CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT. Carrizo Springs, Texas COMPREHENSIVE ANNUAL FINANCIAL REPORT

Transcription

1 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT Carrizo Springs, Texas COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED AUGUST 31, 2010

2 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT Carrizo Springs, Texas COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED AUGUST 31, 2010 Prepared by: Dr. Deborah Dobie, Superintendent of Schools Anna Rocha-Diaz, Executive Director for Financial Services and Construction Accountability Rebecca Garcia, Senior Accountant Moriama Martinez, Payroll Clerk Sherry Fox, Accounts Payable Clerk Ana Gallegos, Bookkeeper Elida Santoya, Secretary

3 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED AUGUST 31, 2010 EXHIBIT/TABLE INTRODUCTORY SECTION FINANCIAL SECTION TABLE OF CONTENTS Letter of Transmittal. 1 GFOA Certificate of Achievement 6 Organizational Chart. 7 List of Principal Officials.. 8 Certificate of Board... 9 PAGE Independent Auditor's Report.. 10 Management's Discussion and Analysis (Required Supplementary Information) 12 Basic Financial Statements Government-Wide Statements: Exhibit A-1 Statement of Net Assets.. 19 Exhibit B-1 Statement of Activities.. 20 Governmental Fund Financial Statements: Exhibit C-1 Balance Sheet - Governmental Funds.. 22 Exhibit C-1R Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets 23 Exhibit C-2 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds.. 24 Exhibit C-3 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Exhibit C-5 Budgetary Comparison Statement - General Fund Fiduciary Fund Financial Statements: Exhibit E-1 Statement of Assets & Liabilities - Agency Funds 28 Notes to the Financial Statements. 29 Combining Statements as Supplementary Information Non Major Governmental Funds - Special Revenue Funds Exhibit H-1 Balance Sheet - Nonmajor Governmental Funds.. 43 Exhibit H-2 Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds 44 Exhibit H-3 Combining Balance Sheet - Nonmajor Special Revenue Funds 45 Exhibit H-4 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Special Revenue Funds 53 Fiduciary Funds Exhibit I-1 Statement of Changes in Assets and Liabilities - Agency Funds 61

4 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED AUGUST 31, 2010 TABLE OF CONTENTS (Continued) EXHIBIT/TABLE PAGE Other Supplementary Information Section Exhibit J-1 Schedule of Delinquent Taxes Receivable 62 Exhibit J-2 Schedule of Expenditures for Computation of Indirect Cost 64 Exhibit J-3 Fund Balance Cash Flow Calculation Worksheet 66 Exhibit J-4 Budgetary Comparison Statement - Child Nutrition Program 67 Exhibit J-5 Budgetary Comparison Statement - Debt Service Fund 68 STATISTICAL SECTION Financial Trends Table L-1 Net Assets by Component 69 Table L-2 Expenses, Program Revenues and Net (Expense)Revenue 71 Table L-3 General Revenues and Total Changes in Net Assets 73 Table L-4 Fund Balances of Governmental Funds 75 Table L-5 Changes in Fund Balances of Governmental Funds 77 Revenue Capacity Table L-6 Assessed Value & Estimated Actual Value of Taxable Property 79 Table L-7 Direct and Overlapping Property Tax Rates 81 Table L-8 Principal Property Taxpayers 82 Table L-9 Property Tax Levies and Collections 83 Debt Capacity Table L-10 Ratios of Outstanding Debt by Type 84 Table L-11 Ratio of General Bonded Debt Outstanding. 85 Table L-12 Direct and Overlapping Governmental Activities Debt. 86 Table L-13 Legal Debt Margin Information Demographic and Economic Information Table L-14 Demographic and Economic Statistics Table L-15 Full-Time Equivalent Employees 89 Table L-16 Operating Statistics Table L-17 Principal Employers 93 Operating Information Table L-18 School Building Information Table L-19 Teacher Base Salaries.. 96 Table L-20 Average Daily Attendance and Average Daily Membership 97 Table L-21 Nutrition Services - Facts and Figures.. 98

5 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED AUGUST 31, 2010 TABLE OF CONTENTS (Continued) EXHIBIT/TABLE PAGE FEDERAL AUDITS SECTION Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 100 Report on Compliance with Requirements Applicable to Each Major Program In Accordance with OMB Circular A Schedule of Findings and Questioned Costs 104 Schedule of Status of Prior Year Audit Findings Corrective Action Plan 107 Exhibit K-1 Schedule of Expenditures of Federal Awards 108 Notes to the Schedule of Expenditures of Federal Awards 110 Exhibit K-2 Schedule of Required Responses to Selected School First Indicators 111

6 INTRODUCTORY SECTION

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12 Certificate of Achievement for Excellence in Financial Reporting Presented to Carrizo Springs Consolidated Independent School District Texas For its Comprehensive Annual Financial Report for the Fiscal Year Ended August 31, 2009 A Certificate ofachievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. Executive Director 6

13 Monique Gonzalez Executive Director for Human Resources & Student Services Accountability AEP Appraisal Attendance Bilingual / ESL Board Presentations Budget CATE program Certification of professionals Code of Conduct Compliance Counseling Services Daycare Services of Parenting Students Discipline Hearing Issues Dress Code Drop Outs Emergency Management Employee Incentive Program Employee Record Enrollment Projections Grants Human Resources Outside Reading Programs Parent Issues Pay Structure/Plans PBMAS PEIMS Pregnancy Related Services Public Relations Services Records Management SS Teacher employment Staffing Patterns Student Discipline Issues Substitutes Teacher Recruitment Textbooks Distribution Title IX Issues Transfer Students 504 Issues (employees) 21st Century Testing TREX Elisa Martinez, Director of Special Programs/ PEIMS Coordinator Alexandria Inocencio, 21st Century Esteban Ortiz, Police Chief/ Drug Free Coordinator Dr. Deborah F. Dobie Superintendent of Schools Dr. Susan Casey Executive Director for Curriculum, Instruction and Assessment Eliseo Aguero Director of Athletics Academic Achievement AEIS Assessment Benchmark scoring reports Board Presentations Budget Classroom Instruction/ Coordinator School Health Compliance Curriculum Data Interpretation District Calendar District Improvement Plan Dual Credit Dyslexia Federal Programs Fine Arts Program Gifted & Talented Program Grading Policies Grants Guidance Services Health Services Home Schooling Higher Ed Articulation Intervention Teams Monitoring MOU for Instructional Services NCLB Pre AP Pre Collegiate Programs Program Evaluation Research SAT/ACT Site Base Scope & Sequence Software Selection Staff Development Summer School Programs Technology Integration Waivers Athletics Athletic trainer Budget Coordinator with community for youth services CPR training Eligibility Field Facility Maintenance Fitness/Wellness Program Physical Education (PreK-12) Program Evaluation Summer Program Principals Sandra Uriegas Director of Special Education Elizabeth Gonzalez Even Start Coordinator Ruben Escamilla UIL Coordinator Sandra Little Library Coordinator Anna Rocha-Diaz Executive Director for Financial Services & Construction Accountability Accounting Audit Coordination Board Presentations Budget Compliance Construction Contracts Fixed Asset Inventory Inter-local Agreements Investment Policy Payroll Postal Service Printing Services Properties Public Relations Purchasing Return to work Risk Management Shipping & Receiving Taxes Telephone Issues Utilities Gene Gutierrez Director of Maintenance and Transportation Esperanza Garcia Director of Student Nutrition Marco Mendez Director of Technology 7

14 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT LIST OF PRINCIPAL OFFICIALS BOARD OF TRUSTEES Brenda S. Compagnone Bill E. Martin Armando Silva Jr. Dr. Ricky Alaniz Claudia McDaniel Alfredo Castaneda Jose L. Talamantez President Vice-President Secretary Member Member Member Member ADMINISTRATORS Dr. Deborah F. Dobie Dr. Susan Casey Monique Gonzalez Anna Rocha-Diaz Manuel Saldana Sandra Uriegas Eliseo Aguero Elisa G. Martinez Gene Gutierrez Esperanza Garcia Marcos Mendez Superintendent of Schools Executive Director for Curriculum, Instruction & Assessment Executive Director for Human Resources & Student Services Executive Director for Financial Services & Construction Accountability Director of Federal Programs Director of Special Education Director of Athletics Director of Special Programs Director of Maintenance & Transportation Director of Student Nutrition Director of Technology PRINCIPALS Juan Castaneda Alejandro Chapa Jr. Michele Howard Juan Jose Ortiz Sofia Morones Sofia Morones Carrizo Springs High School Carrizo Springs Junior High School Carrizo Springs Intermediate Carrizo Springs Elementary Big Wells Elementary Asherton Elementary 8

15 CERTIFICATE OF BOARD Carrizo Springs Consolidated Independent School District Dimmit Name of School District County Co. Dist. Number We, the undersigned, certify that the attached annual financial reports of the above named school district were reviewed and (check one) approved disapproved for the yearended August 31, 2010, at a meeting of the Board of Trustees of such school district on the day of, Signature of Board Secretary Signature of Board President If the board of trustees disapproved of the auditor's report, the reason(s) for disapproving is (are): (attach list as necessary) 9

16 FINANCIAL SECTION

17 BILL C. ROCHA CERTIFIED PUBLIC ACCOUNTANf Telephone: (210) P.O. Box Fax: (210) San Antonio, TIC INDEPENDENT AUDITOR'S REPORT To the Board of Trustees of Carrizo Springs Consolidated Independent School District Carrizo Springs, Texas We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Carrizo Springs Consolidated Independent School District as of and for the year ended August 31, 2010, which collectively comprise Carrizo Springs Consolidated Independent School District's basic financial statements as listed in the table of contents. These financial statements are the responsibility of Carrizo Springs Consolidated Independent School District's management. 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 opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of Carrizo Springs Consolidated Independent School District as of August 31, 2010, the respective changes in financial position thereof, and the budgetary comparison schedule for the General fund, 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 December 16, 2010 on our consideration of Carrizo Springs Consolidated Independent School 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 that 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. The Management's Discussion and Analysis listed in the table of contents is not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. 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 this information and therefore express no opinion on it. 10

18 Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Carrizo Springs Consolidated Independent School District's basic financial statements. The Introductory Section, Other Supplementary Information, combining and individual fund financial statements and schedules, and the Statistical Section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purpose 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 is also not a required part of the general purpose financial statements of the Carrizo Springs Consolidated Independent School District. The other supplementary information and combining and individual fund statements and schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. The introductory section and the statistical section listed in the table of contents have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. The Texas Education Agency requires school districts to include certain information in the Annual Financial and Compliance Report in conformity with laws and regulations of the State of Texas. This information is in Exhibits identified in the table of contents as J-1 through J-5. Except for Exhibit J-3 (Fund Balance and Cash Flow Calculation Worksheet) which is marked UNAUDITED and on which we express no opinion, these schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. Respectfully submitted, Bill C. Rocha Certified Public Accountant San Antonio, Texas December 16,

19 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT MANAGEMENT S DISCUSSION AND ANALYSIS This section of Carrizo Springs Consolidated Independent School District s (the District) annual financial report presents our discussion and analysis of the District s financial performance for the fiscal year ended August 31, Please read it in conjunction with the Independent Auditor s Report and the District s Basic Financial Statements, which follow this section. Financial Highlights The District s total combined net assets were $ 16.9 million at August 31, 2010, which is an increase of $1.3 million from the previous year. The district s overall financial position has improved over the prior year. During the year, the District s expenses were $1.456 million less than the $ 26.4 million generated in taxes and other revenues for the governmental activities (all funds, including grants). The total cost of the District s programs decreased by $ 652 thousand from last year. The most significant factor is due to decrease in one-time purchases approved in the previous year, such as technology equipment, the realignment of state funding combined with the District s efficiency in operations, and planning for the uncertainty of school financing. The General Fund ended the year with a fund balance of $ 7.3 million, up $ 921 thousand from last year. Using This Annual Report This annual report consists of a series of financial statements. The government-wide financial statements include the Statement of Net Assets and the Statement of Activities. These provide information about the activities of the District as a whole and present a longer-term view of the District s property and debt obligations and other financial matters. They reflect the flow of total economic resources in a manner similar to the financial reports of a business enterprise. Fund financial statements report the District s operations in more detail than the government-wide statements by providing information about the District s most significant funds. For governmental activities, these statements tell how services were financed in the short term as well as what resources remain for future spending. They reflect the flow of current financial resources, and supply the basis for tax levies and the appropriations budget. For proprietary activities, fund financial statements tell how goods or services of the District were sold to departments within the District or to external customers and how the sales revenues covered the expenses of the goods or services. The remaining statements, fiduciary statements, provide financial information about activities for which the District acts solely as a trustee or agent for the benefit of those outside of the District. The notes to the financial statements provide narrative explanations or additional data needed for full disclosure in the government-wide statements or the fund financial statements. Reporting the District as a Whole The Statement of Net Assets and the Statement of Activities The primary purpose of the Statement of Net Assets and the Statement of Activities is to show whether the District s financial standing is improving or worsening as a result of the year s activities. The statement of Net Assets includes all the District s assets and liabilities at the end of the year while the Statement of Activities includes all the revenues and expenses generated by 12

20 Reporting the District as a Whole (continued) the District s operations during the year. These statements apply the same basis of accounting as used by private sector companies. All of the current year s revenues and expenses are taken into account regardless of when cash is received or paid. The District s revenues are divided into those provided by outside parties who share the costs of some programs, such as tuition received from students outside the District (currently, the District has no tuition income) and grants provided from the U.S. Department of Education and other Federal Agencies to assist children with disabilities or from disadvantaged backgrounds (program revenues), and revenues provided by the taxpayers (in the form of local property taxes) or by the Texas Education Agency (TEA) in equalization funding processes (general revenues). All the District s assets are reported whether they serve the current year or future years. Liabilities are considered regardless of whether they must be paid in the current or future years. These two statements report the District s net assets and changes in those net assets. The District s net assets (the difference between assets and liabilities) provide one measure of the District s financial health, or financial position. Over time, increases or decreases in the District s net assets are one indicator of whether its financial health is improving or deteriorating. To fully assess the overall health of the District, however, you should consider nonfinancial factors as well, such as changes in the District s average daily attendance (ADA), its property tax bases and the condition of the District s facilities. In the Statement of Net Assets and the Statement of Activities, we divide the District into the following activity: Governmental activities All of the District s basic services are reported here, including the instruction, counseling, cocurricular activities, food services, transportation, maintenance, community services, and general administration. Property taxes, tuition, fees, and state and federal grants finance most of these activities. The District has stable enrollment and ADA but should be cautious, as any drop in enrollment impacts the District s revenues. The District continues to make an effort to proactively maintain the District s facilities and buildings which serves to extend the life of the District s assets. The District strives to produce a budget and maintain expenditures that remain within the expenditure targets developed by TEA. Additionally, the District s efforts toward achieving the Superior Achievement rating for the Schools FIRST financial management report includes monitoring of 22 indicators. In the 2009 School FIRST report, the District received 79 out of 80 possible points. For indicator # 8, the District s three year average percent of total tax collections were 96.08%. The goal was 98.0% or greater; the District received 4 out of 5 points in this category. The District continues to monitor tax collections and has increased its efforts in collections. Reporting the District s Most Significant Funds Fund Financial Statements The fund financial statements provide detailed information about the most significant funds not the District as a whole. Laws and contracts require the District to establish some funds, such as grants received under the No Child Left Behind Act from the U.S. Department of Education. The 13

