HomeMy WebLinkAbout12-07-15 BOT Agenda PacketThe Regular Meeting of the Board of Trustees will begin immediately following the conclusion of the
Board of Trustees Workshop but not prior to the posted start time.
Mission Statement
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.
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WESTLAKE ACADEMY
Vision Statement
Westlake Academy inspires 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
BOARD OF TRUSTEES MEETING
AGENDA
December 7, 2015
WESTLAKE TOWN HALL
3 VILLAGE CIRCLE
2ND FLOOR COUNCIL CHAMBER
WESTLAKE, TX 76262
Workshop Session 5:00 p.m.
Regular Session 6:00 p.m.
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Work Session
1. CALL TO ORDER
2. PLEDGE OF ALLEGIANCE
3. REVIEW OF CONSENT AGENDA ITEMS FOR THE DECEMBER 7, 2015, TRUSTEES
REGULAR MEETING AGENDA.
4. RECOGNITION OF THE WOMEN’S VOLLEYBALL AND CROSS COUNTRY TEAMS,
NATIONAL MERIT STUDENTS AND NATIONAL HISPANIC HONOR STUDENT.
5. DISCUSSION ITEMS
a. Presentation of the FY 2014-2015 annual audit report from Weaver and Tidwell,
L.L.P. (15 min)
b. Update on the IB reauthorization for the Middle Years Programme (MYP). (15 min)
6. BOARD RECAP / STAFF DIRECTION
7. ADJOURNMENT
Regular Session
1. CALL TO ORDER
2. ITEMS OF COMMUNITY INTEREST: President and Trustee Reports on Items of
Community Interest pursuant to Texas Government Code Section 551.0415 the Board of
Trustees may report on the following items: (1) expression of thanks, congratulations or
condolences; (2) information about holiday schedules; (3) recognition of individuals; (4)
reminders about upcoming Board of Trustee events; (5) information about community
events; and (6) announcements involving imminent threat to public health and safety.
3. CITIZEN COMMENTS: This is an opportunity for citizens to address the Board on any
matter whether or not it is posted on the agenda. The Board cannot by law take action
nor have any discussion or deliberations on any presentation made to the Board at this
time concerning an item not listed on the agenda. Any item presented may be noticed on
a future agenda for deliberation or action.
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4. CONSENT AGENDA: All items listed below are considered routine by the Board of
Trustees and will be enacted with one motion. There will be no separate discussion of
items unless a Board member or citizen so requests, in which event the item will be
removed from the general order of business and considered in its normal sequence.
a. Consider approval of the minutes from the November 2, 2015, meeting.
b. Consider approval of the minutes from the November 16, 2015, meeting.
c. Consider approval of Resolution 15-19, Approving the Fiscal Year 2014-2015
Annual Audit Report from Weaver and Tidwell, L.L.P.
d. Consider approval of Resolution 15-20, Approving a Credit by Examination for
Chemistry.
5. SCHOOL FIRST 2015 RATING AND ANNUAL FINANCIAL MANAGEMENT
REPORT (FOR YEAR ENDED AUGUST 31, 2014).
6. FUTURE AGENDA ITEMS: Any Board member may request at a workshop and / or
Board meeting, under “Future Agenda Item Requests”, an agenda item for a future
Board meeting. The Board member making the request will contact the Superintendent
with the requested item and the Superintendent will list it on the agenda. At the
meeting, the requesting Board member will explain the item, the need for Board
discussion of the item, the item’s relationship to the Board’s strategic priorities, and the
amount of estimated staff time necessary to prepare for Board discussion. If the
requesting Board member receives a second, the Superintendent will place the item on
the Board agenda calendar allowing for adequate time for staff preparation on the
agenda item.
7. ADJOURNMENT
ANY ITEM ON THIS POSTED AGENDA COULD BE DISCUSSED IN EXECUTIVE
SESSION AS LONG AS IT IS WITHIN ONE OF THE PERMITTED CATEGORIES UNDER
SECTIONS 551.071 THROUGH 551.076 AND SECTION 551.087 OF THE TEXAS
GOVERNMENT CODE.
CERTIFICATION
I certify that the above notice was posted at the Town Hall of the Town of Westlake, 3 Village Circle, on
December 2, 2015, by 5:00 p.m. under the Open Meetings Act, Chapter 551 of the Texas Government
Code.
_____________________________________
Kelly Edwards, Town Secretary
If you plan to attend this public meeting and have a disability that requires special needs, please advise
the Town Secretary 48 hours in advance at 817-490-5710 and reasonable accommodations will be made
to assist you.
Westlake Academy
Item # 2 – Pledge of
Allegiance
Texas Pledge:
"Honor the Texas
flag; I pledge
allegiance to thee,
Texas, one state under
God, one and
indivisible."
REVIEW OF CONSENT AGENDA ITEMS
a. Consider approval of the minutes from the November 2, 2015, meeting.
b. Consider approval of the minutes from the November 16, 2015, meeting.
c. Consider approval of Resolution 15-19, Approving the Fiscal Year 2014-
2015 Annual Audit Report from Weaver and Tidwell, L.L.P.
d. Consider approval of Resolution 15-20, Approving a Credit by Examination
for Chemistry.
Westlake Academy
Item # 3 –
Review of Consent
Agenda Items
4. RECOGNITION OF THE WOMEN’S VOLLEYBALL AND CROSS COUNTRY TEAMS,
NATIONAL MERIT STUDENTS AND NATIONAL HISPANIC HONOR STUDENT.
Westlake Academy
Item # 4 – No
Supporting
documentation
DISCUSSION ITEMS
a. Presentation of the FY 2014-2015 annual audit report from Weaver and
Tidwell, L.L.P. (15 min)
b. Update on the IB reauthorization for the Middle Years Programme (MYP). (15
min)
Westlake Academy
Item #5–
Discussion Items
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WESTLAKE ACADEMY AGENDA ITEM
Curriculum: Finance Meeting Date: December 7, 2015
Staff Contact: Debbie Piper Workshop
Finance Director
Subject: Presentation of the FY 2014-2015 annual audit report from Weaver and Tidwell,
L.L.P.
EXECUTIVE SUMMARY
Weaver and Tidwell, L.L.P. has completed the Westlake Academy 2014-2015 annual financial
audit report. As in prior years, we again had no “Findings”, reportable conditions nor material
weaknesses to be reported to TEA. Findings are items required by TEA to be reported regarding
TEA compliance, large variances in budget vs. actual balances, etc. TEA doesn’t necessarily
look upon these as bad (they require an explanation of all “Findings” and review in subsequent
years), but it certainly looks good for the Academy not to have any for the current year.
Please review the Management Discussion and Analysis document included in the audit report
for statistical information during the year ended August 31, 2015.
PLAN DESIRED OUTCOMES
High Student Achievement
Strong Parent & Community
Connections
Financial Stewardship &
Sustainability
ACADEMY VALUES
Maximizing Personal Development
Academic Excellence
Respect for Self and Others
Personal Responsibility
Compassion and Understanding
Effective Educators & Staff
GOVERNANCE FRAMEWORK
The approval of this external audit meets the requirements of the Texas Education Agency as
well as one of our desired outcomes, Financial Stewardship & Sustainability. In addition, the
conclusion of a successful audit is in keeping with our financial policies as approved by the
Board of Trustees for Westlake Academy.
FISCAL IMPACT
Funded Not Funded N/A
Total payment for the FY 2014-2015 annual audit was $12,800 which was incorporated in FY
2015-16 Academy budget.
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RECOMMENDATION / ACTION REQUESTED/ OPTIONS
Recommend approval of the resolution approving the FY 2014-2015 annual audit as submitted.
ATTACHMENTS:
Resolution
Audit report (Draft) for year ended August 31, 2015
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WESTLAKE ACADEMY
(A COMPONENT UNIT OF THE TOWN OF WESTLAKE)
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED AUGUST 31, 2015
Exhibit Page
Certificate of Board 1
Independent Auditor's Report 2
Management's Discussion and Analysis 5
Basic Financial Statements
Government Wide Statements:
A-1 Statement of Net Position 12
B-1 Statement of Activities 13
Governmental Fund Financial Statements:
C-1 Balance Sheet 14
C-2 Statement of Revenues, Expenditures, and Changes in Fund Balance 15
D-1 Statement of Fiduciary Net Position 16
Notes to the Basic Financial Statements 17
Required Supplementary Information
E-1 Budgetary Comparison Schedule - General Fund 33
Notes to Budgetary Comparison Schedule 34
E-2 Schedule of Academy's Proportionate Share of Net Pension Liability -
Teacher Retirement System 35
E-3 Schedule of Contributions - Teacher Retirment System 36
Combining Statements
Nonmajor Governmental Funds:
F-1 Combining Balance Sheet 37
F-2 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 40
Internal Control Report
Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards 43
TABLE OF CONTENTS
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CERTIFICATE OF BOARD
WESTLAKE ACADEMY TARRANT 220-810
Name of School County Co.-District Number
We, the undersigned, certify that the attached annual financial reports of the above-named school were
reviewed and (check one) approved disapproved for the year ended August 31,
2015 at a meeting of the Board of Trustees of such school on the 7 day of December, 2015.
Signature of Board Secretary Signature of Board President
If the Board of Trustees disapproved of the auditors' report, the reason(s) for disapproving it is(are):
(attach list as necessary)
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FINANCIAL SECTION
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AN INDEPENDENT MEMBER OF BAKER TILLY INTERNATIONAL WEAVER AND TIDWELL, L.L.P. CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS 12221 MERIT DRIVE, SUITE 1400, DALLAS, TX 75251 P: 972.490.1970 F: 972.702.8321
INDEPENDENT AUDITOR'S REPORT
Board of Trustees
Westlake Academy
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
discretely presented component unit, each major fund, and the aggregate remaining fund
information of Westlake Academy (the Academy), a component unit of the Town of Westlake, as
of and for the year ended August 31, 2015, and the related notes to the financial statements,
which collectively comprise the Academy's basic financial statements as listed in the table of
contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States of
America; this includes the design, implementation, and maintenance of internal control relevant
to the preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity's internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
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Westlake Academy
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Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the discretely presented
component unit, each major fund, and the aggregate remaining fund information of Westlake
Academy, as of August 31, 2015, and the respective changes in financial position for the year
then ended in accordance with accounting principles generally accepted in the United States of
America.
Change in Accounting Principles
As discussed in Note 15 to the financial statements, in 2015, the District adopted new
accounting guidance, GASB Statement No. 68, “Accounting and Financial Reporting for
Pensions - an amendment of GASB Statement No. 27” and GASB Statement No. 71, “Pension
Transition for Contributions Made Subsequent to the Measurement Date”. Our opinion is not
modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis, budgetary comparison information, and TRS pension
schedules on pages 5 through 11, 33 and 34, 35 and 36, respectively, be presented to
supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about the methods of preparing the information and comparing the
information for consistency with management's responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Academy's basic financial statements. The nonmajor governmental
funds combining statements are presented for the purposes of additional analysis and are not a
required part of the basic financial statements. The nonmajor governmental funds combining
statements are the responsibility of management and were derived from and relate directly to
the underlying accounting and other records used to prepare the basic financial statements.
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Westlake Academy
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Such information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the
basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the nonmajor governmental funds combining and individual statements
are fairly stated in all material respects in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 7, 2015, on our consideration of the Academy's internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe the
scope of our testing of internal control over financial reporting and compliance and the results of
that testing, and not to provide an opinion on internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the Academy's internal control over financial
reporting and compliance.
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
December 7, 2015
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WESTLAKE ACADEMY
(A COMPONENT UNIT OF THE TOWN OF WESTLAKE)
MANAGEMENT’S DISCUSSION AND ANALYSIS
AUGUST 31, 2015
5
This section of Westlake Academy's (the Academy) annual financial report presents our discussion and
analysis of the Academy's financial performance during the fiscal year ended August 31, 2015. Please
read it in conjunction with the Academy's financial statements, which follow this section.
FINANCIAL HIGHLIGHTS
• On the government-wide financial statements, the assets of the Academy exceeded liabilities by
$1,356,312 (Net Position). This is an increase of $633,864 for the year ended August 31, 2015,
exclusive of the cumulative effect of change in accounting principle ($217,601).
• The Academy had $8,598,261 in expenses related to governmental activities, of which $3,418,534 of
these expenses were offset by program-specific charges for services or grants and contributions.
This is a total expense increase of $845,560 from the prior year.
• The General Fund reported a fund balance this year of $1,482,157, an increase of $457,640 from the
prior year.
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of three parts: management’s discussion and analysis (this section), basic
financial statements, and required supplementary information. The basic financial statements present
different views of Academy:
• The first two statements are government-wide financial statements that provide both long-
term and short-term information about the Academy's overall financial status.
• The remaining statements are fund financial statements that focus on individual parts of the
government, reporting the Academy’s operations in more detail than the government-wide
statements.
• The governmental funds statements tell how general government services were financed in
the short term as well as what remains for future spending.
• Fiduciary fund statements provid e information about the financial relationships in which the
District acts solely as a trustee or agent for the benefit of others, to whom the resources in
question belong.
The financial statements also include notes (starting on page 17) that explain some of the information in
the financial statements and provide more detailed data. The statements are followed by a section of
required supplementary information that further explains and supports the information in the financial
statements.
The combining statements for nonmajor funds contain even more information about the Academy's
individual funds.
Figure A-1 summarizes the major features of the Academy's financial statements, including the
portion of the Academy government they cover and the types of information they contain. The
remainder of this overview section of managem ent's discussion and analysis explains the structure
and contents of each of the statements.
Government-wide Statements
The government-wide statements beginning on page 12, report information about the Academy as a
whole using accounting methods similar to those used by private-sector companies. Its primary
objecti ve is to show whether the Academy is better or worse off as a result of the year's activities.
The statement of net position includes all of the Academy's assets and liabilities. The facilities used in
the Academy’s operations are included in the Town of Westlake’s financial statements.
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WESTLAKE ACADEMY
(A COMPONENT UNIT OF THE TOWN OF WESTLAKE)
MANAGEMENT’S DISCUSSION AND ANALYSIS
AUGUST 31, 2015
6
All of the current year's revenues and expenses are accounted for in the statement of activities regardless
of when cash is received or paid.
The Academy's revenue is divided into those provided by outside parties who share the costs of
some programs, such as payments received from extracurri cular activities and grants provided by
the U.S. Department of Education to assist children with disabilities (program revenue), and general
revenue provided by donations from the public or by Texas Education Agency (TEA) in equalization
funding processes (general revenue). All the Academy's assets are reported whether they serve the
current year or future years. Liabilities are considered regardless of whether they must be paid in the
current or future years.
Scope
Entire
government(except
fiduciary funds) and the
academy's component
units
Activities of the Academy
that are not proprietary or
fiduciary
Instances in which the
Academy is the trustee or
agent for someone else's
resources
Required
Financial
Statements
Statement of Net
Position, Statement of
Activities
Balance Sheet, Statement
of Revenues,
Expenditures and Changes
in Fund Balances
Statement of Fiduciary
Net Position, Statement of
Changes in Fiduciary Net
Position
Accounting basis
and measurement
focus
Accrual accounting and
economic resources
focus
Modified accrual
accounting and current
financial resources focus
Accrual accounting and
economic resources focus
Types of
accountability
information
All assets and liabilities
both financial and
capital, short-term and
long-term
Only assets expected to be
used up and liabilities that
become due during the
year or soon thereafter.
No capital assets included.
All assets and liabilities
both short-term and long-
term; the Academy's funds
do not currently include
capital assets, although
they can.
Types of
Inflow/outflow
Information
All revenues and
expenses during year,
regardless of when cash
is received or paid
Revenue for which cash is
received during or soon
after the end of the year,
expenditures when goods
or services have been
received and payment is
due during the year or
soon thereafter.
All revenues and expenses
during year, regardless of
when cash is received or
paid.
Type of Statement Government-wide Governmental Funds Fiduciary Funds
Figure A-1
Major features of the Academy's Government-wide and Fund Financial Statements
The t wo government-wide statements report the Academy's net position and how it has changed. Net
position-the difference between the Academy's assets and liabilities-is one way to measure the
Academy’s financial health or position.
• Over time, increases or decreases in the Academy's net position are an indicator of whether its
financial health is improving or deteriorating, respectively.
• To assess the overall health of the Academy, you need to consider additional non-financial factors
such as changes in the Academy’s average daily attendance and the condition of the Academy’s
facilities.
The government-wide financial statements of the Academy include the Governmental activities. Most of
the Academy's basic services are included here, such as instruction, curriculum and staff development,
extracurricular activities, maintenance, health services and general administration. State funds, donations
and grants finance most of these activities.
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WESTLAKE ACADEMY
(A COMPONENT UNIT OF THE TOWN OF WESTLAKE)
MANAGEMENT’S DISCUSSION AND ANALYSIS
AUGUST 31, 2015
7
Component Unit
The government-wide financial statements also present the activity of Westlake Academy Foundation, a
discretely presented component unit. The Foundation was organized exclusively for charitable and
educational purposes and provides funds to help support the Academy. During 2015, the Foundation
contributed $1,207,293 to the Academy to enhance educational opportunities.
Fund Financial Statements
The fund financial statements begin on page 14 and provide more detailed information about the
Academy's most significant funds, not the Academy as a whole. Funds are accounting devices that the
Academy uses to keep track of specific sources of funding and spending for particular purposes.
• Some funds are required by State law and by bond covenants.
• The Board of Trustees establishes other funds to control and manage money for particular
purposes or to show that it is properly using certain taxes and grants.
Below are the three types of funds. The Academy had only "Governmental Funds" and "Fiduciary Funds"
for the year ended August 31, 2015.
• Governmental funds-Most of the Academy's basic services are included in governmental funds,
which focus on (1) how cash and other financial assets that can readily be converted to cash flow
in and out and (2) the balances left at year-end that are available for spending. Consequently, the
governmental fund statements provide a detailed short-term view that helps you determine
whether there are more or fewer financial resources that can be spent in the near future to finance
the Academy's programs. Because this information does not encompass the additional long-term
focus of the government-wide statements, we provide additional information at the bottom of the
governmental funds statement, or on the subsequent page, that explain the relationship (or
differences) between them.
