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Home My WebLink AboutRes 15-14 WA Amending FY 14-15 final and Adopting FY 15-16 WA budget WESTLAKE ACADEMY RESOLUTION NO. 15-14 A RESOLUTION OF THE BOARD OF TRUSTEES OF WESTLAKE ACADEMY TO ADOPT THE REVISED OPERATING BUDGET FOR FISCAL YEAR ENDING AUGUST 31, 2015 AND THE PROPOSED BUDGET FOR FISCAL YEAR ENDING AUGUST 31, 2416 INCLUDING INVESTMENT POLICY, FISCAL AND BUDGETARY POLICIES, COMMITTED AND ASSIGNED FUND BALANCES. BE IT RESOLVED BY THE BOARD OF DIRECTORS OF WESTLAKE ACADEMY: WHEREAS, Section 44.002 of the Education Code of the Texas Education Agency Texas School Law Bulletin states the budget must be prepared according to generally accepted accounting principles, and WHEREAS, the budget must be approved by the Soard of Trustees prior to August 31 St according to Texas Education Agency's Financial Accountability System Resource Guide, Section 2.6.2—TEA Legal Requirements; and WHEREAS,the Board of Trustees held a Public Hearing on August l Oth, 2015; and WHEREAS, the Board of Trustees finds that the passage of this Resolution is in the best interest of the citizens of Westlake as well as the students, their parents, and faculty of Westlake Academy. N4W, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE WESTLAKE ACADEMY: SECTION l: That, all matters stated in the recitals hereinabove are found to be true and correct and are incorporated herein by reference as if copied in their entirety. SECTION 2: That the Board of Trustees hereby adopts the revised Westlake Academy Operating Budget for the fiscal year ending August 31, 2015 and the proposed Westlake Academy Annual Operating Budget for the fiscal year ending August 31, 2016 and appropriates the funds contained therein attached to this resolution as Exhibit "A': SECTION 3: That the Board of Trustees hereby adopts the Fiscal and Budgetary Policies, Investment Policies, and the Committed and Assigned Fund Balance designations that are also included in Exhibit A. SECTION 4: That a copy of the official adopted 2015-2016 Budget shall be kept on file in the office of the Town Secretary. WA Resolution 15-14 Page 1�of 2 SECTION 5: If any portion of this resolution shall, for any reason, be declared invalid by any court of competent jurisdiction, such invalidity shall not affect the remaining provisions hereof and the Council hereby determines that it would have adopted this Resolution without the invalid provision. SECTION 6: That this resolution shall become effective from and after its date of passage. PASSED AND APPROVED ON THIS lOth DAY OF AUGU5T,2015. , � t Laur Wheat, President ATTEST: {�`'� E �" � "�w, s/�+'�'� �; �� ,# � �,f-c"��`�.- ' ,� i ; r s. Kelly Edwar , Board Secretary homas E. B r, uperintendent APPROVE AS TO F . ��,, .. �r ` L. on Lo Ja S. Bubert, School Attorney WA Resolution IS-14 Page 2 of 2 _ � . , � _ . - . � � . � . � . � � � e ac � � � � .� , ce nCe �a e � � � � .� N �° � � fleflectiue �' � �� = 7 � Risk•takers � � � �, � � �nq,��er�Balanccd � ' � � • � � inded . � v � � Open�m � � Caring v � � `Ceu`nc` I L�acy� of ti i�•e • chte�'`'' B°`ldin� a ��,11�� Cr�ate,..A rea�,,.. . � s � � � . , D - � � . , � , TABLE OF CONTENTS INTRODUCTORY SECTION Executive Summary.... 1 Community Profile_. 3. The History of Westlake Academy,----------------------------------------------------------------------------------------------------5 Budget Document Structure-----------------------------------------------------------------------------------------------------------�-� Board Members and Administration 8 ----------------------------------------------------------------------------------------------�-�-- Westlake Academy Mission,Vision, and Values________________________________________________________________________________9 BudgetFramework--------------------------------------------------------------------------------------------------------------------------10 Summary of Major Budget Components------------------------------------------------------------------------------------------12 Debt Service and Capital Expenditures_____________________________________________________________________________________________13 FinancialSummary,--------------------------------------------------------------------------------------------------------------------------14 IndividualFund Summary----------------------------------------------------------------------------------------------------------------16 Service Level Adjustments---------------------------------------------------------------------------------------------------------------17 BudgetTrends.................................................................................................................................18 PersonnelTrends-----------------------------------------------------------------------------------------------------------------------------21 Programs and Facilities--------------------------------------------------------------------------------------------------------------------21 Student Enrollment Trends and Benchmark Data.............................................................................22 ParentSurvey Results----------------------------------------------------------------------------------------------------------------------�� Financial Awards 28 --------------------------------------------------------------------------------------------------------------------------------- ORGANIZATIONAL SECTION Board Members and Administration 31 ................................................................................................ Westlake Academy Mission,Vision &Values___________________________________________________________________________________32 Achieving our Vision and Mission-----------------------------------------------------------------------------------------------------33 Westlake Academy's Desired Outcomes__________________________________________________________________________________________35 Westlake Academy Organizational Structure___________________________________________________________________________________36 Academy Leadership,.. 38 Financial Structure 39 TheBudget Process.-------------------------------------------------------------------------------------------------------------------------51 Fiscal and Budgetary Policies-----------------------------------------------------------------------------------------------------------52 Fund Balance Policies 61 ---------------------------------------------------------------------------------------------------------------------- InvestmentPolicy----------------------------------------------------------------------------------------------------------------------------62 FINANCIAL SECTION Major Revenue Sources and Expenditures_______________________________________________________________________________________69 Debt Service and Capital Expenditures--------------------------------------------------------------------------------------------�� Service Level Adjustments...............................................................................................................71 Financial Forecast 72 ------------------------------------------------------------------------------------------------------------------------------- i TABLE OF CONTENTS FiNANCiAL SECTiON (continued� ALL GOVERNMENTAL FUNDS Combined Statement of Revenues, Expenditures and Changes in Fund Balance.....................74 Total Revenues & Expenditures----------------------------------------------------------------------------------------------75 GENERALFUND Combined Statement of Revenues, Expenditures and Changes in Fund Balance ____________________77 Combining Statement of Revenues, Expenditures and Changes in Fund Balance....................79 Schedule of Expenditures by Function and Object Code_________________________________________________________80 Revenue and Expenditure Comparison___________________________________________________________________________________83 GENERAL FUND 199 Statement of Revenues, Expenditures and Changes in Fund Balance _____________________________________84 ATHLETIC ACTIVITIES FUND 198 Statement of Revenues, Expenditures and Changes in Fund Balance _____________________________________85 TRANSPORTATION/PARKING FUND 197 Statement of Revenues, Expenditures and Changes in Fund Balance _____________________________________86 ALL SPECIAL REVENUE FUNDS Combined Statement of Revenues, Expenditures and Changes in Fund Balance_____________________87 Combining Statement of Revenues, Expenditures and Changes in Fund Balance_____________________88 Schedule of Expenditures-------------------------------------------------------------------------------------------------------89 INFORMATIONAL SECTION AcademicPrograms-------------------------------------------------------------------------------------------------------------------------93 StudentEnrollment.-------------------------------------------------------------------------------------------------------------------------99 Personneland Staffing.-�-�-�-�-�---�-�--------------------------------------------------------------------------------------------------101 Performance and Benchmark Data.------------------------------------------------------------------------------------------------103 2014/15 Academic Achievements--------------------------------------------------------------------------------------------------107 2014/15 Athletic Achievements-----------------------------------------------------------------------------------------------------108 ParentSurvey Results--------------------------------------------------------------------------------------------------------------------109 2015/16 Academic Calendar----------------------------------------------------------------------------------------------------------110 Glossa ry-----------------------------------------------------------------------------------------------------------------------------------------111 Resolution 117 ------------------------------------------------------------------------------------------------------------------------------------------- ii �1��1�4T1�� H C��L [��l�I IV E�� FFI�I�L� I�1TER�I�TI��I�.L This Meritorious Budget Award is presented to WESTLAKE ACADEMY INTERNATIONAL BACCALAUREATE WORLD SCHOOL For excellence in the preparation and issuance of its school entity's budget for the Fiscal Year 2014-2015. The budget adheres to the principles and standards of ASBO International's Meritorious Budget Award criteria. /N1F�I�ITQRIC)U5 � �, 1 � I � ,��, �� I �� . ' .�,�-�. �. Terrie S. Simmons, RSBA, CSBO John D. Musso, CAE, RSBA President Executive Director iii �"- _ r-' �� , GUVERNMENT FI�IANCE C3FFICERS I�SSaCIATIaN ,, � is �ing�cish�d ��. �� Budg�et ��esentati�ar� , � ', Award ! , � ��, PRESENTEa Tt7 � � Westlake Academ '� �, Y ; `�, T"exas , Fc�r tf7e Fiscal Year Beginning �' Se�temb�r l, 2(�14 ��r'��=� Executive Directar The Government Finance Officers Association of the United States and Canada (GFOA) has presented a Distinguished Budget Presentation Award to the Westlake Academy for its annual budget for the fiscal year beginning October 1 , 2014. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communication device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. �� • � • � � � . --� a�, .� .� � �./ �P� ' � �' �,�- � � �` ��1��1�1� Cl � ��r�� a�� e ��« � -� � � � � � �� . � � � Y�� a r � � � v � ,� �� S�� S� � .� �► � � � �' .� � � � � _, � �" sv� � `'` • .� �� ` � ,� ,� `�' �' � � � � � �' � �' '�� .� � � � � 1 � � � 4 �� INTRODUCTORY SECTION EXECUTIVE SUMMARY As Superintendent of Westlake Academy, and in tandem with the administrative teams for both municipal and academic services, I am submitting for your consideration the Budget for FY 2015/16. Westlake Academy has faced a number of challenges over the last several years, including decreased state funding, increased rigor in state assessments, recruitment and retention of legacy teachers, facility expansion, and unprecedented growth. The students, staff, and faculty have shown an enormous amount of resiliency and determination to continually hold to our vision and rise to any challenge we have faced. It is with this in mind that we present this year's budget theme, "Dream...Create...Achieve: Building a Collective Legacy of Excellence." This budget encompasses all teaching and extra-curricular operating expenditures as well as State public school funding and private donations used to support the daily school operations of Westlake Academy.The FY 2015/16 General Fund budget totals$7,851,666, representing a 4% increase from the prior year primarily due to growth in staffing and instructional supplies and materials. Increases in FY 15/16 salary related expenditures include the direct and indirect costs associated with the addition of 4.10 full-time equivalent positions, increases in unemployment insurance and other employer contributions, and a realignment of the salary scale that will enhance our teacher recruiting and retention efforts. Even with the proposed 4% rise in expenditures,this year's budget increases fund balance by$89,960 for an ending balance of$1,106,911 which includes assigned funds to Technology and Uniform/Equipment Replacement. The daily operation of the Academy is made possible through our partnerships with the Town, Westlake Academy Foundation, and our affiliate groups. With their assistance,the Academy will be able to balance the budget beyond the five-year forecast. As mentioned above, one of the challenges we have recently faced is a reduction in state allocated funding for student education. We are pleased to report that we anticipate state public education funding will increase slightly over the levels of 2014/15, by approximately$60 per student. GENERAL FUND BUDGET SUMMARY Estimated Adopted $Increase %Increase GENERAL FUND FY 2014/15 FY 2015/16 (Decrease) (Decrease) Revenues $ 7,699,024 $ 7,941,626 $ 242,602 3% Expenditures (7,570,239) (7,851,666) (281,427) 4% Other Resources � 45,000 45,000 - 0% Other Uses (45,000) (45,000) - 0% EXCESS REVENUES OVER(UNDER) 128,785 89,960 (38,825) -30% EXPENDITURES FUND BALANCE BEGINNING 1,024,517 1,153,302 128,785 13% FUND BALANCE ENDING 1,153,301 1,243,262 89,960 8% Assigned (136,350) (136,350) - 0% FUND BALANCE ENDING (Unassigned) $ 1,016,952 $ 1,106,912 $ 89,960 9% #Days Operating(Based on 365) 49 51 2 5% Daily Operating Expenditure , $20,740 $21,511 $771 4% TEA Funding per Student $7,026 $7,085 $59 1% Operating Cost per Student $9,323 $9,437 $114 1% Employee Staffing 91.80 95.56 3.76 4% Student Teacher Ratio 14.65 14.26 (0.05) -1% 1 INTRODUCTORY SECTION As part of the Academy's unique financial structure the Town of Westlake is responsible for debt service payments associated with Westlake Academy's capital infrastructure. The Town's Debt Service Fund is used to manage debt service payments, and Academy debt is accounted for in the annual municipal budget. In addition,the Academy operates under a shared services model whereby the Town provides HR, Financial, Facilities, and Administrative support services to the Academy. General maintenance and replacement of infrastructure and equipment is also expensed to the Town's budget. The total cost of academic services is summarized below: Academic& Municipal Costs Estimated Adopted FY 2014/15 FY 2015/16 WA Operating Expenditures $ 8,130,181 $ 8,288,953 Municipal-Transfer to WA Operating Budget 300,000 300,000 Total Academic Costs 8,430,181 8,588,953 Annual Debt Service Payments 1,859,274 1,858,591 Major Maintenance and Replacement 361,800 227,330 Indirect Operating Costs (Shared Services) 579,537 579,492 Total Municipal Costs 2,800,611 2,665,413 . . . - . . . . i � With the projected addition of 20 students,total enrollment will rise to 832 this school year, putting the Academy at full capacity in accordance with the adopted Facility Master Plan. Enrollment numbers are expected to remain at this level until additional financial resources become available and the Board of Trustees approves Phase II of the Facility Master Plan. Note that there are no major capital projects budgeted or planned through FY 18/19, and that future Academy capital projects discussed in the Town of Westlake's Capital Improvement Plan are currently unfunded, under discussion only. Over the last year, many hours have been spent to further develop our vision of the future, determining the best opportunities that lay before us to help us accomplish our mission and truly become the "shining school on the hill." While we have many successes to celebrate, we are constantly striving to improve the Academy through multiple avenues, including getting the right people on the bus, making sure that we are consistently taking measure of our course, and making adjustments as we move towards our goal; it is through our talented faculty, staff, students, and their supportive families,that we are able to unfailingly rise to challenges and hold to our vision. On behalf of our entire learning community, I would like to thank the Board for their leadership, dedication to excellence, and their support in making Westlake Academy and the Town of Westlake a truly shining example of what can be accomplished when people come together with a common purpose: great things can happen! As with all good teams, it becomes necessary to draw attention to performers who go above and beyond to make sure we accomplish our goals. I would like to recognize the hard work of the Academic and Municipal Leadership Teams, and specifically Debbie Piper, Jaymi Ford, and Dr. Mechelle Bryson for their efforts in completing this award winning document. I know with the team we have in place, we will "build a collective legacy of excellence." I r�� Thomas E. Brymer Town Manager/Superintendent Westlake Academy z INTRODUCTORY SECTION COMMUNITY PROFILE The Town of Westlake is a one-of-a-kind community, an oasis of natural beauty located in the heart of the Dallas-Fort Worth metropolitan area. Distinctive residential developments and architecturally vibrant corporate campuses find harmony amongst our meandering roads, rolling hills, and grazing herds of longhorns and buffalo. Westlake's public trails are a hidden gem, winding through charming neighborhoods, groves of towering old-growth trees and picturesque landscapes that evoke the natural beauty of Texas. The highly regarded, municipally owned Westlake Academy and multiple corporate campuses have positioned Westlake as a leader in education, known for its innovative partnerships between the Academy and firms like Deloitte University. Hospitality finds its home in Westlake—we are family friendly, welcoming,fully involved community, invested in our rich heritage,vibrant present, and exciting, sustainable future. �� c� � , r,P�,to�, � - r Ponu<r oakG�o�m j"� �•.•��•...t. nerrc;an y 'ha�� LttlzElm 2B7 rn sn'.�, Fri9�, Or.sp i'[�° �► 'Jtvn FrpVIP. 1• . ... ew 1�-��1a�-�tJ J�rvnn . _c ..- ! nnaae .... The Colany s�y� Norcniake .:arc gi .. . �•�.�e .,e.,oie pak , .��r�.a riM1,me p Flower Lew;sville _,on �''- .,....:Q . � Mocnd ,�. �� .., n�ew k . Rnanr. .� � . n .:,.o � �i�' .. ,.. k.�ar,tla:� Q . ,.:.� _ �3ffO��Vfl , _.... . v ee� . Ma��r , .tr�ace �rpi�� da on _ ea ma � 1l I ' 'F. Kel.er L'r;�pz�•r ne r p.� I '��•J �R k gham� �' •la � F icac�+al 2B7 377 y�ancr R,...ku�f a,:�eeGty 921 G�d•3nd �°••vett � AZIZ 8� :�r,�a•.•:iIIF � �� iila[klan� ' �1-r,.��rt •,,� rs e. �P 'uW rdou•• �� Nor"i �i.-„m i .I�e.iy . LaF:e qag s F2 chlvnd H I s tu ess Iruinc �� t� �� HubbaM 9"a,,. 187� � y ri--.i i I.. .. Nram �nc�enaon �aees,oe HaL� ..�;y. Hure.l 12 � . :,i.:,� .�ke��+:or.n � .... , 67 •;:�I3na . .,�.;,, , .�iqpe�ale � . p :;. .M1 i��v2:".:ak,c, 12� � g� �2��25 h.�H4��lJl�fl e0 set:e- � - Fort Worth $0 Grend Forney -°c Arlinyton Praine ..-��_ �i 7� � �_a�.r e en �:.�� -- 38l �..qr. i -�raii 175 5alr.h e _ 960 � rc I.-:kF •n�inns rt e...:l•.n t.�_ icr,a e.I.nok 183 � ns- .d0A � � � — iar�. 1ge.:I�.F s F I IeLe'•, 377 g u:e Kenrei I SUL^"-': GIIRCdIIA'IIZ r�mnin= Sea owlle F3-il.•nnk F��rnan I :.=,:ol -'CranAall �. 'uVnea'lanG Rer,P.'�tnlr I al:� 6 �as[ar�a She""'OCA [J�p$6I0 w�� _om0ine ..�IS�. �rav:le .^.ecar Hill Lancaster � u`�"��`-�"'` lol�rsfiel^ � namcu ;:ienn Bi.rlescn ��fe 67 �z,n�nr tn:arsa�� TT ._. 2�@l Uwlla FeR� O ��u�..an �ed'�ak in.^ia Sc.,m Westlake is conveniently located between the Dallas/Fort Worth International Airport and Forth Worth Alliance Airport on the south side of State Highway 114, providing quick, easy access to all areas of the Dallas- Fort Worth Metroplex. The unique location of Westlake is ideal for many of its major corporate campuses and residential communities. The Town of Westlake has experienced exponential growth in the last decade. The national census reported 207 residents in 2000; by 2010 the population had grown to almost 1,000.The latest census figures estimate that Westlake has 1,194 residents. 3 INTRODUCTORY SECTION � • • � Date Incorporated 1956 Population: 1,194 overnight residents; over 10,000 daytime population Number of Households 344 Average Home Value (Market) $1,492,841; 100% of residents living in single-family households Median Household Income $233,750 Median Age 41 Over the last half century Westlake has transformed from an isolated ranching community into a premier location for high-end residential developments and corporate campuses that maintains a tranquil rural charm. In 2015,the average size of a new home was 9,693 square feet with an average estimated construction cost of $1.679 million. Westlake's focus on high-quality development has led to more than 1.4 million square feet of additional commercial space since 2005,valued at over$300 million. The Fidelity Investments campus alone employs over 5,000 and serves as a hub for financial services professionals. �, ,.� ��`� ,,. " ��. t � ��,. � r. ��i 1�v`�;; , a; - _- -- i,� �, � - s -0 . / �` a i * '� ��w _i. �� . �.� � -_ _ . �♦ - w...� i '� � i?, �- � -:� �:�� .. �� ,�I Y /�� 'i � . -. �.. l - !�" �s �n..�. ��tr�'�'�` ,., �i 4 6 P�,.'�' ,.,�, ..�w� � � : �. �� i, �f,y,d 't�1k�:.�' �t W a w'�y �� l l.__ .�-.. . i,` t r q�,.j3� .-� ... Y n. �.� "^_�., � t �.'"L� �`,. A, "', ,� � t / �' � 5 �,�i..a �-'� n �Yi,'. , . ,,��, .� . ...+h' . �7� �°' . '�� { �~ � ¢ �� 1f II*' ` � ` ��"�'. ��!.� � � t t r�Y` a� � �*,t�: �u„f..' �. . The Solana Office Complex was the first Since then Westlake of many corporate has added several Top Westlake Employers headquarters built additional corporate by IBM in the 1980s. residents that include I the following: � ' • Fidelity Investments, � � `�, • Core Logic �N�II� Far�a ___ - "" i�i� • T.D. Auto ��`�—� • Levi Strauss, Deloitte -- • and many more. � ��., � .�� .�;,, �: 4 INTRODUCTORY SECTION THE HISTORY OF WESTLAKE ACADEMY In 2002,the Town of Westlake successfully petitioned the Texas Education Agency (TEA) to establish a municipally operated open-enrollment charter school under Subchapter D, Chapter 12 of the Texas Education Code (TEC). Charter schools are public schools that are operated under a contract called a charter. Contracts are issued by an authorizing agent(s) in each state as determined by the state legislature. In Texas,the Texas Education Agency (TEA) acts as the authorizing body. In September of 2003,the Academy opened its doors for the first time, becoming the only municipally operated charter school in the State of Texas. The Academy is considered the largest operating department of the Town of Westlake and receives both financial and personnel support services from the municipality. The officials who pioneered the school decided to follow another bold path by aligning Westlake Academy with the globally recognized and acclaimed International Baccalaureate (IB) curriculum. The International Baccalaureate Organization is a non-profit educational foundation based in Geneva, Switzerland that offers four highly respected programmes of international education that develop the intellectual, personal, emotional and social skills needed to live, learn, and work in a rapidly globalizing world. Leading universities and government organizations recognize an IB education as excellent preparation for success in higher education,future careers, and personal life. In fact, colleges actively recruit IB graduates, frequently offering them credit or advanced standing for their IB coursework. Students who earn an IB diploma are equipped with the knowledge, skills, and abilities to compete with students around the world. IB instruction is currently being provided in over 900 schools nationwide and over 2,300 in 128 countries worldwide. .� —� -�.l�� «. � , • � � _ � � , , , � r h j-�j �'�:;.i ,+ �.� �,�� I: + '� � i � �� r � �4# � ,�. � '•;r �(^ „ , ;JL i/ { � ;�,• � � �!, ,. ��/jG� �1 i `� � �1_ y�r�� 'j�Y�7� � R �� .� � '�� !,_��,. !'�. .. �� /�4� i6` �^� �'�� r �� __ � ��, _ � �� ,' ` 'if `../ I 1 �- - �� `� ,. ti,,� j� �� A .� '�i _f' �' Iai 'J� '' � t.• M� `6 � � ��1I � #f 2 1 �� _ . �, � 'm�:�' ��• Westlake Academy became an IB World School in 2006 after it was authorized to offer the Primary Years Programme (grades K-5); further accreditation followed in 2007 with the Middle Years Programme (grades 6- 10), and 2008 with the Diploma Programme (grades 11-12), making it the first school in Texas and fifth school 5 INTRODUCTORY SECTION in the United States to offer all three IB programmes and a truly world class K-12 education. The Academy graduated its first MYP class in 2008, followed by the first DP graduates in 2010. The land and buildings that comprise the Westlake Academy campus are owned by the Town of Westlake. The campus is located on 23 acres adjacent to J.T. Ottinger Road, near the intersection of State Highways 114 and 170.The original campus included three stand-alone academic buildings with 29 classrooms, administrative offices, restrooms, a library, a breakout area, a performance hall, dining and kitchen area, locker rooms, and a gym,totaling 52,600 square feet. The Sam and Margaret Lee Arts& Sciences Center opened in August of 2009, adding another 8,400 square feet of building space to the campus. This facility includes one art room, two science labs,five offices, a workroom, conference room, restrooms and a breakout space. Three portable classroom buildings were placed into service in the fall of 2013 to accommodate enrollment growth,followed by an addition three in the fall of 2014. Phase One of the Facility Master Plan was completed in FY 14/15, adding three new buildings and approximately 38,000 square feet, including a classroom building with additional administrative office space, a multi-purpose hall that serves as both a cafeteria and gymnasium, and a field house that includes a classroom, weight room, locker room and showers, and storage space. , -�• _.�_- .:...-�,�..��, ,�.::�;��=�_ - - . ... ;.� - �� - � � � � . �, � �. `---�*� � �+ �. ,�,,,� —� `'�: '�'�. . t � "„�`"=°� .- �.;- � _ �-��4 �� ,� , ' . 1 y � , , , � � . r ;� r -- -:rl� > ' I ; . ._� „ iy ,_�• �. „�1• � . y ��'ws,' T� � � � � � �, �'. ��_ '� ��i .,,, r. �� , � ''�,�. �sr, r� `� �i ', . '��4 �-" `R• .:.� ��` �. - ` ��;; �`�, �:,'�' ,. .� �, , .�a '- . � ,� � _ ,' ./�� A �," �„� �. ��" - � �' - - .. �� ti�� •�" � ,�`�7,a� :.:.w� :r �y' '�.-� ;.v''�'pp��:-�v '�'`��': ��•'� ,:,;�• � 6 INTRODUCTORY SECTION BUDGET DOCUMENT STRUCTURE The goal of the budget document is to provide timely,transparent information concerning the past, current, and projected financial status of the Academy. The budget is a holistic planning document used in concert with our strategic plan to facilitate decisions that support the educational goals and strategic objectives of the Academy. Discussion and review of the information contained in both the strategic plan and the budget document consistently leads to operational and educational improvements that impact the students and parents of Westlake Academy. The development, review, and consideration of the 2015/16 Governmental Fund budgets (the General Fund and Special Revenue Funds) were completed with a detailed and exhaustive review of every revenue and expenditure item within the context of the Academy's Vision, Mission and Values statements, strategic planning efforts, and Board policy. The Board of Trustees provides governance and policy direction, while the Superintendent, finance department and campus and administrative staff develop the budget document for the Board's review. Staff reviews each existing expenditure request and the proposed allocations for the coming school year and asks "is this the best use of public funds?" The budget document and the year-end comprehensive annual financial audit are the primary vehicles through which the Academy's financial plans are presented. The budget document is organized into the following sections: • Executive Summary—Introduces the reader to the document as a whole. It highlights important information contained in the budget. Users rely on this section to get an overview of what they can expect to find in the rest of the document. • Organizational Section—Provides the context and framework within which the budget is developed and managed. This section includes the Academy's organizational and financial structure as well as the controls that direct and regulate the development and administration of the budget. • Financial Section—Presents the heart of the Academy's budget document. The adopted budget is presented as a series of financial schedules along with past budget figures and future projections. • Informational Section—Contains additional information about the Academy, including descriptions of the IB curriculum and programmes, enrollment and employment figures,testing and performance scores, benchmark data, academic achievements, and other miscellaneous data. � INTRODUCTORY SECTION BOARD MEMBERS AND ADMINISTRATION The Westlake Academy Board of Trustees consists of five trustees and the Board President. Each member of the Board serves a two year term with two members and the president being elected on alternate years. Several members of the Westlake Academy Leadership Team operate under a shared service agreement with the Town of Westlake and serve dual roles. BOARD OF TRUSTEES _ I '"`' � R ,�m, � , T . , . + ` ` "� � ��, � �':N � .� � +I � ll��' e'� � �� ', � I ��t� 1 Laura Alesa Michael Rick Carol Wayne Wheat Belvedere Barrett Rennhack Langdon Stoltenberg Board President ^'"'^'"'"'"'"'"'^'"'^'"'^'"'^'"'^'"'^'"'"'"'"'"'^'Board of Trustees�^'�^'�^'�^'��^'�^'�^'��^'�^'^' WESTLAI< E ACADEMY LEADERSHIP TEAM *Thomas E. Brymer Dr.Mechelle Bryson Superintendent of Schools Executive Principal *Amanda DeGan Alan Burt Assistant Town Manager Assistant Principal and Director of Athletics *Debbie Piper Stacy Stoyanoff Director of Finance DP Principal *Troy Meyer Dr.Andra Barton Director of Facilities Middle Years Principal *Jason Power Terri Watson Director of Information Technology MYP Coordinator *Ginger Awtry Rod Harding Director of Communications &Community Affairs PrimaryYears Principal *Todd Wood Director of Human Resources and Admin Alison Schneider Services PYP Coordinator *Asterisk denotes shared services Jennifer Furnish personnel between the academic Student Services Administrator and municipal service teams of Dr.Shelly Myers the Town of Westlake. Executive Director of the WAF & Director of Development I s INTRODUCTORY SECTION WESTLAKE ACADEMY MISSION� VISION � VALUES Founded in 2003 with a mission to achieve academic excellence and develop life-long learners who become well-balanced, responsible global citizens, Westlake Academy is the first and only municipally- owned charter school in the State of Texas.The Academy is the fifth school of only ten in the United States, and the only public school,to offer the full IB curriculum for grades K-12. During this year's budget retreat great care and consideration was given to the mission and vision of the Academy and the impact that these have on both the long-term goals of the Academy and its day- to-day operation. The vision and mission statements represent the outcome of this discussion and evidence the Board's continued dedication to academic excellence and personal achievement. The values statements are currently being reviewed by the Board and are listed here for reference only. MissiON "Westlake Academy is an IB World Schoo/whose mission is to provide students with an internationally minded education of the highest quality, so they are well-balanced and respectful life-long learners." � - VISION '�..