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HomeMy WebLinkAbout01-10-11 BOT Agenda PacketThe Regular Meeting of the Board of Trustees will begin immediately following the conclusion of the Board of Trustees Workshop but not prior to the posted start time. Page 1 of 4 WESTLAKE ACADEMY Mission / Vision Statement Westlake Academy is a nurturing, community owned International Baccalaureate Charter School whose mission is to achieve academic excellence and to develop life-long learners who become well-balanced, responsible global citizens. BOARD OF TRUSTEES MEETING AGENDA January 10, 2010 WESTLAKE TOWN HALL 3 VILLAGE CIRCLE – 2ND COUNCIL CHAMBERS/MUNICIPAL COURT ROOM FLOOR Workshop Session 4:30 p.m. Regular Session 6:00 p.m. 1. CALL TO ORDER Workshop Session 2. REVIEW OF CONSENT AGENDA ITEMS FROM JANUARY 10, 2011, TRUSTEES REGULAR MEETING AGENDA. Page 2 of 4 To ensure sufficient, well-managed resources to support and advance the mission of Westlake Academy Strategic Plan-Desired Outcome: Financial Stewardship & Sustainability 3. PRESENTATION AND DISCUSSION OF THE FY 2009-2010 ANNUAL AUDIT REPORT FROM PATTILLO, BROWN & HILL, LLP. 4. PRESENTATION AND DISCUSSION OF THE QUARTERLY FINANCIAL “DASHBOARD” REPORT FOR THE QUARTER ENDED NOVEMBER 30, 2010. Develop inquiring, knowledgeable, caring and disciplined young people who use their unique talents to create a better and more peaceful world through intercultural understanding and respect Strategic Plan-Desired Outcome: High Student Achievement 5. PRESENTATION AND DISCUSSION MIDDLE YEARS PROGRAM EVALUATION UPDATE. 6. UPDATE AND DISCUSSION OF THE GOING FORWARD PLAN REGARDING IMPLEMENTATION OF BOARD’S PREVIOUS DIRECTION CONCERNING EXPANDED BLOCK SCHEDULING FOR GRADES 7-10 IN THE 2011-2012 SCHOOL YEAR. To ensure sufficient, well-managed resources to support and advance the mission of Westlake Academy Strategic Plan-Desired Outcome: Financial Stewardship & Sustainability 7. DISCUSSION OF BOARD OF TRUSTEE GOVERNANCE AS ILLUSTRATED IN DR. BRIAN CARPENTER’S CHARTER SCHOOL BOARD UNIVERSITY: AN INTRODUCTION TO EFFECTIVE CHARTER SCHOOL GOVERNANCE; CHAPTERS. 12-13. 8. BOARD RECAP / STAFF DIRECTION 9. EXECUTIVE SESSION The Council will conduct a closed session pursuant to Texas Government Code, annotated, Chapter 551, Subchapter D for the following: a. Section 551.071(2) – Consultation with School Attorney on a matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with this chapter: Charter amendments including the Admissions Policy 10. RECONVENE MEETING Page 3 of 4 11. ADJOURNMENT Regular Session 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. CITIZENS' PRESENTATIONS AND RECOGNITIONS: This is an opportunity for citizens to address the Board on any matter whether or not it is posted on the agenda. The Board cannot by law take action nor have any discussion or deliberations on any presentation made to the Board at this time concerning an item not listed on the agenda. Any item presented may be noticed on a future agenda for deliberation or action. 4. CONSENT AGENDA: All items listed below are considered routine by the Board of Trustees and will be enacted with one motion. There will be no separate discussion of items unless a Board member or citizen so requests, in which event the item will be removed from the general order of business and considered in its normal sequence. a. Consider approval of the minutes for the meeting held on December 6, 2010. b. Consider approval of Resolution 11-01, Approving the FY 2009-2010 annual audit report from Pattillo, Brown & Hill, LLP. c. Consider approval of Resolution 11-02, Approving an amendment to the Admissions Policy. 5. BOARD RECAP / STAFF DIRECTION 6. BOARD CALENDAR - K-3 Winter Concert January 25, 2011, 6:00 p.m. - Board Meeting February 7, 2011 Page 4 of 4 7. FUTURE AGENDA ITEMS: Any Board member may request at a workshop and / or Board meeting, under “Future Agenda Item Requests”, an agenda item for a future Board meeting. The Board member making the request will contact the CEO with the requested item and the CEO will list it on the agenda. At the meeting, the requesting Board member will explain the item, the need for Board discussion of the item, the item’s relationship to the Board’s strategic priorities, and the amount of estimated staff time necessary to prepare for Board discussion. If the requesting Board member receives a second, the CEO will place the item on the Board agenda calendar allowing for adequate time for staff preparation on the agenda item. Trustee Langdon – Discussion of a Master calendar concept. Trustee Langdon – Discussion of a Volunteer/Room Parent handbook. 8. ADJOURNMENT ANY ITEM ON THIS POSTED AGENDA COULD BE DISCUSSED IN EXECUTIVE SESSION AS LONG AS IT IS WITHIN ONE OF THE PERMITTED CATEGORIES UNDER SECTIONS 551.071 THROUGH 551.076 AND SECTION 551.087 OF THE TEXAS GOVERNMENT CODE. I certify that the above notice was posted at the Town Hall of the Town of Westlake, 3 Village Circle, on January 5, 2011, by 5:00 p.m. under the Open Meetings Act, Chapter 551 of the Texas Government Code. CERTIFICATION _____________________________________ Kelly Edwards, Town Secretary If you plan to attend this public meeting and have a disability that requires special needs, please advise the Town Secretary 48 hours in advance at 817-490-5710 and reasonable accommodations will be made to assist you. CONSENT AGENDA: All items listed below are considered routine by the Board of Trustees and will be enacted with one motion. There will be no separate discussion of items unless a Board member or citizen so requests, in which event the item will be removed from the general order of business and considered in its normal sequence. a. Consider approval of the minutes for the meeting held on December 6, 2010. b. Consider approval of Resolution 11-01, Approving the FY 2009-2010 annual audit report from Pattillo, Brown & Hill, LLP. c. Consider approval of Resolution 11-02, Approving an amendment to the Admissions Policy. Westlake Academy Item # 2 – Review of Consent Agenda Items Page 1 of 2 Memo Westlake Academy To: Honorable President and Members of the Board of Trustees From: Debbie Piper, Finance Director Subject: Meeting of January 10, 2011 Date: December 27, 2010 Wkshp Presentation and discussion of the FY 2009-2010 annual audit report from Pattillo, Brown & Hill, LLP. ITEM Regular Consider a resolution approving the FY 2009-2010 annual audit report from Pattillo, Brown & Hill, LLP. Westlake Academy is a nurturing, community owned International Baccalaureate Charter School whose mission is to achieve academic excellence and to develop life-long learners who become well-balanced, responsible citizens. WESTLAKE ACADEMY MISSION/ VISION STATEMENT Academic Achievement WESTLAKE ACADEMY VALUES PYP, MYP, DP (IB Continuum) Caring Environment Fiscal Stewardship Communication/Transparency Engaged Stakeholders Maximizing Each Child’s Potential Pattillo, Brown & Hill, CPAs have completed the Westlake Academy 2009-2010 annual financial audit report. As in prior years, we again had no “Findings”, reportable conditions nor material weaknesses to be reported to TEA. Findings are items required by TEA to be reported regarding TEA compliance, large variances in budget vs. actual balances, etc. TEA doesn’t necessarily look upon these as bad (they require an explanation of all “Findings” and review in subsequent years), but it certainly looks good for the Academy not to have any for the current year. BACKGROUND Please review the Management Discussion and Analysis document included in the audit report for statistical information and Academy achievements during the year ended August 31, 2010. Page 2 of 2 Total payment for the FY 2009-2010 annual audit was $12,500 which was incorporated into FY 2010-2011 Academy budget. FUNDING: Staff recommends approval RECOMMENDATION FY 2009-2010 annual audit report (DRAFT) ATTACHMENTS: DRAFT WESTLAKE ACADEMY (A COMPONENT UNIT OF THE TOWN OF WESTLAKE) ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED AUGUST 31, 2010 TABLE OF CONTENTS Exhibit Page Certificate of Board 1 Independent Auditor’s Report 2 - 3 Management’s Discussion and Analysis 4 - 11 Basic Financial Statements Government-wide Statements: A-1 Statement of Net Assets 12 B-1 Statement of Activities 13 - 14 Governmental Fund Financial Statements: C-1 Balance Sheet 15 - 16 C-2 Reconciliation for C-1 17 C-3 Statement of Revenues, Expenditures, and Changes in Fund Balance 18 - 19 C-4 Reconciliation for C-3 20 D-1 Statement of Fiduciary Net Assets 21 Notes to the Financial Statements 22 - 30 Required Supplementary Information E-1 Statement of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual – General Fund 31 Notes to Required Supplementary Information 32 Combining Statements Nonmajor Governmental Funds: F-1 Combining Balance Sheet 33 - 34 F-2 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 35 - 36 Internal Control Report 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 37 - 38 DRAFT 1 CERTIFICATE OF BOARD Westlake Academy Tarrant 220-810 Name of School 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 year ended August 31, 2010, at a meeting of the Board of Trustees of such school district on the 10th day of January 2011. Signature of Board Secretary Signature of Board President If the Board of Trustees disapproved of the auditors’ report, the reason(s) for disapproving it is (are): (attach list as necessary) DRAFT INDEPENDENT AUDITOR’S REPORT Board of Trustees Westlake Academy Members of the Board: We have audited the accompanying financial statements of the governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of Westlake Academy (the “Academy”) as of and for the year ended August 31, 2010, which collectively comprise the Academy’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Westlake Academy’s management. Our responsibility is to express opinions on these 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 financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall 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, the discretely presented component unit, each major fund and the aggregate remaining fund information of Westlake Academy as of August 31, 2010, and the respective changes in financial position 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 29, 2010, on our consideration of the Academy’s internal control over financial reporting and on 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 and budgetary comparison information on pages 4 through 11 and 31, are 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 the information and express no opinion on it. 2 115 SOUTH CHURCH STREET  HILLSBORO, TX 76645  (254) 582-2583  FAX: (254) 582-5731  www.pbhcpa.com AFFILIATE OFFICES: BROWNSVILLE, TX (956) 544-7778  TEMPLE, TX (254) 791-3460  WACO, TX (254) 772-4901 WHITNEY, TX (254) 694-4600 ALBUQUERQUE, NM (505) 266-5904 DRAFT 3 Our audit was conducted for the purpose of forming opinions on the basic financial statements that collectively comprise the Westlake Academy’s basic financial statements. The combining fund statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining fund financial statements 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. December 29, 2010 DRAFT 4 WESTLAKE ACADEMY (A COMPONENT UNIT OF TOWN OF WESTLAKE) MANAGEMENT’S DISCUSSION AND ANALYSIS AUGUST 31, 2010 This section of Westlake Academy’s (the “Academy”) annual financial report presents our discussion and analysis of the Academy’s financial performance during the fiscal year ended August 31, 2010. Please read it in conjunction with the Academy’s financial statements, which follow this section. FINANCIAL HIGHLIGHTS  On the government-wide financial statements, the assets of the Academy exceeded liabilities by $784,919 (Net Assets). This is an increase of $318,969 for the year ended August 31, 2010.  The Academy had $4,124,682 in expenses related to governmental activities of which $505,407 of these expenses were offset by program-specific charges for services or grants and contributions. This is a total expense increase of $397,923 over the prior year.  The General Fund reported a fund balance this year of $784,476, an increase of $279,823 from the prior year. OVERVIEW OF THE FINANCIAL STATEMENTS This annual report consists of three parts—management’s discussion and analysis (this section), the basic financial statements, and required supplementary information. The basic financial statements include two kinds of statements that present different views of the Academy:  The first two statements are government-wide financial statements that provide both long-term and short-term information about the Academy’s overall financial status.  The remaining statements are fund financial statements that focus on individual parts of the government, reporting the Academy’s operations in more detail than the government-wide statements.  The governmental funds statements tell how general government services were financed in the short term as well as what remains for future spending.  Fiduciary fund statements provide information about the financial relationships in which the District acts solely as a trustee or agent for the benefit of others, to whom the resources in question belong. Figure A-1, Required Components of the Academy’s Annual Financial Report DRAFT 5 The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the information in the financial statements. Figure A-1 shows how the required parts of this annual report are arranged and related to one another. Figure A-2 summarizes the major features of the Academy’s financial statements, including the portion of the Academy government they cover and the types of information they contain. The remainder of this overview section of management’s discussion and analysis explains the structure and contents of each of the statements. Government-wide Statements The government-wide statements report information about the Academy as a whole using accounting methods similar to those used by private-sector companies. The statement of net assets includes all of the government’s assets and liabilities. All of the current year’s revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid. The two government-wide statements report the Academy’s net assets and how they have changed. Net assets—the difference between the Academy’s assets and liabilities—is one way to measure the Academy’s financial health or position.  