• Fiduciary fund-Some schools are the trustee, or fiduciary, for certain funds. It is also responsible
for other assets that-because of a trust arrangement-can be used only for the trust beneficiaries.
These schools are responsible for ensuring that the assets reported in these funds are used for
their intended purposes. All of these fiduciary activities are reported in a separate statement of
fiduciary net position and a statement of changes in fiduciary net position on page 16. These
activities are excluded from the school’s government-wide financial statements because they
cannot use these assets to finance their operations.
• Proprietary funds-(None at August 31, 2015). Services for which the Academy would charge
customers a fee are generally reported in proprietary funds. Proprietary funds, like the
government- wide statements, provide both long and short-term financial information.
Government-wide Financial Analysis
The following analysis focuses on the net position (Table A-1), sources of revenue (Figure A-2), and
changes in net position (Table A-2) of the Academy's governmental activities. The Academy's net position
was $1,356,312 at August 31, 2015.
As noted earlier, net position may serve over time as a useful indicator of a government's financial
position. Net position of the Academy's governmental activities increased from $940,049 to $1,356,312.
The net position was all considered unrestricted and can be used to finance day-to-day operations without
constraints established by debt covenants, enabling legislation, or other legal requirements.
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WESTLAKE ACADEMY
(A COMPONENT UNIT OF THE TOWN OF WESTLAKE)
MANAGEMENT’S DISCUSSION AND ANALYSIS
AUGUST 31, 2015
8
The governmental activities’ net position increased by 31 percent ($416,263). The change in net position
totaled $633,864 but was reduced by $217,601 as a result of the implementation of GASB Statement No.
68, “Accounting and Financial Reporting for Pensions”. The remaining increase was primarily due to the
following factors: (1) General Revenues increase of $946,927 consisting primarily of the additional state
funding received because of the increase in student enrollment as a result of the campus expansion. (2)
Program Revenues of $585,429 representing an increase of $116,227 for charges for services, $272,248
from operating grants and contributions (mainly an approximate $148,000 increase in Blacksmith program
contributions and $82,167 in federal grants), and $196,954 increase in capital grants and contributions due
to the addition of Phase I to the campus. (3) Total expenses increased by $845,560 with the largest
portion being attributed to an increase in instruction and instructional related services ($635,672) because
of staffing and supplies needed for the extra students and classroom supplies caused by the three
additional buildings/classrooms. Additionally, Instructional and school leadership ($191,449) increased
due to the addition of an Executive Principal for a complete school year (hired in March of FY 2013-2014)
and salary adjustments to other leadership positions during the fiscal year.
Table A-1
Westlake Academy’s Net Position
2015 2014 2015 2014
Current assets 1,765,669$ 1,273,842$ 1,599,765$ 1,595,428$
Total assets 1,765,669 1,273,842 1,599,765 1,595,428
Deferred outflows of resources 107,779 - - -
Current liabilities 91,957 96,415 18,308 18,252
Non-current liabilities 366,429 237,378 - -
Total liabilities 458,386 333,793 18,308 18,252
Deferred inflows of resources 58,750 - - -
Net position:
Restricted 142,156 - 62,024 65,256
Unrestricted 1,214,156 940,049 1,519,433 1,511,920
Total net position 1,356,312$ 940,049$ 1,581,457$ 1,577,176$
Governmental Activities Component Unit
Figure A-2
Westlake Academy
Sources of Revenue for Fiscal Year 2015
3.6%
24.7%
0.0%
62.9%
8.7%
Charges for Service
Operating Grants &
Contributions
Investment Earnings
State Funding
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WESTLAKE ACADEMY
(A COMPONENT UNIT OF THE TOWN OF WESTLAKE)
MANAGEMENT’S DISCUSSION AND ANALYSIS
AUGUST 31, 2015
9
Table A-2
Westlake Academy’s Change in Net Position
2015 2014 2015 2014
Revenues
Program revenues:
Charges for services 333,957$ 217,730$ -$ -$
Operating grants and
contributions 2,280,702 2,008,454 1,475,936 1,289,995
Capital grants and
contributions 803,875 606,921 - -
General revenues:
State aid and
formula grants 5,811,524 4,865,214 - -
Investment earnings 2,067 1,450 (36,714) 160,453
Total revenues 9,232,125 7,699,769 1,439,222 1,450,448
Expenses
Instruction 5,161,212 4,618,418
Instructional resources and
media services 99,680 80,944 - -
Curriculum and staff
development 222,498 148,356 - -
Instructional leadership 245,474 165,116
School leadership 719,639 608,548
Guidance, counseling, and
evaluation services 257,760 285,173 - -
Health services 76,136 70,730
Food service 51,946 36,796 - -
Extracurricular activities 181,269 181,075 - -
General administration 361,743 398,944 - -
Facilities maintenance and
operations 980,416 847,606 - -
Data processing services 117,250 193,142 - -
Community services 113,034 115,751 - -
Program/support services 1,434,941 1,251,731
Debt service - interest 10,204 2,102 - -
Total expenses 8,598,261 7,752,701 1,434,941 1,251,731
Change in net position 633,864 (52,932) 4,281 198,717
Beginning net position 940,049 992,981 1,577,176 1,378,459
Cumulative effect of change
in accounting principle (217,601)- - -
Ending net position 1,356,312$ 940,049$ 1,581,457$ 1,577,176$
Governmental Activities Component Unit Activities
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WESTLAKE ACADEMY
(A COMPONENT UNIT OF THE TOWN OF WESTLAKE)
MANAGEMENT’S DISCUSSION AND ANALYSIS
AUGUST 31, 2015
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Table A-3 (below) presents the cost of each of the Academy's largest functions as well as each function's
net cost (total cost less fees generated by the activities and intergovernmental aid). The net cost reflects
what was funded by state revenues as well as local tax dollars.
• The cost of governmental activities this year was $8,598,261.
• Some of the cost was paid by those who directly benefited from the programs, $333,957 and some
of the cost was paid through grants and contributions $3,084,577.
Table A-3
Total %Total %
Change Change
2015 2014 2014-15 2015 2014 2014-15
Instruction 5,161,212$ 4,618,418$ 12% 3,061,117$ 3,025,701$ 1%
School leadership 719,639 608,548 18% 471,586 361,707 30%
Guidance, counseling
and evaluation services 257,760 285,173 -10% 191,591 216,296 -11%
General administration 361,743 398,944 -9% 263,810 298,381 -12%
Facilities Maintenance
and operations 980,416 847,606 16% 677,749 588,684 15%
Data processing services 117,250 193,142 -39% 74,462 133,479 -44%
Total Cost of Services Net Cost of Services
General Fund Budgetary Highlights
• The General Fund year-end fund balance was $1,482,157 which was a $457,640 increase from
the prior year.
• Over the course of the year, the Academy revised its budget by increasing revenues by $253,127
primarily due to an increase in State funding with the final budgeted expenditures being increased
by $15,622 due to staffing reallocation/changes.
Economic Factors and Next Year’s Budget
General Fund revenues are budgeted to increase approximately 2% over FY 2014-2015 actual revenues.
The small increase is primarily due to the additional funds expected to be received by the State for the
increased student enrollment which will bring the Academy to its anticipated capacity at approximately
832.
Amounts available for appropriation in the General Fund budget are $7,851,667, an increase of 6%
($487,015) over the final FY 2014-2015 expenditures of $7,364,652.
• 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 services 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.
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WESTLAKE ACADEMY
(A COMPONENT UNIT OF THE TOWN OF WESTLAKE)
MANAGEMENT’S DISCUSSION AND ANALYSIS
AUGUST 31, 2015
11
• Additional supplies and material costs are associated with consumables that are used in the
classroom, maintenance of the campus, books, iPads, testing materials, furniture, and classroom
supplies.
• Other operating costs are associated with insurance, professional development, travel,
membership fees and dues, graduation expenses, and miscellaneous costs. Cost savings in this
category were shifted to Supplies and Materials.
If the FY 2015-16 budget estimates are realized the Academy’s General Fund’s budgetary fund balance
is expected to increase an estimated $89,960 by the close of FY 2016.
CONTACTING THE ACADEMY'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors
with a general overview of the Academy's finances and to demonstrate the Academy's accountability for
the money it receives. If you have questions about this report or need additional financial information,
contact the Academy/Town Finance Director, Debbie Piper, at 817-490-5712, or by writing to 3 Village
Circle, Suite 202, Westlake, Texas 76262.
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BASIC FINANCIAL STATEMENTS
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EXHIBIT A-1
WESTLAKE ACADEMY
STATEMENT OF NET POSITION
AUGUST 31, 2015
The Notes to Financial Statements are
an integral part of this statement.
12
Data
Control
Codes 1 4
Governmental Component
Activities Unit
ASSETS
1110 Cash and cash equivalents 1,317,764$ 652,294$
1120 Current investments 100 922,583
1240 Due from other governments 351,746 -
1290 Other receivables 14,574 22,973
1410 Prepaid expenses 81,485 1,915
1000 Total assets 1,765,669 1,599,765
DEFERRED OUTFLOWS OF RESOURCES
1705 Deferred outflows of resources - pensions 107,779 -
1700 Total deferred outflows of resources 107,779 -
LIABILITIES
2110 Accounts payable 86,859 17,558
2150 Payroll deductions and withholdings 5,098 -
2300 Unearned revenue - 750
Noncurrent liabilities:
2501 Due within one year 85,154 -
2502 Due in more than one year 89,219 -
2540 Net pension liability 192,056 -
2000 Total liabilities 458,386 18,308
DEFERRED INFLOWS OF RESOURCES
2605 Deferred inflows of resources - pensions 58,750 -
2600 Total deferred inflows of resources 58,750 -
NET POSITION
3890 Restricted for donor stipulations 142,156 62,024
3900 Unrestricted 1,214,156 1,519,433
3000 Total net position 1,356,312$ 1,581,457$
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EXHIBIT B-1
WESTLAKE ACADEMY
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED AUGUST 31, 2015
The Notes to Financial Statements are
an integral part of this statement.
13
1 3 4 5 6 9
Primary
Data Operating Capital Government
Control Charges for Grants and Grants and Governmental Component
Codes Expenses Services Contributions Contributions Activities Unit
PRIMARY GOVERNMENT:
Governmental Activities:
11 Instruction 5,161,212$ 118,245$ 1,481,440$ 500,410$ (3,061,117)$
12 Instructional resources and media services 99,680 1,013 15,953 32,908 (49,806)
13 Curriculum and staff development 222,498 2,465 87,811 - (132,222)
21 Instructional leadership 245,474 3,176 74,194 - (168,104)
23 School leadership 719,639 9,252 222,631 16,170 (471,586)
31 Guidance, counseling, and evaluation services 257,760 3,805 58,313 4,051 (191,591)
33 Health services 76,136 958 16,214 12,627 (46,337)
35 Food service 51,946 6,000 - 51,946 6,000
36 Extracurricular activities 181,269 159,732 25,350 38,510 42,323
41 General administration 361,743 13,235 73,003 11,695 (263,810)
51 Facilities maintenance and operations 980,416 12,911 174,002 115,754 (677,749)
53 Data processing services 117,250 1,503 23,994 17,291 (74,462)
61 Community services 113,034 1,662 27,797 2,513 (81,062)
71 Debt service - interest 10,204 - - - (10,204)
[TP] Total primary government:8,598,261$ 333,957$ 2,280,702$ 803,875$ (5,179,727) -
COMPONENT UNIT
IC Westlake Academy Foundation 1,434,941$ -$ 1,475,936$ -$ - 40,995
Data
Control
Codes General Revenues:
SF State aid-formula grants 5,811,524 -
IE Investment earnings 2,067 (36,714)
TR Total general revenues 5,813,591 (36,714)
CN Change in net position 633,864 4,281
NB Net position, beginning 940,049 1,577,176
PA Cumulative effect of change in accounting principle (217,601)-
NE Net position, ending 1,356,312$ 1,581,457$
Net (Expense) Revenue and
Changes in Net PositionProgram Revenues
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EXHIBIT C-1
WESTLAKE ACADEMY
BALANCE SHEET
GOVERNMENTAL FUNDS
AUGUST 31, 2015
The Notes to Financial Statements are
an integral part of this statement.
14
10 98
Data State Nonmajor Total
Control Textbook Governmental Governmental
Codes General Fund Funds Funds
ASSETS
1110 Cash and cash equivalents 1,125,781$ -$ 191,983$ 1,317,764$
1120 Current investments 100 - - 100
1240 Due from other governments 333,883 17,863 - 351,746
1260 Due from other funds 17,863 - - 17,863
1290 Other receivables 14,574 - - 14,574
1410 Prepaid expenditures 81,485 - - 81,485
1000 Total assets 1,573,686$ 17,863$ 191,983$ 1,783,532$
LIABILITIES AND FUND BALANCES
LIABILITIES:
2110 Accounts payable 86,431$ -$ 428$ 86,859$
2150 Payroll deductions and withholdings 5,098 - - 5,098
2170 Due to other funds - 17,863 - 17,863
2000 Total liabilities 91,529 17,863 428 109,820
FUND BALANCES:
3430 Nonspendable - prepaid items 81,485 - - 81,485
3490 Restricted for donor stipulations - - 142,156 142,156
3545 Committed for campus activities - - 49,399 49,399
3600 Unassigned 1,400,672 - - 1,400,672
3000 Total fund balances 1,482,157 - 191,555 1,673,712
4000 Total liabilities and fund balances 1,573,686$ 17,863$ 191,983$ 1,783,532$
Total fund balances governmental funds 1,673,712$
Amounts reported for governmental activities in the statement of net position are different because:
Capital leases payable are not due and payable in the current period and, therefore,
are not reported in the governmental funds financial statements.(174,373)
Included in the items related to debt is the Academy's proportionate share of the TRS
net pension liability ($192,056), a deferred resource inflow ($58,750) and a deferred
resource outflow of $107,779. The net effect is a decrease in net position. (143,027)
Net position of governmental activities 1,356,312$
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EXHIBIT C-2
WESTLAKE ACADEMY
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED AUGUST 31, 2015
The Notes to Financial Statements are
an integral part of this statement.
15
10 98
Data State Nonmajor Total
Control Textbook Governmental Governmental
Codes General Fund Funds Funds
REVENUES
5700 Local and intermediate sources 1,664,363$ -$ 526,266$ 2,190,629$
5800 State program revenues 6,141,189 33,588 6,703 6,181,480
5900 Federal program revenues - - 162,270 162,270
5020 Total revenues 7,805,552 33,588 695,239 8,534,379
EXPENDITURES
0011 Instruction 4,343,503 33,588 339,548 4,716,639
0012 Instructional resources and media services 67,933 - - 67,933
0013 Curriculum and staff development 165,308 - 57,213 222,521
0021 Instructional leadership 212,942 - 35,145 248,087
0023 School leadership 620,382 - 91,641 712,023
0031 Guidance, counseling, and evaluation services 255,193 - 93 255,286
0033 Health services 64,285 - - 64,285
0036 Extracurricular activities 122,974 - 19,825 142,799
0041 General administration 344,087 - 7,000 351,087
0051 Facilities maintenance and operations 865,719 - - 865,719
0053 Data processing services 100,757 - - 100,757
0061 Community services 111,620 - - 111,620
0071 Debt service - principal on long-term debt 79,745 - - 79,745
0072 Debt service - interest on long-term debt 10,204 - - 10,204
6030 Total expenditures 7,364,652 33,588 550,465 7,948,705
1100 EXCESS OF REVENUES
OVER EXPENDITURES 440,900 - 144,774 585,674
OTHER FINANCING SOURCES
7913 Capital lease proceeds 16,740 - - 16,740
Total other financing sources 16,740 - - 16,740
1200 NET CHANGE IN FUND BALANCES 457,640 - 144,774 602,414
0100 FUND BALANCES, BEGINNING 1,024,517 - 46,781 1,071,298
3000 FUND BALANCES, ENDING 1,482,157$ -$ 191,555$ 1,673,712$
Net change in fund balances 602,414$
Amounts reported for governmental activities in the Statement of Activities are different because:
Revenues in the statement of activities that do not provide current financial resources are
not reported as revenues in the governmental funds. This amount represents the reduction
in deferred inflows - unavailable resources at the fund level during the current year.(106,129)
Current year capital lease proceeds are other financing sources in the governmental funds
financial statements, but are shown as an increase in liabilities in the government-wide
financial statements. (16,740)
Current year principal payments on capital leases consume current resources, however,
these payments reduce liabilities in the government-wide financial statements.79,745
Implementation of GASB 68 required certain expenditures be de-expended and recorded as
deferred resource inflows. Contributions made after the measurement date caused the change
in net position to increase by $92,325. Contributions before the measurement date also caused
and increase in the change in net position of $12,082. The net share of the Academy's amount
of deferred inflows and outflows of resources decreased the net position by $29,833. This
amount is the net effect.74,574
Change in net position of governmental activities 633,864$
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EXHIBIT D-1
WESTLAKE ACADEMY
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
AUGUST 31, 2015
The Notes to Financial Statements are
an integral part of this statement.
16
Agency
Fund
ASSETS
Cash and cash equivalents 66,892$
Prepaid expenses 1,150
Total assets 68,042$
LIABILITIES
Due to student groups 68,042
Total liabilities 68,042$
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WESTLAKE ACADEMY
NOTES TO THE FINANCI AL STATEMENTS
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NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
Westlake Academy (the Academy), a blended component unit of the Town of Westlake (the
Town), is a Texas nonprofit Corporation under Chapter 12, Subchapter D of the Education Code
to provide education. The Board of Trustees (the Board) consists of six trustees and is appointed
by the Town's governing body. Currently, all members of the Board are members of the Town's
governing body. The Academy prepares its basic financial statements in conformity with generally
accepted accounting principles promulgated by the Governmental Accounting Standards Board
(the GASB) and other authoritative sources identified in Statement on Auditing Standards No. 69
of the American Institute of Certified Public Accountants; and it complies with the requirements of
the appropriate version of Texas Education Agency's Financial Accountability System Resource
Guide (the Resource Guide) and the requirements of contracts and grants of agencies from which
it receives funds.
