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Home My WebLink About08-23-04 BOT Agenda PacketNotice of School Board works' and meeting Page I of 2 WE STEAKE ACADEMY �- wtsit' NOTICE OF A SCHOOL BOARD WORKSHOP AND AXE MEETING TO THE CITIZENS OF THE TOWN OF WESTLAKE, TEXAS: Notice is hereby given that the School Board of the Westlake Academy will meet at 3:00 p.n. on Monday, August 23, 2004, in the administrative conference room of the Town Hall, located at 2650 J.T. Ottinger Road, Westlake, Texas, for a workshop. The Board will then meet at 6:00 p.m. in the Board room to consider the remainder of the agenda: 1. Workshop called to order in the administrative conference room at 3:00 p.m. 2. Discuss planning for the 2004-05 academic year. 3. Adjourn to the regular meeting. 4. Call the regular meeting to order in the Board room at 6:00 p.m. and announce a quorum. (The regular meeting will be held after the workshop and may begin later than 6:00 p.m..) Citizens' Presentations: This is an opportunity for citizens to address the Board on any matter whether or not it is posted on the agenda. The Board cannot by law take action nor have any discussion or deliberations on any presentation made to the Board at this time concerning an item not listed on the agenda. Any item presented may be noticed on a future agenda for deliberation or action. 6. Consider a Resolution adopting the FY 2004-05 budget including the final amendments to the FY 2003-04 budget. 7. Consider a Resolution adopting an Investment Policy. 8. Consent Agenda: All items listed below are considered routine by the Board and will be enacted with one motion. There will be no separate discussion of items unless a Board member or citizen so requests, in which event the item will be removed from the general order of business and considered in its normal sequence. A. Review and approve minutes of the workshop and regular meeting held on August 9, 2004 and the workshop held on August 4, 2004. B. Review and approve any outstanding bills. 9. Adjournment. http://www.westlake-tx.org/agendas/sbaOS2304.htm 9/16/2004 Notice of School Board worksl and meeting Page 2 of 2 CERTIFICATION I certify that the above notice was posted on the front door of the Town Hall of the Town of Westlake, 2650 J.T. Ottinger Road, Westlake, Texas, on Friday, August 20, 2004, at 3:00 p.m., under the Open Meetings Act, Chapter 551 of the Texas Government Code. Ginger ldsswy, Secretary The Board may at any time convene into executive session as authorized by Chapter 551 of the Texas {Government Code to discuss any item posted on the agenda If you plan to attend this public meeting and have a disability that requires special needs, please advise the Town Secretary 48 hours in advance at 817-490-5710 and reasonable accommodations will be made to assist you. http://www.westlake-tx.org/agendas/sbaO82304.htm 9/16/2004 WESTLAKE ACADEMY MEMO TO: Honorable President and Members of the Board of Directors FROM: Trent Petty, CEO DATE: August 16, 2004 SUBJECT: August 23, 2004 meeting ITEM Consider a resolution adopting the proposed FY 2004/2005 budget including final amendments to FY 2003/2004 for the Westlake Academy. RECOMMENDATIONS Staff recommends approval. BACKGROUND The Town staff has prepared the FY 2004/2005 and the attached document includes all expected revenues and expenditures of the Academy. This year represents the most aggressive expansion that the Academy will experience, by adding two additional grades in the same year. As a result, the student body will increase by approximately 36%. Staff has increased by 9 people due to the addition of part-time specialty teachers as well as kindergarten and 7th grade staff. This budget also includes the addition of extra -curricular sports programs for the 7th grade. The staff has reviewed and proposed necessary changes and adjustments to the General Fund (Fund 199) of the Academy. The attached detail suggests amendments that need to be considered by the Board. WESTLAKE ACADEMY RESOLUTION NO. 04-10 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WESTLAKE ACADEMY ADOPTING THE 2004/2005 BUDGET. BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE WESTLAKE ACADEMY: SECTION l: That the Westlake Academy Board of Directors does hereby adopt the 2004/2005 budget. SECTION 2: That this Resolution shall become effective upon the date of its passage. PASSED AND APPROVED ON THIS 23rd DAY OF AUGUST 2004. ATTEST: Ginger Crosswy, Secretary APPROVED AS TO FORM: L. Stanton Lowry, Attorney Scott Bradley, President Trent O. Petty, CEO Westlake Academy - Special Revenue Funds 8/18/2004 3:37 PM 258-23-6129 Support Personnel - Leadership Adopted Budget FY 03/04 Proposed Budget FY 04/05 258-23-6141 SS/Medicare 319 342 258-00-59XX Federal Grant 275,000 250,000 411-00-58XX Technology Grant - 7,690 OEM 258-12-6119 Salary - Librarian - 16,648 258-12-6141 SS/Medicare - Librarian - 1,240 258-12-6143 Workers Comp - Librarian - 195 258-12-6145 _ Unemployment - Librarian - 207 258-12-6146 TRS - 67 258-23-6129 Support Personnel - Leadership 22,032 23,562 258-23-6141 SS/Medicare 319 342 258-23-6142 Insurance 1,262 - 258-23-6143 Workers comp 258 276 258-23-6145 Unemployment 207 258-23-6146 TRS 1,630 94 258-31-6119 Salary - Counselor - 21,310 258-31-6141 _ SS/Medicare - Counselor - 304 258-31-6142 Insurance - Counselor _ - _._ 1,769 258-31-6143 Workers Comp - Counselor - 245 258-31-6145 Unemployment - Counselor - 104 258-31-6146 TRS - 84 258-33-6119 Salary - Nurse - 18,484 258-33-6141 SS/Medicare - Nurse - _ 270 _ 258-33-6142--------------- 258-33-6143 Insurance - Nurse Workers Comp - Nurse _ - - - 216 258-33-6145 Unemployment_- Nurse - 207 _ 258-33-6146 TRS - 74 _ 258-35-6129 Food Srv. Support Personnel 258-35-6141 SS/Medicare - Food Srv. Support 258-35-6143 Workers Comp - Food Srv. Support 258-35-6145 Unemployment - Food Srv. support - 258-35-6146 _ _ TRS — - -- -.—__-- 7,560 578 88 174 30 1 OF 3 i 1 ' 19MA1 8/18/2004 3:37 PM Westlake Academy - Special Revenue Funds Adopted Budget FY 03/04 Proposed Budget FY 04105 258-11-6395 Instructional (hardware) 94,500 45,000 258-11-6399 Instructional - supplies 56,100 26,896 411-11-6399 Instructional - supplies - 7,690 258-41-6129 Support Personnel -Admin 3,888 - 258-41-6141 SS/Medicare - Admin & Staff 56 - 258-41-6142 Insurance - Admin & Staff 222 - 258-41-6143 Workers Comp - Admin & Staff 45 - 258-41-6145 Unemployment - Admin & Staff - - 258-41-6146 TRS 288 - PAYROLL AND PAYROLL RELATED 30,000 94,334 258-36-62XX Salary - Instrument - 21,120 258-12-6239 ESC Services - 350 258-13-6219 Professional Services 2,000 - 258-23-6239 ESC Services 1,000 - 258-23-6299 Misc. Contracted Services 3,500 - 258-41-6239 ESC Services 22,000 18,800 258-51-6255 Gas (65% based on sq ft) 4,100 6,000 258-51-6256 Electric (65% based on square ft) 12,000 6,700 258-51-6257 Telephone/T-1 line(50% of total) 8,400 6,000 258-51-6258 Water (% of total) - 6,000 PROFESSIONAL & CONTRACTED SERVICES 53,000 1 64,970 258-11-6321 Textbooks - instructional 10,000 - 258-11-6395 Instructional (hardware) 94,500 45,000 258-11-6399 Instructional - supplies 56,100 26,896 411-11-6399 Instructional - supplies - 7,690 258-12-6329 Reading Materials - - 258-12-6395 Library -hardware - - 258-23-6399 General Supplies - - 258-33-6399 Counselor- supplies - - 2OF3 8/18/2004 3:37 PM Westlake Academy - Special Revenue Funds Adopted Budget FY 03104 Proposed Budget FY 04/05 258-31-6219 Counselor- Testing - 6,000 258-35-6395 Lunchroom supplies and materials - - 258-35-6399 General Supplies - - 258-36-6399 Co -curricular supplies - - 258-41-6399 Supplies - - SUPPLIES & MATERIALS1 160,600 1 85,586 258-11-6499 Instructional Operating 5,400 - 258-13-6411 In -Service Training/Travel -Employee only 6,925 - 258-13-6413 Stipends -Non -employees 2,000 - 258-23-6411 Travel - Barbara 1,575 - 258-41-6429 Insurance and Bonding 11,589 12,800 258-41-6499 Miscellaneous Operating 3,500 - 258-51-6429 Insurance and Bondinq 411 - OTHER OPERATING COSTSI 31,400 1 12,800 3OF3 2005 a. ♦ Academy .• General ♦ is 8/18/2004 3:37 PM Proposed Adopted Amended Proposed Budget Budget Budget FY 03/04 FY 03/04 FY 04/05 199-00-5744 Gifts and Bequests - 200 - 199-00-5744 Gifts and Bequests - Foundation - 17,400 170,000 199-00-5744 Gifts and Bequests - TSH - 50,000 50,000 199-00-5749 Other Local Revenue - 2,000 2,000 199-00-5751 Food/Beverage 46,350 32,900 53,100 199-00-5759 Co -curricular revenue - 4,500 4,500 199-00-5812 State Foundation Revenue 934,610 931,887 1,282,944 199-00-5831 TRS On -behalf - 43,757 69,912 Courses for Community (5%) - - 2,700 199-11-6112 Teachers - Substitutes 44,603 6,825 10,000 199-11-6119 Salary - Teachers 555,320 555,320 892,633 199-11-6141 SS/Medicare 8,052 9,400 15,659 199-11-6142 Insurance - Teachers 48,000 26,000 49,518 199-11-6143 Workers Comp - Teachers 5,968 5,968 10,561 199-11-6144 TRS - On -behalf payments - 33,319 53,558 199-11-6144 TRS - On -behalf payments (SRF) - 1,322 4,860 199-11-6145 Unemployment - Teachers 1,904 5,000 5,175 _ 199-11-6146 TRS 2,040 2,600 3,540 199-23-6119 Salaries -Leadership 110,500 110,500 184,366 199-23-6129 Support Personnel - Leadership 17,335 17,335 - 199-23-6139 Employee Allowance - 7,200 7,200 199-23-6141 SS/Medicare 1,854 2,000 2,773 199-23-6142 Insurance 5,100 7,500 13,969 199-23-6143 Workers Comp 1,496 1,800 2,240 199-23-6144 TRS - On -behalf payments - 7,953 11,494 199-23-6145 Unemployment 202 800 518 199-23-6146 TRS 442 495 737 1 of 4 199-35-6129 Food Srv. Support Personnel - 4,800 199-35-6141 SS/Medicare - Food Srv. Support - 400 - 199-35-6143 Workers Comp - Food Srv. Support _ _ 50 199-35-6145 Unemployment - Food Srv. support _ - 100 1 of 4 2405 BUDGET 8/18/2004 3:37 PM Westlake Academy - General Fund Proposed Adopted Amended Proposed Budget Budget Budget FY 03/04 FY 03/04 FY 04/05 199-51-6249 Contracted maintenance and repair __ 375 500 199-51-6255 Gas (65% based on sq ft) - _ - _ 7,000 199-51-6256 Electric (65% based on square ft) - - 44,300 _ 199-51-6257 Telephone/T-1 line (50% of total) 4,200 199-51-6258 Water (% of total) - _ - - 15,000 2 of 4 199-41-6119 Salary - Admin & Staff 19,500 19,384 - 199-41-6129 Support Personnel -Admin 3,059 3,059 - 199-41-6141 SS/Medicare - Admin & Staff 327 327 - 199-41-6142 Insurance - Admin & Staff 900 1,500 - 199-41-6143 Workers Camp - Admin & Staff 264 325 - 199-41-6144 TRS - On -behalf payments - 1,163 - _ 199-41-6145 Unemployment - Admin & Staff 36 175 - 199-41-6146 TRS 90 95 - Additional August Accruals - 49,500 12,000 PAYROLL AND PAYROLL RELATED 826,992 882,2151 1,280,801 199-11-6219 Instructional Contract Service 5,000 1,445 199-13-6219 Professional Services 7,000 3,335 8,000 199-23-6269 Copier Rental 4,800 6,664 3,000 _ 199-23-6269 Copier Maintenance/copycharge - - 7,500 199-23-6299 Leadership Contract Service 1,500 - - 199-31-6219 Counselor Testing services - 3,850 - 199-35-6219 Food -Professional services - 5,000 - _ 199-35-6239 ESC Services - 250 - 199-36-6219 Salary - Coaching - - 24,672 199-41-6211 Legal Services - 20,000 15,000 199-41-6212 Audit - - 10,000 199-41-6219 _ Admin Contract Services - 3,000 3,000 199-51-6249 Contracted maintenance and repair __ 375 500 199-51-6255 Gas (65% based on sq ft) - _ - _ 7,000 199-51-6256 Electric (65% based on square ft) - - 44,300 _ 199-51-6257 Telephone/T-1 line (50% of total) 4,200 199-51-6258 Water (% of total) - _ - - 15,000 2 of 4 005 BUDGET 8/18/2004 3:37 PM Westlake Academy - General Fund Proposed Adopted Amended Proposed Budget Budget Budget FY 03/04 FY 03/04 FY 04105 199-53-6219 Data Processing Services 36,720 36,720 30,000 199-41-6499 Misc Operating/Fees - 3,750 4,500 PROFESSIONAL & CONTRACTED SERVICES 6200 1 55,0201 80,6391 172,172 3,000 199-11-6395 Instructional supplies - 5,000 - 199-11-6398 Furniture - 22,000 24,000 199-11-6321 Textbooks - instructional - - 5,000 199-12-6329 Library books - - 20,000 199-12-6395 Library - hardware - - 2,000 199-12-6399 Library- supplies - - 500 199-33-6399 Counselor- supplies - - 1,000 199-35-6341 Food Purchases 39,375 26,500 47,613 199-35-6342 Non -Food - 50 199-36-6399 Co -curricular supplies - 1,000 2,000 199-41-6399 Admin supplies - 6,000 5,400 199-51-6319 Maintenance supplies - 2,000 2,000 SUPPLIES & MATERIALS 6300 1 39,3751 62,5501 109,513 199-11-6499 Instructional Operating 15,284 2,000 2,000 199-13-6499 Curriculum Operating - 350 350 199-13-6411 Travel - Other - 3,000 5,000 199-13-6499 In -Service Training - - 5,000 199-36-6499 Co -curricular operating - 1,075 1,200 _ 199-41-6411 Travel - Barbara - 400 2,900 199-41-6499 Misc Operating/Fees - 3,750 4,500 199-41-6499 International moving expenses - 6,000 3,000 3 of 4 2005 BUDGET Westlake Academy General 8/18/2004 3:37 PM Proposed Adopted Amended Proposed Budget Budget Budget FY 03/04 FY 03/04 FY 04/05 199-51-6429 insurance & bonding 40,446 39,939 44,800 199-51-6499 Maintenance operating - 225 225 199-61-6499 Community Services - 200 2,000 OTHER OPERATING COSTS 6400 55,7301 