 school year, districts were required to reduce the maintenance and
operating tax rate by an additional $0.33 to a rate of $1.00 per hundred dollars of taxable value.
Districts could access four cents of additional tax rate capacity for enrichment during these two
years. An additional $0.02 of tax capacity is available in 2008-09, but requires voter approval.
House Bill 1 also provided for a $2,000 net pay increase for teachers, counselors, nurses and
librarians effective for 2006-07. The bill established a high school allotment of $275 per average
daily attendance (ADA), incentive pay programs for campuses in 2006-07 and incentive pay
programs for both teachers and campuses in 2007-08. The bill also contained significant changes
to accountability for campus performance and financial accountability along with a host of new
efficiency measures including instructional spending targets as well as a uniform school start date
for the fourth Monday in August to be effective in 2007. The 80th Legislature concluded its work in
early June 2007. Equalization provisions remain a part of the newly passed school finance
legislation, but at a reduced level due to the decrease in the maintenance and operating tax rate.
Cumulatively since the inception of these equalization efforts, the District has purchased over $1.1
billion in attendance credits from the State and other districts within the State. Since the 1993-94
fiscal year $4.28 cumulative, of the local maintenance and operating tax rate has been levied, but
recaptured by the State. The District has seen its recapture payment increase from $10.4 million in
1993-94 to a peak of $136 million for the 2005-06 year. Under House Bill I, the reduced
maintenance and operating tax rate for 2006-07 and 2007-08 has resulted in a reduction in the
recapture payment to the current year level of $81 million. The District’s financial planning for
2009, the third fiscal period under House Bill 1, continues to consider the impact of this legislation
when adopting the General Fund budget for 2009. New legislation passed by the 2007 80th
Legislative Session included provisions for educator salary increases to be funded by the state at a
rate of $23.63 per Weighted Average Daily Attendance (WADA). The budget for 2009 includes a
significant raise for teachers in addition to the state funded raise as the District strives to move into
the top tier salary grouping. This effort in addition to an initiative to maintain a reduced overall class
load for secondary teachers resulted in the District accessing the second two cents of the available
vii
cents of additional tax rate capacity for enrichment for the 2008-09 budget. The District has now
accessed the full four cents of additional tax rate capacity available to the District without approval
by the voters. The Board of Trustees is required to adopt a final budget by no later than the close
of the fiscal year, June 30. Annual budgets for the General Operating Fund, Debt Service Fund
and Food Service Fund were adopted by the Board of Trustees on June 17, 2008. The budget is
prepared by fund and function. Site based decisions are made throughout the year as campuses
and departments manage their budgets. Budget transfers between functions, however, require
approval from the Board of Trustees. The District continues to operate a tightly controlled budget in
all areas of operation while maintaining a high quality educational program.
For additional information about the financial status of the District, readers should refer to
Management’s Discussion and Analysis section of this report.
OTHER INFORMATION
Controls
An internal control structure that has been designed, managed and maintained by the District is in
place to ensure the district’s assets are protected from loss, theft and misuse and to ensure that
accurate accounting data is compiled in the preparation of financial statements in conformity with
Generally Accepted Accounting Principles (GAAP). The internal control structure is designed to
provide reasonable, but not absolute, assurance that these objectives are met.
Independent Audit
State law and District policy require an annual audit of the accounts and financial records of the
District by independent certified public accountants selected by the Board of Trustees. Weaver
and Tidwell have issued an unqualified opinion on the financial statements of Plano Independent
School District for the year ended June 30, 2008. The independent auditors’ report has been
included in this report at the front of the financial section.
Awards
In 1999, the 76th Texas Legislature, approved legislation requiring the commissioner of education
in consultation with the comptroller of public accounts to develop a rating system for school district
financial accountability. The 77th Texas Legislature in 2001 subsequently adopted rules for the
implementation and administration of the financial accountability rating system known as School
FIRST, Financial Integrity Rating System of Texas. The financial accountability rating system
benefits the public by having in place a system to ensure that school districts will be held
accountable for the quality of their financial management practices and achieve improved
performance in the management of their financial resources. Plano Independent School District
has received a Superior Achievement rating since the implementation of the rating system in the
2001-02 year.
The Government Finance Officers Association of the United States and Canada (GFOA) awarded
a Certificate of Achievement for Excellence in Financial Reporting to the Plano Independent School
District for its Comprehensive Annual Financial Report for the fiscal period ended June 30, 2007.
This was the twenty-fifth consecutive year that the District has received this prestigious award.
In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily
readable and efficiently organized comprehensive annual financial report, whose contents conform
to program standards. Such reports must satisfy both generally accepted accounting principles
and applicable legal requirements.
viii
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT
Board of Trustees
PLANO INDEPENDENT SCHOOL DISTRICT
Plano, TX
We have audited the accompanying financial statements of the governmental activities,
business type activities, each major fund, and the aggregate remaining fund information
of the Plano Independent School District (the District) as of and for the year ended June
30, 2008, which collectively comprise the District’s basic financial statements as listed in
the table of contents. These financial statements are the responsibility of the District'
s
administration. Our responsibility is to express an opinion on these basic financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the basic financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the basic financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall basic financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the respective financial position of the government activities, business type
activities, each major fund, and the aggregate remaining fund information of the District
as of June 30, 2008, and the respective changes in financial position and the cash flows,
where applicable, thereof, for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report
dated October 31, 2008, on our consideration of the District'
s internal control over
financial reporting and our tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements and other matters. The purpose of that
report is to describe the scope of our testing of internal control over financial reporting
and compliance and the results of the testing, and not to provide an opinion on the
internal control over financial reporting or on compliance. That report is an integral part
of an audit performed in accordance with Government Auditing Standards and should be
considered in assessing the results of our audit.
WWW.WEAVERANDTIDWELL.COM
AN INDEPENDENT MEMBER OF
BAKER TILLY
INTERNATIONAL
The accompanying management'
s discussion and analysis and the budgetary
comparison schedule-general fund as listed in the table of contents are not a required
part of the basic financial statements but are supplementary information required by the
Governmental Accounting Standards Board. We have applied certain limited procedures,
which consisted principally of inquiries of management regarding the methods of
measurement and presentation of the required supplementary information. However, we
did not audit the information and express no opinion on it.
OFFICES IN
DALLAS
FORT WORTH
1
HOUSTON
PLANO INDEPENDENT SCHOOL DISTRICT
Page Two
Our audit was conducted for the purpose of forming an opinion on the financial
statements that collectively comprise the District’s basic financial statements. The
accompanying schedule of expenditures of federal awards is presented for purposes of
additional analysis as required by U.S. Office of Management and Budget Circular A-133,
Audits of States, Local Governments, and Non-Profit Organizations, and in addition to the
combining statements, and the required TEA schedules listed in the table of contents, are
not a required part of the basic financial statements. Such information, excluding the
Fund Balance and Cash Flow Worksheet – General Fund (Exhibit J-3) marked unaudited
on which we express no opinion, has been subjected to the auditing procedures applied
in the audit of the basic financial statements and, in our opinion, is fairly stated in all
material respects in relation to the basic financial statements taken as a whole.
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
October 31, 2008
2
PLANO INDEPENDENT SCHOOL DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2008
(Unaudited)
Our discussion and analysis of Plano Independent School District’s (the “District”) financial performance
provides an overview of the District’s financial activities for the year ended June 30, 2008. It should be read
in conjunction with the District’s financial statements.
FINANCIAL HIGHLIGHTS
The District’s net assets as presented on the government-wide Statement of Net Assets exceeded liabilities
by $203,913,855. The net assets of the District increased by $7.4 million during the year ended June 30,
2008.
The District’s governmental funds financial statements reported combined ending fund balance of
$271,759,572. Of this amount, $8,969,613 is reserved or designated in the general operating funds for
restricted purposes and $122,252,313 is unreserved, undesignated in the General Operating Fund and is
available for spending at the District’s discretion. Fund balance of $140,537,646 is for use by the Debt
Service Fund, Capital Projects Fund and the Special Revenue Funds.
The District held a bond election to authorize $285,680,000 in bonds in fiscal year 2005. The fourth bond
sale for this authorization took place on February 5, 2008 when the District issued $58,280,000 in new debt.
On May 10, 2008, the District held a successful bond election with voters approving $490 million in
authorized new bonds. This entire amount remains authorized, but unissued at the fiscal year end of June
30, 2008.
During fiscal year 2008, the District completed renovations at Davis Elementary, Mathews Elementary,
Carlisle Elementary and the Administration Building. Additions to the fine arts area at Plano East Senior
High School, the science area at Bowman Middle School and the press box at Clark Stadium were
completed. Kitchen and HVAC improvements were completed at three elementary schools and one middle
school. New roofs were added at three facilities while flooring projects were completed at two secondary
campuses and one elementary school. Contracts funded by the fourth bond sale awarded during the year
were for a new Sigler Elementary school building to be built on the existing site and for renovation of Clark
High School. Additionally, during the year architects were selected for the construction of three new schools
that were approved as part of the May 2008 bond election. Preliminary expenses have been incurred for the
construction of these new schools.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the District’s basic financial
statements. The District’s basic financial statements are comprised of three components: 1) governmentwide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. This
report also contains required supplementary information and other supplementary information in addition to
the basic financial statements themselves.
Government-Wide Financial Statements
All of the District’s services are reported in the government-wide financial statements, including instruction,
student support services, student transportation, general administration, school leadership, facilities
acquisition and construction and food services. Property taxes, state and federal aid, and investment
earnings finance most of the activities. Additionally, all capital and debt financing activities are reported here.
The government-wide financial statements are designed to provide readers a broad overview of the District’s
finances, in a manner similar to a private-sector business.
3
The statement of net assets presents information on all of the District’s assets and liabilities, with the
difference between the two reported as net assets. Over time, increases or decreases in net assets may
serve as a useful indicator of whether the District’s financial position is improving or deteriorating.
The statement of activities details how the District’s net assets changed during the most recent fiscal year.
All changes in net assets are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows. Therefore, revenues and expenses are reported in this
statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and
earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the District that are principally
supported by taxes and intergovernmental revenues (governmental activities) from business-type activities
that are intended to recover all or a significant portion of their costs through user fees and charges.
Fund Financial Statements
The District uses fund accounting to monitor specific sources of funding and spending for particular
purposes. The fund financial statements provide more detailed information about the District’s most
significant funds—not the District as a whole.
•
Some funds are required by State law and by bond covenants.
•
The Board of Trustees establishes other funds to control and manage money for particular purposes
or to show that it is properly using certain taxes and grants.
All of the funds of the District can be divided into three categories: governmental funds, proprietary funds,
and fiduciary funds.
Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government-wide financial statements. Most of the District’s activities are included in
governmental funds, which focus on (1) how cash and other financial assets that can readily be converted to
cash flow in and out, and (2) the balances left at year end that are available. However, unlike the
government-wide financial statements, governmental fund financial statements provide a detailed short-term
view that helps determine whether there are more or fewer financial resources that can be spent in the near
future to finance the District’s programs. Because this information does not encompass the additional longterm focus of the government-wide statements, we provide additional information on the subsequent page
that explains the relationship (or differences) between them. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balances for the General Fund, Debt Service Fund and the Capital Projects Fund, which are
considered to be major funds. Data from all other Special Revenue funds is in the Other Funds column and
is presented as a non-major governmental fund on the same statements.
Proprietary funds are used to account for operations that are financed similar to those found in the private
sector. These funds provide both long- and short-term financial information. The District maintains two types
of proprietary funds. Enterprise funds are used to report the same functions presented as business-type
activities in the government-wide financial statements. The District uses enterprise funds to account for its
concession service, after school care, and employee childcare. Internal service funds report activities that
provide services for the District’s other programs and activities, i.e., health insurance, workers’
compensation, property insurance and print shop.
Because these services predominately benefit
governmental rather than business-type functions, they have been included within governmental activities
within the government-wide financial statements.
Fiduciary funds are used to account for assets held by the District in a trustee capacity or as an agent for
individuals, private organizations and/or other funds. The District is responsible for ensuring that the assets
reported in these funds are used for their intended purposes. All of the District’s fiduciary activities are
reported in a separate statement of fiduciary net assets. We exclude these activities from the District’s
government-wide financial statements because the District cannot use these assets to finance its operations.
4
Notes to the Basic Financial Statements
The notes to the basic financial statements provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information that further explains and supports the information in the financial
statements. Immediately following the required supplementary information, combining statements are
included for the nonmajor special revenue funds, the enterprise funds, the internal service funds and the
agency funds.
The remainder of this overview section of management’s discussion and analysis explains the structure and
contents of each of the statements. Figure A-1 summarizes the major features of the District’s financial
statements, including the portion of the District government they cover and the types of information they
contain.
F ig u r e A - 1 . M a jo r F e a t u r e s o f t h e D is tr ic t's G o v e r n m e n t - w id e a n d F u n d F in a n c ia l S ta te m e n ts
T y p e o f S ta tem e n ts
G o v e rn m e n t - w id e
A ll a ctiv ities o f th e D istr ict
(e x c e p t fid u c ia r y fu n d s)
Scope
G o v e rn m e n t a l F u n d s
T h e a c t iv it ie s o f t h e d is t r ic t
t h a t a re n o t p ro p r ie t a r y o r
f id u c ia r y
F u n d S t a te m e n ts
P ro p rie ta ry F u n d s
A c t iv it ie s t h e d ist ric t
o p e rat e s sim ila r to p r iv a t e
b u s in e ss e s.
F id u c ia ry F u n d s
I n st a n c e s in w h ic h t h e
d ist r ic t is t h e tru st e e o r
a g e n t fo r so m e o n e e ls e 's
reso u rces
Š S t at e m e n t o f n e t a sse t s
Š B a la n c e s h e e t
Š S t at e m e n t o f n e t a sse t s
R e q u ire d f in a n c ia l
sta te m e n ts
Š S t at e m e n t o f a c t iv it ie s
Š S t at e m e n t o f r e v e n u e s,
e x p e n d it u re s & c h a n g e s
in fu n d b a la n c e s
Š S t at e m e n t o f r e v e n u e s ,
e x p e n se s a n d c h a n g e s in
fu n d n e t a sse t s
A c c o u n tin g b a sis
a n d m e a su re m e n t
A c c ru a l a c c o u n t in g a n d
e c o n o m ic r e s o u r c e s fo c u s
M o d if ie d a c c ru a l
a c c o u n t in g a n d c u rr e n t
f in a n c ia l re s o u r c e s fo c u s
A c c r u a l a c c o u n t in g a n d
e c o n o m ic re so u rc e s fo c u s
A c c r u a l a c c o u n t in g a n d
e c o n o m ic re so u rc e s fo c u s
A ll a s se t s a n d lia b ilit ie s,
b o t h fin a n c ia l a n d c a p it a l,
sh o r t-t er m a n d lo n g -t e r m
O n ly a s se t s e x p e c t e d to
b e u se d u p a n d lia b ilit ie s
t h a t c o m e d u e d u r in g t h e
y e a r o r so o n t h e r e a ft e r;
n o c a p it a l a ss e t s in c lu d e d
A ll a s s e t s a n d lia b ilit ie s,
b o t h fin a n c ia l a n d c a p it a l,
a n d s h o r t-t e r m a n d lo n g t e rm
A ll a s s e t s a n d lia b ilit ie s,
b o t h sh o rt -t e rm a n d lo n g t e rm ; t h e A g e n c y 's fu n d s d o
n o t c u r re n t ly c o n t a in
c a p it a l a s se t s, a lt h o u g h
the y can
A ll re v e n u e s a n d
e x p e n se s d u r in g ye a r ,
re g a rd le s s o f w h e n c a s h
is re c e iv e d o r p a id
R e v e n u e s fo r w h ic h c a s h
is r e c e iv e d d u r in g o r so o n
a ft e r t h e e n d o f t h e ye a r ;
e x p e n d it u re s w h e n g o o d s
o r se rv ic e s h a v e b e e n
r e c e iv e d a n d p a y m e n t is
d u e d u rin g t h e y e a r o r
so o n t h e r e a ft e r
A ll r e v e n u e s a n d e x p e n se s
d u r in g ye a r, r e g a rd le s s o f
w h e n c a s h is r e c e iv e d o r
p a id
A ll r e v e n u e s a n d
e x p e n se s d u r in g ye a r,
r e g a rd le s s o f w h e n c a s h
is r e c e iv e d o r p a id
Š S t at e m e n t o f fid u c ia r y
n e t a ss e t s
• S t at e m e n t o f c h a n g e s in
fid u c ia r y n e t a s se t s
Š S t at e m e n t o f c a s h flo w s
fo cu s
Type of
a sse t/lia b ility
in f o rm a tio n
Type of
in f lo w /o u tf lo w
in f o rm a tio n
FINANCIAL ANALYSIS OF THE DISTRICT AS A WHOLE
As noted earlier, net assets may serve over time as a useful indicator of the District’s financial position. The
District’s net assets were $203.9 million at June 30, 2008.
5
The District’s Net Assets
Current and Other Assets
Governmental
Governmental
Business-Type
Business-Type
Activites
Activites
Activities
Activities
As of
As of
As of
As of
June 30, 2008
June 30, 2007
June 30, 2008
June 30, 2007
$
397,459,513
Capital and Non-Current Assets
$
421,931,420
$
307,418
$
32,491
765,064,281
740,565,356
1,089
1,633
1,162,523,794
1,162,496,776
308,507
34,124
Current Liabilities
111,127,091
125,859,730
338,963
-
Long Term Liabilities
847,452,392
840,111,614
Total Liabilities
958,579,483
965,971,344
338,963
Total Assets
-
-
Net Assets:
Invested in Capital Assets,
net of related debt
Restricted
Unrestricted
Total Net Assets
$
10,868,217
6,176,931
1,089
34,644,338
29,740,773
-
-
158,431,756
160,607,728
(31,545)
32,491
203,944,311
$
196,525,432
$
(30,456)
1,633
$
34,124
Our analysis focuses on the net assets and changes in net assets of the District’s governmental and
business-type activities.
The significant decrease in Current and Other Assets is attributable to a $24.5 million decrease in Current
Receivables, specifically the receivable Due from Other Governments. The primary decrease of $19.3
million in the due from the State category is a result of the state overpaying the District during the 2008 fiscal
year whereas at the end of fiscal year 2007 the State owed the District funds at a similar level. A decrease
in Current Receivables was also due to fluctuations in the amount due from other local school districts that
the District partners with as part of the property wealth provisions of the state school finance system. Partner
districts have repaid funds to the District during fiscal year 2008 thereby reducing the amount due by $6.4
million. The final reduction in Current Receivables is a result of the Tax Increment Finance Zone repaying
$4.4 million due the District from funds provided by the District up front that enabled renovations to a project
in the TIF Zone to begin earlier than would have otherwise been possible. The Capital and Non-Current
Assets increased by $24.5 million due to the completion of several building construction projects, the
purchase of land and the completion of land improvement projects, which resulted in recording the addition
of these projects to the various capital asset line items. The offsetting increase and decrease result in a
slight increase in total assets during the year ended June 30, 2008 of $27,018. Two line items within the
Current Liabilities category account for the decrease of $14.7 million for the fiscal year. The decreases are
in, Accounts Payable and Due to Other Governments. The decrease in construction activity of over $6
million is due to the larger projects funded by the 2004 bond authorization being completed as we approach
the end of this bond program. Due to Other Governments reflects a decrease in this line item that is a direct
result of the District selecting the wealth equalization option where payments are made directly to the state
rather than to other partner school districts. As prior years reach their finalized status with the state, the
amount due to partner districts is being reduced significantly. These two decreases offset the $3 million
increase in Accrued Wages Payable due to significant pay increases granted in 2008. Noncurrent Liabilities
increased $7.3 million which is a result of issuing $58,280,000 in new debt during the fiscal year. In addition,
the District issued $33,305,000 in refunding bonds used to refund $36,055,000 of outstanding bonds.
Obligations due within one year increased $2.7 million while obligations due in more than one year increased
$4.6 million due to the issuance of additional debt during the prior three fiscal periods along with the new
issue during fiscal year 2008. The decrease in Current Liabilities combined with an increase in Noncurrent
Liabilities for a total decrease in liabilities of $7.4 million.
Investment in capital assets (e.g. land, buildings, furniture, and equipment) less any related debt used to
acquire those assets that is still outstanding is $10,868,217. The increase of $4.7 million is due to an
increase in capital assets net of depreciation of $24.5 million while only increasing related debt by $19.8
million. An additional portion of the District’s net assets of $34,644,338 represents resources that are subject
6
to external restrictions on how they may be used. Assets restricted for use by Food Service increased $1.2
million due to an increase in current assets for Food Service during fiscal year 2008. The assets restricted
for Debt Service use increased by $3.7 million. The remaining balance of net assets, $158,431,756, is
unrestricted and may be used to meet the District’s ongoing obligations. The amount of unrestricted net
assets decreased $2.2 million for the year ended June 30, 2008. This decrease is a result of Total Assets
remaining constant while Current Liabilities decreased significantly, but were offset by an increase in
Noncurrent Liabilities.
Changes in net assets. The District’s total revenues were $624,781,565. A significant portion,
approximately 66.7%, of the District’s revenue comes from taxes. (See Figure A-2 or Exhibit B-1) With
changes in the State school finance law in place for the second year, sources of revenue have shifted from
local taxes to state aid through the Per Capita and Foundation School Program formula driven grants. State
aid now comprises 17% of the District’s revenue. State aid has increased to this level from 4% of revenue in
2006 and 10 % in 2007 while tax revenue has decreased from 82% in 2006 and 75% in 2007. Operating
Grants provide 8.5%, while 4.6% relates to charges for services. Interest revenue is 2.5% while other
sources including miscellaneous local revenue are less than one percent. The total cost of all programs and
services was $617,427,266.
Figure A-2
District Sources of Revenue for the fiscal year ended June 30, 2008
Operating Grants
9%
Charges for Services
5%
Other
1%
Interest Income
3%
Property Taxes
66%
State Aid
16%
7
Figure A-2
District Sources of Revenue for the fiscal year ended June 30, 2007
Operating Grants
7%
Charges for
Services
4%
Interest Income
3%
Other
1%
State Aid
10%
Property Taxes
75%
Government-Wide Activities
The District’s total net assets increased by $7,354,299. The total cost of all government-wide activities for
the year ended June 30, 2008 was $617,427,266. Funding for these government-wide activities is by
specific program revenue or through general revenues such as property taxes and investment earnings. The
following is a summary of the governmental funds activities:
•
•
•
The cost of all governmental activities for the year was $611,612,813.
Some of the governmental activities cost was funded by program revenues directly attributable
to specific activities. These program revenues amounted to $74,080,014.
The remaining cost of governmental activities not directly funded by program revenues was
$537,532,799 which was funded from property taxes and other local sources.
The following table presents the cost of the District’s largest governmental functions as well as their related
net cost (total cost less fees generated by the activities and intergovernmental aid). The net cost reflects
what was funded by local tax dollars, state revenues and other miscellaneous general revenues.
Net Cost of Selected District Functions
(in million of dollars)
Instruction
Contracted Instrl Serv Btw Schools
Plant Maintenance & Operations
Debt Service-Interest on LT Debt
School Leadership
Food Services
Total Cost of Services
$299.5
81.0
43.5
37.7
22.6
19.3
8
Net Cost of Services
$259.6
81.0
41.4
37.7
21.0
.8
Change in the District's Net Assets
Governmental
Governmental
Business-Type
Business-Type
Activities
FY 6/30/08
Activities
FY 6/30/07
Activities
FY 6/30/08
Activities
FY 6/30/07
Revenues
Program Revenues
Charges for services
$
Operating grants and contributions
20,730,046
$
53,349,968
Capital grants and contributions
26,330,304
$
7,735,461
$
175,706
48,735,602
-
292,944
General Revenues
Property taxes
416,432,102
486,515,930
State aid - formula
105,742,055
64,835,663
15,715,160
17,680,617
Interest income
Other
Total revenues
Expenses
Instruction and Instructional-Related Services
5,007,973
7,901,473
616,977,304
652,292,533
318,423,816
291,977,676
Instructional and School Leadership
26,350,587
24,485,712
Support Services - Student
60,904,441
55,748,577
Administrative Support Services
11,467,603
10,715,094
Support Services - Nonstudent Based
54,845,210
53,768,449
Ancillary Services - Community Service
1,220,347
6,193,489
Debt Service
37,667,058
35,870,074
Other Facility Costs
13,569,067
13,232,295
Intergovernmental Charges
87,164,684
132,179,425
Concessions
Employee Child Care
68,800
1,656
7,804,261
177,362
327,988
161,663
31,687
After School Care
-
-
5,454,778
Total expenses
611,612,813
624,170,791
5,814,453
161,663
5,364,491
28,121,742
1,989,808
15,699
196,525,432
169,144,241
34,124
18,425
Increase (Decrease) in net assets
Beginning net assets
2,054,388
Transfers In (Out)
Prior Period Adjustment
Ending net assets
$
203,944,311
$
(740,551)
196,525,432
(2,054,388)
$
(30,456)
$
34,124
The increase in the ending net assets for Governmental Activities of $7.4 million is a combination of several
factors. There were significant variances in specific revenue and expense activities during the 2008 fiscal
year as changes mandated by the school finance state legislation passed in 2006 continued to be phased in
for the second consecutive year. Changes mandated by the legislation that impacted fiscal year 2008
include a $0.33 reduction in the maintenance and operating tax rate, however, a portion of the local property
tax revenue lost due to this rate reduction flowed to the District through state revenue in an effort by the
State to hold districts harmless under the new school finance law. To compare the 2007 and 2008 fiscal
years, local property taxes and state revenue were combined which resulted in a net decrease in these two
revenue sources for 2008 of $29.2 million. Operating grants and contributions increased by $4.6 million due
primarily to the $2.7 million increase recognized in the State’s contribution on-behalf of our District’s
employees to the Texas Teacher Retirement System. The remaining increase is due to increases in federal
funds for the National School Lunch and Breakfast program along with an increase in IDEA B of $1.2 million.
The decrease in the general revenue line item for interest revenue is a combination of the decrease in
unspent bond funds available to be invested due to the completion of projects during the 2008 year along
with a declining interest rate. These variances combine for a decrease in revenue of $27.7 million. This
decrease in revenue is more than offset by the $44 million decrease in the District’s payment to the State
and other partner school districts to purchase Contracted Instructional Services during fiscal year 2008.
