HomeMy WebLinkAboutFY 10-11 FINAL BUDGET DOCUMENT (UPDATED)
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TABLE OF CONTENTS
INTRODUCTORY SECTION
Administrative Officials 1
GFOA Distinguished Budget Presentation Award - FY 09-10 2
ASBO Meritorious Budget Award - FY 09-10 3
Transmittal Letter 4
Framework and Presentation 6
FINANCIAL SECTION
Financial Structure 34
Function Code – General Description 39
Account Coding Matrix 42
All Governmental Funds:
Combined Statement of Revenues, Expenditures and Changes in Fund Balance 43
Schedule of Revenues and Expenditures by Code 44
Graph:
All Fund Revenues and Expenditures – Fiscal Year 2010-1011 graph 45
General Fund:
Combined Statement of Revenues, Expenditures and Changes in Fund 46
Combining Statement of Revenues, Expenditures and Changes in Fund 47
Statement of Revenues, Expenditures and Changes in Fund Balance -
Transportation/Parking Fund - Fund 197 48
Statement of Revenues, Expenditures and Changes in Fund Balance -
Athletic Activities - Fund 198 49
Statement of Revenues, Expenditures and Changes in Fund Balance –
General Fund – Fund 199 50
Schedule of Expenditures by Function & Object Code – General Fund 199 51
Graphs:
Fiscal Year 2010-2011 Revenues and Expenditures 53
Fiscal Year 2010-2011 Expenditures (by function) 54
Fiscal Year 2010-2011 Expenditures (by object code) 55
Fiscal Year 2010-2011 Revenues and Expenditures Comparison 56
Special Revenue Funds:
Combined Statement of Revenues, Expenditures and Changes in Fund Balance 57
Combining Statement of Revenues, Expenditures and changes in Fund Balance 58
INFORMATIONAL SECTION
Organizational Chart 60
Position Summary 61
2010-2011 Salary Scale 62
2010-2011 School Calendar 63
Fiscal and Budgetary Policies 64
Investment Policies 74
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ADMINISTRATIVE OFFICIALS
FISCAL YEAR 2010/2011
Laura Wheat
BBooaarrdd PPrreessiiddeenntt
Tim Brittan, Larry Corson, Carol Langdon,
Rick Rennhack, Clif Cox
BBooaarrdd ooff TTrruusstteeeess
Thomas Brymer
SSuuppeerriinntteennddeenntt
WESTLAKE ACADEMY
1
2
3
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August 11, 2010
Board of Trustees
Westlake Academy
2600 J. T. Ottinger Road
Westlake, TX 76262
Honorable Board Members:
RE: Transmittal of Proposed FY 2010-2011 Westlake Academy Budget:
“Building Our Learning Community”
As Superintendent for Westlake Academy, I am submitting for your consideration the Proposed
Budget for FY 2010-2011. This Proposed Budget for Westlake Academy encompasses all
teaching and extra-curricular operating expenditures as well as State public school funding and
private donations used to support the daily school operations of Westlake Academy in the 2010-
11 school year.
This Proposed 2010-2011 General Fund Budget totals $4,425,054. It reflects the Board’s
discussion and direction from its June 18, 2010 budget retreat.
A comparison of the Proposed Westlake Academy General Fund 2010-2011 Budget to the 2009-
2010 Amended Budget is as follows:
Estimated Proposed $$ %%
Budget Budget Increase Increase
FY 09/10 FY 10/11 (Decrease) (Decrease)
Beginning Fund Balance $ 504,653 $ 522,908 $ 18,255 4%
Revenues 4,211,154 4,530,013 318,859 8%
Expenditures 4,092,898 4,425,054 332,156 8%
Other Resources ‐ 86,432 86,432 100%
Other Uses 100,000 99,272 (728) ‐1%
Net Revenues over (under) Expenditures $ 18,255 $ 92,119 $ 73,864 ‐405%
Ending Fund Balance $ 522,908 $ 615,027 $ 92,119 17.62%
Assigned Fund Balance 7,884 114,838 106,954 ‐
Ending Fund Balance (Unassigned) $ 515,024 $ 500,190 $ (14,835) ‐2.88%
# Days Operating (Based on 365) 46 41
Daily operating expense $ 11,213 $ 12,123
While Westlake Academy continues to operate in an economic climate that presents challenges,
it continues to grow in enrollment and perform at a high level in all areas of our student’s
education. This budget was prepared and is recommended with the intent of keeping those
factors in mind and in balance, while pursuing the Academy’s adopted strategic plan’s vision and
desired outcomes. Those are:
Westlake Academy
FY 2010-2011 Proposed Budget
TRANSMITTAL LETTER
VISION: “Westlake Academy is a nurturing, community-owned International Baccalaureate
charter school whose mission is to achieve academic excellence and to develop live-long
learners who become responsible global citizens.”
Desired Outcomes
High Student Achievement
Strong Parent & Community Connections
Financial Stewardship & Sustainability
Student Engagement-Extracurricular Activities
Effective Educators & Staff
As with last year’s budget, we continue the use of a theme to focus on the essence of what we do
as an organization when we identify and prioritize our resources as we prepare and consider a
budget. I would offer for FY 2010-2011 the theme “Building Our Learning Community”.
There is much written in educational literature about schools as “learning communities”, much of
which is centered on the faculty being a professional learning community. A learning
community is often characterized as having these attributes (SEDL):
supportive and shared leadership
collective creativity
shared values and vision
supportive conditions
shared personal practice
While there is no doubt that our faculty is a critical component in building a learning community,
I would endorse the view that one’s concept of a learning community should be broader. It must
also encompass our students, parents, elected officials, and the community in which our students
live. In FY 2010-2011 Westlake Academy has a unique opportunity to broaden this concept of a
learning community with our highly involved parent body to maximize this idea of a learning
community as we pursue the school’s continuous improvement.
On behalf of the staff of Westlake Academy, as well as the municipal staff involved in
providing staff support to the Academy, I would like to thank the Board for their leadership in
pursuing educational excellence. I would like to recognize Finance Director Debbie Piper for
her dedication, hard work, and diligent thoroughness in putting this budget together. Also, the
Academy’s Leadership Team, particularly Administrative Coordinator Ben Nibarger, is to be
commended for their involvement and input into this document.
A team is required if a school is to be successful as a learning community. And, that team
must involve and consist of all the various facets of Westlake Academy; our faculty,
administrators, parents, students, and the Board. Working as a team we can build our Westlake
Academy learning community in a way that will make our students responsible global citizens
in the twenty first century global market place in which they will live and work.
Thomas E. Brymer
Town Manager/Superintendent Westlake Academy
5
Introduction
The FY 2010-2011 Budget for Westlake Academy encompasses all teaching and extra-curricular
operating expenses as well as State public school funding and private donations used to support the
daily school operations of Westlake Academy.
A comparison of the Proposed Westlake Academy General Fund 2010-2011 Budget to the 2009-
2010 Estimated Budget is as follows:
Estimated Proposed $$ %%
Budget Budget Increase Increase
FY 09/10 FY 10/11 (Decrease) (Decrease)
Beginning Fund Balance $ 504,653 $ 522,908 $ 18,255 4%
Revenues 4,211,154 4,530,013 318,859 8%
Expenditures 4,092,898 4,425,054 332,156 8%
Other Resources ‐ 86,432 86,432 100%
Other Uses 100,000 99,272 (728) ‐1%
Net Revenues over (under) Expenditures $ 18,255 $ 92,119 $ 73,864 ‐405%
Ending Fund Balance $ 522,908 $ 615,027 $ 92,119 17.62%
Assigned Fund Balance 7,884 114,838 106,954 ‐
Ending Fund Balance (Unassigned) $ 515,024 $ 500,190 $ (14,835) ‐2.88%
# Days Operating (Based on 365) 46 41
Daily operating expense $ 11,213 $ 12,123
As with last year’s budget, we continue the use of a theme to focus on the essence of what we do as
an organization when we identify and prioritize our resources as we prepare and consider a budget.
The theme for FY 2010-2011 is “Building Our Learning Community”. There is much written in
educational literature about schools as “learning communities”, much of which is centered on the
faculty being a professional learning community. A learning community is often characterized as
having these attributes (SEDL):
supportive and shared leadership
collective creativity
shared values and vision
supportive conditions
shared personal practice
Westlake Academy
FY 2010-2011 Proposed Budget
FRAMEWORK AND PRESENTATION
6
I. Budget Approach
As a public school, Westlake Academy is unique. The Academy is an open enrollment chartered
school which features the International Baccalaureate (IB) curriculum for grades K-12. In fact,
being a K-12 IB school helps us to comply with our charter in terms of offering something
unique, not duplicating what is offered by the independent school districts that serve Westlake.
Additionally, it is the only municipally owned chartered school in Texas and is one of only a
handful of such schools in the country. It is unique in that it is a young school, having opened in
2003, that has added one (1) grade level per year since then. In 2009-2010 the Academy
graduated its first senior class, another major milestone for the school.
The Academy has a track record of continuous improvement centered on achieving strong
student academic performance. Over time, it has added a wide variety of extra-curricular
activities to provide a well-rounded education for our students. In August 2009 the Academy
added a major facility improvement with the opening of its new Sam and Margaret Lee Arts &
Sciences Center. Each year of its existence, Westlake Academy has prided itself on improving
all aspects of its operations and services so it can be recognized as one of the top chartered
schools in the state and nation.
Through building our learning community, this spirit of continuous improvement is carried
forward in this 2010-2011 Budget for Westlake Academy. The 2010-2011 Budget continues
movement towards placing the Academy’s budget into a program based format that ties to the
Academy’s strategic plan and performance metrics contained in that plan.
While including customary financial information related to funding levels, we have also included
the following additional information to provide an accurate picture of the many dimensions of
Westlake Academy:
Mission/vision and value statements
Student enrollment and projections
Academic programmes and athletics
Performance measurement
Organizational structure
General financial structure and facilities
Budget process description
Budget summary and analysis
o Revenue sources
o Proposed staffing levels
o Proposed service level adjustments
o Detail of Athletics Fund
o Detail of Transportation/Parking Fund
o Fund balance and Assigned for Technology/FF&E
o Unfunded needs
o Analysis of Westlake Academy by Fund
o Future Board Direction and Financial Forecasting
Organizational Chart
Position Summary
7
Proposed 2010-2011 Salary Scale
Fiscal and Budgetary Policies
Investment Policy
II. Budget Systemic Framework - “Governing and Managing for Outcomes”
The budget document is but one part of a system designed to link together critical governance
and management decision making tools. This system is called “Governing and Managing for
Outcomes” and is designed to integrate:
Strategic planning
Five (5) year financial forecasting, budgeting, and performance measurement linked to
priorities, objectives, and outcomes
Reporting to monitor progress in outcome achievement and accountability for results
Aligning resources to prioritized outcomes
Long term approach to ensure financial sustainability
Working within Board adopted financial policies for the Academy
Maintaining core services
III. Budget Challenges: Confronting Realities and Pursuing Opportunities
While Westlake Academy has achieved much and has the potential to do even more, there are
realities that must be recognized and confronted so proactive solutions can be identified and
implemented to maintain a positive course. One of these challenges is to get a clear idea of our
per student costs and determine the acceptable level of funding to use in terms of delivering the
outcomes the Board has identified. The per student cost since FY 2003-2004 as well as the
projected FY 2010-2011 budget at Westlake Academy is:
(Excludes in-direct cost of Payroll and Debt Payment- General Fund only)
$‐
$2,000
$4,000
$6,000
$8,000
$10,000
FY 05/06FY 06/07FY 07/08FY 08/09FY 09/10FY 10/11
$6
,
9
4
4
$7
,
7
2
5
$8
,
7
2
1
$8
,
9
5
5
$8
,
5
7
9
$8
,
3
4
7
Expenditures per Student
8
Section X of this transmittal letter describes the Academy’s financial structure and provides
details about the existing challenges. However, these challenges are easily identifiable. They
are:
Enrollment in FY 2011-2012 is projected to increase while per student State public
education revenues are projected to be flat after FY 2010-2011 unless State per student
funding is increased by the Texas legislature.
Donations via the Westlake Academy Foundation’s Blacksmith campaign have remained
at the same suggested per student annual donation of $1,800 since the Blacksmith
campaign’s inception 6 years ago and averages around $800 per student in actual giving.
Town of Westlake FY 2010-2011 annual investment in Westlake Academy is at
$324,607 in indirect operating cost contributions as well as $1,501,778 in annual debt
service payments for campus land and facilities. With municipal sales tax revenues
falling and not having a municipal ad valorem (property) tax, the ability of the Town to
invest further in the Academy is quite limited, if non-existent.
Funding for new facilities is hampered by both the lack of State public education funding
for facilities for chartered schools and by the Town’s maximized financial participation
referenced in the previous bullet point.
Demand for new course offerings at the DP level is increasing, as well as for other
programs, as we are now a fully operational K-12 school.
Within these realities we can create opportunities, which could include:
Increased per student parent funding by the Blacksmith Program
Research, investigate, and then discuss with the Westlake Academy community the
possibility of increasing class size to a maximum of 25 in certain upper grades such as
Grades 9-12
Aggressive marketing and development programs via the Westlake Academy Foundation
to increase donor giving from individuals, businesses, corporations, foundations, grants,
and other existing or new funding partners for the Academy
Create new funding streams through week night adult education courses that use the
Academy building for a fee (this also is a great community outreach tool to build support
for the Academy). These could be either community education type courses similar to
those offered by municipal parks and recreation departments or courses offered by area
junior colleges using the Academy as a satellite campus.
Using technology to offer classes via the web, thus having a virtual campus to teach from
without the need to increase facilities.
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Pursuing partnerships with other charter and/or IB schools, as well as institutions of
higher education, and share faculty training, academic programmes or programme
resources to expand our academic/extra-curricular offerings to our students without
additional capital investment in facilities.
IV. Mission/Vision and Values
In 2008, the Westlake Academy Board of Trustees held its first strategic planning retreat and
arrived at a mission/vision statement as well as value statements for the Academy. The IB
learner profile supports these statements. This strategic planning was further developed in FY
2009-2010 with the development and adoption by the Board of Westlake Academy’s first five
(5) year strategic plan that directly drives the budget process. The Westlake Academy
mission/vision and values statement are seen below.
V. Student Enrollment and Projections
The Academy is known world-wide for its academic excellence and International Baccalaureate
curriculum which focuses on developing caring, knowledgeable, inquiring young people who
will help create a more peaceful world through intercultural respect and understanding. The
Academy was the fifth school in the country to offer the IB curriculum from Kindergarten
through high school. Admission applications received for children residing in the school’s
secondary boundaries wishing to participate in the enrollment lottery generally exceeds 700
students on an annual basis.
Vision/Mission
“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 responsible global citizens.”
Values
(Guiding
Principles)
Academic
Success
through IB
Curriculum
Student
and family
oriented
environment
Being a
municipally
owned and
operated
charter school
Engaged
students with
international
awareness
Community
involvement
and support
Diverse
learning
experience
Desired
Outcomes
High
Academic
Achievement
Strong Parent
& Community
Connections
Financial
Stewardship
and
Sustainability
Student
Engagement
Effective
Educators
and Staff
10
As a result, our enrollment has grown steadily since our September 2003 opening when we
began operations as a Grades 1-6 PYP school. In FY 2010-2011, the enrollment is expected
to be as follows:
FY 2010-2011 ENROLLMENT
Per grade Totals
Grade 12 34 34
Grades 3-11 * 40 to 60 380
Grades 1-2 40 80
Kindergarten 36 36
Total Students 530
* A third 5th grade class is being added for the 2010-2011 school year.