21 Reporting the District s Most Significant Funds (continued) District s administration establishes many other funds to help it control and manage money for particular purposes (like campus activities). The District utilizes the following types of funds to account for its activities: Governmental funds Most of the District s basic services are reported in governmental funds. These use modified accrual accounting (a method that measures the receipt and disbursement of cash and all other financial assets that can be readily converted to cash) and report balances that are available for future spending. The governmental fund statements provide a detailed shortterm view of the District s general operations and the basic services it provides. We describe the differences between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds in reconciliation schedules following each of the fund financial statements. The District as Trustee Reporting the District s Fiduciary Responsibilities The District is the trustee, or fiduciary, for money raised by student activities and alumnae scholarship programs. All of the District s fiduciary activities are reported in separate Statements of Fiduciary Net Assets. We exclude these resources from the District s other financial statements because the District cannot use these assets to finance its operations. The District is only responsible for ensuring that the assets reported in these funds are used for their intended purposes. Financial Analysis of the District as a Whole Our analysis focuses on the net assets (Table I) and changes in the net assets (Table II) of the District s governmental activities in the following pages. Combined net assets of the District were approximately $ 16.9 million at August 31, Table 1 below: See Table I Carrizo Springs Consolidated ISD NET ASSETS in thousands Percent Governmental Governmental Change Activities 2010 Activities 2009 (%) Current and Other Assets $ 12,073 $ 10,650 13% Capital Assets 13,065 13,322-2% Total Assets 25,138 23,972 5% Current and Other Liabilities 1,619 1,380 17% Long-Term Liabilities 6,614 6,949-5% Total Liabilities 8,233 8,329-1% Net Assets Invested in Capital Assets, Net of Related Debt 6,514 6,433 1% Unrestricted Net Assets 10,391 9,211 13% Total Net Assets $ 16,905 $ 15,644 8% 14

22 Financial Analysis of the District as a Whole (continued) Combined total revenues of the District were $ 26.4 million and combined expenses were $ million at August 31, See Table II below. Revenues: Program Revenues: Table II Carrizo Springs Consolidated ISD CHANGES IN NET ASSETS in thousands Percent Governmental Governmental Change Activities 2010 Activities 2009 (%) Charges for Services $ 121 $ % Operating Grants and Contributions 7,942 6,069 31% Capital Grants and Contributions % General Revenues: Maintenance and Operation Taxes 4,817 4,686 3% Debt Service Taxes % State Aid - Formula Grants 12,559 12,511 0% Grants and Contributions not Restricted to Specific Functions 334 1,046-68% Investment Earnings % Extraordinary Item Contributions % Miscellaneous % Total Revenue 26,422 25,383 4% Expenses: Instruction, Curriculum and Media Services 13,682 15,089-9% Instructional and School Leadership 2,456 1,741 41% Student Support Services 1,623 1,777-9% Child Nutrition 1,670 1,647 1% Co-curricular Activities % General Administration 1, % Plant Maintenance, Security and Data Processing 2,919 2,864 2% Community Services % Debt Service % Other Intergovernmental Payments % Total Expenses 24,966 25,618-3% Total Change in Net Assets 1,456 (235) -720% Net Assets as September 1 15,644 15,915-2% Prior Period Adjustments (195) (36) 442% Net Assets at August 31 $ 16,905 $ 15,644 8% 15

23 Financial Analysis of the District as a Whole (Continued) The District s total revenues were $ 26.4 million. A significant portion, 55%, of the District s revenues came from state aid and 25% came from federal program grants. The total cost of all programs and services was $ million; 82% of these costs were for instructional and student services, 16% were Plant Maintenance & Operations and General Administration. Of this amount, taxpayers paid through property taxes $ 5.1 million. The district has ended the year with an estimated increase in net assets of $ million. A reduction in expenditures combined with a slight increase in the collection of property taxes, and investment in capital assets are all aligned with the increase in net assets. Over the course of the year, the Board of Trustees revised the District s budget several times. These budget amendments fall into two categories. The first category, originated by administration and program directors, includes amendments and supplemental appropriations that were approved shortly after the beginning of the year and reflect the actual beginning balances (versus the amounts that were estimated in August, 2009). Throughout the year, amendments are approved as changes to grants and/or program revenues occur. This is especially true of federal funds that are estimated during the early budget planning stages, but are adjusted when the final Notice of Grant Award is received. The second category involved amendments which moved funds from programs that did not need all the resources originally appropriated to them, to programs with resource need, originated by campus principals and program directors to address ongoing needs. General Fund Budgetary Highlights The budget is prepared in accordance with financial policies and is approved by the Board of Trustees following a public hearing. Note 1 of the Notes to the Financial Statements contains additional information as to how the budget is adopted. During the fiscal year, the Board approved budget amendments requested by the District s administration. Actual revenues generated in the General Fund by the District of $ 19.8 million were over budgeted revenues of $ 19.6 million by $192.0 thousand. Local and Intermediate revenues were $ 11 thousand less than the budgeted amount due to decreased tax collection, decreased interest income, and reduced miscellaneous revenue. However, State revenues realized were $ 173 thousand more than the budgeted amount, due in large part to the changes in state funding. Federal revenues realized were $ 31 thousand more than the budgeted amount, largely due to the Child Nutrition Program and the timing of the ARRA equipment grant funding. Budgeted general fund expenditures for the fiscal year were $ million. Actual expenditures for the fiscal year were $ million, resulting in a favorable variance of $ 1.73 million. The most significant factor is due to a decrease in one-time purchases approved in the previous year, such as technology equipment, the realignment of state funding combined with the District s efficiency in operations, and planning for the uncertainty of school financing. 16

24 Capital Asset and Debt Administration Capital Assets At the end of 2010, the District had $ 45.3 million invested in a broad range of capital assets, including facilities and equipment for instruction, transportation, athletics, administration, and maintenance. This amount represents an increase of $ 800 thousand from last year primarily due to building improvements and ongoing construction projects and purchase of buses. See Table III below. For Capital Asset Activity, please refer to Note 7 of the notes to the financial statements on page 36. Table III Carrizo Springs Consolidated ISD CAPITAL ASSETS in thousands Percent Change (%) Land & Land Improvements $ 616 $ 616 0% Buildings and Improvements 40,421 40,244 0% Furniture and Equipment 3,737 3,155 18% Construction in Progress % Totals at Historical Costs 45,323 44,523 2% Accumulated Depreciation (32,258) (31,201) 3% Net Capital Assets $ 13,065 $ 13,322-2% Debt Administration At year-end, the District had $ 6.61 million in bonds and notes outstanding versus $ 6.95 million last year. For detailed information of the District s long term debt refer to Note 8 on pages The District s general obligation bond rating remained the same. Table IV Carrizo Springs Consolidated ISD THE DISTRICT'S LONG TERM DEBT in thousands Percent Change (%) General Obligation Debt $ 6,255 $ 6,500-4% LoneSTAR Project Note % Total Long Term Debt $ 6,613 $ 6,949-5% 17

25 Economic Factors and Next Years Budgets and Rates The District s board considered a number of factors in setting the budget and tax rate for the fiscal year. One of the biggest factors involved the requirements of House Bill 1 (HB1). HB1 was enacted by the Texas legislature as result of a Supreme Court of Texas decision that since so many of Texas school districts were at the maximum of $ 1.50 tax rate, this amounted to an unconstitutional state wide tax. It further found that because of this, Texas school districts had lost reasonable discretion to raise additional funds to enrich school programs. The Texas Supreme Court in its decision described above required the Texas Legislature to satisfy two conditions regarding school district financing. First, it had to reduce school district taxes so that they were a reasonable amount below the $ 1.50 mandatory ceiling. Second, it had to allow school districts accessibility to equalize funds so that they could exercise their reasonable discretion to obtain enrichment funds for their district. A statewide committee appointed by Governor Rick Perry recommended and the Texas Legislature established new business taxes. School Districts have access to these new funds which allows them to lower their property taxes and have access to funds for enrichment programs. For the school years, HB1 reduced the M&O tax rate from $ 1.50 to $ It also allowed the school districts to raise their tax rate $.04 above the reduced rate. Carrizo Springs Consolidated Independent School District held a successful rollback election which allowed it to keep its tax rate at $ 1.50 for one additional year. A second phase of HB1 was required for the school year Under this second phase, the district s tax rate was reduced by 66.67%. Accordingly, a district that had a tax rate of $ 1.50 in the school year was reduced to a tax rate of $ A district s rollback rate is its reduced rate plus four cents plus the additional pennies it added in However, the rate cannot exceed $ Carrizo Springs Consolidated Independent School District s M&O tax rate was approved at $ For the school year, the District continues to operate with six campuses. The school year budget and American Recovery Reinvestment Act funds appropriate funds for staffing, technology, and science equipment to improve overall student performance. Additionally, the district anticipates an increase in tax collections due to significant increases in minerals and oils. This will have a significant impact on local revenues and an adjustment to state funding in the coming years. 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 show the District s accountability for the money it receives. If you have questions about this report, or need additional information, contact the District s Business Office at Carrizo Springs CISD, 300 N. 7 th Street, Carrizo Springs, Texas

26 BASIC FINANCIAL STATEMENTS

27 GOVERNMENT-WIDE STATEMENTS

28 EXHIBIT A-1 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT STATEMENT OF NET ASSETS AUGUST 31, Primary Government Data Control Governmental Codes Activities Total ASSETS 1110 Cash and Temporary Investments $ 7,222,733 $ 7,222, Property Taxes - Delinquent 3,928,165 3,928, Allowance for Uncollectible Taxes (982,104) (982,104) 1240 Due from Other Governments 1,284,603 1,284, Other Receivables 33,585 33, Deferred Expenditures/Expenses 545, , Prepaid Expenses 40,566 40,566 Capital Assets: 1510 Land and Land Improvements 615, , Buildings and Improvements, net 11,001,456 11,001, Furniture and Equipment, net 899, , Construction in Progress 549, , Total Assets 25,138,664 25,138,664 LIABILITIES Liabilities: 2110 Accounts Payable 268, , Payroll Deductions & Withholdings 8,521 8, Accrued Wages Payable 552, , Due to Other Governments 4,267 4, Accrued Expenditures 250, , Deferred Revenues 535, ,255 Noncurrent Liabilities: 2501 Due Within One Year 155, , Due in More Than One Year 6,458,492 6,458, Total Liabilities 8,233,345 8,233,345 NET ASSETS 3200 Invested in Capital Assets, Net of Related Debt 6,513,775 6,513, Unrestricted Net Assets 10,391,544 10,391, Total Net Assets $ 16,905,319 $ 16,905,319 The accompanying notes are an integral part of this financial statement. 19

29 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT STATEMENT OF ACTIVITIES FOR THE YEAR ENDED AUGUST 31, 2010 Program Revenues Data Control Operating Codes Charges for Grants and Expenses Services Contributions GOVERNMENTAL ACTIVITIES 11 Instruction $ 13,285,985 $ - $ 4,350, Instructional Resources & Media Services 395,705-61, Curriculum & Staff Development 447, , Instructional Leadership 865, , School Leadership 1,143,881-66, Guidance, Counseling & Evaluation Services 767, , Social Work Services 26,252-4, Health Services 164, , Student (Pupil) Transportation 665,104-42, Food Services 1,669,702 73,141 1,361, Cocurricular/Extracurricular Activities 921,712 47,416 72, General Administration 1,045, , Plant Maintenance & Operations 2,299, , Security & Monitoring Services 143,910-13, Data Processing Services 475, , Community Services 39,661-35, Debt Service - Interest on Long Term Debt 283, Payments to Fiscal Agent/Member Districts 41, Other Intergovernmental Charges 284, TOTAL PRIMARY GOVERNMENT $ 24,966,055 $ 120,557 $ 7,941,630 Data Control General revenues: Codes Taxes: MT Property Taxes, Levied for General Purposes DT Property Taxes, Levied for Debt Service SF State Formula Grants GC Grants & Contributions not Restricted IE Investment Earnings MI Miscellaneous Local and Intermediate Revenue EI Extraordinary Item TR Total general revenues, special items, and transfers CN Change in net assets NB Net assets - beginning PA Prior Period Adjustments NE Net assets - ending The accompanying notes are an integral part of this financial statement. 20

30 EXHIBIT B-1 5 Capital Grants and Contributions Net (Expense) Revenue and Changes in Net Assets Total Governmental Activities $ 12,000 $ (8,923,343) - (334,444) - (18,616) - (319,005) - (1,077,115) - (401,606) - (21,301) - 66,378 - (622,340) 228,970 (6,486) - (801,843) - (922,704) - (2,197,744) - (130,113) - (338,962) - (4,495) - (283,708) - (41,005) - (284,444) $ 240,970 (16,662,898) 4,817, ,189 12,558, ,669 20,935 95,424 12,050 18,119,001 1,456,103 15,644,151 (194,935) $ 16,905,319 21

