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HomeMy WebLinkAboutRes 19-14 WA Adopting the Academy Budget for Fiscal Year 2019-2020 WESTLAKE ACADEMY RESOLUTION NO. 19-14 A RESOLUTION OF THE BOARD OF TRUSTEES OF WESTLAKE ACADEMY TO ADOPT THE REVISED OPERATING BUDGET FOR FISCAL YEAR ENDING AUGUST 31, 2019 AND THE PROPOSED BUDGET FOR FISCAL YEAR ENDING AUGUST 31, 2020 INCLUDING INVESTMENT POLICY, FISCAL AND BUDGETARY POLICIES, COMMITTED AND ASSIGNED FUND BALANCES. BE IT RESOLVED BY THE BOARD OF DIRECTORS OF WESTLAKE ACADEMY: WHEREAS, Section 44.002 of the Education Code of the Texas Education Agency Texas School Law Bulletin states the budget must be prepared according to generally accepted accounting principles, and WHEREAS, the budget must be approved by the Board of Trustees prior to August 315c according to Texas Education Agency's Financial Accountability System Resource Guide, Section 2.6.2—TEA Legal Requirements; and WHEREAS,the Board of Trustees held a Public Hearing on August 5th, 2019; 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 THE 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 hereby adopts the amended Westlake Academy Operating Budget for the fiscal year ending August 31, 2019 and the proposed Westlake Academy Annual Operating Budget for the fiscal year ending August 31, 2020 and appropriates the funds contained therein attached to this resolution as Exhibit "A': SECTION 3: That the Board of Trustees hereby adopts the Fiscal and Budgetary Policies, Investment Policies, and the Committed and Assigned Fund Balance designations that are also included in Exhibit A. SECTION 4: That a copy of the official adopted 2019-2020 Budget shall be kept on file in the office of the Town Secretary. WA Resolution 19-14 Page I of 2 SECTION 5: If any portion of this resolution shall, for any reason, be declared invalid by any court of competent jurisdiction, such invalidity shall not affect the remaining provisions hereof and the Council hereby determines that it would have adopted this Resolution without the invalid provision. SECTION 6: That this resolution shall become effective from and after its date of passage. PASSED AND APPROVED ON THIS 5"' DAY OF AUGUST, 2019. Laura Wheat, President ATTEST: Kell Edward Board Secretary Amanda DeGan, Superintendent APPROVED AS TO FORM: L. Stanton Lowry or Janet S. Bubert, School Attorney WA Resolution 19-14 Page 2 of 2 BaccalaureateWESTLAKE ACADEMY International • School IL 6L �L 1B Westlak( is • 4 . -. yy ems, ■ rii.��r'�.L i`;' _ :.'�::-=nf� a .��+••�_ Z • • www.westlakeacademy.org 11i4iba e 4 nlevi l"Onal f Ma�jil TABLE OF CONTENTS Westlake Academy, IBO Charter School* 2600 Ottinger Road * Tarrant County, Westlake Texas 76262 1. INTRODUCTION SECTION Mission,Vision,Values 1 ASBO Meritorious Budget Award 2 2. EXECUTIVE SECTION Executive Summary Letter 7 Service Level Adjustments 13 Strategic Planning & Management System 14 Challenges, Goals, Strategies, Initiatives and Long-Term Financial Planning 20 3. BUDGET STRUCTURE Budget Overview and Process 23 Budget Document Structure 29 Fund Balance Components 31 Fund Types and Structure 32 Account Coding Structure 34 Revenue Classifications 35 Revenue Allocations 36 Expenditure Classifications 37 Expenditures Shared Service Model 41 Relationship between Funds4l and Departments 42 Financial Reporting Entity Lega421 Autonomy 43 4. FINANCIAL ANALYSIS Financial Forecast Assumptions 47 General Fund Five Year Forecast 48 Governmental Funds Governmental Funds Financial Summary 49 Combined Statement of Revenues, Expenditures and Changes in Fund Balance 53 Revenues, Expenditures and Expenditures by Object Code 54 Revenues and Expenditures by Function 55 General Fund General Fund Financial Summary 56 Combined Statement of Revenues, Expenditures and Changes in Fund Balance 58 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 60 Schedule of Expenditures by Function/Object Code 61 Revenue and Expenditure Comparison 64 i TABLE OF CONTENTS Westlake Academy, IBO Charter School* 2600 Ottinger Road * Tarrant County, Westlake Texas 76262 S. FINANCIAL ANALYSIS (CONTINUED) Fund 197-Transportation/Parking 65 Fund 198-Athletic Activities 66 Fund 199-General Fund 67 Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance 68 Schedule of Expenditures 69 Combined Statement of Revenues, Expenditures and Changes in Fund Balance 70 Municipal Debt Service 71 Capital Improvement Projects 72 6. PERSONNEL & PAYROLL Personnel Staffing& Payroll Overview 75 Organizational Chart 80 Board of Trustees 81 Leadership Team 82 Organizational Structure Municipal Oversight 83 Organizational Structure Academic Management- 84 7. POLICY SECTION Investment Policy 89 Fiscal and Budgetary Policies 94 Risk Management 103 Future Polices to be discussed/implemented 104 8. APPENDIX SECTION Glossary 109 Acronyms 117 Academic Calendar 118 ii y ti k�ly � '�' i'.i•�v=v 11i4iba e 4 nlevi l"Onal f Ma�jil MISSION, VISION & VALUES Founded in 2003 with a vision to achieve academic excellence and develop life-long learners who become well-balanced, responsible global citizens,Westlake Academy is the first and only municipally-owned charter school in the State of Texas.The Academy was the fifth school in the United States, and the only public school,to offer the full IB curriculum for grades K-12. During each year's budget retreat, great care and consideration is given to review the mission,vision and values of the Academy and the impact these have on both the long-term goals and its day-to-day operation. The vision, mission and value statements represent the outcome of these discussions and confirm the Board's continued dedication to academic excellence and personal achievement. MISSION "Westlake Academy is an IB World School whose mission is to provide students with an internationally minded education of the highest quality, so they are well-balanced and respectful life-long learners." VISION "Westlake Academy inspires college bound students to achieve their highest individual potential in a nurturing environment + that fosters the traits found in the IB learner profile." Inquirers, Knowledgeable, Thinkers, Communicators, Principled, Open-minded, Caring, Risk-takers, Balanced, and Reflective- VALUES � . Maximizing Personal Development '• }� .■ Academic Excellence Respect for Self and Others • Personal Responsibility Compassion and Understanding • DESIRED OUTCOMES The following desired outcomes summarize the goals and objectives established by the Board of Trustees ■ and Leadership Staff at the Academy: w • • •• High Student Achievement ■ Strong Parent& Community Connections • Financial Stewardship&Sustainability Student Engagement-Extracurricular Activities Effective Educators&Staff 1 ASSOCIATION OF SCHOOL BUSINESS OFFICIALS INTERNATIONAL This Meritorious Budget Award is presented to for excellence in the preparation and issuance of its budget for the Fiscal Year 2018-2019. The budget adheres to the principles and standards of ASBO International's Meritorious Budget Award criteria. • ■ ■ r, Anthony N. Dragona, Ed.D., RSBA John D. Musso, CAE, RSBA President Executive Director 2 MERITORIOUS BUDGET AWARD Westlake Academy has been awarded the Meritorious Budget Award by the Association of School Business Officials (ASBO) for the preparation and issuance of the 2017-2018 annual budget. The award has been received annually since September 1, 2010. This award is the highest form of recognition and a significant achievement that reflects the commitment of the governing • ■ body and staff in meeting the highest principles of academic budgeting. 4 The Meritorious Budget Award (MBA) recognizes school districts that demonstrate proficiency in creating clear, sound budgets while enhancing skills in developing, analyzing, and presen ing a c ear and ettective budget. To receive this award, Westlake Academy must publish a budget document that meets program criteria such as • Understanding the importance of presenting an accurate and transparent budget year after year. • Discovering best practices in budgeting that will improve the budget's accuracy and transparency MERIIORIous • Developing a reader-friendly document that presents clear budget guidelines. G� • Promoting communication between departments and the community. ` • Encouraging short- and long-range budget goals. • Supporting effective use of educational resources. Congratulations to Debbie Piper, Finance Director; Marlene Rutledge, Accounting Technician II; Dr. Mechelle Bryson, Executive Director, and the Instructional Leadership Team for preparing this award-winning budget for Westlake Academy. 3 11i4iba e 4 nlevi l"Onal f Ma�jil 4 y ti k�ly � '�' i'.i•�v=v 11i4iba e 4 nlevi l"Onal f Ma�jil 6 August 5, 2019 Honorable Board of Trustees, I am pleased to present the Academic Budget for the 2019-2020 school year for your consideration.The shared services teams for both our academic and municipal staff members worked together to prepare a comprehensive document,which will implement the changes passed during the 861h legislative session and continue to provide an outstanding educational opportunity for our students. On behalf of our entire community, I would like to thank the Board for the governance, leadership, dedication, and support in making Westlake Academy a school that allows students to reach their highest individual potential through our commitment to educational excellence! I. INTRODUCTION The budget reflects Westlake Academy's continuing initiatives that support the vision, mission, and values established by the governing board. We remain a school that is focused on the college readiness of our students and also on helping them work toward being internationally minded and well-balanced, life-long learners. The International Baccalaureate (IB) continuum builds upon each other to prepare students for post-secondary success and life in our fast paced and knowledge rich world. As we see in multiple professions, and businesses, our graduates must compete on a global stage and will need specific 215Y century skills to be able to successfully navigate an ever-changing internationally minded marketplace. As such, alignment to our vision, mission, and values is a key driver in our success. The proposed budget reflects the following: * continued increases in student enrollment that are a result of the residential growth of the Town of Westlake, and the success the Academy has had in preparing students for post-secondary achievements, * additional state revenue, expenditures for salaries, and retirement, which was mandated through the approval of House Bill 3, * an increase of$30,000 in Blacksmith Fund donations, * an English teaching position, a new PYP Interventionist for Literacy, and an additional MYP Counselor Position. As with our previous budget submittals,the financial information has been prepared according to conservative revenue projections and expenditures that are targeted to create a learning environment for student success. This document contains a high WESTLAKE ACADEMY - level summary showing proposed Academy budget numbers for SY 2019/2020. Statistical data, summaries, and charts are intended to provide a review of the proposed budget,which will provide both staff and �a� aoQ3 administration with a guidance tool for this year and a forecast for the = future. The theme for the new school year is also in keeping with our directives from the Board: IB forAll:Building a Continuum of Excellence 7 General Fund Budget Summary A public school operating budget is legally required to include the Academy's General Operating, Debt Service, and Food Service Funds. Because the Academy does not maintain the latter two, the General Fund is the only legally adopted fund. For informational purposes only, budgets for Special Revenue Funds are included throughout the presentation. Amended Proposed $Increase %Increase FY 2018/19 FY 2019/20 (Decrease) (Decrease) Total Revenues $ 8,923,313 $ 9,717,933 $ 794,620 8.90% Total Expenditures 8,775,132 9,572,502 797,370 9.09% Other Resources 76,000 76,000 - 0.00% Other Uses (76,000) (76,000) - 0.00% Excess Revenues Over(Under) Expenditures 148,181 145,151 (2,750) -1.86% FUND BALANCE BEGINNING 1,105,605 1,253,786 148,181 13.40% FUND BALANCE ENDING 1,235,786 1,399,217 145,431 11.60% Assigned 90,450 34,000 (56,450) -62.41% FUND BALANCE ENDING(Unassigned) $ 1,163,336 $ 1,365,217 $ 201,881 17.35% #Days Operating(Based on 365) 48 52 4 7.58% Students Enrolled 869 910 41 4.72% TEA Funding per Student $ 7,972 $ 8,399 $ 427 5.36% Operating Cost per Student $ 10,098 $ 10,519 $ 421 4.17% Teachers 66.25 70.50 4.25 6.42% Student/Teacher Ratio 13.12 12.90 (0.20) -1.59% II. CURRENT CONDITIONS AND FUTURE CONSIDERATIONS The Town of Westlake, and therefore Westlake Academy,finds itself in one of DFW's most desirable executive housing corridors and rapid growth regions for the Metroplex- located along State Highway 114. Growth associated with the region necessitates that we not only understand and deal with the associated changes, but also understand the impact future growth presents for our community. As our state educational charter is held by the municipality, any challenge or opportunity experienced by the community as a whole also affects the Academy. The most pressing challenges include: Westlake's Permanent Population Growth: This is the portion of our population considered to be our permanent residential base. The growth from the 1990 population of 185 to 2019's number of approximately 1,450 residents, represents an increase of 684% equal to roughly 1,265 additional residents. We continually monitor and plan for increases in these numbers considering our Comprehensive Plan's (Forging Westlake) forecast of approximately 7.21% annual population growth between now and 2040. This would bring us to around 7,000 residents. The number of Westlake residents who are selecting Westlake Academy as the educational choice for their students has doubled in the past several years. Resident surveys continually indicate that the Academy is a strong motivator for our residents to locate in Westlake, along with other quality of life amenities and our public safety services. Planning for student enrollment growth in light of residential development continues to be a challenge. 8 Westlake Academy has experienced steady expansion across our Kindergarten through G12 cohorts-from 491 students in SY 09/10 to a projected 910 in just 10 years time (SY 19/20). Current efforts to monitor our enrollment, includes the use of a consulting firm to review our existing facility master plan.The coming school year we will see the plan updated with new information, projections for student enrollment, and recommendations to help us prepare for both our immediate and long-term facility needs. Our current growth requires that we carefully manage our student enrollment processes to help ensure that we provide available space for children in our primary boundary. DFW Metro Area Employment and Population Growth: Since 1970,the Dallas Fort Worth Metroplex has grown by more than 150%-a faster pace than the state and nation. At 9,500 square miles, it is larger in total area than 5 of our states. With a population of nearly 7.2 million, it is the fourth largest metropolitan area in the country. Forecasts from the North Central Texas Council of Governments (NCTCOG) predict employment to grow, in this 12- county standard metropolitan statistical (SMSA) area, by almost 70%over the next 30 years. Population growth over this same 30-year period is also forecasted to be 69%. This regional growth will impact the Westlake community and any further residential growth will affect the demand for enrollment opportunities at the school. Public Education Funding: Funding of public education remains a prominent topic across the state and within the legislature. During the 86t" Legislative Session, changes were made to the funding formulary and many school districts (ISD's) and charters have received additional revenue for on-going student based operational costs. We continue to receive updated direction from the Texas Education Agency (TEA) regarding the calculation of the new formulary and teacher compensation requirements. While the new funding for the 2019 year has been a welcome addition to our revenue stream,the amount that has been reported that we will receive does not return us to the higher per student allocations from the pre-2011 funding levels. The municipal government continues to allocate significant resources to the school to help deal with State funding limitations, maintain high quality educational services, provide for the Academy's facilities, and shared services teams. Additionally, we relay on our affiliate groups to help bridge gaps in our revenue. The Westlake Academy Foundation (WAF) raises significant operating funds for the Academy, without which the school could not offer the rich slate of special programs, professional development, and technology-based applications. We also benefit from the House of Commons (HOC) and Westlake Academy Athletic Club (WAAC) fundraising efforts. The HOC helps to provide additional support to our teachers and staff teams through appreciation-based events, spirit wear, and other parent/teacher type events.And, the WAAC is the affiliate group who works to support our athletic opportunities. Strategic Planning:As we move into the school year,we will be working with both the academic and municipal teams to update our current strategic plan. We have a strong set of vision, mission, and values that help guide our efforts. With the help of a Balanced Scorecard,we will validate or redefine our strategic outcomes based on student demand and opportunities and ensure we are utilizing the correct measures for success and benchmarking. Any new strategic plan proposals will be submitted to the Board for review, consideration, and adoption. Continued Emphasis on Long-Range Financial Planning:The proposed budget also contains an updated Long-Range Financial Forecast which identifies key revenue and expenditure drivers while assessing historical financial trends and their potential impact upon the town's financial stability.The forecast must be monitored and updated during the budget formulation process, as well as reviewed with the Board of Trustees as the budget is prepared. Staff will 9 also continue to produce quarterly financial reports for the Board that monitors and analyzes trends.The report serves as a valuable tool to assist in developing a proactive, rather than reactive, approach to our changing financial trends. Facility Planning for Today and the Future: At the direction of the Board, we began working with a consulting firm to evaluate our current needs for facilities and infrastructure. Staff anticipates that this plan will be finished in the first quarter of the fiscal year and presented to the governing board for review. Immediate needs for lab space have been identified and, based on primary boundary enrollment projections, the facility space is being reviewed to help us plan for educational offerings and physical space needs. III. SHARED SERVICE MODEL The Academy operates under a shared services model whereby the municipal operations team provides human resources, communications, financial, facilities, and administrative support services to the school. General maintenance and replacement of infrastructure and equipment for the school is also expensed to the municipal budget. The shared services model was an integral part of the state charter application process that helped bolster the Town's case for having a community school. This model conserves resources and avoids the duplication of efforts across the municipal and academic functions. DEBT SERVICE-As part of the Academy's unique financial structure the Town of Westlake is responsible for debt service payments associated with the Academy's capital infrastructure. The Municipal Debt Service Fund is used to manage debt service payments, and Academy debt is accounted for in the annual municipal budget. CAPITAL PROJECTS- Note that there are no major capital projects budgeted or planned through FY 19/20, and there are no future Academy capital projects discussed in the Town of Westlake's Capital Improvement Plan. This will be updated should the Board offer direction relative to the review of the existing facility master planning document. MUNICIPAL ALLOCATIONS Amended Proposed $Increase %Increase FY 2018/19 FY 2019/20 (Decrease) (Decrease) Municipal-Transfer to WA Operating Budget $ 209,806 $ 287,661 $ 77,855 37.00% Annual Debt Service(Municipal budget) 1,830,961 1,835,190 4,229 00.23% Major Maintenance and Replacement 377,182 388,407 11,225 02.98% In-direct Operating Costs 837,873 966,144 128,271 15.31% Total Municipal Costs $ 3,255,822 $ 3,477,402 $ 221,580 06.81% 10 IV. FYI 9/20 GENERAL FUND BUDGET This budget encompasses all teaching and extra-/co-curricular operating expenditures as well as State public school funding, local funds, and private donations used to support and enhance the daily operations of Westlake Academy. The SY 19/20 General Fund budget totals$9,717,933,which represents an 8.90% increase from the prior year. It is important to note that 50%of the annual State Facilities Allotment is being held in the Academy's "Undesignated"fund balance and accumulates throughout the years. It is our intent that these funds be held in reserve in the event of an emergency. $34,000 is earmarked in the Academy's fund balance for Athletic uniform and equipment replacement and bus maintenance. The FY 19/20 projections will increase fund balance by $145,431 for an ending unassigned fund balance of$1,365,217 (including the Facilities Allotment funds). This balance represents 52 operating days. As mentioned previously, Westlake Academy's current enrollment increase has been driven by residential developments and housing opportunities within the Town of Westlake. This trend will continue with the addition of Spencer Ranch—an 38 acre planned development with 38 single family residential units. We will also see additional demand when the developments that are in progress continue or are nearing completion—Quail Hollow, Entrada, Granada, Carlyle Court, and Vaquero. With the estimated increase of 41 students from our previous school year, total enrollment will rise to a projected 910 this fall. We will continue to evaluate enrollment options and manage the number of students as we move toward the maximum campus capacity. With this trend of growth in the Academy's resident(primary boundary) student population, a corresponding outcome will likely be that overall lottery enrollment opportunities for secondary boundary students will decline or will be held static. Growth will be monitored and managed until financial resources become available and the Board of Trustees reviews and approves any update to the Facility Master Plan. COMBINED: GENERAL FUND ACADEMIC AND MUNICIPAL SERVICES Amended Proposed $Increase %Increase FY 2018/19 FY 2019/20 (Decrease) (Decrease) Operating Expenditures $ 8,565,326 $ 9,284,841 $ 719,515 8.40% Municipal-Transfer to WA Operating Budget 209,806 219,750 9,944 4.74% Municipal—Transfer to WA WAF Staff - 67,911 67,911 100.00% Total Academic Costs(General Fund Only) 8,775,132 9,572,502 797,370 9.09% Annual Debt Service(Municipal budget) 1,830,961 1,835,190 4,229 0.23% Major Maintenance and Replacement 377,182 388,407 11,225 2.98% In-direct Operating Costs 837,873 966,144 128,271 15.31% Total Municipal Costs 3,046,016 3,189,741 143,725 4.72% TOTAL EXPENDITURE COSTS $ 11,821,148 $ 12,762,243 $ 941,095 7.96% Number of Students 1 869 910 41 4.729/c Total Expenditure Cost per Student $ 13,603 $ 14,024 $ 421 Over the last year, many hours have been spent to further develop our vision of the future, determine the best methodologies that help us accomplish our mission and truly become the school where students can reach "their highest individual potential". While we have many successes to celebrate,we are constantly striving to improve 11 the Academy through multiple avenues, including "getting the right people on the bus", ensuring that we are consistently taking measure of our successes and making course corrections where needed. The Academy is a one-of-a-kind educational opportunity for our community and region—offering the full continuum of the International Baccalaureate programmes. We are proud of our successes and look forward to all the future has to offer. It is through our talented faculty, staff, students, and their supportive families,that help make us unique and ensure we prepare students for their future educational goals. The daily operation of the Academy is made possible through our partnerships with the Town of Westlake,the Westlake Academy Foundation, and our affiliate groups. Respectfully submitted, A&ft, Amanda DeGan Town Manager/Superintendent Westlake Academy 12 SERVICE LEVEL ADJUSTMENTS This budget makes use of Service Level Adjustments (SLA) to track cost changes. There are four types of Service Level Adjustments: (1) increased operating costs to maintain current levels of service, (2) increased operating costs due to expanded levels of service, (3) increased costs due to the development of new services, and (4) cost savings. Cost savings may occur for any number of reasons, but primarily arise due to increased efficiency, service level reductions, or not expending budgeted resources. Note that totals in brackets ( ) represent a decrease in expenditures. These SLA's are based on the "Base Budget" which may reflect a reduction of one- time expenditures from the prior year. For FY 19/20,the academic staff recommends the following adjustments: .................................................................................................................................................................................................................................................................................................................................................................................... 61XX SALARY AND RELATED EXPENDITURES $ 708, 257 .................................:................................................................................................................................................................................................................................................................................................................. Balanced Scorecard Perspective: People,Facilities,&Technology Outcome Objective:Attract,Recruit, Retain,&Develop the Highest Quality Workforce ..................................................................i Board Policy states a desire to maintain the median salary within three percent(3%)of the districts surveyed for market comparison purposes. Salary surveys are conducted annually,and staff is required to estimate market movement using historical trends. This amount reflects an increase due to: • Janitorial services moved from contract services to in-house operations • Part-time Speech Pathologist moved from contract services to in-house specialist • Addition of PYP Interventionist, MYP Counselor and DP/G8 Humanities Teacher • Addition of the state contribution on TRS eligible compensation (HB3 requirement) Staff recommends adjusting the salary scale to within 0.5%of the estimated median, resulting in an average pay increase of 3%for faculty and staff. .................................:........................................................................................................................................................................................................................................................................................ 62XX PROFESSIONAL AND CONTRACTED SERVICES $ (79,252) :.................................:.......................................................................................................................................................................................................................................................................................:........................................................: Balanced Scorecard Perspective:Academic Operations Outcome Objective:Improve the Efficiencies of Operational Systems ....................................................................................................................................................................................................................................................................................... ........................................................i This category includes expenditures related to professional and contracted services rendered to the Academy by firms, individuals, and other organizations. This amount reflects a decrease in: • Janitorial contract services due to reallocating the services in-house • SPED contracted services due to reallocating SLP services in-house • Legal fees for general and SPED services ................................................................................................................................... ................................................................................................................................................................................... 63XX SUPPLIES AND MATERIALS $ (28,397) :.................................:. ..........................................................................................................................................................................................................................................................................:........................................................: Balanced Scorecard Perspective:Academic Operations Outcome Objective:Optimize Student Potential ....................................................................................................................................................................................................................................................................................... . .....................; Supplies and material costs are associated with consumables that are used in the classroom and in the general maintenance of the campus. This amount reflects a decrease in: • IB exam fees will no longer require a student registration fee • Furniture costs and general supplies .......................................................................................................................................................................................................................................................................................................................... 64XX OTHER OPERATING COSTS $ 13 , 825 :.................................:. ..........................................................................................................................................................................................................................................................................:........................................................: Balanced Scorecard Perspective: People,Facilities,&Technology Outcome Objective: Increase the Capacity of Teachers&Staff ....................................................................................................................................................................................................................................................................................... . ..........; Other operating costs are associated with insurance, professional development,travel, membership fees and dues, graduation expenses,and miscellaneous costs. This amount reflects an increase in: • Athletic tournament play and post-season events • Texas Charter School Association membership fees ............................................................................... ....................................................................................................................................................................................................................................... 