The same enrollment information shown in an alternative format:
FY 09-10 FY 10-11 % Increase
Primary Programme PYP G K-6 275 296 7.6%
Middle Year Programme MYP G7-10 155 160 3.2%
Diploma Programme DP G11-12 61 74 21.3%
Total Students 491 530 7.9%
Per Board direction from its June budget retreat, in FY 2010-2011, student enrollment will
increase to an average of 20 students per class (Kindergarten, Grade 11, and Grade 12 excepted).
Additionally, a third Grade 5 class will be added in FY 2010-2011.
Total enrollment history by grade and future projections is as follows:
As a municipally owned and operated chartered school, Westlake Academy’s attendance
boundaries, and its resulting student demographics, differ from those of a typical independent
195
264
324 346 379 417
491 530
0
100
200
300
400
500
600
FY 03/04
1‐6
FY 04/05
K‐7
FY 05/06
K‐8
FY 06/07
K‐9
FY 07/08
K‐10
FY 08/09
K‐11
FY 09/10
K‐12
FY 10/11
K‐12
Total Students
11
school district. As set out in the Academy’s charter granted by the Texas Education Agency
(TEA), Westlake Academy’s “primary boundaries” cover the corporate boundaries of the Town
of Westlake. Children living in Westlake are automatically eligible to attend Westlake
Academy, if they choose to enroll. The Academy also has what TEA defines as “secondary
boundaries” that are geographically extensive and cover a major part of the Dallas-Fort worth
Standard Metropolitan Statistical Area (SMSA). Children residing in these secondary
boundaries (which are public school districts identified in the Academy’s charter) may attend
Westlake Academy after being selected from a waiting list created by an annual lottery for
student vacancies.
Enrollment by grade, primary boundary res idency, and secondary boundary (school
district of residency) is illustrated below:
WESTLAKE ACADEMY STUDENT CENSUS - MAY 2010
GradeTotal No. of% of No. of% of No. of% of No. of% of No. of% of No. of% of No. of% of No. of% of
Level Students Stud.Stud.Stud.Stud.Stud.Stud.Stud.Stud.Stud.Stud.Stud.Stud.Stud.Stud.Stud.Stud.
K361542%13%1747%38%0 0%26%26%13%
1391128%25%1436%38%923%13%25%13%
2371027%25%1746%411%311%00%514%13%
3392051%25%615%923%25%615%13%13%
4441943%12%1125%818%511%12%12%12%
5391846%13%1436%615%00%00%00%00%
6411639%25%1434%615%37%410%25%00%
7411537%512%1434%615%12%1024%25%00%
8391026%38%1641%718%38%821%13%13%
939923%513%1538%923%13%13%13%0%
103626%411%1953%719%411%13%00%00%
1137822%411%1746%411%411%00%13%25%
1224 2 8%1 4%14 58%4 17%3 13%0 0%0 0%1 4%
Totals49115532%337%18838%7615%388%347%184%92%
Residents ISD* ISD* ISD* Districts on Wait List Employee Employee
WestlakeCarrollKellerNorthwestOtherSiblingsDue to SchoolDue to Town
Primary Secondary Boundaries Included in appropriate ISD
VI. Academic Programmes
Westlake Academy is authorized by the International Baccalaureate (IB) to offer:
The IB Primary Years Programme (grades K-6)
The IB Middle Years Programme (grades 7-10)
The IB Diploma Programme (grades 11-12)
These three curricula combine synergistically to form the IB Continuum which is the cornerstone
of the educational efforts pursued by Westlake Academy to produce IB diploma graduates.
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The IB programmes encourage students to be active learners, well-rounded individuals and
engaged community members. Universities and colleges actively recruit IB graduates, often
offering them credit or advanced standing for their IB work. Leading public and private
universities and government officials recognize IB as excellent preparation for success in post
secondary education and in life. Students who earn an IB diploma are equipped with the
knowledge, skills, and abilities to compete with students around the world. The IB continuum is
not only a pathway for students to an academically-rigorous, internationally recognized
education. It prepares students for success in college or university by:
Focusing on the transference of learning with understanding to worthy tasks;
Fostering critical thinking, intellectual, and emotional maturity; and
Learning intellectual coherence through the alignment of what is taught and what is
tested.
When schools implement the full continuum of IB programmes, they realize several benefits:
An increased number of students prepared for and applying to the Diploma Programme
as well as IB Diploma graduates;
Improved standardized test scores;
An understanding and appreciation of the world’s cultures and histories among their
students; and
A sense of community and shared goals among parents, students, teachers, and
administrators.
The IB programme related costs contained in this budget total $36,330 ($69/per person for FY
2010-2011) and are comprised of the following.
Cost for Maintaining the IB Programmes PYP MYP DP Total
Annual Fees $7,350 $8,400 $10,080 $25,830
Evaluation Visits $3,500 $3,500 $3,500 $10,500
* PYP visit was completed in FY 2008-2009
* MYP visit to be completed in FY 2010-2011
*DP visit to be completed in FY 2012-2013
(Future evaluation visits will be every five years)
The IB curriculum continues to be the top reason parents seek out Westlake Academy for their
child’s education as evidenced in this response from the 2010 parents’ survey:
13
VII. Westlake Academy Athletics
While mentioning our academic programs, we must also take a moment and focus on our
athletics for the coming school year. Athletics at the Academy are intended to
round out our students’ education and compliment their class room work. One of
the Academy’s athletic program’s special features is that it offers all our
students an opportunity to actually play at least one sport of their choosing
(many play several). Another special attribute of Westlake Academy
athletics is the tremendous core of talented parents who volunteer as
coaches and assistant coaches, as well as serve in the Westlake Academy
Athletic Club (WAAC). It should be noted that it will require the
continued infusion of WAAC dollars to operate the Athletics Program
at the level desired in FY 2010-2011. The Athletic Program budget is detailed
in the “Budget Summary and Analysis” section. In FY 2009-2010 the Athletics Program
continued making significant strides in its overall program design and performance.
VIII. Performance Measurement
The budget is a means to allocate financial resources to create certain educational outcomes as
predetermined by the Board. These outcomes can lend themselves to measurement. By various
14
metrics, we can ascertain the point at which Westlake Academy is performing at a high level. We
can also identify areas where additional emphasis or resources are needed to generate continuous
improvement in terms of the outcomes the Board has identified as a priority.
In that light, different types of measures are presented to examine the Academy’s past and desired
future student academic performance. Over time it is anticipated these measures will grow in their
usefulness as we continue to identify the results we wish to achieve. One type of measure is an
“absolute measure” such as standardized test results.
This chart shows the Academy’s State mandated TAKS (Texas Assessment of Knowledge and
Skills) Results over time by subject area as well as the campus ratings by the Texas Education
Agency (TEA):
Description FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10
Reading/English
Language Arts 98% 98% 99% 98% 99% 100% 98%
Writing 97% 97% 99% 91% 93% 100% 96%
Social Studies N/A N/A 99% 95% 98% 100% 99%
Mathematics 97% 91% 95% 91% 93% 98% 94%
Science 93% 85% 78% 88% 96% 99% 99%
Texas
Accountability
Rating
Exemplary Recognized Recognized Recognized Exemplary Exemplary Exemplary
The Academy’s Strategic Planning has other metrics identified to measure Specific
Outcomes needed to attain the Desired Outcome of High Student Achievement. These
include use of the SAT, PSAT, Stanford Test as tools to assess student performance in
relation to Westlake Academy, and other Texas charter schools, Texas public schools, and
benchmark schools so as to be in the top 5% of those schools.
Parents, as well as community perceptions, regarding Westlake Academy, are also important
as a measure for evaluating areas of strength as well as areas for improvement. These
perceptions can also help identify o pportunities for community outreach and
partnerships. The following are key indicato rs resulting from the Town’s 2010 recent
DirectionFinder (citizens) survey of Westlake residents, as well as results from the
Board’s 2010 Westlake Academy Parents’ Survey.
15
Very Dissatisfied
2%
Dissatisfied
9%Neutral
16%
Satisfied
39%
Very Satisfied
34%
Q1‐1 Overall, how satisfied are you with the
quality of education provided by the
Academy?
16
17
IX. Organizational Structure
The organizational structure for Westlake Academy is established by its charter which is granted
through an authorizer on behalf of the State, the Texas Education Agency (TEA). Westlake
Academy is governed by a six member elected Board of Trustees that also serves as the Town
Council for the Town of Westlake, the entity that owns and operates the Academy. The Board of
Trustees appoints a Superintendent to oversee the Academy’s management and operations. The
Superintendent also serves as Westlake’s Town Manager. The Academy’s organizational structure
is based on research into management of municipally owned charter schools. The current structure
was adopted by the Board in Resolution 09-23 on December 7, 2009.
The Superintendent is responsible for the implementation of the Board’s policy agenda for
Westlake Academy, facilitating the Board’s strategic plan, formulating policy recommendations
for Board consideration, as well as managerial oversight of the Academy’s budget administration,
finances, and budget preparation. Superintendent responsibilities also include selection of the
principals for both the Primary and Secondary Years Programmes. The Academy’s
Superintendent oversees the Westlake Academy Leadership Team (WALT) which is charged with
the responsibility of managing the school’s on-going academic and extra-curricular operations.
Each principal is responsible, with advisement from the Superintendent, for selection and
evaluation of the faculty and staff involved in providing their Programme’s academic services.
The senior management structure for the Academy is:
The 2011-2012 school year is an assessment year for the Academy’s Middle Years
Programme. For that reason, initially the MYP Principal will focus on Grades 7-10.
Eventually Grades 11-12 will become part of this position’s purview. Until then, the
school’s IB Diploma Coordinator will serve as the Diploma Programme team lead.
X. General Academy Financial Structure and Facilities Overview
A. Campus Facilities
The land and buildings that comprise the Westlake Academy campus are owned by the Town
of Westlake, a municipality incorporated under State law as a Type A general law city.
Westlake Academy opened in 2003 with Grades 1 through 6 and has added a grade each
subsequent year. With the commencement of the 2009-2010 school year, the final
component was added with the 12th grade inaugural graduating class. The campus is located
Superintendant
PYP
Principal
MYP
Principal DP Coordinator Admin Coordinator
18
on twenty three (23) acres adjacent to J.T. Ottinger Road, which is near the intersection of
State Highways 114 and 170. The original campus included three (3) stand alone academic
buildings with a total of twenty nine (29) classrooms, administrative offices, restrooms, a
library, breakout area, a performance hall, dining and kitchen area, locker rooms, and a gym.
These buildings total 52,600 square feet. The Academy interior design includes wood, vinyl
covering, carpet and tile flooring. The hallways are lined with wooden lockers and carpet
flooring. The Sam and Margaret Lee Arts & Sciences Center opened in August of 2009 and
added another 8,400 square feet of building space to the campus. This facility includes one
art room, two science labs, five offices, a workroom, conference room, restrooms and
breakout space.
B. Capital Costs/Debt Service
The Town of Westlake has issued certificates of obligation and general obligation bonds to
fund the construction of the campus. As of FY 2010-11 there is $32,266,379 (principal and
interest) of outstanding bonded indebtedness to retire these bonds. Included in this total, is
the 2008 issuance of $2.5 million in G.O. bond debt to fund a portion of the new $5.1 million
Sam and Margaret Lee Arts & Sciences Building.
Annual debt service payments are expensed to the Town’s municipal budget and the revenue
stream presently utilized to make the annual debt service payment is comprised of municipal
sales tax. However, the legal pledge securing these bonds, should this present sales tax
revenue source not be adequate to retire this debt, is an ad valorem tax which the Town
would be required to implement on all property within its corporate limits. Presently the
Town of Westlake levies no ad valorem tax and there is no direct limit on debt for the Town.
The Constitution of the State of Texas provides that the ad valorem tax levied by the Issuer
for general purposes and for the purpose of paying debt service requirements of the Issuer’s
general obligation debt shall not exceed $1.50 for each $100 of assessed valuation of taxable
property. While there are future facility needs, there are currently no funded buildings or
large projects for Westlake Academy contained in the Town’s CIP (capital improvement
plan) due to the unavailability of funding.
C. Direct Operating Costs
In addition to owning the Westlake Academy campus facilities, the Town of Westlake is
responsible for the daily maintenance costs of the campus grounds and buildings. Per Board
direction from its June budget retreat, FY 2010-2011 will be the first fiscal year all direct
costs to operate the campus are expensed to the Academy’s operating budget (as opposed to
the previous practice of expensing much of that cost in the Town’s municipal budget).
Direct costs moved from the municipal budget to the Academy’s operating budget in FY
2010-2011 total $243,213.
D. Indirect Operating Costs
Further, the Town of Westlake provides various administrative support services for the
Academy to avoid duplication of costs. This fact was used as part of the charter application
process with the TEA to help bolster the Town’s case for having a community school without
duplicating cost structures and required resources. These indirect operating costs are
contained in the Town’s municipal budget and are estimated to be approximately $324,607 in
19
FY 2010-2011. These support services for the Academy that generate indirect costs paid by
the Town of Westlake are:
Human resources
Information technology
Risk management
Finance and accounting services
Facility maintenance services
General administrative services (Superintendent)
Board support services including policy advisement and strategic planning
(Superintendent)
Official Board records maintenance and election administration (Town Secretary)
As other indices in this letter show, such as the Academy’s growing enrollment and staffing
levels, this has created an increased demand for the level of support services that the Town
provides the Academy. Per Board direction at its June budget retreat, beginning in FY 2011-
2012, indirect costs for these services provided by the Town will be expensed to the
Academy operating budget.
E. Financial Structure Summary
In summary, the full cost structure for Westlake Academy for FY 2010-2011 (all funds),
including the Proposed FY 2010-2011 Westlake Academy Budget is $12,219.
Overall Cost Summary
Proposed
FY 10-11
Proposed Westlake Academy Budget $ 4,649,822
Estimated Town Funded Indirect Operational Costs (Support Services) 324,607
Subtotal All Operating Costs 4,973,129
Annual Debt Service Payment 1,501,778
Grand Total $ 6,476,207
20
XI. Westlake Academy FY 2010-2011 Budget Process
A. Academy Budget and Strategic Planning Process and Calendar
The Academy’s budget process integrates with its strategic planning process and covers the
financial cycle starting with budget planning and ending with the audited financial report:
October/December 2009 Strategic Plan preparation process occurs
December 2009 Westlake Academy Leadership Team (WALT) begins
planning FY 2010-2011 Budget
January 2010 WALT meets with WA affiliates for joint planning for FY
2010-2011
January-March 2010 Staff presents draft WA Strategic Plan to Board of
Trustees (BOT)
February 2010 Discussion with BOT of broad overview of WA’s 2010-
2011 Budget (i.e. early input, including review of updated
WA financial forecast)
April 5, 2010 BOT adoption of five year strategic plan
April/May 2010 Proposed budget preparation for 2010-2011 (Faculty input)
June/July 2010 Westlake Academy parents’ survey conducted
June 18, 2010 FY 2010-11 Proposed Budget and Strategic Planning
Retreat with BOT
$12,014
$12,305
$13,012
$13,865
$12,933
$12,219
$11,000
$11,500
$12,000
$12,500
$13,000
$13,500
$14,000
FY 05/06FY 06/07FY 07/08FY 08/09FY 09/10FY 10/11
Expenditures per Student
(Includeds fullcost structure All Funds)
21
August 16, 2010 Board consideration/adoption of Westlake Academy FY
2010-2011Budget
August- September 2011 Budget Amendments for FY 2010-2011
Fall 2010 Begin strategic plan update/review process for FY 2011-
2012
December 2010 Annual Financial Report for FY 2009-2010
B. Staff Budget Preparation Methodology
The Academy’s budget process is site based, instructionally driven, and reflects the Board’s
strategic priorities and outcomes. The Budget Calendar and Five-Year Financial Forecast are
also reviewed with the Board of Trustees at least annually. The goal of the Academy’s budget
preparation process is to incorporate all the school’s planning efforts into a single process;
“Governing and Managi ng for Outcomes”. Budget preparation begins by soliciting input
from faculty as to their projected needs for academic programme delivery in the upcoming fiscal
year. The information is placed onto budget work sheets which are then reviewed by the
Westlake Academy Leadership Team (WALT). Increases or decreases in funding are identified
as “service level adjustments” (SLA’s). SLA’s can be utilized to add a new program or service
as well as tracking increased or decreased funding levels for an existing or expanded
service/program. Proposed funding and SLA’s are then reviewed by the WALT with the
Superintendent including all proposed staffing levels. A preliminary budget is fashioned by the
Superintendent for final review, including instructional impacts and reallocation of existing
funds, as well as requests for additional funds. When determined to be complete and in concert
with available resources and the strategic plan, the Superintendent submits a recommended
Westlake Academy Budget for consideration by the Board of Trustees.
