Comprehensive Annual Financial Report

Transcription

1 Comprehensive Annual Financial Report of the Killeen Independent School District For the Fiscal Year Ended August 31, 2005 Issued by: Billy Walker Assistant Superintendent for Business Services Killeen Independent School District 200 North W.S. Young Drive Killeen, Texas 76543

2 Exhibit KILLEEN INDEPENDENT SCHOOL DISTRICT ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED AUGUST 31, 2005 TABLE OF CONTENTS Page Certificate of Board Introductory Section Letter of Transmittal Principal Officers Organizational Chart ASBO Certificate of Excellence in Financial Reporting GFOA Certificate of Achievement for Excellence in Financial Reporting iv I XVII XVIII XIX XX Financial Section Independent Auditors' Report 1 Management's Discussion and Analysis 3 Basic Financial Statements Government WideStatements: A1 Statement of Net Assets 13 B1 Statement of Activities 15 Governmental Fund Financial Statements: C1 Balance Sheet 17 C2 Reconciliation for C1 19 C3 Statement of Revenues, Expenditures, and Changes in Fund Balance 21 C4 Reconciliation for C3 22 C5 Budgetary Comparison Statement General Fund 23 Proprietary Fund Financial Statements: D1 Statement of Net Assets 24 D2 Statement of Revenues, Expenses, and Changes in Fund Net Assets 25 D3 Statement of Cash Flows 27 Fiduciary Fund Financial Statements: E1 Statement of Fiduciary Net Assets 28 E2 Statement of Changes in Fiduciary Net Assets 29 Notes to the Financial Statements 31 Supplementary Information: Combining Statements Nonmajor Governmental Funds: H1 Combining Balance Sheet 64 H2 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 72 Agency Funds: H9 Combining Statement of Changes in Assets and Liabilities 79 Private Purpose Trust Funds: H10 Combining Statement of Net Assets 80 H11 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets 82 Required TEA Schedules J2 Schedule of Expenditures for Computation of Indirect Cost for J3 Fund Balance and Cash Flow Calculation Worksheet 86 i

3 Exhibit Page J4 Budgetary Comparison Schedule Child Nutrition Program 87 J5 Budgetary Comparison Schedule Debt Service Fund 88 J6 Bond Schedule 89 J7 Mandated Programs Schedule General Fund 91 Statistical Section General School System Expenses by Function GovernmentWide Last Three Fiscal Years 95 General School System Revenue by Source GovernmentWide Last Three Fiscal Years 96 General Governmental Expenditures by Function Last Ten Fiscal Years 97 General Revenues by Source General Governmental Fund Types 99 Schedule of Delinquent Taxes Receivable Current Status of Last Ten Levy Years 101 Property Tax Levies and Collections Last Ten Fiscal Years 103 Assessed and Estimated Actual Value of Taxable Property 105 Property Tax Rates All Direct and Overlapping Governments 107 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita Last Ten Fiscal Years 108 Computation of Net Direct and Overlapping Debt 109 Computation of Legal Debt Margin 110 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Governmental Expenditures Last Ten Fiscal Years 111 Attendance Data Last Ten Fiscal Years 112 Personnel Information 113 Schedule of Ten Largest Taxpayers 114 Schedule of Construction Value, Property Value, and Bank Deposits Last Ten Fiscal Years 115 Schedule of Ten Largest Employers 116 Schedule of Insurance Coverage 117 ii

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7 Jim Hawkins, Ph.D. Superintendent of Schools KILLEEN INDEPENDENT SCHOOL DISTRICT P.O. Box North W.S. Young Drive Killeen, Texas / November 2, 2005 Board of Trustees Killeen Independent School District 200 North W. S. Young Drive Killeen Texas Members of the Board: The comprehensive annual financial report of the Killeen Independent School District (district) for the fiscal year ended August 31, 2005, is hereby submitted. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the district. To the best of our knowledge, the enclosed data is accurate in all material aspects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds and account groups of the district. All disclosures necessary to enable the reader to gain an understanding of the district's financial activities have been included. The comprehensive annual financial report is presented in three sections: introductory, financial and statistical. The introductory section includes this transmittal letter, the district's organizational chart, and a list of principal officers. The financial section includes the basic financial statements, the combining financial statements and the required TEA schedules, as well as the auditors' report on the financial statements and schedules and the Management Discussion and Analysis. The Management Discussion and Analysis presents our discussion and analysis of the district s financial performance during the year audited. The statistical section includes selected financial and demographic information, generally presented on a multiyear basis. The district includes all funds of its governmental operations that are controlled by or dependent upon the district as determined on a basis of financial accountability. Financial accountability includes appointment of the organization s governing body, imposition of will, and fiscal dependency. The accompanying financial statements include only those funds of the district, as there are no other organizations for which it has financial accountability. The district is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act as amended in 1996 by U.S. Office of Management and Budget Circular A133, Audits of States, Local Governments and NonProfit Organizations. Information related to this single audit, including the schedule of expenditures of federal awards, findings and recommendations, and auditors' reports on the internal control structure and compliance with applicable laws and regulations are included in a separate report. I