56,9391 70,975 4of4 2005 BUncT 8/18/2004 3:37 PM Adopted Proposed Budget Budget FY 03/04 FY 04/05 258-00-59XX Federal Grant 275,000 250,000 411-00-58XX Technology Grant - 7,690 258-12-6119 Salary - Librarian - 16,648 258-12-6141 SS/Medicare - Librarian - 1,240 258-12-6143 Workers Comp - Librarian - 195 258-12-6145 Unemployment - Librarian - 207 258-12-6146 TRS - 67 258-23-6129 Support Personnel - Leadership 22,032 23,562 258-23-6141 SS/Medicare 319 342 258-23-6142 Insurance 1,262 -- 258-23-6143 Workers comp 258 276 258-23-6145 Unemployment 207 258-23-6146 TRS 1,630 94 258-31-6119 Salary -Counselor - 21,310 258-31-6141 SS/Medicare - Counselor - 304 258-31-6142 _ Insurance - Counselor - 1,7_69 258-31-6143 Workers Comp - Counselor - 245 258-31-6145 Unemployment - Counselor - 104_ 258-31-6146 TRS - 84 258-33-6119 Salary - Nurse - 18,484 258-33-6141 SS/Medicare - Nurse - 270 _ 258-33-6142 258-33-6143 _ Insurance - Nurse Workers Comp - Nurse - - - 216 258-33-6145 Unemployment - Nurse - 207 _ 258-33-6146 TRS - 74 258-35-6129 Food Srv. Support Personnel - 7,560 258-35-6141 SS/Medicare - Food Srv. Support - 578 258-35-6143 Workers Comp - Food Srv. Support - 88 258-35-6145 Unemployment - Food Srv. support - 174 258-35-6146 TRS - 30 1 OF 3 2005 BUDGET 8/18/2004 3:37 PM • • • Adopted Proposed Budget Budget FY 03/04 FY 04105 25841-6129 Support Personnel -Admin 3,888 - 25841-6141 SS/Medicare - Admin & Staff 56 - 258-41-6142 Insurance - Admin & Staff 222 - 25841-6143 Workers Comp - Admin & Staff 45 - 258-41-6145 Unemployment - Admin & Staff - - 25841-6146 TRS 288 - PAYROLL AND PAYROLL RELATED 30,000 94,334 258-36-62XX Salary - Instrument - 21,120 258-12-6239 ESC Services - 350 258-13-6219 Professional Services 2,000 - 258-23-6239 ESC Services 1,000 - 258-23-6299 Misc. Contracted Services 3,500 - 258-41-6239 ESC Services 22,000 18,800 258-51-6255 Gas (65% based on sq ft) 4,100 6,000 258-51-6256 Electric (65% based on square ft) 12,000 6,700 258-51-6257 Telephone/T-1 line(50% of total) 8,400 6,000 258-51-6258 Water (% of total) - 6,000 PROFESSIONAL & CONTRACTED SERVICES 1 53,000 1 64,970 258-11-6321 Textbooks - instructional 10,000 - 258-11-6395 Instructional (hardware) 94,500 45,000 258-11-6399 Instructional - supplies 56,100 26,896 411-11-6399 Instructional - supplies - 7,690 258-12-6329 Reading Materials - - 258-12-6395 Library - hardware - 258-23-6399 General Supplies - - 258-33-6399 Counselor- supplies - 2OF3 8/18/2004 3:37 PM Westlake Academy - Special Revenue Funds_ Adopted Budget FY 03/04 Proposed Budget FY 04/05 258-31-6219 Counselor- Testing - 6,000 258-35-6395 Lunchroom supplies and materials - - 258-35-6399 General Supplies - - 258-36-6399 Co -curricular supplies - - 258-41-6399 Supplies - - SUPPLIES & MATERIALS 160,600 85,586 258-11-6499 Instructional Operating 5,400 - 258-13-6411 In -Service Training/Travel -Employee only 6,925 - 258-13-6413 Stipends -Non -employees 2,000 - 258-23-6411 Travel - Barbara 1,575 - 258-41-6429 Insurance and Bonding 11,589 12,800 258-41-6499 Miscellaneous Operating 3,500 - 258-51-6429 Insurance and Bonding 411 - OTHER OPERATING COSTSI 31,400 1 12,800 3OF3 2005 BUDGET I Westlake Academy •i 8/18/2004 3:37 PM Proposed Adopted Amended Proposed Budget Budget Budget FY 03/04 FY 03104 FY 04/05 199-00-5744 Gifts and Bequests - 200 - 199-00-5744 Gifts and Bequests - Foundation - 17,400 170,000 199-00-5744 Gifts and Bequests - TSH - 50,000 50,000 199-00-5749 Other Local Revenue - 2,000 2,000 199-00-5751 Food/Beverage 46,350 32,900 53,100 199-00-5759 Co -curricular revenue - 4,500 4,500 199-00-5812 State Foundation Revenue 934,610 931,887 1,282,944 199-00-5831 TRS On -behalf - 43,757 69,912 - Courses for Community (5%) - - 2,700 199-11-6112 Teachers - Substitutes 44,603 6,825 10,000 199-11-6119 Salary - Teachers 555,320 555,320 892,633 199-11-6141 SS/Medicare 8,052 9,400 15,659 199-11-6142 Insurance - Teachers 48,000 26,000 49,518 199-11-6143 Workers Camp - Teachers 5,968 5,968 10,561 199-11-6144 TRS - On -behalf payments - 33,319 53,558 199-11-6144 TRS - On -behalf payments (SRF) - 1,322 4,860 199-11-6145 Unemployment - Teachers 1,904 5,000 5,175 _ 199-11-6146 TRS 2,040 2,600 3,540 199-23-6119 Salaries -Leadership 110,500 110,500 184,366 199-23-6129 Support Personnel - Leadership 17,335 17,335 - 199-23-6139 Employee Allowance - 7,200 7,200 199-23-6141 SS/Medicare 1,854 2,000 2,773 199-23-6142 Insurance 5,100 7,500 13,969 199-23-6143 Workers Comp 1,496 1,800 2,240 199-23-6144 TRS - On -behalf payments - 7,953 11,494 199-23-6145 Unemployment 202 800 518 199-23-6146 TRS 442 495 737 199-35-6129 Food Srv. Support Personnel - 4,800 - 199-35-6141 SS/Medicare - Food Srv. Support - 400 - 199-35-6143 Workers Comp - Food Srv. Support - 50 - 199-35-6145 Unemployment - Food Srv. support - 100 - 1 of 4 2005 c T 8/18/2004 3:37 PM Westlake Academy - General Fund Proposed Adopted Amended Proposed Budget Budget Budget FY 03/04 FY 03/04 FY 04/05 199-36-6219 Salary - Coaching - - 24,672 199-41-6211 Legal Services - 20,000 15,000 199-41-6212 _ Audit - - 10,000 199-41-6219 Admin Contract Services - 3,000 3,000 199-51-6249 Contracted maintenance and repair - _ 375 500 199-51-6255 Gas (65% based on sq ft) - _ _ ^ _ _ 7,000 _ 199-51-6256 _Electric (65% based on square ft) _ - _ __ 44,300 199-51-6257 Telephone/T-1 line (50% of total) - _ , 4,200 199-51-6258 Water (% of total) - - 15,000 2of4 199-41-6119 Salary - Admin & Staff 19,500 19,384 - 199-41-6129 Support Personnel -Admin 3,059 3,059 - 199-41-6141 SS/Medicare - Admin & Staff 327 327 - 199-41-6142 Insurance - Admin & Staff 900 1,500 - 199-41-6143 Workers Comp - Admin & Staff 264 325 - 199-41-6144 TRS - On -behalf payments - 1,163 - 199-41-6145 Unemployment - Admin & Staff 36 175 - 199-41-6146 TRS 90 95 - Additional August Accruals - 49,500 12,000 PAYROLL AND PAYROLL RELATEDI 826,992 882,2151 1,280,801 199-11-6219 Instructional Contract Service 5,000 1,445 199-13-6219 Professional Services 7,000 3,335 8,000 199-23-6269 Copier Rental 4,800 6,664 3,000 199-23-6269 Copier Maintenance/copycharge - - 7,500 199-23-6299 Leadership Contract Service 1,500 - - 199-31-6219 Counselor Testing services - 3,850 - 199-35-6219 Food -Professional services - 5,000 - _ 199-35-6239 ESC Services - 250 - 199-36-6219 Salary - Coaching - - 24,672 199-41-6211 Legal Services - 20,000 15,000 199-41-6212 _ Audit - - 10,000 199-41-6219 Admin Contract Services - 3,000 3,000 199-51-6249 Contracted maintenance and repair - _ 375 500 199-51-6255 Gas (65% based on sq ft) - _ _ ^ _ _ 7,000 _ 199-51-6256 _Electric (65% based on square ft) _ - _ __ 44,300 199-51-6257 Telephone/T-1 line (50% of total) - _ , 4,200 199-51-6258 Water (% of total) - - 15,000 2of4 2005 BUDGET 8/18/2004 3:37 PM Westlake Academy - General Fund Proposed Adopted Amended Proposed Budget Budget Budget FY 03104 FY 03/04 FY 04/05 199-53-6219 Data Processing Services 36,720 36,720 30,000 PROFESSIONAL & CONTRACTED SERVICES 6200 55,020 80,639 172,172 199-11-6395 Instructional supplies - 5,000 - 199-11-6398 Furniture - 22,000 24,000 199-11-6321 Textbooks - instructional - - 5,000 199-12-6329 Library books - - 20,000 199-12-6395 Library - hardware - - 2,000 199-12-6399 Library- supplies - - 500 199-33-6399 Counselor- supplies - - 1,000 199-35-6341 Food Purchases 39,375 26,500 47,613 199-35-6342 Non -Food - 50 199-36-6399 Co -curricular supplies - 1,000 2,000 199-41-6399 Admin supplies - 6,000 5,400 199-51-6319 Maintenance supplies - 2,000 2,000 SUPPLIES & MATERIALS 6300 1 39,3751 62,5501 109,513 199-11-6499 Instructional Operating 15,284 2,000 2,000 199-13-6499 Curriculum Operating - 350 350 199-13-6411 Travel- Other - 3,000 5,000 199-13-6499 In -Service Training - - 5,000 199-36-6499 Co -curricular operating - 1,075 1,200 199-41-6411 Travel - Barbara - 400 2,900 199-41-6499 Misc Operating/Fees - 3,750 4,500 199-41-6499 International moving expenses - 6,000 3,000 3 of 4 2005 BUDGET Westlake Academy . •..fid. General . . i 8/18/2004 3:37 PM Proposed Adopted Amended Proposed Budget Budget Budget FY 03/04 FY 03/04 FY 04/05 199-51-6429 insurance & bonding 40,446 39,939 44,800 199-51-6499 Maintenance operating - 225 225 199-61-6499 Community Services - 200 2,000 OTHER OPERATING COSTS 6400 1 55,7301 56,9391 70,97: 4of4 WESTLAKE ACADEMY MEMO TO: Honorable President and Members of the Board of Directors FROM: Trent Petty, CEO SUBJECT: Regular Meeting of August 23, 2004 DATE: August 16, 2004 ITEM Consider a resolution adopting a Westlake Academy Investment Policy. RECOMMENDATIONS Staff recommends approval. BACKGROUND Chapter 2256 of the Government Code, commonly known as the "Public Funds Investment Act" requires the Academy to adopt an investment policy by rule, order, ordinance or resolution. Debbie Piper, Finance Director for the Town, has completed the required Investment Training required by this act. The adoption and adherence to the attached policy is recommended. WESTLAKE ACADEMY RESOLUTION NO. 04-11 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WESTLAKE ACADEMY, ADOPTING A WESTLAKE ACADEMY INVESTMENT POLICY. WHEREAS, Chapter 2256 of the Government Code, commonly known as the "Public Funds Investment Act," requires the Academy to adopt an investment policy by rule, order, ordinance, or resolution; and WHEREAS, the Public Funds Investment Act requires the investment officer of the Academy to attend investment training; and WHEREAS, the Westlake Academy approves of the investment training course sponsored by the Texas Municipal League; and WHEREAS, the investment officer of the Academy has attended an investment training course sponsored by the Texas Municipal League as required by the Public Funds Investment Act; and WHEREAS, the attached investment policy and incorporated strategy comply with the Public Funds Investment Act, as amended, and authorize the investment of Westlake Academy funds in safe and prudent investments. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE WESTLAKE ACADEMY: SECTION 1: That Westlake Academy has complied with the requirements of the Public Funds Investment Act and the Board of Directors does hereby adopt a Westlake Academy Investment Policy, as proposed in the attached documents. SECTION 2: That this Resolution shall become effective upon the date of its passage. PASSED AND APPROVED ON THIS 23rd DAY OF AUGUST, 2004. ATTEST: Scott Bradley, President Ginger Crosswy, Secretary Trent O. Petty, CEO APPROVED AS TO FORM: L. Stanton Lowry, Attorney WESTLAKE ACADEMY INVESTMENT POLICY 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 Academy'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. 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. Westlake Academy 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. 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 CEO. 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 judgement 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. Westlake Academy 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; 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 funis. - 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. Westlake Academy 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 Academy 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. 11 XII. REPORTING The Investment Officer shall submit monthly reports to the CEO and 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 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. The three month Treasury Bill average yield for the reporting period will be reported as a gauge of performance and risk. 