31 GOVERNMENTAL FUND FINANCIAL STATEMENTS

32 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT BALANCE SHEET GOVERNMENTAL FUNDS AUGUST 31, 2010 EXHIBIT C-1 Data Total Control General Debt Other Governmental Codes Fund Service Funds Funds ASSETS 1110 Cash and Temporary Investments (market) $ 7,098,857 $ 60,299 $ 63,577 $ 7,222, Property Taxes - Delinquent 3,261, ,520-3,928, Allowance for Uncollectible Taxes (credit) (815,411) (166,693) - (982,104) 1240 Due from Other Governments 326, ,452 1,284, Accrued Interest Due from Other Funds 833, , Other Receivables 31,606 1,979-33, Prepaid Expense 40, , Total Assets $ 10,777,291 $ 562,105 $ 1,022,029 $ 12,361,425 LIABILITIES AND FUND BALANCES Liabilities: 2110 Accounts Payable $ 266,400 $ - $ 2,177 $ 268, Payroll Deductions and Withholdings Payable 8, , Accrued Wages Payable 446, , , Due to Other Funds , , Due to Other Governments 3, , Accrued Expenditures/Expenses 242,182-8, , Deferred Revenues 2,485, ,827 26,263 3,011, Total Liabilities 3,453, , ,043 4,930,076 Fund Balances: Reserved For: 3420 Retirement of Long-Term Debt - 62,278-62, Food Service Unreserved and Designated: 3510 Designated for Construction 2,323, ,323,988 Unreserved and Undesignated: 3600 Reported in the General Fund 5,000, ,000, Reported in Special Revenue Funds ,986 44, Total Fund Balances 7,324,085 62,278 44,986 7,431, Total Liabilities and Fund Balances $ 10,777,291 $ 562,105 $ 1,022,029 $ 12,361,425 The accompanying notes are an integral part of this financial statement. 22

33 EXHIBIT C-1R CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS Amounts reported for governmental activities in the statement of net assets are different because: Total fund balance - governmental funds (From C-1) $ 7,431,349 Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 13,065,413 Property tax revenue is recognized in the period for which levied rather than when "available." A portion of the deferred property tax revenue is not available. 2,960,195 Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds. (6,613,592) Net bond issue costs are not financial resources and, therefore, are not reported in the funds. 545,703 Net bond premiums are not financial resources and, therefore, are not reported in the funds. (483,749) Net Assets - Governmental Activities $ 16,905,319 The accompanying notes are an integral part of this financial statement. 23

34 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED AUGUST 31, 2010 Data Control General Debt Codes Fund Service REVENUES 5700 Total Local and Intermediate Sources $ 4,818,329 $ 283, State Program Revenues 13,274, , Federal Program Revenues 1,704, Total Revenues 19,796, ,846 EXPENDITURES Current: 0011 Instruction 8,783, Instructional Resources & Media Services 308, Curriculum & Instructional Staff Development 18, Instructional Leadership 318, School Leadership 1,075, Guidance, Counseling & Evaluation Services 396, Social Work Services 21, Health Services 77, Student (Pupil) Transportation 811, Food Services 1,705, Co curriculum/extracurricular Activities 838, General Administration 946, Plant Maintenance and Operations 2,259, Security and Monitoring Services 129, Data Processing Services 354, Community Services 4,095 - Debt Service: 0071 Debt Service - Principal on long-term debt 90, , Debt Service - Interest on long-term debt 13, ,355 Capital Outlay: 0081 Facilities Acquisition and Construction 206,384 - Intergovernmental: 0093 Payments to Fiscal Agent/Member Districts of 41, Other Intergovernmental Charges 284, Total Expenditures 18,685, , Excess (Deficiency) of Revenues Over (Under) 1,111,034 (23,509) Expenditures OTHER FINANCING SOURCES (USES) 7915 Transfers In 5, Transfers Out Total Other Financing Sources (Uses) 5, Net Change in Fund Balances 1,116,034 (23,509) 0100 Fund Balance - September 1 (Beginning) 6,402,986 85,787 PA Prior Period Adjustments (194,935) Fund Balance - August 31 (Ending) $ 7,324,085 $ 62,278 The accompanying notes are an integral part of this financial statement. 24

35 EXHIBIT C-2 Other Funds Total Governmental Funds $ 756 $ 5,102,141 1,117,554 14,600,373 4,770,346 6,474,775 5,888,656 26,177,289 3,929,020 12,712,550 51, , , , , ,153 18,852 1,093, , ,110 4,210 26,190 84, ,624 20, ,934 54,350 1,759,714 51, ,834 95,638 1,042,224 54,113 2,313,612 6, , , ,359 34,845 38, , ,708-12, ,384-41, ,444 5,845,738 25,046,846 42,918 1,130,443-5,000 (5,000) (5,000) (5,000) - 37,918 1,130,443 7,068 6,495,841 - (194,935) $ 44,986 $ 7,431,349 25

36 EXHIBIT C-3 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENT FUNDS TO THE STATEMENT OF ACTIVITIES Amounts reported for governmental activities in the statement of net assets are different because: Total Net Change in Fund Balances - Governmental Funds $ 1,130,443 Governmental funds report capital outlays as expenditures. However, in the statement of activities, assets with an initial individual cost of $ 5,000 or more are capitalized and their cost is allocated over their estimated useful live and reported as depreciation expense. Capital outlays Depreciation Expense 800,115 (1,057,009) (256,894) Repayment of debt principal is an expenditure in the governmental funds, but the repayment of debt reduces liabilities in the statement of net assets. 335,101 Delinquent property taxes receivable are not reported as revenues in governmental funds. 244,873 Bond premiums are shown as revenues in the governmental funds, but are amortized in the statement of net assets. (24,451) Bond issue costs are shown as expenditures in the governmental funds, but are amortized in the statement of net assets. 27,037 Changes in Net Assets of Governmental Activities $ 1,456,109 The accompanying notes are an integral part of this financial statement. 26

37 EXHIBIT C-5 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT BUDGETARY COMPARISON STATEMENT GENERAL FUND FOR THE YEAR ENDED AUGUST 31, 2010 Data Variance With Control Actual Amounts Final Budget Codes Budgeted Amounts (Budgetary Positive or Original Final Basis) (Negative) REVENUES: 5700 Total Local and Intermediate Sources $ 4,699,488 $ 4,830,229 $ 4,818,329 $ (11,900) 5800 State Program Revenues 13,195,972 13,101,012 13,274, , Federal Program Revenues 1,215,334 1,673,269 1,704,429 31, Total Revenues 19,110,794 19,604,510 19,796, ,277 EXPENDITURES: Current: 0011 Instruction 9,865,381 9,908,912 8,783,530 1,125, Instructional Resources & Media Services 366, , ,964 43, Curriculum & Instructional Staff Dev. 80,140 37,373 18,713 18, Instructional Leadership 300, , ,373 8, School Leadership 1,118,734 1,113,505 1,075,123 38, Guidance, Counseling & Evaluations Svcs 332, , ,969 7, Social Work Services 14,916 23,816 21,980 1, Health Services 78,395 78,236 77,114 1, Student (Pupil) Transportation 593, , ,696 70, Food Services 1,407,927 1,722,277 1,705,364 16, Cocurricular/Extracurricular Activities 859, , ,292 34, General Administration 950,949 1,001, ,586 55, Plant Maintenance and Operations 2,221,713 2,303,065 2,259,499 43, Security and Monitoring Services 141, , ,323 13, Data Processing Services 367, , ,843 46, Community Services 10,000 13,383 4,095 9, Debt Service - Principal long-term debt 103, , , Facilities Acquisition and Construction - 380, , , Payments to Fiscal Agent/Member Dist. - 50,000 41,007 8, Other Intergovernmental Charges 298, , ,444 13, Total Expenditures 19,110,794 20,417,248 18,685,753 1,731, Excess (Deficiency) of Revenues Over (Under) Expenditures - (812,738) 1,111,034 1,923,772 OTHER FINANCING SOURCES (USES): 7949 Other Resources - 5,000 5, Transfers Out TOTAL OTHER FINANCING SOURCES (USES): - 5,000 5, Fund Balance - September 1 (Beginning) 6,402,986 6,402,986 6,402,986 - PA Prior Period Adjustments - - (194,935) (194,935) 3000 Fund Balance - August 31 (Ending) $ 6,402,986 $ 5,595,248 $ 7,324,085 $ 1,728,837 Note: Budgeted amounts include amounts for Fund 101, the Child Nutrition Program. The amounts for Child Nutrition Program are also shown on Exhibit J-4. Transfers between General Fund and Child Nutrition Fund are not considered in this statement. The accompanying notes are an integral part of this financial statement. 27

38 FIDUCIARY FUND FINANCIAL STATEMENTS

39 EXHIBIT E-1 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT STATEMENT OF ASSETS AND LIABILITES AGENCY FUNDS AUGUST 31, 2010 Total Agency Funds ASSETS Cash and Cash Equivalents $ 102,966 Total Assets $ 102,966 LIABILITIES Due to Student Groups $ 102,966 Total Liabilities $ 102,966 The accompanying notes are an integral part of this financial statement. 28

40 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT CARRIZO SPRINGS, TEXAS NOTES TO FINANCIAL STATEMENTS AUGUST 31, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Carrizo Springs Consolidated Independent School District have been prepared in conformity with all accounting principles generally accepted in the United States of America (GAAP) as applied to local government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant accounting policies of the District are described below. In June 1999, the Governmental Accounting Standards Board (GASB) unanimously approved Statement No. 34, Basic Financial Statements and Management s Discussion and Analysis for State and Local Governments. Certain of the significant changes in the Statement include the following: A Management s Discussion and Analysis providing an analysis of the District s overall financial position and results of operations Financial statements prepared using the full accrual basis of accounting for all of the District s activities A change in the fund financial statements to focus on the major funds. REPORTING ENTITY The Board of School Trustees, a seven-member group, has governance responsibilities over all activities related to public elementary and secondary education within the jurisdiction of Carrizo Springs Consolidated Independent School District (the District). Since members of the Board of School Trustees (the Board) are elected by the public; they have the authority to make decisions, appoint administrators and managers, and significantly influence operations; and have the primary accountability for fiscal matters; the District is not included in any other governmental reporting entity as defined by the Governmental Accounting Standards Board (GASB), Statement No. 14, The Financial Reporting Entity. The District receives funding from local, state, and federal government sources and must comply with the requirements of these funding entities. District-wide fund financial statements The District-wide financial statements (also known as the government-wide financial statements, i.e. the Statement of Net Assets and the Statement of Activities) report information on all of the nonfiduciary activities of the District. For the most part, the effect of interfund activity has been removed from these statements. Interfund services provided and used are not eliminated in the process of consolidation. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements. 29

41 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT CARRIZO SPRINGS, TEXAS NOTES TO FINANCIAL STATEMENTS AUGUST 31, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) BASIS OF ACCOUNTING The accounting policies of Carrizo Springs Consolidated Independent School District substantially comply with the rules prescribed in the Texas Education Agency s Financial Accountability System Resource Guide (the Resource Guide ). The accounting policies included in the Resource Guide conform to accounting principles generally accepted in the United States of America applicable to governmental entities. a. The District utilizes the fund types specified in the Resource Guide. Governmental Fund Types include the following: General Fund is used to account for financial resources used for general operations. Any fund balances are considered resources available for current operations. 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. Special Revenue Funds are used to account for resources restricted to or designated for specific purposes by a grantor. Federal and state financial assistance generally is accounted for in the Special Revenue Fund. Generally, any unused balances are returned to the grantor at the close of specified project periods. Debt Service Fund is used to account for revenues collected to pay interest and related costs and to retire long-term debt. Capital Projects Fund is used to account for proceeds from long-term debt financing and revenues and expenditures related to authorized construction and other capital assets acquisitions. Currently, the District does not record any Capital Projects Funds. Fiduciary fund types include the following: Agency Funds the District uses Agency Funds to account for clearing accounts and activities of student groups. These funds have no revenue, expenditures, or equity and the District does not budget them. 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. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e. revenues and other financial sources) and decreases (i.e. expenditures and other financing uses) in current net assets. 30

42 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT CARRIZO SPRINGS, TEXAS NOTES TO FINANCIAL STATEMENTS AUGUST 31, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) BASIS OF ACCOUNTING (Continued) b. The modified accrual basis of accounting is used for the Governmental Fund Types. This basis of accounting recognizes revenues in the accounting periods in which they become susceptible to accrual, i.e. both measurable and available, and expenditure 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 be liquidated with expendable available financial resources. The District considers all revenue available if they are collectible within 60 days after year-end. Revenues from local sources consist primarily of property taxes. Property tax revenues and revenues received from the State are recognized under the susceptible-to-accrual concept. Miscellaneous revenues are recorded as revenue when received in cash because they are generally not measurable until actually received. Investment earnings are recorded as earned, since they are both measurable and available. 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. Agency funds are custodial in nature and do not present results of operations or have a measurement focus. Agency funds are accounted for using the accrual basis of accounting. c. The official budget was prepared for adoption for the General Fund, Debt Service Fund and the Child Nutrition Program Fund, which is included within the Special Revenue Funds. Budgets are prepared using the same modified accrual basis as is used to account for governmental funds. The following procedures are followed in establishing the budgetary data reflected in the general-purpose financial statements: 1) Prior to August 20 of the preceding fiscal year, the District prepares a budget for the next succeeding fiscal year, beginning September 1. The operating budget includes proposed expenditures and the means of financing them. 2) A meeting of the Board is then called for the purpose of adopting the proposed budget after ten days public notice for the meeting has been given. 3) Prior to September 1, the budget is legally enacted through passage of a resolution by the Board. 31

43 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT CARRIZO SPRINGS, TEXAS NOTES TO FINANCIAL STATEMENTS AUGUST 31, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) BASIS OF ACCOUNTING (Continued) 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. Amendments are presented to the Board at its regular meetings. Each amendment must haveboard approval. Such amendments that are made before the fact are reflected in the official minutes of the Board and are not made after fiscal yearend as required by law. Each budget is controlled by the budget coordinator at the revenue and expenditure function/object level. Budgeted amounts are as amended by the Board. All budget appropriations lapse at year-end. d. Capital Assets Capital assets, which include land, buildings and improvements, and furniture and equipment, are reported in the government-wide financial statements. The District defines capital assets with an initial, individual cost of more than $5,000 for furniture and equipment, buildings and improvements and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair value at date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Depreciation is computed over the estimated useful lives of each classification of capital asset using the straight-line method as follows: Asset Class Estimated Useful Lives Building and Improvements Years Furniture and Equipment 3-5 Years Vehicles 5-10 Years e. For purposes of cash flows, highly liquid investments are considered to be cash equivalents if they have a maturity of three months or less when purchased. f. Data Control codes refer to the account code structure prescribed by the TEA in the Resource Guide. g. Deferred revenue accounted for on the balance sheet of the general fund and the debt service fund relates to uncollected property taxes less the amount for doubtful accounts and the remainder relates to excess Foundation School Program funds received from the Texas Education Agency over earned State aid. 32