__ � _ �'� "Westlake Academy inspires college bound students to achieve � their highest individual potential in a nurturing environment ;� �� - that fosters the traits found in the Ie learner profile." � � �y � � . � � � ==� �Inquirers, Knowledgeable, Thinkers, Communicators, Principled, _ - - , Open-minded, Caring, Risk-takers, Balanced, and Reflective� � �; t � � - �- " � VALUES - Maximizing Personal Development �n=� _� Academic Excellence - p Respect for Self and Others -� • ,� Personal Responsibility �* _ Compassion and Understanding _ � :;:� `.-� ' ,� ` � DESIRED OUTCOMES , ' � The following desired outcomes summarize the goals and objectives - established by the Board of Trustees and leadership staff at the Academy: :� �� .� High Student Achievement — � '`� �� Strong Parent& Community Connections � �� Financial Stewardship&Sustainability �� Student Engagement-Extracurricular Activities � - Effective Educators&Staff �;` � � _ 9 INTRODUCTORY SECTION BUDGET FRAMEWORK GOVERNING AND MANAGING FOR OUTCOMES The budget document is but one part of a system designed to link together critical governance and management decision making tools. This system is called "Governing and Managing for Outcomes" and is designed to integrate: • Strategic planning • Five (5)year financial forecasting, budgeting, and performance measurement linked to priorities, objectives, and outcomes • Reporting to monitor progress in outcome achievement and accountability for results • Aligning human and financial resources to prioritized outcomes and objectives • Long term approach to ensure financial sustainability • Working within Board adopted financial policies for the Academy • Maintaining core services BALANCED $CORECARD $YSTEM The Academy is in the process of designing a strategic planning and performance management framework based on the Balanced Scorecard system. The Balanced Scorecard is a strategic planning and management tool that is used extensively in business and industry, government, and nonprofit organizations worldwide to align operational activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. The Balanced Scorecard provides a systematic way to answer the questions: 1. What are we trying to accomplish? 2. Are we doing the right things? 3. If we are doing the right things, are we doing them efficiently and effectively? S3'RA TEGIG PLANIV�N+G �L �ANAGEMEN'1' LVITH A $ALAIVCED SCC?��ft,E�AttI? STRATEGIC r r r . � ALTITl10E 30,000 ft. M�SS�oN 1/iSlQN 25,OQQ#t. S'T�iATEG1C THE141ES $ RE5UGT5 ST6lATE.!'a!C PERSPECTl�IIES 15,(1�D fC. S7'RpTEGIC I�BJELTIVE� $S'TIiA7EGY INAP RE�o�c� Measur�s ar�a Tiar�cers Ground / Le�el ''r`aTRATEGIC INfT1ATilI�S 10 INTRODUCTORY SECTION BUDGET PROCESS Projecting the budget allocations of the Academy is a continual process that responds to the changing needs of the Academy students and staff as well as variations in the fiscal environment such as the reduced State funding from FY 09/10. The development of the Academy budget for fiscal year 15/16 began with the Westlake Board of Trustees meeting that was held in May of 2015. Following is a summary of the main steps taken in preparation of the adopted budget: • Board of Trustee Budget Review-The Board of Trustees regularly receives quarterly budget updates, some of which are detailed in the trend analysis and the five-year financial forecast discussed later in this document. Upon receipt of the adopted annual budget, the Board holds budget workshops to review adopted changes,their associated outcomes for the next fiscal year, as well as their impact in a five (5)year financial forecast. • BudgetAdoption-The Board of Trustees conducts the required public meeting and adopts the budget in August prior to beginning the fiscal year which runs from September 1st to August 31st. • BudgetAmendments-The Final Amended Budget for the Year Ending August 31, 2015,will be submitted at the August 2015 Board meeting. It will reflect all amendments previously approved by the Board of Trustees plus any final amendments. Often,these amendments influence the shaping of the current budget as actual trends in revenues and expenditures are realized and accounted for at that time. • AcademyApproach-The Academy approach to balancing the combination of fast student growth in a restricted funding environment along with increasing academic standards requires that the budget process be instructionally driven and guided by the Academy's Strategic Plan. During the budget development process the staff reviewed all revenues and expenditures and focused on aligning the allocation of resources, both personnel and financial, with the accomplishment of established goals and outcome objectives contained in our Strategy Map. • eudget Calendar-The Budget Process covers the financial cycle starting with budget planning and ending with the audited annual financial report. � - . . . � October- Dec Strategic Plan review and development occurs December Westlake Academy Instructional Leadership Team (ILT) begins planning upcoming budget January ILT meets with WA affiliates for joint planning January- March Review/Develop CIP, Five Year Projection & Personne) Cost Estimates April Develop improvement plans for each grade level/dept. May Strategic Plan preparation process occurs; preliminary budgets developed May BOT Budget Retreat June Current budget review; budget amendments for current year if necessary August BOT consideration/adoption of Westlake Academy Budget for Upcoming School Year December Annual financial audit Zi INTRODUCTORY SECTION SUMMARY OF MAJOR BUDGET COMPONENTS REVENUES The revenues received by Westlake Academy are classified into one of three broad categories: State, Federal and Local. • State funding is the Academy's largest revenue source, making up over 78%of total revenues. Staff estimates that aid received through the State's Foundation School Program (FSP) in FY 15/16 will be approximately$7,085 per student; this represents a small (less than 1%) increase from FY 14/15. • Local funding consists of two major sources,the Town of Westlake and the Westlake Academy Foundation (WAF). The Town provides administrative, HR,facilities, and financial services for the Academy and is responsible for all debt service payments relating to Academy facilities and infrastructure.The Foundation is an independent, non-profit organization that raises funds through donations and various fundraising efforts. Annual fundraising activities include the Blacksmith Campaign, which is used to close the funding gap between State allocations and school needs. The Blacksmith Campaign is directed towards the parents of Academy students and tries to leverage individual donations with employers who have charitable matching programs.The Blacksmith Campaign is held each year in the month of October with the goal of raising$2,500 per student. • Federal funding is received through grants that support special education and accounts for approximately one percent (1%) of revenues for all funds. EXPENDITURES & SHARED SERVICES MODEL Compensation and benefits are Westlake Academy's largest operating cost. In FY 15/16, staff recommends a realignment of the salary scale,following Board policy which states a desire to maintain the median salary within three percent (3%) of the districts surveyed for market comparison purposes. This realignment would result in an average salary increase of 3.9%from FY 14/15. Pay steps furthest from the estimated market median would be increased by up to 5.52%. The pay steps furthest from the market median are primarily in years 0-7, and will consequently require larger adjustments to realize our desired market position. The increase equals approximately$130,500 with an additional $12,500 in insurance increases. Realignment of the salary scale will be a valuable tool in the Academy's recruiting and retention effort. Administrative,financial, human resources and facilities services are provided by the Town of Westlake under a shared services model. These service costs were previously booked to the Westlake Academy operating budget, but were removed from the operating budget in the FY 12/13 school year.The following table illustrates indirect operating costs which are booked to the Town of Westlake's General Fund and Debt Service Fund. 12 INTRODUCTORY SECTION Estimated Adopted $Increase %Increase Academic&Municipal Costs FY 2014/15 FY 2015/16 (Decrease) (Decrease) Operating Expenditures $ 8,130,181 $ 8,288,953 $ 158,772 1.95% Municipal-Transfer to WA Operating Budget 300,000 300,000 - 0.00% I Total Academic Costs 8,430,181 8,588,953 158,772 1.88% Annual Debt Service Payments 1,859,274 1,858,591 (683) -0.04% Major Maintenance and Replacement 361,800 227,330 (134,470) -37.17% Indirect Operating Costs(Shared Services) 579,537 579,492 (45) -0.01% Total Municipal Costs 2,800,611 2,665,413 (135,198) -4.83% m;v�- .`�e i`, wy n.,e��i I"��;-�'¢� - u� �,� :�� a E '�;'�I.r �'�-: �Q' LY; h`s`+' �N '.v Number of Students 812 832 20 2.46% Cost per Student $ 13,831 $ 13,527 $ (304) -2.20% DEBT SERVICE & CAPITAL EXPENDITURES The Town of Westlake is responsible for debt service payments associated with Westlake Academy's capital infrastructure. The Town's Debt Service Fund is used to manage payments, and Academy debt is accounted for in the annual municipal budget. Approximately$30M in debt has been issued since 2002 to develop Academy facilities; this debt will be fully retired in 2043. The average annual debt service for Academy facilities paid by the Town of Westlake is approximately$1.856M. FY 15/16 debt service payments related to the construction of Westlake Academy facilities include: • $702,383 on Series 2007 General Obligation Refunding Bonds • $312,800 on Series 2011 General Obligation Refunding Bonds • $448,198 on Series 2013 Certificates of Obligation • $142,650 on Series 2013 General Obligation Refunding Bonds • $252,560 on Series 2014 General Obligation Refunding Bonds For more information, see Town of Westlake FY 15/16 Annual Municipal Budget, available online at www.westlake-tx.org. �F.".,'7.'s;� r x� '.. - A . . V.�F � .., 4 . ��Y�i �' ,�y�r^`i�7 X�.�^.' �.,�+' ��,� � ,�t � , . 3'y S',t".'��t- 1'�'' ,1;, � � ;� � �y � � ` �'e ''� _ ,b.�'Y �j� �� b�. L 9 r ��'` , „�` �'�� `7�'� £- � � ^� � � .° �' � ¢ � �r ,�1 y�` � � ��;�� I �•�., 3 ��n ' �` � «. .. �, � .rt f `�".^�,. � �� `� �? � ` r �� ,�'�� '.-�.+ '': � * �� ,i ' �, "�� w" � ,r � :� . °�i . � � � 1,.�� ' �� ` ...,� } � . �"____ . � . `A !�� .. ,�� #�{ . .t , i � ' . .. '.��: ^ � w s � .... '_ ,�'-.k�. � � �f ,�++ � �� `'-rvA '7'Fr$.•1-,_ �..... . , "_ t,,,y�.� �! ..�,'•-`• �- j�- t' � � S`�t '- "I:-;t -� S a '�•�'MMi �� , _ •'�~ ._ �.. . .- . L�- �-"rk...:.Ac.. ". _. _ _ - ,� .. - � �'.�� _ � :�- .%=ie�Y�S� �.~t:�. - _� T ' 13 INTRODUCTORY SECTION FINANCIAL SUMMARY The budget is developed within the guidelines established by the Texas Education Agency and is organized into a series of accounts called funds. The total revenue for all funds of the Academy is estimated to be $8,279,913 and total expenditure appropriations amount to $8,288,953. The following schedules present a comparison of revenues and expenditures for all Governmental Funds in the Academy's Budget. A public school operating budget is legally required to include the Academy's General, Debt Service, and Food Service Funds. However, the Academy does not maintain a Food Service Fund or a Debt Service Fund, so the General Fund is the only legally adopted fund. For informational purposes only, budgets for Special Revenue Funds are included throughout the presentation. REVENUE SUMMARY — ALL GOVERNMENTAL FUNDS The largest revenue source for Westlake Academy is State Foundation School Program funding which makes up approximately three-quarters of All Governmental fund revenues. Adopted Estimated Adopted Audited Audited Audited Budget Budget Budget FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 14/15 FY 15/16 Local Revenues $ 1,237,004 $ 1,158,045 $ 1,636,975 $ 1,711,305 $ 2,132,698 $ 1,754,220 State Revenues 4,362,921 4,696,540 5,269,641 5,782,092 6,104,248 6,435,693 Federal Revenues 152,351 81,958 80,103 73,896 162,270 90,000 � $ 5,752,276 $ 5,936,543 $6,986,719 $7,567,293 $8,399,215 $8,279,913 Federal Program All Governmental Funds Revenues Revenues 1ro �Local Revenues 21% 14 INTRODUCTORY SECTION EXPENDITURES BY FUNCTION - ALL GOVERNMENTAL FUNDS The largest expenditure category is Payroll&Related items which makes up approximately three-quarters of all Governmental fund expenditures. Adopted Estimated Adopted Audited Audited Audited Budget Budget Budget FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 14/15 FY 15/16 11 -Instructional $3,170,372 $3,458,116 $4,264,664 $4,621,940 $4,725,156 $4,906,188 12 -Resources&Media 89,129 57,784 57,884 66,252 68,452 74,801 13 -Staff Development Y 74,656 130,442 148,356 129,589 220,260 197,590 21 -Instructional Leadership 135,962 93,964 165,116 237,967 260,737 264,259 23 -School Leadership 347,515 341,039 597,075 660,620 724,498 801,866 31 -Guidance&Counseling 232,419 244,900 282,334 246,539 280,169 205,230 33 -Health Services � 60,917 58,208 61,890 68,711 69,585 66,617 35 -Food Services 11,517 - - 500 - - 36-Co Curricular/Extra.Activities 131,972 125,139 152,261 171,255 164,461 171,774 41 -Administrative 675,763 363,548 389,673 343,835 353,992 306,986 51 -Maintenance&Operations 596,913 614,042 733,367 956,091 950,567 915,068 52- Security&Monitoring Services - 700 5,695 53 -Data Processing 173,587 160,695 177,063 105,015 111,015 169,678 61 -Community Services � 76,880 86,845 113,995 110,824 110,024 112,638 71 -Debt Service - - 3,733 84,186 90,565 90,565 81 -Facility Acquisition/Construction 15,960 27,930 - - - - $5,793,561 $5,762,652 $7,147,411 $7,803,324 $8,130,180 $8,288,953 . -. All Governmental Funds Expenditures by Object �,::. I 65XX-Debt Service I�' 62XX-Contracted 1�� Services 64XX-Other Operating 5% 63XX-Supplies& 12% Materials 9% 15 INTRODUCTORY SECTION INDIVIDUAL FUND SUMMARY GENERAL FUND The General Fund is a governmental fund with budgetary control which is used to show transactions resulting from operations of on-going organizations and activities from a variety of revenue sources. Revenue & Expenditure Comparison io 8 $6.56 $6.73 $7.70 $7.57 $7.94 $7.85 0 6 $5.24 $5.29 $5.64 $5.50 � 4 2 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 ■Total Revenues ■Total Expenditures SPECIAL REVENUE FUNDS Special Revenue Funds account for local, state and federally financed programs or expenditures legally restricted for specified purposes or where unused balances are returned to the grantor at the close of a specified project period. I Variance Estimated Adopted Estimated I FY 14/15 FY 15/16 to Adopted I � Federal Grants through TEA Fund 224-IDEA B $ 162,270 $ 90,000 $ (72,270) Sub-total Federal Grants 162,270 90,000 (72,270) State Grants through TEA I i i I I Fund 410-Material Allotment Disbursement I 33,589 I 142,787 I 109,198 I Sub-total State Grants 33,589 142,787 109,198 I Local Activities , II i Fund 461-Local Campus Activity 26,000 26,000 I - Fund 484-Local Grants(HOC&WAF) 18,000 - (18,000) I Fund 498-International Mindedness Symposium I 6,000 6,000 � � Sub-total Local Activities 44,000 , 32,000 (12,000) Hudson Foundation Grants II Fund 481- Hudson Foundation Curriculum Development (3,460) (3,460) Fund 485-MYP Principal&Discretionary Funds 100,000 - (100,000) I Fund 493-Salary&Curriculum Support 55,000 - (55,000) � Fund 496-Hudson Foundation 55,000 120,000 65,000 Sub-total Hudson Foundation Grants 213,460 120,000 (93,460) Westlake Academy Foundation(WAF)Grants Fund 494-Science Department 27,850 - (27,850) Fund 495-Fund an Item I 77,773 I 50,000 I (27,773) Fund 497-Financial Assistance 1,000 2,500 1,500 Sub-total Foundation Grants 106,623 52,500 (54,123) Grant Total-All Special Revenue Funds Expenditures $ 559,941 $ 437,287 $ (122,654) 16 INTRODUCTORY SECTION SERVICE LEVEL ADJUSTMENTS This budget makes use of Service Level Adjustments (SLA)to track cost changes. There are four types of Service Level Adjustments: (1) increased operating costs to maintain current levels of service, (2) increased operating costs due to expanded levels of service, (3) increased costs due to the development of new services, and (4) cost savings. Cost savings may occur for any number of reasons, but primarily arise due to increased efficiency, service level reductions, or not expending budgeted resources. Note that totals in brackets ( ) denote a decrease in expenditures. For FY 2015/16, staff recommends the following adjustments: Salary Related Expenditures Total: $389,003 Balanced Scorecard Perspective: People, Facilities, &Technology Outcome Objective: Attract, Recruit, Retain, & Develop the Highest Quality Workforce • Increases in FY 15/16 salary related expenditures are primarily due to the direct and indirect costs associated with the addition of 4.10 full-time equivalent positions, increases in unemployment insurance and other employer contributions, and a realignment of the salary scale that will enhance our teacher recruiting and retention efforts. Professional & Contracted Services Total: $(153,094) Balanced Scorecard Perspective: Academic Operations Outcome Objective: Improve the Efficiencies of Operational Systems • This category includes expenditures related to professional and contracted services rendered to the Academy by firms, individuals, and other organizations. Cost savings in contract services are the result of a staff analysis that concluded it would be more cost effective to directly employ certain support staff, including a speech language pathologist, as opposed to contracting out for services. Supplies & Materials Total: $53,336 Balanced Scorecard Perspective: Academic Operations Outcome Objective: Optimize Student Potential • Supplies and materials costs are associated with consumables that are used in the classroom, maintenance of the campus, books, iPads,testing materials,furniture, and classroom supplies. Other Operatin� Costs Total: $(7,818) Balanced Scorecard Perspective: People, Facilities, &Technology Outcome Objective: Increase the Capacity of Teachers & Staff • Other operating costs are associated with insurance, professional development,travel, membership fees and dues, graduations expenses, and miscellaneous costs. Cost savings in this category were shifted to Supplies and Materials. i� INTRODUCTORY SECTION BUDGET TRENDS GENERAL FUND — STATE FUNDING Despite a 4% historical average annual growth rate, the State of Texas continues to lag behind the national per pupil funding average, providing$1,000 to $1,500 less per pupil than the national average. Westlake Academy receives even less State funding per student than the Texas average because public charter schools in the State of Texas do not receive facility funding. The Academy's State funding per pupil peaked in FY 09/10 but was cut the following two years due to State budget shortfalls. The State increased funding by approximately four percent (4%) in 2013. In FY 2015/16,the Academy anticipates that state funding will increase slightly (less than 1%) from FY 2014/15. Westlake Academy receives minimal federal funding, (IDEA B—Special Education Funds) depending primarily upon state education funds and private donations to cover operating costs. Average State Funding per Student s • � � • • FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 Estimated Adopted ■Average State Funding/Student Adjusted for Inflation Due to prior state funding reductions,the Academy has become more dependent upon private donations for operating costs and further financial support from the Town of Westlake. Funding ongoing operating costs with one-time dollars raised through private donations places the Academy in a potentially tenuous situation. If private donations do not meet the levels necessary to offset public education reductions,then the Town of Westlake must increase financial support or consider reducing the associated service levels. �� n � � -� , ' �. � y �iL: _ - � . 4� -=- - - � �°�:� .� � ti."R•� e� .a «,� �� -� �i�s �� .`� � i��° R � i�9�r :�� ,, - ��, - .. � ,.�, ,� , a_ � �`� �� « `"�. ```� �:- :,: is INTRODUCTORY SECTION Gifts&Donations Revenues by Source $9 InterestEarned $g Food Services � $7 � Transportation/Parking �, $6 � Other Local Revenue o � ' _ $5 !WAF Fund-an-Item � � $4 I � , ■WAF Salary Reimbursement $3 � � • �Athletic Activities . , � . $2 ' � . Town Contribution $1 I �WAF Blacksmith $0 I— —. FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 ■State Revenue Estimated Adopted The Academy's primary revenue sources continue to be the Foundation School Program and the Westlake Academy Foundation. State funding has fallen from 86%of General Fund revenues in FY 09/10 to approximately 79% in FY 15/16. Westlake Academy Foundation contributions have climbed from less than 10%to approximately 14%of the Academy's total General Fund Revenues in FY 15/16. GENERAL FUND - LOCAL FUNDING WAF Annual Program contributions have increased each year since FY 06/07. The average contribution has increased sharply in response to public education funding decreases. Total WAF contributions are projected at $1.1 million in FY 15/16. Blacksmith Annual Contributions S1,zoo � $i,1oo Si,1oo SZ,000 � Saoo Sssi Ssoo S6so � $600 $524 � $431 a $400 I � I I $200 So . � FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 Estimated Projected I 19 INTRODUCTORY SECTION WORKING LEAN Given the new paradigm of decreasing State aid and increasing demand, Westlake Academy and the Town of Westlake are committed to providing for the long-term viability of the Academy through municipal financial support, bolstering and effectively leveraging funds raised by the Westlake Academy Foundation and the annual Blacksmith Campaign, and an unwavering focus on financial stewardship in all aspects of Academy operations and expenditures. These initiatives combined with conservative financial forecasts will help offset decreases in State funding and ensure that the students of Westlake Academy will enjoy a first-class education for years to come. MULTI-YEAR FINANCIAL FORECAST Due to increased student enrollment, slight increases in State of Texas public education funding, additional support from the Westlake Academy Foundation and the Town of Westlake,the Academy anticipates that the General Fund balance will remain above the TEA's recommended 45 days. The FY 15/16 budget will increase fund balance by$89,960. $10 Historical Program Growth $8 ■Fund Balance Revenues ■Expenditures $6 c � $4 � $2 I $0 : � .. � � � �_ . FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 Estimated Adopted Historically, revenues and expenditures have increased at relatively the same rate which has dictated the need for a higher fund balance in order to sustain the 45-day minimum requirement established by Board policy. It is anticipated that this trend will continue over the next five years, with a relatively slow but steady growth in fund balance. � � � Year Revenues Expenditures Fund Balance FY 15/16 $ 7,941,626 I $ 7,851,667 $ 1,243,262 FY 16/17 7,942,058 7,910,415 1,274,905 FY17/18 7,950,784 7,879,949 1,345,741 FY18/19 7,955,332 � 7,949,669 1,351,404 FY 19/20 7,959,984 8,020,088 1,291,301 20 INTRODUCTORY SECTION PERSONNEL TRENDS The Academy has added personnel Total Personnel Staffing each year since its opening to support new grade levels and classes as well as 91 gp 95.56 curriculum expansion. In FY 2015/16 73 5� 78.68 70.03 an additional 4.01 FTE positions have 60.94 been added for a total of 95.56 FTE 56.12 employees. � FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 Defined Employee Groups by FTE 100 2 00 3.00 1.60 75 1.60 1.60 , •� 0.60 0.60 ■Maintenance 50 . � � ■Support Staff � I � � Teachers , 25 ' � �� ■Administrative I0 , • � �� ; �� ` °B — FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 Estimated Adopted PROGRAMS 8� FACILITIES Westlake Academy was originally designed and built to serve approximately 675 students; expansions in 2009 and 2014 have raised capacity to over 800 students. With the addition of almost 150 students since FY 13/14, facilities at the school are projected to reach full capacity this year. Over the last several fiscal years the Academy has also increased course offerings in a number of areas, including foreign languages,technology, and science. Expansion of services has been driven by increased enrollment, academic needs of the students, and the IB curriculum, all of which place unique demands on staff and resources. Growth is directed by the Board of Trustees Facility Master Plan,which was adopted and developed to provide a clear understanding of future growth needs at the Academy.The Facility Master Plan can be viewed at www.westlake-tx.org or at www.westlakeacademy.org. 21 INTRODUCTORY SECTION STUDENT ENROLLMENT TRENDS � BENCHMARK DATA ENROLLMENT TRENDS Westlake Academy's student enrollment is established by two sets of boundaries. The primary boundary encompasses the Town of Student Enrollment Westlake and allows Westlake residents automatic entry into the Academy. The 812 g32 secondary boundaries are comprised of 31 of 630 658 697 the surrounding school districts. While any 491 530 school-age child from these districts is allowed to attend the Academy, demand for entrance has exceeded the Academy's capacity necessitating an annual lottery system that is carried out according to the standards and FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 practices dictated by Federal law. In FY 15/16 the campus facilities at the Academy are expected to reach full capacity Lottery Waiting List with the addition of approximately 20 students. We anticipate future enrollment z,400 numbers to remain flat (as approved by the z,12s z,194 2,1�� Board of Trustees and the Town Council, per i,oz� � � � the Facility Master Plan (Phase 1), Resolution 844 �os � 12-37 dated 11-12-2012) until funding for additional facilities becomes available. - FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14-15 FY 15-16 As an open enrollment charter school, Westlake Academy has the ability to set and maintain enrollment numbers at levels determined by the Board of Trustees. The Academy currently has over 2,000 students on a waiting list spanning Kindergarten through grade eleven. The waiting list which is developed each year through a lottery process, allows the Academy to fill seats if student attrition occurs, maintaining a stable student population number and classroom size. • Students residing within the boundaries of Keller ISD,which includes Vaquero, currently account for approximately 59%of the student population. Other ISDs ��, ■Northwest ISD • Students residing in Carroll ISD's jurisdiction, ■Carrol ISD which includes Glenwyck Farms and Terra __ Bella, account for 18%. These percentages • ��, ----�■Keller ISD have remained fairly consistent over time. ,r' 22 INTRODUCTORY SECTION PERFORMANCE RESULTS In FY 14/15, Westlake Academy was recognized by the Washington Post as one of the best public high schools in America. This is the fourth year in which the Academy has been recognized by national ranking organizations due to rigorous and extraordinary academic performance. The State of Texas is currently phasing in the use of the State of Texas Academic Achievement and Readiness (STAAR)test to assess student aptitude in reading,writing, math, science, and social studies as required under Texas education standards. The STAAR exam has increased rigor over previous testing standards and complies with the requirements of the No Child Left Behind Act(NCLB). The following tables display student standardized test performance for the last two years. Levelll Levellll Levelll Grade Comparison Satisfactory Advanced Satisfactory Phase-In 2 Level Year Phase-In 1 (Effective 2015-16) 2013-2014 94% 13% N/A 5 2014-2015 87% 20% 83% 2013-2014 87% 26% N/A 8 2014-2015 97% 28% 88% 9 EOC 2013-2014 100% 34% N/A Biology 2014-2015 99% 38% 88% Levelll Levelll Grade Comparison Satisfactory Level III Satisfactory Phase-In 2 Level Year Phase-In 1 Advanced (Effective 2015-16) �_ 2013-2014 93% 11% N/A 4 2014-2015 93% 20% 83% 2013-2014 94% 26% N/A 7 2014-2015 97% 39% 93% � � • Level l l Level l l Grade Comparison Satisfactory Level III Satisfactory Phase-In 2 Level Year Phase-In 1 Advanced (Effective 2015-16) 2013-2014 97% 35% N/A 9—English I 2014-2015 100% 60% 100% 2013-2014 95% 9% N/A 10—English II 2014-2015 99% 24% 99% 23 INTRODUCTORY SECTION ' � � Level I I Level I I Grade Comparison Satisfactory Level III Satisfactory Phase-In 2 Level Year Phase-In 1 Advanced (Effective 2015-16) 2013-2014 93% 21% N/A 3 2014-2015 94% 47% 89.5% 2013-2014 91% 36% N/A 4 2014-2015 98% 38% 98% 2013-2014 98% 43% N/A 5 2014-2015 98% 38% 98% 2013-2014 98% 38% N/A 6 2014-2015 100% 54% 96% 2013-2014 97% 54% N/A 7 2014-2015 99% 58% 93% 2013-2014 95% 61% N/A 8 2014-2015 100% 65% 100% . Level I I Level I I Grade Comparison Satisfactory Level III Satisfactory Phase-In 2 Level Year Phase-In 1 Advanced (Effective 2015-16) 2013-2014 80% 9% N/A 8 2014-2015 99% 31% 89.5% 11 EOC 2013-2014 98% 22% N/A U.S. History 2014-2015 100% 62% 100% • • 1 • • Levelll Levelll Grade Comparison Satisfactory Level III Satisfactory Phase-In 2 Level Year Phase-In 1 Advanced (Effective 2015-16) ' 8 EOC 2013-2014 87% 17% N/A Algebra 2014-2015 100% 52% � 97% � 24 INTRODUCTORY SECTION BENCHMARK DATA Westlake Academy has achieved a four and one-half star rating from the Texas State Comptroller's FAST School District Rating System for providing quality education at a reasonable cost per student. Future enrollment increases will further improve efficiencies and reduced per student cost. � � [31STRICT LIS�INGS FinancialAllocationStudyforTexas. F�1JT � � � � � �� , � , , „�, � � , , .� � WESLAC015� HIaALGO 17,83d METSTANDAR� 51 11 26��=-1:1: + AYERAGE _ WESTHAR�INCOIINTYCISa HARd[N 584 METSTANaAR� 2i 25 22��::1 ❑ + �6W = WESTHiYlIST�NCHARTERSCHppL(C] HARAIS 32Q METSTANDAR� 2 43 B■:I:: I: + VERYLOW = WESTIS� MCLEHNAN 1,440 METSTANDAR� `* •` "` + AVEAAGE _ •" WESTDAANGE-t4VE(ISa ORANGE 2,3d4 METSTAN�AR� 15 31 2��::1 I + AYEPAGE _ WESTp5015D N�UECES 2,Q30 METSTANDAR� 44 3�3 36��-:17: + VERYH6GH = ';'�,�'�y'�� WESTRI151[E51} RI151( 998 METSTANDAR� 23 34 28��-11 I + AYERAGE _ ;*��{�{ WESTSABINE6� SABINE 644 METSTANDAR� 53 19 32�I�� I + �OW = �`**,�� WEST9AQQK15� MITCMEIL 219 METSTANDAR� 52 35 40��1 + VERYHIGH = "��'�� WESThi�FF15� dEWITT 69 METSTANpAR� 7 23 11�'J�=1: + VERYH4GH = WESTLAIIEACA6EMYCHARTERStNQ01([) TARRANT 61k METSTANdAR� 84 45 941��■ + LDW = WESTPNALlA15� FAELS 135 METSTANDARQ 48 14 95��■ + pYERAGE _ . a f �� V� � � « . � � — � _ � . �'m� ; ` � r'�'�,�. .. ., � ., - _\ � .`i �I 'ca � -'�- � ■; � � � :� Y�� g� � �1� �. i l�y +�-�. .` �. �' �`�� F� ej I �� Q� '�,� � -; �� , . , �, { _ �'`�i � -°�� . . � • f � � j � � , s � 1 � I !"" ;7L.,�� I l�t��` h �� '�- � .