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HomeMy WebLinkAbout12-03-18 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. Page 1 of 4 WESTLAKE ACADEMY Vision Statement Westlake Academy inspires college bound students to achieve their highest individual potential in a nurturing environment that fosters the traits found in the IB Learner Profile: Inquirers, Knowledgeable, Thinkers, Communicators, Principled, Open-Minded, Caring, Risk-takers, Balanced and Reflective BOARD OF TRUSTEES MEETING AGENDA December 3, 2018 1500 Solana Boulevard Building 7, Suite 7100 1st FLOOR, COUNCIL CHAMBER WESTLAKE, TX 76262 Workshop Session 5:00 p.m. Regular Session 6:00 p.m. Page 2 of 4 Work Session 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. RECOGNIZING THE NO ONE EATS ALONE PROGRAM. 4. RECOGNIZING THE FALL SPORTS TEAMS. 5. REPORTS Reports are prepared for informational purposes and will be accepted as presented. (there will no presentations associated with the report items) There will be no separate discussion unless a Trustee requests that report be removed and considered separately. a. Report on the proposed parent survey for school year 2018-2019. 6. REVIEW OF CONSENT AGENDA ITEMS LISTED ON THE REGULAR MEETING AGENDA. 7. DISCUSSION ITEMS a. Presentation and discussion of the FY 2017-2018 annual audit report from Weaver and Tidwell, L.L.P. b. Discussion of the Planning Process, Schedule, and Guiding Principles for an Updated/New Westlake Academy Facility Master Plan. 8. BOARD RECAP / STAFF DIRECTION 9. 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. Page 3 of 4 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. 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 October 29, 2019, meeting. b. Consider approval of the minutes from the November 5, 2018, meeting. c. Consider approval of Resolution 18-14, Approving the Fiscal Year 2017-2018 annual audit report from Weaver and Tidwell, L.L.P. d. Consider approval of Resolution 18-15, Approving a trip to Canada regarding French Language Immersion Experience in Quebec. 5. 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. Page 4 of 4 6. 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, 1500 Solana Blvd., Building 7, Suite 7100, Westlake, TX 76262, on November 28, 2018, 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. The 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. Page 1 of 2 WESTLAKE ACADEMY Vision Statement Westlake Academy inspires college bound students to achieve their highest individual potential in a nurturing environment that fosters the traits found in the IB Learner Profile: Inquirers, Knowledgeable, Thinkers, Communicators, Principled, Open-Minded, Caring, Risk-takers, Balanced and Reflective BOARD OF TRUSTEES MEETING AMENDED AGENDA December 3, 2018 1500 Solana Boulevard Building 7, Suite 7100 1st FLOOR, COUNCIL CHAMBER WESTLAKE, TX 76262 Workshop Session 5:00 p.m. Regular Session 6:00 p.m. Page 2 of 2 Regular Session AS AMENDED ITEM 4a 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 October 29, 2018, meeting. b. Consider approval of the minutes from the November 5, 2018, meeting. c. Consider approval of Resolution 18-14, Approving the Fiscal Year 2017-2018 annual audit report from Weaver and Tidwell, L.L.P. d. Consider approval of Resolution 18-15, Approving a trip to Canada regarding French Language Immersion Experience in Quebec. 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, 1500 Solana Blvd., Building 7, Suite 7100, Westlake, TX 76262, on November 30, 2018, by 1:00 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. Board of Trustees Item # 2 – Pledge of Allegiance Texas Pledge: “Honor the Texas flag; I pledge allegiance to the, Texas, one state under God, one and indivisible.” 3. RECOGNIZING THE NO ONE EATS ALONE PROGRAM. Board of Trustees Item # 3 – No Supporting Documentation 4. RECOGNIZING THE FALL SPORTS TEAMS. Board of Trustees Item # 4 – No Supporting Documentation REPORTS Reports are prepared for informational purposes and will be accepted as presented. (there will no presentations associated with the report items) There will be no separate discussion unless a Trustee requests that report be removed and considered separately. a. Report on the proposed parent survey for school year 2018-2019. Board of Trustees Item #5 – Reports Page 1 of 2 estlake Academy Board of Trustees TYPE OF ACTION Workshop - Report Westlake Board Meeting Monday, December 03, 2018 TOPIC: Report on the proposed Parent Survey for School Year 2018-2019. STAFF CONTACT: Amanda DeGan, Assistant Town Manager Strategic Alignment Vision, Value, Mission Perspective Curriculum Outcome Objective Academic Excellence Citizen, Student & Stakeholder PYP / MYP / DP Increase Stakeholder Satisfaction Strategic Initiative Outside the Scope of Identified Strategic Initiatives Time Line - Start Date: December 3, 2018 Completion Date: April 30, 2019 Funding Amount: $6,294 Status - Funded Source - General Fund EXECUTIVE SUMMARY (INCLUDING APPLICABLE ORGANIZATIONAL HISTORY) Over the past several years, we have utilized an outside consulting firm to conduct a parent survey for Westlake Academy. We have completed six (6) survey cycles with ETC Institute (based in Kansas) and are presenting the survey questions for our next bi-annual process. We anticipate that the survey process will begin in December, with additional follow-up phone calls and mail-outs occurring in January. The goal is to arrive at statistically significant results that the Board and Staff may use to plan for the coming school years. Page 1 of 2 2 RECOMMENDATION Staff recommends review and feedback of the proposed survey questions. ATTACHMENTS Survey Document Westlake Academy / Board of Trustee Parent Survey 1. Satisfaction with Westlake Academy: Using a scale of 1 to 5 where 5 means “very satisfied” and 1 means “very dissatisfied,” please rate your satisfaction with the following items: How satisfied are you with: Very Satisfied Satisfied Neutral Dissatisfied Very Dissatisfied Don’t Know N/A A. PYP faculty & staff 5 4 3 2 1 9 8 B. MYP faculty & staff 5 4 3 2 1 9 8 C. DP faculty & staff 5 4 3 2 1 9 8 D. PYP Curriculum 5 4 3 2 1 9 8 E. PYP Math Program 5 4 3 2 1 9 8 F. MYP Curriculum 5 4 3 2 1 9 8 G. MYP Math Program 5 4 3 2 1 9 8 H. Language B Program (foreign language program) 5 4 3 2 1 9 8 I. DP Curriculum 5 4 3 2 1 9 8 J. Secondary Gradebook on TxEIS 5 4 3 2 1 9 8 K. The Security Check-In System at Main Entrances 5 4 3 2 1 9 8 L. Extracurricular sports programs 5 4 3 2 1 9 8 M. Other extracurricular programs 5 4 3 2 1 9 8 N. Academic progress of your child 5 4 3 2 1 9 8 O. Social and emotional progress of your child 5 4 3 2 1 9 8 P. Academy website 5 4 3 2 1 9 8 Q. Communication regarding issues/problems related to your child 5 4 3 2 1 9 8 R. Quality of communication from WA 5 4 3 2 1 9 8 S. Methods of communication from WA 5 4 3 2 1 9 8 T. The WA House system for students (Thoreau, Wheatley, Whitman and Keller) 5 4 3 2 1 9 8 U. Effectiveness of the House of Commons (HOC) 5 4 3 2 1 9 8 V. Effectiveness of the Westlake Academy Foundation (WAF) 5 4 3 2 1 9 8 W. Effectiveness of the Westlake Academy Athletic Club (WAAC) 5 4 3 2 1 9 8 X. The Primary Counseling department 5 4 3 2 1 9 8 Y. The Secondary Counseling department 5 4 3 2 1 9 8 Z. College preparation process 5 4 3 2 1 9 8 AA. Primary Report Card 5 4 3 2 1 9 8 BB. Secondary Report Card 5 4 3 2 1 9 8 CC. Secondary Gradebook on ManageBac 5 4 3 2 1 9 8 DD. Opportunities for parental involvement 5 4 3 2 1 9 8 EE. Opportunities for parent input 5 4 3 2 1 9 8 FF. The school uniform vendor 5 4 3 2 1 9 8 GG. The school lunch program 5 4 3 2 1 9 8 HH. Maintenance of the Academy 5 4 3 2 1 9 8 II. Overall, how satisfied are you with the quality of education provided by Westlake Academy? 5 4 3 2 1 9 8 2. Which THREE of the items listed in Question 1 are the most important to you? [Write in the letters below.] 1st ______ 2nd _______ 3rd _______ 3. Communication and Outreach: Using a scale of 1 to 5 where 5 means “Strongly Agree” and 1 means “Strongly Disagree,” please rate the following items: How strongly do you agree with the following: Strongly Agree Agree Neutral Disagree Strongly Disagree Don’t Know N/A A. The on-campus administrative staff is friendly and helpful 5 4 3 2 1 9 8 B. My child’s teacher(s) responds quickly to my inquiries 5 4 3 2 1 9 8 C. My child’s teacher(s) keep me informed about their progress 5 4 3 2 1 9 8 D. I am informed about what is going on in my child’s programme 5 4 3 2 1 9 8 E. The Academy’s teaching, assessments, and learning reflects the IB Philosophy 5 4 3 2 1 9 8 F. Academy administrators respond to my questions in a timely manner 5 4 3 2 1 9 8 G Email is my preferred method of communication with my child’s teacher 5 4 3 2 1 9 8 H. Phone calls are my preferred method of communication with my child’s teacher I. I receive information from my child’s school with enough time to be involved in events, classroom or school-wide activities 5 4 3 2 1 9 8 4. Using a scale of 1 to 5 where 5 means “Strongly Agree” and 1 means “Strongly Disagree,” please rate your level of agreement with the following statements about Westlake Academy’s Communiqué: How strongly do you agree with the following: Strongly Agree Agree Neutral Disagree Strongly Disagree Don’t Know N/A A. Provides important school information 5 4 3 2 1 9 8 B. Is attractive and interesting 5 4 3 2 1 9 8 C. Is easy to read 5 4 3 2 1 9 8 5. Is the frequency (amount) of communications you receive from the Academy and their affiliate groups (House of Commons, Westlake Academy Foundation, Westlake Academy Athletic Club, etc.): _____ (1) Adequate _____ (2) Emailed / Received Too often _____ (3) Not enough 6. If you could make one suggestion to improve our Academy communication, what would it be? ______________________________________________________________________________________________ 7. Using a scale of 1 to 5 where 5 means “Strongly Agree” and 1 means “Strongly Disagree,” please rate your level of agreement with the following statements about Managebac: How strongly do you agree with the following: Strongly Agree Agree Neutral Disagree Strongly Disagree Don’t Know N/A A. Is a user-friendly learning management system 5 4 3 2 1 9 8 B. Easy to navigate to find course and assessment information 5 4 3 2 1 9 8 C. Provides real time information on student performance 5 4 3 2 1 9 8 D. Improves communication between teachers, parents & students 5 4 3 2 1 9 8 8. Are you currently volunteering at the Academy? ____(1) Yes ____(2) No 8a. If YES to #7: How many hours each year? _______________________________________ 8b. If NO to #7: Would you like to volunteer? ____(1) Yes ____(2) No If YES, How? ___________________ 9. Are you willing to serve as an expert in your field for classroom instruction (i.e., guest speaker) ____(1) Yes ____(2) No 9a. If YES to #9: What is your area of expertise? ____________________________________________________ 10. Are you participating in the annual Blacksmith Campaign through the Westlake Academy Foundation? ____(1) Yes ____(2) No 10a. If NO, why not?____________________________________________________________________________ 11. How many parent teacher/student led conferences did you attend last year? ____(1) None ___(2) One ___(3) Two ___(4) Three or more 12. Have you had any problems scheduling parent-teacher conferences? ____(1) Yes ____(2) No 12a. If YES: what problems have you had? __________________________________________________ 13. Do you reference the Academy master calendar on a regular basis? ____(1) Yes ____(2) No 13a. If NO to #13: Why not? _____________________________________________________________________ 14. Is your child receiving off campus tutoring? ____(1) Yes ____(2) No 14a. If YES, Where? (e.g Sylvan, Kumon, etc.) Please list:___________________________________________ 14b. What subject(s)?________________________________________________________________________ 14c. How many hours per week? ______________ 15. Is your child receiving on-campus tutoring? ____(1) Yes ____(2) No 15a. If YES, what subjects?_______________________________________________________________________ 15b. If NO, why not?_____________________________________________________________________________ 16. How is your child progressing academically? ___(1) Ahead of where you would expect him/her to be ___(2) About where you would expect him/her to be ___(3) Behind where you would expect him/her to be 17. Are you pleased with your child’s progress? ____(1) Yes ____(2) No 17a. If NO to #17, why not? _______________________________________________________________________ 18. Do you feel your child is emotionally safe at school? ____(1) Yes ____(2) No 19. Do you feel your child is physically safe at school? ____(1) Yes ____(2) No 20. Do you believe you have an adequate understanding of the IB curriculum? ____(1) Yes ____(2) No 21. Do you have a child with a learning disability that utilizes special education services? ____(1) Yes ____(2) No 21a. If YES to #21: Are you satisfied with the accommodations/services provided by Westlake Academy? ____(1) Yes ____(2) No 21b. If NO to #21a: Why not? _________________________________________________________________ 22. What do you like BEST about Westlake Academy?______________________________________________________ 23. If your child was not enrolled at Westlake Academy, where would your child most likely attend school? ____(1) A public school where I live ____(2) A private school ____(3) Home School 24. What ONE thing would you most like to improve at Westlake Academy? ________________________________________________________________________________________ DEMOGRAPHICS 25. Do you live in the Town of Westlake? ____(1) Yes ____(2) No 25a. If YES to #25: How important was Westlake Academy in your decision to move to Westlake? ____(4) Very important ____(3) Somewhat important ____(2) Not sure ____(1) Not important 25. Which of the following BEST describes your total annual household income? ___(1) Under $50,000 ___(3) $150,000 - $500,000 ___(2) $50,000 - $149,999 ___(4) Over $500,000 26. For how many years have you had at least one child attending Westlake Academy? _______year(s) 27. In which grades do you currently have children enrolled at Westlake Academy? (check all that apply) ___(00) Kindergarten ___(01) 1st grade ___(02) 2nd grade ___(03) 3rd grade ___(04) 4th grade ___(05) 5th grade ___(06) 6th grade ___(07) 7th grade ___(08) 8th grade ___(09) 9th grade ___(10) 10th grade ___(11) 11th grade ___(12) 12th grade 28. How many adults live in your home? ___________ 29. How many adults in your home are employed full-time outside of the home? _____(0) None _____(1) One _____(2) Two or more UNDERSTANDING WHO WE ARE 30. What do you value most about your child’s education at Westlake Academy? (Please rank the following 1 through 8, with 1 being MOST important and 8 being LEAST important.) _____ (A) IB Curriculum _____ (B) Ranking _____ (C) Public Charter School _____ (D) International Focus _____ (E) Reputation _____ (F) Class Size _____ (G) Quality of Instruction _____ (H) College Preparation 31. If you have additional comments, please provide them in the space below: ____________________________________________________________________________________________ ____________________________________________________________________________________________ THANK YOU! Please return your completed survey in the postage-paid envelope that was provided addressed to: ETC Institute, 725 W. Frontier Circle, Olathe, KS 66061 REVIEW OF CONSENT AGENDA ITEMS a. Consider approval of the minutes from the October 29, 2019, meeting. b. Consider approval of the minutes from the November 5, 2018, meeting. c. Consider approval of Resolution 18-14, Approving the Fiscal Year 2017- 2018 annual audit report from Weaver and Tidwell, L.L.P. d. Consider approval of Resolution 18-15, Approving the Trip to Canada regarding French Language Immersion Experience in Quebec. Board of Trustees Item # 6 – Review of Consent Agenda Items DISCUSSION ITEMS a. Presentation and discussion of the FY 2017-2018 annual audit report from Weaver and Tidwell, L.L.P. b. Discussion of the Planning Process, Schedule, and Guiding Principles for an Updated/New Westlake Academy Facility Master Plan. Board of Trustees Item # 7 – Discussion Items estlake Academy Board of Trustees TYPE OF ACTION Workshop - Discussion Item Westlake Board Meeting Monday, December 03, 2018 TOPIC: Presentation and Discussion of the FY 2017-2018 annual audit report from Weaver and Tidwell, L.L.P. STAFF CONTACT: Debbie Piper Finance Director Strategic Alignment Vision, Value, Mission Perspective Curriculum Outcome Objective Vision: Westlake Academy inspires college bound students to achieve their highest individual potential in a nuturing environment that fosters the traits found in the IB Learner Profile. Fiscal Stewardship PYP / MYP / DP Improve Financial Stewardship Strategic Initiative Outside the Scope of Identified Strategic Initiatives Time Line - Start Date: September 1, 2017 Completion Date: August 31, 2018 Funding Amount: $16,690 Status - Funded Source - General Fund EXECUTIVE SUMMARY (INCLUDING APPLICABLE ORGANIZATIONAL HISTORY) Weaver and Tidwell, L.L.P. has