65XX DEBT SERVICE COSTS $ 182,937 :.................................:.......................................................................................................................................................................................................................................................................................:........................................................: Balanced Scorecard Perspective: People, Facilities&Technology Outcome Objective:Improve Technology,Facilities%Equipment ....................................................................................................................................................................................................................................................................................... .............. .....................; Debt service costs are associated with a 3-year lease for iPads to support the one-to-one device initiative. The FY 19/20 proposed budget of$350,005 includes the payoff of the FY17/18 iPad lease,creating an increased expenditure of$182,937,which will continue through FY 21/22. The additional cost will be partially offset by an estimated $85,000 from selling back the old equipment. TOTAL EXPENDITURE ADJUSTMENTS $ 797,370 13 STRATEGIC PLANNING & MANAGEMENT SYSTEM The Academy has designed a strategic planning and performance management system framework based on the Balanced Scorecard System. The Balanced Scorecard is a strategic planning and management tool that is used extensively in business and industry, government, and nonprofit organizations worldwide to align operational t activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. VWiANCIA4� S.�EWARDSy�A The Board of Trustees and staff utilize this methodology to Z At y implement and review our existing strategic framework, along o= • , with the vision, mission, and values statement of the Academy. 3 ' The balanced scorecard system is designed to communicate our strategythroughout the organization/communitywith our >ya113vad Ito g VortvzlNd stakeholders, align our daily work activities to the overall vision,serve as the framework for prioritizing services, and utilize performance measures to evaluate our successes and opportunities. • In short, it is a tool that businesses use to ensure that their work meets their goals in a measurable way by connecting organizational strategy to the work people do on a day-to-day basis, i.e. "You said...we did..." Custom Scoreckid Houseqr'-'PIS -Vision- -Customer Needs— Enablers&Challenges- PERSPECTIVES 5TRA7EGIC THEME AND RESULTS Citizen,Student TH f .� C'�n •M Eu•a4 ..esijn. S.rnee me -- p,�„ iwi+.aun- Pi.n•in,s pp..m.riw W.aGw. oe..ivvrra .c.a.mr aiwir. RL4SlL aEsu�r B1lLI, &Stakeholder Financial r..rerd ey n an Stewardship w.n vin.w sy.v..rr� �.r.vn. in.mrenr HYF..u.m nw•.�r.e oa.f.nm.e .dW[advrM Academic drr.n•udw! .rre Co*✓•k�q'. ptlt .r aurnpnr .Mrc.[bn n.a..IC.aryr NgNWur1 Operations a.aien ..nncr.e irh agMrJt th.>atr.r .� People,Facilities And Technology fNGAGEDlEADERSHEP—INTERACTIVE COMMUNECATIONS—CORf VALUES 14 STRATEGIC PLANNING & MANAGEMENT SYSTEM Iq The graphic to the left illustrates the Balanced Scorecard approach and the following pages BALANCEDWITH A SCORECARD of this section demonstrate how Westlake CUSTOMER/STAKEHOLDER/MARKET " Academy has aligned with this framework. Strategic Altitude Each element is critical to the success of the municipality and helps us evaluate and communicate our performance. zs,00aft- M[�nH za.000tc. Visions Upon review of the existing strategic initiatives and performance measures,the Board VALUES zs,�oft- provided feedback to the staff and requested PER6PECTIVEs an updated version for review. Staff updated ia000tt- THEMES Bc REsuLTs the framework to include all the related $TRATE[3IC OB.7ECTIYEs performance measures and identified the s,00afc- strategic initiatives that will be goals for the ■ Ir[EASL3RE8 8t TARCiETs entire organization this coming school year. Ground STRATEC#IG Iall TIATIYE- Lerel MISSION The mission statement describes what must Westlake Academy is an IB World School whose mission be done to achieve the adopted vision.The is to provide students with an internationally minded Board of Trustees has adopted the following education of the highest quality, so they are Mission statement for Westlake Academy. well-balanced and respectful life-long learners. Westlake Academy inspires college VISION bound students to achieve their highest The Academy's vision statement outlines what we strive to be. individual potential in a nurturing Upholding such a statement is a task that requires effort on environment that fosters the traits multiple levels.The balanced scorecard system will help ensure found in the IB Learner Profile. the Vision of the Academy remains true in years to come. IB LEARNER PROFILE The International Baccalaureate° (IB) learner profile describes a broad range of human capacities and responsibilities that go beyond Inquirer Caring academic success.The aim of all IB programmes is to develop Knowledgeable Balanced internationally-minded people who, recognizing their common Open-Minded Reflective humanity and shared guardianship of the planet, help to create a Principled Communicators better and more peaceful world. Thinkers Risk-takers 15 STRATEGIC PLANNING & MANAGEMENT SYSTEM VALUES Maximizing Personal Development Driving how the Academy accomplishes its work are our Academic Excellence corporate values.These are the principles we hold Respect for Self and Others important and standards by which the Academy operates. Personal Responsibility These values, as adopted by the Board of Trustees, are Compassion and Understanding designed to guide staff in their day to day work and the Board as it conducts its business. STRATEGIC PERSPECTIVES A Perspective is a view of the Academy operations from a specific vantage point. Four basic perspectives are traditionally used to encompass a Balanced Scorecard organization's activity—people &facilities, operational efficiency, financial stewardship, and customer service.The Academy's business model, which encompasses vision, mission, and strategy, utilizes the four Perspectives as a framework.The four perspectives of the plan, which were customized by the Board, are as follows: F STRATEGIC PERSPECTIVES Citizens, Students, Financial Academic People, Facilities, &Stakeholders Stewardship Operations &Technologies Viewed through the Financial oversight; Focuses on processes that Involves,work culture, innovation, eyes of our customers effective use create value for the leadership,governance,tools and and stakeholders of resources customers and stakeholders technology necessary to provide services STRATEGIC THEMES The Academy won't have their own 'strategic themes' as they are considered a Exemplary department of the Town. Therefore, under the strategic themes for the Town is a goal for"Exemplary Education"that will encompass the direction for the Academy. The Town Council (Board of Trustees) grouped this information along with the major Westlake is an components of our previous strategic plan and ranked the importance of the concepts international per each area of concern. educational Staff then created strategy maps, identified a strategic result, populated the maps leader where with strategic objectives and created an objective commentary document. These each individual's were then evaluated against the direction of the community and sets the framework potential for a comprehensive Tier One map for the municipal program of services. The Town is maximized. Council has worked closely with staff to adopt a management system based on the — Balanced Scorecard framework.This was developed to help the Academy direct its own destiny rather than allow future events to do so.Through sound business principles the Academy can more effectively provide services to their stakeholders, increasing both efficiency and customer satisfaction. Ultimately, it guides the way the Academy does business and helps us determine how we should invest our time and resources. In the budget process,this allows for increased transparency, clarity, and accountability, providing the Academy a framework for demonstrating results.The continued quality and success of this community does not happen without the diligent effort of a committed team of residents, businesses, community leaders, and staff. Years of consistent planning and strategic thinking has brought Westlake where it is today. 16 STRATEGIC PLANNING & MANAGEMENT SYSTEM OBJECTIVES AND PERFORMANCE MEASURES Performance measures hold government departments accountable to their stakeholders, while allowing them to recognize their successes and adjust programs of service that are under performing. Performance measures are determined according to the strategic objectives found on the Strategy Map and help to align the goals for the department. PERSPECTIVES OBJECTIVES PERFORMANCE MEASURES °• Increase the Future Percentage of students who enrolled into college ° Readiness of All Students Percentage of students who were accepted into college ° Length of time students take to earn college degrees CITIZENS, ° Rate of retention for students(start/quit or K thru 12) STUDENTS, • Increase Stakeholder ° Re-authorization attainment for PYP,MYP and DP AND Satisfaction ° Parents Survey Satisfaction Results(Confidence Level) STAKEHOLDERS ° National Rankings(TEA Performance Index) ° Volunteer Hours • Enhance Westlake Academy's ° Percentage of staff with international experience Unique Sense of Place ° Percentage of students involved in club/activity through WA ° Percentage of graduations wo attend/send regrets for diploma ceremony ° Number of external grant applications submitted • Increase External Revenues ° Percentage of external grants received/given ° Sources Percentage of income/gifts from new sources FINANCIAL ° Number of days in Fund Balance STEWARDSHIP ° Number of corporate volunteer experiences • Improve Financial ° Percentage of audits with unmodified opinion Stewardship ° Quarterly financial report data(measure?) ° Awards from GFOA and ASBO and Texas Comptroller ° STAAR,SAT,ACT,AP,DP IB exam results • Optimize Student Potential ° Teacher Appraisals/Reviews ° Student&Staff Annual Survey ° Student to Teacher Ratios • Improve Efficiencies of ° Programs aligned with mission,vision,IBO&state standards(measure?) ACADEMIC Operational Systems ° Per Pupil Expenditure Costs OPERATIONS ° Parent Survey Results(listed above in Stakeholder Satisfaction) • Strengthen our Westlake ° Exit Survey—Leavers; ° Academy Culture Lottery Waiting lists—internal/external ° Annual Feedback—Appraisal System ° Percentage of parents who attend school hosted meetings • Strengthen IB Philosophy and ° Rubric results of PYP Exhibition,MYP Personal Project,&DP Extended Essay Implementation ° Results of IB Programme evaluations ° Time to fill positions/turnover rate(Tier One) • Attract,Recruit,Retain& ° Offer to acceptance ratio(Tier One) Develop the Highest Quality ° PEOPLE, Workforce Number of training opportunities per year ° FACILITIES, Employee satisfaction results AND • Increase the Capacity of ° Teacher&Administration Feedback TECHNOLOGIES Teachers and Staff ° Staff Survey(linked from above objective) • Improve Technology, ° Annual number of devices available to students/staff Facilities&Equipment ° School Dude requests for service/time to completion ° Number of staff members/students supported through IT/per IT staff allocations 17 STRATEGIC PLANNING & MANAGEMENT SYSTEM These performance measures also help determine the quantity and quality of our work, as identified in our plans. We consistently evaluate our work and review our performance quarterly because we firmly believe what gets measured gets done.As we improve our ability to gather and mine data about our work, we will be able to expand our performance measures to the departmental business plans as a gauge of success.The departmental efficiency and effectiveness measures along with the outcome based measures will be grouped with the appropriate strategic objective to give an overall picture of the Academy's performance. As the Academy continues to develop these scorecards and measurement units, data sources, and targets will be refined.Through quarterly performance reviews, trends are also tracked over time through budget documents. STRATEGIC INITIATIVES y Research feasibility to create a facilities master plan Outdoor learning center y Create opportunities for students&teachers to expand their international mindedness by extending learning beyond the classroom walls Implement new student/family orientation program to enculturate student/families into WA's culture of success v Integrate a balance of assessments including high-quality standardized testing along with effective classroom formative and summative assessments y Elevate the WA House System presence on campus through authentic learning experiences and through the Learner Profile y Establish and "Angel Fund" designed to support need-based students for international travel&field trips v Create a new teacher mentoring program designed to support&develop teachers pedagogical expertise Integrate technology into the teaching& learning in a seamless and organic design that promotes the 4 C's (creativity,critical thinking,collaboration,communication)of 21st century learning WESTLAKE ACADEMY'S DESIRED OUTCOMES Five desired outcomes have been identified and linked to the Academy's strategic planning efforts: Westlake Academy's strategic planning structure is the product High Develop inquiring, knowledgeable, caring and of many hours of analysis, review Student disciplined young people who use their unique and discussion. Achievement talents to create a better and more peaceful world through intercultural understanding and Academy staff, under the respect. direction of the Board of Trustees, Strong Parent To involve all stakeholders in building a better • continually gathers and Community Westlake Academy community. information and input from Connections stakeholders Financial To ensure sufficient,well-managed resources • carefully tracks and analyzes Stewardship and to support and advance the mission of student achievement Sustainability Westlake Academy. • considers economic and Student To ensure that all athletics, community service demographic trends Engagement and and extracurricular activities are held to the • formulates long-range goals Extracurricular same standard of excellence as the curricula • plans for future challenges Activities programs to promote well-balanced students. • develops comprehensive Effective Recruit, develop and retain a core faculty and guidelines that ensure student Educators staff with the personal qualities,skills and success. and Staff expertise to work effectively with the IB inquiry-based, student-centered curricula. 18 STRATEGIC PLANNING & MANAGEMENT SYSTEM WESTLAKE ACADEMY-TIER TWO STRATEGY MAP Increase the nhance CItlZerl.1 StUderlt & Future Increase Westlake Stakeholder Readiness of Stakeholder Academy's All Students Satisfaction Unique Sense of Place Financial Increase External Improve Stewardship Revenue Financial p Sources Stewardship Strengthen our Westlake Academy Academic Optimize Improve the Culture Operations Student Efficiencies of p Potential Operational Strengthen IB Systems Philosophy & Implementation People, Attract, Recruit, Increase the Improve Facilities & Retain & Develop Capacity of Technology, the Highest Teachers & Facilities, & echnology Quality Workforce Staff Equipment A Tier Two Strategy Map is cascaded from the Tier One map that is developed by the elected officials. The Board of Trustees worked with staff teams to identify the strategic objectives that are important to our overall success and service provision levels for the stakeholders of the Academy. The Tier One map is drafted at the municipal level of the organization and then cascaded to the educational department of the school. This ensures alignment with our values and vision throughout the Town. PARENT SURVEY RESULTS In addition to monitoring these performance measures, the Academy also values the opinion of its parents. Every two years Westlake undertakes a broad stakeholder survey designed to measure academic performance and to gauge the current and future needs of the students.This survey is an incredibly useful tool within the strategic management system, and it allows Academy services to be tailored based upon parent feedback. Westlake's performance measures are dynamic and undergo on-going review. 19 CHALLENGES As a charter school owned by a municipality, Westlake Academy has some unique challenges. These challenges drive and shape the budget process. The most pressing driver is the task of balancing the projected enrollment of Westlake residents; while maintaining an Academy enrollment level that generated a revenue stream that can sustain the school. It is important to note that the only requirement for admittance into the Academy is based upon student residency. Westlake Academy admits students from two distinct geographic areas called primary and secondary boundaries: • PRIMARY boundary: concurrent with geographic boundary of the Town of Westlake • SECONDARY boundary: adopted by the Board of Trustees and approved by the Texas Education Agency in June 2008 and include identified Independent School Districts who are admitted through a lottery system. The Town of Westlake is currently experiencing high growth and development. Many of these new residents have moved to the Town of Westlake so that their children can attend Westlake Academy without having to experience the variable of the lottery system. As such, there is an expectation that space is available throughout the school year for the children of Westlake residents. GOALS, STRATEGIES, INITIATIVES AND LONG TERM FINANCIAL SUSTAINABILITY Overall, Westlake Academy utilizes the balanced scorecard (BSC) approach to strategic planning and management. It is used to: • Communicate what we are trying to accomplish • Align the day-to-day work that everyone is doing with strategy • Prioritize projects, products and services • Measure and monitor progress towards strategic targets. The BSC approach connects the dots between big picture strategy elements such as mission, vision and values to the Academy's actions and focus priorities. This approach leads to long term sustainability. 20 | O C AKIE ... § 11i4iba e 4 nlevi l"Onal f Ma�jil 22 BUDGET OVERVIEW AND PROCESS Projecting the budget allocations of the Academy is a continual process that responds to the changing needs of the Academy students and staff as well as variations in the fiscal environment such as State funding. The development of the Academy budget for fiscal year 2019/20 began in January, 2019, presented to the Westlake Board of Trustees meeting that was held in June of 2019 for additional input, and adopted in August, 2019. The Academy approach to balancing the combination of fast student growth in a restricted funding environment along with increasing academic standards requires that the budget process be instructionally driven and guided by the Academy's Strategic Plan. During the budget development process,the staff reviewed all revenues and expenditures and focused on aligning the allocation of resources, both personnel and financial,with the accomplishment of established goals and outcome objectives contained in our Strategy Map. The Board of Trustees regularly receives quarterly budget updates, some of which are detailed in the trend analysis and the five-year financial forecast discussed later in this document. Upon receipt of the adopted annual budget, the Board holds budget workshops to review adopted changes, their associated outcomes for the next fiscal year, as well as their impact in a five (S)year financial forecast. Following is a summary of the nine main steps taken in preparation of the adopted budget: 1. Budget Preparation 2. Fund Types and Structure 3. Basis of Accounting and Budgeting 4. The Budget Process 5. Balanced Budget 6. Budget Amendments 7. Budget Adoption 8. Long Term Forecasting 9. Budget Calendar BUDGET PREPARATION As in previous years, efforts have been made to control expenditures while continuing to deliver an excellent level of service to our citizens. Concentrated efforts have been made to produce a document that clearly illustrates the uses of Academy resources in a format that may be utilized as a resource tool by the Board of Trustees, Academy staff, and the citizens of Westlake. Our budget preparation process continues to be refined on an annual basis, operating within clearly defined budget preparation guidelines. Budgeting is an essential element of the financial planning, control and evaluation process of municipal government. The "operating budget" is the Academy's annual financial operating plan. The budget includes all the operating departments of the Academy,the debt service fund, all capital projects funds, and the internal service funds of the Academy. The budget will be prepared with the cooperation of all Academy departments and is submitted to the Superintendent who makes any necessary changes and transmits the document to the Board of Trustees. A budget preparation calendar and timetable will be established and followed in accordance with State law. A"bottom-up"approach is used to solicit input from the staff Leadership Team as to their operations' needs with an emphasis on: • Identifying costs to provide the current level of services. • Identifies additional cost increases needed to maintain the current level of service. • Additional resources necessary to provide new or increased levels of service. • Delineating changes in fund balance levels for each fund. 23 BUDGET OVERVIEW AND PROCESS The following procedures,which are guided by generally accepted budgeting practices, have been established: • The annual operating budget presents appropriations of expenditures and estimates of revenues for all government funds. These revenues include federal, state, and local revenues. • The annual operating budget illustrates expenditures, anticipated revenues, and the estimated impact on reserves. • Budgets for each function are broken down into specific object codes, including payroll and payroll related, professional and contracted services, supplies and materials, other operating costs, and debt service. • Revenue projections are prepared for each revenue source based on an analysis of historical revenue trends and current fiscal conditions. • Goals and objectives have been developed and are incorporated into the evaluation of employees and performance of the organization. • A budget message summarizing local financial conditions and principal budget issues is presented to the governing board along with the annual budget. BUDGET CALENDAR The Budget Process covers the financial cycle starting with budget planning and ending with the audited annual financial report. Timeline Description of Activities October- December Strategic Plan review and development occurs December Westlake Academy Instructional Leadership Team (ILT) begins planning upcoming budget January ILT meets with Westlake Academy affiliates for joint planning Jan - March Review and develop Capital Improvement Plan, Five-Year Projection, and Personnel Cost Estimates April Develop improvement plans for each grade level and department _ Strategic Plan preparation process occurs; preliminary budgets developed Jun 0 Board of Trustees (BOT) Budget Retreat June Current budget review; budget amendments for current year if necessary August BOT consideration and adoption of Westlake Academy Budget for Upcoming School Year October Annual financial audit BALANCED BUDGET As per State Law, current operating revenues will be sufficient to support current operating expenditures. Annually recurring revenue will not be less than annually recurring operating budget expenditures (operating budget minus capital outlay). Debt or bond financing will not be used to finance current expenditures. FUND TYPES AND STRUCTURE The accounts of the Academy are organized and operated on a basis of funds. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds per their intended purpose and is used to aid management in demonstrating compliance with finance related legal and contractual provisions.The minimum number of funds is maintained consistent with legal and managerial requirements. 24 BUDGET OVERVIEW AND PROCESS Academy funds are classified into the following two categories; • FIDUCIARY FUNDS-The funds account for resources that are held in trust for individuals or other governments, in this case monies that are held in a custodial capacity for the benefit of student organizations. • GOVERNMENTAL FUNDS-The funds are used to account for the Academy's general government activities, including the collection and disbursement of specific or legally restricted monies. Governmental funds use the flow of current financial resources measurement focus and the modified accrual basis of accounting. • The General Fund is the Academy's primary operating fund. It accounts for all financial resources of the Academy, except those required to be accounted for in another fund. • Special Revenue Funds account for the revenue sources that are legally restricted to expenditures for specific purposes. BASIS OF BUDGETING AND ACCOUNTING The term basis of budgeting is used to describe when events or transactions are recorded and recognized. In the Modified Accrual Basis- • revenues are recognized in the period when they became available and measurable • expenditures are recognized when the liability is incurred In the Accrual Basis- • revenues are recorded when earned • expenses when the liability is incurred Annual Audited The basis of budgeting Governmental Fund Operating Budget Financial Statements and accounting is shown in the chart General Fund Modified Accrual Modified Accrual to the right: Special Revenue Funds Modified Accrual Modified Accrual Budgets are prepared on the same basis of accounting that is used in financial statements. The basis of budgeting refers to when revenues and expenditures are recognized in the corresponding accounts and reported in financial statements. Governmental fund types, including the general fund, are budgeted using the Current Financial Resources Measurement Focus and the Modified Accrual Basis of Accounting. Westlake Academy's only Fiduciary Fund (the Agency Fund, described below) is not a budgeted fund. Under the modified accrual basis of accounting, revenue is recognized when it becomes susceptible to accrual, i.e., when it becomes measurable and available. Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to pay liabilities of the current period.The Academy considers revenues available if they are collected within 60 days after year-end. Expenditures are recognized when the related fund liability is incurred. • Foundation State Program (FSP)funds are susceptible to accrual. • Miscellaneous revenue items, which are not susceptible to accrual, are recognized as revenue only as they are received in cash. • Entitlements and grants are recognized as revenue at the time of receipt or earlier if the susceptible to accrual criteria are met. • Expenditure driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. 25 BUDGET OVERVIEW AND PROCESS THE BUDGET PROCESS The Academy's fiscal year begins each year on September 1st and ends on August 31st of the following calendar year. Prior to the beginning of the fiscal year,the Superintendent must submit a budget to the Board of Trustees which includes: • A budget message • A consolidated statement of anticipated revenues and expenditures for all funds • Resources for General Fund and Special Revenue Funds in detail • A summary of expenditures by function and object code • Detailed estimates of expenditures shown separately to support expenditures The budget preparation process begins early in the calendar year with the establishment of overall Academy goals, objectives, and analysis of current year operations compared to expenditures. • Budget policies and procedures are reviewed at the same time to reduce errors and omissions. • In May,the Finance Department prepares budget forms and instructions for estimating revenues and expenditures. • Leadership Team members submit baseline expenditures for current service levels and any additional one- time or on-going request they may have for their department. • A round-table meeting is subsequently held with the Superintendent, the finance staff and each department head for review. • After all funding levels are established and agreed upon the budget is presented to the Board of Trustees. • A public hearing on the budget is conducted in accordance with state and local law. • This meeting is held after the Board has reviewed the budget during a workshop. • The Board of Trustees approves a level of expenditure (or appropriation)for each fund to go into effect on September 1st, prior to the expenditure of any Academy funds for that budget year. BUDGET AMENDMENT PROCESS The Superintendent may request that the current year budget be amended at the function level. In this process,the • Superintendent will review the documentation and draft an ordinance to formally amend the current budget. • This ordinance is presented to the Board of Trustees for consideration. L, A •Budget Amendment is requested • Following the consideration of the amendment,the Board 1 •Forwarded to Finance department will vote on the amendment ordinance. • If the amendment is approved,the necessary budget *Finance Director reviews changes are then made. 2. elf approved -forward to Superintendent • All budget amendments will be approved by the Board of Trustees prior to the expenditure of funds more than the •Superintendent reviews previously authorized budgeted amounts within each elf approved-forward to Board of Trustees fund. • Often,these amendments influence the shaping of the current budget as actual trends in revenues and 4. *Board of Trustees review for approval expenditures are realized and accounted for at that time. Program principals and coordinators are responsible for monitoring their respective programme budgets. 5 •Finance enters budget amendment • The Finance Department will monitor all financial operations. The budget team will decide whether to proceed with a budget amendment and, if so,will then present the request to the Board of Trustees. 