The Board is appointed by the governing Council of the Town and it has the authority to make
decisions, appoint administrators and managers, and significantly influence operations. It also
has the primary accountability for fiscal matters. Therefore, the Academy is a financial reporting
entity as defined by the GASB in its Statement No.14, "The Financial Reporting Entity" as
modified by GASB Statements No. 39 and 61.
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. 14, 'The Financial Reporting Entity" as amended by GASB
Statement No. 39, "Determining Whether Certain Organizations Are Component Units" and
GASB Statement No. 61, "The Financial Reporting Entity Omnibus." GASB defines the reporting
entity as the primary government and those component units for which the primary government is
financially accountable. To be financially accountable, a voting majority of the component unit's
ruling body must be appointed by the primary government, and either (a) the primary government
must be able to impose its will, or (b) the primary government may potentially benefit financially or
be financially responsible for the component unit.
The Westlake Academy Foundation (the Foundation) is a 501(c)(3) nonprofit organization which
was established exclusively for the purpose of supporting the Academy. This includes fundraising
for and contributing raised funds to the Academy. The Foundation has been discretely presented
in the accompanying financial statements and reported in a separate column to emphasize that it
is legally separate from the Academy. See Note 12 for additional information relating to the
Foundation. Separate audited financial statements of the Foundation are available from the
Academy/Town Finance Director's office, 3 Village Circle, Suite 202, Westlake, Texas 76262.
Government-wide and Fund Financial Statements
The Statement of Net Position and the Statement of Activities are government-wide financial
statements. They report information on all of the Academy's nonfiduciary activities with most of
the interfund activities removed. Governmental activities include programs supported primarily by
state and federal grants, the Foundation, and the Town. The Academy has no business-type
activities that rely to a significant extent, on fees and charges for support.
Neither fiduciary funds nor component units that are fiduciary in nature are included.
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NOTES TO THE FINANCI AL STATEMENTS
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NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Government-wide and Fund Financial Statements – Continued
The Statement of Activities demonstrates how other people or entities that participate in programs
the Academy operates have shared in the payment of the direct costs. Direct expenses are those
that are clearly identifiable with a specific function or segment. The "charges for services" column
includes payments made by parties that purchase, use, or directly benefit from goods or services
provided by a given function or segment of the Academy. The primary example is school lunch
charges. The "grants and contributions" column includes amounts paid by organizations outside
the Academy to help meet the operational or capital requirements of a given function. Examples
include grants under the Elementary and Secondary Education Act. If revenue is not program
revenue, it is general revenue used to support all of the Academy's functions.
Interfund activities between governmental funds appear as due to/ due from on the Governmental
Fund Balance Sheet and as other resources and other uses on the Governmental Fund
Statement of Revenues, Expenditures and Changes in Fund Balance. All interfund transactions
between governmental funds are eliminated on the government-wide statements.
The fund financial statements provide reports on the financial condition and results of operations
for three fund categories: governmental, proprietary, and fiduciary. Since the resources in the
fiduciary funds cannot be used for Academy operations, they are not included in the government-
wide statements. The Academy considers some governmental funds major and reports their
financial condition and results of operations in a separate column.
Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenue is recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.
Grants and similar items are recognized as revenue as soon as all eligibility requirements
imposed by the provider have been met.
Governmental fund financial statements use the current financial resources measurement focus
and the modified accrual basis of accounting. With this measurement focus, only current assets,
current liabilities and fund balances are included on the balance sheet. Operating statements of
these funds present net increases and decreases in current assets (i.e. revenues and other
financing sources and expenditures and other financing uses).
The modified accrual basis of accounting recognizes revenues in the accounting period in which
they become both measurable and available and it recognizes expenditures in the accounting
period in which the fund liability is incurred, if measurable. The expenditures related to certain
compensated absences and claims and judgments are recognized when the obligations are
expected to be liquidated with expendable available financial resources. The Academy considers
all revenues available if they are collectible within 60 days after year-end.
Miscellaneous revenues are recorded as revenue when received in cash because they are
generally not measurable until actually received. Investment earnings are recorded as earned,
since they are both measurable and available.
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NOTES TO THE FINANCI AL STATEMENTS
19
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Measurement Focus, Basis of Accounting and Financial Statement Presentation – Continued
Grant funds are considered to be earned to the extent of expenditures made under the provisions
of the grant. Accordingly, when such funds are received, they are recorded as deferred inflows
until related and authorized expenditures have been made. If balances have not been expended
by the end of the project period, grantors sometimes require the Academy to refund all or part of
the unused amount.
The fiduciary funds are accounted for on a flow of economic resources measurem ent focus and
utilize the accrual basis of accounting. This basis of accounting recognizes revenues in the
accounting period in which they are earned and become measurable and expenses in the
accounting period in which they are incurred and become measurable. The Academy applies all
GASB pronouncements. With this measurement focus, all assets and all liabilities associated with
the operation of these funds are included on the Fund Statement of Net Position. The net position
is segregated into restricted net position, and unrestricted net position.
Fund Accounting
The Academy reports the following major governmental funds:
The General Fund is the Academy's primary operating fund. It accounts for all financial
resources except those required to be accounted for in another fund.
The State Textbook Fund is used to account, on a project basis, for funds awarded to
school districts under the textbook allotment.
Additionally, the Academy reports the following fund types:
Nonmajor Governmental Funds:
These nonmajor Special Revenue Funds account for resources restricted to, or designated
for, specific purposes by the Academy or a grantor in a Special Revenue Fund. Most federal
and some state financial assistance is accounted for in a Special Revenue Fund and
sometimes unused balances must be returned to the grantor at the close of specified project
period.
Fiduciary Funds:
Agency Funds account for resources held for others in a custodial capacity. Fiduciary funds
are reported in the fiduciary fund financial statements. However, because these assets are
not available to support Academy programs, these funds are not included in the government-
wide statements. The Academy's Agency Fund is a Student Activity Fund.
Other Accounting Policies
1. The State of Texas (the State) has created a state minimum personal leave program
consisting of five days per year personal leave with no limit on accumulation and
transferability among districts is provided for employees in accordance with 19 TAC
§153.1021(d)(8). Each District's local Board is required to establish a personal leave plan. It
is the Academy's policy to permit employees to accumulate earned but unused state and
local personal leave. There is no liability for unpaid accumulated personal leave since the
Academy does not have a policy to pay any amounts when employees separate from service
with the Academy.
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NOTES TO THE FINANCI AL STATEMENTS
20
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Other Accounting Policies – Continued
2. The Data Control Codes refer to the account code structure prescribed by the Texas
Education Agency (TEA) in the Financial Accountability System Resource Guide. TEA
requires the Academy to display these codes in the financial statements filed with the Agency
in order to insure accuracy in building a statewide database for policy development and
funding plan.
3. When an expenditure is incurred for purposes for which both restricted or unrestricted fund
balance is available, the Academy considers restricted funds to have been spent first. When
an expenditure is incurred for which committed, assigned, or unassigned fund balances are
available, the Academy considers amounts to have been spent first out of committed funds,
then assigned funds, and finally unassigned funds.
4. For purposes of the statement of cash flows for proprietary and similar fund types, the
Academy considers highly liquid investments to be cash equivalents if they have a maturity of
three months or less when purchased.
5. The governmental fund financial statements present fund balances based on classifications
that comprise a hierarchy that is based primarily on the extent to which the Academy is
bound to honor constraints on the specific purposes for which amounts in the respective
governmental funds can be spent. The classifications used in the governmental fund financial
statements are as follows:
• Nonspendable: This classification includes amounts that cannot be spent because they
are either (a) not in spendable form or (b) are legally or contractually required to be
maintained intact.
• Restricted: This classification includes amounts for which constraints have been placed
on the use of the resources either (a) externally imposed by creditors, grantors,
contributors, or laws or regulations of other governments, or (b) imposed by law through
constitutional provisions or enabling legislation.
• Committed: This classification includes amounts that can be used only for specific
purposes pursuant to constraints imposed by board resolution of the School Board, the
Academy's highest level of decision making authority. These amounts cannot be used for
any other purpose unless the School Board removes or changes the specified use by
taking the same type of action that was employed when the funds were initially
committed. This classification also includes contractual obligations to the extent that
existing resources have been specifically committed for use in satisfying those
contractual requirements.
• Assigned: This classification includes amounts that are constrained bv the Academy's
intent to be used for a specific purpose but are neither restricted nor committed. This
intent can be expressed by the School Board.
• Unassigned: This classification includes the residual fund balance for the General Fund.
The unassigned classification also includes negative residual fund balance of any other
governmental fund that cannot be eliminated by offsetting of assigned fund balance
amounts.
6. Net position represents the difference between assets and liabilities. Net position is reported
as restricted when there are limitations imposed on its use either though the enabling
legislations adopted by the Academy or through external restrictions imposed by creditors,
grantors of laws or regulations of other governments.
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NOTES TO THE FINANCI AL STATEMENTS
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NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Other Accounting Policies – Continued
7. The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect certain reported amounts and disclosures. Accordingly, actual results
could differ from those estimates.
8. Sometimes the Academy will fund outlays for a particular purpose from both restricted (e.g.
grant proceeds) and unrestricted resources. In order to calculate the amounts to report as
restricted net position and unrestricted net position in the government-wide financial
statements, a flow assumption must be made about the order in which the resources are
considered to be applied. It is the Academy's policy to consider restricted net position to have
been depleted before unrestricted net position is applied.
NOTE 2. CASH AND INVESTMENTS
The funds of the Academy must be deposited and invested under the terms of a contract, contents of
which are set out in the Depository Contract Law. The depository bank places approved pledged
securities for safekeeping and trust with the Academy's agent bank in an amount sufficient to protect
Academy funds on a day-to-day basis during the period of the contract. The pledge of approved
securities is waived only to the extent of the depository bank's dollar amount of Federal Deposit
Insurance Corporation (FDIC) insurance.
At August 31, 2015, the carrying amount of the Academy's deposits (cash, certificates of deposit, and
interest-bearing savings accounts included in temporary investments), including $66,892 recorded in
the Agency fund, was $1,384,656 and the bank balance was $1,690,539. The carrying amount of the
Foundation’s deposits was $652,294 as of August 31, 2015 and the bank balance was $500,680. The
District cash deposits at August 31, 2015 and during the year then ended was entirely covered by
FDIC insurance or by pledged collateral held by the Academy’s agent bank in the Town of Westlake’s
name.
The following is disclosed regarding the combined balances on the date of highest deposit:
a. Depository: First Financial Bank
b. The market value of securities pledged to the Town (inclusive of the Academy) as of the date
of the highest combined balance on deposit was $24,419,899.
c. The highest combined balances of cash, savings, and time deposit accounts amounted to
$17,380,657 ($1,812,674 of which belonged to the Academy) on November 4, 2014.
d. Total amount of FDIC coverage at the time of the highest combined balance was $250,000.
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NOTES TO THE FINANCI AL STATEMENTS
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NOTE 2. CASH AND INVESTMENTS – CONTINUED
The Public Funds Investment Act (Government Code Chapter 2256) contains specific provisions in
the areas of investment practices, management reports and establishment of appropriate policies.
Among other things, it requires the Academy to adopt, implement, and publicize an investment policy.
That policy must address the following areas: (1) safety of principal and liquidity, (2) portfolio
diversification, (3) allowable investments, (4) acceptable risk levels, (5) expected rates of return, (6)
maximum allowable stated maturity of portfolio investments, (7) maximum average dollar-weighted
maturity allowed based on the stated maturity date for the portfolio, (8) investment staff quality and
capabilities, and (9) bid solicitation preferences for certificates of deposit. Statutes authorize the
Academy to invest in (1) obligations of the U. S. Treasury, certain U. S. agencies, and the State of
Texas; (2) certificates of deposit, (3) certain municipal securities, (4) money market savings accounts,
(5) repurchase agreements, (6) bankers acceptances, (7) mutual funds, (8) investment pools, (9)
guaranteed investment contracts, and (10) common trust funds. The Act also requires the Academy
to have independent auditors perform test procedures related to investment practices as provided by
the Act. The Academy is in substantial compliance with the requirements of the Act and with local
policies.
The carrying value of the Academy’s investments at August 31, 2015, was $100, which were
deposited in TexPool (a Texas Local Government Investment Pool). Local government investment
pools operate in a manner consistent with the SEC's Rule 2a7 of the Investment Company Act of
1940. Local government investment pools use amortized cost rather than market value to report net
assets to compute share prices. Accordingly, the fair value of the position of these pools is the same
as the value of the shares in each pool.
TexPool is organized in conformity with the Interlocal Cooperation Act, Chapter 791 of the Texas
Government Code, and the Public Funds Investment Act. Chapter 2256 of the Texas Government
Code. The Texas Comptroller of Public Accounts is the sole officer, director and shareholder of the
Texas Treasury Safekeeping Trust Company, which is authorized to operate TexPool. In addition, the
TexPool Advisory Board advises on TexPool’s Investment Policy. This Board is composed equally of
participants in TexPool and other persons who do not have a business relationship with TexPool who
are qualified to advise TexPool. TexPool is subject to annual review by an independent auditor
consistent with the Public Funds Investment Act. In addition, TexPool is subject to review by the State
Auditor's office and by the Internal Auditor of the Comptroller's office.
The Foundation’s entire investment balance as of August 31, 2015 consisted of marketable equity
securities with a cost of $917,135 and a fair value of $922,583.
In compliance with the Public Funds Investment Act, the Academy has adopted a deposit and
investment policy. That policy does address the following risks:
1 Custodial Credit Risk-Deposits: This is the risk that in the event of bank failure, the Academy's
deposits may not be returned to it. As of August 31, 2015, the Academy’s deposits with
financial institutions in excess of federal depository insurance were fully collateralized by FDIC
insurance and pledged collateral held by the Academy’s agent bank in the Town of Westlake’s
name.
2. Custodial Credit Risk-Investments: This is the risk that, in the event of the failure of the
counterparty, the Academy will not be able to recover the value of its investments or collateral
securities that are in the possession of an outside party. Investments are subject to custodial
credit risk only if they are evidenced by securities that exist in physical or book entry form. Thus
positions in external investment pools are not subject to custodial credit risk because they are
not evidenced by securities that exist in physical or book entry form.
3. Other Credit Risk: There is the risk that an issuer or other counterparty to an investment will not
fulfill its obligations. To minimize credit risk, TexPool invests only in investments authorized
under the Public Funds Investment Act. As of August 31, 2015, TexPool’s investments credit
quality rating was AAAm (Standard & Poor's).
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NOTE 3. DUE FROM OTHER GOVERNMENTS
The Academy participates in a variety of state and local programs from which it receives grants to
partially or fully finance certain activities. Amounts due from federal and local governments as of
August 31, 2015, are summarized below.
State
Fund Entitlements Local Total
General 333,870$ 13$ 333,883$
State Textbook 17,863 - 17,863
Total 351,733$ 13$ 351,746$
NOTE 4. DONATED USE OF FACILITIES
The Academy currently operates in facilities that are capital assets of the Town. The Academy is not
required by the Town to pay rent for the use of those facilities; however, the Academy recognizes the
value of the use received, $803,875, in the government-wide statement of activities as capital grants
and contributions and as expense allocated to the various functions.
NOTE 5. INTERFUND BALANCES AND ACTIVITIES
Interfund balances at August 31, 2015, consisted of the following individual fund balances:
Due to Fund Due from Fund Amount Purpose
General fund State Textbook 17,863$ Reimburse program disbursements
Total 17,863$
The Academy had no interfund transfers for the year ending August 31, 2015.
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NOTE 6. REVENUE FROM LOCAL AND INTERMEDIATE SOURCES
During the current year, revenues from local and intermediate sources as reported on Exhibit C-2
of the fund statements consisted of the following:
Non-major
General Fund Funds Total
Gifts and bequests 1,412,865$ 503,312$ 1,916,177$
Interest 2,067 - 2,067
Food sales 6,000 - 6,000
Campus activities - 22,954 22,954
Parking/transportation 53,416 - 53,416
Athletics 81,528 - 81,528
Miscellaneous 108,487 - 108,487
Total 1,664,363$ 526,266$ 2,190,629$
NOTE 7. DEFINED BENEFIT PENSION PLAN
Plan Description
The Academy participates in a cost-sharing multiple-employer defined benefit pension that has a
special funding situation. The plan is administered by the Teacher Retirement System of Texas
(TRS). TRS’s defined benefit pension plan is established and administered in accordance with
the Texas Constitution, Article XVI, Section 67 and Texas Government Code, Title 8, Subtitle C.
The pension trust fund is a qualified pension trust under Section 401(a) of the Internal Revenue
Code. The Texas Legislature establishes benefits and contribution rates within the guidelines of
the Texas Constitution. The pension’s Board of Trustees does not have the authority to establish
or amend benefit terms.
All employees of public, state-supported educational institutions in Texas who are employed for
one-half or more of the standard work load and who are not exempted from membership under
Texas Government Code, Title 8, Section 822.002 are covered by the system.
Pension Plan Fiduciary Net Position
Detailed information about the Teacher Retirement System’s fiduciary net position is available in
a separately-issued Comprehensive Annual Financial Report that includes financial statements
and required supplementary information. That report may be obtained on the Internet at
http://www.trs.state.tx.us/about/documents/cafr.pdf#CAFR; by writing to TRS at 1000 Red River
Street, Austin, TX, 78701-2698; or by calling (512) 542-6592.
Benefits Provided
TRS provides service and disability retirement, as well as death and survivor benefits, to eligible
employees (and their beneficiaries) of public and higher education in Texas. The pension formula
is calculated using 2.3 percent (multiplier) times the average of the five highest annual creditable
salaries times years of credited service to arrive at the annual standard annuity except for
members who are grandfathered, the three highest annual salaries are used. The normal service
retirement is at age 65 with 5 years of credited service or when the sum of the member’s age and
years of credited service equals 80 or more years.