44 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT CARRIZO SPRINGS, TEXAS NOTES TO FINANCIAL STATEMENTS AUGUST 31, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) BASIS OF ACCOUNTING (Continued) h. Encumbrances for goods or purchased services are documented by purchase orders or contracts. Under Texas law, appropriations lapse at August 31, and encumbrances outstanding at that time are to be either cancelled or appropriately provided for in the subsequent year s budget. i. Net Assets/Fund Balances In the government-wide financial statements, net assets represent the difference between assets and liabilities. Net assets invested in capital assets, net of related debt consists of capital assets, net of accumulated depreciation, reduced by outstanding debt related to the acquisition of those capital assets. Net assets are reported as restricted when there are limitations imposed on their use by external creditors or grantors. Any remaining net assets are considered unrestricted. j. When both restricted and unrestricted resources are available for use, it is the District s policy to use restricted resources first, then unrestricted resources as they are needed. k. The fund financial statements report reservations of fund balance for amounts that are not available for appropriation or are legally reserved by outside parties for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. 2. DEPOSITS AND INVESTMENTS The District s funds are required to be deposited and invested under the terms of a depository contract. The depository bank deposits for safekeeping and trust with the District s agent bank approved pledged securities in an amount sufficient to protect District funds on a day-to-day basis during the period of the contract. The pledge of approved securities is waived only to the extent of the depository bank dollar amount of Federal Deposit Insurance Corporation ( FDIC ) Insurance. The Public Funds Investment Act requires an annual audit of investment practices. Audit procedures in this area conducted as a part of the basic financial statements disclosed that in the areas of investment practices, management reports and establishment of appropriate policies, the District adhered to the requirements of the Act. Additional investment practices of the District were in accordance with local policies. At August 31, 2010, the carrying amount for the District s deposits (demand deposits, certificates of deposit and interest-bearing savings accounts) was $ 81,560 and the bank balance was $ 685,893. The District had cash on hand in the amount of $ 4,700 as of August 31, 2010, and $ 6,733,741 in Investment Pools. During the fiscal year ending August 31, 2010 the District s total deposits were entirely covered by FDIC insurance or by collateral pledged by the District s depository institution in the District s name. 33

45 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT CARRIZO SPRINGS, TEXAS NOTES TO FINANCIAL STATEMENTS AUGUST 31, DEPOSITS AND INVESTMENTS (continued) In addition, the following is disclosed regarding coverage of combined balances on the date of highest deposit: a. Depository: Capital Bank of Texas, Carrizo Springs, Texas. b. The fair value for securities pledged as of the date for the highest combined balance and deposit was $ 3,217,865. c. The highest combined bank balances of cash, savings, and time deposits amounted to $ 1,780,513 and occurred on August 31, d. Total amount of FDIC coverage at the time of the highest combined balance was $ 250,000. Concentration of Credit Risk The District places no limit on the amounts invested or held on deposit in any one issuer. However the District requires sufficient collateral to be pledged by the issuer in the District s name for amounts not covered by FDIC insurance per government regulations. One hundred percent (100%) of the District s time deposits are held with one issuer. 3. TEMPORARY INVESTMENTS As of August 31, 2010, the District had $ 2,320,113 in temporary investments in the Lone Star Investment Pool and $ 3,981,711 in the TexasTerm Local Government Investment Pool, both of which meet the criteria for 2a7-like pools. The investments in these external investment pools are carried at fair value which is the same as the value of the pool shares. In accordance with Governmental Accounting Standards Board Statements No. 3 ( GASB 3 ) and No. 40 ( GASB 40 ), investments in external investment pools, such as the Lone Star Investment Pool and the TexasTerm Local Government Investment Pool, are not required to be categorized into the three risk categories provided above because the investments are in a pool of funds and therefore not evidenced by securities that exist in physical or book entry. External pools are not SEC-registered; however, they do have regulatory oversight. The Texas Association of School Boards oversees the Lone Star Investment Pool and the TexasTerm Local Government Investment Pool. The District is exposed to minimal credit risk with the Lone Star Investment Pool and the TexasTerm Local Government Investment Pool, both of which have been issued a credit quality rating of AAA by Standard & Poor s. GASB 40 does not require investment rate risk disclosures for 2a7-like pools. 34

46 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT CARRIZO SPRINGS, TEXAS NOTES TO FINANCIAL STATEMENTS AUGUST 31, PROPERTY TAXES Property taxes are levied by October 1 on the assessed value listed as of the prior January 1 for all real business personal property located in the District in conformity with Subtitle E, Texas Property Tax Code. Taxes are due on receipt of the tax bill and are delinquent if not paid before February 1 of the year following the year in which imposed. On January 1 of each year, a tax lien is attached to property to secure the payment of all taxes, penalties, and interest ultimately imposed. Property tax revenues are considered available when they become due or past due and receivable within the current period and those expected to be collected during a 60-day period after the close of the school fiscal year. Delinquent taxes are prorated between maintenance and debt service based on rates adopted for the year of the levy. Allowances for uncollectible tax receivables within the General and Debt Service Funds are based on historical experience in collecting property taxes. Uncollectible personal property taxes are periodically reviewed and written off, but the District is prohibited from writing off real property taxes without specific statutory authority from the Texas Legislature. 5. ACCUMULATED UNPAID VACATION AND SICK LEAVE BENEFITS The State of Texas has created a minimum sick leave program consisting of five days per year sick leave with no limit on accumulating and transferability among districts for every teacher regularly employed in Texas public schools. Each district s local Board of Education is required to establish a sick leave plan. Local school districts may provide additional sick leave beyond the state minimum. The District provides an additional five days per year. Sick leave is not vested, therefore upon resignation, termination, or nonrenewal of contract accumulated sick leave is not paid. The District s annual leave policy provides a maximum of ten days leave per year to all non-professional personnel in a twelve-month position. Upon resignation or termination personnel are compensated to the extent of leave earned, not to exceed ten days. 6. HEALTH CARE COVERAGE During the year-ended August 31, 2010, employees of the District were covered by a District Health Plan ( the Plan ). The District paid premiums of $ per month per employee to the plan. Employees, at their option, authorized payroll withholdings to pay premiums for dependents. All premiums were paid to a licensed insurer. 35

47 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT CARRIZO SPRINGS, TEXAS 7. CAPITAL ASSETS NOTES TO FINANCIAL STATEMENTS AUGUST 31, 2010 Capital Activity for the year-ended August 31, 2010 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities Capital Assets, Not Being Depreciated Land $ 275,681 $ - $ - $ 275,681 Land Improvements 340, ,223 Construction in Progress 507, ,597 (63,522) 549,006 Total Capital Assets, Not Being Depreciated 1,123, ,597 (63,522) 1,164,910 Capital Assets, Being Depreciated Building and Improvements 40,243, ,787 63,522 40,420,980 Furniture and Equipment 3,155, ,731-3,737,108 Total Capital Assets, Being Depreciated 43,399, ,518 63,522 44,158,088 Accumulated Depreciated For: Buildings and Improvements (28,563,649) (855,875) - (29,419,524) Furniture and Equipment (2,636,927) (201,134) - (2,838,061) Total Accumulated Depreciation (31,200,576) (1,057,009) - (32,257,585) Total Capital Assets, Being Depreciated, Net 12,198,472 (361,491) 63,522 11,900,503 Governmental Activities Capital Assets, Net $ 13,322,307 $ (256,894) $ - $ 13,065,413 Depreciation expenses were charged to various functions of the District as follows: Governmental Activities: Instruction $ 576,018 Instructional Resources & Media Services 34,948 Curriculum & Instructional Staff Development 2,473 Instructional Leadership 12,040 School Leadership 49,906 Guidance, Counseling & Evaluation Services 22,523 Social Work Services 62 Health Services 2,819 Student (Pupil) Transportation 133,310 Food Services 138,958 Co-curriculum/Extracurricular Activities 31,878 General Administration 3,139 Plant and Maintenance Operations 38,851 Security 8,245 Data Processing Services 1,118 Community Services 721 Total Depreciation Expense, Governmental Activities $ 1,057,009 36

48 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT CARRIZO SPRINGS, TEXAS 8. LONG TERM DEBT NOTES TO FINANCIAL STATEMENTS AUGUST 31, 2010 During fiscal year 2006, the District issued $6,584,998 in Unlimited Tax Refunding Bonds, Series The proceeds were used to defease a portion of the Unlimited Tax School Bonds, Series 2000 and to pay bond issue costs. The District received a loan from the Texas State Comptroller of Public Accounts, State Energy Conservation Office (LoneSTAR Project) for the purpose of renovating their air conditioning and lighting systems in the original amount of $ 860,930. The loan bears interest at 3% for a period of ten years, with quarterly payments due in the amount of $ 25,864. Long-term liability activity for the year-ended August 31, 2010 was as follows: Amounts Due Beginning Ending Within One Balance Additions Reductions Balance Year Bonds and notes payable: Unlimited Tax Refunding Bonds Series 2000 $ 180,000 $ - $ (180,000) $ - $ - Unlimited Tax Refunding Bonds Series ,319,998 - (65,000) 6,254,998 65,000 LoneSTAR Project Note 448,695 - (90,101) 358,594 90,100 Total bonds and notes payable $ 6,948,693 $ - $ (335,101) $ 6,613,592 $ 155,100 Interest rates are as follows: Interest Rate Payable Amounts of Original Issue LoneSTAR Project Note 3% $ 860,930 Unlimited Tax School Bonds Series % $ 8,000,000 Unlimited Tax School Bonds Series % $ 6,584,998 37

49 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT CARRIZO SPRINGS, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, LONG TERM DEBT (continued) Payments on the bonds and notes payable that pertain to the District s governmental activities are made by the debt service funds and the General Fund. Any compensated absences liability attributable to governmental activities will be liquidated by several of the District s governmental funds. The annual requirements to amortize bonds and notes payable as of August 31, 2010 including interest are as follows: Year Ended Total August 31, Principal Interest Requirements 2011 $ 114, ,824 $ 618, ,779 21, , , , , , , , , , , ,530,000 1,050,900 2,580, ,860, ,765 2,578, ,290, ,613 2,589,613 Total $ 6,613,592 $ 3,606,614 $ 10,220, DEFINED BENEFIT PENSION PLAN Plan Description. The District contributes to the Teacher Retirement System of Texas (TRS), a cost-sharing multiple employer defined benefit pension plan. TRS administers retirement and disability annuities, and death and survivor benefits to employees and beneficiaries of employees of the public school systems of Texas. It operates primarily under the provisions of the Texas Constitution, Article XVI, Sec. 67, and Texas Government Code, Title 8, Subtitle C. TRS also administers proportional retirement benefits and service credit transfer under Texas Government Code, Title 8, Chapter 803 and 805, respectively. The Texas state legislature has the authority to establish and amend benefit provisions of the pension plan and may, under certain circumstances, grant special authority to the TRS Board of Trustees. TRS issues a publicly available financial report that includes financial statements and required supplementary 38

50 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT CARRIZO SPRINGS, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, DEFINED BENEFIT PENSION PLAN (continued) information for the defined benefit pension plan. That report may be obtained by writing to the TRS Communications Department, 1000 Red River Street, Austin, Texas 78701, by calling the TRS Communications Department at , or by downloading the report from the TRS Internet website: under the TRS Publications heading. Funding Policy. Contribution requirements are not actuarially determined but are established and amended by the Texas state legislature. The state funding policy is as follows: (1) the state constitution requires the legislature to establish a member contribution rate of not less that 6.0% of the members annual compensation and a state contribution rate of not less than 6.0% and not more than 10% of the aggregate annual compensation of all members of the system; (2) a state statute prohibits benefit improvements or contribution reductions if, as a result of a particular action, the time required to amortize TRS unfunded actuarial liabilities would be increased to a period that exceeds 31 years, or, if the amortization period already exceeds 31 years, the period would be increased by such action. State law provides for a member contribution rate of 6.4% for the fiscal years 2010, 2009 and 2008, and a state contribution rate of 6.644% for fiscal years 2010 and 6.58% for fiscal years 2009 and In certain instances the reporting district is required to make all or a portion of the state s 6.644% contribution for fiscal years 2009 and 2008 and 6.0% for fiscal year 2007,limited to 6.4% for the period of September through December 2009 and increased to 6.644% for the period of January through August State contributions to TRS made on behalf of the District s employees for the year ended August 31, 2010, 2009 and 2008 were $ 700,447, $ 756,487, and $ 752,356, respectively. The District s paid additional state contributions for the three years ended August 31, 2010, 2009 and 2008 in the amounts of $129,218, $ 151,577, and $ 134,119, respectively on the portion of the employees salaries that exceeded the statutory minimum. Payments made on behalf of the District for fringe benefits for the District s employees were recognized as revenues and expenditures within the fiscal year. 10. OTHER POST-EMPLOYMENT BENEFITS Plan Description. The District contributes to the Texas Public School Retired Employees Group Insurance Program (TRS-Care), 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 (TRS). The statutory authority for the program is Texas Insurance Code, Chapter Section grants the TRS Board of Trustees the authority to establish and amend basic and optional group insurance coverage for participants. The TRS issues a publicly available financial report that includes financial statements and required supplementary information for TRS-Care. That report may be obtained by visiting the TRS Web site at under the TRS Publications heading, by writing to the Communications Department of the Teacher Retirement System of Texas at 1000 Red River Street, Austin, Texas 78701, or by calling

51 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT CARRIZO SPRINGS, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, OTHER POST-EMPLOYMENT BENEFITS (continued) Funding Policy. Contribution requirements are not actuarially determined but are legally established each biennium by the Texas Legislature. Texas Insurance Code, Section , 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 public school payroll, respectively, with school districts contributing a percentage of payroll set at 0.55% for fiscal years 2010, 2009 and 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 of the public school. For the years ended August 31, 2010, 2009 and 2008, the State s contributions to TRS-Care were $ 139,129, $ 137,060, and $ 134,319, respectively, the active member contributions were $ 90,435, $ 89,089 and $ 87,307, respectively, and the District s contributions were $ 76,520, $75,381 and $ 73,875, respectively, which equaled required contributions each year. Medicare Part D, (a part of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003) which was effective January 1, 2008, established prescription drug coverage for Medicare beneficiaries. One of the provisions of Medicare Part D allows for TRS-Care to receive drug subsidy payments from the federal government to offset certain prescription drug expenditures for eligible TRS-Care participants. For the fiscal years ended August31, 2010, 2009, 2008, the subsidy payments received by TRS- Care on behalf of the District were $34,740, $31,416, and $32,492, respectively. 11. MAINTENANCE OF EFFORT a. Total District Premium paid for Health Care $ 1,133,773 b. Subtract any Non-Medical Expeditures: Life Insurance - c Maintenance of Effort $ 1,133, LITIGATION The District was not involved in any significant litigation during the fiscal year and is not currently involved in any significant litigation. 13. DEFERRED EXPENDITURES/EXPENSES Deferred expenditures/expenses consist of the following: Prepaid bond issue costs $ 545,703 $ 545,703 40