8 ECONOMIC CONDITION AND OUTLOOK Killeen s economy continues to grow at a rapid pace. New retail and food service businesses continue to locate in the area. Jobs are created regularly which encourages people leaving the Army at Fort Hood to choose to stay in this area. Major metropolitan areas are easily accessible 150 miles to San Antonio, 162 miles to DallasFort Worth, and 190 miles to Houston. Killeen is located on the main line of the Santa Fe Railroad and straddles U.S. Highway 190/Central Texas Expressway, a fourlane divided highway with near interstate standards. Austin is just 60 miles to the south. This close proximity lends a "big city advantage." Killeen is far enough away to enjoy its own lifestyle, yet close enough to enjoy one of the most sophisticated, urban population centers in the Southwest. Low cost of living, excellent schools, regional medical facilities, abundant shopping, mild climate, area lakes, and recreational facilities have each played positive roles in the rapid growth of the Killeen/Harker Heights area. Killeen, Texas, is home to Fort Hood, the largest active duty armored post in the United States Armed Forces and the largest single location employer in the state of Texas. Many soldiers who separate from Fort Hood each month remain in the area and provide a constant supply of labor trained in microelectronics, hydromechanical devices, laser optics, and other hightech fields. Welltrained and educated military spouses and retirees provide an experienced labor force needed by a relocating industry. Commercial building continues in Diversification of the Killeen economic base has continued in the current year as more industries and industrial site consultants discover that Killeen has an abundant labor force, excellent climate, good schools and overall excellence in quality of life. The following table indicates the current increase in dollar value of building permits: VALUATION OF BUILDING PERMITS Calendar Harker Year Killeen Heights Total Change 1995 $ 106,636,066 $ 23,346,495 $ 129,982,561 7% ,591,635 16,339, ,930,694 1% ,943,877 12,832, ,776,571 1% ,965,765 33,552, ,518,145 38% ,312,021 32,290, ,602,745 3% ,081,830 25,106, ,188,384 8% ,121,933 42,959, ,081,843 39% ,652,321 40,367, ,019,374 6% ,139,868 79,369, ,509,280 13% ,245,733 83,147, ,393,003 2% ECONOMIC GROWTH RESULTS IN CONTINUED GROSS SALES INCREASE The Killeen area experienced another increase in gross sales during the 2004 calendar year. Gross sales have increased for the last ten years and are expected to increase again during the 2005 calendar year. Texas Comptroller of Public Accounts, Economic Analysis Center published the following information: II

9 GROSS RETAIL SALES KILLEEN/HARKER HEIGHTS (IN 000'S) Eat/Drink General Year Food Places Merch. Auto Total 1995 $ 137,578 $ 84,615 $ 336,825 $ 296,183 $ 855, ,770 87, , , , ,098 91, , , , , , , , , , , , ,460 1,017, , , , ,638 1,136, , , , ,347 1,269, , , , ,300 1,310, , , , ,338 1,320, , , , ,314 1,501,143 FORT HOOD Fort Hood is the Army's premier maneuver installation and strategic power projection platform, providing facilities and resources to sustain, maintain, train, and deploy combatready forces capable of meeting our nation's needs at all points along the ground warfare conflict spectrum. With approximately 47,000 assigned soldiers and airmen, in addition to 9,600 civilian employees, Fort Hood is the largest single site employer in the state of Texas. The Texas State Comptrollerestimated annual direct and indirect economic impact of Fort Hood on the Central Texas region is $6.1 billion. Fort Hood's primary mission focus is supporting the training of its assigned units, as a mobilization station for Army Reserve and National Guard units, and as a strategic power projection platform. The installation also serves a wide variety of tenant organizations and ensures the highest quality of life support for a diverse military community of Soldiers, family members and retirees numbering approximately 200,000. Fort Hood occupies 339 square miles of Bell and Coryell Counties, 60 miles north of Austin and 50 miles south of Waco. Seven surrounding cities with a regional population of 325,000 are partnered with and provide substantial quality of life support to Fort Hood. Fort Hood is the Army s premier training installation with 199,541 acres of training area, of which 134,600 acres are set aside for maneuvers. Its largest single training segment is the Western Maneuver Area an area that stretches 20 miles from north to south and from the western boundary of the installation eastward to the live fire impact area. The largest combat aviation training area in the free world, compromising 15,900 square miles, begins on Fort Hood and continues from Bell and Coryell Counties in the east to Runnels and Tom Green Counties in the west, permitting both US and allied military helicopter crews to train over a variety of terrain, in a realistic environment that affords the distances and depths required in combat aviation operations. KILLEENFORT HOOD REGIONAL AIRPORT A variety of services and business are available at the KilleenFort Hood Regional Airport (GRK). The KilleenFort Hood Regional Airport offers excellent commercial airline service with over 30 daily flights to and from Dallas/Fort Worth International and George Bush Intercontinental (Houston) Airports daily. Inside the terminal you will find a comfortable setting for passengers to include two restaurants, gift shop, internet kiosks, and several car rental agencies. Ground transportation is available to numerous lodging and dining facilities located just minutes away in Killeen, adjacent to Fort Hood, Harker Heights, and surrounding communities. Centrally located along the Interstate 35 corridor, the Killeen Airport is only an hour drive from Austin or Waco. III