Over time, increases or decreases in the Academy’s net assets are an indicator of whether its financial health is improving or deteriorating, respectively. The government-wide financial statements of the Academy include the Governmental activities. Most of the Academy’s basic services are included here, such as instruction, extracurricular activities, curriculum and staff development, health services, and general administration. State funds, donations and grants finance most of these activities. Type of StatementGovernment-wideGovernmental FundsProprietary FundsFiduciary Funds Scope Entire government (except fiduciary funds) and the Academy's component units The activities of the Academy that are not proprietary or fiduciary Activities the Academy operates similar to private businesses i.e. self- insurance Instances in which the Academy is the trustee or agent for someone else's resources Required Financial Statements Statement of Net Assets, Statement of Activities Balance Sheet, Statement of Revenues, Expenditures and Fund Balances Statement of Net Assets, Statement of Revenues, Expenses and Changes in Fund Net Assets, Statement of Cash Flows Statement of Fiduciary Net Assets, Statement of Changes in Fiduciary Net Assets Accounting basis and measurement focus Accrual accounting and economic resources focus. Modified accrual accounting and current financial resources focus Accrual accounting and economic resources focus Accrual accounting and economic resources focus Types of accountability information All assets and liabilities, both financial and capital, short-term and long-term Only assets expected to be used up and liabilities that become due during the year or soon thereafter. No capital assets included. All assets and liabilities, both financial and capital, and short-term and long- term. All assets and liabilities both short-term and long- term; the Academy's funds do not currently include capital assets, although they can. Types of Inflow/outflow Information All revenues and expenses during year, regardless of when cash is received or paid. Revenue for which cash is received during or soon after the end of the year, expenditures when goods or services have been received and payment is due during the year or soon thereafter. All revenues and expenses during year, regardless of when cash is received or paid. All revenues and expenses during year, regardless of when cash is received or paid. Figure A-2 Major features of the Academy's Government-wide and Fund Financial Statements DRAFT 6 Component Unit The government-wide financial statements also present the activity of Westlake Academy Foundation, a discretely presented component unit. The Foundation was organized exclusively for charitable and educational purposes and provides funds to help support the Academy. During 2010, the Foundation contributed $459,299 to the Academy to enhance educational opportunities. Fund Financial Statements The fund financial statements provide more detailed information about the Academy’s most significant funds—not the Academy as a whole. Funds are accounting devices that the Academy uses to keep track of specific sources of funding and spending for particular purposes.  Some funds are required by State law and by bond covenants.  The Board of Trustees establishes other funds to control and manage money for particular purposes or to show that it is properly using certain taxes and grants. Below are the three types of funds. The Academy had only “Governmental Funds” and “Fiduciary Funds” for the year ended August 31, 2010.  Governmental funds—Most of the Academy’s basic services are included in governmental funds, which focus on (1) how cash and other financial assets that can readily be converted to cash flow in and out and (2) the balances left at year-end that are available for spending. Consequently, the governmental fund statements provide a detailed short-term view that helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the Academy’s programs. Because this information does not encompass the additional long-term focus of the government-wide statements, we provide additional information at the bottom of the governmental funds statement, or on the subsequent page, that explain the relationship (or differences) between them.  Fiduciary funds—Some schools are the trustee, or fiduciary, for certain funds. It is also responsible for other assets that—because of a trust arrangement—can be used only for the trust beneficiaries. These schools are responsible for ensuring that the assets reported in these funds are used for their intended purposes. All of these fiduciary activities are reported in a separate statement of fiduciary net assets and a statement of changes in fiduciary net assets. These activities are excluded from the school’s government-wide financial statements because they cannot use these assets to finance their operations.  Proprietary funds—(None at August 31, 2010). Services for which the Academy would charge customers a fee are generally reported in proprietary funds. Proprietary funds, like the government- wide statements, provide both long and short-term financial information.  Internal Service funds report activities that provide supplies and services for the Academy’s other programs and activities – such as a School’s Self Insurance Fund or Print Shop. DRAFT 7 FINANCIAL ANALYSIS OF THE ACADEMY AS A WHOLE Net assets. The Academy’s combined net assets were $1,574,222 at August 31, 2010. (See Table A-1). Table A-1 Westlake Academy’s Net Assets 20102009 20102009 20102009 Current assets 1,101,602$ 630,935$ 695,944$ 1,270,631$ 1,797,546$ 1,901,566$ Other assets - - 144,789 281,798 144,789 281,798 Total assets 1,101,602 630,935 840,733 1,552,429 1,942,335 2,183,364 Current liabilities 316,683 164,985 51,430 32,245 368,113 197,230 Total liabilities 316,683 164,985 51,430 32,245 368,113 197,230 Net assets: Restricted21,587 22,636 653,373 1,443,643 674,960 1,466,279 Unrestricted 763,332 443,314 135,930 76,541 899,262 519,855 Total net assets 784,919$ 465,950$ 789,303$ 1,520,184$ 1,574,222$ 1,986,134$ Governmental ActivitiesComponent Unit ActivitiesTotals Figure A-2 Westlake Academy Sources of Revenue for Fiscal Year 2010 Charges for Services 2% Gifts, Bequests & Miscellaneous 12%Interest 0% Operating Grants & Contributions 9% State Funding 77% DRAFT 8 Changes in net assets. The Academy’s total revenues were $4,543,651. A significant portion, 77%, of the Academy’s revenue came from state funding. (See Figure A-2). 9% of total revenues were from operating grants and contributions, 12% from gifts, bequests and miscellaneous, less than 1% from interest and 2% from charges for services. The total cost of all programs and services was $4,124,682; 63% of these costs are for instructional and instructional related costs. Table A-3 Westlake Academy’s Changes in Net Assets 20102009 20102009 20102009 Revenues Program revenues: Charges for services 102,406$ 55,475$ -$ -$ 102,406$ 55,475$ Operating grants and contributions 403,001 258,673 1,205,207 957,944 1,608,208 1,216,617 General revenues: Grants and contributions non restricted 3,484,141 2,960,590 - - 3,484,141 2,960,590 Investment earnings 908 4,617 750 10,358 1,658 14,975 Miscellaneous 553,195 478,900 - - 553,195 478,900 Total revenues 4,543,651 3,758,255 1,205,957 968,302 5,749,608 4,726,557 Expenses Instruction and instructional related2,617,582 2,219,858 - - 2,617,582 2,219,858 Instructional leadership/ school administration366,944 191,214 - - 366,944 191,214 Guidance, social work, health, transportation 216,813 222,420 - - 216,813 222,420 Food services 8,134 15,448 - - 8,134 15,448 Extracurricular activities110,308 111,738 - - 110,308 111,738 General administration 318,624 527,000 - - 318,624 527,000 Plant maintenance and security 265,969 279,485 - - 265,969 279,485 Data processing services157,923 88,720 - - 157,923 88,720 Community services 59,592 66,822 - - 59,592 66,822 Program/support services - - 1,936,838 585,473 1,936,838 585,473 Debt Service 2,793 4,054 - - 2,793 4,054 Total expenses 4,124,682 3,726,759 1,936,838 585,473 6,061,520 4,312,232 Increase in net assets 418,969 31,496 730,881)( 382,829 311,912)( 414,325 before Transfers Transfers 100,000)( 200,000)( - - 100,000)( 200,000)( Increase in net assets 318,969 168,504)( 730,881)( 382,829 411,912)( 214,325 Beginning net assets 465,950 634,454 1,520,184 1,137,355 1,986,134 1,771,809 Ending net assets 784,919$ 465,950$ 789,303$ 1,520,184$ 1,574,222$ 1,986,134$ Governmental ActivitiesComponent Unit ActivitiesTotals DRAFT 9 Table A-4 (below) presents the cost of each of the Academy’s largest functions as well as each function’s net cost (total cost less fees generated by the activities and intergovernmental aid). The net cost reflects what was funded by state revenues as well as local tax dollars.  The cost of governmental activities this year was $4,124,682.  Some of the cost was paid by those who directly benefited from the programs, $102,406.  By grants and contributions $403,001. Table A-4 Westlake Academy’s Net Cost of Selected Functions Total %Total % Change Change 2010 20092009-20102010 20092009-2010 Instruction 2,434,684$ 2,120,372$ 15%1,989,539$ 1,916,037$ 4% School leadership 269,321 179,554 50%256,238 168,556 52% Guidance, counceling and evaluation services159,850 163,575 -2%151,619 159,345 -5% General administration 318,624 527,000 -40%312,081 510,168 -39% Plant maintenance and operations 265,969 279,485 -5%265,350 279,485 -5% Data processing services157,923 88,720 78%151,186 84,483 79% Total Cost of Services Net Cost of Services FINANCIAL ANALYSIS The following analysis focuses on the net assets (Table 1) and changes in net assets (Table 2) of the Academy’s governmental activities. Net assets of the Academy’s governmental activities increased from $465,950 to $784,919. Unrestricted net assets – the part of net assets that can be used to finance day-to-day operations without constraints established by debt covenants, enabling legislation, or other legal requirements – was $21,587 and $22,636 at August 31, 2010 and 2009, respectively. This increase in governmental net assets was the net result of several factors. The primary reason for the increase in the governmental activities is an increase in unrestricted grants and contributions of $523,551 from the prior year. Operating grants and contributions also increased $144,328 to offset an increase of $397,724 in instruction and instructional related expenses. General Fund Budgetary Highlights Over the course of the year, the Academy revised its budget by increasing revenues by $38,284 and increasing expenditures by $174,867. The majority of the increase included an increase in substitutes due to maternity leave, technology support expenditures and unexpected graduation expenditures for our first graduating class. At year-end, actual expenditures were $191,999 below the amended budget which was actually $17,132 less than the original adopted budget. ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS  General Fund revenues are budgeted to increase 6% over 2009-2010 actual revenues. This $249,289 rise is primarily attributable to the increase in student population.  Increase in the Academy population by 39 students due to the Board’s decision to expand class sizes in an effort to increase State funding. DRAFT 10  Amounts available for appropriation in the General Fund budget are $4,425,054, an increase of 13% over the final 2010 expenditures of $3,900,901. The major portion of this total $524,153 increase is attributed to the following variances: o Payroll and Related - $271K  Increase is due to an anticipated increase of 3.83 positions for FY 10-11 as well as a 2% increase to our salary scale. o Direct Operating Costs (formerly changed to the Town) - $243K  In FY 2010-2011 the Academy will begin to pay the entire operating costs including maintenance and upkeep of the physical facility. For the last six years this was charged to the Town’s budget and is being transferred to the Academy. This includes contracts for grounds, janitorial, HVAC, lighting, etc. o Bus Operating Costs - $20K  Two (2) 18 to 20 passenger busses were funded by general donations by parents during the Westlake Academy Foundation’s Gallery Night function. These buses will be utilized to transport Academy students to various class field trip and athletic events. This is a new service for which operating costs for gasoline, insurance, and other operating expenses will be funded by the student usage fees and the Academy.  If the FY 2010-11 budget estimates are realized, the Academy’s General Fund’s budgetary fund balance is expected to increase by $92,119 by the close of FY 2011. ACHIEVEMENTS DURING FISCAL YEAR 2009-2010:  STAFF AND ACADEMY ACCOMPLISHMENTS: o Six faculty members are currently representing the International Baccalaureate as Workshop Leaders, Site Visitors and Consultants. o One faculty member continues to serve as an IB Diploma Assistant Examiner for HL Biology o Westlake Academy earned an Exemplary rating, the highest category recognized by the state’s accountability system. o Westlake Academy’s TAKS (Texas Assessment of Knowledge and Skill) scores are notably higher than the average state scores. o Westlake Academy received the Distinguished Budget Presentation Award from the Government Finance Officers Association. o The Academy received the Meritorious Budget Award from the Association of School Business Officials International (ASBO).  STUDENT ACCOMPLISHMENTS: o Westlake Academy’s fourth and sixth grade students participated in the SLANT 45 (Service Learning Adventures of North Texas) project. o Twelve WA graduates from the inaugural class of 2010 received the prestigious IB Diploma. In addition, these students scored above the world average. o The entire Senior class of 24 students received $3.7 million in scholarship and grant offers. All 24 were accepted into respected colleges/universities across the State, the US and in Europe. o Three WA students received the distinguished honor of AP Scholar for scoring 3 or higher on three or more AP exams. DRAFT 11 o Six of the Junior class members were recognized by the National Merit Scholar Program with one semi- finalist and five commended students. o Another Westlake Academy student was selected by Governor Perry as the First Lady’s Rising Star for the 27th Annual Governor’s Volunteer Awards for 2010 o Westlake Academy’s student newspaper, The Black Cow received fifty six (56) awards from the Interscholastic League Press Conference. o The student staff of the Academy newspaper, The Black Cow received 5 awards from Columbia Scholastic Press Association.  