completed the Westlake Academy 2017-2018 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. Upon your review of the Governance Letter attached, please note, on the last page, an entry that the auditor’s passed on related to a lease payment. In FY 16-17 the payment was posted as a prepaid and not expensed to FY 16-17 because it wasn’t due until September 1st. One payment had already been made on the lease for the current year. The entry proposed by the auditor would have expensed two lease payments in one year. The audit partner stated that once a debt payment is made, it must be recognized as an expenditure. I disagreed, and we continued to debate the validity of the entry. In the end, they passed on proposing this entry. The current year entry is the opposite. They proposed to take the lease payment out of the expenditures (which would have shown that nothing was paid on the lease) but again we disagreed, and they again passed on the entry. Although we were $27K over budget related to expenditures; this amount was offset by revenue which was $170,557 over budget giving the Academy $143,760 (6 days) over the budgeted fund balance. The ending fund balance of $1,105,605 equals 48 operating days. Following is a summary of the major variances. This schedule reflects only the General Fund. REVENUES – Over budget by $170,557 with the majority being due: (1) the State year- end receivable calculation which was 2 days more than budgeted, and (2) the student count throughout the year fluctuated as high as 881 at times and was budgeted at 852. EXPENDITURES – Over budget by $26,797 primarily due to employee position changes subsequent to the budget adoption, which included additional stipends, replacement of teachers leaving with ones that had more years of service; therefore, more salary expenditure, etc. Although the salary variance appears large at $71K, it represented a mere .14% of the total salary budget. This overage was offset by several functions that were under budget. In response to the payroll situation, Westlake Academy Finance and Human Resources implemented the Position Management Information System (PMIS), which was used as a parallel process during the FY 2018-2019 budget process. The PMIS system allows budgeting by position, which will replace the previous method used, and includes both Finance and Human Resource staff in the planning and decision-making process. Please review the Management Discussion and Analysis document included in the audit report for statistical information during the year ended August 31, 2018. RECOMMENDATION Recommend approval of the resolution approving the FY 2017-2018 annual audit as submitted. ATTACHMENTS 1. Presentation presented at meeting 2. Link to audit under regular session estlake Academy Board of Trustees TYPE OF ACTION Workshop - Discussion Item Westlake Board Meeting Monday, December 03, 2018 TOPIC: Discussion of the Planning Process, Schedule, and Guiding Principles for an Updated/New Westlake Academy Facility Master Plan. STAFF CONTACT: Tom Brymer, Town Manager/Superintendent, Westlake Academy Strategic Alignment Vision, Value, Mission Perspective Curriculum Outcome Objective Respect for Self and Others Citizen, Student & Stakeholder PYP / MYP / DP Improve the Efficiences of Operational Systems Strategic Initiative Time Line - Start Date: December 3, 2018 Estimated Completion Date: December 9, 2019 Funding Amount: $85,000 (up to) Status - Funded Source - Capital Projects Fund EXECUTIVE SUMMARY (INCLUDING APPLICABLE ORGANIZATIONAL HISTORY) A detailed chronology of the Town Council and Board of Trustee meetings where this topic has been discussed over the last several months is contained in the attached memorandum from the Town Manager/Superintendent. Most recently, on October 29, 2028, the Town Council approved a contract with Stantec services related to preparing an updated/new campus facility master plan for Westlake Academy. Since then Stantec representatives have met with Staff and collaborated on a proposed process and schedule for preparing this campus facility master plan. Stantec representatives, along with Staff, will be at this workshop to solicit Board input regarding this proposed process, its schedule, as well as discuss and receive Board input on guiding principles for this process. RECOMMENDATION First, review the proposed process and schedule (see attachments) and provide input and direction to Stantec representatives and the Staff regarding it. Second, provide input and direction to Stantec and Staff regarding guiding principles for this process. ATTACHMENTS 1. Memo dated 5 3 18 from Town Manager/Superintendent outlining a proposed process for moving forward on capital planning for Westlake Academy facilities. 2. Memo dated 11 20 18 from Town Manager/Superintendent outlining Council/BOT discussions since late 2017/early 2018 on this iteration of facility master planning for Westlake Academy. 3. Proposed process and schedule for preparing an updated/new campus facility master plan for Westlake Academy. Page 1 of 4 MEMORANDUM Date: May 1, 2018 TO: Honorable Mayor and Town Council/Board of Trustees FROM: Tom Brymer, Town Manager/Superintendent SUBJECT: Capital Improvement/Facility Planning for Westlake Academy Background and Purpose of this Memorandum WA campus facility master planning was discussed at a joint Town Council/Board of Trustees workshop on February 5, 2018. Much discussion between Staff and the Council/Board ensued, with a consensus that further discussion on this topic was needed. Specifically, the discussion on February 5th with the Council/Board focused on the need and desire to re-address capital improvement planning for Westlake Academy. Presently we have a multi-year Westlake Academy (WA) Campus Facility Master Plan that was adopted by the Town Council on November 12, 2012 and by the Board of Trustees on November 5, 2012. Much time and effort as well as financial resources were invested in this Plan. Since it has been almost six years since it was approved and adopted, it is time to re-examine the Plan again, if for no other reason than to make sure it is still meeting the Town’s needs for its school, Westlake Academy. The purpose of this memorandum is to outline a proposed process for moving forward on capital planning for Westlake Academy facilities. CIP Process Generally and How WA Facility Planning Fits into It The purpose of the Town’s 5 Year Capital Improvement Plan (CIP) is to be a proactive tool that identifies projects for serious consideration that involve investing in new infrastructure or investment in existing infrastructure. The CIP tool is intended to achieve the outcome of insuring that the Town is adequately planning for, and investing in, both its new and existing infrastructure. Identification of capital project needs is important, so they can be considered holistically in conjunction with the operating financial needs of the Town in the annual budget. This in turn allows the Council/Board to make balanced long-term decisions about both the Town’s services and its Page 2 of 4 infrastructure within the context of the Town’s financial requirements and financial condition. As a subsidiary capital improvement plan, this current WA Campus Facility Plan (Plan) identifies projects that may be needed over a defined planning period. The importance of the Plan cannot be overstated if for no other reason than it allows the Town to avoid planning the campus in an incremental as opposed to a long range, holistic fashion. Once the Plan identifies projects (through a lengthy vetting process involving Staff and the Council) and Council is agreed to begin tentatively considering them, these projects are then placed in the Town’s overall 5 Year Capital Improvement Plan. The Town’s overall 5 Year CIP, in addition to possible WA capital projects, contains a variety of other identified capital projects including streets and drainage projects, fire stations and other public buildings, as well as parks other public infrastructure. All this capital improvement planning must consider the timing of projects, their priority, as well as the sources and uses of the financial resources necessary to fund for them. Recommended Process for Westlake Academy Capital/Facility Planning Staff is recommending the Council/BOT’s consideration of a “three pronged” approach, with parallel pathways conducted concurrently which ultimately intersect, thus moving us forward in both the short and the long term. First Step - Define and Identify Immediate WA Facility Needs. This requires a definition that both the Staff and the Council/Board are in consensus with regarding the term “immediate need” in the context of planning WA facility needs. Leadership Team members at both WA and in the Municipal portion of the Town organization have been working on such a definition. It is: An immediate need for WA capital/facility planning is a facility need that, if unaddressed over the next two years, will create an inability to fulfill WA’s VVM while posing a substantial physical, social-emotional, and/or academic risk to the success of the academy staff and/or students. To determine WA’s critical mass the following criteria will be assessed using a risk-analysis model: compliance, cost, and quality of student learning. • Compliance includes federal and state guidelines, IB Standards and Practices, strategic plan, and directives from the Board of Trustees. Page 3 of 4 • Cost includes the actual financial outlay for each item being considered in addition to costs associated with alternative service delivery options. • Quality of student learning refers to the ability of the academy to meet with unique educational needs of all learners while ensuring successful implementation of the IB curriculum. Short term as used here would be a period from now through the next 2 years. This definition of an “immediate need” project must create a “distillation” process which results in what is basically a forced ranking, i.e. a project that is so critical that WA’s ability to deliver educational services at the level it now does, is clearly affected deleteriously. Further, the current WA facility plan would also need to be reviewed to see if any of the Phase 2 and 3 projects identified in it should be considered as immediate need projects. Second Step - Begin the Medium and Long-Term Facility Planning Process for WA while considering immediate need projects. This would involve the following steps: • Review of the Current WA Facility Plan- this review would have as its objective to identify which projects in the current Plan are still viewed as valid and which are not. • For those projects viewed as still valid, seek agreement on their timing. It is recommended a time frame category be assigned to these projects still viewed as valid. This could be done several ways, but often simpler is better when going through this exercise. For example, “medium term” projects could be those with a 3-5-year time frame while long-term projects could be those with a 5 year plus planning horizon. • Retaining services of a school demographic forecasting firm to review previous student population growth forecasts related to residential growth in Westlake and make new forecasts based on this Westlake residential growth. This effort is underway using SDS, a school demographics analysis and forecasting firm that was used for the current WA Campus Facility Plan. • Deciding to use the services of a qualified school facilities planning firm to assist in updating the WA Campus Facility Plan. These firms are often architectural firms that design school facilities. It is important that a selected firm understand WA in terms of the type of school it is and what differentiates WA. The scope of this engagement would need to be Page 4 of 4 refined, i.e. should the plan examine only what is being offered by WA today or take a more future focus in terms of educational programming that might be needed over the next 5-10 years? Is facility planning at WA only going to focus on buildings, or other facility related planning needs such as land? Third Step - Intersection and Reconciliation of Immediate Needs Projects with the Campus Facility Plan. This is especially important if the decision is made to update the Plan for medium and long-range projects so that any immediate need project(s) would not represent an impediment to the execution of longer term projects (or vice versa). This reconciliation would need to occur concurrent to and early in the medium and long-range project planning process so both processes could move forward in tandem and not conflict. Conclusion Any process for capital improvement planning has both pros and cons. The recommended process outlined here certainly can be argued to have its pros and cons as well. However, considering all the factors involved, this process has, in Staff’s view, the strongest ability to move us forward in a manner best suited to support the Town’s and WA’s vision, mission, and values. This process best addresses the need to properly plan for Westlake Academy’s facility needs both for the near term and over the next 5-10-year planning horizon. Staff does not recommend the “do nothing” option for reasons outlined in the memorandum as to why capital planning is done in the first place, i.e. assuring the intended outcome is achieved that the Town is adequately planning for, and investing in, both its new and existing infrastructure. 1500 Solana Blvd., Bldg. 7, Suite 7200 ~Westlake, Texas 76262 Metro: 817-430-0941 ~ Fax: 817-430-1812 ~ www.westlake-tx.org MEMORANDUM Date: TO: Honorable Mayor and Town Council FROM: Tom Brymer, Town Manager/Superintendent SUBJECT: Background on Process to Date Regarding Updating the Westlake Academy Facility Master Plan Process to Date The WA Campus Facility Master Plan (Plan) was discussed as to the possibility of funding an update to this Plan at the Budget Retreat last summer during preparation of the FY17-18 Budget. No funding was included in the FY 17-18 Budget to retain professional services to update this six-year old Plan, although the Council indicated willingness to consider funding it by approaching the Texas Student Housing Association (TSHA) for such funding. Prior to initiating such discussions with TSHA, Staff initiated a joint Town Council/Board of Trustees workshop discussion on this topic of updating this Plan which was held on February 5, 2018. The purpose of this discussion was to obtain consensus on the scope of services for updating the Plan prior to requesting any funding from the TSHA. Much discussion between Staff and the Council/Board ensued on February 5th, with a consensus that further discussion on this topic was needed. Further discussion was held at the Board of Trustee’s May 7, 2018 workshop. At this May 7th BOT workshop Staff presented a memorandum which contained recommendations for moving forward on capital improvement planning at WA by: • defining “immediate need” to identify WA capital project(s) that might be recommended to address that immediate need, • beginning to address medium and long-range projects via a process that considers medium and long-range facility planning within the context of both reviewing the existing Campus Facility Master Plan and any effort to re-visit and update that Plan, and • creating an intersection and reconciliation of any identified immediate need capital project with the Campus Facility Plan, either in its current form or as it may be revised through an update process. 