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. Westlake Academy 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. Westlake Academy PUBLIC FUNDS INVESTMENT ACT hapter 2256, Texas Government ode Effective as of September 1, 2003 SUBCHAPTER A. AUTHORIZED INVESTMENTS FOR GOVERNMENTAL ENTITIES Sec. 2256.001 Short Title. This chapter may be cited as the Public Funds Investment Act. Sec. 2256.002 Definitions. In this chapter: (1) 'Bond Proceeds" means the proceeds from the sale of bonds, notes, and other obligations issued by an entity, and reserves and funds maintained by an entity for debt service purposes. (2) 'Book Value" means the original acquisition cost of an investment plus or minus the accrued amortization or accretion. (3) "Funds" means public funds in the custody of a state agency or local government that: (A) are not required by law to be deposited in the state treasury; and (B) the investing entity has authority to invest. (4) "Institution of higher education" has the meaning assigned by Section 61.003, Education Code. (5) "Investing entity" and "entity" mean an entity subject to this chapter and described by Section 2256.003. (6) "Investment pool' means an entity created under this code to invest public funds jointly on behalf of the entities that participate in the pool and whose investment objectives in order of priority are: (A) preservation and safety of principal; (B) liquidity; and (C) yield. (7) "Local government" means a municipality, a county, a school district, a district or authority created under Section 52(b)(1) or (2), Article III, or Section 59, Article XVI, Texas Constitution, a fresh water supply district, a hospital district, and any political subdivision, authority, public corporation, body politic, or instrumentality of the State of Texas, and any nonprofit corporation acting on behalf of any of those entities. (8) "Market value" means the current face or par value of an investment multiplied by the net selling price of the security as quoted by a recognized market pricing source quoted on the valuation date. (9) "Pooled fund group" means an internally created fund of an investing entity in which one or more institutional accounts of the investing entity are invested. (10) "Qualified representative" means a person who holds a position with a business organization, who is authorized to act on behalf of the business organization, and who is one of the following: (A) for a business organization doing business that is regulated by or registered with a securities commission, a person who is registered under the rules of the National Association of Securities Dealers; (B) for a state or federal bank, a savings bank or a state or federal credit union, a member of the loan committee for the bank or branch of the bank or a person authorized by corporate resolution to act on behalf of and bind the banking institution; (C) for an investment pool, the person authorized by the elected official or board with authority to administer the activities of the investment pool to sign the written instrument on behalf of the investment pool, or (D) for an investment management firm registered under the Investment Advisers Act of 1940 (15 U.S.C. Section 80b -I et seq.) or, if not subject to registration under that Act, registered with the State Securities Board, a person who is an officer or principal of the investment management firm. (11) "School district" means a public school district. (12) "Separately invested asset" means an account or fund of a state agency or local government that is not invested in a pooled fund group. (13) "State agency" means an office, department, commission, board, or other agency that is part of any branch of state government, an institution of higher education, and any nonprofit corporation acting on behalf of any of those entities. Sec. 2256.003 Authority to Invest Funds; Entities Subject to this Chapter (a) Each governing body of the following entities may purchase, sell, and invest its funds and funds under its control in investments authorized under this subchapter in compliance with investment policies approved by the governing body and according to the standard of care prescribed by Section 2256.006: (1) a local government; (2) a state agency; (3) a nonprofit corporation acting on behalf of a local government or a state agency; or (4) an investment pool acting on behalf of two or more local governments, state agencies, or a combination of those entities. (b) In the exercise of its powers under Subsection (a), the governing body of an investing entity may contract with an investment management firm registered under the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-1 et seq.) or with the State Securities Board to provide for the investment and management of its public funds or other funds under its control. A contract made under authority of this subsection may not be for a term longer than two years. A renewal or extension of the contract must be made by the governing body of the investing entity by order, ordinance or resolution. (c) This chapter does not prohibit an investing entity or investment officer from using the entity's employees or the services of a contractor of the entity to aid the investment officer in the execution of the officer's duties under this chapter. Sec. 2256.004 Applicability (a) This subchapter does not apply to: (1) a public retirement system as defined by Section 802.001; (2) state funds invested as authorized by Section 404.024; (3) an institution of higher education having total endowments of at least $95 million in book value on May 1, 1995 (4) funds invested by the Veterans Land Board as authorized by Chapter 161, 162, or 164, Natural Resources Code, (5) registry funds deposited with the county or district clerk under Chapter 117, Local Government Code, or (6) a deferred compensation plan that qualifies under either Section 401(k) or 457 of the Internal Revenue Code of 1986 (26 U.S.C. Section 1 et seq.) as amended. (b) This subchapter does not apply to an investment donated to an investing entity for a particular purpose or under terms of use specified by the donor. Sec. 2256.005 Investment Policies; Investment Strategies; Investment Officer. (a) The governing body of an investing entity shall adopt by rule, order, ordinance, or resolution, as appropriate, a written investment policy regarding the investment of its funds and funds under its control. (b) The investment policies must: (1) be written; (2) primarily emphasize safety of principal and liquidity; (3) address investment diversification, yield, and maturity and the quality and capability of investment management; and (4) include: (A) a list of the types of authorized investments in which the investing entity's funds may be invested; (B)the maximum allowable stated maturity of any individual investment owned by the entity; (C) for pooled fund groups, the maximum dollar -weighted average maturity allowed based on the stated maturity date for the portfolio. (D)methods to monitor the market price of investments acquired with public funds; and 2 (E)a requirement for settlement of all transactions, except investment pool funds and mutual funds, on a delivery versus payment basis. (c) The investment policies may provide that bids for certificates of deposit be solicited: (1) orally; (2) in writing; (3) electronically; or (4) in any combination of those methods. (d) As an integral part of an investment policy, the governing body shall adopt a separate written investment strategy for each of the funds or group of funds under its control. Each investment strategy must describe the investment objectives for the particular fund using the following priorities in order of importance: (1) understanding of the suitability of the investment to the financial requirements of the entity; (2) preservation and safety of principal; (3) liquidity; (4) marketability of the investment if the need arises to liquidate the investment before maturity; (5) diversification of the investment portfolio; and (6) yield. (e) The governing body of an investing entity shall review its investment policy and investment strategies not less than annually. The governing body shall adopt a written instrument by rule, order, ordinance or resolution stating that it has reviewed the investment policy and investment strategies and that the written instrument so adopted shall record any changes made to either the investment policy or investment strategies. (f) Each investing entity shall designate, by rule, order, ordinance, or resolution, as appropriate, one or more officers or employees of the state agency, local government, or investment pool as investment officer to be responsible for the investment of its funds consistent with the investment policy adopted by the entity. If the governing body of an investing entity has contracted with another investing entity to invest its funds, the investment officer of the other investing entity is considered to be the investment officer of the first investing entity for purposes of this chapter. Authority granted to a person to invest an entity's funds is effective until rescinded by the investing entity until the expiration of the officer's term or the_ termination of the person's employment by the investing entity, or if an investment management firm, until expiration of the contract with the investing entity. In the administration of the duties of an investment officer, the person designated as investment officer shall exercise the judgment and care, under prevailing circumstances, that a prudent person would exercise in the management of the person's own affairs, but the governing body of the investing entity retains ultimate responsibility as fiduciaries of the assets of the entity. Unless authorized by law, a person may not deposit, withdraw, transfer, or manage in any other manner the funds of the investing entity. (g) Subsection (f) does not apply to a state agency, local government, or investment pool for which an officer of the entity is assigned by law the function of investing its funds. (h) An officer or employee of a commission created under Chapter 391, Local Government Code, is ineligible to be designated as an investment officer under Subsection (f) for any investing entity other than for that commission. An officer or employee of a commission created under Chapter 391, Local Government Code, is ineligible to be an investment officer for the commission under Subsection (f) if the officer or employee is an investment officer designated under Subsection (f) for another local government. (i) An investment officer of an entity who has a personal business relationship with a business organization offering to engage in an investment transaction with the entity shall file a statement disclosing that personal business interest. An investment officer who is related within the second degree by affinity or consanguinity, as determined under Chapter 573, to an individual seeking to sell an investment to the investment officer's entity shall file a statement disclosing that relationship. A statement required under this subsection must be filed with the Texas Ethics Commission and the governing body of the entity. For purposes of this subsection, an investment officer has a personal business relationship with a business organization if: (1) the investment officer owns 10 percent or more of the voting stock or shares of the business organization or owns $5,000 or more of the fair market value of the business organization; (2) funds received by the investment officer from the business organization exceed 10 percent of the investment officer's gross income for the previous year; or (3) the investment officer has acquired from the business organization during the previous year investments with a book value of $2,500 or more for the personal account of the investment officer. 0) The governing body of an investing entity may specify in its investment policy that any investment authorized by this chapter is not suitable. (k) A written copy of the investment policy shall be presented to any person offering to engage in an investment transaction with an investing entity or to an investment management firm under contract with an investing entity to invest or manage the entity's investment portfolio_ For purposes of this subsection, a business organization includes investment pools and an investment management firm under contract with an investing entity to invest or manage the entity's investment portfolio. Nothing in this subsection relieves the investing entity of the responsibility for monitoring the investments made by the investing entity to determine that they are in compliance with the investment policy. The qualified representative of the business organization offering to engage in an investment transaction with an investing entity shall execute a written instrument in a form acceptable to the investing entity and the business organization substantially to the effect that the business organization has: (1) received and reviewed the investment policy of the entity; and (2) acknowledged that the business organization has implemented reasonable procedures and controls in an effort to preclude investment transactions conducted between the entity and the organization that are not authorized by the entity's investment policy, except to the extent that this authorization is dependent on an analysis of the makeup of the entity's entire portfolio or requires an interpretation of subjective investment standards. (1) The investment officer of an entity may not acquire or otherwise obtain any authorized investment described in the investment policy of the investing entity from a person who has not delivered to the entity the instrument required by Subsection (k). (m) An investing entity other than a state agency, in conjunction with its annual financial audit, shall perform a compliance audit of management controls on investments and adherence to the entity's established investment policies. (n) Except as provided by Subsection (o), at least once every two years a state agency shall arrange for a compliance audit of management controls on investments and adherence to the agency's established investment policies. The compliance audit shall be performed by the agency's internal auditor