Local tax revenue, state aid and Contracted Instructional Services payments work in conjunction with each
9
other as the three key components of the State school finance legislation as the State has equalized funding
to school districts.
Total expenses reflect an overall decrease of $6.9 million. The most significant decrease in expenses is
attributable as stated above to the $44 million decrease in the District’s payment to the State and other
partner school districts to purchase Contracted Instructional Services under the mandated school finance
legislation. This decrease is primarily offset by increased salaries for all staff and additional instructional
positions added to lower the District’s teacher pupil ratio. Other factors contributing to the offset of the large
decrease are increases in Student Support Services due to increases in cost associated with Transportation
Services and Food Services that are directly tied to increased fuel cost and food cost and an increase in
Debt Service payments due to bond issuances in the last three fiscal years.
Business-Type Activities
Net assets of the District’s business–type activities decreased by $64,580. During fiscal year 2008 the
District transferred the Employee Child Care and After School Care activities to become Business-Type
Activities. However, it is the Concession activity that has created the decrease in net assets. This decrease
is due primarily to higher salaries, and food cost.
FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS
Governmental Funds The District's accounting records for general governmental operations are maintained
on a modified accrual basis as prescribed by the Financial Accountability System Resource Guide, Texas
Education Agency, with the revenues being recorded when available and measurable to finance
expenditures of the fiscal period. Expenditures are recorded when services or goods are received and the
fund liabilities are incurred. The general governmental operations include the following major funds:
General, Debt Service and the Capital Projects Fund.
Revenues for general governmental functions totaled $616,078,911 for the year ended June 30, 2008.
Property taxes were the largest source of revenue received by the District. The District's assessed property
value increased by 5.96%. Fiscal year 2008 is the second year of implementation of HB 1 passed by the
State Legislature during multiple special sessions held in 2006. The legislation included a mandated $0.33
tax rate deduction in the maintenance and operating tax rate for 2008. This resulted in a reduction in the
M&O tax levy of $70 million. The District’s Debt Service tax rate remained constant, but property value
growth resulted in increased tax revenue of $4.8 million for Debt Service. Declining interest rates throughout
2008 resulted in decreased interest revenue of $2.9 million. These items combine to result in an $82.6 million
decrease in Local Revenue. For the second consecutive year, State Revenue showed a significant increase.
For fiscal year 2008, state revenue increased by $44 million due to provisions included in the state school
finance legislation that flows state aid to offset a portion of the tax reduction. Federal revenues show an
increase of $1.2 million for the 2008 year. Increases were seen in federal revenue for the National School
Lunch and Breakfast program due to increased participation and a higher reimbursement amount per Type A
meal served along with an increase in the funding for IDEA B.
Expenditures for general governmental operations totaled $685,983,898 during fiscal year 2008. There are
significant decreases and increases in various functional areas of expenditures that combine in 2008 for an
overall decrease in expenditures of $44.5 million. The significant decreases are in two functional areas,
Contracted Instructional Services Between Schools and Facilities Acquisition.
Contracted Instructional
Services Between Schools is the amount for which the District must contract with the State and/or partner
school districts to educate nonresident students. This amount is a function of maintenance and operation tax
collections and student attendance. With the implementation of the state mandated maintenance and
operation $0.33 tax rate reduction, current M&O tax collections declined resulting in the significant decrease
for this function. The second significant decrease is in Facilities Acquisition. The $29.5 million decrease in
this function reflects the completion of large construction projects in the prior year. The fourth and final bond
issue on the 2004 construction program took place in February 2008. The District’s construction program
remains active, but not at the level seen in fiscal year 2007. Additional decreases are seen in Community
Services, Instructional Resources, Payments to Tax Increment Fund and in Data Processing Services.
These functions combine for a total decrease of $8.3 million. During fiscal year 2008, the District’s large
10
after school program and new employee child care program were moved into the Enterprise fund group. The
reclassification of these activities account for $5 million of this additional decrease. Staff supporting the
instructional technology at each campus were recoded to more appropriately reflect their responsibilities
which resulted in a $1.9 million decrease for Instructional Services, but an offsetting increase of the same
amount in the Instruction function. Smaller decreases were seen in the District’s payment to the Tax
Increment Fund due to our reduced tax collections along with a decrease in the Data Processing function
that relates to decreased expenditures for capital and small technology equipment. These decreases in
expenditures combine for a total decrease of more than $82 million. This total decrease is offset by
increases in several functional areas. The Instruction function increased by $23.5 million due to increased
starting teacher pay, salary increases and additional staff hired to reduce the District’s student to teacher
ratio. In the second year of a multi-year phased in effort to become a top tier paying District, a strong
compensation package was funded for fiscal year 2008 by providing a $2,300 raise for all teachers, librarians
and nurses with all other professional and paraprofessional staff receiving a 4.5% raise. Increases in the
Transportation and Food Service function of $3.2 million are a result of higher salaries and increased cost of
fuel and food. The increase in the Debt Service function is related to additional debt issued. Bonds approved
in fiscal year 2005 totaling $285.7 million have all been issued during the last four fiscal years. The $5.3
million increase in bond principal and interest is a result of the additional debt issued. Several other functions
have less significant increases that combine for a total increase of $38.4 million. The combination of these
large variances results in the net decrease in Governmental fund expenditures of $44.5 million.
The governmental funds reported a combined fund balance of $271,759,572. The net decrease in the
combined fund balance of $10,076,293 is comprised of several changes in fund balance. Increases occurred
in the current year fund balance in the Debt Service Fund of $1,534,572 and the Other non-major funds of
$1,407,682. Decreases were seen in the General Fund of $4,450,767 and in the Capital Projects fund of
$8,567,780 as a result of decreased construction activity. Out of the combined fund balances, $122,252,313
constitutes unreserved, undesignated fund balance available for the general operations of the District.
The remainder of the fund balance is reserved, designated or reported in specific funds to indicate that it is
not available for new spending because it has already been committed. Reservations, designations and
balances reported in specific funds as of June 30, 2008 consist of:
As of 6/30/08
Reservations:
Inventories
Prepaid Items
Designations:
Encumbrances
Other Purposes
Reported in:
Debt Service Fund
Capital Project Fund
Special Revenue Fund
As of 6/30/07
$
$
1,158,570
1,171,747
$
$
1,134,070
1,432,429
$
$
3,840,319
3,569,745
$
$
5,354,416
2,153,260
$
$
$
40,718,349
89,666,307
9,382,222
$
$
$
39,183,777
98,234,087
8,397,000
The General Fund is the primary operating fund of the District. At the end of the current fiscal year,
unreserved, undesignated fund balance of the General Fund was $122,252,313. Unreserved, undesignated
fund balance available for the general operations of the District represents 25.2% of the total general fund
expenditures, while total fund balance represents 27.1% of the same amount.
The Capital Project Fund has a total fund balance of $89,666,307. This entire amount is committed for future
construction. The fund balance decreased by $8,567,780 as a result of construction activity during the year
and the completion of several projects.
11
The Special Revenue Funds have a total fund balance of $10,152,990. Unreserved and undesignated funds
total $9,382,222. Sixty-one percent of the total fund balance is from activity in the Food Service Fund. The
remaining thirty-nine percent is related to several miscellaneous local grants.
The Debt Service fund balance increased by $1.5 million due to an increase in appraised property values of
5.96%. The District’s semi-annual debt payment of $18 million is due in mid-August and was as of June 30
neither expended nor accrued.
Proprietary Funds—The District maintains both enterprise funds and internal service funds. Information is
presented separately in the proprietary fund statement of net assets and in the proprietary fund statement of
revenues, expenses and changes in fund net assets for the Enterprise Fund and the Internal Service Funds.
Net assets in the Enterprise Fund as of June 30, 2008 were $(30,456). Of this amount, $1,089, represents
the investment in capital assets. Net assets for the 2008 year decreased by $(64,580). Net assets in the
Internal Service Funds as of June 30, 2008 were $19,545,000. The majority of this amount is unrestricted to
be used for future expenses of the health benefits and workers compensation internal service funds. Net
assets for the 2008 year remained basically constant with only a minimal decrease of $40,747. The District
continues to closely monitor our health plan and continues to use a PPO network with discounts provided to
employees.
General Fund Budgetary Highlights
For the General Fund, the final budgeted amount for revenues was $479,430,512. This was a decrease of
$15.9 million from the original budget estimate of $495,319,252. Local tax revenue was amended for an
increase in tax revenue of $12 million due to certified property values coming in higher than the preliminary
values on which the original budget was based. This budget increase to local revenue was offset by the
reclassification during the year of the after school care and employee child care programs to the Enterprise
fund. Revenues originally budgeted for these programs in the General Fund amounted to $7.8 million.
Budget amendments to state revenue based on state funding formula driven allocations created a decrease
of $22.4 million that was due to adjustments made in the final details of the State school finance law. The
majority of the decrease in State Revenue is offset by a corresponding decrease of $15.1 million in the
expenditure category for Contracted Instructional Services Between Schools. The decrease in budgeted
federal revenue is due to the District withdrawing from the MAC program during fiscal year 2008.
Over the course of the period, the District revised its budget several times. These adjustments resulted in
actual expenditures $15,043,297 below final budgeted amounts. The most significant positive variances
were seen in the functional areas of Contracted Instructional Services, Facilities Maintenance, Instruction
and Instructional Resources. Staffing is budgeted at the full employment level throughout the entire year.
Budget amounts for vacant positions throughout the year are not eligible for budget revisions and contribute
to the variance between budgeted salaries and actual salaries. A final one time adjustment to settle up with
prior year school district partners for the purchase of nonresident students to educate resulted in lower
expenditures for Contracted Instructional Services of $1.1 million. Contracted services for utilities and facility
management services were $2.5 million below budget. Expenditures were well within budget in the supply
object of expenditure as well. The expenditure budget variance represents less than a 3% variance on the
total expenditure budget of $499.4 million.
12
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The District had invested $765,065,370 net of depreciation, in a broad range of capital assets, including land,
equipment, buildings, and Construction in Progress. This amount represents a net increase (including
additions, retirements and depreciation) of $24.5 million over last year.
District's Capital Assets
Land and improvements
Buildings and improvements
Construction in Progress
Furniture, Equipment, & Vehicles
Totals
$
Total accumulated depreciation
Net capital assets
As of 6/30/08
93,088,845
886,009,000
25,025,292
74,596,668
1,078,719,805
$
(313,654,435)
$
765,065,370
As of 6/30/07
87,829,986
833,336,800
34,523,944
69,488,787
1,025,179,517
(284,612,528)
$
740,566,989
The year’s major capital asset additions include the fine arts addition at Plano East Senior High, a science
addition at Bowman Middle School and a press box addition at Clark Stadium along with the completion of
major renovations at Davis Elementary, Mathews Elementary, Carlisle Elementary and the Administration
Building. Kitchen and HVAC improvements were completed at three elementary schools and one middle
school along with roof replacements at three facilities and flooring projects at three campuses. Additionally,
the District purchased a facility to serve as the new Employee Child Care Center. More detailed information
about the District’s capital assets is presented in Note 5 to the financial statements.
Debt Administration and Bond Ratings
Debt-management policies seek to provide the most favorable climate for District debt projects while
upholding the highest rating possible for debt instruments. Management policies include the following points:
•
•
•
•
•
•
All debt service obligations will be met when due.
Long-term financing will be restricted to capital projects and capital equipment acquisition.
Long-term bonds will not be issued to finance current operations.
The District will cooperate and communicate with bond-rating agencies and work towards
obtaining the most favorable municipal bond rating possible.
Outstanding obligations will be reviewed frequently to ensure the most favorable funding structure
for the District.
All necessary information and material regarding the District’s financial status will be provided to
the appropriate parties.
As of June 30, 2008, the District had total bonded debt outstanding of $838,042,984. The ratio of net
general bonded debt to assessed valuation and the amount of bonded debt per capita are useful indicators
of the District's debt position. From data presented in the statistical section both of these indicators
decreased minimally. Bonded debt per capita decreased to $2,310 and the ratio of net bonded debt to
assessed value decreased slightly to 2.5 percent.
The District has authorized unissued bonds as of June 30, 2008 in the amount of $490,000,000. On May 10,
2008 the District held a bond election to authorize the $490,000,000 of bonds. The fourth and final bond sale
from the August 2004 authorization took place on February 5, 2008. The District continues to enjoy excellent
bond ratings. The “AAA” long-term rating on the District’s bonds reflects the Texas Permanent Fund
guarantee. The latest review by the rating agencies was made in late January and early February 2008,
13
when the District issued $58,280,000 against the approved 2004 bond authorization. Moody's Investors
Service, Inc. assigned an underlying rating of Aa1 while Standard and Poor's Corporation assigned an
underlying rating of AA with a stable outlook to the District's debt obligations.
Interest earnings on proceeds from debt are subject to arbitrage regulations contained in the Federal Tax
Reform Act of 1986. As of June 30, 2008 a liability for arbitrage rebate in the amount of $1,136,676 has been
recorded in the liability section on the Governmental-Wide Statement of Net Assets.
Amounts included for compensated absences include accrued vacation according to the District's leave
policy. Employees who terminate their employment may be paid accrued vacation not to exceed 40 days
carryover plus the current-year vacation allocation. More detailed information about the District’s general
long-term debt is presented in Note 7 to the financial statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
The appraised local tax value used for the 2008-09 budget increased by $2 billion or 6.2% from last year.
The District’s weighted average daily attendance (WADA) is expected to be 61,917 reflecting a slight
increase from the final WADA of 61,869 for 2007-08. Several renovations to existing schools are in progress
as well as the construction of a new early childhood school for the east cluster of the District.
These factors were taken into account when adopting the General Fund budget for 2009. Amounts available
for appropriation in the general fund budget are $493,953,071, an increase of $8.1 million over the adopted
budget for 2007-08. Significant new legislation passed in special session by the Legislature in 2006 has
been in effect for fiscal years 2007 and 2008 and continues for 2009. The legislation is structured on the
basis of a target revenue amount based on the 2005-06 revenues received by the District. In fiscal year
2008, additional new provisions reduced the local maintenance and operating property tax rates by an
additional $0.33 per taxable $100 of value. Districts have local enrichment options up to $0.17 with the first
four cents requiring only school board approval, the remaining $0.13 require voter approval. The District
elected to exercise two cents of the local enrichment cents available in 2008 and has elected to exercise the
remaining two cents in 2009. Property values continue to increase. Tax revenue is budgeted $10.9 million
over actual tax revenue received for fiscal year 2008. State revenue budgeted remains at a level consistent
with actual revenue received in fiscal year 2008.
Expenditures are budgeted to increase by $8.9 million. The primary increase for 2008 is an increase in
salaries and benefits of $16.9 million. Contracted Services show an increase in anticipated expenditures of
$3.2 million due to increases in utility cost and the reclassification of printing cost from supplies to this
category. Instructional supplies reflect a decrease of $924,000 which offsets with the increase in Contracted
Services for printing. Increases in the daily operational expenditures of $18.4 million are offset by a $9.5
million decrease in the District’s recapture payment due to the continued restructuring of the state school
finance funding formula. The District continues to operate a tightly controlled budget. Academic initiatives
focus on closing the achievement gap and ensuring learning for all students through high standards,
integrated technology and district-wide coherent curriculum. Several revenue generating programs have
been implemented. The District continues with its after-school care program and marketing of athletic
events. When combined, these initiatives will contribute approximately $1.6 million to the General Fund
budget.
CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a
general overview of the District’s finances and to demonstrate the District’s accountability for the money it
receives. If you have questions about this report or need additional financial information, contact the
Executive Director for Financial Services or the Accounting/Budget Director, at 2700 W. 15th Street, Plano,
Texas 75075, or call (469) 752-8118 or 8115.
14
BASIC FINANCIAL STATEMENTS
EXHIBIT A-1
PLANO INDEPENDENT SCHOOL DISTRICT
STATEMENT OF NET ASSETS
JUNE 30, 2008
2
1
3
Primary Government
Data
Control
Codes
ASSETS
Cash and Investments
Property Taxes Receivable (Delinquent)
Allowance for Uncollectible Taxes
Due from Other Governments
Accrued Interest
Internal Balances
Other Receivables, net
Inventories
Deferred Expenses
Capitalized Bond and Other Debt Issuance Costs
Other Current Assets
Capital Assets:
1510
Land
1520
Buildings, Net
1530
Furniture and Equipment, Net
1540
Other Capital Assets, Net
1580
Construction in Progress
1110
1220
1230
1240
1250
1260
1290
1300
1410
1420
1490
1000
Business
Type
Activities
Governmental
Activities
$
Total Assets
374,579,356
12,281,253
(3,747,385)
6,849,634
2,266,168
31,405
945,628
1,158,570
1,409,130
1,660,754
25,000
$
Total
69,568
12,758
(31,405)
225,092
-
$
374,648,924
12,281,253
(3,747,385)
6,849,634
2,278,926
1,170,720
1,158,570
1,409,130
1,660,754
25,000
65,720,890
620,622,585
30,701,819
22,993,695
25,025,292
1,089
-
65,720,890
620,622,585
30,702,908
22,993,695
25,025,292
1,162,523,794
277,102
1,162,800,896
14,703,461
13,783,485
2,343,994
40,991,004
32,735,567
5,569,555
1,000,025
7,959
35,864
263,735
14,711,420
13,783,485
2,343,994
41,026,868
32,735,567
5,569,555
1,263,760
LIABILITIES
Accounts Payable
Interest Payable
Payroll Deductions & Withholdings
Accrued Wages Payable
Due to Other Governments
Accrued Expenses
Deferred Revenues
Noncurrent Liabilities
2501
Due Within One Year
2502
Due in More Than One Year
51,152,848
796,299,544
2000
958,579,483
307,558
958,887,041
10,868,217
1,089
10,869,306
6,204,055
28,440,283
158,431,756
(31,545)
6,204,055
28,440,283
158,400,211
2110
2140
2150
2160
2180
2200
2300
Total Liabilities
NET ASSETS
Invested in Capital Assets, Net of Related Debt
Restricted for:
3840
Restricted for Food Service
3850
Restricted for Debt Service
3900 Unrestricted Net Assets
3200
3000
Total Net Assets
$
203,944,311
The notes to the financial statements are an integral part of this statement.
17
-
$
(30,456)
51,152,848
796,299,544
$
203,913,855
PLANO INDEPENDENT SCHOOL DISTRICT
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2008
Program Revenues
3
4
Charges for
Services
Operating
Grants and
Contributions
1
Data
Control
Codes
Expenses
Primary Government:
GOVERNMENTAL ACTIVITIES:
11
12
13
21
23
31
32
33
34
35
36
41
51
52
53
61
72
73
81
91
92
93
95
97
Instruction
Instructional Resources and Media Services
Curriculum and Instructional Staff Development
Instructional Leadership
School Leadership
Guidance, Counseling and Evaluation Services
Social Work Services
Health Services
Student (Pupil) Transportation
Food Services
Extracurricular Activities
General Administration
Plant Maintenance and Operations
Security and Monitoring Services
Data Processing Services
Community Services
Debt Service - Interest on Long Term Debt
Debt Service - Bond Issuance Cost and Fees
Other Facility Costs
Contracted Instructional Services Between Schools
Incremental Costs Associated with Chapter 41
Payments to Fiscal Agent/Member Districts of SSA
Payments to Juvenile Justice Alternative Ed. Prg.
Payments to Tax Increment Fund
$
[TG] Total Governmental Activities:
299,556,681
10,103,562
8,763,573
3,775,529
22,575,058
16,328,619
1,265,989
4,620,060
10,903,302
19,304,096
8,482,375
11,467,603
43,517,995
2,943,569
8,383,646
1,220,347
37,532,575
134,483
13,569,067
81,036,482
650,140
718,665
158,415
4,600,982
$
5,271,947
512,219
42,186
10,547
11,679,525
1,481,572
48,159
1,538,762
145,129
-
$
34,641,246
443,556
1,837,308
961,157
1,537,176
1,832,250
365,488
506,012
536,200
6,818,309
737,113
608,537
567,783
251,494
338,919
874,255
493,165
-
611,612,813
20,730,046
53,349,968
327,988
31,687
5,454,778
261,665
11,195
7,462,601
-
5,814,453
7,735,461
-
BUSINESS-TYPE ACTIVITIES:
01 Concessions
02 Employee Child Care
03 After School Care
[TB] Total Business-Type Activities:
[TP] TOTAL PRIMARY GOVERNMENT:
$
Data
Control
Codes
MT
DT
GC
IE
MI
FR
TR
617,427,266
$
28,465,507
General Revenues:
Taxes:
Property Taxes, Levied for General Purposes
Property Taxes, Levied for Debt Service
Grants and Contributions not Restricted
Investment Earnings
Miscellaneous Local and Intermediate Revenue
Transfers In (Out)
Total General Revenues and Transfers
CN
NB
Change in Net Assets
Net Assets--Beginning
NE
Net Assets--Ending
The notes to the financial statements are an integral part of this statement.
18
$
53,349,968
EXHIBIT B-1
Net (Expense) Revenue and
Changes in Net Assets
6
7
8
Governmental
Activities
Primary Government
Business Type
Activities
Total
$ (259,643,488)
(9,660,006)
(6,414,046)
(2,772,186)
(21,037,882)
(14,485,822)
(900,501)
(4,114,048)
(10,367,102)
(806,262)
(6,263,690)
(10,810,907)
(41,411,450)
(2,692,075)
(8,044,727)
(200,963)
(37,532,575)
(134,483)
(13,569,067)
(81,036,482)
(650,140)
(225,500)
(158,415)
(4,600,982)
$
(537,532,799)
$
-
(259,643,488)
(9,660,006)
(6,414,046)
(2,772,186)
(21,037,882)
(14,485,822)
(900,501)
(4,114,048)
(10,367,102)
(806,262)
(6,263,690)
(10,810,907)
(41,411,450)
(2,692,075)
(8,044,727)
(200,963)
(37,532,575)
(134,483)
(13,569,067)
(81,036,482)
(650,140)
(225,500)
(158,415)
(4,600,982)
(537,532,799)
-
(66,323)
(20,492)
2,007,823
(66,323)
(20,492)
2,007,823
-
1,921,008
1,921,008
1,921,008
(535,611,791)
333,527,222
82,904,880
105,742,055
15,715,160
5,007,973
2,054,388
68,800
(2,054,388)
333,527,222
82,904,880
105,742,055
15,783,960
5,007,973
-
544,951,678
(1,985,588)
542,966,090
7,418,879
196,525,432
(64,580)
34,124
7,354,299
196,559,556
(537,532,799)
$
-
203,944,311
$
(30,456)
$
203,913,855
19
PLANO INDEPENDENT SCHOOL DISTRICT
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2008
Data
10
General
Fund
Control
Codes
1110
1220
1230
1240
1250
1260
1290
1300
1410
ASSETS
Cash and Investments
Property Taxes - Delinquent
Allowance for Uncollectible Taxes (Credit)
Due from Other Governments
Accrued Interest
Due from Other Funds
Other Receivables
Inventories
Prepaid Expenditures
1000
Total Assets
2110
2150
2160
2170
2180
2300
2430
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts Payable
Payroll Deductions and Withholdings Payable
Accrued Wages Payable
Due to Other Funds
Due to Other Governments
Deferred Revenues
Accrued Interest Payable
2000
Total Liabilities
3600
3610
3620
3640
Fund Balances:
Reserved For:
Investments in Inventory
Prepaid Expenditures
Unreserved Designated For:
Oustanding Encumbrances General Fund
Outstanding Encumbrances Special Revenue
Other Purposes General Fund
Unreserved and Undesignated:
Reported in the General Fund
Reported in Special Revenue Funds
Reported in Capital Projects Funds
Reported in Debt Service Funds
3000
Total Fund Balances
3410
3430
3550
3551
3590
4000 Total Liabilities and Fund Balances
60
Capital
Projects
$
177,151,022 $
10,229,182
(3,219,781)
2,026,791
1,107,545
30,203,372
592,706
954,708
1,171,747
40,409,347 $
2,052,071
(527,604)
103,130
208,536
2,470
-
120,810,599
764,717
-
$
220,217,292 $
42,247,950 $
121,575,316
$
9,490,016 $
2,343,994
38,766,335
32,697,877
5,697,144
-
$
1,206,105
323,496
4,635,879
27,273,130
-
$
88,995,366 $
1,529,601 $
31,909,009
$
954,708 $
1,171,747
-
3,273,413
3,569,745
-
$
-
122,252,313
-
40,718,349
89,666,307
-
$
131,221,926 $
40,718,349 $
89,666,307
$
220,217,292 $
42,247,950 $
121,575,316
The notes to the financial statements are an integral part of this statement.
20
50
Debt Service
Fund
EXHIBIT C-1
Other
Funds
Total
Governmental
Funds
$
11,247,446 $
4,719,713
36,968
314,201
203,862
-
349,618,414
12,281,253
(3,747,385)
6,849,634
2,117,766
30,203,372
909,377
1,158,570
1,171,747
$
16,522,190 $
400,562,748
$
242,707 $
2,224,063
2,898,837
37,690
965,903
-
14,368,602
2,343,994
40,990,398
30,171,967
32,735,567
7,869,152
323,496
$
6,369,200 $
128,803,176
$
203,862 $
-
1,158,570
1,171,747
566,906
-
3,273,413
566,906
3,569,745
9,382,222
-
122,252,313
9,382,222
89,666,307
40,718,349
$
10,152,990 $
271,759,572
$
16,522,190 $
400,562,748
21
EXHIBIT C-2
PLANO INDEPENDENT SCHOOL DISTRICT
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE
STATEMENT OF NET ASSETS
JUNE 30, 2008
Total Fund Balances - Governmental Funds
$
1 Capital assets used in governmental activities (exluding internal service) are not
765,022,239
financial resources and therefore are not reported in governmental funds. The cost of
these assets is $1,078,653,220 and the accumulated depreciation is $313,630,981.
2 Uncollected property taxes are reported as deferred revenue in the governmental funds
6,869,127
balance sheet but are recognized as a revenue in the statement of activities.
3 The District uses internal service funds to charge the costs of certain activities, such as
19,545,000
self-insurance and printing, to appropriate functions in other funds. The assets and
liabilities of the internal service funds (including net capital assets of $42,042) are
included in governmental activities in the statement of net assets. The net effect of this
consolidation is to increase(decrease) net assets.