10 HEALTH CARE The outstanding medical facilities in the area are key attractions of the Killeen community. The area serves as a regional medical center with over 800 hospital beds within 20 miles. Metroplex Hospital, Scott and White Clinic and King's Daughters Clinic provide medical care to all citizens. Darnall Army Community Hospital provides comprehensive health care to more than 140,000 beneficiaries that include active duty military, their family members and retirees who live within 40 miles of the hospital. Located just west of Killeen, Metroplex Hospital provides 202 beds and more than 120 physicians in 35 specialties. The Metroplex Health Systems equipment is highend stateoftheart technology. The hospital houses a 24hour emergency center, high tech testing centers, general and same day surgery suites, a birthing center and the Pavilion, a full service mental health facility offering inpatient and outpatient services for all ages. The Scott and White Killeen Clinic accommodates 19 physicians. The Killeen Clinic provides primary care for all patients available under one roof. Specialty clinics offering comprehensive care in cardiology, oncology, nephrology, obstetrics/gynecology and dialysis services are located nearby. The Scott and White Health Care System is composed of a network of Regional Clinics, a 486 bed notforprofit hospital in Temple and the notforprofit Scott & White Health Plan. CULTURAL ACTIVITIES The Killeen Civic and Conference Center is composed of the Civic and Conference Center, Exhibition Hall, Rodeo Arena and Vive Les Arts Theatre. The 64,000 squarefoot Civic and Conference Center with a multifunctional exhibit hall can house close to 200 booths and subdivides into three smaller halls. There are six meeting rooms that can seat 25 to 50 attendees. A hotel is being planned at the conference center site. The Vive Les Arts Societe was organized in May 1976 to provide a base for cultural activities in the greater Killeen area. Vive Les Arts not only supports both performing and visual arts, but also brings concerts, symphonies and children's theater productions to the area. In 1991 The Societe opened a center for the performing arts. The center features a 400seat theater and a combination gallery/reception area. IV

11 EDUCATION KILLEEN INDEPENDENT SCHOOL DISTRICT The Killeen Independent School District (KISD) has grown from an enrollment of 20,413 students in to a peak enrollment of 33,518 in The largest school district between Austin and Dallas, KISD employs over 5,400 teachers and support personnel to serve the district's 47 campuses. KISD serves as the area's second largest employer (Fort Hood is the largest). Students from Killeen, Harker Heights, Fort Hood, Nolanville and rural West Bell County attend classes at twentynine elementary schools (PK5), eleven middle schools (68), four high schools (912), two alternative centers, and one area vocational school. Besides the 47 regular schools and several specialized campuses, the district utilizes 198 portable buildings, which provide approximately 200 potential classrooms. Killeen High, Ellison High, Harker Heights High and Shoemaker High provide multilevel academic instruction on a sevenperiod schedule and extracurricular activities. The Career and Technology Education Center provides upper level courses in Health Science Technology to include a clinical rotation program and several courses with state or national certification. Agriculture courses provide research options as well as hands on labs in agricultural mechanics, metal fabrication, animal science, and landscape design. Students explore careers through workbased learning labs and some job site training in the Trade and Industrial programs. Hospitality Services, Auto Collision and Auto Technician are contract of services courses taught at Central Texas College. The Firefighter program is an innovative course that is taught through collaboration with the City of Killeen Fire Department. All programs at the Career and Technology Education Center have cocurricular youth leadership organizations. Transportation is provided for secondary students who live two or more miles from their designated school, for elementary students who live one or more miles from their designated schools, and for any students who live in an area that has been designated as hazardous by school officials. Students in grades prekindergarten through 12 board buses at designated bus stops. Students who are assigned to special education transportation are transported without regard for minimum distance from school. Special program transportation is also provided for students in Alternative Education Programs (AEP). Elementary AEP students who live one or more miles from the supporting campus (Ira Cross Elementary) are provided transportation between their residence and school. Secondary AEP students are provided transportation to bus stops that are within two miles of their residence. International Baccalaureate (IB) students are provided transportation on a limited basis between the supporting campus (Killeen High) and bus stops that are within two miles of their residence. CENTRAL TEXAS COLLEGE Central Texas College (CTC) is a public, twoyear community college offering associate degrees, certificates of completion and continuing education courses for personal or professional development. Programs are available online, in traditional classroom settings, and by multimedia delivery methods for academic, professional and vocational/technical fields. In 2005 CTC will award approximately 2,000 associate degrees and 500 certificates of completion at more than 140 sites around the world. CTC offers classes on military installations, ships at sea and correctional institutions. CTC s central campus is situated on 515 acres between the cities of Killeen and Copperas Cove. Central Texas College has maintained its accredited status with the Southern Association of Colleges and Schools since first being awarded accreditation in 1969, and was reaffirmed most recently in June TARLETON UNIVERSITY SYSTEM CENTER CENTRAL TEXAS Tarleton University System Center Central Texas, commonly referred to as Tarleton State University Central Texas (TSUCT), is an extension of Tarleton State University which is a member of The Texas A&M University System. TSUCT offers affordable, upperlevel educational opportunities to Central Texans, and also offers courses on Fort Hood, at Central Texas College, Temple College and at Shoemaker High School. The institution offers bachelor s degrees in 26 areas and master s degrees in 38 areas. V