�''.. :� I f 25 INTRODUCTORY SECTION Benchmarking against the surrounding local ISDs, Westlake Academy's expenditures are near the median when comparing expenditures per student, excluding debt service and capital expenditures. Westlake's student-teacher ratio compares favorably to surrounding school districts. Student-Teacher Ratio Comparison . . � � � � . . - 13/14 16.40 NA � 15.26 � 14.73 12/13 17.20 15.06 14.79 14.99 11/12 17.70 14.90 14.94 14.43 10/11 16.40 14.69 13.74 14.08 09/10 16.20 14.20 14.06 14.60 Per-Pupil Expenditure Comparison s • � � � � . • - 13/14 $ 7,686 $ 8,674 $ 8,498 $ 10,249 12/13 7,082 8,336 8,264 8,715 11/12 6,538 8,137 8,175 9,171 10/11 6,322 8,130 9,085 8,967 09/10 6,551 8,314 8,806 8,429 08/09 6,348 8,546 8,238 8,927 07/08 6,620 8,247 8,046 8,721 06/07 6,325 7,266 7,845 7,725 05/06 6,052 7,702 8,116 6,944 04/05 5,747 7,790 8,025 7,111 � Westlake Academy Unaudited Per Pupil Expenditures - . • . - . . . , . . 14/15 812 $ 8,130,181 $ 10,013 � . - . . - . • . - . . - . . . 15/16 832 $ 8,228,953 $ 9,891 *Sources: Westlake Academy Comprehensive Annual Financial Reports (FY04/05-FY 13/14), available online at www.westlake-tx.org; Keller Independent School District FY 13/14 Comprehensive Annual Financial Report, available online at www.kellerisd.net; Northwest Independent School District FY 13/14 Comprehensive Annual Financial Report, available online at www.nisdtx.org; Carroll Independent School District Financial Services Department **Comparisons are based on operating expenditures, which include general and special revenue funds, but exclude objects of debt service, capital outlay, and intergovernmental charges. 26 INTRODUCTORY SECTION PARENT SURVEY RESULTS Westlake Academy is focused on delivering high quality educational services and depends upon input from our stakeholders. Westlake Academy routinely conducts an Annual Parent Survey to help identify any future needs and to prioritize resource allocation. The FY 14/15 Westlake Academy Parent Survey was conducted in May of 2015 and we saw an overall decrease in the satisfaction rate of 10%with the quality of educational services that were provided. Overall Satisfaction with Quality of Education 71%of the parent's surveyed were very satisfied or Dissatisfied satisfied with the overall quality of education 15% very Westlake Academy delivers to its students. Satisfied or Satisfied Neutral 71% _ 14% Overall Satisfaction with the IB Framework 72% of our respondents were very satisfied or �Dissatisfied satisfied with the IB Curriculum/ Framework 8�° Very Satisfied or Satisfied Neutral 72% 20% Overall Satisfaction with Academic Progress of Child �Dissatisfied Very - 15% 70% of the parent's surveyed were either very Satisfied or satisfied of satisfied with the academic progress of Satisfied their child 70% �Neutral 15% 27 INTRODUCTORY SECTION FINANCIAL AWARDS :• The Association of School Business Officials International (ASBO) has presented the Meritorious Budget Award to Westlake Academy for six consecutive years. :• The Academy has been awarded the Distinguished Budget Presentation Award from the Government Finance Officers Association (GFOA)for six consecutive years. These awards are significant achievements that reflect both the dedication and commitment of the Board of Trustees and staff to meeting the highest principles of governmental accounting. � � � � -- - ��'.^-, ._T-�-�_ _ � _^�� i I �� '� , __ _ � _ �. . � .:.`°; _,�= _ �, — ; `� � ,�, . . � ' �. , . �• � — . f � �C;� �.�;,. �� _ 1 _ a ,�.., �`� Y t r � � .I! �..�.� J,ti�'6 i � � .. . , p, �: ,��.. 4:' � r � I ��_ p�',M .. � f 1 w ..,--. '� �I � `�,�� -�'�. i m � , � rNa�,N w � � _ ,�y _ ��' a ��r;' d�ru�i,�, �. I _ �ra . �.,� �� 5 �-� . . -� - � �� . _ __ � _ � �. � ..�,_+.�..�_`�" . �P_� ' . .J,� _ _ '_ l.. .. . ' -_ r-j. _- ` ' - � .- - . . � , ��✓ .' s � _ ' - ' . - - 28 • � • � � � . --� a�, .� .� � �./ �P� ' � �' �,�- � � �` ��1��1�1� Cl � ��r�� a�� e ��« � -� � � � � � �� . � � � Y�� a r � � � v � ,� �� S�� S� � .� �► � � � �' .� � � � � _, � �" sv� � `'` • .� �� ` � ,� ,� `�' �' � � � � � �' � �' '�� .� � _ ■ � � ■ ■ � � �' � � �� '��1�� -�,�� ORGANIZATIONAL SECTION BOARD MEMBERS AND ADMINISTRATION The Westlake Academy Board of Trustees consists of five trustees and the Board President. Each member of the Board serves a two year term with two members and the president being elected on alternate years. Several members of the Westlake Academy Leadership Team operate under a shared service agreement with the Town of Westlake and serve dual roles. BOARD OF TRUSTEES �z�� - � .� . - �m � �`: � . � . � � * . , , r . � , , ��; �k 4`\ �>e I �•�� k::�, � � �� I�� {41, . A�' 'ri,: Laura Alesa Michael Rick Carol Wayne Wheat Belvedere Barrett Rennhack Langdon Stoltenberg Board President ��^'�^'�^'��^'��^'Board ofTrustees"'^'"'^'^'^'"'"'"'^'"'^'"'"'"'"'"'^'"'"'^'^'"'"'^' WESTLAKE ACADEMY LEADERSHIP TEAM *Thomas E. Brymer Dr.Mechelle Bryson Superintendent of Schools Executive Principal *Amanda DeGan Alan Burt Assistant Town Manager Assistant Principal and Director of Athletics *Debbie Piper Stacy Stoyanoff Director of Finance DP Principal *Troy Meyer Dr.Andra Barton Director of Facilities Middle Years Principal *Jason Power Terri Watson Director of Information Technology MYP Coordinator *GingerAwtry Rod Harding Director of Communications &Community Primary Years Principal Affairs *Todd Wood Alison Schneider Director of Human Resources and Admin PYP Coordinator Services Jennifer Furnish *Asterisk denotes shared services Student Services Administrator personnel between the academic and Dr.Shelly Myers municipal service teams of the Town of Executive Director of the WAF Westlake. & Director of Development _ � 31 ORGANIZATIONAL SECTION WESTLAKE ACADEMY MISSION� VISION & VALUES Founded in 2003 with a mission to achieve academic excellence and develop life-long learners who become well-balanced, responsible global citizens, Westlake Academy is the first and only municipally-owned charter school in the State of Texas. The Academy is the fifth school of only ten in the United States, and the only public school,to offer the full IB curriculum for grades K-12. During this year's budget retreat great care and consideration was given to the mission and vision of the Academy and the impact that these have on both the long-term goals of the Academy and its day- to-day operation. The vision and mission statements represent the outcome of this discussion and evidence the Board's continued dedication to academic excellence and personal achievement. The values statements are currently being reviewed by the Board and are listed here for reference only. MissioN "Westlake Academy is an IB World School whose mission is to provide students with an internationally minded education of the highest quality, so they are well-balanced and respectful life-long learners." � VISION � ,�. Westlake Academy inspires college bound students to achieve £ their highest individual potential in a nurturing environment '� - `-� that fosters the traits found in the IB learner profile." � �==-�� ,� �� Inquirers, Knowledgeable, Thinkers, Communicators, Principled, � � � Open-minded, Caring, Risk-takers, Balanced, and Reflective� - _ . + ra,r , � f � .,- VALUES .- - Maximizing Persona/Development ��_� Academic Excellence -_ - - Respect for Self and Others � Personal Responsibility ' ,,� � Compassion and Understanding - - ,� _ - ;,,� � � � DESIRED OUTCOMES The following desired outcomes summarize the goals and objectives ' � established by the Board of Trustees and leadership staff at the Academy: _ ;�;: High Student Achievement - - - Strong Parent& Community Connections � � �' Financial Stewardship&Sustainability ,� � ��,� Student Engagement-Extracurricular Activities Effective Educators&Staff �;;` � � 32 ORGANIZATIONAL SECTION ACHIEVING OUR VISION AND MISSION The Academy is in the process of designing a strategic planning and performance management framework based on the Balanced Scorecard system. The Balanced Scorecard is a strategic planning and management tool that is used extensively in business and industry, government, and nonprofit organizations worldwide to align operational activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. 5�.��+��c P��r�rru�� iru��G��Eiv� wr�� B�r�.�v�� Seo�c�e� STRATEGI� � � M • M ALTITUDE 3a,004 ft. IIIIISSI�N VISI�N 25,C➢�0 fit. STRA7"�GIC Te�EM�s 8 E�Su�rs STRATEGIG PEliSP6GTIVES 15,000 ft. $3��-,�� Qg�E�� $� $3RATEGY MAP Petx�o�nna�r�c� IVI€asu�s ►awo Tiv�Ers Grour�d S�`RATEGIC 1NITIATIVES Le�el Following are the key components of a Balanced Scorecard System: 1. Strategic Perspectives—A view of the organization through a particular'lens'. Perspectives are generally broken down into four different categories of operations: capacity building, operational processes, financial and customer satisfaction. We have customized these perspectives for our organziation as follows: • People, Facilities, and Technology(capacity) • Academic Operations (operational) • Financial Stewardship (financial) • Citizen, Student, and Stakeholder (customer) 2. Strategic Objectives—A focus area where we want to see continuous improvement toward our objective with measurable objectives for specific actions; an interim step in achieving our mission. 3. Performance Measures—A quantifiable expression of the amount, cost, or result of activities indicating how well services are provided. There are at least three types of performance measures: • Effectiveness Measures—A type of performance measure used to assess the quality of outcomes. 33 ORGANIZATIONAL SECTION • Efficiency Measures—A type of performance measure used to assess the cost of providing services, i.e. the cost per unit of service. • Workload Measures—A type of performance measure used to assess the amount of work performed or services rendered. For example,the number of students served in a program per unit of time. 4. Targets-A specific measure of where the Academy would like to see their service level. 5. Initiatives—A new or ongoing action step designed to help accomplish one or more strategic objectives. The Balanced Scorecard provides a framework for us to ask these questions: i. What are we trying to accomplish? z. Are we doing the right things? a. If we are doing the right things, are we doing them efficiently and effectively? Shown below are Westlake Academy's identified strategic objectives arranged by perspective and causally linked to form a strategic map: WESTLAKE ACADEMY STRATEGY MAP �ItlZelt Student & Increase the Increase nhan�e ' Future Westl�ke Sta�Ceholder Readiness of 5takehvlder A�ademy"s All Students Satisfaction Unique 5ense of Place Financial lncrease External Impro�+e Stevvardshi Revenue Finan�ial p 5ourees 5tewardship 5trengthen aur Westlake Aca d e m i� � timize Academy P Improve the Culture O erations �tudent Efficiencies vf � Potenkial Dperakivnal 5trengtfiren 16 Systems Philoscsphy& Implementation People, Attract, Reer�iit, Increase the Impro+re F�Cl�ltl�5 $t Retain&Develap Capacity of Te�hnolergy, the Highest Teachers& Facilities, & Technafagy �°��lity+�!!'orkforce 5taff Equipment Westlake Academy administration and staff are currently working with the Board of Trustees to develop and refine performance measures,targets, and initiatives that can be linked to identified strategic objectives. The Academy anticipates full implementation of the Balanced Scorecard system by the end of FY 15/16. 34 ORGANIZATIONAL SECTION WESTLAKE ACADEMY'S DESIRED OUTCOMES Westlake Academy's strategic planning structure is the product of many hours of analysis, review and discussion. Academy staff, under the direction of the Board of Trustees, continually gathers information and input from stakeholders, carefully tracks and analyzes student achievement, and considers economic and demographic trends to formulate long-range goals, plan for future challenges, and develop comprehensive guidelines that ensure student success. Five desired outcomes have been identified and linked to the Academy's strategic planning efforts: 1. High Student Achievement- Develop inquiring, knowledgeable, caring and disciplined young people who use their unique talents to create a better and more peaceful world through intercultural understanding and respect. 2. Strong Parent&Community Connections-To involve all stakeholders in building a better Westlake Academy community. 3. Financial Stewardship&Sustainability-To ensure sufficient,well-managed resources to support and advance the mission of Westlake Academy. 4. Student Engagement& Extracurricular Activities-To ensure that all athletics, community service and extracurricular activities are held to the same standard of excellence as the curricula programs to promote well-balanced students. 5. Effective Educators&Staff- Recruit, develop and retrain a core faculty and staff with the personal qualities, skills and expertise to work effectively with the IB inquiry-based, student-centered curricula. "'� ,� - , , . � � � ' �� ; � �� ' �� , �, . � �� : . � ,� .;: �.,�;;..;.� � %� �RI' �� ,r��I��,��1 i � � / 1 �� r +� M � . l.��/��Y1 �`�F ,r��r�si�r��'�a, e �•�r��!�� • q� . �. �� • ■ • ,� • '� Ir:� •"M�.ar • � � � . .�. � �+��`�:�`��s.A. � •��+�• f� �'�i',f� f f •!�� ` � �•� f 1 � �� ,�.�`��ri,at��i�r '*r a�.��*��r,•*'�s . N M+� `' •� + � '�! � �' � � �• . : • J� ��r:�i�+M�4:�� '.��i• ••�s�*•y• ' � ��'��s�r�• �"�• • N•' • • +��i.� ��ei�• � � �� `� � �• �+��/r�i• 35 ORGANIZATIONAL SECTION WESTLAKE ACADEMY ORGANIZATIONAL STRUCTURE Westlake Academy is a municipally owned, open enrollment K-12 charter school that is accredited by the Texas Education Agency. The Academy is governed by a six member Board of Trustees that also serves as the Town Council for the Town of Westlake. The Board of Trustees appoints a Superintendent to oversee the Academy's management and operations. The Superintendent also serves as Westlake's Town Manager. The Academy's organizational structure is based on research into management of municipally owned charter schools. The current structure was adopted by the Board in Resolution 09-23 on December 7, 2009. The Superintendent is responsible for the implementation of the Board's policy agenda for Westlake Academy, facilitating the Board's strategic plan,formulating policy recommendations for Board consideration, and providing managerial oversight of the Academy's budget administration, finances, and budget preparation. The Academy's Superintendent oversees the Westlake Academy Executive Leadership Team which is charged with the responsibility of managing the school's on-going academic and extracurricular operations. Each principal is responsible, with advisement from the Superintendent,for selection and evaluation of the faculty and staff involved in providing their Programme's academic services. • • � � � • • � Town Manager/ Executing the Board of Trustees adopted policies and hiring and managing all Superintendent employees and department directors Assistant Town Manager/ Supporting the Town Manager/Superintendent in his assigned duties, Superintendent overseeing departmental directors and working on special projects as assigned Financial oversight, preparing the annual budget and audit for both the Town Finance Director and Academy Director of Human Resource Managing personnel needs of both Town staff and school faculty &Administrative Services Supporting the Executive Principal in her assigned duties, managing the Student Services administrative staff at the Academy, completing state and federal filings, Administrator budget development, and business office management Primary Principal Responsible for the educational outcomes in the PYP. Executive Principal Responsible for the educational outcomes for the whole school. MYP Principal Responsible for the educational outcomes in the MYP. DP Principal Responsible for the educational outcomes in the DP. 36 ORGANIZATIONAL SECTION x � � • ' � � • • �� TexasStudent Attorney Housing �E �` �w � IAssistant Town Executive Principal Manager Director of Education I Court Administrator Intern Town Secretary I Asst Principal/ Athletic Director DeputyClerk CommuniCations PartTime Clerk � Student Services �rin,ir��rrnr.,r Marshal Communication Specialist Facilities Maintenance Administrative Staff /Parks&Recreation I Part Time Court Clerks � Nurse Fire Chief . WA Technician — part Time Clerk — CourtJudge I 3 Lieutenants � PYP Primary Principal Planning& Human Resources Development/ pypCoordinator 7 FTE Firefighter Building Inspector I Paramedia 1 Primary Counselor HR Generalist 1.50 PT Firefighter Paramedics Public Works PrimaryTeachers Information Technology Finance I �ibrarian � Technician WA Technician Custom I r Service MYP Secondary coordinator Executive Director I Principal W.A.Foundation Police Services Customer Service I (contracted thru the Representative MYP Coordinator Citv of Kellerl � Assistant Academic Dean Supervisor � � MYP Teachers � Municipal Academic - - DP Principal ��...y..,�� Coordinator ,�' �'L � � Diploma � 5� Teachers J � � College � rT � � Counselor '4�� ,.� +.^ 37 ORGANIZATIONAL SECTION ACADEMY LEADERSHIP EXECUTIVE PRINCIPAL The Executive Principal is the instructional leader for the whole school. The Executive Principal is the primary instructional leader as well as administrative head. In her role she is responsible for implementing board policies and direction from the Superintendent. She heads the executive leadership team which focuses on whole school issues. PRIMARY YEARS PRINCIPAL (PYP� The Primary Years Principal is the instructional leader for , , ,, X � _ _�,; �ry the Primary Years Programme (PYP). The PYP is a _ � � ��, � � `� A`'"-��' "� � � curriculum framework for children aged 3-12 that prepares --- +� � � t� � students for the intellectual challenges of further education .�;�� I ;,� ��'�� ,., ;..�-_• : and their future careers, focusing on the development of '` �;�, " the whole child as an inquirer, both in the classroom and in �, • "��;� �� the world outside. � ,� �� `�_ _ . The PYP Principal is responsible for ensuring proper �; ;�� '�'� }�,�� , implementation of the IB curriculum, student performance, �' ��'�� and recruiting, mentoring, and retaining talented faculty. '"�, � -� -F�'. ` l�` ,-f .. The Primary Principal is a member of the executive - b" leadership team. _ „ ....�,. MIDDLE YEARS PRINCIPAL (MYP� The Middle Years Principal is the instructional leader for the Middle Years Programme (MYP). The MYP is a curriculum framework for children in grades six through ten that encourages students to make practical connections between their studies and the real world. The MYP builds on the knowledge, skills, and attitudes developed by the Primary Years Programme and prepares students for the demanding requirements of the Diploma Programme. The MYP Principal is responsible for ensuring proper implementation of the IB curriculum, student performance, and recruiting, mentoring, and retaining talented faculty.The MYP Principal is a member of the executive leadership team. DIPLOMA YEARS PRINCIPAL (DP) The Diploma Programme Principal is the instructional leader for the Diploma Programme (DP). The DP is a challenging two year curriculum for students in grades 11 and 12 that provides an inquiry based, college preparatory education. By emphasizing knowledge, skills, critical thinking and the fostering and development of universal human values, students learn the valuable skill of constructing and deconstruction knowledge. The DP Principal is responsible for ensuring proper implementation of the IB curriculum, student performance, and recruiting, mentoring, and retaining talented faculty.The DP Principal is a member of the executive leadership team. 38 ORGANIZATIONAL SECTION STUDENT SERVICES ADMINISTRATOR The Student Services Administrator manages the central office activities of the Academy and directs all administrative staff. Responsibilities include grant management, federal and state reporting, activities of the registrar's office, support services for the Executive Principal, and research and analysis related to performance data and strategic planning. The Student Services Administrator is a member of the executive leadership team. DIRECTOR OF DEVELOPMENT The Director of Development and Westlake Academy Foundation Executive Director is primarily responsible for the fundraising activities of the Academy. The Director creates, implements, and manages donor activities, including the annual Westlake Academy Blacksmith Drive, Baja, Gallery Night, grant applications, and other Academy or Foundation related solicitations. The Director of Development is a member of the executive leadership team. FINANCIAL STRUCTURE Westlake Academy operates as a blended component unit of the Town of Westlake and is a Texas non-profit corporation under Chapter 12, Subchapter p of the Education Code. THE ANNUAL BUDGET A budget is required to be adopted annually for the General Fund (Westlake Academy does not maintain a Debt Service Fund or child nutrition program). The budget is adopted on a basis consistent with generally accepted accounting principles. All appropriations lapse at fiscal year-end. On or before August 315Y of each year,the Superintendent submits for review by the Board of Trustees a proposed budget for the upcoming school year. After reviewing the proposed budget and holding public meetings as necessary,the final budget is prepared and adopted. The appropriated budget is prepared by fund and function. The Board may make transfers between functions within a fund, and may amend the total budget following the same procedures required to adopt the original budget. The legal level of budgetary control is at the fund level. KEY REVENUES Public charter schools in the State of Texas do not have taxing authority, nor do they receive facility funding. Consequently, the Academy receives approximately 79%of General Fund revenues via the State funded Foundation School Program (FSP), and is disproportionately affected by changes in FSP funding levels set by the Texas legislature. Over the last two legislative sessions funding for public education has increased slightly, but overall funding still falls short of FY 2009/10 levels. Note that the amount of state aid received through the Foundation School Program (approximately$7,085 per student in FY 15/16) is a function of the total number of students enrolled at the Academy. 39 ORGANIZATIONAL SECTION KEY EXPENDITURES Compensation and benefits are the largest operating cost for Westlake Academy, comprising 73% of total operating expenditures. The current forecast assumes no further expansions of curriculum or other programme areas that would necessitate additional staff; a 1%increase in personnel is included in the forecast. Other costs including utilities, supplies, and professional services are held flat unless additional revenue sources are realized. FUND BALANCE The Superintendent and Board of Trustees are devoted to safeguarding and improving the financial condition of Westlake Academy. The Academy shall strive to maintain an unassigned General Fund Balance of 45 days of operation, and Fund Balance monies will only be used with Board approval for specific needs. The current five-year forecast estimates the fund balance in the General Fund will increase slightly through FY 15/16. Fund Balance in subsequent fiscal years is anticipated to stay within 53 to 56 operating days. Board policy stipulates that all future increases in expenditures must be offset by new or additional revenues. A full listing of Fund Balance policies can be found at the end of this section. INDIRECT OPERATING COSTS The Academy operates under a shared service model with the Town of Westlake, whereby the Town provides HR, Financial, Facilities, and Administrative support services to the Academy. The shared services model was an integral part of the charter application process that helped bolster the Town's case for having a community school. The shared service model conserves precious resources and avoids the duplication of effort across Town and Academy activities. The support services for the Academy that generate indirect costs paid by the Town of Westlake are: • Human resources • Information technology • Risk management • Finance and accounting services • Facility maintenance services • General managerial oversight (Superintendent) • Board support services including policy advisement and strategic planning (Superintendent) • Official Board records maintenance and election administration (Town Secretary) As the Academy's enrollment and staffing levels have increased, the level of demand for support services that the Town provides the Academy has also grown. Per Board direction at its June 2011 budget retreat, indirect costs of approximately$306,900 were expensed to the Academy's operating budget. At the June 2012 Board budget retreat,staff recommended suspending the transfer of funds from the Academy to the Town due to changes in the State's public education funding formula which had resulted in an 8% decrease in funding. Consequently, the adopted budget for FY 12/13 suspended the transfer of$306,900 to help maintain the TEA's recommended 45 day fund balance. Fund transfers have remained suspended since FY 12/13. In FY 15/16 indirect operating costs are approximately$580,000. The following table reflects the Academy's total cost in FY 15/16, including transfers and indirect costs. 40 ORGANIZATIONAL SECTION � Academic& Municipal Costs Estimated Adopted FY 2014/15 FY 2015/16 WA Operating Expenditures � $ 8,130,181 $ 8,288,953 I Municipal-Transfer to WA Operating Budget 300,000 I 300,000 Total Academic Costs 8,430,181 I 8,588,953 I Annual Debt Service Payments 1,859,274 I 1,858,591 I Major Maintenance and Replacement 361,800 I 227,330 Indirect Operating Costs (Shared Services) 579,537 I 579,492 Total Municipal Costs 2,800,611 2,665,413 . � . . • . � . . 1 CAPITAL PROJECTS He DEBT SERVICE The Town of Westlake owns the land on which the Academy is located and all facilities associated with the school. The Town has issued approximately$30M in debt to construct campus facilities and is responsible for debt service payments associated with Westlake Academy's capital infrastructure. The Town's Debt Service Fund is used to manage debt service payments, and Academy debt is accounted for in the annual municipal budget. Average annual debt service payments for Academy facilities and infrastructure total approximately $1.856M, and are funded primarily by municipal sales tax receipts. Academy related debt is over 90%of the Town's debt burden. However,the school is also considered the Town's primary economic development tool. FY 15/16 debt service payments related to the construction of Westlake Academy facilities include: • $702,383 on Series 2007 General Obligation Refunding Bonds • $312,800 on Series 2011 General Obligation Refunding Bonds • $448,198 on Series 2013 Certificates of Obligation • $142,650 on Series 2013 General Obligation Refunding Bonds • $252,560 on Series 2014 General Obligation Refunding Bonds For more information, see Town of Westlake FY 15/16 Annual Municipal Budget, available online at www.westlake-tx.org. Academy related capital improvement projects are included in the Town Capital Improvement Plan and guided by the adopted Facility Master Plan, which can be viewed at www.westlake-tx.org, or at www.westlakeacademy.org.The following capital projects have been presented to the Board of Trustees but are currently unfunded (under discussion only). Note that there are no major capital projects budgeted or planned through FY 18/19. DESCRIPTION FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 TOTALS WA—Phase II Secondary Addition $ - $ - $ - $ - $4,676,839 $4,676,839 WA—Phase II Arts&Science Classroom - - - - 1,934,422 1,934,422 WA-Phase III Kindergarten Addition - - - - 2,515,775 2,515,775 WA- Phase III Performing Arts Center - - - - 5,391,638 5,391,638 I TOTAL UNFUNDED PROJECTS $ - $ - $ - $ - $14,518,674 $14,518,674 41 ORGANIZATIONAL SECTION Any future additions to campus facilities will increase operational costs in conjunction with increases in casualty insurance, faculty and maintenance personnel. These projects include estimates of their related impacts to the operating budget in the Town Capital Improvement Plan, available to the public at www.westlake-tx.org. IMPACT ON OPERATING BUDGET FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 TOTALS WA—Phase II Secondary Addition $ - $ - $ - $ - $ 53,760 $ 53,760 WA—Phase II Arts&Science Classroom - - - - 24,226 24,226 WA-Phase III Kindergarten Addition - - - - 28,840 28,840 WA-Phase III Performing Arts Center - - - - 11,536 11,536 TOTAL UNFUNDED PROJECTS $ - $ - $ - $ - $ 118,362 $ 118,362 THE TOWN OF WESTLAKE BOND RATING Standard & Poor's Ratings Services recently raised The Town's credit rating one notch to 'AA+'from 'AA' with a stable outlook. Below is an excerpt from Standards and Poor's: The ratings reflects our opinion of the following factors for Westlake,specifically its:(aJ Inclusion in the deep and diverse Dallas-Fort Worth metropolitan statistical area(MSAJ economy,•(bJ Very strong budgetary flexibility with fisca12012 audited reserves in excess of 50%of general fund expenditures;(c) Very strong liquidity,providing very strong cash to cover debt service and expenditures;and(dJ Strong management conditions,supported by good financial policy implementation. FINANCIAL REPORTING ENTITY The Board of Trustees consists of six trustees (five trustees and the Board President) that also serve as the Town Council for the Town of Westlake,the entity that owns and operates the Academy. The Academy prepares its basic financial statements in conformity with generally accepted accounting principles promulgated by the Government Accounting Standards Board (the "GASB") and other authoritative sources identified in Statement on Auditing Standards No. 69 of the American Institute of Certified Public Accountants, and it complies with the requirements of the appropriate version of the Texas Education Agency(TEA) Financial Accountability System Resource Guide (the "Resource Guide") and the requirements of contracts and grants of agencies from which it receives funds. The Board has the authority to make decisions, appoint administrators and managers, and significantly influence operations. It also has the primary accountability for fiscal matters. Therefore,the Academy is a financial reporting entity as defined by the GASB in its Statement No. 14, "The Financial Reporting Entity." The Academy's basic financial statements include a separate entity that is controlled by or dependent on the Academy. The determination to include separate entities is based on the criteria of GASB Statement No. 24, "The Financial Reporting Entity" as amended by GASB Statement No. 39, "Determining Whether Certain Organizations are Component Units." GASB defines the reporting entity as the primary government and those component units for which the primary government is financially accountable. To be financially accountable, a voting majority of the component unit's ruling body must be appointed by the primary government, and either 42 ORGANIZATIONAL SECTION (a) the primary government be able to impose its will, or(b)the primary government may potentially benefit financially or be financially responsible for the component unit. The Westlake Academy Foundation (the "Foundation") is a 501(c)3 nonprofit organization which was established exclusively for the purposes of supporting the Academy. This includes fundraising for and contributing raised funds to the Academy. The Foundation is discretely presented in the Westlake Academy financial statements and reported in a separate column to emphasize that it is legally separate from the Academy. Separate audited financial statements of the Foundation are prepared annually. BASIS OF BUDGETING Legal requirements for charter school budgets are formulated by the state and the TEA. A Board typically adopts an appropriated budget on a basis consistent with GAAP for the general fund, debt service fund and child nutrition program (which is included in special revenue funds). However,the Academy does not maintain a debt service fund or a child nutrition program;therefore, only the General Fund is required to be adopted. Special Revenue Funds, described below, are not adopted by the governing body,and are shown for informational purposes only. At a minimum, the Academy is required to present the original and the final amended budgets for revenues and expenditures compared to actual revenues and expenditures for the General Fund. Budgets are prepared on the same basis of accounting that is used in financial statements. The basis of budgeting refers to when revenues and expenditures are recognized in the corresponding accounts and reported in financial statements. Governmental fund types, including the general fund, are budgeted using the Current Financial Resources Measurement Focus and the Modified Accrual Basis of Accounting. Westlake Academy's only Fiduciary Fund (the Agency Fund, described below) is not a budgeted fund. SIGNIFICANT ACCOUNTING POLICIES The Board of Trustees has established and regularly updates a comprehensive set of financial policies for the Academy. Some of the key features of these policies include: • Fund Balance:The Academy shall strive to maintain the General Fund unassigned fund balance at 45 days of operation. Fund Balance will be targeted to only be used with Board approval for a specific list of uses. • Salary:The Academy shall strive to maintain competitive salary levels for faculty and staff(within 3% of the median of surrounding schools). • Expenditure Control: Budget adjustments among funds must be approved by the Board. The Academy shall operate on a current funding basis. Expenditures shall be controlled so as not to exceed revenues plus the planned use of fund balance accumulated through prior year savings. BA515 OF ACCOUNTING — FUNDS The accounts of the Academy are organized and operated on a basis of funds. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance related legal and contractual provisions.The minimum number of funds is maintained consistent with legal and managerial requirements. 43 ORGANIZATIONAL SECTION Academy funds are classified into two categories: governmental and fiduciary. Governmental funds include the following: • The General Fund is the Academy's primary operating fund. It accounts for all financial resources of the Academy, except those required to be accounted for in another fund. • Special Revenue Funds account for the revenue sources that are legally restricted to expenditures for specific purposes. Fiduciary funds account for resources that are held in trust for individuals or other governments, in this case monies that are held in a custodial capacity for the benefit of student organizations. Governmental funds are used to account for the Academy's general government activities, including the collection and disbursement of specific or legally restricted monies. Governmental funds use the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenue is recognized when it becomes susceptible to accrual, i.e., when it becomes measurable and available. Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to pay liabilities of the current period.The Academy considers revenues available if they are collected within 60 days after year-end. Expenditures are recognized when the related fund liability is incurred. Foundation State Program (FSP) funds are susceptible to accrual. Miscellaneous revenue items, which are not susceptible to accrual, are recognized as revenue only as they are received in cash. Entitlements and grants are recognized as revenue at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. GOVERNMENTAL FUND TYPES General Fund The General Fund is comprised of three subordinate funds: General, Athletic Activities, and Transportation. This fund accounts for the majority of the operational activities required to maintain the Academy's facilities and pay its employees. The fund is supported by State and local revenues. • Fund 199 General Fund-This classification must be used for funds in which the local governing board designates. The local governing board has wide discretion in their use as provide by law. This fund usually includes transactions as a result of revenues from local sources and Foundation School Program Sources. Any locally defined code that is used at the local option is to be converted to Fund 199 for PEIMS reporting. • Fund 198 Athletic Activities-This locally defined fund code is used to account for expenditures for athletics that normally involve competition between schools (and frequently involve offsetting gate receipts or fees such as football, baseball,volleyball,track,tennis and golf). This fund is converted to Fund 199 for PEIMS reporting. • Fund 197 Transportation/Parking-This locally defined fund code is used to account for revenues and expenditures related to transportation for students as well as to collect parking fees and remit them to the Town of Westlake as a reimbursement for the expense of the new parking lot built in the summer of 2010 (funded by the Town).This fund is converted to Fund 199 for PEIMS reporting. 44 ORGANIZATIONAL SECTION Special Revenue Funds Special Revenue Funds account for local, state and federally financed programs or expenditures legally restricted for specified purposes or where unused balances are returned to the grantor at the close of a specified project period. These funds are not adopted by the governing body, and are shown here for informational purposes only. • Fund 224 IDEA-B Formula (Federally funded) - Fund is used, on a project basis,for funds granted to operate educational programs for children with disabilities. • Fund 410 Material Allotment (State funded) - Funds to purchase the instructional materials that will be used to support the Texas Essential Knowledge and Skills (TEKS) • Fund 461 Campus Activities (Locally funded) - Fund is to be used to account for transactions related to a principal's activity fund if the monies generated are not subject to recall by the school district's Board of Trustees into the general fund. These funds provide after-school activities at Westlake Academy. • Fund 481 Hudson Foundation (Locally funded) -This locally defined fund is used to account for grants awarded to the Academy by the Hudson Foundation to be used to support the Director or Curriculum and Instruction. • Fund 484 Local Grants (Locally funded)—These funds represent small grants from Westlake Academy Foundation and the House of Commons for specific purposes. • Fund 485 Hudson Foundation Staff/Development(Locally funded) -This locally defined fund is used to account for grants awarded to the Academy by the Hudson Foundation to be used to pay for the new MYP Principal, professional development, and curriculum coach. • Fund 487 Westlake Academy Fund-an-Item (Locally funded)— Represents funds raised at Gallery Night annually for specific items for the Academy. • Fund 496 Hudson Foundation (Locally funded)—These funds will be used in two fiscal years to support extended learning with Strength Finders; Great Expectations training; beginning of the year school activities; coaching with Marsha Clark, Summer Reading Support Camp; transformational space in secondary building; discretionary funds for teachers to attend the Ron Clark Academy; IAAPA; DaVerse Lounge experience; international experience for current grade 10 students, International Mindedness Teacher Symposium; and House Innovations. • Fund 497 Westlake Academy Foundation Financial Assistance (Locally funded) -This grant from the Westlake Academy Foundation provides financial assistance for student activities. • Fund 498 International Mindedness Educator Symposium (Locally funded)—Fund will be used for the annual symposium hosted by Westlake Academy focusing on global collaboration. FIDUCIARY FUND TYPES Westlake Academy has a single Fiduciary-type fund, called the Agency Fund, which accounts for resources held in a custodial capacity for the benefit of student organizations. The Agency fund is not a budgeted fund. 45 �• � � � � � � � � � � Westlake Academy General Fund Special Revenue Funds Agency Fund - IDEA-B Formula General Material Allotment Athletic Activities Campus Activities Transportation/Parking Hudson Foundation Grants WAF Grants — � y +� - WAF Financial Assistance ;,� � � �'.f+,�i '�, � '�ti �� WAF Fund-an-Item 4 �KY+ i �" • Y ,fl ��. ,, _ Y ° International Mindedness ,., .� ,� �. � � ,. _ �=� - � ORGANIZATIONAL SECTION OVERVIEW OF ACCOUNT CODES Financial transactions within funds are organized and classified through the account code system. Section 44.007 of the Texas Education Code (Code or TEC) requires that a standard school district fiscal accounting system be adopted by each school district.The system must meet at least the minimum requirements prescribed by the State Board of Education and also be subject to review and comment by the state auditor. Additionally,the accounting system must conform to Generally Accepted Accounting Principles (GAAP).This section further requires that a report be provided at the time that the school district budget is filed, showing financial information sufficient to enable the state board of education to monitor the funding process and to determine educational system costs by school district, campus and program. The Texas Education Code, Section 44.008, requires each school district to have an annual independent audit conducted that meets the minimum requirements of the state board of education, subject to review and comment by the state auditor.The annual audit must include the performance of certain audit procedures for the purpose of reviewing the accuracy of the fiscal information provided by the district through the Public Education Information Management System (PEIMS).The audit procedures are to be adequate to detect material errors in the school district's fiscal data reported through the PEIMS system for the fiscal period under audit. A major purpose of the following accounting code structure is to establish the standard school district fiscal accounting system required by law. Although certain codes within the overview may be used at local option, the sequence of the codes within the structure, and the funds and chart of accounts, are to be uniformly used by all school districts in accordance with generally accepted accounting principles. ACCOUNT CODE $TRUCTURE XXX X XX �c XXX XX XXX XXXX XX Program Local Sub Fund Year Function Organization Intent Option Object Object Code Code Code Code Code Code Code Code (lxxx- (0-9) (11-99) (001-999) (11-99) (xxx) 1X—Assets (xx) 8xxx) 2X—Liabilities Account 3X—Fund Equity Groups 4X—Clearing Accts I (9xx) 5X—Revenues 6X—Expenditures 7X—Other Resources 8X—Other Uses I FUNCTION CODES — GENERAL DESCRIPTIONS A function code represents a general operational area at the Academy and groups together related activities. The assignment and use of function numbers is based on the financial accountability standards established by the Texas Education Agency in accordance with the Texas Administrative Code. The function code is a 2-digit number that follows the 3-digit fund code and single digit year code in the accounting number scheme. 47 ORGANIZATIONAL SECTION FUNCTION CODE FUNCTION CODE DECRIPTION 11 Instruction & Related 12 Instructional Resources& Media Sources (Library) 13 Curriculum Development & Instruction/ Staff Development 21 Instructional Leadership 23 School Leadership (Principal) 31 Guidance, Counseling& Evaluation Services 32 Social Work Services 33 Health Services � 34 Student (Pupil)Transportation 35 Food Services 36 Cocurricular/extracurricular activities 41 General Administration (Superintendent/Board) 51 Plant Maintenance and Operations 52 Security and Monitoring Services � 53 Data Processing Services I 61 Community Services 71 Debt Service 81 Facilities Acquisition and Construction �,_ � 10 Instruction and Instructional Related Services • Function 11-Instruction-This function is used for activities that deal directly with the interaction between teachers and students.This function includes expenditures for direct classroom instruction and other activities that deliver,enhance,or direct the delivery of learning situations to students. Expenditures for the delivery of instruction in regular program basic skills, bilingual and ESL programs, compensatory, remedial or tutorial programs,gifted and talented education programs,and vocational education programs are classified in function 11. For example,function 11 includes classroom teachers,teacher assistants,and graders, but does not include curriculum development(function 13)or principals(function 23). • Function 12-Instructional Resources and Media Services-This function is used for expenditures that are directly and exclusively used for resource centers,establishing and maintaining libraries,and other major facilities dealing with educational resources and media. For example,function 12 includes librarians, but does not include textbooks(function 11)or reference books in the classroom (also function 11). • Function 13-Curriculum Development and Instructional Staff Development-This function is used for expenditures that are directly and exclusively used to aid instructional staff in planning, developing, and evaluating the process of providing learning experiences for students.This function also includes expenditures related to research and development activities that investigate, experiment and/or 48 ORGANIZATIONAL SECTION follow-through with the development of new or modified instructional methods,techniques, procedures, service, etc. For example,this function includes staff that research and develop innovative, new, or modified instruction and staff who prepare in-service training for instructional staff, but does not include salaries of instructional staff when attending in-service training (function 11 or 12). 20 Instructional and School Leadership • Function 21- Instructional Leadership-This function encompasses those district-wide activities which have as their purpose managing,directing,and supervising the general and specific instructional programs and activities. For example,function 21 includes instructional supervisors but does not include principals (function 23). � Function 23-School Leadership-This function includes expenses for directing, managing,and supervising a school. It includes salaries and supplies for the principal,assistant principal,and other administrative and clerical staff, including attendance clerks. 30 Support Services—Student • Function 31-Guidance,Counseling,and Evaluation Service-This function includes expenses for testing and assessing students'abilities,aptitudes,and interests with respect to career and educational goals and opportunities. It includes psychological services,testing,and counseling. • Function 32-Social Work Services-This function includes expenditures which directly and exclusively promote and improve school attendance. Examples include social workers, non-instructional home visitors, home visitor aides,and truant officers. • Function 33- Health Services-This function embraces the area of responsibility providing health services which are not a part of direct instruction. It includes medical,dental,and nursing services. • Function 34-Student Transportation-This function includes the cost of providing management and operational services for transporting students to and from school. Function 34 includes transportation supervisors and bus drivers, but does not include field trips (function 11) or student organization trips (function 36). • Function 35- Food Services-This function includes the management of the food service program at the schools and the serving of ineals, lunches, or snacks in connection with school activities. Function 35 includes cooks and food purchases, but does not include concession stands (function 36). • Function 36-Co-curricular/Extracurricular Activities-This function incorporates those activities which are student and curricular related, but which are not necessary to the regular instructional services. Examples of co-curricular activities are scholastic competition, speech, debate, and band. Examples of extracurricular activities are football, baseball, etc. and the related activities (drill team, cheerleading) that exist because of athletics. Function 36 includes athletic salary supplements paid exclusively for coaching, directing, or sponsoring extracurricular athletics, but does not include salaries for teaching physical education (function 11). 49 ORGANIZATIONAL SECTION 40 Support Services-Administrative � Function 41-General Administration-This function includes expenses incurred for the overall administrative responsibilities of the District. It includes expenses for the school board, superintendent's office, personnel services, and financial services. 50 Support Services- Non Student Based • Function 51- Plant Maintenance-This function deals with expenditures made to keep buildings, grounds, and equipment safe for use and in efficient working condition.This function also includes expenditures associated with warehousing services. Examples include janitors,facility insurance premiums, utilities, and warehouse personnel. • Function 52-Security and Monitoring Services-This function is used for expenditures that are for activities to keep student and staff surroundings safe, whether in transit to or from school, on a campus, or participating in school-sponsored events at another location. • Function 53- Data Processing Services-This function is for non-instructional data processing services which include computer facility management, computer processing, systems development, analysis, and design. Personal computers that are stand alone are to be charged to the appropriate function. Peripherals including terminals and printers are also to be charged to the appropriate function. 60 Ancillary Services • Function 61-Community Services-This function encompasses all other activities of the school district, which are designed to provide a service or benefit to the community as a whole or a portion of the community. Examples would include recreation programs, natatorium, and parenting programs. 70 Debt Service • Function 71- Debt Service-This function includes expenditures for bond and lease purchase principal, and all types of interest paid. 80 Capital Outlay • Function 81-Capital Acquisition &Construction-This function includes expenditures that are acquisitions, construction, or major renovation of Academy facilities. OBJECT CODE — GENERAL DESCRIPTIONS The object number is a 4-digit code that describes the type of revenue or expenditure incurred and is comprised of the fifteenth through eighteenth digits in the code structure. For example: OBJECT CODES OBJECT CODE DESCRIPTION 61XX Payroll and Payroll Related 62XX Professional &Contracted Services 63XX Supplies and Materials 64XX Other Operating Costs 65XX Debt Service 66XX Capital 50 ORGANIZATIONAL SECTION THE BUDGET PROCESS The Academy's fiscal year begins each year on October 1st and ends on September 30th of the following calendar year. Prior to the beginning of the fiscal year,the Superintendent must submit a proposed budget to the Board of Trustees which includes: • A budget message • A consolidated statement of anticipated revenues and proposed expenditures for all funds • General fund resources in detail • Special fund resources in detail • A summary of proposed expenditures by department and activity • Detailed estimates of expenditures shown separately to support proposed expenditures The budget preparation process begins early in the calendar year with the establishment of overall town goals, objectives, and analysis of current year operations compared to expenditures. Budget policies and procedures are reviewed at the same time to reduce errors and omissions. In May,the Finance Department prepares budget forms and instructions for estimating revenues and expenditures. Department heads submit proposed baseline expenditures for current service levels and any additional one-time or on-going request they may have for their department. A round-table meeting is subsequently held with the Superintendent,the finance staff and each department head for review. After all funding levels are established and agreed upon the proposed budget is presented by the Superintendent to the Board of Trustees. A public hearing on the budget is conducted in accordance with state and local law. This meeting is held after the Board has reviewed the budget during a workshop. The Board of Trustees approves a level of expenditure (or appropriation) for each fund to go into effect on October 1st, prior to the expenditure of any Town funds for that budget year. BUDGET AMENDMENT PROCESS The Superintendent may request that the current year budget be amended. In this process,the Superintendent will review the documentation and draft an ordinance to formally amend the current budget. This ordinance is presented to the Board of Trustees for consideration. Following the consideration of the proposed amendment,the Board will vote on the amendment ordinance. If the amendment is approved,the necessary budget changes are then made. All budget amendments will be approved by the Board of Trustees prior to the expenditure of funds in excess of the previously authorized budgeted amounts within each fund. -�� ` �; �� .�� -�-� - �;, = --_ -_ _ __ _ - 3 y�i...` Y,f _ ''G�r - _ ''�� P � ~� _ - - - - .¢ � �. - �- - �� ; _- - I� I I r � ! I � I _ .� � f _-- . fi�_.. ' , ,! ��,� � ;� _ p� �� I!! �- I �, -�., - - I�r �'� ` - r r'�� - - -�r '. - _ k �.� ��...l.= , r��r�-+7� 51 ORGANIZATIONAL SECTION 1 . : • ' _ � � .� �,� �.- Timeline I Description of Activities October- I Strategic Plan review and development December December Westlake Academy Instructional Leadership Team (ILT) begins planning upcoming budget January ILT meets with WA affiliates for joint planning January- March Review/develop CIP, Five Year Projection, and Personnel Cost Estimates April Develop improvement plans for each grade level/dept. May Strategic Plan preparation process occurs; preliminary budgets developed May BOT Budget Retreat June Current budget review; budget amendments for current year if necessary August BOT consideration/adoption of Westlake Academy budget for upcoming school year December Annual financial audit FISCAL AND BUDGETARY POLICIES I. STATEMENT OF PURPOSE The broader intent of the following Fiscal and Budgetary Policy Statements is to enable the Academy to achieve a long-term stable and positive financial condition. The watchwords of the Academy's financial management include integrity, prudent, stewardship, planning, accountability, and full disclosure.The more specific purpose is to provide guidelines to the Finance Director in planning and directing the Academy's day-to-day financial affairs and in developing recommendations to the Academy Superintendent or his designate and Academy Board of Trustees.The scope of these policies generally span, among other issues, accounting, purchasing, auditing, financial reporting, internal controls, operating budgeting, revenue management, cash and investment management, expenditure control, asset management, debt management, and planning concepts, in order to: • Present fairly and with full disclosure the financial position and results of the financial operations of the Academy in conformity with generally accepted accounting principles (GAAP), and • Determine and demonstrate compliance with finance related legal and contractual issues in accordance with provisions of the Texas Local Government Code and other pertinent legal documents and mandates. The Academy Board of Trustees will annually review and approve the Fiscal and Budgetary Policy Statements as part of the budget process. II. SUMMARY OF POLICY INTENDED OUTCOMES This policy framework mandates pursuit of the following fiscal objectives: 52 ORGANIZATIONAL SECTION Operating Budget: Prepare conservatively, estimate revenues, present and adopt the Academy's annual operating plan. Revenues Management: Design, maintain and administer a revenue system that will assure a reliable, equitable, diversified and sufficient revenue stream to support desired Academy services. Expenditure Control: Identify priority services, establish appropriate service levels and administer the expenditure of available resources necessary to assure fiscal stability and the effective and efficient delivery of services. Fund Balance: Maintain the fund balance of the various operating funds at levels sufficient to protect the Academy's creditworthiness as well as its financial position from emergencies. Intergovernmental Relationships: Coordinate efforts with other agencies to achieve common policy objectives, share the cost of providing governmental services on an equitable basis and support favorable legislation at the State and Federal level. Grants: Seek, apply for and effectively administer Federal, State, and foundation grants-in-aid which address the Academy's current priorities and policy objectives. Fiscal Monitoring: Prepare and present regular reports that analyze, evaluate, and forecast the Academy's financial performance and economic condition. Financial Consultants: With available resources, seek out and employ the assistance of qualified financial advisors and consultants in the management and administration of the Academy's financial functions. Accounting,Auditing,and Financial Reporting: Comply with prevailing Federal, State and local statues and regulations. Conform to generally accepted accounting principles as promulgated by the Government Accounting Standards Board (GASB), the American Institute of Certified Public Accountants (AICPA), and the Government Finance Officers Association (GFOA). Internal Controls: To establish and maintain an internal control structure designed to provide reasonable assurances that the Academy's assets are safeguarded and that the possibilities for material errors in the Academy's financial records are minimized. III. OPERATING BUDGET Preparation— Budgeting is an essential element of the financial planning, control, and evaluation process. The "operating budget" is the Academy's annual financial operating plan related to educational service instructional costs. The Academy operating budget is legally required to include the Academy's General, Debt Service, and Food Service Funds. Currently, Westlake Academy only has one fund,the General Fund, which must be legally adopted annually. The Academy budgets the Special Revenue Funds for informational purposes only. Information to be prepared includes documentation related to Service Level Adjustments (SLAs)for 53 ORGANIZATIONAL SECTION increases to existing service levels or additional services, position control schedules, general and administrative cost implications, etc. will be submitted and reviewed during the budget process. SLA's related to new position requests will include an assessment of their impact on additional internal services necessary to support these positions as it relates to General &Administrative (G&A) charges in the Academy budget ( subject to funding availability)to fund these costs. A budget preparation calendar and timetable will be established and followed in accordance with State law. Revenue Estimates for Budgeting-In order to maintain a stable level of services,the Academy shall use a conservative,objective,and analytical approach when preparing revenue estimates.The process shall include analysis of probable economic changes and their impacts on revenues, number of students,and trends in revenues. It will also include an assessment of the State legislative environment related to public charter school funding levels. This approach should reduce the likelihood of actual revenues falling short of budget estimates during the year and should avoid mid-year service reductions. Balanced Budget—A balanced budget is a budget with total expenditures not exceeding total revenues and monies available in the fund balance within an individual fund. Proposed Budget Content and Process—A proposed budget shall be prepared by the Superintendent or his designate with the participation of the Academy's Leadership Team, Finance Director and Academy staff, and then submitted to the Superintendent for review. Following the Superintendent's review,the proposed budget will be presented to the Board for its consideration. The proposed budget shall include five basic segments for review and evaluation: (1) personnel costs, (2) base budget for operations and maintenance costs, (3) service level adjustments for increases of existing service levels or additional services, (4) revenues, and (5) General Administrative (G&A) costs. The proposed budget review process shall include Board of Trustees review of each of the four segments of the proposed budget and a public hearing to allow for citizen participation in the budget preparation process. Concurrent with the Academy budget preparation,Town staff will identify and provide to the Board all direct Academy expenses contained in the Town's municipal budget. The proposed budget process shall allow sufficient time to provide review as well as address policy and fiscal issues by the Board of Trustees. A copy of the proposed budget shall be filed with the Town Secretary when it is submitted to the Board of Trustees as well as placed on the Academy's website. Budget Adoption- Upon the determination and presentation of the final iteration of the proposed budget document as established by the Board of Trustees, a public hearing will be set and publicized. The Board will subsequently consider a resolution which, if adopted, such budget becomes the Academy's Annual Budget. The adopted budget will be effective for the fiscal year beginning September 1. Budget Amendments—The Superintendent or his designate and Finance Department will monitor all financial operations. A school district must amend the official budget before exceeding a functional expenditure category, i.e., instruction, administration,etc. in the total budget.The budget team will decide whether to proceed with the budget amendment and, if so, will then present the request to the Board of Trustees. If the Board decides a budget amendment is necessary,the amendment is adopted in resolution format and the necessary budgetary changes are then made. 54 ORGANIZATIONAL SECTION Planning—The budget process will be coordinated so as to identify major policy issues for the Board of Trustees by integrating it into the Board's overall strategic planning process for the Academy. Reporting- Monthly financial reports will be prepared by the Finance Department and distributed to the Superintendent or his designate. Information obtained from financial reports and other operating reports is to be used by personnel to monitor and control the budget. Summary financial reports will be presented to the Board quarterly. IV. REVENUES MANAGEMENT A. REVENUE DESIGN PARAMETERS. The Academy will strive for the following optimum characteristics in its revenue system: Simplicity-The Academy,where possible and without sacrificing accuracy, will strive to keep the revenue system simple in order to reduce costs, achieve transparency, and increase parent and citizen understanding of Academy revenue sources. Certainty-A thorough knowledge and understanding of revenue sources increases the reliability of the revenue system. Administration-The benefits of a revenue source will exceed the cost of administering that revenue. Every effort will be made for the cost of administration to be reviewed annually for cost effectiveness as a part of the indirect cost and cost of service analysis. Equity-The Academy shall make every effort to maintain equity in its revenue system: i.e. the Academy shall seek to minimize or eliminate all forms of subsidization between entities. Adequacy, Diversification and Stability—To the extent practical,the Academy shall attempt to achieve a balance in its revenue system. The Academy shall also strive to maintain a balanced and diversified revenue system to protect the Academy from fluctuations in any one source due to changes in local economic conditions which adversely impact that source. B. REVENUE CLASSIFICATION AND SOURCES. The revenues received by Westlake Academy are classified into one of three broad categories: Federal, State or Local and come from the following sources: • State Education funding • State and Federal Grants • General Donations—The Academy recognizes that private donations comprise a significant part of the Westlake Academy budget. All funds received will become part of the budget and be subject to appropriation for Academy general operations. o Westlake Academy Foundation o House of Commons o Westlake Academy Athletic Club o Local Merchants • Specific Purpose Donations— Funds donated for a specific purpose 55 ORGANIZATIONAL SECTION C. REVENUE MONITORING. Revenues as they are received will be regularly compared to budgeted revenues and variances will be investigated. This process will be summarized in the appropriate budget report. V. EXPENDITURE CONTROL Appropriations—The point of budgetary control is at the function level in the General Fundand Special Revenue Funds. When budget adjustments among functions are necessary,they must be approved by the Board of Trustees. Current Funding Basis-The Academy shall operate on a current funding basis. Expenditures shall be budgeted and controlled so as not to exceed current revenues plus the planned use of fund balance accumulated through prior year savings. (The use of fund balance shall be guided by the Fund Balance/Retained Earnings Policy Statements.) Avoidance of Operating Deficits-The Academy shall take immediate corrective actions if at any time during the fiscal year expenditure and revenue re-estimates are such that an operating deficit(i.e., projected expenditures in excess of projected revenues) is projected at year-end. Corrective actions can include a hiring freeze, expenditure reductions, or use of fund balance within the Fund. Use of fund balance must be recommended by the Superintendent and approved by the Board of Trustees. ❖ Expenditure deferrals into the following fiscal year, short-term loans, or use of one- time revenue sources shall be avoided to balance the budget. ❖ All service level adjustments that result in increases to the operating budget must be aligned with offsetting increases in operating revenues (FSP, Local Sources, etc.). Periodic Program Reviews-The Superintendent or his designate shall undertake periodic staff and third- party reviews of Academy programs for both efficiency and effectiveness. Where appropriate, privatization and contracting with other governmental agencies will be evaluated as alternative approaches to service delivery. Service delivery which is determined to be inefficient and/or ineffective shall be reduced in scope or eliminated. General and Administrative (G&A)Charges—To the extent practical, an annual analysis of G&A charges will be performed and, if available, funding may be allocated at the Board's discretion. The analysis shall involve an objective consideration of the service demands currently being met by municipal staff to support Academy operations and a determination of factors that will continue to affect and increase the time needed for the performance of these services. For example, new Academy staff requires additional support staff time to perform tasks related to insurance, payroll, etc. Where feasible, G&A costs will be charged to all funds for services of indirect general overhead costs, which may include general administration,finance, facility use, personnel,technology, engineering, legal counsel, and other costs as deemed appropriate. If funding is not available,these costs will be shown below the line of the financial statement in the five-year financial forecast in order to promote transparency and provide the Board with a full cost accounting of services. The charges will be determined through an indirect cost allocation study following accepted practices and procedures. 