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HomeMy WebLinkAbout12-07-20 Joint TC BOT Agenda Packet TOWN OF WESTLAKE TOWN COUNCIL AND WESTLAKE ACADEMY BOARD OF TRUSTEES JOINT MEETING AGENDA 1500 SOLANA BLVD, BUILDING 7, SUITE 7100, WESTLAKE, TX 76262 T H r r o w N v r W ESTLAKE In accordance with Order of the Office of the Governor issued March 16, 2020 and March 19, 2020, the Town Council of the Town of Westlake and the Board of Trustees of Westlake Academy will conduct this virtual meeting at 5:00 p.m. on Monday December 7, 2020 by video and telephonic conference in order to advance the public health goal of limiting face-to-face meetings (also called "social distancing") to slow the spread of the Coronavirus (COVID-19). There will be no public access to the physical location described above. A recording of the telephonic meeting will be made and will be available to the public in accordance with the Open Meetings Act. Instructions for public participation in the meeting by video conference and telephonic conference are as follows: Bv Video: Bv Telephone: https://bit.ly/tcbot120720 Local: (346) 248-7799 Webinar ID: 840 5198 6239 Webinar 840 5198 6239 Passcode: 634901 Passcode: 634901 l/ision Statement West/ake Academy inspires co/%ge bound students to achieve their highest individual potentia/in a nurturing en�ironment that fosters the traits found in the IB Learner Pro�le:Inquirers, Knowledgeable, Thinkers, Communicators, Principled, Open-Minded, Caring, Risk-takers, Balanced and Reflective Reqular Session 1. CALL TO ORDER: Joint Town Council and Board of Trustees regular meeting. 2. CITIZEN COMMENTS: This is an opportunity for citizens to address the Board on any matter whether or not it is posted on the agenda. For those joining by videoconference: Any person desiring to make a public comment using a Windows computer must first press the '�Raise Hand" button on the screen. Alternatively, the AIt+Y keyboard shortcut may be used to raise or lower their hand. Any person desiring to make a public comment using a Mac computer must first press the��Raise Hand" button on the screen. Alternatively, the Option+Y keyboard shortcut may be used to raise or lower their hand. For those joining by teleconference: Any person desiring to make a public comment must first press star-nine (*9) on their telephone keypad to "Raise their hand" to speak. Persons joining the meeting by teleconference may mute and unmute their phones by pressing star-6 (*6). Town Council/BOT Joint Agenda 12-07-20 Page 1 of 4 Citizens will be placed in a queue based on the order the hands were raised. The presiding ofFicer will recognize callers based on the order of the queue, where they will be asked to state their name and address. Individual citizen comments are normally limited to three (3) minutes; however, time limits can be adjusted by the presiding officer. The presiding officer may ask the citizen to hold their comment on an agenda item if the item is posted as a Public Hearing. The Town Council or Board of Trustees cannot by law take action nor have any discussion or deliberations on any presentation made to the Board at this time concerning an item not listed on the agenda. The Board will receive the information, ask staff to review the matter, or an item may be noticed on a future agenda for deliberation or action. 3. ITEMS OF COMMUNITY INTEREST: Town Council and Board and Trustee Reports on Items of Community Interest pursuant to Texas Government Code Section 551.041: The Town Council or Board of Trustees may report on the following items: (1) expression of thanks, congratulations or condolences; (2) information about holiday schedules; (3) recognition of individuals; (4) reminders about upcoming Town Council/Board of Trustee events; (5) information about community events; and (6) announcements involving imminent threat to public health and safety. 4. CONSENT AGENDA: All items listed below are considered routine by the Board of Trustees and will be enacted with one motion. There will be no separate discussion of items unless a Board member or citizen so requests, in which event the item will be removed from the general order of business and considered in its normal sequence. a. Consider approval of the minutes from the Board of Trustees meeting on September 14, 2020. 5. PRESENTATION AND DISCUSSION ITEMS: a. Presentation and discussion of 2020 Utility Rate study from NewGen Strategies & Solutions. b. Presentation and discussion of the FY 2019-2020 annual audit report from Weaver and Tidwell, L.L.P., and consideration of Resolution 20-15, approving the FY 2019- 2020 annual audit report. c. Presentation and discussion regarding Enrollment for the Fall 2020 semester. d. Presentation and discussion of the Westlake Academy Academic Honesty Policy. 6. DISCUSSION REGARDING THE BACK-TO-SCHOOL PLAN FOR THE 2020-2021 ACADEMIC YEAR, INCLUDING UPDATES REGARDING VIRTUAL AND ON-CAMPUS STUDENT INSTRUCTION. 7. REPORTS: Reports are prepared for informational purposes and will be accepted as presented. (tr,ere w�ii no presentations associated with the report �tems) There will be no separate discussion unless a Board of Trustees Member requests that report be removed and considered separately. a. Report on the use of ofF-site facilities for classroom space. b. Review a request for a memorial bench to be placed on the Westlake Academy Campus. Town Council/BOT Joint Agenda 12-07-20 Page 2 of 4 8. EXECUTIVE SESSION: The Council will conduct a closed session pursuant to Texas Government Code, annotated, Chapter 551, Subchapter D for the following: a. Section 551.087 - Deliberation Regarding Economic Development Negotiations (1) to discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to have locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations; or (2) to deliberate the offer of a financial or other incentive to a business prospect described by Subdivision (1) for the following: - Front 44 - Entrada b. Section 551.071(2) — Consultation with Town Attorney on a matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with this chapter: Resolution No. 00-19, a Contract with Hillwood Development Corporation Concerning the Design Engineering and Construction of the West Side Pump Station and the Dove Road Waterline. c. Section 551.071(2) Consultation with Attorney—to seek advice of counsel on matters in which the duty of the Town Attorney under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551 of the Texas Government Code - FM 1938 access for proposed Southlake development. d. Section 551.073 — Deliberations Regarding Gifts and Donations. 9. RECONVENE MEETING 10. TAKE ANY ACTION, IF NEEDED, FROM EXECUTIVE SESSION ITEMS. 11. FUTURE AGENDA ITEMS: Any Board member may request at a workshop and/or Board meeting, under��Future Agenda Item Requests", an agenda item for a future Board meeting. The Board Member making the request will contact the Superintendent with the requested item and the Superintendent will list it on the agenda. At the meeting, the requesting Board Member will explain the item, the need for Board discussion of the item, the item's relationship to the Board's strategic priorities, and the amount of estimated staff time necessary to prepare for Board discussion. If the requesting Board Member receives a second, the Superintendent will place the item on the Board agenda calendar allowing for adequate time for staff preparation on the agenda item. 12. BOARD RECAP / STAFF DIRECTION 13. AD]OURNMENT Town Council/BOT Joint Agenda 12-07-20 Page 3 of 4 ANY ITEM ON THIS POSTED AGENDA COULD BE DISCUSSED IN EXECUTIVE SESSION AS LONG AS IT IS WITHIN ONE OF THE PERMITTED CATEGORIES UNDER SECTIONS 551.071 THROUGH 551.076 AND SECTION 551.087 OF THE TEXAS GOVERNMENT CODE. CERTIFICATION I certify that the above notice was posted at the Town Hall of the Town of Westlake, 1500 Solana Blvd., Building 7, Suite 7100, Westlake, TX 76262, on December 4, 2020, by 5:00 p.m. under the Open Meetings Act, Chapter 551 of the Texas Government Code. Todd Wood, Town Secretary If you plan to attend this public meeting and have a disability that requires special needs or translation services, please advise the Town Secretary 48 hours in advance at 817-490-5711 and reasonable accommodations will be made to assist you. Town Council/BOT Joint Agenda 12-07-20 Page 4 of 4 Town Cou nci I a nd Boa rd of Trustees Item #2 — Citizen Comments CITIZEN COMMENTS: This is an opportunity for citizens to address the Council on any matter whether or not it is posted on the agenda. For those joining by videoconference: Any person desiring to make a public comment using a Windows computer must first press the ��Raise Hand" button on the screen. Alternatively, the AIt+Y keyboard shortcut may be used to raise or lower their hand. Any person desiring to make a public comment using a Mac computer must first press the "Raise Hand" button on the screen. Alternatively, the Option+Y keyboard shortcut may be used to raise or lower their hand. For those joining by teleconference: Any person desiring to make a public comment must first press star-nine (*9) on their telephone keypad to "Raise their hand" to speak. Persons joining the meeting by teleconference my mute and unmute their phones by pressing star-6 (*6). Citizens will be placed in a queue based on the order the hands were raised. The presiding ofFicer will recognize callers based on the order of the queue, where they will be asked to state their name and address. Individual citizen comments are normally limited to three (3) minutes; however, time limits can be adjusted by the presiding officer. The presiding officer may ask the citizen to hold their comment on an agenda item if the item is posted as a Public Hearing. The Council cannot by law take action nor have any discussion or deliberations on any presentation made to the Council at this time concerning an item not listed on the agenda. The Council will receive the information, ask staff to review the matter, or an item may be noticed on a future agenda for deliberation or action. ITEMS OF COMMUNITY INTEREST: Mayor and Council Town Cou nci I Reports on Items of Community Interest pursuant to Texas Government Code Section 551.0415 the Town Council may report a nd Boa rd of on the following items: (1) expression of thanks, congratulations or condolences; (2) information about holiday schedules; �3) Trustees recognition of individuals; (4) reminders about upcoming Town Council events; (5) information about community events; and (6) announcements involving imminent threat to public health and safety. Item # 3 — Items of Ca/endarofMeetings/Events: Community Interest Town Council/Board of Trustees Work Session Work Session/Meeting Monday, December 7, 2020; 5:00 pm* Westlake Town Hall, Solana Terrace-BIdg.7, Suite 7100 - via Teleconferencing Town Council Work Session/Meeting Monday, December 14, 2020; 5:00 pm* Westlake Town Hall, Solana Terrace-BIdg.7, Suite 7100 - via Teleconferencing Westlake Academy CLOSED for Christmas Holiday Thursday, December 21St through Monday, January 4th. January 5t": Teacher's professional developmental day Westlake Municipal Offices CLOSED for Christmas Holiday Thursday and Friday, December 24 & 25, 2020 Holiday impacts to your trash and recycling schedule: Pick up will now be on Saturday. Please call Republic Services Customer Response Team at 602-237-2078 with any additional questions you may have about your holiday schedule. Westlake Municipal Offices CLOSED for News Years Holiday Friday, January ist, 2021 Holiday impacts to your trash and recycling schedule: Pick up will now be on Saturday. Please call Republic Services Customer Response Team at 602-237-2078 with any additional questions you may have about your holiday schedule. Town Council/Board of Trustees Work Session Work Session/Meeting Monday, January 4, 2021; 5:00 pm* Westlake Town Hall, Solana Terrace-BIdg.7, Suite 7100 - via Teleconferencing Planning &Zoning Meeting Monday, January 11, 2021; 5:00 pm* Westlake Town Hall, Solana Terrace-BIdg.7, Suite 7100 - via Teleconferencing Westlake Municipal Offices CLOSED for Dr. Martin Luther King, Jr. Holiday Friday, January 18th, 2021 Town Council Work Session/Meeting Monday, January 25, 2021; 5:00 pm* Westlake Town Hall, Solana Terrace-BIdg.7, Suite 7100 - via Teleconferencing *Reminde�:Agendas for all municipal/academic meetings are posted a minimum of72 hours before the meeting begins and can be found on our Town's website under the tab "Government/Aqendas&Minutes." **For meeting aqendas and detai/s on WA ca/endar events or Municipa/ca/endar events,p/ease �isit the West/ake Academy website or the Town of Westlake website for further assistance. Town Council a nd Boa rd of Trustees Item # 4 — Consent Agenda CONSENT AGENDA: All items listed below are considered routine by the Town Council and will be enacted with one motion. There will be no separate discussion of items unless a Council Member or citizen so requests, in which event the item will be removed from the general order of business and considered in its normal sequence. a. Consider approval of the minutes from the Board of Trustees meeting on September 14, 2020. • • . , .