1500 Solana Blvd., Bldg. 7, Suite 7200 ~Westlake, Texas 76262 Metro: 817-430-0941 ~ Fax: 817-430-1812 ~ www.westlake-tx.org Additionally, Staff has been meeting since the May 7th workshop with a school planning/architectural firm, Stantec, about the services their firm could provide that would assist the Board/Council and Staff in this effort. Stantec was scheduled to present to the Board of Trustees’ workshop meeting for September 10th, however, that meeting was cancelled due to lack of a quorum. However, representatives from Stantec did meet with the Town Council at their September 24, 2018 workshop to share their thoughts on recommended steps to move our process forward as well as services they provide clients to that end. Also, the Council was provided a summarized statement of qualifications of Stantec’s qualifications. Council consensus at their September 24th meeting was to move forward with considering Stantec for this planning engagement. At their October 29, 2018 Regular Meeting, the Town Council approved a resolution which approved a contract with Stantec for up to $85,000 for WA master planning services. Further, the resolution authorized the Town Manager/Superintendent to execute on behalf of the Town, an architectural planning services contract to provide this new ten (10) year facilities master plan for Westlake Academy. Further, the resolution authorizes the Town Manager to make funding changes to this contract via a change order not to exceed $25,000. It should be noted that the scope of services, which is set out in the contract, includes review of the current WA master facilities plan for items contained in it that may be recommended for retention in the next iteration of a WA master plan. It should also be noted that as a part of this engagement that Stantec and the Staff are recommending a two-tiered participation/involvement approach. By two-tiered it is meant to have a Staff team comprise the first tier. The Town Manager would designate the Staff team for this project to be co-chaired by the Director of Facilities and the WA Executive Director. They would in turn designate staff members to participate on the Staff team with them, subject to the approval of the Town Manager/Superintendent. A second tier of participation/involvement would include any stakeholders (constituent groups) representatives the Council would like to include in this process. Designation of the second-tier involvement group can be made by the Council later after the facility planning process has had an opportunity to proceed beyond initial data gathering and input steps. However, Staff recommends that the Council begin considering who those individual and the groups they represent might be as well as how large in number this group should be (note: group size will impact the pace of the planning process). Council involvement will occur as we near the point in the process where we have some draft recommendations to consider. However, there also will likely be Council involvement needed at key milestones along the way for Council input and direction on 1500 Solana Blvd., Bldg. 7, Suite 7200 ~Westlake, Texas 76262 Metro: 817-430-0941 ~ Fax: 817-430-1812 ~ www.westlake-tx.org critical planning parameters such as, for example, desired enrollment levels for Westlake Academy. On December 3, 2018, the Board of Trustees is scheduled to discuss guiding principles and the process recommended for moving the planning process forward on this WA Facility Master Plan. FUNDING & COST Funding in the amount of $85,000 is contained in the Approved FY18-19 Town of Westlake municipal budget as approved by the Town Council last month. The recommended funding source for this engagement would be the monies contained in the WA Capital project that have been provided per economic development agreements by residential developments that have occurred in Westlake in the last 5 years (Granada, Entrada, Quail Hollow, etc.) for the express purpose of use for Westlake Academy. The fee to provide the services identified in the agreement with Stantec shall be provided on an hourly rate basis not to exceed $81,310. This fee is based on the number of meetings identified in the attached Project Task Worksheet and the Scope of Work identified above. Any adjustments in the scope and number of meetings may require an adjustment in the “not to exceed” price. No adjustments will be made without prior written consent of the Town. In addition to this fee, Stantec shall be reimbursed for printing associated with “Phase 4 - Evaluation” as well as additional hours required should additional site(s) be evaluated, and any three-dimensional conceptual facility renderings be provided. Not included in this proposal is an assessment of the existing facilities as it relates to material and equipment maintenance and repair needs and related life-cycle cost analyses. •Clarify expectations •Establish parameters •Identify players •Define process •Establish timelines •Identify cost targets •Define vision •Engage stakeholders •Create facility program •Establish priorities •Evaluate site options •Identify cost implications •Define project guidelines •Finalize deliverable Westlake Academy IB Charter School | Master Planning Process Board of Trustees MtgB Other Meetings Winter Break L Leadership Committee Mtg P Planning Committee Mtg Westlake Academy IB Charter School Master planning Schedule October 22 “Plan the Plan” Meeting November 16 Leadership Committee: “Plan the Plan” Follow up. Review Schedule and Plan. November 25-30 Leadership Committee : Vision, Mission and Goals Early December Board of Trustees: Vision, Mission and Goals December 10-14 1st Day: Planning Committee: Understand Westlake academy through your eyes. Vetting facility assessment, 2nd Day: Listening sessions with Planning Committee Contributors, Department Heads, and Staff. December 20 to Christmas Break January 7 January Revised facility assessment and follow up with Planning Committee, Contributors, Department Heads, and Staff. January 25+ Summary of Discovery Phase. February Concept Phase: Stantec develops recommendations and meets a few times w/ Leadership Committee for feedback. Planning Committee and additional groups are brought in as necessary. March Recommendations Presented to Leadership Group,to Board of Trustees, to stakeholders and the community. April Evaluation Phase 3020101 25515 NOV PHASE 1 –Framework 2820101 25515 FEB PHASE 3 –Concept 3120101 25515 MAR PHASE 3 –Concept 3020101 25515 APR PHASE 4 -Evaluation 3120101 25515 JAN PHASE 2 –Discovery 3120101 25515 DEC PHASE 2 –Discovery PHASE 2 –Discovery L L B P L P B P P LP B Board of Trustees Stantec Master Planning Team Leadership Committee Stakeholder Focus Group Public Forums Tom Brymer, Superintendent/Town Manager CHAIR Ginger Autry, Director of Communications/Community Affairs CHAIR Westlake Community Members Mechelle Bryson, Ed.D. , Executive Director Westlake Academy Foundation Representative Secondary Enrollment Community Members Troy Meyer, Director of Facilities Westlake Academy House of Commons Representative Business Community Members Amanda DeGan, Assistant Town Manager Westlake Academy Athletic Club Representative Community Stakeholders Debbie Piper, CFO Westlake Academy/Town of Westlake Campus Leadership Team (Teachers, Parents and Students) Other Westlake Community Organizations Planning Committee Mechelle Bryson, Ed.D. , Executive Director CHAIR Troy Meyer, Director of Facilities Rod Harding, Primary Principal Stacy Stoyanoff, Secondary Principal Planning Committee Contributors Jennifer Furnish, Secondary AP Beckie Paquin, Primary AP Alan Burt, Director of Athletics Jarrod Greenwood, Public Works Director Jason Power, Director of Information Technology Dr. James Owen, DP Coordinator Alison Schneider, PYP Coordinator Terri Watson, PYP Coordinator Academy Department Heads Science, Language A (English), Language B (LOTE), Math, Humanities, Fine Arts, Technology, Food Service and PE Academy Faculty/Staff Westlake Academy IB Charter School | Master planning Organization Chart Board of Trustees Leadership Committee Tom Brymer, Superintendent/Town Manager CHAIR Mechelle Bryson, Ed.D. , Executive Director Troy Meyer, Director of Facilities Amanda DeGan, Assistant Town Manager Debbie Piper, CFO Westlake Academy/Town of Westlake Planning Committee Mechelle Bryson, Ed.D. , Executive Director CHAIR Troy Meyer, Director of Facilities Rod Harding, Primary Principal Stacy Stoyanoff, Secondary Principal Westlake Academy IB Charter School | Master planning Committee Structure -Roles and Responsibilities Leadership Committee •Primary Contact with and directs Stantec Team •Project Oversight/Review •Reports directly to Board of Trustees with Recommendations and Proposals/Plans •Leads/Directs all other Master Plan Committees/Groups •Leads/Consults with Stakeholder Focus Group with regard to utilization of Public Forums, Public Relations and communications with public. •Decision-Maker on process, contents, overall goals and priorities and outcomes •Provides/Authorizes others to provide all requisite information for Master Planning effort with regard to financial targets, budgets, demographics, enrollment data, facilities data and any other information required by Stantec Team •Meets on a monthly bases for duration of project. Planning Committee •Works directly with Stantec Team in the development of Master Plan with regard to educational programming requirements, facility requirements, and site requirements •Reports directly to Leadership Committee with educational, facility and site Master Plan recommendations and proposals •Coordinates input/involvement of Planning Committee Contributors and Westlake Academy Faculty and Staff •Provides/Authorizes others to provide all requisite information for Master Planning effort regarding program and enrollment data, educational technology, master schedules, curriculum requirements, facilities use data and any other information required by Stantec Team •Meets on a regular basis during master planning and programming phases. Planning Committee Contributors Jennifer Furnish, Secondary AP Beckie Paquin, Primary AP Alan Burt, Director of Athletics Jarrod Greenwood, Public Works Director Jason Power, Director of Information Technology Dr. James Owen, DP Coordinator Alison Schneider, PYP Coordinator Terri Watson, PYP Coordinator Academy Department Heads Science, Language A (English), Language B (LOTE), Math, Humanities, Fine Arts, Technology, Food Service and PE Academy Faculty/Staff Westlake Academy IB Charter School | Master planning Committee Structure -Roles and Responsibilities Planning Committee Contributors As directed or requested by Planning Committee, Planning Committee Contributors will provide required information for and/or participate in selected meetings, workshops or efforts during the Master Planning process. Participation and involvement is at the discretion of the Planning Committee Westlake Academy Faculty and Staff As directed or requested by Planning Committee, Westlake Academy Faculty and Staff will provide required information for and/or participate in selected meetings, workshops or efforts during the Master Planning process. Participation and involvement is at the discretion of the Planning Committee Stakeholder Focus Group (SFG) •SFG serves to provide feedback to the Leadership Committee and Board of Trustees. •SFG advises Leadership Committee regarding communications with the public/community and involvement of Westlake Academy organizations towards the review and development of the Master Plan. •SFG Primary Objective is to lead, coordinate, plan any Public Forums needed –as determined by the Leadership Committee –for input and feedback from the Westlake Community. •Membership of SFG will include Westlake Academy Foundation, HOC, and WAAC representatives (as determined by each and reviewed and approved by Leadership Committee) •Upon approval and review of Leadership Committee, SFG will author, coordinate and issue all public statements, press releases and other public/social network communications. •SFG will meet as required. Public Forums •Community meetings, forums or workshops to engage Westlake Community to seek feedback, response to or contributions/suggestions for the Master Plan development •Forums may be held to gain feedback on singular or multiple issues, and/or to review elements of the master plan. •Forums may also be held to present the Master Plan for community review and input. •Public Forums will be controlled, coordinated and led by SFG. •Public Forum topics, issues and dates will be reviewed and authorized by Leadership Committee in consultation with the Board of Trustees. •Public Forums will be conducted on an as need/pre-determined basis. Stakeholder Focus Group Ginger Autry, Director of Communications/Community Affairs CHAIR Westlake Academy Foundation Representative Westlake Academy House of Commons Representative Westlake Academy Athletic Club Representative Campus Leadership Team (Teachers, Parents and Students) Public Forums Westlake Community Members Secondary Enrollment Community Members Business Community Members Community Stakeholders Other Westlake Community Organizations DecOctAugJune AprFeb NovJanMarMayJulySept Master Planning 2018 Schematic Design Design DevelopmentMaster Planning DecOctAugJune AprFeb NovJanMarMayJulySept 2019 Construction Documents Bidding & Negotiation Construction DecOctAugJune AprFeb NovJanMarMayJulySept Construction 2020 Renovation Construction Completion/Building OccupancySchool out of Session School Opens / First Day of Class Westlake Academy IB Charter School | Phase One Project Schedule BOARD RECAP / STAFF DIRECTION Board of Trustees Item #8 – Board Recap / Staff Direction Board of Trustees Item # 9 – Adjournment Work Session 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.  Annual Community Tree Lighting – DON’T MISS! Thursday, November 29, 2018; 6:00 – 8:00 pm Solana Plaza, 1301 Solana Boulevard -Please join the Westlake community as we kick off the giving season together with family, friends, & neighbors - stay a little or a lot, but come on out to our hometown holiday celebration and help support your community! **Fire-EMS Department will be on-site collecting toys & food pantry items once again for those children & families less fortunate through Christmas is for Children! After the Tree Lighting, you may also drop off any donations at the current Fire Station (not the new one…yet!) through December 21.  Coffee & Conversation with the Mayor/Board President Monday, December 3, 2018; 8:00 – 9:30 am Marriott Solana Hotel – Great Room  Board of Trustees Work Session/Meeting Monday, December 3, 2018* Westlake Town Hall, Solana Terrace-Bldg.7, Suite 7100 - Council Chambers  Westlake Academy Danish & Dialogue w/school leaders Thursday, December 6, 2018; 8:00 am – 9:00 am WA Campus – Sam & Margaret Lee Fieldhouse Classroom -Open to all Westlake & WA parents/grandparents: current and for those considering or wanting to learn more about our community’s charter school. Check out this month’s topic: How to help your students manage IB stressors. For more, visit WestlakeAcademy.org, under About Us/Danish & Dialogue.  Town Council Work Session/Meeting Monday, December 10, 2018* Westlake Town Hall, Solana Terrace-Bldg.7, Suite 7100 - Council Chambers  Westlake Academy CLOSED for Winter Break Friday, December 21 through Monday, January 7, 2019  Westlake Municipal Offices CLOSED in Observance of the Christmas holidays Monday & Tuesday, December 24-25, 2018 -Wishing you and your family Merry Christmas and Happy Holidays from Town Hall! **Trash & Recycling Services are shifted this week to Saturday, December 29. Collections will NOT occur on Friday, Dec. 28, but are delayed one day. Looking ahead to the 2019 New Year…  Westlake Municipal Offices CLOSED in Observance of the New Year’s Day holiday Tuesday, January 1, 2019 Wishing you and your family a safe and Happy New Year from Town Hall! **Trash & Recycling Services are shifted this week to Saturday, January 5. Collections will NOT occur on Friday, Jan. 4, but are delayed one day.  Coffee & Conversation with the Mayor/Board President Monday, January 7, 2019; 8:00 – 9:30 am Marriott Solana Hotel – Great Room Board of Trustees Item # 2 – Items of Community Interest  Board of Trustees Work Session/Meeting Monday, January 7, 2019* Westlake Town Hall, Solana Terrace-Bldg.7, Suite 7100 - Council Chambers  Town Council Work Session/Meeting Monday, January 7, 2019* Westlake Town Hall, Solana Terrace-Bldg.7, Suite 7100 - Council Chambers  Westlake Academy Staff & Students Return Monday, January 7, 2019 – Staff return Tuesday, January 8, 2019 – Students return  Westlake Historical Preservation Society (WHPS) Board Meeting Tuesday, January 8, 2019; 6:00 pm* Westlake Town Hall, Solana Terrace-Bldg.7, Suite 7100 - Council Chambers  Westlake Academy Class of 2018 Alumni Reunion & IB Diploma Programme Ceremony Thursday, January 10, 2019; 1:45 pm (Program only) WA Campus- Gym *For meeting agendas and details on WA calendar events or Municipal calendar events, please visit the Westlake Academy website or the Town of Westlake website for further assistance. 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. Board of Trustees 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 October 29, 2019, meeting. b. Consider approval of the minutes from the November 5, 2018, meeting. c. Consider approval of Resolution 18-14, Approving the Fiscal Year 2017-2018 annual audit report from Weaver and Tidwell, L.L.P. d. Consider approval of Resolution 18-15, Approving the Trip to Canada regarding French Language Immersion Experience in Quebec. Board of Trustees Item # 4 – Consent Agenda BOT Minutes 10/29/18 Page 1 of 2 WESTLAKE ACADEMY BOARD OF TRUSTEES MEETING October 29, 2018 PRESENT: President Laura Wheat, Trustees: Alesa Belvedere, Carol Langdon, Rick Rennhack, Michael Barrett, and Greg Goble. ABSENT: OTHERS PRESENT: Superintendent Tom Brymer, Assistant to the Superintendent Amanda DeGan, Board Secretary Kelly Edwards, Dr. Mechelle Bryson, Communications Manager Jon Sasser, Director of Finance Debbie Piper, Director of Facilities & Parks Troy Meyer, and Management Intern Kirk McDaniel. Regular Session 1. CALL TO ORDER President Wheat called the regular session to order at 5:04 p.m. 2. PLEDGE OF ALLEGIANCE President Wheat led the Pledge of Allegiance to the United States and Texas flags. BOT Minutes 10/29/18 Page 2 of 2 3. DISCUSSION AND CONSIDERATION OF A RESOLUTION 18-12, REPEALING RESOLUTION 18-01, AMENDING AND ADOPTING THE SPECIAL EDUCATION POLICY MANUAL. Dr. Bryson, Ms. Ward, and Ms. Henderson provided a presentation and overview of the item. MOTION: Trustee Rennhack made a motion to approve Resolution 18- 12. Trustee Langdon seconded the motion. The motion carried by a vote of 5-0. 4. 