C. Board of Trustee Budget Review
The Board of Trustees regularly receives financial updates during the course of the fiscal year
including any revisions to the five-year financial forecast. Upon receipt of the proposed annual
Westlake Academy budget, the Board conducts budget workshops to review proposed outcomes
for the next fiscal year, expenditure and revenue levels, proposed staffing levels and service level
adjustments, compliance of the budget with fiscal policies, as well an updated five (5) year
financial forecast.
D. Budget Adoption
In addition to Board budget workshops held from February to June, the Board of Trustees holds
the required public meeting and adopts the budget in August prior to beginning the fiscal year,
which runs from September 1st to August 31st.
XII. Budget Summary and Analysis
A. Expenditure Summary
The FY 2010-2011 Proposed Westlake Academy Budget totals $4,649,822 (including ALL
funds) and is summarized as follows:
22
Proposed Percentage
Budget of Total
EXPENDITURES (BY OBJECT)FY 10/11 Budget
61XXPayroll & Related Items3,396,643$ 73%
62XXContracted Services641,745 14%
63XXSupplies & Materials 258,287 6%
64XXOther Operating 353,147 8%
65XXDebt Service ‐ 0%
Total Expenditures 4,649,822$ 100%
EXPENDITURES (BY FUNCTION)
11 ‐ Instructional 2,595,282$ 56%
12 ‐ Resources & Media 93,256 2%
13 ‐ Staff Development 136,250 3%
21 ‐ Instructional Leadership 133,415 3%
23 ‐ School Leadership 298,877 6%
31 ‐ Guidance & C ounseling 164,757 4%
33 ‐ Health Services 54,529 1%
35 ‐ Food Services 9,700 0%
36 ‐ CoCurricular/Extracurricular Activities 114,098 2%
41 ‐ Administrative 279,300 6%
51 ‐ Maintenance & Operations 546,560 12%
53 ‐ Data Processing 158,851 3%
61 ‐ Community Services 64,949 1%
71 ‐ Debt Service ‐ 0%
Total Expenditures 4,649,822$ 100%
B. Revenue Sources
Westlake Academy’s revenues to fund its annual budget come from two major sources. First,
public education funding is provided by the State of Texas which accounts for 88.7% of this
budget revenues. The funding is provided on a per student basis and is projected to be $7,073
per student for FY 2010-2011. The following chart shows the State’s per student funding
level (State Foundation funds only) for the Academy since inception as well as the projected
FY 2010-2011:
23
Donations provided by the Westlake Academy Foundation’s Blacksmith Program constitute the
second largest funding source for the Westlake Academy Budget which totals 9.25%. Absent
other revenue sources, if it were not for this private donation support from the parents that
participate in the Foundation’s Blacksmith campaign, the Academy’s Budget would not be fully
funded and could not provide educational services at their current level. Presently the Westlake
Academy Budget receives no ad valorem revenues as the Town of Westlake does not levy an ad
valorem tax. Since the inception of the Foundation’s Blacksmith program, annual amounts
raised from the Academy parent body are as follows:
Revenue Sources
FY 08/09
Audited
FY 09/10
Adopted
Budget
FY 09/10
Estimated
Budget
FY 10/11
Proposed
Budget
Local & Intermediate Sources
Blacksmith Apprentice Program (WAF)394,129$ 420,000$ 435,095$ 419,230$
Gifts and Donations 20,000 ‐ 3,000 ‐
Investment Earnings 4,617 3,000 625 1,500
Lunchroom Revenues 6,339 8,600 ‐ 3,000
WAF Salary Reimbursement 64,858 64,858 64,858 64,858
Local Revenue 25,341 11,000 16,388 12,000
Athletic Activities Income 32,743 48,006 44,953 51,953
Transportation & Parking ‐ ‐ ‐ 32,840
Total Local & Intermediate Sources 506,248 555,464 564,919 585,381
State Revenues
Foundation School Program 2,960,589 3,443,120 3,379,040 3,748,836
State Revenue (TRS and Medicare On‐Behalf)202,539 174,285 193,989 189,630
Medicare Part D On‐Behalf ‐ ‐ 6,044 6,165
Total State Rev enues 3,163,129 3,617,405 3,579,073 3,944,631
TOTAL REVENUES 3,669,377$ 4,172,869$ 4,143,993$ 4,530,013$
$5
,
6
2
4
$6
,
5
3
0
$6
,
6
2
3
$7
,
0
5
7
$7
,
2
7
9
$7
,
0
7
3
$‐
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
FY 05/06FY 06/07FY 07/08FY 08/09FY 09/10FY 10/11
State Fundingper Student
24
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
FY 08/09
Audited
FY 09/10
Adopted Budget
FY 09/10
Estimated Budget
FY 10/11
Proposed Budget
Lunchroom Revenues
Investment Earnings
Gifts and Donations
Local Revenues
WAF Salary Reimbursement
Blacksmith Apprentice Program
(WAF)
State Revenues
Revenues by Dollars
0%
20%
40%
60%
80%
100%
FY 08/09
Audited
FY 09/10
Adopted Budget
FY 09/10
Estimated Budget
FY 10/11
Proposed Budget
Lunchroom Revenues
Investment Earnings
Gifts and Donations
Local Revenues
WAF Salary Reimbursement
Blacksmith Apprentice Program
(WAF)
State Revenues
Revenues by Percentage
25
C. Total Budgets for All Governmental Funds
The following schedule presents a comparison of revenues and expenditures for all
Governmental Funds in the Academic Services Budget. Budgets for the General Fund, the Food
Service Fund (a Special Revenue Fund) and the Debt Service Fund must be included in the
official district budget (legal or fiscal year basis). The Academy does not maintain a Food
Service Fund or a Debt Service Fund; therefore; the only fund legally adopted will be the
General Fund. For informational purposes only, budgets for Special Revenue Funds are included
throughout the presentation.
$300,000
$400,000
$500,000
FY 06/07
actual
FY 07/08
actual
FY 08/09
actual
FY 09/10
estimated
FY 10/11
proposed
$3
8
8
,
3
7
7
$4
1
1
,
5
0
5
$4
1
8
,
3
1
3
$4
3
5
,
0
9
5
$4
1
9
,
2
3
0
Blacksmith Program Contributions
26
Adopted Estimated Proposed
Actual Budget Budget Budget
FY 08/09 FY 09/10 FY 09/10 FY 10/11
General Fund 3,661,645$ 4,172,869$ 4,211,154$ 4,530,013$
Special Revenue Funds 96,610 139,680 332,131 162,768
Total Governmental Funds 3,758,255$ 4,312,549$ 4,543,285$ 4,692,781$
Adopted Estimated Proposed
Actual Budget Budget Budget
FY 08/09 FY 09/10 FY 09/10 FY 10/11
General Fund 3,709,086$ 3,918,033$ 4,092,898$ 4,425,054$
Special Revenue Funds 96,610 139,680 270,131 224,768
Total Governmental Funds 3,805,696$ 4,057,713$ 4,363,029$ 4,649,822$
Adopted Estimated Proposed
Actual Budget Budget Budget
FY 08/09 FY 09/10 FY 09/10 FY 10/11
61XXPayroll & Related Items 2,790,289$ 3,090,775$ 3,275,786$ 3,396,643$
62XXContracted Services 553,162 488,190 444,608 641,745
63XXSupplies & Materials 252,376 252,105 305,659 258,287
64XXOther Operating 126,878 184,643 295,481 353,147
65XXDebt Service 82,991 42,000 41,496 ‐
Total Expenditures 3,805,697$ 4,057,713$ 4,363,029$ 4,649,822$
All Governmental Funds ‐ Total Revenues
All Governmental Funds ‐ Total Expenditures
All Governmental Funds ‐ Expenditures by Object Code
D. Proposed Staffing Levels
As we examine proposed major areas of expenditures such as staffing, it is helpful to think about
and evaluate them based on their impact on these suggested desired outcomes for the Academy
(see Section IV for more detail):
High Academic Achievement
Strong Parent & Community Connections
Financial Stewardship & Sustainability
Student Engagement
Effective Educators & Staff
As indicated in the previous charts, 73% of Westlake Academy’s Operating Budget as adopted
are payroll related, i.e. - salaries and wages plus fringe benefit cost. A detailed personnel
schedule is provided in this adopted budget. A summary schedule of recommended positions
with a comparison to the current approved budget is as follows:
27
FY 09/10
Actual
FY 10/11
Proposed
Increase
Primary Instructional 18.00 20.90 2.90
Secondary Instructional 15.77 16.75 0.98
Special Education 2.00 2.00 -
Sub-total Instructional Staff35.77 39.65 3.88
Instructional Aides 3.70 3.75 0.05
Librarian 1.00 1.00
Counselors 2.00 2.00
Nurse 1.00 1.00
Clerical Staff 5.00 4.40 -0.60
Leadership 4.60 5.00 0.40
Information Technology 1.70 1.80 0.10
Strings 0.25 0.25 -
Day-Porter 0.60 0.60 -
Sub-total Other Staff 19.85 19.80 -0.05
TOTAL EMPLOYEES 55.62 59.45 3.83
With a few exceptions, new positions included in the proposed Westlake Academy Budget
comport to discussions held with the Board at their June 18, 2010 budget retreat. Recommended
new positions will be discussed below under proposed service level adjustments.
E. Proposed Service Level Adjustments
This budget makes use of Service Level Adjustments (SLA’s) to track any cost changes. These cost
changes can be due to increased operating costs for an existing program, increased operating costs
due to program expansion, or costs for the reallocation of existing funding. SLA’s can also outline
cost decreases that occur for a variety of reasons including efficiencies, not spending the fully
budgeted allocation in the current fiscal year, or service level reductions that reduce cost.
32.4 36.4
43
48.1
55.62 59.45
0
10
20
30
40
50
60
70
FY 05/06
K‐8
FY 06/07
K‐9
FY 07/08
K‐10
FY 08/09
K‐11
FY 09/10
K‐12
FY 10/11
K‐12
Total Staff
28
Generally speaking, Service Level Adjustments proposed in this budget are those that fall in the
category of increased operating costs for existing programs. Some SLA’s are proposed due to
existing program expansion, such as adding a third fifth grade class.
In terms of SLA’s involving new expenditure areas to target for recommendation to the Board for
FY 10-11, staff recommends three (3) areas: new positions, employee compensation, staff
training, and absorbing operational costs for the Arts & Sciences Building.
Direct Operating Costs (formerly charged to Town): Total: $243,213
Desired Outcome: Financial Stewardship and Responsibility
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.
New Positions: Total: $203,137
Desired Outcome: High Student Achievement
In FY 10-11, it is proposed to add 3.83 full-time equivalent employees (FTE’s) to the
Westlake Academy Budget. It should be noted that the additional FTE’s shown below
are illustrated as “whole” positions. These additions, like many existing positions in
the Academy, are allocated on a percentage basis to more than one function.
One MYP Spanish Teacher
One 5th grade classroom teacher
One MYP Physics/Math Teacher
One Library Aide
One Part-time MYP Art Teacher
Employee Compensation and Benefits: Total: $67,705
Desired Outcomes: Effective Educators & Staff
High Student Achievement
With 72% of the Academy’s Budget funding allocated to employee pay and benefits,
it is important that we offer competitive salaries, wages, and benefits to attract and
retain a strong faculty base, even in a difficult economy. It is proposed to shift our
teacher’s pay scale to provide for a 2% pay increase and a $7,000 increase in
coaching stipends which will be offset by an increase in athletic fees in FY 2010-
2011.
IB Fee Increase: Total: $2,000
Desired Outcome: High Student Achievement
Bus Operating Costs: Total: $20,000
Desired Outcome: High Student Achievement
Student Engagement
29
Two (2) 18 to 20 passenger buses were funded by generous 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.
Graduation Ceremony Expenses: Total: $10,000
Desired Outcome: Student Engagement
Strong Parent & Community Connections
This would provide a reasonable amount of adequate funds in-line with the actual
costs incurred in our first senior commencement ceremony in 2010.
F. Athletics Program
As mentioned previously, the Academy’s Athletic Program is intended to move this program
forward in FY 2010-2011. The budget for the program is:
FY 09/10 FY 10/11
Revenues
Uniform Replacement Fee $ 7,931 $ 7,931
Equipment Replacement Fee 2,185 2,185
Donations 8,301 8,301
Tournament Receipts 1,585 1,585
Registration Fees 20,523 27,523
Miscellaneous 4,429 4,429
Total Revenues 44,953 51,953
Expenditures
Officials 10,265 11,000
Field Rentals 848 1,000
Uniforms 19,130 5,000
Supplies 3,013 5,000
Equipment 1,093 8,000
Trophies/Awards 802 1,000
Tournament Entry Fees 2,710 5,000
League Fees 1,540 2,000
Total Expenditures 39,401 38,000
Excess (Deficiency) of Revenues Over (under) Expenditures 5,553 13,953
Other Financing Sources (Uses)
Transfers in - -
Transfers out - (7,000)
Total Other Financing Sources (Uses) - (7,000)
Net Changes in Fund Balance 5,553 6,953
Fund Balance, Beginning 2,332 7,885
Fund Balance, Ending (Assigned) $ 7,885 $ 14,838
30
G. Transportation/Parking Fund
FY 10/11
Revenues
Parking Fees $ 12,840
Transportation Fees 20,000
Total Revenues 32,840
Expenditures
Bus Operations (Fuel/Supplies) 20,000
Total Expenditures 20,000
Excess (Deficiency) of Revenues Over (under) Expenditures 12,840
Other Financing Sources (Uses)
Transfers in -
Transfers out (12,840)
Total Other Financing Sources (Uses) (12,840)
Net Changes in Fund Balance -
Fund Balance, Beginning -
Fund Balance, Ending (Assigned) $ -
H. Fund Balance and Assigned for Technology/FF&E
The ending fund balance for the General Fund portion of the Academic Services Budget is
estimated as follows:
FY 09/10 FY 10/11 % Inc(Dec)
Fund Balance $515,053 $500,218 -2.88%
The goal for the fund balance of the General Fund for FY 2010-2011 is to have this balance be
equivalent to at least 41 operating days. In FY 2010-2011, it is recommended to use this fund
balance as follows:
The Academy needs to continue the practice begun in FY 2009-2010 of setting aside funds for
replacement of computers, furniture, and fixtures. It is intended, at the end of FY 2010-2011
(assuming the fund balance shown here occu rs), to assign $100,000 for Technology/FF&E
(furniture/fixture & equipment) for Westlake Academy to begin to accumulate funding for
these future replacement needs that ar e currently unfunded and $14,838 for athletic
activities.