• MINUTES OF THEWESTLAKE ACADEMY BOARD OF TRUSTEES MEETING September 14, 2020 In accordance with Order of the Office of the Governor issued March 16, 2020 and March 19, 2020, the Board of Trustees of Westlake Academy conducted a virtual meeting at 5:00 p.m. on Monday, September 14, 2020 by video and telephonic conference in order to advance the public health goal of limiting face-to-face meetings (also called "social distancing")to slow the spread of the Coronavirus (COVID-19). There was no public access to the physical location described above. A recording of the telephonic meeting was made and is available to the public. PRESENT: President Laura Wheat and Trustees: Carol Langdon, Greg Goble, Alesa Belvedere, and Rajiv Trivedi. ABSENT: Rick Rennhack. OTHERS PRESENT: Superintendent Amanda DeGan, Deputy Town Manager Noah Simon, Assistant Town Manager Jarrod Greenwood, School Attorney Janet Bubert, Town Attorney Stan Lowry, Executive Director Dr. Mechelle Bryson, College Counselor Carl Tippen, MYP Counselor Sara DeRaud, Secondary Counselor Lisa Phillips, PYP Counselor Lakshmi Morgan, Town Secretary Todd Wood, Director of Information Technology Jason Power, Director of Finance Debbie Piper, Director of Facilities & Public Works Troy Meyer, Director of Administrative Services Ginger Awtry, PYP Principal Rod Harding, Assistant PYP Principal Beckie Paquin, PYP Coordinator Alison Schneider, MYP Coordinator Terri Watson, DP Principal/Coordinator Dr. James Owen, Communications Manager John Sasser, Business Manager Marlene Rutledge, Budget & Financial Analyst Kelsey Wong, and Registrar Kimberly Gardner. Regular Session 1. CALL TO ORDER President Wheat called the Regular Session to order at 5:00 p.m. BOT Minutes—9/14/20 Page 1 of 6 2. CITIZEN COMMENTS President Wheat provided a brief summary of instructions to the public for citizen comments. No one addressed the Board of Trustees. 3. ITEMS OF COMMUNITY INTEREST: Communications Manager Jon Sasser provided an update on this item. Reopening of Westlake Town Hall and Municipal Court: The Westlake Town Hall and Municipal Court was successfully re-opened on September 1, 2020. Masks will be required for those entering these facilities, and social distancing is being observed in accordance with CDC and state guidelines. North Texas Giving Day: This event is scheduled for September 17t". Mr. Sasser noted that there were many great charities that everyone would have the opportunity to support, especially the Westlake Academy Foundation Blacksmith program. Upcoming meetings: The next Planning and Zoning meeting is scheduled for September 21, 2020 at 5:00 p.m. via telephonic and video conference. The next Town Council meeting is scheduled for September 28, 2020 at 5:00 p.m. via telephonic and video conference. Coffee and Conversation with the Mayor: This event is tentatively scheduled for October 5, 2020. Westlake Classic Car Show: This event was originally scheduled for October 17, 2020 and has been cancelled due to public health concerns regarding COVID-19. 4. CONSENT AGENDA: All items listed below are considered routine by the Board of Trustees and will be enacted with one motion. There will be no separate discussion of items unless a Board Member or citizen so requests, in which event the item will be removed from the general order of business and considered in its normal sequence. a. Consider approval of the minutes from the meeting on June 22, 2020. b. Consider approval of the minutes from the meeting on July 21, 2020. MOTION: Trustee Langdon made a motion to approve the consent agenda. Trustee Trivedi seconded the motion. The motion carried by a vote of 4-0. President Wheat then stated that Item #7 on the agenda would be moved to follow Item #4 on the agenda, allowing for citizen comments earlier in the meeting. BOT Minutes—9/14/20 Page 2 of 6 5. PRESENTATION AND DISCUSSION ITEMS: a. Presentation and discussion regarding Counseling Services. Executive Director Dr. Mechelle Bryson introduced this item, stating that the counselors have done an amazing job this year, going above and beyond. She then asked Mr. Carl Tippen to present to the Board of Trustees. Mr. Tippen began with the primary goals of the counseling program: • Acedemic Support; • Social and Emotional Wellness; • Developmental Responsiveness; and • College and Career Readiness. Mr. Tippen then noted that the counseling program was a "one-stop shop" with the support services that are provided, which includes academic support, engagement and interaction with peer groups, coping with emotional trauma, and preparation for college or other career choices. Ms. Sara DeRaud provided and overview of the Character Strong Program, which was funded by a generous donation from the Westlake Academy Foundation. Ms. Lakshmi Morgan and Ms. Lisa Phillips then provided an overview of the social and emotional learning initiatives of the counseling program, including the policies and procedures that are being used. It was noted that all Westlake Academy Counselors are certified trainers in QPR (Question, Persuade, and Refer) for suicide prevention efforts. Mr. Tippen then elaborated on the college readiness activities that meet all state requirements and explained how these activities correlate into college matriculation and retention rates. b. Presentation and discussion regarding IB site visit. DP Principal/DP Coordinator Dr. James Owen, MYP Coordinator Terri Watson, and PYP Coordinator presented this item. Dr. Owen began by explaining that the evaluation is the primary means of ensuring that schools are meeting the IB standards and practices, and this process can also serve as a catalyst for school improvement. Schools complete a self-study process assessing their implementation of IB standards and gathering evidence to support their assessment. The IB then evaluates this evidence and provides feedback schools. The IB site visit was positive, and the Coordinators will update the Action Plan based on the IB Report and new 2020 IB standards and practices. The next self-evaluation process will be conducted in 2024, and the next IB site visit will occur in spring 2025. c. Presentation and discussion of revised PYP Report Cards. Executive Director Dr. Mechelle Bryson introduced this item, and PYP Principal Rod Harding made a presentation to the Board. He explained the timeline released from the IB, which began in October 2018 with the release of PYP enhancements and BOT Minutes—9/14/20 Page 3 of 6 ending in September 2020 by connecting to stakeholders. He then explained that the primary purposes of assessment and grade reporting were the measurement of learning and the reporting of learning. PYP Coordinator Alison Schneider then explained that this new process is designed to be objective with state standards, provide more specificity regarding student performance, and ensure that classroom experiences are aligned to meet state standards and provide teachers with greater insight on student performance. 6. DISCUSSION AND CONSIDERATION OF RESOLUTION 20-12, AMENDING THE PRIMARY (K-G5) ASSESSMENT AND GRADE REPORTING POLICY (BOARD POLICY NO. 6.09). Following the presentation of Item 5c, President Wheat asked the Board for a motion to approve Item #6. MOTION: Trustee Langdon made a motion to approve Resolution 20-12. Trustee Goble seconded the motion. The motion carried by a vote of 4-0. 7. DISCUSSION REGARDING THE BACK-TO-SCHOOL PLAN FOR THE 2020-2021 ACADEMIC YEAR. President Wheat moved Item #7 to follow Item #4, which allowed citizen comments to be presented earlier in the meeting. She stated that school administrators would discuss the Back-to-School Plan first, and the meeting would be opened for comments following this presentation. Superintendent Amanda DeGan presented this item. She noted that the previous four (4) weeks has utilized the remote learning option at Westlake Academy, which has allowed time for additional preparation for the realities that are being faced due to the COVID-19 pandemic and developing protocols that would be used by stafF and students. During this time, procedures have been developed or modified for sporting events, drop-off and pickup of students, providing lunch services, and use of PPE (Personal Protective Equipment). Plans have been reviewed to ensure the continuity of education for teachers while maximizing safety and effectiveness. The synchronous and asynchronous educational plans have also been reviewed, and feedback has been mostly positive. Ms. DeGan explained that prevention and mitigation of spreading the virus has been a top initiative. This includes self-screening by staff and students, individuals with confirmed cases not being allowed on campus, expanded use of PPE, lunch being served in classrooms for the first four (4) weeks, utilizing enhanced cleaning protocols, and providing protocol training for students that has been approved by TEA (Texas Education Agency). She then explained the requirements that would be followed in response to any confirmed case that may be identified on campus. Mrs. DeGan then explained the options that are available to the Board moving forward. This included extending ofF-campus learning for an additional four (4) weeks or utilizing a phased-in approach to on-campus learning. It was recommended by staff that students BOT Minutes—9/14/20 Page 4 of 6 return to campus on September 21St. This approach would involve remote learning, in- person learning, and a hybrid option for students in grades 9-12 for the first nine (9) weeks. The hybrid option would be reviewed prior to the beginning of the second nine-week period. President Wheat then opened the meeting for public comments. Mr. Wayne Stoltenberg addressed the Board and expressed his appreciation for the efforts of the Board and staff members. He began by stating that Westlake Academy should return to in-person learning five days per week as soon as possible and hoped that the Board would consider this option. President Wheat thanked Mr. Stoltenberg for his comments. Dr. Anna White then addressed the Board and thanked everyone for their hard work. She asked if the approximate percentage of high school students who have chosen the fully remote option was known. Executive Director Dr. Mechelle Bryson replied that 82 students have chosen the fully remote option, and 237 students have chosen the hybrid option. Dr. White then stated that she supported Mr. Stoltenberg's comments and mentioned that international studies have statistically shown that students returning to school campuses have not increased the risk to teachers wearing masks. Dr. White underscored that Westlake Academy should be fully re-opened as soon as possible. She then provided information that many tests may results in false positive or false negative results, and much of the information found in medical literature regarding COVID-19 differs. 