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NOTE 7. DEFINED BENEFIT PENSION PLAN – CONTINUED
Benefits Provided – Continued
Early retirement is at age 55 with 5 years of service credit or earlier than 55 with 30 years of
service credit. There are additional provisions for early retirement if the sum of the member’s age
and years of service credit total at least 80, but the member is less than age 60 or 62 depending
on date of employment, or if the member was grandfathered in under a previous rule. There are
no automatic post-employment benefit changes; including automatic COLAs. Ad hoc post-
employment benefit changes, including ad hoc COLAs can be granted by the Texas Legislature
as noted in the Plan description in (A) above.
Contributions
Contribution requirements are established or amended pursuant to Article 16, section 67 of the
Texas Constitution which requires the Texas legislature to establish a member contribution rate of
not less than 6% of the member’s annual compensation and a state contribution rate of not less
than 6% and not more than 10% of the aggregate annual compensation paid to members of the
system during the fiscal year. Texas Government Code section 821.006 prohibits benefit
improvements, if as a result of the particular action, the time required to amortize TRS’ unfunded
actuarial liabilities would be increased to a period that exceeds 31 years, or, if the amortization
period already exceeds 31 years, the period would be increased by such action.
Employee contribution rates are set in state statute, Texas Government Code 825.402. Senate
Bill 1458 of the 83rd Texas Legislature amended Texas Government Code 825.402 for member
contributions and established employee contribution rates for fiscal years 2014 thru 2017. It also
added a 1.5% contribution for employers not paying Old Age Survivor and Disability Insurance
(OASDI) on certain employees effective for fiscal year 2015 as discussed in Note 1 of the TRS
2014 CAFR. The 83rd Texas Legislature, General Appropriations Act (GAA) established the
employer contribution rates for fiscal years 2014 and 2015.
Contribution Rates
2014 2015
Member 6.4% 6.7%
Non-Employer Contributing Entity (State) 6.8% 6.8%
Employers 6.8% 6.8%
2014 Employer Contributions $ 18,228
2014 Member Contributions $ 320,575
2014 NECE On-behalf Contributions $ 280,876
Contributors to the plan include members, employers and the State of Texas as the only non-
employer contributing entity. The State is the employer for senior colleges, medical schools and
state agencies including TRS. In each respective role, the State contributes to the plan in
accordance with state statutes and the General Appropriations Act (GAA).
As the non-employer contributing entity for public education and junior colleges, the State of
Texas contributes to the retirement system an amount equal to the current employer contribution
rate times the aggregate annual compensation of all participating members of the pension trust
fund during that fiscal year reduced by the amounts described below which are paid by the
employers. Employers (public school, junior college, other entities or the State of Texas as the
employer for senior universities and medical schools) are required to pay the employer
contribution rate in the following instances:
• On the portion of the member's salary that exceeds the statutory minimum for members
entitled to the statutory minimum under Section 21.402 of the Texas Education Code.
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NOTE 7. DEFINED BENEFIT PENSION PLAN – CONTINUED
Contributions – Continued
• During a new member’s first 90 days of employment.
• When any part or all of an employee’s salary is paid by federal funding sources, a
privately sponsored source, from non-educational and general, or local funds.
• When the employing district is a public junior college or junior college district, the
employer shall contribute to the retirement system an amount equal to 50% of the state
contribution rate for certain instructional or administrative employees; and 100% of the
state contribution rate for all other employees.
In addition to the employer contributions listed above, when employing a retiree of the Teacher
Retirement System the employer shall pay both the member contribution and the state
contribution as an employment after retirement surcharge.
Actuarial Assumptions
The total pension liability in the August 31, 2014 actuarial valuation was determined using the
following actuarial assumptions:
Valuation Date August 31, 2014
Actuarial Cost Method Individual Entry Age Normal
Amortization Method Level Percentage of Payroll, Open
Remaining Amortization Period 30 years
Asset Valuation Method 5 year Market Value
Discount Rate 8.00%
Long-term expected Investment Rate of Return* 8.00%
Salary Increases* 4.25% to 7.25%
Weighted-Average at Valuation Date 5.55%
Payroll Growth Rate 3.50%
*Includes Inflation of 3%
The actuarial methods and assumptions are primarily based on a study of actual experience for
the four year period ending August 31, 2010 and adopted on April 8, 2011. With the exception of
the post-retirement mortality rates for healthy lives and a minor change to the expected retirement
age for inactive vested members stemming from the actuarial audit performed in the summer of
2014, the assumptions and methods are the same as used in the prior valuation. When the
mortality assumptions were adopted in 2011 they contained a significant margin for possible
future mortality improvement. As of the date of the valuation there has been a significant erosion
of this margin to the point that the margin has been eliminated. Therefore, the post-retirement
mortality rates for current and future retirees was decreased to add additional margin for future
improvement in mortality in accordance with the Actuarial Standards of Practice No. 35.
Discount Rate
The discount rate used to measure the total pension liability was 8.0%. There was no change in
the discount rate since the previous year. The projection of cash flows used to determine the
discount rate assumed that contributions from plan members and those of the contributing
employers and the non-employer contributing entity are made at the statutorily required rates.
Based on those assumptions, the pension plan’s fiduciary net position was projected to be
available to make all future benefit payments of current plan members.
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NOTE 7. DEFINED BENEFIT PENSION PLAN – CONTINUED
Discount Rate
Therefore, the long-term expected rate of return on pension plan investments was applied to all
periods of projected benefit payments to determine the total pension liability. The long-term rate
of return on pension plan investments is 8%. The long-term expected rate of return on pension
plan investments was determined using a building-block method in which best-estimates ranges
of expected future real rates of return (expected returns, net of pension plan investment expense
and inflation) are developed for each major asset class. These ranges are combined to produce
the long-term expected rate of return by weighting the expected future real rates of return by the
target asset allocation percentage and by adding expected inflation. Best estimates of geometric
real rates of return for each major asset class included in the Systems target asset allocation as
of August 31, 2014 are summarized below:
Long-term
Expected
Portfolio
Target Real Return Real Rate of
Asset Class Allocation Geometric Basis Return*
Global Equity
U.S.18%7.0% 1.4%
Non-U.S. Developed 13%7.3% 1.1%
Emerging Markets 9%8.1% 0.9%
Directional Hedge Funds 4%5.4% 0.2%
Private Equity 13%9.2% 1.4%
Stable Value
U.S. Treasuries 11%2.9% 0.3%
Absolute Return 0%4.0% 0.0%
Stable Value Hedge Funds 4%5.2% 0.2%
Cash 1%2.0% 0.0%
Real Return
Global Inflation Linked Bonds 3%3.1% 0.0%
Real Assets 16%7.3% 1.5%
Energy and Natural Resources 3%8.8% 0.3%
Commodities 0%3.4% 0.0%
Risk Parity
Risk Parity 5%8.9% 0.4%
Alpha 1.0%
Total 100.0%8.7%
* The Expected Contribution to Returns incorporates the volatility drag
resulting from the conversion between Arithmetic and Geometric
mean returns.
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NOTE 7. DEFINED BENEFIT PENSION PLAN – CONTINUED
Discount Rate Sensitivity Analysis
The following schedule shows the impact of the Net Pension Liability if the discount rate used
was 1% less than and 1% greater than the discount rate that was used (8%) in measuring the
2014 Net Pension Liability.
1% Decrease in
Discount Rate
(7.0%)
Discount Rate (8.0%) 1% Increase in
Discount Rate
(9.0%)
Academy’s
proportionate share of
the net pension
liability
$343,191
$192,056
$79,034
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferr ed
Inflows of Resources Related to Pensions
At August 31, 2014, the Academy reported a liability of $192,056 for its proportionate share of the
TRS’s net pension liability. This liability reflects a reduction for State pension support provided to
the Academy. The amount recognized by the Academy as its proportionate share of the net
pension liability, the related State support, and the total portion of the net pension liability that was
associated with the Academy were as follows:
Academy’s Proportionate share of the collective net pension liability $ 192,056
State’s proportionate share that is associated with Academy 2,965,583
Total $ 3,157,639
The net pension liability was measured as of August 31, 2014 and the total pension liability used
to calculate the net pension liability was determined by an actuarial valuation as of that date.
The employer’s proportion of the net pension liability was based on the employer’s contributions
to the pension plan relative to the contributions of all employers to the plan for the period
September 1, 2013 thru August 31, 2014.
At August 31, 2014 the employer’s proportion of the collective net pension liability was
0.0007190%. Since this is the first year of implementation, the Academy does not have the
proportion measured as of August 31, 2013. The Notes to the Financial Statements for August
31, 2014 for TRS stated that the change in proportion was immaterial and, therefore, disregarded
this year.
There were no changes of assumptions or other inputs that affected measurement of the total
pension liability during the measurement period.
There were no changes of benefit terms that affected measurement of the total pension liability
during the measurement period.
There was a change in employer contribution requirements that occurred after the measurement
date of the net pension liability and the employer’s reporting date. A 1.5% contribution for
employers not paying Old Age Survivor and Disability Insurance (OASDI) on certain employees
went into law effective 09/01/2013. The amount of the expected resultant change in the
employer’s proportion cannot be determined at this time.
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NOTE 7. DEFINED BENEFIT PENSION PLAN – CONTINUED
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions – Continued
For the year ended August 31, 2014, the Academy recognized pension expense of $274,163 and
revenue of $274,163 for support provided by the State.
At August 31, 2014, the Academy reported its proportionate share of the TRS’s deferred outflows
of resources and deferred inflows of resources related to pensions from the following sources:
The net amounts of the employer’s balances of deferred outflows and inflows of resources related to
pensions will be recognized in pension expense as follows:
NOTE 8. HEALTH CARE COVERAGE
During the period ended August 31, 2015, employees of the Academy who met minimum eligibility
requirements were covered by a state-wide health care plan, TRS Active Care. The Academy's
participation in this plan is renewed annually. The Academy paid into the Plan $325 per month per
employee and $250 per month when the employee works less than 30 hours per week if eligible to
enroll in TRS Active Care. Employees, at their option, pay premiums for any coverage above these
amounts as well as for dependent coverage.
The Teacher Retirement System (TRS) manages TRS Active Care. The medical plan is administered
by Aetna. Medco Health administers the prescription drug plan. The latest financial information on the
state-wide plan may be obtained by writing to the TRS Communications Department, 1000 Red River
Street, Austin, Texas 78701, by calling the TRS Communications Department at 1-800-223-8778, or
by downloading the report from the TRS Internet website, www.trs.state.tx.us, under the TRS
Publications heading.
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual economic experience $ 2,970 $ -
Changes in actuarial assumptions $12,484 $ -
Difference between projected and actual investment earnings $ - $ (58,700)
Changes in proportion and difference between the employer’s
contributions and the proportionate share of contributions
$ - $ (50)
Contributions paid to TRS subsequent to the measurement date
$ 92,325
$ -
Total $107,779 $ (58,750)
Year ended August 31:
Pension Expense
(Income) Amount
2016 $ 80,249
2017 (12,076)
2018 (12,076)
2019 (12,076)
2020 2,599
Thereafter 2,409
Total $ 49,029 DR
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NOTES TO THE FINANCI AL STATEMENTS
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NOTE 9. RETIREE HEALTH PLAN
Plan Description
Westlake Academy contributes to the Texas Public School Retired Employees Group Insurance
Program (TRS-Care), a cost-sharing multiple-employer defined benefit postemployment health
care plan administered by the Teacher Retirement System of Texas. TRS-Care provides health
care coverage for certain persons (and their dependents) who retired under the Teacher
Retirement System of Texas. The statutory authority for the program is Texas Insurance Code,
Chapter 1575. Section 1575.052 grants the TRS Board of Trustees the authority to establish and
amend basic and optional group insurance coverage for participants. The Teacher Retirement
System of Texas issues a publicly available financial report that includes financial statements and
required supplementary information for TRS-Care. That report may be obtained by visiting the
TRS Web site at www.trs.state.tx.us under the TRS Publications heading, by calling the TRS
Communications Department at 1-800-223-8778, or by writing to the Communications
Department of the Teacher Retirement System of Texas, 1000 Red River Street, Austin, Texas
78701.
Funding Policy
Contribution requirements are not actuarially determined but are legally established each
biennium by the Texas Legislature. Texas Insurance Code, Sections 1575.202, 203, and 204
establish state, active employee, and public school contributions, respectively. Funding for free
basic coverage is provided by the program based upon public school district payroll. Per Texas
Insurance Code, Chapter 1575, the public school contribution may not be less than 0.25% or
greater than 0.75% of the salary of each active employee of the public school. Funding for
optional coverage is provided by those participants selecting the optional coverage. Contribution
rates and amounts are shown in the table below for fiscal years 2013 – 2015.
Year Rate Amount Rate Amount Rate Amount
2015 0.65% 31,100$ 1.00% 43,124$ 0.55% 26,314$
2014 0.65% 28,314$ 1.00% 42,028$ 0.55% 23,958$
2013 0.65% 23,824$ 1.00% 36,652$ 0.55% 20,159$
Active Member State School District
Contribution Rates
Medicare, Part D - On-behalf Payments
The Medicare Prescription Drug, Improvement, and Modernization Act of 2003, which was
effective January 1, 2006, established prescription drug coverage for Medicare beneficiaries
known as Medicare Part D. One of the provisions of Medicare, Part D allows for the Texas Public
School Retired Employee Group Insurance Program (TRS-Care) to receive retiree drug subsidy
payments from the federal government to offset certain prescription drug expenditures for eligible
TRS-Care participants. These on-behalf payments of $18,231, $11,605, and $9,085 were
recognized for the years ended August 31, 2015, 2014 and 2013, respectively, as equal revenues
and expenditures.
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NOTES TO THE FINANCI AL STATEMENTS
31
NOTE 10. RISK MANAGEMENT
The Academy is exposed to various risk of loss related to torts, theft of, damage to and destruction of
assets; errors and omissions; injuries to employees; and natural disasters for which the Academy
carries commercial insurance. There were no settlements exceeding insurance coverage in the
current fiscal year.
Litigation and Contingencies
The Academy is a party to various legal actions none of which is believed by administration to have a
material effect on the financial condition of the Academy. Accordingly, no provision for losses has
been recorded in the accompanying combined financial statements for such contingencies.
The Academy participates in state and federal grant programs which are governed by various rules
and regulations of the grantor agencies. Costs charged to the respective grant programs are subject
to audit and adjustment by the grantor agencies; therefore, to the extent that the Academy has not
complied with the rules and regulations governing the grants, if any, refunds of any money received
may be required and the collectability of any related receivable at August 31, 2015 may be impaired.
In the opinion of the Academy, there are no significant contingent liabilities relating to compliance with
the rules and regulations governing the respective grants; therefore, no provision has been recorded
in the accompanying combined financial statements for such contingencies.
NOTE 11. CAPITAL LEASES
The Academy has entered into lease agreements as lessee for financing the acquisition of computer
equipment and software. The lease agreements qualify as capital leases for accounting purposes,
and therefore, have been recorded at the present value of the future minimum lease payments as of
the inception date.
Equipment and software with a historical cost of $255,749 was under capital lease at August 31,
2015. Because the cost of the individual items was below the Academy’s capitalization threshold, the
entire cost was recorded as expense.
The following schedule shows the future minimum lease payments under the capitalized lease
together with the present value of the net minimum lease payments as of August 31, 2015:
Annual
Lease Payments
90,561$
90,550
648
Total minimum lease payments 181,759
Less: Amounts representing interest (7,386)
Present value of net minimum lease payments 174,373$
Year Ending
August 31,
2016
2018
2017
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NOTES TO THE FINANCI AL STATEMENTS
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NOTE 12. RELATED PARTY TRANSACTIONS
The Westlake Academy Foundation contributed $1,207,293 to the Academy during the fiscal year
ended August 31, 2015. In addition to the use of facilities discussed in Note 4, the Town of Westlake
contributed $357,130 to the Academy during the year.
NOTE 13. EVALUATION OF SUBSEQUENT EVENTS
The Academy has evaluated subsequent events through December 7, 2015, the date which the
financial statements were available to be issued.
NOTE 14. NEW ACCOUNTING PRONOUNCEMENTS
The GASB issued Statement No. 72, Fair Value Measurement, which will be effective for periods
beginning after June 15, 2015. The objective of this Statement is to improve accounting and financial
reporting related to fair value measurements. This Statement applies to all state and governmental
entities. The Academy will evaluate the impact of the standard on its Financial Statements and will
take the necessary steps to implement it.
The GASB issued Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for
State and Local Governments, which will be effective for periods beginning after December 15, 2015.
The objective of this Statement is to identify the hierarchy of generally accepted accounting principles
(GAAP). This Statement applies to all state and governmental entities. The Academy will evaluate the
impact of the standard on its Financial Statements and will take the necessary steps to implement it.
NOTE 15. CUMULATIVE EFFECT OF ADOPTION OF GASB STATEMENTS
As a result of implementation of GASB Statement No. 68, “Accounting and Financial Reporting for
Pensions – an amendment of GASB Statement No. 27”, and GASB Statement No. 71, “Pension
Transition for Contributions Made Subsequent to the Measurement Date”, an adjustment has been
made to record the Academy’s net pension liability as of July 1, 2014. As a result, beginning net
position of the governmental activities has been decreased by $217,601, the net effect of the
beginning net pension liability of $235,829 and employer contributions made prior to the beginning of
the measurement period in the amount of $18,228.