26 BUDGET OVERVIEW AND PROCESS • If the Board decides a budget amendment is necessary, the amendment is adopted in resolution format and the necessary budgetary changes are then made. • The Final Amended Budget for the Year Ending August 31, 2018 will be submitted at the August 2019 Board meeting. It will reflect all amendments previously approved by the Board of Trustees plus any final amendments. LONG TERM FORECASTING Most annual operating budget documents focus on a single 12-month period where spending and revenue decisions made today will have effects that extend beyond that fiscal year. Because of that,the Academy requires that long-term forecasting be made part of the Annual Operating Budget document. The purpose of the policy is to: • Ensure on-going financial sustainability beyond a single fiscal year or budget cycle • Achieve the Academy's mission and vision • Systematically link the annual budget to a multi-year master financial plan. Should long term forecasts and analysis show that the school system does not have a "positive operating balance" over the multi-year period,the Academy shall bring this to the attention of the Superintendent. A "positive operating balance" means that the ending fund balance meets or exceeds the minimum levels prescribed in the Academy's reserve policies. We anticipate the General Fund will maintain its minimum reserve for each of the four fiscal years beyond the current budget year. Positive Fund Dollars per Fiscal Operating Balance Operating Operating Year Balance (Unassigned) Day a Days FY 18/19 YES $ 1,163,336 $ 24,041 48 FY 19/20 YES 1,365,217 26,226 52 FY 20/21 YES 1,469,836 26,227 56 FY 21/22 YES 1,448,758 26,691 54 FY 22/23 YES 1,283,042 27,208 47 BUDGET ADOPTION Legal requirements for charter school budgets are formulated by the state and the TEA. A Board typically adopts an appropriated budget on a basis consistent with GAAP for the general fund, debt service fund and child nutrition program (which is included in special revenue funds). However,the Academy does not maintain a debt service fund or a child nutrition program;therefore,only the General Fund is required to be adopted. Special Revenue Funds are not adopted by the governing body and are shown for informational purposes only. At a minimum,the Academy is required to present the original and the final amended budgets for revenues and expenditures compared to actual revenues and expenditures for the General Fund. The Board of Trustees conducts the required public meeting and adopts the budget in August prior to beginning the fiscal year which runs from September 1st to August 31st. 27 BUDGET OVERVIEW AND PROCESS Annual A budget is required to be adopted annually for the General Fund (Westlake Academy Budget does not maintain a Debt Service Fund or child nutrition program). The budget is adopted on a basis consistent with generally accepted accounting principles. All appropriations lapse at fiscal year-end. On or before August 31st of each year,the Superintendent submits for review by the Board of Trustees a budget for the upcoming school year. After reviewing the budget and holding public meetings as necessary, the final budget is prepared and adopted. The appropriated budget is prepared by fund and function. The Board may make transfers between functions within a fund, and may amend the total budget following the same procedures required to adopt the original budget. The legal level of budgetary control is at the fund level. Key Public charter schools in the State of Texas do not have taxing authority, nor do they Revenues receive facility funding. Consequently, the Academy receives most General Fund revenues via the State Funded Foundation School Program (FSP), and is disproportionately affected by changes in FSP funding levels set by the Texas legislature. State funding of public education was decreased by the State Legislature in 2001. While it has increased somewhat since then,the allocation has not kept pace with basic cost increases. And, in the Legislature's most recent 2017 session,the per student funding for public education was not increased for the next biennium. Note that the amount of state aid received through the Foundation School Program is a function of the total number of students enrolled at the Academy as well as the additional funding from Career and Technical Education classes. Key Compensation and benefits are the largest operating cost for Westlake Academy, Expenditures comprise most total operating expenditures. The current forecast assumes no further expansions of curriculum or other programme areas that would necessitate additional staff. Other costs including utilities, supplies, and professional services are held at 1% unless additional revenue sources are realized. Fund The Superintendent and Board of Trustees are devoted to safeguarding and improving Balance the financial condition of Westlake Academy. The Academy shall strive to maintain an unassigned General Fund Balance of 45 days of operation, and Fund Balance monies will only be used with Board approval for specific needs. Board policy stipulates that all future increases in expenditures must be offset by new or additional revenues. A full listing of Fund Balance policies can be found at the end of this section. ■ 28 BUDGET DOCUMENT STRUCTURE The goal of the budget document is to provide timely,transparent information concerning the past, current, and projected financial status of the Academy. The budget is a holistic planning document used in concert with our strategic plan to facilitate decisions that support the educational goals and strategic objectives of the Academy. The budget document is but one part of a system designed to link together critical governance and management decision making tools. This system is designed to integrate: • Strategic planning • Five-year financial forecasting, budgeting, and performance measurement linked to priorities, objectives, and outcomes • Reporting to monitor progress in outcome achievement and accountability for results • Aligning human and financial resources to prioritized outcomes and objectives • Long term approach to ensure financial sustainability • Working within Board adopted financial policies for the Academy • Maintaining core services Discussion and review of the information contained in both the strategic plan and the budget document consistently leads to operational and educational improvements that impact the students and parents of Westlake Academy. The development, review, and consideration of the Governmental Fund budgets (the General Fund and Special Revenue Funds)were completed with a detailed and exhaustive review of every revenue and expenditure item within the context of the Academy's Vision, Mission and Values statements, strategic planning efforts, and Board policy. The Board of Trustees provides governance and policy direction, while the Superintendent,finance department and campus and administrative staff develop the budget document for the Board's review. Staff reviews each existing expenditure request and the allocations for the coming school year and asks, "is this the best use of public funds?" The budget document and the year-end comprehensive annual financial audit are the primary vehicles through which the Academy's financial plans are presented. 29 BUDGET DOCUMENT STRUCTURE The budget document is organized into the following sections for submission to ASBO for the Meritorious Budget Award. 1. Executive Introduces the reader to the document as a whole. It highlights important information contained in Summary the budget.Users rely on this section to get an overview of what they can expect to find in the rest of the document. 2. Organizational Provides the context and framework within which the budget is developed and managed. This section includes the Academy's organizational and financial structure as well as the controls that Section direct and regulate the development and administration of the budget. 3. Financial Presents the heart of the Academy's budget document. The adopted budget is presented as a series Section of financial schedules along with past budget figures and future projections. 4. Informational Contains additional information about the Academy,including descriptions of the IB curriculum and programmes,enrollment and employment figures,testing and performance scores,benchmark data, 5. Section academic achievements,and other miscellaneous data. The budget document is organized into the following sections for submission to GFOA for the Distinguished Budget Award. 1. Introduction Includes the Mission,Vison and Value statements,as well as budget award certificates received for the Finance department from ASBO and GFOA. 2. Executive This section is written to the Board of Trustees by the Superintendent and provides a high-level preview of the Academy's budget. It contains information including fund summaries as well short term and long-term trends. The letter helps tie together the core elements which make up the budget and illustrates how those elements further the Academy's goals found within the strategic management system. 3. Budget Structure This section explains the meaning behind the numbers which are presented in this budget document. It gives perspective to the Academy's budgeting process,basis of budgeting and accounting,how the budget is amended and the fund accounting system. 4. Financial Analysis This section gives an analysis of the amounts between the current year adopted and estimated budget,as well as the variance explanations between the current year estimated and next year adopted budget. Several different tables are presented of all fund revenues,expenditures and fund balance amounts. 5. Personnel & Since salaries make up the greatest portion of the expenditure budget,it is logical to apply Payroll forecasting techniques that can provide a true picture of where payroll dollars are headed. The Academy uses forecasting procedures that result in more accurate personnel expenditure projections. 6. Student Data Includes,overviews of the International Baccalaureate programmes regarding Primary years,middle years and diploma years,as well as performance/benchmark data,and parent survey results. 7. Policies Includes the Investment policy,Fiscal and Budgetary policies,Risk Management and future policies to be discussed and implemented. 8. Appendix This section includes the glossary,acronyms,academic calendar,and resolution to adopt the budget 30 FUND BALANCE COMPONENTS In February 2009,the Governmental Accounting Standards Board (GASB) issued GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions.This Statement established five components of fund balance and because circumstances differ among governments, not everyone will report all components. GASB 54 shifts the focus of fund balance reporting from the availability of fund resources for budgeting to "the extent to which the government is bound to honor constraints on the specific purposes for which amounts in the fund can be spent." • Fund Balance Reporting-The Academy shall report governmental fund balances per GASB 54 definitions in the balance sheet as follows: Non-spendable, Restricted, Committed,Assigned, Unassigned • General Fund Unassigned Fund Balance-The Academy shall strive to maintain the General Fund unassigned fund balance at 45 days of operation. • Use of Fund Balance- Fund Balance will be targeted to only be used with Board approval and can only be used for the following: emergencies, non-recurring expenditures, such as technology/FF&E (furniture, fixtures and equipment), or major capital purchases that cannot be accommodated through current year savings. Should such use reduce the balance below the appropriate level set as the objective for that fund, recommendations will be made on how to restore it. • Approval of Commitments-The Board of Trustees shall approve all commitments by formal action. o The action to commit funds must occur prior to fiscal year-end,to report such commitments in the balance sheet of the respective period, even though the amount may be determined after fiscal year-end. o A commitment can only be modified or removed by the same formal action. o The Board of Trustees delegates the responsibility to assign funds to the Superintendent or his/her designee. o The Board of Trustees shall have the authority to assign any number of funds. o Assignments may occur after fiscal year-end. o The Board of Trustees will utilize funds in the following spending order: Restricted, Committed, Assigned, and Unassigned. The following items are Assigned in the Westlake Academy Budget;Technology, Furniture, Fixtures & Equipment Replacement, and Uniforms & Equipment Replacement NONSPENDABLE BALANCE BALANCE BALANCE BALANCE BALANCE •Portion of net •This term will is used •This term is used to •The residual net •The portion of fund resources that cannot to describe net fund describe the portion of resources in excess of balance constrained be spent because of resources subject to fund balance that what is properly by limitations imposed their form and externally enforceable reflects a categorized in one of by government at its because they must be legal restrictions government's the other four highest level and maintained intact. intended use of categories. remains binding unless resources. removed in the same manner. 31 FUND TYPES AND STRUCTURE Westlake Academy, along with other School Districts throughout the State of Texas, record and report all financial transactions using standard set by the Governmental Accounting Standards Board (GASB) and General Accepted Accounting Principles (GAAP). Accordingly,these standards require all School Districts to use individual funds that must be categorized into one of 11 Funds Types. ALL FUND TYPES Governmental Proprietrary Fiduciary Funds Funds Funds General Fund Internal Service Funds Pension Trust Funds 3Funds N/A N/F� Special Revenue Funds Investment Trust Funds 6 Enterprise Funds N/A Funds N/A Debt Service Fund Private Trust Funds N/A N/A Capital Project Funds Agency Funds N/A Ifund Permanent Funds N/A GENERAL FUND The General Fund is comprised of three subordinate funds: General, Athletic Activities, and Transportation. This fund accounts for most the operational activities required to maintain the Academy's facilities and pay its employees and supported by State and local revenues. GOVERNMENTAL • Fund 199 General Fund-This classification must be used for funds in FUNDS TYPES which the local governing board designates. The local governing board has wide discretion in their use as provide by law. This fund usually includes transactions because of revenues from local sources and State Foundation School Program Sources. Any locally defined code that is used General Fund at the local option is to be converted to Fund 199 for PEIMS reporting. • Fund 198 Athletic Activities-This locally defined fund code is used to 199 General Fund account for expenditures for athletics that normally involve competition between schools (and frequently involve offsetting gate receipts or fees 198Athletic Fund such as football, baseball,volleyball,track, tennis and golf). This fund is converted to Fund 199 for PENS reporting. F197T,,nsportation Fund • Fund 197 Transportation/Parking-This locally defined fund code is used to account for revenues and expenditures related to transportation for students.This fund is converted to Fund 199 for PENS reporting. 32 FUND TYPES AND STRUCTURE SPECIAL REVENUE FUNDS Special Revenue Funds account for local, state GOVERNMENTAL and federally financed programs or expenditures legally restricted for specified FUNDS TYPES purposes or where unused balances are returned to the grantor at the close of a specified project period. These funds are not Special Revenue Funds adopted by the governing body and shown here for informational purposes only. Fund 224 Fund 410 IDEA-B Formula Material Allotment • Fund 224 IDEA-B Formula (Federally funded) - Fund is used, on a project basis, for funds granted to operate Fund 461 Fund 484 educational programs for children with Campus Activities Local Grants disabilities. • Fund 410 Material Allotment (State Fund 497 Fund 498 funded) - Funds to purchase the WAF Student Travel International Mindedness instructional materials that will be used to support the Texas Essential Knowledge and Skills (TEKS) • Fund 461 Campus Activities (Locally funded) - Fund is to be used to account for transactions related to a principal's activity fund if the monies generated are not subject to recall by the school district's Board of Trustees into the general fund. These funds provide after-school activities and local/international travel at Westlake Academy. • Fund 484 Local Grants (Locally funded)—These funds represent grants from Westlake Academy Foundation and the House of Commons for specific purposes. • Fund 497 Westlake Academy Foundation Financial Assistance(Locally funded) -This grant from the Westlake Academy Foundation provides financial assistance for student activities. • Fund 498 International Mindedness Educator Symposium (Locally funded)—Fund will be used for the annual symposium hosted by Westlake Academy focusing on global collaboration. FIDUCIARY FUND TYPES Westlake Academy has a single Fiduciary-type fund, called the Agency Fund, which accounts for resources held in a custodial capacity for the benefit of student organizations. The Agency Fund is not a budgeted fund. 33 ACCOUNT CODING STRUCTURE Financial transactions within funds are organized minimum requirements of the State Board of and classified through the account code system. Education, subject to review and comment by the Section 44.007 of the Texas Education Code (Code state auditor.The annual audit must include the or TEC) requires that a standard school district performance of certain audit procedures for fiscal accounting system be adopted by each reviewing the accuracy of the fiscal information school district.The system must meet at least the provided by the district through the Public minimum requirements prescribed by the State Education Information Management System Board of Education and be subject to review and (PEIMS). comment by the state auditor. The audit procedures are to be adequate to detect Additionally,the accounting system must conform material errors in the school district's fiscal data to Generally Accepted Accounting Principles reported through the PEIMS system for the fiscal (GAAP).This section further requires that a report period under audit. A major purpose of the be provided at the time that the school district following accounting code structure is to establish budget is filed, showing financial information the standard school district fiscal accounting sufficient to enable the state board of education to system required by law. monitor the funding process and to determine educational system costs by school district, campus Although certain codes within the overview may be and program. used at local option, the sequence of the codes within the structure, and the funds and chart of The Texas Education Code, Section 44.008, accounts, are to be uniformly used by all school requires each school district to have an annual districts in accordance with Generally Accepted independent audit conducted that meets the Accounting Principles (GAAP). ACCOUNT CODE STRUCTURE Sub Organization Program Local unPE unction Object Code Object Code Year Intent Option Code Code XXXX Code XXX Code Code Code XXX XX XX X XX XXX (1xxx- (11-99) 1X—Assets (XX) (001-999) (0-9) (11-99) (XXX) 8xxx) 2X—Liabilities Account 3X—Fund Equity Groups 4X—Clearing Accts (9xx) 5X—Revenues 6X—Expenditures 7X—Other Resources 8X—Other Uses 34 REVENUE CLASSIFICATIONS LOCAL FUNDING REVENUES — ' REND _ Local funding consists of the following major sources from the Town of Ru ii Westlake and the Westlake Academy Foundation (WAF). ISI4 � rrtn � ` 5C1P1 • The Town of Westlake provides administrative, human resources, I ! facilities, and financial services for the Academy and is responsible for all I sRica I t debt service payments relating to Academy facilities and infrastructure. AtMKI FilH --- SERVICE �m • The Westlake Academy Foundation is an independent, non-profit organization that raises funds through donations and various fundraising efforts. The WAF conducts several annual fundraising activities, including the Blacksmith Campaign, an annual fund drive that was started to bridge the funding gap between what charter schools receive in state allocations in comparison to local ISDs. It mainly directs fund raising efforts towards the parents of Academy students and tries to leverage these donations with the employers who have matching programs for individuals that contribute time or money to non-profits.The Blacksmith Campaign is held each year in the month of October and each family is asked to contribute $2,500 per student to help cover the gap between the state public education funding and what the Academy spends on each student. FEDERAL FUNDING • Federal funding is received through grants that support special education. STATE FUNDING • State funding, through the Foundation School Program (FSP), is the Academy's largest revenue source. Funding for public F education has increased slightly since the implementation of HB 3 but along with the increase came several state mandated expenditures, i.e. Statutory Minimum 'r- Compensation. G4 35 REVENUES ALLOCATED BY STAFF TYPE & FUNCTION REVENUES ALLOCATED BY STAFF TYPE Allocation process includes all available funding$10,062,774 FY 19/20 Employee Adopted Percent Revenue Budgetary allocations are an integral Type Staffing of Total Allocation element of financial planning for Principals 4.75 4.70% $ 472,641 learning organizations. Coordinators 4.58 4.53% 455,725 As such,they indicate the level of resources Primary 27.50 27.19% 2,736,342 an organization is committing to a Secondary 37.55 37.13% 3,736,351 department or program. Support 14.00 13.84% 1,393,047 Specialist 5.25 5.19% 522,393 Westlake Academy and the Town of Foundation 1.50 1.48% 149,255 Westlake under their shared services model Facilities 4.00 3.96% 398,013 work in harmony to determine resource Technology 2.00 1.98% 199,007 and revenue allocations. TOTAL 101.13 100.00% $ 10,062,774 REVENUES ALLOCATED BY FUNCTION Allocation process includes all available funding$10,208,205 FY 19/20 Adopted Percent Revenue The leadership of the Academy Function Description Staffing Of Total Allocation works directly with the Directors 11 Instructional 72.47 71.66% $ 7,315,224 of the finance and human 12 Media/Library 1.33 1.32% 134,252 resource departments to 21 Instructional Leadership 2.00 1.98% 201,883 determine staffing needs as 23 Campus Leadership 11.58 11.45% 1,168,902 well as program needs. 31 Guidance/Counselors 4.50 4.45% 454,236 33 Health Service/Nurses 1.00 0.99% 100,941 Within the scope of the 36 Extra-Curricular 0.50 0.49% 50,471 Academy's strategic plan, 41 General Administration 0.25 0.25% 25,235 staffing and program 51 Facilities Maintenance 4.00 3.96% 403,766 allocations are determined. 53 Information Technology 2.00 1.98% 201,883 61 W.A. Foundation 1.50 1.48% 1511412 TOTAL 101.13 100.00% $10,208,205 36 EXPENDITURE CLASSICATIONS OBJECT CODE GENERAL DESCRIPTIONS The object number is a 4-digit code that describes the type of revenue or expenditure incurred and is comprised of the fifteenth through eighteenth digits in the code structure. For example: • 61XX Payroll and Payroll Related • 62XX Professional &Contracted Services • 63XX Supplies and Materials • 64XX Other Operating Costs • 65XX Debt Services • 66XX Capital km r•ft f ar.�pl[IVIdEaGfIYE� its E,.:�� �i��ldChl�diC�__� FUNCTION CODES — GENERAL DESCRIPTIONS. �, k Y riwidflC1C11 a�saIJq SSf ODIrI Halide alr ��a A function code represents a general operational area at the pv plpnnpp Academy and groups together related activities. The assignment ���10VARIM1610IB��l11n and use of function numbers is based on the financial � a�rI� fGf10[t _ kmMR accountability standards established by the Texas Education Agency in accordance with the Texas Administrative Code. The function code is a 2-digit number that follows the 3-digit fund code in the accounting number scheme. FUNCTION CODE FUNCTION CODE DECRIPTION 11 Instruction 12 Instructional Resources& Media Sources 13 Curriculum Development& Instruction/Staff Development 21 Instructional Leadership 23 School Leadership (Principal) 31 Guidance, Counseling& Evaluation Services 32 Social Work Services 33 Health Services 34 Student (Pupil)Transportation 35 Food Services 36 Co-curricular/Extracurricular Activities 41 General Administration (Superintendent/Board) 51 Plant Maintenance and Operations 52 Security and Monitoring Services 53 Data Processing Services Community Services Debt Service 81 Facilities Acquisition and Construction 37 EXPENDITURE CLASSICATIONS 10 INSTRUCTION AND INSTRUCTIONAL RELATED SERVICES • Function 11-Instruction-This function is used for activities that deal directly with the interaction between teachers and students.This function includes expenditures for direct classroom instruction and other activities that deliver, enhance, or direct the delivery of learning situations to students. Expenditures for the delivery of instruction in regular program basic skills, bilingual and ESL programs, compensatory, remedial or tutorial programs,gifted and talented education programs, and vocational education programs are classified in function 11. For example, function 11 includes classroom teachers,teacher assistants, and graders, but does not include curriculum development (function 13) or principals(function 23). • Function 12-Instructional Resources and Media Services-This function is used for expenditures that are directly and exclusively used for resource centers, F4,aw f i_k r a establishing and maintaining libraries,and other major facilities dealing with cJ educational resources and media. For example,function 12 includes librarians, but does not include textbooks(function 11)or reference books in the classroom (also function 11). • Function 13-Curriculum Development and Instructional Staff Development-This function is used for expenditures that are directly and exclusively used to aid instructional staff in planning, developing, and evaluating the process of providing learning experiences for students.This function also includes expenditures related to research and development activities that investigate, experiment and/or follow-through with the development of new or modified instructional methods,techniques, procedures, services, etc. For example, this function includes staff that research and develop, innovative new or modified instruction and staff who prepare in-service training for instructional staff, but does not include salaries of instructional staff when attending in-service training (function 11 or 12). 20 INSTRUCTIONAL AND SCHOOL LEADERSHIP • Function 21- Instructional Leadership-This function encompasses those Changes planning district-wide activities which have as their purpose managing, directing,and a ? new' supervising the general and specific instructional programs and activities. For o bn -Vision example,function 21 includes instructional supervisors but does not include `°"1I7,uni�aLi"ns p p r�xp��su:-� arganiealiiun principals(function 23). LEADERSHIP conviction _ Will �1�11-Ci lnl- - yieolirypy • Function 23-School Leadership-This function includes expenses for directing, = = ndiverse managing,and supervising a school. It includes salaries and supplies for the principal, assistant principal, and other administrative and clerical staff, including attendance clerks. 30 SUPPORT SERVICES—STUDENT • Function 31-Guidance,Counseling,and Evaluation Service-This function includes expenses for testing and assessing student abilities,aptitudes,and interests with respect to career and educational goals and opportunities. It includes psychological services,testing,and counseling. 38 EXPENDITURE CLASSICATIONS • Function 32-Social Work Services-This function includes expenditures which directly and exclusively promote and improve school attendance. Examples include social workers, non-instructional home visitors, home visitor aides,and truant officers. • Function 33- Health Services-This function embraces the area of responsibility y providing health services which are not a part of direct instruction. It includes medical,dental,and nursing services. • Function 34-Student Transportation -Th is function includes the cost of providing management and operational services for transporting students to and from school. Function 34 includes transportation supervisors and 00 scrrrssrs bus drivers, but does not include field trips (function 11) or student organization trips (function 36). • Function 35- Food Services-This function includes the management of the food service program at the schools and the serving of meals, lunches, or snacks in connection with school activities. Function 35 includes cooks and food purchases, but does not include concession stands(function 36). • Function 36-Co-curricular/Extracurricular Activities-This function incorporates those activities which are student and curricular related, but which are not necessary to the regular instructional services. Examples of co-curricular activities are scholastic competition, speech, debate, and band. Examples of extracurricular activities are football, baseball, etc. and the related activities (drill team, cheerleading) that exist because of athletics. Function 36 includes athletic salary supplements paid exclusively for coaching, directing, or sponsoring extracurricular athletics, but does not include salaries for teaching physical education (function 11). 40 SUPPORT SERVICES-ADMINISTRATIVE • Function 41-General Administration-This function includes expenses incurred for the overall administrative responsibilities of the District. It includes expenses for the school board, superintendent's office, personnel services, and financial services. 50 SUPPORT SERVICES- NON STUDENT BASED • Function 51- Plant Maintenance-This function deals with expenditures made to keep buildings, grounds, and equipment safe for use and in efficient working SCHOOL condition.This function also includes expenditures associated with warehousing services. Examples include janitors,facility insurance premiums, utilities, and warehouse personnel. • Function 52-Security and Monitoring Services-This function is used for expenditures that are for activities to keep student and staff surroundings safe, whether in transit to or from school, on a campus, or participating in school-sponsored events at another location. 39 EXPENDITURE CLASSICATIONS • Function 53- Data Processing Services-This function is for non-instructional data processing services which include computer facility management, computer processing, systems development, analysis, and design. Personal computers that are stand alone are to be charged to the appropriate function. Peripherals including terminals and printers are also to be charged to the appropriate function. 60 ANCILLARY SERVICES • Function 61-Community Services-This function encompasses all other activities of the school district, which are designed to provide a service or benefit to the community or a portion of the community. Examples would include recreation programs, natatorium, and parenting programs. 