or by a private auditor employed in the manner provided by Section 321.020. Not later than January 1 of each even -numbered year, a state agency shall report the results of the most recent audit performed under this subsection to the state auditor. A state agency also shall report to the state auditor other information the state auditor determines necessary to assess compliance with laws and policies applicable to state agency investments. A report under this subsection shall be prepared in a manner the state auditor prescribes. (o) The audit requirements of Subsection (n) do not apply to assets of a state agency that are invested by the comptroller under Section 404.024. Sec. 2256.006 Standard of Care. (a) Investments shall be made with judgment and care, under prevailing circumstances, that a person of prudence, discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived. Investment of funds shall be governed by the following investment objectives, in order of priority: (1) preservation and safety of principal; (2) liquidity; and (3) yield. (b) In determining whether an investment officer has exercised prudence with respect to an investment decision, the determination shall be made taking into consideration: (1) the investment of all funds, or funds under the entity's control, over which the officer had responsibility rather than a consideration as to the prudence of a single investment; and (2) whether the investment decision was consistent with the written investment policy of the entity. Sec. 2256.007 Investment Training; State Agency Board Members and Officers. (a) Each member of the governing board of a state agency and its investment officer shall attend at least one training session relating to the person's responsibilities under this chapter within six months after taking office or assuming duties. rd (b) The Texas Higher Education Coordinating Board shall provide the training under this section. (c) Training under this section must include education in investment controls, security risks, strategy risks, market risks, diversification of investment portfolio, and compliance with this chapter. (d) An investment officer shall attend a training session not less than once in a two-year period and may receive training from any independent source approved by the governing body of the state agency. The investment officer shall prepare a report on this subchapter and deliver the report to the governing body of the state agency not later than the 180th day after the last day of each regular session of the legislature. Sec. 2256.008 Investment Training; Local Governments. (a) Except as provided by Subsections (b) and (e), the treasurer, the chief financial officer if the treasurer is not the chief financial officer, and the investment officer of a local government shall_ (1) attend at least one training session from an independent source approved by the governing body of the local government or a designated investment committee advising the investment officer as provided for in the investment policy of the local government and containing at least 10 hours of instruction relating to the treasurer's or officer's responsibilities under this subchapter within 12 months after taking office or assuming duties; and (2) except as provided by Subsection (b), attend an investment training session not less than once in a two-year period and receive not less than 10 hours of instruction relating to investment responsibilities under this subchapter from an independent source approved by the governing body of the local government or a designated investment committee advising the investment officer as provided for in the investment policy of the local government. (b) An investing entity created under authority of Section 52(b), Article III, or Section 59, Article XVI, Texas Constitution, that has contracted with an investment management firm under Section 2256.003(b) and has fewer than five full-time employees or an investing entity that has contracted with another investing entity to invest the entity's funds may satisfy the training requirement provided by Subsection (a)(2) by having an officer of the governing body attend four hours of appropriate instruction in a two-year period. The treasurer or chief financial officer of an investing entity created under authority of Section 52(b), Article III, or Section 59, Article XVI, Texas Constitution, and that has fewer than five full-time employees is not required to attend training required by this section unless the person is also the investment officer of the entity. (c) Training under this section must include education in investment controls, security risks, strategy risks, market risks, diversification of investment portfolio, and compliance with this chapter. (d) Not later than December 31 each year, each individual, association, business, organization, governmental entity, or other person that provides training under this section shall report to the comptroller a list of the governmental entities for which the person provided required training under this section during that calendar year. An individual's reporting requirements under this subsection are satisfied by a report of the individual's employer or the sponsoring or organizing entity of a training program or seminar. (e) This section does not apply to a district governed by Chapter 36 or 49, Water Code. Sec. 2256.009 Authorized Investments: Obli ations of, or Guaranteed by Governmental Entities. (a) Except as provided by Subsection (b), the following are authorized investment under this subchapter: (1) Obligations, including letters of credit, of the United States or its agencies and instrumentalities; (2) direct obligations of this state or its agencies and instrumentalities; (3) collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United States, the underlying security for which is guaranteed by an agency or instrumentality of the United States. (4) other obligations, the principal and interest of which are unconditionally guaranteed or insured by, or backed by the full faith and credit of, this state or the United States or their respective agencies and instrumentalities; and (5) obligations of states, agencies, counties, cities, and other political subdivisions of any state rated as to investment quality by a nationally recognized investment rating firm not less than A or its equivalent and (6) bonds issued, assumed, or guaranteed by the State of Israel. (b) The following are not authorized investments under this section: (1) obligations whose payment represents the coupon payments on the outstanding principal balance of the underlying mortgage-backed security collateral and pays no principal; (2) obligations whose payment represents the principal stream of cash flow from the underlying mortgage-backed security collateral and bears no interest; (3) collateralized mortgage obligations that have a stated final maturity date of greater than 10 years; and (4) collateralized mortgage obligations the interest rate of which is determined by an index that adjusts opposite to the changes in a market index. Sec. 2256.010 Authorized Investments: Certificates of Deposit. A certificate of deposit is an authorized investment under this subchapter if the certificate of deposit is issued by a state or national bank domiciled in this state or a savings bank domiciled in this state, or state or federal credit union domiciled in this state and is: (1) guaranteed or insured by the Federal Deposit Insurance Corporation, or its successor or the National Credit Union Share Insurance Fund or its successor; (2) secured by obligations that are described by Section 2256.009(a), including mortgage backed securities directly issued by a federal agency or instrumentality that have a market value of not less than the principal amount of the certificates, but excluding those mortgage-backed securities of the nature described by Section 2256.009(b); or (3) secured in any other manner and amount provided by law for deposits of the investing entity. Sec. 2256.011 Authorized Investments: Repurchase Agreements. (a) A fully collateralized repurchase agreement is an authorized investment under this subchapter if the repurchase agreement: (1) has a defined termination date; (2) is secured by obligations described by Section 2256.009(a)(1); and (3) requires the securities being purchased by the entity to be pledged to the entity, held in the entity's name, and deposited at the time the investment is made with the entity or with a third party selected and approved by the entity; and (4) is placed through a primary government securities dealer, as defined by the Federal Reserve, or a financial institution doing business in this state. (b) In this section, "repurchase agreement" means a simultaneous agreement to buy, hold for a specified time, and sell back at a future date, obligations described by Section 2256.009(a)(1) at a market value at the time the funds are disbursed of not less than the principal amount of the funds disbursed. The term includes a direct security repurchase agreement and a reverse security repurchase agreement. (c) Notwithstanding any other law, the term of any reverse security repurchase agreement may not exceed 90 days after the date the reverse security repurchase agreement is delivered. (d) Money received by an entity under the terms of a reverse security repurchase agreement shall be used to acquire additional authorized investments, but the term of the authorized investments acquired must mature not later than the expiration date stated in the reverse security repurchase agreement. Sec. 2256.0115 Authorized Investments: Securities Lending (a) A securities lending program is an authorized investment under this subchapter if it meets the conditions provided by this section. (b) To qualify as an authorized investment under this subchapter: (1) the value of securities loaned under the program must be not less than 100 percent collateralized, including accrued income; (2) a loan made under the program must allow for termination at any time; (3) a loan made under the program must be secured by: (A) pledged securities described by Section 2256.009; (B) pledged irrevocable letters of credit issued by a bank that is: (i) organized and existing under the laws of the United States or any other state; and 6 (ii) continuously rated by at least one nationally recognized investment rating firm at not less than A or its equivalent; or (C) cash invested in accordance with Section: (i) 2256.009; (ii) 2256.013; (iii) 2256.014; or (iv) 2256.016 (4) the terms of a loan made under the program must require that the securities being held as collateral be: (A) pledged to the investing entity; (B) held in the investing entity's name, and; (C) deposited at the time the investment is made with the entity or with a third party selected by or approved by the investing entity; (5) a loan made under the program must be placed through: (A) a primary government securities dealer, as defined by 5 C.F.R. Section 6801.102(f), as that regulation existed on September 1, 2003; or (B) a financial institution doing business in this state; and (6) an agreement to lend securities that is executed under this section must have a term of one year or less. Sec. 2256.012 Authorized Investments: Banker's Acceptances A bankers' acceptance is an authorized investment under this subchapter if the bankers' acceptance: (1) has a stated maturity of 270 days or fewer from the date of its issuance; (2) will be, in accordance with its terms, liquidated in full at maturity; (3) is eligible for collateral for borrowing from a Federal Reserve Bank; and (4) is accepted by a bank organized and existing under the laws of the United States or any state, if the short-term obligations of the bank or of a bank holding company of which the bank is the largest subsidiary are rated not less than A-1 or P-1 or an equivalent rating by at least one nationally recognized credit rating agency. Sec. 2256.013 Authorized Investments: Commercial Paper. Commercial paper is an authorized investment under this subchapter if the commercial paper: (1) has a stated maturity of 270 days or fewer from the date of its issuance; and (2) is rated not less than A-1 or P- 1, or an equivalent rating by at least: (A) two nationally recognized credit rating agencies; or (B) one nationally recognized credit rating agency and is fully secured by an irrevocable letter of credit issued by a bank organized and existing under the laws of the United States or any state. Sec. 2256.014 Authorized Investment: Mutual Funds. (a) A no-load money market mutual fund is an authorized investment under this subchapter if the mutual fund: (1) is registered with and regulated by the Securities and Exchange Commission; (2) provides the investing entity with a prospectus and other information required by the Securities Exchange Act of 1934 (15 