8. FUTURE AGENDA ITEMS None. 9. BOARD RECAP / STAFF DIRECTION Provide follow-up to the Board on QPR training for next year. 10. AD)OURNMENT There being no further business before the Board of Trustees, President Wheat asked for a motion to adjourn the meeting. MOTION: Trustee Trivedi made a motion to adjourn the meeting. Trustee Langdon seconded the motion. The motion carried by a vote of 4-0. President Wheat adjourned the meeting at 7:26 p.m. ANY ITEM ON THIS POSTED AGENDA COULD BE DISCUSSED IN EXECUTIVE SESSION AS LONG AS IT IS WITHIN ONE OF THE PERMITTED CATEGORIES UNDER SECTIONS 551.071 THROUGH 551.076 AND SECTION 551.087 OF THE TEXAS GOVERNMENT CODE. BOT Minutes—9/14/20 Page 5 of 6 APPROVED BY THE BOARD OF TRUSTEES ON DECEMBER 7, 2020. ATTEST: Laura Wheat, President Todd Wood, Town Secretary BOT Minutes—9/14/20 Page 6 of 6 Town Cou nci I a nd Board of Trustees Item # 5 — Presentation and Discussion Items a. Presentation and discussion of 2020 Utility Rate study from NewGen Strategies & Solutions. b. Presentation and discussion of the FY 2019-2020 annual audit report from Weaver and Tidwell, L.L.P., and consideration of Resolution 20-15, approving the FY 2019-2020 annual audit report. c. Presentation and discussion regarding Enrollment for the Fall 2020 semester. d. Presentation and discussion of the Westlake Academy Academic Honesty Policy. Westlake Town Council TYPE OF ACTION T x E i o w N o F WESTLAKE Workshop - Discussion Item oisriNcrivE sv oEsicN Westlake Town Council Meeting Monday, December 07, 2020 ToPrc: Presentation and discussion of 2020 Utility Rate study from NewGen Strategies & Solutions STaFF CoNTaCT: Dianna Orender, Public Works Assistant Kory Kittrell, Public Works Superintendent Troy Meyer, Director of Facilities and Public Works Jarrod Greenwood, Assistant Town Manager Strategic Alignment i � � . , . ., ; . . � � - � i Exemplary Service & Governance - Fiscal Responsibility Fiscal Stewardship we set the standard by delivering Increase Financial unparalleled municipal and Capacity/Reserves educational services at the lowest cost. Time Line- Start Date: December 7, 2020 Completion Date: December 14,2020 Funding Amount: N/A Status - N/A Source-N/A Contract: No Forms: N/A EXECUTIVE SUMMARY(INCLUDING APPLICABLE ORGANIZATIONAL HISTORY) The purpose of a rate study, within our community, is to determine whether the Utility Fund is accomplishing full cost recovery for services while maintaining an appropriate fund reserve balance in accordance with the Town's adopted Financial Policy. The new rate study was performed by a new rate consultant,NewGen Strategies & Solutions, that has a national presence and is used considerably across our region. NewGen Strategies & Page 1 of 2 Solutions, is a management and economic consulting firm specializing in serving the utility industry. They provide �nancial, cost of service (COS), rate design, valuation, strategy, eXpert witness, stakeholder, and sustainability consulting services to a variety of clients including municipalities, counties, water supply corporations, irrigation districts, councils of government, regional and state agencies and commissions, state and federal courts, and state and federal oversight agencies. Their expertise includes litigation support in state and federal legal and regulatory proceedings, utility business and financial planning, and sustainability strategy for water, wastewater, solid waste, electric, and natural gas utilities. The Town of Westlake's 2020 Utility Rate Study provides a comprehensive review of historical and projected water/sewer consumption and revenues, capital assets, depreciation, operation and maintenance expenses, and debt. Key drivers of the proposed rates includes a projected increase in the number of customers, current and future debt obligations, and wholesale water/sewer rate alignment. Historically, Town staff has conducted the utility rate studies in late Summer/early Fall with Council adopting new rates in the December/January timeframe. Implementing new rates in the winter months reduces the impact to customers as water usage tends to be lower. RECOMMENDATTON Review and discussion of the proposed rates. ATTACHMENTS None Page 2 of 2 �x��Y��� f �. h�':� :.. � '� ��}�'�F estlake Academy Board of Trustees �� � s�.������� TYPE OF ACTiON Regular Meeting - Action Item Westlake Board Meeting Monday, December 07, 2020 ToPrc: Consider a Resolution approving the FY 2019-2020 annual audit report from Weaver and Tidwell, L.L.P. STAFF CONTACT: Debbie Piper, Finance Director Ginger Awtry, Administrative Services Director Marlene Rutledge, Academic Business Manager Strategic Alignment Vision, Value, Mission Perspective Curriculum Outcome Ob'ective Vision: Westlake Academy inspires college bound students to achieve their highest individual Fiscal Stewardship PYP/MYP/DP Improve Financial potential in a nuturing Stewardship environment that fosters the traits found in the IB Learner Profile. Strategic Initiative Outsidc thc Scopc of Idcntificd Stratcgic Initiarivcs Time Line - Start Date: September 1, 2019 Completion Date: August 31, 2020 Funding Amount: $20,000 Status - Funded Source- General Fund EXECUTIVE SUMMARY (INCLUDING APPLICABLE ORGANIZATIONAL HISTORY) Weaver and Tidwell, L.L.P. has completed the Westlake Academy 2019-2020 annual financial audit report. As in prior years, we again had no "Findings", reportable conditions nor material weaknesses to be reported to TEA. Findings are items required by TEA to be reported regarding TEA compliance, large variances in budget vs. actual balances, etc. TEA doesn't necessarily look upon these as bad (they require an explanation of all "Findings" and review in subsequent years), but it certainly looks good for the Academy not to have any for the current year. The General Fund year-end fund balance is $1,751,177, which is a $377,340 increase over the prior year. The increase is primarily attributable to the addition of 20 students (869 in 2019 to 889 in 2020), and a substantial decrease in operating expenditures due to the effects of COVID-19 and the school's closure. This ending fund balance represents 70 operating days. Following is a summary of the major budget to actual variances. These totals reflect only the General Fund. REVENUES —The ending revenue balance represents $195,908 less than anticipated. • Local revenue o Student fees for parking,athletic participation,and technology use are usually received in August during the back-to-school event. We would typically see approximately$75K being received in August for the next fiscal year,but due to the both the delay in the opening of school and decreased participation due to remote learning, only $25K was collected in August with additional revenue being received in September. • State revenue o The decrease in state revenue was partly due to the changes to the average daily attendance (ADA) reported following the school's closure and the remainder represents an over-estimated amount for TRS On-Behalf amounts. This amount represents contributions made by the State to the Teacher Retirement System of Texas on behalf of the employees. There is no money involved regarding the accounting of these amounts but per GASB 24, these amounts must be recognized as equal revenues and expenditures by the Academy. EXPENDITURES — The ending expenditure balance shows the Academy spent $387,729 less than anticipated. The areas showing the largest decreases were the following: • Payroll o Professional Staf£ Original budget based on highly tenured staff that left during the year and/or at year-end and replaced by less tenured employees, resulting in lower payroll expenditures. o Support Staf£ Decreased payroll due to COVID-19 school closure o TRS On-Behal£ Budgeted calculation for the surcharge was over-estimated resulting in reduced TRS expenditures. (See explanation above regarding this surcharge) • Materials & Supplies o These savings were primarily due to a decrease in expenditures while the school was closed between March and August 2020. Any COVID-19 related expenditures were captured in Fund 491 to identify the expenditures and receive a partial CARES Act reimbursement. • Other Operating Expenditures o Staff Travel: Significantly decreased due to the pandemic Please review the Management Discussion and Analysis document included in the audit report for statistical information during the year ended August 31, 2020. RECOMMENDATION Recommend approval of the resolution approving the FY 2019-2020 annual audit as submitted. ATTACHMENTS 1. Resolution 20-15 Approving Annual Financial Audit Report Fiscal Year 19-20 2. Audit report for Fiscal Year Ended August 31, 2020 WESTLAKE ACADEMY RESOLUTION NO. 20-15 A RESOLUTION OF THE WESTLAKE ACADEMY BOARD OF TRUSTEES APPROVING THE FISCAL YEAR 2019-2020 ANNUAL AUDIT REPORT FROM WEAVER AND TIDWELL, L.L.P. WHEREAS, Section 7.3.6 of the Data Collection & Reporting section of the Financial Accountability System Resource Guide Update 11.0 requires that the annual financial and compliance report be audited by an independent auditor, and WHEREAS, Section 7.3.6 of the Data Collection & Reporting section of the Financial Accountability System Resource Guide Update 11.0 requires the audit report be submitted to the Division of School Financial Audits of TEA no later than 150 days after the close of the fiscal year, and WHEREAS, the audit report must be approved by the Board of Trustees. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF WESTLAKE ACADEMY: SECTION 1: The above findings are hereby found to be true and correct and are incorporated herein in its entirety. SECTION 2: That the Board of Trustees of Westlake Academy hereby approves the fiscal year 2019-2020 annual audit report from Weaver and Tidwell, L.L.P. attached as Exhibit «A�� � SECTION 3: If any portion of this resolution shall, for any reason, be declared invalid by any court of competent jurisdiction, such invalidity shall not affect the remaining provisions hereof and the Board hereby determines that it would have adopted this Resolution without the invalid provision. WA Resolution 20-15 Page 1 of 2 SECTION 4: That this resolution shall become effective from and after its date of passage. PASSED AND APPROVED ON THIS 7TH DAY OF DECEMBER 2020. Laura Wheat, President ATTEST: Todd Wood, Town Secretary Amanda DeGan, Superintendent APPROVED AS TO FORM: Janet S. Bubert or L. 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' � � .1� �:y-r . � ... . .. � , ' ..'vr '�aw'^=i•-..i � ., , � - � ..-�i� _ - - "��it . . . • � � , � � 1 ■ � � 1 • - . - ► . � - . ii i • - ' • . • - . - - . . . - . - . . � - � • This Page Intentionally Left Blank Westlake Academy (A Component Unit of the Town of Westlake) Annual Financial Report For the Year Ended August 31, 2020 Table of Contents Page Exhibit Introductory Section Certificateof Board................................................................................................................................ii Financial Section IndependentAuditor's Report..............................................................................................................3 Management's Discussion and Analysis.............................................................................................5 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position..................................................................................................................14 A-1 Statementof Activities.......................................................................................................................15 B-1 Fund Financial Statements BalanceSheet .....................................................................................................................................16 C-1 Statement of Revenues, Expenditures, and Changesin Fund Balance...............................................................................................................17 C-2 Fiduciary Funds Statement of Fiduciary Net Position ................................................................................................18 D-1 Notes to the Financial Statements.....................................................................................................19 Required Supplementary Information Budgetary Comparison Schedule-General Fund ........................................................................42 E-1 Notes to the Budgetary Comparison Schedule..............................................................................43 Schedule of Academy's Proportionate Share of Net Pension Liability-Teacher Retirement System ......................................................................44 E-2 Schedule of Pension Contributions-Teacher Retirement System ..............................................45 E-3 Schedule of Academy's Proportionate Share of Net OPEB Liability-Teacher Retirement System TRS Care Plan.................................................46 E-4 Schedule of OPEB Contributions-Teacher Retirement System TRS Care Plan ........................47 E-5 Combining Statements Nonmajor Governmental Funds CombiningBalance Sheet................................................................................................................50 F-1 Combining Statement of Revenues, Expenditures, and Changesin Fund Balance...............................................................................................................51 F-2 Internal Control Report Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards .................................................................55 i Certificate of Board WESTLAKE ACADEMY TARRANT 220-810 Name of School County Co.