I. Unfunded Needs
As with any budget, there are yet other needs that new dollars could support. This may be an
area where consideration by the Westlake Academy Foundation to increase it’s per student
suggested funding contribution would help.
Total Estimated Fund Balance @ 08-31-11 $ 615,056
Assigned Fund Balance 114,838
Total Estimated Fund Balance (Unassigned) $ 500,218
31
J. Analysis of Operating Budget by Fund
General Fund
The General Fund is budgeted at $4,425,054 for FY 2010-2011. This fund is established to
account for resources financing the fundamental operations of the Academy, in partnership with
the community, to enable and motivate our students to reach their full potential. All revenues and
expenditures not required to be accounted for in other funds are included here. This is a budgeted
fund and any fund balances are considered resources available for current operations. Fund
balances may be appropriated by the Board of Trustees by budget amendment to implement its
responsibilities. The 2010-2011 budget plans to decrease fund balance by approximately $14.8K.
This fund also includes the newly created Transportation/Parking Fund–Fund 197 as well as the
Athletic Activities Fund–Fund 198. This budget leaves the Academy’s ending fund balance at
11% of the General Fund’s current operating expenditures. The Academy’s target for FY 2010-
2011 is forty-one (41) operating days.
Special Revenue Funds
These funds are budgeted at $224,768 in total and are established to account for grant funds from
federal, state or local sources or expenditures legally restricted for specified purposes. Any
unused balances are returned to the grantor at the close of specified project periods. The
Academy has six (6) Special Revenue Funds budgeted for FY 2010-2011 as follows:
2010-2011
Special Revenue Funds Budget
IDEA B - Formula $ 69,097
IDEA B - Preschool 1,796
ARRA Title XIV - SFSF Stimulus 72,136
Advanced Placement Incentives 5,750
Technology Allotment 13,989
Hudson Foundation 62,000
Total Special Revenue Fund $ 224,768
K. Future Board Direction and Financial Forecasting
The Board, at its June 18, 2010 planning retreat, directed staff to include the following in FY
2010-2011:
Add all Academy related direct operating costs, previously in the municipal budget, into
the Academy’s operating budget
Increase class size to an average of twenty (20)
Beginning in FY 2011-2012 the Board directed:
Move all indirect Academy operating costs now expensed in the municipal budget to
the Academy operating budget.
Budget Blacksmith funding at a 75% level
Increase enrollment via an expanded block schedule.
The following financial forecast reflects this Board direction:
32
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
Summary of Significant Accounting Policies
Westlake Academy, a blended component unit of the Town of Westlake, is a Texas non-profit
Corporation under Chapter 12, Subchapter D of the Education Code to provide education. The
Board of Trustees 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 Government 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 the Texas Education Agency (TEA) Financial Accountability System
Resource Guide (the “Resource Guide”) and the requirements of contracts and grants of agencies
from which it receives funds.
Reporting Entity
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. 24, “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 just
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 is discretely
presented in the Westlake Academy financial statements ad reported in a separate column to
emphasize that it is legally separate from the Academy. Separate audited financial statements of
the Foundation are prepared annually.
Financial Structure
34
Governmental fund financial statements are reported using the current financial resource
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the government considers revenues to be available if they are
collected within 60 days of the end of the current fiscal period. Expenditures generally are
recorded when a liability is incurred.
Basis of Accounting
Revenues from local sources consist primarily from the Westlake Academy Foundation.
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 earned to the extent of the expenditures made under the provision of
the grant. Accordingly, grant funds are not requested until the expense has been incurred.
The Academy reports the following funds:
Governmental Fund Types
are those through which most governmental functions of the
Academy are financed. The acquisition, use and balances of the Academy’s expendable
financial resources, and the related liabilities are accounted for through the Governmental Fund
Types. Following are the Academy’s Governmental Fund Types:
General Fund
The General Fund is a governmental fund with budgetary control which is used to show
transactions resulting from operations of on-going organizations and activities from a variety of
revenue sources for which fund balance is controlled by and retained for the use of the Academy.
This is a budgeted fund, and any fund balances are considered resources available for current
operations. Fund balances may be appropriated by the Board of Trustees to implement its
responsibilities.
Fund 199 – General Fund
This classification must be used for funds in which the local governing board designates.
The local governing board has wide discretion in their use as provide by law. This fund
usually includes transactions as a result of revenues from local sources and Foundation
School Program Sources. Any locally defined code that is used at the local option are to be
converted to Fund 199 for PEIMS reporting.
35
Fund 198 – Athletic Activities
This locally defined fund code is used to account for expenditures for athletics that normally
involve competition between schools (and frequently involve offsetting gate receipts or fees
such as football, baseball, volleyball, track, tennis and golf). This fund is converted to Fund
199 for PEIMS reporting.
Fund 197 – Transportation/Parking
This locally defined fund code is used to account for revenues and expenditures related to
transportation (field trips and co-curricular/extracurricular) for students as well as to collect
parking fees and remit them to the Town of Westlake as a reimbursement for the expense of
the new parking lot built in the summer of 2010 (funded by the Town). This fund is
converted to Fund 199 for PEIMS reporting.
Special Revenue Funds
The Special Revenue Funds are the funds that account for local, state and federally financed
programs or expenditures legally restricted for specified purposes or where unused balances are
returned to the grantor at the close of a specified project period.
Fund 224 IDEA-B Formula (Federally Funded)
Fund is used, on a project basis, for funds granted to operate educational programs for
children with disabilities.
Fund 225 IDEA-B Preschool (Federally Funded)
Fund is used, on a project basis, for funds granted to operate educational programs for
preschool children with disabilities.
Fund 266 ARRA, Title XIV, State Fiscal Stabilization Fund (Stimulus Funds)
Fund is used to account, on a project basis, for funds granted to improve basic programs
authorized by the Elementary and Secondary Education Act of 1965, as amended by the No
Child Left Behind Act of 2001; the Individuals with Disabilities Education Act (IDEA); the
Adult and Family Literacy Act; the Carl D. Perkins and Technical Education Act of 2006, or
for the modernization, renovation, and repairs that are consistent with a recognized green
building rating system. (84.394) This grant is funded by the American Recovery and
Reinvestment Act (ARRA) of 2009, Title XIV.
Fund 397 Advanced Placement/IB Awards (State Funded)
Fund is used to account, on a project basis, for funds awarded under the Texas Advanced
Placement Award Incentive Program, Chapter 28, Subchapter C, Texas Education Code.
The purpose of this incentive program is to recognize and reward those students, teachers,
and schools that demonstrate success in achieving the state’s educational goals.
36
Fund 411 Technology Allotment (State Funded)
Fund is to be used to account, on a project basis, for funds awarded to purchase
technological software or equipment that contributes to student learning, or to pay for
training for educational personnel involved in the use of these materials.
Fund 461 Campus Activity Funds (Locally Funded)
Fund is used to account for transactions related to a principal’s activity fund if the monies
generated are not subject to recall by the Academy’s Board of Trustees into the General
Fund, i.e. vending machine revenues
Fund 481 Hudson Foundation Grant (Locally Funded)
This locally defined fund is used to account for grants received from the Hudson
Foundation. Their focus for Education is partnering with organizations that use innovative
methods to reduce the dropout rate, increase academic performance and help young adults
make better choices and prepare for the future. This includes all areas of formal education,
with a primary focus on kindergarten through high school. The funds received in FY 09-10
will be used to advance the Academy’s professional development efforts as well as the
completion of a Master Facilities Plan to ensure effective and efficient use of the physical
space.
Fund 482 Fund 100 (Locally Funded)
This locally defined fund is used to account for grants awarded to the Academy by the
Westlake Academy Foundation to be used to develop, retain, and recruit “legacy teachers”;
educators who make a positive and lasting difference in the lives of students they teach.
The Academy reports the following proprietary fund:
Fiduciary Fund
The agency fund account for resources held in a custodial capacity by the Academy, and
consists of funds that are the property of students or others. These are not budgeted funds.
Legal requirements for charter budgets are formulated by the state and TEA. A Board typically
adopts an “Appropriated budget” on a basis consistent with GAAP for the general fund, debt
service fund and child nutrition program (which is included in special revenue funds). The
Academy does not maintain a debt service nor child nutrition program; therefore, only the
General Fund is required to be adopted. At a minimum, the Academy is required to present the
original and the final amended budgets for revenues and expenditures compared to actual
revenues and expenditures for the General Fund.
Basis of Budgeting
37
Budgets are prepared on the same basis of accounting as that used in the financial statements.
The basis of budgeting refers to when revenues and expenditures are recognized in the accounts
and reported in the financial statements. Governmental fund types, the general fund and the
special revenue funds, are budgeted using the current financial resources measurement focus and
the modified accrual basis of accounting. The proprietary fund, our fiduciary fund, the agency
fund, is not a budgeted fund.
38
10 Instruction and Instructional Related Services
11 Instruction
This function is used for activities that deal directly with the interaction between teachers
and students. This function includes expenditures for direct classroom instruction and
other activities that deliver, enhance, or direct the delivery of learning situations to
students. Expenditures for the delivery of instruction in regular program basic skills,
bilingual and ESL programs, compensatory, remedial or tutorial programs, gifted and
talented education programs, and vocational education programs are classified in function
11. For example, function 11 includes classroom teachers, teacher assistants, and graders,
but does not include curriculum development (function 13) or principals (function 23).
12 Instructional Resources and Media Services
This function is used for expenditures that are directly and exclusively used for resource
centers, establishing and maintaining libraries, and other major facilities dealing with
educational resources and media. For example, function 12 includes librarians, but does
not include textbooks (function 11) or reference books in the classroom (also function 11).
13 Curriculum Development and Instructional Staff Development
This function is used for expenditures that are directly and exclusively used to aid
instructional staff in planning, developing, and evaluating the process of providing
learning experiences for students. This function also includes expenditures related to
research and development activities that investigate, experiment and/or follow-through
with the development of new or modified instructional methods, techniques, procedures,
service, etc. For example, this function includes staff that research and develop innovative,
new, or modified instruction and staff who prepare in-service training for instructional
staff, but does not include salaries of instructional staff when attending in-service training
(function 11 or 12).
20 Instructional and School Leadership
21 Instructional Leadership
This function encompasses those district-wide activities which have as their purpose
managing, directing, and supervising the general and specific instructional programs and
activities. For example, function 21 includes instructional supervisors but does not include
principals (function 23).
23 School Leadership
This function includes expenses for directing, managing, and supervising a school. It
includes salaries and supplies for the principal, assistant principal, and other administrative
and clerical staff, including attendance clerks.
Function Code – General Descriptions
39
30 Support Services – Student
31 Guidance, Counseling, and Evaluation Service
This function includes expenses for testing and assessing students' abilities, aptitudes, and
interests with respect to career and educational goals and opportunities. It includes
psychological services, testing, and counseling.
32 Social Work Services
This function includes expenditures which directly and exclusively promote and improve
school attendance. Examples include social workers, non-instructional home visitors,
home visitor aides, and truant officers.
33 Health Services
This function embraces the area of responsibility providing health services which are not a
part of direct instruction. It includes medical, dental, and nursing services.
34 Student Transportation
This function includes the cost of providing management and operational services for
transporting students to and from school. Function 34 includes transportation supervisors
and bus drivers, but does not include field trips (function 11) or student organization trips
(function 36).
35 Food Services
This function includes the management of the food service program at the schools and the
serving of meals, lunches, or snacks in connection with school activities. Function 35
includes cooks and food purchases, but does not include concession stands (function 36).
36 Co-curricular/Extracurricular Activities
This function incorporates those activities which are student and curricular related, but
which are not necessary to the regular instructional services. Examples of co-curricular
activities are scholastic competition, speech, debate, and band. Examples of extracurricular
activities are football, baseball, etc. and the related activities (drill team, cheerleading) that
exist because of athletics. Function 36 includes athletic salary supplements paid
exclusively for coaching, directing, or sponsoring extracurricular athletics, but does not
include salaries for teaching physical education (function 11).
40 Support Services - Administrative
41 General Administration
This function includes expenses incurred for the overall administrative responsibilities of
the District. It includes expenses for the school board, superintendent's office, personnel
services, and financial services.
40
50 Support Services - Non Student Based
51 Plant Maintenance
This function deals with expenditures made to keep buildings, grounds, and equipment
safe for use and in efficient working condition. This function also includes expenditures
associated with warehousing services. Examples include janitors, facility insurance
premiums, utilities, and warehouse personnel.
52 Security and Monitoring Services
This function is used for expenditures that are for activities to keep student and staff
surroundings safe, whether in transit to or from school, on a campus, or participating in
school-sponsored events at another location.
53 Data Processing Services
This function is for non-instructional data processing services which include computer
facility management, computer processing, systems development, analysis, and design.
Personal computers that are stand alone are to be charged to the appropriate function.
Peripherals including terminals and printers are also to be charged to the appropriate
function.
60 Ancillary Services
61 Community Services
This function encompasses all other activities of the school district, which are designed to
provide a service or benefit to the community as a whole or a portion of the community.
Examples would include recreation programs, natatorium, and parenting programs.
70 Debt Service
71 Debt Service
This function includes expenditures for bond and lease purchase principal, and all types of
interest paid.