12 MAJOR INITIATIVES STANDARD BEARER NETWORK In 2004, the Killeen ISD became a member of the Standard Bearer Network of Texas in partnership with the Schlechty Center for Leadership in School Reform. There are 10 District Standards, grouped around the development of three System Capacities: The Capacity to Focus on the Future (Shared Understanding of the Need for Change, Shared Beliefs and Vision); The Capacity to Maintain Direction and Focus (Focus on the Student and Product Quality, Participatory Leadership, ResultsOriented Decision Making, and Continuity); and The Capacity for Strategic Action (Support, Innovation and Flexibility, Technology, and Collaboration). The Schlechty Center has formulated a set of premises. Districts that engage in StandardBearer work commit to these premises, as they provide both a discipline and a point of view for making changes and for building system capacity. The following are the bedrock beliefs that unite the Network districts: The Core Business of Schools is to ensure that every student, every day, is provided challenging, interesting and satisfying work. There Is a Need for Dramatic Improvement in the performance of public school students and public school systems. The District Standards provide a means for dealing with cultural as well as structural change. The Primary Customers of Schools are the students. Students are volunteers in the sense that their willingness to give or withhold commitment conditions the extent to which they invest effort in schoolwork. A Changed Core Business Requires Changed Roles involving everyone in the district. Everyone has a role; the roles interrelate throughout the district to create a system where everyone is focused on students and the work provided to students. Beliefs, Vision, and Results Define the System, and in an effective system, compelling beliefs and vision give focus and direction, desired results are clear, and everyone knows that decisions are made in accord with the beliefs, vision, and results to be achieved. Leadership Is Everyone s Business, for school systems do not need just a few more strong leaders. They need more leadership at all levels in the system, and the development of leadership qualities and expectations should be a primary concern of system operations. Capacity Building Is the Key and involves putting the values, structures, and resources in place to initiate and to sustain change over the long haul. MISSION STATEMENT Killeen Independent School District will empower all students with the knowledge and skills essential to embrace a lifelong love of learning and to thrive as responsible citizens creating their own future. CORE VALUES We believe that: Each individual has worth. Each individual is responsible for his or her own choices. Diversity strengthens a community and promotes individual growth. Each individual has potential for positive achievement. Each individual can learn, and lifelong learning is essential for quality of life. The future of American democracy depends on the informed, active participation of all its citizens. STRATEGIC OBJECTIVES All students will continuously set, plan for, and achieve challenging personal goals. All students will actively and continuously participate in activities of their own choosing for the betterment of the community. All students will eagerly and continuously pursue learning experiences inspired by their interests and curiosity. All students will demonstrate the knowledge and the skills necessary to succeed and excel at their next level of learning. VI

13 DISTRICT ACCOMPLISHMENTS 1. Parental and Community Involvement One of the ongoing objectives of the district is to increase and enhance parental and community involvement. Scheduled parent teacher conferences continue to be a great success with 9799% parent attendance in the elementary grades. Other strong district initiatives that provide parental and community involvement include: Communities in Schools programs serving at risk student populations, parental involvement workshops at each campus and district wide, a strong parent volunteer corps, and an annual Parental Involvement Symposium. The civilian and military communities offer support through the Ft. Hood 2010 Adopt A School Program and the Greater Killeen Chamber of Commerce Adopt A School Program. Each year our middle school and high school students design and lead the area s America s Promise youth conference. 2. Math Initiatives Teachers (K2) new to KISD or the grade level attend one day of professional development on the curriculum and district expectations each semester to help them to better understand the district expectations for their grade level in K5 math. The KISD math curriculum is designed to build the capacity (in our students) to solve problems they encounter in school and in their daily lives. Teachers focus on the conceptual development of mathematical ideas; through hands on activities and questioning strategies that encourage students to explain what they are learning in their own words. This strategy deepens their understanding of the processes and skills they are learning. Mathematical facts and procedures are taught to mastery and viewed as tools for solving problems. Mastery of basic computational skills is one of the goals of the initiative. During the school year district administers reviewed test results, curriculum expectations and student performance. It was determined that middle school mathematics was in need of attention. This led the district to enter into an agreement with the Charles Dana Center to participate in a three year comprehensive, curriculum review, professional development, TEKS study, Partnership for High Achievement, PHA. All middle school mathematics teachers along with their principal and campus instructional specialist and with select high school Algebra I teachers and select 5 th grade teachers will meet 4 times during the school year to study the development of a common lesson vertically through the grades and horizontally across the district. At the end of the year data will be studied, adjustments will be made and the cycle will begin again. The high school campuses are using the web based Agile Mind/Think Five curriculum developed through the Dana center to teach using technology and to increase student engagement. The program is available for Algebra 1, Algebra 2, Geometry, AP Statistics and AP Calculus. Student achievement will be evaluated in May. 3. Elementary Reading/Literacy Initiatives During the school year, the grades 35 Language Arts/Social Studies Curriculum was and is continuing to be updated. The update includes all of the strategies from the reading initiatives with a concentration on shared reading and building comprehension skills for students. Reading Curriculum Based Assessments were developed for grades 3, 4, and 5 during the summer for administration during the school year. These assessments are developed to benchmark reading comprehension and to guide instruction. Model teaching for small group instruction for grades K5 continued to help struggling readers during New teachers continued to receive literacy/reading training as part of their induction year commitment. 4. Science Initiatives Curriculum and Instruction revised the science curriculum in kindergarten through twelfth grade including PreAP. Teachers added the technology application TEKS to the curriculum and made minor changes in the sequence of instruction. PreAP addressed strategies to ensure appropriate rigor in the curriculum. In order to evaluate implementation of the scope and sequence, district incremental exams were written for fifth grade. Additional tests were written in the summer for grade 7 science, biology, chemistry and integrated physics and chemistry which were implemented in the 2003 school year. The school year continued the After School Specials (Initiative) for 5 th graders each nine weeks. The 4 th grade had one After School Special. Science teachers were encouraged to attend the Conference for the Advancement of Science Teachers. We are continuing Pre AP training for science teachers. One of the goals of Curriculum and Instruction was to increase science instruction in the elementary grades. Since many teachers did not have intensive background knowledge in science instruction, it was important to offer teachers an opportunity to experience some handson activities to use with their students. The inquiry method of learning was stressed during the model lessons. Every nine weeks, Science After School Specials were offered. These specials provided teachers with ideas and materials to take directly back to their classroom and use with their students. They followed the Texas Essential Knowledge and Skills for science. VII