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 5:09 p.m. APPROVED BY THE BOARD OF TRUSTEES ON DECEMBER 3, 2018. ATTEST: ____________________________ Laura Wheat, President _____________________________ Kelly Edwards, Board Secretary BOT Minutes 06/04/18 Page 1 of 4 WESTLAKE ACADEMY BOARD OF TRUSTEES MEETING November 5, 2018 PRESENT: President Laura Wheat, Trustees: Carol Langdon, Rick Rennhack, and Greg Goble. ABSENT: Alesa Belvedere and Michael Barrett OTHERS PRESENT: Superintendent Tom Brymer, Board Secretary Kelly Edwards, Dr. Mechelle Bryson, PYP Principal Rod Harding, PYP Assistant Principal Beckie Paquin, Secondary Asst. Principal Jennifer Furnish, College Counselor Carl Tippen, WA Foundation Executive Director Dr. Shelly Myers, Director of Finance Debbie Piper, Director of Facilities & Parks Troy Meyer, Director of Communications Ginger Awtry, Communications Manager Jon Sasser, and Public Works Director Jarrod Greenwood Work Session 1. CALL TO ORDER President Wheat called the work session to order at 5:17 p.m. 2. PLEDGE OF ALLEGIANCE President Wheat led the Pledge of Allegiance to the United States and Texas flags. 3. REVIEW OF CONSENT AGENDA ITEMS LISTED ON THE REGULAR MEETING AGENDA. President Wheat asked that item d of the consent agenda be pulled for further discussion. BOT Minutes 06/04/18 Page 2 of 4 4. DISCUSSION ITEMS a. Presentation and discussion regarding naming a Science classroom in honor of Sawyer Davidson. Director Meyer, Dr. Bryson, Dr. Myers, and Mr. Harding provided a presentation regarding the Facility policy. Dr. Myers provided an overview of the discussion with the Davidson family. Discussion ensued regarding honoring students, to review the current naming policy , and other opportunities at the Academy. b. Presentation and update on the Academy’s Primary and Secondary Counseling Services. Ms. Morgan, Ms. Phillips, and Mr. Tippen provided a presentation on the Academy’s Counseling Services available to students. Discussion ensued regarding preparing younger students for emergency operations without it becoming frightening, vape prevention, educating faculty and parents, responsive services, when to encourage outside counseling services, reviewing issues on an annual basis and planning parent forums on those topics, and State mandated services. c. Presentation and discussion regarding college readiness data over the last five years. This report will include discussion concerning PSAT, SAT, and ACT trends at Westlake Academy and its impact on student college and future readiness. Mr. Tippen provided a presentation regarding college readiness data. Discussion ensued regarding communicating a testing strategy and preparation to students, testing too early, college visit tours, the College Fair on campus, and early college decisions numbers. 5. BOARD RECAP / STAFF DIRECTION Vape prevention and engaging the community at large in the students’ college process. 6. ADJOURNMENT President Wheat adjourned the work session at 6:46 p.m. BOT Minutes 06/04/18 Page 3 of 4 Regular Session 1. CALL TO ORDER President Wheat called the regular session to order at 6:46 p.m. 2. ITEMS OF COMMUNITY INTEREST Ms. Awtry provided an overview of the upcoming events. 3. CITIZEN COMMENTS No one addressed the Board. 4. CONSENT AGENDA a. Consider approval of the minutes from the August 15, 2018, meeting. b. Consider approval of the minutes from the September 24, 2018, meeting c. Consider approval of the minutes from the October 2, 2018, meeting. d. Consider approval of Resolution 18-13, Amending Code of Conduct, and Discipline policies and adopting a Student records policy. President Wheat asked for a separate discussion and clarification regarding item d and specifically out of school suspensions. Discussion ensued regarding the number suspensions, consequences of suspensions, Saturday school, circumstances determining suspensions or Saturday school, and infractions reported to colleges. President Wheat moved item d back to the consent agenda for a motion. MOTION: Trustee Langdon made a motion to approve the consent agenda. Trustee Goble seconded the motion. The motion carried by a vote of 3-0. 5. FUTURE AGENDA ITEMS No future agenda items. BOT Minutes 06/04/18 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 Langdon seconded the motion. The motion carried by a vote of 3-0. President Wheat adjourned the regular session at 7:07 p.m. APPROVED BY THE BOARD OF TRUSTEES ON DECEMBER 3, 2018. ATTEST: ____________________________ Laura Wheat, President _____________________________ Kelly Edwards, Board Secretary estlake Academy Board of Trustees TYPE OF ACTION Regular Meeting - Consent Westlake Board Meeting Monday, December 03, 2018 TOPIC: Consider a Resolution approving the FY 2017-2018 annual audit report from Weaver and Tidwell, L.L.P. STAFF CONTACT: Debbie Piper Finance Director Strategic Alignment Vision, Value, Mission Perspective Curriculum Outcome Objective Vision: Westlake Academy inspires college bound students to achieve their highest individual potential in a nuturing environment that fosters the traits found in the IB Learner Profile. Fiscal Stewardship PYP / MYP / DP Improve Financial Stewardship Strategic Initiative Outside the Scope of Identified Strategic Initiatives Time Line - Start Date: September 1, 2017 Completion Date: August 31, 2018 Funding Amount: $16,690 Status - Funded Source - General Fund EXECUTIVE SUMMARY (INCLUDING APPLICABLE ORGANIZATIONAL HISTORY) Weaver and Tidwell, L.L.P. has completed the Westlake Academy 2017-2018 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. Upon your review of the Governance Letter attached, please note, on the last page, an entry that the auditor’s passed on related to a lease payment. In FY 16-17 the payment was posted as a prepaid and not expensed to FY 16-17 because it wasn’t due until September 1st. One payment had already been made on the lease for the current year. The entry proposed by the auditor would have expensed two lease payments in one year. The audit partner stated that once a debt payment is made, it must be recognized as an expenditure. I disagreed, and we continued to debate the validity of the entry. In the end, they passed on proposing this entry. The current year entry is the opposite. They proposed to take the lease payment out of the expenditures (which would have shown that nothing was paid on the lease) but again we disagreed, and they again passed on the entry. Although we were $27K over budget related to expenditures; this amount was offset by revenue which was $170,557 over budget giving the Academy $143,760 (6 days) over the budgeted fund balance. The ending fund balance of $1,105,605 equals 48 operating days. Following is a summary of the major variances. This schedule reflects only the General Fund. REVENUES – Over budget by $170,557 with the majority being due: (1) the State year- end receivable calculation which was 2 days more than budgeted, and (2) the student count throughout the year fluctuated as high as 881 at times and was budgeted at 852. EXPENDITURES – Over budget by $26,797 primarily due to employee position changes subsequent to the budget adoption, which included additional stipends, replacement of teachers leaving with ones that had more years of service; therefore, more salary expenditure, etc. Although the salary variance appears large at $71K; it represented a mere .14% of the total salary budget. This overage was offset by several functions that were under budget. In response to the payroll situation, Westlake Academy Finance and Human Resources implemented the Position Management Information System (PMIS), which was used as a parallel process during the FY 2018-2019 budget process. The PMIS system allows budgeting by position, which will replace the previous method used, and includes both Finance and Human Resource staff in the planning and decision-making process. Please review the Management Discussion and Analysis document included in the audit report for statistical information during the year ended August 31, 2018. RECOMMENDATION Recommend approval of the resolution approving the FY 2017-2018 annual audit as submitted. ATTACHMENTS 1. Resolution 2. Audit report for Fiscal Year Ended August 31, 2018 3. Governance Letter Resolution 18-14 Page 1 of 2 WESTLAKE ACADEMY RESOLUTION NO. 18-14 A RESOLUTION OF THE WESTLAKE ACADEMY BOARD OF TRUSTEES APPROVING THE FISCAL YEAR 2017-2018 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 2017-2018 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 18-14 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 3rd DAY OF DECEMBER, 2018. _____________________________ 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 Westlake Academy (A Component Unit of the Town of Westlake) Annual Financial Report For the Year Ended August 31, 2018 Table of Contents i Page Exhibit Introductory Section Certificate of Board ................................................................................................................................ ii Financial Section Independent Auditor’s Report.............................................................................................................. 2 Management’s Discussion and Analysis ............................................................................................. 5 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position .................................................................................................................. 14 A-1 Statement of Activities ....................................................................................................................... 15 B-1 Fund Financial Statements Balance Sheet ..................................................................................................................................... 16 C-1 Statement of Revenues, Expenditures, and Changes in Fund Balance ............................................................................................................... 17 C-2 Fiduciary Funds Statement of Fiduciary Net Position ................................................................................................ 18 D-1 Notes to the Financial Statements ..................................................................................................... 19 Required Supplementary Information Budgetary Comparison Schedule – General Fund ........................................................................ 41 E-1 Notes to the Budgetary Comparison Schedule .............................................................................. 42 Schedule of Academy’s Proportionate Share of Net Pension Liability – Teacher Retirement System ...................................................................... 43 E-2 Schedule of Pension Contributions – Teacher Retirement System .............................................. 44 E-3 Schedule of Academy’s Proportionate Share of Net OPEB Liability – Teacher Retirement System TRS Care Plan ................................................. 45 E-4 Schedule of OPEB Contributions – Teacher Retirement System TRS Care Plan ........................ 46 E-5 Combining Statements Nonmajor Governmental Funds Combining Balance Sheet ................................................................................................................ 48 F-1 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance ............................................................................................................... 50 F-2 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 ................................................................. 53 ii Certificate of Board WESTLAKE ACADEMY TARRANT 220-810___ Name of School County Co.-District Number We, the undersigned, certify that the attached annual financial re ports of the above-named school were reviewed and (check one) approved disapproved for the year ended August 31, 2018 at a meeting of the Board of Trustees of such school on the ___ day of _________________________. 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) iii This Page Intentionally Left Blank 1 Financial Section Austin | Conroe | Dallas | Fort Worth | Houston Los Angeles | Midland | New York City | San Antonio Weaver and Tidwell, L.L.P. 2300 North Field Street, Suite 1000 | Dallas, Texas 75201 Main: 972.490.1970 | Fax: 972.702.8321 CPAs AND ADVISORS | WEAVER.COM Independent Auditor's Report To the 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, 2018, 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 prepara tion 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 ev aluating 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. 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, 2018, 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. The Board of Trustees Westlake Academy 3 Emphasis of Matter As discussed in Note 16 to the financial statements, the Academy adopted the provisions of GASB Statement No. 75, Accounting and Financial Reporting for Post -Employment Benefits Other Than Pensions, during 2018. Beginning net position has been restated to reflect the change in accounting principle for the implementation of this Statement. 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, schedules of the Academy’s proportionate share of the net pension and net OPEB liabilities, and schedules of Academy contributions for pensions and OPEB on pages 5 through 12, 41 through 46, 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 ou r 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 additiona l 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. 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 State s of America. In our opinion, the nonmajor governmental funds combining statements are fairly stated in all material respects in relation to the basic financial statements as a whole. The Board of Trustees Westlake Academy 4 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 26, 2018, 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 November 26, 2018 Westlake Academy (A Component Unit of the Town of Westlake) Management’s Discussion and Analysis August 31, 2018 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, 2018. Please read it in conjunction with the Academy's financial statements, which follow this section. Financial Highlights  On the government-wide financial statements, the liabilities of the Academy exceeded assets by $2,823,226 (Net Position). This is an increase of $1,452,296 for the year ended August 31, 2018 after the adjustment to beginning net position described below .  The Academy’s beginning net position has been adjusted by ($4 ,480,552) to reflect a change in accounting principle for the reporting of postemployment benefits other than pensions. An explanation of the change can be found on Note 16 to the financial statements.  The Academy had $7,172,980 in expenses related to governmental activities, of which $1,985,891 of these expenses were offset by program-specific charges for services or grants and contributions. This is a total expense decrease of $2,400,191 from the prior year.  The General Fund reported a fund balance this year of $1,105,605, an increase of $166,334 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 ser vices 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 19) 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 nonmajor 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 informat ion 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. Westlake Academy (A Component Unit of the Town of Westlake) Management’s Discussion and Analysis August 31, 2018 6 Government-Wide Statements The government-wide statements beginning on page 14, report information about the Academy as a whole using accounting m ethods similar to those used by private-sector companies. Its primary objective 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. 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 Westlake Academy (A Component Unit of the Town of Westlake) Management’s Discussion and Analysis August 31, 2018 7 The two government-wide statements report the Academy's net position and how it has changed. Net position-the difference between the Academy's assets, deferred outflows of resources, and liabilities and deferred inflows of resources-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, respectivel y. • To assess the overall health of the Academy, one should 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. Component Unit The government-wide financial statements also present the activity of Westlake Academy Fou ndation, a discretely presented component unit. The Foundation was organized exclusively for charitable and educational purposes and provides funds to help support the Academy. During 2018, the Foundation contributed $1,173,057 to the Academy to enhance educational opportunities. These contributions are recorded as operating grants and contributions in the Statement of Activities. Fund Financial Statements The fund financial statements begin on page 16 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, 2018.  