52 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT CARRIZO SPRINGS, TEXAS 14. GRANTS NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2010 The District receives significant financial assistance from 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 and are subject to audit by the District s independent auditors and other governmental auditors. Any disallowed claims resulting from such audits could become a liability of the General Fund or other applicable fund. Based on prior experience, the District administration believes such disallowance, if any, would be immaterial. 15. ACCRUED EXPENDITURES Accrued expenditures consist of the following amounts at August 31, 2010 Workmen's compensation insurance estimated liability for claims based on the District's self-insurance program $ 246,296 Excess charges over amounts paid related to the District's practice of expensing paper usage to each general fund activity and crediting the accrued expenditures account 4,698 Total accrued expenditures $ 250, DEFERRED REVENUE Deferred revenue consists of the following: Bond issue prepayment, Net $ 483,749 Advance funding - General Fund 25,242 Advance funding - Special Revenue funds $ 26, , GENERAL FUND BUDGETARY HIGHLIGHTS Actual revenues generated in the General Fund were over budgeted revenues of $ million by $ thousand. Local and Intermediate revenues were $ 11.9 thousand less than the budgeted amount due to decreased tax collection, decreased interest income, and reduced miscellaneous revenue. However, State revenues realized were $ thousand more than the budgeted amount, due in large part to the changes in state funding. Federal revenues realized were $ 31.2 thousand more than the budgeted amount, largely due to the Child Nutrition Program and the timing of the ARRA equipment grant funding. 41

53 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT CARRIZO SPRINGS, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, ONGOING CONSTRUCTION PROJECTS The Board of Trustees of the District approved several construction projects from the Reserve for Construction in the General Fund that were not completed as of August 31, The District intends to continue appropriations for these projects. Budget Project Name Amendment Approved by Board Date Approved by Board Amount Stadium Concession BA /29/09 $ 6,160 Field House Roof BA /24/10 116,120 Junior High Parking Lot Repair BA /27/10 48,640 Science Department BA /15/09 2,284 Golf Donation BA /27/10 2,500 Field House Donation BA /27/10 1,000 $ 176, PRIOR PERIOD ADJUSTMENTS The District made the following prior-period adjustment during the fiscal year ending August 31, 2010: Fund Code Fund Description Amount 199 General Fund State Foundation revenues corrections from FY 2009 $ (194,935) Total Prior Period Adjustments $ (194,935) 20. FUND EQUITY In the governmental fund financial statements, unreserved undesignated fund equity for governmental funds indicate available amounts for the budgeting of future operations. The unreserved undesignated fund equity for governmental funds indicates unreserved funds that have been earmarked by Board Resolution for specific purposes and are therefore not available for general expenditures to be appropriated in the following period unless amended by future Board action. Reserved fund balance is that portion of fund equity that is not available for appropriation or which have been legally separated for other purposes. As of August 31, 2010, Special Revenue Funds reserves total $ 44,986 for federally funded programs, and the amount reserved for retirement of long term debt totals $ 62,278. The General Fund designated fund balance totals $ 2,323,988 for future and ongoing construction projects. 42

54 COMBINING STATEMENTS AS SUPPLEMENTARY INFORMATION

55 NON MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS

56 EXHIBIT H-1 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS AUGUST 31, 2010 Data Control Codes ASSETS 1110 Cash and Temporary Investments (market) $ 63, Due from Other Governments 958, Total Assets $ 1,022,029 LIABILITIES AND FUND BALANCES Liabilities: 2110 Accounts Payable $ 2, Accrued Wages Payable 105, Due to Other Funds 833, Due to Other Governments Accrued Expenditures/Expenses 8, Deferred Revenues 26, Total Liabilities 977,043 Fund Balances: Unreserved and Undesignated: 3610 Reported in Special Revenue Funds 44, Total Fund Balances 44, Total Liabilities and Fund Balances $ 1,022,029 43

57 EXHIBIT H-2 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED AUGUST 31, 2010 Data Control Codes REVENUES 5700 Total Local and Intermediate Sources $ State Program Revenues 1,117, Federal Program Revenues 4,770, Total Revenues 5,888,656 EXPENDITURES Current: 0011 Instruction 3,929, Instructional Resources & Media Services 51, Curriculum & Instructional Staff Development 425, Instructional Leadership 534, School Leadership 18, Guidance, Counseling & Evaluation Services 348, Social Work Services 4, Health Services 84, Student (Pupil) Transportation 20, Food Services 54, Co curriculum/extracurricular Activities 51, General Administration 95, Plant Maintenance and Operations 54, Security and Monitoring Services 6, Data Processing Services 119, Community Services 34,845 Capital Outlay: 0081 Facilities Acquisition and Construction 12, Total Expenditures 5,845, Excess (Deficiency) of Revenues Over (Under) 42,918 Expenditures 1200 Net Change in Fund Balances 37, Fund Balance - September 1 (Beginning) 7,068 PA Prior Period Adjustments Fund Balance - August 31 (Ending) $ 44,986 44

58 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS AUGUST 31, 2010 Data Control ESEA TITLE I ESEA TITLE I ESEA TITLE I Codes PART A PART C PART B IMPR BASIC MIGRATORY EVEN START ASSETS 1110 Cash and Temporary Investments (market) $ - $ - $ Property Taxes - Delinquent Allowance for Uncollectible Taxes (credit) Due from Other Governments 108,754 25,636 14, Accrued Interest Other Receivables Prepaid Expense Total Assets $ 108,754 $ 25,636 $ 14,812 LIABILITIES AND FUND BALANCES Liabilities: 2110 Accounts Payable $ - $ - $ Payroll Deductions and Withholdings Payable Accrued Wages Payable 44,392 4, Due to Other Funds 60,401 21,164 14, Due to Other Governments Accrued Expenditures/Expenses 3, Deferred Revenues Total Liabilities 108,754 25,636 14,812 Fund Balances: Reserved For: 3420 Retirement of Long-Term Debt Unreserved and Designated: 3510 Designated for Construction Unreserved and Undesignated: 3600 Reported in the General Fund Reported in Special Revenue Funds Total Fund Balances Total Liabilities and Fund Balances $ 108,754 $ 25,636 $ 14,812 45

59 EXHIBIT H-3 (continued) TX EFFECTIVE SUMMER FOOD VOC VOC ED IDEA B IDEA B STUDY SERVICE TECH CARL D PERKINS FORMULA PRESCHOOL MINI-GRANT PROGRAM PREP BASIC G $ - $ - $ 1,568 $ 38,189 $ 42 $ - 46, $ 46,614 $ 1 $ 1,568 $ 38,189 $ 42 $ 658 $ 120 $ - $ - $ - $ - $ - 21, , , , , , , , $ 46,614 $ 1 $ 1,568 $ 38,189 $ 42 $

60 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS AUGUST 31, 2010 Data Control TITLE II, PT A, TITLE I, TITLE II TITLE III Codes TEACHER & COMPR SCH PART D, PART A, PRIN REFORM TECHNOLOGY LEP ASSETS 1110 Cash and Temporary Investments (market) $ - $ - $ - $ Property Taxes - Delinquent Allowance for Uncollectible Taxes (credit) Due from Other Governments 24,495 3,006 2, Accrued Interest Other Receivables Prepaid Expense Total Assets $ 24,495 $ 3,006 $ 2,353 $ - LIABILITIES AND FUND BALANCES Liabilities: 2110 Accounts Payable $ - $ - $ - $ Payroll Deductions and Withholdings Payable Accrued Wages Payable 10, Due to Other Funds 13,159 3,006 2, Due to Other Governments Accrued Expenditures/Expenses Deferred Revenues Total Liabilities 24,495 3,006 2,353 - Fund Balances: Reserved For: 3420 Retirement of Long-Term Debt Unreserved and Designated: 3510 Designated for Construction Unreserved and Undesignated: 3600 Reported in the General Fund Reported in Special Revenue Funds Total Fund Balances Total Liabilities and Fund Balances $ 24,495 $ 3,006 $ 2,353 $ - 47

61 EXHIBIT H-3 (continued) TEXAS 21ST ARRA of 2009 TITLE I ARRA (STIMULUS) ARRA (STIMULUS) ARRA (STIMULUS) CENTURY STATE FISCAL SIP TITLE II, PART D IDEA PART B IDEA PART B GRANT STABILIZATION ACADEMY SUBPART I FORMULA PRESCHOOL $ - $ - $ - $ - $ - $ 3, , ,978 61,729 18,246 20,512 - $ 102,690 $ 151,978 $ 61,729 $ 18,246 $ 20,512 $ 3,119 $ - $ - $ - $ - $ - $ - 1,570 2, , , ,110 61,729 18,246 12, , , ,978 61,729 18,246 20,512 3,119 $ 102,690 $ 151,978 $ 61,729 $ 18,246 $ 20,512 $ 3,119 48

62 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS AUGUST 31, 2010 Data Control ARRA (STIMULUS) MATH PROF TITLE III, Codes TITLE I, PART A DEVLPMT LEP IMP BASIC PROG PARTNERSHIP SUMMER ASSETS 1110 Cash and Temporary Investments (market) $ - $ 171 $ Property Taxes - Delinquent Allowance for Uncollectible Taxes (credit) Due from Other Governments 22,265-4, Accrued Interest Other Receivables Prepaid Expense Total Assets $ 22,265 $ 171 $ 4,702 LIABILITIES AND FUND BALANCES Liabilities: 2110 Accounts Payable $ - $ - $ Payroll Deductions and Withholdings Payable Accrued Wages Payable 8, Due to Other Funds 12, Due to Other Governments Accrued Expenditures/Expenses Deferred Revenues Total Liabilities 22, Fund Balances: Reserved For: 3420 Retirement of Long-Term Debt Unreserved and Designated: 3510 Designated for Construction Unreserved and Undesignated: 3600 Reported in the General Fund Reported in Special Revenue Funds - - 4, Total Fund Balances - - 4, Total Liabilities and Fund Balances $ 22,265 $ 171 $ 4,702 49

63 EXHIBIT H-3 (continued) EDUC SPEC REV FUND- SSI INTENSIVE ECON SEC EXTENDED ARI/AMI SUMMER (EESA) TII YEAR PROGRAM PROGRAM TECHNOLOGY $ 582 $ - $ - $ - $ 19, ,649 30,986 36, $ 1,532 $ 1,649 $ 30,986 $ 36,406 $ 19,906 $ - $ - $ 40 $ 2,017 $ (159) - 1,649 30,415 37, (3) ,360-1,649 30,986 40,768 15, , (4,361) 4,708 1, (4,361) 4,708 $ 1,532 $ 1,649 $ 30,986 $ 36,406 $ 19,906 50

64 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS AUGUST 31, 2010 Data Control TELECOM KINDERGARTEN ACTIVE Codes INFRASTRUCTURE AND PRE K EMPLOYEE HIC FUND - TIF GRANTS SUPPLEMENT ASSETS 1110 Cash and Temporary Investments (market) $ - $ - $ Property Taxes - Delinquent Allowance for Uncollectible Taxes (credit) Due from Other Governments 10,707 31, Accrued Interest Other Receivables Prepaid Expense Total Assets $ 10,707 $ 31,885 $ 239 LIABILITIES AND FUND BALANCES Liabilities: 2110 Accounts Payable $ - $ - $ Payroll Deductions and Withholdings Payable Accrued Wages Payable - 4, Due to Other Funds 10,707 27, Due to Other Governments Accrued Expenditures/Expenses Deferred Revenues Total Liabilities 10,707 31, Fund Balances: Reserved For: 3420 Retirement of Long-Term Debt Unreserved and Designated: 3510 Designated for Construction Unreserved and Undesignated: 3600 Reported in the General Fund Reported in Special Revenue Funds Total Fund Balances Total Liabilities and Fund Balances $ 10,707 $ 31,885 $

65 EXHIBIT H TEEM TX ED ST LEG IMPACT TX STATE Total EXCELLENCE ASST GRANT- FUNDED Other SLIAG GRANT SLIAG GRANTS Funds $ - $ - $ - $ - $ 63, , , , $ 48,076 $ - $ - $ 189,103 $ 1,022,029 $ - $ - $ - $ - $ 2, ,384 47, , , , ,185 26,263 48, , , , ,986 $ 48,076 $ - $ - $ 189,103 $ 1,022,029 52

66 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE NONMAJOR SPECIAL REVENUE FUNDS FOR THE YEAR ENDED AUGUST 31, 2010 Data Control ESEA TITLE I ESEA TITLE I ESEA TITLE I Codes PART A PART C PART B IMPR BASIC MIGRATORY EVEN START REVENUES 5700 Total Local and Intermediate Sources $ - $ - $ State Program Revenues Federal Program Revenues 1,237, , , Total Revenues 1,237, , ,635 EXPENDITURES Current: 0011 Instruction 896, ,022 72, Instructional Resources & Media Services 21, Curriculum & Instructional Staff Development 36,510-4, Instructional Leadership 31,459 60,466 88, School Leadership 4, Guidance, Counseling & Evaluation Services 117,168 65, Social Work Services - 2, Health Services 80,799 1, Student (Pupil) Transportation 16,309-3, Food Services Co curriculum/extracurricular Activities General Administration Plant Maintenance and Operations 12,589-1, Security and Monitoring Services Data Processing Services Community Services 20,260 2,077 8,874 Capital Outlay: 0081 Facilities Acquisition and Construction Total Expenditures 1,237, , , Excess (Deficiency) of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) 7915 Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balance - September 1 (Beginning) PA Prior Period Adjustments Fund Balance - August 31 (Ending) $ - $ - $ - 53

67 EXHIBIT H-4 (continued) TX EFFECTIVE SUMMER FOOD VOC VOC ED IDEA B IDEA B STUDY SERVICE TECH CARL D PERKINS FORMULA PRESCHOOL MINI-GRANT PROGRAM PREP BASIC G $ - $ - $ - $ 756 $ - $ - 446,866 7,377-86,545-33, ,866 7,377-87,301-33, ,574 7, ,023 2, , , , , ,866 7,377-44,383-33, , (5,000) (5,000) , $ - $ - $ 216 $ 38,189 $ - $ - 54