4 Long-term liabilities of $867,345,524 are not due and payable in the current period and
(847,452,392)
therefore are not reported as liabilities in the funds. Losses on advanced refunding of
bonds payable of $19,893,132 are netted against the long-term liabilities in the statement
of net assets and as an other use in the governmental funds.
5 Interest payable is not due and payable in the current period and therefore is not
(13,459,989)
reported as a liability in the governmental funds.
6 Bond issuance costs are reported in the governmental funds as an expenditure and the
1,660,754
costs net of amortization are reported as an assets in the statement of net assets.
19 Net Assets of Governmental Activities
$
The notes to the financial statements are an integral part of this statement.
23
271,759,572
203,944,311
PLANO INDEPENDENT SCHOOL DISTRICT
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
10
General
Fund
Data
Control
Codes
50
Debt Service
Fund
60
Capital
Projects
REVENUES:
5700
5800
5900
Total Local and Intermediate Sources
State Program Revenues
Federal Program Revenues
$
$
478,740,945
Total Revenues
5020
354,871,773
123,519,265
349,907
84,235,632
-
$
84,235,632
4,873,911
4,873,911
EXPENDITURES:
Current:
0011
0012
0013
0021
0023
0031
0032
0033
0034
0035
0036
0041
0051
0052
0053
0061
Instruction
Instructional Resources and Media Services
Curriculum and Instructional Staff Development
Instructional Leadership
School Leadership
Guidance, Counseling and Evaluation Services
Social Work Services
Health Services
Student (Pupil) Transportation
Food Services
Extracurricular Activities
General Administration
Facilities Maintenance and Operations
Security and Monitoring Services
Data Processing Services
Community Services
260,428,688
9,144,988
7,090,120
2,861,065
21,488,647
15,046,656
952,483
4,242,582
10,107,248
6,412,126
11,053,985
40,021,743
2,641,969
5,990,679
168,883
-
-
Debt Service:
0071
0072
0073
Debt Service - Principal on Long Term Debt
Debt Service - Interest on Long Term Debt
Debt Service - Bond Issuance Cost and Fees
-
48,480,000
38,746,659
396,914
-
Capital Outlay:
0081
Facilities Acquisition and Construction
53,009
-
81,036,482
650,140
225,500
158,415
4,600,982
-
66,293,484
Intergovernmental:
0091
0092
0093
0095
0097
6030
Contracted Instructional Services Between Schools
Incremental Costs Associated with Chapter 41
Payments to Fiscal Agent/Member Districts of SSA
Payments to Juvenile Justice Alternative Ed. Prg.
Payments to Tax Increment Fund
Total Expenditures
1100
Excess (Deficiency) of Revenues Over (Under)
Expenditures
7901
7911
7915
7916
8911
8949
Refunding Bonds Issued
Capital Related Debt Issued
Transfers In
Premium or Discount on Issuance of Bonds
Transfers Out (Use)
Payment to Bond Refunding Escrow Agent
-
484,376,390
87,623,573
66,293,484
(5,635,445)
(3,387,941)
(61,419,573)
2,074,880
(890,202)
-
33,305,000
6,302,407
1,613,921
(36,298,815)
58,280,000
874,200
(6,302,407)
-
1,184,678
4,922,513
52,851,793
1,534,572
39,183,777
(8,567,780)
98,234,087
OTHER FINANCING SOURCES (USES):
7080
Total Other Financing Sources (Uses)
1200
0100
Net Change in Fund Balances
Fund Balance - July 1 (Beginning)
3000
Fund Balance - June 30 (Ending)
(4,450,767)
135,672,693
$
The notes to the financial statements are an integral part of this statement.
24
131,221,926
$
40,718,349
$
89,666,307
EXHIBIT C-3
Total
Governmental
Funds
Other
Funds
$
$
17,056,753 $
8,696,689
22,474,981
461,038,069
132,215,954
22,824,888
48,228,423
616,078,911
22,012,521
21,916
1,497,266
948,918
379,940
1,093,398
314,906
302,507
203,960
17,881,865
486,564
229,103
429,763
183,861
175,907
1,034,891
282,441,209
9,166,904
8,587,386
3,809,983
21,868,587
16,140,054
1,267,389
4,545,089
10,311,208
17,881,865
6,898,690
11,283,088
40,451,506
2,825,830
6,166,586
1,203,774
-
48,480,000
38,746,659
396,914
-
66,346,493
493,165
-
81,036,482
650,140
718,665
158,415
4,600,982
47,690,451
685,983,898
537,972
(69,904,987)
869,710
-
33,305,000
58,280,000
9,246,997
2,488,121
(7,192,609)
(36,298,815)
869,710
59,828,694
1,407,682
8,745,308
(10,076,293)
281,835,865
10,152,990 $
271,759,572
25
EXHIBIT C-4
PLANO INDEPENDENT SCHOOL DISTRICT
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2008
Total Net Change in Fund Balances - Governmental Funds
$
(10,076,293)
Governmental funds report capital outlays as expenditures. In the statement of activities,
the cost of those assets is allocated over the estimated useful lives as depreciated
expense. This is the amount by which capital outlays of $53,886,693 exceeded
depreciation of $29,322,508 in the current period, net of the loss on disposition of assets
of $60,107. Certain expenditures are reported in the Facilities Acquisiton and
Construction category which are under the capitalization threshold of $5,000 and
therefore are not considered capital outlay.
24,504,078
Repayment of principal and other long-term debt is an expenditure in the governmental
funds, but the repayment reduces long-term liabilities in the statement of net assets and is
not an expense in the current period. This amount represents the following: current year
principal payments $48,480,000, bond issuance costs $262,431, advanced bond refunding
$36,055,000, and loss on advanced refunding $243,815; annual premium amortization
$3,383,548; and net of adjustment to arbitrage liablity $170,111, accretion $412,395, bond
cost amortization $109,319 and amortization of bond refunding $1,477,579.
86,255,390
Some property taxes will not be collected for several months after the fiscal year ends,
therefore they are not considered available revenues and are deferred in the
governmental funds. Deferred tax revenues, net of bad debt, increased (decreased) by
this amount.
389,678
Interest on long-term debt in the statement of activities differs from the amount reported
in the governmental funds because interest is recognized as an expenditure in the funds
when it is due and thus requires the use of current financial resources. In the statement
of activities, interest expense is recognized as the interest accrues, regardless of when it
is due.
(170,171)
In the statement of activities, compensated absences are measured by the amounts
earned during the year. In the governmental funds, expenditures for these items are
measued by the amount of financial resources used. This year, compensated absences
used exceeded the amounts earned.
630,065
The District uses internal service funds to charge the costs of certain activities, such as
self-insurance and printing, to appropriate functions in other funds. The net income
(loss) of internal service funds are reported with governmental activities. The net effect
of this consolidation is to increase (decrease) net assets.
(40,747)
Proceeds of bonds including premium issued during the year are recognized as an Other
Financing Source in the governmental funds but increases the bond payable liablity and
bond refunding reduces the bond payable liablity in the statement of net assets.
(94,073,121)
Change in Net Assets of Governmental Activities
The notes to the financial statements are an integral part of this statement.
26
$
7,418,879
EXHIBIT D-1
PLANO INDEPENDENT SCHOOL DISTRICT
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JUNE 30, 2008
ASSETS
Current Assets:
Cash and Investments
Accrued Interest
Other Receivables
Deferred Expenses
Other Current Assets
$
Business-Type
Activities -
Governmental
Activities -
Total
Enterprise
Funds
Total
Internal
Service Funds
69,568
12,758
225,092
-
$
24,960,942
148,402
36,251
237,383
25,000
307,418
25,407,978
5,445
(4,356)
61,140
(19,098)
1,089
42,042
308,507
25,450,020
LIABILITIES
Current Liabilities:
Accounts Payable
Accrued Wages Payable
Due to Other Funds
Accrued Expenses
Deferred Revenues
7,959
35,864
31,405
263,735
334,859
606
5,569,555
-
Total Liabilities
338,963
5,905,020
1,089
(31,545)
42,042
19,502,958
Total Current Assets
Noncurrent Assets:
Capital Assets:
Furniture and Equipment
Depreciation on Furniture and Equipment
Total Noncurrent Assets
Total Assets
NET ASSETS
Investments in Capital Assets
Unrestricted Net Assets
Total Net Assets
$
The notes to the financial statements are an integral part of this statement.
27
(30,456)
$
19,545,000
EXHIBIT D-2
PLANO INDEPENDENT SCHOOL DISTRICT
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
Business-Type
Activities -
Governmental
Activities -
Total
Enterprise
Funds
Total
Internal
Service Funds
OPERATING REVENUES:
Local and Intermediate Sources
$
Total Operating Revenues
7,735,461
$
36,544,264
7,735,461
36,544,264
4,414,878
197,243
738,921
463,411
1,019,015
32,381,977
509,821
3,630,086
5,814,453
37,540,899
1,921,008
(996,635)
68,800
955,888
68,800
955,888
1,989,808
(40,747)
OPERATING EXPENSES:
Payroll Costs
Professional and Contracted Services
Supplies and Materials
Other Operating Costs
Total Operating Expenses
Operating Income (Loss)
NONOPERATING REVENUES (EXPENSES):
Earnings from Temporary Deposits & Investments
Total Nonoperating Revenues (Expenses)
Income (Loss) Before Transfers
Transfer In
Transfers Out
20,492
(2,074,880)
Change in Net Assets
Total Net Assets - July 1 (Beginning)
Total Net Assets - June 30 (Ending)
$
The notes to the financial statements are an integral part of this statement.
28
-
(64,580)
(40,747)
34,124
19,585,747
(30,456)
$
19,545,000
EXHIBIT D-3
PLANO INDEPENDENT SCHOOL DISTRICT
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
Business-Type
Activities
Cash Flows from Operating Activities:
Cash Received from User Charges
Cash Payments to Employees for Services
Cash Payments for Insurance Claims
Cash Payments for Suppliers
Cash Payments for Other Operating Expenses
Net Cash Provided by (Used for) Operating
Activities
$
Governmental
Activities -
Total
Total
Enterprise
Internal
Funds
Service Funds
7,763,904
(4,401,285)
(895,348)
(462,866)
$
2,004,405
Cash Flows from Non-Capital Financing Activities:
Operating Transfer In
Operating Transfer Out
Net Cash Used for Non-Capital
Financing Activities
36,982,518
(1,018,408)
(31,856,139)
(1,466,193)
(3,827,044)
(1,185,266)
20,492
(2,074,880)
-
(2,054,388)
-
Cash Flows from Investing Activities:
Purchase of Investment Securities
Proceeds from Sale & Maturities of Securities
Interest and Dividends on Investments
Net Cash Provided by Investing
Activities
24,463
56,133
(29,575)
885,812
878,539
80,596
1,734,776
Net Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of the Year:
30,613
24,331
549,510
15,147,343
Cash and Cash Equivalents at the End of the Year:
54,944
15,696,853
Temporary Investment Not in Cash Equivalents
14,624
9,264,089
$ 24,960,942
Cash on Balance Sheet:
$
69,568
Reconciliation of Operating Income (Loss) to Net Cash
Provided by (Used for) Operating Activities:
Operating Income (Loss):
$
1,921,008
Adjustments to Reconcile Operating Income
to Net Cash Provided by (Used For) Operating Activities:
Depreciation
Effect of Increases and Decreases in Current
Assets and Liabilities:
Decrease (increase) in Receivables
Decrease (increase) in Prepaid Expenses
Increase (decrease) in Accounts Payable
Increase (decrease) in Accrued Wages Payable
Increase (decrease) in Deferred Revenues
Increase (decrease) in Accrued Expenses
Increase (decrease) in Due to Other Funds
Net Cash Provided by (Used for)
Operating Activities
The notes to the financial statements are an integral part of this statement.
29
$
$
(996,635)
544
5,153
(45,695)
9,412
13,593
74,138
31,405
438,254
245,969
(1,051,789)
606
173,176
-
2,004,405
$ (1,185,266)
EXHIBIT E-1
PLANO INDEPENDENT SCHOOL DISTRICT
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
JUNE 30, 2008
Agency
Funds
ASSETS
$
Investments - Current
3,187,958
Accrued Interest
1,211
Other Receivables
5,189
Total Assets
$
3,194,358
LIABILITIES
Accounts Payable
$
41,559
3,152,799
Due to Student Groups
Total Liabilities
$
The notes to the financial statements are an integral part of this statement.
30
3,194,358
PLANO INDEPENDENT SCHOOL DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Plano Independent School District (“District”) is an independent school district governed by the Board of
Trustees (“Board”), composed of seven Board Members, all of whom are elected officials. The Board is the
basic level of government which has responsibility and control over all activities related to the public school
education in the city of Plano and portions of the cities of Richardson, Dallas, Murphy, Parker, Carrollton and
Allen which lie within the District’s boundaries. The Board receives funding from local, state and federal
government sources and must comply with the requirements of these funding source entities. However, the
Board is not included in any other governmental “reporting entity,” as defined in pronouncements by the
Governmental Accounting Standards Board (“GASB”) Statement No. 14, The Reporting Entity. The District
implemented GASB Statement No. 39, Determining Whether Certain Organizations Are Component Units –
an amendment of GASB Statement No. 14, and it was determined that there are no component units and
there is no effect on the financials.
GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The Statement of Net Assets and the Statement of Activities report information on all of the nonfiduciary
activities of the District. The effect of interfund activity has been removed from these statements.
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are
reported separately from business-type activities, which rely to a significant extent on fees and charges for
support.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function are
offset by program revenues. Program revenues include (1) charges to customers or applicants for goods,
services, or privileges provided, (2) operating grants and contributions, and (3) capital grants and
contributions. Program revenues included in the Statement of Activities reduce the cost of the function to be
financed from General Revenues. Taxes and other items not properly identified as program revenues are
reported instead as general revenues.
The District reports all direct expenses by function in the Statement of Activities. Direct expenses are those
clearly identifiable with a function. Depreciation expense is specifically identified by function and is included
in the direct expense to each function.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds. In
accordance with the provisions of GASB Statement No. 34, the fiduciary funds are excluded from the
government-wide financial statements. Major individual governmental funds are reported as separate
columns in the fund financial statements.
MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION
Government-Wide Financial Statements--The government-wide financial statements, as well as the agency
and proprietary fund statements, are reported using the economic resources measurement focus and the
accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability
is incurred, regardless of the timing of the related cash flows. Property taxes are recognized as revenues in
the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the grantor have been met. All interfund transactions between governmental funds
are eliminated on the government-wide statements. Interfund activities between governmental and fiduciary
funds remain as due to/due froms on the government-wide Statement of Activities.
Fund Financial Statements--Governmental fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as
31
soon as they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current period. Property
taxes are considered to be available if collected within 60 days of the fiscal year end. Expenditures generally
are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures
are recorded when payments are due. Proprietary fund financial statements are reported using the accrual
basis of accounting. Revenues are recorded when earned and expenses are recorded when the liability is
incurred. All other revenue items are considered measurable and available only when cash is received by
the District. For proprietary funds, the District applies all GASB pronouncements as well as the Financial
Accounting Standards Board pronouncements issued on or before November 30, 1989, unless those
pronouncements conflict with or contradict GASB pronouncements.
Funds
The District reports its financial activities through the use of “fund accounting”. The activities of the District
are organized on the basis of funds. The operations of each fund are accounted for within a separate set of
self-balancing accounts to reflect results of activities. Fund accounting segregates funds according to their
intended purpose and is used to assist management in demonstrating compliance with finance-related legal
and contractual provisions. As required by the Texas Education Agency, the following fund types are included
in the financial statements:
Governmental Funds
Governmental Funds are those through which most governmental functions of the District are financed. The
acquisition, use and balances of the District's expendable financial resources and the related liabilities are
accounted for through the Governmental Fund Types. The following are the District's major governmental
funds:
ƒ
General Fund - The General Fund is the general operating fund of the District and accounts for all
revenues and expenditures of the District not encompassed within other funds. All general tax
revenues and other receipts that are not allocated by law or contractual agreement to some other
fund are accounted for in this fund. General operating expenses and the capital improvement
costs that are not paid through other funds are paid from the General Fund.
ƒ
Debt Service Fund - The Debt Service Fund is used to account for the accumulation of resources
for, and the retirement of, long-term debt and related costs.
ƒ
Capital Projects Fund - The Capital Projects Fund is used to account for financial resources to be
used for the acquisition, renovation or construction of capital facilities. Proceeds are received
through long-term debt financing and other authorized sources.
Other governmental funds include:
ƒ
Special Revenue Funds - The Special Revenue Funds are used to account for the proceeds of
specific revenue sources (other than private-purpose trust funds or capital projects) such as
federal, state or locally financed programs where unused balances are returned to the grantor at
the close of specified project periods. Funds are legally restricted to expenditures for specified
purposes.
Proprietary Funds
Proprietary Funds are used to account for operations that are financed in a manner similar to those found in
the private sector, where the determination of net income is appropriate for sound financial administration.
ƒ
Enterprise Funds - The Enterprise Funds are used to account for operations that are financed and
operated in a manner similar to a private enterprise where the District's intent is to provide services
financed primarily through user charges. In prior years, the District’s only enterprise fund was used
to account for concession sales. Beginning in fiscal year 2008, the District began accounting for
the Employee Child Care and the After School Care funds as enterprise funds.
32
ƒ
Internal Service Funds - The Internal Service Funds are used to account for the financing of
services provided by one department to other departments of the District on a cost reimbursement
basis. The print shop, health benefits self-funded, workers’ compensation self-funded, sign shop
and insurance claims self-funded programs of the District are accounted for in these funds.
Accrued liabilities include provisions for claims reported and claims incurred but not reported. The
provision for reported claims is determined by estimating the amount which will ultimately be paid
to each claimant. The provision for claims incurred but not yet reported is estimated based on
District experience since the inception of the programs and data provided by actuarial consultants.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues
and expenses generally result from providing services and producing and delivering goods in connection with
a proprietary fund’s principal ongoing operations. The principal operating revenues of the District’s proprietary
funds are charges to customers for sales and services. Operating expenses for proprietary funds include the
cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as nonoperating revenues and expenses.
Fiduciary Funds
Fiduciary Funds are used to account for assets held by the District in a trustee capacity or as an agent for
individuals, private organizations and/or other funds.
ƒ
Agency Funds - Agency funds are custodial in nature (assets equal liabilities) and do not involve
measurement of results of operations. Agency Funds account for the receipt and disbursement of
monies from student activity organizations and other types of activities requiring clearing accounts.
The student activity organizations exist with the explicit approval of and are subject to revocation by
the District’s Board. This accounting reflects the District’s agency relationship with the student
activity organizations.
ASSETS LIABILITIES, AND NET ASSETS OR EQUITY
Cash and Cash Equivalents
The District’s cash and cash equivalents are considered to be cash on hand, demand deposits, money market
bank sweep accounts, money markets, and short-term investments with original maturities of three months or
less from the date of acquisition.
Investments
Investments with maturities exceeding twelve months at the date of purchase are stated at fair value, which is
the amount at which the investment can be exchanged in a current transaction between willing parties.
Investments with maturities of twelve months or less at the date of purchase are held at amortized cost.
Management of the District believes that in the areas of investment practice, management reports and
establishment of appropriate policies, the District adhered to the requirements of the State of Texas Public
Funds Investment Act. Additionally, management of the District believes that investment practices of the
District were in accordance with local policies.
Receivables and Payables
Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of
the fiscal year are referred to as either “due to/from other funds”. Any residual balances outstanding between
the governmental activities and business-type activities are reported in the government-wide statements as
“internal balances.”
All trade and property tax receivables are shown net of allowance for uncollectibles.
receivable allowance is 30.5% of outstanding property taxes at June 30, 2008.
33
The property tax
Inventories
Inventories of supplies on the balance sheet are stated at weighted average cost. Inventory items are
recorded as expenditures when they are consumed. Supplies are used for almost all functions of activity.
Grant Fund Accounting
The Special Revenue Funds include programs that are financed on a project grant basis. These projects
have grant periods that range from less than twelve months to in excess of two years. Grants are recorded as
revenues when earned. Cost reimbursement grants are considered to be earned to the extent of expenditures
made under the provisions of the grants. Funds received, but not earned, are recorded as deferred revenue
until earned.
Indirect costs earned from grant programs are recorded as revenues of the General Fund. These indirect
costs are determined by applying approved indirect cost rates to actual expenditures of the programs.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure
of funds are recorded in the accounting system in order to reserve the portion of the applicable appropriation,
is employed in the governmental fund financial statements. Encumbrances, which have not been liquidated,
are reported as designations of fund balance since they do not constitute expenditures or liabilities. District
policy requires that such amounts be re-appropriated in the following fiscal year.
Capital Assets
Capital assets, which include land, land improvements, building, building improvements and equipment, are
reported in the applicable governmental activities column in the government-wide financial statements and the
proprietary fund financial statements. Capital assets are recorded at historical cost or estimated historical cost
if purchased or constructed. The capitalization threshold is a unit cost of $5,000. Donated capital assets are
recorded at estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the
life of the asset are not capitalized. Major outlays for capital assets and improvements are capitalized as
projects are constructed.
Building and building improvements of the District are depreciated using the straight-line method beginning in
the year after they are placed in service. Capital assets are depreciated using the straight-line method over
the following estimated useful lives:
Asset Classification
Buildings and Building Improvements
Useful Life
50 years
Vehicles and Buses
10 years
Furniture
20 years
Equipment:
Computers
Kitchen Equipment
Custodial Equipment
Telephone Equipment
Instruction & Misc. Equipment
5 years
10 years
15 years
10 years
10 years
Compensated Absences
Employees of the District are granted vacation and sick leave annually. Teachers do not receive paid
vacations but are paid only for the number of days they are required to work each year. As of June 30, 2008,
the District recorded $2,181,448 in the government-wide financial statements for accrued vacation liabilities.
Full-time employees in positions that require 12 months of service are eligible for two weeks of vacation on
34
July 1 following the first full year of employment. Full-time employees who have not been employed one full
year as of July 1 are eligible to take accrued days after July 1 of that year but shall not be eligible for the full
two weeks until July 1 of the following year. Full-time employees who have completed five years of service in
the District are granted three weeks of vacation per year. Employees in positions that require 12 months of
service may extend accrued vacation time to September 30 each year. Vacation days not used by
September 30 may be carried over, with a maximum accrual of 40 days.
Employees are allowed to accrue five days of state personal leave and seven days of local sick leave each
year without limit. State personal leave and local sick leave do not vest under the District’s policy and
accordingly, employees can only utilize state personal and sick leave when sick, or state personal leave for
personal reasons when approved by their supervisor. Since the employees’ accumulating rights to receive
compensation for future absences are contingent upon the absences being caused by future illnesses and
such amounts cannot be reasonably estimated, a liability for unused sick leave is not recorded in the financial
statements.
Long-term Liabilities
In the government-wide financial statements, long-term debt and other long-term obligations are reported as
liabilities in the Statement of Net Assets. Bond premiums and discounts, as well as issuance costs for bond
issuances beginning in September 2001, are deferred and amortized over the life of the bonds. Bonds
payable are reported inclusive of applicable bond premium or discount. Bond issuance costs are reported as
deferred charges and amortized over the term of the related debt using the straight-line method. Losses on
refunding are capitalized and amortized over the shorter of the life of the new issuance or the life on existing
debt using the effective interest method. Premiums and discounts are amortized over the life of the related
debt using the effective interest method.
In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as
bond issuance costs and deferred losses on refunding as expenditures during the current period. The face
amount of the debt issued is reported as other financing sources. Premiums received on debt issuances are
reported as other financing sources while discounts on debt issuances are reported as other financing uses.
Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service
expenditures.
Fund Balances and Net Assets
Government-Wide Financial Statements
Net assets on the Statement of Net Assets include the following:
Invested in Capital Assets, Net of Related Debt -- the component of net assets that reports the difference
between capital assets less both the accumulated depreciation and the outstanding balance of debt net of
premiums and discounts, excluding unspent proceeds, that is directly attributable to the acquisition,
construction or improvement of these capital assets.
Restricted for Debt Service -- the component of net assets that reports the difference between assets and
liabilities with constraints placed on their use by the bond covenants.
Restricted for Food Service -- the component of net assets that reports the difference between assets and
liabilities with constraints placed on their use by the U.S. Department of Agriculture.
Unrestricted -- the difference between the assets and liabilities that is not reported in Net Assets Invested in
Capital Assets, Net of Related Debt, Net Assets Restricted for Food Service or Net Assets Restricted for
Debt Service.
Governmental Fund Financial Statements
In the fund financial statements, governmental funds report fund balances as either a reserved fund balance
or an unreserved fund balance.
35
Reserved Fund Balance
Reserved fund balance is that portion of fund balance which is not available for appropriation or which has
been legally segregated for specific purposes.
Unreserved Fund Balance
Unreserved fund balance is composed of designated and undesignated portions. The undesignated portion
of the unreserved fund balance represents that portion of fund balance that is available for budgeting in
future periods. Designated fund balances represent tentative plans for future use of financial resources.
The Unreserved Designated for Other Purposes fund balance of $3,569,745 is the balance of the funds
donated to the District by Dr. Pepper to be used for designated curriculum and athletic projects.
Management’s Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of revenues and expenditures during the
reporting period. Actual results could differ from those estimates.
NOTE 2: CASH AND INVESTMENTS
Statutes of the State of Texas and policies mandated by the District’s Board of Trustees authorize the District
to invest in obligations of the U.S. Government or its agencies, repurchase agreements, commercial paper,
public fund investment pools, mutual funds and money market accounts. All cash balances and investments
are held separately in each of its funds.
As of June 30, 2008, the carrying amount of the District’s cash deposits were $155,102 and the bank balance
was $214,068. The District’s cash deposits at June 30, 2008 and during the year ended June 30, 2008 were
entirely covered by FDIC insurance or by pledged collateral held by the District’s bank in the District’s name.
Depository information, required to be reported to the Texas Education Agency, is as follows:
a. Name of depository bank: Bank of America, N.A.
b. Amount of bond or security pledged as of the date of the highest combined balance on deposit was
$51,025,568.
c. Highest cash, savings and time deposits combined account balances amount was $4,321,154 and
occurred on January 3, 2008.
d. Total amount of Federal Deposit Insurance Corporation (“FDIC”) coverage at the time of highest
combined balance was $100,000.