U.S.C. Section 78a et seq.) or the Investment Company Act of 1940 (15 U.S.C. Section 80a-1 et seq.) (3) has a dollar -weighted average stated maturity of 90 days or fewer; and (4) includes in its investment objectives the maintenance of a stable net asset value of $1 for each share. (b) In addition to a no-load money market mutual fund permitted as an authorized investment in Subsection (a), a no-load mutual fund is an authorized investment under this subchapter if the mutual fund: (1) is registered with the Securities and Exchange Commission; (2) has an average weighted maturity of less than two years; (3) is invested exclusively in obligations approved by this subchapter; (4)is continuously rated as to investment quality by at least one nationally recognized investment rating firm of not less than AAA or its equivalent; and (5) conforms to the requirements set forth in Sections 2256.016(b) and (c) relating to the eligibility of investment pools to receive and invest funds of investing entities. (c) An entity is not authorized by this section to: (1) invest in the aggregate more than 15 percent of its monthly average fund balance, excluding bond proceeds and reserves and other funds held for debt service, in mutual funds described in Subsection (b); or (2) invest any portion of bond proceeds, reserves and funds held for debt service, in mutual funds described in Subsection (b); or (3) invest its funds or funds under its control, including bond proceeds and reserves and other funds held for debt service, in any one mutual fund described in Subsection (a) or (b) in an amount that exceeds 10 percent of the total assets of the mutual fund. Sec. 2256.015 Authorized Investments: Guaranteed Investment Contracts. (a) A guaranteed investment contract is an authorized investment for bond proceeds under this subchapter if the guaranteed investment contract: (1) has a defined termination date; (2) is secured by obligations described by Section 2256.009(a)(1), excluding those obligations described by Section 2256.009(b), in an amount at least equal to the amount of bond proceeds invested under the contract; and (3) is pledged to the entity and deposited with the entity or with a third party selected and approved by the entity. (b) Bond proceeds, other than bond proceeds representing reserves and funds maintained for debt service purposes, may not be invested under this subchapter in a guaranteed investment contract with a term of longer than five years from the date of issuance of the bonds. (c) To be eligible as an authorized investment: (1) the governing body of the entity must specifically authorize guaranteed investment contracts as an eligible investment in the order, ordinance, or resolution authorizing the issuance of bonds; (2) the entity must receive bids from at least three separate providers with no material financial interest in the bonds from which proceeds were received; (3) the entity must purchase the highest yielding guaranteed investment contract for which a qualifying bid is received; (4) the price of the guaranteed investment contract must take into account the reasonably expected drawdown schedule for the bond proceeds to be invested; and (5) the provider must certify the administrative costs reasonably expected to be paid to third parties in connection with the guaranteed investment contract. Sec. 2256.016 Authorized Investment: Investment Pools. (a) An entity may invest its funds and funds under its control through an eligible investment pool if the governing body of the entity by rule, order, ordinance, or resolution, as appropriate, authorizes investment in the particular pool. An investment pool shall invest the funds it receives from entities in authorized investments permitted by this subchapter. (b) To be eligible to receive funds from and invest funds on behalf of an entity under this chapter, an investment pool must furnish to the investment officer or other authorized representative of the entity an offering circular or other similar disclosure instrument that contains, at a minimum, the following information: (1) the types of investments in which money is allowed to be invested; (2) the maximum average dollar -weighted maturity allowed, based on the stated maturity date, of the pool; (3) the maximum stated maturity date any investment security within the portfolio has; (4) the objectives of the pool; (5) the size of the pool; (6) the names of the members of the advisory board of the pool and the dates their terms expire; (7) the custodian bank that will safekeep the pool's assets; (8) whether the intent of the pool is to maintain a net asset value of one dollar and the risk of market price fluctuation; (9) whether the only source of payment is the assets of the pool at market value or whether there is a secondary source of payment, such as insurance or guarantees, and a description of the secondary source of payment; (10) the name and address of the independent auditor of the pool; (11) the requirements to be satisfied for an entity to deposit funds in and withdraw funds from the pool and any deadlines or other operating policies required for the entity to invest funds in and withdraw funds from the pool; and (12) the performance history of the pool, including yield, average dollar -weighted maturities, and expense ratios. (c) To maintain eligibility to receive funds from and invest funds on behalf of an entity under this chapter, an investment pool must furnish to the investment officer or other authorized representative of the entity: (I) investment transaction confirmations; and (2) a monthly report that contains, at a minimum, the following information: (A) the types and percentage breakdown of securities in which the pool is invested.. (B) the current average dollar -weighted maturity, based on the stated maturity date, of the pool; (C) the current percentage of the pool's portfolio in investments that have stated maturities of more than one year; (D) the book value versus the market value of the pool's portfolio, using amortized cost valuation; (E) the size of the pool; (F) the number of participants in the pool; (G) the custodian bank that is safekeeping the assets of the pool; (H) a listing of daily transaction activity of the entity participating in the pool; (I) the yield and expense ratio of the pool; (J) the portfolio managers of the pool; and (K) any changes or addenda to the offering circular. (e) An entity by contract may delegate to an investment pool the authority to hold legal title as custodian of investments purchased with its local funds. (f) In this section, "yield" shall be calculated in accordance with regulations governing the registration of open-end management investment companies under the Investment Company Act of 1940, as promulgated from time to time by the Federal Securities and Exchange Commission. (g) To be eligible to receive funds from and invest funds on behalf of an entity under this chapter, a public funds investment pool created to function as a money market mutual fund must mark its portfolio to market daily, and, to the extent reasonably possible, stabilize at a $1 net asset value. If the ratio of the market value of the portfolio divided by the book value of the portfolio is less than 0.995 or greater than 1.005, portfolio holdings shall be sold as necessary to maintain the ratio between 0.995 and 1.005. (h) To be eligible to receive funds from and invest funds on behalf of an entity under this chapter, a public funds investment pool must have an advisory board composed (1) equally of participants in the pool and other persons who do not have a business relationship with the pool and are qualified to advise the pool, for a public funds investment pool created under Chapter 791 and managed by a state agency; or (2) of participants in the pool and other persons who do not have a business relationship with the pool and are qualified to advise the pool, for other investment pools. (i) To maintain eligibility to receive funds from and invest funds on behalf of an entity under this chapter, an investment pool must be continuously rated no lower than AAA or AAA -m or at an equivalent rating by at least one nationally recognized rating service. Sec. 2256.017 Existing Investments. An entity is not required to liquidate investments that were authorized investment at the time of purchase. Sec. 2256.019 Ratings of Certain Investment Pools. A public funds investment pool must be continuously rated no lower than AAA or AAA -in or at an equivalent rating by at least one nationally recognized rating service or no lower than investment grade by at least one nationally recognized rating service with a weighted average maturity no greater than 90 days. Sec. 2256.020 Authorized Investments: Institutions of Higher Education. In addition to the authorized investments permitted by this subchapter, an institution of higher education may purchase, sell, and invest its funds and funds under its control in the following: (1) cash management and fixed income funds sponsored by organizations exempt from federal income taxation under Section 501(f), Internal Revenue Code of 1986 (26 U.S.C. Section 501(f)); (2) negotiable certificates of deposit issued by a bank that has a certificate of deposit rating of at least 1 or the equivalent by a nationally recognized credit rating agency or that is associated with a holding company having a commercial paper rating of at least A-1, P-1, or the equivalent by a nationally recognized credit rating agency; and (3) corporate bonds, debentures, or similar debt obligations rated by a nationally recognized investment rating firm in one of the two highest long-term rating categories, without regard to gradations within those categories. Sec. 2256.0201 Authorized Investment; Municipal Utility (a) A municipality that owns a municipal electric utility that is engaged in the distribution and sale of electric energy or natural gas to the public may enter into a hedging contract and related security and insurance agreements in relation to fuel oil, natural gas, and electric energy to protect against loss due to price fluctuations. A hedging transaction must comply with the regulations of the Commodity Futures Trading Commission and the Securities and Exchange Commission. If there is a conflict between the municipal charter of the municipality and this chapter, this chapter prevails. (b) A payment by the municipally owned electric or gas utility under a hedging contract or related agreement in relation to fuel supplies or fuel reserves is a fuel expense, and the utility may credit any amounts it receives under the contract or agreement against fuel expenses. (c) The governing body of a municipally owned electric or gas utility or the body vested with power to manage and operate the municipally owned electric or gas utility may set policy regarding hedging transactions. (d) In this section, "hedging" means the buying and selling of fuel oil, natural gas, and electric energy futures or options or similar contracts on those commodity futures as a protection against loss due to price fluctuations. Sec. 2256.021 Effect of Loss of Required Rating. An investment that requires a minimum rating under this subchapter does not qualify as an authorized investment during the period the investment does not have the minimum rating. An entity shall take all prudent measures that are consistent with its investment policy to liquidate an investment that does not have the minimum rating. Sec. 2256.022 Expansion of Investment Authority. Expansion of investment authority granted by this chapter shall require a risk assessment by the state auditor or performed at the direction of the state auditor, subject to the legislative audit commit approval of including the review in the audit plan under Section 321.013_ Sec. 2256.023 Internal Management Reports. (a) Not less than quarterly, the investment officer shall prepare and submit to the governing body of the entity a written report of investment transactions for all funds covered by this chapter for the preceding reporting period. (b) The report must: (1) describe in detail the investment position of the entity on the date of the report; (2) be prepared jointly by all investment officers of the entity; (3) be signed by each investment officer of the entity; (4) contain a summary statement prepared in compliance with generally accepted accounting principles of each pooled fund group that states the: (A) beginning market value for the reporting period; (B) additions and changes to the market value during the period; (E) ending market value for the period; and (F) fully accrued interest for the reporting period. (5) state the book value and market value of each separately invested asset at the beginning and end of the reporting period by the type of asset and fund type invested; (6) state the maturity date of each separately invested asset