68 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE NONMAJOR SPECIAL REVENUE FUNDS FOR THE YEAR ENDED AUGUST 31, 2010 Data Control TITLE II, PT A, TITLE I, TITLE II TITLE III Codes TEACHER & COMPR SCH PART D, PART A, PRIN REFORM TECHNOLOGY LEP REVENUES 5700 Total Local and Intermediate Sources $ - $ - $ - $ State Program Revenues Federal Program Revenues 234, ,800 18, Total Revenues 234, ,800 18,827 EXPENDITURES Current: 0011 Instruction 164, ,207 18, Instructional Resources & Media Services Curriculum & Instructional Staff Development 70,190-9, Instructional Leadership School Leadership Guidance, Counseling & Evaluation Services Social Work Services Health Services Student (Pupil) Transportation Food Services Co curriculum/extracurricular Activities General Administration Plant Maintenance and Operations Security and Monitoring Services Data Processing Services - - 8, Community Services Capital Outlay: 0081 Facilities Acquisition and Construction Total Expenditures 234, ,800 18, Excess (Deficiency) of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) 7915 Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balance - September 1 (Beginning) PA Prior Period Adjustments Fund Balance - August 31 (Ending) $ - $ - $ - $ - 55

69 EXHIBIT H-4 (continued) TEXAS 21ST ARRA of 2009 TITLE I ARRA (STIMULUS) ARRA (STIMULUS) ARRA (STIMULUS) CENTURY STATE FISCAL SIP TITLE II, PART D IDEA PART B IDEA PART B GRANT STABILIZATION ACADEMY SUBPART I FORMULA PRESCHOOL $ - $ - $ - $ - $ - $ - 440, , ,468 30, ,459 1, , , ,468 30, ,459 1, , ,572 70, ,879 1,559-1, ,534-6, ,774 76, , , ,874-51, , , , ,851-30, , , , ,468 30, ,459 1,559 $ - $ - $ - $ - $ - $ - 56

70 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE NONMAJOR SPECIAL REVENUE FUNDS FOR THE YEAR ENDED AUGUST 31, 2010 Data Control ARRA (STIMULUS) MATH PROF TITLE III, Codes TITLE I, PART A DEVLPMT LEP IMP BASIC PROG PARTNERSHIP SUMMER REVENUES 5700 Total Local and Intermediate Sources $ - $ - $ State Program Revenues Federal Program Revenues 508, Total Revenues 508, EXPENDITURES Current: 0011 Instruction 467, Instructional Resources & Media Services 27, Curriculum & Instructional Staff Development 7, Instructional Leadership School Leadership 4, Guidance, Counseling & Evaluation Services Social Work Services Health Services Student (Pupil) Transportation Food Services Co curriculum/extracurricular Activities General Administration Plant Maintenance and Operations Security and Monitoring Services Data Processing Services Community Services Capital Outlay: 0081 Facilities Acquisition and Construction Total Expenditures 508, Excess (Deficiency) of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) 7915 Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balance - September 1 (Beginning) - - 4,702 PA Prior Period Adjustments Fund Balance - August 31 (Ending) $ - $ - $ 4,702 57

71 EXHIBIT H-4 (continued) EDUC INVESTMENT SPEC REV FUND- SSI INTENSIVE ECON SEC CAPITAL FUND EXTENDED ARI/AMI SUMMER (EESA) TII GRANT YEAR PROGRAM PROGRAM TECHNOLOGY $ - $ - $ - $ - $ - $ ,081 38, ,135 53, ,081 38, ,135 53, ,212 37, ,436 24, , , , , , , ,081 38, ,135 53,808 1, (4,361) 4,708 $ 1,532 $ - $ - $ - $ (4,361) $ 4,708 58

72 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE NONMAJOR SPECIAL REVENUE FUNDS FOR THE YEAR ENDED AUGUST 31, 2010 Data Control TELECOM KINDERGARTEN ACTIVE Codes INFRASTRUCTURE AND PRE K EMPLOYEE HIC FUND - TIF GRANTS SUPPLEMENT REVENUES 5700 Total Local and Intermediate Sources $ - $ - $ State Program Revenues - 230, Federal Program Revenues Total Revenues - 230,026 - EXPENDITURES Current: 0011 Instruction - 230, 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 Co curriculum/extracurricular Activities General Administration Plant Maintenance and Operations Security and Monitoring Services Data Processing Services Community Services Capital Outlay: 0081 Facilities Acquisition and Construction Total Expenditures - 230, Excess (Deficiency) of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) 7915 Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balance - September 1 (Beginning) PA Prior Period Adjustments Fund Balance - August 31 (Ending) $ - $ - $ - 59

73 EXHIBIT H TEEM TX ED ST LEG IMPACT TX STATE Total EXCELLENCE ASST GRANT- FUNDED Other SLIAG GRANT SLIAG GRANTS Funds $ - $ - $ - $ - $ ,744 53, ,873 1,117, ,770, ,744 53, ,873 5,888,656-39, ,378 3,929, ,974 51, ,744 5,386-55, , , ,389 18, , , , ,987 84, , ,967 54, ,542-8, , ,980 54, , , , , ,744 53, ,873 5,845, , (5,000) (5,000) , , $ - $ - $ - $ - $ 44,986 60

74 FIDUCIARY FUNDS

75 EXHIBIT I-1 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS FOR THE YEAR ENDED AUGUST 31, 2010 Data Control Balance Balance Codes Sept. 1, 2009 Additions Deductions Aug. 31, 2010 ASSETS 1110 Cash $ 105,997 $ 298,686 $ (301,717) $ 102, Total Assets $ 105,997 $ 298,686 $ (301,717) $ 102,966 LIABILITIES 2190 Due to Student Groups $ 105,997 $ 298,686 $ (301,717) $ 102, Total Liabilities $ 105,997 $ 298,686 $ (301,717) $ 102,966 61

76 OTHER SUPPLEMENTARY INFORMATION SECTION

77 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT SCHEDULE OF DELINQUENT TAXES RECEIVABLE FOR THE YEAR ENDED AUGUST 31, TEN YEARS ENDED ASSESSED OR BEGINNING AUGUST 31, APPRAISED BALANCE MAINTENANCE DEBT SERVICE VALUATION 09/01/ and prior years various various $ various $ 1,868, ,431, , ,680, , ,747, , ,784, , ,121, , ,869, , ,382, , ,255, , ,346, Totals $ 3,610,194 62

78 EXHIBIT J CURRENT DEBT ENTIRE ENDING YEAR'S MAINTENANCE SERVICE TOTAL YEAR'S BALANCE TOTAL LEVY COLLECTIONS COLLECTIONS COLLECTIONS ADJUSTMENTS 08/31/2010 $ - $ 22,855 6,715 $ 29,570 $ 165,891 $ 2,005,192-4, ,414 (5,311) 97,855-5, ,226 (5,438) 119,393-6, ,607 (595) 122,803-7, ,282 (4,827) 139,619-13, ,162 (5,093) 188,866-17, ,010 2, ,576-32,974 1,888 34,862 (738) 242, ,072 7, ,734 (8,656) 327,269 5,105,350 4,342, ,683 4,591,329 (76,431) 437,590 $ 5,105,350 $ 4,580,833 $ 267,363 $ 4,848,196 $ 60,817 $ 3,928,165 63

79 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT SCHEDULE OF EXPENDITURES FOR COMPUTATIONS OF INDIRECT COST FOR GENERAL AND SPECIAL REVENUE FUNDS FOR THE YEAR ENDED AUGUST 31, 2010 FUNCTION 41, 99 AND RELATED FUNCTIONS 53 - GENERAL ADMINISTRATION (702) (703) (701) (750) (720) (other) Account Account School Tax Supt's Indirect Direct Number Name Board Collections Office Cost Cost Miscellaneous 611X-6146 PAYROLL COSTS $ 37,719 24, , ,906 $ - $ Leave for Separating Employees in Fn 41 & Leave - Separating Employees not in Fn 41 & Legal Services , Audit Services , Tax Appraisal and Collection - 284, X Other Professional Services 1,755-56,179 36, Tuition and Transfer Payments 6230 Education Service Centers , Contr. Maint. And Repair - - 3,642-6, Utilities 6260 Rentals , Miscellaneous Contr , Textbooks and Reading Testing Materials 63XX Other Supplies Materials 1,801-5,726 15, Travel, Subsistence, Stipends 7,992-6,799 5, Insurance and Bonding Costs 6, Election Costs Miscellaneous Operating 1,716-11,158 6, Debt Service 6600 Capital Outlay 6000 TOTAL $ 59,473 $ 308,703 $ 384,194 $ 568,178 $ 6,129 $ - Total expenditures/expenses for General and Special Revenue funds (9) LESS: Deductions of Unallowable Costs FISCAL YEAR Total Capital Outlay (6600) (10) $ 750,904 Total Debt & Lease (6500) (11) 618,809 Plant Maintenance (Function 51, ) (12) 2,260,993 Food (Function 35, 6341 and 6499) (13) 660,543 Stipends (6413) (14) 5,400 Column 4 (above) - Total Indirect Cost 568,178 Subtotal: Net Allowed Direct Cost CUMULATIVE Total Cost of Buildings before Depreciation (1520) (15) Historical Cost of Building over 50 years old (16) Amount of Federal Money in Building Cost (Net of #16) (17) Total Cost of Furniture & Equipment before Depreciation (1520 & 1540) (18) Historical Cost of Furniture & Equipment over 16 years old (19) Amount of Federal Money in Furniture & Equipment (Net of #19) (20) (8) Note A: $ 9 of Function 53 costs and $ 284,444 of Function 99 costs are included in this report on administrative costs. 64

80 EXHIBIT J-2 7 Total $ 576, ,638 49, ,444 94,655-42,253 9,771-2,498 24, ,819 20,560 6, , $ 1,326,677 $ 24,531,490 4,864,827 $ 19,666,663 $ 40,805,659 $ 1,932,199 $ - $ 3,737,108 $ - $ 228,970 65

81 EXHIBIT J-3 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT FUND BALANCE CASH FLOW CALCULATION WORKSHEET GENERAL FUND AS OF AUGUST 31, 2010 Data Control Code Amount 1. Total General Fund Balance as of August 31, 2010 (Exhibit C-1) $ 7,324, Total Reserved Fund Balance - General Fund Only - 3. Total Designated Fund Balance - General Fund Only 2,323, Estimated amount needed to cover fall cash flow deficits in the General Fund (Net of borrowed funds and funds representing deferred revenues) 2,000, Estimated of two month's average cash disbursements during the fiscal year 2,833, Estimate of delayed payments from state sources 222, Estimate of underpayment from state sources equal to variance 252,081 between Legislative Payment Estimate (LPE) and District Plannint Estimate (DPE) or District's calculated earned state aid amount 8. Estimate of delayed payments from federal sources - 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. Adjustment to meet Board Policy UNAUDITED Explanation 11. Optimum Fund Balance and Cash Flow (Lines ) 7,631, Excess (Deficit) Undesignated Unreserved General Fund Balance (Line 1 minus Line 11) $ (307,335) If item 11 is a Positive Number Explanation of need and/or projected use of net positive Undesignated Unreserved General Fund Balance: Not Applicable 66

82 EXHIBIT J-4 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT BUDGETARY COMPARISON STATEMENT CHILD NUTRITION PROGRAM FOR THE YEAR ENDED AUGUST 31, 2010 Variance Data With Final Control Budgeted Amounts Actual Amounts Budget Codes (Budgetary Positive or Original Final Basis) (Negative) REVENUES 5700 Local Revenues $ 103,488 $ 84,988 $ 76,681 $ (8,307) 5800 State Revenues 44,055 44,802 44,339 (463) 5900 Federal Program Revenues 1,110,384 1,499,713 1,535,768 36, Total Revenues 1,257,927 1,629,503 1,656,788 27,285 EXPENDITURES 0035 Food Services 1,407,927 1,779,503 1,749,746 29, Total Expenditures 1,407,927 1,779,503 1,749,746 29, Excess (deficiency) of revenues over expenditures (150,000) (150,000) (92,958) 57,042 OTHER FINANCING SOURCES (USES): 7911 Transfers In 150, , ,875 (14,125) 7080 Total Other Financing Sources (Uses) 150, , ,875 (14,125) 1200 Net Change in Fund Balances ,918 42,918 Prior Period Adjustments Fund Balance - September 1 (25,715) (25,715) (25,715) Fund Balance - August 31 $ (25,715) $ (25,715) $ 17,203 $ 42,918 67

83 EXHIBIT J-5 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT BUDGETARY COMPARISON STATEMENT DEBT SERVICE FUND FOR THE YEAR ENDED AUGUST 31, 2010 Variance Data With Final Control Budgeted Amounts Actual Amounts Budget Codes (Budgetary Positive or Original Final Basis) (Negative) REVENUES 5700 Total Local and Intermediate Sources $ 317,031 $ 317,531 $ 283,056 $ (34,475) 5800 State Program Revenues 198, , , Total Revenues 515, , ,846 (34,475) EXPENDITURES 0071 Debt Service - Principal on long-term debt 245, , , Debt Service - Interest on long-term debt 270, , ,355 10, Total Expenditures 515, , ,355 10, Net Change in Fund Balances - - (23,509) (23,509) 0100 Fund Balance - September 1 (Beginning) 85,787 85,787 85, Fund Balance - August 31 (Ending) $ 85,787 $ 85,787 $ 62,278 $ (23,509) 68

84 STATISTICAL SECTION (Unaudited) This part of the District s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, 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. Revenue Capacity These schedules contain information to help the reader assess the District s most significant local revenues sources, the property tax. Debt Capacity These schedules present information to help the reader assess the affordability of the District s current levels of outstanding debt and the District s ability to issue additional debt in the future. 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. Operating 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 the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual Financial Reports or Annual Financial Reports for the relevant year.