As of June 30, 2008, the District had the following investments:
Market Value
Investment Type
U.S. Agencies
Weighted Average
Maturity (Years)
$256,732,549
0.371
Commercial Paper
63,584,028
0.245
Public Funds Investment Pools
57,335,857
0.003
Total Market Value
$377,652,434
Portfolio weighted average maturity
36
0.293
The market value of investments is $29,345 less than the book value reported by the District. As required by
GASB Statement No. 31, the District recognizes the net unrealized gain/loss on investments with a maturity
date greater than one year from the acquisition date and investments that are callable.
Interest rate risk. In accordance with the District’s investment policy, investments are made in a manner that
ensures the preservation of capital in the overall portfolio, and offsets during a 12-month period any market
price losses resulting from interest-rate fluctuations by income received from the balance of the portfolio. The
District’s policy states that no individual investment transaction shall be undertaken that jeopardizes the total
capital position of the overall portfolio.
Credit risk. State law limits investments in commercial paper to not less than A-1 or P-1 or equivalent rating
by at least two nationally recognized credit rating agencies. As of June 30, 2008, the District had commercial
paper of $63,584,028 in the portfolio. The District’s investments in public funds investment pools and money
market mutual funds include those with TexPool and TexStar. Both are public funds investment pools
operating in full compliance with the Public Funds Investment Act. TexPool and TexStar are rated as AAA
money market funds by Standard & Poor’s. As of June 30, 2008, the District’s investment in TexPool and
TexStar was $44,060,693 and $13,275,164 respectively with a market value of $44,060,693 and $13,275,164
respectively. Investments in FNMA, FHLB, FFCB and FHLMC were backed by U.S. agencies with a AAA
senior debt rating by Standard & Poor’s and Moody’s, in full compliance with the Public Funds Investment
Act.
Concentration of credit risk. The investment portfolio is diversified in terms of investment instruments,
maturity scheduling, and financial institutions to reduce risk of loss resulting from over-concentration of assets
in a specific class or investments, specific maturity, or specific issuer. More than 5% of the District’s
investments are in the following instruments: Toyota Motor Credit at 5.28%, FHLB at 23.59%, FHLMC at
27.15% and FNMA at 16.17%.
Custodial credit risk – deposits. In the case of deposits, this is the risk that in the event of a bank failure, the
District’s deposits may not be returned to it. During the fiscal year, all deposits held in the depository bank,
Bank of America, were fully collateralized.
Custodial credit risk – investments. For an investment, this is the risk that, in the event of the failure of the
counterparty, the District will not be able to recover the value of its investments or collateral securities that are
in the possession of an outside party. Investments held by third parties were fully collateralized and held in
the District’s name.
NOTE 3: PROPERTY TAXES AND STATE AID REVENUE
Property Taxes
The appraisal of property within the District is the responsibility of the Collin County Appraisal District
("Appraisal District"). The District's property taxes are levied annually in October on the basis of the
Appraisal District's assessed values of property as of January 1 of that calendar year and are due and
payable when assessed. Such taxes are applicable to the fiscal year in which they are levied and become
delinquent with an enforceable lien on property after January 31 of the subsequent calendar year.
Delinquent taxes receivable and the related allowance for uncollectible taxes are shown on the governmentwide Statement of Net Assets and the fund financial Balance Sheet.
The District is permitted to levy taxes up to $1.04 per $100 of assessed valuation for general governmental
maintenance and operations. The tax rate for the payment of principal and interest on general obligation
long-term debt is determined by the debt service requirements of the outstanding bonds as approved by the
voters prior to issuance. For the current fiscal year, the Board of Trustees set a tax rate of $1.2684 per $100
of assessed valuation. The maintenance and debt service portions of such rate are $1.02 and $0.2484,
respectively. The 2007 assessed valuation was $32,254,750,285 resulting in a tax levy of $419,159,205 for
the current fiscal year. The 2007 tax levy reflects an adjustment of $2,913,353 of frozen homestead
exemptions for taxpayers 65 years and older as mandated by state property tax laws.
37
Property taxes which are measurable (quantifiable) and available (collectible within the current period or soon
enough thereafter to finance expenditures of the current period, which the District has estimated to be
collected in the two months after the fiscal year end) are recognized as revenue in the year of levy in the
governmental fund financial statements. Property taxes, which are measurable but not available, are
recorded net of estimated uncollectible amounts, as deferred revenues in the year of the levy in the
governmental fund financial statements. Such deferred revenues are recognized in the fund financial
statements as revenue in the fiscal year in which they become available. In the government-wide financial
statements, property taxes are recognized as revenues in the year for which the taxes are levied.
Delinquent taxes receivable and the related allowance for uncollectible taxes in the governmental fund
financial statements as of June 30, 2008 are as follows:
Delinquent Taxes
Receivable, Gross
General Fund
$
Debt Service Fund
Total
Allowance for
Uncollectible Taxes
10,229,182
$
2,052,071
$
12,281,253
3,219,781
Delinquent Taxes
Receivable, Net
$
527,604
$
3,747,385
7,009,401
1,524,467
$
8,533,868
The District entered into two tax increment reinvestment zone (TIF) agreements during the 1999 fiscal year.
TIF zone number 1 provides the District with a training facility. For fiscal year 2001 through 2021, the District
will contribute 100% of the Maintenance and Operations portion of its taxes attributable to the incremental
increase in the assessed value of the property within the Tax Increment Financing (TIF) Zone. TIF zone
number 2 provides the District with a facility for administrative and ancillary functions. For fiscal year 2001
through 2015, the District will contribute 100% of the Maintenance and Operations portion of its taxes
attributable to the incremental increase in the assessed value of the property within the TIF Zone. Tax
Increment Financing due to the TIF Board of $4,600,982 is reported as due to other governments in the
General Fund and is payable January 2009. This amount includes $2,627,352 for Tax Year 2007 TIF #1
taxes, $1,959,960 for Tax Year 2007 TIF #2 taxes and $13,670 in delinquent TIF collections.
State Aid Revenue
The Texas Education Agency, through its application of state law, allocates state revenues to school districts
by formula allocation. The District receives two allocations, a per capita allocation and a foundation program
allocation. The District also recognizes revenues for the state’s share of the contributions to the Teacher
Retirement System of Texas. See Note 9 for additional information on the employee’s retirement plan. Other
state revenues are received through other state miscellaneous programs on an allocated basis.
The components of state aid as shown in the governmental fund financial statements are as follows:
Revenues
Per Capita Revenues
Foundation Fund Revenues
Technology Allotment
High School Allotment
Other State Revenues
TRS on Behalf
Total State Aid Revenue
$
$
Amounts
14,030,726
91,265,487
1,486,004
3,896,588
3,213,274
18,323,875
132,215,954
NOTE 4: RECEIVABLES
Receivables due from other governments, as of June 30, 2008 for the District’s individual major funds and
nonmajor, internal service and fiduciary funds in the aggregate are as follows:
38
Debt
Service
Fund
General
Fund
Non-Major
and Other
Funds
Total
Due from the State of Texas
Due from the Federal Government
Due from Other Local Governments
$
2,026,791
$
103,130
$ 4,312,224
407,489
-
$
4,312,224
407,489
2,129,921
Total Receivables
$
2,026,791
$ 103,130
$ 4,719,713
$
6,849,634
NOTE 5: CAPITAL ASSETS
A summary of capital asset activity during the year ended June 30, 2008 follows:
Beginning
Balance
Governmental Activities:
Capital assets not being depreciated:
Land
Construction in Progress
Total capital assets not being depreciated
Capital assets being depreciated:
Land Improvements
Buildings and Improvements
Furniture/Equipment & Vehicles
Total capital assets being depreciated
Total Capital Assets
Less accumulated depreciation for:
Land Improvements
Buildings and Improvements
Furniture/Equipment & Vehicles
Total accumulated depreciation
Governmental funds capital assets, net
Internal Service Funds:
Furniture/Equipment & Vehicles
Less Accumulated Depreciation
Internal service funds capital assets, net
Governmental activities capital assets, net
Business Activities:
Furniture/Equipment & Vehicles
Less Accumulated Depreciation **
Business activities capital assets, net
Total Capital Assets, net
$
$
$
$
Increases
63,499,724
34,523,944
98,023,668
$
24,330,262
833,336,800
69,422,202
927,089,264
$
$
$
Ending
Balance
Decreases
2,221,166
48,432,407
50,653,573
$
57,931,059
$ 57,931,059
$
3,037,693
52,672,200
5,454,286
61,164,179
$
$
$
346,405
346,405
$
$
65,720,890
25,025,292
90,746,182
27,367,955
886,009,000
74,530,083
987,907,038
$ 1,025,112,932
$ 111,817,752
$ 58,277,464
$ 1,078,653,220
$
$
286,298
286,298
$
$
1,248,024
21,416,431
6,658,053
29,322,508
$
$
3,126,236
243,969,984
37,498,551
284,594,771
$
4,374,260
265,386,415
43,870,306
313,630,981
$
740,518,161
$
82,495,244
$ 57,991,166
$
765,022,239
$
$
$
61,140
13,945
47,195
$
$
61,140
19,098
42,042
$
740,565,356
$
$ 57,991,166
$
765,064,281
$
5,445
3,812
1,633
$
$
5,445
4,356
1,089
$
765,065,370
$
740,566,989
39
5,153
(5,153) $
82,490,091
544
(544)
$
$
82,489,547
-
-
$ 57,991,166
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
Instruction
Instructional resources and media services
Curriculum development and instructional staff development
Instructional leadership
School leadership
Guidance, counseling and evaluation services
Health Services
Student transportation
Food services
Co-curricular/extracurricular activities
General administration
Plant maintenance and operations
Security and monitoring services
Data processing services
Community services
Facilities acquisition and construction
Total depreciation expense, governmental activities
$
17,102,784
972,931
218,766
29,650
701,269
180,142
69,410
812,915
1,410,524
1,648,255
194,819
3,229,079
134,035
2,365,224
16,831
235,874
$
29,322,508
Construction Commitments
The District had several active construction projects as of June 30, 2008. Projects included new school
construction, additions to buildings and renovation of existing facilities. Fiscal year 2008 expenditures and
estimated future expenditures for capital projects are funded from unexpended bond proceeds, additional
general obligation bonds, and insurance proceeds.
During the year, architects were selected for the new construction of Otto Middle School, Murphy High School
and the new Early Childhood School. Preliminary expenses have been incurred for the construction of these
new schools. Construction Manager at Risk contracts were awarded for the addition at the Beaty Early
Childhood School, the renovation/addition at Sigler Elementary and the renovation at Hendrick Middle
School. Flooring contracts were awarded for Robinson Middle School, Armstrong Middle School, Forman
Middle School, Hedgcoxe Elementary, Barksdale Elementary and Skaggs Elementary. Contracts related to
HVAC improvements were awarded for Plano Senior High School, Vines High School, Gulledge Elementary
and the Facility Service Center. Roof replacement contracts were awarded for Bowman Middle School and
Forman Elementary. Preliminary expenses were incurred related to the renovation of Clark High School.
Construction continued for the renovation of Meadows Elementary, Aldridge Elementary and Mendenhall
HVAC.
During fiscal year 2008, the District completed the renovations of Davis Elementary, Mathews Elementary,
Carlisle Elementary and the Administration Building. Additionally, a fine arts addition was completed at Plano
East Senior High School, a science addition at Bowman Middle School and a press box added at Clark
Stadium. Kitchen and HVAC improvements were completed at Jackson Elementary, Forman Elementary,
Christie Elementary and Frankford Middle School. New roofs were added at Christie Elementary, the Special
Programs Center and the Service Center. Lastly, flooring projects were completed at Plano Senior High
School, Haggard Middle School and Miller Elementary.
Current projects include the following:
40
Project
PSHS HVAC & Sound System
Vines HVAC
Clark H.S. Renovation
Bowmand Roof
Armstron Carpet/Tile/Floor
Hendrick Renovation
Robinson Bleachers/Flooring
Meadows Renovation
Mendenhall HVAC
Sigler Renovation
Aldridge Renovation
Forman Roof/Carpet
Hedgcoxe Carpet/Tile
Gullege HVAC
Barksdale Carpet/Tile/Floor
Skaggs Carpet/Tile/Floor
Barron Replacement
Facility Service HVAC
$
Total Ongoing Construction
$
Estimated
Expenditures
Estimated
Total
Incurred to
Future
Cost
6/30/2008
Expenditures
360,890 $
25,177 $
335,713
377,466
22,145
355,321
25,000,000
30,665
24,969,335
2,107,266
533,182
1,574,084
37,897
9,990
27,907
16,145,176
2,891,486
13,253,690
373,280
56,575
316,705
16,418,313
14,031,974
2,386,339
281,505
138,421
143,084
13,018,090
1,018,931
11,999,159
10,709,132
4,833,523
5,875,609
986,988
605,269
381,719
187,000
124,555
62,445
75,000
5,100
69,900
190,135
117,266
72,869
191,239
113,036
78,203
13,368,184
447,381
12,920,803
88,014
20,616
67,398
99,915,575
$
25,025,292
$
74,890,283
NOTE 6: INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
The composition of interfund balances in the fund financial statements as of June 30, 2008, is as follows:
Receivable
General Fund
Capital Projects Funds
Other Governmental Funds
$
Totals
$
Payable
30,171,967
$
27,273,130
2,898,837
$
30,171,967
30,171,967
The primary interfund transactions at year-end included amounts due to the General Fund from Capital
Projects and Other Governmental Funds for expenditures made by the funds prior to receiving
reimbursement from the federal, state or local sources.
The following is a summary of the District’s transfers for the year ended June 30, 2008:
Transfers Out
General
Fund
General Fund
Capital Projects Fund
Enterprise Funds
Total
Transfers In
Debt Service
Other Gov
Funds
Funds
Enterprise
Funds
$
2,074,880
$
6,302,407
$
869,710
$
20,492
$
$
2,074,880
$
6,302,407
$
869,710
$
20,492
$ 9,267,489
41
890,202
6,302,407
2,074,880
The transfers made during the period consisted of the following:
To
From
Amount
Description
General Fund
Other Governmental
Funds
$ 869,710
To finance costs in excess of
federal
allotments
for
Headstart, to finance costs in
excess of donations and user
charges in the Practical
Parenting and Special Events
funds, to transfer a portion of
the Dr Pepper funds to Food
Service.
General Fund
Enterprise Funds
$
20,492
To fund costs in excess of
revenues for the Employee
Childcare fund.
Capital Projects Fund
Debt Service Fund
$ 6,302,407
Transfer interest earned to
finance debt service costs
associated with construction
projects.
Enterprise Fund
General Fund
$ 2,074,880
Transfer revenue in excess of
costs from the After School
Care fund to the General
Fund.
Total Transfers
$ 9,267,489
NOTE 7: LONG-TERM DEBT
The following is a summary of the District’s long-term debt for the year ended June 30, 2008:
Obligations
Outstanding
7/1/2007
General Obligation Bonds Payable
Loss on Advanced Refunding
$ 830,580,589
26,879,843
Compensated Absences
2,811,513
Totals
$
(21,126,896)
Premium on Bond Issue
Arbitrage liability
New
Obligations
Incurred
$
(243,815)
2,488,121
-
966,565
$ 840,111,614
91,585,000
Obligations
Retired or
Refunded and
Accretion
211,210
$
94,040,516
42
$
Obligations
Outstanding
6/30/2008
(84,122,605) $ 838,042,984
Obligations
Due Within
One Year
$ 50,729,838
1,477,579
(19,893,132)
-
(3,383,548)
25,984,416
-
(630,065)
2,181,448
334,750
(41,099)
1,136,676
88,260
(86,699,738) $ 847,452,392
$ 51,152,848
Debt Payable-Governmental Activities
Bonds payable at June 30, 2008, are composed of the following individual issues:
Description
School Building
Unlimited Tax Bonds,
Series 1997
Interest
Rate
Payable
Variable
Amounts
Original
Issue
Bonds
Outstanding at
July 1, 2007
Issued
(Retired)
Capital
Appreciation
Accretion
Bonds
Outstanding at
June 30, 2008
50,000,000
36,910,000
(36,910,000)
-
-
School Building
Unlimited Tax Bonds,
Series 1998
4.90%
to
6.00%
32,900,000
1,440,000
(1,440,000)
School Building
Unlimited Tax Bonds,
Series 2000
4.88%
to
5.13%
85,000,000
23,215,000
(5,305,000)
School Building
Refunding Capital
Appreciation Bonds
Series 2001
2.16%
to
5.38%
10,064,890
8,174,554
(8,400,000)
School Building
Refunding Bonds,
Unlimited Tax Bonds
Series 2001
4.32%
to
4.42%
264,705,000
123,625,000
(5,600,000)
118,025,000
School Building
Unlimited Tax Bonds,
Series 2002
4.10%
to
5.10%
128,900,000
41,770,000
(1,300,000)
40,470,000
Unlimited Tax Refunding
& Improvement Bonds
Series 2003
2.00%
to
5.25%
119,310,000
100,445,000
(8,220,000)
92,225,000
Unlimited Tax
Refunding Bonds
Series 2004
2.00%
to
5.00%
112,080,000
99,750,000
(9,575,000)
90,175,000
School Building
Unlimited Tax Bonds,
Series 2004
3.25%
to
5.00%
71,420,000
66,610,000
(2,535,000)
64,075,000
17,910,000
225,446
-
Unlimited Tax
Refunding Bonds
Series 2005
5.00%
School Building
Unlimited Tax Bonds
Series 2006
4.50%
to
5.75%
Unlimited Tax Refunding
Current Interest Bonds
Series 2006
5.00%
to
5.00%
121,805,000
121,805,000
School Building
Refunding Capital
Appreciation Bonds
Series 2006
3.52%
to
4.05%
7,375,443
4,931,035
(450,000)
School Building
Unlimited Tax Bonds
Series 2007
4.50%
to
5.00%
76,670,000
76,670,000
(2,340,000)
74,330,000
School Building
Unlimited Tax Bonds
Series 2008
3.00%
to
5.00%
58,280,000
-
58,280,000
58,280,000
Unlimited Tax
Refunding Bonds
Series 2008
3.25%
to
4.60%
33,305,000
-
33,305,000
33,305,000
Totals
56,805,000
56,805,000
70,535,000
68,430,000
-
56,805,000
(2,460,000)
65,970,000
-
$830,580,589
43
-
$7,050,000
121,805,000
186,949
$412,395
4,667,984
$838,042,984
The following table summarizes the annual debt service requirements of the outstanding debt issues at June
30, 2008, to maturity:
Bond
Principal
2009
2010
2011
2012
2013
2014-2018
2019-2023
2024-2028
2029-2033
$
50,729,838
54,973,958
57,398,410
58,462,777
60,318,331
257,454,670
171,240,000
75,505,000
51,960,000
$ 838,042,984
Bond
Interest
$
39,694,619
37,548,032
34,886,924
32,109,669
29,254,816
104,694,049
50,059,075
23,195,899
5,676,950
$ 357,120,033
Totals
$
90,424,457
92,521,990
92,285,334
90,572,446
89,573,147
362,148,719
221,299,075
98,700,899
57,636,950
$ 1,195,163,017
The District issued $58,280,000 in Series 2008 unlimited tax bonds in February 2008 to be used for new
construction. In April 2008, the District issued $33,305,000 Series 2008 Refunding Bonds used to refund
$36,055,000 of outstanding bonds of the District’s School Building Unlimited Tax Bonds, Series 1997. An
amount of $36,298,815 was placed in an irrevocable trust to provide for future debt service payments relating
to the defeased bonds. Accordingly, the trust assets and liabilities for the defeased bonds are not included in
the District’s financial statements. The defeased bonds were variable interest rate bonds therefore the
present value economic gain and the future debt service savings cannot be calculated. The reacquisition
price exceeded the net carrying amount of the old debt by $243,815. At June 30, 2008, the principal balance
of all defeased bonds outstanding was $226,995,000. Original losses on refunding were $24 million of which
$19.9 million is unamortized and reported in the Statement of Net Assets as a reduction in the long-term debt.
Unamortized bond premiums of $26 million are reported in the Statement of Net Assets as an increase in the
long-term debt.
As of June 30, 2008, $490,000,000 of bonds were authorized by bond election and not issued.
Other long-term debt
Arbitrage - The Federal Tax Reform Act of 1986 requires issuers of tax-exempt debt to make payments to
the United States Treasury of investment income received at yields that exceed the issuer’s tax-exempt
borrowing rates. The U.S. Treasury requires payment for each issue every five years. Arbitrage liability for
tax-exempt debt subject to the Tax Reform Act issued through June 30, 2008, amounted to $1,136,676. The
estimated liability is updated annually for any tax-exempt issuances or changes in yields until such time
payment of the calculated liability is due.
Compensated Absences - Certain employees are entitled to receive accrued vacation pay in a lump-sum
cash payment upon termination of employment with the District. The net decrease of $630,065 over the prior
fiscal year represents the recorded liability for employees vesting in accumulated vacation pay. The general
fund and special revenue funds are used to liquidate compensated absences.
NOTE 8: RISK MANAGEMENT
The District is exposed to various risks related to theft of, damage to and destruction of assets; errors and
omissions; and natural disasters. The District’s risk management program encompasses various means of
protecting the District against losses through policies with commercial insurance carriers or through selfinsurance. Settled claims have not exceeded insurance coverage in any of the previous five fiscal years.
44
Workers’ Compensation
The District maintains a self-insurance program for workers’ compensation. Contributions are paid from all
governmental and proprietary funds to the Workers’ Compensation Internal Service Fund from which all
claims and administrative expenses are paid. The District maintains a catastrophic loss insurance policy for
catastrophic losses exceeding $350,000 per occurrence up to statutory limit of liability.
An accrual for incurred but not reported claims in the amount of $1,460,000 has been recorded in the fund as
of June 30, 2008. Claims payable, including an estimate of claims incurred but not reported, was actuarially
determined based on the District’s historical claims experience and an estimate of the remaining liability on
known claims.
Workers' Compensation Fund
Changes in Claims Payable
For the Years ended June 30, 2008 and June 30, 2007
`
6/30/2008
Claims payable, beginning of fiscal year
$
1,408,000
6/30/2007
$
1,467,000
Incurred claims and claim adjustment expenses
1,240,054
862,782
Claim payments during the year
(1,188,054)
(921,782)
$
Claims payable, end of fiscal year
1,460,000
$
1,408,000
Health Benefits
The District maintains a program for health insurance which includes self-funded plans for three medical
options, the alternate option, two dental plans and District provided term life insurance. All other plans are
fully insured through insurance plans. Contributions are paid from all governmental and proprietary funds to
the Health Benefits Internal Service Fund from which all claims and administrative expenses are paid. During
the year ended June 30, 2008, the District funded benefit credits of $259 per month per full time employee to
the health insurance plan. Claims administration and consultant services are provided by a third-party
administrator for the self-funded plans. The District maintains both aggregate and individual stop loss
coverage. Individual stop loss coverage is for catastrophic losses exceeding $300,000 per claim.
Medical and dental premiums are held by the District for the self-funded plans for payment of claims
processed by CIGNA, contract administrator for medical and dental claims, and WHP Healthcare Initiatives,
Inc., the pharmacy benefit manager.
An accrual for incurred but not reported claims in the amount of $3,750,831 has been recorded in the fund as
of June 30, 2008. Claims payable, including an estimate of claims incurred but not reported, was actuarially
determined based on an estimate of the remaining liability on known claims. As of June 30, 2008, the fund
had net assets of $10,891,068.
Health Benefits Fund
Changes in Claims Payable
For the Years ended June 30, 2008 and June 30, 2007
`
6/30/2008
$
Claims payable, beginning of fiscal year
3,783,211
6/30/2007
$
3,730,922
Incurred claims and claim adjustment expenses
30,311,288
26,575,846
Claim payments during the year
(30,343,668)
(26,523,557)
$
Claims payable, end of fiscal year
45
3,750,831
$
3,783,211
Property, Casualty, General Liability, Professional Liability and Unemployment
The District purchases commercial policies which include general liability, property and auto insurance.
However, the District has established a self-funded internal service fund to pay the cost of deductibles
associated with all insurance policies, except for workers compensation and health care. There have been
no significant reductions in insurance coverage from coverage in the prior year for any category of risk. The
deductible for property self-insurance is $100,000 with no deductible on auto insurance. In addition, the
District purchases professional legal liability insurance. The District must pay the first $100,000 on each
liability claim.
The District maintains a self-insurance program for unemployment benefits and deductibles for the
professional liability. An accrual for incurred but not reported claims in the amount of $358,724 has been
recorded as of June 30, 2008.
Unemployment Benefits and Professional Liability, Insurance Self-Funded
Changes in Claims Payable
For the Years ended June 30, 2008 and June 30, 2007
`
6/30/2008
Claims payable, beginning of fiscal year
$
205,168
6/30/2007
$
167,002
Incurred claims and claim adjustment expenses
477,973
203,281
Claim payments during the year
(324,417)
(165,115)
$
Claims payable, end of fiscal year
358,724
$
205,168
NOTE 9: EMPLOYEES’ RETIREMENT PLAN AND RETIREE HEALTH PLAN
RETIREMENT PLAN DESCRIPTION
The District’s employees are covered by the Teacher Retirement System of Texas (“TRS”). TRS, a public
employee retirement system (“PERS”), is a multiple-employer defined benefit pension plan. It is a cost
sharing PERS with one exception: all risks and costs are not shared by the District but are the liability of the
State of Texas. By statute, the State of Texas contributes to the retirement system an amount equal to the
current authorized rate multiplied by the aggregate annual compensation of all members of the retirement
system during that fiscal year. The District’s covered payroll for the year ended June 30, 2008, was
$298,874,176. For members of the retirement system entitled to the State’s statutory minimum salary certain
school personnel, the District pays the State’s contribution on the part of the member’s salary that exceeds
the statutory minimum.
Types of Employees Covered
All members of public state-supported educational institutions in Texas who are employed for one-half or
more of the standard workload and who are not exempted from membership under the Texas Government
Code are covered by the plan.
