HUGHES SPRINGS INDEPENDENT SCHOOL DISTRICT ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED AUGUST 31, 2009_part2 pot

Management’s Discussion and Analysis Hughes Springs Independent School District For the Fiscal Year Ended August 31, 2009 -UNAUDITED- Table II Hughes Springs Independent School District CHANGES IN NET ASSETS Governmental Activities 2009 Revenues: Program Revenues: Charges for Services Operating grants and contributions General Revenues: Maintenance and operations taxes Debt service taxes State aid – formula grants Investment Earnings Miscellaneous Total Revenue Governmental Activities 2008 $340,752 1,540,519 3,272,108 -05,719,724 59,185 6,574 10,938,862 5,685,799 459,101 503,119 459,011 560,846 537,069 973,341 150,707 168,712 10,145,413 156,660 77,052 9,411,998 793,449 1,764,677 7,715,148 19,427 $8,528,024 Increase in net assets before transfers and special items Beginning net assets at 9/01 Prior Period Adjustment Ending net assets at 8/31 3,919,852 212,782 4,970,602 82,516 29,566 11,176,675 5,644,728 479,124 725,182 433,402 569,532 434,737 1,539,289 Expenses: Instruction, curriculum and media services Instructional and school leadership Student support services Child nutrition Cocurricular activities General administration Plant maintenance, security & data processing Debt services Payments to Fiscal Agent Total Expenses $240,293 1,721,064 5,950,471 This is trial version www.adultpdf.com $7,715,148 Management’s Discussion and Analysis Hughes Springs Independent School District For the Fiscal Year Ended August 31, 2009 -UNAUDITED- TABLE II CHART A – REVENUES Operating Grants and Contributions 13% Investments on earnings 1% Charges for Services 3% Maintenance and operations taxes 30% State aid - formula grants 53% Miscellaneous 0% TABLE II CHART B – EXPENSES Inst., Curr., & Media 55% Pmts to Fiscal Agents 2% Debt Service 2% Plant Maint., Security & Data 15% Gen Administration 4% Co-curricular 6% Child Nutrition 4% Student Support 7% This is trial version www.adultpdf.com 10 Leadership 5% Management’s Discussion and Analysis Hughes Springs Independent School District For the Fiscal Year Ended August 31, 2009 -UNAUDITED- The District's total revenues decreased by 2.13% The total cost of all programs and services increased by 7.79% Most of the increases were the results of higher cost in plant maintenance and construction • The District’s ADA increased from the prior year The cost of all governmental activities this year was $ 10,145,413 As shown in the Statement of Activities on page 15, the amount that our taxpayers ultimately financed for these activities through District taxes was $2,478,659 because some of the costs were paid by those who directly benefited from the programs ($340,752) or by other governments and organizations that subsidized certain programs with grants and contributions ($1,540,519) or by unrestricted grants and other revenue ($5,785,483) THE DISTRICT'S FUNDS As the District completed the year, its governmental funds (as presented in the balance sheet on page 16) reported a combined fund balance of $5,771,117, which is more than last year's total of $4,880,559 Included in this year's total change in fund balance is an increase of $876,892 in the District's General Fund 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 includes amendments and supplemental appropriations that were approved shortly after the beginning of the year and reflect the actual beginning balances (versus the amounts we estimated in August 2008) The second category involved amendments moving funds from programs that did not need all the resources originally appropriated to them to programs with resource needs The District's General Fund balance of $5,682,745 reported on pages 16 and 42 differs from the General Fund's budgetary fund balance of $4,810,361 reported in the budgetary comparison schedule on page 42 CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets At the end of 2009, the District had $22,856,662 invested in a broad range of capital assets, including facilities and equipment for instruction, transportation, athletics, administration, and maintenance There was an increase in capital assets of $369,972 over last year The increase was primarily construction in progress for new facilities, renovation of existing facilities and purchase of new buses and other vehicles The District's fiscal year 2010 has plans for major capital asset expenditures More detailed information about the District's capital assets is presented in Note IV-F