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REQUIRED SUPPLEMENTARY INFORMATION
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WESTLAKE ACADEMY EXHIBIT E-1
BUDGETARY COMPARISON SCHEDULE – GENERAL FUND
FOR THE YEAR ENDED AUGUST 31, 2015
33
Actual Variance With
Data Amounts Final Budget
Control GAAP BASIS Positive or
Codes Original Final (Negative)
REVENUES
5700 Local and intermediate sources $1,663,805 $1,628,365 $1,664,363 $35,998
5800 State program revenues 5,782,092 6,070,659 6,141,189 70,530
5020 Total revenues 7,445,897 7,699,024 7,805,552 106,528
EXPENDITURES
CURRENT:
0011 Instruction 4,510,171 4,372,465 4,343,503 28,962
0012 Instructional resources and media services 66,252 68,452 67,933 519
0013 Curriculum and staff development 104,089 160,085 165,308 (5,223)
0021 Instructional leadershp 213,112 225,237 212,942 12,295
0023 School leadership 606,038 638,013 620,382 17,631
0031 Guidance, counseling, and evaluation services 246,538 280,079 255,193 24,886
0033 Health services 68,710 69,585 64,285 5,300
0035 Food services 500 - - -
0036 Extracurricular activities 139,256 140,161 122,974 17,187
0041 General administration 343,836 353,992 344,087 9,905
0051 Facilities maintenance and operations 956,091 950,567 865,719 84,848
0053 Data processing services 105,015 111,015 100,757 10,258
0061 Community services 110,824 110,024 111,620 (1,596)
0072 Debt service 84,186 90,565 89,949 616
6030 Total expenditures 7,554,618 7,570,240 7,364,652 205,588
1100 Excess (deficiency) of revenues over
(under) expenditures (108,721) 128,784 440,900 312,116
OTHER FINANCING SOURCES
7913 Capital lease proceeds - - 16,740 16,740
Total other financing sources - - 16,740 16,740
1200 Net change in fund balances (108,721) 128,784 457,640 328,856
0100 Fund balances--beginning 1,024,517 1,024,517 1,024,517 -
3000 Fund balances--ending $915,796 $1,153,301 $1,482,157 $328,856
Budgeted Amounts
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NOTES TO BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED AUGUST 31, 2015
34
Budgetary Information
The Board of Trustees adopts an “appropriated budget” on a GAAP basis for the General Fund.
The Academy is required to present the adopted and final amended budgeted revenues and
expenditures for this fund. The General Fund budget appears in Exhibit E-1.
The following procedures are followed in establishing the budgetary data:
1. Prior to August 25 of the preceding fiscal year, the Academy prepares a budget for the next
succeeding fiscal year beginning September 1. The operating budget includes proposed
expenditures and the means of financing them.
2. A m eeting of the Board of Trustees is then called for the purpose of adopting the proposed
budget.
3. Prior to September 1, the budget is legally enacted through resolution by the Board. Once a
budget is approved, it can only be amended at the object, function and fund level by approval of
a majority of the members of the Board. Amendments are presented to the Board at its regular
meetings. Each amendment made before the fact, is reflected in the official minutes of the
Board, and is not made after fiscal year end.
4. Budgeted amounts are amended by the Board. All budget appropriations lapse at year end.
5. For the year ending August 31, 2015, expenditures exceeded appropriations in the following
functions: Curriculum and Staff Development; and Community Services.
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WESTLAKE ACADEMY EXHIBIT E-2
SCHEDULE OF ACADEMY’S PROPORTIONATE SHARE OF NET PENSION LIABILITY –
TEACHER RETIREMENT SYSTEM
FOR THE YEAR ENDED AUGUST 31, 2015
35
2015
Academy's proportion of the net pension liability 0.0007190%
Academy's proportionate share of net pension liability 192,056$
State's proportionate share of net pension liability
associated with the Westlake Academy 2,965,583
Total 3,157,639$
Academy's covered payroll 4,300,931$
Academy's proportionate share of net pension liability
as a percentage of its covered payroll 4.47%
Plan fiduciary net position as a
percentage of total pension liability 83.25%
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WESTLAKE ACADEMY EXHIBIT E-3
SCHEDULE OF CONTRIBUTIONS – TEACHER RETIREMENT SYSTEM
FOR THE YEAR ENDED AUGUST 31, 2015
36
2015
Statutorially required contributions 92,325$
Actual contributions in relation to
statutorially required contributions 92,325
Contribution deficiency (excess)-$
Academy's covered payroll 4,784,694$
Contributions as a percentage
of Academy's covered payroll 1.93%
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COMBINING STATEMENTS
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COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
AUGUST 31, 2015
37
224 226 461
Data
Control
Codes
IDEA - Part B
Formula
IDEA - Part B
Discretionary
Campus
Activity
Funds
ASSETS
1110 Cash and cash equivalents -$ -$ 49,399$
1000 Total assets -$ -$ 49,399$
LIABILITIES AND FUND BALANCES
Liabilities:
2110 Accounts payable -$ -$ -$
Total liabilities - - -
Fund balances:
Restricted for:
3490 Donor stipulations - - -
Committed for:
3545 Campus activities - - 49,399
3000 Total fund balances - - 49,399
4000 Total liabilities and fund balances -$ -$ 49,399$
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EXHIBIT F-1 – CONTINUED
38
481 484 485 493 494 495
Hudson -
Staff
Development
Foundation-
Local Grants
Hudson-
Leadership
and
Development
Hudson-
Salary /
Training /
Students
Foundation-
Science
Department
Foundation-
Fund an Item
& Giving Day
-$ 8,507$ -$ -$ 9,138$ -$
-$ 8,507$ -$ -$ 9,138$ -$
-$ 117$ -$ -$ -$ -$
- 117 - - - -
- 8,390 - - 9,138 -
- - - - - -
- 8,390 - - 9,138 -
-$ 8,507$ -$ -$ 9,138$ -$
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EXHIBIT F-1 – CONCLUDED
39
496 497 498
Data
Control
Codes
Hudson-
Support
Overall
Programming
Foundation-
Student
Scholarships
International
Mindedness
Education
Symposium
Total
Nonmajor
Governmental
Funds
ASSETS
1110 Cash and cash equivalents 123,689$ -$ 1,250$ 191,983$
1000 Total assets 123,689$ -$ 1,250$ 191,983$
LIABILITIES AND FUND BALANCES
Liabilities:
2110 Accounts payable 311$ -$ -$ 428$
Total liabilities 311 - - 428
Fund balances:
Restricted for:
3490 Donor stipulations 123,378 - 1,250 142,156
Committed for:
3545 Campus activities - - - 49,399
3000 Total fund balances 123,378 - 1,250 191,555
4000 Total liabilities and fund balances 123,689$ -$ 1,250$ 191,983$
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WESTLAKE ACADEMY
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES – NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED AUGUST 31, 2015
40
224 226 461
Data
Control
Codes
IDEA - Part B
Formula
IDEA - Part B
Discretionary
Campus
Activity
Funds
REVENUES
5700 Local and intermediate sources -$ -$ 22,954$
5800 State program revenues - - -
5900 Federal program revenues 87,797 74,473 -
5020 Total revenues 87,797 74,473 22,954
EXPENDITURES
Current:
0011 Instruction 87,797 74,473 511
0013 Curriculum and instructional
staff development - - -
0021 Instructional leadership - - -
0023 School leadership - - -
0031 Guidance, counseling
and evaluation services - - -
0036 Extracurricular activities - - 19,825
0041 General administration - - -
6030 Total expenditures 87,797 74,473 20,336
1200 NET CHANGE IN FUND BALANCES - - 2,618
0100 FUND BALANCES, BEGINNING - - 46,781
3000 FUND BALANCES, ENDING -$ -$ 49,399$ DR
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EXHIBIT F-2 – CONTINUED
41
481 484 485 493 494 495
Hudson -
Staff
Development
Foundation-
Local Grants
Hudson-
Leadership
and
Development
Hudson-
Salary /
Training /
Students
Foundation-
Science
Department
Foundation-
Fund an
Item &
Giving Day
3,460$ 61,572$ 100,207$ 55,000$ 27,850$ 77,773$
213 - 5,507 605 - -
- - - - - -
3,673 61,572 105,714 55,605 27,850 77,773
- 46,182 2,616 4,031 18,712 77,773
- - 15,859 35,336 - -
3,673 - 15,868 15,604 - -
- - 71,354 558 - -
- - 17 76 - -
- - - - - -
- 7,000 - - - -
3,673 53,182 105,714 55,605 18,712 77,773
- 8,390 - - 9,138 -
- - - - - -
-$ 8,390$ -$ -$ 9,138$ -$
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EXHIBIT F-2 - CONCLUDED
42
496 497 498
Data
Control
Codes
Hudson-
Support
Overall
Programming
Foundation-
Student
Scholarships
International
Mindedness
Education
Symposium
Total
Nonmajor
Governmental
Funds
REVENUES
5700 Local and intermediate sources 175,000$ 1,200$ 1,250$ 526,266$
5800 State program revenues 378 - - 6,703
5900 Federal program revenues - - - 162,270
5020 Total revenues 175,378 1,200 1,250 695,239
EXPENDITURES
Current:
0011 Instruction 26,253 1,200 - 339,548
0013 Curriculum and instructional
staff development 6,018 - - 57,213
0021 Instructional leadership - - - 35,145
0023 School leadership 19,729 - - 91,641
0031 Guidance, counseling
and evaluation services - - - 93
0036 Extracurricular activities - - - 19,825
0041 General administration - - - 7,000
6030 Total expenditures 52,000 1,200 - 550,465
1200 NET CHANGE IN FUND BALANCES 123,378 - 1,250 144,774
0100 FUND BALANCES, BEGINNING - - - 46,781
3000 FUND BALANCES, ENDING 123,378$ -$ 1,250$ 191,555$
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INTERNAL CONTROL REPORT
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INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
43
AN INDEPENDENT MEMBER OF BAKER TILLY INTERNATIONAL WEAVER AND TIDWELL, L.L.P. CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS 12221 MERIT DRIVE, SUITE 1400, DALLAS, TX 75251 P: 972.490.1970 F: 972.702.8321
To the Board of Trustees
Westlake Academy
We have audited, in accordance with the auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States, the financial
statements of the governmental activities, the discretely presented component unit, each major
fund, and the aggregate remaining fund information of Westlake Academy (the Academy) as of
and for the year ended August 31, 2015, and the related notes to the financial statements,
which collectively comprise the Academy's basic financial statements and have issued our
report thereon dated December 7, 2015.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Academy's
internal control over financial reporting (internal control) to determine the audit procedures that
are appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the
Academy's internal control. Accordingly, we do not express an opinion on the effectiveness of
the Academy's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control such that there is a reasonable
possibility that a material misstatement of the entity's financial statements will not be prevented,
or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Academy's financial statements
are free of material misstatement, we performed tests of its compliance with certain provisions
of laws, regulations, contracts, and grant agreements, noncompliance with which could have a
direct and material effect on the determination of financial statement amounts.
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Westlake Academy
Page 2
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However, providing an opinion on compliance with those provisions was not an objective of our
audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no
instances of noncompliance or other matters that are required to be reported under Government
Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the entity's internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the entity's
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
December 7, 2015
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Page 1 of 1
WESTLAKE ACADEMY AGENDA ITEM
Curriculum: MYP Meeting Date: 2/07/15
Discussion
Staff Contact Andra Barton, Ed.D. Terri Watson
MYP Principal MYP Coordinator
Subject: Update on the IB reauthorization for the MYP
UPDATE ON PROGRESS
Westlake Academy was authorized to implement the Middle Years Program (“MYP”) on July 25, 2007. As an IB World School, Westlake Academy adheres to the IB Standards and Practices, which provide continuity across the continuum of program. To assure pedagogical growth and implementation of its philosophical aims, the International Baccalaureate Organization (IBO) conducts evaluations of the programs on a five-year rotation. During the 2011-2012 school year, Mr. Rod Harding served as the MYP Principal and successfully led the school community in reauthorization. The Westlake Academy MYP evaluation is scheduled for March 3 and 4, 2016. Participation in this process requires over 1 year of preparation. Attached is a report summarizing the actions to date.
PLAN DESIRED OUTCOMES
High Student Achievement
Strong Parent & Community
Connections
Financial Stewardship &
Sustainability
ACADEMY VALUES
Maximizing Personal Development
Academic Excellence
Respect for Self and Others
Personal Responsibility
Compassion and Understanding
Effective Educators & Staff
GOVERNANCE FRAMEWORK
This report relates directly to Westlake Academy’s Vision of inspiring “students to achieve their
highest individual potential…” and the Mission of “an internationally minded education in the
highest quality…”
RECOMMENDATION / ACTION REQUESTED/ OPTIONS
No action required at this time as this is a discussion item.
ATTACHMENTS Westlake Academy Middle Years program reauthorization update
1
Westlake Academy Middle Years Program
Reauthorization Update Westlake Academy was authorized to implement the Middle Years Program (“MYP”) on July 25, 2007. As an IB World School, Westlake Academy adheres to the IB Standards and Practices, which provide continuity across the continuum of program. To assure pedagogical growth and implementation of its philosophical aims, the International Baccalaureate Organization (IBO) conducts evaluations of the programs on a five-year rotation. During the 2011-2012 school year, Mr. Rod Harding served as the MYP Principal and successfully led the school community in reauthorization. The Westlake Academy MYP evaluation is scheduled for March 3 and 4, 2016. The evaluation process begins with a self-study conducted by the school. The self-study is an extended review by the school of its practices in accordance with the IB Standards and Practices. The IB Standards and Practices, which must be followed throughout all teaching and learning, are divided into seven sections:
Section A: Philosophy
Section B: Organization
• B1: Leadership and structure
• B2: Resources and support
Section C: Curriculum
• C1: Collaborative planning
• C2: Written curriculum
• C3: Teaching and learning
• C4: Assessment MYP staff began reviewing the practices of the school in January 2015. The staff was divided into groups representing multiple grade levels and subject areas and was assigned a specific standard on which to focus. Using a rubric, each group reached a consensus on the school’s performance. In addition, each group provided a narrative and evidence of the performance to accompany each ranking. Findings from each group were shared with all
2
MYP staff members who then had the opportunity to comment on the findings. This process continued throughout Spring 2015. At the same time, we began drafting the self-study report and gathering required documentation, which the IBO requires to be submitted with each evaluation. The self-study and documentation process has continued during Fall 2015 with the final submission date being December 1, 2015. During this time, the staff evaluated 18 unit planners and prepared a report that was submitted to IBO. These planners are currently under review by IBO, and a report is expected by the end of November. In addition, the staff has conducted significant work on the MYP Written Curriculum. Specifically, staff has focused on aligning the Approaches to Learning skills (self-management, social, research, thinking, and communication) among the grades and subjects, aligning the key concepts within grade levels, and updated the Subject Group Overviews and unit planners. All of this documentation will be provided to IBO as part of the evaluation. During December through February, the MYP staff will be preparing and finalizing details for the evaluation visit on March 3 and 4. At that time, two or three site visitors, appointed by IBO, will visit the school to “verify the self-study assessment in order to ensure that the standards and practices on which the IB program is founded are maintained and furthered” (MYP Evaluation Guide). While on campus, the site visitors will:
• Have meetings with members of the school community (members of the Board of Trustees, Superintendent, the pedagogical leadership team, coordinator, teachers, students and parents) The afternoon of
March 3rd Board members, Superintendent and Town staff need to be
available as their schedule permits.
• Visit the school facilities
• Observe classes A report on the MYP’s implementation of the standard’s and practice will be prepared and delivered after the visit. The report can contain commendations, recommendations and/or matters to be addressed with regard to the school’s practices.
3
BOARD RECAP / STAFF DIRECTION
Westlake Academy
Item #6 Board Recap
/ Staff Direction
Westlake Academy
Item # 7 –
Workshop
Adjournment
ITEMS OF COMMUNITY INTEREST: President and
Trustee Reports on Items of Community Interest pursuant to
Texas Government Code Section 551.0415 the Board of
Trustees may report on the following items: (1) expression of
thanks, congratulations or condolences; (2) information
about holiday schedules; (3) recognition of individuals; (4)
reminders about upcoming Board of Trustee events; (5)
information about community events; and (6)
announcements involving imminent threat to public health
and safety.
Danish & Dialogue with the Principals
Monday, December 3, 2015; 8:00 – 9:00 am
Lee Fieldhouse Classroom
Westlake Community Tree Lighting
Thursday, December 3, 2015; 6:00 – 8:00 pm
Westlake Academy - MPH & Campus Green
Coffee & Conversation with the Mayor
Monday, December 7, 2015; 8:00-9:30 am
Town Hall – Council Chambers/Courtroom
Board of Trustees Workshop/Meeting
Monday, December 7, 2015; 5:00 pm
“*Small but Mighty” Neighborhood Town Meeting (*For Westlake residents living along JT Ottinger, Mahotea
Boone, Paigebrooke, North Pearson, Wyck Hill, Aspen Lane, & Dove Road)
Wednesday, December 8, 2015; 6:30 pm
Home of Bryant & Becky Fisher
Town Council Workshop/Meeting
Monday, December 14, 2015; 5:00 pm
Municipal Offices closed for Christmas
Thurs., Dec. 24 - Friday Dec 25, 2015
Municipal Offices closed for New Year’s Day
Friday, January 1, 2016
All Municipal and Academic Staff return on Monday, January 4, 2016
*WA Students Return – Tuesday, January 5, 2016
*For WA Athletic events, please check the appropriate sport’s category box on
the WA Calendar webpage for times.
Westlake Academy
Item #2
Items of Community
Interest
CITIZEN COMMENTS: This is an opportunity for citizens to address the Board on any matter
whether or not it is posted on the agenda. The Board cannot by law take action nor have any
discussion or deliberations on any presentation made to the Board at this time concerning an
item not listed on the agenda. Any item presented may be noticed on a future agenda for
deliberation or action.
Westlake Academy
Item # 3 – Citizen
Comments
CONSENT AGENDA: All items listed below are considered routine by the Board of
Trustees and will be enacted with one motion. There will be no separate discussion of
items unless a Board member or citizen so requests, in which event the item will be
removed from the general order of business and considered in its normal sequence.
a. Consider approval of the minutes from the November 2, 2015, meeting.
b. Consider approval of the minutes from the November 16, 2015, meeting.
c. Consider approval of Resolution 15-19, Approving the Fiscal Year 2014-
2015 Annual Audit Report from Weaver and Tidwell, L.L.P.
d. Consider approval of Resolution 15-20, Approving a Credit by Examination
for Chemistry.