-District Number We,the undersigned,certify that the attached annual financial reports of the above-named school were reviewed and (check one) _approved disapproved for the year ended August 31, 2020 at a meeting of the Board of Trustees of such school on the day of Assistant to Board Secretary Signature of Board President If the Board of Trustees disapproved of the auditors' report, the reason(s) for disapproving it is(are): (Attach list as necessary) ii Financial Section , This Page Intentionally Left Blank 2 wea�er � Independent Auditor's Report To the Board of Trustees Westlake Academy Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the discretely presented component unit, each major fund,and the aggregate remaining fund information of Westlake Academy (the Academy), a component unit of the Town of Westlake, as of and for the year ended August 31, 2020, and the related notes to the financial statements, which collectively comprise the Academy's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America;this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements,whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of Westlake Academy, as of August 31, 2020, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Weaver and Tidwell, L.L.P. 2300 North Field Street, Suite 1000 � Dallas, Texas 75201 Main: 972.490.1970 CPAs AND ADVISORS � WE R.COM The Board of Trustees Westlake Academy Other Matters Required Su�plementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comparison information, schedules of the Academy's proportionate share of the net pension liability and the net OPEB liability, and schedules of Academy pension and OPEB contributions on pages 5 through 12, and 42 through 47, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Academy's basic financial statements. The nonmajor governmental funds combining statements are presented for the purposes of additional analysis and are not a required part of the basic financial statements. The nonmajor governmental funds combining statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the nonmajor governmental funds combining statements are fairly stated in all material respects in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 2, 2020, on our consideration of the Academy's internal control over financial reporting and on our tests of its compliance with certain provisions of laws,regulations,contracts,and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Academy's internal control over financial reporting and compliance. C.tJ..vlit�il �ix0� �-,��,� WEAVER AND TIDWELL, L.L.P. Dallas, Texas December 2, 2020 4 Westlake Academy (A Component Unit of the Town of Westlake) Management's Discussion and Analysis August 31, 2020 This section of Westlake Academy's (the Academy) annual financial report presents our discussion and analysis of the Academy's financial performance during the fiscal year ended August 31, 2020. Please read it in conjunction with the Academy's financial statements, which follow this section. Financial Highlights • On the government-wide financial statements, the liabilities of the Academy exceeded assets by $3,109,451 (Net Position).This is a decrease of$203,400 for the year ended August 31, 2020. • The Academy reported $11,377,681 in expenses related to governmental activities, of which $3,616,554 of these expenses were offset by program-specific charges for services or grants and contributions.This is a total expense increase of$1,071,448 from the prior year. • The General Fund reported a fund balance this year of $1,751,177, an increase of $377,340 from the prior year. Overview of the Financial Statements This annual report consists of three parts: management's discussion and analysis (this section), basic financial statements, and required supplementary information. The basic financial statements present different views of Academy: • The first two statements are government-wide financial statements that provide both long-term and short-term information about the Academy's overall financial status. • The remaining statements are fund financial statements that focus on individual parts of the government, reporting the Academy's operations in more detail than the government-wide statements. • The governmental funds statements tell how general government services were financed in the short term as well as what remains forfuture spending. • Fiduciary fund statements provide information about the financial relationships in which the District acts solely as a trustee or agent for the benefit of others,to whom the resources in question belong. The financial statements also include notes (starting on page 19) that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the information in the financial statements. The combining statements for nonmajor funds contain even more information about the Academy's individual nonmajor funds. Figure A-1 summarizes the major features of the Academy's financial statements, including the portion of the Academy government they cover and the types of information they contain. The remainder of this overview section of management's discussion and analysis explains the structure and contents of each of the statements. 5 Westlake Academy (A Component Unit of the Town of Westlake) Management's Discussion and Analysis August 31, 2020 Government-Wide Statements The government-wide statements beginning on page 14, report information about the Academy as a whole using accounting methods similar to those used by private-sector companies. Its primary objective is to show whether the Academy is better or worse off as a result of the year's activities. The statement of net position includes all of the Academy's assets and liabilities, deferred inflows and outflows of resources. The facilities used in the Academy's operations are included in the Town of Westlake's financial statements. All of the current year's revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid. The Academy's revenue is divided into those provided by outside parties who share the costs of some programs, such as payments received from extracurricular activities and grants provided by the U.S. Department of Education to assist children with disabilities (program revenue), and general revenue provided by donations from the public or by Texas Education Agency (TEA) in equalization funding processes (general revenue). All the Academy's assets are reported whether they serve the current year or future years. Liabilities are considered regardless of whether they must be paid in the current or future years. Figure A-1 Major fealures of the Academy's Government-Wide and Fund Financial Statements Type of Statement Government-wide Governmental Funds Fid�ciary Funds Entire government(except Activities of the Instances in which the Scope fiduciary funds)and Academy that are not Academy is the trustee the Academys proprietary or fiduciary or agent for someone component units else's resources Balance Sheet, Statement of Fiduciary Required Statement of Net Statement of Revenues, Net Position,Statement Financial Position,Statement of Expenditures and Statements Activities Changes in Fund of Changes in Fiduciary Balances Net Position Accounting basis Accrual accounting Modified accrual Accrual accounting and and and economic accounting and current economic resources measurement resources focus financial resources focus focus focus Only assets expected to All assets and liabilities Types of All assets and liabilities be vsed up and liabilities both short-term and long accountability both financial and that become due during term;the Academy's information capital,short-term the year or soon funds do not currently and long-term thereafter. No capital include capital assets, assets included. although they can. Revenue for which cash is received during or All revenues and soon after the end of All revenues and Types of expenses during year, the year,expenditvres expenses during year, Inflow/outflow regardless of when when goods or services regardless of when cash Information cash is received or have been received paid and payment is due is received or paid. during the year or soon thereafter. 6 Westlake Academy (A Component Unit of the Town of Westlake) Management's Discussion and Analysis August 31, 2020 The two government-wide statements report the Academy's net position and how it has changed. Net position-the difference between the Academy's assets, deferred outflows of resources, and liabilities and deferred inflows of resources-is one way to measure the Academy's financial health or position. • Over time, increases or decreases in the Academy's net position are an indicator of whether its financial health is improving or deteriorating, respectively. • To assess the overall health of the Academy, one should consider additional non-financial factors such as changes in the Academy's average daily attendance and the condition of the Academy's facilities. The government-wide financial statements of the Academy include the Governmental activities. Most of the Academy's basic services are included here, such as instruction, curriculum and staff development, extracurricular activities, maintenance,health services and general administration.State funds,donations and grants finance most of these activities. Component Unit The government-wide financial statements also present the activity of Westlake Academy Foundation, a discretely presented component unit. The Foundation was organized exclusively for charitable and educational purposes and provides funds to help support the Academy. During 2020, the Foundation contributed $1,212,197 to the Academy to enhance educational opportunities. These contributions are recorded as operating grants and contributions in the Statement of Activities. Fund Financial Statements The fund financial statements begin on page 16 and provide more detailed information about the Academy's most significant funds, not the Academy as a whole. Funds are accounting devices that the Academy uses to keep track of specific sources of funding and spending for particular purposes. • Some funds are required by State law and by bond covenants. • The Board of Trustees establishes other funds to control and manage money for particular purposes or to show that it is properly using certain taxes and grants. Below are the three types of funds. The Academy had only"Governmental Funds" and "Fiduciary Funds" for the year ended August 31, 2020. • Governmental funds-Most of the Academy's basic services are included in governmental funds, which focus on (1) how cash and other financial assets that can readily be converted to cash flow in and out and (2) the balances left at year-end that are available for spending. Consequently, the governmental fund statements provide a detailed short-term view that helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the Academy's programs. Because this information does not encompass the additional long-term focus of the government-wide statements, we provide additional information at the bottom of the governmental funds statement that explain the relationship (or differences) between them. • Fiduciary fund-the Academy maintains a fiduciary fund to account for resources held for student activities in a custodial capacity. These fiduciary activities are reported in a separate statement of fiduciary net position and a statement of changes in fiduciary net position on page 18. These activities are excluded from the school's government-wide financial statements because they cannot use these assets to finance their operations. 7 Westlake Academy (A Component Unit of the Town of Westlake) Management's Discussion and Analysis August 31, 2020 Proprietary funds-Services for which the Academy would charge customers a fee are generally reported in proprietary funds. Proprietary funds, like the government-wide statements, provide both long and short- term financial information.The Academy presently has no proprietary funds. Government-Wide Financial Analysis The following analysis focuses on the net position (Table A-1), sources of revenue (Figure A-2), and changes in net position (Table A-2) of the Academy's governmental activities. The Academy reports a deficit net position of ($3,109,451) at August 31, 2020. As noted earlier, net position may serve over time as a useful indicator of a government's financial position. The Academy's governmental activities during the fiscal year caused the deficit in net position to increase from $2,906,051 in 2018 to $3,109,451 in 2019. The governmental activities' net position decreased by 7 percent ($203,400). The decrease was primarily due to the net effect of the following: (1) An approximately $1.0 million increase in expenses primarily due to a $797,725 increase in instruction expenses (which included$585,623 of capital lease-related expenses as well as the cost of additional staffing and budgeted pay raises). (2) Additional state funding for salaries and retirement were received due to the mandates of the 86th legislative session's Texas School Finance House Bill 3. State aid and formula grants increased by$683,314. (3) A $223,618 decrease in charges for services due to a reduction seen across the board as a result of the COVID-19 pandemic. The major decrease of$138,105 was seen in extracurricular activities which includes the after-school programs. Fund Financial Analysis Fund balance in the General Fund increased by$377,340, primarily due to the net effect of the $683,314 increase in state aid noted above and a $361,582 increase in expenditures (net of the$585,623 of capital lease-related expenditures). 