14 The 2002 school year was the first year to implement the PreAP curriculum at the middle school level. In order to support the instruction of this curriculum, supplies (including technology) were purchased and distributed to the PreAP teachers. Professional development was offered in the summer of 2003 for teachers to learn more about their grade level curriculum and assessments. Training for secondary teachers was provided on the TI 83PLUS calculator along with probes. Seventy teachers attended PreAP training in Austin, Texas, in their content area. The grade 7 science incremental assessment was added to support the implementation of science instruction during the school year. In , the AfterSchool Science Specials/Initiatives continued with the 5 th grade teachers. Midyear, the fourth grade teachers had their first Afterschool Science Special. All teachers were encouraged to attend the state Conference for Advancement for Science Teachers as well as the national conference. We continued Advanced Placement training in science for teachers. In , we began the After School Science Initiative for eighth grade teachers and added the 8 th grade science Curriculum Based Exam. 5. Districtwide Vertical Teaming To ensure that there are no gaps in instruction for students in Killeen Independent School District PK12 and to promote the sharing of successful practices, vertical teaming was expanded in the 2002 and 2003 school years to include the other core areas of language arts, math, and social studies. Vertical teams from across the district attend meetings 23 times a year. The agendas include knowledge building of best practices for the core areas, studying the TEKS and TAKS objectives, making connections, concept based instruction and conversing with other grade levels about instruction. Vertical Teaming was continued in all content areas, language arts, math, science and social studies for Area II in January Service Learning One of the objectives of the strategic plan is that all students will actively and continuously participate in activities of their own choosing for the betterment of the community. All KISD campuses had the opportunity to apply for money to support this service learning endeavor. One campus participated in projects during the school year. Money for supplies to complete the projects was provided along with transportation to the service site. One example was ART PALS where third grade students from Clear Creek Elementary School learned art skills along with senior citizens at a retirement home. The Killeen Art Guild taught both of these groups together. The students assisted the senior citizens with the activities and each group benefited from the experience. 7. Writing KISD adopted Northwest Regional Educational Laboratory s, 6 +1 Traits of Writing model as the writing framework for all grade levels, PK12. This model gives the district a shared vision and vocabulary for describing the qualities of writing. It also enables teachers to identify and document individual student writing strengths and areas for growth. The Traits framework provides teachers with a model for prioritizing, focusing, and individualizing the instruction of writing in the classrooms. Each campus selected teachers and/or administrators to attend a two day introductory workshop and three days of a 6+1 Trainer of Trainers workshop; these participants then presented the training to the teachers on their campuses. New teachers in KISD receive training in Traits through the New Teacher Induction program (NTI). Opportunities for refining the teaching of the model are offered in a variety of summer professional development sessions for teachers and administrators. 8. Fast ForWord KISD adopted the Fast ForWord program which is a computerbased tutorial system that helps students of all ages and learning abilities rapidly improve language, reading, and learning skills. The program emphasizes basic sound processing; provides intense, frequent and adaptive training; creates the solid foundation that enables our district reading program to work better; and makes it easier for students to acquire other learning skills. Fast ForWord acts as an intervention tool for language and reading skills such as phonological awareness, letter and sound identification, blending, working memory, listening, word recognition and decoding, among others. All campuses have the program available. Fast ForWord products continue to help teachers provide intense, prescriptive TEKS correlated computerbased instruction for language skills acquisition. These products also assist students during various stages of language and reading development. Each program is designed to reinforce previous training and emphasizes a systematic protocol. 9. Read 180 KISD implemented the Read 180 reading intervention program in August of 2005 at all middle schools. Read 180 is an intensive reading intervention program designed to meet the needs of students whose reading achievement is below the proficient level by using individual student performance data to adjust and differentiate reading instruction. The program directly addresses individual needs through adaptive and instructional software, highinterest literature, and direct instruction in reading strategies. VIII