that has a maturity date; (7) state the account or fund or pooled fund group in the state agency or local government for which each individual investment was acquired; and (8) state the compliance of the investment portfolio of the state agency or local government as it relates to: (A) the investment strategy expressed in the agency's or local government's investment policy; and (B) relevant provisions of this chapter. (c) The report shall be presented not less than quarterly to the governing body and the chief executive officer of the entity within a reasonable time after the end of the period. (d) If an entity invests in other than money market mutual funds, investment pools or accounts offered by its depository bank in the form of certificates of deposit, or money market accounts or similar accounts, the 10 reports prepared by the investment officers under this section shall be formally reviewed at least annually by an independent auditor, and the result of the review shall be reported to the governing body by that auditor. Sec. 2256.024 Subchapter Cumulative (a) The authority granted by this subchapter is in addition to that granted by other law. Except as provided by Subsection (b), this subchapter does not: (1) prohibit an investment specifically authorized by other law; or (2) authorize an investment specifically prohibited by other law. (b) Except with respect to those investing entities described in Subsection (c), a security described in Section 2256.009(b) is not an authorized investment for a state agency, a local government, or another investing entity, notwithstanding any other provision of this chapter or other law to the contrary. (c) Mortgage pass through certificates and individual mortgage loans that may constitute an investment described in Section 2256.009(b) are authorized investments with respect to the housing bond programs operated by: (1) the Texas Department of Housing and Community Affairs or a nonprofit corporation created to act on its behalf; (2) an entity created under Chapter 392, Local Government Code; or (3) an entity created under Chapter 394, Local Government Code. Sec. 2256.025 Selection of Authorized Brokers The governing body of an entity subject to this subchapter or the designated investment committee of the entity shall, at least annually, review, revise, and adopt a list of qualified brokers that are authorized to engage in investment transactions with the entity. Sec. 2256.026 Statutory Compliance All investments made by entities must comply with this subchapter and all federal, state, and local statutes, rules or regulations. [SECTION 2256.027-2256.050 Reserved for expansion] SUBCHAPTER B. MISCELLANEOUS PROVISIONS. Sec. 2256.051 Electronic Funds Transfer. Any local government may use electronic funds means to transfer or invest all funds collected or controlled by the local government. Sec. 2256.052 Private Auditor. Notwithstanding any other law, a state agency shall employ a private auditor if authorized by the legislative audit committee either on the committee's initiative or on request of the governing body of the agency. Sec. 2256.053 Payment of Securities Purchased by State. The comptroller or the disbursing officer of an agency that has the power to invest assets directly may pay for authorized securities purchased from or through a member in good standing of the National Association of Securities Dealers or from or through a national or state bank on receiving an invoice from the seller of the securities showing that the securities have been purchased by the board or agency and that the amount to be paid for the securities is just, due and unpaid. A purchase of securities may not be made at a price that exceeds the existing market value of the securities. Sec. 2256.054 Delivery of Securities Purchased by State. A security purchased under this chapter may be delivered to the comptroller, a bank, or the board or agency investing its funds. The delivery shall be made under normal and recognized practices in the securities and banking industries, including the book entry procedure of the Federal Reserve Bank. Sec. 2256.055 Deposit of Securities Purchased By State. At the direction of the comptroller or the agency, a security purchased under this Chapter may be deposited in trust with a bank or federal reserve bank or branch designated by the comptroller, whether in or outside the state. The deposit shall be held in the entity's name as evidenced by a trust receipt of the bank with which the securities are deposited. 11 CHAPTER 2257. COLLATERAL FOR PUBLIC FUNDS SUBCHAPTER A. GENERAL PROVISIONS Effective as of September 9, 2003 & 2257.001. Short Title This chapter may be cited as the Public Funds Collateral Act. Added by Acts 1993, 73rd Leg, ch. 268, § 1, eff. Sept. 1, 1993,Acts 2003, 781h Leg, eff Sept 1, 2003. 4 2257.002. Definitions In this chapter: (1) "Bank holding company" has the meaning assigned by Section 31.002(a), Finance Code. (2) "Control' has the meaning assigned by Section 31.002(a), Finance Code. (3) "Deposit of public funds" means public funds of a public entity that: (A) the comptroller does not manage under Chapter 404; and (B) are held as a demand or time deposit by a depository institution expressly authorized by law to accept a public entity's demand or time deposit. (4) "Eligible security" means: (A) a surety bond; (B) an investment security; (C) an ownership or beneficial interest in an investment security, other than an option contract to purchase or sell an investment security; (D) a fixed-rate collateralized mortgage obligation that has an expected weighted average life of 10 years or less and does not constitute a high-risk mortgage security; or (E) a floating-rate collateralized mortgage obligation that does not constitute a high-risk mortgage security. (5) "Investment security" means: (A) an obligation that in the opinion of the attorney general of the United States is a general obligation of the United States and backed by its full faith and credit; (B) a general or special obligation issued by a public agency that is payable from taxes, revenues, or a combination of taxes and revenues; or (C) a security in which a public entity may invest under Subchapter A, Chapter 2256. (6) "Permitted institution" means: (A) a Federal Reserve Bank; (B) a clearing corporation, as defined by Section 8.102, Business & Commerce Code; (C) a bank eligible to be a custodian under Section 2257.041; or (D) a state or nationally chartered bank that is controlled by a bank holding company that controls a bank eligible to be a custodian under Section 2257.041. (7) "Public agency" means a state or a political or governmental entity, agency, instrumentality, or subdivision of a state, including a municipality, an institution of higher education, as defined by Section 61.003, Education Code, a junior college, a district created under Article XVI, Section 59, of the Texas Constitution, and a public hospital. (8) "Public entity" means a public agency in this state, but does not include an institution of higher education, as defined by Section 61.003, Education Code. (9) "State agency" means a public entity that: (A) has authority that is not limited to a geographic portion of the state; and (B) was created by the constitution or a statute. (10) "Trust receipt" means evidence of receipt, identification, and recording, including: (A) a physical controlled trust receipt; or (B) a written or electronically transmitted advice of transaction. Added by Acts 1993, 73rd Leg, ch. 268, § 1, eff. Sept. 1, 1993. Amended by Acts 1995, 74th Leg., ch. 76, § 5.48(a), eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 914, § 5, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 254, § 1, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 891, § 3.22(4), eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, § 8.70, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 62, § 7.63, eff. Sept. 1, 1999. 4 2257.0025. High -Risk Mortgage Security (a) For purposes of this chapter, a fixed-rate collateralized mortgage obligation is a high-risk mortgage security if the security: (1) has an average life sensitivity with a weighted average life that: (A) extends by more than four years, assuming an immediate and sustained parallel shift in the yield curve of plus 300 basis points; or (B) shortens by more than six years, assuming an immediate and sustained parallel shift in the yield curve of minus 300 basis points; and (2) is price sensitive; that is, the estimated change in the price of the mortgage derivative product is more than 17 percent, because of an immediate and sustained parallel shift in the yield curve of plus or minus 300 basis points. (b) For purposes of this chapter, a floating-rate collateralized mortgage obligation is a high-risk mortgage security if the security: (1) bears an interest rate that is equal to the contractual cap on the instrument; or (2) is price sensitive; that is, the estimated change in the price of the mortgage derivative product is more than 17 percent, because of an immediate and sustained parallel shift in the yield curve of plus or minus 300 basis points. Added by Acts 1997, 75th Leg, ch. 254, § 2, eff. Sept. 1, 1997. 4 2257.003. Chapter Not Applicable to Deferred Compensation Plans This chapter does not apply to funds that a public entity maintains or administers under a deferred compensation plan, the federal income tax treatment of which is governed by Section 401(k) or 457 of the Internal Revenue Code of 1986 (26 U.S.C. Sections 401(k) and 457). Added by Acts 1993, 73rd Leg., ch. 268, § 1, eff. Sept. 1, 1993. § 2257.004. Conflict With Other Law This chapter prevails over any other law relating to security for a deposit of public funds to the extent of any conflict. Added by Acts 1993, 73rd Leg, ch. 268, § 1, eff. Sept. 1, 1993. § 2257.005. Contract Governs Legal Action A legal action brought by or against a public entity that arises out of or in connection with the duties of a depository, custodian, or permitted institution under this chapter must be brought and maintained as provided by the contract with the public entity. Added by Acts 1993, 73rd Leg, ch. 268, § 1, eff. Sept. 1, 1991 SUBCHAPTER B. DEPOSITORY: SECURITY FOR DEPOSIT OF PUBLIC FUNDS 4 2257.021. Collateral Required A deposit of public funds shall be secured by eligible security to the extent and in the manner required by this chapter. Added by Acts 1993, 73rd Leg, ch. 268, § 1, eff. Sept. 1, 1993. 4 2257.022. Amount of Collateral (a) Except as provided by Subsection (b), the total value of eligible security to secure a deposit of public funds must be in an amount not less than the amount of the deposit of public funds: (1) increased by the amount of any accrued interest; and (2) reduced to the extent that the United States or an instrumentality of the United States insures the deposit. (b) The total value of eligible security described by Section 45.201(4)(D), Education Code, to secure a deposit of public funds of a school district must be in an amount not less than 110 percent of the amount of the deposit as determined under Subsection (a). The total market value of the eligible security must be reported at least once each month to the school district. (c)The value of a surety bond is its face value. (d) The value of an investment security is its market value. Added by Acts 1993, 73rd Leg, ch. 268, § 1, eff. Sept. 1, 1993, Acts of 781h Leg eff. Sept. 1, 2003. 6 2257.023. Collateral Policy (a) In accordance with a written policy approved by the governing body of the public entity, a public entity shall determine if an investment security is eligible to secure deposits of public funds. (b) The written policy may include: (1) the security of the institution that obtains or holds an investment security; (2) the substitution or release of an investment security; and (3) the method by which an investment security used to secure a deposit of public funds is valued. Added by Acts 1993, 73rd Leg, ch. 268, § 1, eff. Sept. 1, 1993. 2257.024. Contract for Securinq Deposit of Public Funds (a) A public entity may contract with a bank that has its main office or a branch office in this state to secure a deposit of public funds. (b) The contract may contain a term or condition relating to an investment security used as security for a deposit of public funds, including a term or condition relating to the: (1) possession of the collateral; (2) substitution or release of an investment security; (3) ownership of the investment securities of the bank used to secure a deposit of public funds; and (4) method by which an investment security used to secure a deposit of public funds is valued. Added by Acts 1993, 73rd Leg, ch. 268, § 1, eff. Sept. 1, 1993. Amended by Acts 1999, 76th Leg., ch. 344, § 5.006, eff. Sept. 1, 1999. $ 2257.025. Records of Depository (a) A public entity's depository shall maintain a separate, accurate, and complete record relating to a pledged investment security, a deposit of public funds, and a transaction related to a pledged investment security. (b) The comptroller or the public entity may examine and verify at any reasonable time a pledged investment security or a record a depository maintains under this section. Added by Acts 1993, 73rd Leg, ch. 268, § 1, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., ch. 891, § 3.16, eff. Sept. 1, 1997. 