56 ORGANIZATIONAL SECTION Purchasing-The Academy shall make every effort to maximize any discounts offered by creditors/vendors. Staff shall also use purchasing cooperatives as well as competitive bidding in accordance with State law to attain the best possible price on goods and services. Prompt Payment-All invoices will be paid within 30 days of receipt in accordance with the prompt payment requirements of State law. Salary-The Academy shall strive to maintain competitive salary levels for faculty and staff. A salary survey will be conducted annually, sampling surrounding Independent School Districts and Charter Schools,to create a comparison. The Academy will strive to maintain salary levels within three percent (3%) of the median of surveyed schools. VI. FUND BALANCE Fund Balance Reporting-The District shall report governmental fund balances per GASB 54 definitions in the balance sheet as follows: Non-spendable, Restricted, Committed,Assigned, and Unassigned. General Fund Unassigned Fund Balance-The Academy shall maintain the General Fund unassigned fund balance at 45 days of operation. Use of Fund Balance- Fund Balance will be targeted to only be used with Board approval and can be only be used for the following: emergencies, non-recurring expenditures, such as technology/FF&E (furniture, fixtures and equipment), or major capital purchases that cannot be accommodated through current year savings. Should such use reduce the balance below the appropriate level set as the objective for that fund, recommendations will be made on how to restore it. The Board of Trustees shall approve all commitments by formal action. The action to commit funds must occur prior to fiscal year-end, to report such commitments in the balance sheet of the respective period, even though the amount may be determined subsequent to fiscal year-end. A commitment can only be modified or removed by the same formal action.The Board of Trustees delegates the responsibility to assign funds to the Superintendent or his/her designee. The Board of Trustees shall have the authority to assign any amount of funds. Assignments may occur subsequent to fiscal year-end. The Board of Trustees will utilize funds in the following spending order: Restricted, Committed,Assigned, and Unassigned. VII. INTERGOVERNMENTAL RELATIONSHIPS Inter-local Cooperation in Delivering Services- In order to promote the effective and efficient delivery of services,the Academy shall actively seek to work with other local entities in joint purchasing consortium, sharing facilities, sharing equitably the costs of service delivery, and developing joint programs to improve service to its students. Legislative Program -The Academy shall cooperate with other entities to actively oppose any state or federal regulation or proposal that mandates additional Academy programs or services and does not provide the funding to implement them. Conversely, as appropriate,the Academy shall support legislative initiatives that provide additional funding. 57 ORGANIZATIONAL SECTION VIII. GRANTS Grant Guidelines-The Academy shall apply, and facilitate the application by others,for only those grants that are consistent with the objectives and high priority needs previously identified by Academy Board of Trustees.The potential for incurring ongoing costs,to include the assumption of support for grant funded positions from local revenues, will be considered prior to applying for a grant. Grant Review-All grant submittals shall be reviewed for their cash match requirements,their potential impact on the operating budget, and the extent to which they meet the Academy's policy objectives. If there are cash match requirements,the source of funding shall be identified prior to application. Staff will focus on one-time grants to avoid long-term implications related to additional expenditures in future yea rs. Grant Program Termination -The Academy shall terminate grant funded programs and associated positions when grant funds are no longer available unless alternate funding is identified and obtained. IX. FISCAL MONITORING Financial Status and Performance Reports-Quarterly reports comparing expenditures and revenues to current budget, noting the status of fund balances to include dollar amounts and percentages, and outlining any remedial actions necessary to maintain the Academy's financial position shall be prepared for review by the Superintendent and the Board of Trustees. Student roster information will also be included in the quarter reports submitted to the Board of Trustees. Compliance with Board Policy Statements-The Fiscal and Budgetary Policies will be reviewed annually by the Board of Trustees and updated, revised or refined as deemed necessary. Policy statements adopted by the Board of Trustees are guidelines, and occasionally, exceptions may be appropriate and required. However, exceptions to stated policies will be specifically identified, and the need for the exception will be documented and fully explained. X. FINANCIAL CONSULTANTS The Academy employs the assistance of qualified financial advisors and consultants as needed in the management and administration of the Academy's financial functions.These areas include but are not limited to investments, debt administration,financial accounting systems, program evaluation, and financial impact modeling.Advisors shall be selected on a competitive basis using objective questionnaires and requests for proposals based on the scope of the work to be performed. XI. ACCOUNTING,AUDITING, AND FINANCIAL REPORTING The Academy strives to comply with prevailing local, state, and federal regulations relative to accounting, auditing, and financial reporting. Accounting practices and financial reporting shall conform to generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board (GASB), the American Institute of Certified Public Accountants, (AICPA), and the Government Finance Officers Association (GFOA).The Board shall select an independent firm of certified public accountants to perform an annual audit of all operations. Required Texas Education Agency(TEA) account coding will be used for all revenue and expenditure reporting. 58 ORGANIZATIONAL SECTION Accounting-Currently, the Education Service Center(Region XI) books all revenues and expenditures, and prepares bank reconciliations. Academy staff is responsible for all coding and approval of expenditures and revenues. Documentation and coding of deposits are forwarded to the Town's Finance Department for review and preparation of deposit slips. Town's Finance Director and staff are responsible for review and transfer of invoices and other documentation to the Service Center for processing as well as the physical deposit of funds. It is the responsibility of the Superintendent or his designate and Academy staff to review the monthly reports for any discrepancies and report to the Town's Finance Director for analysis and re-class of questioned bookings, if appropriate. External Auditing-Academy will be audited annually by outside independent accountants(auditors). The auditors must be a CPA firm and must demonstrate significant experience in the field of local government auditing. They must conduct the Academy's audit in accordance with generally accepted auditing standards. The auditors' report on Academy's financial statements will be completed within a timely period of the Academy's fiscal year-end. The auditor will jointly review the management letter with the Academy Board of Trustees, if necessary. In conjunction with this review, the Finance Director shall respond in writing to the Academy Board of Trustees regarding the auditor's Management Letter, addressing the issued contained therein. The Academy will not require auditor rotation, but will circulate request for proposal for audit services on a periodic basis as deemed appropriate. Responsibility of Auditor to Academy Board of Trustees-The auditor is retained by and is accountable directly to the Academy Board of Trustees and will have access to direct communication with the Academy Board of Trustees if the Academy Staff is unresponsive to auditor recommendations or if the auditor considers such communication necessary to fulfill its legal and professional responsibilities. Internal Financial Reporting-The Finance Department will prepare internal financial reports sufficient for management to plan, monitor, and control Academy's financial affairs. XII. INTERNAL CONTROLS Written Procedures-Whenever possible, written procedures will be established and maintained by the Finance Director and utilized by all Academy personnel for all functions involving purchasing, cash handling and/or accounting throughout the Academy. These procedures will embrace the general concepts of fiscal responsibility set forth in this policy statement. Academy Staff Responsibilities-The Superintendent or his designate, in consultation with the Finance Director,will be responsible for ensuring that appropriate internal controls are followed throughout the Academy, that all directives or internal controls are implemented, and that all independent auditor internal control recommendations are addressed. Staff will develop and periodically update written internal control procedures. XIII. ASSET MANAGEMENT Investments—The Finance Director shall promptly invest all Academy funds with the depository bank in accordance with the provisions of the current Bank Depository Agreement or in any negotiable instrument authorized by the Academy Board of Trustees. The Academy Board of Trustees has formally 59 ORGANIZATIONAL SECTION approved a separate Investment Policy for the Academy of Westlake that meets the requirements of the Public Funds Investment Act (PFIA), Section 2256 of the Texas Local Government Code. The Academy's investment practices will be conducted in accordance with this policy.The Finance Director will issue quarterly reports on investment activity to the Academy Board of Trustees. Cash Management-Academy's cash flow will be managed to maximize the cash available to invest. Such cash management will entail the centralization of cash collections,where feasible, including field trips, and other collection offices as appropriate. Periodic review of cash flow position will be performed to determine performance of cash management and conformance to investment policies. The underlying theme will be that idle cash will be invested with the intent to (1) safeguard assets, (2) maintain liquidity, and (3) maximize return. Capital Assets and Inventory-Such assets will be reasonably safeguarded and properly accounted for and prudently insured. The capital assets inventory will be updated regularly. Capital Assets—Currently all capital assets of Westlake Academy are owned and purchased by the Town of Westlake. In subsequent years, additional asset purchases may be paid with Westlake Academy funds. Capitalization Criteria—For purposes of budgeting and accounting classification,the following criteria must be capitalized: o The asset is owned by the Westlake Academy o The expected useful life of the asset must be longer than one year, or extend the life on an identifiable existing asset by more than one year o The original cost of the asset must be at least$5,000 o The asset must be tangible o On-going repairs and general maintenance are not capitalized o New Purchases—All costs associated with bringing the asset into working order will be capitalized as a part of the asset cost. This includes startup costs, engineering or consultant type fees as part of the asset cost once the decision or commitment to purchase the asset is made. The cost of land acquired should include all related costs associated with its purchase o Improvements and Replacement—Improvement will be capitalized when they extend the original life of an asset or when they make the asset more valuable than it was originally. The replacement of assets components will normally be expenses unless they are a significant nature and meet all the capitalization criteria. Computer System/Data Security—The Academy shall provide security of its computer/network system and data files through physical and logical security systems that will include, but are not limited to: network user authentications,firewalls, content filtering, spam/virus protection, and redundant data backup. 60 ORGANIZATIONAL SECTION FUND BALANCE POLICIES The Superintendent and Board of Trustees are devoted to safeguarding and improving the financial condition of Westlake Academy. The Academy shall strive to maintain an unassigned General Fund Balance of 45 days of operation, and Fund Balance monies will only be used with Board approval for specific needs. There are four primary reasons to maintain an adequate fund balance: • Cash Flow- It is essential for the Board of Trustees to have enough cash on hand for payroll and other obligations to be made timely because most state and federal grants require the Academy to make payment first before the grant will make reimbursement. � Unforeseen Events- Reserves often act as a contingency to meet unbudgeted and unexpected needs, thus allowing time to make permanent changes to the budget and preventing fiscal problems from needlessly worsening. • Financial Security-A fund reserve demonstrates a sign of financial strength and security to banking and financial institutions allowing the Town to borrow funds and sell bonds when additional facilities need to be built or renovated at more favorable rates,thus saving the taxpayers money. • Interest Earning-Having a fund balance allows the Academy to earn additional revenues without having to tax citizens. IUnassigned � Fiscal Fund Daily Min. Min Year Revenues Expenditures Balance % Cost $$ % FY 03/04 Audited $1,094,608 $1,068,857 $12,391 1% $2,928 $131,777 12% FY 04/05 Audited $1,831,898 $1,612,198 $232,091 14% $4,417 $198,764 12% FY 05/06 Audited $2,407,526 $2,211,897 $427,720 19% $6,060 $272,700 12% FY 06/07 Audited $2,879,531 $2,615,511 $691,740 26% $7,166 $322,460 12% FY 07/08 Audited $3,168,968 $3,226,254 $634,454 20% $8,839 $397,757 12% FY OS/09 Audited $3,661,645 $3,709,086 $502,322 14% $10,162 $457,285 12% FY 09/10 Audited $4,280,723 $3,917,886 $753,772 19% $10,734 $483,027 12% FY 10/11 Audited $4,608,573 $4,518,107 $798,851 18% $12,378 $557,027 12% FY 11/12 Audited $5,244,170 $5,287,757 $814,487 15% $14,487 $651,915 12% FY 12/13 Audited $5,640,930 $5,496,177 $959,240 17% $15,058 $677,611 12% FY 13/14 Audited $6,560,141 $6,733,873 $1,024,517 15% $18,449 $830,204 12% FY 14/15 Estimated $7,699,024 $7,570,239 $1,016,952 13% $20,740 $933,317 12% FY 15/16 Adopted $7,941,626 $7,851,666 $1,106,912 14% $21,511 $968,014 12% The table above lists the revenues and expenditures for each year since the Academy began operating. The Fund Balance column lists the accumulated ending fund balance (the chart does not show transfers in/out which influence the fund balance each year);the percentage that follows this column represents the ratio of fund balance to annual expenditures i.e. in FY 04/05, 14%correlates to the $232,091 fund balance that was equal to approximately 14%of annual expenditures of$1,612,198 for the same fiscal year. Daily cost is calculated by dividing the annual expenditure amount by 365 days. The minimum dollar and minimum percentage amounts are calculated based on the Board's financial policy of maintaining a minimum of 45 days of operating costs in fund balance, i.e. daily cost multiplied by 45. 61 ORGANIZATIONAL SECTION 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 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 62 ORGANIZATIONAL SECTION term to provide adequate liquidity. The portfolio shall be diversified to protect against market and credit risk in any one sector. The maximum weighted average maturity of the portfolio will be no more than 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 Superintendent. 63 ORGANIZATIONAL SECTION VI. PRUDENCE The standard of prudence to be used in the investment function shall be the "prudent person" standard and shall be applied in the context of managing the overall portfolio. This standard states: "Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the expected income to be derived." • Limitation of Personal Liability-The Investment Officer and those delegated investment authority, when acting in accordance with the written procedures and this Policy and in accord with the Prudent Person Rule, shall be relieved of personal liability in the management of the portfolio provided that deviations from expectations for a specific security's credit risk or market price change are reported in a timely manner and that appropriate action is taken to control adverse market effects. VII. INTERNAL CONTROLS The Investment Officer shall establish a system of written internal controls which will be reviewed annually with the independent auditor of the Academy. The controls shall be designed to prevent loss of public funds due to fraud, employee error, and 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. • Obligations of the United States Government, its agencies and instrumentalities, not to exceed two (2)years to stated maturity and excluding mortgage backed securities; • 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; • 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; • 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. 64 ORGANIZATIONAL SECTION • 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 an Academy Broker/Dealer questionnaire (attached as Exhibit D). The following criteria must be met by authorized firms. • annual provision of an audited financial statement, • proof of certification by the National Association of Securities Dealers (NASD) • proof of current registration with the Texas State Securities Commission, and • completion of the Academy's broker/dealer questionnaire. Every bank and broker/dealer with whom the Academy transacts business will be provided a copy of this Investment Policy to assure that they are familiar with the goals and objectives of the investment program. The firm will be required to return a signed copy of the Certification Form 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. 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 which 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 65 ORGANIZATIONAL SECTION held by an independent third party bank outside the holding company of the bank, pledged to the Academy. Authorized collateral will include only: • Obligations of the US Government, its agencies and instrumentalities to include mortgage backed securities which pass the bank test, • Municipal obligations rated at least A by two nationally recognized rating agencies. The custodian shall be required to provide original safekeeping receipts clearly marked that the security is pledged to the Academy. XII. REPORTING The Investment Officer shall submit quarterly reports to the Board of Trustees containing sufficient information to permit an informed outside reader to evaluate the performance of the investment program and in full compliance with the Act. At a minimum the report shall contain: • Beginning and ending market value of the portfolio by market sector and total portfolio • Beginning and ending book value of the portfolio by market sector and total portfolio • Change in market value during the period • Detail on each asset(book, market, description, par ad maturity date) • Earnings for the period • Overall weighted average maturity of the portfolio The report will be prepared jointly by all involved in the investment activity and be signed by the Investment Officer. It will contain all elements as required by the Act and be signed by the Investment Officers as in compliance with the Act and this Policy. Market prices for assignment of market values will be obtained from an independent source. XIII. DEPOSITORIES The Academy will designate one banking institution through a competitive process as its central banking services provider at least every five years. This institution will be used for normal banking services including disbursements, deposits, and safekeeping of Academy owned securities. Other banking institutions from which the Academy may purchase only certificates of deposit will also be designated as a depository. All banking arrangements will be in written form in accordance with FIRREA which requires a resolution of approval of the agreement by the Bank Council or Bank Loan Committee. XIV. INVESTMENT POLICY ADOPTION BY BOARD The Academy's Investment Policy and its incorporated strategies shall be adopted by resolution annually by the Board.The approval and any changes made to the Policy will be noted in the approving resolution. 66 • � • � � � . --� a�, .� .� � �./ �P� ' � �' �,�- � � �` ��1��1�1� Cl � ��r�� a�� e ��« � -� � � � � � �� . � � � Y�� a r � � � v � ,� �� S�� S� � .� �► � � � �' .� � � � � _, � �" sv� � `'` • .� �� ` � ,� ,� `�' �' � � � � � �' � �' '�� .� � ■ � ■ - �� '��1�� -�,�� FINANCIAL SECTION MAJOR REVENUE SOURCES AND EXPENDITURES REVENUES: The revenues received by Westlake Academy are classified into one of three broad categories: State, Federal and Local. • State funding is the Academy's largest revenue source, making up over 78%of revenues from all funds. Funding for public education has increased slightly over the last two legislative sessions, but overall funding still falls short of the FY 2009/10 school year. The Texas economy has been strong, but ongoing litigation regarding public education funding has created a hesitancy to adjust funding projections until the courts have ruled upon the constitutionality of the current funding methodology. Consequently,the Academy continues to utilize prior year funding levels when developing financial models and forecasts. Staff estimates that the average level of total state aid received through the Foundation School Program (FSP) in FY 2015/16 will be approximately$7,085 per student, a small (less than 1%) increase from FY 2014/15. • Local funding consists of two major sources,the Town of Westlake and Westlake Academy Foundation (WAF). The Town provides administrative, HR, facilities, and financial services for the Academy and is also responsible for all debt service payments relating to Academy facilities and infrastructure. The Foundation is an independent non-profit organization that raises funds through donations and various fund raising efforts;the FY 2015/16 forecast is $1,100,000. The WAF conducts several annual fundraising activities, including the Blacksmith Campaign, an annual fund drive which started as a way to close the funding gap between what charter schools receive in state allocations in comparison to local ISDs. It mainly directs fund raising efforts towards the parents of Academy students and tries to leverage these donations with the employers who have matching programs for individuals that contribute time or money to non-profits. The Blacksmith Campaign is held each year in the month of October and each family is asked to contribute $2,500 per student to help cover the gap between the state public education funding and what the Academy actually spends on each student. • Federal funding is received through grants that support special education and accounts for approximately one percent (1%) of revenues for all funds. Gifts&Donations $9 Revenues by Source Interest Earned $g Food Services $� � $1.10 Transportation/Parking $1:10 ,� $6 Other local Revenue c $0.85 •° $5 — $0.74 �WAF Fund-an-Item $0.67 � $4 .43 r�WAF Salary Reimbursement $3 ' � � � Athletic Activities . $2 � � � � . ■Town Contribution $1 �i WAF Blacksmith $� ■State Revenue FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 Estimated Adopted 69 FINANCIAL SECTION EXPENDITURES: Compensation and benefits are Westlake Academy's largest operating cost. In FY 15/16, staff recommends a realignment of the salary scale,following Board policy which states a desire to maintain the median salary within three percent (3%) of the districts surveyed for market comparison purposes. This realignment would result in an average salary increase of 3.9%from FY 14/15. Pay steps furthest from the estimated market median would be increased by up to 5.52%. The pay steps furthest from the market median are primarily in years 0-7, and will consequently require larger adjustments to realize our desired market position. The increase equals approximately$130,500 with an additional $12,500 in insurance increases. Realignment of the salary scale will be a valuable tool in our recruiting and retention effort. . All Governmental Funds: . -�.