to the financial statements Debt At year-end, the District had outstanding bonds of $2,970,000, which was a decrease of $90,000 This is trial version www.adultpdf.com 11 Management’s Discussion and Analysis Hughes Springs Independent School District For the Fiscal Year Ended August 31, 2009 -UNAUDITED- The District has copiers under capital leases Interest rates for the leases are 10.5% and all are 48 or 60 month leases At year-end, the District had outstanding lease payments of $49,853 ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES The District's elected and appointed officials considered many factors when setting the fiscal-year 2010 budget and tax rates These indicators were taken into account when adopting the General Fund budget for 2010 Amounts appropriated in the General Fund budget total $8.4 million, a slight decrease as the final 2009 budget of $8.7 million Property taxes (up due to an increase in assessed valuation) account for part of the increase in available revenue ADA is up which also accounts for the increase in available revenue If these estimates are realized, the District's budgetary General Fund balance is expected to remain close to the same at the close of 2010 More importantly, however, this will have been accomplished in spite of unfunded mandates CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, and 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 financial information, contact the District's business office, at Hughes Springs Independent School District, P.O Box 398, Hughes Springs, Texas This is trial version www.adultpdf.com 12 BASIC FINANCIAL STATEMENTS This is trial version www.adultpdf.com EXHIBIT A-1 HUGHES SPRINGS INDEPENDENT SCHOOL DISTRICT STATEMENT OF NET ASSETS AUGUST 31, 2009 Primary Government Data Control Governmental Activities Codes ASSETS Cash and Cash Equivalents Property Taxes Receivable (Delinquent) Allowance for Uncollectible Taxes Due from Other Governments Inventories Capital Assets: 1510 Land 1520 Buildings, Net 1530 Furniture and Equipment, Net 1110 1220 1230 1240 1300 1000 $ 100,050 4,323,808 1,121,644 Total Assets 17,885,325 LIABILITIES Accounts Payable Payroll Deductions & Withholdings Accrued Wages Payable Due to Other Governments Accrued Expenses Deferred Revenues Noncurrent Liabilities 2501 Due Within One Year 2502 Due in More Than One Year 2110 2150 2160 2180 2200 2300 2000 25,327 94,463 229,443 5,986,795 80 1,340 106,511 2,913,342 Total Liabilities 9,357,301 NET ASSETS Invested in Capital Assets, Net of Related Debt Restricted for Debt Service Restricted for Campus Activities Unrestricted Net Assets 3200 3850 3870 3900 3000 11,533,726 254,800 (15,288) 536,182 30,403 2,525,649 2,899 10,745 5,988,731 Total Net Assets $ The notes to the financial statements are an integral part of this statement 8,528,024 This is trial version www.adultpdf.com 14 EXHIBIT B-1 HUGHES SPRINGS INDEPENDENT SCHOOL DISTRICT STATEMENT OF ACTIVITIES FOR THE YEAR ENDED AUGUST 31, 2009 Net (Expense) Revenue and Changes in Net Assets Program Revenues Data Control Codes Expenses Charges for Services Operating Grants and Contributions Primary Gov Governmental Activities Primary Government: 11 12 13 23 31 32 33 34 35 36 41 51 52 53 72 73 81 93 99 GOVERNMENTAL ACTIVITIES: $ Instruction Instructional Resources and Media Services Curriculum and Instructional Staff Development School Leadership Guidance, Counseling and Evaluation Services Social Work Services Health Services Student (Pupil) Transportation Food Services Extracurricular Activities General Administration Plant Maintenance and Operations Security and Monitoring Services Data Processing Services Debt Service - Interest on Long Term Debt Debt Service - Bond Issuance Cost and Fees Facilities Acquisition and Construction Payments to Fiscal Agent/Member Districts of SSA Other Intergovernmental Charges [TP] TOTAL PRIMARY GOVERNMENT: Data Control Codes MT GC IE MI TR CN NB PA NE $ 5,187,168 $ 421,152 36,408 479,124 83,957 67,881 57,911 515,433 433,402 569,532 434,737 1,112,322 25,441 58,135 150,276 431 343,391 63,947 104,765 66,113 $ 42,174 161,737 51,767 18,961 - 1,007,633 8,074 462 17,190 3,177 11,503 3,088 45,877 340,077 57,330 11,732 33,740 637 - 10,145,413 $ 340,752 $ $ 1,540,519 (4,113,422) (413,078) (35,946) (419,760) (80,780) (56,378) (54,823) (469,556) 68,412 (460,435) (423,005) (1,059,621) (24,804) (58,135) (150,276) (431) (343,391) (63,947) (104,765) (8,264,142) General Revenues: Taxes: 3,272,108 5,719,724 59,185 6,574 Property Taxes, Levied for General