Westlake Academy
Item # 4 – Consent
Agenda
BOT Minutes 11/02/15
Page 1 of 4
WESTLAKE ACADEMY
BOARD OF TRUSTEES MEETING
November 2, 2015
PRESENT: President Laura Wheat, Trustees: Alesa Belvedere, Carol Langdon, Rick
Rennhack, and Wayne Stoltenberg. Michael Barrett arrived at 5:05 p.m.
ABSENT:
OTHERS PRESENT: Assistant to the Superintendent Amanda DeGan, Board Secretary
Kelly Edwards, Executive Principal & Director of Education Dr.
Mechelle Bryson, MYP Principal Dr. Andra Barton, DP
Principal/Coordinator Stacy Stoyanoff, College Counselor Carl
Tippen, Student Services Administrator Jennifer Furnish, Finance
Director Debbie Piper, Director of Information Technology Jason
Power, Director of Communications & Community Affairs Ginger
Awtry, Director of Facilities and Parks & Recreation Troy Meyer,
Communications Specialist Susan McFarland and Management
Intern Joel Enders.
Work Session
1. CALL TO ORDER
President Wheat called the work session to order at 5:02 p.m.
2. PLEDGE OF ALLEGIANCE
President Wheat led the pledge of allegiance to the United States and Texas flags.
BOT Minutes 11/02/15
Page 2 of 4
3. REVIEW OF CONSENT AGENDA ITEMS FOR THE NOVEMBER 2, 2015,
TRUSTEES REGULAR MEETING AGENDA.
No additional discussion.
4. DISCUSSION ITEMS
a. Discussion regarding the performance on the International School’s Assessment in
Grade 5, 8 and 10 in 2015.
Principal Harding, Ms. Paquin, Ms. Nairon, Mr. Childless, and Ms. Bauer provided a
presentation regarding the assessments for Mathematics, Reading and Writing.
Discussion ensued regarding the world averages, world scale scores, reading
progress, stands of mathematics in need of strengthening, the use of calculators,
reading and writing results scale scores, expository argumentative writing, Lucy
Calkins program of learning, inferencing skills.
b. Discussion regarding a proposed amendment to the Graduation Policy 6.04A, to
clarify and align the Foundation Plan, Multidisciplinary Endorsements, Distinguished
Level of Achievement, and all IB requirements for successful matriculation through
Westlake Academy.
Dr. Bryson and College Counselor Tippen provided a presentation and overview of
the amendment to the Graduation Policy regarding graduation requirements.
Discussion ensued regarding the number of credits required by the State and the
credits required to graduate with an Academy diploma.
c. Presentation and discussion of the Tier Two Strategy Map for Westlake Academy.
Assistant to the Superintendent DeGan provided a presentation and overview of the
map.
Discussion ensued regarding how to measure some of the items on the map,
keeping it simple, and the equivalencies.
5. BOARD RECAP / STAFF DIRECTION
No additional direction.
BOT Minutes 11/02/15
Page 3 of 4
6. ADJOURNMENT
President Wheat adjourned the work session at 6:03 p.m.
Regular Session
1. CALL TO ORDER
President Wheat called the regular session to order at 6:03 p.m.
2. ITEMS OF COMMUNITY INTEREST
President Wheat asked Director Meyer to provide a program overview of the Christmas
Tree Lighting event.
Dr. Bryson provided an overview of the Danish and Dialogue meetings.
3. CITIZEN COMMENTS
No one addressed the Board at this time.
4. CONSENT AGENDA
a. Consider approval of the minutes from the October 5, 2015, meeting.
b. Consider approval of Resolution 15-18, Amending the Graduation Policy 6.04A
to clarify and align the Foundation Plan, Multidisciplinary Endorsements,
Distinguished Level of Achievement, and all IB requirements.
MOTION: Trustee Langdon made a motion to approve the consent agenda.
Trustee Belvedere seconded the motion. The motion carried by
a vote of 5-0.
5. FUTURE AGENDA ITEMS
No future agenda items for discussion.
BOT Minutes 11/02/15
Page 4 of 4
6. ADJOURNMENT
There being no further business before the Board, President Wheat asked for a motion to
adjourn the meeting.
MOTION: Trustee Rennhack made a motion to adjourn the regular session.
Trustee Belvedere seconded the motion. The motion carried by
a vote of 5-0.
President Wheat adjourned the regular session at 6:09 p.m.
APPROVED BY THE BOARD OF TRUSTEES ON DECEMBER 7, 2015.
ATTEST:
____________________________
Laura Wheat, President
_____________________________
Kelly Edwards, Board Secretary
BOT Minutes 11/16/15
Page 1 of 2
WESTLAKE ACADEMY
BOARD OF TRUSTEES MEETING
November 16, 2015
PRESENT: President Laura Wheat, Trustees: Alesa Belvedere, Carol Langdon, Rick
Rennhack and Wayne Stoltenberg.
ABSENT: Michael Barrett
OTHERS PRESENT: Superintendent Tom Brymer, Board Secretary Kelly Edwards,
School Attorney Janet Bubert, Executive Principal & Director of
Education Dr. Mechelle Bryson, Assistant to the Superintendent
Amanda DeGan.
Special Session
1. CALL TO ORDER
President Wheat called the meeting to order at 5:17 p.m.
2. EXECUTIVE SESSION
The Board convened into executive session at 5:17 p.m.
The Board will conduct a closed session pursuant to Texas Government Code, annotated,
Chapter 551, Subchapter D for the following:
Section 551.071 - Consultation with School Attorney on a matter in which the duty of the
attorney to the governmental body under the Texas Disciplinary Rules of Professional
Conduct of the State Bar of Texas clearly conflicts with this chapter: Deliberations with
attorney regarding Level III parent complaint.
Section 551.074 (a)(2) - Personnel Matters - To hear a complaint or charge against an
officer or employee: Level Three appeal of parent complaint.
BOT Minutes 11/16/15
Page 2 of 2
3. RECONVENE MEETING
President Wheat reconvened the meeting at 6:52 p.m.
4. TAKE ANY ACTION, IF NEEDED, FROM EXECUTIVE SESSION ITEMS.
MOTION: Trustee Langdon made a motion to uphold the Level II decision,
directing the Administration to immediately take all necessary
and reasonable action to place a W on the student’s transcript.
Should the Administration determine that a W cannot be placed
on the student’s transcript because Texas Education Agency
and/or Region 11 prohibits it, then the Board will uphold the
Level II decision by placing an I on the transcript. Trustee
Stoltenberg seconded the motion. The motion carried by a vote
of 4-0.
5. ADJOURNMENT
There being no further business before the Board, President Wheat asked for a motion to
adjourn the meeting.
President Wheat adjourned the regular session at 6:56 p.m.
APPROVED BY THE BOARD OF TRUSTEES ON DECEMBER 7, 2015.
ATTEST:
____________________________
Laura Wheat, President
_____________________________
Kelly Edwards, Board Secretary
Page 1 of 2
WESTLAKE ACADEMY AGENDA ITEM
Curriculum: Finance Meeting Date: December 7, 2015
Staff Contact: Debbie Piper Workshop & Consent
Finance Director
Subject: Presentation and approval of resolution approving the FY 2014-2015 annual audit
report from Weaver and Tidwell, L.L.P.
EXECUTIVE SUMMARY
Weaver and Tidwell, L.L.P. has completed the Westlake Academy 2014-2015 annual financial
audit report. As in prior years, we again had no “Findings”, reportable conditions nor material
weaknesses to be reported to TEA. Findings are items required by TEA to be reported regarding
TEA compliance, large variances in budget vs. actual balances, etc. TEA doesn’t necessarily
look upon these as bad (they require an explanation of all “Findings” and review in subsequent
years), but it certainly looks good for the Academy not to have any for the current year.
Please review the Management Discussion and Analysis document included in the audit report
for statistical information during the year ended August 31, 2015.
PLAN DESIRED OUTCOMES
High Student Achievement
Strong Parent & Community
Connections
Financial Stewardship &
Sustainability
ACADEMY VALUES
Maximizing Personal Development
Academic Excellence
Respect for Self and Others
Personal Responsibility
Compassion and Understanding
Effective Educators & Staff
GOVERNANCE FRAMEWORK
The approval of this external audit meets the requirements of the Texas Education Agency as
well as one of our desired outcomes, Financial Stewardship & Sustainability. In addition, the
conclusion of a successful audit is in keeping with our financial policies as approved by the
Board of Trustees for Westlake Academy.
FISCAL IMPACT
Funded Not Funded N/A
Total payment for the FY 2014-2015 annual audit was $12,800 which was incorporated in FY
2015-16 Academy budget.
Page 2 of 2
RECOMMENDATION / ACTION REQUESTED/ OPTIONS
Recommend approval of the resolution approving the FY 2014-2015 annual audit as submitted.
ATTACHMENTS:
Resolution
Audit report (Draft) for year ended August 31, 2015
Resolution 15-19
Page 1 of 2
WESTLAKE ACADEMY
RESOLUTION NO. 15-19
A RESOLUTION OF THE WESTLAKE ACADEMY BOARD OF TRUSTEES
APPROVING THE FISCAL YEAR 2014-2015 ANNUAL AUDIT REPORT FROM
WEAVER AND TIDWELL, L.L.P.
WHEREAS, Section 7.3.6 of the Data Collection & Reporting section of the Financial
Accountability System Resource Guide Update 11.0 requires that the annual financial and
compliance report be audited by an independent auditor, and
WHEREAS, Section 7.3.6 of the Data Collection & Reporting section of the Financial
Accountability System Resource Guide Update 11.0 requires the audit report be submitted to the
Division of School Financial Audits of TEA no later than 150 days after the close of the fiscal
year, and
WHEREAS, the audit report must be approved by the Board of Trustees.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF
WESTLAKE ACADEMY:
SECTION 1: The above findings are hereby found to be true and correct and are
incorporated herein in its entirety.
SECTION 2: That the Board of Trustees of Westlake Academy hereby approves the
fiscal year 2014-2015 annual audit report from Weaver and Tidwell, L.L.P. attached as Exhibit
“A”,
SECTION 3: If any portion of this resolution shall, for any reason, be declared invalid
by any court of competent jurisdiction, such invalidity shall not affect the remaining provisions
hereof and the Board hereby determines that it would have adopted this Resolution without the
invalid provision.
Resolution 15-19
Page 2 of 2
SECTION 4: That this resolution shall become effective from and after its date of
passage.
PASSED AND APPROVED BY THE BOARD OF TRUSTEES OF WESTLAKE
ACADEMY, A CHARTER SCHOOL OF THE STATE OF TEXAS, ON THE 7th DAY
OF DECEMBER, 2015.
_____________________________
ATTEST: Laura Wheat, President
_____________________________ ______________________________
Kelly Edwards, Board Secretary Thomas E. Brymer, Superintendent
APPROVED AS TO FORM:
____________________________
Janet S. Bubert or L. Stanton Lowry,
School Attorney
Page 1 of 1
WESTLAKE ACADEMY AGENDA ITEM
Curriculum: MYP / DP Meeting Date: December 7, 2015
Staff Contact: Stacy Stoyanoff Consent Item
DP Principal
Subject: Approval of Chemistry Credit by Examination (CBE)
EXECUTIVE SUMMARY
The 83rd Legislative session passed House Bill 5 (HB5). This bill codified changes to the Texas
Education Code (TEC) in the areas of Curriculum, Accountability, and Assessment. The state of
Texas mandates that the Board of Trustees approve locally developed Credit by Exams (CBEs).
A current grade 12 student, who transferred to Westlake Academy in the previous year, requires
a CBE in Chemistry in order to achieve the WA graduation requirements under HB5.
PLAN DESIRED OUTCOMES
High Student Achievement
Strong Parent & Community
Connections
Financial Stewardship &
Sustainability
ACADEMY VALUES
Maximizing Personal Development
Academic Excellence
Respect for Self and Others
Personal Responsibility
Compassion and Understanding
Effective Educators & Staff
GOVERNANCE FRAMEWORK
Why do we need governance guidance? State regulations require that local school board adopt
locally developed Credit by Exams.
Which policy governs this? Graduation policy and authority of the Board of Trustees.
What additional direction is necessary? Input and questions from the Board of Trustees.
FISCAL IMPACT
Funded Not Funded N/A
RECOMMENDATION / ACTION REQUESTED/ OPTIONS
Recommend approval of locally developed Credit by Exam.
ATTACHMENTS
• Chemistry CBE Syllabus and Assessment Summary
• Resolution
Resolution 15-20
Page 1 of 7
WESTLAKE ACADEMY
RESOLUTION 15-20
A RESOLUTION OF THE WESTLAKE ACADEMY BOARD OF TRUSTEES
APPROVING AND ADOPTING A CREDIT BY EXAM (CBE).
WHEREAS, the Texas state mandates require that the Board of Trustees approve locally
developed Credit by Exams (CBEs); and,
WHEREAS, Westlake Academy has researched, discussed and written a Credit by Exam
(CBE) to be utilized to award Chemistry credit to Westlake Academy students; 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 OF TRUSTEES OF
WESTLAKE ACADEMY:
SECTION 1: That, all matters stated in the recitals hereinabove are found to be true and
correct and are incorporated herein by reference as if copied in their entirety.
SECTION 2: That, the Board of Trustees Westlake Academy, hereby approves the new
Credit by Exam (CBE) for Westlake Academy attached to this resolution as Exhibit “A”.
SECTION 3: If any portion of this resolution shall, for any reason, be declared invalid
by any court of competent jurisdiction, such invalidity shall not affect the remaining provisions
hereof and the Council hereby determines that it would have adopted this Resolution without the
invalid provision.
Resolution 15-20
Page 2 of 7
SECTION 4: That this resolution shall become effective from and after its date of
passage.
PASSED AND APPROVED ON THIS 7th DAY OF DECEMBER, 2015.
___________________________________
Laura Wheat, President
ATTEST:
________________________________ ___________________________________
Kelly Edwards, Board Secretary Thomas E. Brymer, Superintendent
APPROVED AS TO FORM:
________________________________
Janet S. Bubert or L. Stanton Lowry,
School Attorney
Resolution 15-20
Page 3 of 7
Exhibit “A”
CHEMISTRY CREDIT BY EXAM (CBE)
I. SYLLABUS
UNIT 1 = METHODS OF SCIENCE/INQUIRY (Ongoing Throughout the Syllabus)
SCIENCE CONCEPTS:
(1) In Chemistry, students conduct laboratory and field investigations, use scientific methods
during investigations, and make informed decisions using critical thinking and scientific
problem solving. Students study a variety of topics that include characteristics of matter,
use of the Periodic Table, development of atomic theory and chemical bonding, chemical
stoichiometry, gas laws, solution chemistry, thermochemistry, and nuclear chemistry.
Students will investigate how chemistry is an integral part of our daily lives.
(2) Nature of Science. Science, as defined by the National Academy of Sciences, is the "use
of evidence to construct testable explanations and predictions of natural phenomena, as
well as the knowledge generated through this process." This vast body of changing and
increasing knowledge is described by physical, mathematical, and conceptual models.
Students should know that some questions are outside the realm of science because they
deal with phenomena that are not scientifically testable.
(3) Scientific inquiry. Scientific inquiry is the planned and deliberate investigation of the
natural world. Scientific methods of investigation can be experimental, descriptive, or
comparative. The method chosen should be appropriate to the question being asked.
(4) Science and social ethics. Scientific decision making is a way of answering questions
about the natural world. Students should be able to distinguish between scientific
decision-making methods and ethical and social decisions that involve the application of
scientific information.
(5) Scientific systems. A system is a collection of cycles, structures, and processes that
interact. All systems have basic properties that can be described in terms of space, time,
energy, and matter. Change and constancy occur in systems as patterns and can be
observed, measured, and modeled. These patterns help to make predictions that can be
scientifically tested. Students should analyze a system in terms of its components and
how these components relate to each other, to the whole, and to the external environment.
UNIT 2 = SCIENTIFIC METHOD AND LABORATORY SKILLS
SCIENCE CONCEPTS:
1. Scientific processes. The student, for at least 40% of instructional time, conducts
laboratory and field investigations using safe, environmentally appropriate, and
ethical practices. The student is expected to:
a. demonstrate safe practices during laboratory and field investigations,
including the appropriate use of safety showers, eyewash fountains, safety
goggles, and fire extinguishers
b. know specific hazards of chemical substances such as flammability,
corrosiveness, and radioactivity as summarized on the Material Safety Data
Sheets (MSDS); and
Resolution 15-20
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c. demonstrate an understanding of the use and conservation of resources and
the proper disposal or recycling of materials.
2. Scientific processes. The student uses scientific methods to solve investigative
questions. The student is expected to:
a. know the definition of science and understand that it has limitations
b. know that scientific hypotheses are tentative and testable statements that must
be capable of being supported or not supported by observational evidence.
c. Hypotheses of durable explanatory power which have been tested over a wide
variety of conditions are incorporated into theories;
d. know that scientific theories are based on natural and physical phenomena and
are capable of being tested by multiple independent researchers. Unlike
hypotheses, scientific theories are well-established and highly-reliable
explanations, but may be subject to change as new areas of science and new
technologies are developed;
e. distinguish between scientific hypotheses and scientific theories;
f. plan and implement investigative procedures, including asking questions,
formulating testable hypotheses, and selecting equipment and technology,
including graphing calculators, computers and probes, sufficient scientific
glassware such as beakers, Erlenmeyer flasks, pipettes, graduated cylinders,
volumetric flasks, safety goggles, and burettes, electronic balances, and an
adequate supply of consumable chemicals;
g. collect data and make measurements with accuracy and precision;
h. express and manipulate chemical quantities using scientific conventions and
mathematical procedures, including dimensional analysis, scientific notation,
and significant figures;
i. organize, analyze, evaluate, make inferences, and predict trends from data;
and
j. communicate valid conclusions supported by the data through methods such
as lab reports, labeled drawings, graphs, journals, summaries, oral reports, and
technology-based reports.