6 2257.026. Change in Amount or Activity of Deposits of Public Funds A public entity shall inform the depository for the public entity's deposit of public funds of a significant change in the amount or activity of those deposits within a reasonable time before the change occurs. Added by Acts 1993, 73rd Leg, ch. 268, § 1, eff. Sept. 1, 1993. SUBCHAPTER C. CUSTODIAN: PERMITTED INSTITUTION 4 2257.041. Deposit of Securities With Custodian (a) In addition to other authority granted by law, a depository for a public entity other than a state agency may deposit with a custodian a security pledged to secure a deposit of public funds. (b) At the request of the public entity, a depository for a public entity other than a state agency shall deposit with a custodian a security pledged to secure a deposit of public funds. (c) A depository for a state agency shall deposit with a custodian a security pledged to secure a deposit of public funds. The custodian and the state agency shall agree in writing on the terms and conditions for securing a deposit of public funds. (d) A custodian must be approved by the public entity and be: (1) a state or national bank that: (A) is designated by the comptroller as a state depository; (B) has its main office or a branch office in this state; and (C) has a capital stock and permanent surplus of $5 million or more; (2) the Texas Treasury Safekeeping Trust Company; (3) a Federal Reserve Bank or a branch of a Federal Reserve Bank; or (4) a federal home loan bank. (e) A custodian holds in trust the securities to secure the deposit of public funds of the public entity in the depository pledging the securities. Added by Acts 1993, 73rd Leg, ch. 268, § 1, eff. Sept. 1, 1993. Amended by Acts 1995, 74th Leg., ch. 1010, § 1, eff. June 17, 1995; Acts 1997, 75th Leg., ch. 891, § 3.17, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 344, § 5.007, eff. Sept. 1, 1999. & 2257.042. Deposit of Securities With Permitted Institution (a) A custodian may deposit with a permitted institution an investment security the custodian holds under Section 2257.041. (b) If a deposit is made under Subsection (a): (1) the permitted institution shall hold the investment security to secure funds the public entity deposits in the depository that pledges the investment security; (2) the trust receipt the custodian issues under Section 2257.045 shall show that the custodian has deposited the security in a permitted institution; and (3) the permitted institution, on receipt of the investment security, shall immediately issue to the custodian an advice of transaction or other document that is evidence that the custodian deposited the security in the permitted institution. Added by Acts 1993, 73rd Leg, ch. 268, § 1, eff. Sept. 1, 1993. § 2257.043. Depository as Custodian or Permitted Institution (a) A public entity other than a state agency may prohibit a depository or an entity of which the depository is a branch from being the custodian of or permitted institution for a security the depository pledges to secure a deposit of public funds. (b) A depository or an entity of which the depository is a branch may not be the custodian of or permitted institution for a security the depository pledges to secure a deposit of public funds by a state agency. Added by Acts 1993, 73rd Leg, ch. 268, § 1, eff. Sept. 1, 1993. 6 2257.044. Custodian as Bailee (a) A custodian under this chapter or a custodian of a security pledged to an institution of higher education, as defined by Section 61.003, Education Code, whether acting alone or through a permitted institution, is for all purposes the bailee or agent of the public entity or institution depositing the public funds with the depository. (b) To the extent of any conflict, Subsection (a) prevails over Chapter 8 or 9, Business & Commerce Code. Added by Acts 1993, 73rd Leg, ch. 268, § 1, eff. Sept. 1, 1993. S 2257.045. Receipt of Security by Custodian On receipt of an investment security, a custodian shall: (1) immediately identify on its books and records, by book entry or another method, the pledge of the security to the public entity; and (2) promptly issue and deliver to the appropriate public entity officer a trust receipt for the pledged security. Added by Acts 1993, 73rd Leg, ch. 268, § 1, eff. Sept. 1, 1993. & 2257.046. Books and Records of Custodian; Inspection (a) A public entity's custodian shall maintain a separate, accurate, and complete record relating to each pledged investment security and each transaction relating to a pledged investment security. (b) The comptroller or the public entity may examine and verify at any reasonable time a pledged investment security or a record a custodian maintains under this section. The public entity or its agent may inspect at any time an investment security evidenced by a trust receipt. (c) The public entity's custodian shall file a collateral report with the comptroller in the manner and on the dates prescribed by the comptroller. Added by -Acts 1993, 73rd Leg, ch. 268, § 1, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., ch. 891, § 3.18, eff. Sept. 1, 1997. § 2257.047. Books and Records of Permitted Institution (a) A permitted institution may apply book entry procedures when an investment security held by a custodian is deposited under Section 2257.042. (b) A permitted institution's records must at all times state the name of the custodian that deposits an investment security in the permitted institution. Added by Acts 1993, 73rd Leg, ch. 268, § 1, eff. Sept. 1, 1993. § 2257.048. Attachment and Perfection of Security Interest (a) A security interest that arises out of a depository's pledge of a security to secure a deposit of public funds by a public entity or an institution of higher education, as defined by Section 61.003, Education Code, is created, attaches, and is perfected for all purposes under state law from the time that the custodian identifies the pledge of the security on the custodian's books and records and issues the trust receipt. (b) A security interest in a pledged security remains perfected in the hands of a subsequent custodian or permitted institution. Added by Acts 1993, 73rd Leg, ch. 268, § 1, eff. Sept. 1, 1993 SUBCHAPTER D. AUDITS AND EXAMINATIONS: PENALTIES § 2257.061. Audits and Examinations As part of an audit or regulatory examination of a public entity's depository or custodian, the auditor or examiner shall: (1) examine and verify pledged investment securities and records maintained under Section 2257.025 or 2257.046; and (2) report any significant or material noncompliance with this chapter to the comptroller. Added by Acts 1993, 73rd Leg, ch. 268, § 1, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., ch. 891, § 3.19, eff. Sept. 1, 1997. § 2257.062. Penalties (a) The comptroller may revoke a depository's designation as a state depository for one year if, after notice and a hearing, the comptroller makes a written finding that the depository, while acting as either a depository or a custodian: (1) did not maintain reasonable compliance with this chapter; and (2) failed to remedy a violation of this chapter within a reasonable time after receiving written notice of the violation. (b) The comptroller may permanently revoke a depository's designation as a state depository if the comptroller makes a written finding that the depository: (1) has not maintained reasonable compliance with this chapter; and (2) has acted in bad faith by not remedying a violation of this chapter. Added by Acts 1993, 73rd Leg, ch. 268, § 1, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., ch. 891, § 3.19, eff. Sept. 1, 1997. § 2257.063. Mitigating Circumstances (a) The comptroller shall consider the total circumstances relating to the performance of a depository or custodian when the comptroller makes a finding required by Section 2257.062, including the extent to which the noncompliance is minor, isolated, temporary, or nonrecurrent. (b) The comptroller may not find that a depository or custodian did not maintain reasonable compliance with this chapter if the noncompliance results from the public entity's failure to comply with Section 2257.026. (c) This section does not relieve a depository or custodian of the obligation to secure a deposit of public funds with eligible security in the amount and manner required by this chapter within a reasonable time after the public entity deposits the deposit of public funds with the depository. Added by Acts 1993, 73rd Leg, ch. 268, § 1, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., ch. 891, § 3.19, eff. Sept. 1, 1997. § 2257.064. Reinstatement The comptroller may reinstate a depository's designation as a state depository if: (1) the comptroller determines that the depository has remedied all violations of this chapter; and (2) the depository assures the comptroller to the comptroller's satisfaction that the depository will maintain reasonable compliance with this chapter. Added by Acts 1993, 73rd Leg, ch. 268, § 1, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., ch. 891, § 3.19, eff. Sept. 1, 1997. SUBCHAPTER E. EXEMPT INSTITUTIONS S 2257.081. Definition in this subchapter, "exempt institution" means: (1) a public retirement system, as defined by Section 802.001; or (2) the permanent school fund, as described by Section 43.001, Education Code. Added by Acts 1993, 73rd Leg, ch. 268, § 1, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., ch. 165, § 6.31, eff. Sept. 1, 1997. § 2257.082. Funds of Exempt Institution An exempt institution is not required to have its funds fully insured or collateralized at all times if: (1) the funds are held by: (A) a custodian of the institution's assets under a trust agreement; or (B) a person in connection with a transaction related to an investment; and (2) the governing body of the institution, in exercising its fiduciary responsibility, determines that the institution is adequately protected by using a trust agreement, special deposit, surety bond, substantial deposit insurance, or other method an exempt institution commonly uses to protect itself from liability. Added by Acts 1993, 73rd Leg, ch. 268, § 1, eff. Sept. 1, 1993. 8 2257.083. Investment; Selection of Depository This chapter does not: (1) prohibit an exempt institution from prudently investing in a certificate of deposit; or (2) restrict the selection of a depository by the governing body of an exempt institution in accordance with its fiduciary duty. Added by Acts 1993, 73rd Leg, ch. 268, § 1, eff. Sept. 1, 1993. MINUTES OF THE WESTLAKE ACADEMY SCHOOL BOARD WORKSHOP August 4, 2404 Present: Scott Bradley, President Buddy Brown, Member Bill Frey, Member Fred Held, Member Don Redding, Member Larry Sparrow, Member Trent Petty, CEO Barbara Brizuela, Head of School Darcy MacFarlane, Assistant to the Head of School Debbie Piper, Finance Director Carolyn Sims, Director of Marketing & Public Affairs Troy Meyer, Recreation & Facilities Ginger Crosswy, Secretary Absent: No one. Item #1: President Bradley called the meeting to order at 9:28 a.m. by announcing a quorum. Item #2: Discuss planning for 2004-05 school year. President Bradley told the assembly this would be an open agenda with everyone free to discuss any item relating to the Academy. He asked Ms. Brizuela to recap the first year of the Academy and list anything considered a success, anything that can be improved on for the coming year and. any enhancements she would like to see regarding curricula and things of that nature. Ms. Brizuela began by stating that the Academy had been established with the intention of being a serious but pleasant place to be and this she feels has been accomplished. She told the Board that since everyone - teachers and students alike - were new, it had been difficult to build the school into a community; but the house system that was put into place had helped. She said one of the problems had been learning the TEA and state laws governing the Academy. Ms. Brizuela told the Board that the cliques in school, especially sixth grade, had been a problem, but the lady who will be the counselor this year worked as a part time teacher last year and was familiar with the situation. There was a long discussion regarding the students who are problem students and the discipline techniques used with emphasis put on the discretionary authority given the Head of School to give students a second chance to improve. Mr. Sparrow told Ms. Brizuela