15 Read 180 fosters daily studentteacher interaction through wholegroup, smallgroup, and oneonone instruction. The technology component of Read 180 continually monitors and adjusts the level of instruction and allows teachers to target instruction that leads to reading improvement. Read 180 teachers receive comprehensive support through a complete curriculum of instructional materials, continuous assessments and reports on student performance, and ongoing professional development to help foster and sustain engaging instruction. 10. Scholastic Reading Inventory KISD implemented the Scholastic Reading Inventory (SRI) for all middle schools in August of The SRI incorporates the Lexile Framework for Reading which is a researchproven system for measuring students reading levels and matching students to text. The Lexile Framework uses a common metric to evaluate both reading ability and text difficulty. By placing the reader and text on the same scale, teachers can forecast the level of comprehension a student will experience with a particular text and evaluate curriculum needs based on each student s ability to comprehend the materials. SRI provides teachers the opportunity to: learn students Lexile measures in about twenty minutes, access immediate, actionable data on student reading performance, monitor reading growth over time, connect classroombased assessment with TAKS performance, and provide students with individualized reading lists which match their interests and abilities. 11. District Incremental Assessments During the school year the Department of Curriculum and Instruction developed nine week incremental assessments for grades 18 math, Algebra 1, and grade 5 science. Incremental assessments for grades 8, 10, and 11 social studies, biology, chemistry, and integrated physics and chemistry were administered during the school year. During the school year incremental assessments were administered to math grades 18, Algebra I, Algebra II, geometry; science grade 5 and 7, Integrated Physics and Chemistry, Biology, and Chemistry; social studies grade 8, World History and U.S. History. 12. Textbook adoption During the school year the following textbooks were up for adoption: K12 Health, K12 Physical Education, Languages Other Than English and K12 Fine Arts. The department of curriculum and instruction facilitated this process through the selection of teacher committees, study of products and voting procedures. Textbooks were funded by the Governor s office in August of All books were funded except elementary physical education. Books were delivered to campuses in September. As they become available professional development in their use and plans for new curriculum to reflect these new resources are being planned. 13. Curriculum Writing/Management Curriculum was written for grades K5 integrated language arts and social studies, grades 612 social studies, and grade 5 math during the spring and summer of Science curriculum for all grades was updated. Curriculum writing teams were composed of district classroom teachers from textbook task forces along with members of content area vertical teams and campus instructional specialists and were facilitated by district instructional specialists. All curricula are written using a conceptual framework based upon Understanding by Design. All KISD curricula is webbased, housed on the district website and can be accessed through the web based curriculum management system. During the school year, new curriculum was implemented in the areas of K5 integrated language arts and social studies, grades 612 social studies, and grade 5 math. Campus instructional specialists were trained by district instructional specialists and curriculum writing team members in this implementation. New teachers were given professional development in the curriculum during induction year training. The department of curriculum and instruction gathered feedback at the end of the year to use for curriculum updates. During the summer of 2004, curriculum writing teams composed of classroom teachers and campus instructional specialists updated the math K8 and high school math curriculum based upon teacher input. The integrated language arts/social studies curriculum was also updated. All curriculum writing projects are facilitated by the district instructional specialists. Curriculum writing designed to incorporate the updated TEKS for mathematics Kprecalculus are planned for the summer of Teacher Recruiting Program The district s recruiting initiative, with an annual budget of approximately $40,000, has been lauded in a state Equal Employment Opportunity audit. We continue to hire teachers annually. The efforts primarily focus inside Texas but extend throughout the nation, and include job fairs, alternative teacher certification preparation programs, numerous internet recruiting sites and Troops to Teachers. KISD is profiled at The KISD online application and the Gallup Teacher Insight interview, also online, provide immediate information about prospective employees. Additionally, the KISD Board of Trustees fund a bonus of $1,500 for every new teacher hired, plus $2,500 for every new math teacher hired. A $2,000 position stipend is provided for all selfcontained special IX

16 education teachers, and bilingual teachers. The local concept of priority schools was adopted to increase minority hiring with the goal being a staff that reflects the rich diversity of our students. Through the years our minority teacher to minority student ratio has decreased from 1:61 to 1:38. In August 2002, we opened school with only 15 vacancies as compared to 2025 in previous years. In August 2003, we opened school with only one vacancy. In August 2004 we opened three new campuses and endured significant rezoning, causing student projections and staffing allocations to be delayed in going to our Board for approval. We still were able to start school with only 12 teaching vacancies. In August 2005, we opened one new school and started the year with 10 vacancies. Contributing to our success were our internet recruiting and the Board s approval of a $1,000 increase in annual salary for beginning teachers, keeping KISD as one of the leading districts in Central Texas for teacher beginning salaries. TECHNOLOGY KISD has developed a District Strategic Technology Framework encompassing all aspects of educational and administrative technology services in the district. The framework is designed to align with the district vision and serve as a guide for the school district and campuses to build a new vision for student achievement. Each department or campus will create an action plan that will include an analysis, technology expenditures, and a measurement of student achievement. All action plans will go through the Technology Adoption Process to determine its effectiveness and integration with curriculum, administrative and support services, infrastructure, resources needed, and priority. The District Strategic Technology Framework provides guidance to Curriculum & Instruction, Instructional Technology and Technology Services in support of integration of technology into the curriculum. The framework focuses on the key areas that promote the use of technology for improvement of student achievement which include: All district departments will have technology resources that enhance departmental objectives. All curriculum areas will have hardware and software that supports instructional goals/objectives. Each curriculum area will integrate technology into content scope and sequence to provide direction and support of the curriculum. All faculties and staff will have appropriate initial/ongoing training and support in the use of technology. Each access to technology resources will be available for all district staff. Access to information for staff, students, and parents will be readily available and easily accessible. In , the distribution of modern computers began with an initial expenditure of $2 million. In , that effort continued with an additional $4 million expenditure which included both instructional and administrative technology purchases. During the school year, approximately 550 teachers received laptop computers. The end result significantly increased student access to updated computers and a 1:1 fielding of modern computers to a trained teaching staff. PROFESSIONAL STAFF DEVELOPMENT In collaboration with all campuses and many departments, the KISD Professional Development department provides and supports a variety of learning experiences for all employee groups throughout the year. Each summer employees have the opportunity to attend approximately 100 workshops, with all sessions for instructional employees focused on designing engaging work for students. Along with the Superintendent s office and the Schlechty Center, the professional development department codesigned and sponsored a threeday leadership academy during summer 2005, introducing district and campus administrators to the district s new vision and learning communities. The district completed training for all elementary and selected middle school campuses in the Diana Day behavior management and relationship building program during and completed the second year of training high schools and selected middle school campuses on the Canter behavior management and relationship building program. In order to sustain these classroom management initiatives, the first phase of a cadre program was designed and implemented. KISD provides all teachers and professional employees who are new to the district with a comprehensive and differentiated induction program, including state PDAS appraisal training, and all teachers new to the profession with a mentor. The district is featured in a nationally distributed teaching video and book addressing the topic of action research. In addition to coordinating campus professional development and providing logistical support for district initiatives, KISD provides online registration and tracking of Continuing Professional Education (CPE) for all employees, including training conducted on campuses and through Education Services and other departments, and tracking of General Management Training (GMT) and PDAS certification for administrators. X