3. Scientific processes. The student uses critical thinking, scientific reasoning, and
problem solving to make informed decisions within and outside the classroom. The
student is expected to:
a. analyze, evaluate, and critique scientific explanations by using empirical
evidence, logical reasoning, and experimental and observational testing,
including examining all sides of scientific evidence of those scientific
explanations, so as to encourage critical thinking by the student;
b. communicate and apply scientific information extracted from various sources
such as current events, news reports, published journal articles, and marketing
materials;
c. draw inferences based on data related to promotional materials for products
and services;
d. evaluate the impact of research on scientific thought, society, and the
environment;
e. describe the connection between chemistry and future careers; and
f. research and describe the history of chemistry and contributions of scientists.
Resolution 15-20
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UNIT 3 = STATES OF MATTER
SCIENCE CONCEPTS:
The student knows the characteristics of matter and can analyze the relationships
between chemical and physical changes and properties. The student is expected to:
a. differentiate between physical and chemical changes and properties;
b. identify extensive and intensive properties;
c. compare solids, liquids, and gases in terms of compressibility, structure,
shape, and volume; and
d. classify matter as pure substances or mixtures through investigation of their
properties.
e. understand energy and its forms, including kinetic, potential, chemical, and
thermal energies;
f. understand the law of conservation of energy and the processes of heat
transfer;
g. use thermochemical equations to calculate energy changes that occur in
chemical reactions and classify reactions as exothermic or endothermic;
h. perform calculations involving heat, mass, temperature change, and specific
heat; and
i. use calorimetry to calculate the heat of a chemical process.
UNIT 4 = PERIODOCITY
SCIENCE CONCEPTS:
The student understands the historical development of the Periodic Table and can
apply its predictive power. The student is expected to:
a. explain the use of chemical and physical properties in the historical
development of the Periodic Table;
b. use the Periodic Table to identify and explain the properties of chemical
families, including alkali metals, alkaline earth metals, halogens, noble gases,
and transition metals; and
c. use the Periodic Table to identify and explain periodic trends, including
atomic and ionic radii, electronegativity, and ionization energy.
UNIT 5 = ATOMIC STRUCTURE/NUCLEAR CHEMISTRY
SCIENCE CONCEPTS:
The student knows and understands the historical development of atomic theory. The
student is expected to:
a. understand the experimental design and conclusions used in the development
of modern atomic theory, including Dalton's Postulates, Thomson's discovery
of electron properties, Rutherford's nuclear atom, and Bohr's nuclear atom;
b. understand the electromagnetic spectrum and the mathematical relationships
between energy, frequency, and wavelength of light;
c. calculate the wavelength, frequency, and energy of light using Planck's
constant and the speed of light;
d. use isotopic composition to calculate average atomic mass of an element; and
Resolution 15-20
Page 6 of 7
e. express the arrangement of electrons in atoms through electron configurations
and Lewis valence electron dot structures.
f. The student understands the basic processes of nuclear chemistry. The student
is expected to:
g. describe the characteristics of alpha, beta, and gamma radiation;
h. describe radioactive decay process in terms of balanced nuclear equations; and
i. compare fission and fusion reactions.
UNIT 6 = INTERACTIONS BETWEEN ATOMS / CHEMICAL NOMENCLATURE
SCIENCE CONCEPTS:
The student knows how atoms form ionic, metallic, and covalent bonds. The student
is expected to:
a. name ionic compounds containing main group or transition metals, covalent
compounds, acids, and bases, using International Union of Pure and Applied
Chemistry (IUPAC) nomenclature rules;
b. write the chemical formulas of common polyatomic ions, ionic compounds
containing main group or transition metals, covalent compounds, acids, and
bases;
c. construct electron dot formulas to illustrate ionic and covalent bonds;
d. describe the nature of metallic bonding and apply the theory to explain
metallic properties such as thermal and electrical conductivity, malleability,
and ductility; and
e. predict molecular structure for molecules with linear, trigonal planar, or
tetrahedral electron pair geometries using Valence Shell Electron Pair
Repulsion (VSEPR) theory.
UNIT 7 = CHEMICAL REACTIONS
SCIENCE CONCEPTS:
The student can quantify the changes that occur during chemical reactions. The
student is expected to:
a. define and use the concept of a mole;
b. use the mole concept to calculate the number of atoms, ions, or molecules in a
sample of material;
c. calculate percent composition and empirical and molecular formulas;
d. use the law of conservation of mass to write and balance chemical equations;
and
e. perform stoichiometric calculations, including determination of mass
relationships between reactants and products, calculation of limiting reagents,
and percent yield.
UNIT 8 = GASES
SCIENCE CONCEPTS:
The student understands the principles of ideal gas behavior, kinetic molecular
theory, and the conditions that influence the behavior of gases. The student is
expected to:
Resolution 15-20
Page 7 of 7
a. describe and calculate the relations between volume, pressure, number of
moles, and temperature for an ideal gas as described by Boyle's law, Charles'
law, Avogadro's law, Dalton's law of partial pressure, and the ideal gas law;
b. perform stoichiometric calculations, including determination of mass and
volume relationships between reactants and products for reactions involving
gases; and
c. describe the postulates of kinetic molecular theory.
UNIT 9= SOLUTIONS / ACIDS AND BASES / OXIDATION-REDUCTION REACTIONS
SCIENCE CONCEPTS:
The student understands and can apply the factors that influence the behavior of
solutions. The student is expected to:
a. describe the unique role of water in chemical and biological systems;
b. develop and use general rules regarding solubility through investigations with
aqueous solutions;
c. calculate the concentration of solutions in units of molarity;
d. use molarity to calculate the dilutions of solutions;
e. distinguish between types of solutions such as electrolytes and nonelectrolytes
and unsaturated, saturated, and supersaturated solutions;
f. investigate factors that influence solubility and rates of dissolution such as
temperature, agitation, and surface area;
g. define acids and bases and distinguish between Arrhenius and Bronsted-
Lowry definitions and predict products in acid base reactions that form water;
h. understand and differentiate among acid-base reactions, precipitation
reactions, and oxidation-reduction reactions;
i. define pH and use the hydrogen or hydroxide ion concentrations to calculate
the pH of a solution; and
j. distinguish between degrees of dissociation for strong and weak acids and
bases
II. ASSESSMENT SUMMARY
SEMESTER ASSESSMENT SYLLABUS %
Grade
1 Exam 1 Units 2—5 30%
Practical Scheme of
Work 1
Laboratory Investigations for Units
2—5
20%
2 Exam 2 Units 6—9 30%
Practical Scheme of
Work 2
Laboratory Investigations for Units
6—9
20%
Page 1 of 2
WESTLAKE ACADEMY AGENDA ITEM
Curriculum: PYP / MYP / DP Meeting Date: December 7, 2015
Staff Contact: Debbie Piper Discussion
Finance Director
Subject: School FIRST 2015 rating and Annual Financial Management Report
(for year ended August 31, 2014)
EXECUTIVE SUMMARY
FIRST is the acronym for Financial Accountability Rating System of Texas, as developed for
the Texas school districts by the Texas Education Agency in response to Senate Bill 875 of the
76th Legislature in 1999. The primary goal of the rating is to achieve quality performance in the
management of school districts financial resources. TEA also included open-enrollment charter
schools in this rating system in 2009.
For the Fiscal Year Ended August 31, 2014, Westlake Academy received a status of
“PASSED”.
After TEA receives financial information, they complete a School FIRST rating worksheet for
each school district and charter school. The current year rating worksheet contains 7 questions,
called indicators. Each indicator on the rating worksheet is designed to assess the management
of financial resources. Ratings are based on staff and student data reported for a school and
financial data reported for the corresponding fiscal year. Charters provide information to TEA
through various financial reports, audit reports, and data reported through PEIMS.
The FIRST system assigns one of the following financial accountability ratings based on points
received:
• 16-30 points Pass
• 00-15 points Substandard Achievement
• 0-0 points Suspended
• 0-0 points Undetermined
If the district/charter school answers “No” to any one of the indicators 1, 2, 3, 4, OR to either
indicator 5 or 6, the rating is automatically a “Substandard Achievement”.
Within two months after receipt of the final rating, the Board of Trustees is to hold a hearing for
public discussion of the annual financial accountability system report. A notice was published in
the Fort Worth Star Telegram on November 25th and December 2nd.
In addition to the School FIRST annual rating and in accordance with Title 19 Texas
Administrative Code, Chapter 109, Budgeting, Accounting and Auditing, Subchapter AA,
Commissioner’s Rules Concerning Financial Accountability Rating System, we are required to
submit a Financial Management Report including the following required disclosures:
Page 2 of 2
• Copy of Superintendent’s current employment contract
• Reimbursements Received by the Superintendent and Board Members
• Outside Compensation and/or fees received by the Superintendent for Professional
Consulting and/or other personal services
• Gifts received by Executive Officers and Board Members (and First Degree Relatives, if
any)
• Business Transactions between School and Board Members
PLAN DESIRED OUTCOMES
High Student Achievement
Strong Parent & Community
Connections
Financial Stewardship &
Sustainability
ACADEMY VALUES
Maximizing Personal Development
Academic Excellence
Respect for Self and Others
Personal Responsibility
Compassion and Understanding
Effective Educators & Staff
GOVERNANCE FRAMEWORK
Governance direction will provide the authority and directives of the Board to the Academy staff
as it relates to administering to the financial concerns of the Academy.
FISCAL IMPACT
Funded Not Funded N/A
RECOMMENDATION / ACTION REQUESTED/ OPTIONS
Discussion/no action required
ATTACHMENTS
Financial Management Report
WESTLAKE ACADEMY
School FIRST Annual Financial Management Report
(For Fiscal Year Ended August 2013-2014)
WESTLAKE ACADEMY
School FIRST Annual Financial Management Report
For the Year Ended August 31, 2014
INTRODUCTION
FIRST is the acronym for Financial Integrity Rating System of Texas, as developed for the Texas
school districts by the Texas Education Agency in response to Senate Bill 875 of the 76th Legislature in
1999. The primary goal of the rating is to achieve quality performance in the management of school
district’s financial resources. Open-enrollment charter schools were included in this rating system in
2009. HB 5, passed by the 83rd Texas Legislature in 2013, enacted major changes to the law that
effectively directed the Commissioner of Education to include processes in the financial solvency of
each school district and open-enrollment charter school in Texas. The changes required by HB 5 are
described in more detail below.
Financial Accountability Ratings
Under the School FIRST system, the Texas Education Agency (TEA) assigns each school district and
open-enrollment charter school a financial accountability rating based on a district’s overall
performance on certain financial measurements, ratios, and other indicators established by the
commissioner of Education. As mentioned above, major changes occurred in the Commissioner’s Rule
for the School FIRST rating system as authorized by HB 5. Due to the complexity of the changes,
modifications to the system are being phased in over a three year period beginning with the 2015
ratings. During this phase-in period different worksheets are in place for each year through 2017, with
the final worksheet in 2017 remaining in effect for all future periods. Additionally, the 2017 (and
beyond) worksheets require higher scores for select ratings compared to the 2016 worksheet.
The worksheet for 2015 contains only 7 indicators, and only allows for a P for “Passed” or an F for
“Substandard Achievement” rating for all districts. In contrast, the worksheets for 2016 and 2017 (and
beyond) contain 15 indicators and result in ratings as follows:
Districts that receive the F or “Substandard” rating under School FIRST any year must file a corrective
action plan with the TEA.
SCHOOL FIRST RATINGS
2016, 2017 and Beyond
A – Superior Achievement
B - Above-Standard Achievement
C – Standard Achievement
F – Substandard Achievement
SOURCE: 19 TAC Chapter 109, Subchapter AA
1
Going forward, the Commissioner of Education will evaluate the rating system every three years and
may modify the system in order to improve its effectiveness. Any changes made to the rating system
are communicated to school districts/open-enrollment charter schools by TEA along with the effective
dates of the changes.
Reporting Requirements
Reporting the School FIRST rating to the public is a key component of the system. Each school
district/open-enrollment charter school is required to prepare and make available an annual financial
management report that presents the district’s performance on the current School FIRST indicators and
a comparison with the previous year’s performance. A public hearing must be held on the annual
financial management report to afford interested parties the opportunity to comment on the report.
The public hearing must be held within two months after receipt of the final financial accountability
rating. The official notification from TEA was dated October 22, 2015.
2015 School FIRST Rating
The 2015 School FIRST rating was based on an analysis of financial data submitted to the Texas
Education Agency for the 2013-2014 fiscal year. Seven indicators were evaluated to determine the
rating.
Westlake Academy received the rating of P or “Passed” for 2015, the highest school FIRST
rating awarded by the State for this year. Similarly, the District received the highest rating for
2014 with a Superior Achievement. The rating worksheet detailing the District’s performance on
each of the seven indicators for 2015 as well as the explanations of the seven indicators is reflected on
the remaining pages of this report.
2
2014-2015 Ratings Based on Fiscal Year
2014 Data – Charter School Status Detail
(CY)
FY
13/14
(PY)
FY
12/13
Indicator Description
Current
Year
Score
Prior
Year
Score
Passed
Superior
Achievement
1 4
Was The Charter Holder’s Annual Financial Report Filed
Within One Month After The November 27th Or January
28th Deadline Depending Upon The Charter School’s
Fiscal Year End Date (June 30th Or August 31st)?
YES YES
2 5 Was There An Unmodified Opinion In The Charter
Holder’s Annual Financial Report?
YES
YES
3 *
Was The Charter School In Compliance With The
Payment Terms Of All Debt Agreements At Fiscal Year
End?
YES N/A
4 2
Was The Total Net Asset Balance In The Statement Of
Financial Position For The Charter School Greater Than
Zero? (If The Charter School’s Five-Year Percent
Change In Students Was A 10% Increase Or More, Then
The Charter School Passes This Indicator).
YES YES
5 14 Was The Charter School’s Administrative Cost Ratio
Less Than The Threshold Ratio?
10 5
6 8
Did The Comparison Of PEIMS Data To Like
Information In The Charter School’s Annual Financial
Report Result In An Aggregate Variance Of Less Than
3% Of All Expenses (Data Quality Measure)?
10 5
7 6
Did The Charter Holder’s Annual Financial Report Not
Disclose Any Instance(s) Of Material Weaknesses In
Internal Controls?
10 YES
* 7 Are the Charter School’s Liabilities Less Than 80% Of
Its Assets?
N/A 5
* 3
Were There No Disclosures In The Charter Holder’s
Annual Financial Report And/or Other Sources Of
Information Concerning Default On Debt?
N/A YES
* 9
Was The Charter School’s Debt Related Expenses Less
Than $200 Per Student? (If The Charter School’s Five-
year Percent Change In Students Was A 7% Increase Or
More, Then The Charter School Receives 5 Points)
N/A 5
* 1
Did The Charter School Avoid Holds On Payments That
Were Not Cleared Within 30 Days, As A Result Of
Untimely Deposits To TRS Or TWC?
N/A YES
3
(CY)
FY
13/14
(PY)
FY
12/13
Indicator Description
Current
Year
Score
Prior
Year
Score
* 10 Was There No Disclosure In The Charter Holder’s
Annual Audit Report Of Material Noncompliance?
N/A 5
* 11
Did The Charter School Have No Monitor, Conservator,
Manager, Or Board Of Managers Assigned For Financial
Management Reasons?
N/A 5
* 12
Was The Charter School’s Aggregate Of Budgeted
Expenses Less Than The Aggregate Of Budgeted
Revenues And Cash And Investments At The Beginning
Of The Year?
N/A 5
* 13 Was The Charter School’s Current Ratio For All Net
Asset Groups Greater Than Or Equal To 1:1?
N/A 5
* 15 Was The Ratio Of Students To Teachers Within The
Ranges According To Charter School Size?
N/A 5
* 16 Was The Ratio Of Students To Total Staff Within The
Ranges According To Charter School Size?
N/A 5
* 17
Was The Decrease In The Charter School’s Total Net
Assets Less Than 20% Over Two Fiscal Years?
(Calculation Excludes Depreciation And Amortization)
N/A 5
* 18 Was The Charter School’s Aggregate Total Of Cash And
Investments More Than Zero?
N/A 5
* 19
Did The Charter School’s Investment Earnings In All Net
Asset Groups Meet Or Exceed the Average 3-Month
Treasury Bill Rate?
N/A 5
30 Score 65 Score
* Major changes occurred in the Commissioner’s Rule for the School FIRST rating system as authorized by HB 5,
passed by the 83rd Texas Legislature in 2013. Due to the complexity of the changes, modifications to the system
are phased in over a three year period beginning with the 2015 ratings worksheet. During this phase-in period
different worksheets are in place for each year through 2017, with the final worksheet in 2017 remaining in
effect for all future periods. As a result, these indicators were added/deleted for 2015.
4
2013-2014 Ratings Based on School Year 2012-2013 Data
A: Did The Charter School answer 'No' to indicators 1,2,3,4 OR did the Charter School answer
'No' to both 5 OR 6? If so, the Charter School’s rating is Substandard Achievement.
B: Determine rating by applicable range for summation of the indicator scores (INDICATORS
10-9)
Rating Points
Superior Achievement 60-65
Above Standard Achievement 55-59
Standard Achievement 50-54
Substandard Achievement 0-49
Suspended 0-0
Undetermined 0-0
Indicator 15 Ranges for
Ratios
Indicator 16 Ranges for Ratios
School Size - Number of
Students Low High School Size - Number of
Students Low High
< 500 7 22 < 500 5 14
500-999 10 22 500-999 5.8 14
2014-2015 Ratings Based on School Year 2013-2014 Data
A: Did The Charter School fail any of the critical indicators 1 through 4? If so, then the Charter
School's rating is F for Substandard Achievement, regardless of points earned.
B: Determine the rating by the applicable number of points.