8 Westlake Academy (A Component Unit of the Town of Westlake) Management's Discussion and Analysis August 31, 2020 Table A-1 Westlake Academy's Net Position Governmental Activities Component Unit 2020 2019 2020 2019 Current assets $ 1,864,770 $ 2,496,339 $ 2,677,971 $ 2,380,643 Total assets 1,864,770 2,496,339 2,677,971 2,380,643 Deferred outflows of resources 1,352,708 1,185,191 - - Current liabilities 101,706 1,103,477 8,410 - Non-current liabilities 4,731,645 4,440,113 - - Totalliabilities 4,833,351 5,543,590 8,410 - Deferred inflows of resources 1,493,578 1,043,991 - - Net position: Restricted 163 2,760 298,302 284,163 Unrestricted (3,109,614) (2,908,811) 2,371,259 2,096,480 Total net position $ (3,109,451� $ (2,906,051� $ 2,669,561 $ 2,380,643 Figure A-2 Westlake Academy Sources of Revenue for Fiscal Year 2020 7.3%� 0.8% ■Charges for Service � ■Operating Grants & 243% Contributions Investment Earnings 0.2% o ■State Funding 67.5/o � Capital Grants& Contributions 9 Westlake Academy (A Component Unit of the Town of Westlake) Management's Discussion and Analysis August 31, 2020 Table A-2 Westlake Academy's Change in Net Position Governmental Activ ities Component U nit Activ ities 2020 2019 2020 2019 Rev enues Program rev enues: Charges for services $ 90,123 $ 313,741 $ - $ - Operating grants and contributions 2,713,955 2,210,040 1,657,246 1,790,216 Capital grants and contributions 812,476 819,949 - - General revenues: State aid and formula grants 7,540,434 6,857,120 - - Investmentearnings 17,293 22,558 154,193 22,890 Total rev enues 1 1,174,281 10,223,408 1,811,439 1,813,106 Expenses I nstruction 6,775,228 5,977,502 I nstructional resources and media services 129,085 130,117 - - Curriculum and staff dev elopment 59,763 114,011 - - I nstructional leadership 166,215 169,080 School leadership 1,097,465 1,040,519 Guidance, counseling, and evaluation services 664,300 517,379 - - Health services 133,519 91,489 Food service 52,113 52,679 - - Extracurricular activities 441,532 442,632 - - General administration 274,546 227,699 - - Facilities maintenance and operations 1,109,880 1,1 18,657 - - Security and monitoring services 45,150 35,753 - - Data processing services 253,577 240,331 - - Community services 154,997 144,385 - - Program/support services 1,522,521 1,602,820 Debt sery ice-interest 20,311 4,000 - - Total expenses 1 1,377,681 10,306,233 1,522,521 1,602,820 Change in net position (203,400) (82,825) 288,918 210,286 Beginning net position (2,906,051) (2,823,226) 2,380,643 2,170,357 Ending net position $ (3,109,451) $ (2,906,051) $ 2,669,561 $ 2,380,643 10 Westlake Academy (A Component Unit of the Town of Westlake) Management's Discussion and Analysis August 31, 2020 Table A-3 (below) presents the cost of each of the Academy's largest functions as well as each function's net cost (total cost less fees generated by the activities and intergovernmental aid). The net cost reflects what was funded by state revenues as well as local tax dollars. • The cost of governmental activities this year was $1 1,377,681 • Some of the cost was paid by those who directly benefited from the programs, $90,123 and some of the cost was paid through grants and contributions $3,526,431 Table A-3 Total� Total� Total Cost of Services Change Net Cost of Services Change 2020 2019 2019-20 2020 2019 2019-20 Instruction $ 6,775,228 $ 5,977,502 13� $ 4,617,129 $ 4,095,998 13% Schoolleadership 1,097,465 1,040,519 5% 798,238 778,292 3� I nstructional leadership 166,215 169,080 -2� 123,834 126,737 -2% Guidance,counseling and evaluation services 664,300 517,379 28� 502,042 391,315 28% Extracurricular activities 441,532 442,632 0� 185,666 99,040 87� General administration 274,546 227,699 21� 207,426 170,894 21% Facilities maintenance and operations 1,109,880 l,l 18,657 -l� 768,410 790,740 -3� Data processing services 253,577 240,331 6� 218,087 170,589 28% General Fund Budgetary Highlights • Year-end fund balance is$1,751,177 which increased $377,340 over the prior year.The increase is attributable to the addition of 20 students (869 in 2019 to 889 in 2020), and a substantial decrease in operating expenditures due to the effects of COVID-19 and the school's closure from March 16, 2020 through August 24, 2020. • Local revenue budget decreased by 5� ($83,480) due to the reduction of projected equipment sale proceeds from the prior iPad lease. The proceeds were received at the end of FY 2018-2019. • State program revenue budget decreased slightly, $18,515 or .22�0, due to the fluctuations in Career 8� Technology Education participation and changes to the average daily attendance (ADA) reporting following the school's closure. • The expenditure budget was increased by $443,540 (5�) primarily due to the addition of a new capital lease to maintain the one-to-one iPad initiative, which was offset by capital lease proceeds. Economic Factors and Next Year's Budget • General Fund revenues are budgeted to increase less than '/4 of 1� over the actual revenues realized in FY 2019-2020. This is due to the COVID-19 public health crisis, which has presented unique challenges to our academic budget and for the upcoming school year. In addition, a slight decrease in enrollment by four (4) students for 2020-2021 is anticipated. Appropriations within the General Fund budget are estimated to reach $9,393,877, which is a cumulative decrease of 2% ($196,335) over actual expenditures in FY 2019-2020. 11 Westlake Academy (A Component Unit of the Town of Westlake) Management's Discussion and Analysis August 31, 2020 • Payroll & related expenditures: For FY 2020-2021, expected payroll expenditures will increase $261,475, approximately 4%, over the actual expenditures in FY 2019-2020. This includes a step increase for Teachers, Librarians, Counselors, Diagnosticians, and Nurses, averaging 2%, and a l�o increase for administrative and hourly staff. The Academy's FTE total will decrease by .88 resulting from the restructuring of the secondary program principal and coordinator positions. • Professional & contracted services: This category includes expenditures related to services rendered to the Academy by firms,individuals,and other organizations.There will be an estimated decrease of 7� ($68,171) in FY 2020-2021 over the actual expenditures in FY 2019-2020. Following the Academy closing beginning March 16, 2020 due to COVID-19, actual expenditures for janitorial services increased due to additional disinfecting and deep cleaning protocols required throughout the campus. HVAC and landscaping expenditures also increased in FY 2019-2020 with maintenance of older AC units and changes in contractors, respectively. • Materials 8�su�plies:This category includes expenditures associated with consumables used in the classroom and in the general operations of the campus. For 2020-2021, there will be an estimated decrease of 57� ($474,879) over actual FY 2019-2020 expenditures due to the new three-year capital lease for the one-to-one iPad initiative initiated in FY 2019-2020. • Miscellaneous operatina costs: These costs are associated with insurance, professional development travel, membership fees and dues, and other miscellaneous costs. There will be an estimated increase of $47,143, approximately 11% over FY 2019-2020 actuals. With the school closure due to COVID-19, all faculty and administrator travel for professional development was cancelled through the end of 2020, which decreased actual expenditures as refunds were received for prepaid training and conference registrations and accommodations. • Debt Service: These costs are associated with the three-year lease for iPads supporting the one- to-one device initiative. There is no anticipated change in expenditures during FY 2020-2021, which is the second year of the three-year lease. iPad maintenance and repair costs are self- funded through the$55 annual technology use fee paid by each student at the beginning of the school year. If the FY 2020-2021 budget estimates are realized, the Academy's General Fund's budgetary fund balance is expected to increase by$38,101 by August 31, 2021. Contacting the Academy's Financial Management This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the Academy's finances and to demonstrate the Academy's accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Director of Administrative Services, Ginger Awtry, at (817) 490-5712 or the Academic Business Manager, Marlene Rutledge, at (817) 490-5737, or by writing to 1500 Solana Blvd, Building 7, Suite 7200, Westlake, Texas 76262. 12 Basic Financial Statements 13 Westlake Academy Exhibit A-1 (A Component Unit of the Town of Westlake) Statement of Net Position August 31, 2020 Data 1 4 Control Governmental Component Codes Activities Unit ASSETS 1110 Cash and cash equivalents $ 1,351,234 $ 744,789 1120 Current investments 105 1,927,540 1240 Due from other governments 430,161 142 1290 Other receivables 7,099 5,500 1410 Prepaid expenses 76,171 - 1000 Total assets 1,864,770 2,677,971 DEFERRED OUTFLOWS OF RESOURCES 1705 Deferred outflows of resources-pensions 955,246 - 1705 Deferred outflows of resources-OPEB 397,462 - 1700 Total deferred outflows of resource 1,352,708 - LIABILITIES 2110 Accounts payable 37,385 8,410 2160 Accrued wages payable 20,233 - 2180 Due to other governments 41,821 - 2200 Other accrued expenses 2,267 - Noncurrent liabilities: 2501 Due within one year 195,108 - 2502 Due in more than one year 202,904 - 2540 Net pension liability 1,502,914 - 2545 Net OPEB liability 2,830,719 2000 Totalliabilities 4,833,351 8,410 DEFERRED INFLOWS OF RESOURCES 2605 Deferred inflows of resources-pensions 268,967 - 2605 Deferred inflows of resources-OPEB 1,224,611 - 2600 Total deferred inflows of resources 1,493,578 - NET POSITION 3890 Restricted for donor stipulations 163 298,302 3900 U nrestricted (3,109,614) 2,371,259 3000 Total net position $ (3,109,451) $ 2,669,561 The Notes to the Financial Statements are an integral part of this statement. 14 Westlake Academy Exhibit B-1 (A Component Unit of the Town of Westlake) Statement of Activities For the Year Ended August 31, 2020 Net(Expense)Revenue and Program Revenues Changes in Net Position 1 3 4 5 6 9 Primary Data Operating Capital Government Confrol Charges for Grants and Grants and Governmental Component Codes Expenses Services ConhibuHons Conhibutions AcNvities Unit PRIMARY GOVERNMENT: Governmental activities: 11 Instruction $ 6,775,228 $ 18,216 $ 1,638,872 $ 501,011 $ (4,617,129) $ - 12 Instructional resources and media services 129,085 288 23,974 32,980 (71,843) - 13 Curriculum and staff development 59,763 184 13,163 - (46,416) 21 Instructionalleadership 166,215 501 41,880 - (123,834) 23 Schoolleadership 1,097,465 3,447 279,556 16,224 (798,238) 31 Guidance,counseling,and evaluation services 664,300 1,851 156,347 4,060 (502,042) 33 Health seroices 133,519 252 20,870 12,654 (99,743) - 35 Foodservice 52,113 7,000 - 52,113 7,000 - 36 Extracurricular activities 441,532 53,225 158,944 43,697 (185,666) - 41 General administration 274,546 842 54,414 11,864 (207,426) 51 Facilities maintenance and operations 1,109,880 3,122 220,853 117,495 (768,410) 52 Security and monitoring services 45,150 444 27,969 (16,737) 53 Data processing services 253,577 65 17,565 17,860 (218,087) - 61 Communityservices 154,997 686 59,548 2,518 (92,245) - 71 Debt sery ice-interest 20,311 - - - (20,311) - [TP] Total primary government: $ 11,377,681 $ 90,123 $ 2,713,955 $ 812,476 (7,761,127) - COMPONENT UNIT IC Wesllake Academy Foundation $ 1,522,521 $ - $ 1,657,246 $ - - 134,725 Data Conhol Codes General revenues: SF State aid-formula grants 7,540,434 IE Investmentearnings 17,293 154,193 TR Total general revenues 7,557,727 154,193 CN Change in net position (203,400) 288,918 NB Net position,beginning (2,906,051� 2,380,643 NE Nelposition,ending $ (3,109,451) $ 2,669,561 The Notes to the Financial Statements are an integral part of this statement. 15 Westlake Academy Exhibit C-1 (A Component Unit of the Town of Westlake) Balance Sheet Governmental Funds August 31, 2020 10 410 429 491 98 Data State Safely& Nonmajor Total Conhol Textbook Securily CARES Governmental Governmental Codes General Fund GrantFund Act Funds Funds ASSETS 1110 Cash and cash equivalents $ 1,340,559 $ - $ - $ - $ 10,675 $ 1,351,234 1120 Current investments 105 - - - - 105 1240 Due from other governments 363,480 U,441 25,000 24,240 - 430,161 1260 Duefrom otherfunds 41,858 - - - 41,858 1290 Otherreceivables 6,560 - - - 539 7,099 1410 Prepaid expenditures 76,171 - - - 76,U1 1000 Totalassets $ 1,828,733 $ 17,441 $ 25,000 $ 24,240 $ 11,214 $ 1,906,628 LIABILITIES AND FUND BALANCES LIABILITIES: 2110 Accounts payable $ 36,458 $ - $ 199 $ 728 $ 37,385 2160 Accrued wages payable 20,233 - - - - 20,233 2170 Due to otherfunds - 17,441 - 24,041 376 41,858 2180 Due to other governments 16,821 - 25,000 - - 41,821 2200 Accrued expenditures 2,267 - - - - 2,267 2000 Totalliabilities 75,779 U,441 25,000 24,240 1,104 143,564 DEFERRED I NFLOWS OF RESOU RCES: 2601 Unavailablecontributions 1,777 - - - - 1,777 2600 Total deferred inflows of resources 1,777 - - - - 1,777 FUND BALANCES: 3430 Nonspendable-prepaid items 76,171 - - - - 76,U1 3490 Restricted for donor stipulations - 163 163 3545 Committed for campus activities - 9,947 9,947 3600 Unassigned 1,675,006 - 1,675,006 3000 Totalfund balances 1,751,177 - 10,110 1,761,287 4000 Total liabilities and fund balances $ 1,828,733 $ 17,441 $ 25,000 $ 24,240 $ 11,214 $ 1,906,628 Total fund balances-govemmental funds $ 1,761,287 Amounts reported for governmental activities in the statement of net position are different because: Amounts reported as deferred inflows of resources in the govemmental funds financial statements are recognized as revenue in the government-wide financial statements under the accrual basis of accounting. 