41
Function Code Function Code Description
11 Instruction & Related
12 Instructional Resources & Media Sources (Library)
13 Curriculum Development & Inst. Staff Development
21 Instructional Leadership
23 School Leadership (Principal)
31 Guidance, Counseling & Evaluation Services
32 Social Work Services
33 Health Services
34 Student (Pupil) Transportation
35 Food Services
36 Cocurricular/extracurricular activities
41 General Administration (Superintendent/Board)
51 Plant Maintenance and Operations
52 Security and Monitoring Services
53 Data Processing Services
61 Community Services
71 Debt Service
Object Codes Object Code Description
61XX Payroll and Payroll Related
62XX Professional & Contracted Services
63XX Supplies and Materials
64XX Other Operating Costs
65XX Debt Service
Account Coding Matrix
42
Adopted Estimated Proposed
Actual Budget Budget Budget
FY 08/09 FY 09/10 FY 09/10 FY 10/11
REVENUES
Local Revenues 538,992$ 555,464$ 678,919$ 585,381$
Federal Program Revenues 56,134 119,976 198,427 143,029
State Program Revenues 3,163,129 3,637,109 3,665,938 3,964,371
Total Revenues 3,758,255$ 4,312,549$ 4,543,285$ 4,692,781$
EXPENDITURES (BY FUNCTION)
11 ‐ Instructional 2,120,372 2,452,007 2,617,152 2,595,282
12 ‐ Resources & Media 62,513 91,303 89,689 93,256
13 ‐ Staff Development 36,973 67,405 119,989 136,250
21 ‐ Instructional Leadership 11,660 92,034 94,189 133,415
23 ‐ School Leadership 179,554 210,441 253,382 298,877
31 ‐ Guidance & Counseling 163,575 153,340 156,431 164,757
33 ‐ Health Services 58,845 53,813 53,561 54,529
35 ‐ Food Services 15,448 9,018 8,716 9,700
36 ‐ CoCurricular/Extracurricular Activities 111,738 108,220 93,252 114,098
41 ‐ Administrative 527,000 272,714 303,049 279,300
51 ‐ Maintenance & Operations 279,485 300,156 300,048 546,560
53 ‐ Data Processing 88,720 140,404 167,128 158,851
61 ‐ Community Services 66,822 64,858 64,946 64,949
71 ‐ Debt Service 82,991 42,000 41,496 ‐
Total Expenditures 3,805,696 4,057,713 4,363,029 4,649,822
(47,441) 254,836 180,255 42,959
OTHER FINANCING SOURCES (USES)
79 ‐Other Resources 117,640 ‐ ‐ 86,432
89 ‐ Other Uses (200,000) (100,000) (100,000) (99,272)
Total Other Financing Sources (Uses)(82,360) (100,000) (100,000) (12,840)
NET CHANGES IN FUND BALANCE (129,801) 154,836 80,255 30,119
FUND BALANCE, BEGINNING 634,454 504,653 504,653 584,908
FUND BALANCE, ENDING 504,653 659,489 584,908 615,027
Assigned ‐ Uniform/Equipment Replacement 7,884 14,838
Assigned ‐ Hudson Foundation Grants 62,000
Assigned ‐ Athletics ‐
Assigned ‐ Technology/FF&E Replacement 100,000 100,000
FUND BALANCE, ASSIGNED 504,653$ 559,489$ 515,024$ 500,190$
Expenditures
For the Year Ending August 31, 2011
WESTLAKE ACADEMY
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
ALL GOVERNMENTAL FUNDS
43
Adopted Estimated Proposed
Actual Budget Budget Budget
FY 08/09 FY 09/10 FY 09/10 FY 10/11
General Fund 3,661,645$ 4,172,869$ 4,211,154$ 4,530,013$
Special Revenue Funds 96,610 139,680 332,131 162,768
Total Governmental Funds 3,758,255$ 4,312,549$ 4,543,285$ 4,692,781$
Adopted Estimated Proposed
Actual Budget Budget Budget
FY 08/09 FY 09/10 FY 09/10 FY 10/11
General Fund 3,709,086$ 3,918,033$ 4,092,898$ 4,425,054$
Special Revenue Funds 96,610 139,680 270,131 224,768
Total Governmental Funds 3,805,696$ 4,057,713$ 4,363,029$ 4,649,822$
Adopted Estimated Proposed
Actual Budget Budget Budget
FY 08/09 FY 09/10 FY 09/10 FY 10/11
61XXPayroll & Related Items 2,790,289$ 3,090,775$ 3,275,786$ 3,396,643$
62XXContracted Services 553,162 488,190 444,608 641,745
63XX Supplies & Materials 252,376 252,105 305,659 258,287
64XXOther Operating 126,878 184,643 295,481 353,147
65XXDebt Service 82,991 42,000 41,496 ‐
Total Expenditures 3,805,697$ 4,057,713$ 4,363,029$ 4,649,822$
All Governmental Funds ‐ Total Revenues
All Governmental Funds ‐ Total Expenditures
All Governmental Funds ‐ Expenditures by Object Code
WESTLAKE ACADEMY
SCHEDULE OF REVENUES AND EXPENDITURES BY OBECT CODE
ALL GOVERNMENTAL FUNDS
For the Year Ending August 31, 2011
44
All Fund Revenues and Expenditures
Fiscal Year 2010/2011
Westlake Academy
Local
Revenues
13%
Federal
Revenues
3%
State
Revenues
84%
Proposed Revenues
12 ‐Resources
& Media
2%
13 ‐Staff Development
1%
Other Operating Costs
5%
Proposed Expenditures
Local
Revenues
13%
Federal
Revenues
3%
State
Revenues
84%
Proposed Revenues
11 ‐Instructional
56%
12 ‐Resources
& Media
2%
13 ‐Staff Development
1%
Other Operating Costs
5%
23 ‐School Leadership
6%
31 ‐Guidance &
Counseling 4%
33 ‐Health Services
1%
35 ‐Food Services
0%
36 ‐CoCurricular/
Extracurricular Activities
3%
41 ‐Administrative
6%
51 ‐Maintenance &
Operations
12%
53 ‐Data Processing
3%
61 ‐Community Services
2%
71 ‐Debt Service
1%
Proposed Expenditures
45
Actual
Adopted
Budget
Estimated
Budget
Proposed
Budget
FY 08/09 FY 09/10 FY 09/10 FY 10/11
REVENUES
Local Revenues 538,992$ 555,464$ 564,919$ 585,381$
State Program Revenues 3,122,653 3,617,405 3,646,234 3,944,632
Total Revenues 3,661,645$ 4,172,869$ 4,211,154$ 4,530,013$
EXPENDITURES (BY FUNCTION)
11 ‐ Instructional 2,028,112$ 2,318,077$ 2,404,771$ 2,438,264$
12 ‐ Resources & Media 62,513 91,303 89,689 93,256
13 ‐ Staff Development 32,623 61,655 62,239 68,500
21 ‐ Instructional Leadership 11,660 92,034 94,189 133,415
23 ‐ School Leadership 179,554 210,441 253,382 298,877
31 ‐ Guidance & Counseling 163,575 153,340 156,431 164,757
33 ‐ Health Services 58,845 53,813 53,561 54,529
35 ‐ Food Services 15,448 9,018 8,716 9,700
36 ‐ CoCurricular/ Extracurricular Activities 111,738 108,220 93,252 114,098
41 ‐ Administrative 527,000 272,714 303,049 279,300
51 ‐ Maintenance & Operations 279,485 300,156 300,048 546,560
53 ‐ Data Processing 88,720 140,404 167,128 158,851
61 ‐ Community Services 66,822 64,858 64,946 64,949
71 ‐ Debt Service 82,991 42,000 41,496 ‐
Total Expenditures 3,709,086 3,918,033 4,092,898 4,425,054
(47,441)$ 254,836$ 118,255$ 104,959$
OTHER FINANCING SOURCES (USES)
79 ‐ Other Resources 117,640 ‐ ‐ 86,432
89 ‐ Other Uses (200,000) (100,000) (100,000) (99,272)
Total Other Financing Sources (Uses)(82,360) (100,000) (100,000) (12,840)
NET CHANGES IN FUND BALANCE (129,801) 154,836 18,255 92,119
FUND BALANCE, BEGINNING 634,454 504,653 504,653 522,908
FUND BALANCE, ENDING 504,653 659,489 522,908 615,027
Assigned ‐ Uniforms/Equipment Replacement 2,332 11,846 7,884 14,838
Assigned ‐ Athletics ‐ 3,252 ‐ ‐
Assigned ‐ Technology/FF&E Replacement ‐ 127,822 ‐ 100,000
FUND BALANCE, UNASSIGNED 502,321$ 519,821$ 515,024$ 500,190$
WESTLAKE ACADEMY
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GENERAL FUND
For the Year Ending August 31, 2011
Expenditures
46
197 198 199 Total
Transportation/AthleticGeneralGeneral
Parking FundActivitiesFund Fund
FY 10/11FY 10/11FY 10/11FY 10/11
REVENUES
Local Revenues 32,840$ 51,953$ 500,588$ 585,381$
State Program Revenues ‐ ‐ 3,944,632 3,944,632
Total Revenues 32,840 51,953 4,445,220 4,530,013
EXPENDITURES (BY FUNCTION)
11 ‐ Instructional 10,000 ‐ 2,428,264 2,438,264
12 ‐ Resources & Media ‐ ‐ 93,256 93,256
13 ‐ Staff Development ‐ ‐ 68,500 68,500
21 ‐ Instructional Leadership ‐ ‐ 133,415 133,415
23 ‐ School Leadership ‐ ‐ 298,877 298,877
31 ‐ Guidance & Counseling ‐ ‐ 164,757 164,757
33 ‐ Health Services ‐ ‐ 54,529 54,529
35 ‐ Food Services ‐ ‐ 9,700 9,700
36 ‐ CoCurricular/Extracurricular Activities 10,000 38,000 66,098 114,098
41 ‐ Administrative ‐ ‐ 279,300 279,300
51 ‐ Maintenance & Operations ‐ ‐ 546,560 546,560
53 ‐ Data Processing ‐ ‐ 158,851 158,851
61 ‐ Community Services ‐ ‐ 64,949 64,949
71 ‐ Debt Service ‐ ‐ ‐ ‐
Total Expenditures 20,000 38,000 4,367,054 4,425,054
12,840 13,953 78,166 104,959
OTHER FINANCING SOURCES (USES)
79 ‐ Other Resources ‐ ‐ 86,432 86,432
89 ‐ Other Uses (12,840) (7,000) (79,432) (99,272)
Total Other Financing Sources (Uses)(12,840) (7,000) 7,000 (12,840)
NET CHANGES IN FUND BALANCE ‐ 6,953 85,166 92,119
FUND BALANCE, BEGINNING ‐ 7,884 515,024 522,908
FUND BALANCE, ENDING ‐ 14,838 600,190 615,027
Assigned ‐ Uniform/Equipment Replacement ‐ 14,838 ‐ 14,838
Assigned ‐ Athletics ‐ ‐ ‐ ‐
Assigned ‐ Technology/FF&E Replacement ‐ ‐ 100,000 100,000
FUND BALANCE , UNASSIGNED ‐$ ‐$ 500,190$ 500,190$
Excess (Deficiency) of Revenues Over (Under)
Proposed FY 10/11
WESTLAKE ACADEMY
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GENERAL FUND
For the Year Ending August 31, 2011
47
Proposed
Budget
FY 10/11
REVENUES
Local Revenues 32,840$
State Program Revenues ‐
Total Revenues 32,840
EXPENDITURES (BY FUNCTION)
11 ‐ Instructional 10,000
12 ‐ Resources & Media ‐
13 ‐ Staff Development ‐
21 ‐ Instructional Leadership ‐
23 ‐ School Leadership ‐
31 ‐ Guidance & Counseling ‐
33 ‐ Health Services ‐
35 ‐ Food Services ‐
36 ‐ CoCurricular/Extracurricular Activities 10,000
41 ‐ Administrative ‐
51 ‐ Maintenance & Operations ‐
53 ‐ Data Processing ‐
61 ‐ Community Services ‐
71 ‐ Debt Service ‐
Total Expenditures 20,000
12,840
OTHER FINANCING SOURCES (USES)
79 ‐ Other Resources ‐
89 ‐ Other Uses (12,840)
Total Other Financing Sources (Uses)(12,840)
NET CHANGES IN FUND BALANCE ‐
FUND BALANCE, BEGINNING ‐
FUND BALANCE, ENDING ‐
Assigned ‐ Parking ‐
Assigned ‐ Transportation ‐
FUND BALANCE , UNASSIGNED ‐$
Excess (Deficiency) of Revenues Over (Under) Expenditures
WESTLAKE ACADEMY
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
TRANSPORTATION/PARKING FUND 197
For the Year Ending August 31, 2011
48
EstimatedProposedVariance
AuditedBudgetBudgetProposed to
FY 08/09FY 09/10FY 10/11Estimated
REVENUES
Local Revenues 32,743$ 44,953$ 51,953$ 7,000$
State Program Revenues ‐ ‐ ‐ ‐
Total Revenues 32,743 44,953 51,953 7,000
EXPENDITURES (BY FUNCTION)
11 ‐ Instructional ‐ ‐ ‐ ‐
12 ‐ Resources & Media ‐ ‐ ‐ ‐
13 ‐ Staff Development ‐ ‐ ‐ ‐
21 ‐ Instructional Leadership ‐ ‐ ‐ ‐
23 ‐ School Leadership ‐ ‐ ‐ ‐
31 ‐ Guidance & Counseling ‐ ‐ ‐ ‐
33 ‐ Health Services ‐ ‐ ‐ ‐
35 ‐ Food Services ‐ ‐ ‐ ‐
36 ‐ CoCurricular/Extracurricular Activities 30,411 39,401 38,000 (1,401)
41 ‐ Administrative ‐ ‐ ‐ ‐
51 ‐ Maintenance & Operations ‐ ‐ ‐ ‐
53 ‐ Data Processing ‐ ‐ ‐ ‐
61 ‐ Community Services ‐ ‐ ‐ ‐
71 ‐ Debt Service ‐ ‐ ‐ ‐
Total Expenditures 30,411 39,401 38,000 (1,401)
2,332 5,553 13,953 8,401
OTHER FINANCING SOURCES (USES)
79 ‐ Other Resources ‐ ‐ ‐ ‐
89 ‐ Other Uses ‐ ‐ (7,000) (7,000)
Total Other Financing Sources (Uses)‐ ‐ (7,000) (7,000)
NET CHANGES IN FUND BALANCE 2,332 5,553 6,953 1,401
FUND BALANCE, BEGINNING ‐ 2,332 7,884 5,553
FUND BALANCE, ENDING 2,332 7,884 14,838 6,953
Assigned ‐ Uniform/Equipment Replacement 2,332 7,884 14,838 6,954
Assigned ‐ Athletics ‐ ‐ ‐ ‐
FUND BALANCE , UNASSIGNED ‐$ ‐$ ‐$ ‐$
Excess (Deficiency) of Revenues Over (Under) Expenditures
WESTLAKE ACADEMY
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
ATHLETIC ACTIVITIES FUND 198
For the Year Ending August 31, 2011
49
Audited
Adopted
Budget
Estimated
Budget
Proposed
Budget
Variance Est
FY 09‐10
Proposed
FY 08/09 FY 09/10 FY 09/10 FY 10/11 FY 10/11
REVENUES
Local Revenues 506,249$ 507,458$ 519,966$ 500,588$ (19,378)$
State Program Revenues 3,122,653 3,617,405 3,646,234 3,944,632 298,397
Total Revenues 3,628,902$ 4,124,863$ 4,166,201$ 4,445,220$ 279,019$
EXPENDITURES (BY FUNCTION)
11 ‐ Instructional 2,028,112$ 2,318,077$ 2,404,771$ 2,428,264$ 23,493$
12 ‐ Resources & Media 62,513 91,303 89,689 93,256 3,567
13 ‐ Staff Development 32,623 61,655 62,239 68,500 6,261
21 ‐ Instructional Leadership 11,660 92,034 94,189 133,415 39,226
23 ‐ School Leadership 179,554 210,441 253,382 298,877 45,495
31 ‐ Guidance & Counseling 163,575 153,340 156,431 164,757 8,325
33 ‐ Health Services 58,845 53,813 53,561 54,529 968
35 ‐ Food Services 15,448 9,018 8,716 9,700 983
36 ‐ CoCurricular/Extracurricular Activities 81,327 54,319 53,851 66,098 12,246
41 ‐ Administrative 527,000 272,714 303,049 279,300 (23,749)
51 ‐ Maintenance & Operations 279,485 300,156 300,048 546,560 246,512
53 ‐ Data Processing 88,720 140,404 167,128 158,851 (8,277)
61 ‐ Community Services 66,822 64,858 64,946 64,949 3
71 ‐ Debt Service 82,991 42,000 41,496 ‐ (41,496)
Total Expenditures 3,678,675 3,864,132 4,053,498 4,367,054 313,556
(49,773)$ 260,731$ 112,703$ 78,166$ (34,537)$
OTHER FINANCING SOURCES (USES)
79 ‐ Other Resources 117,640 ‐ ‐ 86,432 86,432
89 ‐ Other Uses (200,000) (100,000) (100,000) (79,432) 20,568
Total Other Financing Sources (Uses)(82,360) (100,000) (100,000) 7,000 107,000
NET CHANGES IN FUND BALANCE (132,133) 160,731 12,703 85,166 72,463
FUND BALANCE, BEGINNING 634,454 502,321 502,321 515,024 12,703
FUND BALANCE, ENDING 502,321 663,052 515,024 600,190 85,166
Assigned ‐ Technology/FF&E Replacement ‐ 127,822 ‐ 100,000 100,000
FUND BALANCE, UNASSIGNED 502,321$ 516,569$ 515,024$ 500,190$ (14,834)$
Excess (Deficiency) of Revenues Over (Under)
Expenditures
WESTLAKE ACADEMY