85 FINANCIAL TRENDS

86 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT NET ASSETS BY COMPONENT LAST NINE FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) Fiscal Year Primary Government Invested in Capital Assets, Net of Related Debt $ 3,694,482 $ 7,738,825 $ 7,947,605 $ 6,877,134 $ 6,420,651 Restricted 204,365 Unrestricted 9,912,124 5,888,892 6,142,188 6,111,675 7,479,099 Note: The District began to report accrual information when it implemented GASB Statement 34 in fiscal year $ 13,606,606 $ 13,627,717 $ 14,089,793 $ 13,193,174 $ 13,899,750 69

87 TABLE L $ 5,573,198 $ 6,284,459 $ 6,432,985 $ 6,513, ,672,125 9,630,517 9,211,166 10,391,547 $ 15,245,323 $ 15,914,976 $ 15,644,151 $ 16,905,322 70

88 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT EXPENSES, PROGRAM REVENUES, AND NET (EXPENSE)/REVENUE LAST NINE FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) Fiscal Year Expenses Governmental Activities: Instruction $ 11,330,391 $ 11,702,119 $ 11,155,211 Instructional Resources & Media Services 515, , ,672 Curriculum & Staff Development 72,982 83,233 55,975 Instructional Leadership 531, , ,969 School Leadership 980,721 1,006, ,682 Guidance, Counseling & Evaluation Svcs 742, , ,294 Social Work Services 18,445 27,684 8,085 Health Services 131, , ,570 Student Transportation 503, , ,534 Food Service 1,542,148 1,538,065 1,507,845 Cocurricular/Extracurricular Activities 557, , ,687 General Administration 908, , ,402 Plant Maintenance & Operations 1,603,448 1,944,019 1,973,857 Security & Monitoring Services 37,429 36,056 38,327 Data Processing Services 201, , ,173 Community Services 54,590 99, ,951 Interest on Long-Term Debt 503, , ,185 Bond Issuance Costs & Fees Facilities Acquisition and Construction - 1,324,824 - Payments Related to SSA's 9,368 8,987 14,511 Total Governmental Activities Expenses 20,244,564 22,590,913 20,514,930 Total Primary Government Expenses $ 20,244,564 $ 22,590,913 $ 20,514,930 Program Revenues Governmental Activities: Charges for Services: Instruction $ - $ - $ - Curriculum & Staff Development Instructional Leadership Guidance, Counseling & Evaluation Svcs Student Transportation Food Services 114, , ,581 Cocurricular/Extracurricular Activities 42,189 41,503 55,459 General Administration Plant Maintenance & Operations Security & Monitoring Services Community Services Other Activities Operational Grants and Contributions 3,751,017 4,600,860 4,070,296 Capital Grants and Contrbutions Total Governmental Activities Program Rev. 3,907,274 4,770,653 4,227,336 Total Primary Government Program Rev. $ 3,907,274 $ 4,770,653 $ 4,227,336 Net (Expense) / Revenue Governmental Activities $ (16,337,290) $ (17,820,260) $ (16,287,594) Total Primary Government Net Expense $ (16,337,290) $ (17,820,260) $ (16,287,594) Note: The District began to report accrual information when it implemented GASB Statement 34 in fiscal year

89 TABLE L $ 11,703,593 $ 11,555,021 $ 12,435,536 $ 12,843,558 $ 14,534,197 $ 13,285, , , , , , ,707 74,266 87,598 75,548 65, , , , , , , , ,193 1,027,422 1,172,937 1,229,686 1,302,464 1,228,108 1,143, , , , , , ,635 9,724 7,932 6,084 27,365 24,482 26, , , , , , , , , , , , ,104 1,473,703 1,506,766 1,463,339 1,580,524 1,646,683 1,669, , , , , , , , ,400 1,038, , ,742 1,045,363 2,204,165 2,141,409 2,246,888 2,300,258 2,323,624 2,299,844 52,451 84, , , , , , , , , , , , , ,576 74,804 55,680 39, , , , , , ,708 25,806 33,536 34, , , ,451 21,801,625 21,940,936 22,892,074 23,806,380 25,617,801 24,966,054 $ 21,801,625 $ 21,940,936 $ 22,892,074 $ 23,806,380 $ 25,617,801 $ 24,966,054 $ - $ - $ - $ - $ - $ - 119, , , ,864 74,908 73,141 62,885 43,480 45,108 62,597 65,583 47,416 4,661,656 4,634,211 4,435,791 4,618,946 6,068,641 7,941, ,970 4,844,346 4,791,609 4,590,421 4,782,407 6,209,132 8,303,157 $ 4,844,346 $ 4,791,609 $ 4,590,421 $ 4,782,407 $ 6,209,132 $ 8,303,157 $ (16,957,279) $ (17,149,327) $ (18,301,653) $ (19,023,973) $ (19,408,669) $ (16,662,897) $ (16,957,279) $ (17,149,327) $ (18,301,653) $ (19,023,973) $ (19,408,669) $ (16,662,897) 72

90 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT GENERAL REVENUES AND TOTAL CHANGE IN NET ASSETS LAST NINE FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) Fiscal Year Net (Expense) / Revenue Governmental Activities $ (16,337,290) $ (17,820,260) $ (16,287,594) Total Primary Government Net Expense (16,337,290) (17,820,260) (16,287,594) General Revenues & Other Changes in Net Assets Governmental Activities: Property Taxes: Levied for General Purposes 2,789,933 3,287,772 3,352,179 Levied for Debt Service 151, , ,503 Investment Earnings Unrestricted Grants and Contributions 12,001,120 13,076,276 12,707,209 Special Item Extraordinary Item Extraordinary Item Miscellaneous 537,480 1,302, ,855 Total Governmental Activities 15,480,259 17,841,372 17,149,746 Total Primary Government 15,480,259 17,841,372 17,149,746 Change in net assets from operations (857,031) 21, ,152 Prior Period Adjustment - - (400,075) Change in Net Assets: Governmental Activities (857,031) 21, ,077 Total Primary Government $ (857,031) $ 21,112 $ 462,077 Note: The District began to report accrual information when it implemented GASB Statement 34 in fiscal year

91 TABLE L $ (16,957,279) $ (17,149,327) $ (18,301,653) $ (19,023,973) $ (19,408,669) $ (16,662,897) (16,957,279) (17,149,327) (18,301,653) (19,023,973) (19,408,669) (16,662,897) 4,222,443 4,840,339 5,413,165 5,132,694 4,685,708 4,817, , , , , , , ,369 95,349 20,935 11,741,901 11,744,982 13,535,838 13,839,819 13,557,779 12,892, , , ,256-2, ,000 12,050 - (113,218) , , , ,744 80,110 95,427 17,055,854 17,855,903 19,647,223 19,697,137 19,174,077 18,119,004 17,055,854 17,855,903 19,647,223 19,697,137 19,174,077 18,119,004 98, ,576 1,345, ,164 (234,592) 1,456,107 (995,199) - - (3,511) (36,233) (194,935) (896,624) 706,576 1,345, ,653 (270,825) 1,261,172 $ (896,624) $ 706,576 $ 1,345,570 $ 669,653 $ (270,825) $ 1,261,172 74

92 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) Fiscal Year General Fund Reserved $ - $ - $ - $ - Unreserved 1,964,487 2,006,220 2,652,559 3,682,671 Total General Fund $ 1,964,487 $ 2,006,220 $ 2,652,559 $ 3,682,671 All Other Governmental Funds Reserved State & Federal Programs $ - $ 63,235 $ - $ - Other - Special Revenue 2,015 8,615 24,600 Food Service Capital Acquisitions 8,438,616 5,691, ,292 (1,714) Debt Service 82,258 (28,038) 46, ,112 Total All Other Governmental Funds $ 8,520,874 $ 5,728,307 $ 983,563 $ 122,998 Total All Governmental Funds $ 10,485,361 $ 7,734,527 $ 3,636,122 $ 3,805,669 75

93 TABLE L $ 204,365 $ - $ 2,670,611 $ 2,920,569 $ 2,373,732 $ 2,323,988 3,645,567 4,785,151 3,918,540 3,918,540 4,029,254 5,000,097 $ 3,849,932 $ 4,785,151 $ 6,589,151 $ 6,839,109 $ 6,402,986 $ 7,324,085 $ - $ - $ - $ - $ - $ - 40,338 39,901 7,901 8,343 7,068 44,986 48,684 62,135 38, ,765 85,787 62,278 $ 89,022 $ 102,036 $ 45,968 $ 121,108 $ 92,855 $ 107,264 $ 3,938,954 $ 4,887,187 $ 6,635,119 $ 6,960,217 $ 6,495,841 $ 7,431,349 76

94 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) Revenues Local & Intermediate Sources $ $ 4,499,527 $ 3,956,941 $ 4,378,771 $ 4,515,824 State Program Revenues 12,160,525 12,598,010 13,828,534 12,925,663 Federal Program Revenues 3,206,705 3,312,646 3,799,806 3,851,842 Total Revenues 19,866,757 19,867,597 22,007,111 21,293,329 Expenditures Instruction $ $ 10,348,206 $ 10,842,533 $ 11,223,474 $ 10,634,559 Instructional Resources & Media Services 530, , , ,375 Curriculum & Staff Development 65,554 71,739 81,873 54,598 Instructional Leadership 527, , , ,363 School Leadership 950, , , ,199 Guidance, Counseling & Evaluation Svcs 782, , , ,556 Social Work Services 17,880 18,455 27,684 8,085 Health Services 129, , , ,200 Student Transportation 342, , , ,358 Food Service 1,435,836 1,473,165 1,462,415 1,419,968 Cocurricular/Extracurricular Activities 500, , , ,167 General Administration 974, , , ,003 Plant Maintenance & Operations 1,636,560 1,589,720 1,908,759 1,935,723 Security & Monitoring Services 35,288 37,429 36,056 38,327 Data Processing Services 228, , , ,173 Community Services 60,274 54,590 99, ,334 Principal on Long-Term Debt** 817, , , ,000 Interest on Long-Term Debt - 503, , ,185 Facilities Acquisition and Construction 171,055 2,795,264 5,506,296 1,645,954 Payments Related to SSA's 5,008 9,368 8,987 14,511 Total Expenditures 19,559,976 22,632,599 26,635,255 21,584,638 Excess of Revenues Over (Under) Expenditures 306,781 (2,765,002) (4,628,144) (291,309) Other Financing Sources (Uses) Capital-Related Debt Issued (Regular Bonds) 8,000, Transfers In Other Resources - 210, , ,855 Transfers Out Payment to Bond Refunding Escrow Agent Other Uses Total Other Financing Sources (Uses) 8,000, , , ,855 Net Change in Fund Balances $ $ 8,306,781 $ (2,555,002) $ (4,103,110) $ 169,546 Prior Period Adjustment (400,075) Restatement of Beginning Fund Balance Total Change in Fund Balance $ $ 8,306,781 $ (2,555,002) $ (4,103,110) $ (230,529) Debt Service As A Percentage Of Noncapital Expenditures 4.402% 4.266% 5.861% 3.253% **Principal and Interest breakdown not available for

95 TABLE L $ 5,456,078 $ 6,228,718 $ 6,165,713 $ 5,980,789 $ 5,236,714 $ 5,102,141 12,144,497 12,330,619 14,032,778 14,536,663 14,759,397 14,600,373 4,259,061 4,048,573 3,938,851 3,922,102 4,867,023 6,474,774 21,859,636 22,607,910 24,137,342 24,439,554 24,863,134 26,177,288 $ 11,139,729 $ 10,990,528 $ 11,868,705 $ 12,279,050 $ 13,997,784 $ 12,712, , , , , , ,759 72,733 86,078 74,025 63, , , , , , , , , ,254 1,122,435 1,179,044 1,251,917 1,178,350 1,093, , , , , , ,112 9,724 7,932 6,084 27,362 24,432 26, , , , , , , , , , , , ,934 1,381,632 1,414,962 1,404,647 1,484,908 1,551,615 1,759, , , , , , , , ,925 1,031, , ,671 1,042,224 2,161,958 2,127,193 2,228,294 2,265,601 2,290,145 2,313,614 52, , , , , , , , , , , , , , ,894 74,110 54,937 38, , , , , , , , , , , , ,708-25, , , ,384 25,806 33,536 34, , , ,451 21,124,186 21,546,459 22,389,411 24,110,945 25,766,278 25,046, ,450 1,061,451 1,747, ,609 (903,144) 1,130,444-7,196, ,000 5, ,000 5, (32,000) (5,900) - (5,000) - (7,196,267) (113,218) (113,218) ,000 - $ 735,450 $ 948,233 $ 1,747,931 $ 328,609 $ (428,144) $ 1,130,444 1, (3,511) (36,233) (194,935) (603,878) $ 133,286 $ 948,233 $ 1,747,931 $ 325,098 $ (464,377) $ 935, % 3.451% 3.145% 2.764% 2.541% 2.619% 78

96 REVENUE CAPACITY

97 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Less Total Taxable Total Year Ended Real Personal Tax Exempt Assessed Direct August 31 Property Property Property Value Tax Rate ,209,671 77,657, ,933, ,933, ,506,108 76,971, ,078, ,399, ,907,979 83,176, ,526, ,557, ,071, ,352, ,435, ,988, ,095, ,801, ,667, ,229, ,390, ,880, ,010, ,260, ,105,715, ,841, ,365, ,192, ,411,507, ,266,918 1,206,913, ,861, ,422,557, ,780,442 1,207,586, ,751, ,444,600, ,473,503 1,226,835, ,238, Source: Dimmit Central Appraisal District, District Records 79

98 TABLE L-6 Estimated Taxable Assessed Actual Value as a Taxable Percentage of Value Actual Taxable Value 350,655, % 344,237, % 368,020, % 415,782, % 491,613, % 591,921, % 687,523, % 514,428, % 508,091, % 545,812, % 80

99 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS TABLE L-7 District Direct Rates Overlapping Rates (Total Tax Rate) Wintergarden Year City of Groundwater Ended Tax General Capital City of City of Carrizo Dimmit Conservation August 31 Year Purposes Purposes Total Asherton Big Wells Springs County District Source: Dimmit Central Appraisal District, District Records 81

100 TABLE L-8 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO Fiscal Year Ending 2010 Fiscal Year Ending 2001 Percentage Percentage of Total of Total Taxable Taxable Taxable Taxable Taxpayer Value Rank Value Value Rank Value Anadarko E&P Company LP $ 33,742, % Texas American Resources Co. 13,149, % AEL Texas Central Co. 13,149, % $ 8,452, % Briscoe Ranch Inc (10640) 10,119, % 7,309, % CML Exploration LLC 6,873, % Briscoe Ranch Inc (50160) 6,868, % DHL Well Service Inc. 6,684, % Harrison Interests LTD 6,540, % 4,567, % Southwestern Bell Telephone LP 5,679, % 9,564, % Helmerich & Payne 5,670, % Kerr-McGee Oil & Gas Onshore LP 4,943, % Flying G Ranch 3,343, % Prime Operating Co 2,638, % Carmody Jack 2,356, % Merit Energy Company 2,312, % Whittier Operating Inc 2,034, % Subtotal $ 108,478, % $ 47,522, % All other taxpayers 332,760, % 174,410, % Total Net Assessed Valuation $ 441,238, % $ 221,933, % Source: Dimmit Central Appraisal District, District Records 82