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 – the Academy maintains a fiduciary fund to account for resourc es held for student activities in a custodial capacity. These fiduciary activities are reported in a separate statement of fiduciary net position and a statement of changes in fiduciary net position on page 18. These activities are excluded from the school’s government-wide financial statements because they cannot use these assets to finance their operations. Westlake Academy (A Component Unit of the Town of Westlake) Management’s Discussion and Analysis August 31, 2018 8  Proprietary funds – 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. The Academy presently has no proprietary funds. 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 reports a deficit net position of ($2,823,226) at August 31, 2018. As noted earlier, net position may serve over time as a useful indicator of a government's financial position. The Academy's governmental activities during the fiscal year caused the deficit in net position to decrease from ($4,275,522), reflective of the cumulative effect of the change in accounting principle of ($4,480,552), in 2017 to ($2,823,226) in 2018. The governmental activities’ net position increased by 34 percent ($1,452,296). The increase was primarily due to net effect of the following factors: (1) Additional state funding received due to an increase in student enrollment as well as additional funds for career technology educational students/courses. State aide and formula grants increased by $433,077. (2) There was a decrease in operating grants and contributions. This decrease was primarily due to recording the State’s on-behalf portion of the Academy’s OPEB expense which, in turn, decreased both operating grants and contributions and expenses by $1,546,541. (3) Expenses were also decreased by the change in net OPEB liability and related deferred inflows and outflows by $898,693. Westlake Academy (A Component Unit of the Town of Westlake) Management’s Discussion and Analysis August 31, 2018 9 Table A-1 Westlake Academy’s Net Position 2018 2017 2018 2017 Current assets 1,576,344$ 934,452$ 2,558,219$ 1,955,950$ Total assets 1,576,344 934,452 2,558,219 1,955,950 Deferred outflows of resources 556,112 708,979 - - Current liabilities 131,707 127,386 387,862 275 Non-current liabilities 3,615,982 5,729,925 - - Total liabilities 3,747,689 5,857,311 387,862 275 Deferred inflows of resources 1,207,993 61,642 - - Net position: Restricted 4,215 8,539 295,432 271,809 Unrestricted (2,827,441) (4,284,061) 1,874,925 1,683,866 Total net position (2,823,226)$ (4,275,522)$ 2,170,357$ 1,955,675$ Governmental Activities Component Unit Figure A-2 Westlake Academy Sources of Revenue for Fiscal Year 2018 Westlake Academy (A Component Unit of the Town of Westlake) Management’s Discussion and Analysis August 31, 2018 10 Table A-2 Westlake Academy’s Change in Net Position 2018 2017 2018 2017 Revenues Program revenues: Charges for services 238,352$ 267,412$ -$ -$ Operating grants and contributions 993,715 2,261,830 1,710,577 1,715,833 Capital grants and contributions 753,824 757,261 - - General revenues: State aid and formula grants 6,629,507 6,196,430 - - Investment earnings 9,878 5,371 170,733 46,433 Total revenues 8,625,276 9,488,304 1,881,310 1,762,266 Expenses Instruction 4,099,293 5,692,052 Instructional resources and media services 90,712 116,788 - - Curriculum and staff development 109,486 128,717 - - Instructional leadership 93,937 274,973 School leadership 582,608 944,381 Guidance, counseling, and evaluation services 220,264 277,877 - - Health services 58,667 82,900 Food service 51,648 51,674 - - Extracurricular activities 327,254 380,613 - - General administration 320,152 318,566 - - Facilities maintenance and operations 973,289 967,303 - - Data processing services 152,422 189,764 - - Community services 84,363 133,626 - - Program/support services 1,666,628 1,492,076 Debt service - interest 8,885 13,937 - - Total expenses 7,172,980 9,573,171 1,666,628 1,492,076 Change in net position 1,452,296 (84,867) 214,682 270,190 Beginning net position 205,030 289,897 1,955,675 1,685,485 Cumulative effect of change in accounting principle (4,480,552) (4,480,552) - - Ending net position (2,823,226)$ (4,275,522)$ 2,170,357$ 1,955,675$ Governmental Activities Component Unit Activities Westlake Academy (A Component Unit of the Town of Westlake) Management’s Discussion and Analysis August 31, 2018 11 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 $7,172,980 • Some of the cost was paid by those who directly benefited from the programs, $238,352 and some of the cost was paid through grants and contributions $1,747,539 Table A-3 Total %Total % Change Change 2018 2017 2017-18 2018 2017 2017-18 Instruction 4,099,293$ 5,692,052$ -28%3,085,808$ 3,688,789$ -16% School leadership 582,608 944,381 -38%539,159 679,592 -21% Instructional leadership 93,937 274,973 -66%91,792 205,561 -55% Guidance, counseling and evaluation services 220,264 277,877 -21%193,951 208,829 -7% General administration 320,152 318,566 0%229,268 247,740 -7% Facilities maintenance and operations 973,289 967,303 1%654,848 716,142 -9% Data processing services 152,422 189,764 -20%122,227 135,545 -10% Total Cost of Services Net Cost of Services General Fund Budgetary Highlights  The General Fund year-end fund balance is $1,105,605, which increased $166,334 over the prior year. The increase is attributable to the State year-end receivable calculation and additional donations provided to the Academy through the Westlake Academy Foundation. Instructional days began August 15, 2018 (13 days) compared to August 17, 2017 (11 days). This difference in days provided approximately $122,507 in additional State revenue for August 2018 compared to the prior year.  During the year, the Academy decreased its General Fund revenue budget by $106,455 due to eliminating $16,000 for miscellaneous fundraising activities, and accounting for fluctuations in the Career & Technology and Foundation funding due to student enrollment.  During the year, the General Fund expenditure budget was increased by $132,005 due to the occurrence of employee position changes subsequent to the budget adoption. Other factors contributing to the increased allocation included additional stipends, a one-time moving allowance, a 1.08% change in the unemployment rate, increased usage of charter bus services for athletic events and field trips, and legal fees associated with a parent dispute. Economic Factors and Next Year’s Budget  General Fund revenues are budgeted to increase approximately 2% over the FY 2017 -2018 actual revenues. This increase is due to additional anticipated revenue from 20 additional student enrollments, an increased availability of Career and Technology (CTE) course selections and student participation, and the inclusion of the TEA Facilities Allotment providing $200 per ADA, or $184,856. Westlake Academy (A Component Unit of the Town of Westlake) Management’s Discussion and Analysis August 31, 2018 12  Amounts available for appropriation within the General Fund budget are $8,710,132, which is a 3% increase ($228,264) over FY 2017-2018 actual expenditures. This change is tied to a 3% overall increase in salaries and related expenditures and an increase in supplies and materials.  Payroll & related expenditures: In accordance with the Board’s financial policies regarding Academy employee compensation, there is an overall increase in salaries and related expenditures of 3% ($206,905). This increase will bring the Academy to within 0.5% of the estimated average median of surrounding districts.  Professional & contracted services: This category includes expenditures related to services rendered to the Academy by firms, individuals and other organizations. For 2018 -2019, there will be an estimated 1% decrease ($13,038), attributed to cost savings from increased efficiency.  Materials & supplies: This category includes expenditures associated with consumables used in the classroom and in the general maintenance of the campus. For 2018 -2019, there will be an estimated 32% increase ($102,791), which will fund additional campus-wide security measures, enhanced antivirus software, and athletic equipment and supplies.  Miscellaneous Operating Costs: These costs are associated with insurance, professional development travel, membership fees and dues, graduation expenses, and other miscellaneous costs. An 8% decrease ($41,598) is anticipated due to the reduced need for outsourced transportation for athletic events and field trips. In addition, determined efforts are being made to reduce costs and increase process efficiencies.  Debt service: These costs are associated with the three-year lease for iPads supporting the one- to-one device initiative. The FY 2016-2017 amount included a payoff for the original iPad lease, creating a decreased expenditure in FY 2017-2018, which will continue thru FY 2018-2019. If the FY 2018-19 budget estimates are realized , the Academy’s General Fund budgetary fund balance is expected to increase by approximately $137,697 by the close of FY 2019. Contacting the Academy's Financial Management This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the Academy's finances and to demonstrate the Academy's accountabil ity for the money it receives. If you have questions about this report or need additional financial information, contact the Academy/Town Finance Director, Debbie Piper, at 817 -490-5712, or by writing to 1500 Solana Blvd, Building 7, Suite 7200, Westlake, Texas 76262. 13 Basic Financial Statements Westlake Academy Exhibit A-1 (A Component Unit of the Town of Westlake) Statement of Net Position August 31, 2018 The Notes to the Financial Statements are an integral part of this statement. 14 Data 1 4 Control Governmental Component Codes Activities Unit ASSETS 1110 Cash and cash equivalents 728,368$ 752,141$ 1120 Current investments 100 1,804,255 1240 Due from other governments 600,427 - 1290 Other receivables 194,368 - 1410 Prepaid expenses 53,081 1,823 1000 Total assets 1,576,344 2,558,219 DEFERRED OUTFLOWS OF RESOURCES 1705 Deferred outflows of resources - pensions 509,509 - 1705 Deferred outflows of resources - OPEB 46,603 - 1700 Total deferred outflows of resource 556,112 - LIABILITIES 2110 Accounts payable 40,161 - 2123 Other liabilities - 387,862 2150 Payroll deductions and withholdings 7,332 - 2160 Accrued wages payable 82,563 - 2200 Other accrued expenses 1,651 - Noncurrent liabilities: 2502 Due in more than one year 162,005 - 2540 Net pension liability 895,663 - 2540 OPEB liability 2,558,314 2000 Total liabilities 3,747,689 387,862 DEFERRED INFLOWS OF RESOURCES 2605 Deferred inflows of resources - pensions 137,845 - 2605 Deferred inflows of resources - OPEB 1,070,148 - 2600 Total deferred inflows of resources 1,207,993 - NET POSITION 3890 Restricted for donor stipulations 4,215 295,432 3900 Unrestricted (2,827,441) 1,874,925 3000 Total net position (2,823,226)$ 2,170,357$ Westlake Academy Exhibit B-1 Exhibit B-1 (A Component Unit of the Town of Westlake) Statement of Activities For the Year Ended August 31, 2018 The Notes to the Financial Statements are an integral part of this statement. 15 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 4,099,293$ 25,748$ 489,486$ 498,251$ (3,085,808)$ - 12 Instructional resources and media services 90,712 450 4,015 33,059 (53,188) - 13 Curriculum and staff development 109,486 439 47,875 - (61,172) - 21 Instructional leadership 93,937 801 1,344 - (91,792) - 23 School leadership 582,608 4,646 22,753 16,050 (539,159) - 31 Guidance, counseling, and evaluation services 220,264 1,627 20,617 4,069 (193,951) - 33 Health services 58,667 378 1,784 12,697 (43,808) - 35 Food service 51,648 7,000 - 51,648 7,000 - 36 Extracurricular activities 327,254 189,003 67,989 39,264 (30,998) - 41 General administration 320,152 1,700 78,897 10,287 (229,268) - 51 Facilities maintenance and operations 973,289 4,872 239,589 73,980 (654,848) - 53 Data processing services 152,422 1,004 17,204 11,987 (122,227) - 61 Community services 84,363 684 2,162 2,532 (78,985) - 71 Debt service - interest 8,885 - - - (8,885) - [TP] Total primary government:7,172,980$ 238,352$ 993,715$ 753,824$ (5,187,089) - COMPONENT UNIT IC Westlake Academy Foundation 1,666,628$ -$ 1,710,577$ -$ - 43,949 Data Control Codes General revenues: SF State aid-formula grants 6,629,507 - IE Investment earnings 9,878 170,733 TR Total general revenues 6,639,385 170,733 CN Change in net position 1,452,296 214,682 NB Net position, beginning 205,030 1,955,675 Cumulative effect of change PA in accounting principle (4,480,552) - NE Net position, ending (2,823,226)$ 2,170,357$ Net (Expense) Revenue and Changes in Net PositionProgram Revenues Westlake Academy Exhibit C-1 (A Component Unit of the Town of Westlake) Balance Sheet Governmental Funds August 31, 2018 The Notes to the Financial Statements are an integral part of this statement. 16 10 484 98 Data Local Nonmajor Total Control Grant Governmental Governmental Codes General Fund Funds Funds 1110 Cash and cash equivalents 715,368$ -$ 13,000$ 728,368$ 1120 Current investments 100 - - 100 1240 Due from other governments 548,859 - 51,568 600,427 1260 Due from other funds 242,269 - - 242,269 1290 Other receivables - 191,868 2,500 194,368 1410 Prepaid expenditures 51,556 - 1,525 53,081 1000 Total assets 1,558,152$ 191,868$ 68,593$ 1,818,613$ LIABILITIES: 2110 Accounts payable 37,562$ 977$ 1,622$ 40,161$ 2150 Payroll deductions and withholdings 7,332 - - 7,332 2160 Accrued wages payable 82,563 - - 82,563 2170 Due to other funds - 186,676 55,593 242,269 2200 Accrued expenditures 1,651 - - 1,651 2000 Total liabilities 129,108 187,653 57,215 373,976 DEFERRED INFLOWS OF RESOURCES: 2601 Unavailable contributions 323,439 - - 323,439 2600 Total deferred inflows of resources 323,439 - - 323,439 FUND BALANCES: 3430 Nonspendable - prepaid items 51,556 - 1,525 53,081 3490 Restricted for donor stipulations - 4,215 - 4,215 3545 Committed for campus activities - - 11,378 11,378 3600 Unassigned 1,054,049 - (1,525) 1,052,524 3000 Total fund balances 1,105,605 4,215 11,378 1,121,198 4000 Total liabilities and fund balances 1,558,152$ 191,868$ 68,593$ 1,818,613$ Total fund balances - governmental funds 1,121,198$ Amounts reported for governmental activities in the statement of net position are different because: Amounts reported as deferred inflows of resources in the governmental funds financial statements are recognized as revenue in the government-wide financial statements under the accrual basis of accounting.323,439 Capital leases payable are not due and payable in the current period and, therefore, are not reported in the governmental funds financial statements.(162,005) Included in the items related to noncurrent liabilities are the Academy's proportionate share of the TRS Care net OPEB liability ($2,558,314), a deferred resource inflow ($1,070,148) and a deferred resource outflow of $46,603. The net effect is a decrease in net position. (3,581,859) Included in the items related to noncurrent liabilities are the Academy's proportionate share of the TRS net pension liability ($895,663), a deferred resource inflow ($137,845) and a deferred resource outflow of $509,509. The net effect is a decrease in net position. (523,999) Net position of governmental activities (2,823,226)$ LIABILITIES AND FUND BALANCES ASSETS Westlake Academy Exhibit C-2 (A Component Unit of the Town of Westlake) Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds For the Year Ended August 31, 2018 The Notes to the Financial Statements are an integral part of this statement. 17 10 484 98 Data Local Nonmajor Total Control Grant Governmental Governmental Codes General Fund Funds Funds REVENUES 5700 Local and intermediate sources 1,571,182$ 191,868$ 81,953$ 1,845,003$ 5800 State program revenues 7,077,020 - 140,363 7,217,383 5900 Federal program revenues - - 114,797 114,797 5020 Total revenues 8,648,202 191,868 337,113 9,177,183 EXPENDITURES 0011 Instruction 4,924,708 129,213 257,162 5,311,083 0012 Instructional resources and media services 86,094 - - 86,094 0013 Curriculum and staff development 83,902 24,555 1,029 109,486 0021 Instructional leadership 153,295 - - 153,295 0023 School leadership 888,589 - 8,097 896,686 0031 Guidance, counseling, and evaluation services 311,250 - - 311,250 0033 Health services 72,233 - - 72,233 0036 Extracurricular activities 215,236 31,145 80,138 326,519 0041 General administration 324,975 - - 324,975 0051 Facilities maintenance and operations 931,623 8,026 - 939,649 0053 Data processing services 192,034 - - 192,034 0061 Community services 130,862 - - 130,862 0071 Debt service - principal on long-term debt 158,182 - - 158,182 0072 Debt service - interest on long-term debt 8,885 - - 8,885 6030 Total expenditures 8,481,868 192,939 346,426 9,021,233 1100 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 166,334 (1,071) (9,313) 155,950 1200 NET CHANGE IN FUND BALANCES 166,334 (1,071) (9,313) 155,950 0100 FUND BALANCES, BEGINNING 939,271 5,286 20,691 965,248 3000 FUND BALANCES, ENDING 1,105,605$ 4,215$ 11,378$ 1,121,198$ Net change in fund balances 155,950$ Amounts reported for governmental activities in the Statement of Activities are different because: Receipts that are considered deferred inflows of resources in the governmental funds financial statements are recognized as revenue in the government-wide financial statements under the accrual basis of accounting.323,439 Current year prepaid principal payments on capital leases consume current resources, however, these payments reduce expenses in the government-wide financial statements.158,182 Implementation of GASB 75 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 $46,603. Contributions before the measurement date also caused a decrease in the change in net position of $36,022. The net share of the Academy's amount of deferred inflows and outflows of resources increased the net position by $888,112. This amount is the net effect.898,693 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 $91,593. Contributions before the measurement date also caused a decrease in the change in net position of $84,783. The net share of the Academy's amount of deferred inflows and outflows of resources decreased the net position by $90,778. This amount is the net effect.