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GENERAL FUND 199
For the Year Ending August 31, 2011
50
Audited Adopted Budget Estimated Budget Proposed Budget
Variance Est
FY 09/10 to
Proposed
FY 08/09 FY 09/10 FY 09/10 FY 10/11 FY 10/11
EXPENDITURES
11 Instructional
6100 Payroll 1,812,274$ 2,088,582$ 2,147,760$ 2,224,064$ 76,304$
6200 Contracted Services 41,131 48,300 43,023 48,450 5,427
6300 Supplies & Materials 169,244 160,895 181,923 120,500 (61,423)
6400 Other Operating 5,462 20,300 32,065 35,250 3,185
Total Instructional 2,028,112 2,318,077 2,404,771 2,428,264 23,493
12 Resource & Media
6100 Payroll 56,032 69,379 71,306 79,006 7,700
6200 Contracted Services 600 500 4,131 3,750 (381)
6300 Supplies & Materials 5,881 18,100 14,252 8,000 (6,252)
6400 Other Operating ‐ 3,324 ‐ 2,500 2,500
Total Resource & Media 62,513 91,303 89,689 93,256 3,567
13 Staff Development
6200 Contracted Services 3,250 ‐ 540 500 (40)
6300 Supplies & Materials ‐ ‐ 553 500 (53)
6400 Other Operating 29,373 61,655 61,146 67,500 6,354
Total Staff Development 32,623 61,655 62,239 68,500 6,261
21 Instructional Leadership
6100 Payroll 11,660 92,034 94,081 133,415 39,334
6400 Other Operating ‐ ‐ 108 ‐ (108)
Total Instructional Leadership 11,660 92,034 94,189 133,415 39,226
23 School Leadership
6100 Payroll 165,714 188,451 221,397 269,127 47,730
6200 Contracted Services 13,004 20,500 29,650 26,750 (2,900)
6300 Supplies & Materials 836 1,490 1,057 1,500 443
6400 Other Operating ‐ ‐ 1,278 1,500 222
Total School Leadership 179,554 210,441 253,382 298,877 45,495
31 Guidance & Counseling
6100 Payroll 132,615 119,280 121,624 119,257 (2,368)
6200 Contracted Services 30,238 32,100 34,224 42,500 8,276
6300 Supplies & Materials 722 1,645 583 2,500 1,917
6400 Other Operating ‐ 315 ‐ 500 500
Total Guidance & Counseling 163,575 153,340 156,431 164,757 8,325
33 Health Services
6100 Payroll 58,314 51,458 51,835 52,179 344
6200 Contracted Services ‐ 380 65 250 185
6300 Supplies & Materials 531 1,920 1,661 2,000 339
6400 Other Operating ‐ 55 ‐ 100 100
Total Health Services 58,845 53,813 53,561 54,529 968
35 Food Services
6100 Payroll 10,739 8,168 8,649 9,200 550
6300 Supplies & Materials 4,459 600 67 500 433
6400 Other Operating 250 250 ‐ ‐ ‐
Total Food Services 15,448 9,018 8,716 9,700 983
WESTLAKE ACADEMY
SCHEDULE OF EXPENDITURES BY FUNCTION & OBJECT CODE
GENERAL FUND 199
For the Year Ending August 31, 2011
51
Audited Adopted Budget Estimated Budget Proposed Budget
Variance Est
FY 09/10 to
Proposed
FY 08/09 FY 09/10 FY 09/10 FY 10/11 FY 10/11
WESTLAKE ACADEMY
SCHEDULE OF EXPENDITURES BY FUNCTION & OBJECT CODE
GENERAL FUND 199
For the Year Ending August 31, 2011
36 CoCurricular Activities
6100 Payroll 44,588 42,665 41,689 44,272 2,583
6200 Contracted Services 31,180 1,680 3,430 10,750 7,320
6300 Supplies & Materials 724 410 408 500 92
6400 Other Operating 4,834 9,564 8,324 10,576 2,252
Total CoCurricular Activities 81,326 54,319 53,851 66,098 12,246
41 Administrative
6100 Payroll 308,395 121,497 128,397 114,875 (13,522)
6200 Contracted Services 167,062 109,050 87,982 105,000 17,018
6300 Supplies & Materials 9,413 11,150 20,723 10,500 (10,223)
6400 Other Operating 42,130 31,017 65,947 48,925 (17,022)
Total Administrative 527,000 272,714 303,049 279,300 (23,749)
51 Maintenance & Operations
6100 Payroll 109 12,253 12,135 13,801 1,666
6200 Contracted Services 237,528 239,140 213,650 374,995 161,345
6300 Supplies & Materials 7,145 11,000 11,000 48,218 37,218
6400 Other Operating 34,703 37,763 63,263 109,546 46,283
tal Maintenance & Operations 279,485 300,156 300,048 546,560 246,512
53 Data Processing
6100 Payroll 67,076 112,174 113,538 129,471 15,933
6200 Contracted Services 18,885 16,800 16,800 16,800 ‐
6300 Supplies & Materials 2,760 10,580 35,440 10,580 (24,860)
6400 Other Operating ‐ 850 1,350 2,000 650
Total Data Processing 88,720 140,404 167,128 158,851 (8,277)
61 Community Services
6100 Payroll 66,822 64,858 64,946 64,949 3
Total Community Service 66,822 64,858 64,946 64,949 3
71 Debt Service
6500 Debt Service 82,991 42,000 41,496 ‐ (41,496)
Total Debt Service 82,991 42,000 41,496 ‐ (41,496)
‐
Total Expenditure 3,678,675$ 3,864,132$ 4,053,498$ 4,367,054$ 313,556$
Audited Adopted Budget Estimated Budget Proposed Budget Percentage of
FY 08/09 FY 09/10 FY 09/10 FY 10/11 Budget
EXPENDITURES BY OBJECT CODE
61XX ‐ Payroll & Related Items 2,734,336$ 2,970,799$ 3,077,359$ 3,253,614$ 75%
62XX ‐ Contracted Services 542,878 468,450 433,495 629,745 14%
63XX ‐ Supplies & Materials 201,717 217,790 267,667 205,298 5%
64XX ‐ Other Operating 116,752 165,093 233,481 278,397 6%
65XX ‐ Debt Service 82,991 42,000 41,496 ‐ 0%
Total Expenditures 3,678,675$ 3,864,132$ 4,053,498$ 4,367,054$ 100%
52
General Fund Revenues and Expenditures
Fiscal Year 2010/2011
Westlake Academy
Local Revenues
13%
State Revenues
87%
Proposed Revenues
Local Revenues
13%
State Revenues
87%
Proposed Revenues
Payroll &
Related
Items
77%
Contracted
Services
14%
Supplies &
Materials
5%
Other
Operating
Costs
5%
Debt
Service
1%
Proposed Expenditures
53
Westlake Academy
General Fund Expenditures by Function
Fiscal Year 2010/2011
11
Instructional
56%
12
Resources & Media
2%
23
School Leadership
6%
31
Guidance &
Counseling
4%
41
Administrative
51
Maintenance
& Operations
12%
53 Data Processing
3%
11
Instructional
56%
12
Resources & Media
2%
23
School Leadership
6%
31
Guidance &
Counseling
4%
41
Administrative
6%
51
Maintenance
& Operations
12%
53 Data Processing
3%
11 ‐Instructional 12 ‐Resources & Media
13 ‐Staff Development 21 ‐Instructional Leadership
23 ‐School Leadership 31 ‐Guidance & Counseling
33 ‐Health Services 35 ‐Food Services
36 ‐CoCurricular/Extracurricular Activities 41 ‐Administrative
51 ‐Maintenance & Operations 53 ‐Data Processing
61 ‐Community Services 71 ‐Debt Service
54
Fiscal Year 2010/2011
Westlake Academy
General Fund Expenditures by Object Code
62XX
Contracted
Services
14%
63XX
Supplies & Materials
5%
64XX
Other
Operating
7%
65XX
Debt
Service
0%
61XX ‐Payroll &
Related Items
74%
62XX
Contracted
Services
14%
63XX
Supplies & Materials
5%
64XX
Other
Operating
7%
65XX
Debt
Service
0%
55
Fiscal YearRevenuesinc %Expendituresinc %Net Change
FY 03/04 actual $1,094,608 $1,068,857 $25,751
FY 04/05 actual $1,831,89867%$1,612,19851%$219,700
FY 05/06 actual $2,407,52631%$2,211,89737%$195,629
FY 06/07 actual $2,879,53120%$2,615,41118%$264,120
FY 07/08 actual $3,240,449 13%$3,373,95329%‐$133,504
FY 08/09 actual $3,661,645 13%$3,709,08610%‐$47,441
FY 09/10 estimated$4,211,154 15%$4,092,89810%$118,255
FY 10/11 proposed$4,530,013 8%$4,425,0548%$104,959
$23,856,824 $23,109,355 $747,469
Westlake Academy
General Fund Revenue and Expenditure Comparison
Fiscal Year 03/04 through 10/11
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
FY 03/04
actual
FY 04/05
actual
FY 05/06
actual
FY 06/07
actual
FY 07/08
actual
FY 08/09
actual
FY 09/10
estimated
FY 10/11
proposed
Revenues Expenditures
56
AdoptedEstimated
Actual Budget BudgetFY 10/11
FY 08/09FY 09/10FY 09/10Proposed
REVENUES
Federal Program Revenues 40,476$ 119,976$ 198,427$ 143,029$
Local Program Revenues ‐ ‐ 114,000 ‐
State Program Revenues 56,134 19,704 19,704 19,739
Total Revenues 96,610 139,680 332,131 162,768
EXPENDITURES (BY FUNCTION)
11 ‐ Instructional 92,260 133,930 212,381 157,018
13 ‐ Staff Development 4,350 5,750 57,750 67,750
Total Expenditures 96,610 139,680 270,131 224,768
‐ ‐ 62,000 (62,000)
NET CHANGES IN FUND BALANCE ‐ ‐ 62,000 (62,000)
FUND BALANCE, BEGINNING ‐ ‐ ‐ 62,000
FUND BALANCE, ENDNG ‐ ‐ 62,000 ‐
Assigned ‐ Hudson Foundation Grant 62,000 ‐
FUND BALANCE, ENDNG (Unassigned)‐$ ‐$ ‐$ ‐$
Excess (Deficiency) of Rev Over (Under) Exp
WESTLAKE ACADEMY
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
ALL SPECIAL REVENUE FUNDS
For the Year Ending August 31, 2011
57
Title XIVAdvanced Total
IDEA‐B IDEA‐B SFSF Fund Placement Hudson Special
Formula Preschool (ARRA) Incentives Technology Foundation Revenue
224225266397 411481 Funds
REVENUES
Federal Program Revenues 69,097$ 1,796$ 72,136$ ‐$ ‐$ ‐$ 143,029$
Local Program Revenues ‐ ‐ ‐ ‐ ‐ ‐ ‐
State Program Revenues ‐ ‐ ‐ 5,750 13,989 ‐ 19,739
Total Revenues 69,097 1,796 72,136 5,750 13,989 ‐ 162,768
EXPENDITURES (BY FUNCTION)
11 ‐ Instructional 69,097 1,796 72,136 ‐ 13,989 ‐ 157,018
13 ‐ Staff Development ‐ ‐ ‐ 5,750 ‐ 62,000 67,750
Total Expenditures 69,097 1,796 72,136 5,750 13,989 62,000 224,768
‐ ‐ ‐ ‐ ‐ (62,000) (62,000)
NET CHANGES IN FUND BALANCE ‐ ‐ ‐ ‐ (62,000) (62,000)
FUND BALANCE, BEGINNING ‐ ‐ ‐ ‐ 62,000 62,000
FUND BALANCE, ENDNG ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$
61006100610064006300
For the Year Ending August 31, 2011
Excess (Deficiency) of Rev Over (Under) Exp
WESTLAKE ACADEMY
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
ALL SPECIAL REVENUE FUNDS
58
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59
Board of Trustees
Town Manager/
Superintendent
Secondary
Principal
MYP/DP
Coordinators
Secondary
Counselor
Secondary Teachers
Secondary
Special Ed.
Administrative
Coordinator
Office Staff
School Nurse
Dining Hall
Primary Principal
PYP Coordinator
Primarary Counselor /
TAKS Coordinator
Primary Teachers
Primary
Special Ed.
Special Ed.
Instructional Aides
Strings Program
Librarian
Athletic Director
Westlake Academy Organizational Chart
60
Fiscal Year
FY 03/04
Actual
FY 04/05
Actual
FY 05/06
Actual
FY 06/07
Actual
FY 07/08
Actual
FY 08/09
Actual
FY 09/10
Actual
FY 10/11
Proposed
Classes Served1-6K-7K-8K-9K-10K-11K-12K-12
Head of School1.00 1.00 1.00 1.00 1.00 1.00 - -
Primary Principal - - - - 1.00 1.00 1.00 1.00
Secondary Principal - - - - - 0.50 1.00 1.00
Admin Coordinator - - - - - 1.00 1.00 1.00
PYP Coordinator - 0.30 0.50 0.50 1.00 0.50 0.60 0.60
MYP Coordinator - - 0.40 0.40 0.40 0.50 0.50 1.00
DP Coordinator - - - - - 0.50 0.50 0.40
Primary - K - 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Primary 1 2.00 2.00 2.00 2.00 2.00 2.00 1.70 2.00
Primary 2 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Primary 3 2.00 2.00 3.00 2.00 2.60 2.00 2.00 2.00
Primary 4 2.00 1.70 2.50 2.00 2.00 2.00 2.00 2.00
Primary 5 2.00 2.00 2.00 2.00 2.00 2.00 2.00 3.00
Primary 6 2.00 2.00 2.00 2.00 2.00 2.00 1.80 2.00
Primary - PE 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.50
Primary - Reading Spec.l- - - - - - 0.40 1.00
Primary - Art 0.80 0.80 0.60 0.80 0.80 0.80 0.90 1.00
Primary - Music 0.80 0.40 0.80 1.00 1.00 1.00 1.00 1.00
Primary - Spanish 1.00 1.00 1.00 1.00 1.00 1.00 1.20 1.00
Primary - IT - - - - - - - 0.40
Special Education - - 1.00 2.00 2.00 2.00 2.00 2.00
SdAt 060 060 100 080 100 085
Position Summary
Secondary - Art - - 0.60 0.60 1.00 0.80 1.00 0.85
Secondary English- - 1.00 2.00 2.00 2.00 3.00 3.00
Secondary - Humanities - 1.00 0.60 0.60 1.60 2.00 3.10 3.00
Secondary - IT - - - 0.30 0.30 0.30 0.30 0.20
Secondary - Math - 0.40 1.00 1.50 2.00 1.75 2.00 2.00
Secondary - Science - 0.50 1.00 1.50 2.00 2.50 3.25 3.60
Secondary - Spanish - 0.40 0.50 1.00 1.00 1.50 2.00 2.60
Secondary - PE - 0.25 0.40 1.00 1.00 1.25 0.72 1.50
Secondary - CAS - - - - 0.60 - 0.25 -
Strings Staff - - - - - - 0.25 0.25
Librarian - 0.40 1.00 1.00 1.00 1.00 1.00 1.00
Counselors - 0.50 1.00 1.00 1.50 2.00 2.00 2.00
Athletic Director - - - - - - 0.75 -
Teaching Aides - 0.60 - - - 2.50 3.70 3.75
Nurse 1.00 0.50 0.50 0.50 0.50 1.00 1.00 1.00
IT - - - 0.70 0.70 0.70 1.70 1.80
Asst. to Head of School 1.00 1.00 1.00 1.00 1.00 - - -
Registrar - 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Office Aide - - 0.60 0.60 1.60 2.60 3.00 3.00
Lunchroom Personnel 0.25 0.40 0.40 0.40 0.40 0.40 0.40 0.40
Day Porter - - - - - - 0.60 0.60
Total Positions 18.85 25.15 32.40 36.40 43.00 48.10 55.62 59.45
Position Summary
61
Westlake Academy
Proposed 2010‐2011 Salary Scale
Classroom Teachers, Counselors, Librarians, and Nurses
Y
e
a
r
s
E
x
p
e
r
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e
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e
1
0
-
1
1
S
a
l
a
r
y
(
1
8
7
d
a
y
s
)
0 45,044$
1 45,194$
2 45,544$
3 45,894$
4 46,244$
5 46,694$
6 47,144$
7 47,594$
8 48,044$
9 48,494$
10 48,994$
11 49,494$
12 49,994$
13 50,494$
14 50,994$
15 51,544$
16 52,094$
17 52,644$
18 53,194$
19 53,744$
20 54,344$
21 54,944$
22 55,544$
23 56,144$
24 56,744$
25 57,594$
26 58,444$
27 59,294$
28 60,144$
29 60,994$
30 61,844$
62
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18
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De
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63
I. STATEMENT OF PURPOSE
The broader intent of the following Fiscal and Budgetary Policy Statements is to enable the Academy
to achieve a long-term stable and positive financial condition. The watchwords of the Academy’s
financial management include integrity, prudent, stewardship, planning, accountability, and full
disclosure.