Rating Points
Pass 16-30
Suspended 0-0
Substandard Achievement 0-15
Undetermined 0-0
Indicator 5
ADA Size: =>1,000 500-999 <500 Points
<= 0.1401 <= 0.1561 <= 0.2645 10
0.1402-0.1651 0.1562-0.1811 0.2646-0.2895 8
Threshold 0.1652-0.1901 0.1812-0.2061 0.2896-0.3145 6
Ratio 0.1902-0.2151 0.2062-0.2311 0.3146-0.3395 4
0.2152-0.2401 0.2312-0.2561 0.3396-0.3645 2
>0.2401 >0.2561 >0.3645 0
5
DISCUSSION OF BASE INDICATORS
1. Was The Charter Holder’s Annual Financial Report Filed Within One Month After The November
27th Or January 28th Deadline Depending Upon The Charter School’s Fiscal Year End Date (June
30th Or August 31st)?
This indicator merely states the Academy’s requirement for timely reporting.
The Annual Financial Report for the fiscal year ended August 31, 2014 was
approved by the Board of Trustees on January 12, 2015 and received by the Texas
Education Agency on January 14, 2015.
2. Was there an unmodified opinion in the Annual Financial and Compliance Report (AFR) on
the financial statements as a whole?
A “modified” version of the auditor’s opinion indicates that there exist one or more specific
exceptions to the auditors’ general assertion that the financial statements are fairly presented. The
Academy’s goal; therefore, is to receive an “unmodified opinion” on its Annual Financial Report.
This is a simple “Yes or No” indicator.
Westlake Academy obtained an unmodified audit opinion. This indicates that the
Academy’s records were in good condition and fairly present the Academy’s
financial position.
3. Was the charter school in compliance with the payment terms of all debt agreements at fiscal
year end? If the charter school was in default in a prior fiscal year, an exemption applies in
following years if the charter school is current on its forbearance or payment plan with the
lender and the payments are made on schedule for the fiscal year being rated. Also exempted
are technical defaults that are not related to monetary defaults. A technical default is a
failure to uphold the terms of a debt covenant, contract, or master promissory note even
though payments to the lender, trust, or sinking fund are current.
Westlake Academy has no bonded indebtedness obligations. All debt is
maintained by the Town of Westlake. All leases were paid in a timely manner.
6
4. Was the total Net Asset Balance in the Statement of Financial Position for the charter school
greater than zero? (If the charter school’s five-year percent change in students was 10% or
more, then the charter school passes this indicator.)
This indicator simply asks, “Did the Academy’s total assets exceed the total amount of liabilities
(according to the very first financial statement in the annual audit report)?”
Westlake Academy had a total net asset position of $940,049 on August 31, 2014.
5. Was the charter school’s administrative cost ratio less than the threshold ratio?
TEA sets a cap on the percentage of the budget that Texas school districts/charters can spend on
administration, which is based on the size of the school. (Admin Costs/Other Costs)
The cap on the administrative cost ratio set by TEA for the 2013-2014 fiscal year
was 15.61% for schools with a student population between 500 and 999. Westlake
Academy maintained an administrative cost ratio of 12.6% and met this
requirement.
6. Did the comparison of PEIMS data to like information in the charter school’s annual
financial report result in an aggregate variance of less than 3 percent of all expenses (data
quality measure)?
This indicator measures the quality of data reported to PEIMS and in the Academy’s Annual
Financial Report to make certain that the data reported in each case is consistent. The information
is compared in all fund types. The acceptable variance level is 3.0%.
The Academy met this requirement with a variance level of 0%.
7. Was the AFR free of any instance(s) of material weaknesses in internal controls over
financial reporting and compliances for local, state, or federal funds? The AICPA defines
material weakness and the external independent auditor determines if there are any
instances of material weakness.
An unmodified opinion on the Academy’s Annual Financial Report indicates that the Academy
had no material weaknesses in internal controls. Any internal weaknesses create a risk that the
Academy is not being able to properly account for its use of public funds and should be
immediately addressed.
Westlake Academy met this requirement by having no disclosure of a material
weakness in internal controls for the fiscal year ended August 31, 2014.
7
DISCLOSURES
Per Title 19 Administrative Code Chapter 109, Budgeting, Accounting, and Auditing, Subchapter
AA, Commissioner’s Rules Concerning Financial Accountability Rating System, Section
109.1001(o), the five (5) disclosures listed below are required for the financial management
report that is to be distributed at the School FIRST public hearing.
1. Superintendent’s current employment contract:
A copy of the superintendent’s current employment contract at the time of the School
FIRST hearing is to be provided.
Per the Westlake Academy charter, the Town Manager assumes the responsibilities
of the Superintendent with no separate contract. The manager’s contract is
approved by the Town Council and all salary/benefits and other forms of
compensation are paid by the Municipality. No salary is expensed through
Westlake Academy.
2. Reimbursement received by the Superintendent and Board Members:
All “reimbursement” expenses, regardless of the manner of payment, including direct pay,
credit card, cash, and purchase order are to be reported. Items to be reported per category
include:
o Meals – Meals consumed out of town, and in geographic-boundary meals at area
restaurants (outside of board meetings, excludes catered board meeting meals).
o Lodging – Hotel charges
o Transportation – Airfare, car rental (can include fuel on rental, taxis, mileage
reimbursements, leased cars, parking and tolls.)
o Motor fuel – gasoline
o Other – Registration fees, telephone/cell phone, internet service, fax machine, and
other reimbursements (or on-behalf of) to the superintendent and board member
not defined above.
There were no “reimbursement” expenses received by the Superintendent or
Board Members during the fiscal year 2013-2014.
3. Outside compensation and/or fees received by the Superintendent for Professional
consulting and/or other personal services.
Compensation does not include business revenues generated from a family business
(farming, ranching, etc.) that has no relation to charter school business.
There was no compensation and/or fees received by the Superintendent for
Professional consulting and/or other personal services during the fiscal year
2013-2014.
8
4. Gifts received by Executive Officers and Board Members (and first degree relatives, if any)
gifts that had an economic value of $250 or more in the aggregate in the fiscal year)
An executive officer is defined as the superintendent, unless the board of trustees or the
charter school administration names additional staff under the classification for local
officials.
There were no gifts received by Executive Officers and Board Members (and
first degree relatives) during the fiscal year 2013-2014.
5. Business transactions between Charter School and Board Members
The summary amounts reported under this disclosure are not to duplicate the items
disclosed in the summary schedule of reimbursements received by board members.
There were no business transactions between Westlake Academy and Board
Members during the fiscal year 2013-2014.
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GLOSSARY
Accounting: A standard school fiscal accounting system must be adopted and installed by the
board of trustees of each school. The accounting system must conform to generally accepted
accounting principles. This accounting system must also meet at least the minimum
requirements prescribed by the state board of education, subject to review and comment by the
state auditor.
All Funds: A school’s accounting system is organized and operated on a fund basis where each
fund is a separate fiscal entity in the school much the same as various corporate subsidiaries are
fiscally separate in private enterprise. All Funds refers to the combined tot al of all the funds
listed below:
• The General Fund
• Special Revenue Funds (Federal Programs, Federally Funded Shared Services,
State
Programs, Shared State/Local Services, Local Programs)
• Debt Service Funds
• Capital Projects Funds
Assigned Fund Balance: The assigned fund balance represents tentative plans for the future use
of financial resources. Assignments require executive management (if approved per board
policy to assign this responsibility to executive management) action to earmark fund balance for
bona fide purposes that will be fulfilled within a reasonable period of time. The assignment and
dollar amount for the assignment may be determined after the end of the fiscal year when final
fund balance is known.
Auditing: Accounting documents and records must be audited annually by an independent
auditor. TEA is charged with review of the independent audit of the local education agencies.
Beginning Fund Balance: The fund balance on the first day of a new fiscal year. For most
schools this is equivalent to the fund balance at the end of the previous fiscal year.
Budget: The projected financial data for the current school year. Budget data are collected
for the General Fund, Food Service Fund, and Debt Service Fund.
Budgeting: Not later than August 20th of each year, the superintendent (or designee) must
prepare a budget for the school if the fiscal year begins on September 1st. (For those schools with
fiscal years beginning July 1, this date would be June 19.) The legal requirements for funds to be
budgeted are included in the Budgeting module of the TEA Resource Guide. The budget must be
adopted before expenditures can be made, and this adoption must be prior to the setting of the tax
rate for the budget year. The budget must be itemized in detail according to classification and
purpose of expenditure, and must be prepared according to the rules and regulations established
by the state board of education. The adopted budget, as necessarily amended, shall be filed with
TEA through the Public Education Information Management System (PEIMS) as of the date
prescribed by TEA.
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Capital Outlay: This term is used as both a Function and an Object. Expenditures for
land, buildings, and equipment are covered under the object, Capital Outlay. The amount spent
on acquisitions, construction, or major renovation of school facilities are reported under the
function, Capital Outlay.
Cash: The term, as used in connection with cash flows reporting, includes not only currency on
hand, but also demand deposits with banks or other financial institutions. Cash also includes
deposits in other kinds of accounts or cash management pools that have the general
characteristics of demand deposit accounts in that the governmental enterprise may deposit
additional cash at any time and also effectively may withdraw cash at any time without prior
notice or penalty.
Committed Fund Balance: The committed fund balance represents constraints made by the
board of trustees for planned future use of financial resources through a resolution by the board,
for various specified purposes including commitments of fund balance earned through campus
activity fund activities. Commitments are to be made as to purpose prior to the end of the fiscal
year. The dollar amount for the commitment may be determined after the end of the fiscal
year when final fund balance is known.
Debt Service: The function, Debt Service, is a major functional area that is used for
expenditures that are used for the payment of debt principal and interest. Expenditures that are
for the retirement of general obligation bonds, capital lease principal, and other debt, related
debt service fees, and for all debt interest fall under this function. The object, Debt Service,
covers all expenditures for debt service.
Deferred Revenue: Resource inflows that do not yet meet the criteria for revenue recognition.
Unearned amounts are always reported as deferred revenue. In governmental funds, earned
amounts also are reported as deferred revenue until they are available to liquidate liabilities of
the current period.
Ending Fund Balance: The amount of unencumbered surplus fund balance reported by the
School at the end of the specified fiscal year. For most schools, this will be equivalent to the
fund balance at the beginning of the next fiscal year.
Excess (Deficiency): Represents receivables due (excess) or owed (deficiency) at the end of
th e school year.
Federal Revenues: Revenues paid either directly to the district or indirectly through a local or
state government entity for federally subsidized programs including the School Breakfast
Program, National School Lunch Program, and School Health and Related Services Program.
This amount is recorded as Revenue Object 5900.
Fiscal Year: A period of 12 consecutive months legislatively selected as a basis for annual
financial reporting, planning, and budgeting. The fiscal year may run September 1 through
August 31 or July 1 through June 30.
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Foundation School Program (FSP) Status: Is the shared financial arrangement between the
state and the school, where property taxes are blended with revenues from the state to cover
the cost of basic and mandated programs. The nature of this arrangement falls in one of the
following status categories: Regular, Special Statutory, State Administered, Education Service
Center, or Open Enrollment Charter School.
FTE: Full-Time Equivalent (FTE) measures the extent to which one individual or student
occupies a fulltime position or provides instruction, e.g., a person who works four hours a day
or a student that attends a half of a day represents a .5 FTE.
Function: Function codes identify the expenditures of an operational area or a group of related
activities. For example, in order to provide the appropriate atmosphere for learning, schools
transport students to school, teach students, feed students and provide health services. Each of
these activities is a function. The major functional areas are:
• Instruction and Instructional-Related Services
• Instructional and School Leadership
• Support Services – Student
• Administrative Support Services
• Support Services - Non-Student Based
• Ancillary Services
• Debt Service
• Capital Outlay
• Intergovernmental Charges
Fund Balance: The difference between assets and liabilities reported in a governmental fund.
General Administration: The amount spent on managing or governing the school as an overall
entity.
General Fund: This fund finances the fundamental operations of the School in partnership with
the community. All revenues and expenditures not accounted for by other funds are included.
This is a budgeted fund and any fund balances are considered resources available for current
operations.
Instruction: The amount spent on direct classroom instruction and other activities that deliver
enhance or direct the delivery of learning situations to students regardless of location or
medium.
Local & Intermediate Revenues: All revenues from local taxes and other local and
intermediate revenues. For specifics, see the definitions for Local Tax and Other Local &
Intermediate Revenues. This amount is recorded under Object 5700.
Modified Opinion: Term used in connection with financial auditing. A modification of the
independent auditor's report means there exists one or more specific exceptions to the auditor's
general assertion that the district’s financial statements present fairly the financial information
contained therein according to generally accepted accounting principles.
Nonspendable Fund Balance: The portion of fund balance that is in non-liquid form, including
inventories, prepaid items, deferred expenditures, long-term receivables and encumbrances (if
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significant). Nonspendable fund balance may also be in the form of an endowment fund
balance that is required to remain intact.
Object: An object is the highest level of accounting classification used to identify either the
transaction posted or the source to which the associated monies are related. Each object is
assigned a code that identifies in which of the following major object groupings it belongs:
• Assets
• Liabilities
• Fund Balances
• Revenue
• Expenditures/Expenses
• Other Resources/NonOperating Revenue/Residual Equity Transfers In
• Other Uses/NonOperating Revenue/Residual Equity Transfers Out
Operating Expenditures: A wide variety of expenditures necessary to a school’s operations
fall into this category with the largest portion going to payroll and related employee benefits and
the purchase of goods and services.
Operating Expenditures/Student: Total operating expenditures divided by the total number of
enrolled students.
Operating Revenues and Expenses: Term used in connection with the proprietary fund
statement of revenues, expenses, and changes in net assets. The term is not defined as such
in the authoritative accounting and financial reporting standards, although financial statement
preparers are advised to consider the definition of operating activities for cash flows reporting
in establishing their own definition.
Other Local & Intermediate Revenues: All local and intermediate revenues NOT from local
real and personal property taxes including:
• Revenues Realized as a result of services rendered to other schools
• Tuition and Fees
• Rental payments, interest, investment income
• Sale of food and revenues from athletic and extra/co-curricular activities
• Revenues from counties, municipalities, utility districts, etc.
Other Operating Costs: Expenditures necessary for the operation of the school that are NOT
covered by Payroll Costs, Professional and Contracted Services, Supplies and Materials, Debt
Services, and Capital Outlay fall into this category and include travel, insurance and bonding
costs, election costs, and depreciation. This amount is recorded as Expenditure/Expense Object
6400.
Other Resources: This amount is credited to total actual other resources or non-operating
revenues received or residual equity transfers in. This amount is recorded under Object 7020.
Payroll: Payroll costs include the gross salaries or wages and benefit costs for services or tasks
performed by employees at the general direction of the school. (NOTE: Payroll amounts do
not include salaries for contract workers employed by outsource companies, e.g., for child
nutrition and maintenance. Therefore, this figure will vary significantly between schools that
use contract workers and those that do not.)
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PEIMS: Public Education Information Management System, a state-wide data management
system for public education information in the State of Texas. One of the basic goals of PEIMS,
as adopted b y the State Board of Education in 1986, is to improve education practices of local
schools. PEIMS is a major improvement over previous information sources gathered from
aggregated data available on paper reports. Schools submit their data via standardized
computer files. These are defined in a yearly publication, the PEIMS Data Standards.
Plant Maintenance & Operations: The amount spent on the maintenance and operation of the
physical plant and grounds and for warehousing.
Modified Opinion: Term used in connection with financial auditing. A modification of the
independent auditor’s report on the fair presentation of the financial statements indicating that
there exists one or more specific exceptions to the auditor’s general assertion that the financial
statements are fairly presented.
Refined ADA: Refined Average Daily Attendance (also called RADA) is based on the number
of days of instruction in the school year. The aggregate eligible day’s attendance is divided by
the number of days of instruction to compute the refined average daily attendance.
Restricted Fund Balance: This is the portion of fund balance that has externally enforceable
constraints made by outside parties
Revenues: Any increase in a school’s financial resources from property taxes, foundation
fund entitlements, user charges, grants, and other sources. Revenues fall into the three broad
sources of revenues: Local & Intermediate, State, and Federal.
School Year: The twelve months beginning July 1 of one year and ending June 30 of the
following year or beginning September 1 and ending August 31. Schools now have two options.
Special Revenue Fund: A governmental fund type used to account for the proceeds of specific
revenue sources (other than for major capital projects) that are legally restricted to expenditures
for specified purposes.
State Revenues: Revenues realized from the TEA, other state agencies, shared
services arrangements, or allocated on the basis of state laws relating to the Foundation School
Program Act. This amount is recorded as Revenue Object 5800.
Unassigned Fund Balances: Available expendable financial resources in a governmental fund
that are not the object of tentative management plans (i.e., committed or assigned). One primary
criterion of rating agencies for school bonds is the relative amount of unassigned fund balance.
Bond rating agencies view unassigned fund balances as a reflection of the financial strength
of school and show concern when school fund balances decrease.
Unmodified Opinion: Term used in connection with financial auditing. An unmodified
independent auditor’s opinion means there are no stated exceptions to the auditor’s general
assertion that the district’s financial statements present fairly the financial information
contained according to generally accepted accounting principles.
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Unrestricted Net Asset Balance: Unrestricted net asset balance refers to the portion of
total net assets that is neither invested in capital assets nor restricted.
WADA: Weighted Average Dail y Attendance (WADA) is used to measure the extent students
are participating in special programs. The concept of WADA in effect converts all of a school’s
students with their different weights to a calculated number of regular students required to raise
the same amount of revenue. The greater the number of students eligible for special
entitlements, the greater a school‘s WADA will be.
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FUTURE AGENDA ITEMS: Any Board member may request at a workshop and / or
Board meeting, under “Future Agenda Item Requests”, an agenda item for a future Board
meeting. The Board member making the request will contact the Superintendent with the
requested item and the Superintendent will list it on the agenda. At the meeting, the
requesting Board member will explain the item, the need for Board discussion of the item,
the item’s relationship to the Board’s strategic priorities, and the amount of estimated staff
time necessary to prepare for Board discussion. If the requesting Board member receives
a second, the Superintendent will place the item on the Board agenda calendar allowing
for adequate time for staff preparation on the agenda item.
- None
Westlake Academy
Item #6 - Future
Agenda Items
Westlake Academy
Item # 7 –
Adjournment