101 TABLE L-9 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Taxes Levied Collected Within the Fiscal Year of the Levy Collections Total Collections to Date Year Ended for the Percentage In Subsequent Percentage August 31 Fiscal Year Amount of Levy Years Amount of Levy ,332,257 2,941, % 218,975 $ 3,160, % ,496,837 3,129, % 173,079 $ 3,302, % ,628,452 3,068, % 212,162 $ 3,280, % ,607,815 3,175, % 214,703 $ 3,390, % ,150,336 4,004, % 271,510 $ 4,275, % * ,003,070 4,680, % 255,093 $ 4,935, % ,919,002 5,284, % 322,292 $ 5,606, % ,439,569 5,103, % 132,522 $ 5,235, % ,164,207 4,717, % 135,734 $ 4,853, % ,105,350 4,591, % - 4,591, % Source: Dimmit County Tax Assessor/Collector and District, District Records (Audit Exhibit J-1) *NOTE: Total collections exceed 100% for Year 2005 due to adjustments made after the original levy. 83

102 DEBT CAPACITY

103 TABLE L-10 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Percentage General of Actual Year Ended Obligation Taxable Value Per Notes Capital August 31 Bonds of Property Capita Payable Leases ,570, % 852-3, ,472, % ,870, % ,685, % , ,500, % , ,229, % , ,964, % , ,734, % , , ,499, % *** 448, ,254, % *** 358,594 - Source: Dimmit Central Appraisal District, District Records ***Data not available 84

104 TABLE L-11 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS General Bonded Debt Outstanding Percentage General of Actual Year Ended Obligation Taxable Value Per August 31 Bonds Total of Property Capita ,570,021 8,570, % ,472,056 8,472, % ,870,000 7,870, % ,685,000 7,685, % ,500,000 7,500, % ,229,998 7,229, % ,964,998 6,964, % ,734,998 6,734, % ,499,998 6,499, % *** ,254,998 6,254, % *** Source: Dimmit Central Appraisal District, District Records ***Data not available 85

105 TABLE L-12 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Estimated Share of Estimated Direct and Debt Percentage Overlapping Governmental Unit Outstanding* As of Applicable** Debt City of Asherton $ 143,400 6/30/ % $ 4,563 City of Big Wells 62,384 9/30/ % 999 City of Carrizo Springs 3,275,000 6/30/ % 783,650 Dimmit County 4,792,000 9/30/ % 5,701,349 Wintergarden Groundwater Conservation District - 9/30/ % - Direct Debt 6,490,561 Carrizo Springs Consolidated Independent School District 8/31/10 6,254,998 Total Direct and Overlapping Debt $ 12,745,559 *Sources: Individual taxing body, district records. ** CSCISD Total taxable valuation / Total taxable valuation of taxing body. 86

106 TABLE L-13 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS Fiscal Year Debt Limit Total Net Debt Applicable to Limit Legal Debt margin Total Net Debt Applicable to the Limit As a Percentage of Debt Limit ,535,348 8,487,763 7,047, % ,357,939 8,436,860 6,921, % ,418,995 7,823,344 8,595, % ,899,198 7,584,889 11,314, % ,346,071 7,451,316 14,894, % ,408,225 7,167,863 19,240, % ,673,443 6,926,931 23,746, % ,040,320 6,622,233 22,418, % ,682,584 6,414,211 22,268, % ,886,721 6,192,720 24,694, % Legal Debt Margin Calculation for the Current Fiscal Year Assessed Value $ 441,238,873 Debt Limit (7% of Assessed Value) 30,886,721 Debt Applicable to Limit: General Obligation Bonds 6,254,998 Less: Amount Set Aside for Repayment of General Obligation Debt 62,278 Total Net Debt Applicable to Limit 6,192,720 Legal Debt Margin $ 24,694,001 Source: District Audit Reports 87

107 DEMOGRAPHIC AND ECONOMIC INFORMATION

108 TABLE L-14 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN CALENDAR YEARS Per Capita Calendar Personal Personal Unemployment Year Population Income Income Rate , ,105,000 15, % , ,361,000 15, % , ,360,000 16, % , ,908,000 17, % , ,401,000 18, % , ,483,000 19, % , ,319,000 21, % , ,067,000 23, % 2009 *** *** *** 10.20% 2010 *** *** *** *** Source: Texas LMI Tracer, US Census Bureau *** Data was not available. 88

109 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT FULL-TIME EQUIVALENT EMPLOYEES LAST TEN FISCAL YEARS Fiscal Year Professional Staff Teachers Professional Support Campus Administration Central Administration Total Professional Staff Educational Aides Auxillary Staff Total Staff Student Enrollment 2,460 2,481 2,481 2,443 2,412 Student to Teacher Ratio Student to Staff Ratio Source: AEIS Reports. 89

110 TABLE L ,423 2,466 2,386 2,336 2,

111 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT OPERATING STATISTICS LAST TEN FISCAL YEARS Cost Cost Fiscal Operating Per Percentage Total Per Year Enrollment Expenditures Pupil Change Expenses Pupil ,460 16,632,321 6, % 17,923,096 7, ,481 16,913,650 6, % 18,114,175 7, ,481 17,377,552 7, % 18,414,734 7, ,443 19,178,661 7, % 21,359,810 8, ,412 19,134,364 7, % 21,740,527 9, ,423 20,100,741 8, % 21,098,382 8, ,466 20,232,629 8, % 21,512,909 8, ,386 21,344,458 8, % 22,355,175 9, ,336 18,723,040 8, % 22,123,535 9, ,394 19,045,658 7, % 23,897,513 9,982 Source: AEIS Reports *** Data not available to calculate. 91

112 TABLE L-16 Percentage of Students Receiving Pupil- Free or Percentage Teaching Teacher Reduced-Price Change Staff Ratio Meals 0.8% ** 0.2% % 1.7% % 17.8% % 3.1% % -3.4% % 0.2% % 7.4% % 1.1% % 5.4% % 92

113 TABLE L-17 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT PRINCIPAL EMPLOYERS CURRENT AND TWO YEARS AGO Fiscal Year Ending 2010 Fiscal Year Ending 2008* Percentage Percentage of Total of Total Employer Employees Rank Employment Employees Rank Employment Carrizo Springs CISD % % Sands Care Health Services, L.C % U. S. Border Patrol % % Dimmit County Memorial Hospital % % Wal Mart % % HEB % % Community Services Agency % % Carrizo Springs Nursing & Rehabilitation % % Cleo Bustamate Enterprises, Inc % Camino Agave, Inc % Urban Electric % Prime Operating % Middle Rio Grande Workforce Center % Total, Principal Employers 1, % 1, % All other employers 2, % 2, % Total employed workforce as of 8/31 3, % 3, % Source: Texas Industry Profiles, Texas LMI Tracer *Data prior to 2008 was not available. 93

114 OPERATING INFORMATION

115 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT SCHOOL BUILDING INFORMATION LAST TEN FISCAL YEARS Fiscal Year School Elementary Asherton Elementary (1976) Square Feet 24,968 24,968 24,968 24,968 24,968 Capacity Enrollment Big Wells Elementary (1973) Square Feet 29,218 29,218 29,218 29,218 29,218 Capacity Enrollment Carrizo Springs Elementary (2002) Square Feet , ,349 Capacity ,000 1,000 Enrollment Carrizo Springs Intermediate (1958) Square Feet ,648 46,648 Capacity Enrollment Carrizo Springs Junior High (1972) Square Feet 85,354 85,354 85,354 85,354 85,354 Capacity Enrollment Central Elementary (1929) Square Feet 52,188 52,188 52, Capacity Enrollment Middle Elementary (1958) Square Feet 46,648 46,648 46, Capacity Enrollment North Elementary (1950) Square Feet 44,979 44,979 44, Capacity Enrollment School Secondary Carrizo Springs High School (1982) Square Feet 138, , , , ,048 Capacity Enrollment Source: AEIS Reports, District Records 94

116 TABLE L ,968 24,968 24,968 24,968 24, ,218 29,218 29,218 29,218 29, , , , , ,349 1,000 1,000 1,000 1,000 1, ,648 46,648 46,648 46,648 48, ,354 85,354 85,354 85,354 85, , , , , ,

117 TABLE L-19 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT TEACHER BASE SALARIES LAST TEN FISCAL YEARS District District State State Fiscal Minimum Maximum Minimum Maximum Year Salary Salary Salary Salary ,240 42,800 24,240 40, ,240 42,800 24,240 40, ,896 44,895 24,240 40, ,000 46,195 24,240 40, ,000 46,195 24,240 40, ,000 47,300 24,820 41, ,500 54,000 27,320 44, ,925 54,425 27,320 44, ,925 54,425 27,320 44, ,925 54,425 27,320 44,270 Source: AEIS Reports, District Record,. Texas Education Agency 96

118 TABLE L-20 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT AVERAGE DAILY ATTENDANCE AND AVERAGE DAILY MEMBERSHIP LAST TEN YEARS Percentage Increase Ratio of (Decrease) of * ** Average Daily Average Daily Average Average Attendance to Attendance Fiscal Daily Daily Attendance Average Daily Over Year Attendance Membership Rate Membership Prior Years ,302 2, % 93.58% -3.69% ,310 2, % 93.11% 0.35% ,298 2, % 92.64% -0.51% ,248 2, % 92.02% -2.19% ,231 2, % 92.52% -0.74% ,225 2, % 91.82% -0.30% ,221 2, % 90.08% -0.15% ,142 2, % 89.77% -3.58% ,092 2, % 89.55% -2.33% ,175 2, % 90.85% 3.97% Source: AEIS Reports, District Records * Average Daily Attendance is the average daily attendance of eligible enrollees, district-wide, over the official number of instructional days. ** Average Daily Membership is the average daily enrollment of students, district-wide over the official number of instructional days. 97

119 CARRIZO SPRINGS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT NUTRITION SERVICES - FACTS AND FIGURES LAST NINE YEARS Fiscal Year Student lunches served: Full 55,838 60, ,240 59,432 61,429 Reduced 40,031 41,094 39,822 44,217 45,983 Free 261, , , , ,671 Total 357, , , , ,083 Student breakfast served: Full 37,419 26,657 62,996 32,206 32,608 Reduced 32,274 24,439 20,867 29,559 32,410 Free 260, , , , ,621 Total 330, , , , ,639 Number of serving days: Average daily participation (free): Student Lunch 1,546 1,529 1,083 1,464 1,512 Student Breakfast 1,543 1, Average daily participation (all): Student Lunch 2,113 2,101 2,016 2,037 2,112 Student Breakfast 1,956 1,448 1,107 1,250 1,350 Percentage of students on: Free 73.15% 72.77% 53.72% 71.88% 71.59% Free or Reduced Lunch 84.36% 83.82% 64.75% 83.88% 83.75% Source: CSCISD Child Nutrition Department. NOTE: Only nine years were available. 98

120 TABLE L ,624 73,924 77,109 78,504 44,827 43,077 38,429 39, , , , , , , , ,029 36,150 47,981 45,437 49,613 33,073 29,037 25,350 27, , , , , , , , , ,549 1,397 1,327 1,351 1, ,001 2,163 2,054 1,976 2,011 1,429 1,384 1,314 1, % 68.00% 67.15% 67.15% 83.22% 79.78% 78.07% 78.07% 99

121 FEDERAL AUDITS SECTION

122 BILL C. ROCHA CERTIFIED PUBLIC ACCOUNTANT Telephone: (210) Fax: (210) P.O. Box San Antonio, TX REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Trustees of Carrizo Springs Consolidated Independent School District Carrizo Springs, Texas We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Carrizo Springs Consolidated Independent School District as of and for the year ended August 31, 2010, which collectively comprise Carrizo Springs Consolidated Independent School District's basic financial statements and have issued our report thereon dated December 16, 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 Carrizo Springs Consolidated Independent School District's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Carrizo Springs Consolidated Independent School District's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of Carrizo Springs Consolidated Independent School District's internal control over financial reporting. A deficiency in internal control 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 material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. 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 internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. However, we identified certain deficiencies in internal control over financial reporting, described in the accompanying Schedule of Findings and Questioned Costs as items and that we consider to be significant deficiencies in internal control over financial reporting. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention with those charged with governance. 100

123 Compliance and Other Matters As part of obtaining reasonable assurance about whether Carrizo Springs Consolidated Independent School District's basic financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, 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 two instances of noncompliance that are required to be reported under Government Auditing Standards and which are described in the accompanying Schedule of Findings and Questioned Costs as items and We noted certain matters that we reported to management of Carrizo Springs Consolidated Independent School District in a separate letter dated December 16, Carrizo Springs Consolidated Independent School District's response to the findings identified in our audit is described in the accompanying Schedule of Findings and Questioned costs. We did not audit Carrizo Springs Consolidated Independent School District's response and, accordingly, we express no opinion on it. This report is intended solely for the information and use of management, the audit committee, the Board of Trustees, others within the organization, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Respectfully It, submitted, IA (, (?C~. V Bill C. Rocha Certified Public Accountant San Antonio, Texas December 16,

124 BILL C. ROCHA CERTIFIED PUBLIC ACCOUNTANT Telephone: (210) Fax: (210) P.O. Box San Antonio, TX REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 To the Board of Trustees of Carrizo Springs Consolidated Independent School District Carrizo Springs, Texas Compliance We have audited the compliance of the Carrizo Springs Consolidated Independent School District with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of Carrizo Springs Consolidated Independent School District major federal programs for the year ended August 31, Carrizo Springs Consolidated Independent School 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 Carrizo Springs Consolidated Independent School District's management. Our responsibility is to express an opinion on Carrizo Springs Consolidated Independent School 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. 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 Carrizo Springs Consolidated Independent School 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 Carrizo Springs Consolidated Independent School District's compliance with those requirements. In our opinion, Carrizo Springs Consolidated Independent School District, complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended August 31, Internal Control Over Compliance The management of Carrizo Springs Consolidated Independent School 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 Carrizo Springs Consolidated Independent School District's internal control over compliance with requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report 102