(83,968) Change in net position of governmental activities 1,452,296$ Westlake Academy Exhibit D-1 (A Component Unit of the Town of Westlake) Statement of Fiduciary Net Position Fiduciary Funds August 31, 2018 The Notes to the Financial Statements are an integral part of this statement. 18 Agency Fund ASSETS Cash and cash equivalents 37,851$ Total assets 37,851$ LIABILITIES Accounts payable 1,548$ Due to student groups 36,303 Total liabilities 37,851$ Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements 19 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 Ed ucation 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 en tity that is controlled by or dependent on the Academy. The determination to include separate entities is based on the c riteria 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 fi nancially 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/T own Finance Director's office, 1500 Solana Blvd, Building 7, Suite 7200, 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. Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements 20 The Statement of Activities demonstrates how other people or entities that participate in programs the Academy operates have shared in the payment of the d irect 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 charges for athletic registration fees. 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 o ther 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 p eriod 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 earnin gs are recorded as earned, since they are both measurable and available. Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements 21 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 deferr ed 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 utilize the accrual basis of accounting for purposes of asset and liability recognition. With this basis of accounting, all assets and all liabilities associated with the operation of t hese funds are included on the Statement of Fiduciary 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 Local Grant Fund is used for activity from donor restrictions that are from Westlake Academy Foundation and other local sources. Additionally, the Academy reports the following fund types: Nonmajor Governmental Funds: These nonmajor Special Revenue Funds account for resources restricted to, or committed 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 avail able 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. 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 t o 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 Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements 22 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. 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 us ed 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 t he 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 satisf ying those contractual requirements. • Assigned: This classification includes amounts that are constrained by the Academy's intent to be used for a specific purpose but are neither restricted nor committed. This intent can be expressed by the Finance Director and Superintendent. • 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. 5. Net position represents the difference between assets and deferred outflows of resources and liabilities and deferred inflows of resources. 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. 6. 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. 7. 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. Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements 23 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 Dep osit Insurance Corporation (FDIC) insurance. At August 31, 2018, the carrying amount of the Academy's deposits (cash, certificates of deposit, and interest-bearing savings accounts included in temporary investments), including $37,851 recorded in the Agency fund, was $766,219 and the bank balance was $891,058. The carrying amount of the Foundation’s deposits was $752,141 as of August 31, 2018 and the bank balance was $752,903. The Academy cash deposits at August 31, 2018 and during the year then ended was entirely covered by FDIC insurance or the 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 $35,121,279. c. The highest combined balances of cash, savings, and time deposit accounts amounted to $31,885,561 ($1,420,671 of which belonged to the Academy) on November 29, 2017. d. Total amount of FDIC coverage at the time of the highest combined balance was $250,000 . 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 polic y. 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 Ac ademy 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. Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements 24 The Academy categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. GASB Statement No. 72, Fair Value Measurement and Application provides a framework for measuring fair value which establishes a three -level fair value hierarchy that describes the inputs that are used to measure assets and liabilities. • Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets that a government can access at the measurement date. • Level 2 inputs are inputs – other than quoted prices included within Level 1 – that are observable for an asset or liability, either directly or indirectly. • Level 3 inputs are unobservable inputs for an asset or liability. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. If a price for an identical asset or liability is not observable, a government should measure fair value using another valuation technique that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs. If the fair value of an asset or a liability is measured using inputs fr om more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement. The Academy presently has no recurring fair value measurements. Investment pools are measured at amortized cost and are exempt for fair value reporting. The carrying value of the Academy’s investments at August 31, 2018, was $100, which was 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 cons istent with the Public Funds Investment Act. In addition , TexPool is subject to review by the State Auditor's office and by the Internal Auditor of the Comptroller's office. In compliance with the Public Funds Investment Act, the Academy has adopted a deposit and investment policy. That policy does address the following risks: 1 Custodial Credit Risk-Deposits: This is the risk that in the event of bank failure, the Academy's deposits may not be returned to it. As of August 31, 2018, 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 . Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements 25 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, 2018, TexPool’s investments credit quality rating was AAAm (Standard & Poor's). Foundation – Investments The Foundation’s investments in marketable securities are valued at their estimated fair values in the statement of financial position. Unrealized gains and losses are included in the statement of activities. All other investments are carried at cost. Investments at the end of the year consist of the following: Investment Type Cost Basis Market Value Marketable equity securities: Common stock 1,638,240$ 1,804,255$ August 31, 2018 FASB ASC 820, Fair Value Measurements and Disclosures, establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the l owest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FASB ASC 820 are described as follows: Level 1 inputs: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Foundation has the ability to access. Level 2 inputs: Inputs to the valuation methodology include: • Quoted market prices for similar assets or liabilities in active markets; • Quoted prices for identical assets or liabilities in inactive markets; • Inputs other than quoted prices that are observable for the asset or liability; and • Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full-term of the asset or liability. Level 3 inputs: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements 26 The asset or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The following is a description of the valuation methodologies used for assets measured at fair value. Marketable Equity Securities Marketable equity securities reported as level 1 are determined by reference to quoted market prices for investments listed on an exchange or over-the-counter market. The following table sets forth by level, within the fair value hierarchy, the Foundation's assets at fair value as of August 31, 2018. Level 1 Level 2 Level 3 Total Marketable equity securities: Common stock 1,804,249$ -$ -$ 1,804,255$ Assets at Fair Value as of August 31, 2018 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, 2018, are summarized below. State Fund Entitlements Local Total General fund 543,176$ 5,683$ 548,859$ Nonmajor funds 51,568 - 51,568 Total 594,744$ 5,683$ 600,427$ Note 4. Donated Use of Facilities The Academy currently operates in facilities that a re 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, $753,824, in the government-wide statement of activities as capital grants and contributions and as expense allocated to the various functions. Note 5. Interfund Balances and Activities Interfund balances at August 31, 2018, consisted of the following individual fund balances: Due to Fund Due from Fund Amount Purpose General fund Nonmajor governmental 55,593$ Reimburse program disbursements General fund Local grant fund 186,676 Reimburse program disbursements Total 242,269$ The Academy had no interfund transfers during the year ending August 31, 2018. Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements 27 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: Local Grant Non-major General Fund Fund Funds Total Gifts and bequests 1,399,411$ 191,868$ 5,000$ 1,596,279$ Interest 9,878 - - 9,878 Food sales 7,000 - - 7,000 Campus activities - - 76,953 76,953 Parking/transportation 28,816 - - 28,816 Athletics 82,602 - - 82,602 Miscellaneous 43,475 - - 43,475 Total 1,571,182$ 191,868$ 81,953$ 1,845,003$ 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 positio n 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 mem bers 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. Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements 28 Early retirement is at age 55 with five 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 les s 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 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 2015 and 2016. The 84th Texas Legislature, General Appropriations Act (GAA) established the employer contribu tion rates for fiscal years 2017 and 2018. 2017 2018 Member 7.7%7.7% Non-employer contributing entity (State)6.8%6.8% Employers 6.8%6.8% 2018 Employer contributions 91,593$ 2018 Member contributions 407,324$ 2018 NECE on-behalf contributions 355,959$ Contribution rates Contributors to the plan include members, employers and the S tate 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). Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements 29 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 th e 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. • 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, there are two additional surcharges an employer is subject to: • 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. • When a school district or charter school does not contribute to the Federal Old -Age, Survivors and Disability Insurance (OASDI) Program for certain employees, they must contribute 1.5% of the state contribution rate for certain instructional or administrative employees; and 100% of the state contribution rate for all other employees. Actuarial Assumptions The total pension liability in the August 31, 2017 actuarial valuation was determined using the following actuarial assumptions: Valuation date August 31, 2017 Actuarial cost method Individual entry age normal Asset valuation method Market value Single discount rate 8.00% Long-term expected investment rate of return 8.00% Inflation 2.50% Salary increases including inflation 3.50% to 9.50% Payroll growth rate 2.50% Benefit changes during the year None Ad-hoc employment benefit changes None The actuarial methods and assumptions are primarily based on a study of actual experience for the four-year period ending August 31, 2014 and adopted on September 24, 2015 . Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements 30 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 cont ributing 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. 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) ar e 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, 2017 are summarized below: Long-term Expected Real Return Portfolio Target Geometric Real Rate of Asset Class Allocation Basis Return* Global Equity U.S.18%4.6%1.0% Non-U.S. Developed 13%5.1%0.8% Emerging Markets 9%5.9%0.7% Directional Hedge Funds 4%3.2%0.1% Private Equity 13%7.0%1.1% Stable Value U.S. Treasuries 11%0.7%0.1% Absolute Return 0%1.8%0.0% Stable Value Hedge Funds 4%3.0%0.1% Cash 1%-0.2%0.0% Real Return Global Inflation Linked Bonds 3%0.9%0.0% Real Assets 16%5.1%1.1% Energy and Natural Resources 3%6.6%0.2% Commodities 0%1.2%0.0% Risk Parity Risk Parity 5%6.7%0.3% Inflation Expectation 2.2% 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. Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements 31 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 2017 Net Pension Liability. 1% Decrease in Discount 1% Increase in Discount Rate Rate Discount Rate (7.0%)(8.0%)(9.0%) Academy's proportionate share of the net pension liability 1,509,911$ 895,663$ 384,202$ Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At August 31, 2017, the Academy reported a liability of $895,663 for its proportionate share of the TRS’s net pension liability. This liability reflects a reduction for State pension support provided to the Academy. The amount recognized by the Academy as its proportionate share of the net pension liability, the related State support, and the total portion of the net pension liability that was associated with the Academy were as follows: Academy's proportionate share of the collective net pension liability 895,663$ State's proportionate share that is associated with Academy 3,480,057 Total 4,375,720$ The net pension liability was measured as of August 31, 2017 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 c ontributions to the pension plan relative to the contributions of all employers to the plan for the period Septem ber 1, 2016 thru August 31, 2017. At August 31, 2017, the employer’s proportion of the collective net pension liability was 0.0028012% which was an increase of 0.000019% from its proportion measured as of August 31, 2016. Changes since the Prior Actuarial Valuation There were no changes to the actuarial assumptions or other inputs that affected measurement of the total pension liability since the prior measurement period. There were no changes of benefit terms that affected measurement of the total pension liability during the measurement period. For the year ended August 31, 2018, the Academy recognized pension expense of $441,006 and revenue and expense of $265,445 for support provided by the State. Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements 32 At August 31, 2018, the Academy reported its proportionate share of the TRS’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences between expected and actual economic experience 13,104$ 48,302$ Changes in actuarial assumptions 40,799 23,356 Difference between projected and actual investment earnings - 65,274 Changes in proportion and difference between the employer’s contributions and the proportionate share of contributions 364,013 913 Contributions paid to TRS subsequent to the measurement date 91,593 - Total 509,509$ 137,845$ The $91,593 reported as a deferred outflow of resources resulting from Academy contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending August 31, 2019. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Pension Expense Year Ended (Income) August 31, Amount 2019 63,372$ 2020 120,544 2021 58,977 2022 36,466 2023 857 Thereafter (145) Total 280,071$ Note 8. Health Care Coverage During the period ended August 31, 2018, 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 $351 per month per employee and $276 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 an y 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, and Caremark Health administers the prescription drug plan. The latest fina ncial 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. Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements 33 Note 9. Defined Other Post Employment Benefit Plan Plan Description The Academy participates in the Texas Public School Retired Employees Group Insurance Program (TRS-Care). It is a multiple-employer, cost-sharing defined Other Post-Employment Benefit (OPEB) plan that has a special funding situation. The plan is administered through a trust by the Teacher Retirement System of Texas (TRS) Board of Trustees. It is established and admini stered in accordance with the Texas Insurance Code, Chapter 1575. OPEB Plan Fiduciary Net Position Detail information about the TRS-Care’s fiduciary net position is available in the separately-issued TRS Comprehensive Annual Financial Report that incl udes 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-Care provides a basic health insurance coverage (TRS-Care 1), at no cost to all retirees from public schools, charter schools, regional education service centers and other educational Academys who are members of the TRS pension plan. Optional dependent coverage is available for an additional fee. Eligible retirees and their dependents not enrolled in Medicare may pay premiums to participate in one of two optional insurance plans with more comprehensive benefits (TR S-Care 2 and TRS-Care 3). Eligible retirees and dependents enrolled in Medicare may elect to participate in one of the two Medicare health plans for an additional fee. To qualify for TRS -Care coverage, a retiree must have at least 10 years of service credit in the TRS pension system. The Board of Trustees is granted the authority to establish basic and optional group insurance coverage for participants as well as to amend benefit terms as needed under Chapter 1575.052. There are no automatic post -employment benefit changes; including automatic COLAs. The premium rates for the optional health insurance are based on years of service of the member. The schedule below shows the monthly rates for the average retiree with Medicare Parts A&B coverage, with 20 to 29 years of service for the basic plan and the two optional plans. TRS-Care 1 TRS-Care 2 TRS-Care 3 Basic Plan Optional Plan Optional Plan Retiree*-$ 70$ 100$ Retiree and spouse 20 175 255 Retiree* and children 41 132 182 Retiree and family 61 237 337 Surviving children only 28 62 82 * or surviving spouse TRS-Care Plan Premium Rates Effective September 1, 2016 - December 31, 2017 Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements 34 Contributions Contribution rates for the TRS-Care plan are established in state statute by the Texas Legislature, and there is no continuing obligation to provide benefits beyond each fiscal year. The TRS -Care plan is currently funded on a pay-as-you-go basis and is subject to change based on available funding. Funding for TRS-Care is provided by retiree premium contributions and contributions from the state, active employees, and school Academys based upon public school Academy payroll. The TRS Board of trustees does not have the authority to set or amend contribution rates. Texas Insurance Code, section 1575.202 establishes the state’s contribution rate which is 1.0% of the employee’s salary. Section 1575.203 establishes the active employee’s rate which is .65% of pay. Section 1575.204 establishes an employer contribution rate of not less than 0.25 percent or not more than 0.75 percent of the salary of each active employee of the public. The actual employer contributi on rate is prescribed by the Legislature in the General Appropriations Act. The following table shows contributions to the TRS-Care plan by type of contributor. 2018 2017 Active employee 0.65%0.65% Non-employer contribution entity (state)1.25%1.00% Employers/District 0.75%0.55% Federal/private funding remitted by Employers 1.25%1.00% The contribution amounts for the Academy’s fiscal year 2018 are as follows: 2018 Employer contributions 46,204$ 2018 Member contributions 407,324$ 2018 NECE on-behalf contributions 52,680$ In addition to the employer contributions listed above, there is an additional surcharge all TRS employers are subject to (regardless of whether or not they participate in the TRS Care OPEB program ). When employers hire a TRS retiree, they are required to pay to TRS Care, a monthly surcharge of $535 per retiree. TRS-Care received supplemental appropriations from the State of Texas as the Non-Employer Contributing Entity in the amount of $15.6 million in fiscal year 2017 and $182.6 million in fiscal year 2018. Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements 35 Actuarial Assumptions The total OPEB liability in the August 31, 2017 actuarial valuation was determined using the following actuarial assumptions: Rates of mortality General inflation Rates of retirement Wage inflation Rates of termination Expected payroll growth Rates of disability incidence Additional Actuarial Methods and Assumptions: Valuation date August 31, 2017 Actuarial cost method Individual entry age normal Inflation 2.50% Discount rate* 3.42%* Aging factors Based on plan specific experience Expenses third-party administrative expenses related to the delivery of health care benefits are included in the age- adjusted claims costs. Payroll growth rate 2.50% Projected salary increases** 3.50% to 9.50%** Healthcare trend rates*** 4.50% to 12.00%*** Election Rates Normal retirement: 70% participation prior to age 65 and 75% participation after age 65 Ad hoc post-employment benefit changes None *Source: Fixed income municipal bonds with 20 years to maturity that include only federal tax-exempt municipal bonds as reported in Fidelity Index’s “20-Year Municipal GO AA Index” as of August 31, 2017. **Includes inflation at 2.50% ***Initial trend rates are 7.00% for non-Medicare retiree; 10.00% for Medicare retirees and 12.00% for prescriptions for all retirees. Initial trend rates decrease to an ultimate trend rate of 4.50% over a period of 10 years. Other information - There was a significant plan change adopted in fiscal year ending August 31, 2017. Effective January 1, 2018, only one health plan option will be offered and all retirees will be required to contribute monthly premiums for coverage. Assumption changes made for the August 31, 2017 valuation include a change to the assumption regarding the phase-out of the Medicare Part D subsidies and a change to the discount rate from 2.98% as of August 31, 2016 to 3.42% as of August 31, 2017. Discount Rate A single discount rate of 3.42% was used to measure the total OPEB liability. There was a change of .44 percent in the discount rate since the previous year. Because the plan is essentially a “pay-as-you-go” plan, the single discount rate is equal to the prevailing municipal bond rate. The projection of cash flows used to determine the discount rate assumed that contributions from active 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 OPEB plan’s fiduciary net position was projected to not be able to make all future benefit payments of current plan members. Therefore, the municipal bond rate was applied to all periods of projected benefit payments to determine the total OPEB liability. Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements 36 Discount Rate Sensitivity Analysis. The following schedule shows the impact of the Net OPEB Liability if the discount rate used was 1% less than and 1% greater than the discount rate that was used (3.42%) in measuring the Net OPEB Liability. 1% Decrease in Discount 1% Increase in Discount Rate Rate Discount Rate (2.42%)(3.42%)(4.42%) Academy's proportionate share of the net OPEB liability 3,019,446$ 2,558,314$ 2,187,668$ Healthcare Cost Trend Rates Sensitivity Analysis. The following presents the net OPEB liability of the plan using the assumed healthcare cost trend rate, as well as what the net OPEB liability would be if it were calculated using a trend rate that is one-percentage point lower or one-percentage point higher than the assumed healthcare cost trend rate. 1% Decrease in Discount 1% Increase in Discount Rate Rate Discount Rate Academy's proportionate share of the net OPEB liability 2,130,052$ 2,558,314$ 3,120,248$ OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEBs At August 31, 2018, the Academy reported a liability of $2,558,314 for its proportionate share of the TRS’s Net OPEB Liability. This liability reflects a reduction for State OPEB support provided to the Academy. The amount recognized by the Academy as its proportionate share of the net OPEB liability, the related State support, and the total portion of the net OPEB liability that was associated with the Academy were as follows: Academy's proportionate share of the collective net pension liability 2,558,314$ State's proportionate share that is associate with Academy 4,406,333 Total 6,964,647$ The Net OPEB Liability was measured as of August 31, 2017 and the Total OPEB Liability used to calculate the Net OPEB Liability was determined by an actuarial valuation as of that date. The employer’s proportion of the Net OPEB Liability was based on the employer’s contributions to the OPEB plan relative to the contributions of all employers to the plan for the period September 1, 2016 thru August 31, 2017. At August 31, 2017 the employer’s proportion of the collec tive Net OPEB Liability was .00588304% which was the same proportion measured as of August 31, 2016. Changes Since the Prior Actuarial Valuation. The following were changes to the actuarial assumptions or other inputs that affected measurement of the Total OPEB liability since the prior measurement period. The following assumptions and other inputs which are specific to TRS -Care were updated during the year ended August 31, 2017: 1. Effective January 1, 2018, only one health plan option will exist (instead of three), and all retirees will be required to contribute monthly premiums for coverage. The health plan changes triggered changes to several of the assumptions, including participation rates, retirement rates, and spousal participation rates. Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements 37 2. The August 31, 2016 valuation had assumed that the savings related to the Medicare Part D reimbursements would phase out by 2022. This assumption was removed for the August 31, 2017 valuation. Although there is uncertainty regarding these federal subsidies, the new assumption better reflects the current substantive plan. This change was unrelated to the plan amendment, and its impact was included as an assumption change in the reconciliation of t he total OPEB liability. This change significantly lowered the OPEB liability. 3. The discount rate changed from 2.98 percent as of August 31, 2016 to 3.42 percent as of August 31, 2017. This change lowered the total OPEB liability. For the year ended August 31, 2018, the Academy recognized OPEB expense of ($2,326,965) and revenue of ($1,474,476) for support provided by the State. At August 31, 2018, the Academy reported its proportionate share of the TRS’s deferred outflows of resources and deferred inflows of resources related to other post-employment benefits from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences between expected and actual economic experience -$ 53,407$ Changes in actuarial assumptions - 1,016,741 Difference between projected and actual investment earnings 389 - Changes in proportion and difference between the employer’s contributions and the proportionate share of contributions 10 - Contributions paid to TRS subsequent to the measurement date 46,204 - Total 46,603$ 1,070,148$ The $46,204 deferred outflow of resources resulting from Academy contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the year ende d August 31, 2019. The net amounts of the remaining balances of deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: Pension Expense Year Ended (Income) August 31, Amount 2019 (141,154)$ 2020 (141,154) 2021 (141,154) 2022 (141,154) 2023 (141,251) Thereafter (363,882) Total (1,069,749)$ Note 10. Risk Management The Academy is exposed to various risk of loss related to torts, theft of, damage to and d estruction 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. Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements 38 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, 2 018 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 agreement s 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 $491,040 was under capital lease at August 31, 2018. Because the cost of the individual items was below the Academy’s capitalization threshold, the entire cost was recorded as expense. The following schedule shows the future minimum lease payments under the ca pitalized lease together with the present value of the net minimum lease payments as of August 31, 2018: Annual Lease Payments 166,039$ Total minimum lease payments 166,039 Less: amounts representing interest (4,034) Present value of net minimum lease payments 162,005$ Year Ending August 31, 2019 Note 12. Related Party Transactions The Westlake Academy Foundation contributed $1,173,057 to the Academy during the fiscal year ended August 31, 2018. In addition to the use of facilities discussed in Note 4 , the Town of Westlake contributed $315,000 to the Academy during the year. As of August 31, 2018, the Westlake Academy Foundation owed the Academy $194,368. This amount is included in the Academy’s other receivables balance and in the Westlake Academy’s Foundation’s other payables balances. 39 Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements Note 13. Evaluation of Subsequent Events The Academy has evaluated subsequent events through November 26, 2018, the date which the financial statements were available to be issued. Note 14. New Accounting Pronouncements In June 2018 the GASB released GASB statement No. 87, Leases. This statement was issued to increase the usefulness of governmental entities’ financial statements by requiring recognition of certain lease assets and liabilities that were previously accounted for as operating leases. It establishes a single model for lease accounting based on the principle that leases are a financing of the right to use an underlying asset. Under this statement a lessee is required to recognize a lease liability and an intangible right-to-use asset and a lessor is required to recognize a lease receivable and a deferred inflow of resources. This statement is effective for the Academy for the year ended June 30, 2021 and the Academy is currently evaluating the impact of this standard on its financial statements. Note 15. Expenditures in Excess of Appropriations For the year ending August 31, 2018, expenditures exceeded appropriations in the following functions: Instruction ($85,106); Guidance, Counseling and Evaluation Services ($3,586); Health Services ($1,087) and General Administration ($5,887). In addition, expenditures exceeded appropriations for the general fund as a whole by $26,797. These over-expenditures will be addressed through future appropriations. Note 16. Cumulative Effect of Change in Accounting Principles As a result of implementation of GASB Statement No. 75, “Accounting and Financial Reporting for Post- employment Benefits Other than Pensions”, an adjustment has been made to record the Academy’s net OPEB liability as of August 31, 2016. As a result, beginning net position of the governmental activities has been decreased by $4,480,552, the net effect of the beginning net OPEB liability of $4,516,574 and employer contributions made prior to the beginning of the measurement period in the amount of $36,022. 40 Required Supplementary Information Westlake Academy Exhibit E-1 (A Component Unit of the Town of Westlake) Budgetary Comparison Schedule – General Fund For the Year Ended August 31, 2018 The Notes to the Budgetary Comparison Schedule are an integral part of this statement. 