70 DEBT SERVICE • Function 71- Debt Service-This function includes expenditures for bond and lease purchase principal, and all types of interest paid. 80 CAPITAL OUTLAY • Function 81-Capital Acquisition &Construction-This function includes , l expenditures that are acquisitions, construction, or major renovation of Academy facilities. ' i � I'll QW, n W - II 1 40 EXPENDITURES SHARED SERVICE MODEL The Academy operates under a shared service model with the Town of Westlake, whereby the municipal operations team provides Human Resources, Financial, Facilities, and Administrative support services to the Academy. General maintenance and replacement of ; infrastructure and equipment for the school is also expensed to the municipal budget.These service costs were previously booked to the Westlake Academy . x operating budget, but were removed from the operating budget in the FY 12/13 school year. he following operating costs are booked to the Town of Westlake's General Fund and Debt Service Fund. • Municipal-Transfer to WA Operating Budget • Annual Debt Service Payments • General Major Maintenance and Replacement • In-direct Operating Costs (Payroll and Related) Amended Proposed $Increase %Increase FY 2018/19 FY 2019/20 (Decrease) (Decrease) Municipal-Transfer to WA Operating Budget $ 209,806 $ 287,661 $ 77,855 37.11% Annual Debt Service(Municipal budget) 1,830,961 1,835,190 4,229 0.23% Major Maintenance and Replacement 377,182 388,407 11,225 02.98% In-direct Operating Costs 837,873 966,144 128,271 15.31% Total Municipal Costs $ 3,255,822 $ 3,477,402 $ 221,580 6.80% The support services for the Academy that generate indirect costs paid by the Town of Westlake are: • Finance and Accounting Services • Facility Maintenance Services • Human Resources • Information Technology • General Managerial Oversight (Superintendent) • Town Secretary records maintenance and election administration • Board Support Services including policy advisement and strategic planning As part of the Academy's unique financial structure the Town of Westlake is responsible for debt service payments associated with the Academy's capital infrastructure. The Municipal Debt Service Fund is used to manage debt service payments, and Academy debt is accounted for in the annual municipal budget. DEBT SERVICE-As part of the Academy's unique financial structure the Town of Westlake is responsible for debt service payments associated with the Academy's capital infrastructure. The Municipal Debt Service Fund is used to manage debt service payments, and Academy debt is accounted for in the annual municipal budget. CAPITAL PROJECTS- Note that there are no major capital projects budgeted or planned through FY 18/19, and there are no future Academy capital projects discussed in the Town of Westlake's Capital Improvement Plan. However, retaining professional expertise to update the Academy's master facility plan will be discussed with the Council in the near future. 41 RELATIONSHIP BETWEEN FUNDS AND FUNCTIONS 0 � •Y U o U ai o E ' a t O UCL O h0 U (6 i a, v v x Y U O N U > aaj 3 N O w �^ c � OA •i aJ J i 0 v �' \ c c O c to c a! 271 a) c c E c a 66 3 -0 c aa) U 0 0 0 a) a, a, u ¢ a� .71 J U V7 c 2 =3 a) 7 7 Y C�C F, Y Y Y -O (a -0 U .Y � C V Y C -0D FUND NAME 11 12 13 21 23 31 33 34 36 41 51 52 53 61 71 GENERAL FUND Fund 199 ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ General Fund Fund 198 ✓ ✓ Athletics Fund 197 ✓ ✓ ✓ Transportation SPECIAL REVENUE FUNDS FUND NAME 11 12 13 21 23 31 33 34 36 41 51 52 53 61 71 Fund 224 ✓ IDEA-B Formula Fund 410 ✓ Material Allotment Fund 461 ✓ ✓ ✓ Campus Activities Fund 484 ✓ ✓ ✓ Local Grants Fund 497 Student Travel ✓ Award Fund 498 ✓ ✓ ✓ I.M.E.S. 42 FINANCIAL REPORTING ENTITY LEGAL AUTONOMY The Board of Trustees consists of six trustees (five trustees and the Board President) that also serve as the Town Council for the Town of Westlake,the entity that owns and operates the Academy. The Academy prepares its basic financial statements in conformity with generally accepted accounting principles promulgated by the Government Accounting Standards Board (the "GASB") and other authoritative sources identified in Statement on Auditing Standards No. 69 of the American Institute of Certified Public Accountants, and it complies with the requirements of the appropriate version of the Texas Education Agency(TEA) Financial Accountability System Resource Guide (the "Resource Guide") and the requirements of contracts and grants of agencies from which it receives funds. The Board has the authority to make decisions, appoint administrators and managers, and significantly influence operations. It also has the primary accountability for fiscal matters. Therefore,the Academy is a financial reporting entity as defined by the GASB in its Statement No. 14, "The Financial Reporting Entity." The Academy's basic financial statements include a separate entity that is controlled by or dependent on the Academy. The determination to include separate entities is based on the criteria of GASB Statement No. 24, "The Financial Reporting Entity" as amended by GASB Statement No. 39, "Determining Whether Certain Organizations are Component Units." GASB defines the reporting entity as the primary government and those component units for which the primary government is financially accountable. To be financially accountable, a voting majority of the component unit's ruling body must be appointed by the primary government, and either • the primary government can impose its will, or • the primary government may potentially benefit financially or be financially responsible for the component unit. The Westlake Academy Foundation (the "Foundation") is a 501(c)3 nonprofit organization which was established exclusively for the purposes of supporting the Academy. This includes fundraising for and contributing raised funds to the Academy. The Foundation is discretely presented in the Westlake Academy financial statements and reported in a separate column to emphasize that it is legally separate from the Academy. Separate audited financial statements of the Foundation are prepared annually. 43 11i4iba e 4 nlevi l"Onal f Ma�jil 44 y ti k�ly � '�' i'.i•�v=v 11i4iba e 4 nlevi l"Onal f Ma�jil 46 FINANCIAL FORECAST ASSUMPTIONS Student Enrollment Assumptions: • Increase of 41 students in FY 2019/20 and 5 additional students in subsequent years. • Average Daily Attendance rate of 97%. Revenues: • 100%use of Westlake Academy Foundation(WAF) Vt.400 Annual Program revenues(proposed $1.3 million). - • Municipal contribution has been reduced by 50%of H� the funds received from the state for Facilities �E r allotment. These funds will be transferred into the Municipal Maintenance and Replacement Fund to be used for the Academy facilities. • Future revenue projections are based upon the updated HB3 approved during the most recent legislature E IONS SWERS state funding formula and current local donation - - levels. Charter schools do not have taxing authority, making them reliant upon state and local funding sources. As an open enrollment charter school, all State funding is determined each legislative session and channeled to Westlake Academy through the Foundation School Program (FSP). Due to the uncertainty of state funding,the Academy adopted a new policy in FY 14/15 which only allows increases in expenditures if there is an offsetting increase in revenues. Charter schools are funded based on their weighted average daily attendance (WADA). A school's WADA is determined not only by the number of students attending, but by their participation in special programs,such as special education and career and technology • Most Academy General Fund revenue is derived from the Foundation School Program. • Secondary sources include the Westlake Academy Foundation and the Blacksmith Campaign. • Growth in local revenues has been significant and is a result of strong parent and community support of the Academy. Expenditures: • Personnel costs are estimated to increase approximately 3.0%for FY 2019/20 and 1.0%annually in subsequent years. • Professional services, supplies and other operating expenditures are increased by 1%in outer years but will only increase if revenues increase to offset additional expenditures. 47 Westlake Academy-General Fund Five Year Financial Forecast Fiscal Years 2019/2020 through 2023/2024 Audited Adopted Amended Proposed Amount Percent Projected Projected Projected Projected FY 17/18 FY 18/19 FY 18/19 FY 19/20 Inc/(Dec) Inc/(Dec) FY 20/21 FY 21/22 FY 22/23 FY 23/24 1 Transportation $ 17,979 $ 10,500 $ 10,500 $ 10,500 $ - 0.00% $ 10,500 $ 10,500 $ 10,500 $ 10,500 2 Parking 14,911 15,000 15,000 15,000 - 0.00% 15,000 15,000 15,000 15,000 3 Athletic Activities 82,602 94,200 94,200 88,100 (6,100) -6.48% 88,100 88,100 88,100 88,100 4 Interest Earned 9,878 9,000 20,000 20,000 - 0.00% 20,000 20,000 20,000 20,000 5 WAF Blacksmith Donation 1,012,367 1,000,000 1,040,000 1,030,000 (10,000) -0.96% 1,030,000 1,030,000 1,030,000 1,030,000 6 Salary Reimbursement for WAF staff 67,313 69,834 69,834 67,911 (1,923) -2.75% 69,269 70,655 72,068 73,509 7 Town Contribution-Westlake Reserve 300,000 300,000 209,806 219,750 9,944 4.74% 219,750 219,750 219,750 219,750 8 Town Contribution 15,000 15,000 15,000 - (15,000) -100.00% - - - - 9 Other Local Revenue(sub,tech,prnt,misc) 44,133 47,300 47,300 47,300 - 0.00% 47,300 47,300 47,300 47,300 10 Technology Equipment Sale Proceeds - - - 85,000 85,000 100.00% - - - - 11 Food Services 7,000 7,000 7,000 7,000 - 0.00% 7,000 7,000 7,000 7,000 12 Total Local Revenues 1,571,182 1,567,834 1,528,640 1,590,561 61,921 4.05% 1,506,919 1,508,305 1,509,718 1,511,159 13 Percent of total revenues 18% 18% 17% 16% 8% 16% 16% 15% 15% 14 TEA-Available School Funds 186,422 365,166 401,000 212,000 (189,000) -47.13% 213,060 214,125 215,196 216,272 15 TEA-Foundation School Funds(Inc.accrual) 6,018,152 5,741,074 6,107,000 6,774,800 667,800 10.93% 6,808,674 6,842,717 6,876,931 6,911,316 16 CTE Funding(addt'ITEA-FSP Funds) 424,933 508,316 239,000 495,800 256,800 107.45% 498,279 500,770 503,274 505,791 17 Facilities Allotment(addt'I TEA-FSP Funds) - 184,856 180,300 160,500 (19,800) -10.98% 160,500 160,500 160,500 160,500 18 TEA-Advanced Placement Training 2,850 3,000 3,000 3,000 - 0.00% 3,000 3,000 3,000 3,000 19 TRS On-behalf/Medicare Part B 444,663 477,583 464,373 481,272 16,899 3.649/ 486,085 490,946 495,855 500,814 20 Total State Revenues 7,077,020 7,279,995 7,394,673 8,127,372 732,699 9.91% 8,169,598 8,212,059 8,254,756 8,297,692 21 Percent of total revenues 82% 82% 83% 84% 92% 84% 84% 85% 85% 22 TOTAL REVENUES $ 8,648,202 $ 8,847,829 $ 8,923,313 $ 9,717,933 $ 794,620 8.90% $ 9,676,517 $ 9,720,363 $ 9,764,474 $ 9,808,851 23 EXPENDITURES by FUNCTION 24 Est PR changes&salary accrual(August) 25 Function 11-Instructional $ 4,924,708 $ 5,008,974 $ 4,897,434 $ 5,273,571 $ 376,137 7.68% 26 Function 12-Resources&Media 86,094 90,935 89,675 96,371 6,696 7.47% 27 Function 13-Curriculum&Staff Development 83,902 84,545 83,545 83,545 - 0.00% 28 Function 21-Instructional Leadership 153,295 170,216 161,610 182,919 21,309 13.19% 29 Function 23-School Leadership 888,589 924,198 953,591 1,030,836 77,245 8.10% 30 Function 31-Guidance&Counseling 311,250 321,467 489,522 568,295 78,773 16.09% 31 Function 33-Health Services 72,233 72,919 71,630 75,686 4,056 5.66% 32 Function 36-Co/Extracurricular Activities 215,236 219,169 277,024 279,323 2,299 0.83% 33 Function 41-Administrative 324,975 308,772 224,928 253,649 28,721 12.77% 34 Function 51-Maintenance&Operations 931,623 947,445 965,759 970,081 4,322 0.45% 35 Function 52-Security&Monitoring - 40,000 40,000 37,000 (3,000) -7.50% 36 Function 53-Data Processing 192,034 216,103 219,198 228,360 9,162 4.18% 37 Function 61-Community Services 130,862 138,322 134,148 142,862 8,714 6.50% 38 Function 71-Debt Service 167,067 167,068 167,068 350,005 182,937 109.50% 39 TOTAL EXPENDITURES BY FUNCTION $ 8,481,868 $ 8,710,132 $ 8,775,132 $ 9,572,502 $ 797,370 9.09% 40 Object Code 61XX-Salaries $ 6,449,360 $ 6,585,303 $ 6,704,289 $ 7,412,546 $ 708,257 10.56% $ 7,560,797 $ 7,712,013 $ 7,866,253 $ 8,023,578 41 Object Code 62XX-Contracted Services 1,093,302 1,056,667 996,141 916,889 (79,252) -7.96% 926,058 935,318 944,672 954,118 42 Object Code 63XX-Supplies&Materials 286,372 425,124 422,626 394,229 (28,397) -6.72% 398,171 402,153 406,175 410,236 43 Object Code 64XX-Other Operating Costs 485,766 475,970 485,008 498,833 13,825 2.85% 503,821 508,860 513,948 519,088 44 Object Code 65XX-Debt Service 167,067 167,068 167,068 350,005 182,937 109.50% 184,000 184,000 200,000 2D0,000 45 TOTAL EXPENDITURES BY OBJECT $ 8,481,868 $ 8,710,132 $ 8,775,132 $ 9,572,502 $ 797,370 9.09% $ 9,572,847 $ 9,742,344 $ 9,931,047 $ 10,107,020 46 Other Resources-Local $ - $ - $ - $ - $ - 0.00% $ - $ - $ - $ - 47 Transfer in-Athletics/Transportation 85,000 76,000 90,000 90,000 - 0.00% 90,000 90,000 90,000 90,000 48 Other Uses-Local (85,000) (76,000) (90,000) (90,000) - 0.00% (90,000) (90,000) (90,000) (90,000) 49 NET OTHER RESOURCES(USES) - - - - - 0.00% - - - - 50 EXCESS REVENUES OVER(UNDER)EXP $ 166,334 $ 137,697 $ 148,181 $ 145,431 $ (2,750) -1.86% $ 103,670 $ (21,981) $ (166,573) $ (298,170) 51 FUND BALANCE BEGINNING 939,271 1,105,605 1,105,605 1,253,786 148,181 13.40% 1,399,217 1,502,886 1,480,906 1,314,332 52 FUND BALANCE ENDING 1,105,605 1,243,302 1,253,786 1,399,217 145,431 11.60% 1,502,886 1,480,906 1,314,332 1,016,163 53 Assigned-Bus Maintenance 24,090 19,000 19,000 19,000 - 0.00% 18,050 17,148 16,290 15,476 54 Assigned-Technology/FFE - - 56,450 - (56,450) -100.00% - - - - 55 Assigned-Uniform/Equip replacement 15,000 15,000 15,000 15,000 - 0.00% 15,000 15,000 15,000 15,000 56 FUND BALANCE ENDING(Unassigned) $ 1,066,515 $ 1,209,302 $ 1,163,336 $ 1,365,217 $ 1,469,836 $ 1,448,758 $ 1,283,042 $ 985,687 57 Number of Operating Days(including FA) 46 51 48 52 - - 56 54 47 6 58 50%Facilities Allotment 90.150 170,400 80,250 250.650 330,900 411,150 491,400 59 FUND BALANCE ENDING(Unassigned) $ 1,066,515 $ 1,209,302 $ 1,073,186 $ 1,194,817 $ 121,631 11.33% $ 1,219,186 $ 1,117,858 $ 871,892 $ 494,287 60 Number of Operating Days(365) 46 51 45 46 46 ML 32 18 61 Dollars per Operating Day $ 23,238 $ 23,863 $ 24,041 $ 26,226 2,185 9.09% $ 26,227 $ 26,691 $ 27,208 $ 27,690 62 Total Students Enrolled 856 876 869 910 41 4.72% 915 920 925 930 63 TEA Funding per Student $ 7,745 $ 7,762 $ 7,972 $ 8,399 427 5.36% $ 8,219 $ 8,215 $ 8,211 $ 8,208 64 Operating Cost per Student(Academic Only) $ 9,909 $ 9,943 $ 10,098 $ 10,519 421 4.17% $ 10,462 $ 10,590 $ 10,736 $ 10,868 65 Teachers 66.26 66.25 66.17 70.30 4.13 6.24% 70.50 70.50 70.50 70.50 66 Student/Teacher Ratio 12.92 13.22 13.13 12.9 (0.2) -1.43% 12.98 13.05 13.12 13.19 67 ALL Faculty&Staff 93.76 94.75 94.67 101.13 6.46 6.829/ 101.13 101.13 101.13 101.13 48 GOVERNMENTAL FUNDS FINANCIAL SUMMARY The following schedules present a comparison of revenues and expenditures for all Governmental Funds in the Academy's Budget.As a reminder,Governmental Funds include the General Fund and Special Revenue Funds. BUDGET SUMMARY Amended Proposed $Increase %Increase FY 18/19 FY 19/20 (Decrease) (Decrease) Total Revenues $ 9,323,655 $ 10,208,205 $ 884,550 9.49% Total Expenditures 9,175,474 10,062,774 887,300 9.67% Net Other Sources/Uses - - - 0.00% Excess Revenues Over(under) Expenditures 148,181 145,431 (2,750) -1.86% Fund Balance Beginning 1,121,198 1,121,198 - 0.00% Fund Balance Ending $ 1,269,379 $ 1,266,62 (2,750) -0.22% A public school operating budget is legally required to include the Academy's General, Debt Service,and Food Service Funds. However,the Academy does not maintain a Food Service Fund or a Debt Service Fund,so the General Fund is the only legally adopted fund. Budgets for Special Revenue Funds are included throughout the presentation for informational purposes only. GOVERNMENTAL REVENUE The Academy's primary revenue sources continue to be the State Foundation School Program and the Westlake Academy Foundation. Revenues received by Westlake Academy are classified into three broad categories: Amended Proposed $Increase % Increase FY 18/19 FY 19/20 (Decrease) (Decrease) State Program Revenues $7,432,695 $8,277,372 $ 844,677 11.36% Local Revenues 1,780,712 1,819,061 38,349 2.15% Federal Revenues 110,248 111,772 1,524 1.38% Total Revenues $9,323,655 $10,208,205 $ 884,550 9.49% LOCAL REVENUES Local funding consists of the following major sources: The Town of Westlake,Westlake Academy Foundation(WAF)and the House of Commons. o The Westlake Academy Foundation (WAF) is an independent,non profit organization that raises funds through donations and various Federal Program fundraising efforts. The WAF conducts several annual fundraising Revenues activities, including the Blacksmith Campaign, an annual fund drive 1% Local which started as a way to close the funding gap between what charter Revenues schools receive in state allocations in comparison to local ISDs. It 18% mainly directs fundraising efforts towards the parents of Academy students and tries to leverage these donations with the employers who have matching programs for individuals that contribute time or money to non-profits. The Blacksmith Campaign is held each year in State October,and each family is asked to contribute$2,500 per student to help Program cover the gap between the state public education and what the Academy Revenues spends on each student. 81% o Other Local Revenues include athletic activities,transportation and parking fees, interest earned,food services,TEA/ESC Region 11 substitute reimbursement,and municipal contributions. o The Westlake Academy House of Commons(HOC)is the 501(c)3 parent/teacher organization of Westlake Academy. Members of the HOC assist with fundraising projects, participate in educational and social programs,or volunteer time to help 49 GOVERNMENTAL FUNDS FINANCIAL SUMMARY show the teachers and staff at Westlake Academy that they are appreciated. Through fundraising efforts,the HOC provides needed support to the school. FEDERAL PROGRAM REVENUES Federal funding is received through grants that support special education and accounts for approximately one(1%)of revenues for all funds. STATE PROGRAM REVENUES State funding is the Academy's largest revenue source,making up approximately 82%of all General Fund revenues. Funding for public education has increased slightly over the last two legislative sessions,but overall funding still falls short of the FY 2009/10 school year. The Texas economy has been strong,but ongoing litigation regarding public education funding has created a hesitancy to adjust funding projections until the courts have ruled upon the constitutionality of the current funding methodology. Consequently,the Academy continues to utilize prior year funding levels when developing financial models and forecasts. Staff estimates that the average level of total state aid received through the Foundation School Program (FSP)in FY 2018/19 will be approximately$7,762 per student. State Funding Per Student ,39 $7,43 $7,46 17,794 $7, 77 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 Projected GOVERNMENTAL EXPENDITURES Amended Proposed Budget Budget $Increase %Increase Expenditure FY17/18 FY 18/19 (Decrease) (Decrease) Percent 11-Instructional $ 5,122,878 $ 5,548,843 $ 425,965 8.31% 55.14% 12-Resources& Media 90,438 96,371 5,933 6.56% 0.96% 13-Staff Development 106,102 121,545 16,443 15.50% 1.22% 21-Instructional Leadership 165,172 182,919 17,747 10.74% 1.82% 23-School Leadership 963,131 1,033,836 70,705 7.34% 10.27% 31-Guidance&Counseling 493,844 568,295 74,451 15.08% 5.65% 33-Health Services 72,898 75,686 2,788 3.82% 0.75% 36-Extra-/Co-Curricular Activities 401,306 452,323 51,070 12.71% 4.50% 41-General Administration 226,427 253,649 27,221 12.02% 2.52% 51-Maintenance&Operations 968,290 970,081 1,791 0.18% 9.64% 52-Security& Monitoring 40,000 37,000 (3,000) 0.00% 0.37% 53-Data Processing 221,227 228,360 7,133 3.22°% 2 27°% 61-Community Services 136,692 142,862 6,170 4.51% 1.42% 71-Debt Service 167,068 350,005 182,937 109.50% 3.48% Total Expenditures $ 9,175,474 $ 10,062,774 $ 887,300 9.67% 100.00% 50 GOVERNMENTAL FUNDS FINANCIAL SUMMARY 65XX For FY 2019/20,Staff recommends a salary increase of Debt Service approximately 3.0%. The increase equals approximately 2% $759,593 in payroll and related expenditures and will 64XX- bring the Academy to within 0.5%of the estimated Other 61XX Operating Payroll& average median of surrounding districts. These 5% Related Items adjustments to compensation and benefits will allow the 74% 63XX Academy to remain competitive and serve as a valuable Supplies& component in our recruiting and retention efforts. Materials 7% 62XX Contracted Services 12% Amended Proposed Employee compensation EXPENDITURES Budget Budget $Increase %Increase and benefits are Westlake BY OBJECT CODE FY 18/19 FY 19/20 (Decrease) (Decrease) Academy's largest operating 61XX-Payroll & Related Items $6,932,824 $7,692,417 $759,593 10.96% expenditures. Board policy 62XX-Contracted Services 1,027,555 955,360 (72,195) -7.03% states a desire to maintain 63XX-Supplies& Materials 511,307 502,830 (8,477) -1.66% a salary scale within three 64XX-Other Operating 536,720 562,162 25,442 4.74% percent(3%)of the districts 65XX-Debt Service 167,068 350,005 182,937 109.50% surveyed for market Total Expenditures $9,175,474 $10,062,774 $887,300 9.67% THE SHARED SERVICES MODEL Administrative,financial,human resources and facilities services are provided by the Town of Westlake under a shared services model. These service costs were previously booked to the Westlake Academy operating budget but were removed in the FY 12/13 school year. The following table illustrates indirect operating costs which are booked to the Town of Westlake's General Fund and Debt Service Fund. Amended Proposed $Increase %Increase FY 2018/19 FY 2019/20 (Decrease) (Decrease) Operating Expenditures $ 8,565,326 $ 9,284,841 $ 719,515 8.40% Municipal-Transfer to WA Operating Budget 209,806 219,750 9,944 4.74% Municipal—Transfer to WA WAF Staff - 67,911 67,911 100.00% Total Academic Costs(General Fund Only) 8,775,132 9,572,502 797,370 9.09% Annual Debt Service(Municipal budget) 1,830,961 1,835,190 4,229 0.23% Major Maintenance and Replacement 377,182 388,407 11,225 2.98% In-direct Operating Costs 837,873 966,144 128,271 15.31% Total Municipal Costs 3,046,016 3,189,741 143,725 4.72% TOTAL EXPENDITURE COSTS $ 11,821,148 $ 12,762,243 $ 941,095 7.96% Number of Students 869 910 1 41 4.729/c Total Expenditure Cost per Student $ 13,603 $ 14,024 $ 421 51 GOVERNMENTAL FUNDS FINANCIAL SUMMARY PROJECTED ENDING FUND BALANCES Historically,revenues and expenditures have increased at relatively the same rate which has dictated the need for a higher fund balance. The Academy strives for a 45-day minimum requirement established by Board policy. It is anticipated that this trend will continue over the next five years,with a relatively slow but steady growth in fund balance. The Academy anticipates that the General Fund balance will remain above the TEA's recommended 45 days(School FIRST Rating),barring any unforeseen circumstances. Projected Total Total Projected Percent Change Change Beginning Revenues Expenditures Ending of Amount Percent Fund and Other and Other Fund Total Balance Sources Uses Balance General Fund $1,253,786 $9,807,933 $9,662,502 $1,399,217 99% $145,431 12% Special Revenue Funds 15,593 490,272 490,272 15,593 1% - 0% TOTAL $1,269,379 $10,298,205 $10,152, 9$145,431 11% r `X i 4 # � d 52 WESTLAKE ACADEMY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE ALL GOVERNMENTAL FUNDS For the Year Ending August 31, 2020 Adopted Amended Proposed Variance Audited Audited Audited Budget Budget Budget Amended to FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 18/19 FY 19/20 Amended REVENUES Local Revenues $ 1,614,880 $ 1,896,101 $ 1,845,003 $ 1,786,334 $ 1,780,712 $ 1,819,061 $ 38,349 State Program Revenues 6,548,362 6,603,358 7,217,383 7,311,023 7,432,695 8,277,372 844,677 Federal Program Revenues 98,564 140,152 114,797 104,000 110,248 111,772 1,524 8,261,806 8,639,611 9,177,183 9,201,357 9,323,655 10,208,205 884,550 EXPENDITURES(BY FUNCTION) 11 Instructional 5,760,357 5,034,101 5,311,083 5,246,502 5,122,878 5,548,843 425,965 12 Resources&Media 77,692 81,227 86,094 90,935 90,438 96,371 5,933 13 Staff Development 184,198 128,717 109,486 109,545 106,102 122,545 16,443 21 Instructional Leadership 210,591 266,090 153,295 170,217 165,172 182,919 17,747 23 School Leadership 885,787 898,643 896,686 927,197 963,131 1,033,836 70,705 31 Guidance&Counseling 248,153 267,033 311,250 321,467 493,844 568,295 74,451 33 Health Services 62,328 67,489 72,233 72,917 72,898 75,686 2,788 36 -Extra-/Co-Curricular Activities 179,779 338,817 326,519 307,169 401,306 452,323 51,017 41 -General Administration 372,986 307,304 324,975 308,772 226,427 253,649 27,221 51 Maintenance&Operations 895,334 886,943 939,649 947,445 968,290 970,081 1,791 52-Security&Monitoring Services - - - 40,000 40,000 37,000 (3,000) 53 Data Processing 164,330 173,352 192,034 216,103 221,227 228,360 7,133 61 -Community Services 118,429 126,614 130,862 138,322 136,692 142,862 6,170 71 -Debt Service 91,092 256,795 167,067 167,068 167,068 350,005 182,937 Total Expenditures 9,251,056 8,833,125 9,021,233 9,063,660 9,175,474 10,062,774 887,300 Excess(Deficiency)of Revenues Over (Under)Expenditures (989,250) (193,514) 155,950 137,696 148,181 145,431 10,484 OTHER FINANCING SOURCES(USES) 79-Other Resources 474,300 85,000 76,000 90,000 90,000 - 89-Other Uses - (37,090) (85,000) (76,000) (90,000) (90,000) 79-Special Item-Resource - 89-Extraordinary Item-Use NET CHANGES IN FUND BALANCE (514,950) (230,604) 155,950 137,696 148,181 145,431 (2,750) FUND BALANCE,BEGINNING 1,673,712 1,158,762 965,248 1,121,198 1,121,198 1,269,379 148,181 FUND BALANCE,ENDING 1,158,762 928,158 1,121,198 1,258,894 1,269,379 1,414,810 145,431 Assigned-Tech/FF&E Replacemt 125,000 - - - 56,450 - (56,450) Assigned-Bus Maintenance - - 24,090 24,090 19,000 19,000 Assigned-Uniforms/Equip Rep 5,000 11,000 15,000 15,000 15,000 15,000 Assigned-Facility Maintenance/FFE - - - - - - - FUND BALANCE,UNASSIGNED $ 1,028,762 $ 917,158 $ 1,082,108 $ 1,219,805 $ 1,178,929 $ 1,380,810 $ 88,981 53 WESTLAKE ACADEMY ALL GOVERNMENTAL FUNDS For the Year Ending August 31, 2020 TOTAL REVENUES Adopted Amended Proposed Variance Audited Audited Audited Budget Budget Budget Amended to FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 18/19 FY 19/20 Proposed General Fund $ 7,868,978 $8,218,417 $ 8,648,202 $8,847,829 $ 8,923,313 $ 9,717,933 $ 794,620 Special Revenue Funds 392,828 421,194 528,981 353,528 400,342 490,272 89,930 Total Governmental Funds $8,261,806 $ 8,639,611 $9,177,183 $ 9,201,357 $9,323,655 $ 10,208,205 $ 884,550 TOTAL EXPENDITURES Adopted Amended Proposed Variance Audited Audited Audited Budget Budget Budget Amended to FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 18/19 FY 19/20 Proposed General Fund $ 8,754,399 $8,387,272 $ 8,481,868 $8,710,133 $ 8,775,132 $ 9,572,502 $ 797,370 Special Revenue Funds 496,657 445,853 539,365 353,528 400,342 490,272 89,930 Total Governmental Funds $9,251,056 $ 8,833,125 $9,021,233 $ 9,063,661 $9,175,474 $ 10,062,774 $ 887,300 EXPENDITURES BY OBJECT CODE Adopted Amended Proposed Variance Audited Audited Audited Budget Budget Budget Amended to FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 18/19 FY 19/20 Proposed 61XX-Payroll& Related Items $ 6,335,239 $ 6,532,614 $ 6,593,116 $6,689,304 $ 6,932,824 $ 7,692,417 $ 759,593 62XX-Contracted Services 1,147,193 1,035,579 1,126,098 1,056,667 1,027,555 955,360 (72,195) 63XX-Supplies&Materials 1,105,162 356,494 589,491 668,652 511,307 502,830 (8,477) 64XX-Other Operating 572,370 651,643 545,461 481,970 536,720 562,162 25,442 65XX-Debt Service 91,092 256,795 167,067 167,068 167,068 350,005 182,937 Total Expenditures $9,251,056 $8,833,125 $9,021,233 $9,063,661 $9,175,474 $ 10,062,774 $ 887,300 PROPOSED EXPENDITURES 62XX BY O BJ ECT Contracted Services 12% 63XX 61XX Supplies&Materials Payroll&Related Items 7% 74% 64XX- Other Operating 5% 65XX Debt Service 2% 54 WESTLAKE ACADEMY ALL GOVERNMENTAL FUNDS For the Year Ending August 31, 2020 Adopted Amended Proposed Audited Audited Audited Budget Budget Budget FY 15/16 FY 16/17 FY 17/18 FY 19/20 FY 18/19 FY 19/20 REVENUE SUMMARY Local Revenues $ 1,614,880 $ 1,896,101 $ 1,845,003 $ 1,786,334 $ 1,780,712 $ 1,819,061 State Program Revenues 6,548,362 6,603,358 7,217,383 7,311,023 7,432,695 8,277,372 Federal Program Revenues 98,564 140,152 114,797 104,000 110,248 111,772 Total Revenues $ 8,261,806 $ 8,639,611 $ 9,177,183 $ 9,201,357 $ 9,323,655 $ 10,208,205 Adopted Amended Proposed Audited Audited Audited Budget Budget Budget EXPENDITURES(BY FUNCTION) FY 15/16 FY 16/17 FY 16/17 FY 17/18 FY 17/18 FY 18/19 11 Instructional $ 5,760,357 $ 5,034,101 $ 5,311,083 $ 5,246,502 $ 5,122,878 $ 5,548,843 12 Resources&Media 77,692 81,227 86,094 90,935 90,438 96,371 13 Staff Development 184,198 128,717 109,486 109,545 106,102 122,545 21 Instructional Leadership 210,591 266,090 153,295 170,217 165,172 182,919 23 School Leadership 885,787 898,643 896,686 927,197 963,131 1,033,836 31 Guidance&Counseling 248,153 267,033 311,250 321,467 493,844 568,295 33 Health Services 62,328 67,489 72,233 72,917 72,898 75,686 36 Extra-/Co-Curricular Activities 179,779 338,817 326,519 307,169 401,306 452,323 41 General Administration 372,986 307,304 324,975 308,772 226,427 253,649 51 Maintenance&Operations 895,334 886,943 939,649 947,445 968,290 970,081 52- Security&Monitoring Services - - - 40,000 40,000 37,000 53 -Data Processing 164,330 173,352 192,034 216,103 221,227 228,360 61 -Community Services 118,429 126,614 130,862 138,322 136,692 142,862 71 -Debt Service 91,092 256,795 167,067 167,068 167,068 350,005 Total Expenditures $ 9,251,056 $ 8,833,126 $ 9,021,235 $ 9,063,663 $ 9,175,478 $ 10,062,779 Local Revenues State 19.4% Program Revenues 79.5% F deral Program Revenues 1.1% 55 GENERAL FUND FINANCIAL SUMMARY The General Fund is a governmental fund with budgetary control which is used to show transactions resulting from operations of on-going organizations and activities from a variety of revenue sources. BUDGET SUMMARY Amended Proposed $Increase %Increase FY 2018/19 FY 2019/20 (Decrease) (Decrease) Total Revenues $ 8,923,313 $ 9,717,933 $ 794,620 8.90% Total Expenditures 8,775,132 9,572,502 797,370 9.09% Other Resources 90,000 90,000 - 0.00% Other Uses (90,000) (90,000) - 0.00% Excess Revenues Over(Under) Expenditures 148,181 145,430 (2,750) -1.86% FUND BALANCE BEGINNING 1,105,605 1,253,786 148,181 13.40% FUND BALANCE ENDING 1,253,786 1,399,217 145,431 11.60% Assigned 90,450 34,000 (56,450) -62.41% FUND BALANCE ENDING(Unassigned) $ 1,163,336 $ 1,365,217 $ 201,881 17.35% #Days Operating(Based on 365) 48 52 4 7.58% GENERAL FUND REVENUES Amended Proposed $Increase %Increase Revenue FY 2018/19 FY 2019/20 (Decrease) (Decrease) Percent Local Revenues $ 1,528,640 $ 1,590,561 $ 61,921 4.05% 16% State Program Revenues 7,394,673 8,127,372 732,699 9.91% 84% TOTAL REVENUES $ 8,923,313 $ 9,717,933 $ 794,620 8.90% 100% General Fund Revenue Total Local Revenues Total State 16% V06046, Revenues 84% 110111 56 GENERAL FUND FINANCIAL SUMMARY STATE FUNDING REVENUES Although the 86th Texas legislative session increased State funding, it appears that they also widened the funding gap between independent school districts and public charter schools.The funding gap widened due to several reasons,the most significant one was the new requirement for charter schools to contribute additional dollars to the Texas Retirement System for teachers, librarians