Benefit Provisions and Service Requirements
TRS administers retirement and disability annuities and death and survivor benefits to employees and
beneficiaries of employees of the public school system of Texas. It operates primarily under the provisions of
the Texas Constitution Article XVI, Section 67 and the Texas Government Code, Title 8, Subtitle C, Chapter
803 and 805, respectively. Service requirements are as follows:
46
Normal - Age 65 with 5 or more years of service credit, or at least age 60 and the sum of member’s age and
years of credit equals or exceeds 80, with at least five years of service.
Reduced – If a member prior to September 1, 2007, age 55 with 5 or more years of service credit, or any age
below 50 with 30 or more years of credited service. If a member on or after September 1, 2007, at least age
55 with five or more years of service credit; your age and service credit total 80 but age is less than 60; or 30
years of service credit and ages is less than 60.
Members are fully vested after five years of creditable service and are entitled to any benefit for which
eligibility requirements have been met.
Funding Policy
State law provides for a state contribution rate of 6.58% and a member contribution rate of 6.4%. The State
of Texas contributes 6.58% of members’ eligible gross earnings, except for those District employees subject
to the statutory minimum rules and those employees being paid from and participating in federally funded
programs. The statutory minimum requirements are based on the State of Texas minimum teacher schedule
and then adjusted based on local tax rates. For employees paid by federal programs, the federal programs
are required to contribute the state’s portion.
Contribution requirements are not actuarially determined but are legally established each biennium pursuant
to the following state funding policy: (1) the state contribution requires the legislature to establish a member
contribution rate of not less than 6% of the member’s annual compensation and a state contribution of not
less than 6% of the member’s annual compensation rate and not more than 10% of the aggregate annual
compensation of all members of the system during the fiscal year, (2) a state statute prohibits benefit
improvements or contribution reductions if, as a result of the particular actions, the time required to amortize
TRS’s unfunded actuarial liabilities would be increased to a period that exceeds 31 years, or if the
amortization period exceeds 31 years, the period would be increased by such action.
RETIREE HEALTH PLAN
Plan Description
The District contributes to the Texas Public School Retired Employees Group Insurance Program (TRSCare), a cost-sharing multiple-employer defined benefit post-employment health care plan administered by
the Teacher Retirement System of Texas. TRS-Care Retired Plan provides health care coverage for certain
persons (and their dependents) who retired under the Teacher Retirement System of Texas. The statutory
authority for the program is Texas Insurance Code, Chapter 1575. Section 1575.052 grants the TRS Board
of Trustees the authority to establish and amend basic and optional group insurance coverage for
participants.
Funding Policy
Contribution requirements are not actuarially determined but are legally established each biennium by the
Texas Legislature. Texas Insurance code, Sections 1575.202, 203 and 204 establish state, active employee,
and public school contributions, respectively. The State of Texas and active public school employee
contribution rates were 1.0% and 0.65% of the public school payroll, respectively, with school districts
contributing a percentage of payroll set at 0.55%. Per Texas Insurance Code, Chapter 1575, the public
school contribution may not be less than 0.25% or greater than 0.75% of the salary of each active employee.
In addition, the State of Texas contributed $706,589 in 2008 for on-behalf payments for Medicare Part D.
CONTRIBUTIONS MADE
Contributions made by the State, the District and its employees; and the District’s covered payroll for the
fiscal years 2008, 2007 and 2006 are as follows:
47
Covered Payroll
Contributions made by the State
Retirement plan rate
Retiree health care rate
Medicare Part D
District Required and Actual
contributions to TRS & TRS-Care
Employee contributions to TRS &
TRS-Care
2008
$298,874,176
2007
$278,754,055
2006
$257,273,608
18,323,875
6.58%
1.00%
706,589
15,612,360
6.00%
1.00%
13,386,997
6.00%
0.65%
5,037,376
3,902,524
3,721,698
19,127,931
17,842,186
16,465,508
The contributions made by the State on behalf of the District have been recorded in the government-wide
financial statements and in the fund financial statement of the General Fund as both state revenues and
payroll expenditures. These contributions are the legal responsibility of the State.
TRS issues a publicly available financial report that includes financial statements and required supplementary
information for the defined benefit pension plan and TRS-Care. This report may be obtained by contacting
the TRS Communications Department, 1000 Red River Street, Austin, Texas 78701.
NOTE 10: RECAPTURE PAYMENT
Intergovernmental Charges include an amount of $81,036,482 representing recapture payments made in
accordance with the state school finance law. The state school finance law has capped the amount of
property value per student that can be retained by local districts at $364,500 per student, increased from
$319,500 in 2007. The District’s property value of $488,563 per weighted average daily attendance is
significantly higher than the state mandated limit. The amount of tax revenue generated by the excess
property value over the state mandated limit is recaptured by the state. The formula for this expense is
based on prior taxable value using current year tax collections and current year WADA (weighted average
daily attendance). The District’s recapture payment for 2007-08 of $80,462,644 decreased by $46,165,767
from 2006-07 due to a decrease in the tax rate from $1.33 to $1.02 and due to the increase in the property
value that is retained by the District. Due to prior year adjustments and final settle ups, the District made
additional payments of $11,284,299 and received refunds of $10,710,461. Final settle up for 2007-08 takes
place well after the District’s fiscal year end and may result in a refund or payable of additional amounts.
NOTE 11: COMMITMENTS AND CONTINGENCIES
The District received financial resources from numerous federal and state governmental agencies in the form
of grants. The disbursement of funds received under these programs generally requires compliance with
terms and conditions specified in the grant agreements, subject to audit by the grantor agencies and the
Texas Education Agency. Any disallowed claims resulting from such audits could become a liability of the
General Fund. However, in the opinion of management, any such disallowed claims, if any, will not have a
material effect on any of the financial statements of the individual fund types included herein or on the overall
financial position of the District at June 30, 2008.
The District is the defendant in a number of lawsuits arising principally in the normal course of operations. In
the opinion of the administration, the outcome of these lawsuits will not have a material adverse effect on the
accompanying combined financial statements. A provision for losses has been recorded in the self-funded
48
internal service fund to pay the cost of deductibles associated with the District’s professional legal liability
insurance.
The District is party to several operating leases for the rental of copier machines and portable buildings.
These leases are for various terms with expiration dates through 2010. Payments under the leases for the
year ended June 30, 2008 totaled $1,212,098. Future obligations under the leases are as follows:
2009
$1,222,296
2010
$ 164,029
NOTE 12: SHARED SERVICE ARRANGEMENTS
The District is the fiscal agent for a Shared Service Arrangement (SSA) which provides deaf education
services to member districts whose students are enrolled in the Regional Day School Program for the Deaf
(RDSPD). In addition to the District, other member districts include Allen ISD, Collin County Special
Education Cooperative (CCSEC), Celina ISD, Coppell ISD, Frisco ISD, McKinney ISD, Melissa ISD,
Princeton ISD, Richardson ISD and Wylie ISD. The District, acting as the fiscal agent, receives monies from
the granting agencies and administers the program. The fiscal agent is responsible for employment of
personnel, budgeting, accounting and reporting. According to guidance provided in TEA’s Resource Guide,
the District has accounted for the activities of the SSA in the appropriate Special Revenue Funds.
Additionally, the SSA is accounted for using Model #2 in the Accounting and Reporting Treatment Guidance
section of the Resource Guide, Update 13.0.
According to the SSA agreement, costs incurred by the RDSPD over and above the amount of state and
federal funds received shall be divided among the member districts using a weighted formula based on
student services, time and distance to a school. Expenditures billed to the SSA members as of June 30,
2008 are summarized below:
Allen ISD
CCSEC
Celina ISD
Coppell ISD
Frisco ISD
Melissa ISD
McKinney ISD
Plano ISD
Princeton ISD
Richardson ISD
Wylie ISD
Total
$
62,920
88.761
15,200
46,198
86,549
88,761
174,851
493,165
11,673
21,309
57,400
$ 1,146,793
The District also participates in a SSA with Region 10 as a member district for Title I Part C Migrant Funds.
Region 10 receives program funds from the granting agency. A portion of the funds is retained by Region 10
for administrative purposes and the balance is provided to participating member school districts. The
following revenues and expenditures were reported by the District:
Revenues
Expenditures
Title I Part C
Migrant
$ 631
$ 631
49
NOTE 13: NEW ACCOUNTING PRONOUNCEMENTS
The GASB issued Statement No. 45, Accounting and Financial Reporting by Employers for Post Employment
Benefits Other Than Pensions, which is effective for the district in the fiscal year ending June 30, 2008. This
Statement establishes standards of accounting and financial reporting for post employment health care and
other benefits if provided separately from a pension plan. The District has implemented this standard with
respect to the employee retirement plan provided through the Teacher Retirement System of Texas (TRS)
and the retiree health plan through the Texas Public School Retired Employees Group Insurance Program
(TRS-Care). See Note 9.
The GASB issued Statement No. 48, Sales and Pledges of Receivables and Future Revenues and IntraEntity Transfers of Assets and Future Revenues, is effective for the District in the fiscal year ending June 30,
2008. This Statement establishes criteria that governments will use to ascertain whether certain transactions
should be regarded as a sale or a collateralized borrowing. Such transactions are likely to comprise the sale
of delinquent taxes, certain mortgages, student loans, or future revenues such as those arising from tobacco
settlement agreements. The District had no sales of this type in 2008. In the future if there is a transaction
that applies to this Statement the District will account for appropriately.
The GASB issued Statement No. 49, Accounting and Financial Reporting for Pollution Remediation
Obligations, which will be effective for the District in the fiscal year ending June 30, 2009. This Statement
addresses accounting and financial reporting standards for pollution remediation obligations, which are
obligations to address the current or potential detrimental effects of existing pollution by participating in
pollution remediation activities such as site assessments and cleanups. The District will evaluate the impact
of the standards on its financial statements and take the necessary steps to implement.
The GASB issued Statement No. 50, Pension Disclosures, an Amendment of GASB Statements No. 25 and
No. 27, which will be effective for the District in the fiscal year ending June 30, 2008. This Statement more
closely aligns the financial reporting requirements for pensions with those for other post-employment benefits.
The District has evaluated the impact of the standards on its financial statements and has taken the
necessary steps to implement.
The GASB issued Statement No. 51, Accounting and Financial Reporting for Intangible Assets, which will be
effective for the District in the fiscal year ending June 30, 2010. The objective of this Statement is to
establish accounting and financial reporting requirements for intangible assets clarifying whether and when
intangible assets should be considered capital assets for financial reporting purposes. The District will
evaluate the impact of the standards on its financial statements and take the necessary steps to implement.
The GASB issued Statement No. 52, Land and Other Real Estate Held as Investments by Endowments,
which will be effective for the District in the fiscal year ending June 30, 2009. This Statement establishes
consistent standards for the reporting of land and other real estate held as investments by essentially similar
entities. The District will evaluate the impact of the standard on its financial statements and will take the
necessary steps to implement if appropriate.
The GASB issued Statement No. 53, Accounting and Financial Reporting of Derivative Instruments, which
will be effective for the District in the fiscal year ending June 30, 2010. This Statement addresses the
recognition, measurement, and disclosure of information regarding derivative instruments entered into by
state and local governments. The District will evaluate the impact of the standard on its financial statements
and will take the necessary steps to implement if appropriate.
50
REQUIRED SUPPLEMENTARY
INFORMATION
EXHIBIT G-1
PLANO INDEPENDENT SCHOOL DISTRICT
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2008
Data
Control
Budgeted Amounts
Codes
Original
Actual Amounts
(GAAP BASIS)
Variance With
Final Budget
Positive or
(Negative)
$
$
Final
REVENUES:
5700 Total Local and Intermediate Sources
5800 State Program Revenues
5900 Federal Program Revenues
5020
0011
0012
0013
0021
0023
0031
0032
0033
0034
0036
0041
0051
0052
0053
0061
0081
0091
0092
0093
0095
0097
6030
$
Total Revenues
EXPENDITURES:
Current:
Instruction
Instructional Resources and Media Services
Curriculum and Instructional Staff Development
Instructional Leadership
School Leadership
Guidance, Counseling and Evaluation Services
Social Work Services
Health Services
Student (Pupil) Transportation
Extracurricular Activities
General Administration
Facilities Maintenance and Operations
Security and Monitoring Services
Data Processing Services
Community Services
Capital Outlay:
Facilities Acquisition and Construction
Intergovernmental:
Contracted Instructional Services Between Schools
Incremental Costs Associated with Chapter 41
Payments to Fiscal Agent/Member Districts of SSA
Payments to Juvenile Justice Alternative Ed. Prg.
Payments to Tax Increment Fund
355,586,435
123,653,684
190,393
495,319,252
479,430,512
478,740,945
(689,567)
258,234,265
11,231,064
6,829,076
2,799,963
21,782,401
15,051,011
832,550
4,177,952
8,774,293
6,372,743
11,405,922
43,176,818
2,537,638
6,237,861
5,592,680
263,182,400
11,404,761
7,512,194
2,959,813
21,893,185
15,768,234
965,365
4,264,136
10,282,257
7,010,414
11,085,122
44,329,443
2,706,182
6,847,095
215,515
260,428,688
9,144,988
7,090,120
2,861,065
21,488,647
15,046,656
952,483
4,242,582
10,107,248
6,412,126
11,053,985
40,021,743
2,641,969
5,990,679
168,883
2,753,712
2,259,773
422,074
98,748
404,538
721,578
12,882
21,554
175,009
598,288
31,137
4,307,700
64,213
856,416
46,632
90,316
53,009
37,307
97,256,013
930,000
214,500
170,000
5,400,000
82,127,755
930,000
225,500
220,000
5,400,000
81,036,482
650,140
225,500
158,415
4,600,982
1,091,273
279,860
61,585
799,018
509,006,750
499,419,687
484,376,390
15,043,297
(13,687,498)
(19,989,175)
(5,635,445)
14,353,730
9,062,564
(10,100,642)
1,568,421
(1,085,822)
2,074,880
(890,202)
506,459
195,620
(1,038,078)
482,599
1,184,678
702,079
15,055,809
-
Total Expenditures
Excess (Deficiency) of Revenues Over (Under)
Expenditures
OTHER FINANCING SOURCES (USES):
7915 Transfers In
8911 Transfers Out (Use)
1100
7080
348,702,523 $
146,026,729
590,000
Total Other Financing Sources (Uses)
354,871,773
123,519,265
349,907
1200
Net Change in Fund Balances
(14,725,576)
(19,506,576)
(4,450,767)
0100
Fund Balance - July 1 (Beginning)
135,672,693
135,672,693
135,672,693
3000
Fund Balance - June 30 (Ending)
120,947,117 $
116,166,117
$
52
$
131,221,926
(714,662)
(134,419)
159,514
-
$
15,055,809
PLANO INDEPENDENT SCHOOL DISTRICT
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2008
NOTE 1: BUDGETS
The District is required by state law to adopt an annual budget for the General Fund,
presented on the modified accrual basis of accounting, which is consistent with GAAP.
Annual budgets are also adopted for the Child Nutrition Program and the Debt Service
Fund.
The following procedures are used in establishing the budgetary data reflected in the
financial statements:
A.
Prior to June 30 of the preceding fiscal year, the District prepares a budget for the next
succeeding fiscal year beginning July 1. The operating budget includes proposed
expenditures and the means of financing them.
B.
A meeting of the Board of Trustees is then called for the purpose of adopting the
proposed budget after giving at least ten days and up to 30 days public notice of the
meeting.
C.
Prior to July 1, the budget is legally enacted through passage of a resolution by the
Board of Trustees.
D.
Budget data is filed with the Texas Education Agency as a part of the District’s annual
fall submission to the TEA Public Education Information Management System
(PEIMS).
Once a budget is approved, it can be amended at the function and fund level only by
approval of a majority of the members of the Board of Trustees. The function level is the
legal level of budgetary control and the object level is the administrative level of control.
Amendments are presented to the Board at its regular meetings. Each amendment
crossing the function level must have Board approval. Such amendments are made before
the fact, are reflected in the official minutes of the Board and are not made after fiscal yearend, as dictated by law.
Each budget is controlled by the budget coordinator at the revenue and expenditure
function/object level. Board approval is not required for amendments by department heads
that move monies within a function. Budgeted amounts are as amended by the Board of
Trustees. All budget appropriations lapse at year-end.
NOTE 2: SIGNIFICANT ITEMS
Budget Amendments
During the year, numerous budget amendments are approved by the Board in order to
redistribute the budget to align specific amounts to meet projected actual expenditures.
The Board also approves appropriations of fund balance to meet budgetary needs that may
arise after the original budget is approved.
53
Significant changes between the original and final budgets in the General Fund include the
following:
Type of Revenue/Expenditure
Local Revenue
State Program Revenues
Federal Program Revenues
Instruction
Transportation
Community Services
Contracted Instruction Services
Between Schools
Original Budget
$ 348,702,523
146,026,729
590,000
258,234,265
8,774,293
5,592,680
97,256,013
Final Budget
$ 355,586,435
123,653,684
190,393
263,182,400
10,282,257
215,515
82,127,755
Variance
$ 6,883,912
(22,373,045)
(399,607)
4,948,135
1,507,964
(5,377,165)
(15,128,258)
The original budget projection for Local Revenue was increased due to the increase in
revenue based on the increase in the assessed final property value over the preliminary
value used to set the original budget and due to the increase in investment earnings during
the fiscal year.
The original budget for State Program Revenues included expected revenue for the
Technology Allotment and the High School Allotment. Prior to the end of the year, the
revenues were moved from the General Fund to the appropriate State Special Revenue
Fund. The Technology Allotment for the year was $1,486,004 and the High School
Allotment was $3,896,588. In addition, state revenue decreased due to the increase in tax
revenue state as calculated by the state funding formula.
The Federal Program Revenues budget was decreased due to the reclassification of
revenue received through the SHARS program to state revenue.
The original budget for Instructional was increased to more accurately reflect payroll costs.
The Transportation budget was increased due to the rising cost of gasoline.
The Community Services budget was decreased as a result of reporting the After School
Care Program and the Employee Child Care Program as enterprise funds instead of part of
the General Fund.
The Contracted Instruction Services Between Schools was decreased due to adjustments
to the weighted average daily attendance and the increase in the wealth level that the
District is allowed to retain. The budget was also lowered for prior year adjustments
resulting in overpayments made by the District.
Excess Expenditures
The Budgetary Comparison Schedule for the General Fund indicates no excess of
expenditures over appropriations for the year ended June 30, 2008.
54
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
EXHIBIT H-1
PLANO INDEPENDENT SCHOOL DISTRICT
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - DEBT SERVICE FUND
FOR THE YEAR ENDED JUNE 30, 2008
Data
Control
Budgeted Amounts
Codes
Original
Actual Amounts
(GAAP BASIS)
Variance With
Final Budget
Positive or
(Negative)
$
$
Final
REVENUES:
5700 Total Local and Intermediate Sources
5020
$
Total Revenues
EXPENDITURES:
Debt Service:
0071 Debt Service - Principal on Long Term Debt
0072 Debt Service - Interest on Long Term Debt
0073 Debt Service - Bond Issuance Cost and Fees
6030
1100
7901
7915
7916
8940
8949
7080
Total Expenditures
Excess (Deficiency) of Revenues Over (Under)
Expenditures
OTHER FINANCING SOURCES (USES):
Refunding Bonds Issued
Transfers In
Premium or Discount on Issuance of Bonds
Payment to Bond Refunding Escrow Agent (Use)
Payment to Bond Refunding Escrow Agent
81,764,194 $
84,250,000
81,764,194
84,250,000
84,235,632
(14,368)
48,346,148
40,140,131
600,000
49,800,000
39,000,000
650,000
48,480,000
38,746,659
396,914
1,320,000
253,341
253,086
89,086,279
89,450,000
87,623,573
1,826,427
(7,322,085)
(5,200,000)
(3,387,941)
1,812,059
4,300,000
-
33,305,000
3,644,200
1,613,921
(36,298,815)
-
33,305,000
6,302,407
1,613,921
(36,298,815)
2,658,207
36,298,815
(36,298,815)
4,300,000
2,264,306
4,922,513
2,658,207
4,470,266
Total Other Financing Sources (Uses)
84,235,632
1200
Net Change in Fund Balances
(3,022,085)
(2,935,694)
1,534,572
0100
Fund Balance - July 1 (Beginning)
39,183,777
39,183,777
39,183,777
3000
Fund Balance - June 30 (Ending)
36,161,692 $
36,248,083
$
57
$
40,718,349
(14,368)
-
$
4,470,266
PLANO INDEPENDENT SCHOOL DISTRICT
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2008
Data
Control
Codes
240
289
National
Other Federal
Breakfast and
Special
Lunch Program Revenue Funds
379
Other Federal
SSA Special
Revenue Funds
$
$
1110
ASSETS
Cash and Investments
1240
Due from Other Governments
96,465
1250
Accrued Interest
36,968
1290
Other Receivables
1300
Inventories
1000
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities:
2110 Accounts Payable
2160
Accrued Wages Payable
2170
Due to Other Funds
2180
Due to Other Governments
2300
Deferred Revenues
2000
3610
Unreserved and Undesignated:
Reported in Special Revenue Funds
3000
Total Fund Balances
4000
Total Liabilities and Fund Balances
$
37,600
18,822
-
-
-
-
314,112
-
-
-
203,862
-
-
-
4,379,592 $
18,822 $
37,600
$
21,766 $
36,678 $
8,701 $
-
167,962
381,070
570,798
$
58
4,379,592
-
6,774,853 $
Fund Balances:
Reserved For:
3410
Investments in Inventory
Unreserved Designated For:
Outstanding Encumbrances Special Revenue
-
$
Total Liabilities
3551
6,123,446 $
411
Technology
Allotment
1,585,522
-
-
2,757,392
10,121
-
-
-
37,600
-
-
-
18,822
37,600
4,379,592
203,862
-
-
-
566,906
-
-
-
5,433,287
-
-
-
6,204,055
-
-
-
6,774,853 $
4,379,592 $
18,822 $
37,600
EXHIBIT H-2
428
High School
Allotment
$
-
429
459
499
Other State
Other SSA
Other Local
Special
Special
Special
Revenue Funds Revenue Funds Revenue Funds
$
-
250,061 $
224,834