1,777 I ncluded in the items related to noncurrent liabilities are the Academy's proportionate share of the TRS Care net OPEB liability($2,830,719�,a deferred resource inflow($1,224,611)and a deferred resource outflow of$397,462.me net effect is a decrease in net position. �3,657,868) I nduded in the items related to noncurrent liabilities are the Academy's proportionate share of the TRS net pension liability($1,502,914�,a deferred resource inflow($268,967�and a deferred resource outflow of$955,246.me net effect is a decrease in net position. (816,635) Net posiHon of governmental activiHes $ (3,109,451� The Notes to the Financial Statements are an integral part of this statement. 16 Westlake Academy Exhibit C-2 (A Component Unit of the Town of Westlake) Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds For the Year Ended August 31, 2020 10 410 429 491 98 Data State Safety& Nonmajor Total Confrol Textbook Securily CARES Governmental Governmental Codes General Fund GrantFund Act Funds Funds REVENUES 5700 Local and intermediate sources $ 1,462,051 $ - $ - $ - $ 230,559 $ 1,692,610 5800 Stateprogramrevenues 7,957,979 26,613 25,000 - 1,469 8,011,061 5900 Federalprogramrevenues 24,240 113,670 137,910 5020 Total revenues 9,420,030 26,613 25,000 24,240 345,698 9,841,581 EXPENDITURES 0011 Instruction 5,566,302 26,613 2,593 205,076 5,800,584 0012 Instructional resources and media services 88,513 - - - - 88,513 0013 Curriculumandstaffdevelopment 57,790 - 1,600 59,390 0021 I nstructional leadership 154,252 154,252 0023 Schoolleadership 1,060,501 138 - 1,060,639 0031 Guidance,counseling,and evaluation services 569,417 - - 118 4,935 574,470 0033 Healthservices 77,264 105 - 77,369 0036 Extracurricular activities 253,652 150 136,855 390,657 0041 General administration 244,889 - 975 245,864 0051 Facilities maintenance and operations 976,930 - - 12,907 - 989,837 0052 Security and monitoring services 20,150 - 25,000 - 45,150 0053 Dataprocessingservices 213,941 8,229 222,170 0061 Communityservices 136J90 - - 136J90 0071 Debt service-principal on long-term debt 187,611 - - - 187,611 0072 Debt service-interest on long-term debt 20,311 - - - - 20,311 6030 Total expenditures 9,628,313 26,613 25,000 24,240 349,441 10,053,607 1100 EXCESS(DEFICIENCY)OF REVENUES OVER(UNDER)EXPENDITURES (208,283) - - - (3,743� (212,026) OTHER FINANCING SOURCES 7913 Proceedsfromcapitalleases 585,623 - - - - 585,623 Total other financing sources 585,623 - - - - 585,623 1200 NET CHANGE IN FUND BALANCES 377,340 - - - (3,743� 373,597 0100 FUND BALANCES,BEGINNING 1,373,837 - 13,853 1,387,690 3000 FUNDBALANCES,ENDING $ 1,751,U7 $ - $ - $ - $ 10,110 $ 1J61,287 Net change in fund balances $ 373,597 Amounis reported for governmental activities in ihe Statement of Activities are different because: Receipts ihat are considered deferred inflows of resources in ihe governmental funds financial statemenis are recognized as revenue in the government-wide financial statements under the accrual basis of accounting. This amount represents the change in deferred inflows between the prior year and current year. (3,395J Capital leases that are considered other financing sources in the governmental fund financial statements are recognized as an increase in short-term and long-term laibilities in the govemment-wide financial statements. (585,623� Current year principal payments on capital leases consume current resources,however, these paymenis reduce expenses and long-term liabilities in ihe government-wide financial statements. 187,611 I mplementation of GASB 75 required cerfain expenditures be de-expended and recorded as deferred resource inflows.Contributions made after the measurement date caused the change in net position to increase by$46,278.Contributions before ihe measurement date also caused a decrease in the change in net position of$46,703.lYie net share of the Academy's amount of deferred inflows and outflows of resources decreased the net position by$41,176.lYiis amount is the net effect. (41,601� I mplementation of GASB 68 required certain expenditures be de-expended and recorded as deferred resource inflows.Contributions made after the measurement date caused the change in net position to increase by$230,148.Contributions before the measurement date also caused a decrease in the change in net position of$100,311.The net share of the Academy's amount of deferred inflows and outflows of resources decreased the net position by$263,826.mis amount is the net effect. (133,989� Change in net position of governmental activities $ (203,400� The Notes to the Financial Statements are an integral part of this statement. 17 Westlake Academy Exhibit D-1 (A Component Unit of the Town of Westlake) Statement of Fiduciary Net Position Fiduciary Funds August 31, 2020 Agency Fund ASSETS Cash and cash equivalents $ 94,044 Prepaids 1,269 Total assets $ 95,313 LIABILITIES Accounts payable $ 18,392 Due to student groups 76,921 Totalliabilities $ 95,313 The Notes to the Financial Statements are an integral part of this statement. 18 Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements Note 1. Summary of Significant Accounting Policies Reporting Entity Westlake Academy (the Academy), a blended component unit of the Town of Westlake (the Town), is a Texas nonprofit corporation under Chapter 12, Subchapter p of the Education Code to provide education. The Board of Trustees (the Board) consists of six trustees and is appointed by the Town's governing body. Currently, all members of the Board are members of the Town's governing body. The Academy prepares its basic financial statements in conformity with generally accepted accounting principles promulgated by the Governmental Accounting Standards Board (the GASB) and other authoritative sources identified in Statement on Auditing Standards No. 69 of the American Institute of Certified Public Accountants; and it complies with the requirements of the appropriate version of Texas Education Agency's Financial Accountability System Resource Guide (the Resource Guide) and the requirements of contracts and grants of agencies from which it receives funds. The Board is appointed by the governing Council of the Town and it has the authority to make decisions, appoint administrators and managers, and significantly influence operations. It also has the primary accountability for fiscal matters. Therefore, the Academy is a financial reporting entity as defined by the GASB in its Statement No.14,"The Financial Reporting Entity", as modified by GASB Statements No. 39 and 61. The Academy's basic financial statements include a separate entity that is controlled by or dependent on the Academy. The determination to include separate entities is based on the criteria of GASB Statement No. 14, 'The Financial Reporting Entity" as amended by GASB Statement No. 39, "Determining Whether Certain Organizations Are Component Units" and GASB Statement No. 61, "The Financial Reporting Entity Omnibus." GASB defines the reporting entity as the primary government and those component units for which the primary government is financially accountable. To be financially accountable, a voting majority of the component unit's ruling body must be appointed by the primary government, and either (a) the primary government must be able to impose its will, or (b) the primary government may potentially benefit financially or be financially responsible for the component unit. The Westlake Academy Foundation (the Foundation) is a 501 (c)(3) nonprofit organization which was established exclusively for the purpose of supporting the Academy. This includes fundraising for and contributing raised funds to the Academy. The Foundation has been discretely presented in the accompanying financial statements and reported in a separate column to emphasize that it is legally separate from the Academy. See Note 12 for additional information relating to the Foundation.Separate audited financial statements of the Foundation are available from the Academy/Town Finance Director's office, 1500 Solana Blvd, Building 7, Suite 7200, Westlake, Texas 76262. Government-wide and Fund Financial Statements The Statement of Net Position and the Statement of Activities are government-wide financial statements. They report information on all of the Academy's nonfiduciary activities with most of the interfund activities removed. Governmental activities include programs supported primarily by state and federal grants, the Foundation, and the Town. The Academy has no business-type activities that rely to a significant extent, on fees and charges for support. Neither fiduciary funds nor component units that are fiduciary in nature are included. 19 Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements The Statement of Activities demonstrates how other people or entities that participate in programs the Academy operates have shared in the payment of the direct costs. Direct expenses are those that are clearly identifiable with a specific function or segment. The "charges for services" column includes payments made by parties that purchase, use, or directly benefit from goods or services provided by a given function or segment of the Academy. The primary example is charges for athletic registration fees. The "grants and contributions" column includes amounts paid by organizations outside the Academy to help meet the operational or capital requirements of a given function. Examples include grants under the Elementary and Secondary Education Act. If revenue is not program revenue, it is general revenue used to support all of the Academy's functions. Interfund activities between governmental funds appear as due to/due from on the Governmental Fund Balance Sheet and as other resources and other uses on the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balance. All interfund transactions between governmental funds are eliminated on the government-wide statements. The fund financial statements provide reports on the financial condition and results of operations for three fund categories: governmental, proprietary, and fiduciary. Since the resources in the fiduciary funds cannot be used for Academy operations,they are not included in the government-wide statements.The Academy considers some governmental funds major and reports their financial condition and results of operations in a separate column. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenue is recorded when earned and expenses are recorded when a liability is incurred,regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements use the current financial resources measurement focus and the modified accrual basis of accounting. With this measurement focus, only current assets, current liabilities, deferred inflows of resources, and fund balances are included on the balance sheet. Operating statements of these funds present net increases and decreases in current assets (i.e. revenues and other financing sources and expenditures and other financing uses). The modified accrual basis of accounting recognizes revenues in the accounting period in which they become both measurable and available and it recognizes expenditures in the accounting period in which the fund liability is incurred, if ineasurable. The expenditures related to certain compensated absences and claims and judgments are recognized when the obligations are expected to be liquidated with expendable available financial resources.The Academy considers all revenues available if they are collectible within 60 days after year-end. Miscellaneous revenues are recorded as revenue when received in cash because they are generally not measurable until actually received. Investment earnings are recorded as earned, since they are both measurable and available. Grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant. Accordingly, when such funds are received, they are recorded as deferred inflows until related and authorized expenditures have been made. If balances have not been expended by the end of the project period, grantors sometimes require the Academy to refund all or part of the unused amount. 