� - Expenditures by Object q � (�f, 65XX-Debt Service 62XX-Contracted 1% Services 64XX-Other Operating 5% 63XX-SUpplles& 12% Materials 9% DEBT SERVICE � CAPITAL EXPENDITURES The Town of Westlake is responsible for debt service payments associated with Westlake Academy's capital infrastructure. The Town's Debt Service Fund is used to manage payments, and Academy debt is accounted for in the annual municipal budget. Approximately$30M in debt has been issued since 2002 to develop Academy facilities; this debt will be fully retired in 2043. The average annual debt service for Academy facilities paid by the Town of Westlake is approximately$1.856M. FY 15/16 debt service payments related to the construction of Westlake Academy facilities include: • $702,383 on Series 2007 General Obligation Refunding Bonds • $312,800 on Series 2011 General Obligation Refunding Bonds • $448,198 on Series 2013 Certificates of Obligation • $142,650 on Series 2013 General Obligation Refunding Bonds • $252,560 on Series 2014 General Obligation Refunding Bonds For more information, see Town of Westlake FY 15/16 Annual Municipal Budget, available online at www.westlake-tx.org. �o FINANCIAL SECTION SERVICE LEVEL ADJUSTMENTS This budget makes use of Service Level Adjustments (SLA)to track cost changes. There are four types of Service Level Adjustments: (1) increased operating costs to maintain current levels of service, (2) increased operating costs due to expanded levels of service, (3) increased costs due to the development of new services, and (4) cost savings. Cost savings may occur for any number of reasons, but primarily arise due to increased efficiency, service level reductions, or not expending budgeted resources. Note that totals in brackets ( ) denote a decrease in expenditures. For FY 2015/16, staff recommends the following adjustments: Salary Related Expenditures Total: $389,003 Balanced Scorecard Perspective: People, Facilities, &Technology Outcome Objective: Attract, Recruit, Retain, & Develop the Highest Quality Workforce • Increases in FY 15/16 salary related expenditures are primarily due to the direct and indirect costs associated with the addition of 4.10 full-time equivalent positions and increases in unemployment insurance and other employer contributions. Professional & Contracted Services Total: $(153,094) Balanced Scorecard Perspective: Academic Operations Outcome Objective: Improve the Efficiencies of Operational Systems • This category includes expenditures related to professional and contracted services rendered to the Academy by firms, individuals, and other organizations. Cost savings in contract services are the result of a staff analysis that concluded it would be more cost effective to directly employ certain support staff, including a speech language pathologist, as opposed to contracting out for services. Supplies & Materials Total: $53,336 Balanced Scorecard Perspective: Academic Operations Outcome Objective: Optimize Student Potential • Supplies and materials costs are associated with consumables that are used in the classroom, maintenance of the campus, books, iPads,testing materials,furniture, and classroom supplies. Other Operatin� Costs Total: $(7,818) Balanced Scorecard Perspective: People, Facilities, &Technology Outcome Objective: Increase the Capacity of Teachers & Staff • Other operating costs are associated with insurance, professional development,travel, membership fees and dues, graduations expenses, and miscellaneous costs. Cost savings in this category were shifted to Supplies and Materials. �i FINANCIAL SECTION FINANCIAL FORECAST FORECAST ASSUMPTIONS Basic Assumptions: • 18 students per class in Kindergarten through G5 • 23-24 students per section in G6-G12 • Average Daily Attendance rate of 97% Revenues: • 100% use of WAF Annual Program revenues (adopted $1.1 million) • Slight but negligible increase in FSP funding in FY 2015/16 (revenues held flat) Expenditures: • Personnel costs are estimated to increase an estimated 1%annually • Professional Services will only increase if revenues increase • Supplies increase will only increase if revenues increase • Other operating expenditures will increase only if revenues increase Charter schools do not have taxing authority, making them reliant upon state and local funding sources. As an open enrollment charter school, all State funding is determined each legislative session and channeled to Westlake Academy through the Foundation School Program (FSP). Charter schools are funded based on their weighted average daily attendance (WADA). A school's WADA is determined not only by the number of students attending, but their participation in special programs, such as special education. The majority of WA funding is derived from the Foundation School Program. Secondary sources include the Westlake Academy Foundation and the Blacksmith Campaign. Growth in local revenues has been significant and is a result of strong parent support of the Academy. Future revenue projections are based upon the State's current funding formula and current local donation levels. Due to the uncertainty of state funding,the Academy adopted a new policy in FY 14/15 which only allows increases in expenditures if there is an offsetting increase in revenues. �z Westlake Academy-General Fund FINANCIAL SECTION Five Year Financia)Forecast FY 2015-16 thru FY 2019-20 Audited Adopted Estimated Projected Amount Percent Projected Projected Projected Projected FY 13/14 FY 14/15 FY 14/15 FY 15/16 Inc/�Dec) Inc/(Dec FY 16/17 FY 17/18 FY 18/19 FY 19/20 WAF Salary Reimbursement $ 47,600 $ 48,790 $ 48,790 $ 49,770 $ 980 2% $ 50,268 $ 50,770 $ 51,278 $ 51,791 Other Local Revenue(BTS,Tech&Other) 36,499 32,500 47,500 54,000 6,500 14% 54,000 54,000 54,000 54,000 WAF Donation 850,979 1,100,000 1,100,000 1,100,000 - 0% 1,100,000 1,100,000 1,100,000 1,100,000 WAF Fund-an-Item(Moved to SRF) 50,851 50,000 - - - 0% - - - - Interest Earned 1,450 1,515 1,575 1,575 - 0% 1,730 1,865 1,912 2,019 Food Services 3,000 6,000 6,000 6,000 - 0% 1,865 6,000 6,000 6,000 Town Contribution 282,000 15,000 15,000 15,000 - 0% 15,000 15,000 15,000 15,000 Town Contribution-Westlake Reserve - 300,000 300,000 300,000 - 0% 300,000 300,000 300,000 300,000 AthleticActivities 60,563 64,000 69,500 81,150 11,650 17% 81,150 81,150 51,150 81,150 Transportation/Parking 36,890 46,000 40,000 41,225 1,225 3% 41,225 41,225 41,225 41,225 Total Local Revenues 1,369,832 1,663,805 1,628,365 1,648,720 20,355 1% 1,645,238 1,650,010 1,650,565 1,651,184 percent of total revenues 21% 22% 21% 21% 21% 23Y 21% 21% TEA-Available5choolFunds 167,900 172,854 172,854 222,779 49,925 29% 222,779 222,779 222,779 222,779 TEA-FSP Funds 4,697,314 5,280,952 5,532,180 5,671,950 139,770 3% 5,671,950 5,671,950 5,671,950 5,671,950 TEA-IB Training(15 Teachers) 6,750 6,750 100% 6,750 6,750 6,750 6,750 TRS On-behalf/Medicare Part B 325,094 328,286 365,625 391,427 25,802 7% 395,342 399,295 403,288 407,321 Total Staie Revenues 5,190,308 5,782,092 6,070,659 6,292,906 222,247 4% 6,296,821 6,300,774 6,304,767 6,308,800 percent of total revenues 79% 78% 79% 79% 79% 79% 79% 79% TOTALREVENUES 6,560,140 7,445,897 7,699,024 7,941,626 242,602 3% 7,942,058 7,950,784 7,955,332 7,959,984 EXPENDITURE$by FUNCTION Function 11-Instructional 4,017,952 4,510,171 4,372,465 4,579,900 207,436 5% Function 12-Resources&Media 56,552 66,252 68,452 74,801 6,349 9% Function 13-Curriculum&Staff Developme 75,493 104,089 160,085 134,590 (25.495) -16% Function2l-InstructionalLeadership 165,116 213,112 225,237 264,259 39,022 17% Function 23-SchoolLeadership 552,170 606,038 638,013 778,866 140,853 22% Function 31-Guidance&Counseling 252,334 246,535 280,079 205,230 (74,849) -27% Function 33-Health Services 61,890 68,710 69,SS5 66,617 (2,968) -4% Function 35-Food Services - 500 - - - 0% Function 36-Co/Extracurricular Activities 121,840 139,256 139,461 146,774 7,313 5% Function4l-Administrative 379,868 343,836 353,992 306,986 (47,006) -13% Function 51-Maintenance&Operations 733,367 956,091 950,567 915,068 (35,499) -4% Function 52-Security&Monitoring Services 700 5,695 4,995 714% Function 53-Data Processing 177,063 105,015 111,015 169,678 58,663 53% Function 61-Community Services 106,495 110,823 110,024 112,638 2,614 2% Function 71-Debt Service 3,733 84,186 90,565 90,565 - 0% FuncTion S1-Facility Acquisition/Constructi - - - - - 0% TOTAL EXPENDITURES BY FUNCTION 6,733,873 7,554,617 7,570,239 7,851,666 281,427 4% - - - - Object Code 61XX-Salaries 4,911,121 5,431,205 5,523,798 5,912,800 389,003 7% 5,971,928 6,031,648 6,091,964 6,152,884 Object Code 62XX-Contracted Services 910,036 1,032,369 1,093,539 940,445 (153,094) -14% 940,445 940,445 949,849 959,348 Object Code 63XX-Supplies&Materials 621,114 645,390 429,779 483,115 53,336 12% 483,115 483,115 453,115 483,115 Object Code 64XX-Other Operating Costs 287,869 361,468 432,559 424,741 (7,818) -2% 424,741 424,741 424,741 424,741 Object Code 65XX-Debt Service 3,733 84,186 90,565 90,565 - 0% 90,186 - - - Object Code 66XX-Capital Assets - - - - - 0% - - - - TOTAL EXPENDITURES BY OBJECT 6,733,873 7,554,617 7,570,239 7,851,666 281,427 4% 7,910,415 7,879,949 7,949,669 8,020,OS8 OtherResources-Local 239,009 45,000 45,000 45,000 - 0% 45,000 45,000 45,000 45,000 OtherUses-Local - (45,000) (as,000) (as,000) - or (as,000) (as,000) (as,000) �as,000) NET OTHER RESOURCES(USES) 239,009 - - - - 0% - - - - EXCE55 REVENUES OVER(UNDER)EXPENDI 65,277 (108,720) 128,755 89,960 (35,825) -30% 31,643 70,836 5,663 (60,103) FUND BALANCE BEGINNING 959,240 1,024,517 1,024,517 1,153,302 128,785 13% 1,243,262 1,274,905 1,345,741 1,351,404 FUND BALANCE ENDING 1,024,517 915,797 1,153,302 1,243,262 89,960 8% 1,274,905 1,345,741 1,351,404 1,291,301 Assigned-Technology/FFE - 125,000 125,000 125,000 - 0% 125,000 125,000 125,000 125,000 Assigned-Uniform/Equipment Replacement - 5,000 11,350 11,350 - 0% 11,350 11,350 11,350 11,350 FUND BALANCE ENDING(Unassigned) $ 1,024,517 $ 785,797 $1,016,952 $ 1,306,912 $ 89,960 9% $1,138,555 $1,209,391 $1,215,054 $1,154,951 Number of Operating Days(365) 56 38 49 51 53 56 56 53 Dollars per Operating Day $ 18,449 $ 20,698 $ 20,740 $ 21,511 771 4% $ 21,672 $ 21,589 $ 21,780 $ 21,973 Primary Students 324 316 324 8 3% 324 324 324 324 Secondary Students 498 496 508 12 2% 508 508 508 508 TOTALSTUDENTSENROLLED 697 822 812 832 20 2% 832 S32 832 832 TEA Funding per Student $ 6,980 $ 6,635 $ 7,026 $ 7,085 59 1% $ 7,085 $ 7,085 $ 7,085 $ 7,085 Operating Cost perStudent 9,661 9,191 9,323 9,437 114 1% 9,508 9,471 9,555 9,640 Teachers 4731 55.40 55.40 5831 3 5% 58.31 5831 5831 5831 Student/Teacher Ratio 14.73 14.84 14.66 14.27 (039) -3% 14.27 14.27 14.27 14.27 73 FINANCIAL SECTION WESTLAKE ACADEMY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE ALL GOVERNMENTAL FUNDS For the Year Ending August 31, 2016 Adopted Estimated Adopted Variance Audited Audited Audited Budget Budget Budget Estimated to FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 14/15 FY 15/16 Adopted REVENUES Local Revenues $1,237,004 $1,158,045 $1,636,975 $1,711,305 $2,132,698 $1,754,220 $ (378,478) State Program Revenues 4,362,921 4,696,540 5,269,641 5,782,092 6,104,248 6,435,693 331,445 Federal Program Revenues 152,351 81,958 80,103 73,896 162,270 90,000 (72,270) 5,752,276 5,936,543 6,986,719 7,567,293 8,399,215 8,279,913 (119,302) EXPENDITURES(BY FUNCTION) 11 -Instructional 3,170,372 3,458,116 4,264,664 4,621,940 4,725,156 4,906,188 181,031 12 -Resources&Media 89,129 57,784 57,884 66,252 68,452 74,801 6,349 13 -Staff Development 74,656 130,442 148,356 129,589 220,260 197,590 (22,670) 21 -Instructional Leadership 135,962 93,964 165,116 237,967 260,737 264,259 3,522 23 -School Leadership 347,515 341,039 597,075 660,620 724,498 801,866 77,368 31 -Guidance&Counseling 232,419 244,900 282,334 246,539 280,169 205,230 (74,939) 33 -Health Services 60,917 58,208 61,890 68,711 69,585 66,617 (2,968) 35 -Food Services 11,517 - 500 - - - 36 -CoCurricular/Extra.Activities 131,972 125,139 152,261 171,255 164,461 171,774 7,313 41 -Administrative 675,763 363,548 389,673 343,835 353,992 306,986 (47,006) 51 -Maintenance&Operations 596,913 614,042 733,367 956,091 950,567 915,068 (35,499) 52-Security&Monitoring Services 700 5,695 4,995 53 -Data Processing 173,587 160,695 177,063 105,015 111,015 169,678 58,663 61 -Community Services 76,880 86,845 113,995 110,824 110,024 112,638 2,614 71 -Debt Service - - 3,733 84,186 90,565 90,565 - 81 -FacilityAcquisition/Construction 15,960 27,930 - - - - - Total Expenditures 5,793,560 5,762,652 7,147,411 7,803,324 8,130,180 8,288,953 158,773 Excess(Deficiency)of Revenues Over (Under)Expenditures (41,285) 173,891 (160,692) (236,031) 269,035 (9,040) (278,075) OTHER FINANCING SOURCES(USES) 79-Other Resources 26,124 40,959 239,009 45,000 45,000 45,000 - 89-Other Uses (26,124) (40,959) - (45,000) (45,000) (45,000) - 79-Special Item-Resource 67,760 - - - - - - 89-Extraordinary Item-Use (124,346) - - - - - - Total Other Financing Sources(Uses) (56,586) - 239,009 - - - - NET CHANGES IN FUND BALANCE (97,871) 173,891 78,317 (236,031) 269,035 (9,040) (278,075) FUND BALANCE,BEGINNING 916,962 819,090 992,981 1,071,298 1,071,298 1,340,333 269,035 FUND BALANCE,ENDING 819,090 992,981 1,071,298 835,267 1,340,333 1,331,292 (9,040) Assigned-Tech/FF&E Replacemt - - - 125,000 125,000 125,000 - Assigned-Uniforms/Equip Rep. - - - 5,000 11,350 11,350 - Assigned-Facility Maintenance/FFE - - - - - - - FUND BALANCE,UNASSIGNED $ 819,090 $ 992,981 $1,071,298 $ 705,267 $1,203,983 $1,194,942 $ (9,040) 74 FINANCIAL SECTION WESTLAKE ACADEMY ALL GOVERNMENTAL FUNDS For the Year Ending August 31, 2016 TOTALREVENUES Adopted Estimated Adopted Variance Audited Audited Audited Budget Budget Budget Estimated FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 14/15 FY 15/16 Proposed General Fund $5,244,170 $5,640,934 $6,560,141 $7,445,897 $7,699,024 $7,941,626 $ 242,602 Special Revenue Funds 508,106 295,609 426,578 121,396 700,191 338,287 (361,904) Total Governmental Funds $5,752,276 $5,936,543 $6,986,719 $7,567,293 $8,399,215 $8,279,913 $(119,302) TOTAL EXPEN DITU RES Adopted Estimated Adopted Variance Audited Audited Audited Budget Budget Budget to FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 14/15 FY 15/16 Proposed General Fund $5,287,757 $5,496,181 $6,733,873 $7,554,617 $7,570,240 $7,851,666 $ 281,426 Special Revenue Funds 505,804 266,471 413,538 248,707 559,941 437,287 (122,654) Total Governmental Funds $5,793,561 $5,762,652 $7,147,411 $7,803,324 $8,130,181 $8,288,953 $ 158,772 EXPENDITURES BY OBJECT CODE Adopted Estimated Adopted Variance Audited Audited Audited Budget Budget Budget to Expenditures by Object FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 14/15 FY 15/16 Proposed 61XX-Payroll&Related Items $4,089,284 $4,339,743 $5,198,873 $5,618,025 $5,776,828 $6,047,107 $ 270,279 62XX-Contracted Services 1,075,052 865,171 958,209 1,064,256 1,152,239 974,140 (178,099) 63XX-Supplies&Materials 345,997 267,105 672,965 672,890 620,490 748,402 127,912 64XX-OtherOperating 283,228 290,633 313,631 363,967 490,059 428,741 (61,319) 65XX-DebtService - - 3,733 84,186 90,565 90,565 - Total Expenditures $5,793,561 $5,762,652 $7,147,411 $7,803,324 $8,130,181 $8,288,954 $ 158,773 61XX Payroll&Related Items 73% All Governmental Funds Expenditures ,; by Object 62XX Contrected Services 65XX 12% Debt Service 1� 64XX- 63XX OtherOperating Supplies&Materials 5% 9% 75 FINANCIAL SECTION WESTLAKE ACADEMY ALL GOVERNMENTAL FUNDS For the Year Ending August 31,2016 Adopted Estimated Adopted Audited Audited Audited Budget Budget Budget FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 14/15 FY 15/16 REVENUE SUMMARY Local Revenues $ 1,237,004 $ 1,158,045 $ 1,636,975 $ 1,711,305 $ 2,132,698 $ 1,754,220 State Program Revenues 4,362,921 4,696,540 5,269,641 5,782,092 6,104,248 6,435,693 Federal Program Revenues 152,351 81,958 80,103 73,896 162,270 90,000 Total Revenues $ 5,752,276 $ 5,936,543 $ 6,986,719 $ 7,567,293 $ 8,399,215 $ 8,279,913 Adopted Estimated Adopted Audited Audited Audited Budget Budget Budget EXPENDITURES(BY FUNCTION) FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 14/15 FY 15/16 11 -Instructional $ 3,170,372 $ 3,458,116 $ 4,264,664 $ 4,621,940 $ 4,725,156 $ 4,906,188 12 -Resources&Media 89,129 57,784 57,884 66,252 68,452 74,801 13 -Staff Development 74,656 130,442 148,356 129,589 220,260 197,590 21 -Instructional Leadership 135,962 93,964 165,116 237,967 260,737 264,259 23 -School Leadership 347,515 341,039 597,075 660,620 724,498 801,866 31 -Guidance&Counseling 232,419 244,900 282,334 246,539 280,169 205,230 33 -Health Services 60,917 58,208 61,890 68,711 69,585 66,617 35 -Food Services 11,517 - - 500 - - 36 -CoCurricular/Extra.Activities 131,972 125,139 152,261 171,255 164,461 171,774 41 -Administrative 675,763 363,548 389,673 343,835 353,992 306,986 51 -Maintenance&Operations 596,913 614,042 733,367 956,091 950,567 915,068 52- Security&Monitoring5ervices - 700 5,695 53 -Data Processing 173,587 160,695 177,063 105,015 111,015 169,678 61 -Community Services 76,880 86,845 113,995 110,824 110,024 112,638 71 -Debt Service - - 3,733 84,186 90,565 90,565 81 -FacilityAcquisition/Construction 15,960 27,930 - - - - Total Expenditures $ 5,793,561 $ 5,762,652 $ 7,147,411 $ 7,803,324 $ 8,130,180 $ 8,288,953 All Governmental Funds ■ State Program Revenues Revenues� 78% � Federal Program Revenues 1% �J Local Revenues 21% 76 FINANCIAL SECTION WESTLAKE ACADEMY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GENERALFUND For the Year Ending August 31, 2016 Adopted Estimated Adopted Variance Audited Audited Audited Budget Budget Budget Estimated to FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 14/15 FY 15/16 Proposed REVENUES Local Revenues $ 881,249 $ 992,281 $ 1,369,833 $ 1,663,805 $ 1,628,365 $ 1,648,720 20,355 State Program Revenues 4,362,921 4,648,649 5,190,308 5,782,092 6,070,659 6,292,906 222,247 Total Revenues 5,244,170 5,640,930 6,560,141 7,445,897 7,699,024 7,941,626 242,602 EXPENDITURES(BY FUNCTION) 11 -Instructional 2,825,527 3,278,767 4,017,952 4,510,171 4,372,465 4,579,901 207,436 12 -Resources&Media 74,628 57,784 56,552 66,252 68,452 74,801 6,349 13 -Staff Development 9,732 89,084 75,493 104,089 160,085 134,590 (25,495) 21 -Instructional Leadership 134,839 93,965 165,116 213,112 225,237 264,259 39,022 23 -School Leadership 341,469 332,693 552,170 606,038 638,013 778,866 140,853 31 -Guidance&Counseling 229,067 241,791 282,334 246,538 280,079 205,230 (74,849) 33 -Health Services 60,917 58,208 61,890 68,710 69,585 66,617 (2,968) 35 -Food Services 11,517 - - 500 - - - 36 -CoCurricular/Extra.Activities 103,131 96,063 121,840 139,256 139,461 146,774 7,313 41 -Administrative 655,149 358,311 379,868 343,836 353,992 306,986 (47,006) 51 -Maintenance&Operations 584,891 614,041 733,367 956,091 950,567 915,068 (35,499) 52 -Security and Monitoring Services 700 5,695 4,995 53 -Data Processing 164,049 160,695 177,063 105,015 111,015 169,678 58,663 61 -Community Services 76,880 86,844 106,495 110,824 110,024 112,638 2,614 71 -Debt Service - - 84,186 90,565 90,565 - 81 -FacilityAcquisition/Construction 15,960 27,930 3,733 - - - - Total Expenditures 5,287,757 5,496,177 6,733,873 7,554,617 7,570,239 7,851,666 281,427 Excess(Deficiency)of Revenues Over (Under)Expenditures (43,587) 144,753 (173,732) (108,720) 128,785 89,960 (38,825) OTHER FINANCING SOURCES(USES) 79-Other Resources 93,884 40,959 239,009 45,000 45,000 45,000 - 89-Other Uses (150,470) (40,959) (45,000) (45,000) (45,000) - TotalOtherFinancing (56,587) - 239,009 - - - - NETCHANGESINFUNDBALANCE (100,174) 144,753 65,277 (108,720) 128,785 89,960 (38,825) FUND BALANCE,BEGINNING 914,661 814,487 959,240 1,024,517 1,024,517 1,153,302 128,785 FUND BALANCE,ENDING 814,487 959,240 1,024,517 915,797 1,153,302 1,243,262 89,960 Assigned-Tech/FF&E Replacemt - - 125,000 125,000 125,000 - Assigned-Uniforms/Equip Rep. - - 5,000 11,350 11,350 - Assigned-Facility Maintenance/FFE - - - - - - FUND BALANCE,UNASSIGNED $ 814,487 $ 959,240 $ 1,024,517 $ 785,797 $ 1,016,952 $ 1,106,912 $ 89,960 77 FINANCIAL SECTION WESTLAKE ACADEMY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GENERAL FUND For the Year Ending August 31, 2016 Revenue & Expenditure Comparison 9 8 $7.70 $7.57 $7.94 $7.85 � $6.56 $6.73 0 6 $5.24 $5.29 $5.64 $5.50 = 5 � 4 3 2 1 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 ■Total Revenues �Total Expenditures ■11 -Instructional ■12 -Resources&Media 13 -StaffDevelopment ■21 -Instructional Leadership .. ■23 -School Leadership ` ' ` � ■31 -Guidance&Counseling � " 33 -Health Services 35 -Food Services 36 -CoCurricular/Extra.Activities 41 -Administrative 51 -Maintenance&Operations 52 -Security and Monitoring Services , 53 -Data Processing 61 -Community Services 51 - Maintenance& Operations �1 -Debt Service 12� 81 -Facility Acquisition/Construction 78 FINANCIAL SECTION WESTLAKE ACADEMY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GENERAL FUND For the Year Ending August 31, 2016 Adopted FY 15/16 197 198 199 Total Transportation/ Athletic General General Parking Fund Activities Fund Fund FY 15/16 FY 15/16 FY 15/16 FY 15/16 REVENUES Local Revenues $ 41,225 $ 81,150 $ 1,526,345 $ 1,648,720 State Program Revenues - - 6,292,906 6,292,906 Total Revenues 41,225 81,150 7,819,251 7,941,626 EXPENDITURES(BY FUNCTION) 11 -Instructional 18,890 - 4,561,011 4,579,901 12 -Resources&Media - - 74,801 74,801 13 -Staff Development - - 134,590 134,590 21 -Instructional Leadership - - 264,259 264,259 23 -School Leadership - - 778,866 778,866 31 -Guidance&Counseling - - 205,230 205,230 33 -Health Services - - 66,617 66,617 35 -Food Services - - - - 36 -CoCurricular/ExtracurricularActivities 23,621 110,902 12,251 146,774 41 -Administrative - - 306,986 306,986 51 -Maintenance&Operations - - 915,068 915,068 52 - Security and Monitoring Services 5,695 5,695 53 -Data Processing - - 169,678 169,678 61 -Community Services - - 112,638 112,638 71 -Debt Service - - 90,565 90,565 81 -FacilityAcquisition/Construction - - - - Total Expenditures 42,510 110,902 7,698,254 7,851,667 Excess(Deficiency)of Revenues Over(Under)Expenditures (1,285) (29,752) 120,997 89,959 OTHER FINANCING SOURCES(USES) 79 -Other Resources - 45,000 - 45,000 89 -Other Uses - - (45,000) (45,000) Total Other Financing Sources(Uses) - 45,000 (45,000) - NET CHANGES IN FUND BALANCE (1,285) 15,248 75,997 89,959 FUND BALANCE,BEGINNING 52,052 69,362 1,031,888 1,153,302 FUND BALANCE,ENDING 50,767 84,610 1,107,885 1,243,262 Assigned-Technology/FF&E Replacement - - 125,000 125,000 Assigned-Uniform/Equipment Replacement - 11,350 - 11,350 Assigned-Facility Maintenance/FFE - - - - ENDING FUND BALANCE(UNASSIGNED) $ 50,767 $ 73,260 $ 982,885 $ 1,106,912 79 FINANCIAL SECTION WESTLAKE ACADEMY SCHEDULE OF EXPENDITURES BY FUNCTION &OBJECT CODE GENERAL FUND For the Year Ending August 31, 2016 Adopted Estimated Adopted Variance Audited Audited Audited Budget Budget Budget Estimated to EXPENDITURES FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 14/15 FY 15/16 Adopted 11 Instructional 6100 Payroll $2,260,355 $3,040,837 $3,398,381 $3,895,179 $3,957,679 $4,172,381 $ 214,702 6200ContractedServices 53,085 80,430 97,088 94,320 99,620 51,220 (48,400) 6300 Supplies&Materials 135,772 120,569 477,541 484,772 245,766 303,650 57,884 64000therOperating 44,042 36,932 44,942 35,900 69,400 52,650 (16,750) Totallnstructional 2,493,253 3,278,768 4,017,952 4,510,171 4,372,465 4,579,901 207,436 12 Resource&Media 6100 Payroll 63,904 52,051 50,006 53,502 54,502 62,051 7,549 6200ContractedServices 1,640 1,575 1,325 1,450 2,650 2,650 - 6300Supplies&Materials 7,840 3,234 5,221 9,500 9,500 8,300 (1,200) 64000therOperating 15 924 - 1,800 1,800 1,800 - Total Resource&Media 73,398 57,784 56,552 66,252 68,452 74,801 6,349 135taff Development 6100 Payrol I - - - - - - - 6200ContractedServices 3,200 16,563 5,122 12,000 12,000 15,000 3,000 6300Supplies&Materials 708 - - - 800 5,500 4,700 64000therOperating 45,444 72,521 70,371 92,089 147,285 114,090 (33,195) Total Staff Development 49,351 89,084 75,493 104,089 160,085 134,590 (25,495) 211nstructional Leadership 6100 Payroll 120,319 91,108 159,279 207,512 212,512 257,359 44,847 6200ContractedServices - - - - - - - 6300Supplies&Materials - 350 140 200 2,150 500 (1,650) 64000therOperating 1,476 2,507 5,697 5,400 10,575 6,400 (4,175) Total Instructional Leadership 121,795 93,965 165,116 213,112 225,237 264,259 39,022 23 School Leadership 6100 Payroll 267,996 322,214 531,557 599,038 613,038 748,466 135,428 6200ContractedServices 23,560 - 413 - 175 400 225 63005upplies&Materials 437 700 5,546 3,000 5,000 2,500 (2,500) 64000therOperating 2,333 9,779 14,654 4,000 19,800 27,500 7,700 Total School Leadership 294,326 332,693 552,170 606,038 638,013 778,866 140,853 31 Guidance&Counseling 6100Payroll 128,157 177,605 179,572 160,816 160,816 144,355 (16,461) 6200ContractedServices 32,461 56,654 93,230 73,520 110,735 47,575 (63,160) 63005upplies&Materials 4,276 3,701 2,903 4,748 4,818 5,900 1,082 64000therOperating 351 3,831 6,629 7,454 3,710 7,400 3,690 Total Guidance&Counseling 165,245 241,791 282,334 246,538 280,079 205,230 (74,849) 80 FINANCIAL SECTION WESTLAKE ACADEMY SCHEDULE OF EXPENDITURES BY FUNCTION &OBJECT CODE GENERAL FUND For the Year Ending August 31, 2016 Adopted Estimated Adopted Variance Audited Audited Audited Budget Budget Budget Estimated to EXPENDITURES FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 14/15 FY 15/16 Adopted 33 Health Services 6100Payroll $ 51,340 $ 57,395 $ 60,659 $ 64,210 $ 64,710 $ 62,117 $ (2,593) 6200ContractedServices - 145 145 1,000 1,375 1,500 125 6300 Supplies&Materials 1,595 667 1,086 3,500 3,500 3,000 (500) 64000therOperating 578 - - - - - - Total Health Services 53,513 58,208 61,890 68,710 69,585 66,617 (2,968) 35 Food Services 6300 Supplies&Materials 624 - - 500 - - - Total Food Services 624 - - 500 - - - 36 CoCurricular Activities 6100 Payroll 56,789 32,690 54,755 58,108 59,002 59,533 531 6200ContractedServices 22,156 22,352 21,611 33,780 27,435 29,600 2,165 6300 Supplies&Materials 16,838 28,319 23,592 22,720 30,770 34,315 3,545 64000therOperating 7,348 12,702 21,882 24,647 22,254 23,326 1,072 Total CoCurricularActivities 103,131 96,063 121,840 139,255 139,461 146,774 7,313 41 Administrative 6100 Payroll 125,468 128,828 145,799 97,202 97,203 38,336 (58,867) 6200 Co ntracte d Se rvi ce s 447,817 158,769 159,232 162,494 175,744 177,200 1,456 6300Supplies&Materials 7,869 9,963 16,338 11,750 19,750 11,750 (8,000) 64000therOperating 73,995 60,750 58,499 72,389 61,295 79,700 18,405 Total Administrative 655,149 358,311 379,868 343,835 353,992 306,986 (47,006) 51 Maintenance&Operations 6100 Payroll 55,757 83,332 94,734 113,898 114,897 121,168 6,271 6200 Contracted Services 417,338 443,099 518,512 642,308 652,305 600,200 (52,105) 6300 Supplies&Materials 57,131 35,490 60,415 89,700 92,725 87,700 (5,025) 64000therOperating 54,665 52,121 59,706 110,189 90,640 106,000 15,360 Total Maintenance&Operations 584,891 614,041 733,367 956,095 950,567 915,068 (35,499) 52 Security&Monitoring Services 6200ContractedServices 4,243 - - - 700 5,695 4,995 Total Security&Monitoring Services 4,243 - - - 700 5,695 4,995 53 Data Processing 6100 Payroll 144,800 143,159 151,803 72,715 78,715 128,703 49,988 6200Contracted5ervices 4,243 3,768 13,359 11,500 11,500 15,100 3,600 6300Supplies&Materials 14,746 12,455 11,074 15,000 15,000 20,000 5,000 64000therOperating 260 1,313 827 5,800 5,800 5,875 75 Total Data Processing 164,049 160,695 177,063 105,015 111,015 169,678 58,663 81 FINANCIAL SECTION WESTLAKE ACADEMY SCHEDULE OF EXPENDITURES BY FUNCTION &OBJECT CODE GENERAL FUND For the Year Ending August 31, 2016 Adopted Estimated Adopted Variance Audited Audited Audited Budget Budget Budget Estimated to EXPENDITURES FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 14/15 FY 15/16 Adopted 61 Community Services 6100 Payroll 76,880 86,844 101,834 109,024 110,024 112,638 2,614 64000therOperating - 4,661 1,800 - - - Total CommunityService 76,880 86,844 106,495 110,824 110,024 112,638 2,614 71 Debt Service 6500DebtService - - 3,733 84,186 90,565 90,565 - Total DebtService - - 3,733 84,186 90,565 90,565 - 81 Facility Acquisition/Construction 6200 Contracted Services 15,960 27,930 - - - - - Total FacilityAcquisition/Construction 15,960 27,930 - - - - - Total Expenditure $4,851,565 $5,496,177 $6,733,873 $7,554,620 $7,570,240 $7,851,667 $ 281,427 Adopted Estimated Adopted Variance Audited Audited Audited Budget Budget Budget to FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 14/15 FY 15/16 Adopted EXPENDITURES BY OBJECT CODE 61XX-Payroll&Related Items $3,351,764 $4,216,063 $4,928,379 $5,431,204 $5,523,098 $5,907,107 $ 384,009 62XX-Contracted Services 1,021,460 811,286 910,037 1,032,372 1,094,239 946,140 (148,099) 63XX-Supplies&Materials 247,835 215,448 603,856 645,390 429,779 483,115 53,336 64XX-OtherOperating 230,507 253,380 287,868 361,468 432,559 424,741 � (7,819) 65XX-Debt Service - - 3,733 84,186 90,565 90,565 - Total Expenditures $4,851,565 $5,496,177 $6,733,873 $7,554,620 $7,570,240 $7,851,667 $ 281,427 EXPENDITURES BY OBJECT CODE 62XX-Contracted Services r'�� a'"° 63XX-Supplies& ''� Materials 65XX-Debt Service 64XX-Other Operating 82 FINANCIAL SECTION WESTLAKE ACADEMY REVENUE AND EXPENDITURE COMPARISON GENERAL FUND Fiscal Year 03/04 through 15/16 � ' ' • � FY 03/04 Audited $ 1,094,608 $ 1,068,857 $ 25,751 FY 04/05 Audited � 1,831,898 67% 1,612,198 51% 219,700 FY 05/06 Audited 2,407,526 31% 2�211,g9� 37% 195,629 FY 06/07 Audited 2,879,531 20% 2,615,511 18% 264,020 FY 07/08 Audited 3,168,968 10% 3,226,254 23% (57,286) FY 08/09 Audited 3,661,645 16% 3,709,086 15% (47,441) FY 09/10 Audited 4,280,723 17°/a 3,917,886 6% 362,837 FY 10/11 Audited 4,608,573 8% � 4,518,107 15% � 90,466 FY 11/12 Audited 5,244,170 14% 5,287,757 17% (43,587) FY 12/13 Audited 5,640,930 -14% � 5,496,177 -18% � 144,753 FY 13/14 Audited 6,560,141 25% 6,733,873 27% (173,732) FY 14/15 Estimated 7,699,024 17% � 7,570,239 12% � 128,785 FY 15/16 Proposed 7,941,626 3% 7,851,666 4°/a 89,960 Revenue & Expenditure Comparison $9 $g e „� o � m � $7 � u+ �^, n � � � m +�* $6 v�i, � N � � O C {/F � _ $5 � N �i � N � � N � � � $4 ao �? � 'i' `i' � .