ATHLETIC AWARDS AND RECOGNITION: o Westlake Academy’s high school soccer team was a State Qualifier. o The Academy’s high school boys & girls cross country team won the 2010 State Championship. o The high school boy’s basketball team was a State Qualifier. o Westlake Academy’s high school junior varsity boy’s basketball team was a State Qualifier. o The Academy’s high school girl’s basketball team won the 2010 State Championship. o A Westlake Academy high school student was an individual tennis 2010 State Champion. o Westlake Academy’s high school golf team was a Regional Champion and a State Qualifier. o The Academy’s high school softball team was a State Qualifier. o The high school baseball team was a State Qualifier. CONTACTING THE ACADEMY’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the Academy’s finances and to demonstrate the Academy’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Academy/Town Finance Director, Debbie Piper, at 817-490-5712, or by writing to 3Village Circle, Suite 202, Westlake, Texas 76262. DRAFT EXHIBIT A-1WESTLAKE ACADEMY STATEMENT OF NET ASSETS AUGUST 31, 2010 1 4 Control Data Codes Governmental Activities Unit Component Primary Government Component Unit ASSETS 695,944 869,678 Cash and Cash Equivalents $$1110 - 122 Current Investments1120 - 153,965 Due from Other Governments1240 144,789 51,430 Other Receivables, net1290 - 26,407 Deferred Expenses1410 Total Assets1000 1,101,602 840,733 LIABILITIES 51,430 169,196 Accounts Payable2110 - 83,111 Accrued Wages Payable2160 - 2,376 Accrued Expenses2200 - 62,000 Deferred Revenues2300 Total Liabilities2000 316,683 51,430 NET ASSETS 653,373 21,587 Restricted for Other Purposes3890 135,930 763,332 Unrestricted Net Assets3900 Total Net Assets3000 784,919 789,303 $$ 12 The notes to the financial statements are an integral part of this statement. DRAFT WESTLAKE ACADEMY STATEMENT OF ACTIVITIES FOR THE YEAR ENDED AUGUST 31, 2010 Control Data Codes Expenses Services Charges for Contributions Grants and Operating Program Revenues 1 43 Primary Government: GOVERNMENTAL ACTIVITIES: 99,188 2,434,684 345,957 Instruction $$$11 - 87,511 4,502 Instructional Resources and Media Services12 - 95,387 2,700 Curriculum and Staff Development13 - 97,623 6,479 Instructional Leadership21 - 269,321 13,083 School Leadership23 - 159,850 8,231 Guidance, Counseling and Evaluation Services31 - 56,963 2,149 Health Services33 - 8,134 428 Food Services35 1,218 110,308 2,242 Extracurricular Activities36 - 318,624 6,543 General Administration41 - 265,969 619 Plant Maintenance and Operations51 - 157,923 6,737 Data Processing Services53 2,000 59,592 3,331 Community Services61 - 2,793 - Debt Service - Interest on Long Term Debt72 [TP] TOTAL PRIMARY GOVERNMENT:4,124,682 102,406 403,001 $$$ Component Unit: - 1,936,838 1,205,207 Nonmajor Component Unit $$$1C [TC] TOTAL COMPONENT UNIT:1,936,838 - 1,205,207 $$$ Data Control Codes General Revenues: Taxes: Grants and Contributions not RestrictedGC Investment EarningsIE Miscellaneous Local and Intermediate RevenueMI Transfers In (Out):FR Total General Revenues and TransfersTR Net Assets--Beginning Change in Net Assets Net Assets--Ending CN NB NE 13 The notes to the financial statements are an integral part of this statement. DRAFT EXHIBIT B-1 Net (Expense) Revenue and Activities Governmental Changes in Net Assets 6 9 Component Unit Primary Government Component Unit (1,989,539)$ - $ (83,009) - (92,687) - (91,144) - (256,238) - (151,619) - (54,814) - (7,706) - (106,848) - (312,081) - (265,350) - (151,186) - (54,261) - (2,793) - (3,619,275) - - (731,631) - (731,631) 3,484,141 - 908 750 553,195 - (100,000) - 3,938,244 750 318,969 465,950 784,919 $ (730,881) 1,520,184 789,303 $ 14 DRAFT WESTLAKE ACADEMY BALANCE SHEET GOVERNMENTAL FUNDS AUGUST 31, 2010 Control Data Codes General Fund Fund Hudson Grant Fund 100 10 ASSETS 57,180 812,055 - Cash and Cash Equivalents $$$1110 - 122 - Investments - Current1120 - 152,661 - Receivables from Other Governments1240 - 40,744 - Due from Other Funds1260 - 7,500 43,930 Other Receivables1290 4,820 21,587 - Deferred Expenditures1410 Total Assets1000 1,034,669 62,000 43,930 $$$ LIABILITIES AND FUND BALANCES Liabilities: - 164,706 4,490 Accounts Payable $$$2110 - 83,111 - Accrued Wages Payable2160 - - 39,440 Due to Other Funds2170 - 2,376 - Accrued Expenditures2200 62,000 - - Deferred Revenues2300 Total Liabilities2000 250,193 62,000 43,930 Fund Balances: Reserved For: - 21,587 - Prepaid Items3430 Unreserved and Undesignated: - 762,889 - Reported in the General Fund3600 - - - Reported in Special Revenue Funds3610 Total Fund Balances3000 784,476 - - Total Liabilities and Fund Balances4000 1,034,669 62,000 43,930 $$$ 15 The notes to the financial statements are an integral part of this statement. DRAFT EXHIBIT C-1 Other Funds Funds Governmental Total 443 869,678 $$ - 122 1,304 153,965 - 40,744 - 51,430 - 26,407 1,747 1,142,346 $$ - 169,196 $$ - 83,111 1,304 40,744 - 2,376 - 62,000 1,304 357,427 - 21,587 - 762,889 443 443 443 784,919 1,747 1,142,346 $$ 16 DRAFT EXHIBIT C-2WESTLAKE ACADEMY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS AUGUST 31, 2010 784,919 $Total Fund Balances - Governmental Funds (38,703)1 Long-term liabilities, including capital leases payable, are not due and payable in the Long-term liabilities, including capital leases payable, are not due and payable in the current period, and, therefore are not reported as liabilities in the funds. The net effect Long-term liabilities, including capital leases 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 long-term debt in the governmental activities is to decrease net assets. 38,703 2 Current year long-term debt principal payments are expenditures in the fund financial Current year long-term debt principal payments are expenditures in the fund financial statements,but they should be shown as reductions in long-term debt in the Current year long-term debt principal payments are expenditures in the fund financial statements,but they should be shown as reductions in long-term debt in the government-wide financial statements. The net effect of including the 2010 debt principal payment is to increase net assets. 784,919 $19 Net Assets of Governmental Activities 17 The notes to the financial statements are an integral part of this statement. DRAFT WESTLAKE ACADEMY STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS FOR THE YEAR ENDED AUGUST 31, 2010 Control Data Codes Fund General 10 Fund Hudson Grant Fund 100 REVENUES: 611,361 - 43,930 Total Local and Intermediate Sources $$$5700 3,669,363 - - State Program Revenues5800 - - - Federal Program Revenues5900 Total Revenues5020 4,280,724 - 43,930 EXPENDITURES: Current: 2,219,605 - - Instruction0011 87,511 - - Instructional Resources and Media Services0012 48,757 - 43,930 Curriculum and Instructional Staff Development0013 97,623 - - Instructional Leadership0021 269,321 - - School Leadership0023 159,850 - - Guidance, Counseling and Evaluation Services0031 56,963 - - Health Services0033 8,134 - - Food Services0035 109,533 - - Extracurricular Activities0036 318,624 - - General Administration0041 265,969 - - Facilities Maintenance and Operations0051 157,923 - - Data Processing Services0053 59,592 - - Community Services0061 Debt Service: 38,703 - - Debt Service - Principal on Long Term Debt0071 2,793 - - Debt Service - Interest on Long Term Debt0072 Total Expenditures6030 3,900,901 - 43,930 1100 Excess (Deficiency) of Revenues Over (Under) Expenditures 379,823 - - OTHER FINANCING SOURCES (USES): (100,000) - - Other (Uses)8949 Total Other Financing Sources (Uses) 7080 (100,000) - - 1200 Net Change in Fund Balances 279,823 - - 0100 Fund Balance - September 1 (Beginning)504,653 - - 3000 Fund Balance - August 31 (Ending)$784,476 $ - $ - 18 The notes to the financial statements are an integral part of this statement. DRAFT EXHIBIT C-3 Other Funds Funds Governmental Total 656,509 1,218 $$ 3,687,706 18,343 199,436 199,436 218,997 4,543,651 2,434,684 215,079 87,511 - 95,387 2,700 97,623 - 269,321 - 159,850 - 56,963 - 8,134 - 110,308 775 318,624 - 265,969 - 157,923 - 59,592 - 38,703 - 2,793 - 218,554 4,163,385 443 380,266 (100,000) - - (100,000) 443 280,266 - 504,653 $443 $784,919 19 DRAFT EXHIBIT C-4WESTLAKE ACADEMY 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, 2010 280,266 $Total Net Change in Fund Balances - Governmental Funds 38,703 Current year long-term debt principal payments are expenditures in the fund financial Current year long-term debt principal payments are expenditures in the fund financial statements, but they should be shown as reductions in long-term debt in the government- Current year long-term debt principal payments are expenditures in the fund financial statements, but they should be shown as reductions in long-term debt in the government- wide financial statements. The net effect of removing the 2010 debt principal payment is to increase net assets. 318,969 $ Change in Net Assets of Governmental Activities 20 The notes to the financial statements are an integral part of this statement. DRAFT EXHIBIT D-1WESTLAKE ACADEMY STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS AUGUST 31, 2010 Agency Fund ASSETS 36,508 Cash and Cash Equivalents $ Total Assets 36,508 $ LIABILITIES 36,508 Due to Student Groups $ Total Liabilities 36,508 $ 21 The notes to the financial statements are an integral part of this statement. DRAFT 22 WESTLAKE ACADEMY (A COMPONENT UNIT OF THE TOWN OF WESTLAKE) NOTES TO THE FINANCIAL STATEMENTS AUGUST 31, 2010 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity Westlake Academy (the “Academy”), a blended component unit of the Town of Westlake (the “Town”), is a Texas nonprofit Corporation under Chapter 12, Subchapter D of the Education Code to provide education. The Board of Trustees (the “Board”) consists of five trustees and is appointed by the Town’s governing body. Currently, all members of the Board are members of the Town’s governing body. The Academy prepares its basic financial statements in conformity with generally accepted accounting principles promulgated by the Governmental Accounting Standards Board (the “GASB”) and other authoritative sources identified in Statement on Auditing Standards No. 69 of the American Institute of Certified Public Accountants; and it complies with the requirements of the appropriate version of Texas Education Agency’s Financial Accountability System Resource Guide (the “Resource Guide”) and the requirements of contracts and grants of agencies from which it receives funds. The Board is appointed by the governing Council of the Town and it has the authority to make decisions, appoint administrators and managers, and significantly influence operations. It also has the primary accountability for fiscal matters. Therefore, the Academy is a financial reporting entity as defined by the GASB in its Statement No. 14, “The Financial Reporting Entity.” The Academy’s basic financial statements include a separate governmental entity that is controlled by or dependent on the Academy. The determination to include separate governmental entities is based on the criteria of GASB Statement No. 14, “The Financial Reporting Entity” as amended by GASB Statement No. 39, “Determining Whether Certain Organizations Are Component Units.” GASB defines the reporting entity as the primary government and those component units for which the primary government is financially accountable. To be financially accountable, a voting majority of the component unit’s ruling body must be appointed by the primary government, and either (a) the primary government must be able to impose its will, or (b) the primary government may potentially benefit financially or be financially responsible for the component unit. The Westlake Academy Foundation (the “Foundation”) is a 501(c)3 nonprofit organization which was established exclusively for the purposes of supporting the Academy. This includes fundraising for and contributing raised funds to the Academy. The Foundation has been discretely presented in the accompanying financial statements and reported in a separate column to emphasize that it is legally separate from the Academy. See Note II F for additional information relating to the Foundation. Separate audited financial statements of the Foundation are available from the Academy/Town Finance Director’s office, #3 Village Circle, Suite 202, Westlake, Texas 76262. B. Government-wide and Fund Financial Statements The Statement of Net Assets and the Statement of Activities are government-wide financial statements. They report information on all of the Academy’s nonfiduciary activities with most of the interfund activities removed. Governmental activities include programs supported primarily by state and federal grants, the Foundation, and the Town. The Academy has no business-type activities that rely to a significant extent, on fees and charges for support. (continued) DRAFT 23 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Government-wide and Fund Financial Statements (Continued) Neither fiduciary funds nor component units that are fiduciary in nature are included. The Statement of Activities demonstrates how other people or entities that participate in programs the Academy operates have shared in the payment of the direct costs. Direct expenses are those that are clearly identifiable with a specific function or segment. The “charges for services” column includes payments made by parties that purchase, use, or directly benefit from goods or services provided by a given function or segment of the Academy. The primary example is school lunch charges. The “grants and contributions” column includes amounts paid by organizations outside the Academy to help meet the operational or capital requirements of a given function. Examples include grants under the Elementary and Secondary Education Act. If revenue is not program revenue, it is general revenue used to support all of the Academy’s functions. Interfund activities between governmental funds appear as due to/due from on the Governmental Fund Balance Sheet and as other resources and other uses on the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balance. All interfund transactions between governmental funds are eliminated on the government-wide statements. Interfund activities between governmental funds and fiduciary funds remain as due to/due from on the government-wide Statement of Activities. The fund financial statements provide reports on the financial condition and results of operations for three fund categories – governmental, proprietary, and fiduciary. Since the resources in the fiduciary funds cannot be used for Academy operations, they are not included in the government-wide statements. The Academy considers some governmental funds major and reports their financial condition and results of operations in a separate column. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenue is recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. With this measurement focus, only current assets, current liabilities and fund balances are included on the balance sheet. Operating statements of these funds present net increases and decreases in current assets (i.e. revenues and other financing sources and expenditures and other financing uses). The modified accrual basis of accounting recognizes revenues in the accounting period in which they become both measurable and available and it recognizes expenditures in the accounting period in which the fund liability is incurred, if measurable. The expenditures related to certain compensated absences and claims and judgments are recognized when the obligations are expected to be liquidated with expendable available financial resources. The Academy considers all revenues available if they are collectible within 60 days after year-end. 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. Accordingly, when such funds are received, they are recorded as deferred revenues until related and authorized expenditures have been made. If balances have not been expended by the end of the project period, grantors sometimes require the Academy to refund all or part of the unused amount. (continued) DRAFT 24 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) The proprietary fund types and fiduciary funds are accounted for on a flow of economic resources measurement focus and utilize the accrual basis of accounting. This basis of accounting recognizes revenues in the accounting period in which they are earned and become measurable and expenses in the accounting period in which they are incurred and become measurable. The Academy applies all GASB pronouncements as well as the Financial Accounting Standards Board pronouncements issued on or before November 30, 1989, unless these pronouncements conflict or contradict GASB pronouncements. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the fund Statement of Net Assets. The fund equity is segregated into restricted net assets, and unrestricted net assets. The Academy reports the following major governmental fund: The General Fund is the Academy’s primary operating fund. It accounts for all financial resources except those required to be accounted for in another fund. Additionally, the Academy reports the following fund types: The Special Revenue Funds account for resources restricted to, or designated for, specific purposes by the Academy or a grantor in a Special Revenue Fund. Most federal and some state financial assistance is accounted for in a Special Revenue Fund and sometimes unused balances must be returned to the grantor at the close of specified project period. Agency Funds account for resources held for others in a custodial capacity. Fiduciary funds are reported in the fiduciary fund financial statements. However, because these assets are not available to support Academy programs, these funds are not included in the government-wide statements. The Academy’s Agency Fund is a Student Activity Fund. D. Other Accounting Policies 1. For purposes of the statement of cash flows for proprietary and similar fund types, the Academy considers highly liquid investments to be cash equivalents if they have a maturity of three months or less when purchased. 2. It is the Academy’s policy to permit some employees to accumulate earned but unused vacation and sick pay benefits. There is no liability for unpaid accumulated sick leave since the Academy does not have a policy to pay any amounts when employees separate from service with the government. All vacation pay is accrued when incurred in the government- wide financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. 3. The Academy provides health insurance for its employees through TRS-Active-Care. The Academy meets its obligations for workers’ compensation insurance through Utica National Insurance Group. 4. In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. 5. When the Academy incurs an expense for which it may use either restricted or unrestricted assets, it uses the restricted assets first unless unrestricted assets will have to be returned because they were not used. (continued) DRAFT 25 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Other Accounting Policies (Continued) 6. The Academy is exposed to various risk of loss related to torts, theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. During fiscal year 2010, the Academy purchased commercial insurance to cover general liabilities. There were no settlements exceeding insurance coverage in the current fiscal year. 7. During the year ended August 31, 2010, employees of the Academy were covered by a health insurance plan (the “Plan”). The Academy paid premiums of $300 per month per employee working over 30 hours per week to the Plan. Employees, at their option, authorize payroll withholdings to pay premiums for dependents. All premiums were paid to a licensed insurer. The Plan was authorized by Article 3.51-2, Texas Insurance Code and was documented by contractual agreement. 8. The Data Control Codes refer to the account code structure prescribed by TEA in the Financial Accountability System Resource Guide. Texas Education Agency requires the Academy to display these codes in the financial statements filed with the Agency in order to insure accuracy in building a statewide database for policy development and funding plans. II. DETAILED NOTES ON ALL FUNDS A. Deposits and Investments The funds of the Academy must be deposited and invested under the terms of a contract, contents of which are set out in the Depository Contract Law. The depository bank places approved pledged securities for safekeeping and trust with the Academy’s agent bank in an amount sufficient to protect Academy 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’s dollar amount of Federal Deposit Insurance Corporation (“FDIC”) insurance. At August 31, 2010, the carrying amount of the Academy’s deposits (cash, certificates of deposit, and interest- bearing savings accounts included in temporary investments) was $906,186 and the bank balance was $950,219. The Public Funds Investment Act (Government Code Chapter 2256) contains specific provisions in the areas of investment practices, management reports and establishment of appropriate policies. Among other things, it requires the Academy to adopt, implement, and publicize an investment policy. That policy must address the following areas: (1) safety of principal and liquidity, (2) portfolio diversification, (3) allowable investments, (4) acceptable risk levels, (5) expected rates of return, (6) maximum allowable stated maturity of portfolio investments, (7) maximum average dollar-weighted maturity allowed based on the stated maturity date for the portfolio, (8) investment staff quality and capabilities, and (9) bid solicitation preferences for certificates of deposit. Statutes authorize the Academy to invest in (1) obligations of the U. S. Treasury, certain U. S. agencies, and the State of Texas; (2) certificates of deposit, (3) certain municipal securities, (4) money market savings accounts, (5) repurchase agreements, (6) bankers acceptances, (7) mutual funds, (8) investment pools, (9) guaranteed investment contracts, and (10) common trust funds. The Act also requires the Academy to have independent auditors perform test procedures related to investment practices as provided by the Act. The Academy is in substantial compliance with the requirements of the Act and with local policies. The carrying value of investments at August 31, 2010, was $122 (Texas Local Government Investment Pool). Local government investment pools operate in a manner consistent with the SEC’s Rule 2a7 of the Investment Company Act of 1940. Local government investment pools use amortized cost rather than market value to report net assets to compute share prices. Accordingly, the fair value of the position of these pools is the same as the value of the shares in each pool. (continued) DRAFT 26 II. DETAILED NOTES ON ALL FUNDS (Continued) A. Deposits and Investments (Continued) TexPool is organized in conformity with the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code, and the Public Funds Investment Act, Chapter 2256 of the Texas Government Code. The Texas Comptroller of Public Accounts is the sole officer, director and shareholder of the Texas Treasury Safekeeping Trust Company, which is authorized to operate TexPool. In addition, the TexPool Advisory Board advises on TexPool’s Investment Policy. This Board is composed equally of participants in TexPool and other persons who do not have a business relationship with TexPool who are qualified to advise TexPool. TexPool is subject to annual review by an independent auditor consistent with the Public Funds Investment Act. In addition, TexPool is subject to review by the State Auditor’s office and by the Internal Auditor of the Comptroller’s office. In compliance with the Public Funds Investment Act, the Academy has adopted a deposit and investment policy. That policy does address the following risks: 1. Custodial Credit Risk – Deposits: This is the risk that in the event of bank failure, the Academy’s deposits may not be returned to it. The Academy was not exposed to custodial credit risk since its deposits at year-end and during the year ended August 31, 2010, were covered by depository insurance or by pledged collateral held by the Academy’s agent bank in the Academy’s name. 2. Custodial Credit Risk – Investments: This is the risk that, in the event of the failure of the counterparty, the Academy will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. Investments are subject to custodial credit risk only if they are evidenced by securities that exist in physical or book entry form. Thus positions in external investment pools are not subject to custodial credit risk because they are not evidenced by securities that exist in physical or book entry form. 3. Other Credit Risk: There is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. To minimize credit risk, TexPool invests only in investments authorized under the Public Funds Investment Act. As of August 31, 2010, TexPool’s investments credit quality rating was AAAm (Standard & Poor’s). B. Due from Other Governments The Academy participates in a variety of federal and state programs from which it receives grants to partially or fully finance certain activities. Amounts due from federal and state governments as of August 31, 2010, are summarized below. All federal grants shown below are passed through the TEA and are reported on the financial statements as Due from Other Governments. StateFederal FundEntitlementsGrantsTotal General152,661$ -$ 152,661$ Special revenue284 1,020 1,304 Total152,945$ 1,020$ 153,965$ (continued) DRAFT 27 II. DETAILED NOTES ON ALL FUNDS (Continued) C. Revenue from Local and Intermediate Sources During the current year, revenues from local and intermediate sources as reported on Exhibit C-3 of the fund statements consisted of the following: General FundFund 100Non-major FundsTotal Gifts and bequests 509,265$ 43,930$ -$ 553,195$ Interest 908 - - 908 Campus acitvities - - 1,218 1,218 Miscellaneous 101,188 - - 101,188 Total611,361$ 43,930$ 1,218$ 656,509$ D. Donated Use of Facilities The Academy currently operates in facilities that are capital assets of the Town. The Academy is not required by the Town to pay rent for the use of those facilities. E. Debt Service Requirements – Capital Leases Date of Issue - Maturity Description & Lawful Authority Interest Rate Current Year Principal Paid Current Year Interest Paid Lease Balance End of Year 09/08 - 07/10Apple Computers7.22%38,703$ 2,793$ -$ 38,703$ 2,793$ -$ F. Component Unit Activity Major classes of assets, liabilities, net assets, revenues and expenses for the Foundation are reported below for the fiscal year ended August 31, 2010. Assets Cash and cash equivalents695,944$ Other assets, net144,789 Total assets 840,733 Liabilities 51,430 Net assets Permanently restricted250,000 Temporarily restricted403,373 Unrestricted135,930 Total net assets789,303$ Condensed Statement of Net Assets (continued) DRAFT 28 II. DETAILED NOTES ON ALL FUNDS (Continued) F. Component Unit Activity (Continued) Revenues Expenses Total Gallery night 140,637$ 26,479$ 114,158$ Blacksmith annual fund 427,195 412,769 14,426 Capital campaign 16,332 1,244,756 1,228,424)( Endowment 250,000 - 250,000 Golf tournament 278,730 49,164 229,566 Capital projects 85,430 83,586 1,844 Fund 100 - 43,930 43,930)( Miscellaneous 6,883 1,112 5,771 Interest 750 - 750 Management and general - 75,042 75,042)( Totals1,205,957$ 1,936,838$ 730,881)( Beginning net assets1,520,184 Ending net assets789,303$ Statement of Activities The Foundation contributed $459,299 to the Academy during the fiscal year ended August 31, 2010. G. Defined Benefit Pension Plan Plan Description. The Westlake Academy 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, Chapters 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 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 1-800-223-8778, or by downloading the report from the TRS Internet website, www.trs.state.tx.us, under the TRS Publications heading. (continued) DRAFT 29 II. DETAILED NOTES ON ALL FUNDS (Continued) G. Defined Benefit Pension Plan (Continued) 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 than 6.0% of the member’s 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 fiscal years 2010, 2009 and 2008, and a state contribution rate of 6.644% for fiscal year 2010, and 6.58% for fiscal years 2009 and 2008. In certain instances the reporting district is required to make all or a portion of the state’s 6.644% contribution, limited to 6.4% for the period of September through December 2009 and increased to 6.644% for the period of January through August 2010. State contributions to TRS made on behalf of the Westlake Academy’s employees for the years ended August 31, 2010, 2009 and 2008 were $185,222, $162,063, and $149,090, respectively. H. Retiree Health Plan Plan Description. The Westlake Academy 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. The statutory authority for the program is Texas Insurance Code, Chapter 1575. Section 1575.052 grants the TRS Board of Trustees the authority to establish and amend basic and optional group insurance coverage for participants. 