Total
Nonmajor
Governmental
Funds
803,040 $
4,033,299 $
11,247,446
-
-
4,719,713
-
36,968
-
-
-
-
-
-
-
-
-
-
89
314,201
203,862
$
-
$
474,895 $
803,040 $
4,033,388 $
16,522,190
$
-
$
104,048 $
33,224 $
38,290 $
242,707
-
1,789
-
115,680
-
$
435,134
-
-
33,656
2,224,063
15,644
2,898,837
2
88
37,690
-
247,502
334,680
2,651
965,903
-
469,019
803,040
90,329
6,369,200
-
-
-
-
203,862
-
-
-
-
566,906
-
5,876
-
3,943,059
9,382,222
-
5,876
-
3,943,059
10,152,990
474,895 $
803,040 $
4,033,388 $
16,522,190
-
$
59
PLANO INDEPENDENT SCHOOL DISTRICT
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
Data
Control
Codes
240
289
National
Other Federal
Breakfast and
Special
Lunch Program Revenue Funds
379
Other Federal
SSA Special
Revenue Funds
$
$
REVENUES:
Total Local and Intermediate Sources
State Program Revenues
Federal Program Revenues
18,687,089
16,266,015
257,143
1,486,004
1,486,004
EXPENDITURES:
Current:
0011 Instruction
0012 Instructional Resources and Media Services
0013 Curriculum and Instructional Staff Development
0021 Instructional Leadership
0023 School Leadership
0031 Guidance, Counseling and Evaluation Services
0032 Social Work Services
0033 Health Services
0034 Student (Pupil) Transportation
0035 Food Services
0036 Extracurricular Activities
0041 General Administration
0051 Facilities Maintenance and Operations
0052 Security and Monitoring Services
0053 Data Processing Services
0061 Community Services
Intergovernmental:
0093 Payments to Fiscal Agent/Member Districts of
17,841,627
239,926
-
11,766,001
1,092,521
689,000
994,787
314,851
294,696
199,109
32,758
41,548
920
15,377
524,747
185,308
16,978
5,184
28,978
20,375
320
1,486,004
-
6030
18,081,553
16,459,480
605,536
(193,465)
-
-
264,785
193,465
-
264,785
193,465
-
-
5700
5800
5900
5020
1100
7915
7080
Total Revenues
12,178,161
493,796
6,015,132
$
-
Total Expenditures
Excess (Deficiency) of Revenues Over (Under)
Expenditures
OTHER FINANCING SOURCES (USES):
Transfers In
Total Other Financing Sources (Uses)
63,309
16,202,706
411
Technology
Allotment
493,165
$
257,143
-
1,486,004
257,143
1200
Net Change in Fund Balance
870,321
-
-
-
0100
Fund Balance - July 1 (Beginning)
5,333,734
-
-
-
3000
Fund Balance - June 30 (Ending)
$
60
6,204,055
$
-
$
-
$
-
EXHIBIT H-3
428
High School
Allotment
$
$
3,896,588
3,896,588
429
459
499
Other State
Other SSA
Other Local
Special
Special
Special
Revenue Funds Revenue Funds Revenue Funds
$
$
908,584
908,584
1,054,662
1,911,717
2,966,379
3,896,588
-
640,650
6,732
175,722
27,509
10,298
7,169
588
669
876
250
32,245
3,896,588
902,708
$
Total
Nonmajor
Governmental
Funds
3,760,621 $
3,760,621
17,056,753
8,696,689
22,474,981
48,228,423
2,802,357
1,408
125,718
36,580
316
-
1,235,613
15,184
210,637
101,507
369,642
25,884
55
7,223
4,851
6,811
423,765
228,183
173,894
183,861
175,907
477,579
22,012,521
21,916
1,497,266
948,918
379,940
1,093,398
314,906
302,507
203,960
17,881,865
486,564
229,103
429,763
183,861
175,907
1,034,891
2,966,379
3,640,596
493,165
47,690,451
-
5,876
-
120,025
537,972
-
-
-
411,460
411,460
869,710
869,710
-
5,876
-
531,485
1,407,682
-
-
-
3,411,574
8,745,308
-
$
5,876 $
-
$
3,943,059 $
61
10,152,990
EXHIBIT H-4
PLANO INDEPENDENT SCHOOL DISTRICT
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - CHILD NUTRITION PROGRAM
FOR THE YEAR ENDED JUNE 30, 2008
Data
Control
Budgeted Amounts
Codes
Original
Actual Amounts
(GAAP BASIS)
Variance With
Final Budget
Positive or
(Negative)
$
$
Final
REVENUES:
5700 Total Local and Intermediate Sources
5800 State Program Revenues
5900 Federal Program Revenues
5020
$
Total Revenues
12,395,216 $
357,045
5,266,708
11,967,041
508,534
5,722,814
12,178,161
493,796
6,015,132
211,120
(14,738)
292,318
18,018,969
18,198,389
18,687,089
488,700
18,180,004
523,775
19,431,611
246,044
17,841,627
239,926
1,589,984
6,118
18,703,779
19,677,655
18,081,553
1,596,102
(684,810)
(1,479,266)
605,536
2,084,802
225,000
274,553
264,785
(9,768)
225,000
274,553
264,785
(9,768)
2,075,034
EXPENDITURES:
0035 Food Services
0051 Facilities Maintenance and Operations
6030
Total Expenditures
Excess (Deficiency) of Revenues Over (Under)
Expenditures
OTHER FINANCING SOURCES (USES):
7915 Transfers In
1100
7080
Total Other Financing Sources (Uses)
1200
Net Change in Fund Balances
(459,810)
(1,204,713)
870,321
0100
Fund Balance - July 1 (Beginning)
5,333,734
5,333,734
5,333,734
3000
Fund Balance - June 30 (Ending)
4,873,924 $
4,129,021
$
63
$
6,204,055
-
$
2,075,034
EXHIBIT H-5
PLANO INDEPENDENT SCHOOL DISTRICT
COMBINING STATEMENT OF NET ASSETS
NONMAJOR ENTERPRISE FUNDS
JUNE 30, 2008
ASSETS
Current Assets:
Cash and Investments
Accrued Interest
Other Receivables
$
Total Current Assets
Noncurrent Assets:
Capital Assets:
Furniture and Equipment
Depreciation on Furniture and Equipment
173
174
712
Employee
Child Care
After School
Care
Concessions
Total
Nonmajor
Enterprise
Funds
11,675 $
-
57,893 $
12,758
225,092
-
$
69,568
12,758
225,092
11,675
295,743
-
307,418
-
-
5,445
(4,356)
5,445
(4,356)
Total Noncurrent Assets
-
-
1,089
1,089
Total Assets
11,675
295,743
1,089
308,507
LIABILITIES
Current Liabilities:
Accounts Payable
Accrued Wages Payable
Due to Other Funds
Deferred Revenues
6,261
5,414
-
1,698
30,310
263,735
140
31,405
-
7,959
35,864
31,405
263,735
Total Liabilities
11,675
295,743
31,545
338,963
1,089
(31,545)
1,089
(31,545)
(30,456) $
(30,456)
NET ASSETS
Investments in Capital Assets
Unrestricted Net Assets
-
Total Net Assets
$
64
-
$
-
$
EXHIBIT H-6
PLANO INDEPENDENT SCHOOL DISTRICT
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
173
174
712
Employee
Child Care
After School
Care
Concessions
$
$
Total
Nonmajor
Enterprise
Funds
OPERATING REVENUES:
Local and Intermediate Sources
$
11,195
Total Operating Revenues
7,462,601
261,665
$
7,735,461
11,195
7,462,601
261,665
7,735,461
13,842
5,789
8,623
3,433
4,299,796
188,630
628,782
337,570
101,240
2,824
101,516
122,408
4,414,878
197,243
738,921
463,411
31,687
5,454,778
327,988
5,814,453
(20,492)
2,007,823
(66,323)
1,921,008
-
67,057
1,743
68,800
-
67,057
1,743
68,800
(20,492)
2,074,880
(64,580)
20,492
-
(2,074,880)
OPERATING EXPENSES:
Payroll Costs
Professional and Contracted Services
Supplies and Materials
Other Operating Costs
Total Operating Expenses
Operating Income (Loss)
NONOPERATING REVENUES (EXPENSES):
Earnings from Temporary Deposits & Investments
Total Nonoperating Revenues (Expenses)
Income (Loss) Before Transfers
Transfer In
Transfers Out
1,989,808
-
20,492
(2,074,880)
Change in Net Assets
-
-
(64,580)
(64,580)
Total Net Assets - July 1 (Beginning)
-
-
34,124
34,124
Total Net Assets - June 30 (Ending)
$
-
65
$
-
$
(30,456)
$
(30,456)
EXHIBIT H-7
PLANO INDEPENDENT SCHOOL DISTRICT
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
173
174
712
Total
Nonmajor
Employee
After School
Child Care
Care
Concessions
Enterprise
Funds
Cash Flows from Operating Activities:
Cash Received from User Charges
Cash Payments to Employees for Services
Cash Payments for Suppliers
Cash Payments for Other Operating Expenses
Net Cash Provided by (Used for) Operating
Activities
$
11,195
(8,428)
(8,151)
(3,433)
$
7,491,044
(4,291,757)
(814,261)
(337,570)
$
261,665
(101,100)
(72,936)
(121,863)
$
(34,234)
7,763,904
(4,401,285)
(895,348)
(462,866)
(8,817)
2,047,456
2,004,405
20,492
-
(2,074,880)
-
20,492
(2,074,880)
20,492
(2,074,880)
-
(2,054,388)
Cash Flows from Non-Capital Financing Activities:
Operating Transfer In
Operating Transfer Out
Net Cash Provided by (Used for) Non-Capital
Financing Activities
Cash Flows from Investing Activities:
-
14,339
54,299
10,124
1,834
24,463
56,133
-
68,638
11,958
80,596
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of the Year:
11,675
-
41,214
2,055
(22,276)
22,276
30,613
24,331
Cash and Cash Equivalents at the End of the Year:
11,675
43,269
-
54,944
-
14,624
-
14,624
Proceeds from Sale & Maturities of Securities
Interest and Dividends on Investments
Net Cash Provided by Investing
Activities
Temporary Investment Not in Cash Equivalents
Cash on Balance Sheet:
$
11,675
$
57,893
$
$
(20,492)
$
2,007,823
$
-
$
69,568
$
1,921,008
Reconciliation of Operating Income (Loss) to Net Cash
Provided by (Used for) Operating Activities:
Operating Income (Loss):
Adjustments to Reconcile Operating Income
to Net Cash Provided by (Used For) Operating Activities:
Depreciation
Effect of Increases and Decreases in Current
Assets and Liabilities:
Decrease (increase) in Receivables
Increase (decrease) in Accounts Payable
Increase (decrease) in Accrued Wages Payable
Increase (decrease) in Deferred Revenues
Increase (decrease) in Due to Other Funds
Net Cash Provided by (Used for)
$
Operating Activities
-
-
6,261
5,414
(8,817)
67
(45,695)
3,151
8,039
74,138
$
2,047,456
$
(66,323)
544
544
140
31,405
(45,695)
9,412
13,593
74,138
31,405
(34,234)
$
2,004,405
PLANO INDEPENDENT SCHOOL DISTRICT
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
JUNE 30, 2008
752
Print Shop
ASSETS
Current Assets:
Cash and Investments
Accrued Interest
Other Receivables
Deferred Expenses
Other Current Assets
$
594,375
3,588
2,281
-
753
Health
Benefits
Self - Funded
$
600,244
Total Current Assets
Noncurrent Assets:
Capital Assets:
Furniture and Equipment
Depreciation on Furniture and Equipment
14,485,022
87,448
33,970
237,383
25,000
14,868,823
52,468
(13,895)
-
Total Noncurrent Assets
38,573
-
Total Assets
638,817
14,868,823
LIABILITIES
Current Liabilities:
Accounts Payable
Accrued Wages Payable
Accrued Expenses
72,546
-
226,924
3,750,831
Total Liabilities
72,546
3,977,755
38,573
527,698
10,891,068
NET ASSETS
Investments in Capital Assets
Unrestricted Net Assets
Total Net Assets
$
68
566,271
$
10,891,068
EXHIBIT H-8
772
Workers'
Compensation
Self - Funded
$
8,368,571 $
50,522
8,419,093
786
Insurance
Claims
Self - Funded
Sign
Shop
Total
Internal
Service Funds
226,265 $
1,366
-
1,286,709 $
5,478
-
227,631
1,292,187
24,960,942
148,402
36,251
237,383
25,000
25,407,978
-
8,672
(5,203)
-
61,140
(19,098)
-
3,469
-
42,042
8,419,093
$
775
231,100
1,292,187
25,450,020
606
1,460,000
-
35,389
358,724
334,859
606
5,569,555
1,460,606
-
394,113
5,905,020
6,958,487
3,469
227,631
898,074
42,042
19,502,958
6,958,487 $
231,100 $
898,074 $
19,545,000
69
PLANO INDEPENDENT SCHOOL DISTRICT
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
752
Print Shop
753
Health
Benefits
Self - Funded
OPERATING REVENUES:
Local and Intermediate Sources
$
Total Operating Revenues
1,466,493
$
33,195,415
1,466,493
33,195,415
286,715
811,061
429,404
4,286
269,021
30,452,251
16,225
2,899,266
1,531,466
33,636,763
(64,973)
(441,348)
16,896
563,708
16,896
563,708
(48,077)
122,360
614,348
10,768,708
OPERATING EXPENSES:
Payroll Costs
Professional and Contracted Services
Supplies and Materials
Other Operating Costs
Total Operating Expenses
Operating Income (Loss)
NONOPERATING REVENUES (EXPENSES):
Earnings from Temporary Deposits & Investments
Total Nonoperating Revenues (Expenses)
Change in Net Assets
Total Net Assets - July 1 (Beginning)
Total Net Assets - June 30 (Ending)
$
70
566,271
$
10,891,068
EXHIBIT H-9
772
Workers'
Compensation
Self - Funded
$
$
1,810,748
775
Sign
Shop
$
28,813
786
Insurance
Claims
Self - Funded
Total
Internal
Service Funds
$
42,795
$ 36,544,264
1,810,748
28,813
42,795
36,544,264
463,279
997,992
30,728
373,519
4,379
867
120,673
29,085
352,148
1,019,015
32,381,977
509,821
3,630,086
1,865,518
5,246
501,906
37,540,899
(54,770)
23,567
(459,111)
(996,635)
319,779
9,032
46,473
955,888
319,779
9,032
46,473
955,888
265,009
32,599
(412,638)
(40,747)
6,693,478
198,501
1,310,712
19,585,747
898,074
$ 19,545,000
6,958,487
$
231,100
$
71
PLANO INDEPENDENT SCHOOL DISTRICT
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
752
753
Health
Print Shop
Benefits
Self - Funded
Cash Flows from Operating Activities:
$
Cash Received from User Charges
Cash Payments to Employees for Services
Cash Payments for Insurance Claims
Cash Payments for Suppliers
Cash Payments for Other Operating Expenses
Net Cash Provided by (Used for) Operating
Activities
1,558,595
(286,715)
(1,237,889)
-
$
33,162,274
(269,020)
(30,343,668)
(157,189)
(3,816,115)
33,991
(1,423,718)
(3,012)
14,842
777,276
519,535
11,830
1,296,811
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of the Year:
45,821
334,133
(126,907)
9,222,058
Cash and Cash Equivalents at the End of the Year:
379,954
9,095,151
Temporary Investment Not in Cash Equivalents
214,421
5,389,871
$
594,375
$ 14,485,022
$
(64,973)
$
Cash Flows from Investing Activities:
Purchase of Investment Securities
Proceeds from Sale & Maturities of Securities
Interest and Dividends on Investments
Net Cash Provided by Investing
Activities
Cash on Balance Sheet:
Reconciliation of Operating Income (Loss) to Net Cash
Provided By (Used For) Operating Activities:
Operating Income (Loss):
Adjustments to Reconcile Operating Income
to Net Cash Provided by (Used For) Operating Activities:
Depreciation
Effect of Increases and Decreases in Current
Assets and Liabilities:
Decrease (increase) in Receivables
Decrease (increase) in Prepaid Expenses
Increase (decrease) in Accounts Payable
Increase (decrease) in Accrued Wages Payable
Increase (decrease) in Accrued Expenses
Net Cash Provided by (Used for)
Operating Activities
4,286
$
72
(441,348)
-
92,102
2,576
-
(33,141)
161,187
(1,078,036)
(32,380)
33,991
$ (1,423,718)
EXHIBIT H-10
772
775
786
Workers'
Insurance
Total
Compensation
Sign
Claims
Internal
Self - Funded
Shop
Self - Funded
Service Funds
$
$
$
1,810,748
(462,673)
(1,188,054)
(66,736)
(10,929)
$
28,813
(4,379)
-
422,088
(324,417)
-
36,982,518
(1,018,408)
(31,856,139)
(1,466,193)
(3,827,044)
82,356
24,434
97,671
(1,185,266)
108,536
291,738
(1,539)
8,210
(25,024)
44,214
(29,575)
885,812
878,539
400,274
6,671
19,190
1,734,776
482,630
4,789,233
31,105
111,378
116,861
690,541
549,510
15,147,343
5,271,863
142,483
807,402
15,696,853
3,096,708
83,782
479,307
9,264,089
$
8,368,571
$
226,265
$
1,286,709
$ 24,960,942
$
(54,770)
$
23,567
$
(459,111)
$
-
867
84,782
(262)
606
52,000
$
82,356
-
$
24,434
$
(996,635)
5,153
379,293
23,933
153,556
438,254
245,969
(1,051,789)
606
173,176
97,671
$ (1,185,266)
73
EXHIBIT H-11
PLANO INDEPENDENT SCHOOL DISTRICT
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
BALANCE
JULY 1
2007
STUDENT ACTIVITY FUNDS
Assets:
Cash and Temporary Investments
Accrued Interest
Other Receivables
Total Assets
Liabilities:
Accounts Payable
Accrued Wages Payable
Due to Student Groups
Total Liabilities
ADDITIONS
BALANCE
JUNE 30
2008
DEDUCTIONS
$
3,359,411 $
579
3,142
4,719,140 $
632
2,047
4,890,593
-
$
3,187,958
1,211
5,189
$
3,363,132 $
4,721,819 $
4,890,593
$
3,194,358
$
53,300 $
21,343
3,288,489
4,492,354 $
4,727,471
4,504,095
21,343
4,863,161
$
41,559
3,152,799
$
3,363,132 $
9,219,825 $
9,388,599
$
3,194,358
74
REQUIRED
TEXAS EDUCATION AGENCY
REPORT SECTION
PLANO INDEPENDENT SCHOOL DISTRICT
SCHEDULE OF DELINQUENT TAXES RECEIVABLE
YEAR ENDED JUNE 30, 2008
Last 10 Years
Ended June 30
1999 & PRIOR
2000
2001
2002
2003
2004
2005
2006
2007
2008
Tax Rates
Maintenance
Debt Service
$
1.3704 $
0.1691
1.4162
0.1630
1.3858
0.1673
1.4400
0.1885
1.4700
0.2334
1.5000
0.2334
1.5000
0.2334
1.5000
0.2334
1.3300
0.2484
1.0200
0.2484
1000
Totals
Assessed/Appraised
Value for School
Tax Purposes
$
18,332,631,080
20,572,046,330
22,987,020,613
25,625,181,207
27,170,645,727
27,594,319,479
27,901,712,003
28,921,415,823
30,665,981,311
32,254,750,285
Beginning
Balance
7/1/2007
$
133,427
65,148
220,689
650,316
923,553
964,691
928,529
1,790,532
7,621,986
$
9000 - Portion of Row 1000 for Taxes Paid
into Tax Increment Zone Under Chapter 311, Tax Code
76
$
13,298,871
-
EXHIBIT J-1
Current
Year's
Total Levy
$
$
$
419,159,205
Maintenance
Collections
$
8,521
1,352
6,551
31,950
37,373
77,719
125,127
615,459
5,217,518
331,456,876
Debt Service
Collections
$
1,051
155
791
4,181
5,934
12,093
19,470
95,765
974,460
80,719,498
Entire
Ending
Year's
Balance
Adjustments
6/30/2008
$
(4,451) $
119,404
63,641
678
214,025
614,185
(2,633)
877,613
(1,477)
873,402
(13,208)
770,724
(80,152)
999,156
(24,828)
1,405,180
(646,268)
6,336,563
419,159,205
$
337,578,446
$
$
$
4,600,982
$
-
-
81,833,398
(772,339) $
12,273,893
-
Ending Balance 6/30/08
Add - County Education District Taxes Receivable
$
12,273,893
7,360
Total Delinquent Taxes Receivable 6/30/08
$
12,281,253
Less Reserve for Uncollectible Taxes:
General Fund
Debt Service Fund
Net Delinquent Balance 6/30/08
77
(3,219,781)
(527,604)
$
8,533,868
EXHIBIT J-2
PLANO INDEPENDENT SCHOOL DISTRICT
SCHEDULE OF EXPENDITURES FOR COMPUTATIONS OF INDIRECT COST FOR 2009-2010
GENERAL AND SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
FUNCTION 41 AND RELATED FUNCTION 53 - GENERAL ADMINISTRATION, 99 - APPRAISAL DISTRICT COST
Account
Number
1
(702)
School
Board
Account
Name
611X-6146 PAYROLL COSTS
$
6149
Leave for Separating
Employees in Fn 41 & 53
6149
Leave - Separating Employees
not in 41 & 53
6211
Legal Services
6212
Audit Services
6213
Tax Appraisal/Collection Appraisal in Fn 99
621X
Other Professional Services
6220
Tuition and Transfer Payments
6230
Education Service Centers
6240
Contr. Maint. and Repair
6250
Utilities
6260
Rentals
6290
Miscellaneous Contr.
6320
Textbooks and Reading
6330
Testing Materials
63XX
Other Supplies Materials
6410
Travel, Subsistence, Stipends
6420
Ins. and Bonding Costs
6430
Election Costs
6490
Miscellaneous Operating
6500
Debt Service
6600
Capital Outlay
6000
TOTAL
$
2
(703)
Tax
Collections
3
(701)
Supt's
Office
4
(750)
Indirect
Cost
5
(720)
Direct
Cost
6
(other)
7
Miscellaneous
Total
- $
-
- $
-
503,259 $ 4,248,173 $ 1,664,541 $
-
- $ 6,415,973
-
-
-
-
-
-
-
-
-
2,074,673
443,882
-
73,978
-
-
-
443,882
73,978
2,074,673
40
19,947
59,737
40,896
-
-
7,993
10,493
19,437
19,950
-
1,387,283
33,131
53,335
351,118
286,268
83,213
203,268
634,120
-
18,691
30,916
19,934
813
242,972
-
6,942
1,395,276
33,131
18,691
53,335
351,118
327,717
142,531
204,081
59,737
937,938
6,942
120,620 $ 2,074,673 $ 1,005,014 $ 7,353,887 $ 1,977,867 $
Total expenditures/expenses for General and Special Revenue Funds:
LESS: Deductions of Unallowable Costs
FISCAL YEAR
Total Capital Outlay (6600)
Total Debt & Lease(6500)
Plant Maintenance (Function 51, 6100-6400)
Food (Function 35, 6341 and 6499)
Stipends (6413)
Column 4 (above) - Total Indirect Cost
6,942 $ 12,539,003
(9) $
(10) $
(11)
(12)
(13)
(14)
532,066,841
927,399
40,302,920
7,884,219
7,353,887
SubTotal:
56,468,426
Net Allowed Direct Cost
$
475,598,415
$
$
$
$
$
$
886,009,000
101,898,038
-
CUMULATIVE
Total Cost of Buildings before Depreciation (1520)
Historical Cost of Building over 50 years old
Amount of Federal Money in Building Cost (Net of #16)
Total Cost of Furniture & Equipment before Depreciation (1530 & 1540)
Historical Cost of Furniture & Equipment over 16 years old
Amount of Federal Money in Furniture & Equipment (Net of #19)
(8) NOTE A:
(15)
(16)
(17)
(18)
(19)
(20)
$1,255,915 in Function 53 expenditures are included in this report on administrative costs.
$0 in Function 99 expenditures for appraisal district costs are included in this report on administrative costs.
78
EXHIBIT J-3
PLANO INDEPENDENT SCHOOL DISTRICT
FUND BALANCE AND CASH FLOW CALCULATION WORKSHEET
FOR THE YEAR ENDED JUNE 30, 2008
UNAUDITED
1
Total General Fund Balance as of 6/30/08 (Exhibit C-1 object 3000 for
the General Fund Only)
$
2
Total Reserved Fund Balance (from Exhibit C-1 - total of object 3400s
for the General Fund Only)
3
Total Designated Fund Balance (from Exhibit C-1 - total of object 3500s
for the General Fund Only)
4
Estimated amount needed to cover fall cash flow deficits in the
General Fund (Net of borrowed funds and funds representing
deferred revenues.)
83,240,505
5
Estimate of one month's average cash disbursements during
the regular school session (9/1/08-5/31/09).
33,047,436
6
Estimate of delayed payments from state sources (58xx) including
August payment delays
7
Estimate of underpayment from state sources equal to variance
between Legislative Payment Estimate (LPE) and District Planning
Estimate (DPE) or District's calculated earned state aid amount.
8
Estimate of delayed payments from federal sources (59xx)
9
Estimate of expenditures to be reimbursed to General Fund from
Capital Projects Fund (uses of General Fund cash after bond
referendum and prior to issuance of bonds)
10
Optimum Fund Balance and Cash Flow (Lines 2+3+4+5+6+7+8+9)
11
Excess (Deficit) Undesignated Unreserved General Fund
Balance (Line 1 minus Line 10)
$
131,221,926
2,126,455
6,843,158
224,833
-
4,494,880
-
129,977,267
$
1,244,659
Explanation of need for and/or projected use of net positive Undesignated Unreserved General Fund Fund Balance:
The excess is less than one percent of the Optimum Fund Balance and will be used to cover unforeseen costs related to
personnel at the beginning of the school year
79
STATISTICAL SECTION
(Unaudited)
This section of the Plano Independent School District’s comprehensive annual financial
report presents detailed information as a context for understanding what the information
in the financial statements, notes, and required supplementary information says about the
District’s overall financial health.
Contents
Page
Financial Trends
These schedules contain trend information to help the reader
understand how the District’s financial performance and well-being
have changed over time.
83
Revenue Capacity
These schedules contain information to help the reader assess the
District’s most significant local revenue source, property taxes.
90
Debt Capacity
These schedules present information to help the reader assess the
affordability of the District’s current levels of outstanding debt
and the ability to issue additional debt in the future.
94
Demographic and Economic Information
These schedules offer demographic and economic indicators to
help the reader understand the environment within which the
District’s financial activities take place.
97
Operational Information
These schedules contain service and infrastructure data to help
the reader understand how the information in the District’s
financial report relates to the services the District provides and
activities it performs.
100
Source: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year.
Exhibit S-1
Plano Independent School District
Net Assets by Component,
Last Seven Fiscal Years (Unaudited)
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
Governmental Activities
Invested in capital assets,
net of related debt
2002
2003
2004 1
2005
$ (15,441)
$ (24,245)
$ (29,827)
$ (14,497)
Restricted
Unrestricted
2006
$
2007
(6,937)
$
2008
6,177
$ 10,868
5,109
18,940
24,144
28,740
29,922
29,741
34,644
86,974
91,910
131,755
131,166
146,159
160,607
158,432
$ 126,072
$ 145,409
$ 169,144
$ 196,525
$ 203,944
$
3
$
3
$
2
$
2
$
1
3
$
16
$
18
$
34
$
(30)
$
6,179
$ 10,869
Total Governmental Net Assets
$
76,642
$
86,605
Business Type Activities
Invested in capital assets,
net of related debt
$
4
$
4
4
$
Restricted
Unrestricted
-
(3)
Total Business Type Activities
$
Total Primary Government
Invested in capital assets,
net of related debt
$ (15,437)
Restricted
Unrestricted
Total Primary Government
$
1
$ (24,241)
$
13
$ (29,824)
$ (14,494)
16
$
(6,935)
(31)
5,109
18,940
24,144
28,740
29,922
29,741
34,644
86,974
91,907
131,755
131,179
146,175
160,639
158,401
86,606
$ 126,075
$ 145,425
$ 169,162
$ 196,559
$ 203,914
76,646
$
Note: The District began to report government-wide financial statements when it implemented GASB Statement 34
in 2002.
1
32
Fiscal year 2004 represents a 10-month transitional year for the period of September 1 through June 30.
Years preceding 2004 are September 1 through August 31 and years following 2004 are July 1
through June 30.
83
Exhibit S-2
Plano Independent School District
Change in Net Assets
Last Seven Fiscal Years (Unaudited)
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
Expenses
Governmental activities:
Instruction
Instructional Resources & Media Services
Curriculum & Instructional Staff Development
Instructional Leadership
School Leadership
Guidance, Counseling & Evaluation Services
Social Work Services
Health Services
Student (Pupil) Transportation
Food Services
Cocurricular/Extracurricular Activities
General Administration
Plant Maintenance & Operations
Security & Monitoring Services
Data Processing Services
Community Services
Debt Service - Interest on Long Term Debt
Debt Service - Bond Issuance Cost and Fees
Facilities Acquisition & Construction
Contracted Instructional Services Between Schools
Incremental Costs Associated with Chapter 41
Payments to Fiscal Agent/Member Districts of SSA
Payments to Juvenile Justice Alternative Ed. Prg.