-i a m '�' � $3 �q i. v> n M M M ih pp rl �"� y�} Vf Op ry ryj M �2 p'� tO �* '� � N � �1 $0 : FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 Adoptetl Estimatetl Adoptetl Revenues Expenditures 83 FINANCIAL SECTION WESTLAKE ACADEMY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GENERALFUND- 199 For the Year Ending August 31,2016 Adopted Estimated Adopted Variance Audited Audited Audited Budget Budget eudget Estimatedto FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 14/15 FY 15/16 Adopted REVENUES Local Revenues $ 781,573 $ 899,972 $1,272,381 $1,553,805 $1,518,865 $1,526,345 $ 7,480 State Program Revenues 4,362,921 4,648,649 5,190,308 5,782,092 6,070,659 6,294,943 224,284 Total Revenues 5,144,494 5,548,621 6,462,689 7,335,897 7,589,524 7,821,288 231,764 EXPENDITURES(BY FUNCTION) 11 -Instructional 2,824,665 3,262,506 4,020,270 4,493,610 4,354,204 4,561,011 206,807 12 -Resources&Media 74,628 57,784 56,553 66,252 68,452 74,801 6,349 13 -StaffDevelopment 9,732 89,084 75,494 104,089 160,085 134,590 (25,495) 21 -Instructional Leadership 134,839 93,965 165,115 213,112 225,237 264,259 39,022 23 -School Leadership 341,469 332,693 552,170 606,038 638,013 778,866 140,853 31 -Guidance&Counseling 229,067 241,791 282,334 246,538 280,079 205,230 (74,849) 33 -Health Services 60,917 58,208 61,889 68,710 69,585 66,617 (2,968) 35 -Food Services 11,517 - - 500 - - - 36 -CoCurricular/ExtracurricularActivities 27,598 3,157 7,362 8,344 13,236 12,251 (985) 41 -Administrative 655,149 358,311 379,867 343,836 353,992 306,986 (47,006) 51 -Maintenance&Operations 584,891 614,041 733,367 956,091 950,567 915,068 (35,499) 52 -Security&Monitoring Services - 700 5,695 4,995 53 -Data Processing 164,049 160,695 177,063 105,015 111,015 169,678 58,663 61 -Community Services 76,880 86,844 106,497 110,824 110,024 112,638 2,614 71 -Debt Service - - 3,733 84,186 90,565 90,565 - 81 -Facility Acquisition/Construction 15,960 27,930 - - - - - Total Expenditures 5,211,363 5,387,009 6,621,714 7,407,145 7,425,754 7,698,254 272,500 Excess(Deficiency)of Revenues Over (66,869) 161,612 (159,025) (71,248) 163,770 123,034 (40,736) OTHER FINANCING SOURCES(USES) 79-Capital Lease Proceeds 256,267 79-Transfersln 67,760 - - - - - 89-TransferOut(Use) (26,124) - (75,000) (45,000) (45,000) (45,000) - Total Other Financing Sources(Uses) 41,636 - 181,267 (45,000) (45,000) (45,000) - OTHER FINANCING SOURCES(USES) 79-Extraordinary Item - 40,959 - - - - 89-Extraordinary Item (124,346) (40,959) - - - - Total Other Financing Sources(Uses) (124,346) - - - - - NETCHANGES IN FUND BALANCE (149,579) 161,612 22,242 (116,248) 118,770 78,034 (40,736) FUND BALANCE,BEGINNING 878,843 729,264 890,876 913,118 913,118 1,031,888 118,770 FUND BALANCE,ENDING 729,264 890,876 913,118 796,870 1,031,888 1,109,922 78,034 Assigned-Technology/FF&E Replacement - - - 125,000 125,000 125,000 - Assigned-Uniform/Equipment Replacement - - - - - - - ENDING FUND BALANCE(UNASSIGNED) $ 729,264 $ 890,876 $ 913,118 $ 671,870 $ 906,888 $ 984,922 $ 78,034 84 FINANCIAL SECTION WESTLAKE ACADEMY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE ATHLETIC ACTIVITIES FUND- 198 For the Year Ending August 31,2016 Adopted Estimated Adopted Variance Audited Audited Audited Budget Budget Budget Estimated to FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 14/15 FY 15/16 Adopted REVEN U ES Local Revenues $ 49,821 $ 56,298 $ 60,563 $ 64,000 $ 69,500 $ 81,150 $ 14,179 State Revenue - - - - - - - Total Revenues 49,821 56,298 60,563 64,000 69,500 81,150 14,179 EXPENDITURES(BY FUNCTION) 11 -Instructional - 1,464 - - - - - 12 -Resources&Media - - - - - - - 13 -Staff Development - - - - - - - 21 -Instructional Leadership - - - - - - - 23 -School Leadership - - - - - - - 31 -Guidance&Counseling - - - - - - - 33 -Health Services - - - - - - - 35 -Food Services - - - - - - - 36 -CoCurricular/ExtracurricularActivities 58,553 85,309 100,383 110,613 104,716 110,902 6,186 41 -Administrative - - - - - - - 51 -Maintenance&Operations - - - - - - - 52 -Security and Monitoring Services 53 -Data Processing - - - - - - - 61 -Community Services - - - - - - - 71 -Debt Service - - - - - - - 81 -FacilityAcquisition/Construction - - - - - - - Total Expenditures 58,553 86,773 100,383 110,613 104,716 110,902 6,186 Excess(Deficiency)of Revenues Over (8,732) (30,475) (39,820) (46,613) (35,216) (29,752) 5,464 OTHER FINANCING SOURCES(USES) 79-Other Resources 26,124 - 75,000 45,000 45,000 45,000 - 89-Other Uses - - - - - - - Total Other Financing5ources(Uses) 26,124 - 75,000 45,000 45,000 45,000 - NETCHANGES IN FUND BALANCE 17,392 (30,475) 35,180 (1,613) 9,784 15,248 5,464 FUND BALANCE,BEGINNING 37,481 54,873 24,398 59,578 59,578 69,362 9,784 FUND BALANCE,ENDING 54,873 24,398 59,578 57,965 69,362 84,610 15,248 Assigned-Technology/FF&E Replacement - - - - - - - Assigned-Uniform/Equipment Replacement - - - 5,000 11,350 11,350 - Assigned-Facility Maintenance/FFE - - - - - - - ENDING FUND BALANCE(UNASSIGNED) $ 54,873 $ 24,398 $ 59,578 $ 52,965 $ 58,012 $ 73,260 $ 15,248 85 FINANCIAL SECTION WESTLAKE ACADEMY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE TRANSPORTATION/PARKING FUND- 197 For the Year Ending August 31, 2016 Adopted Estimated Adopted Variance Audited Audited Audited Budget Budget Budget Estimated to FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 14/15 FY 15/16 Adopted REVENUES Local Revenues $ 49,855 $ 36,010 $ 36,890 $ 46,000 $ 40,000 $ 41,225 $ 1,225 State Revenues - - - - - - - Total Revenues 49,855 36,010 36,890 46,000 40,000 41,225 1,225 EXPENDITURES(BY FUNCTION) 11 -Instructional 862 14,798 14,940 16,561 18,261 18,890 629 12 -Resources&Media - - - - - - - 13 -Staff Development - - - - - - - 21 -Instructional Leadership - - - - - - - 23 -School Leadership - - - - - - - 31 -Guidance&Counseling - - - - - - - 33 -Health Services - - - - - - - 35 -Food Services - - - - - - - 36 -CoCurricular/ExtracurricularActivities 16,979 7,597 14,093 20,299 21,509 23,621 2,112 41 -Administrative - - - - - - - 51 -Maintenance&Operations - - - - - - - 52 -Security and Monitoring Services 53 -Data Processing - - - - - - - 61 -Community Services - - - - - - - 71 -Debt Service - - - - - - - 81 -FacilityAcquisition/Construction - - - - - - - Total Expenditures 17,841 22,395 29,033 36,860 39,770 42,510 2,740 (Under)Expenditures 32,014 13,615 7,857 9,140 230 (1,285) (1,515) OTHER FINANCING SOURCES(USES) 79-Other Resources - - - - - - - 89-Other Uses - - - - - - - TotalOtherFinancingSources(Uses) - - - - - - - NETCHANGESINFUNDBALANCE 32,014 13,615 7,857 9,140 230 (1,285) (1,515) FUND BALANCE,BEGINNING (1,664) 30,350 43,965 51,822 51,822 52,052 230 FUND BALANCE,ENDING 30,350 43,965 51,822 60,962 52,052 50,767 (1,285) Assigned-Parking - - - - - - - Assigned-Transportation - - - - - - - ENDING FUND BALANCE(UNASSIGNED) $ 30,350 $ 43,965 $ 51,822 $ 60,962 $ 52,052 $ 50,767 $ (1,285) 86 FINANCIAL SECTION WESTLAKE ACADEMY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE ALL SPECIAL REVENUE FUNDS For the Year Ending August 31, 2016 Adopted Estimated Adopted Variance Audited Audited Audited Budget Budget Budget Estimated to FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 14/15 FY 15/16 Adopted REVENUES Local Program Revenues $ 349,041 $ 165,760 $ 267,142 $ 47,500 $ 504,333 $ 105,500 $ (398,833) State Program Revenues 11,934 47,891 79,333 - 33,589 142,787 109,198 Federal Program Revenues 147,131 81,958 80,103 73,896 162,270 90,000 (72,270) Total Revenues 508,106 295,609 426,578 121,396 700,191 338,287 (361,904) EXPENDITURES(BY FUNCTION) 11 -Instructional 344,845 179,349 246,713 111,769 352,691 326,287 (26,404) 12 -Resources&Media - - 1,332 - - - - 13 -Staff Development 79,425 41,358 72,863 25,500 60,175 63,000 2,825 21-Instructional Leadership 1,122 - - 24,856 35,500 - (35,500) 23-School Leadership 6,046 8,345 44,905 54,582 86,485 23,000 (63,485) 31 -Guidance&Counseling 3,352 3,109 - - 90 - (90) 33 -Health Services - - - - - - - 35 -Food Services - - - - - - - 36 -ExtracurricularActivities 28,841 29,073 30,421 32,000 25,000 25,000 - 41-Administrative 20,614 5,237 9,805 - - - - 51 -Maintenance&Operations 12,022 - - - - - - 53 -Data Processing 9,537 - - - - - - 61 -Community Services - - 7,500 - - - - 71 -Debt Service - - - - - - - 81-FacilityAcquisition/Construction - - - - - - - Total Expenditures 505,804 266,471 413,538 248,707 559,941 437,287 (122,654) Excess(Deficiency)of Revenues Over (Under)Expenditures 2,302 29,138 13,040 (127,311) 140,250 (99,000) (239,250) NETCHANGESINFUNDBALANCE 2,302 29,138 13,040 (127,311) 140,250 (99,000) (239,250) FUND BALANCE,BEGINNING 2,301 4,603 33,741 46,781 46,781 187,031 140,250 FUND BALANCE,ENDING 4,603 33,741 46,781 (80,530) 187,031 88,031 (99,000) FUND BALANCE,ENDNG(Unassigned) $ 4,603 $ 33,741 $ 46,781 $ (80,530) $ 187,031 $ 88,031 $ (99,000) Adopted Estimated Adopted Variance Audited Audited Audited Budget Budget Budget Estimated to FY 11/12 FY 12/13 FY 12/13 FY 14/15 FY 14/15 FY 15/16 Adopted EXPENDITURES BY OBJECT CODE 61XX-Payroll&Related Items $ 208,957 $ 123,681 $ 270,494 $ 186,820 $ 253,730 $ 140,000 $ (113,730) 62XX-Contracted Services 46,901 53,886 48,172 31,887 58,000 28,000 (30,000) 63XX-Supplies&Materials 151,670 52,619 69,109 27,500 190,711 265,287 74,576 64XX-Other Operating 98,276 37,253 25,763 2,500 57,500 4,000 (53,500) 65XX-Debt Service - - - - - - - 87 FINANCIAL SECTION WESTLAKE ACADEMY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE ALL SPECIAL REVENUE FUNDS For the Year Ending August 31,2016 WAF WAF International Total IDEA-B Materials Campus Fund Hudson Financial Mindedness Special Formula Allotment Activity an Item Foundation Assistance Symposium Revenue 224 410 461 487 496 497 498 Funds REVENUES Local Program Revenues $ - $ 45,000 $ 50,000 $ - $ 2,500 $ 8,000 $ 105,500 State Program Revenues - 142,787 - - - - - 142,787 Federal Program Revenues 90,000 - - - - - 90,000 Total Revenues 90,000 142,787 45,000 50,000 - 2,500 8,000 338,287 EXPENDITURES(BY FUNCTION) 11 -Instructional 90,000 142,787 1,000 50,000 40,000 2,500 - 326,287 13 -StaffDevelopment - - - 57,000 - 6,000 63,000 21- Instructional Leadership - 23 -School Leadership - - - 23,000 - - 23,000 36 -Co-CurricularActivities - 25,000 - - - - 25,000 Total Expenditures 90,000 142,787 26,000 50,000 120,000 2,500 6,000 437,287 Excess(Deficiency)of Revenues Over(Under)Expenditures - - 19,000 - (120,000) - 2,000 (99,000) NETCHANGES IN FUND BALANCE - - 19,000 - (120,000) - 2,000 (99,000) FUND BALANCE,BEGINNING - - 65,781 - 120,000 - 1,250 187,031 FUND BALANCE,ENDNG $ - $ 84,781 $ - $ - $ - $ 3,250 $ 88,031 88 FINANCIAL SECTION WESTLAKE ACADEMY SCHEDULE OF EXPENDITURES ALL SPECIAL REVENUE FUNDS For the Year Ending August 31, 2016 Variance Estimated Adopted Estimated FY 14/15 FY 15/16 to Adopted Federal Grants through TEA Fund 224-IDEA B $ 162,270 $ 90,000 $ (72,270) Sub-total Federal Grants 162,270 90,000 (72,270) State Grants throu�h TEA Fund 410-Material Allotment Disbursment 33,589 142,787 109,198 Sub-total State Grants 33,589 142,787 109,198 Local Activities Fund 461-Local Campus Activity 26,000 26,000 - Fund 484-Local Grants(HOC&WAF) 18,000 - (18,000) Fund 498-International Mindedness Syposium 6,000 6,000 Sub-total Local Activities 44,000 32,000 (12,000) Hudson Foundation Grants Fund 481- Hudson Foundation Curriculum Development 3,460 - (3,460) Fund 485-MYP Principal&Discretionary Funds 100,000 - (100,000) Fund 493-Salary&Curriculum Support 55,000 - (55,000) Fund 496-Hudson Foundation 55,000 120,000 65,000 Sub-total Hudson Foundation Grants 213,460 120,000 (93,460) Westlake Academv Foundation(WAF)Grants Fund 494-Science Department 27,850 - (27,850) Fund 495-Fund an Item 77,773 50,000 (27,773) Fund 497-Financial Assistance 1,000 2,500 1,500 Sub-total Foundation Grants 106,623 52,500 (54,123) GrantTotal-All Special Revenue Funds Expenditures $ 559,941 $ 437,287 $ (122,654) 89 90 � � �� ► � � � � � _ � �� .� � � � �� '"' � � cr,� ,� �' , � �� 3C � Q.� � `� � �� '� '` �� 1��'�i��" Q s �'e�le�f�� y c�,,;?� ' ��r �' �� , � � � � ��,��a� ��r�i� CL� � �' ��-� �' �� / � / � � ��-- �� : � ' • ' • �� '��1�� -�,�� INFORMATIONAL SECTION ACADEMIC PROGRAMS Westlake Academy is authorized by the International Baccalaureate (IB) to offer: ■ The IB Primary Years Programme (PYP)—grades K-5 ■ The IB Middle Years Programme (MYP)—grades 6-10 ■ The IB Diploma Programme (DP)—grades 11-12 These three linked curricula form the IB Continuum. The PYP gives students an excellent foundation for the IB's other programmes, providing the essential elements that young students need to equip themselves for successful lives, both now and in the future. The MYP builds on the knowledge, skills, and attitudes developed by the Primary Years Programme and prepares students for the demanding requirements of the Diploma Programme. All three programmes are philosophically aligned, each centered on developing attributes of the IB learner profile, described below. The programmes are consistent in their pedagogical approach. All IB programmes are flexible, enabling teachers to respond to local requirements. The Academy prepares students for all standardized testing required by the State of Texas, but endeavors to do so in a much more transdisciplinary manner and without"teaching to the test." When schools implement the full continuum of IB programmes, students realize several benefits including: ■ Improved standardized test scores. ■ An understanding and appreciation of the world's cultures and histories among their students. ■ A sense of community and shared goals among parents, students,teachers, and administrators. ■ Graduates complete college faster than their peers, feel more prepared for college-level coursework involving research, and are better able to cope with demanding workloads and time-management challenges COST FOR MAINTAINING THE IB PROGRAMME IB programme related costs in FY 15/16 total $26,000, and are comprised of the annual fees described below: Programme PYP MYP DP Total Annual Fees $7,250 �i $8,500 �i $10,200 � $26,000 � IB LEARNER PROFILE The International Baccalaureate learner profile describes a broad range of human capacities and responsibilities that go beyond academic success. These traits imply a commitment to help all members of the school community learn to respect themselves, others and the world around them. IB learners strive to be: • Inquirers-They develop their natural curiosity.They acquire the skills necessary to conduct inquiry and research and show independence in learning.They actively enjoy learning and this love of learning will be sustained throughout their lives. 93 INFORMATIDNAL SECTION • Knowledgeable-They explore concepts, ideas and issues that have local and global significance. In so doing,they acquire in-depth knowledge and develop understanding across a broad and balanced range of disciplines. • Thinkers-They exercise initiative in applying thinking skills critically and creatively to recognize and approach complex problems and make reasoned, ethical decisions. • Communicators-They understand and express ideas and information confidently and creatively in more than one language and in a variety of modes of communication.They work effectively and willingly in collaboration with others. • Principled-They act with integrity and honesty,with a strong sense of fairness,justice and respect for the dignity of the individual, groups and communities.They take responsibility for their own actions and the consequences that accompany them. • Open-minded -They understand and appreciate their own cultures and personal histories, and are open to the perspectives,values and traditions of other individuals and communities.They are accustomed to seeking and evaluating a range of points of view, and are willing to grow from the experience. • Caring-They show empathy, compassion and respect towards the needs and feelings of others.They have a personal commitment to service, and act to make a positive difference to the lives of others and to the environment. • Risk-takers-They approach unfamiliar situations and uncertainty with courage and forethought, and have the independence of spirit to explore new roles, ideas and strategies.They are brave and articulate in defending their beliefs. • Balanced-They understand the importance of intellectual, physical and emotional balance to achieve personal well-being for themselves and others. • Reflective-They give thoughtful consideration to their own learning and experience.They are able to assess and understand their strengths and limitations in order to support their learning and personal development. �a ..� �.: , -�, r �� j��` �ki�, I � I 4':.�.�� r 4 t , I p -- + (+�'� . �_ ��,. 4 .II�. '11!�Iht��1�" {t , �1Sp'! �.. � i.'. i t �n';I,;r ' .T,M� . s ��Y � ��'��` .!wc_•�.M. . . � �. � I 1 �,' II� i� __�� r ..^�',,',`�, a � yl,3ti � �� . �� +�� _ , � :� �_ � �,;, �--�, � �":; - � � , . _ 1`� -�� l,- ' � � . p� u - ...r � �i �� ;� � � � �� . . '� �s � � �� - y� ` �► _,,� � �. . ,'' �,�'�� ,� � P = �.- �f ,��ii�, � � `-Q _� �� ° _ �-� ._,�� :.�>�: � �. � .�I-..�A � ��; .� �'�`' � - , - �� . � 94 INFORMATIONAL SECTION PRIMARY YEARS PROGRAMME � �, .�a��'�� .,l,'� �F 1Y � !�.�� • �+�f�-1(7 i,i, �/°�i�.' ._�� A�GLlAf,� i,r ��' - C) ` ��,q'��' p,Cl101� �0�, O�J�, � � �V� �Q��ES Tfl TE�C�J� �� _ �� e' C a ''- x a � �� a w c� �i - ,� � C � �= o � a c �: c� - � ,u � = � � �aA \�a� �� -. � `�2�, �°`�Cr��s�a�-�� ,�� , � ��. - �XHrB�TIfl� '�, `'`, �(`J`��a _�;)4�; �t''t� ARTS �' �fir . , „ ;��. j,�'�j��{($ . 4-t(7VJ ii'; . - ' * � i . The PYP is a curriculum framework for children aged 3-12 that prepares students for the intellectual challenges of further education and their future careers,focusing on the development of the whole child as an inquirer, both in the classroom and in the world outside. By emphasizing critical thinking and fostering the development of universal human values,the PYP is a powerful means of going beyond classroom learning, asking students to use their knowledge and skills to solve real-world problems. Students become responsible for their own learning and must work collaboratively with peers, building on each member's strength. The five essential elements of the PYP are: • Knowledge, which is both disciplinary, represented by traditional subject areas (language, math, science, social studies, arts, PSPE) and transdisciplinary • Concepts, which students explore through structured inquiry in order to develop coherent, in-depth understanding, and which have relevance both within and beyond subject areas • Skills,which are the broad capabilities students develop and apply during learning and in life beyond the classroom • Attitudes, which contribute to international-mindedness and the wellbeing of individuals and learning communities, and connect directly to the IB learner profile • Action, which is an expectation in the PYP that successful inquiry leads to responsible,thoughtful and appropriate action. 95 INFORMATIONAL SECTION MIDDLE YEARS PROGRAMME � � r „ �� — � � � ..1� � � . . � • C.�1�t`,1 ° �E��'�,C• . � � SC f a �oP��c,TO TEA�'y�NG C •� {� �� ~ e � r * y � F— ' w � ' V X IF— .F. Q � � . H� � � � O� _ , � �,{� �� 4. �� o'��NfST��-�� @ �r � �'�°1�c� . P��a . , — � . � The MYP is a challenging framework that encourages students to make practical connections between their studies and the real world. The programme aims to develop active learners and internationally minded young people who can empathize with others and pursue lives of purpose and meaning. The programme empowers students to inquire into a wide range of issues and ideas of significance locally, nationally and globally.The result is young people who are creative, critical and reflective thinkers. The Years Programme (MYP) comprises eight subject groups: •:• Language acquisition •:� Language and literature .° Individuals and societies •:• Sciences :• Mathematics •:• Arts •:• Design •:• Physical and health education The MYP requires at least 50 hours of teaching time for each subject group in each year of the programme. In years 4 and 5, students have the option to take courses from six of the eight subject groups within certain limits, to provide greater flexibility in meeting local requirements and individual student learning needs. Each year, students in the MYP also engage in at least one collaboratively planned interdisciplinary unit that involves at least two subject groups. MYP students also complete a long-term project,where they decide what they want to learn about, identify what they already know, discovering what they will need to know to complete the project, and create a proposal or criteria for completing it. 96 INFORMATIONAL SECTION DIPLOMA PROGRAMME � r � r • ! � f . � . ` ��'___--- �i' :_ �Q��pG�E . fi-f- � ��'�- Q��e,��s 7a T�.��/ ��p� , � � �� ',i� �.7 � � � � � � . 9 � . �:; A`°�i'p �,�� ,:.I`� � ��H�S TD L�'� ��. - -r�, , ��T�� L= ��Y AC�IVI�� ,, � . � � ` � A The International Baccalaureate Diploma Programme (DP) is a challenging two-year curriculum for students aged 16 to 19.The Diploma Programme is recognized and highly regarded by the world's leading universities, and evidence suggests that higher rates of DP students go on to university and higher education study than non- IB students. Through the DP, schools are able to develop students who: • Have excellent breadth and depth of knowledge • Flourish physically, intellectually, emotionally and ethically • Study at least two languages • Excel in traditional academic subjects • Explore the nature of knowledge through the programme's unique Theory of Knowledge course. The DP curriculum is made up of six subject groups and the DP core, comprising Theory of Knowledge (TOK), Creativity,Activity, Service (CAS) and the Extended Essay. Through the DP core, students reflect on the nature of knowledge, complete independent research and undertake a project that often involves community service. 97 INFORMATIONAL SECTION DIPLOMA PROGRAMME MODEL DP students study six subject groups, including language acquisition, language and literature, individuals and societies, mathematics, the arts, and sciences. Normally three subjects are studied at a higher level (courses representing 240 teaching hours) and the remaining three subjects are studied at a standard level (courses representing 150 teaching hours). Made up of three required components,the DP core aims to broaden students' educational experience and challenge them to apply their knowledge and skills. The three core elements include: • Extended Essay-The extended essay offers the student the opportunity to investigate a topic of individual interest, and acquaints students with the independent research and writing skills expected at university. • Theory of Knowledge(TOK) -The TOK course is plays a special role in the Diploma Programme by providing an opportunity for students to reflect on the nature of knowledge, and on how we know what we claim to know. As a thoughtful and purposeful inquiry into different ways of knowing, and into different kinds of knowledge,TOK is composed almost entirely of questions. The most central of these is "How do we know?",while other questions include: o What counts as evidence for X? o How do we judge which is the best model of Y? o What does theory Z mean in the real world? Through discussions of these and other questions, students gain greater awareness of their personal and ideological assumptions, as well as developing an appreciation of the diversity and richness of cultural perspectives. • Creativity,Action, Service(CAS)- Participation in the school's CAS programme encourages students to be involved in artistic pursuits, sports and community service work, fostering student awareness and appreciation of life outside the academic arena. Students are assessed both internally by WA instructors and externally by IB examiners in ways that measure individual performance against stated objectives for each subject. • Internal assessment- In nearly all subjects at least some student assessment is carried out internally by WA teachers,who mark individual pieces of work produced as part of a course of study. Examples include oral exercises in language subjects, projects, student portfolios, class presentations, practical laboratory work, mathematical investigations and artistic performances. • External assessment-Some assessment tasks are conducted and overseen by Academy teachers but marked externally by IB examiners. Examples include world literature assignments for language A1, written tasks for language A2, essays for theory of knowledge and extended essays. Because of the greater degree of objectivity and reliability provided by the standard examination environment, externally marked examinations form the greatest share of the assessment for each subject. 98 INFORMATIONAL SECTION STUDENT ENROLLMENT Westlake Academy has added 341 students since FY 2009/10 as the result of increased demand and WA Student Enrollment planned expansions. The Academy will be able to 812 832 serve approximately 832 students in the 2015/16 630 658 697 school year. Future enrollment must be carefully 491 530 managed to ensure adequate space for primary � � � boundary residents. The Academy plans to maintain � 18 students per class in grades K-5 and 25 students in - — -- - radeS 6-12. FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 15/16 g Proposed As an open enrollment charter school, Westlake Academy has the ability to set and maintain Waiting List enrollment numbers at levels determined by the Board of Trustees. The Academy currently has over 2,400 2,000 students on a waiting list spanning 2,128 2,194 2,177 kindergarten through grade eleven. The waiting list is developed each year through a lottery process that 844 705 1'�2� � _ � allows the Academy to fill seats if student attrition � occurs and maintains a stable student population dnCl CIa5SY00111 SIZE. FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14-15 FY 15-16 Westlake Academy's student enrollment is established by two sets of boundaries. The primary boundary encompasses the Town of Westlake and allows Westlake residents automatic entry into Westlake Academy. The secondary boundaries are comprised of 31 of the surrounding school district's boundaries. While any school-age child residing within these district boundaries is allowed to attend the Academy, demand for entrance exceeding capacity may necessitate that child being placed on the waiting list. ■ Secondary Boundary Westlake Residents � � � �', ��. ��, 530 630 658 697 812 832 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 Estimated 99 INFORMATIONAL SECTION Westlake Academy's secondary boundaries are comprised of the following Independent School District boundaries: Argyle ISD, Arlington ISD, Azle ISD, Birdville ISD, Boyd ISD, Carroll ISD, Carrollton-Farmers Branch ISD, Coppell ISD, Decatur ISD, Denton ISD, Duncanville ISD, Eagle Mountain-Saginaw ISD, Fort Worth ISD, Frisco ISD, Garland ISD, Grand Prairie ISD, Grapevine-Colleyville ISD, Highland Park ISD, Hurst-Euless- Bedford ISD, Irving ISD, Keller ISD, Krum ISD, Lake Dallas ISD, Lewisville ISD, Little Elm ISD, McKinney ISD, Northwest ISD, Paradise ISD, Ponder ISD, Springtown ISD, and Weatherford ISD '�` ;z _� _ .-v_,�y— .H- - ,�� - ` ��` �.'�"-,y.t� `��. ° - _ " �, � �i'� �� .S�„ .k. .�AP � �J�� . "y,�,k� , .��'y_�y,? � �,�.*, �' ro �` � � _I��Y�J � ��. ''�� I l� 1'r!'C � . i j � � . ��.°t.- ,y,�: ` �,a{ �' ,� �,- ;� rr= '�� v ;��!:� :� .. . � �' �1�� 4tl _- _ r'L_. _.- i , ,�+ +. . . � ,, . ... .. d .. ' -_ ' . . _�� :4��. .. � �* IV• +r � =t y � ' - Y _ .._ ._ � ��Y�F ��`�+�. �t,�� •�y�.�., ��,;, T� '� �.. J�'ti.Y[�:•f71�'�f � �� i��i r� ro, � �' ��1 � � �:I , �4 �P �� - � �..f.� '.d.I�, � � ,� 'I. !� �, P �.� �fV il _ i �,.. _ , 'f."'�'r' � �i►��.. � �� . . ��k . y,� :i� 1.,� 4 9�. .1'• �,r�• � ��F . . * � ; t � +4':-''c� . ,y .�1,2 ,,. °�'� . .a ��+-._ �j, � �� : , � ��i ..�� ,�i,�,A �,�'r^. � � Y.� #� - .+i�—'� M` . � �`it . � `� �' - . � `1'� ., �' �a R _ � �, �. , '�: ,� '�' ,� �' • _.'�., i � � d ��, l�'�• � ,�+�� s ie,T � i� :'• `` !SrF,K _ �!�Y ' . f 4°`+k. wf � _�:,� , � ,� P� �� _ ��6 „' � ' a.. ..� � r,l� . _, ... �- .. �� '�Ys�. ,�,� � _:F' :a �'� �, �' � -.�',' �,^ _.-1 t P ..�.. ��V ; t• _.ri ��'°� � ^�� ` .; Y '� �';�. ,��+' .r�� k �r �' r� y'r- ,M� ��"'��'�,i�.��L�� F � � * �"',i�; .� ...�'�""'"�" '� s., - - � � ��;.,.:�. . ��'� � 100 INFORMATIONAL SECTION PERSONNEL � STAFFING The following charts break down the number of employees by job function (primary school teachers, secondary school teachers, instructional administration, etc.). Employee growth has been driven by Academy expansions as the school matured into a full K-12 campus. 100 3.00 ■Maintenance 2.00 Defined Employee Groups by FTE 1.60 75 1.60 1.60 � •e I 0.60 ■Support Staff 0.60 50 � '� Teachers 25 � � •� 0 , . � � e e � : o o � ° �+ _ ■Administrative FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 Adopted . e ° e e z � � � - M: _ Executive Principal - - - - 0.50 0.50 1.00 Primary Principal 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Secondary Principal 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Asst.Secondary Principal - - - 0.50 1.00 1.00 1.00 DP Principal 0.50 0.50 0.50 0.50 0.50 0.50 0.50 MYP Academic Dean - - - - - - 1.00 Admin Coordinator 1.00 1.00 1.00 1.00 1.00 1.00 - Dir.of Student Life - - - - - 1.00 - Dir.of Curriculum - - - - 0.50 1.00 - Student Services Coordinator - - - - - - 1.00 PYP Coordinator 0.60 0.60 0.60 1.00 1.00 1.00 1.00 MYP Coordinator 0.50 1.00 0.50 1.00 1.00 1.00 1.00 DP Coordinator 0.50 0.40 0.40 0.50 0.50 0.50 0.50 Athletic Director 0.75 - - - - - - . . � . 1 11 1 : 11 1 • 11 101 INFORMATIONAL SECTION � • � � , , Primary-K 2.00 2.00 2.00 2.00 2.00 3.00 3.00 Primary 1 1.70 2.00 2.00 2.00 2.00 3.00 3.00 Primary 2 2.00 2.00 2.00 2.00 2.00 3.00 3.00 Primary 3 2.00 2.00 3.00 2.00 3.00 3.00 3.00 Primary 4 2.00 2.00 2.00 3.00 3.00 3.00 3.00 Primary 5 2.00 3.00 2.00 2.00 3.00 3.00 3.00 Primary-PE 1.00 1.50 1.50 2.00 2.00 2.00 2.00 Primary -Reading Spec. 0.40 1.00 0.40 1.00 1.00 1.00 1.00 Primary-Art 0.90 1.00 1.00 1.00 1.00 1.50 1.50 Primary -Math - - - - 1.00 1.00 1.00 Primary-Music 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Primary-Spanish 1.20 1.00 1.60 2.00 2.00 2.00 2.00 Primary-IT - 0.40 0.40 - - - - Secondary Theater Arts - - 1.00 1.00 1.00 0.25 1.00 Secondary-Grade 6 1.80 2.00 3.00 3.00 2.00 3.00 3.00 Secondary-Art 1.00 0.85 0.90 0.90 0.90 1.40 1.40 Secondary English 3.00 3.00 3.50 3.00 3.00 4.00 4.00 Secondary-Humanities 3.10 3.00 4.00 4.00 4.25 3.75 4.50 Secondary-Economics - - - - - 1.00 1.00 Secondary-IT 0.30 0.20 1.00 - - - - Secondary-Math 2.00 2.00 3.00 3.00 3.00 5.00 5.50 Secondary-Psychology - - - - - - 0.25 Secondary-Science 3.25 3.60 3.60 3.50 3.66 3.50 4.00 Secondary-Foreign Lang. 2.00 2.60 3.00 3.34 4.34 4.34 5.16 Secondary-PE 0.72 1.50 1.50 1.50 1.50 2.00 2.00 Secondary -Reading Spec. - - 0.25 0.66 0.66 0.66 - Secondary-CAS 0.25 - - - - - - � - _ ,. .- � �. - � : � � o � � • 1• 1 1 � • Teachinglntern - - 0.75 - - - - Teaching Aides 3.70 3.66 4.50 5.87 6.07 8.00 8.00 Study Hall/Tutor - - - 1.00 1.00 1.00 - Speech - - - 0.17 0.17 - 0.50 Strings Staff 0.25 0.33 0.33 0.33 0.33 1.00 1.00 Special Education 2.00 2.00 2.00 2.00 2.00 3.00 3.50 Librarian/Aide 1.00 1.00 2.00 1.00 1.00 1.00 1.00 Counselors 2.00 3.00 3.00 3.00 3.00 2.70 2.00 N u rse 1.00 1.00 1.00 1.00 1.00 1.00 1.00 IT Tech 1.70 1.80 1.80 1.80 1.80 1.10 1.00 IT Coordinator - - - - - - 1.00 IT Integration - - - 1.00 1.00 1.00 1.00 Asst.to Head of School - - - - - - - Registra r 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Office Aide 3.00 3.00 3.00 3.00 3.00 4.10 4.00 Crossing Guards - - - - - - 0.25 Lunchroom Personnel 0.40 0.40 0.40 0.40 0.40 - - . . . . . s • � Facilities Day Porter 0.60 0.60 0.60 0.60 0.60 1.00 2.00 Facilities Technician - - 1.00 1.00 1.00 1.00 1.00 . . � . t t . , . ' . t . r rt ' � 102 INFORMATIONAL SECTION PERFORMANCE & BENCHMARK DATA In FY 2014/15, Westlake Academy was ranked by the Washington Post as one of the best public high schools in America. This recognition marks the fourth year in which the Academy has been recognized by national ranking organizations due to rigorous and extraordinary academic performance. The State of Texas is currently phasing in the use of the State of Texas Academic Achievement and Readiness (STAAR) test to assess student aptitude in reading, writing, math, science, and social studies as required under Texas education standards. The STAAR exam has increased rigor over previous testing standards and complies with the requirements of the No Child Left Behind Act (NCLB). The following tables display student standardized test performance for the last two years. Levelll Levellll Levelll Grade Comparison Satisfactory Advanced Satisfactory Phase-In 2 Level Year Phase-In 1 (Effective 2015-16) 2013-2014 94% 13% N/A 5 2014-2015 87% 20% 83% 2013-2014 87% 26% N/A 8 2014-2015 97% 28% 88% 9 EOC 2013-2014 100% 34% N/A Biology 2014-2015 99% 38% 88% Level I I Level I I Grade Comparison Satisfactory Level III Satisfactory Phase-In 2 Level Year Phase-In 1 Advanced (Effective 2015-16) J 2013-2014 93% 11% N/A i 4 2014-2015 93% 20% I 83% 2013-2014 94% 26% I N/A 7 iu 2014-2015 97% 39% � 93% � � • Level I I Level I I Grade Comparison Satisfactory Level III Satisfactory Phase-In 2 Level Year Phase-In 1 Advanced (Effective 2015-16) 2013-2014 97% 35% N/A I 9—English I 2014-2015 100% 60% I 100% 2013-2014 95% 9% N/A 10—English II 2014-2015 99% 24% 99% 103 INFORMATIONAL SECTION � Level I I Level I I Grade Comparison Satisfactory Level III Satisfactory Phase-In 2 Level Year Phase-In 1 Advanced (Effective 2015-16) 2013-2014 80% 9% N/A 8 2014-2015 99% 31% 89.5% 11 EOC 2013-2014 98% 22% � N/A U.S. History 2014-2015 100% 62% I 100% • • � • • Level I I Level I I Grade Comparison Satisfactory Level III Satisfactory Phase-In 2 Level Year Phase-In 1 Advanced (Effective 2015-16) 8 EOC 2013-2014 87% 17% N/A � Algebra 2014-2015 100% � 52% �i 97% � � Level I I Level I I Grade Comparison Satisfactory Level III Satisfactory Phase-In 2 Level Year Phase-In 1 Advanced (Effective 2015-16) 2013-2014 93% 21% N/A 3 2014-2015 94% � 47% 89.5% I 2013-2014 91% 36% _� N/A 4 2014-2015 98% 38% 98% 2013-2014 98% 43% N/A S 2014-2015 98% 38% 98% 2013-2014 98% 38% N/A 6 i� 2014-2015 100% 54% 96% I 2013-2014 97% 54% � N/A 7 � 2014-2015 99% 58% � 93% I 2013-2014 95% 61% � N/A 8 = 2014-2015 100% 65% � 100% 104 INFORMATIONAL SECTION � � . . . . � . � � . . . . � . Middle 50% Mean Middle 50% Mean Critical Reading 510-630 566 English 24-30 27.1 Mathematics 520-650 584 Mathematics 24-28 25.9 Writing 480-610 551 Reading 24-32 27.9 *Numbers reflect testing through Spring 2015 Science 23 -30 26.2 Composite 25 -29 26.6 *Numbers reflect testing through Spring 2015 BENCHMARK DATA In 2014 Westlake Academy was awarded a four and one-half star rating from the Texas State Comptroller's FAST School District Rating System for providing quality education at a reasonable per student cost. Future enrollment increases will further improve efficiencies and reduce per student cost. � � DISTRICT LISTING� Finan�cialAllc�tation StudyforTexas. F��T � . � �� ,,. ,,. , � WESLACOISD HIaALGp 17,830 METSTAI4�kAD 57 fl 26�■ � i + AVERAGE _ W€STHARDINC�IlNTYC850 HAR�IN 3B4 METSThM�AH� 25 25 22��_I��: + L�W — WFSTH�UST�N(HARTERSCHOOB(E) HAARIS 32� METSTAM�kHD 2 43 8�C7-1_ i + UERYL�W = WESTIS� MCLENNAN �,440 METSTAH�AHD *` *' `• + AVERAGE _ ** WESTORANGE-C�VECISa 6RANGE 7,344 METSTAFl�ABp 15 31 20�■ � i + AYERAGE _ „ , WEST�5013� MUECES 2,Q3ff METSTAN�AA� 44 33 36!