and counselors who are paid above the State Minimum Pay Scale. This increased our contributions to the Texas Retirement System by$114,000. The Academy will be receiving approximately$427 additional funds per student with the above mandated payment being made from these funds. With the receipt of minimal federal funding, (IDEA B—Special Education Funds),the Academy is dependent upon private donations for operating costs and further financial support from the Town of Westlake. Funding ongoing operating costs with one-time dollars raised through private donations places the Academy in a potentially tenuous situation. If private donations do not meet the levels necessary to offset expenditures,the Town of Westlake must increase financial support or consider reducing the associated service levels. GENERAL FUND EXPENDITURES Amended Proposed $Increase %Increase Expenditure Expenditures(by Object Code) FY 2018/19 FY 2019/20 (Decrease) (Decrease) Percent 61XX-Salaries $ 6,704,289 $ 7,412,546 $ 708,257 10% 77% 62XX-Contracted Services 996,141 916,889 (79,252) r -7.96% 10% 63XX-Supplies& Materials 422,626 394,229 (28,397) -6.72% 4% 64XX-Other Operating Costs 485,008 498,833 13,825 2.85% 5% 65XX-Debt Service 167,068 350,005 182,937 109.5% 4% TOTAL EXPENDITURES $ 8,77S,132 $ 9,S72,S02 $ 797,3701 9.09% 100% 62XX Contracted Services Expenditures 10% by 63XX Object —Supplies� Materials 61XX o Code Payroll &Related Items 77% 64XX- ---.Other Operating 5% 65XX Debt Service 4% 57 WESTLAKE ACADEMY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GENERAL FUND For the Year Ending August 31, 2020 Adopted Amended Proposed Variance Audited Audited Audited Budget Budget Budget Amended to FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 18/19 FY 19/20 Proposed REVENUES Local Revenues $ 1,459,838 $ 1,626,401 $ 1,571,182 $ 1,567,834 $ 1,528,640 $ 1,590,561 $ 61,921 State Program Revenues 6,409,140 6,592,016 7,077,020 7,279,995 7,394,673 8,127,372 732,699 Total Revenues 7,868,978 8,218,417 8,648,202 8,847,829 8,923,313 9,717,933 794,620 EXPENDITURES(BY FUNCTION) 11 Instructional 5,369,348 4,749,555 4,924,708 5,008,974 4,897,434 5,273,571 376,137 12 Resources&Media 73,983 81,227 86,094 90,935 89,675 96,371 6,696 13 Staff Development 147,559 86,871 83,902 84,545 83,545 83,545 - 21 Instructional Leadership 210,591 266,090 153,295 170,217 161,610 182,919 21,309 23 School Leadership 860,150 875,439 888,589 924,197 953,591 1,030,836 77,245 31 Guidance&Counseling 248,153 267,033 311,250 321,467 489,522 568,295 78,773 33 Health Services 62,328 67,489 72,233 72,917 71,630 75,686 4,056 36 Extra-/Co-Curricular Activities 140,141 242,560 215,236 219,169 277,024 279,323 2,299 41 General Administration 372,961 307,304 324,975 308,772 224,928 253,649 28,721 51 Maintenance&Operations 895,334 886,943 931,623 947,445 965,759 970,081 4,322 52 Security and Monitoring Services - - - 40,000 40,000 37,000 (3,000) 53 Data Processing 164,330 173,352 192,034 216,103 219,198 228,360 9,162 61 Community Services 118,429 126,614 130,862 138,322 134,148 142,862 8,714 71 Debt Service 91,092 256,795 167,067 167,068 167,068 350,005 182,937 Total Expenditures 8,754,399 8,387,272 8,481,868 8,710,132 8,775,132 9,572,502 797,370 Excess(Deficiency)of Revenues Over (Under)Expenditures (885,421) (168,855) 166,334 137,696 148,181 145,431 (2,750) OTHER FINANCING SOURCES(USES) 79-Capital Lease Proceeds 474,300 - - - - 79-Other Resources - 37,090 85,000 76,000 90,000 90,000 89-Other Uses - - (85,000) (76,000) (90,000) (90,000) Total Other Financing Sources (Uses) 474,300 37,090 - - - - NET CHANGES IN FUND BALANCE (411,121) (131,765) 166,334 137,696 148,181 145,431 (2,750) FUND BALANCE,BEGINNING 1,482,157 1,071,036 939,271 1,105,605 1,105,605 1,253,786 148,181 FUND BALANCE,ENDING 1,071,036 939,271 1,105,605 1,243,301 1,253,786 1,399,217 145,431 Assigned-Bus Maintenance - - 24,090 24,090 19,000 19,000 - Assigned-Tech/FF&E Replacement 125,000 - - 56,450 - (56,450) Assigned-Uniforms/Equip Replacement 5,000 11,000 15,000 15,000 15,000 15,000 Assigned-Facility Maintenance/FFE - - - - - - FUND BALANCE,UNASSIGNED $ 941,036 $ 928,271 $ 1,066,515 $ 1,204,212 $ 1,163,336 $ 1,365,217 $ 88,981 58 WESTLAKE ACADEMY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GENERAL FUND For the Year Ending August 31, 2020 Z REVENUE & EXPENDITURE COMPARISON (IN MILLIONS) 12 0 Total Revenues Total Expenditures 10 $9.72 $9.57 8 $8.75 9 $8.65 $8.48 $8.85 $8.71 $8.92 $8.78 � $7.87 $8.22 $ 6 4 2 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 18/19 FY 19/20 Audited Audited Audited ` Budget Budget Budget Adopted Amended Proposed PROPOSED EXPENDITURES (BY FUNCTION) ■11 -Instructional ■12 -Resources&Media 23 -School Leadership ■13 -Staff Development 11% ■21 -Instructional Leadership 11 Instructional ■23 -School Leadership - 55% _ ■31 -Guidance&Counseling ---- --- ' ■33 -Health Services ,s ■36 -Extra-/Co-Curricular Activities 51 -Maintenance& Operations 041 -GeneralAdministration 10% � ■51 -Maintenance&Operations ■52 -Security and Monitoring Services ■53 -Data Processing ■61 -Community Services ■71 -Debt Service 59 WESTLAKE ACADEMY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GENERAL FUND For the Year Ending August 31, 2020 Proposed FY 2019/2020 197 198 199 Total Transportation/ Athletic General General Parking Fund Activities Fund Fund FY 19/20 FY 19/20 FY 19/20 FY 19/20 REVENUES Local Revenues $ 25,500 $ 88,100 $ 1,476,961 $ 1,590,561 State Program Revenues - - 8,127,372 8,127,372 Total Revenues 25,500 88,100 9,604,333 9,717,933 EXPENDITURES(BY FUNCTION) 11 Instructional 6,512 - 5,267,059 5,273,571 12 -Resources&Media - 96,371 96,371 13 -Staff Development 83,545 83,545 21 -Instructional Leadership 182,919 182,919 23 -School Leadership 1,030,836 1,030,836 31 -Guidance&Counseling 568,295 568,295 33 Health Services - - 75,686 75,686 36 Extra-/Co-Curricular Activities 31,200 217,217 30,906 279,323 41 General Administration - - 253,649 253,649 51 Maintenance&Operations 970,081 970,081 52 Security and Monitoring Services 37,000 37,000 53 Data Processing - - 228,360 228,360 61 Community Services - - 142,862 142,862 71 Debt Service - - 350,005 350,005 Total Expenditures 37,712 217,217 9,317,573 9,572,502 Excess(Deficiency)of Revenues Over(Under) Expenditures (12,212) (129,117) 286,760 145,431 OTHER FINANCING SOURCES(USES) 79 -Other Resources 90,000 - 90,000 89 -Other Uses - (90,000) (90,000) Total Other Financing Sources(Uses) 90,000 (90,000) - NET CHANGES IN FUND BALANCE (12,212) (39,117) 196,760 145,431 FUND BALANCE,BEGINNING 64,874 32,378 1,156,533 1,253,786 FUND BALANCE,ENDING 52,662 (6,739) 1,353,293 1,399,217 Assigned-Bus Maintenance 19,000 - 19,000 Assigned-Technology/FF&E Replacement - - - Assigned-Uniform/Equipment Replacement - 15,000 - 15,000 ENDING FUND BALANCE(UNASSIGNED) $ 33,662 $ (21,739) $ 1,353,293 $ 1,365,217 60 WESTLAKE ACADEMY SCHEDULE OF EXPENDITURES BY FUNCTION &OBJECT CODE GENERAL FUND For the Year Ending August 31, 2020 Adopted Amended Proposed Variance Audited Audited Audited Budget Budget Budget Amended to EXPENDITURES FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 18/19 FY 19/20 Proposed 11 Instructional 6100 Payroll $ 4,445,106 $ 4,410,145 $ 4,543,716 $ 4,623,033 $ 4,518,169 $ 4,931,755 $ 413,586 6200 Contracted Services 69,223 65,785 96,437 66,820 69,355 63,055 (6,300) 6300 Supplies&Materials 745,919 132,636 125,713 193,628 181,621 150,673 (30,948) 6400 Other Operating 109,100 140,989 158,842 125,493 128,289 128,089 (200) Total Instructional 5,369,348 4,749,555 4,924,708 5,008,974 4,897,434 5,273,572 376,138 12 Resource&Media 6100 Payroll 68,030 73,302 75,668 77,635 76,375 82,245 5,870 6200 Contracted Services - - - 1,100 1,100 1,100 - 6300 Supplies&Materials 5,774 6,241 9,476 10,100 10,100 10,926 826 6400 Other Operating 179 1,684 950 2,100 2,100 2,100 - Total Resource&Media 73,983 81,227 86,094 90,935 89,675 96,371 6,696 13 Staff Development 6100 Payroll - - - - - - - 6200 Contracted Services 21,998 - - - - - - 6300 Supplies&Materials 7,224 339 40 400 400 400 - 6400 Other Operating 118,337 86,532 83,862 84,145 83,145 83,145 - Total Staff Development 147,559 86,871 83,902 84,545 83,545 83,545 - 21 Instructional Leadership 6100 Payroll 199,183 259,259 147,670 160,316 151,710 173,019 21,309 6200 Contracted Services - - - - - - - 6300 Supplies&Materials 4,606 46 - - - - - 6400 Other Operating 6,802 6,785 5,625 9,900 9,900 9,900 - Total Instructional Leadership 210,591 266,090 153,295 170,216 161,610 182,919 21,309 23 School Leadership 6100 Payroll 810,668 845,228 858,666 890,971 912,014 979,359 67,345 6200 Contracted Services - - - - - 9,900 9,900 6300 Supplies&Materials 18,689 597 2,488 700 4,426 4,426 - 6400 Other Operating 30,793 29,614 27,435 32,527 37,151 37,151 - Total School Leadership 860,150 875,439 888,589 924,198 953,591 1,030,836 77,245 31 Guidance&Counseling 6100 Payroll 160,308 202,138 257,769 260,567 419,422 520,995 101,573 6200 Contracted Services 73,358 53,741 42,322 43,750 52,290 29,490 (22,800) 6300 Supplies&Materials 9,076 4,113 3,587 6,000 5,700 5,700 - 6400 Other Operating 5,411 7,041 7,572 11,150 12,110 12,110 - Total Guidance&Counseling 248,153 267,033 311,250 321,467 489,522 568,295 78,773 61 WESTLAKE ACADEMY SCHEDULE OF EXPENDITURES BY FUNCTION & OBJECT CODE GENERAL FUND For the Year Ending August 31, 2020 Adopted Amended Proposed Variance Audited Audited Audited Budget Budget Budget Amended to EXPENDITURES FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 18/19 FY 19/20 Proposed 33 Health Services 6100 Payroll 59,536 64,487 70,486 70,419 69,130 73,186 4,056 6200 Contracted Services 520 145 243 1,000 1,000 1,000 - 6300 Supplies&Materials 2,272 2,857 1,504 1,500 1,500 1,500 6400 Other Operating - - - - - - - Total Health Services 62,328 67,489 72,233 72,919 71,630 75,686 4,056 36 Co-/Extra Curricular Activities 6100 Payroll 64,626 82,245 85,475 84,386 143,651 142,977 (674) 6200 Contracted Services 26,428 28,379 30,700 41,610 39,900 35,110 (4,790) 6300 Supplies&Materials 21,743 44,474 21,920 40,483 46,193 47,918 1,725 6400 Other Operating 27,344 87,462 77,142 52,690 47,280 53,318 6,038 Total CoCurricular Activities 140,141 242,560 215,237 219,169 277,024 279,323 2,299 41 Administrative 6100 Payroll 38,554 39,924 39,480 42,574 21,180 22,056 876 6200 Contracted Services 247,576 190,208 213,250 191,183 108,792 129,330 20,538 6300 Supplies&Materials 16,150 21,970 21,818 17,200 31,073 31,073 - 6400 Other Operating 70,681 55,202 50,427 57,815 63,883 71,190 7,307 Total Administrative 372,961 307,304 324,975 308,772 224,928 253,649 28,721 51 Maintenance&Operations 6100 Payroll 100,192 109,985 103,367 94,678 112,992 189,434 76,442 6200 Contracted Services 664,518 655,474 696,653 677,504 677,004 604,204 (72,800) 6300 Supplies&Materials 50,201 43,331 62,868 85,213 84,713 84,713 - 6400 Other Operating 80,423 78,153 68,735 90,050 91,050 91,730 680 Total Maintenance&Operations 895,334 886,943 931,623 947,445 965,759 970,081 4,322 52 Security&Monitoring Services 6100 Payroll - - - - - - - 6200 Contracted Services - - - 20,000 33,000 30,000 (3,000) 6300 Supplies&Materials - - - 20,000 7,000 7,000 - 6400 Other Operating - - - - - - - Total Security&Monitoring Services - - - 40,000 40,000 37,000 (3,000) 62 WESTLAKE ACADEMY SCHEDULE OF EXPENDITURES BY FUNCTION & OBJECT CODE GENERAL FUND For the Year Ending August 31, 2020 Adopted Amended Proposed Variance Audited Audited Audited Budget Budget Budget Amended to EXPENDITURES FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 18/19 FY 19/20 Proposed 53 Data Processing 6100 Payroll 124,899 130,931 136,199 142,403 145,498 154,660 9,162 6200 Contracted Services 8,639 8,306 13,697 13,700 13,700 13,700 - 6300 Supplies&Materials 24,994 32,778 36,960 49,900 49,900 49,900 6400 Other Operating 5,798 1,337 5,178 10,100 10,100 10,100 - Total Data Processing 164,330 173,352 192,034 216,103 219,198 228,360 9,162 61 Community Services 6100 Payroll 118,429 126,614 130,862 138,322 134,148 142,862 8,714 Total Community Service 118,429 126,614 130,862 138,322 134,148 142,862 8,714 71 Debt Service 6500 Debt Service 91,092 256,795 167,067 167,068 167,068 350,005 182,937 Total Debt Service 91,092 256,795 167,067 167,068 167,068 350,005 182,937 Total Expenditure $ 8,754,399 $ 8,387,272 $ 8,481,868 $ 8,710,133 $ 8,775,132 $ 9,572,502 $ 797,370 Adopted Amended Proposed Variance Audited Audited Audited Budget Budget Budget Amended to FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 18/19 FY 19/20 Proposed EXPENDITURES BY OBJECT CODE 61XX-Payroll&Related Items 6,189,531 6,344,258 6,449,358 6,585,304 6,704,289 7,412,546 $ 708,257 62XX-Contracted Services 1,112,260 1,002,038 1,093,302 1,056,667 996,141 916,889 (79,252) 63XX-Supplies&Materials 906,648 289,382 286,374 425,124 422,626 394,229 (28,397) 64XX-Other Operating 454,868 494,799 485,768 475,970 485,008 498,833 13,825 65XX-Debt Service 91,092 256,795 167,067 167,068 167,068 350,005 182,937 Total Expenditures $ 8,754,399 $ 8,387,272 $ 8,481,868 $ 8,710,133 $ 8,775,132 $ 9,572,502 $ 797,370 EXPENDITURES BY ■ 62XX-Contracted Services OBJECT CODE 10% 63XX-Supplies&Materials 4% 61XX-Payroll&Related Items----, 11 i 77% 64XX-Other Operating - 5% 65XX-Debt Service 4% 63 WESTLAKE ACADEMY REVENUE AND EXPENDITURE COMPARISON GENERAL FUND Fiscal Years 03/04 through 19/20 Fiscal Year Revenues incr% Expenditures incr% Net Change FY 03/04 Audited $ 1,094,608 $ 1,068,857 $ 25,751 FY 04/05 Audited 1,831,898 67.4% 1,612,198 50.8% 219,700 FY 05/06 Audited 2,407,526 31.4% 2,211,897 37.2% 195,629 FY 06/07 Audited 2,879,531 19.6% 2,615,511 18.2% 264,020 FY 07/08 Audited 3,168,968 10.1% 3,226,254 23.4% (57,286) FY 08/09 Audited 3,661,645 15.5% 3,709,086 15.0% (47,441) FY 09/10 Audited 4,280,723 16.9% 3,917,886 5.6% 362,837 FY 10/11 Audited 4,608,573 7.7% 4,518,107 15.3% 90,466 FY 11/12 Audited 5,244,170 13.8% 5,287,757 17.0% (43,587) FY 12/13 Audited 5,640,934 7.6% 5,496,181 3.9% 144,753 FY 13/14 Audited 6,560,141 16.3% 6,733,873 22.5% (173,732) FY 14/15 Audited 7,805,552 19.0% 7,364,652 9.4% 440,900 FY 15/16 Audited 7,868,978 0.8% 8,754,399 18.9% (885,421) FY 16/17 Audited 8,218,417 4.4% 8,387,272 -4.2% (168,855) FY 17/18 Audited 8,648,202 5.2% 8,481,868 1.1% 166,334 FY 18/19 Amended 8,923,313 3.2% 8,775,132 3.5% 148,181 FY 19/20 Proposed 9,717,933 8.9% 9,572,502 9.1% 145,431 $12 Revenue & Expenditure Comparison $10 (in millions) 'a', oo N M pp N n No6 N W t/F W W W to � n � $8 M / N 'o Z O n J � N c_ lA C � � $6 ^ ^ Ln } W In N N . M 1 M $4 Mi* $2 $0 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 Amended Proposed Revenues Expenditures 64 WESTLAKE ACADEMY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE TRANSPORTATION/PARKING FUND- 197 For the Year Ending August 31, 2020 Adopted Amended Proposed Variance Audited Audited Audited Budget Budget Budget Amended to FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 18/19 FY 19/20 Proposed REVENUES Local Revenues $ 22,768 $ 17,097 $ 32,889 $ 25,500 $ 25,500 $ 25,500 $ State Revenues - - - - - Total Revenues 22,768 17,097 32,889 25,500 25,500 25,500 EXPENDITURES(BY FUNCTION) 11 Instructional 13,597 1,489 970 1,748 4,640 6,512 1,872 36 Co-/Extra Curricular Activities 13,055 18,556 61,062 78,813 44,448 31,200 (13,248) Total Expenditures 26,652 20,045 62,032 80,561 49,088 37,712 (11,376) Excess(Deficiency)of Revenues Over (3,884) (2,948) (29,143) (55,061) (23,588) (12,212) 11,376 (Under) Expenditures OTHER FINANCING SOURCES(USES) 79-Other Resources 37,090 25,000 16,000 - 89-Other Uses - - - Total Other Financing Sources(Uses) 37,090 25,000 16,000 - NET CHANGES IN FUND BALANCE (3,884) 34,142 (4,143) (39,061) (23,588) (12,212) 11,376 FUND BALANCE,BEGINNING 62,347 58,463 92,605 88,462 88,462 64,874 (23,588) FUND BALANCE,ENDING 58,463 92,605 88,462 49,401 64,874 52,662 (12,212) Assigned-Bus Maintenance - - 24,090 24,090 19,000 19,000 Assigned-Parking - - - - - - ENDING FUND BALANCE(UNASSIGNED) $ 58,463 $ 92,605 $ 64,372 $ 25,311 $ 45,874 $ 33,662 $ (12,212) 777 VESTLIKE ACADEMY i 65 WESTLAKE ACADEMY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE ATHLETIC ACTIVITIES FUND- 198 For the Year Ending August 31, 2020 Adopted Amended Proposed Variance Audited Audited Audited Budget Budget Budget Amended to FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 18/19 FY 19/20 Proposed REVENUES Local Revenues $ 97,940 $ 78,867 $ 82,602 $ 94,200 $ 94,200 $ 88,100 $ (6,100) State Revenue 1,396 1,531 1,037 - - - - Total Revenues 99,336 80,398 83,639 94,200 94,200 88,100 (6,100) EXPENDITURES(BY FUNCTION) 11 Instructional 39 - - - - - 36 -Co-/Extra Curricular Activities 99,421 204,997 128,759 132,856 197,147 217,217 20,070 Total Expenditures 99,460 204,997 128,759 132,856 197,147 217,217 20,070 Excess(Deficiency)of Revenues Over (Under) Expenditures (124) (124,599) (45,120) (38,656) (102,947) (129,117) (26,170) OTHER FINANCING SOURCES(USES) 79-Other Resources - 60,000 60,000 60,000 90,000 90,000 89-Other Uses - - - - Total Other Financing Sources(Uses) - 60,000 60,000 60,000 90,000 90,000 NET CHANGES IN FUND BALANCE (124) (64,599) 14,880 21,344 (12,947) (39,117) (26,170) FUND BALANCE,BEGINNING 95,168 95,044 30,445 45,325 45,325 32,378 (12,947) FUND BALANCE, ENDING 95,044 30,445 45,325 66,668 32,378 (6,739) (39,117) Assigned-Uniform/Equip Replacement 5,000 11,000 15,000 15,000 15,000 15,000 ENDING FUND BALANCE(UNASSIGNED) $ 90,044 $ 19,445 $ 30,325 $ 51,668 $ 17,378 ($21,739) ($39,117) 4 CSRF 66 WESTLAKE ACADEMY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GENERAL FUND- 199 For the Year Ending August 31, 2020 Adopted Amended Proposed Variance Audited Audited Audited Budget Budget Budget Amended to FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 18/19 FY 19/20 Proposed REVENUES Local Revenues $ 1,339,130 $ 1,530,437 $ 1,455,691 $ 1,448,134 $ 1,408,940 $ 1,476,961 $ 68,021 State Program Revenues 6,407,744 6,590,485 7,075,983 7,279,995 7,394,673 8,127,372 732,699 Total Revenues 7,746,874 8,120,922 8,531,674 8,728,129 8,803,613 9,604,333 800,720 EXPENDITURES(BY FUNCTION) 11 Instructional 5,355,712 4,748,066 4,923,738 5,007,226 4,892,794 5,267,059 374,265 12 Resources&Media 73,983 81,227 86,094 90,935 89,675 96,371 6,696 13 Staff Development 147,559 86,871 83,902 84,545 83,545 83,545 - 21 Instructional Leadership 210,591 266,090 153,294 170,216 161,610 182,919 21,309 23 School Leadership 860,150 875,439 888,590 924,198 953,591 1,030,836 77,245 31 Guidance&Counseling 248,153 267,033 311,250 321,467 489,522 568,295 78,773 33 Health Services 62,328 67,489 72,235 72,919 71,630 75,686 4,056 36 Co-/Extra Curricular Activities 27,665 19,007 25,413 7,500 35,429 30,906 (4,523) 41 Administrative 372,961 307,304 324,975 308,772 224,928 253,649 28,721 51 Maintenance&Operations 895,334 886,943 931,622 947,445 965,759 970,081 4,322 52 Security&Monitoring Services - - 40,000 40,000 37,000 (3,000) 53 Data Processing 164,330 173,352 192,033 216,103 219,198 228,360 9,162 61 Community Services 118,429 126,614 130,862 138,322 134,148 142,862 8,714 71 Debt Service 91,092 256,795 167,067 167,068 167,068 350,005 182,937 Total Expenditures 8,628,287 8,162,230 8,291,075 8,496,716 8,528,897 9,317,573 788,676 Excess(Deficiency)of Revenues Over (Under) Expenditures (881,413) (41,308) 240,599 231,413 274,716 286,760 12,044 OTHER FINANCING SOURCES(USES) 79-Capital Lease Proceeds 474,300 - - - - - 79-Transfers In - 89-Transfer Out(Use) - (60,000) (85,000) (76,000) (90,000) (90,000) - Total Other Financing Sources(Uses) 474,300 (60,000) (85,000) (76,000) (90,000) (90,000) - NET CHANGES IN FUND BALANCE (407,113) (101,308) 155,599 155,413 184,716 196,760 12,044 FUND BALANCE,BEGINNING 1,324,642 917,529 816,218 971,817 971,817 1,156,533 184,716 FUND BALANCE,ENDING 917,529 816,221 971,817 1,127,231 1,156,533 1,353,293 196,760 Assigned-Technology/FF&E 125,000 - - - 56,450 - (56,450) ENDING FUND BALANCE(UNASSIGNED) $ 792,529 $ 816,221 $ 971,817 $ 1,127,231 $ 1,100,083 $ 1,353,293 $ 140,310 67 WESTLAKE ACADEMY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE ALL SPECIAL REVENUE FUNDS For the Year Ending August 31, 2020 WAF WAF International Total IDEA-B Materials Campus Local Student Mindedness Special Formula Allotment Activity Grants Travel Awards Symposium Revenue 224 410 461 484 497 498 Funds REVENUES Local Program Revenues $ - $ - $ 70,000 $ 150,000 $ 2,500 $ 6,000 $ 228,500 State Program Revenues - 150,000 - - - - 150,000 Federal Program Revenues 111,772 - - - - - 111,772 Total Revenues 111,772 150,000 70,000 150,000 2,500 6,000 490,272 EXPENDITURES(BY FUNCTION) 11 -Instructional 111,772 150,000 - 11,000 2,500 - 275,272 13 -Staff Development - - - 36,000 - 3,000 39,000 21- Instructional Leadership - - - - - - - 23 -School Leadership - - - - - 3,000 3,000 36 -Co-Curricular Activities - - 70,000 103,000 - - 173,000 Total Expenditures 111,772 150,000 70,000 150,000 2,500 6,000 490,272 Excess(Deficiency)of Revenues Over(Under) Expenditures - - - - - - - NET CHANGES IN FUND BALANCE - - - - - - - FUND BALANCE,BEGINNING - - 11,378 4,215 - - 15,593 FUND BALANCE,ENDING $ - $ - $ 11,378 $ 4,215 $ - $ - $ 15,593 68 WESTLAKE ACADEMY SCHEDULE OF EXPENDITURES ALL SPECIAL REVENUE FUNDS For the Year Ending August 31, 2020 Variance Amended Proposed Amended to FY 18/19 FY 19/20 Proposed Federal Grants through TEA Fund 224-IDEA B $ 110,248 $ 111,772 $ 1,524 Sub-total Federal Grants 110,248 111,772 1,524 State Grants through TEA Fund 410-Material Allotment Disbursment 38,022 150,000 111,978 Sub-total State Grants 38,022 150,000 111,978 Local Activities Fund 461-Local Campus Activity 77,911 70,000 (7,911) Fund 484-Local Grants(HOC&WAF) 165,835 150,000 (15,835) Fund 498-International Mindedness Syposium 5,826 6,000 174 Sub-total Local Activities 249,572 226,000 (23,572) Westlake Academy Foundation(WAF)Grants Fund 497-Student Travel Awards 2,500 2,500 - Sub-total Foundation Grants 2,500 2,500 - Grant Total-All Special Revenue Fund Revenues&Expenditures $ 400,342 $ 490,272 $ 89,930 NOTE: Special Revenue Funds account for local,state and federally financed programs or expenditures legally restricted for specified purposes or where unused balances are returned to the grantor at the close of a specified project period. 69 WESTLAKE ACADEMY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE ALL SPECIAL REVENUE FUNDS For the Year Ending August 31, 2020 Adopted Amended Proposed Variance Audited Audited Audited Budget Budget Budget Amended to FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 18/19 FY 19/20 Proposed REVENUES Local Program Revenues $ 155,042 $ 269,700 $ 273,821 $ 218,500 $ 252,072 $ 228,500 $ (23,572) State Program Revenues 139,222 11,342 140,363 31,028 38,022 150,000 111,978 Federal Program Revenues 98,564 140,152 114,797 104,000 110,248 111,772 1,524 Total Revenues 392,828 421,194 528,981 353,528 400,342 490,272 89,930 EXPENDITURES(BY FUNCTION) 11 Instructional 391,009 284,546 386,375 237,528 225,444 275,272 49,828 12 Resources&Media 3,709 - - - 763 - (763) 13 Staff Development 36,639 41,846 25,584 25,000 22,557 39,000 16,443 21 Instructional Leadership - - - - 3,562 - (3,562) 23 School Leadership 25,637 23,204 8,097 3,000 9,540 3,000 (6,540) 31 Guidance&Counseling - - - - 4,322 - (4,322) 33 Health Services 1,268 (1,268) 35 Food Services - - - - - 36 CoCurricular/Extracurricular Activities 39,638 96,257 111,283 88,000 124,282 173,000 48,718 41 Administrative 25 - - - 1,499 - (1,499) 51 Maintenance&Operations - 8,026 2,531 (2,531) 53 Data Processing - 2,029 (2,029) 61 Community Services 2,544 (2,544) 71 Debt Service - 81 Facility Acquisition/Construction - - - - - - - Total Expenditures 496,657 445,853 539,365 353,528 400,342 490,272 89,930 Excess(Deficiency)of Revenues Over (Under) Expenditures (103,829) (24,659) (10,384) - - - - OTHER FINANCING SOURCES(USES) 79-Other Resources 89-Other Uses (37,090) Total Other Financing Sources(Uses) (37,090) NET CHANGES IN FUND BALANCE (103,829) (61,749) (10,384) - - - FUND BALANCE,BEGINNING 191,555 87,726 25,977 15,593 15,593 15,593 FUND BALANCE,ENDING 87,726 25,977 15,593 15,593 15,593 15,593 FUND BALANCE,ENDNG(Unassigned) $ 87,726 $ 25,977 $ 15,593 $ 15,593 $ 15,593 $ 15,593 $ Adopted Amended Proposed Variance Audited Audited Audited Budget Budget Budget Amended to FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 18/19 FY 19/20 Proposed EXPENDITURES BY OBJECT CODE 61XX-Payroll&Related Items $ 145,708 $ 188,356 $ 143,758 $ 104,000 $ 228,535 $ 279,871 $ 51,336 62XX-Contracted Services 34,933 33,541 32,796 - 31,414 38,471 7,057 63XX-Supplies&Materials 198,514 67,112 303,117 243,528 88,681 108,601 19,920 64XX-Other Operating 117,502 156,844 59,693 6,000 51,712 63,329 11,617 Total Expenditures $ 496,657 $ 445,853 $ 539,365 $ 353,528 $ 400,342 $ 490,272 $ 89,930 70 MUNICIPAL DEBT SERVICE The Town of Westlake owns the land on which the Academy is located,and including all facilities associated with the school. The Town has issued approximately$30M in debt to construct campus facilities and is responsible for debt service payments associated with Westlake Academy's capital infrastructure. The Town's Debt Service Fund is used to manage debt service payments,and Academy debt is accounted for in the annual municipal budget. Average annual debt service payments for Academy facilities and infrastructure total approximately$1.835M, and are funded primarily by municipal sales and property tax receipts. Academy related debt is over 75%of the Town's debt burden. However, the school is also considered the Town's primary economic development tool. FY 19/20 debt service payments related to the construction of Westlake Academy facilities include: Amount Series Fund � Debt Service Type Bond Type $ 880,150 Series 2011 300 General Obligation Refunding Bonds Refunding of 200212003 451,620 Series 2013 300 Certificates of Obligation Westlake Academy Expansion 171,465 Series 2013 301 General Obligation Refunding Bonds Refunding of 2008 70,120 Series 2014 300 General Obligation Refunding Bonds Refunding of 2003 261,825 Series 2017 300 General Obligation Refunding Bonds Refunding of 2007(orig 2002) $ 1,835,180 TOTAL DEBT For more information, see the Town of Westlake Municipal Budget, available online at www.westlake-tx.org. THE TOWN OF WESTLAKE BOND RATING Standard & Poor's Ratings Services, a division of the McGraw-Hill Inc., increased the Town's rating from 4,JSTAN DAPD & POO R'S AA+to AAA/stable during FY 2016/17, which has continued through today. RATINGS SERVICES Below is an excerpt from Standards and Poor's rating letter: • Very strong economy, with access to a broad and diverse metropolitan statistical area(MSA)but a concentrated local tax base; • Strong management, with good financial policies and practices under our Financial Management Assessment methodology; • Strong budgetary performance, with operating surpluses in the general fund and at the total governmental fund level in fiscal 2015; • Very strong budgetary flexibility with a high available fund balance in fiscal 2015 of 100%of operating expenditures; • Very strong liquidity, with total government available cash at 81.7%of total governmental fund expenditures and 7.4x governmental debt service, and access to external liquidity that we consider strong, • Weak debt and contingent liability position, with debt service carrying charges at 11%of expenditures and net direct debt that is 99%of total governmental fund revenue;and • Strong institutional framework score. 71 CAPITAL IMPROVEMENT PROJECTS Academy related capital improvement projects are included in the Town Capital Improvement Plan and guided by the adopted Facility Master Plan, which can be viewed at www.westlake-tx.org or at www.westlakeacademy.org. Municipal Fund 412 is used for capital projects for Westlake Academy. Westlake Academy was originally designed and built to serve approximately 675 students; expansions in 2009 and 2014 have raised capacity to over 900 students. With the addition of almost 41 students since FY 19/20, facilities at the school are projected to be at near capacity this year. Over the last several fiscal years the Academy has also increased course offerings in several areas, including foreign languages,technology, and science. Expansion of services has been driven by increased enrollment, increase of residential growth in Westlake. academic needs of the students, and the IB curriculum, all of which place unique demands on staff and resources. Growth is directed by the Board of Trustees Facility Master Plan,which was adopted in Nov. 2012 and developed to provide a clear understanding of future growth needs at the Academy. Since it has been almost six years since the current WA master plan 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 short and long term needs of Westlake Academy and fit into the short and long capital projects for the Town. The FY 18/19 municipal budget for Fund 412,the amount of$85,000 was approved to hire a consultant to review the 2012 master plan.The consultant fees included the following; • 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 �Y projects via a process that considers medium and long-range facility planning within the context of both reviewing the existing "� ~ ' 3 Campus Facility Master Plan and any effort to re-visit and update that Plan, and • Creating an intersection and reconciliation of ��� a d 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. • Get input from staff, teachers and community stakeholders • Develop guiding principles and held community engagement meeting. • Review what impact the growth of the Town would have on the Academy campus facilities. • Identify cost and phasing. • The final plan will be present to the Town Council in the fall 2019 for their review and approval. 