Purposes Grants and Contributions not Restricted Investment Earnings Miscellaneous Local and Intermediate Revenue Total General Revenues 9,057,591 793,449 7,715,148 19,427 Change in Net Assets Net Assets Beginning Prior Period Adjustment Net Assets Ending This is trial version www.adultpdf.com The notes to the financial statements are an integral part of this statement 15 $ 8,528,024 EXHIBIT C-1 HUGHES SPRINGS INDEPENDENT SCHOOL DISTRICT BALANCE SHEET GOVERNMENTAL FUNDS AUGUST 31, 2009 Data 10 General Fund Control Codes 1110 1220 1230 1240 1260 1300 ASSETS Cash and Cash Equivalents Property Taxes - Delinquent Allowance for Uncollectible Taxes (Credit) Due from Other Governments Due from Other Funds Inventories 1000 Total Assets 2110 2150 2160 2170 2180 2200 2300 LIABILITIES AND FUND BALANCES Liabilities: Accounts Payable Payroll Deductions and Withholdings Payable Accrued Wages Payable Due to Other Funds Due to Other Governments Accrued Expenditures Deferred Revenues 2000 Total Liabilities Total Liabilities and Fund Balances 11,528,267 254,800 (15,288) 536,182 205,045 30,403 12,239,707 $ 299,702 $ 12,539,409 $ 25,327 $ 94,463 213,011 25,779 5,979,855 218,527 $ 16,432 173,807 6,940 80 14,071 25,327 94,463 229,443 199,586 5,986,795 80 232,598 211,330 6,768,292 11,921 - 18,482 2,899 48,705 10,745 30,403 2,899 48,705 10,745 Total Fund Balances 4000 63,473 $ 13,670 (820) 204,897 18,482 6,556,962 3000 11,464,794 $ 241,130 (14,468) 331,285 205,045 11,921 $ 3600 3610 $ Fund Balances: Reserved For: Investments in Inventory Retirement of Long Term Debt Food Service Other Purposes Unreserved Designated For: Construction Self Insurance Unreserved and Undesignated: Reported in the General Fund Reported in Special Revenue Funds 3410 3420 3450 3490 3510 3540 Total Governmental Funds Other Funds 2,500,000 22,791 2,500,000 22,791 3,148,033 - 7,541 3,148,033 7,541 5,682,745 $ - 88,372 5,771,117 12,239,707 $ The notes to the financial statements are an integral part of this statement 299,702 $ This is trial version www.adultpdf.com 16 12,539,409 EXHIBIT C-2 HUGHES SPRINGS INDEPENDENT SCHOOL DISTRICT RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS AUGUST 31, 2009 Total Fund Balances - Governmental Funds $ The District uses internal service funds to charge the costs of certain activities, such as - self-insurance and printing, to appropriate functions in other funds The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets The net effect of this consolidation is to increase(decrease) net assets Capital assets used in governmental activities are not financial resources and therefore 2,619,304 are not reported in governmental funds At the beginning of the year, the cost of these assets was $22,486,650 and the accumulated depreciation was $16,768,596 In addition, long-term liabilities, including bonds payable, are not due and payable in the current period, and, therefore are not reported as liabilities in the funds The net effect of including the beginning balances for capital assets (net of depreciation) and longterm debt in the governmental activities is to increase (decrease) net assets Current year capital outlays and long-term debt principal payments are expenditures in 482,267 the fund financial statements,but they should be shown as increases in capital assets and reductions in long-term debt in the government-wide financial statements The net effect of including the 2009 capital outlays and debt principal payments is to increase (decrease) net assets The 2009 depreciation expense increases accumulated depreciation The net effect of (542,524) the current year's depreciation is to decrease net assets Various other reclassifications and eliminations are necessary to convert from the 197,860 modified accrual basis of accounting to accrual basis of accounting These include recognizing deferred revenue as revenue, eliminating interfund transactions, reclassifying the proceeds of bond sales as an increase in bonds payable, and recognizing the liabilities associated with maturing long-term debt and interest The net effect of these reclassifications and recognitions is to increase (decrease) net assets 19 Net Assets of Governmental Activities $ The notes to the financial statements are an integral part of this statement This is trial version www.adultpdf.com 17 5,771,117 8,528,024 EXHIBIT C-3 HUGHES SPRINGS INDEPENDENT SCHOOL DISTRICT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS FOR THE YEAR ENDED AUGUST 31, 2009 Data 10 General Fund Control Codes 5700 5800 5900 5020 