41 Variance with Data Actual Final Budget Control Amounts Positive or Codes Original Final GAAP Basis (Negative) REVENUES 5700 Local and intermediate sources 1,582,400$ 1,573,300$ 1,571,182$ (2,118)$ 5800 State program revenues 7,001,700 6,904,345 7,077,020 172,675 5020 Total revenues 8,584,100 8,477,645 8,648,202 170,557 EXPENDITURES CURRENT: 0011 Instruction 4,975,270 4,839,602 4,924,708 (85,106) 0012 Instructional resources and media services 82,639 87,379 86,094 1,285 0013 Curriculum and staff development 84,545 86,200 83,902 2,298 0021 Instructional leadership 206,623 161,919 153,295 8,624 0023 School leadership 757,692 896,747 888,589 8,158 0031 Guidance, counseling, and evaluation services 223,973 307,664 311,250 (3,586) 0033 Health services 66,024 71,146 72,233 (1,087) 0036 Extracurricular activities 218,358 237,474 215,236 22,238 0041 General administration 260,167 319,088 324,975 (5,887) 0051 Facilities maintenance and operations 960,743 947,615 931,623 15,992 0053 Data processing services 195,505 199,407 192,034 7,373 0061 Community services 124,460 133,763 130,862 2,901 DEBT SERVICE: 0071 Debt service - principal on long-term debt 158,182 158,182 158,182 - 0072 Debt service - interest on long-term debt 8,885 8,885 8,885 - 6030 Total expenditures 8,323,066 8,455,071 8,481,868 (26,797) 1100 Excess of revenues over expenditures 261,034 22,574 166,334 143,760 1200 Net change in fund balance 261,034 22,574 166,334 143,760 0100 Fund balances--beginning 939,271 939,271 939,271 - 3000 Fund balances - ending 1,200,305$ 961,845$ 1,105,605$ 143,760$ Budgeted Amounts Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Budgetary Comparison Schedule For the Year Ended August 31, 2018 42 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 meeting 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 th rough 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. Westlake Academy Exhibit E-2 (A Component Unit of the Town of Westlake) Schedule of Academy’s Proportionate Share of Net Pension Liability – Teacher Retirement System For the Last Ten Plan Years 43 2017 2016 2015 2014 Academy's proportion of the net pension liability 0.0028012%0.0027822%0.0030945%0.0007190% Academy's proportionate share of net pension liability 895,663$ 1,051,346$ 1,093,865$ 192,056$ State's proportionate share of net pension liability associated with the Westlake Academy 3,480,057 4,035,754 3,667,893 2,965,583 Total 4,375,720$ 5,087,100$ 4,761,758$ 3,157,639$ Academy's covered payroll 5,391,515$ 5,094,571$ 4,784,695$ 4,300,931$ Academy's proportionate share of net pension liability as a percentage of its covered payroll 16.61%20.64%22.86%4.47% Plan fiduciary net position as a percentage of total pension liability 82.17%78.00%78.43%83.25% Note: Only four years of data is presented in accordance with GASB #68, paragraph 138. "The information for all periods for the 10- year schedules that are required to be presented as required supplementary information may not be available initially. In these cases, during the transition period, that information should be presented for as many years as are available. The schedules s hould not include information that is not measured in accordance with the requirements of this Statement." Westlake Academy Exhibit E-3 Schedule of Pension Contributions – Teacher Retirement System For the Last Ten Fiscal Years 44 2018 2017 2016 2015 Statutorily required contributions 91,593$ 131,436$ 88,399$ 92,325$ Actual contributions in relation to statutorily required contributions 91,593 131,436 88,399 92,325 Contribution deficiency (excess)-$ -$ -$ -$ Academy's covered payroll 5,289,916$ 5,391,515$ 5,094,571$ 4,784,694$ Contributions as a percentage of Academy's covered payroll 1.73%2.44%1.74%1.93% Note: GASB 68, Paragraph 81.2.b requires that the data in this schedule be presented as of the Academy's current fiscal year as opposed to the time period covered by the measurement date. Note: Only four years of data is presented in accordance with GASB #68, paragraph 138. "The information for all periods for the 10- year schedules that are required to be presented as required supplementary information may not be available initially. In the se cases, during the transition period, that information should be presented for as many years as are available. The schedules should not include information that is not measured in accordance with the requirements of this Statement. Westlake Academy Exhibit E-4 (A Component Unit of the Town of Westlake) Schedule of Academy’s Proportionate Share of Net OPEB Liability – Teacher Retirement System TRS Care Plan For the Last Ten Plan Years 45 2017 Academy's proportion of the net OPEB liability 0.0058830418% Academy's proportionate share of net OPEB liability 2,558,314$ State's proportionate share of net OPEB liability associated with the Westlake Academy 4,406,333 Total 6,964,647$ Academy's covered payroll 5,391,515$ Academy's proportionate share of net OPEB liability as a percentage of its covered payroll 47.45% Plan fiduciary net position as a percentage of total OPEB liability 0.91% Note: Only one year of data is presented in accordance with GASB #75. "The information for all periods for the 10-year schedules that are required to be presented as required supplementary information may not be available initially. In these cases, during the transition period, that information should be presented for as many years as are available. The schedules should not include information that is not measured in accordance with the requirements of this Statement." Westlake Academy Exhibit E-5 Schedule of OPEB Contributions – Teacher Retirement System TRS Care Plan For the Last Ten Fiscal Years 46 2018 Statutorily required contributions 46,204$ Actual contributions in relation to statutorily required contributions 46,204 Contribution deficiency (excess)-$ Academy's covered payroll 5,289,916$ Contributions as a percentage of Academy's covered payroll 0.87% Note: GASB 75 requires that the data in this schedule be presented as of the Academy's current fiscal year as opposed to the time period covered by the measurement date. Note: Only one year of data is presented in accordance with GASB #75. "The information for all periods for the 10-year schedules that are required to be presented as required supplementary information may not be available initially. In these cases, during the transition period, that information should be presented for as many years as are available. The schedules should not include information that is not measured in accordance with the requirements of this Statement.” " 47 Combining Statements Westlake Academy (A Component Unit of the Town of Westlake) Combining Balance Sheet Nonmajor Governmental Funds August 31, 2018 48 224 410 461 Data Control Codes IDEA Part B Formula State Textbook Fund Campus Activity Funds 1110 Cash and cash equivalents -$ -$ 13,000$ 1240 Due from other governments - 51,568 - 1410 Prepaid expenditures - 1,525 - 1000 Total assets -$ 53,093$ 13,000$ LIABILITIES: 2110 Accounts payable -$ -$ 1,622$ 2170 Due to other funds - 53,093 - Total liabilities - 53,093 1,622 FUND BALANCES: Nonspendable for: 3430 Prepaid items - 1,525 - Committed for: 3545 Campus activities - - 11,378 3600 Unassigned - (1,525) - 3000 Total fund balances - - 11,378 4000 Total liabilities and fund balances -$ 53,093$ 13,000$ LIABILITIES AND FUND BALANCES ASSETS Exhibit F-1 49 482 497 498 Hudson Grant Foundation- Student Scholarships International Mindedness Education Symposium Total Nonmajor Governmental Funds -$ -$ -$ 13,000$ - 2,500 - 54,068 - - - 1,525 -$ 2,500$ -$ 68,593$ -$ -$ -$ 1,622$ - 2,500 - 55,593 - 2,500 - 57,215 - - - 1,525 - - - 11,378 - - - (1,525) - - - 11,378 -$ 2,500$ -$ 68,593$ Westlake Academy (A Component Unit of the Town of Westlake) Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds For the Year Ended August 31, 2018 50 224 410 461 Data Control Codes IDEA Part B Formula State Textbook Fund Campus Activity Funds REVENUES 5700 Local and intermediate sources -$ -$ 76,953$ 5800 State program revenues - 139,098 1,265 5900 Federal program revenues 114,797 - - 5020 Total revenues 114,797 139,098 78,218 EXPENDITURES Current: 0011 Instruction 114,797 139,098 - 0013 Curriculum and instructional staff development - - - 0023 School leadership - - - 0036 Extracurricular activities - - 80,138 6030 Total expenditures 114,797 139,098 80,138 1100 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES - - (1,920) 1200 NET CHANGE IN FUND BALANCES - - (1,920) 0100 FUND BALANCES, BEGINNING - - 13,298 3000 FUND BALANCES, ENDING -$ -$ 11,378$ Exhibit F-2 51 482 497 498 Hudson Grant Foundation- Student Scholarships International Mindedness Education Symposium Total Nonmajor Governmental Funds -$ 2,500$ 2,500$ 81,953$ - - - 140,363 - - - 114,797 - 2,500 2,500 337,113 767 2,500 - 257,162 - - 1,029 1,029 2,670 - 5,427 8,097 - - - 80,138 3,437 2,500 6,456 346,426 (3,437) - (3,956) (9,313) (3,437) - (3,956) (9,313) 3,437 - 3,956 20,691 -$ -$ -$ 11,378$ 52 Internal Control Report Austin | Conroe | Dallas | Fort Worth | Houston Los Angeles | Midland | New York City | San Antonio Weaver and Tidwell, L.L.P. 2300 North Field Street, Suite 1000 | Dallas, Texas 75201 Main: 972.490.1970 | Fax: 972.702.8321 CPAs AND ADVISORS | WEAVER.COM 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 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, 2018, and the related notes to the financial statements, which collectively comprise the Academy's basic financial statements and have issued our report thereon dated November 26, 2018. 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 opini ons 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 iden tify 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. 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. The Board of Trustees Westlake Academy 54 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 November 26, 2018 Austin | Conroe | Dallas | Fort Worth | Houston Los Angeles | Midland | New York City | San Antonio Weaver and Tidwell, L.L.P. 2300 North Field Street, Suite 1000 | Dallas, Texas 75201 Main: 972.490.1970 | Fax: 972.702.8321 CPAs AND ADVISORS | WEAVER.COM November 26, 2018 Board of Trustees Westlake Academy 1500 Solana Blvd, Bldg 7, Suite 7200 Westlake, Texas 76262 We have audited the financial statements of Westlake Academy (the Academy) as of and for the year ended August 31, 2018, and have issued our report thereon dated November 26, 2018. Professional standards require that we advise you of the following matters relating to our audit. Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated June 20, 2018, our responsibility, as described by professional standards, is to form and express an opinion(s) about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the fin ancial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing 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 over financial reporting. Accordingly, as part of our audit, we considered the internal control of the Academy solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial rep orting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. Planned Scope and Timing of the Audit We conducted our audit consistent with the planned scope and timing we previously communicated to you. Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and our firm have complied with all relevant ethical requirements regarding independence. Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. Westlake Academy November 26, 2018 Page 2 A summary of the significant accounting policies adopted by the Academy is included in Note 1 to the financial statements. During 2018, the Academy implemented GASB Statem ent No. 75, “Accounting and Financial Reporting for Post -Employment Benefits Other Than Pensions”. As a result, beginning net position of the Academy’s governmental activities was reduced by $4,480,552 , the cumulative effect of implementation of this Statement. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the eff ect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments. The most sensitive accounting estimates affecting the financial statements are Foundation School Program revenue and the net pension and OPEB liabilities. We evaluated the key factors and assumptions used to develop the estimates and determined that they are reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units. Financial Statement Disclosures Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the Academy’s financial statements relate to the net pension and OPEB liabilities. Significant Difficulties Encountered during the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. Uncorrected and Corrected Misstatements For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are tri vial, and communicate them to the appropriate level of management. There were no significant adjustments made to the financial statements as a result of our audit procedures. Further, professional standards require us to also communicate the effect of un corrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. The attached schedule summarizes an uncorrected financial statement misstatement whose effects in the current and prior periods, as determined by management, are immaterial, both individually and in the aggregate, to the financial statements taken as a whole and each applicable opinion unit. Westlake Academy November 26, 2018 Page 3 Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to Westlake Academy’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit. Representations Requested from Management We have requested certain written representations from management, which are included in the attached letter dated November 26, 2018. Management’s Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. Other Significant Matters, Findings, or Issues In the normal course of our professional association with the Academy, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the entity, and operational plans and strat egies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the Academy’s auditors. This report is intended solely for the information and use of the Board of Trustees, and management of Westlake Academy and is not intended to be and should not be used by anyone other than these specified parties. WEAVER AND TIDWELL, L.L.P. Westlake Academy November 26, 2018 Page 4 Uncorrected Misstatement: Proposed JE # 3001 To correctly record lease payment in FY18. 199003600 Unassigned Fund Balance/ 158,182.00 199716522 Capital Lease Interest/Debt Service 158,182.00 Total 158,182.00 158,182.00 estlake Academy Board of Trustees TYPE OF ACTION Workshop - Discussion Item Westlake Board Meeting Monday, December 03, 2018 TOPIC: Consider Approval of a Resolution Approving A Trip to Canada Regarding French Language Immersion Experience In Quebec STAFF CONTACT: Dr. Mechelle Bryson, Executive Director of Westlake Academy Strategic Alignment Vision, Value, Mission Perspective Curriculum Outcome Objective Vision: Westlake Academy inspires college bound students to achieve their highest individual potential in a nuturing environment that fosters the traits found in the IB Learner Profile. Academic Operations MYP / DP Strengthen IB Philosophy & Implementation Strategic Initiative Outside the Scope of Identified Strategic Initiatives Time Line - Start Date: December 3, 2018 Completion Date: Ongoing Funding Amount: Ongoing Status - Funded Source - Self-funded EXECUTIVE SUMMARY (INCLUDING APPLICABLE ORGANIZATIONAL HISTORY) The world in which our students work, live and tweet require them to effectively communicate with others around the world, to partner with them to collectively solve problems and to execute these solutions in a way that demonstrates intercultural understanding and consideration of different perspectives. As such, International Mindedness is the cornerstone of the IB mission. Over the past five years, the Academy has placed an increased emphasis on strengthening the international mindedness of stakeholders by creating partnerships with international schools and providing Academy students language immersion learning experiences. Currently, we do not have language immersion learning experiences for Westlake Academy’s French learning students. According to Westlake Academy board policy 6.02, Board Parameters for School Sanctioned Trips, “all international trips must adhere to all Westlake Academy Board Policies and administrative procedures for school sanctioned trips. These school sanctioned trips may be offered at various times throughout the year upon the recommendation of the Executive Director and approval by the Board of Trustees”. Westlake Academy’s Executive Director has reviewed the request to add a French language immersion experience to Quebec and is seeking Board approval. Specifics of the trip are attached. RECOMMENDATION Seeking board approval. ATTACHMENTS Resolution and Proposed Trip Itinerary Resolution 18-15 Page 1 of 6 WESTLAKE ACADEMY RESOLUTION 18-15 A RESOLUTION OF THE WESTLAKE ACADEMY BOARD OF TRUSTEES APPROVING THE TRIP TO CANADA REGARDING FRENCH LANGUAGE IMMERSION EXPERIENCE IN QUEBEC. WHEREAS, Westlake Academy ensures the successful implementation of the International Baccalaureate framework; and WHEREAS, Westlake Academy ensures the successful integration of international mindedness through all International Baccalaureate Programmes; and WHEREAS, Westlake Academy ensures that all three components of international mindedness, cultural awareness, multilingualism and global participation, is visible within all International Baccalaureate Programme; 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 of Westlake Academy, hereby approves the trip to Canada regarding French language immersion experience in Quebec 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 18-15 Page 2 of 6 SECTION 4: That this resolution shall become effective from and after its date of passage. PASSED AND APPROVED ON THIS 3th DAY OF JANUARY 2019. ___________________________________ 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 18-15 Page 3 of 6 Exhibit “A” Resolution 18-15 Page 4 of 6 Resolution 18-15 Page 5 of 6 Resolution 18-15 Page 6 of 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. Board of Trustees Item # 5 – Future Agenda Items Board of Trustees Item # 6 – Adjournment Regular Session