72 i :arn 11i4iba e 4 nlevi l"Onal f Ma�jil 74 PERSONNEL STAFFING & PAYROLL OVERVIEW Given the funding constraints we are facing, accurate expenditure projections are more important than ever. Since salaries make up the greatest portion of the expenditure budget, it is logical to apply forecasting techniques that can provide a true picture of where payroll dollars are headed. Personnel staffing levels for Westlake Academy are presented in full-time equivalents (FTE) positions. For example, a position staffed for 40 hours per week for 52 weeks per year(2,080 hours) equals one full-time equivalent position. An FTE position of.50 refers to a position that is funded for 1,040 hours per year(2,080 x .50). The personnel count includes vacant positions. PAYROLL AND RELATED COSTS (GENERAL FUND ONLY) FY 18/19 FY 19/20 Change Change Amended Proposed Amount Percent Payroll Wages $5,741,919 $ 6,358,884 $ 616,965 10.745% Social Security/Medicare 87,970 96,658 8,688 9.876% Health Insurance 288,916 323,721 34,805 12.047% Workers' Compensation 27,600 27,654 54 0.197% TRS On-Behalf 415,563 469,279 53,716 12.926% Unemployment Taxes 5,382 1,563 (3,819) -70.953% Retirement (TRS) 136,939 134,787 (2,152) -1.572% GRAND TOTAL $6,704,289 $ 7,412,546 $708,257 10.564% EMPLOYEE POSITIONS BY TYPE FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 Employee Type Actual Actual Actual Actual Proposed Chang Principals 4.50 4.50 4.50 4.75 4.75 - Coordinators 4.50 4.50 3.50 4.25 4.58 0.33 Primary 27.00 27.00 27.00 26.5 27.50 1.00 Secondary 32.06 32.55 34.26 34.92 37.55 2.63 Support 15.50 15.00 14.00 14.00 14.00 - Specialist 6.25 6.00 5.00 4.75 5.25 .50 WA Foundation 1.50 1.50 1.50 1.50 1.50 Facilities 2.00 2.00 2.00 2.00 1 4.00 2.00 Technology 2.00 2.00 2.00 2.00 2.00 67 101.13 Total Teachers 65.31 65.55 66.26 1 70.3 4.13 75 PERSONNEL STAFFING & PAYROLL OVERVIEW The following charts break down the number of employees by job function (Instructional,Administration and Support). Employee growth has been driven by Academy expansions as the school matured into a full K-12 campus. Defined Employee Groups by FTE ■ Instructional Administration ■ Support 100 _ 19.5 18 20 2� 75 17 37 11 10.5 9.5 10.5 10.5 9.5 50 9 25 59.51 65.31 65.55 66.26 66.25 70.5 48.31 0 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 Estimate Proposed Annual Position Summary 90.21 95.81 95.05 93.76 94.75 101 70.57 74.68 FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 Estimated Proposed 76 PERSONNEL STAFFING & PAYROLL OVERVIEW PERSONNEL POSITION SUMMARY Proposed1w 15/16 16/17 17/18 FY 18/19 FY 19/20 Positions Actual Actual Actual Actual Classes Served K-12 K-12 K-12 K-12 K-12 Executive Director 1.00 1.00 1.00 1.00 1.00 - Primary Principal 1.00 1.00 1.00 1.00 1.00 - Asst Primary Principal - - 1.00 1.00 1.00 - MYP Principal 1.00 1.00 .50 .50 .50 - Asst MYP Principal 1.00 1.00 - .37 .37 - Secondary(DP) Principal 0.50 0.50 .50 .50 .50 - Asst Secondary Principal - - 0.50 .38 .38 - Principal Staffing 4.50 4.50 4.50 4.75 4.75 - DP Coordinator 0.50 O.SO O.SO 0.50 0.50 - MYP Academic Dean 1.00 1.00 - - - - MYP Coordinator 1.00 1.00 O.SO 0.50 0.50 - PYP Coordinator 1.00 1.00 1.00 1.00 1.00 - CTE Coordinator - - 0.50 0.25 0.33 0.08 Student Services Coordinator 1.00 1.00 0.50 0.25 0.50 0.25 Compliance Coordinator - - - 0.25 0.25 - Athletic Director - - 0.50 0.50 0.50 - Alumni/Communications Specialist - - - 1.00 1.00 - Coordinator Staffing 4.50 4.50 3.50 4.25 4.58 0.33 Primary- Kindergarten 3.00 3.00 3.00 3.00 3.00 - Primary-Grade 1 3.00 3.00 3.00 3.00 3.00 - Primary-Grade 2 3.00 3.00 3.00 3.00 3.00 - Primary-Grade 3 3.00 3.00 3.00 3.00 3.00 - Primary-Grade 4 3.00 3.00 3.00 3.00 3.00 - Primary-Grade 5 3.00 3.00 3.00 3.00 3.00 - Primary-Art 1.00 1.00 1.00 1.00 1.00 - Primary-Counselor 1.00 1.00 1.00 1.00 1.00 - Primary- Math 1.00 1.00 1.00 1.00 1.00 - Primary- Music 1.00 1.00 1.00 1.00 1.00 - Primary- PE 2.00 2.00 2.00 2.00 2.00 - Primary- Reading Specialist 1.00 1.00 1.00 1.00 1.00 - Primary-Spanish 2.00 2.00 2.00 1.50 1.50 - Primary Interventionist - - - - 1.00 1.00 Primary Staffing 27.00 27.00 27.00 26.50 27.50 1.00 Secondary-Art 2.32 2.16 1.67 1.50 1.66 0.16 Secondary- Business Management - 0.50 1.00 0.25 0.33 0.08 Secondary-Counselor 1.00 1.30 2.00 2.00 3.00 1.00 Secondary- Economics 1.00 1.00 1.00 1.00 0.83 (0.17) Secondary- English 3.50 3.50 3.50 3.84 5.00 1.16 Secondary- Foreign Language 4.32 4.00 4.17 5.00 5.00 - Secondary-Grade 6 3.00 3.00 3.00 - - - 77 PERSONNEL STAFFING & PAYROLL OVERVIEW Secondary- Humanities 3.92 4.25 3.92 4.00 4.58 0.58 Secondary- Math 5.50 5.50 5.67 5.34 6.32 0.98 Secondary- PE 2.00 2.00 2.00 2.00 2.00 - Secondary- Performing A&D 1.00 1.00 1.00 1.00 1.00 - Secondary- Personal Project 0.50 0.50 0.50 0.50 - (0.50) Secondary-Science 4.00 3.84 4.33 5.50 5.50 - Secondary-CTE/STEM - - 0.50 2.99 2.00 (0.99) Secondary-Librarian - - - - 0.33 0.33 Secondary-Theater Arts - - - - - - Secondary Staffing 32.06 32.55 34.26 34.92 37.55 2.63 Teaching Aides 8.50 8.00 7.00 7.00 7.00 - Librarian/Aide 1.00 1.00 1.00 1.00 1.00 - Nurse 1.00 1.00 1.00 1.00 1.00 - Office Aide 4.00 4.00 4.00 4.00 4.00 - Registrar 1.00 1.00 1.00 1.00 1.00 - Director of Student Life - - - - - - Director of Curriculum - - - - - - Study Hall/Tutor - - - - - - Support Staffing 15.50 15.00 14.00 14.00 14.00 - Diagnostician/ Literacy - 1.00 1.00 1.00 0.50 (0.50) Occupational Therapist - - - 0.25 0.25 IT Integration 1.00 1.00 1.00 0.50 0.50 - Special Education 3.25 3.00 3.00 3.00 3.50 0.50 Speech 1.00 - - - 0.50 0.50 Strings Staff 1.00 1.00 - - - - Specialist Staffing 6.25 6.00 5.00 4.75 5.25 0.50 WAF Director 1.00 1.00 1.00 1.00 1.00 - WAF Office Aide 0.50 0.50 0.50 0.50 0.50 - Foundation Staffing 1.50 1.50 1.50 1.50 1.50 - Facilities Supervisor - - - - 1.00 1.00 Facilities Technician 1.00 2.00 2.00 2.00 1.00 (1.00) Janitors - - - - 2.00 2.00 Facilities Day Porter 1 - - - - - Facilities Staffing 2.00 2.00 2.00 2.00 4.00 2.00 IT Coordinator 1.00 1.00 1.00 1.00 1.00 - IT Tech 1.00 1.00 1.00 1.00 1.00 IT Dept Staffing 2.00 2.00 2.00 2.00 2.00 - Total Positions 78 PERSONNEL STAFFING & PAYROLL OVERVIEW Fair Labor Standards Act(FLSA) The Fair Labor Standards Act established minimum wage, overtime, recordkeeping, and child labor standards and applies to all full-time and part-time employees. As amended in 1985,the FLSA provides the option for compensatory time in lieu of overtime compensation for non-exempt employees. Executive, administrative, and professional employees meeting Department of Labor exemption guidelines are exempt from FLSA overtime requirements. The Town will comply with the FLSA for all employees. Non-Exempt Positions All non-exempt(hourly) positions are eligible for overtime compensation. Bi-weekly wages are based on a 40- hour work week(2,080 hours per year), equaling one full-time equivalent(FTE) position. There are 26 pay periods per year. Exempt Positions Exempt (salaried) positions are not eligible for overtime compensation. Salary amounts are not calculated or based on the number of hours worked. Exempt positions include managers and directors, and classifications are determined by Department of Labor guidelines. Vacancy Adiustments Not all positions will be filled 52 weeks per year, and so these expected vacancies are addressed in the salary budgeting process. 1. Start Dates- Expected start dates for open positions may vary. Keeping track of those assumptions is important because a large dollar variance may result when an actual start date differs from the budgeted date. 2. Attrition (Planned Retirements) - Budget consideration should be given for those positions where employees have indicated specific retirement dates. Payouts need to be budgeted. 3. Impact of Inflation- Inflation can have a significant impact on payroll forecasting. Cost-of-living adjustments often are used when forecasting personnel costs.The Consumer Price Index(CPI), a broad measure of consumer inflation, is the cost-of-living index used most often for determining salary increases.The U.S. Bureau of Labor Statistics' Employment Cost Index might be a better index for this purpose, as it measures the change in the cost of labor,free from the influence of employment shifts among occupations and industries. 4. Seasonal and Temporary Positions-Some divisions or jurisdictions use part-time or seasonal employees. 5. Other Considerations-Some governments make more use of overtime as an option instead of hiring fulltime workers.The use of retired employees for contractual services is another alternative to adding headcount. 79 Westlake Academy Organizational Chart This organizational BOARD OF chart is a visual depiction of the E ecutive Director V.A.Foundation way work is distributed within stant Westlake Academy DIRECTORWESTLAKE ACADEMY EXECUTIVE Primari Princi I Seco dary p SPED Coordi=6� Principal Primary Assistant SPED Faculty II =Principal ant Principal and Staff Primary Curriculum Athletic Dlr. x Registrar Coordinator Student Life Coor icy n Administrative Staff Primary Counselor Technolo&y.. Coordinator Primary Faculty MYP/DP Curriculum and Staff Coordinators 1 Librarian Heads of Department Grade Level Team Leads This chart is meant to be a Ser ndaryCounselor tool to help enhance our I College Counselor working relationship with our customers, students and MYP/�Faculty an stake-holders, and to clear channels of communications to better accomplish our goals and objectives. 80 BOARD OF TRUSTEES Westlake Academy is governed by a President and a five-member Board of Trustees. Each of the members is elected for a two-year term, and members currently serve on the Town Council for the Town of Westlake. The Board of Trustees establishes school policy, approves the Academy's annual operating budget, and serves as the legislative body of the Academy. • Laura Wheat, President Term expires May 2020 • Alesa Belvedere Term expires May 2020 • Michael Barrett Term expires May 2020 • Carol Langdon Term expires May 2021 • Rick Rennhack Term expires May 2021 • Greg Goble Term expires May 2021 The Board holds regular meetings on one Monday of each month.These meetings typically begin with a work shop at 5 p.m. and the regular meeting follows at 6 p.m. All meetings are held at Westlake Town Hall, 1500 Solana Blvd, Bldg 7 in the Council Chambers/Municipal Courtroom. T H E T D W H O F WESTLAKE DISTINCTIVE BY DESIGN 81 WESTLAKE ACADEMY LEADERSHIP TEAM *AMANDA DEGAN DR. MECHELLE BRYSON SUPERINTENDENT OF SCHOOLS EXECUTIVE DIRECTOR *Noah Simon Alan Burt Deputy Director of Athletics Town Manager Student Life Coordinator *Jarrod Greenwood Rod Harding Assistant Town Manager Primary (PYP) Principal *Debbie Piper Beckie Paquin Director of Finance Primary (PYP) Assistant Principal *Troy Meyer Alison Schneider Director of Facilities PYP Coordinator & Public Works Primary Curriculum Coordinator *Jason Power Director of Stacy Stoyanoff Information Technology Secondary (MYP/DP) Principal *Ginger Awtry Jennifer Furnish Director of Communications Secondary Assistant Principal & Community Affairs TEA/Charter Compliance Coordinator *Todd Wood Terri Watson Director of Human Resources & MYP Coordinator Administrative Services Secondary Curriculum Coordinator Dr. Shelly Myers Dr. James Owen Executive Director of the WAF DP Coordinator & Director of Development Secondary Curriculum Coordinator *Asterisk denotes shared services �� 4 i� personnel between the academic and municipal service teams of the Town of Westlake. 82 ORGANIZATIONAL STRUCTURE MUNICIPAL OVERSIGHT Westlake Academy is a municipally owned, open enrollment K-12 charter school that is accredited by the Texas Education Agency. • The Academy is governed by a six-member Board of Trustees that also serves as the Town Council for the Town of Westlake. • The Board of Trustees appoints a Superintendent to oversee the Academy's management and operations. The Superintendent also serves as Westlake's Town Manager. • The Academy's organizational structure is based on research into management of municipally owned charter schools. • The current structure was adopted by the Board in Resolution 09-23 on December 7, 2009. The Superintendent is responsible for the implementation of the Board's policy agenda for Westlake Academy, facilitating the Board's strategic plan,formulating policy recommendations for Board consideration, and providing managerial oversight of the Academy's budget administration, finances, and budget preparation. Town Manager/ Executing the Board of Trustees adopted policies and hiring and Superintendent managing all employees and department directors Assistant Town Supporting the Town Manager/Superintendent in his assigned Manager/ duties, overseeing departmental directors and working on special Superintendent projects as assigned Financial oversight of accounts payable, accounts receivable, payroll, Finance general ledger,journal entries, capital projects,fixed assets, Department depreciation; revenues, expenditures, assets, liabilities, and coordinating the annual budget and audit processes for both Municipal and Academic. Human Resource Managing personnel needs for both the Municipal and Academic Department staff The Academy's Superintendent oversees the Westlake Academy Executive Leadership Team which is charged with the responsibility of managing the school's on-going academic and extracurricular operations. Each principal is responsible, with advisement from the Superintendent,for selection and evaluation of the faculty and staff involved in providing their Programme's academic services. 83 ORGANIZATIONAL STRUCTURE ACADEMIC MANAGEMENT EXECUTIVE DIRECTOR • The Executive Director is the instructional leader for the whole school as well as administrative head. • This position is responsible for implementing board policies and direction from the Superintendent, and heads the instructional leadership team (ILT) which focuses on whole school issues. PRIMARY YEARS PRINCIPAL (PYP) • The Primary Years Principal is the instructional leader for the Primary Years Primary Ye Programme (PYP). — • The PYP is a curriculum framework for children aged 3-12 that prepares - students for the intellectual challenges and focuses on the development of the whole child as an inquirer, in and beyond the classroom walls. • The PYP Principal is responsible for ensuring proper implementation of the IB curriculum, student achievement as well as recruiting, mentoring, and retaining talented faculty. • The Primary Years Principal is a member of the ILT. PRIMARY ASSISTANT PRINCIPAL • The PYP Assistant Principal is also an instructional leader for the PYP. • The PYP Assistant Principal supports the efforts of the Primary Principal in carrying out the duties of the programme. • The PYP Assistant Principal also supports the proper implementation of the IB curriculum, student achievement as well as supports the positive culture and climate of the programme. • The PYP Assistant Principal is a member of the ILT. PRIMARY YEARS CURRICULUM COORDINATOR • The PYP Curriculum Coordinator is primarily responsible for the vertical and horizontal articulation of curriculum. • The position supports the efforts of the Primary Principal in ensuring the proper implementation of the PYP IB curriculum. • The main responsibility is to work with staff to develop, maintain and review curriculum,while developing and delivering effective staff development to support the IB mission. • The PYP Curriculum Coordinator is a member of the ILT. SECONDARY PRINCIPAL (MYP & DP PRINCIPAL) • The Secondary Principal is the instructional leader for the Middle Years Programme (MYP) and the Diploma Programme (DP). MiddleYears • The MYP is a curriculum framework for children in grades six through ten , Programme that prepares students to make connections between their studies and the real world. It is designed to prepare students for the Diploma Programme. • The DP is a challenging two-year curriculum for students in grades 11 and 12 that provides an inquiry based, college preparatory education. • This position is responsible for ensuring proper implementation of the IB curriculum, student achievement as well as recruiting, mentoring, and retaining talented faculty. • The Secondary Principal is a member of the ILT. 84 ORGANIZATIONAL STRUCTURE ACADEMIC MANAGEMENT SECONDARY ASSISTANT PRINCIPAL • The Secondary Assistant Principal is also an instructional leader for the MYP and the DP. • The Secondary Assistant Principal supports the efforts of the Secondary Principal in carrying out the duties of the programme. • The Secondary Assistant Principal also supports the proper implementation of the IB curriculum, student achievement as well as supports the positive culture and climate of the programme. • The Secondary Assistant Principal is a member of the ILT. J@ —, Diploma SECONDARY (MYP) CURRICULUM COORDINATOR ■ ■ . mme • The MYP Curriculum Coordinator is primarily responsible for the vertical and horizontal articulation of curriculum and support the efforts of the Secondary Principal in ensuring the proper implementation of the MYP IB curriculum. • The main responsibility is to work with staff to develop, maintain and review curriculum,while developing and delivering effective staff development to support the IB mission. • The Secondary Curriculum Coordinators are members of the ILT. SECONDARY (DP) CURRICULUM COORDINATORS a ■• The Secondary Curriculum Coordinators are primarily responsible for theProgramme vertical and horizontal articulation of curriculum. • The positions support the efforts of the Secondary Principal in ensuring the proper implementation of the DP IB curriculum. • The main responsibility is to work with staff to develop, maintain and review curriculum,while developing and delivering effective staff development to support the IB mission. • The DP Curriculum Coordinators are members of the ILT. ATHLETIC DIRECTOR AND STUDENT LIFE COORDINATOR • The Athletic Director/Student Life Coordinator is primarily responsible for the development of the co-curricular and extra-curricular activities of the Academy. • The Athletic Director/Student Life Coordinator designs, implements and supports activities that build the student's leadership capacity and enriches their social and emotional growth. • The position interfaces with principals in scheduling events that enrich the learning environment. • The Athletic Director/Student Life Coordinator is a member of the ILT. DIRECTOR OF DEVELOPMENT • The Director of Development and Westlake Academy Foundation Executive Director is primarily responsible for the fundraising activities of the Academy. • The Director creates, implements, and manages donor activities, including the annual Westlake Academy Blacksmith Drive, Baja, Gallery Night, grant applications, and other Academy or Foundation related solicitations. • The Executive Director of the Education Foundation is a member of the ILT. 85 11i4iba e 4 nlevi l"Onal f Ma�jil 86 1 y ti k�ly � '�' i'.i•�v=v 11i4iba e 4 nlevi l"Onal f Ma�jil 88 INVESTMENT POLICY I. POLICY STATEMENT It is the policy of Westlake Academy (the "Academy")that the administration of its funds and the investment of those funds shall be handled as its highest public trust. Investments shall be made in a manner which will provide the maximum security of principal invested through limitations and diversification while meeting the daily cash flow needs of the Academy and conforming to all applicable state and Academy statutes governing the investment of public funds. The receipt of a market rate of return will be secondary to the requirements for safety and liquidity. It is the intent of the Academy to be in complete compliance with local law and the Texas Public Funds Investment Act(the "Act",Texas Government Code 2256). The earnings from investments will be used in a manner that best serves the public trust and interests of the Academy. II. SCOPE This Investment Policy applies to all the financial assets and funds held of the Academy. Any new funds created by the Academy will be managed under the provisions of this Policy unless specifically exempted by the Academy Board of Trustees and this Policy. III. OBJECTIVES AND STRATEGY It is the policy of the Academy that all funds shall be managed and invested with four primary objectives, listed in order of their priority: safety, liquidity, diversification and yield. These objectives encompass the following. • Safety of Principal -Safety of principal is the foremost objective of the Academy. Investments shall be undertaken in a manner that seeks to insure the preservation of capital in the overall portfolio.The suitability of each investment decision will be made on the basis of safety. • Liquidity-The Academy's investment portfolio will remain sufficiently liquid to enable it to meet all operating requirements which might be reasonably anticipated. Investment decisions will be based on cash flow analysis of anticipated expenditures. • Diversification - Diversification is required in the portfolio's composition. Diversification will include diversification by maturity and market sector and will include the use of a number of broker/dealers or banks for diversification and market coverage. Competitive bidding will be used on each sale or purchase. • Yield -The Academy's investment portfolio shall be designed with the objective of attaining a reasonable market yield, considering the Academy's risk constraints and cash flow needs. A reasonable market yield for the portfolio will be defined as the six-month (180 day) U.S.Treasury Bill which compares to the portfolio's maximum weighted average maturity of six months. 89 INVESTMENT POLICY The authorized investment purchased will be of the highest credit quality and marketability supporting the objectives of safety and liquidity. Securities,when not matched to a specific liability, will be short term to provide adequate liquidity. The portfolio shall be diversified to protect against market and credit risk in any one sector. The maximum weighted average maturity of the portfolio will be no more than 180 days and the maximum stated maturity of any security will not exceed two years. The funds are combined for investment purposes but the unique needs of all the funds in the portfolio are recognized and represented. Effective cash management is recognized as essential to good fiscal management. Cash management is defined as the process of managing monies to ensure maximum cash availability. The Academy shall maintain a cash management program which includes timely collection of accounts receivable, prudent investment, disbursement of payments within invoice terms and the management of banking services. IV. LEGAL LIMITATIONS, RESPONSIBILITIES AND AUTHORITY Specific investment parameters for the investment of public funds in Texas are stipulated in the Public Funds Investment Act, Chapter 2256,Texas Government Code, (the "Act"). The Act is attached as Exhibit A. The Public Funds Collateral Act, Chapter 2257,Texas Government Code, specifies collateral requirements for all public funds deposits. The Collateral Act is attached as Exhibit B. The Interlocal Cooperation Act, Chapter 791,Texas Government Code, authorizes local governments in Texas to participate in a Texas investment pool established thereunder. V. DELEGATION OF INVESTMENT AUTHORITY The Finance Director of the Town of Westlake, acting on behalf of the Board of Trustees, is designated as the Investment Officer of the Academy and is responsible for all investment management decisions and activities. The Board of Trustees is responsible for considering the quality and capability of staff, investment advisors, and consultants involved in investment management and procedures. All participants in the investment process shall seek to act responsibly as custodians of the public trust. The Investment Officer shall develop and maintain written administrative procedures for the operation of the investment program which are consistent with this Investment Policy. Procedures will include safekeeping,wire transfers, banking services contracts, and other investment related activities. The Investment Officer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials and staff. The Investment Officer shall designate a staff person as a liaison/deputy in the event circumstances require timely action and the Investment Officer is not available. 90 INVESTMENT POLICY No officer or designee may engage in an investment transaction except as provided under the terms of this Policy and the procedures established by the Investment Officer and approved by the Superintendent. VI. PRUDENCE The standard of prudence to be used in the investment function shall be the "prudent person" standard and shall be applied in the context of managing the overall portfolio. This standard states: "Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the expected income to be derived." • Limitation of Personal Liability-The Investment Officer and those delegated investment authority, when acting in accordance with the written procedures and this Policy and in accord with the Prudent Person Rule, shall be relieved of personal liability in the management of the portfolio provided that deviations from expectations for a specific security's credit risk or market price change are reported in a timely manner and that appropriate action is taken to control adverse market effects. VII. INTERNAL CONTROLS The Investment Officer shall establish a system of written internal controls which will be reviewed annually with the independent auditor of the Academy. The controls shall be designed to prevent loss of public funds due to fraud, employee error, and misrepresentation by third parties, or imprudent actions by employees of the Academy. VIII. AUTHORIZED INVESTMENTS Acceptable investments under this policy shall be limited to the instruments listed below. The choice of high-grade government investments and high-grade, money market instruments are designed to assure the marketability of those investments should liquidity needs arise. • Obligations of the United States Government, its agencies and instrumentalities, not to exceed two (2)years to stated maturity and excluding mortgage backed securities; • Fully insured or collateralized certificates of deposit from a bank doing business in the State of Texas and under the terms of a written depository agreement with that bank, not to exceed one year to stated maturity; • No-load, SEC registered money market mutual funds. No more than 80%of the entity's monthly average balance may be invested in money market funds and; • Constant dollar,AAA-rated Texas Local Government Investment Pools as defined by the Public Funds Investment Act. 91 INVESTMENT POLICY If additional types of securities are approved for investment by public funds by state statute,they will not be eligible for investment until this Policy has been amended and the amended version adopted by the Board of Aldermen. • Delivery versus Payment-All investment security transactions shall be conducted on a delivery versus payment (DVP) basis to assure that the Academy has control of its assets and/or funds at all times. IX. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS Securities broker/dealers may be primary or regional broker/dealers and will meet other criteria as determined by the Investment Officer including state registration and completion of an Academy Broker/Dealer questionnaire (attached as Exhibit D). The following criteria must be met by authorized firms. • annual provision of an audited financial statement, • proof of certification by the National Association of Securities Dealers (NASD) • proof of current registration with the Texas State Securities Commission, and • completion of the Academy's broker/dealer questionnaire. Every bank and broker/dealer with whom the Academy transacts business will be provided a copy of this Investment Policy to assure that they are familiar with the goals and objectives of the investment program. The firm will be required to return a signed copy of the Certification Form certifying that the Policy has been received and reviewed and only those securities approved by the Policy will be sold to the Academy. X. DIVERSIFICATION AND MATURITY LIMITATIONS It is the policy of the Academy to diversify its investment portfolio. Invested funds shall be diversified to minimize risk or loss resulting from over-concentration of assets in a specific maturity, specific issuer, or specific class of securities. Diversification strategies shall be established and periodically reviewed. XI. SAFEKEEPING AND COLLATERALIZATION The laws of the State and prudent treasury management require that all purchased securities be bought on a delivery versus payment (DVP) basis and be held in safekeeping by either an approved, independent third party financial institution or the Academy's designated depository. Securities Owned by the Academy-All safekeeping arrangements shall be approved by the Investment Officer and an agreement of the terms executed in writing.The safekeeping bank may not be within the same holding company as the bank from which the securities are purchased.The custodian shall be required to issue original safekeeping receipts to the Academy listing each specific security, rate, description, maturity, cusip number, and other pertinent information. Collateral -Collateral ization shall be required on all bank time and demand deposits for principal and accrued interest amounts over the FDIC insurance coverage of$100,000 (by tax identification number). In order to anticipate market changes and provide a level of additional security for all funds, collateral with a market value equal to 102%of the total deposits are required. The pledging bank will always be made contractually liable for monitoring and maintaining the 92 INVESTMENT POLICY collateral levels . All collateral will be held by an independent third-party bank outside the holding company of the bank, pledged to the Academy. Authorized collateral will include only: • Obligations of the US Government, its agencies and instrumentalities to include mortgage backed securities which pass the bank test, • Municipal obligations rated at least A by two nationally recognized rating agencies. The custodian shall be required to provide original safekeeping receipts clearly marked that the security is pledged to the Academy. XII. REPORTING The Investment Officer shall submit quarterly reports to the Board of Trustees containing sufficient information to permit an informed outside reader to evaluate the performance of the investment program and in full compliance with the Act. At a minimum the report shall contain: • Beginning and ending market value of the portfolio by market sector and total portfolio • Beginning and ending book value of the portfolio by market sector and total portfolio • Change in market value during the period • Detail on each asset(book, market, description, par ad maturity date) • Earnings for the period • Overall weighted average maturity of the portfolio The report will be prepared jointly by all involved in the investment activity and be signed by the Investment Officer. It will contain all elements as required by the Act and be signed by the Investment Officers as in compliance with the Act and this Policy. Market prices for assignment of market values will be obtained from an independent source. XIII. DEPOSITORIES The Academy will designate one banking institution through a competitive process as its central banking services provider at least every five years. This institution will be used for normal banking services including disbursements, deposits, and safekeeping of Academy owned securities. Other banking institutions from which the Academy may purchase only certificates of deposit will also be designated as a depository. All banking arrangements will be in written form in accordance with FIRREA which requires a resolution of approval of the agreement by the Bank Council or Bank Loan Committee. XIV. INVESTMENT POLICY ADOPTION BY BOARD The Academy's Investment Policy and its incorporated strategies shall be adopted by resolution annually by the Board.The approval and any changes made to the Policy will be noted in the approving resolution. 93 FISCAL AND BUDGETARY POLICIES I. STATEMENT OF PURPOSE The broader intent of the following Fiscal and Budgetary Policy Statements is to enable the Academy to achieve a long-term stable and positive financial condition. The watchwords of the Academy's financial management include integrity, prudent, stewardship, planning, accountability, and full disclosure. The more specific purpose is to provide guidelines to the Finance Director in planning and directing the Academy's day-to-day financial affairs and in developing recommendations to the Academy Superintendent or his designate and Academy Board of Trustees. The scope of these policies generally span, among other issues, accounting, purchasing, auditing, financial reporting, internal controls, operating budgeting, revenue management, cash and investment management, expenditure control, asset management, debt management, and planning concepts,to: • Present fairly and with full disclosure the financial position and results of the financial operations of the Academy in conformity with generally accepted accounting principles (GAAP), and • Determine and demonstrate compliance with finance related legal and contractual issues in accordance with provisions of the Texas Local Government Code and other pertinent legal documents and mandates. The Academy Board of Trustees will annually review and approve the Fiscal and Budgetary Policy Statements as part of the budget process. II. SUMMARY OF POLICY INTENDED OUTCOMES This policy framework mandates pursuit of the following fiscal objectives: 1. Operating Budget: Prepare conservatively, estimate revenues, present and adopt the Academy's annual operating plan. 2. Revenues Management: Design, maintain and administer a revenue system that will assure a reliable, equitable, diversified and sufficient revenue stream to support desired Academy services. 