that the Board has every confidence in her decisions but if she ever feels there is a situation where the Board should be involved they would be happy to help. President Bradley told everyone that the only negatives he has heard from parents is that a very few students cause disruptions in the classroom and in some instances there is a failure to enforce the uniform policy. Ms. Brizuela answered that since the teachers last year were not accustomed to uniforms, they sometimes were not as observant as she is sure they will be this year since teacher awareness of this policy has been stressed. Mr. Petty told the Board that he feels the expulsion policy in the handbook is very weak. There was a lengthy discussion of this issue with the Board stating that they will back up any decision the CEO and the Head of School makes regarding any discipline issue. The Board told Ms. Brizuela if she would like to beef up this policy so everyone knows exactly what will and what will not be tolerated that would be fine, but that Ms. Brizuela has the support of all of the Board in dealing with these problems. The Board asked if the parents and students both were required to sign that they understood and agreed with the policy outlined in the Handbook and were told yes. Ms. Brizuela said the Academy has everyone sign an anti -bullying pledge and this has helped. Ms. Brizuela told the Board that the required IB application has been submitted and the consultation visit has been requested for November of this year. All teachers spent a week in Austin for their PYP and MYP training this summer. The meeting was recessed at 10:05 a.m. and reconvened at 10:30 a.m. Ms. Brizuela continued by going through the faculty for the 2004-05 academic year. She answered a question about compensation of teachers by stating that the Academy is paying teachers less than the surrounding school districts but in her opinion the best teachers are coming to the Academy because of (1) the testing policy, (2) class size and (3) teaching to the whole child, which is the IB curriculum. The curriculum appeals to the teacher because it helps to build character in the student. She then told the Board about the new music programs that are being implemented this year. She told the Board about the difficulty of bringing in the international teachers this year. There was a short discussion regarding the special needs students (there are 12) and the programs in place to address these needs. President Bradley asked if there would be any reason to approach any of the surrounding school districts regarding any cooperative efforts in this area. Ms. Brizuela said she had had lunch with the people from Northwest ISD last year and will speak with them concerning this issue. There was a long discussion about the admission policy with the Board asking Mr. Petty to examine the possibilities for admission requirements and to explore a pre-school and after-school program. The meeting recessed for lunch at 12:10 p.m. Mr. Sparrow and Mr. Brown left during this recess. The meeting reconvened at 1:05 p.m. with Mr. Meyer outlining the athletic programs that will be available to the students this year. Mr. Petty spoke regarding the expense of building sports fields and was asked to explore the charges associated with leasing fields from other sources. Mr. Petty told the Board they should be prepared for increased pressure from parents regarding athletics. Ms. MacFarlane gave the current enrollment figures for each grade, telling the Board that the third grade is already over the preferred number of students. There was a short discussion regarding class size and Mr. Petty then went through the expansion plans for the Academy, outlining the increased need for classroom space until the Academy occupies the current facility and additional buildings are in place. He spoke about the need to begin planning for the new Town Hall and high school buildings. Mr. Petty then gave the Board the breakdown on the debt service payments with the various options for increases in the revenue. The Board recessed at 2:40 p.m. The meeting reconvened at 2:55 p.m. with a lengthy discussion of the alternatives related to limiting enrollment and hiring a floating teacher for the third grade this year. The Board decided that there would be a workshop on the first day of school to determine the options after the exact enrollment numbers are known. There will be a workshop scheduled for 3:00 p.m. on Monday, August 23rd. There was a lengthy discussion regarding the amount of money that comes from the state for each student enrolled in the Academy and how much of the current tax payments made by residents comes to the Academy and how much stays with the school district. The issue of storage at the Academy was brought up with no solution being suggested. The workshop was adjourned at 4:35 p.m. Approved by the School Board on , 2004. Scott Bradley, President ATTEST: Ginger Crosswy, Secretary 0 MINUTES OF THE WESTLAKE ACADEMY SCHOOL BOARD MEETING August 9, 2004 Present: Scott Bradley, President Buddy Brown, Member Bill Frey, Member Fred Held, Member Don Redding, Member Larry Sparrow, Member Trent Petty, CEO Barbara Brizuela, Head of School Stan Lowry, Attorney Ginger Crosswy, Secretary Todd Wood, Human Resources Absent: No one. Item #1: President Bradley called the meeting to order at 6:35 p.m. by announcing a quorum. Item #2: Consider a Resolution adopting the proposed salary scale for the Westlake Academy. Mr. Petty told the Board that this salary scale will put the Academy salaries within 3% of the surrounding school districts pay scale. Ms. Brizuela spoke regarding this item, telling the Board that this special meeting was necessary because school will begin before the Board would adopt the budget that includes this information. After a short question and answer session there was a motion by Mr. Redding, seconded by Mr. Frey, to adopt Resolution No. 04-09. There was no further discussion and the motion carried unanimously. Item 43: There was a motion by Mr. Brown, seconded by Mr. Held, to approve the minutes of the regular meeting held on May 10, 2004 as presented. There was no discussion and the motion carried unanimously. Item #4: There was a motion by Mr. Redding, seconded by Mr. Sparrow, to adjourn. The motion carried unanimously and the meeting was adjourned at 6:47 p.m. Approved by the School Board on , 2004. Scott Bradley, President ATTEST: Ginger Crosswy, Secretary MINUTES OF THE WESTLAKE ACADEMY SCHOOL BOARD BUDGET WORKSHOP August 9, 2004 Present: Scott Bradley, President Buddy Brown, Member Bill Frey, Member Fred Held, Member Don Redding, Member Larry Sparrow, Member Trent Petty, CEO Barbara Brizuela, Head of School Darcy MacFarlane, Assistant to the Head of School Debbie Piper, Finance Director Ginger Crosswy, Secretary Todd Wood, Human Resources Absent: No one. .21 Item # 1: President Bradley called the meeting to order at 4:00 p.m. by announcing a G� Item #2: Mr. Petty gave the overview of the proposed budget, then turned the meeting over to Ms. Brizuela. Ms. Brizuela began by outlining the accomplishments of the Academy in the previous year and the goals and objectives of the Academy for the coming year. At the beginning of the 2003-04 school year there were 197 students with 123 on the waiting list. Currently for the 2004-05 school year there are 265 students with 529 on the waiting list. Ms. Brizuela presented the proposed budget to the Board and answered questions posed by the Board as various points were discussed. There was a lengthy discussion regarding lunch prices for the coming year with the Board consensus being to charge $3.00 total for the meal and milk. There was a short discussion concerning the building and running of a pre -kindergarten and after-school program. Item #3: The workshop was adjourned at 6:10 p.m. Approved by the School Board on , 2004. Scott Bradley, President ATTEST: Ginger Crosswy, Secretary Academy Fund 647-23-2941 Checks issued in May 2004 VENDOR NAME AMOl1NT NOTES CHECK Aviva Life Insurance $254.00 Annuity Payments 1117 Trans America Life Insurance $100.00 Annuity Payments 1118 USAA Insurance $500.00 Annuity Payments 1119 Blue Cross/Blue Shield $2,710.18 Health Insurance 1120 Borden $175.75 Milk Products -April 1121 Elizabeth Bowie $20.01 Classroom Supplies 1122 Barbara Brizuela $841.99 Travel Reimbursement - London 1123 CDW Government $275.00 (5) MBA Office Standard Software 1124 Dental Select $148.83 Dental Insurance 1125 Robert Foley $3,200.00 Legal Services 1126 Office Depot $526.51 Classroom/Office Supplies 1127 Paper Plate $1,234.35 Lunch Service - April 1128 Amy Schulze $16.00 Classroom Supplies 1129 Jean Shivers $26.11 Classroom Supplies 1130 Town of Westlake $18,895.19 Ins $14536.75 & Phone $4358.44 1131 A-1 Copier $92.50 3rd Quarter Billing for Copier 1132 Borden $163.73 Milk Products - May 1133 Elizabeth Bowie $55.07 Classroom Supplies 1134 Carol Brown $21.81 Classroom Supplies 1135 Sandra Holle $38.47 Nurse Supplies 1136 Maritza Jackson $14.97 Classroom Supplies 1137 Kaleidoscope $4,632.77 On -Site IT Support 1138 Cathy Lee $21.98 Classroom Supplies 1139 Paper Plate $1,314.30 Lunch Service - May 1140 Philadelphia Insurance $4,414.30 Umbrella Insurance #9 of 9 1141 Alison Schneider $117.76 Classroom Supplies 1142 Amy Schulze $634.01 Toner Cartridges 1143 Unum Life Insurance $97.75 Annuity Payments 1144 Aviva Life Insurance $254.00 Annuity Payments 1145 Trans America Life Insurance $100.00 Annuity Payments 1146 USAA Insurance $500.00 Annuity Payments 1147 IRS $4,168.16 Payroll Taxes 51004 Town of Westlake $203.90 Flexpool PR Deduction 51004 TMRS $4,246.02 May TMRS Deduction 52804 MANUAL CHECKS Original Works $94.00 Art Products 1218 Texas IB Schools $2,835.00 Curriculum & Staff Development 1219 Westlake HOC $7,454.20 Reimburse Yearbook Money 1222 Dallas Aquarium $147.00 Field Trip 1223 $50,015.42 Fund 199 Total $45,368.46 Federal Grant - Fund 258 Total $15,177.16 State Grant - Fund 411 Total ♦ ♦MM a ! ♦r Academy Fund 647-23-2941 Checks issued in June 2004 VENDt�R NAME ; • i)i iII SIN. • Academy Fund 647-23-2941 Checks issued in July 2004 VENDOR NAME`'AMOUNT NOTES CHECK # Aviva Life Insurance $254.00 AnnuityPayments 1189 Trans America Life Insurance $100.00 AnnuityPayments 1190 USAA Insurance $500.00 Annuity Payments 1191 Marisha Cooper $29.50 1192 Dental Select $136.83 Dental Insurance 1193 Federal Express $33.55 Shipping 1194 SCA Incorporated $2,388.09 Library Pro Training 1195 Town of Westlake $1,006.05 Legal/Phone 1196 Marsha Cooper $29.50 Field Trip 1197 Dental Select $136.83 Annuity Payments 1198 Federal Express $33.55 Delivery Services 1199 SCA Inc $2,388.09 Library Pro Training 1200 Town of Westlake $1,006.05 Reimbursement 1201 Voided replaced by ck# 1220 thru 1241 1202-1219 AppIe Computers $2,864.00 Computer Equipment 1220 Kaleidoscope Info Svc $7,168.14 Software 1221 NCS Pearson $6,050.00 Software Licenses 1222 Town of Westlake $1,714.44 Copier Rental/Legal/Internet 1223 Apple Computers $5,806.00 Computer Equipment 1224 Blue Cross Blue Shield $3,040.69 Annuity Payments 1225 CDW Government $1,012.48 Printer 1226 Council of International Schools $464.40 Membership Fee 1227 Dell Marketing L.P. $1,569.54 Computer Equipment 1228 Delta Education $1,989.25 Classroom Supplies 1229 Federal Express $74.58 Delivery Services 1230 Fla house, Inc. $497.95 PE/Recreation Equipment 1231 Hertz Furniture Systems $1,727.71 Classroom Furniture 1232 Kaplan Company $1,855.71 Classroom Supplies 1233 Lego Education $1,303.80 Classroom Supplies 1234 McGraw-Hill Education $1,583.15 Books 1235 School Specialty Inc $1,861.59 Classroom Supplies 1236 Simplex Grinnell LP $105.00 Service Fee 1237 S ortime $777.58 PE/Recreation Equipment 1238 Terminix $162.38 Pest Control 1239 Unum Life Insurance $76.50 Annuity Payments 1240 Xact $789.91 Letterhead & Envelopes 1241 IRS $3,547.93 Payroll Taxes 070204 Town of Westlake $203.90 Flexpool PR Deduction 070204 Town of Westlake $475.55 2nd Quarter TWC 070704 IRS $3,547.93 Payroll Taxes 071604 Town of Westlake $203.90 Flexpool PR Deduction 071604 IRS $3,627.30 Payroll Taxes 073004 TMRS $6,208.36 July TMRS Deduction 073004 $68,351.71 Fund 199 Totall $32,493.63 Federal Grant - Fund 258 Totall $34,288.54 State Grant -Fund 411 Total $1,569.54 Academy Fund 647-23-2941 Checks issued in August 2004 r, , VENDOR NAME :; X. lM,OUNT `:. NOTES CHECK# Xact Aviva Life Insurance Trans America Life Insurance USAA Insurance Delta Education $394.95 $254.00 $100.00 $500.00 $125.96 Letterhead & Envelopes Annuity Payments Annuity Payments Annuity Payments 1242 1243 1244 1245 1246 Genesis Technologies K12 Software Kaleidoscope Laminator Whse $1,420.00 $4,650.00 $1,642.44 $175.81 1247 1248 1249 1250 Office Depot $2,812.79 1251 Pearson Education $2,467.18 1252 Sax Arts & Crafts $1,099.12 1253 $15,642.25 Fund 199 Total Federal Grant - Fund 258 Total State Grant - Fund 411 Total