REVENUES: Total Local and Intermediate Sources State Program Revenues Federal Program Revenues $ 1100 7913 7915 8911 7080 10,942,176 809,434 10,082 40,981 433,402 50,856 3,422 31,327 - 5,173,112 421,152 36,408 479,124 83,957 67,881 57,911 544,766 433,402 409,138 408,217 988,936 25,441 58,135 90,000 145,325 - 112,295 150,276 431 - 465,862 63,947 104,765 - 63,947 104,765 8,470,327 (149,974) 857,020 163,640 - 33,398 163,640 (163,500) (130,102) 163,640 33,538 876,892 13,666 890,558 4,805,853 $ 10,085,156 33,398 (163,500) Fund Balance - September (Beginning) 1,614,829 1,006,994 Net Change in Fund Balances Fund Balance - August 31 (Ending) 3,708,300 6,162,690 1,071,186 465,862 Total Other Financing Sources (Uses) 3000 1,464,855 22,295 4,951 431 Excess (Deficiency) of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES): Capital Leases Transfers In Transfers Out (Use) 0100 207,610 $ 186,059 1,071,186 4,363,678 421,152 36,408 479,124 83,957 57,799 57,911 503,785 358,282 404,795 957,609 25,441 58,135 Total Expenditures 1200 3,500,690 $ 5,976,631 9,477,321 Total Revenues EXPENDITURES: Current: 0011 Instruction 0012 Instructional Resources and Media Services 0013 Curriculum and Instructional Staff Development 0023 School Leadership 0031 Guidance, Counseling and Evaluation Services 0032 Social Work Services 0033 Health Services 0034 Student (Pupil) Transportation 0035 Food Services 0036 Extracurricular Activities 0041 General Administration 0051 Facilities Maintenance and Operations 0052 Security and Monitoring Services 0053 Data Processing Services Debt Service: 0071 Debt Service - Principal on Long Term Debt 0072 Debt Service - Interest on Long Term Debt 0073 Debt Service - Bond Issuance Cost and Fees Capital Outlay: 0081 Facilities Acquisition and Construction Intergovernmental: 0093 Payments to Fiscal Agent/Member Districts of SSA 0099 Other Intergovernmental Charges 6030 Total Governmental Funds Other Funds 74,706 4,880,559 5,682,745 $ 88,372 $ 5,771,117 The notes to the financial statements are an integral part of this statement 18 This is trial version www.adultpdf.com EXHIBIT C-4 HUGHES SPRINGS INDEPENDENT SCHOOL DISTRICT RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED AUGUST 31, 2009 Total Net Change in Fund Balances - Governmental Funds $ 890,558 The District uses internal service funds to charge the costs of certain activities, such as self-insurance and printing, to appropriate functions in other funds The net income (loss) of internal service funds are reported with governmental activities The net effect of this consolidation is to increase (decrease) net assets - Current year capital outlays and long-term debt principal payments are expenditures in the fund financial statements, but they should be shown as increases in capital assets and reductions in long-term debt in the government-wide financial statements The net effect of removing the 2009 capital outlays and debt principal payments is to increase (decrease) net assets 482,267 Depreciation is not recognized as an expense in governmental funds since it does not require the use of current financial resources The net effect of the current year's depreciation is to decrease net assets (542,524) Various other reclassifications and eliminations are necessary to convert from the modified accrual basis of accounting to accrual basis of accounting These include recognizing deferred revenue as revenue, adjusting current year revenue to show the revenue earned from the current year's tax levy, eliminating interfund transactions, reclassifying the proceeds of bond sales, and recognizing the liabilities associated with maturing long-term debt and interest The net effect of these reclassifications and recognitions is to increase (decrease) net assets (36,852) Change in Net Assets of Governmental Activities The notes to the financial statements are an integral part of this statement This is trial version www.adultpdf.com 19 $ 793,449 ... Discussion and Analysis Hughes Springs Independent School District For the Fiscal Year Ended August 31, 2009 -UNAUDITED- The District has copiers under capital leases Interest rates for the leases are... Discussion and Analysis Hughes Springs Independent School District For the Fiscal Year Ended August 31, 2009 -UNAUDITED- The District'' s total revenues decreased by 2.13% The total cost of all programs...Management’s Discussion and Analysis Hughes Springs Independent School District For the Fiscal Year Ended August 31, 2009 -UNAUDITED- TABLE II CHART A – REVENUES Operating