3. Expenditure Control: Identify priority services, establish appropriate service levels and administer the expenditure of available resources necessary to assure fiscal stability and the effective and efficient delivery of services. 4. Fund Balance: Maintain the fund balance of the various operating funds at levels sufficient to protect the Academy's creditworthiness as well as its financial position from emergencies. 5. Intergovernmental Relationships: Coordinate efforts with other agencies to achieve common policy objectives, share the cost of providing governmental services on an equitable basis and support favorable legislation at the State and Federal level. 6. Grants: Seek, apply for and effectively administer Federal, State, and foundation grants-in-aid which address the Academy's current priorities and policy objectives. 7. Fiscal Monitoring: Prepare and present regular reports that analyze, evaluate, and forecast the Academy's financial performance and economic condition. 94 FISCAL AND BUDGETARY POLICIES 8. Financial Consultants: With available resources, seek out and employ the assistance of qualified financial advisors and consultants in the management and administration of the Academy's financial functions. 9. Accounting,Auditing, and Financial Reporting: Comply with prevailing Federal, State and local statues and regulations. Conform to generally accepted accounting principles as promulgated by the Government Accounting Standards Board (GASB),the American Institute of Certified Public Accountants (AICPA), and the Government Finance Officers Association (GFOA). 10. Internal Controls:To establish and maintain an internal control structure designed to provide reasonable assurances that the Academy's assets are safeguarded and that the possibilities for material errors in the Academy's financial records are minimized. III. OPERATING BUDGET 1. Preparation—Budgeting is an essential element of the financial planning, control, and evaluation process. The "operating budget" is the Academy's annual financial operating plan related to educational service instructional costs. The Academy operating budget is legally required to include the Academy's General, Debt Service, and Food Service Funds. Currently, Westlake Academy only has one fund, the General Fund, which must be legally adopted annually. The Academy budgets the Special Revenue Funds for informational purposes only. Information to be prepared includes documentation related to Service Level Adjustments (SLAs) for increases to existing service levels or additional services, position control schedules, general and administrative cost implications, etc.will be submitted and reviewed during the budget process. SLA's related to new position requests will include an assessment of their impact on additional internal services necessary to support these positions as it relates to General &Administrative (G&A) charges in the Academy budget (subject to funding availability)to fund these costs. A budget preparation calendar and timetable will be established and followed in accordance with State law. 2. Revenue Estimates for Budgeting-To maintain a stable level of services,the Academy shall use a conservative,objective,and analytical approach when preparing revenue estimates.The process shall include analysis of probable economic changes and their impacts on revenues, number of students, and trends in revenues. It will also include an assessment of the State legislative environment related to public charter school funding levels. This approach should reduce the likelihood of actual revenues falling short of budget estimates during the year and should avoid mid-year service reductions. 3. Balanced Budget—A balanced budget is a budget with total expenditures not exceeding total revenues and monies available in the fund balance within an individual fund. 4. Proposed Budget Content and Process—A proposed budget shall be prepared by the Superintendent or his designate with the participation of the Academy's Leadership Team, Finance Director and Academy staff, and then submitted to the Superintendent for review. Following the Superintendent's review,the proposed budget will be presented to the Board for its consideration. 95 FISCAL AND BUDGETARY POLICIES The proposed budget shall include five basic segments for review and evaluation: • personnel costs, • base budget for operations and maintenance costs, • service level adjustments for increases of existing service levels or additional services, • revenues, and • General Administrative (G&A) costs. The proposed budget review process shall include Board of Trustees review of each of the five segments of the proposed budget and a public hearing to allow for citizen participation in the budget preparation process. Concurrent with the Academy budget preparation,Town staff will identify and provide to the Board all direct Academy expenses contained in the Town's municipal budget. The proposed budget process shall allow sufficient time to provide review as well as address policy and fiscal issues by the Board of Trustees. A copy of the proposed budget shall be filed with the Town Secretary when it is submitted to the Board of Trustees as well as placed on the Academy's website. 5. Budget Adoption- Upon the determination and presentation of the final iteration of the proposed budget document as established by the Board of Trustees, a public hearing will be set and publicized. The Board will subsequently consider a resolution which, if adopted, such budget becomes the Academy's Annual Budget. The adopted budget will be effective for the fiscal year beginning September 1. 6. Budget Amendments—The Superintendent or his designate and Finance Department will monitor all financial operations. A school district must amend the official budget before exceeding a functional expenditure category, i.e., instruction, administration, etc. in the total budget.The budget team will decide whether to proceed with the budget amendment and, if so,will then present the request to the Board of Trustees. If the Board decides a budget amendment is necessary,the amendment is adopted in resolution format and the necessary budgetary changes are then made. 7. Planning—The budget process will be coordinated to identify major policy issues for the Board of Trustees by integrating it into the Board's overall strategic planning process for the Academy. 8. Reporting- Monthly financial reports will be prepared by the Finance Department and distributed to the Superintendent or his designate. Information obtained from financial reports and other operating reports is to be used by personnel to monitor and control the budget. Summary financial reports will be presented to the Board quarterly. IV. REVENUE MANAGEMENT A. REVENUE DESIGN PARAMETERS. The Academy will strive for the following optimum characteristics in its revenue system: 1. Simplicity-The Academy,where possible and without sacrificing accuracy, will strive to keep the revenue system simple to reduce costs, achieve transparency, and increase parent and citizen understanding of Academy revenue sources. 96 FISCAL AND BUDGETARY POLICIES 2. Certainty-A thorough knowledge and understanding of revenue sources increases the reliability of the revenue system. 3. Administration -The benefits of a revenue source will exceed the cost of administering that revenue. Every effort will be made for the cost of administration to be reviewed annually for cost effectiveness as a part of the indirect cost and cost of service analysis. 4. Equity-The Academy shall make every effort to maintain equity in its revenue system: i.e. the Academy shall seek to minimize or eliminate all forms of subsidization between entities. 5. Adequacy, Diversification and Stability—To the extent practical,the Academy shall attempt to achieve a balance in its revenue system. The Academy shall also strive to maintain a balanced and diversified revenue system to protect the Academy from fluctuations in any one source due to changes in local economic conditions which adversely impact that source. B. REVENUE CLASSIFICATION AND SOURCES. The revenues received by Westlake Academy are classified into one of three broad categories: Federal, State or Local and come from the following sources: 1. State Education Funding 2. State and Federal Grants 3. General Donations—The Academy recognizes that private donations comprise a significant part of the Westlake Academy budget. All funds received will become part of the budget and be subject to appropriation for Academy general operations. • Westlake Academy Foundation • House of Commons • Westlake Academy Athletic Club • Local Merchants • Specific Purpose Donations—Funds donated for a specific purpose C. REVENUE MONITORING. Revenues as they are received will be regularly compared to budgeted revenues and variances will be investigated. This process will be summarized in the appropriate budget report. V. EXPENDITURE CONTROL 1. Appropriations—The point of budgetary control is at the function level in the General Fund and Special Revenue Funds. When budget adjustments among functions are necessary,they must be approved by the Board of Trustees. 2. Current Funding Basis-The Academy shall operate on a current funding basis. Expenditures shall be budgeted and controlled so as not to exceed current revenues plus the planned use of fund balance accumulated through prior year savings. (The use of fund balance shall be guided by the Fund Balance/Retained Earnings Policy Statements.) 3. Avoidance of Operating Deficits-The Academy shall take immediate corrective actions if at any time during the fiscal year expenditure and revenue re-estimates are such that an operating deficit (i.e., projected expenditures more than projected revenues) is projected at year-end. Corrective actions can include a hiring freeze, expenditure reductions, or use of fund balance within the Fund. 97 FISCAL AND BUDGETARY POLICIES Use of fund balance must be recommended by the Superintendent and approved by the Board of Trustees. • Expenditure deferrals into the following fiscal year, short-term loans, or use of one-time revenue sources shall be avoided to balance the budget. • All service level adjustments that result in increases to the operating budget must be aligned with offsetting increases in operating revenues (FSP, Local Sources, etc.). 4. Periodic Program Reviews-The Superintendent or his designate shall undertake periodic staff and third-party reviews of Academy programs for both efficiency and effectiveness.Where appropriate, privatization and contracting with other governmental agencies will be evaluated as alternative approaches to service delivery. Service delivery which is determined to be inefficient and/or ineffective shall be reduced in scope or eliminated. 5. General and Administrative (G&A)Charges—To the extent practical, an annual analysis of G&A charges will be performed and, if available, funding may be allocated at the Board's discretion. The analysis shall involve an objective consideration of the service demands currently being met by municipal staff to support Academy operations and a determination of factors that will continue to affect and increase the time needed for the performance of these services. For example, new Academy staff requires additional support staff time to perform tasks related to insurance, payroll, etc. Where feasible, G&A costs will be charged to all funds for services of indirect general overhead costs,which may include general administration, finance, facility use, personnel,technology, engineering, legal counsel, and other costs as deemed appropriate. If funding is not available,these costs will be shown below the line of the financial statement in the five-year financial forecast to promote transparency and provide the Board with a full cost accounting of services. The charges will be determined through an indirect cost allocation study following accepted practices and procedures. 6. Purchasing-The Academy shall make every effort to maximize any discounts offered by creditors/vendors. Staff shall also use purchasing cooperatives as well as competitive bidding in accordance with State law to attain the best possible price on goods and services. 7. Prompt Payment-All invoices will be paid within 30 days of receipt in accordance with the prompt payment requirements of State law. 8. Salary-The Academy shall strive to maintain competitive salary levels for faculty and staff. A salary survey will be conducted annually, sampling surrounding Independent School Districts and Charter Schools,to create a comparison. The Academy will strive to maintain salary levels within three percent (3%) of the median of surveyed schools. VI. FUND BALANCE 1. Fund Balance Reporting-The District shall report governmental fund balances per GASB 54 definitions in the balance sheet as follows: Non-spendable, Restricted, Committed, Assigned, and Unassigned. 98 FISCAL AND BUDGETARY POLICIES 2. General Fund Unassigned Fund Balance (General Fund Reserve)-The Academy shall strive to maintain the General Fund unassigned fund balance at 45 days of operation. 3. Use of Fund Balance- Fund Balance will be targeted to only be used with Board approval and can be only be used for the following: emergencies, non-recurring expenditures, such as technology/FF&E (furniture,fixtures and equipment), or major capital purchases that cannot be accommodated through current year savings. Should such use reduce the balance below the appropriate level set as the objective for that fund, recommendations will be made on how to restore it. 4. The Board of Trustees shall approve all commitments by formal action. The action to commit funds must occur prior to fiscal year-end,to report such commitments in the balance sheet of the respective period, even though the amount may be determined after fiscal year-end. A commitment can only be modified or removed by the same formal action.The Board of Trustees delegates the responsibility to assign funds to the Superintendent or his/her designee. The Board of Trustees shall have the authority to assign any number of funds. Assignments may occur after fiscal year-end. 5. The Board of Trustees will utilize funds in the following spending order: Restricted, Committed, Assigned, and Unassigned. VII. INTERGOVERNMENTAL RELATIONSHIPS 1. Inter-local Cooperation in Delivering Services-To promote the effective and efficient delivery of services,the Academy shall actively seek to work with other local entities in joint purchasing consortium, sharing facilities, sharing equitably the costs of service delivery, and developing joint programs to improve service to its students. 2. Legislative Program-The Academy shall cooperate with other entities to actively oppose any state or federal regulation or proposal that mandates additional Academy programs or services and does not provide the funding to implement them. Conversely, as appropriate, the Academy shall support legislative initiatives that provide additional funding. VIII. GRANTS 1. Grant Guidelines-The Academy shall apply, and facilitate the application by others, for only those grants that are consistent with the objectives and high priority needs previously identified by Academy Board of Trustees.The potential for incurring ongoing costs, to include the assumption of support for grant funded positions from local revenues, will be considered prior to applying for a grant. 2. Grant Review-All grant submittals shall be reviewed for their cash match requirements,their potential impact on the operating budget, and the extent to which they meet the Academy's policy objectives. If there are cash match requirements, the source of funding shall be identified prior to application. Staff will focus on one-time grants to avoid long-term implications related to additional expenditures in future years. 99 FISCAL AND BUDGETARY POLICIES 3. Grant Program Termination -The Academy shall terminate grant funded programs and associated positions when grant funds are no longer available unless alternate funding is identified and obtained. IX. FISCAL MONITORING 1. Financial Status and Performance Reports-Quarterly reports comparing expenditures and revenues to current budget, noting the status of fund balances to include dollar amounts and percentages, and outlining any remedial actions necessary to maintain the Academy's financial position shall be prepared for review by the Superintendent and the Board of Trustees. Student roster information will also be included in the quarter reports submitted to the Board of Trustees. 2. Compliance with Board Policy Statements-The Fiscal and Budgetary Policies will be reviewed annually by the Board of Trustees and updated, revised or refined as deemed necessary. Policy statements adopted by the Board of Trustees are guidelines, and occasionally, exceptions may be appropriate and required. However, exceptions to stated policies will be specifically identified, and the need for the exception will be documented and fully explained. X. FINANCIAL CONSULTANTS The Academy employs the assistance of qualified financial advisors and consultants as needed in the management and administration of the Academy's financial functions.These areas include but are not limited to investments, debt administration, financial accounting systems, program evaluation, and financial impact modeling. Advisors shall be selected on a competitive basis using objective questionnaires and requests for proposals based on the scope of the work to be performed. XI. ACCOUNTING, AUDITING, AND FINANCIAL REPORTING 1. The Academy strives to comply with prevailing local, state, and federal regulations relative to accounting, auditing, and financial reporting. Accounting practices and financial reporting shall conform to generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board (GASB),the American Institute of Certified Public Accountants, (AICPA), and the Government Finance Officers Association (GFOA).The Board shall select an independent firm of certified public accountants to perform an annual audit of all operations. Required Texas Education Agency(TEA) account coding will be used for all revenue and expenditure reporting. 2. Accounting-Currently,the Education Service Center(Region 11) books all revenues and expenditures, and prepares bank reconciliations. Academy staff is responsible for all coding and approval of expenditures and revenues. Documentation and coding of deposits are forwarded to the Town's Finance Department for review and preparation of deposit slips. Town's Finance Director and staff are responsible for review and transfer of invoices and other documentation to the Service Center for processing as well as the physical deposit of funds. It is the responsibility of the Superintendent or his designate and Academy staff to review the monthly reports for any discrepancies and report to the Town's Finance Director for analysis and re-class of questioned bookings, if appropriate. 100 FISCAL AND BUDGETARY POLICIES 3. External Auditing-Academy will be audited annually by outside independent accountants (auditors). The auditors must be a CPA firm and must demonstrate significant experience in the field of local government auditing. They must conduct the Academy's audit in accordance with generally accepted auditing standards. The auditors' report on Academy's financial statements will be completed within a timely period of the Academy's fiscal year-end. The auditor will jointly review the management letter with the Academy Board of Trustees, if necessary. In conjunction with this review,the Finance Director shall respond in writing to the Academy Board of Trustees regarding the auditor's Management Letter, addressing the issued contained therein. The Academy will not require auditor rotation, but will circulate request for proposal for audit services on a periodic basis as deemed appropriate. 4. Responsibility of Auditor to Academy Board of Trustees-The auditor is retained by and is accountable directly to the Academy Board of Trustees and will have access to direct communication with the Academy Board of Trustees if the Academy Staff is unresponsive to auditor recommendations or if the auditor considers such communication necessary to fulfill its legal and professional responsibilities. 5. Internal Financial Reporting-The Finance Department will prepare internal financial reports sufficient for management to plan, monitor, and control Academy's financial affairs. XII. INTERNAL CONTROLS 1. Written Procedures-Whenever possible, written procedures will be established and maintained by the Finance Director and utilized by all Academy personnel for all functions involving purchasing, cash handling and/or accounting throughout the Academy. These procedures will embrace the general concepts of fiscal responsibility set forth in this policy statement. 2. Academy Staff Responsibilities-The Superintendent or his designate, in consultation with the Finance Director, will be responsible for ensuring that appropriate internal controls are followed throughout the Academy,that all directives or internal controls are implemented, and that all independent auditor internal control recommendations are addressed. Staff will develop and periodically update written internal control procedures. XIII. ASSET MANAGEMENT 1. Investments—The Finance Director shall promptly invest all Academy funds with the depository bank in accordance with the provisions of the current Bank Depository Agreement or in any negotiable instrument authorized by the Academy Board of Trustees. The Academy Board of Trustees has formally approved a separate Investment Policy for Westlake Academy that meets the requirements of the Public Funds Investment Act (PFIA), Section 2256 of the Texas Local Government Code. The Academy's investment practices will be conducted in accordance with this policy.The Finance Director will issue quarterly reports on investment activity to the Academy Board of Trustees. 101 FISCAL AND BUDGETARY POLICIES 2. Cash Management-Academy's cash flow will be managed to maximize the cash available to invest. Such cash management will entail the centralization of cash collections,where feasible, including field trips, and other collection offices as appropriate. Periodic review of cash flow position will be performed to determine performance of cash management and conformance to investment policies. The underlying theme will be that idle cash will be invested with the intent to (1) safeguard assets, (2) maintain liquidity, and (3) maximize return. 3. Capital Assets and Inventory-Such assets will be reasonably safeguarded, properly accounted for and prudently insured. The capital assets inventory will be updated regularly. 4. Capital Assets—Currently all capital assets of Westlake Academy are owned and purchased by the Town of Westlake. In subsequent years, additional asset purchases may be paid with Westlake Academy funds. 5. Capitalization Criteria—For purposes of budgeting and accounting classification,the following criteria must be capitalized: ■ The asset is owned by Westlake Academy ■ The expected useful life of the asset must be longer than one year, or extend the life on an identifiable existing asset by more than one year ■ The original cost of the asset must be at least$5,000 ■ The asset must be tangible ■ On-going repairs and general maintenance are not capitalized ■ New Purchases—All costs associated with bringing the asset into working order will be capitalized as a part of the asset cost. This includes startup costs, engineering or consultant type fees as part of the asset cost once the decision or commitment to purchase the asset is made. The cost of land acquired should include all related costs associated with its purchase ■ Improvements and Replacement— Improvement will be capitalized when they extend the original life of an asset or when they make the asset more valuable than it was originally. The replacement of assets components will normally be expensed unless they are a significant nature and meet all the capitalization criteria. 6. Computer System/Data Security—The Academy shall provide security of its computer/network system and data files through physical and logical security systems that will include, but are not limited to: network user authentications,firewalls, content filtering, spam/virus protection, and redundant data backup. 102 RISK MANAGEMENT Westlake Academy is insured through the private market for property, liability, and workers' compensation coverage. • Bids for all insurance programs are obtained on an annual basis, and selection is based on price, quality of coverage, financial strength of carrier(s), and level of service provided by brokers. • Property and Workers' Compensation coverage is underwritten through Travelers Insurance. • General liability, auto, crime, and umbrella coverage is provided by Utica. The Academy also has obtained specialized policies for student accident and international travel. These policies are carefully selected to meet the needs of our operations and for the 2019-2020 school year. • Westlake Academy has a combined insurable property value of$48,516,000. • This is a blanket policy, inclusive of contents and business income coverage. • Three buses are insured on the automobile policy. • Student data indicates 910 students will be enrolled for the 2019-2020 school year, a 3.6% increase of 32 students from the prior year. Insurance Coverage Summary (September 1, 2019—August 31, 2020) Insurance Type Provider Amount Commercial Property Travelers $ 88,080 Workers Compensation Travelers 29,883 Crime Travelers 2,850 General Liability (Education Suite) Utica 14,429 Umbrella— Liability Utica 6,996 Business Auto * Utica 4,004 Student Accident Allen J. Flood 5,943 International Travel Chubb 2,000 $ 154,185 * It is anticipated that a fourth bus will be added in FY 2019-2020, and an additional pro-rated premium will be required upon delivery. This premium is not included in the amount shown above. 103 FUTURE POLICIES TO BE DISCUSSED & IMPLEMENTED Westlake Academy has several relevant financial policies to preserve and enhance the fiscal health of the Academy. We also identify acceptable and unacceptable courses of action, and provide a standard to evaluate the school's fiscal performance. GFOA is recommending that all school districts include the following policies that guide the development of their budget and that are central to a strategic long-term approach to financial management. Westlake Academy is in the process of reviewing these policies. 1. Operating Budget Policy This section of the Fiscal and Budgetary Policies should include the following policies that guide the development of the budget and are central to a strategic approach to our financial management. These components will need to be reviewed, updated if necessary, and/or added and approved by the Board of Trustees in subsequent years. 1. Basis of Budgeting 2. Budget Adoption 3. Budget Classification and Format 4. Organization of the Budget 5. Budget Message Requirement 6. Funds Budgeted 7. Length of the Budget Year 8. Presentation of Proposed Budget 9. Revenue Forecasting Requirements 10. Expenditure Forecasting Requirements 11. Performance Measurements 12. Line-Item Transfer Authority i 13. Retention of Budget Records 2. Budget Crisis Procedures This policy is intended to provide Westlake Academy with options when responding to unexpected fiscal issues that can and do arise. Should budget problems materialize,these procedures will support comprehensive risk analysis and contingency plans. 3. Long Term Forecasting The annual operating budget focuses on a single 12-month period. However, spending and revenue decisions made today have effects that extend beyond a 12-month period. The purpose of this policy is to o Ensure on-going financial sustainability beyond a single fiscal year or budget cycle o Achieve the Academy's mission and vision o Systematically link the annual budget to a multi-year master financial plan. 104 FUTURE POLICIES TO BE DISCUSSED & IMPLEMENTED 4. Reserve Policy in Other Funds While the General Fund Reserve is the most important for the Westlake Academy, reserves in other funds are just as important. For that reason,the funds listed in this policy shall have reserves that are restricted or committed for specific purposes. 5. General Fund Budget Reserves The General Fund is the primary fund used by the Westlake Academy to account for revenues and expenditures. Accordingly,the General Fund Reserve Policy is intended to provide the Academy with options when responding to unexpected issues and to afford a buffer against shocks and other forms of risk. One of two things must happen in the future if we cannot spend equal to or less than the revenues received: (1) increase future revenues (2) make future expenditure reductions. 6. Capital Asset Management(already incorporated into the Fiscal and Budgetary Policies) Westlake Academy operates an extensive amount of buildings, equipment, furniture and vehicles. The purpose of this policy is to: o provide a management framework to ensure that all capital assets are repaired, maintained and replaced and, o identify the responsible parties who shall protect, oversee and report needed repairs. PASSWORDSFhBEifWGRk BEST SrANpAADS DEVICES INCLUDE coma PRDBiEM ARAFEll s P�A N NETWORK aCmAur B[CBEAEIRB DISCOVERED CDNBDCF Y�CAtpoiCt FINANCIAL PENETRATION mm ,AHT MFssuR. APPLICATIONS uPOAEEB BACKUP,,R,`,HnE,'wI SDtYEFPAONlBF O C���� OPERATIONSSCOPECONTINUITVL PROCEDURES VULNERABILITY a�Es,loITvsAls:�AESdIDCES � PER�D" MANAGEfD N' YlEA8MP3 3 PROCESS INFOR'I "OH DATA S F C U R I T Yi ;"��� U DISASTER surf ` OFFNED D1iPE DRD AEMx FAIR DElNiE1ERflS BEFERYINf AISIa�Essin FIREWALL COMPUTER ACCESS ACC€PTE{i PLACE T1E0 P��,�CyPRACTICES D„ �,EDEDRRANI�ATION ME RAIL I D AuYI,T��� D�GOVERNANCE FINDINGS E rAhACER r INCIDENTSB�°R'EYiiwm SUMMARY ANALYSIS rrl"COMPLI P[EklsiBRICAE CC;mDis EINS1sw EXTERNAL ►ssETS PREVIGBS CDMNEHE TECHNICAL BUSINESS fAN'10.