Payments to Tax Increment Fund
2002
2003
2004 1
2005
2006
2007
2008
$ 214,707
9,706
6,236
3,070
17,565
11,517
1,305
3,113
6,801
13,512
5,426
9,641
32,764
2,407
5,985
1,847
36,023
270
20,494
96,443
460
112
2,317
$ 236,721
10,117
7,120
3,377
18,801
12,532
1,370
3,471
8,280
15,173
5,548
10,009
35,785
2,981
5,259
3,412
31,116
164
19,185
117,368
500
119
4,818
$ 222,996
9,401
6,072
3,094
17,236
11,699
1,228
3,370
6,864
14,558
6,241
8,485
33,352
2,110
6,304
4,589
27,484
595
8,072
127,301
711
490
83
4,485
$ 247,607
10,843
6,040
3,318
19,443
13,637
1,054
3,614
7,790
16,304
7,297
9,239
38,091
2,349
7,896
5,612
30,354
814
10,853
127,293
676
466
127
4,828
$ 253,458
11,052
6,378
3,657
20,731
14,128
1,118
3,821
7,951
16,700
7,703
10,264
39,629
2,582
7,483
6,118
32,887
184
10,705
132,999
760
536
103
5,266
$ 273,019
11,527
7,432
3,783
20,703
15,170
1,246
4,163
8,918
18,056
8,196
10,715
42,957
2,651
8,161
6,193
35,720
150
13,232
125,383
838
509
137
5,312
$ 299,557
10,104
8,764
3,775
22,575
16,329
1,266
4,620
10,903
19,304
8,482
11,468
43,518
2,944
8,384
1,220
37,533
134
13,569
81,036
650
719
158
4,601
501,723
553,226
526,820
575,546
596,214
624,171
611,613
110
98
120
128
137
162
Total governmental activities expenses
Business-type activities:
Concessions
Employee Child Care
After School Care
Total business-type activities expenses
Total primary government expenses
Program Revenues
Governmental activities:
Charges for Services:
Instruction
Food Service
Cocurricular/Extracurricular Activities
Plant Maintenance & Operations
Community Services
Other
Operating Grants and Contributions
Capital Grants and Contributions
110
98
120
128
137
162
328
31
5,455
5,814
$ 501,833
$ 553,324
$ 526,940
$ 575,674
$ 596,351
$ 624,333
$ 617,427
$
$
$
$
$
$
$
Total governmental activities program revenues
Business-type activities:
Charges for services:
Concessions
Employee Child Care
After School Care
Total business-type activities program revenues
5,317
9,791
796
1,384
49
30,026
336
4,272
10,342
766
947
3,864
578
42,046
2,701
4,657
9,848
915
1,032
4,800
248
33,649
252
5,350
11,312
1,006
1,052
6,546
197
37,570
2,312
4,330
11,014
1,732
1,207
6,584
644
46,477
1,932
5,048
11,247
1,516
1,152
7,052
315
48,736
293
5,272
11,680
1,482
1,539
145
612
53,350
-
47,699
65,516
55,401
65,345
73,920
75,359
74,080
80
95
123
141
139
176
262
11
7,462
7,735
80
Total primary government program revenues
$
47,779
Net (Expense) Revenue
Governmental activities
Business-type activities
Total primary government net expense
$ (454,024)
(29)
$ (454,053)
95
$
65,611
$ (487,710)
(3)
$ (487,713)
84
123
$
55,524
$ (471,419)
3
$ (471,416)
141
$
65,486
$ (510,201)
13
$ (510,188)
139
$
74,059
$ (522,294)
2
$ (522,292)
176
$
75,535
$ (548,812)
14
$ (548,798)
$
81,815
$ (537,533)
1,921
$ (535,612)
Exhibit S-2
(Cont.)
Plano Independent School District
Change in Net Assets
Last Seven Fiscal Years (Unaudited)
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
Net (Expense) Revenue
Governmental activities
Business-type activities
Total primary government net expense
2002
2003
2004 1
2005
2006
2007
2008
$ (454,024)
(29)
(454,053)
$ (487,710)
(3)
(487,713)
$ (471,419)
3
(471,416)
$ (510,201)
13
(510,188)
$ (522,294)
2
(522,292)
$ (548,812)
14
(548,798)
$ (537,533)
1,921
(535,612)
General Revenues and Other Changes in Net Assets
Governmental Activities:
Taxes
Property taxes levied for general purposes
Property taxes levied for debt service
Unrestricted grants and contributions
Investment earnings
Miscellaneous
Insurance recovery
Gain (Loss) on disposition of capital assets
Transfers
Total governmental activities
Business-type activities:
Investment earnings
Transfers
Total business-type activities
Total primary government
Change in Net Assets
Governmental activities
Business-type activities
Total primary government
372,575
46,024
13,313
16,041
3,001
(2,865)
(10)
448,078
399,426
64,112
19,903
4,794
8,808
630
497,673
(1)
10
9
412,652
64,897
22,856
4,408
6,072
510,886
(1)
420,601
66,189
27,500
8,154
5,317
1,778
529,538
(1)
-
(1)
(1)
435,617
68,599
23,418
13,479
4,916
546,029
1
(1)
(1)
333,528
82,905
105,742
15,715
5,008
2,054
544,952
1
-
68
(2,054)
(1,986)
1
1
$ 448,088
$ 497,673
$ 510,886
$ 529,538
$ 546,031
$ 576,935
$ 542,966
$
$
$
$
$
$
$
$
(5,945)
(20)
(5,965)
$
9,963
(4)
9,960
$
39,467
2
39,469
$
19,337
13
19,350
$
23,735
3
23,738
Note: The District began to report government-wide financial statements when it implemented GASB Statement 34 in 2002.
1
409,133
77,383
64,836
17,681
7,901
576,934
Fiscal year 2004 represents a 10-month transitional year for the period of September 1 through June 30.
Years preceding 2004 are September 1 through August 31 and years following 2004 are July 1
through June 30.
85
$
28,122
16
28,137
$
7,419
(65)
7,354
86
1
574
190
$ 326,378
1,438
240,038
7,707
$ 249,947
$
777
4,734
70,920
$ 76,431
$
2001
561
451
$ 311,062
1,863
214,977
12,685
$ 230,537
$
702
3,873
75,950
$ 80,525
$
2002
615
466
$ 202,622
1,792
100,128
18,896
$ 121,897
$
730
3,986
76,009
$ 80,725
$
2003
268
94
$ 226,402
4,141
81,164
34,066
$ 119,733
$
748
5,097
100,824
$ 106,669
$
2004 1
Fiscal Year
239
73
$ 257,679
5,647
99,977
37,544
$ 143,480
$
1,027
4,686
108,486
$ 114,199
$
2005
239
75
$ 281,260
6,867
113,855
36,920
$ 157,956
$
2,241
6,133
114,930
$ 123,304
$
2006
Fiscal year 2004 represents a 10-month transitional year for the period of September 1 through June 30. Years preceding 2004 are
September 1 through August 31 and years following 2004 are July 1 through June 30.
$ 115,337
$ 143,089
881
447
Total governmental funds
$
783
26,121
5,257
$ 33,489
610
227
801
9,288
71,759
$ 81,848
$
2000
1,157
60,714
6,340
$ 69,048
$
728
8,623
64,690
$ 74,041
$
1999
All Other Governmental Funds
Reserved
Unreserved designated
Unreserved, reported in
Special revenue funds
Capital projects funds
Debt service fund
Total all other governmental funds
General Fund
Reserved
Unreserved designated
Unreserved
Total general fund
Plano Independent School District
Fund Balances, Governmental Funds
Last Ten Fiscal Years (Unaudited)
(modified accrual basis of accounting)
(amounts expressed in thousands)
258
90
$ 281,836
8,397
98,234
39,184
$ 146,163
$
2,308
7,418
125,947
$ 135,673
$
2007
204
567
$ 271,760
9,382
89,666
40,718
$ 140,538
$
2,127
6,843
122,252
$ 131,222
$
2008
Exhibit S-3
87
1
284,200
8,092
11,329
9,482
313,103
22,797
2,688
25,485
5,488
2,084
7,572
$ 346,160
$
1999
327,542
8,798
12,360
9,510
358,210
24,435
2,778
27,213
6,184
2,213
8,397
$ 393,820
$
2000
357,093
9,667
20,172
15,264
402,196
25,788
3,187
28,975
8,325
2,553
10,878
$ 442,049
$
2001
418,599
9,849
16,041
10,137
454,626
23,776
4,050
27,826
8,848
2,666
11,514
$ 493,966
$
2002
$ 561,675
463,538
10,365
4,794
25,264
503,961
30,696
12,066
42,762
$ 11,589
3,363
14,952
2003
$ 565,316
477,549
9,882
4,408
19,906
511,745
32,271
6,057
38,328
$ 11,674
3,569
15,243
2004 1
Fiscal Year
$ 592,476
486,790
11,390
8,154
24,090
530,424
38,341
6,175
44,516
$ 13,077
4,459
17,536
2005
2006
$ 617,414
504,216
11,025
13,479
22,921
551,641
36,256
6,641
42,897
$ 17,936
4,940
22,876
Fiscal year 2004 represents a 10-month transitional year for the period of September 1 through June 30. Years preceding 2004 are
September 1 through August 31 and years following 2004 are July 1 through June 30.
Total revenues
Local sources:
Ad valorem taxes
Food service sales
Interest and other income
Other revenue
Total local sources
State sources:
State education finance program
State grants and other
Total state sources
Federal sources:
Federal grants
Food services
Total federal sources
Plano Independent School District
Governmental Funds, Revenues
Last Ten Fiscal Years (Unaudited)
(modified accrual basis of accounting)
(amounts expressed in thousands)
$ 653,208
487,970
11,246
18,750
25,631
543,597
79,568
8,419
87,987
$ 16,275
5,349
21,624
2007
$ 616,079
416,042
11,909
16,255
16,832
461,038
123,519
8,697
132,216
$ 16,810
6,015
22,825
2008
Exhibit S-4
88
$ 67,397
Capital Expenditures
2
1
9.9%
$ 37,901
$ 422,230
$ 194,066
17,240
35,267
9,294
38,383
535
16,645
21,199
261
35,871
53,469
2000
10.1%
$ 60,645
$ 502,917
$ 210,823
18,975
40,554
9,590
39,353
773
17,270
26,665
851
61,280
76,783
2001
10.8%
$ 134,064
$ 634,141
$ 218,383
19,941
39,299
9,062
41,195
1,799
23,072
30,900
270
150,888
99,332
2002
11.7%
$ 98,456
$ 670,262
$ 244,733
21,768
44,598
9,949
43,480
3,400
28,300
38,156
164
112,909
122,805
2003
9.6%
$ 45,009
$ 575,220
$ 226,405
19,799
41,358
8,250
38,163
4,590
33,870
16,445
595
52,675
133,070
2004 1
Fiscal Year
11.2%
$ 47,911
$ 637,521
$ 252,250
22,377
46,699
9,002
43,379
5,641
32,600
32,904
814
58,465
133,390
2005
2006
12.2%
$ 52,526
$ 667,218
$ 257,275
23,893
48,392
9,832
45,330
6,138
39,485
35,172
320
61,717
139,664
Fiscal year 2004 represents a 10-month transitional year for the period of September 1 through June 30. Years preceding 2004 are
September 1 through August 31 and years following 2004 are July 1 through June 30.
Intergovernmental charges include: Contracted Instructional Services Between Schools, Incremental Costs Associated with Chapter 41 (2004 first year)
Payments to Fiscal Agent/Member Districts of SSA, Payments to Juvenile Justice Alternative Ed. Prg., and Payment to Tax Increment Fund
(2001 first year). The Contracted Instructional Services Between Schools increased due to increases in tax revenue as a result of increases in
appraised property values.
11.6%
$ 418,013
Total Expenditures
Debt service as a percentage of noncapital expenditures
$ 177,629
14,679
34,108
8,396
33,373
414
22,205
18,268
133
68,989
39,819
1999
Expenditures:
Instruction & Instructional-Related Services
Instructional & School Leadership
Support Services - Student
Administrative Support Services
Support Services - Nonstudent
Ancillary Services
Debt Service - Principal on long-term debt
Debt Service - Interest on long-term debt
Debt Service - Bond Issuance Costs and Fees
Facilities Acquisition & Construction
Intergovernmental Charges 2
Plano Independent School District
Governmental Funds, Expenditures and Debt Service Ratio
Last Ten Fiscal Years (Unaudited)
(modified accrual basis of accounting)
(amounts expressed in thousands)
12.8%
$ 85,689
$ 730,533
$ 277,297
23,937
52,174
10,438
50,027
6,187
45,880
36,000
569
95,844
132,180
2007
13.9%
$ 53,887
$ 685,984
$ 300,195
25,679
57,044
11,283
49,445
1,204
48,480
38,747
397
66,346
87,164
2008
Exhibit S-5
89
1
$ (51,201)
$ (27,751)
659
(1,114)
-
(1,099)
20,652
5,522
(3,749)
-
$ (28,410)
3,755
(3,204)
21,200
$ (71,853)
2000
$ 211,039
271,907
8,159
(8,119)
270,000
95,964
(96,135)
2,038
$ (60,868)
2001
$ (15,315)
124,860
11,055
(16,059)
128,900
615
349
$ (140,175)
2002
$ (108,440)
147
8,925
(8,778)
-
$ (108,587)
2003
$
$
23,780
33,684
3,597
(3,298)
231,390
19,864
(217,869)
-
(9,904)
2004 1
Fiscal Year
Fiscal year 2004 represents a 10-month transitional year for the period of September 1 through June 30. Years preceding 2004 are
September 1 through August 31 and years following 2004 are July 1 through June 30.
Net change in fund balances
Total other financing sources (uses)
Other financing sources (uses)
Transfers In
Transfers Out
Bonds issued
Refunding bonds issued
Premiums on bonds issued
Payment to bond refunding agent
Special Early Retirement Benefits
Sale of capital assets
Excess of revenues over (under) expenditures
1999
Plano Independent School District
Governmental Funds, Other Financing Sources and Uses
and Net Change in Fund Balance
Last Ten Fiscal Years (Unaudited)
(modified accrual basis of accounting)
(amounts expressed in thousands)
$
31,277
76,322
4,494
(4,494)
71,420
56,805
9,000
(62,938)
2,035
$ (45,045)
2005
$ 23,581
73,385
4,955
(4,955)
70,535
2,821
29
$ (49,804)
2006
$
1,316
78,640
6,731
(7,331)
76,670
129,180
4,496
(131,106)
-
$ (77,324)
2007
$
$
(10,076)
59,829
9,247
(7,192)
58,280
33,305
2,488
(36,299)
-
(69,905)
2008
Exhibit S-6
Exhibit S-7
Plano Independent School District
Assessed Value and Actual Value of Taxable Property
Last Ten Fiscal Years (Unaudited)
(amounts expressed in thousands)
Fiscal
Year
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Residential
Property
$
13,163,420
14,825,781
16,493,192
17,935,003
19,255,237
19,912,909
20,442,670
21,192,806
22,197,270
23,322,123
Actual Value
Industrial
Rural
Property
Acreage
$ 3,652,247
4,355,776
5,225,239
6,068,529
6,654,460
6,508,264
6,674,985
7,119,236
7,693,125
8,527,170
$ 732,449
814,896
721,515
740,731
665,504
614,019
597,633
563,882
523,206
517,748
Personal
Property
Less:
Exemptions
Total
Assesed
Value
Total
District
Rate 1
$ 2,304,168
2,111,673
2,224,833
3,078,659
2,811,574
2,409,418
2,356,902
2,234,944
2,389,513
2,583,357
$ 1,519,653
1,536,080
1,677,758
2,197,741
2,216,130
1,850,291
2,170,478
2,189,452
2,137,133
2,805,271
$ 18,332,631
20,572,046
22,987,021
25,625,181
27,170,645
27,594,319
27,901,712
28,921,416
30,665,981
32,145,127
$ 1.5395
1.5792
1.5531
1.6285
1.7034
1.7334
1.7334
1.7334
1.5784
1.2684
Source: Comptroller of Public Accounts - School District Summary Worksheet
1
Per $100 of assessed value.
90
91
1
1.0200
2008
0.2484
0.2484
0.2334
0.2334
0.2334
0.2334
0.1885
0.1673
0.1630
$ 0.1691
1.2684
1.5784
1.7334
1.7334
1.7334
1.7034
1.6285
1.5531
1.5792
$ 1.5395
$
Includes levies for operating and debt service
1.3300
1.5000
2004
2007
1.4700
2003
1.5000
1.4400
2002
2006
1.3858
2001
1.5000
1.4162
2000
2005
1.3704
1999 $
Fiscal
Year
District Direct Rates
Debt
Maintenance
& Operations Service
Total
Plano Independent School District
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years (Unaudited)
0.4735
0.4535
0.4535
0.4535
0.4535
0.4535
0.4535
0.4585
0.4685
0.4685
City of
Plano
0.2450
0.2500
0.2500
0.2500
0.2500
0.2500
0.2500
0.2500
0.2500
$ 0.2500
Collin
County
$
0.086984
0.087683
0.089422
0.090646
0.091932
0.091946
0.092843
0.094049
0.096723
0.096723
0.4683
0.4683
0.4683
0.4683
0.4300
0.4200
0.3764
0.4140
0.5444
$ 0.5444
0.57516
0.57516
0.52516
0.52516
0.47785
0.47785
0.44385
0.44385
0.44385
$ 0.44385
0.7479
0.7292
0.7417
0.7197
0.6998
0.6998
0.6675
0.6675
0.6675
$ 0.6491
Overlapping Rates 1
Collin Co.
Community
City of
City of
City of
College (CCCC) Murphy Richardson Dallas
0.5570
0.5580
0.5600
0.5600
0.5610
0.5620
0.5630
0.5640
0.5740
$ 0.5750
City of
Allen 2
$
0.6179
0.6329
0.3771
0.3771
0.2820
0.5993
0.2700
0.2808
0.2942
0.3169
0.3500
0.3500
0.2820
$
City of
Parker 2
0.5993
0.5993
0.5993
0.5993
0.5993
0.6043
0.6043
City of
Carrollton 2
Exhibit S-8
92
Source: Collin County Tax Assessor Collector
$32,254,750,285
Total Taxable Value
217,120,709
162,113,158
144,658,191
138,310,883
127,000,000
100,000,000
100,000,000
97,308,838
94,845,683
82,135,055
$ 1,263,492,517
$
Taxable
Value
Total
TXU Electric Delivery Company
J C Penney Co. Inc
Countrywide Home Loans Inc.
Electronic Data Systems Corp.
Willow Bend Shopping Center LP
Legacy Campus LP
Texas Instruments Inc.
HSP of Texas Inc.
Ericsson
Alcatel USA Sourcing LP
Digital Switch Corp.
Fujitsu America
Dallas Morning News
Collin Creek Mall
ARCO
General Telephone
Taxpayer
Plano Independent School District
Principal Property Taxpayers
Current Year and Nine Years Ago (Unaudited)
1
2
3
4
5
6
7
8
9
10
Rank
2008
3.92 %
0.67 %
0.50
0.45
0.43
0.39
0.31
0.31
0.30
0.29
0.25
Percentage
of Total
Taxable
Value
5
247,527,914
$18,332,631,080
2
6
7
8
9
10
1
333,884,473
374,682,214
209,474,446
88,121,880
87,809,407
78,806,298
76,289,473
4
3
Rank
247,527,914
296,216,840
$ 2,040,340,859
$
Taxable
Value
1999
11.13 %
1.35
2.04
1.14
0.48
0.48
0.43
0.42
1.82
1.35 %
1.62
Percentage
of Total
Taxable
Value
Exhibit S-9
93
490,130,102
418,512,937
2007
2008
4
3
2
3
$
412,176,374
482,508,116
498,938,497
482,923,224
473,510,730
462,272,452
413,385,800
354,578,692
324,245,417
282,672,280
98.49
98.44
98.18
98.86
98.80
98.80
99.18
99.36
99.61
-
6,216,806
8,246,130
4,807,905
4,897,004
4,753,498
2,808,613
2,078,515
1,220,407
1,544,988
Collections
in Subsequent
Years 2
99.41 % $
Collected Within the
Fiscal Year of the Levy
Percentage
Amount
of Levy
$
412,176,374
488,724,922
507,184,627
487,731,129
478,407,734
467,025,950
416,194,413
356,657,207
325,465,824
284,217,268
98.49
99.71
99.80
99.84
99.82
99.81
99.85
99.94
99.98
7,235,470
5,844,794
5,862,154
3,762,274
2,966,173
4,822,667
2,513,959
3,296,999
1,527,280
2,237,240
Prior Year
Delinquent
Tax Collections
99.96 % $
Total Collections to Date
Percentage
Amount
of Levy
Fiscal year 2004 represents a 10-month transitional year for the period of September 1 through June 30. Years preceding 2004 are
September 1 through August 31 and years following 2004 are July 1 through June 30.
Collections in subsequent years are net of supplements and corrections.
Current year original tax levy of $419,159,205 was decreased by $646,268 in supplements and corrections
Total cash collections is total cash net of interest and penalty collections and other judgments.
508,183,783
2006
1
488,501,853
2005
479,281,136
467,903,563
2003
1
416,808,597
2002
2004
356,871,232
2001
284,336,672
325,529,465
$
2000
1999
Fiscal
Year
Taxes Levied
For the
Fiscal Year
Plano Independent School District
Property Tax Levies and Collections
Last Ten Fiscal Years (Unaudited)
$
419,411,844
494,569,716
513,046,781
491,493,403
481,373,907
471,848,617
418,708,372
359,954,206
326,993,104
286,454,508
Total Cash
Collections 4
100.2
100.9
101.0
100.6
100.4
100.8
100.5
100.9
100.4
100.7 %
Percentage
of Total
Collections
to Tax Levy
Exhibit S-10
Exhibit S-11
Plano Independent School District
Outstanding Debt by Type
Last Ten Fiscal Years (Unaudited)
(dollars in thousands, except per capita)
Governmental Activities
Unlimited
Loans
Capital
Tax Bonds
Payable
Leases
Fiscal
Year
1999
$
418,590
$
168
$
Total
Primary
Government
76
$
Percentage
of Personal
Income
Total
Outstanding
Debt
Per Capita
418,834
0.05 % $
1,391
2000
402,711
-
52
402,763
0.05
1,316
2001
653,029
-
27
653,056
0.07
2,086
2002
759,828
-
-
759,828
0.07
2,364
2003
732,198
-
-
732,198
0.06
2,239
2004
724,063
-
-
724,063
0.06
2,171
2005
762,510
-
-
762,510
0.07
2,238
2006
794,108
-
-
794,108
0.06
2,267
2007
830,581
-
-
830,581
0.06
2,332
2008
838,043
-
-
838,043
0.06
2,310
Note: Refer to Exhibit S-14 for per capita personal income information.
94
Exhibit S-12
Plano Independent School District
Direct and Overlapping Governmental Activities Debt
As of June 30, 2008 (Unaudited)
(dollars expressed in thousands)
Net Bonded
Debt
Governmental Unit
City of Plano 1
Collin County Community College
Collin County 1
City of Parker 2
City of Murphy 2
City of Richardson 2
City of Dallas 1
City of Allen 1
City of Carrollton 1
$
2
297,370
48,270
368,206
219
26,285
197,181
1,668,943
88,620
158,784
Estimated
Percentage
Applicable
91.63 %
98.80
98.80
97.18
89.21
24.32
6.10
6.06
0.09
Estimated
Share of
Direct and
Overlapping
Debt
$
272,480
47,691
363,788
213
23,449
47,954
101,806
5,370
143
Subtotal, overlapping debt
862,893
District net bonded debt
797,795
Total direct and overlapping debt
$ 1,660,688
Sources: Debt outstanding data provided by each governmental unit. Data for calculation of
overlapping percentages was provided by Collin County Appraisal District and Dallas County
Appraisal District.
Notes: Overlapping governments are those that coincide, at least in part, with the geographic
boundaries of the district. This schedule estimates the portion of the outstanding debt of
those overlapping governments that is borne by the residents and businesses of the district.
1
2
Reported as of entity's fiscal year end 2007.
Reported as of entity's fiscal year end 2008.
95
Exhibit S-13
Plano Independent School District
Legal Debt Margin Information
Last Ten Fiscal Years (Unaudited)
(dollars in thousands)
Fiscal
Year
1999
Total Net
Debt
Applicable
To Limit
Debt
Limit
$
1,838,029
$
Legal
Debt
Margin
412,250
$
Total Net Debt
Applicable to the Limit
as a Percentage of
Debt Limit
1,425,779
22.43 %
2000
2,068,428
397,454
1,670,974
19.22
2001
2,298,702
645,322
1,653,380
28.07
2002
2,562,518
747,143
1,815,375
29.16
2003
2,717,065
713,302
2,003,763
26.25
2004
2,759,432
689,997
2,069,435
25.01
2005
2,790,171
724,765
2,065,406
25.98
2006
2,892,142
757,188
2,134,954
26.18
2007
3,066,598
791,397
2,275,201
25.81
2008
3,225,475
797,795
2,427,680
24.73
Legal Debt Margin Calculation for Fiscal Year 2008
Assessed Value
Debt limit (10% of assessed value)
Total bonded debt
Less reserve for retirement of debt
Debt applicable to limit
Legal debt margin
$
$
838,043
40,248
$
96
32,254,750
3,225,475
797,795
2,427,680
Exhibit S-14
Plano Independent School District
Demographic and Economic Statistics
Last Ten Fiscal Years (Unaudited)
Fiscal
Year
Population
1999
301,009
2000
Personal
Income
(in thousands)
Unemployment
Rate
8,787,657
29,194
2.00 %
306,006
8,818,787
28,819
2.20
2001
313,028
9,338,564
29,833
4.30
2002
321,381
11,387,814
35,434
5.60
2003
327,050
11,779,033
36,016
5.90
2004
333,468
11,297,896
33,880
3.80
2005
340,699
11,683,250
34,292
4.40
2006
350,225
12,490,424
35,664
4.60
2007
356,206
13,726,042
38,534
3.90
2008
362,711
15,064,839
41,534
4.30
Sources:
$
Per Capita
Personal
Income
Population was provided by North Central Texas Council of Governments.
Personal income figures were obtained from the U.S Census Bureau.
Unemployment rates were provided by the Texas Workforce Commission.
97
98
39,765
Total
1
2
3
4
5
6
7
8
9
10
Rank
2008
29.97 %
7.35 %
4.71
3.42
3.31
1.87
1.56
1.40
1.37
1.16
1.02
Percentage
Of Total District
Employment
Sources:
TWC website provided total labor force numbers - 2008 (146,386); 1999 (115,058)
North Central Texas Council of Governments statistical and census data
City of Plano research
10,762
6,894
5,000
4,850
2,732
2,280
2,050
2,000
1,700
1,497
Employees
Countrywide Home Loans
Plano ISD
Electronic Data Systems
J. C. Penney, Inc.
Perot Systems
Alcatel USA
Frito - Lay Inc.
CHC Acquisition Corp
Dr. Pepper/Seven-Up Corp.
Presbyterian Hospital of Plano
DSC Communications Corporation
Texas Instruments Inc.