The more specific purpose is to provide guidelines to the Finance Director in planning and directing
the Academy’s day-to-day financial affairs and in developing recommendations to the Academy
Superintendent or his designate and Academy Board of Trustees.
The scope of these policies generally span, among other issues, accounting, purchasing, auditing,
financial reporting, internal controls, operating budgeting, revenue management, cash and investment
management, expenditure control, asset management, debt management, and planning concepts, in
order to:
• Present fairly and with full disclosure the financial position and results of the financial
operations of the Academy in conformity with generally accepted accounting principles
(GAAP), and
• Determine and demonstrate compliance with finance related legal and contractual issues in
accordance with provisions of the Texas Local Government Code and other pertinent legal
documents and mandates.
The Academy Board of Trustees will annually review and approve the Fiscal and Budgetary Policy
Statements as part of the budget process.
II. SUMMARY OF POLICY INTENDED OUTCOMES
This policy framework mandates pursuit of the following fiscal objectives:
Operating Budget: Prepare conservatively, estimate revenues, present and adopt the Academy’s
annual operating plan.
Revenues Management: Design, maintain and administer a revenue system that will assure a reliable,
equitable, diversified and sufficient revenue stream to support desired Academy services.
Expenditure Control: Identify priority services, establish appropriate service levels and administer
the expenditure of available resources necessary to assure fiscal stability and the effective and efficient
delivery of services.
Fund Balance: Maintain the fund balance of the various operating funds at levels sufficient to protect
the Academy’s creditworthiness as well as its financial position from emergencies.
Fiscal and Budgetary Policies
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Intergovernmental Relationships: Coordinate efforts with other agencies to achieve common policy
objectives, share the cost of providing governmental services on an equitable basis and support
favorable legislation at the State and Federal level.
Grants: Seek, apply for and effectively administer Federal, State, and foundation grants-in-aid which
address the Academy’s current priorities and policy objectives.
Fiscal Monitoring: Prepare and present regular reports that analyze, evaluate, and forecast the
Academy’s financial performance and economic condition.
Financial Consultants: With available resources, seek out and employ the assistance of qualified
financial advisors and consultants in the management and administration of the Academy’s financial
functions.
Accounting, Auditing, and Financial Reporting: Comply with prevailing Federal, State and local
statues and regulations. Conform to generally accepted accounting principles as promulgated by the
Government Accounting Standards Board (GASB), the American Institute of Certified Public
Accountants (AICPA), and the Government Finance Officers Association (GFOA).
Internal Controls: To establish and maintain an internal control structure designed to provide
reasonable assurances that the Academy’s assets are safeguarded and that the possibilities for material
errors in the Academy’s financial records are minimized.
III. OPERATING BUDGET
• Preparation – Budgeting is an essential element of the financial planning, control, and
evaluation process. The “operating budget” is the Academy’s annual financial operating plan
related to educational service instructional costs.
o The Academy operating budget is legally required to include the Academy’s General,
Debt Service, and Food Service Funds. Currently, Westlake Academy only has one
fund, the General Fund, which must be legally adopted annually. The Academy budgets
the Special Revenue Funds for informational purposes only.
o Information to be prepared includes documentation related to Service Level Adjustments
(SLAs) for increases to existing service levels or additional services, position control
schedules, general and administrative cost implications, etc. will be submitted and
reviewed during the budget process.
o SLA’s related to new position requests will include an assessment of their impact on
additional internal services necessary to support these positions as it relates to General &
Administrative (G&A) charges in the Academy budget ( subject to funding availability)
to fund these costs.
o A budget preparation calendar and timetable will be established and followed in
accordance with State law.
65
• Revenue Estimates for Budgeting - In order to maintain a stable level of services, the
Academy shall use a conservative, objective, and analytical approach when preparing
revenue estimates. The process shall include analysis of probable economic changes and their
impacts on revenues, number of students, and trends in revenues. It will also include an
assessment of the State legislative environment related to public charter school funding
levels. This approach should reduce the likelihood of actual revenues falling short of budget
estimates during the year and should avoid mid-year service reductions.
• Balanced Budget – Current operating revenues, including State “Foundation” funds, donations
and grants which can be used for operations, will be sufficient to support current operating
expenditures. Annually recurring revenue will not be less than annually recurring operating
budget expenditures.
• Proposed Budget Content and Process – A proposed budget shall be prepared by the
Superintendent or his designate with the participation of the Academy’s Leadership Team,
Finance Director and Academy staff, and then submitted to the Superintendent for review.
Following Superintendent review, the proposed budget will be presented to the Board for its
consideration.
o The proposed budget shall include five basic segments for review and evaluation: (1)
personnel costs, (2) base budget for operations and maintenance costs, (3) service level
adjustments for increases of existing service levels or additional services, (4) revenues,
and (5) General Administrative (G&A) costs.
o The proposed budget review process shall include Board of Trustees review of each of
the four segments of the proposed budget and a public hearing to allow for citizen
participation in the budget preparation process.
o Concurrent with the Academy budget preparation, Town staff will identify and provide to
the Board all direct Academy expenses contained in the Town’s municipal budget.
o The proposed budget process shall allow sufficient time to provide review as well as
address policy and fiscal issues by the Board of Trustees.
o A copy of the proposed budget shall be filed with the Town Secretary when it is
submitted to the Board of Trustees as well as placed on the Academy’s website.
• Budget Adoption - Upon the determination and presentation of the final iteration of the
proposed budget document as established by the Board of Trustees, a public hearing will be set
and publicized. The Board will subsequently consider a resolution which, if adopted, such
budget becomes the Academy’s Annual Budget. The adopted budget will be effective for the
fiscal year beginning September 1.
• Budget Amendments – The Superintendent or his designate and Finance Department will
monitor all financial operations. A school district must amend the official budget before
exceeding a functional expenditure category, i.e., instruction, administration, etc. in the total
budget. The budget team will decide whether to proceed with the budget amendment and, if so,
66
will then present the request to the Board of Trustees. If the Board decides a budget
amendment is necessary, the amendment is adopted in resolution format and the necessary
budgetary changes are then made.
• Planning – The budget process will be coordinated so as to identify major policy issues for the
Board of Trustees by integrating it into the Board’s overall strategic planning process for the
Academy.
• Reporting - Monthly financial reports will be prepared by the Finance Department and
distributed to the Superintendent or his designate. Information obtained from financial reports
and other operating reports is to be used by personnel to monitor and control the budget.
Summary financial reports will be presented to the Board quarterly.
IV. REVENUES MANAGEMENT
A. REVENUE DESIGN PARAMETERS. The Academy will strive for the following optimum
characteristics in its revenue system:
• Simplicity - The Academy, where possible and without sacrificing accuracy, will strive to
keep the revenue system simple in order to reduce costs, achieve transparency, and increase
parent and citizen understanding of Academy revenue sources.
• Certainty - A thorough knowledge and understanding of revenue sources increases the
reliability of the revenue system.
• Administration - The benefits of a revenue source will exceed the cost of administering that
revenue. Every effort will be made for the cost of administration to be reviewed annually
for cost effectiveness as a part of the indirect cost and cost of service analysis.
• Equity - The Academy shall make every effort to maintain equity in its revenue system: i.e.
the Academy shall seek to minimize or eliminate all forms of subsidization between entities.
• Adequacy, Diversification and Stability – To the extent practical, the Academy shall
attempt to achieve a balance in its revenue system. The Academy shall also strive to
maintain a balanced and diversified revenue system to protect the Academy from
fluctuations in any one source due to changes in local economic conditions which adversely
impact that source.
B. REVENUE SOURCES. Currently, Westlake Academy receives revenue to fund its annual
operating budget from the following sources:
• State Education funding
• State and Federal Grants
• General Donations – The Academy recognizes that private donations comprise a significant
part of the Westlake Academy budget. All funds received will become part of the budget and
be subject to appropriation for Academy general operations.
67
• General Donations – (continued)
o Westlake Academy Foundation
o House of Commons
o Westlake Academy Athletic Club
o Local Merchants
• Specific Purpose Donations – Funds donated for a specific purpose
C. REVENUE MONITORING. Revenues as they are received will be regularly compared to
budgeted revenues and variances will be investigated. This process will be summarized in the
appropriate budget report.
V. EXPENDITURE CONTROL
• Appropriations – The point of budgetary control is at the function level in the General
Fund and Special Revenue Funds. When budget adjustments among functions are
necessary, they must be approved by the Board of Trustees.
• Current Funding Basis - The Academy shall operate on a current funding basis.
Expenditures shall be budgeted and controlled so as not to exceed current revenues plus the
planned use of fund balance accumulated through prior year savings. (The use of fund
balance shall be guided by the Fund Balance/Retained Earnings Policy Statements.)
• Avoidance of Operating Deficits - The Academy shall take immediate corrective actions
if at any time during the fiscal year expenditure and revenue re-estimates are such that an
operating deficit (i.e., projected expenditures in excess of projected revenues) is projected
at year-end. Corrective actions can include a hiring freeze, expenditure reductions, or use of
fund balance within the Fund. Use of fund balance must be recommended by the
Superintendent and approved by the Board of Trustees.
Expenditure deferrals into the following fiscal year, short-term loans, or use of one-
time revenue sources shall be avoided to balance the budget.
• Periodic Program Reviews - The Superintendent or his designate shall undertake periodic
staff and third-party reviews of Academy programs for both efficiency and effectiveness.
Where appropriate, privatization and contracting with other governmental agencies will be
evaluated as alternative approaches to service delivery. Service delivery which is
determined to be inefficient and/or ineffective shall be reduced in scope or eliminated.
• General and Administrative (G&A) Charges – To the extent practical, an annual
analysis of G&A charges will be performed and funding allocated, if available. The
analysis shall involve an objective consideration of the service demands currently being
met by municipal staff to support Academy operations and a determination of factors that
will continue to affect and increase the time needed for the performance of these services.
For example, new Academy staff requires additional support staff time to perform tasks
related to insurance, payroll, etc. Where feasible, G&A costs will be charged to all funds
68
for services of indirect general overhead costs, which may include general administration,
finance, facility use, personnel, technology, engineering, legal counsel, and other costs as
deemed appropriate. The charges will be determined through an indirect cost allocation
study following accepted practices and procedures.
• Purchasing - The Academy shall make every effort to maximize any discounts offered by
creditors/vendors. Staff shall also use purchasing cooperatives as well as competitive
bidding in accordance with State law to attain the best possible price on goods and services.
• Prompt Payment - All invoices will be paid within 30 days of receipt in accordance with
the prompt payment requirements of State law.
• Salary - The Academy shall strive to maintain competitive salary levels for faculty and
staff. A salary survey will be conducted annually, sampling surrounding Independent
School Districts and Charter Schools, to create a comparison. The Academy will strive to
maintain salary levels within three percent (3%) of the median of surveyed schools.
VI. FUND BALANCE
• General Fund Undesignated Fund Balance - The Academy shall strive to maintain the
General Fund undesignated fund balance at 45 days of operation.
• Use of Fund Balance - Fund Balance will be targeted to only be used with Board approval
and can be only be used for the following: emergencies, non-recurring expenditures, such
as technology/FF&E (furniture, fixtures and equipment), or major capital purchases that
cannot be accommodated through current year savings. Should such use reduce the
balance below the appropriate level set as the objective for that fund, recommendations will
be made on how to restore it. Use of fund balance will be recommended by the
Superintendent and must be approved by the Board of Trustees.
VII. INTERGOVERNMENTAL RELATIONSHIPS
• Inter-local Cooperation in Delivering Services - In order to promote the effective and
efficient delivery of services, the Academy shall actively seek to work with other local
entities in joint purchasing consortium, sharing facilities, sharing equitably the costs of
service delivery, and developing joint programs to improve service to it’s students.
• Legislative Program - The Academy shall cooperate with other entities to actively oppose
any state or federal regulation or proposal that mandates additional Academy programs or
services and does not provide the funding to implement them. Conversely, as appropriate, the
Academy shall support legislative initiatives that provide additional funding.
VIII. GRANTS
• Grant Guidelines - The Academy shall apply, and facilitate the application by others, for
only those grants that are consistent with the objectives and high priority needs previously
69
identified by Academy Board of Trustees. The potential for incurring ongoing costs, to
include the assumption of support for grant funded positions from local revenues, will be
considered prior to applying for a grant.
• Grant Review - All grant submittals shall be reviewed for their cash match requirements,
their potential impact on the operating budget, and the extent to which they meet the
Academy's policy objectives. If there are cash match requirements, the source of funding
shall be identified prior to application. Staff will focus on one-time grants to avoid long-term
implications related to additional expenditures in future years.
• Grant Program Termination - The Academy shall terminate grant funded programs and
associated positions when grant funds are no longer available unless alternate funding is
identified and obtained.
IX. FISCAL MONITORING
• Financial Status and Performance Reports - Quarterly reports comparing expenditures
and revenues to current budget, noting the status of fund balances to include dollar amounts
and percentages, and outlining any remedial actions necessary to maintain the Academy's
financial position shall be prepared for review by the Superintendent and the Board of
Trustees. Student roster information will also be included in the quarter reports submitted to
the Board of Trustees.
• Compliance with Board Policy Statements - The Fiscal and Budgetary Policies will be
reviewed annually by the Board of Trustees and updated, revised or refined as deemed
necessary. Policy statements adopted by the Board of Trustees are guidelines, and
occasionally, exceptions may be appropriate and required. However, exceptions to stated
policies will be specifically identified, and the need for the exception will be documented and
fully explained.
X. FINANCIAL CONSULTANTS
To employ the assistance of qualified financial advisors and consultants as needed in the management
and administration of the Academy's financial functions. These areas include but are not limited to
investments, debt administration, financial accounting systems, program evaluation, and financial
impact modeling. Advisors shall be selected on a competitive basis using objective questionnaires and
requests for proposals based on the scope of the work to be performed.