[ �RPAAnAt oONED OVERVIEW Ek0.M9E M0.LrIARE R•"�'FD EEFELEIVE MFIN6 STAFF HWW ENSGk[ L'kRlki D0.11T METRICS 105 11i4iba e 4 nlevi l"Onal f Ma�jil 106 y ti k�ly � '�' i'.i•�v=v 11i4iba e 4 nlevi l"Onal f Ma�jil 108 GLOSSARY This glossary contains definitions of terms used in this document with additional terms as seems necessary to common understandings concerning financial accounting procedures for schools. Several terms which are not primarily financial accounting terms have been included because of their significance for school financial accounting. • Account: A descriptive heading under which are • ADA: Average Daily Attendance is based on the recorded financial transactions that are similar in number of days of instruction in the school year. terms of a given frame of reference, such as The aggregate day's attendance is divided by the purpose, object or source. number of days of instruction to compute average daily attendance. ADA is used in the formula to • Accounting Period: A period of the end of which, distribute funding to Texas public school districts. and for which,financial statements are prepared; for example, September 1 through August 31. See • Administration: Those activities which have as also FISCAL PERIOD. their purpose the general regulation, direction, and control of the affairs of the local education agency • Accounting Procedure: The arrangement of all that are system-wide and not confined to one processes which discover, record, and summarize school subject, or narrow phase of school activity. financial information used to produce financial statements and reports and to provide internal • Appropriation: An authorization granted by a control. legislative body to make expenditures and to incur obligations for specific purposes.An appropriation • Accounting System: The total structure of records is usually limited in amount and as to the time and procedures which discover record, classify and when it may be expended. report information on the financial position and operations of a school district or any of its funds, • Academic Excellence Indicators System (AEIS): A balanced account groups, and organizational system of indicators established by the Legislature components. and adopted by the State Board of Education to help determine the quality of learning on a campus • Accrual Basis of Accounting: The basis of and in a school district.The indicators include accounting, under which revenues are recorded passing rates on the state assessment tests, when earned, and expenditures are recorded as attendance,graduation rates, dropout rates, and soon as they result in liabilities, regardless of when scores on college entrance exams.The state will revenue is received or a payment is made. assess district and school performance compared with state-level standards. AEIS is the foundation • Accrue:To record revenues when earned or when for a school district's accountability rating. levies are made and to record expenditures as soon as they result in liabilities, regardless of when the • Accountability Ratings:The Accountability Ratings revenue is received or the payment is made. System ranks campuses and districts as exemplary, Sometimes,the term is used in a restricted sense to recognized, acceptable, and low performing based denote the recording of revenues earned but not on the percentage of students who pass the state yet due, such as accrued interest on investments assessment instruments and the dropout rate. and the recording of expenditures which result in liabilities that are payable in another accounting • Assigned Fund Balance: Reports amount that are period, such as accrued interest on bonds. constrained by the government's intent that they will be used for specific purposes. Decision making 109 GLOSSARY This glossary contains definitions of terms used in this document with additional terms as seems necessary to common understandings concerning financial accounting procedures for schools. Several terms which are not primarily financial accounting terms have been included because of their significance for school financial accounting. about these amounts may be made by a committee • Budget: A plan of financial operation embodying an or other governmental official. Compared to estimate of proposed expenditures for a given Committed Fund Balance,the resources period or purpose and the proposed means of represented by the Assigned Fund Balance can be financing them.The budget usually consists of three more easily redeployed and the constraints are not parts.The first part contains a message from the as stringent. Except for the General Fund, fund budget-making authority together with a summary balance amounts that are not labeled as non- of the proposed expenditures and the means of spendable, restricted or committed would be financing them.The second part is composed of reported in the Assigned Fund Balance category. drafts of the appropriation, revenue, and borrowing Therefore,the Assigned Fund Balance becomes the measures necessary to put the budget into effect. residual amount for the Special Revenue Fund, The third part consists of schedules supporting the Capital Project Fund and Debt Service Funds. summary.These schedules show in detail the proposed expenditures and means of financing • Association of School Business Officials them together with information as to past years' International (ASBO): The Association of School actual revenues and expenditures and other data Business Official' International, founded in 1910, is used in making the estimates. a professional association which provides programs and services to promote the highest standards of • Budgetary Control: The control management of school business management practices, the business affairs of the school district in professional growth, and the effective use of accordance with an approved budget with a educational resources. responsibility to keep expenditures within the authorized amounts. • Audit: A comprehensive review of the way the government's resources were utilized. A certified • Basic Allotment:The basic allotment is the initial or public accountant issues an opinion over the starting number that, after adjustment, is used to presentation of financial statements,tests the calculate foundation program costs and state aid controls over the safekeeping of assets and makes to school districts and charters. recommendations for improvements for where necessary. • Budgetary Basis of Accounting:The method used to determine when revenues and expenditures are • Balanced Budget: A balanced budget is a budget recognized for budgetary purposes. with total expenditures not exceeding total revenues and monies available in the fund balance • Capital Expenditures: Capital expenditures are within an individual fund. defined as charges for the acquisition at the delivered price including transportation, costs of • Balance Sheet: A summarized statement, as of a equipment, land, buildings, or improvements of given date, of the financial position of a local land or buildings,fixtures, and other permanent education agency per fund and/or all funds improvements with a value more than $5,000 and a combined showing assets, liabilities, reserves, and useful life expectancy of greater than 1 year. fund balance. 110 GLOSSARY This glossary contains definitions of terms used in this document with additional terms as seems necessary to common understandings concerning financial accounting procedures for schools. Several terms which are not primarily financial accounting terms have been included because of their significance for school financial accounting. • Career and Technical Education (CTE): The costs • Committed Fund Balance: Represents amounts incurred to evaluate, place and provide educational that have internally imposed restrictions mandated and/or other services to prepare students for by formal action of the government's highest level gainful employment, advanced technical training or of decision-making authority. The committed for homemaking. This may include apprenticeship amounts cannot be redeployed for other purposes and job training activities. unless the same type of formal action is taken by the highest level of decision-making authority to • Classification, Function: A function represents a reserve or modify the previously imposed general operational area in a school district and restriction. groups together related activities; for example, instruction, campus administration, maintenance • Comprehensive Annual Financial Report(CAFR): A and operations, etc. financial report that encompasses all funds and component units of the government.The CAFR • Classification, Object: An object has reference to should contain (a)the basic financial statements an article or service received; for example, payroll and required supplementary information, (b) costs, professional and contracted services, supplies combining statements to support columns in the and materials, and other operating expenses. basic financial statements that aggregate information from more than one fund or • Co-curricular Activities: Direct and personal component unit, and (c) individual fund statements services for public school pupils such as as needed.The CAFR is the governmental unit's interscholastic athletics, entertainments, official annual report and should contain publications, clubs, and strings, which are managed introductory information, schedules necessary to or operated by the student body under the demonstrate compliance with finance-related legal guidance and direction of an adult, and are not part and contractual provisions, and statistical data. of the regular instructional program. • Cost of Education Index(CEI)or Adjustment: An • Coding: A system of numbering, or otherwise index the state uses to adjust the basic allotment to designating, accounts, entries, invoices,vouchers, account for geographic or other cost differences etc., in such a manner that the symbol used reveals beyond local school district control.The current quickly certain required information. index has not been updated since 1990. • Consultant: A resource person who aids the • Current Budget: The annual budget prepared for regular personnel through conference, and effective during the present fiscal year. demonstration, research, or other means. • Current Expenditures per Pupil: Current • Contracted Services: Labor, material and other expenditures for a given period divided by a pupil costs for services rendered by personnel who are unit of measure (average daily attendance, etc.) not on the payroll of the Academy. • Debt: An obligation resulting from the borrowing of money or from the purchase of goods and 111 GLOSSARY This glossary contains definitions of terms used in this document with additional terms as seems necessary to common understandings concerning financial accounting procedures for schools. Several terms which are not primarily financial accounting terms have been included because of their significance for school financial accounting. services. Debts of local education agencies include period may be a month, or a year, depending upon bonds, leases, etc. the scope of operations and requirements for managerial control and reporting. • Diploma Programme(DP): A challenging two-year curriculum for students in grades 11 and 12 that • Fiscal Year: A twelve-month period to which the provides an inquiry-based, college preparatory annual budget applies and at the end of which a education. By emphasizing knowledge, skills, local education agency determines its financial critical thinking and the fostering and development position and the results of its operations. The of universal human values, students learn the District's fiscal year is July 1 through June 30. valuable skills of construction and deconstruction knowledge. • Foundation School Program (FSP): A program for the support of a basic instructional program for all • Education Service Center(ESC):Twenty Texas school children. Money to support the intermediate education units located in regions program comes from the Permanent School Fund, throughout Texas that assist and provide Available School Fund, Foundation School Fund, services for local school districts. state general revenue, and local property taxes. Currently,the FSP described in the Texas Education • Estimated Revenue: This term designates the Code consists of three parts or tiers.The first tier amount of revenue expected to be earned during a provides funding for a basic program.The second given period. tier provides a guaranteed-yield system so that school districts have substantially equal access to • Expenditures: This includes total charges incurred, revenue sufficient to support an accredited whether paid or unpaid, for current expense, program.The third tier equalizes debt service capital outlay, and debt service. (Transfers requirements for existing facilities debt. between funds, encumbrances, exchanges of cash for other current assets such as the purchase • Fund: An independent fiscal and accounting entity stores and investment of cash in U.S. Bonds, with a self-balancing set of accounts recording payments of cash in settlement of liabilities already cash and/or other resources, together with all accounted as expenditures, and the repayment of related liabilities, obligations, reserves, and the principal of current loans are not considered equities which are segregated for carrying on in as expenditures.) accordance with special regulations, restrictions, or limitations. • Fiduciary Funds: Fiduciary Funds account for assets held in a trustee or agent capacity for • Fund Balance: It is the resources remaining from outside parties, including individuals, private prior years and which are available to be budgeted organizations, and other governments. in the current year. • Fiscal Period: Any period at the end of which a • General Fund: A fund group with budgetary local education agency determines its financial control used to show transactions resulting from position and the results of its operations. The operations of ongoing organizations and activities 112 GLOSSARY This glossary contains definitions of terms used in this document with additional terms as seems necessary to common understandings concerning financial accounting procedures for schools. Several terms which are not primarily financial accounting terms have been included because of their significance for school financial accounting. from a variety of revenue sources for which fund student's needs.An IEP is intended to help ensure balance is controlled by and retained for the use that disabled students have equal access to public by the local education agency. The General Fund is education in the least restrictive environment. used to finance the ordinary operations of a governmental unit except those activities required • Individuals with Disabilities Education Act(IDEA): to be accounted for in another fund. The 1997 IDEA strengthens academic expectations and accountability for the nation's • Government Finance Officers Association (GFOA): 5.4 million children with disabilities. A professional association of state/provincial and local finance officers in the United States and • International Baccalaureate Program (IB): A non- Canada, and has served the public finance profit foundation whose mission is to help profession since 1906.The association's nearly students "develop the intellectual, personal, 15,000 members are dedicated to the sound emotional, and social skills to live, learn and work management of government financial resources. in a rapidly globalizing world." It was founded in 1968 and runs in over 3,000 schools in 141 • Governmental Funds: Funds generally used to countries. Its Diploma Program (DP) is designed for account for tax-supported activities.There are five high school juniors and seniors, and offers classes in different types of governmental funds: the general the same areas as traditional schools: math, fund, special revenue funds, debt service funds, science, English, foreign language, social studies, capital projects funds and permanent funds. and the arts. Additionally, students have three extra requirements: a class about the theory of • Grant: A contribution by one governmental unit to knowledge, a community service obligation, and an another.The contribution is usually made to aid in extended essay on a research topic of their choice. the support of specified function (for example,job Along the way, students complete assessments that training), but it is sometimes also for general help them prepare for the final written exams, purposes. which are graded by external examiners. Upon graduation, students earn a diploma that is • House Bill 3: School finance bill that was passed respected worldwide. by the 861h Texas Legislature. The bill provides more money for Texas classrooms, increases • Middle Years Programme (MYP): A curriculum teacher compensation, reduces recapture and cuts framework for children in grades six through ten local property taxes for Texas taxpayers. that encourages students to make practical connections between their studies and the real • Independent Audit: An audit performed by an world. The MYP builds on the knowledge; skills independent auditor. and attitudes developed by the Primary Years Programme (PYP) and prepare the students for • Individual Education Plan (IEP): A document the demanding requirements of the Diploma required by federal law that details the special Programme (DP). education requirements for each disabled student and explains how the school intends to address the 113 GLOSSARY This glossary contains definitions of terms used in this document with additional terms as seems necessary to common understandings concerning financial accounting procedures for schools. Several terms which are not primarily financial accounting terms have been included because of their significance for school financial accounting. • Modified Accrual Basis of Accounting: Basis of granted. Other charter programs include home-rule accounting per which (a) revenues are recognized in school district charters and campus or campus the accounting period in which they become program charters. available and measurable and (b) expenditures are recognized in the accounting period in which the • Personnel, Full-Time: Academy employees who fund liability is incurred, if measurable, except for occupy positions with duties which require them to un-matured interest on general long-term debt and be on the job on school days throughout the school certain similar accrued obligations,which should be year, or at least the number of hours the school is recognized when due. in session. • Non-spendable Fund Balance: Includes amounts • Personnel, Part-Time: Personnel who occupy that cannot be spent and are,therefore, not positions with duties which require less than full- included in the current year appropriation. Two time service. components: 1) Not in spendable form—previously recorded disbursements and include items that are • Primary Years Programme(PYP): A curriculum not expected to be converted into cash, i.e. framework for children aged 3-12 that prepared inventories, pre-paid items, etc. and 2) Legally or students for the intellectual challenges of future contractually required to be maintained intact— education and their future careers,focusing on the refers to an amount that has been received that development of the whole child as an inquirer, both must be invested indefinitely, i.e. a donation in the classroom and in the world outside. received by the government from a citizen,the principal of which is to be invested in a permanent . Proprietary Funds: Funds that focus on the fund and the earnings used for general determination of operating income, changes in net governmental purposes. assets(or cost recovery),financial position, and cash flows.There are two different types of • Object Code: As applied to expenditures,this term proprietary funds: enterprise funds and internal has reference to an article or service received; for service funds. example, payroll costs, purchased and contracted services, materials and supplies. • Public Education Information Management System (PEIMS): A data management system that includes • Open-Enrollment Charters: Open-enrollment information on student demographics, charter schools may be established by private performance,teacher salaries, etc.The information nonprofit organizations, colleges and universities, for PEIMS is transmitted from local school districts and other governmental entities that apply to the to the Texas Education Agency by the education State Board of Education.The law authorizes the service centers. State Board to approve up to 215 open-enrollment charter schools. Law also provides for creation of • Public Information Act(PIA): PIA defines public college or university charter schools at "public information as information collected, assembled, or senior colleges and universities."There is no limit maintained under a law or about a governmental on the number of these charter schools that may be body's transaction of official business. PIA provides 114 GLOSSARY This glossary contains definitions of terms used in this document with additional terms as seems necessary to common understandings concerning financial accounting procedures for schools. Several terms which are not primarily financial accounting terms have been included because of their significance for school financial accounting. that public information must be made available to management practices and that they improve those the public upon request during the normal business practices. The system is designed to encourage hours of the district, unless an exception applies Texas public schools to better manage their that allows or requires that the information not be financial resources to provide the maximum made public. allocation possible for direct instructional purposes. • Restricted Fund Balance: Reports on resources • Special Revenue Funds: Funds that are used to that have spending constraints that are either: 1) account for funds awarded to the Academy for externally imposed by creditors, grantors, accomplishing specific educational tasks as defined contributors or laws and regulations of other by grantors in contracts or other agreements. governments, i.e. grants, etc. -or-2) imposed by law through constitutional provision or enabling • State Board for Educator Certification (SBEC): SBEC legislation.The amounts represented by this fund is a quasi-independent body that gives educators balance category have very stringent conditions more authority to govern the standards of their imposed by external parties or by law. Therefore, profession. SBEC regulates and oversees all aspects the amounts are restricted to very specific purposes of the certification, continuing education, and and cannot be redeployed for other purposes. The standards of conduct of public school educators. As government can be compelled by an external party a state agency, SBEC is responsible for certification to undertake the spending requirements testing, accountability programs for educator represented by the Restricted Fund Balance. preparation programs, and certification of teachers and administrators. • Refined ADA: Refined Average Daily Attendance is based on the number of days of instruction in the • State Board of Education (SBOE): A 15-member school year.The aggregate eligible day's body elected by general election (staggered, four- attendance is divided by the number of days of year terms)from various regions statewide to instruction to compute the refined average daily provide leadership and to adopt rules and policies attendance. See also ADA. for public education in the state.The board's primary responsibility is to manage the Permanent • School Board Authority: Statute gives local school School Fund. boards the exclusive power and duty to govern and oversee the management of the public schools. • Statutory Minimum Salary (Stat Min): HB3 Powers and duties not specifically delegated to the requires that open enrollment charter schools Texas Education Agency or the State Board of begin paying the state's contribution on the Education are reserved for local trustees. portion of a member's salary that exceeds the statutory minimum salary for members entitled • School FIRST Rating: The purpose of the financial to the minimum salary schedule and for members accountability rating system, known as the School who would be entitled to the minimum salary for Financial Integrity Rating System of Texas (FIRST), is certain school personnel under Section 21.402. to ensure that open-enrollment charter schools are held accountable for the quality of their financial 115 GLOSSARY This glossary contains definitions of terms used in this document with additional terms as seems necessary to common understandings concerning financial accounting procedures for schools. Several terms which are not primarily financial accounting terms have been included because of their significance for school financial accounting. • Teacher Retirement System (TRS):TRS delivers • Texas Education Code (TEQ This code applies to all retirement and related benefits authorized by law educational institutions supported in whole or in for members and their beneficiaries. part by state tax funds. • Technology Allotment: This allotment is part of the • Texas Essential Knowledge and Skills(TEKS): state textbook fund and can be used to purchase Subject-specific state leaning objectives adopted by electronic textbooks or technological equipment the State Board of Education.The State's academic that contributes to student leaning or teacher tests. [see Texas Assessment of Knowledge and training.The allotment is$30 per ADA. Skills (TAKS)] are aligned with the TEKS. • Texas Assessment of Academic Skills(TAAS): A • Texas Open Meetings Act(TOMA):TOMA makes state-developed test administered each year to school board meetings to discuss and decide public students in grades 3 through 8 and 10 (exit-level)to business accessible.The TOMA Decision requires determine student achievement levels on state- governmental entities to provide prior public notice established leaning objectives. Replaced by the of what is to be discussed and where and when Texas Assessment of Knowledge and Skills (TAKS) discussion will take place. Closed meetings are effective for the 2002-03 school year. permitted only when specifically authorized by law. Civil and criminal penalties can result when a board • Texas Assessment of Knowledge and Skills(TAKS): violates provisions of this act. TAKS replaces the Texas Assessment of Academic Skills (TAAS), a criterion-referenced test used in • Unassigned Fund Balance:The residual fund Texas schools for 12 years.TAKS began in spring balance for the General Fund. It represents the 2003,with tests in reading in grades 3 through 9; amount of fund balance remaining after allocation language arts in grades 10 and 11; mathematics in to the Non-spendable, restricted, committed and grades 3 through 11.The 11th grade exit-level test assigned fund balances. This amount reflects the will assess English III, algebra I, geometry, biology, resources that are available for further integrated chemistry and physics, early American appropriation and expenditure for general and U.S. history,world geography, and world governmental purposes. history.TAKS will be a more challenging examination for Texas students, per the results of • Weighted Students in Average Daily Attendance field tests. (WADA): In Texas, students with special educational needs are weighted for funding • Texas Education Agency(TEA):The administrative purposes to help recognize the additional costs of and regulatory unit for the Texas public education educating those students.Weighted programs system managed by the commissioner of education. include special education, career and technical, TEA is responsible for implementing public bilingual, gifted and talented, and compensatory education policies as established by the Legislature, education.A weighted student count is used to State Board of Education, and commissioner of distribute guaranteed-yield funding and establish education. Chapter 41 thresholds. 116 ACRONYMNS TERM STANDS FOR TERM STANDS FOR ACCT Account GL General Ledger ADA Average Daily Attendance GO'S General Obligation Bonds AEIS Academic Excellence Indicators System HR Human Resources AP Accounts Payable IB International Baccalaureate Program AR Accounts Receivable IEP Individual Education Plan ASBO Association of School Business Officials IDEA Individuals with Disabilities Education Act BS Balance Sheet IT Information Technology CAFR Comprehensive Annual Financial Report LTL Long-term Liability CEI Cost of Education Index MYP Middle Years Programme CIP Capital Improvement Plan PIA Public Information Act CO'S Certificates of Obligations PYP Primary Years Programme CPA Certified Public Accountant R&M Repair and Maintenance CTE Career and Technical Education S&P Standard and Poor's DP Diploma Years SBOE State Board of Education DS Debt Service SLA Service Level Adjustment EF Enterprise Fund SRF Special Revenue Fund ESC Education Service Center(ESC) TAKS Texas Assessment of Knowledge and Skills FTE Full-Time Equivalent TEA Texas Education Agency FY Fiscal Year TEKS Texas Essential Knowledge and Skills G&O Goals and Objectives TOMA Texas Open Meetings Act GAAP Generally Accepted Accounting Principles TRS Teacher Retirement System GASB Government Accounting Standards Board WA Westlake Academy GF General Fund WADA Weighted Average Daily Attendance GFOA Government Finance Officers Association XFR Transfer 117 Westlake Academy 2019 - 2020 Academic Calendar July August September October Su Mo Tu We Th Fr Sa Su Mc Tu YVP Th Fr Sa Su Mo Tu 1141Th I Fr 1 Se Su I Mo I Tu I We I Th I Fr I So 1 2 3 4 5 E 1 2 3 1 2 3 4 5 6 7 1 2 3 4 5 7 8 9 10 11 12 13 4 5 6 7 8 9 10 8 9 10 11 12 13 14 6 7 8 9 10 11 12 14 15 16 17 18 19 24 11 12 13 11_jt 16 17 15 16 17 18 19 20 21 13 14 15 16 17 18 19 21 22 21 24 25 26 27 18 19 20 21 22 23 24 22 23 24 25 26 27 28 20 21 22 23 24 25 26 28 29 30 31 25 26 27 28 29 30 31 29 30 27 28 29 30 31 November December January February Su Mo Tu We Th f r Sa Su Me Tu 44e Th Fr Sa Su Mo Tu I We I Th Fr Sa Su Mo Tu We Th Fr Sa 1 2 1 2 3 4 5 6 1 1 2 3 4 1 3 4 5 6 7 8 9 8 9 10 11 12 13 14 5 6 7E] 9 10 11 2 3 4 5 6 7 8 10 11 12 13 14 15 16 15 16 17 18 19 20 21 12 13 14 15 16 17 18 9 10 11 12 13 RW 15 17 18 19 20 21 22 23 22 23 24 25 26 27 28 19 20 21 22 23 24 25 16 17 18 19 20 21 22 24 25 26 21 28 29 30 29 30 31 26 27 28 29 30 31 23 24 25 26 27 28 28 March Aprils May June Su Mo Tu We Th Fr _Lul Mo Tu We Th Fr Sa Su Ago Tu We, Try, Fr , Sa Su Ma Tu We Th Fr Sa 1 2 3 4 5 b 7 1 2 3 4 1 2 1 2 3 4 5 6 8 9 10 11 12 1314 5 6 7 8 9 W, 11 3 4 5 6 7 6 9 7 8 9 10 11 12 13 15 16 t7 18 19 20 21 12 13 14 15 16 17 181 10 11 12 13 14 15 16 14 15 16 17 16 19 20 22 23 24 25 26 27 28 19 20 21 22 23 24 25� 17 18 19 20 21 22 23 21 22 23 24 25 26 27 29 30 31 26 27 28 29 30 24 Z5 26 27 28 29 30 28 29 30 31 Color Code Sysmm: Important Dates First Ssmcst©r: trnpartant Dates Second Semester: sional Davolopment Sit 2.8f16 All Staff PD V6 Flipped PD 1 4days W19 First Day of School V7 All Staff PD SbAltnt-LodVarent Gonferuce K Holiday No School VB First Day of Second Semester ays 1 W14 Holiday No Schad 1120 Holiday No Schaal IM3 Student-LedlParent Canlerences 2I14 Ail Staff PD I II Adl Staff PD Z17 Holiday No School 11122 Half•DaylGrandparents Day M-3113 Spring Break 1 1r75.11129 Thanksgiving Break(25-26 FLEX) M5 Student•LoffParent Cortleronoes 11f25.11126 FLEX Days for Staff Members 410 Holiday No School 12116.12JI9 Final Exams(12J19 Half Day) 5P25 Holiday No School 12f20-117 ffinter Break 5f26-529 Final Exams(5129 Half Day) 5129 Last Day of School 611 AJI Staff PD 118