20 Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements The fiduciary funds utilize the accrual basis of accounting for purposes of asset and liability recognition. With this basis of accounting, all assets and all liabilities associated with the operation of these funds are included on the Statement of Fiduciary Net Position. Fund Accounting The Academy reports the following major governmental funds: The General Fund is the Academy's primary operating fund. It accounts for all financial resources except those required to be accounted for in another fund. The State Textbook Fund accounts for the instructional materials allotment funded by the State of Texas to purchase textbooks and other instructional materials. The Safety & Security Grant Fund accounts for the proceeds of a grant awarded by Texas Education Agency for the purchase of security cameras and perimeter fencing. The CARES Act Fund accounts for Coronavirus Relief Fund assistance passed through the Texas Division of Emergency Management and the Town of Westlake. Additionally, the Academy reports the following fund types: Nonmajor Governmental Funds: These nonmajor Special Revenue Funds account for resources restricted to, or committed for, specific purposes by the Academy or a grantor in a Special Revenue Fund. Most federal and some state financial assistance is accounted for in a Special Revenue Fund and sometimes unused balances must be returned to the grantor at the close of specified project period. Fiduciary Funds: Agency Funds account for resources held for others in a custodial capacity. Fiduciary funds are reported in the fiduciary fund financial statements. However, because these assets are not available to support Academy programs, these funds are not included in the government-wide statements. The Academy's Agency Fund is a Student Activity Fund. Other Accounting Policies 1. The State of Texas (the State) has created a state minimum personal leave program consisting of five days per year personal leave with no limit on accumulation and transferability among districts is provided for employees in accordance with 19 TAC §153.1021 (d)(8). Each district's local board is required to establish a personal leave plan. It is the Academy's policy to permit employees to accumulate earned but unused state and local personal leave. There is no liability for unpaid accumulated personal leave since the Academy does not have a policy to pay any amounts when employees separate from service with the Academy. 2. The Data Control Codes refer to the account code structure prescribed by the Texas Education Agency (TEA) in the Financial Accountability System Resource Guide. TEA requires the Academy to display these codes in the financial statements filed with the Agency in order to insure accuracy in building a statewide database for policy development and funding plan. 3. When an expenditure is incurred for purposes for which both restricted or unrestricted fund balance is available, the Academy considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the Academy considers amounts to have been spent first out of committed funds,then assigned funds, and finally, unassigned funds. 21 Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements 4. The governmental fund financial statements present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the Academy is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent.The classifications used in the governmental fund financial statements are as follows: • Nonspendable: This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) are legally or contractually required to be maintained intact. • Restricted:This classification includes amounts for which constraints have been placed on the use of the resources either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments, or (b) imposed by law through constitutional provisions or enabling legislation. • Committed: This classification includes amounts that can be used only for specific purposes pursuant to constraints imposed by board resolution of the School Board, the Academy's highest level of decision making authority.These amounts cannot be used for any other purpose unless the School Board removes or changes the specified use by taking the same type of action that was employed when the funds were initially committed. This classification also includes contractual obligations to the extent that existing resources have been specifically committed for use in satisfying those contractual requirements. • Assianed: This classification includes amounts that are constrained by the Academy's intent to be used for a specific purpose but are neither restricted nor committed. This intent can be expressed by the Finance Director and Superintendent. • Unassianed:This classification includes the residual fund balance for the General Fund. The unassigned classification also includes negative residual fund balance of any other governmental fund that cannot be eliminated by offsetting of assigned fund balance amounts. 5. Net position represents the difference between assets and deferred outflows of resources and liabilities and deferred inflows of resources. Net position is reported as restricted when there are limitations imposed on its use either through the enabling legislations adopted by the Academy or through external restrictions imposed by creditors, grantors of laws or regulations of other governments. 6. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. 7. Sometimes the Academy will fund outlays for a particular purpose from both restricted (e.g. grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the Academy's policy to consider restricted net position to have been depleted before unrestricted net position is applied. 22 Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements Note 2. Cash and Investments The funds of the Academy must be deposited and invested under the terms of a contract, contents of which are set out in the Depository Contract Law. The depository bank places approved pledged securities for safekeeping and trust with the Academy's agent bank in an amount sufficient to protect Academy funds on a day-to-day basis during the period of the contract. The pledge of approved securities is waived only to the extent of the depository bank's dollar amount of Federal Deposit Insurance Corporation (FDIC) insurance. At August 31, 2020, the carrying amount of the Academy's deposits (cash, certificates of deposit, and interest-bearing savings accounts included in temporary investments), including $94,044 recorded in the Agency fund, was $1,445,278 and the bank balance was $1,663,280. The carrying amount of the Foundation's deposits was $744,789 as of August 31, 2020 and the bank balance was $745,670. The Academy cash deposits at August 31, 2020 and during the year then ended was entirely covered by FDIC insurance or the pledged collateral held by the Academy's agent bank in the Town of Westlake's name. The following is disclosed regarding the combined balances on the date of highest deposit: a. Depository: First Financial Bank b. The market value of securities pledged to the Town (inclusive of the Academy) as of the date of the highest combined balance on deposit was $31,953,166. c. The highest combined balances of cash, savings, and time deposit accounts amounted to $26,500,109 ($2,1 19,482 of which belonged to the Academy) on September 3, 2019. d. Total amount of FDIC coverage at the time of the highest combined balance was $250,000. The Public Funds Investment Act (Government Code Chapter 2256) contains specific provisions in the areas of investment practices, management reports and establishment of appropriate policies. Among other things,it requires the Academy to adopt,implement,and publicize an investment policy.That policy must address the following areas: (1) safety of principal and liquidity, (2) portfolio diversification, (3) allowable investments, (4) acceptable risk levels, (5) expected rates of return, (6) maximum allowable stated maturity of portfolio investments, (7) maximum average dollar-weighted maturity allowed based on the stated maturity date for the portfolio, (8) investment staff quality and capabilities, and (9) bid solicitation preferences for certificates of deposit. Statutes authorize the Academy to invest in (1) obligations of the U. S. Treasury, certain U. S. agencies, and the State of Texas; (2) certificates of deposit, (3) certain municipal securities, (4) money market savings accounts, (5) repurchase agreements, (6) bankers acceptances, (7) mutual funds, (8) investment pools, (9) guaranteed investment contracts, and (10) common trust funds. The Act also requires the Academy to have independent auditors perform test procedures related to investment practices as provided by the Act. The Academy is in substantial compliance with the requirements of the Act and with local policies. The Academy categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. GASB Statement No. 72, Fair Value Measurement and Application provides a framework for measuring fair value which establishes a three-level fair value hierarchy that describes the inputs that are used to measure assets and liabilities. • Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets that a government can access at the measurement date. • Level 2 inputs are inputs -other than quoted prices included within Level 1 -that are observable for an asset or liability, either directly or indirectly. 23 Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements • Level 3 inputs are unobservable inputs for an asset or liability. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. If a price for an identical asset or liability is not observable, a government should measure fair value using another valuation technique that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs. If the fair value of an asset or a liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement. The Academy presently has no recurring fair value measurements. Investment pools are measured at amortized cost and are exempt for fair value reporting. The carrying value of the Academy's investments at August 31, 2020, was $105 which was deposited in TexPool (a Texas Local Government Investment Pool). Local government investment pools operate in a manner consistent with the SEC's Rule 2a7 of the Investment Company Act of 1940. Local government investment pools use amortized cost rather than market value to report net assets to compute share prices. Accordingly, the fair value of the position of these pools is the same as the value of the shares in each pool. TexPool is organized in conformity with the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code, and the Public Funds Investment Act. Chapter 2256 of the Texas Government Code. The Texas Comptroller of Public Accounts is the sole officer, director and shareholder of the Texas Treasury Safekeeping Trust Company, which is authorized to operate TexPool. In addition, the TexPool Advisory Board advises on TexPool's Investment Policy. This Board is composed equally of participants in TexPool and other persons who do not have a business relationship with TexPool who are qualified to advise TexPool. TexPool is subject to annual review by an independent auditor consistent with the Public Funds Investment Act. In addition, TexPool is subject to review by the State Auditor's office and by the Internal Auditor of the Comptroller's office. In compliance with the Public Funds Investment Act, the Academy has adopted a deposit and investment policy.That policy does address the following risks: 1 Custodial Credit Risk-Deposits: This is the risk that in the event of bank failure, the Academy's deposits may not be returned to it. As of August 31, 2020, the Academy's deposits with financial institutions in excess of federal depository insurance were fully collateralized by FDIC insurance and pledged collateral held by the Academy's agent bank in the Town of Westlake's name. 2. Custodial Credit Risk-Investments:This is the risk that,in the event of the failure of the counterparty, the Academy will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. Investments are subject to custodial credit risk only if they are evidenced by securities that exist in physical or book entry form. Thus positions in external investment pools are not subject to custodial credit risk because they are not evidenced by securities that exist in physical or book entry form. 3. Other Credit Risk:There is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. To minimize credit risk, TexPool invests only in investments authorized under the Public Funds Investment Act. As of August 31, 2020,TexPool's investments credit quality rating was AAAm (Standard & Poor's). 