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 www.trs.state.tx.us, by writing to the Communications Department of the Teacher Retirement System of Texas at 1000 Red River Street, Austin, Texas 78701, or by calling 1-800-223-8778. Funding Policy. Contribution requirements are not actuarially determined but are legally established each biennium by the Texas Legislature. Texas Insurance Code, Sections 1575.202, 203, and 204 establish state, active employee, and public school contributions, respectively. The State of Texas and active public school employee contribution rates were 1.0% and 0.65% of public school payroll, respectively, with school districts contributing a percentage of payroll set at 0.55% for fiscal years 2010, 2009 and 2008. 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 $25,914, $23,040, and $21,317, respectively, the active member contributions were $16,844, $14,976, and $13,856, respectively, and the school district’s contributions were $14,253, $12,672, and $11,724, respectively, which equaled the required contributions each year. I. Retiree Health Plan Medicare Part D – On-behalf Payments. The Medicare Prescription Drug, Improvement, and Modernization Act of 2003, which was effective January 1, 2006, established prescription drug coverage for Medicare beneficiaries known as Medicare Part D. One of the provisions of Medicare Part D allows for the Texas Public School Retired Employee Group Insurance Program (TRS-Care) to receive retiree drug subsidy payments from the federal government to offset certain prescription drug expenditures for eligible TRS-Care participants. These on-behalf payments of $6,112 and $7,494 were recognized for the years ended August 31, 2010 and 2009, respectively, as equal revenues and expenditures. (continued) DRAFT 30 II. DETAILED NOTES ON ALL FUNDS (Continued) J. Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. The amount of state foundation revenue a school district earns for a year can and does vary until the time when final values for each of the factors in the formula become available. Availability can be as late as midway into the next fiscal year. It is at least reasonably possible that the foundation revenue estimates as of August 31, 2010, will change. K. Litigation The Town and Academy are currently involved in a lawsuit for wrongful termination brought by the former head of school and his wife, a former teacher. The Town and Academy deny liability. The lawsuit is being handled by the Academy’s insurance carrier and no additional liability to the Academy is anticipated. DRAFT EXHIBIT E-1WESTLAKE ACADEMY STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - GENERAL FUND FOR THE YEAR ENDED AUGUST 31, 2010 Control Data Codes Original Final (GAAP BASIS) (Negative) Positive or Final Budget Variance WithActual Amounts Budgeted Amounts REVENUES: 564,919 555,464 611,361 46,442 Total Local and Intermediate Sources $$$$5700 3,646,234 3,617,405 3,669,363 23,129 State Program Revenues5800 Total Revenues5020 4,172,869 4,211,153 4,280,724 69,571 EXPENDITURES: Current: 2,404,771 2,318,077 2,219,605 185,166 Instruction0011 89,689 91,303 87,511 2,178 Instructional Resources and Media Services0012 62,239 61,655 48,757 13,482 Curriculum and Instructional Staff Development0013 94,189 92,034 97,623 (3,434)Instructional Leadership0021 253,382 210,441 269,321 (15,939)School Leadership0023 156,431 153,340 159,850 (3,419)Guidance, Counseling and Evaluation Services0031 53,562 53,813 56,963 (3,401)Health Services0033 8,716 9,018 8,134 582 Food Services0035 93,253 108,220 109,533 (16,280)Extracurricular Activities0036 303,049 272,714 318,624 (15,575)General Administration0041 300,049 300,156 265,969 34,080 Facilities Maintenance and Operations0051 167,128 140,404 157,923 9,205 Data Processing Services0053 64,946 64,858 59,592 5,354 Community Services0061 Debt Service: 38,703 38,703 38,703 - Debt Service - Principal on Long Term Debt0071 2,793 3,297 2,793 - Debt Service - Interest on Long Term Debt0072 Total Expenditures6030 3,918,033 4,092,900 3,900,901 191,999 1100 Excess (Deficiency) of Revenues Over Expenditures 254,836 118,253 379,823 261,570 OTHER FINANCING SOURCES (USES): (100,000)(100,000)(100,000) - Other (Uses)8949 Total Other Financing Sources (Uses) 7080 (100,000)(100,000)(100,000) - 1200 Net Change in Fund Balances 154,836 18,253 279,823 261,570 0100 Fund Balance - September 1 (Beginning)504,653 504,653 504,653 - 3000 Fund Balance - August 31 (Ending)$659,489 $522,906 $784,476 $261,570 31 DRAFT 32 WESTLAKE ACADEMY (A COMPONENT UNIT OF THE TOWN OF WESTLAKE) NOTES TO REQUIRED SUPPLEMENTARY INFORMATION AUGUST 31, 2010 Budgetary Information The Board adopts an “appropriated budget” on a GAAP basis for the General Fund. The Academy is required to present the adopted and final amended budgeted revenues and expenditures for this fund. The General Fund budget appears in Exhibit E-1. The following procedures are followed in establishing the budgetary data reflected in the basic financial statements: 1. Prior to August 25 of the preceding fiscal year, the Academy 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. 3. Prior to September 1, the budget is legally enacted through resolution by the Board. Once a budget is approved, it can only be amended at the object function and fund level by approval of a majority of the members of the Board. Amendments are presented to the Board at its regular meetings. Each amendment made before the fact, is reflected in the official minutes of the Board, and is not made after fiscal year-end. 4. Budgeted amounts are amended by the Board. All budget appropriations lapse at year-end. 5. For the year ending August 31, 2010, expenditures exceeded appropriations in the following functions: Instructional Leadership, School Leadership, Guidance, Counseling, and Evaluation Services, Health Services, Extracurricular Activities and General Administration. The functions that exceeded appropriations were funded by other various functions that were under budgeted. DRAFT WESTLAKE ACADEMY COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS AUGUST 31, 2010 Control Data Codes IDEA - Part B Formula Preschool IDEA - Part B Stabilization ARRA State Title XIV Formula ARRA IDEA, Pt. B 224 225 266 283 ASSETS - - - - Cash and Cash Equivalents $$$$1110 - 1,020 - - Receivables from Other Governments1240 Total Assets1000 1,020 - - - $$$$ LIABILITIES AND FUND BALANCES Liabilities: - 1,020 - - Due to Other Funds $$$$2170 Total Liabilities2000 1,020 - - - Fund Balances: Unreserved and Undesignated: - - - - Reported in Special Revenue Funds3610 Total Fund Balances3000 - - - - 4000 Total Liabilities and Fund Balances 1,020 - - - $$$$ 33 DRAFT EXHIBIT F-1 IDEA, Pt. B ARRA Incentives Placement Advanced Allotment Technology Awards Campus AP/IB Campus Activity Funds Nonmajor Governmental Funds 284 397 411 429 461 Total Preschool 443 - 443 - - - $$$$$$ - - 1,304 - - 284 - - 284 - 443 1,747 $$$$$$ - - 1,304 - - 284 $$$$$$ - - 284 - - 1,304 443 - 443 - - - - - - - 443 443 - - 284 - 443 1,747 $$$$$$ 34 DRAFT WESTLAKE ACADEMY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED AUGUST 31, 2010 Control Data Codes IDEA - Part B Formula Preschool IDEA - Part B Stabilization ARRA State Title XIV Formula ARRA IDEA, Pt. B 224 225 266 283 REVENUES: - - - - Total Local and Intermediate Sources5700 $$$$ - - 579 1,122 State Program Revenues5800 171 64,654 63,820 69,008 Federal Program Revenues5900 Total Revenues5020 64,654 171 64,399 70,130 EXPENDITURES: Current: 171 64,654 64,399 70,130 Instruction0011 - - - - Curriculum and Instructional Staff Development0013 - - - - Extracurricular Activities0036 Total Expenditures6030 64,654 171 64,399 70,130 1200 Net Change in Fund Balance - - - - 0100 Fund Balance - September 1 (Beginning) - - - - 3000 Fund Balance - August 31 (Ending)$ - $ - $ - $ - 35 DRAFT EXHIBIT F-2 IDEA, Pt. B ARRA Preschool Incentives Placement Advanced Allotment Technology Awards Campus AP/IB 284 397 411 429 Total Nonmajor Governmental Funds 461 Campus Activity Funds - - - - 1,218 1,218 $$$$$$ 2,700 67 13,507 368 18,343 - - 1,783 - - 199,436 - 1,850 2,700 13,507 368 218,997 1,218 - 1,850 13,507 368 215,079 - 2,700 - - - 2,700 - - - - - 775 775 1,850 2,700 13,507 368 218,554 775 - - - - 443 443 - - - - - - $ - $ - $ - $ - $443 $443 36 DRAFT 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 Board of Trustees Westlake Academy Members of the Board: We have audited the accompanying financial statements of the governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of Westlake Academy (the “Academy”) as of and for the year ended August 31, 2010, which collectively comprise the Academy’s basic financial statements and have issued our report thereon dated December 29, 2010. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Academy’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 the Academy’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Academy’s internal control over financial reporting. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the Academy’s ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the Academy’s financial statements that is more than inconsequential will not be prevented or detected by the Academy’s internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the Academy’s internal control. Our consideration of 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 that might be 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. 37 115 SOUTH CHURCH STREET  HILLSBORO, TX 76645  (254) 582-2583  FAX: (254) 582-5731  www.pbhcpa.com AFFILIATE OFFICES: BROWNSVILLE, TX (956) 544-7778  TEMPLE, TX (254) 791-3460  WACO, TX (254) 772-4901 WHITNEY, TX (254) 694-4600 ALBUQUERQUE, NM (505) 266-5904 DRAFT 38 Compliance and Other Matters As part of obtaining reasonable assurance about whether Westlake Academy’s 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 no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of management, the Board of Trustees, and others within the entity and is not intended to be used and should not be used by anyone other than these specified parties. December 29, 2010 DRAFT Page 1 of 2 Memo Westlake Academy To: Honorable President and Members of the Board of Trustees From: Debbie Piper, Finance Director Subject: Meeting of January 10, 2011 Date: January 4, 2011 Wkshp Discussion of the Quarterly Financial “Dashboard” report for the quarter ended November 30, 2010. ITEM Westlake Academy is a nurturing, community owned International Baccalaureate Charter School whose mission is to achieve academic excellence and to develop life-long learners who become well-balanced, responsible citizens. WESTLAKE ACADEMY MISSION/ VISION STATEMENT Academic Achievement WESTLAKE ACADEMY VALUES PYP, MYP, DP (IB Continuum) Caring Environment Fiscal Stewardship Communication/Transparency Engaged Stakeholders Maximizing Each Child’s Potential The 1 BACKGROUND st quarter “Dashboard” report for the FY 2010-2011 is attached. Our goal is to have a concise and easy to understand document regarding the financials of our Academy operating fund – General Fund. The remaining funds are grant funds related to federal, state and local funds with specific requirements as to the expenditures. They are fully funded and expensed by year-end. The columns represent: (1) Adopted Budget with (2) a 3 month YTD calculated column and (3) the “Actual YTD” as of 11/30/2010. This actual number is compared to the calculated column (2) giving you the (4) percentage variances. A summary is presented at the bottom of the page indicating the net revenues over (under) expenditures along with the projected ending fund balance for the Adopted Budget and the Actual YTD. The operating days remaining in Fund Balance have been calculated using operating expenditures. Page 2 of 2 Please note the “Analysis” is color coded and corresponds to the specific line-item on the “Dashboard” report. All “cautionary” and “critical” items are detailed with explanations of the variances. Beside each major category or function on the analysis report, you will find a number that reflects the exact variance in that function/line-item that corresponds to the percentage on the “Dashboard”. N/A FUNDING No action required. RECOMMENDATION ATTACHMENTS To be provided under separate cover: • General Fund (199) - Quarterly Financial Dashboard – Quarter Ended 11/30/2010 • General Fund (199) - Analysis of Dashboard for Quarter Ended 11/30/2010 Page 1 of 1 Memo Westlake Academy To: Honorable President and Members of the Board of Trustees From: Rod Harding Subject: Update on MYP Evaluation scheduled for March 2011 Date: 12/17/2011 Regular Presentation and discussion Middle Years Program evaluation update ITEM Westlake Academy is a nurturing, community-owned International Baccalaureate charter school whose mission is to achieve academic excellence and to develop life-long learners who become well-balanced and responsible global citizens. WESTLAKE ACADEMY MISSION/ VISION STATEMENT WESTLAKE ACADEMY VALUES X Academic Achievement X MYP X Caring Environment Fiscal Stewardship X Communication/Transparency X Engaged Stakeholders X Maximizing Each Child’s Potential BACKGROUND (including policy implications and options): In March 2011 Westlake Academy will host representatives from the International Baccalaureate Organization as part of the ongoing IB World Self-study process. This evaluation will be at the five-year stage, since the school was first authorized to operate the MYP in 2005. This process is consistent with all IB World schools that offer the MYP. The purpose of the presentation is to provide the Board of Trustees with an update of the findings of the Self-study as of December 2010. N/A FUNDING N/A RECOMMENDATION N/A ATTACHMENTS Page 1 of 2 Memo Westlake Academy To: Honorable President and Members of the Board of Trustees From: Tom Brymer, Superintendent Subject: Workshop Meeting of January 10, 2011 Date: January 5, 2011 Standing Agenda Item Related to Update and Discussion of the Going Forward Plan Regarding Implementation of Board’s Previous Direction Concerning Expanded Block Scheduling for Grades 7-10 in the 2011-2012 School Year. ITEM Westlake Academy is a nurturing, community owned International Baccalaureate Charter School whose mission is to achieve academic excellence and to develop life-long learners who become well-balanced, responsible citizens. WESTLAKE ACADEMY MISSION/ VISION STATEMENT Academic Achievement WESTLAKE ACADEMY VALUES PYP, MYP, DP (IB Continuum) Caring Environment Fiscal Stewardship Communication/Transparency Engaged Stakeholders Maximizing Each Child’s Potential BACKGROUND (including policy implications and options): Recent . This item has been placed as a standing item on the Board’s workshop should there be a need to update the Board on the status of this effort or answer further questions about it. At the Board’s December 6, 2010 workshop staff gave a status report regarding the staff team being assembled along with a defined time line to address this project and have it in place and operational for the start of the 2011-12 school year. At that meeting a Board member question was asked about the financial impact of this effort. The Academy’s five (5) year financial forecast, which is based on this enrollment projection, is included in the Board’s packet to answer this question. This forecast was also presented in June 2010 when direction was given by the Board to initiate this effort. The Board of Trustees gave direction at their June 18, 2010 budget retreat to implement an expanded block schedule for G7-10 for the 2011-12 School Year. Staff presented a follow-up report at the September 2010 Board Workshop regarding logistical issues that either have been addressed or remain to be addressed to carry out this Board direction. Staff will touch base with the Board at this workshop as to the plans, utilizing a project team, to begin implementing this Page 2 of 2 direction for the next school year. FUNDING : Addressed at June 18, 2010 budget workshop and subsequent follow-up Board discussions including WA’s five year financial forecast based upon enrollment projections that included this expanded block schedule. RECOMMENDATION : Staff has no new recommendations at this time. Staff is available to answer any questions the Board may have about this at this time. ATTACHMENTS 1.) Report previously presented to the Board at its September workshop regarding various planning issues to implement this Board direction. : 2.) Five year financial forecast for WA (based on block schedule expansion enrollment) WESTLAKE ACADEMY Expanded Block Schedule Logistical Concerns 4/30/2010 Westlake Academy Leadership Team 2 Contents Lunch ............................................................................................................................................................. 