J. C. Penney Life Insurance
HCA Medical Center
Dallas Morning News
Employer
Plano ISD
Principal Employers
Current Year and Nine Years Ago (Unaudited)
32,803
4
10
6
8
9
5
2,400
3,800
800
1,357
1,200
900
7
2
1
3
Rank
1,300
5,046
12,000
4,000
Employees
1999
28.52 %
3.30
0.70
1.18
1.04
0.78
2.09
1.13 %
4.39
10.43
3.48
Percentage
Of Total District
Employment
Exhibit S-15
99
1
6,156
8
214
1,002
1,224
130
24
65
11
17
247
59
83
2
144
3,624
65
650
16
186
4,541
2003
6,820
8
204
1,472
1,684
134
25
69
11
17
256
60
85
3
148
3,826
67
704
15
120
4,732
2004
6,682
8
198
1,435
1,641
138
27
68
13
8
254
63
82
6
151
3,761
67
674
15
119
4,636
2005
6,756
8
204
1,450
1,662
142
27
70
13
8
260
67
83
6
156
3,801
69
668
12
128
4,678
2006
Fiscal Year
6,608
8
213
1,146
1,366
145
28
70
13
9
265
67
85
8
160
3,855
66
750
15
132
4,818
2007
6,894
7
208
1,375
1,590
143
29
72
13
9
266
68
87
26
181
4,003
70
648
17
120
4,858
2008
The increase in the Instructional Officer category is due to a reclassification of existing staff to this category.
Notes: Full-time instructional employees of the district are employed for 189 contract days. Campus Administrators and Student Services
employees are primarily employed for 220 days. Central administrative and non-campus professional staff are employed for 246 days.
Auxiliary staff are employed on an hourly basis with daily hours worked ranging from 8 hours to 4 hours.
Source: Fall Public Education Information Management System (PEIMS) Submissions with full-time equivalent employees
as of the last Friday in October. PEIMS staffing reports with detail level information were not available prior to FY 2003.
Total
Support and Administration
Superintendent, Deputy, Assoc. & Assistant
Non-Campus Professionals
Auxiliary Staff
Student Services
Counselor
Educational Diagnostician
School Nurse
LSSP/Psychologist
Social Worker
Campus Administration
Principal
Assistant Principal
Instructional Officer
Instruction
Teachers
Librarians
Educational Aides
Interpreters
Other Professionals (instructional)
Plano Independent School District
Full-time-Equivalent District Employees by Type
Last Six Fiscal Years (Unaudited)
1
12 %
(13)
(3)
37
30
10
21
10
19
(47)
8
15
5
1200
26
10 %
8
(0)
5
(35)
7
Percent
Change
2003 - 2008
Exhibit S-16
100
47,237
49,050
50,731
2001
2002
2003
52,997
53,683
2007
2008
3
2
532,066,841
552,265,959
531,075,643
512,742,554
471,638,955
490,743,793
429,047,700
396,889,606
348,686,642
$ 311,343,475
Operating
Expenditures 3
$
9,911
10,421
9,975
9,793
9,168
9,673
8,747
8,402
7,641
6,988
Cost
Per
Pupil
(4.89)
4.46
1.86
6.83
(5.23)
10.59
4.11
9.96
9.34
451,030,359
426,882,506
398,076,567
385,449,406
344,337,834
373,375,642
332,604,397
321,761,546
295,562,125
271,688,726
Expenditures
Excluding
Recapture
13.31 % $
Percentage
Change
$
8,402
8,055
7,477
7,362
6,693
7,360
6,781
6,812
6,477
6,098
Cost
Per
Pupil
4.31
7.72
1.56
9.99
(9.06)
8.54
(0.45)
5.17
6.21
5.80 %
Percentage
Change
Enrollment is as of the October reporting date to TEA through the Public Education Information System (PEIMS).
Fiscal year 2004 represents a 10-month transitional year for the period of September 1 through June 30. Years preceding 2004 are
September 1 through August 31 and years following 2004 are July 1 through June 30.
Operating expenditures are total governmental fund expenditures less debt service and capital projects.
53,238
2006
1
52,356
2005
51,446
45,634
2000
2
44,551
1999
2004
Enrollment 1
Fiscal
Year
Plano Independent School District
Operating Statistics
Last Ten Fiscal Years (Unaudited)
4,003
3,855
3,801
3,760
3,825
3,624
3,528
3,375
3,143
3,079
Teaching
Staff
13.4
13.7
14.0
13.9
13.4
14.0
13.9
14.0
14.5
14.5
Pupil
Teacher
Ratio
21
19
21
19
17
15
12
11
11
11 %
Percentage
of Students
Receiving
Free or
Reduced-Price
Meals
Exhibit S-17
Exhibit S-18
Plano Independent School District
Teacher Base Salaries
Last Ten Fiscal Years (Unaudited)
District
Average
Salary
Maximum
Salary
Statewide
Average
Salary
Fiscal
Year
Minimum
Salary
1999
$ 29,000
2000
32,000
43,578
39,927
37,567
2001
33,000
44,267
43,767
38,361
2002
34,000
47,195
41,155
39,232
2003
35,500
48,259
41,980
39,974
2004
36,250
48,778
42,533
40,478
2005
37,150
49,902
43,006
41,011
2006
38,000
50,752
43,952
41,744
$
40,353
$
38,937
$
34,336
2007
41,250
54,106
46,945
44,897
2008
43,149
55,964
48,712
46,178
Sources:
Plano ISD Compensation Plan Book
Academic Excellence Indicator System Annual Report for State of Texas (AEIS)
101
102
Total Schools
Buildings
Square Feet
Enrollment
56
6,525,691
44,551
1
24,000
215
3
1,252,658
5,717
Senior High School
Buildings
Square Feet
Enrollment
Early Childhood Schools
Buildings
Square Feet
Enrollment 1
5
1,126,915
6,407
11
1,652,060
10,403
Middle School
Buildings
Square Feet
Enrollment
High School
Buildings
Square Feet
Enrollment
36
2,470,058
21,809
1999
Schools:
Elementary
Buildings
Square Feet
Enrollment
Plano Independent School District
School Building Information
Last Ten Fiscal Years (Unaudited)
58
6,670,538
45,637
1
24,000
246
3
1,252,658
5,687
5
1,126,915
6,827
11
1,652,060
10,662
38
2,614,905
22,215
2000
58
6,670,538
47,238
1
24,000
311
3
1,252,658
5,847
5
1,126,915
7,144
11
1,652,060
10,923
38
2,614,905
23,013
2001
61
6,894,038
49,050
1
24,000
331
3
1,252,658
6,373
5
1,126,915
7,241
11
1,652,060
11,443
41
2,838,405
23,662
2002
63
7,108,223
50,964
3
147,683
1,476
3
1,252,658
6,794
5
1,126,915
7,514
12
1,805,997
11,658
40
2,774,970
23,522
2003
63
7,108,223
51,850
3
147,683
1,604
3
1,252,658
6,645
5
1,126,915
7,769
12
1,805,997
11,839
40
2,774,970
23,993
2004
Fiscal Year
65
7,259,921
52,356
3
147,683
1,385
3
1,252,658
6,869
5
1,126,915
7,833
12
1,805,997
12,055
42
2,926,668
24,214
2005
65
7,259,921
53,181
3
147,683
1,267
3
1,252,658
7,071
5
1,126,915
7,984
12
1,805,997
12,048
42
2,926,668
24,811
2006
66
7,485,790
52,935
3
147,683
1,261
3
1,252,658
7,132
5
1,233,936
7,889
12
1,805,997
12,103
43
3,045,516
24,550
2007
66
7,553,162
53,583
3
147,683
1,435
3
1,272,129
7,290
5
1,233,939
7,977
12
1,814,967
12,151
43
3,084,444
24,730
2008
Exhibit S-19
103
2
2
8
19
5
7
3
102,389
3
179,520
2
57,775
2000
1
Notes:
Early Childhood School Enrollment - students are 1/2 day students
Source: District Records
2
2
8
19
5
7
3
102,389
Facility Services
Buildings
Square Feet
Athletics
Stadiums
Running Tracks
Tennis Courts
Softball Fields
Baseball Fields
Indoor Athletic Fields
Swimming Pools
3
179,520
2
57,775
1999
Administrative
Buildings
Square Feet
Other Educational Facilities Buildings
Square Feet
Other PISD Facilities:
2
2
8
19
5
7
3
102,389
3
179,520
3
97,775
2001
2
2
8
19
5
7
3
102,389
4
207,520
3
97,775
2002
2
8
20
5
7
3
2
3
102,389
5
211,866
3
97,775
2003
6
9
20
5
7
3
2
4
142,389
5
211,866
3
97,775
2004
6
9
20
5
7
3
2
4
142,389
5
211,866
3
97,775
2005
6
9
20
5
7
3
2
4
142,389
5
211,866
3
97,775
2006
6
9
20
5
7
3
2
4
142,389
6
223,271
3
97,775
2007
6
9
20
3
7
3
2
4
142,389
6
223,271
3
97,775
2008
SCHEDULE OF FEDERAL AWARDS
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
COMPLIANCE AND OTHER MATTERS BASED ON
AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENTAL AUDITING STANDARDS
INDEPENDENT AUDITOR’S REPORT
Board of Trustees
PLANO ISD
Plano, TX
We have audited the financial statements of the governmental activities,
business type activities, each major fund and the aggregate remaining fund
information of Plano Independent School District (the “District”) as of and for the
year ended June 30, 2008, and have issued our report thereon dated October
31, 2008. We conducted our audit in accordance with auditing standards
generally accepted in the United States of America and the standards applicable
to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the District’s internal control
over financial reporting in order to determine our auditing procedures for the
purpose of expressing our opinion on the financial statements and not to provide
assurance on the internal control over financial reporting.
Our consideration of internal control over financial reporting was for the limited
purpose described in the preceding paragraph and would not necessarily identify
all deficiencies in internal control over financial reporting that might be significant
deficiencies or material weaknesses. However, as discussed below, we
identified certain deficiencies in internal control over financial reporting that we
consider to be significant deficiencies.
A control deficiency exists when the design or operation of a control does not
allow management or employees, in the normal course of performing their
assigned functions, to prevent or detect misstatements on a timely basis. A
significant deficiency is a control deficiency, or a combination of control
deficiencies, that adversely affect the District’s ability to initiate, authorize, record,
process, or report financial data reliably in accordance with generally accepted
accounting principles such that there is more than a remote likelihood that a
misstatement of the District’s financial statements that is more than
inconsequential will not be detected by the District’s internal control. We
consider the finding listed as 08-1 in the schedule of findings and questioned
costs to be a significant deficiency in internal control over financial reporting.
A material weakness is a significant deficiency, or combination of significant
deficiencies, that results in more than a remote likelihood that a material
misstatement of the financial statements will not be prevented or detected by the
District’s internal control.
WWW.WEAVERANDTIDWELL.COM
AN INDEPENDENT MEMBER OF
BAKER TILLY
INTERNATIONAL
Our consideration of the internal control over financial reporting was for the
limited purpose described in the first paragraph of this section, and would not
necessarily identify all deficiencies in the internal control that might be significant
deficiencies and, accordingly, would not necessarily disclose all significant
deficiencies that are also considered to be material weaknesses. However, we
believe that none of the significant deficiencies described above is a material
weakness.
OFFICES IN
DALLAS
FORT WORTH
107
HOUSTON
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
COMPLIANCE AND OTHER MATTERS BASED ON
AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENTAL AUDITING STANDARDS
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District’s financial
statements are free of material misstatement, we performed tests of its
compliance with certain provisions of laws, regulations, contracts and grants,
noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit and,
accordingly, we do not express such an opinion. The results of our tests
disclosed one instance of noncompliance listed at 08-2 that is required to be
reported under Government Auditing Standards.
This report is intended for the information of the District'
s Trustees, the audit
committee, the administration, federal awarding agencies and pass-through
entities, and is not intended to be used and should not be used by anyone other
than these specified parties.
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
October 31, 2008
108
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH
MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN
ACCORDANCE WITH OMB CIRCULAR A-133
WEAVER
TIDWELL
AND
L.L.P.
Board of Trustees
PLANO ISD
Plano, TX
Certified Public
Accountants
and Consultants
Compliance
We have audited the compliance of PLANO INDEPENDENT SCHOOL DISTRICT
with the types of compliance requirements described in the U.S. Office of
Management and Budget (OMB) Circular A-133 Compliance Supplement that are
applicable to each of its major federal programs for the year ended June 30, 2008.
The District's major federal programs are identified in the summary of auditor's
results section of the accompanying schedule of findings and questioned costs.
Compliance with the requirements of laws, regulations, contracts and grants
applicable to each of its major federal programs is the responsibility of the District’s
management. Our responsibility is to express an opinion on the District's compliance
based on our audit.
We conducted our audit of compliance in accordance with auditing standards
generally accepted in the United States of America; the standards applicable to
financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States; and OMB Circular A-133, Audits of States,
Local Governments, and Non-Profit Organizations. Those standards and OMB
Circular A-133 require that we plan and perform the audit to obtain reasonable
assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal
program occurred. An audit includes examining, on a test basis, evidence about the
District’s compliance with those requirements and performing such other procedures
as we considered necessary in the circumstances. We believe that our audit
provides a reasonable basis for our opinion. Our audit does not provide a legal
determination on the District’s compliance with those requirements.
In our opinion, Plano Independent School District complied, in all material respects,
with the requirements referred to above that are applicable to each of its major
federal programs for the year ended June 30, 2008.
Internal Control Over Compliance
The management of the District is responsible for establishing and maintaining
effective internal control over compliance with requirements of laws, regulations,
contracts and grants applicable to federal programs. In planning and performing our
audit, we considered the District's internal control over compliance with requirements
that could have a direct and material effect on a major federal program in order to
determine our auditing procedures for the purpose of expressing our opinion on
compliance and to test and report on internal control over compliance in accordance
with OMB Circular A-133.
WWW.WEAVERANDTIDWELL.COM
Our consideration of the internal control over compliance would not necessarily
disclose all matters in the internal control that might be material weaknesses. A
material weakness is a condition in which the design or operation of one or more of
the internal control components does not reduce to a relatively low level the risk that
AN INDEPENDENT MEMBER OF
BAKER TILLY
INTERNATIONAL
OFFICES IN
DALLAS
FORT WORTH
109
HOUSTON
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH
MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN
ACCORDANCE WITH OMB CIRCULAR A-133
PLANO INDEPENDENT SCHOOL DISTRICT
Page Two
noncompliance with applicable requirements of laws, regulations, contracts and
grants caused by error or fraud that would be material in relation to a major federal
program being audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned functions. We noted
no matters involving the internal control over compliance and its operation that we
consider to be material weaknesses.
This report is intended for the information of the District's Trustees, the audit
committee, the administration, federal awarding agencies and pass-through entities
and is not intended to be used and should not be used by anyone other than these
specified parties.
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
October 31, 2008
110
EXHIBIT K-1
PLANO INDEPENDENT SCHOOL DISTRICT
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2008
FEDERAL GRANTOR/
PASS-THROUGH GRANTOR/
PROGRAM OR CLUSTER TITLE
FEDERAL
PASS-THROUGH
CFDA ENTITY IDENTIFYING
FEDERAL
NUMBER
NUMBER
EXPENDITURES
U.S. DEPARTMENT OF DEFENSE
Passed Through State Department of Education
Junior ROTC Program
Total Passed Through State Department of Education
12.000
08-043910
TOTAL DEPARTMENT OF DEFENSE
$
190,394
190,394
190,394
U.S. DEPARMENT OF EDUCATION
Passed Through State Department of Education
ESEA Title I Part A - Improving Basic Programs
ESEA Title I Part A - Improving Basic Programs
Total CFDA Number 84.010A
84.010A
84.010A
07-610101043910
08-610101043910
2,003
2,290,760
2,292,763
ESEA Title I Part C - Education of Migratory Children
ESEA Title I Part C - Education of Migratory Children
Total CFDA Number 84.011
84.011
84.011
07-615001057950
08-615001057950
106
525
631
Title IV IDEA - Part B, Formula
Title IV IDEA - Part B, Formula
Title IV IDEA - Part B, High Cost Risk
Title IV IDEA - Part B, High Cost Risk
SSA - IDEA - Part B, Discretionary
SSA - IDEA - Part B, Discretionary
SSA - IDEA - Part B, Deaf
Total CFDA Number 84.027
84.027**
84.027**
84.027**
84.027**
84.027**
84.027**
84.027**
07-6600010439106600
08-6600010439106600
07-6610060439106680
08-6610060439106680
07-6600020439106673
08-6600020439106673
08-6600010439106601
Vocational Education - Basic Grant
Vocational Education - Basic Grant
Total CFDA Number 84.048
84.048
84.048
07-42000604391010
08-42000604391010
22,054
276,206
298,260
IDEA - Part B, Preschool
IDEA - Part B, Preschool
Access to the General Curriculum
SSA - IDEA - Part B, Preschool Deaf
Total CFDA Number 84.173
84.173**
84.173**
84.173
84.173**
07-6610010439106610
08-6610010439106610
08-66102271210
08-6610010439106611
12,351
273,530
3,730
10,707
300,318
SSA - IDEA, Part C - Early Intervention (Deaf)
84.181A
08-3910010439103911
2,840
ESEA Title IV - Safe and Drug-Free Schools
84.186A
08-691001043910
148,206
ESEA Title I Part B - Even Start Family Literacy
84.213
08-6120017110204
38,185
Title V, Part A - Innovative Programs
84.298
08-685001043910
109,093
Title II, Part D - Enhancing Ed. Through Technology
84.318x
08-630001043910
21,392
Title III, Language Instruction LEP
Title III, Language Instruction LEP
Total CFDA Number 84.365
84.365
84.365
07-671001043910
08-671001043910
94,056
688,776
782,832
ESEA Title II, Part A, Teacher & Principal Training
ESEA Title II, Part A, Teacher & Principal Training
Total CFDA Number 84.367A
84.367A
84.367A
07-694501043910
08-694501043910
5,024
1,206,654
1,211,678
163,180
9,457,167
68,216
182,677
40,815
135,692
67,089
10,114,836
(continued)
111
EXHIBIT K-1 (Cont'd)
PLANO INDEPENDENT SCHOOL DISTRICT
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2008
Title IV Part A Summer School LEP
84.369
08-69550502
Carl Perkins Voc-Ed Tech Prep Program
84.243
08-81706
Foreign Language Assistance Program
Foreign Language Assistance Program
Total CFDA Number 84.296
84.296
84.296
08-84-293B2006-1
07-84-293B2006-1
63,564
1,080
109,741
130,740
240,481
Total Passed Through State Department of Education
15,626,159
TOTAL DEPARTMENT OF EDUCATION
15,626,159
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Passed Through State Department of Education
Head Start
Head Start
Total CFDA Number 93.600
93.600
93.600
08-CH6042/34
09-CH6042/34
694,375
271,141
965,516
Total Passed Through State Department of Education
965,516
TOTAL DEPARTMENT OF HEALTH AND HUMAN SERVICES
U.S. DEPARTMENT OF AGRICULTURE
Passed Through the State Department of Agriculture
National School Breakfast Program *
10.553
National School Lunch Program *
10.555
Commodity Food Distribution
10.550
Summer Feeding Program *
10.559
Summer Feeding Program *
10.559
Total Passed Through the State Department of Agriculture
965,516
08-043910
08-043910
08-043910
07-043910
08-043910
934,592
4,148,997
931,542
16,532
11,156
6,042,819
TOTAL DEPARTMENT OF AGRICULTURE
6,042,819
TOTAL EXPENDITURES OF FEDERAL AWARDS
$
22,824,888
(Concluded)
* Clustered Programs as required by Compliance Supplement March, 2004 - Child Nutrition
** Clustered Programs as required by Compliance Supplement March, 2004 - Special Education
See Notes to the Schedule of Expenditures of Federal Awards.
112
PLANO INDEPENDENT SCHOOL DISTRICT
NOTES TO SUPPLEMENTAL SCHEUDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2008
1.
The District utilizes the fund types specified in the Texas Education Agency Resource Guide.
Special Revenue Funds are used to account for resources restricted to, or designated for, specific
purposes by a grantor. Federal and state awards generally are accounted for in a Special Revenue
Fund. Generally, unused balances are returned to the grantor at the close of specified grant
periods.
2.
The accounting and financial reporting treatment applied to a fund is determined by its
measurement focus. The Governmental Fund types are accounted for using a current financial
resources measurement focus. All Federal grant funds were accounted for in a Special Revenue
Fund which is a Governmental Fund type. With this measurement focus, only current assets and
current liabilities and the fund balance are included on the balance sheet. Operating statements of
these funds present increases and decreases in net current assets.
The modified accrual basis of accounting is used for the Governmental Fund types and Agency
Funds. This basis of accounting recognizes revenues in the accounting period in which they
become susceptible to accrual, i.e., both measurable and available, and expenditures in the
accounting period in which the fund liability is incurred, if measurable, except for unmatured interest
on General Long-Term Debt, which is recognized when due, and certain compensated absences
and claims and judgments, which are recognized when the obligations are expected to be
liquidated with expendable available financial resources.
Federal grant funds are considered to be earned to the extent of expenditures made under the
provisions of the grant, and, accordingly, when such funds are received, they are recorded as
deferred revenues until earned.
3.
The period of availability for federal grant funds for the purpose of liquidation of outstanding
obligations made on or before the ending date of the federal project period extended 30 days
beyond the federal project period ending date, in accordance with provisions in Section H, Period of
Availability of Federal Funds, Part 3, OMB Circular A-133 Compliance Statement - Provisional 6/97.
4.
The District participates in numerous state and federal grant programs, which are governed by
various rules and regulations of the grantor agencies. Costs charged to the respective grant
programs are subject to audit and adjustments by the grantor agencies; therefore, to the extent that
the District has not complied with rules and regulations governing the grants, refund of any money
received may be required and the collectibility of any related receivable at June 30, 2008 may be
impaired. In the opinion of the District, there are no significant contingent liabilities relating to
compliance with the rules and regulations governing the respective grants; therefore, no provision
has been recorded in the accompanying financial statements for such contingencies.
113
PLANO INDEPENDENT SCHOOL DISTRICT
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2008
I. Summary of the Auditor's Results:
Financial Statements
a.
An unqualified opinion was issued on the financial statements.
b.
Internal control over financial reporting:
c.
•
Material weakness(es) identified?
•
Significant deficiency(s) identified that are not
considered a material weakness?
Yes
X
Noncompliance material to financial
statements noted.
X
Yes
No
None reported
Yes
X
No
Major Programs
d.
Internal control over major programs:
•
Material weakness(es) identified?
Yes
X
No
•
Reportable condition(s) identified that are note
Considered.
Yes
X
None reported
X
No
e.
An unqualified opinion was issued on compliance for major programs.
f.
Any audit findings disclosed that were required to be
reported under Section 510(a) or OMB Circular
A-133.
Yes
g. Identification of major programs:
84.027
Title IV IDEA - Part B, Formula
h. The dollar threshold used to distinguish between Type
A and Type B programs.
$679,961
i.
Auditee qualified as a low-risk auditee.
X
114
Yes
No
PLANO INDEPENDENT SCHOOL DISTRICT
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2008
II. Findings Relating to the Financial Statements Which Are Required To Be Reported in
Accordance with Generally Accepted Government Auditing Standards.
08-1
Condition – The District failed to record federal financial assistance received due to a change in the
method of delivery of donated commodities.
Effect – A significant adjustment was necessary to record federal financial assistance for commodities
received on behalf of the District by an independent third party.
Cause – The District’s controls over financial reporting do not address unusual changes in
transactions, specifically non-cash transactions.
Recommendation – The District should implement controls that will review unusual changes in
business practices and evaluate the financial implications of such changes. The District should also
educate non-financial staff on communication to the Finance Department on any significant changes
in the District’s transactions and notify the Finance Department of all non-cash transactions.
Management’s Response - The District will add an item to our audit check list to identify non-cash
transactions. We will work with other Business Services Division departments to educate them on
what is considered to be a non-cash transaction. During the fiscal period, through our Business
Services Division staff meetings with the Associate Superintendent we will routinely discuss changes
in business processes that might cause non-cash transaction to occur. We will review processes in
other departments as well that may have the potential to result in a non-cash transaction. Staff
responsible for implementing this will be the Director of Budget and Accounting, the Executive
Director of Finance and the Associate Superintendent for Business Services.
08-2
Condition - The District did not record expenditures classified as Program 22 – Career & Technology
in the amount of or in excess of 90% of the Career and Technology allotment as required by the
Texas Education Agency (TEA).
Effect – No known effect.
Cause – The District expended funds for Career and Technology in the capital projects funds which
are not considered local funds by TEA and therefore were not considered in the 90% calculation.
Additionally, all staff teaching Career and Technology courses needed to be reviewed to ensure they
are coded correctly to this program.
Recommendation – The District should ensure all expenditures in local funds relating to the Career
and Technology program are coded as such.
Management’s Response - The District is in the budget balanced category with the Texas Education
Agency (TEA) for the Foundation School Program (FSP) due to our property wealth level. This
categorization results in the District receiving no Tier I funding from TEA. The program allotments, of
which Career and Technology is one, are a part of the Tier I funding provided by TEA. In our case,
local dollars are directed to meet the spending requirements set by TEA for all allotments. We will
strive to examine expenditures to ensure all Career and Technology related items are appropriately
coded to this program. We have already begun this process in fiscal year 09 by reviewing staff coded
to Career and Technology with the curriculum staff responsible for this program on an individual
basis. The staff responsible for implementing this will be the Executive Director of Finance, the
Director of Career and Technology, the Manager of Student Records and the Director of Budget and
Accounting.
III. Findings and Questioned Costs for Federal Awards Including Audit Findings as Described in
1.f Above
None
115
PLANO INDEPENDENT SCHOOL DISTRICT
SUMMARY OF PRIOR YEAR AUDIT FINDINGS
YEAR ENDED JUNE 30, 2008
IV. Findings Relating to the Financial Statements Which Are Required To Be Reported in
Accordance with Generally Accepted Government Auditing Standards.
FINDINGS #07-1
Condition:
The District accounted for all special revenue funds on the project basis, recognizing income as
spent.
Current status:
The District was in compliance with this requirement for the fiscal year ending June 30, 2008.
116