XI. ACCOUNTING, AUDITING, AND FINANCIAL REPORTING
To comply with prevailing local, state, and federal regulations relative to accounting, auditing, and
financial reporting. Accounting practices and financial reporting shall conform to generally accepted
accounting principles as promulgated by the Governmental Accounting Standards Board (GASB), the
American Institute of Certified Public Accountants, (AICPA), and the Government Finance Officers
Association (GFOA). The Board shall select an independent firm of certified public accountants to
perform an annual audit of all operations. Required Texas Education Agency (TEA) account coding
70
will be used for all revenue and expenditure reporting.
• Accounting - Currently, the Education Service Center (Region XI) books all revenues and
expenditures, and prepares bank reconciliations. Academy staff is responsible for all coding
and approval of expenditures and revenues. Documentation and coding of deposits are
forwarded to the Town’s Finance Department for review and preparation of deposit slips.
Town’s Finance Director and staff are responsible for review and transfer of invoices and
other documentation to the Service Center for processing as well as the physical deposit of
funds. It is the responsibility of the Superintendent or his designate and Academy staff to
review the monthly reports for any discrepancies and report to the Town’s Finance Director
for analysis and re-class of questioned bookings, if appropriate.
• External Auditing - Academy will be audited annually by outside independent accountants
(auditors). The auditors must be a CPA firm and must demonstrate significant experience in
the field of local government auditing. They must conduct the Academy’s audit in
accordance with generally accepted auditing standards. The auditors’ report on Academy’s
financial statements will be completed within a timely period of the Academy’s fiscal year-
end. The auditor will jointly review the management letter with the Academy Board of
Trustees, if necessary. In conjunction with this review, the Finance Director shall respond in
writing to the Academy Board of Trustees regarding the auditor’s Management Letter,
addressing the issued contained therein. The Academy will not require auditor rotation, but
will circulate request for proposal for audit services on a periodic basis as deemed
appropriate.
• Responsibility of Auditor to Academy Board of Trustees - The auditor is retained by and
is accountable directly to the Academy Board of Trustees and will have access to direct
communication with the Academy Board of Trustees if the Academy Staff is unresponsive to
auditor recommendations or if the auditor considers such communication necessary to fulfill
its legal and professional responsibilities.
• Internal Financial Reporting - The Finance Department will prepare internal financial
reports sufficient for management to plan, monitor, and control Academy’s financial affairs.
XII. INTERNAL CONTROLS
• Written Procedures - Whenever possible, written procedures will be established and
maintained by the Finance Director and utilized by all Academy personnel for all functions
involving purchasing, cash handling and/or accounting throughout the Academy. These
procedures will embrace the general concepts of fiscal responsibility set forth in this policy
statement.
• Academy Staff Responsibilities - The Superintendent or his designate, in consultation with
the Finance Director, will be responsible for ensuring that appropriate internal controls are
followed throughout the Academy, that all directives or internal controls are implemented,
and that all independent auditor internal control recommendations are addressed. Staff will
develop and periodically update written internal control procedures.
71
XIII. ASSET MANAGEMENT
• Investments – The Finance Director shall promptly invest all Academy funds with the
depository bank in accordance with the provisions of the current Bank Depository Agreement
or in any negotiable instrument authorized by the Academy Board of Trustees. The
Academy Board of Trustees has formally approved a separate Investment Policy for the
Academy of Westlake that meets the requirements of the Public Funds Investment Act (PFIA),
Section 2256 of the Texas Local Government Code. The Academy’s investment practices will
be conducted in accordance with this policy. The Finance Director will issue quarterly reports
on investment activity to the Academy Board of Trustees.
• Cash Management - Academy’s cash flow will be managed to maximize the cash available to
invest. Such cash management will entail the centralization of cash collections, where feasible,
including field trips, and other collection offices as appropriate. Periodic review of cash flow
position will be performed to determine performance of cash management and conformance to
investment policies. The underlying theme will be that idle cash will be invested with the
intent to (1) safeguard assets, (2) maintain liquidity, and (3) maximize return.
• Fixed Assets and Inventory - Such assets will be reasonably safeguarded and properly
accounted for and prudently insured. The fixed asset inventory will be updated regularly.
• Capital Assets – Currently all capital assets of Westlake Academy are owned and purchased
by the Town of Westlake. In subsequent years, additional asset purchases may be paid with
Westlake Academy funds.
• Capitalization Criteria – For purposes of budgeting and accounting classification, the
following criteria must be capitalized:
o The asset is owned by the Westlake Academy
o The expected useful life of the asset must be longer than one year, or extend the life on an
identifiable existing asset by more than one year
o The original cost of the asset must be at least $5,000
o The asset must be tangible
o On-going repairs and general maintenance are not capitalized
o New Purchases – All costs associated with bringing the asset into working order will be
capitalized as a part of the asset cost. This includes start up costs, engineering or
consultant type fees as part of the asset cost once the decision or commitment to purchase
the asset is made. The cost of land acquired should include all related costs associated
with its purchase
o Imp rovements and Replacement – Improvement will be capitalized when they extend the
original life of an asset or when they make the asset more valuable than it was originally.
The replacement of assets components will normally be expenses unless they are a
significant nature and meet all the capitalization criteria.
• Computer System/Data Security – The Academy shall provide security of its
computer/network system and data files through physical and logical security systems that
will include, but are not limited to: network user authentications, firewalls, content filtering,
spam/virus protection, and redundant data backup.
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I. POLICY STATEMENT
It is the policy of the Westlake Academy (the “Academy") that the administration of its
funds and the investment of those funds shall be handled as its highest public trust.
Investments shall be made in a manner which will provide the maximum security of
principal invested through limitations and diversification while meeting the daily cash
flow needs of the Academy and conforming to all applicable state and Academy statutes
governing the investment of public funds. The receipt of a market rate of return will be
secondary to the requirements for safety and liquidity.
It is the intent of the Academy to be in complete compliance with local law and the Texas
Public Funds Investment Act (the "Act", Texas Government Code 2256). The earnings
from investments will be used in a manner that best serves the public trust and interests of
the Academy.
II. SCOPE
This Investment Policy applies to all the financial assets and funds held of the Academy.
Any new funds created by the Academy will be managed under the provisions of this
Policy unless specifically exempted by the Academy Board of Trustees and this Policy.
III. OBJECTIVES AND STRATEGY
It is the policy of the Academy that all funds shall be managed and invested with four
primary objectives, listed in order of their priority: safety, liquidity, diversification and
yield. These objectives encompass the following.
Safety of Principal
Safety of principal is the foremost objective of the Academy. Investments shall be
undertaken in a manner that seeks to insure the preservation of capital in the overall
portfolio. The suitability of each investment decision will be made on the basis of safety.
Liquidity
The AAccaaddeemmyy's investment portfolio will remain sufficiently liquid to enable it to meet all
operating requirements which might be reasonably anticipated. Investment decisions will
be based on cash flow analysis of anticipated expenditures.
Diversification
Diversification is required in the portfolio's composition. Diversification of the portfolio
will include diversification by maturity and market sector and will include the use of a
number of broker/dealers or banks for diversification and market coverage. Competitive
bidding will be used on each sale or purchase.
IInnvveessttmmeenntt PPoolliiccyy
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Yield
The Academy's investment portfolio shall be designed with the objective of attaining a
reasonable market yield, taking into account the Academy's risk constraints and cash flow
needs. A reasonable market yield for the portfolio will be defined as the six month (180
day) U.S. Treasury Bill which compares to the portfolio's maximum weighted average
maturity of six months.
The authorized investment purchased will be of the highest credit quality and
marketability supporting the objectives of safety and liquidity. Securities, when not
matched to a specific liability, will be short term to provide adequate liquidity. The
portfolio shall be diversified to protect against market and credit risk in any one sector.
The maximum weighted average maturity of the portfolio will be no more that 180 days
and the maximum stated maturity of any security will not exceed two years. The funds
are combined for investment purposes but the unique needs of all the funds in the
portfolio are recognized and represented.
Effective cash management is recognized as essential to good fiscal management. Cash
management is defined as the process of managing monies in order to ensure maximum
cash availability. The Academy shall maintain a cash management program which
includes timely collection of accounts receivable, prudent investment, disbursement of
payments within invoice terms and the management of banking services.
IV. LEGAL LIMITATIONS, RESPONSIBILITIES AND AUTHORITY
Specific investment parameters for the investment of public funds in Texas are stipulated
in the Public Funds Investment Act, Chapter 2256, Texas Government Code, (the "Act").
The Act is attached as Exhibit A.
The Public Funds Collateral Act, Chapter 2257, Texas Government Code, specifies
collateral requirements for all public funds deposits. The Collateral Act is attached as
Exhibit B.
The Interlocal Cooperation Act, Chapter 791, Texas Government Code, authorizes local
governments in Texas to participate in a Texas investment pool established thereunder.
V. DELEGATION OF INVESTMENT AUTHORITY
The Finance Director of the Town of Westlake, acting on behalf of the Board of Trustees,
is designated as the Investment Officer of the Academy and is responsible for all
investment management decisions and activities. The Board of Trustees is responsible
for considering the quality and capability of staff, investment advisors, and consultants
involved in investment management and procedures. All participants in the investment
process shall seek to act responsibly as custodians of the public trust.
The Investment Officer shall develop and maintain written administrative procedures for
the operation of the investment program which are consistent with this Investment Policy.
Procedures will include safekeeping, wire transfers, banking services contracts, and other
investment related activities.
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The Investment Officer shall be responsible for all transactions undertaken and shall
establish a system of controls to regulate the activities of subordinate officials and staff.
The Investment Officer shall designate a staff person as a liaison/deputy in the event
circumstances require timely action and the Investment Officer is not available.
No officer or designee may engage in an investment transaction except as provided under
the terms of this Policy and the procedures established by the Investment Officer and
approved by the Superintendent.
VI. PRUDENCE
The standard of prudence to be used in the investment function shall be the "prudent
person" standard and shall be applied in the context of managing the overall portfolio.
This standard states:
"Investments shall be made with judgment and care, under circumstances then
prevailing, which persons of prudence, discretion, and intelligence exercise in
the management of their own affairs, not for speculation, but for investment,
considering the probable safety of their capital as well as the expected income to
be derived."
Limitation of Personal Liability
The Investment Officer and those delegated investment authority, when acting in
accordance with the written procedures and this Policy and in accord with the Prudent
Person Rule, shall be relieved of personal liability in the management of the portfolio
provided that deviations from expectations for a specific security's credit risk or market
price change are reported in a timely manner and that appropriate action is taken to
control adverse market effects.
VII. INTERNAL CONTROLS
The Investment Officer shall establish a system of written internal controls which will be
reviewed annually with the independent auditor of the Academy. The controls shall be
designed to prevent loss of public funds due to fraud, employee error, misrepresentation
by third parties, or imprudent actions by employees of the Academy.
VIII. AUTHORIZED INVESTMENTS
Acceptable investments under this policy shall be limited to the instruments listed below.
The choice of high-grade government investments and high-grade, money market
instruments are designed to assure the marketability of those investments should liquidity
needs arise.
A. Obligations of the United States Government, its agencies and instrumentalities, not
to exceed two (2) years to stated maturity, and excluding mortgage backed securities;
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B. Fully insured or collateralized certificates of deposit from a bank doing business in
the State of Texas and under the terms of a written depository agreement with that
bank, not to exceed one year to stated maturity;
C. No-load, SEC registered money market mutual funds. No more than 80% of the
entity's monthly average balance may be invested in money market funds and;
D. Constant dollar, AAA-rated Texas Local Government Investment Pools as defined by
the Public Funds Investment Act.
If additional types of securities are approved for investment by public funds by state
statute, they will not be eligible for investment until this Policy has been amended and the
amended version adopted by the Board of Aldermen.
Delivery versus Payment
All investment security transactions shall be conducted on a delivery versus payment
(DVP) basis to assure that the Academy has control of its assets and/or funds at all times.
IX. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
Securities broker/dealers may be primary or regional broker/dealers and will meet other
criteria as determined by the Investment Officer including state registration and
completion of a Academy Broker/Dealer questionnaire (attached as Exhibit D). The
following criteria must be met by authorized firms.
- annual provision of an audited financial statement,
- proof of certification by the National Association of Securities Dealers (NASD)
- proof of current registration with the Texas State Securities Commission, and
- completion of the Academy's broker/dealer questionnaire.
Every bank and broker/dealer with whom the Academy transacts business will be
provided a copy of this Investment Policy to assure that they are familiar with the goals
and objectives of the investment program. The firm will be required to return a signed
copy of the Certification Form (attached as Exhibit C) certifying that the Policy has been
received and reviewed and only those securities approved by the Policy will be sold to
the Academy.
X. DIVERSIFICATION AND MATURITY LIMITATIONS
It is the policy of the Academy to diversify its investment portfolio. Invested funds shall
be diversified to minimize risk or loss resulting from over-concentration of assets in a
specific maturity, specific issuer, or specific class of securities. Diversification strategies
shall be established and periodically reviewed.
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XI. SAFEKEEPING AND COLLATERALIZATION
The laws of the State and prudent treasury management require that all purchased
securities be bought on a delivery versus payment (DVP) basis and be held in
safekeeping by either an approved, independent third party financial institution or the
Academy's designated depository.
Securities Owned by the Academy
All safekeeping arrangements shall be approved by the Investment Officer and an
agreement of the terms executed in writing. The safekeeping bank may not be within the
same holding company as the bank from with the securities are purchased. The custodian
shall be required to issue original safekeeping receipts to the AAccaaddeemmyy listing each
specific security, rate, description, maturity, cusip number, and other pertinent
information.
Collateral
Collateralization shall be required on all bank time and demand deposits for principal and
accrued interest amounts over the FDIC insurance coverage of $100,000 (by tax
identification number). In order to anticipate market changes and provide a level of
additional security for all funds, collateral with a market value equal to 102% of the total
deposits are required. The pledging bank will be made contractually liable for
monitoring and maintaining the collateral levels at all times. All collateral will be held
by an independent third party bank outside the holding company of the bank, pledged to
the Academy.
Authorized collateral will include only:
- Obligations of the US Government, its agencies and instrumentalities to include
mortgage backed securities which pass the bank test,
- Municipal obligations rated at least A by two nationally recognized rating
agencies.
The custodian shall be required to provide original safekeeping receipts clearly marked
that the security is pledged to the Academy.
XII. REPORTING
The Investment Officer shall submit quarterly reports to the Board of Trustees containing
sufficient information to permit an informed outside reader to evaluate the performance
of the investment program and in full compliance with the Act. At a minimum the report
shall contain:
- Beginning and ending market value of the portfolio by market sector and total
portfolio
- Beginning and ending book value of the portfolio by market sector and total
portfolio
- Change in market value during the period
- Detail on each asset (book, market, description, par ad maturity date)
- Earnings for the period
- Overall weighted average maturity of the portfolio
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The report will be prepared jointly by all involved in the investment activity and be
signed by the Investment Officer. It will contain all elements as required by the Act and
be signed by the Investment Officers as in compliance with the Act and this Policy.
Market prices for assignment of market values will be obtained from an independent
source.
XIII. DEPOSITORIES
The Academy will designate one banking institution through a competitive process as its
central banking services provider at least every five years. This institution will be used
for normal banking services including disbursements, deposits, and safekeeping of
Academy owned securities. Other banking institutions from which the Academy may
purchase only certificates of deposit will also be designated as a depository.
All banking arrangements will be in written form in accordance with FIRREA which
requires a resolution of approval of the agreement by the Bank Council or Bank Loan
Committee.
XIV. INVESTMENT POLICY ADOPTION BY BOARD
The Academy's Investment Policy and its incorporated strategies shall be adopted by
resolution annually by the Board. The approval and any changes made to the Policy will
be noted in the approving resolution.
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