3 New Students ................................................................................................................................................ 6 New Teachers ................................................................................................................................................ 7 Course Offerings ........................................................................................................................................... 8 Lockers .......................................................................................................................................................... 8 Portable Buildings ......................................................................................................................................... 9 Appendix A: Assimilating New Students to Westlake Academy ................................................................ 10 The Blacksmith Course is offered as a semester course in the Middle Years Program for students in 7th and 8th grades.......................................................................................................................................... 11 Table 1 - Current Lunch/Daily Schedule ........................................................................................................ 3 Table 2 - Adjusted Lunch/Daily Schedule ...................................................................................................... 3 Table 3 - Faculty Recruitment 2011/2012 .................................................................................................... 7 Table 4 - New Courses ................................................................................................................................... 8 Figure 1 - Current Lunch Room configuration .............................................................................................. 4 Figure 2 - West Parking Lot ........................................................................................................................... 5 Figure 3 - Portable Building Location ............................................................................................................ 9 3 Table 1 - Current Lunch/Daily Schedule Lunch Schedule Grades Starting Time Location Kindergarten 10:45 – 11:15 am Classroom G1 – 2 10:45 – 11:15 am Cafeteria G3 – 4 11:15 – 11:45 am Cafeteria G5 – 6 11:55 – 12:25 pm Cafeteria G7 – 9 12:30 – 1:00 pm Cafeteria G10 – 11 1:15 – 1:45 pm Cafeteria G12 1:50 – 2:25 pm Classroom Secondary Daily Schedule Periods Starting Time Location Flag 8:00 – 8:15 am Gym 1 8:20 – 9:35 am Classroom 2 9:40 – 10:55 am Classroom Recess 10:55 – 11:05 am Outside 3 11:10 – 12:25 pm Classroom 4 12:30 – 2:25 pm Classroom 5 2:30 – 3:45 pm Classroom Table 2 - Adjusted Lunch/Daily Schedule Adjusted Lunch Schedule Grades Starting Time Location GK – 1 10:45 – 11:15 am Classroom G2 – 4 10:45 – 11:15 am Cafeteria G5 – 6 11:15 – 11:45 am Cafeteria G7 – 8 11:55 – 12:25 pm Cafeteria G9 – 10 12:30 – 1:00 pm Cafeteria G11 – 12 1:00 – 1:30 pm Cafeteria / Released Secondary Daily Schedule Periods Starting Time Location Flag 8:00 – 8:15 am Gym 1 8:20 – 9:35 am Classroom 2 9:40 – 10:55 am Classroom Recess 10:55 – 11:05 am Outside 3 11:10 – 12:25 pm Classroom 4 12:30 – 2:25 pm Classroom 5 2:30 – 3:45 pm Classroom Lunch Concern has been expressed about increasing the number of students eating lunch in an already crowded cafeteria, as well as the late lunch schedule. The administration made changes in the FY 10/11 school year and adjusted the lunch schedule from last year. Currently kindergarten students begin eating at 10:50 am in their classroom and secondary students start at 12:30 pm. This adjustment has the secondary students eating lunch an hour earlier. With the addition of new students in the 2011/12 school year the lunch schedule would be adjusted further to accommodate the increased usage. There are two new options currently being reviewed by staff. First, by allowing kindergarten and first grade students to be served lunch in their classrooms, we can reduce the number of students using the limited cafeteria space. This allows grades two through four to start eating lunch earlier, moving the secondary lunch time forward by approximately 30 minutes. Grades 11 – 12 will eat lunch in classrooms. Over the summer slight alterations to the lunch serving area has doubled the amount of serving lines allowing the kitchen staff to cycle twice as many students through the line in the same amount of time. In addition, staff received estimates on expanding the seating area to the west by enclosing the existing 4 covered area directly outside the cafeteria. The cost of the expansion will be presented during the October 4, 2010 Board meeting. Figure 1 - Current Lunch Room configuration 5 Parking With the recent addition of the West Parking lot, as shown in red below, there is adequate parking for all the student drivers, faculty, and staff associated with the expanded block schedule. Traffic – Staggered Release With the implementation of the expanded block schedule we can expect to see an increase of 60 – 65 cars per day during the pick-up and drop-off time frame. Drop-off times rarely develop long lines due to the staggered nature of the student’s arrival times. Thirty minutes prior to the beginning of pick-up lengthy lines begin to develop that pulls the traffic off of J T Ottinger and onto the campus. On normal days the campus is cleared of the majority of students and parents within 15 minutes of dismissal. In order to more efficiently handle the increase of traffic staff suggests implementing a staggered release of primary and secondary students. This would require contracting the primary schedule by twenty minutes, ending the day at 3:25 pm, while maintaining the current release time of 3:45 pm for secondary students. The staggered release of students will relieve the peak traffic flow and should eliminate any need for additional access points to the campus. Staff also suggests implementing an early release program for the DP students. This would allow them to leave campus following their last class of the day, at approximately 2:30 pm. This is a good tool for helping to alleviate the peak traffic, but more importantly prepares students for the college experience as desired in the recent Academy survey. In addition, the Primary access appears to be more efficient at handling the large number of vehicles. The staff suggests that the secondary students be picked up in the same area as the primary students. Parents who have students in both the primary and secondary programs would be asked to pick-up no Figure 2 - West Parking Lot 6 earlier than 3:40 pm and the secondary students would be ready for pick-up at 3:50 pm. This allows for a transition of primary student supervision from the primary staff to the secondary staff. Parents who have children in both the primary and secondary program will be able to pick-up all their children in one location. In order to make this work more efficiently during adverse weather conditions, staff suggests building a covered area over the green space used for pick-up, if it is not cost prohibitive. Staff is currently investigating the cost of building the covered area and will present this during the October 4, 2010, Board meeting. In addition, this idea is well suited for the HOC and WAF to adopt as this year’s fund-an- item project. This space could be used for multiple purposes, including outdoor classes and playground area during the summer, etc. By staggering the release of primary and secondary, we would reduce the concentration of vehicles trying to access the campus by half. This will create a safer and more efficient release of students, provide a better experience for parents, and reduce the peak load of traffic on J T Ottinger. New Students The concern regarding new students to Westlake Academy was that the increasing enrollment or student turnover would adversely affect the learning environment. First the staff analyzed the data from the Academy to determine how high student turnover is in comparison with other schools. While researching this it was discovered that the average turnover rate for a public school in Texas is 23%; 55% for an open enrollment charter school; and ranges from 20% – 30% for international schools. Westlake Academy’s turnover rate averages 26%, which is slightly higher than the state average for public and international schools, but significantly lower than the average for open enrollment charter schools. 23%26%30% 55% 0% 10% 20% 30% 40% 50% 60% Texas Public Schools Westlake Academy International Schools Texas Open Enrollment Charter Schools Average Annual Student Turnover -Leavers 7 The administration feels that the process outlined in Appendix A will help to provide a clear picture to parents and students prior to entry and the support necessary to be successful in Westlake Academy. To create a positive environment with the inclusion of new students the following communications and practice must be in place prior to the commencement of the new academic year. Pre-lottery information explaining the Mission, IB Learner Profile and expectations of the Middle Years Program (MYP). This would be achieved through the MYP brochure (and slide show presentations. This would include the rigor and scope of the program. The information program would include in the May period a transition day for each grade area where new students would have a peer mentor with the new student to experience a normal day. A peer buddy program would continue with the new student’s first week followed by an advisory and the Blacksmith program. New Teachers Due to the on-boarding of new students and increased course offerings, the secondary school will need to hire additional faculty for the upcoming academic year. Staff suggests moving to an on-going recruiting process that advertises for tentative openings in the program. There is sufficient time to recruit high quality local and international teachers. The addition of the Blacksmith class, retention of grade ten PE, and health has reduced the ability of existing staff to absorb new responsibilities tied to the block schedule expansion. These courses require a little more than one full-time faculty member. This will require either the addition of one new faculty member within two years or reduction of classes. Lastly, the implementation of the expanded block option will allow for the MYP and DP to become discrete programs. This separation will provide more flexibility in scheduling students, improved faculty utilization, better use of resources, and early release for grades 11/12. Table 3 - Faculty Recruitment 2011/2012 Faculty Recruitment Type of Hire Subject 2011/12 2012/13 New Faculty Hire Foreign Language 1 FTE New Faculty Hire MYP Math / Science 1 FTE New Faculty Hire MYP Theater .5 FTE .5 FTE New Staff Hire Humanities .5 FTE .5 FTE 8 Course Offerings With the expectation of the expanded block option, the secondary school has already implemented several new courses in MYP and DP. These courses include Blacksmith (7/8), IB Economics HL/SL (11/12), and IB Environmental Systems SL (12). In addition, MYP has re-sequenced the Fine Arts program to alternate years between Theater and Art coursework. With the implementation of the expanded block option, the secondary school will be able to offer a second language, French (7), which will grow into a full sequence over the years. Also, the Math department is planning to re-sequence the Math curriculum. This will begin with the introduction of a Pre-Calculus (10) course and will require vertical articulation from grades 6 to 10. Also, incoming DP students will be able to register for two new courses, IB Theater (11/12) and IB Physics (11/12), in the 2011/12 academic year. The DP will also be able to offer an IB Technology course in the 2012/13 academic year. Table 4 - New Courses New Courses (* availability based upon student selection) 2010/2011 2011/2012 2012/2013 MYP Blacksmith (7/8) MYP French (7) MYP French (8) MYP Theater (7) Pre-Calculus (10) *IB Technology (11) MYP Theater (9) *IB Physics (11) MYP Art 8 *IB Physics (12) MYP Art 10 *IB Theater (11) IB Economics (11) *IB Theater (12) IB Economics (12) IB Environmental Systems (12) Lockers An audit of available lockers took place and the numbers of spare lockers available. There are 20 available lockers outside the Performance Hall, 7 available in the secondary area, 36 large lockers in the Arts and Science building that can be halved. The wall facing the large Grade 12 lockers in the Arts and Science building can accommodate up to 24 new lockers. This would put the total numbers at 87. Staff suggests that new lockers be added to the Arts & Science building to accommodate the growth in the secondary student population. The cost associated with this will be presented at the October 4, 2010, Board meeting. 