17 LEADERSHIP ACADEMY Each year the district provides a series of staff development opportunities for instructional leaders. These include a variety of approaches such as book study groups, laboratory experiences, KISD initiated conferences, and fulllength workshops. Leadership and management skills training provide the structure for which sessions are developed. Topics include educational theory research such as change theory and engagement theory, instructional strategies, computer applications, documentation and special needs practices, curriculum and professional development models, conflict resolution, observation strategies, facilitation skills, and managementrelated concerns. GOAL III OF THE 1991 KISD STRATEGIC PLAN Goal III encourages employees to voluntarily learn new skills, apply and measure the effectiveness of these skills and receive a stipend. The program currently exists for teachers, teacher mentors, food service employees, instructional aides, secretaries and transportation employees. GOAL III TEACHERS Goal III for Teachers, begun in 1996, is KISD s nationally recognized Association for Supervision and Curriculum Development (ASCD) twoyear collaborative action research model, which is structured around monthly networking sessions made up of teachers who have attended the same summer professional development session or district initiative. Year One helps participants correctly implement and perfect the learned topic. Reciprocal observations, reflective journaling, and a collaborative review of literature prepare participants to write a short paper describing the impact of the learning on students, what participants learned, and an action plan for the next year. Implementing their action plan, Year Two participants use data collected throughout the year to complete an action research project presentation to peers. Samples of exemplary projects can be accessed on the KISD website. GOAL III MASTER MENTORS Master Mentor Goal III provides intensive, comprehensive mentor training based on best practice for successful induction and mentoring programs. Written and presented by members of the KISD Mentoring Evaluation Committee, a group of mentors, former protégées, and campus instructional specialists, the program consists of Initial Mentor Training and four Master Mentor Modules: Relationships and Communication, Coaching and Guiding the Protégé, Leadership Styles, and a book study. During , 196 mentors participated in the Master Mentor modules. GOAL III SCHOOL NUTRITION The auxiliary portion of the Goal III program began in 1997 with the School Nutrition Department which now has 18% of its personnel participating. The curriculum is supplied by the Texas School Food Service Association that provides professional certification of food service workers. Central Texas College provides the instructional aspect of the program at CTC and on KISD campuses. Course components include technician, specialist, supervisor, and manager training. GOAL III SECRETARIES Goal III for secretaries began in Because no commerciallydeveloped program could be found to meet all of the needs of KISD secretaries, a program was designed by a KISD steering committee. With committee input and employee survey results, a combination of core courses and electives were combined to meet the diversified needs of KISD secretaries. Core courses include Time Management, Filing, Standard Operating Procedures, Communications, Customer Service, Conflict Resolution, Legal Issues, Poverty, and Military Child. This program has grown to include approximately 30% of all eligible KISD secretaries. GOAL III INSTRUCTIONAL AIDES Instructional Aides joined the Goal III program in As with the secretaries, no single program could be found to meet all of the aides needs. A combination of two programs was formed from Utah State University and a large variety of electives addresses this diversity. Participants choose over 50% of their program courses from electives XI

18 that are designed to meet their unique professional requirements. Core courses include Behavior Management, Communication, Effective Instruction, Students with Disabilities, Classroom Management, and Academic Monitoring and Feedback. KISD has 25% of all aides participating in the program. GOAL III TRANSPORTATION The Goal III program for transportation was designed through input from transportation employees and administrative staff. This program is divided into two components composed of 54 hours each. Core courses include Conflict Resolution, CPR, Customer Service, Defensive Driving, and Map Reading. Many subjects offered in this program are also available in other programs. Survey results for reflected a total of 17% of transportation personnel are interested in participating in the program. CAMPUSBASED STAFF DEVELOPMENT Each campus has its own professional development plan and designated campus professional development days. XII

19 FINANCIAL INFORMATION SINGLE AUDIT As a recipient of federal and state financial assistance, the district is responsible for maintaining an adequate internal control structure to ensure compliance with applicable laws and regulations related to those programs. This internal control structure is subject to periodic evaluation by management and the accounting staff of the district. As a part of the district's single audit, described earlier, tests are made to determine the adequacy of the internal control structure, including that portion related to federal financial assistance programs, as well as to determine that the district has complied with applicable laws and regulations. The results of the district's single audit for the fiscal year ended August 31, 2005, provided no instances of material weaknesses in the internal control structure or significant violations of applicable laws and regulations. BUDGETARY CONTROLS The objective of budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Board of Trustees. Every school district in Texas is required by law to prepare and file a budget with the Texas Education Agency. Activities of the general, food service (special revenue) and debt service funds are included in the district's budget. Budgetary control (the level at which expenditures cannot legally exceed appropriations) is maintained at the functional category level within each fund. These functional categories are defined by the Texas Education Agency and identify the purpose of transactions. The district also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Encumbered amounts lapse at year end. However, encumbrances generally are reappropriated as part of the following year's budget. As demonstrated by the statements and schedules included in the financial section of this report, the district continues to meet its responsibility for sound financial management. RISK MANAGEMENT The Risk Management Department provides insurance related services to district employees and students on over 50 campuses and administrative sites. Risk Management s areas of responsibility include occupational safety, loss control, risk assessment, insurance management (property/casualty, automotive, workers' compensation, law enforcement liability, underground storage tank liability, and professional liability), and unemployment compensation. The district's automotive and property insurance coverage protects over 400 vehicles and 198 portable buildings and permanent campus structures and facilities. Property is insured up to a maximum loss amount of approximately $473 million. Insurance coverage is summarized in the statistical section at Table XVIII. Prior to September 1, 1998, the district was selfinsured and contracted with a third party administrator for workers compensation administration (Berkley Administrators). As of September 1, 1998, the district elected to contract with a commercial carrier for workers compensation insurance. A contract was executed with the third party administrator to manage the runoff claims resulting from the discontinuance of the self insured fund. The reserve for workers compensation claims is sufficiently funded to cover future runoff claims. EMPLOYEE BENEFITS The Employee Benefits Department provides employee benefit services to district employees on over 50 campuses and administrative sites. Employee Benefits areas of responsibility include cafeteria plan administration, COBRA/HIPPA compliance, and payroll deduction services for Section 403(b) and 403(b)(7) tax sheltered annuities and investment accounts. KISD works with approximately 30 financial planning firms, approved for participation by the Texas Education Agency for tax sheltered annuities, with monthly contributions of approximately $175,000. KISD provides core benefits and the right to purchase optional benefits to all employees through the KISD Cafeteria Plan governed by Section 125 of the IRS Code. The district provides $220 per month, for employees who are contributing members to the Teacher Retirement System of the State of Texas, to offset optional benefit costs. XIII