■ I i + VERYHIGH = ��# WESTHI15815� HUSN 498 METSTAN�AAD 25 34 28�■ J I + AYERAGE — �';�� W€STSABINEIS� SABINE fi49 METSTAhf�AB� 53 t9 32��: ::i + LOW = '�� WESTBRO�KES� MfTCHELL 214 METSTAhl�AH� 52 35 44��1 + VERYHIGH = WESTHOFFISD 6EWITT 69 METSTAH�AH� 1 23 11��7:'::i + VERYHIGH = WESTLAX€ACAUEMYCNARTERSCNp01(Cy TARRANT 670 METSTAN�AAD 84 95 94��■ + 10W — WESTPHALIAISD FAL�S 135 METSTAM�AHD 46 14 95��■ + AVERAGE _ 105 INFORMATIONAL SECTIDN Benchmarking against the surrounding local ISDs,Westlake Academy's expenditures are near the median when comparing expenditures per student. Westlake's student-teacher ratio compares favorably to surrounding school districts. Student-Teacher Ratio Comparison . . � � � � . . - 13/14 16.40 NA 15.26 14.73 12/13 17.20 15.06 14.79 14.99 11/12 17.70 14.90 14.94 14.43 10/11 16.40 14.69 13.74 14.08 09/10 16.20 14.20 14.06 14.60 Per-Pupil Expenditure Comparison . . � � � � . . - 13/14 �� $ 7,686 $ 8,674 : $ 8,498 . $ 10,249 � 12/13 7,082 8,336 8,264 8,715 11/12 6,538 8,137 8,175 9,171 10/11 6,322 8,130 9,085 $,96� 09/10 6,551 8,314 8,806 g,429 �� 08/09 6,348 8,546 8,238 g,9271 07/08 6,620 8,247 8,046 8,721 06/07 6,325 7,26� 7,845 �,�25 05/06 6,052 7,702 � 8,116 6,944 04/05 5,747 7,790 8,025 7,111 Westlake Academy Unaudited Per Pupil Expenditures - . • . - . . - . . . 14/15 812 $8,130,181 $10,013 . - . . - . • . - . . . � . . 15/16 832 $8,228,953 $9,891 *Sources: Westlake Academy Comprehensive Annual Financial Reports (FY04/05-FY 13/14), available online at www.westlake-tx.org; Keller Independent School District FY 13/14 Comprehensive Annual Financial Report, available online at www.kellerisd.net; Northwest Independent School District FY 13/14 Comprehensive Annual Financial Report, available online at www.nisdtx.org; Carroll Independent School District Financial Services Department **Comparisons are based on operating expenditures,which include general and special revenue funds, but exclude objects of debt service, capital outlay, and intergovernmental charges. io6 INFORMATIONAL SECTION ZO14� 15 ACADEMIC ACHIEVEMENTS NATIONAL RECOGNITION • Westlake Academy was ranked#42 out of approximately 1,900 public high schools in the United States in the Washington Post Challenge Index. $TAFF ACCOMPLISHMENTS: • Several faculty members continue to represent the International Baccalaureate as Workshop Leaders, Site Visitors and Consultants. • Westlake Academy received the Distinguished Budget Presentation Award from the Government Finance Officers Association. • The Academy received the Meritorious Budget Award from the Association of School Business Officials International (ASBO). • Teacher received the prestigious Distinguished Apple Educator Award. • Teacher received the Claes Nobel Educator of Distinction in recognition of their impact as an educator, leader and role model. $TUDENT ACCOMPLISHMENTS: • 31 Academy graduates from the Class of 2015 received the prestigious IB Diploma. • The graduating class of 2015 received $3.9 million in scholarship and grant offers. All students were accepted into at least one four-year college/university, with many into top tier schools across the State and the U.S. • Two graduates from the class of 2015 received Division I athletic scholarships. ,� � I �� ' ��"� ,.�� ' '� � �- `�P �� I � � : - � � � I,} � � � ti � ��`,#� 1 � �_ y � 1�� -� �' , � :��`�.," +� �,: .�� . �� ~� , � �� ' �� , '�� ' r' �'��1 � w , __g � . � . . _ ,� :�a� �� '��' - . , # -tl � ,�_ r �= ;�. k .�J . , �,� �� _ �_ �o� INFORMATIONAL SECTION ZO14� 15 ATHLETIC ACHIEVEMENTS The 2014/15 school year saw 29 High School athletes earn All-State Honors and 53%of the student body in grades 9-12 play at least one sport. 58% of students in grades 6-12 participated in at least one sport. Achievements include: / .� -- , �. � 1 �� -� /�-- �'l , Junior Varsity Volleyball Junior Varsity Women's Basketball District& Regional Champions District Champions Varsity Volleyball Junior High Men's&Women's Basketball District&State Champions District& Regional Champions Junior High Football Varsity Baseball District& Regional Champions District&State Champions Varsity Soccer Varsity Softball District &State Champion State Runner-Up Junior High Soccer Varsity Tennis District& Regional Champions State Champion Cross Country Men's and Women's Varsity Golf Individual Women's State Champion State Champions 1oa INFORMATIONAL SECTION PARENT SURVEY RESULTS Westlake Academy is focused on delivering high quality educational services and depends upon input from our stakeholders. Westlake Academy routinely conducts an Annual Parent Survey to help identify any future needs and to prioritize resource allocation. The FY 2014/15 Westlake Academy Parent Survey was conducted in May of 2015 and we saw an overall decrease in the satisfaction rate of 10%with the quality of educational services that were provided. Overall Satisfaction with Quality of Education Dissatisfied 15% 71%of the parent's surveyed were very satisfied or very � satisfied with the overall quality of education Satisfied or _ Neutral Westlake Academy delivers to its students. Satisfied-� = 71% \`� 14% �ti Overall Satisfaction with the IB Framework 72%of our respondents were very satisfied or �Dissatisfied satisfied with the IB Curriculum /Framework Very 8�� Satisfied or Satisfied �Neutral 72% 20% u Overall Satisfaction with Academic Progress of Child �Dissatisfied Very 15% 70% of the parent's surveyed were either very Satisfied or satisfied of satisfied with the academic progress of Satisfied - their child 70% �Neutral 15% 109 INFORMATIDNAL SECTION f,*:r=��,..,:ti.,... 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Accounting Period: A period of the end of which, and for which,financial statements are prepared; for Appropriation: An authorization granted by a example, September 1 through August 31. See also legislative body to make expenditures and to incur FISCAL PERIOD obligations for specific purposes.An appropriation is usually limited in amount and as to the time when it Accounting Procedure: The arrangement of all may be expended. processes which discover, record, and summarize financial information used to produce financial Academic Excellence Indicators System (AEIS): A statements and reports and to provide internal system of indicators established by the Legislature and control. adopted by the State Board of Education to help determine the quality of learning on a campus and in a Accounting System: The total structure of records school district.The indicators include passing rates on and procedures which discover record, classify and the state assessment tests, attendance, graduation report information on the financial position and rates, dropout rates, and scores on college entrance operations of a school district or any of its funds, exams.The state will assess district and school balanced account groups, and organizational performance compared with state-level standards. components. AEIS is the foundation for a school district's Accrual Basis of Accounting: The basis of accounting, accountability rating. under which revenues are recorded when earned, and q��ountability Ratings:The Accountability Ratings expenditures are recorded as soon as they result in System ranks campuses and districts as exemplary, liabilities, regardless of when revenue is actually recognized, acceptable, and low performing based on received or a payment is actually made. the percentage of students who pass the state Accrue:To record revenues when earned or when assessment instruments and the dropout rate. levies are made and to record expenditures as soon as Assigned Fund Balance: reports amounts that are they result in liabilities, regardless of when the constrained by the government's intent that they will revenue is actually received or the payment is actually be used for specific purposes. Decision making with made. Sometimes,the term is used in a restricted regard to these amounts may be made by a sense to denote the recording of revenues earned but committee or other governmental official. Compared not yet due, such as accrued interest on investments to Committed Fund Balance,the resources and the recording of expenditures which result in represented by the Assigned Fund Balance can be liabilities that are payable in another accounting more easily redeployed and the constraints are not as period, such as accrued interest on bonds. stringent. Except for the General Fund, fund balance ADA: Average Daily Attendance is based on the amounts that are not labeled as non-spendable, number of days of instruction in the school year.The restricted or committed would be reported in the aggregate day's attendance is divided by the number Assigned Fund Balance category. Therefore,the of days of instruction to compute average daily Assigned Fund Balance becomes the residual amount attendance. ADA is used in the formula to distribute for the Special Revenue Fund, Capital Project Fund and funding to Texas public school districts. Debt Service Funds. Association of School Business Officials International (ASBO): The Association of School 111 INFORMATIONAL SECTION Business Official' International,founded in 1910, is a Budgetary Basis of Accounting:The method used to professional association which provides programs and determine when revenues and expenditures are services to promote the highest standards of school recognized for budgetary purposes. business management practices, professional growth, and the effective use of educational resources. Capital Expenditures: Capital expenditures are defined as charges for the acquisition at the delivered Audit: A comprehensive review of the manner in price including transportation, costs of equipment, which the government's resources were actually land, buildings, or improvements of land or buildings, utilized. A certified public accountant issues an fixtures, and other permanent improvements with a opinion over the presentation of financial statements, value in excess of$5,000 and a useful life expectancy tests the controls over the safekeeping of assets and of greater than 1 year. makes recommendations for improvements for where necessary. Classification, Function: A function represents a general operational area in a school district and Balanced Budget:A balanced budget is a budget with groups together related activities; for example, total expenditures not exceeding total revenues and instruction, campus administration, maintenance and monies available in the fund balance within an operations, etc. individual fund. Classification,Object: An object has reference to an Balance Sheet: A summarized statement, as of a given article or service received; for example payroll costs, date, of the financial position of a local education professional and contracted services, supplies and agency per fund and/or all funds combined showing materials, and other operating expenses. assets, liabilities, reserves, and fund balance. Co-curricular Activities: Direct and personal services Budget: A plan of financial operation embodying an for public school pupils such as interscholastic estimate of proposed expenditures for a given period athletics, entertainments, publications, clubs, and or purpose and the proposed means of financing strings, which are managed or operated by the them.The budget usually consists of three parts.The student body under the guidance and direction of an first part contains a message from the budget-making adult, and are not part of the regular instructional authority together with a summary of the proposed program. expenditures and the means of financing them.The second part is composed of drafts of the Coding: A system of numbering, or otherwise appropriation, revenue, and borrowing measures designating, accounts, entries, invoices,vouchers, etc., necessary to put the budget into effect.The third part in such a manner that the symbol used reveals quickly consists of schedules supporting the summary.These certain required information. schedules show in detail the proposed expenditures and means of financing them together with Consultant: A resource person who provides information as to past years' actual revenues and assistance to the regular personnel through expenditures and other data used in making the conference, demonstration, research, or other means. estimates. Contracted Services: Labor, material and other costs Budgetary Control: The control management of the for services rendered by personnel who are not on the business affairs of the school district in accordance payroll of the Academy. with an approved budget with a responsibility to keep Committed Fund Balance: represents amounts that expenditures within the authorized amounts. have internally imposed restrictions mandated by Basic Allotment:The basic allotment is the initial or formal action of the government's highest level of starting number that, after adjustment, is used to decision-making authority. The committed amounts calculate foundation program costs and state aid to cannot be redeployed for other purposes unless the school districts and charters. same type of formal action is taken by the highest level of decision-making authority to reserve or modify the previously imposed restriction. 112 INFORMATIONAL SECTION Comprehensive Annual Financial Report (CAFR): A encumbrances, exchanges of cash for other current financial report that encompasses all funds and assets such as the purchase stores and investment of component units of the government.The CAFR should cash in U.S. Bonds, payments of cash in settlement of contain (a)the basic financial statements and required liabilities already accounted as expenditures, and the supplementary information, (b) combining statements repayment of the principal of current loans are not to support columns in the basic financial statements considered as expenditures.) that aggregate information from more than one fund or component unit, and (c) individual fund statements Fiduciary Funds: Fiduciary Funds account for assets as needed.The CAFR is the governmental unit's official held in a trustee or agent capacity for outside parties, annual report and also should contain introductory including individuals, private organizations, and other information, schedules necessary to demonstrate governments. compliance with finance-related legal and contractual Fiscal Period: Any period at the end of which a local provisions, and statistical data. education agency determines its financial position Cost of Education Index(CEI) or Adjustment: An and the results of its operations. The period may be a index the state uses to adjust the basic allotment to month, or a year, depending upon the scope of account for geographic or other cost differences operations and requirements for managerial control beyond local school district control.The current index and reporting. has not been updated since 1990. Fiscal Year: A twelve-month period of time to which Current Budget: The annual budget prepared for and the annual budget applies and at the end of which a effective during the present fiscal year. local education agency determines its financial position and the results of its operations. The Current Expenditures per Pupil: Current District's fiscal year is July 1 through June 30. expenditures for a given period of time divided by a pupil unit of ineasure (average daily attendance, etc.) Foundation School Program (FSP): A program for the support of a basic instructional program for all Texas Debt: An obligation resulting from the borrowing of school children. Money to support the program comes money or from the purchase of goods and services. from the Permanent School Fund,Available School Debts of local education agencies include bonds, Fund, Foundation School Fund, state general revenue, leases, etc. and local property taxes. Currently,the FSP described in the Texas Education Code consists of three parts or Diploma Programme (DP): A challenging two year tiers.The first tier provides funding for a basic curriculum for students in grades 11 and 12 that program.The second tier provides a guaranteed-yield provides an inquiry-based,college preparatory system so that school districts have substantially equal education. By emphasizing knowledge, skills, critical access to revenue sufficient to support an accredited thinking and the fostering and development of program.The third tier equalizes debt service universal human values, students learn the valuable requirements for existing facilities debt. skills of construction and deconstruction knowledge. Fund: An independent fiscal and accounting entity Education Service Center(ESC): Twenty with a self-balancing set of accounts recording cash intermediate education units located in regions and/or other resources, together with all related throughout Texas that assist and provide services liabilities, obligations, reserves, and equities which for local school districts. are segregated for the purpose of carrying on in Estimated Revenue: This term designates the accordance with special regulations, restrictions, or amount of revenue expected to be earned during a limitations. given period. Fund Balance: It is the resources remaining from Expenditures: This includes total charges incurred, prior years and which are available to be budgeted in whether paid or unpaid, for current expense, capital the current year. outlay, and debt service. (Transfers between funds, 113 INFORMATIONAL SECTION Furniture: Those moveable items used for school International Baccalaureate Program (IB): A non- operation that are not of a mechanical nature. Chairs, profit foundation whose mission is to help students tables, desks,file cabinets, pictures, chalkboards, "develop the intellectual, personal, emotional, and lamps, lockers and carpets, etc., are examples of social skills to live, learn and work in a rapidly furniture. globalizing world." It was founded in 1968 and runs in over 3,000 schools in 141 countries. Its Diploma General Fund: A fund group with budgetary control Program (DP) is designed for high school juniors and used to show transactions resulting from operations seniors, and offers classes in the same areas as of ongoing organizations and activities from a variety traditional schools: math, science, English,foreign of revenue sources for which fund balance is language, social studies, and the arts. Additionally, controlled by and retained for the use by the local students have three extra requirements: a class about education agency.The General Fund is used to the theory of knowledge, a community service finance the ordinary operations of a governmental obligation, and an extended essay on a research topic unit except those activities required to be accounted of their choice. Along the way, students complete for in another fund. assessments that help them prepare for the final Government Finance Officers Association (GFOA): A Written exams, which are graded by external professional association of state/provincial and local examiners. Upon graduation, students earn a diploma finance officers in the United States and Canada, and that is respected worldwide. has served the public finance profession since 1906. Middle Years Programme (MYP): A curriculum The association's nearly 15,000 members are framework for children in grades six through ten dedicated to the sound management of government that encourages students to make practical financial resources. connections between their studies and the real Governmental Funds: Funds generally used to World. The MYP builds on the knowledge; skills and attitudes developed by the Primary Years account for tax-supported activities. There are five programme (PYP) and prepare the students for the different types of governmental funds:the general demanding requirements of the Diploma fund, special revenue funds, debt service funds, Programme (DP). capital projects funds and permanent funds. Grant: A contribution by one governmental unit to Modified Accrual Basis of Accounting: Basis of another. The contribution is usually made to aid in accounting according to which (a) revenues are the support of specified function (for example,job recognized in the accounting period in which they training), but it is sometimes also for general become available and measurable and (b) purposes. expenditures are recognized in the accounting period in which the fund liability is incurred, if ineasurable, Independent Audit: An audit performed by an except for un-matured interest on general long-term independent auditor. debt and certain similar accrued obligations,which should be recognized when due. Individual Education Plan (IEP): A document required by federal law that details the special Non-spendable Fund Balance: includes amounts that education requirements for each disabled student and cannot be spent and are,therefore, not included in explains how the school intends to address the the current year appropriation. Two components: 1) student's needs.An IEP is intended to help ensure that Not in spendable form—previously recorded disabled students have equal access to public disbursements and include items that are not education in the least restrictive environment. expected to be converted into cash, i.e. inventories, pre-paid items, etc. and 2) Legally or contractually Individuals with Disabilities Education Act (IDEA): required to be maintained intact—refers to an amount The 1997 IDEA strengthens academic expectations that has been received that must be invested and accountability for the nation's 5.4 million indefinitely, i.e. a donation received by the children with disabilities. government from a citizen,the principal of which is to 114 INFORMATIONAL SECTION be invested in a permanent fund and the earnings Public Information Act (PIA): PIA defines public used for general governmental purposes. information as information collected, assembled, or maintained under a law or in connection with a Object Code: As applied to expenditures,this term governmental body's transaction of official business. has reference to an article or service received;for PIA provides that public information must be made example, payroll costs, purchased and contracted available to the public upon request during the normal services, materials and supplies. business hours of the district, unless an exception Open-Enrollment Charters: Open-enrollment charter applies that allows or requires that the information schools may be established by private nonprofit not be made public. organizations, colleges and universities, and other Refined ADA: Refined Average Daily Attendance is governmental entities that apply to the State Board of based on the number of days of instruction in the Education.The law authorizes the State Board to school year. The aggregate eligible day's attendance is approve up to 215 open-enrollment charter schools. divided by the number of days of instruction to Law also provides for creation of college or university compute the refined average daily attendance. See charter schools at "public senior colleges and also ADA. universities."There is no limit on the number of these charter schools that may be granted. Other charter Restricted Fund Balance: reports on resources that programs include home-rule school district charters have spending constraints that are either: 1) externally and campus or campus program charters. imposed by creditors, grantors, contributors or laws and regulations of other governments, i.e.grants, etc. Personnel, Full-Time: Academy employees who -or-2) imposed by law through constitutional occupy positions with duties which require them to be provision or enabling legislation. The amounts on the job on school days throughout the school year, represented by this fund balance category have very or at least the number of hours the school is in stringent conditions imposed by external parties or by session. law. Therefore,the amounts are restricted to very specific purposes and cannot be redeployed for other Personnel, Part-Time: Personnel who occupy purposes. The government can be compelled by an positions with duties which require less than full-time external party to undertake the spending service. requirements represented by the Restricted Fund Primary Years Programme (PYP): A curriculum Balance. framework for children aged 3-12 that prepared students for the intellectual challenges of future School Board Authority: Statute gives local school education and their future careers,focusing on the boards the exclusive power and duty to govern and development of the whole child as an inquirer, both in oversee the management of the public schools. the classroom and in the world outside. Powers and duties not specifically delegated to the Texas Education Agency or the State Board of Proprietary Funds: Funds that focus on the Education are reserved for local trustees. determination of operating income, changes in net assets (or cost recovery),financial position, and cash Special Revenue Funds: Funds that are used to flows.There are two different types of proprietary account for funds awarded to the Academy for the funds: enterprise funds and internal service funds. purpose of accomplishing specific educational tasks as defined by grantors in contracts or other agreements. Public Education Information Management System State Board for Educator Certification (SBEC): SBEC (PEIMS): A data management system that includes information on student demographics, performance, is a quasi-independent body that gives educators teacher salaries, etc.The information for PEIMS is more authority to govern the standards of their transmitted from local school districts to the Texas profession. SBEC regulates and oversees all aspects of Education Agency by the education service centers. the certification, continuing education, and standards of conduct of public school educators. As a state agency, SBEC is responsible for certification testing, 115 INFORMATIONAL SECTION accountability programs for educator preparation Texas Education Code (TEC): This code applies to all programs, and certification of teachers and educational institutions supported in whole or in part administrators. by state tax funds. State Board of Education (SBOE): A 15-member Texas Essential Knowledge and Skills (TEKS): body elected by general election (staggered, four-year Subject-specific state leaning objectives adopted by terms)from various regions statewide to provide the State Board of Education.The State's academic leadership and to adopt rules and policies for public tests. [see Texas Assessment of Knowledge and Skills education in the state.The board's primary (TAKS)] are aligned with the TEKS. responsibility is to manage the Permanent School Fund. Texas Open Meetings Act (TOMA): TOMA makes school board meetings to discuss and decide public Teacher Retirement System (TRS): TRS delivers business accessible.The TOMA Decision requires retirement and related benefits authorized by law for governmental entities to provide prior public notice of members and their beneficiaries. what is to be discussed and where and when discussion will take place. Closed meetings are Technology Allotment: This allotment is part of the permitted only when specifically authorized by law. state textbook fund and can be used to purchase Civil and criminal penalties can result when a board electronic textbooks or technological equipment that violates provisions of this act. contributes to student leaning or teacher training.The allotment is $30 per ADA. Unassigned Fund Balance: the residual fund balance for the General Fund. It represents the amount of Texas Assessment of Academic Skills (TAAS): A fund balance remaining after allocation to the Non- state-developed test administered each year to spendable, restricted, committed and assigned fund students in grades 3 through 8 and 10 (exit-level)to balances. This amount reflects the resources that are determine student achievement levels on state- available for further appropriation and expenditure for established leaning objectives. Replaced by the Texas general governmental purposes. Assessment of Knowledge and Skills (TAKS) effective for the 2002-03 school year. Weighted Students in Average Daily Attendance (WADA): In Texas, students with special educational Texas Assessment of Knowledge and Skills (TAKS): needs are weighted for funding purposes to help TAKS replaces the Texas Assessment of Academic Skills recognize the additional costs of educating those (TAAS), a criterion-referenced test used in Texas students. Weighted programs include special schools for 12 years.TAKS began in spring 2003, with education, career and technology, bilingual, gifted and tests in reading in grades 3 through 9; language arts in talented, and compensatory education. A weighted grades 10 and 11; mathematics in grades 3 through student count is used to distribute guaranteed-yield 11.The 11th grade exit-level test will assess English III, funding and establish Chapter 41 thresholds. algebra I, geometry, biology, integrated chemistry and physics, early American and U.S. history, world geography, and world history.TAKS will be a more challenging examination for Texas students, according to the results of field tests. Texas Education Agency (TEA): The administrative and regulatory unit for the Texas public education system managed by the commissioner of education. TEA is responsible for implementing public education policies as established by the Legislature, State Board of Education, and commissioner of education. 116 WESTLAKE ACADEMY RESOLUTION NO. 15-14 A RESOLUTION OF THE BOARD OF TRUSTEES 4F WESTLAKE ACADEMY TO ADOPT THE REVISED OPERATING BUDGET FOR FISCAL YEAR ENDING AUGUST 31, 2015 AND THE PROPOSED SUDGET FOR FISCAL YEAR ENDING AUGUST 31, 2016 INCLUDING INVESTMENT POLICY, FISCAL AND BUDGETARY POLICIES, C(JMMITTED AND ASSIGNED FUND BALANCES. BE IT RESOLVED BY THE BOARD OF DIRECTORS OF WESTLAKE ACADEMY: �HEREAS, Section 44.002 of the Education Code of the Texas Education Agency Texas School Law Bulletin states the budget must be prepared according to generally accepted accounting principles, aild WHEREAS, the budget must be approved by the Board of Trustees prior to August 31 S` according to Texas Education Agency's Financial Accountability System Resource Guide, Section 2.6.2—TEA Legal Requirements; and WHEREAS,the Board af Trustees held a Public Hearing on August l Oth, 2015; and WHEREAS, the Board of Trustees finds that the passage of this Resolution is in the best interest of the citizens of Westlake as well as the students, their parents, and faculty of Westlake Academy. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD QF TRUSTEES OF THE WESTLAKE ACADEMY: SECTI4N l: That, all matters stated in the recitals hereinabove are found to be true and correct and are incorporated herein by reference as if copied in their entirety. SECTION 2: That the Board of Tiustees hereby adopts the revised Westlake Academy Operating Budget for the fiscal year ending August 31, 2015 and the proposed Westlake Academy Annual Operating Budget for the fiscal year ending August 31, 2016 and appropriates the funds contained therein attached to this resolution as Exliibit "A': SECTION 3: That the Board of Trustees hereby adopts the Fiscal and Budgetary Policies, Investment Policies, and the Committed and Assigned Fund Balance designations that are also included in Exhibit A. SECTION 4: That a copy of the official adopted 2015-2016 Budget shall be kept on file in the office of the Town Secretary. WA Resolution 15-14 Page 1 of 2 117 SECTION 5: If any portion of this resolution shall, for any reason, be declared invalid by any court of competent jurisdiction, such invalidity shall not affect the remaining provisions hereof and the Council hereby determines that it would have adopted this Resolution without the invalid provision. SECTION 6: That this resolution shall become effective from and after its date of passage. PASSED AND APPROVED ON THIS lOth DAY OF AUGUST, 2015. .�`�.�- Laur Wheat, President ATTEST: / {--- , . t , - _ �,� _� '�� i��'1 �( ,��' 1,(� (`�,f 1 � �(,� '`� '�''� /�y:�/1 Kelly Edwards, Board Secretary homas E. B er, uperintendent V APPROVE AS�TO/ FQ�t�I. �' / ` i ;� ,�'��.,,,� � L. on Lo � Janef�S. Bubert, School Attorney � WA Resolution 15-14 Page 2 of 2 118