9 Portable Buildings Three portable buildings have been budgeted for in the FY 11/12 school year and will be placed southwest of the Arts & Science Building. The drawing below illustrates the general location but is not to scale. Figure 3 - Portable Building Location 10 Appendix A: Assimilating New Students to Westlake Academy Number of new Students 80 in grades 7-10 Process 1. Open applications from December 1-January 31, 2010 2. Lottery Process based on current waiting lists 3. March MYP curriculum meetings for potential families: 7-8, 9-10. Mission and Parent/Learner commitment introduced. Provide students with schedules for the 2011-12 SY. (11-12 schedules created prior to presentations in March) 4. All schedules completed by May 2011. 5. May period for New Student Transition Program where students work through the Westlake New Student Information Booklet (What I means to be an MYP student at Westlake Academy, arrival and departure, subjects and athletics, dining hall, orientation to campus with buddies). Individual parent/student transition meetings throughout May and June on an as needed basis. 6. New Student Orientation Day workshop to stress the importance of the Mission and IB Learner Profile. Student workshop with activities to understand the philosophy of the school. Learner Commitment introduced. Organized by MYP Principal and MYP coordinator (August). 7. MYP coordinator and/or Secondary counselor meet with “new” students within the first month of school. 8. Blacksmith training for student mentors. Set up a Blacksmith family program for incoming students. What will Blacksmith family program involve? 1. Meet and greet at “Back to School” 2. Blacksmith family will touch base with the “new” family within the two months of school. 3. The Blacksmith family will be a contact for questions about Westlake many of which are not academically related. 11 The Blacksmith Course is offered as a semester course in the Middle Years Program for students in 7th and 8th grades. The Blacksmith course is designed to address student life at Westlake Academy. At the core of this course is the learning culture of the school. The course will educate students on the Middle Years Program and serve as an authentic guide and realistic approach to the school’s mission statement. The course at the core answers the question, what does it mean to be a student in the Middle Years Program at Westlake Academy? Middle Years Program study: • How do I interpret the octagon chart? • What is the Personal Project? • What are the Areas of Interaction? • How do I balance my studies? • How is the Learner Profile addressed in the Middle Years Program? Community and Service: Students through this course will create a personal plan for community service and action as well as develop a shared goal or community project at their respective grade level. The Learner Profile: Students will participate in a variety of activities and grade level discussion designed to help students engage in embracing the learner profile in action. This area of the course will address student issues and concerns in a safe environment. Students will engage in discussions related to ethical issues such as bullying and academic dishonesty. Examples may include but are not limited to: • What is passive bullying? • What can I do if I see cheating? • What types of things do I visit the counselor or coordinator for? Student Portfolio: Each student will keep a portfolio of work. Included in this portfolio will be a resume’, samples of student work, community service documentation, (in Grade 10 a personal fitness plan), and student reflection sheets. The Areas of Interaction: Students will gain an in depth understanding of the Areas of Interaction. Objectives will be to produce and facilitate at a minimum, one student class project based on using two of the Areas of Interaction as the focus. Based on the principles that drive the areas students will also have an opportunity to create and produce one grade level assembly for the Middle Years student body. 12 Study Skills: Students will gain specific strategies and techniques to assist in preparing for examinations of any kind: • Vocabulary and word building skills. • Study Strategies i.e. the use of graphic organizers as a study tool • Note taking 1. managing presented materials 2. following guidelines 3. using notes effectively • Practice timed exams 1. How to approach a multiple choice versus essay questions 2. How to overcome anxiety 3. Preparation for final examinations • Exposure to PSAT type questions • Organization and time management 1. accessing the grade book 2. developing an organizational plan 3. study planning and goal setting FY 10-11 FY 11-12 FY 12-13 FY 13-14 FY 14-15 General Fund Beginning Fund Balance 522,937$ 615,056$ 411,401$ 340,295$ 335,160$ REVENUES: Local Revenue Westlake Foundation reimbursement for Salary 64,858 64,858 64,858 64,858 64,858 WAF, WAAC, Grants, Scrip, Other Local Rev 12,000 12,000 12,240 12,485 12,734 Blacksmith Apprentice Program (75% FY 11-12 & future) 419,230 361,883 373,748 385,613 385,613 Interest Earned 1,500 1,500 1,530 1,561 1,592 Food Services 3,000 3,000 3,060 3,121 3,184 Athletic Activities 51,953 53,512 55,117 56,771 58,474 Transportation/Parking 32,840 15,900 18,860 18,860 18,860 Total Local Revenue 585,381 512,652 529,413 543,268 545,314 State Revenue TEA Foundation funds 3,748,836 4,314,698 4,455,990 4,597,450 4,597,450 TRS On-behalf/Medicare Part B (Offset in Salary exp)195,795 199,711 203,705 207,780 211,935 TOTAL REVENUES 4,530,013 5,027,062 5,189,108 5,348,497 5,354,699 EXPENDITURES: Object Code 61XX - Salaries 3,253,614 3,593,687 3,665,560 3,738,872 3,813,649 Object Code 62XX - Professional & Contracted Services 641,745 985,604 1,005,316 1,025,423 1,045,931 Object Code 63XX - Supplies & Materials 224,298 231,027 235,647 235,647 235,647 Object Code 64XX - Other Operating Costs 305,397 314,559 320,850 320,850 320,850 Object Code 65XX - Debt Service - 93,000 20,000 20,000 - Object Code 66XX - Capital Assets 133,000 TOTAL EXPEDITURES 4,425,054 5,217,877 5,247,374 5,340,792 5,416,078 OTHER RESOURCES/USES Other Resources 7,000 7,000 7,000 7,000 7,000 Other Resources (Setting up capital lease for portables)133,000 Transfers Out (19,840) (19,840) (19,840) (19,840) (19,840) 92,118 (203,655) (71,106) (5,134) (74,218) ENDING FUND BALANCE 615,056 411,401 340,295 335,160 260,942 Assigned - Technology/FFE 100,000 100,000 100,000 100,000 100,000 Assigned - Uniform/Equipment Replacement 14,838 15,283 15,741 - - ENDING FUND BALANCE (BASED ON 75% BSA donations)500,218$ 296,118$ 224,553$ 235,160$ 160,942$ $$ Per Operating Day 12,123$ 14,296$ 14,376$ 14,632$ 14,839$ # of Operating Days (based on 365) (75% BSA donations)41 21 16 16 11 ENDING FUND BALANCE (BASED ON 75% BSA donations)500,218$ 296,118$ 224,553$ 235,160$ 160,942$ Additional 25% Blacksmith Apprentice donations 120,628 124,583 128,538 128,538 ENDING FUND BALANCE (BASED ON 100% BSA donations)500,218$ 416,745$ 349,136$ 363,698$ 289,480$ # of Operating Days (based on 365) (100% BSA donations)41 29 24 25 20 Key Assumptions: A State Funding based on current FY 09-10 funding formula for all five years B FY 11-12 and future years - Blacksmith Apprentice Program budgeted at 75% C D FY 11-12 - Added 3 portable buildings E FY 11-12 - Approximately $325K added for indirect payroll costs of services performed by Town staff F 3% increase in all other expenditures FY 11/12; 2% increase in all other expenditures FY 12/13, then held flat. G 2% increase in Salary and Professional & Contracted Services each year. H Assigned fund balance reflects the portion being held for equipment/uniform replacement as well as FF&E and technology equip. Excess Revenues Over (Under) Expenditures Fund Description FIVE YEAR FORECAST FY 11-12 - Includes four (5) new Secondary teachers and a third section in G7 - G10; G11 will grown to 3 sections in FY 12-13; G12 will grow to 3 section in FY 13-14 WESTLAKE ACADEMY -GENERAL FUND 33 BOARD RECAP / STAFF DIRECTION Westlake Academy Item #8 Board Recap / Staff Direction EXECUTIVE SESSION The Council will conduct a closed session pursuant to Texas Government Code, annotated, Chapter 551, Subchapter D for the following: a. Section 551.071(2) – Consultation with School Attorney on a matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with this chapter: Charter amendments including the Admissions Policy Westlake Academy Item # 9 – Executive Session Westlake Academy Item # 10 – Reconvene Meeting Westlake Academy Item # 11 – Workshop Adjournment Back up material has not been provided for this item. Westlake Academy Item # 2 – Pledge of Allegiance Texas Pledge: "Honor the Texas flag; I pledge allegiance to thee, Texas, one state under God, one and indivisible." CITIZENS' PRESENTATIONS AND RECOGNITIONS: This is an opportunity for citizens to address the Board on any matter whether or not it is posted on the agenda. The Board cannot by law take action nor have any discussion or deliberations on any presentation made to the Board at this time concerning an item not listed on the agenda. Any item presented may be noticed on a future agenda for deliberation or action. Westlake Academy Item # 3 – Citizens’ Presentations and recognitions CONSENT AGENDA: All items listed below are considered routine by the Board of Trustees and will be enacted with one motion. There will be no separate discussion of items unless a Board member or citizen so requests, in which event the item will be removed from the general order of business and considered in its normal sequence. a. Consider approval of the minutes for the meeting held on December 6, 2010. b. Consider approval of Resolution 11-01, Approving the FY 2009-2010 annual audit report from Pattillo, Brown & Hill, LLP. c. Consider approval of Resolution 11-02, Approving an amendment to the Admissions Policy. Westlake Academy Item # 4 - Consent Agenda Items BOT Minutes 12/06/10 Page 1 of 5 WESTLAKE ACADEMY BOARD OF TRUSTEES WORKSHOP & REGULAR MEETINGS December 6, 2010 PRESENT: President Laura Wheat and Trustees, Tim Brittan, Carol Langdon, John Miller, Rick Rennhack and Clif Cox arrived at 5:47 p.m. ABSENT: OTHERS PRESENT: School Attorney, Janet Bubert, Secretary Kelly Edwards, Municipal Court and Special Projects Director Amanda DeGan, Secondary Principal Rod Harding, Primary Principal Jamie Schmitz, Director of Parks, Recreation and Facilities Troy Meyer and Assistant to the Town Manager Ginger Awtry. Workshop Session 1. CALL TO ORDER President Wheat called the workshop meeting to order at 4:41 p.m. 2. REVIEW OF CONSENT AGENDA ITEMS FROM DECEMBER 6, 2010, TRUSTEES REGULAR MEETING AGENDA. No discussion. 3. PRESENTATION AND DISCUSSION OF THE 2010 SUMMER READING CAMP CONDUCTED BY COMMUNITY STOREHOUSE AT WESTLAKE ACADEMY. Andra Barton, PhD., provided an overview of the Summer Reading program held at the academy. She stated approximately 130 children attended this summer and they accomplished an overall 2.7% growth on the DRA II with a 92% increase on fluency rate as measured by the DRA II during this summer program. BOT Minutes 12/06/10 Page 2 of 5 Discussion ensued regarding the development of the program, accomplishments and awards, adding additional programs next year and stated they received a model agency award from Tarrant County for providing meals during this summer program. Sharon Boyd and Barbara Board both thanked the Board for the use of the academy for the program. Director Barbara Board provided an overview of the Community Storehouse and that their priority is to keep students in the classroom by working with students immediate needs. She also stated to date the Storehouse has helped 10,578 children in the Northwest and Keller Independent School Districts. 4. PRESENTATION AND DISCUSSION OF A REPORT CONCERNING THE 2010-11 BLACKSMITH CAMPAIGN AND OTHER PLANNED FUND RAISING ACTIVITIES FOR WESTLAKE ACADEMY FOUNDATION. Mrs. Kelly Cox Co-chair of the Blacksmith campaign and WA Foundation Executive Director Dr. Shelly Myers provided an overview of the 2010 campaign. The Foundation has raised $545,385 which is 27% increase over Fiscal Year 2009-2010 with only a 6% increase in the number of students. Dr. Myers provided an overview of the donation spreadsheet supplied to the Board. Currently 63% of parents have contributed and 344 students are represented by 185 donors with the average donation of $2964.00 per student. Discussion ensued regarding additional opportunities to promote the campaign in the future and how to appropriate any monies that were raised over budget, naming of facilities and the grandparent matching program. The Board acknowledged and thanked the Foundation for their efforts and accomplishments. 5. PRESENTATION AND DISCUSSION OF THE PROPOSED AFFILIATE GROUP GUIDELINES POLICY FOR WESTLAKE ACADEMY. Municipal Court and Special Projects Director DeGan and Attorney Janet Bubert provided an overview of the policy. Director DeGan stated policy will be provided to affiliate boards for input and brought back to the Board for approval at future meeting. Discussion ensued regarding the process and how to implement the policy with operational guidelines, additional language to include an appeal process, copies of each board’s 990 form, affiliates working collaboratively, and participating in the Strategic Plan process. BOT Minutes 12/06/10 Page 3 of 5 6. UPDATE AND DISCUSSION OF THE GOING FORWARD PLAN REGARDING IMPLEMENTATION OF BOARD’S PREVIOUS DIRECTION CONCERNING EXPANDED BLOCK SCHEDULING FOR GRADES 7-10 IN THE 2011-2012 SCHOOL YEAR. Municipal Court and Special Projects Director DeGan stated that Staff will be moving forward with the block scheduling process. The lottery begins in January and a project team has been established to complete the final implementation of the expanded block scheduling. Discussion ensued regarding the addition of a second language and the interest level of participation, the location of portable buildings, the uses of each portable, a teaching metrics that can be studied, an additional covered pick-up location, and adding lockers in the Arts and Sciences building. 