20 Contributions of $150 per month are available for fulltime employees not purchasing a KISD sponsored health plan. A complete list of voluntary benefits follows: Benefit Employee Dental Basic Term Life Dependent Dental Health Plans (HMO, PPO) Supplemental Term Life LongTerm Disability ShortTerm Disability Medical Flexible Spending Account Dependent Daycare Reimbursement Core/Optional Benefit District Paid District Paid Optional Optional Optional Optional Optional Optional Optional The district contracts with third party administrators for compliance in tax sheltered annuities (KAZDON, Inc.), COBRA/HIPPA compliance (CONEXIS), and cafeteria plan administration (Taxsaver Plan, Inc.). CASH MANAGEMENT The district is required to execute a depository agreement with a local banking institution for a period of two years. Competitive bidding is mandated and state law sets general terms. The current contract was signed on June 14, 2001 to cover the period from September 2001 through August The contract was extended on April 22, 2003 and covered the period from September 2003 through August A new contract was signed on May 26, 2005 to cover the period from September 2005 through August Investment instruments authorized for purchase by the district investment policy include: 1. Obligations of the United States or its agencies and instrumentalities. a. Agency products will be defined as nonfloating, nonadjustable, nonprincipal reducing. b. Agency products with call features shall not exceed 37.5% of the individual portfolio at the time of purchase. c. Agencies at time of purchase shall not exceed 85% of total portfolio. d. Agencies shall be limited to the following: Federal Home Loan Bank, Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Student Loan Marketing Association, and Federal Farm Credit Banks. e. The maximum dollar par value to mature in any one month is limited to $25 million. 2. Certificates of deposit and share certificates, as permitted by Government Code Public fund investment pools as permitted by Government Code , if the Board authorizes the investment in the particular pool by resolution. 4. Repurchase and reverse repurchase agreements involving investment instruments approved above, for example, obligations of the U.S. or its agencies. The proceeds of a reverse repurchase agreement may not be leveraged to buy additional securities. Board officers must be notified before any reverse repurchase agreements are executed. 5. Noload money market mutual funds that: a. Are registered with and regulated by the Securities and Exchange Commissions; b. Provide the district with a prospectus and other information required by the Securities and Exchange Act of 1934 or the Investment Company Act of 1940; c. Have a dollarweighted average stated maturity of 90 days or fewer; and d. Include in their investment objectives the maintenance of a stable net asset value of $1 for each share. Cash temporarily idle during the year was invested at TexStar, LOGIC, Lone Star, MBIA, TexasDaily, One Group money market fund and in Agency Securities. In addition, interest was also earned on all checking accounts. The district's extended depository bank contract provided 3.0% on the checking account average collected balances under $8,000,000. The district guarantees that checking account balances will average no less than XIV

21 $2,000,000 per month. The district s primary investment pools, Lone Star and TexStar, earned averages of 3.29% and 3.43%, respectively, in the month of August The total KISD investment portfolio yield (excluding cash in bank) from September 2004 through August 2005 was 2.31%. The total amount of interest earnings for for all funds was $4,687,278. XV

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23 KILLEEN INDEPENDENT SCHOOL DISTRICT PRINCIPAL OFFICERS BOARD OF TRUSTEES Brenda Coley President Joe Maines Vice President Dr. Scott Isdale Secretary LTC(R) Arthur Trujillo Board Member Mike Helm Board Member Dr. Ron Rainosek Board Member Billy Mills Board Member COL Victoria Bruzese Fort Hood Advisor SCHOOL DISTRICT ADMINISTRATION Dr. Jim Hawkins Superintendent Dr. Robert Muller Assistant Superintendent for Administration and Operations Dr. Susan Holley Assistant Superintendent for Education Services Mr. Billy Walker Assistant Superintendent for Business Services XVII

24 Killeen ISD Organizational Chart KISD Board of Trustees Superintendent Internal Auditor Liaison for for Governmental Relations Assistant Superintendent For For Admin/Operations Assistant Superintendent For For Education Services Assistant Superintendent For Business Services Executive Instructional Leader Elementary Executive Instructional Leader Elementary Executive Instructional Leader Middle School Executive Instructional Leader High School Chief of Staff Principals Executive Director for Personnel Services Executive Director For Athletics Executive Director For Fiscal Management Executive Director for Student Services Exec Dir for Curriculum & Instruction Executive Director for Facility Services Exec Dir for Special Education Executive Director for Technology Services XVIII

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