7. DISCUSSION OF BOARD OF TRUSTEE GOVERNANCE AS ILLUSTRATED IN DR. BRIAN CARPENTER’S CHARTER SCHOOL BOARD UNIVERSITY: AN INTRODUCTION TO EFFECTIVE CHARTER SCHOOL GOVERNANCE; CHAPTERS. 10-11. The Board reviewed and discussed the questions in Chapters 10 and 11 as they relate to the academy. 8. BOARD RECAP / STAFF DIRECTION - Discuss the addition of different languages. - Include financial impact moving forward with the implementation of the block scheduling. 9. ADJOURNMENT There being no further business before the Board, President Wheat adjourned the workshop at 6:28 p.m. Regular Session 1. CALL TO ORDER President Wheat called the Regular meeting to order at 6:41 p.m. with all Trustees 2. PLEDGE OF ALLEGIANCE President Wheat led the pledge of allegiance to the United States and Texas flags. BOT Minutes 12/06/10 Page 4 of 5 3. CITIZENS' PRESENTATIONS AND RECOGNITIONS No one addressed the Board. 4. CONSENT AGENDA a. Consider approval of the minutes for the meeting held on October 4, 2010. b. Consider approval of the minutes for the meeting held on November 1, 2010. c. Consider approval of Resolution 10-22, Amending Proof of Residency Policy related to resident building permits. MOTION: Trustee Miller made a motion to approve the consent agenda. Trustee Langdon seconded the motion. The motion carried by a vote of 5-0. 5. BOARD RECAP / STAFF DIRECTION - None 6. BOARD CALENDAR - Annual Westlake Employee Awards and Christmas Dinner December 11, 2010; 5:00 – 7:30 pm, Ruth’s Chris Steakhouse, Downtown Fort Worth - Town Offices Closed December 24th, 27th and 31st - Board Meeting , 2010 January 10, 2011 - Board Meeting February 7, 2011 7. FUTURE AGENDA ITEMS - None BOT Minutes 12/06/10 Page 5 of 5 8. ADJOURNMENT There being no further business before the Board, President Wheat asked for a motion to adjourn. MOTION: Trustee Rennhack made a motion to adjourn the meeting. Trustee Cox seconded the motion. The motion carried by a vote of 5-0. President Wheat adjourned the meeting at 6:44 p.m. APPROVED BY THE BOARD OF TRUSTEES ON JANUARY 10, 2011. ____________________________ Laura Wheat, Board President ATTEST: _____________________________ Kelly Edwards, Board Secretary Page 1 of 2 Memo Westlake Academy To: Honorable President and Members of the Board of Trustees From: Debbie Piper, Finance Director Subject: Meeting of January 10, 2011 Date: December 27, 2010 Wkshp Presentation and discussion of the FY 2009-2010 annual audit report from Pattillo, Brown & Hill, LLP. ITEM Regular Consider a resolution approving the FY 2009-2010 annual audit report from Pattillo, Brown & Hill, LLP. Westlake Academy is a nurturing, community owned International Baccalaureate Charter School whose mission is to achieve academic excellence and to develop life-long learners who become well-balanced, responsible citizens. WESTLAKE ACADEMY MISSION/ VISION STATEMENT Academic Achievement WESTLAKE ACADEMY VALUES PYP, MYP, DP (IB Continuum) Caring Environment Fiscal Stewardship Communication/Transparency Engaged Stakeholders Maximizing Each Child’s Potential Pattillo, Brown & Hill, CPAs have completed the Westlake Academy 2009-2010 annual financial audit report. As in prior years, we again had no “Findings”, reportable conditions nor material weaknesses to be reported to TEA. Findings are items required by TEA to be reported regarding TEA compliance, large variances in budget vs. actual balances, etc. TEA doesn’t necessarily look upon these as bad (they require an explanation of all “Findings” and review in subsequent years), but it certainly looks good for the Academy not to have any for the current year. BACKGROUND Please review the Management Discussion and Analysis document included in the audit report for statistical information and Academy achievements during the year ended August 31, 2010. Page 2 of 2 Total payment for the FY 2009-2010 annual audit was $12,500 which was incorporated into FY 2010-2011 Academy budget. FUNDING: Staff recommends approval RECOMMENDATION Resolution ATTACHMENTS: FY 2009-2010 annual audit report (DRAFT) to be sent under separate cover Resolution 11-01 Page 1 of 2 WESTLAKE ACADEMY RESOLUTION NO. 11-01 A RESOLUTION OF THE WESTLAKE ACADEMY BOARD OF TRUSTEES APPROVING THE FISCAL YEAR 2009-2010 ANNUAL AUDIT REPORT FROM PATTILLO, BROWN & HILL, LLP. WHEREAS, Section 7.3.6 of the Data Collection & Reporting section of the Financial Accountability System Resource Guide Update 11.0 requires that the annual financial and compliance report be audited by an independent auditor, and WHEREAS, Section 7.3.6 of the Data Collection & Reporting section of the Financial Accountability System Resource Guide Update 11.0 requires the audit report be submitted to the Division of School Financial Audits of TEA no later than 150 days after the close of the fiscal year, and WHEREAS, the audit report must be approved by the Board of Trustees. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF WESTLAKE ACADEMY: SECTION 1: The above findings are hereby found to be true and correct and are incorporated herein in its entirety. SECTION 2: That the Board of Trustees of Westlake Academy hereby approves the fiscal year 2009-2010 annual audit report from Pattillo, Brown & Hill, LLP., attached as Exhibit “A”, SECTION 3 : If any portion of this resolution shall, for any reason, be declared invalid by any court of competent jurisdiction, such invalidity shall not affect the remaining provisions hereof and the Council hereby determines that it would have adopted this Resolution without the invalid provision. Resolution 11-01 Page 2 of 2 SECTION 4: That this resolution shall become effective from and after its date of passage. PASSED AND APPROVED BY THE BOARD OF TRUSTEES OF WESTLAKE ACADEMY, A CHARTER SCHOOL OF THE STATE OF TEXAS, ON THE 10th DAY OF JANUARY, 2011. _____________________________ ATTEST: Laura Wheat, President _____________________________ ______________________________ Kelly Edwards, Board Secretary Thomas E. Brymer, Superintendent APPROVED AS TO FORM: ____________________________ L. Stanton Lowry, School Attorney Page 1 of 2 Memo Westlake Academy To: Honorable President and Members of the Board of Trustees From: Tom Brymer, Superintendent Subject: Meeting of January 10, 2011 Date: January 4, 2011 Regular Consider a resolution approving an amendment to the Board of Trustees ITEM Admissions Policy 09-10 changing and removing related language to children of employees. Westlake Academy is a nurturing, community-owned International Baccalaureate charter school whose mission is to achieve academic excellence and to develop life-long learners who become well-balanced, responsible global citizens. WESTLAKE ACADEMY MISSION/ VISION STATEMENT WESTLAKE ACADEMY VALUES Academic Achievement PYP, MYP, DP (IB Continuum) Caring Environment Fiscal Stewardship Communication/Transparency Engaged Stakeholders Maximizing Each Child’s Potential BACKGROUND (including policy implications and options): Over the course of the Academy’s life, the Board of Trustees, Superintendent and staff along with the Academy’s legal counsel, have worked with the Texas Education Agency (TEA) regarding the amendment of our Charter and formulation of related Academy policies. We have been seeking guidance and approval from our legal counsel and the TEA, to make sure that TEA is aware and approves of our current policies, including our admissions policy. Throughout this continuing course of discussion with TEA, we have brought various recommended amendments to the Board for approval and submission to TEA as necessary. The most recent proposed amendment concerns the admissions language of employee children eligible for exemption from the lottery. Because of recent guidance and recommendations from TEA and our legal counsel, this proposed amendment will clarify and change the language for admission (exempted from the lottery) of children of Academy faculty to children of Academy teachers. Additionally, based on TEA guidance, the recommendation is made to remove the language regarding children of municipal employees. This would mean that in the future (it Resolution 10-22 Page 1 of 4 WESTLAKE ACADEMY RESOLUTION NO. 11-02 A RESOLUTION OF THE WESTLAKE ACADEMY BOARD OF TRUSTEES APPROVING AN AMENDMENT TO BOARD OF TRUSTEES ADMISSIONS POLICY 09-10, CHANGING AND REMOVING RELATED LANGUAGE TO CHILDREN OF EMPLOYEES. WHEREAS, the Board of Trustees desires to amend the Westlake Academy Admissions Policy No. 09-10, approved and adopted on May 4, 2009, and previously amended on August 3, 2009, by changing language in the appropriate policy section regarding children of current Westlake Academy faculty to Westlake Academy teachers and removing language in the appropriate policy section regarding children of current employees of the Town of Westlake; and WHEREAS, the Westlake Academy Board of Trustees finds that the passage of this Resolution is in the best interests of the Academy. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF WESTLAKE ACADEMY: SECTION 1: That, all matters stated in the recitals hereinabove are found to be true and correct and are incorporated herein by reference as if copied in their entirety. SECTION 2: The Board hereby adopts the amendment to the policy known as the Board of Trustees Admissions Policy 09-10 attached to this resolution as Exhibit “A”. SECTION 3: If any portion of this Resolution shall, for any reason, be declared invalid by any court of competent jurisdiction, such invalidity shall not affect the remaining provisions hereof and the Board hereby determines that it would have adopted this Resolution without the invalid provision. SECTION 4: That this resolution shall become effective from and after its date of passage. Resolution 10-22 Page 2 of 4 PASSED AND APPROVED BY THE BOARD OF TRUSTEES OF WESTLAKE ACADEMY, A CHARTER SCHOOL OF THE STATE OF TEXAS, ON THE 10h DAY OF JANUARY 2011. ___________________________________ Laura Wheat, President ATTEST: ________________________________ ___________________________________ Kelly Edwards, Board Secretary Thomas E. Brymer, Superintendent APPROVED AS TO FORM: ________________________________ L. Stanton Lowry, School Attorney Resolution 10-22 Page 3 of 4 Exhibit A TOWN OF WESTLAKE WESTLAKE ACADEMY BOARD OF TRUSTEES POLICY Policy No. 09-10: Date Board Adopted: May 4, 2009 Date Board Amended: January 10, 2011 Effective Date : January 10, 2011 Policy Category : Admissions Policy Name : Admissions Policy Policy Goal : Communication/Transparency of student and parent requirements for admission into Westlake Academy; Engagement of stakeholders and fiscal stewardship Policy Description : Applications from new students are accepted from December 1st through January 31st. Currently enrolled students receive a Notice of Intent to Return form the first week of January. This form asks students to state whether they intend to return to Westlake Academy the following school year and to identify any siblings who wish to attend Westlake Academy the following year. This form must be returned by January 31st . Currently-enrolled students expressing a desire to return are automatically enrolled for the following school year upon timely receipt of the Notice of Intent to Return form. A currently- enrolled student who originally obtained admission as the child of a Westlake Academy faculty member beginning with the 2009-2010 school year retains the right to re-enrollment only if the student’s parent continues to serve on the Westlake Academy faculty for at least three years. Vacancies in each class are then determined. If the number of eligible applicants does not exceed the number of vacancies, then all eligible applicants who timely applied will be offered admission. If there are more eligible applicants than available spaces in a class, then admission shall first be offered to eligible applicants residing within the geographic boundaries of the Town of Westlake. Admission for any remaining spaces shall be determined by lottery, except that siblings of returning students, the children of Founders, and the children of current Westlake Academy faculty teachers, and the children of current employees of the Town of Westlake are exempt from the lottery and will be given priority in admission. All eligible transfer applicants will be placed in the lottery. A name will be drawn for each vacancy that exists, and each applicant whose name is drawn will be offered admission. The remaining names will be drawn and placed on a waiting list for each grade level in the order they are drawn. If a vacancy arises, the individual on the waiting list with the lowest number assignment will be offered admission. Resolution 10-22 Page 4 of 4 Applicants are not required to provide copies of transcripts or other academic records prior to enrollment. In addition, a student will not be precluded from enrolling due to Westlake Academy Charter School’s failure to receive the information required for enrollment from the student’s parent and/or previous school. Westlake Academy Charter School does not discriminate in admissions based on gender, national origin, ethnicity, religion, disability, academic, artistic, or athletic ability or the district the child would otherwise attend. Westlake Academy will not enroll any student with documented histories of a criminal offense, juvenile court adjudication, or discipline problems under Texas Education Code Chapter 37, Subchapter A. BOARD RECAP / STAFF DIRECTION Westlake Academy Item #5 Board Recap / Staff Direction BOARD CALENDAR - K-3 Winter Concert January 25, 2011, 6:00 p.m. - Board Meeting February 7, 2011 Westlake Academy Item #6 Board Calendar FUTURE AGENDA ITEMS: Any Board member may request at a workshop and / or Board meeting, under “Future Agenda Item Requests”, an agenda item for a future Board meeting. The Board member making the request will contact the CEO with the requested item and the CEO will list it on the agenda. At the meeting, the requesting Board member will explain the item, the need for Board discussion of the item, the item’s relationship to the Board’s strategic priorities, and the amount of estimated staff time necessary to prepare for Board discussion. If the requesting Board member receives a second, the CEO will place the item on the Board agenda calendar allowing for adequate time for staff preparation on the agenda item. Trustee Langdon – Discussion of a Master calendar concept. Trustee Langdon – Discussion of a Volunteer/Room Parent handbook. Westlake Academy Item # 7 – Future Agenda Items Westlake Academy Item # 8 – Adjournment Back up material has not been provided for this item.