24 Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements Foundation-Investments The Foundation's investments in marketable securities are valued at their estimated fair values in the statement of financial position. Unrealized gains and losses are included in the statement of activities. All other investments are carried at cost. Investments at the end of the year consist of the following: August 31,2020 I nv estment Type Cost Basis Fair Value Marketable equity securities: Common stock $ 1,708,468 $ 1,927,540 FASB ASC 820, Fair Value Measurements and Disclosures, establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FASB ASC 820 are described as follows: Level 1 inputs: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Foundation has the ability to access. Level 2 inputs: Inputs to the valuation methodology include: • Quoted market prices for similar assets or liabilities in active markets; • Quoted prices for identical assets or liabilities in inactive markets; • Inputs other than quoted prices that are observable for the asset or liability;and • Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full-term of the asset or liability. Level 3 inputs: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The following is a description of the valuation methodologies used for assets measured at fair value. Marketable Equitv Securities Marketable equity securities reported as level 1 are determined by reference to quoted market prices for investments listed on an exchange or over-the-counter market. The following table sets forth by level, within the fair value hierarchy, the Foundation's assets at fair value as of August 31, 2020. Assets at Fair Value as of August 31,2020 Levell Level2 Level3 Total Marketable equity securities: Common stock $ 1,927,540 $ - $ - $ 1,927,540 25 Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements Note 3. Due from Other Governments The Academy participates in a variety of state and local programs from which it receives grants to partially or fully finance certain activities. Amounts due from federal and local governments as of August 31, 2020, are summarized below. Federal State Fund Grants Entitlements Local Total General fund $ - $ 351,962 $ 11,518 $ 363,480 State Textbook fund - 17,441 - 17,441 Safety&Security Grant Fund 25,000 - - 25,000 CARES Act fund 24,240 - - 24,240 Total $ 49,240 $ 369,403 $ 11,518 $ 430,161 Note 4. Donated Use of Facilities The Academy currently operates in facilities that are capital assets of the Town. The Academy is not required by the Town to pay rent for the use of those facilities; however, the Academy recognizes the value of the use received, $812,476, in the government-wide statement of activities as capital grants and contributions and as expense allocated to the various functions. Note 5. Interfund Balances and Activities Interfund balances at August 31, 2020, consisted of the following individual fund balances: Due to Fund Due from Fund Amount Purpose General fund Nonmajor governmental $ 376 Reimburse program disbursements General fund State Textbook fund 17,441 Reimburse program disbursements General fund CARES Act fund 24,041 Reimburse program disbursements Total $ 41,858 The Academy had no interfund transfers during the year ending August 31, 2020. Note 6. Revenue from Local and Intermediate Sources During the current year, revenues from local and intermediate sources as reported on Exhibit C-2 of the fund statements consisted of the following: N o n-maj or General Fund Funds Total Gifts and bequests $ 1,330,861 $ 187,968 $ 1,518,829 I nterest 17,293 - 17,293 Food sales 7,000 - 7,000 Campus activities - 42,591 42,591 Parking/transportation 1,820 - 1,820 Athletics 73,728 - 73,728 Miscellaneous 31,349 - 31,349 Total $ 1,462,051 $ 230,559 $ 1,692,610 26 Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements Note 7. Defined Benefit Pension Plan Plan Description The Academy participates in a cost-sharing multiple-employer defined benefit pension that has a special funding situation. The plan is administered by the Teacher Retirement System of Texas (TRS). TRS's defined benefit pension plan is established and administered in accordance with the Texas Constitution, Article XVI,Section 67 and Texas Government Code,Title 8,Subtitle C.The pension trust fund is a qualified pension trust under Section 401 (a) of the Internal Revenue Code. The Texas Legislature establishes benefits and contribution rates within the guidelines of the Texas Constitution. The pension's Board of Trustees does not have the authority to establish or amend benefit terms. All employees of public, state-supported educational institutions in Texas who are employed for one-half or more of the standard work load and who are not exempted from membership under Texas Government Code,Title 8, Section 822.002 are covered by the system. Pension Plan Fiduciary Net Position Detailed information about the Teacher Retirement System's fiduciary net position is available in a separately-issued Comprehensive Annual Financial Report that includes financial statements and required supplementary information. That report may be obtained on the Internet at http://www.trs.texas.gov/Pages/about_archive_cafr.aspx; by writing to TRS at 1000 Red River Street, Austin, TX, 78701-2698; or by calling (512) 542-6592. Benefits Provided TRS provides service and disability retirement, as well as death and survivor benefits, to eligible employees (and their beneficiaries) of public and higher education in Texas.The pension formula is calculated using 2.3 percent (multiplier) times the average of the five highest annual creditable salaries times years of credited service to arrive at the annual standard annuity except for members who are grandfathered, the three highest annual salaries are used. The normal service retirement is at age 65 with 5 years of credited service or when the sum of the member's age and years of credited service equals 80 or more years. Early retirement is at age 55 with five years of service credit or earlier than 55 with 30 years of service credit. There are additional provisions for early retirement if the sum of the member's age and years of service credit total at least 80, but the member is less than age 60 or 62 depending on date of employment, or if the member was grandfathered in under a previous rule. There are no automatic post- employment benefit changes; including automatic COLAs. Ad hoc post-employment benefit changes, including ad hoc COLAs can be granted by the Texas Legislature as noted in the Plan description above. Contributions Contribution requirements are established or amended pursuant to Article 16, section 67 of the Texas Constitution which requires the Texas legislature to establish a member contribution rate of not less than 6%of the member's annual compensation and a state contribution rate of not less than 6�o and not more than 10% of the aggregate annual compensation paid to members of the system during the fiscal year. Employee contribution rates are set in state statute, Texas Government Code 825.402. The Texas Pension Reform Bill (Senate Bi1112) of the 86t" Texas Legislature amended Texas Government Code 825.402 for member contributions and increased both employee and employer contribution rates for plan years 2020 through 2025. 27 Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements Rates for such plan fiscal years are as follows: Contribution rates 2019 2020 M ember 7.7� 7.7� Non-employer contributing entity (State) 6.8% 7.5� Employers (District) 6.8� 7.5� Employers (District- Non-OASDI)* 1.5% 1.5% *SB12 requires an increase in employer contributions by public school districts, charter schools and regional education service centers. Prior to SB12, onlythose employers not participating in social securitywere required to pay a 1.5%contribution (Non-OASDI surcharge). Beginning September l, 2019, all employers are required to pay the Public Education Employer contribution irrespective of participation in social security. The contribution amounts for the district's fiscal year 2020 are as follows: 2019 Employer contributions $ 230,148 2019 Member contributions $ 462,758 2019 NECE on-behalf contributions (state) $ 354,995 Contributors to the plan include members, employers and the State of Texas as the only non-employer contributing entity. The State contributes to the plan in accordance with state statutes and the General Appropriations Act (GAA). As the non-employer contributing entity for public education and junior colleges, the State of Texas contributes to the retirement system an amount equal to the current employer contribution rate times the aggregate annual compensation of all participating members of the pension trust fund during that fiscal year reduced by the amounts described below which are paid by the employers. Employers (public school, junior college, other entities or the State of Texas as the employer for senior universities and medical schools) are required to pay the employer contribution rate in the following instances: • On the portion of the member's salary that exceeds the statutory minimum for members entitled to the statutory minimum under Section 21.402 of the Texas Education Code. • During a new member's first 90 days of employment. • When any part or all of an employee's salary is paid by federal funding sources, a privately sponsored source, from non-educational and general, or local funds. • On 1.5�a of covered payroll. This contribution, known as the Public Education Employer Contribution, replaced the non-OASDI surcharge that was in effect until 2019. In addition to the employer contributions listed above, there are two additional surcharges an employer is subject to: • When employing a retiree of the Teacher Retirement System the employer shall pay both the member contribution and the state contribution as an employment after retirement surcharge. 28 Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements • When a school district or charter school does not contribute to the Federal Old-Age,Survivors and Disability Insurance (OASDI) Program for certain employees,they must contribute 1.5�of the state contribution rate for certain instructional or administrative employees; and 100�0 of the state contribution rate for all other employees. Actuarial Assumptions The total pension liability in the August 31, 2019 actuarial valuation was determined using the following actuarial assumptions: Valuation date August 31,2018,rolled forward to August 2019 Actuarial cost method I ndividual entry age normal Asset valuation method Market value Single discount rate 7.250� Long-term expected investment rate of return 7.25� Municipal bond rate as of August 2019 2.63�.Source for the rate is the Fixed I ncome Market Data/Yeld Curve/DataMunicipal Bonds with 20 Years to maturity that include only federally tax-exempt Municipal bonds as reported I n Fidelity Index's "20-Year Municipal GO AA Index' I nflation 2.30� Salary increases including inflation 3.05%to 9.05%includes inflation Ad-hoc employment benefit changes None Active mortality rates Based on 90%of the RP 2014 Employing Mortality Tables for males and females with full generational mortality.The post-retirement mortality rates for healthy lives were based on the 2018 TRS of Texas Health Pensioner Mortality Tables with full generational projection using the ultimate improvement rates from the most recently published projective scale U-MP. The actuarial methods and assumptions are primarily based on a study of actual experience for the four- year period ending August 31, 2017 and adopted on September 24, 2018. Discount Rate The single discount rate used to measure the total pension liability was 7.25�0.The single discount rate was based on the expected rate of return on pension plan investments of 7.25% and a municipal bond rate of 2.63�0. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and those of the contributing employers and the non-employer contributing entity are made at the statutorily required rates. Based on those assumptions, the pension plan's fiduciary net position was sufficient to finance the benefit payments until the year 2069. As a result, the long-term expected rate of return on pension plan investments was applied to projected benefit payments through the year 2069, and the municipal bond rate was applied to all benefit payments after that date. 29 Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements The long-term expected rate of return on pension plan investments was determined using a building- block method in which best estimates ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of geometric real rates of return for each major asset class included in the Systems target asset allocation as of August 31, 2019 are summarized below: Long-term Expected Geometric 2019 PYTarget New Target Real Rate of Asset Class Allocation* Allocation** Return*** Global Equity U.S. 18% 18.0% 6.4% Non-U.S. Developed 13� 13.0� 6.3% Emerging Markets 9�0 9.0% 7.3% Directional Hedge Funds 4% 0.0% 0.0% Private Equity 13� 14.0� 8.4% Stable Value U.S.Treasuries 1 l� 16.0� 3.1% Absolute Return 4% 5.0� 4.5% Stable Value Hedge Funds 0� 0.0� 0.0% Cash Real Return 3�0 0.0% 0.0% Global I nflation Linked Bonds 14� 15.0� 8.5% Real Assets 5� 6.0� 7.3% Energy and Natural Resources 0% 0.0% 0.0% Commodities Risk Parity Risk Parity 5� 8.0� 5.8%/6.5�**** Asset Allocation Leverage 2.5% Cash 1% 2.0� Asset Allocation Leverage 0� -6.0� 2.7% Tota I 100.0� 7.2% *FY 2019 Target Alloation based on the Strategic Asset Allocation dated 10/1/2018 **New target allocation based on the Strategic Asset Allocation dated 10/1/2019 *** 10-Year annualized geometric nominal returns include the real rate of retun and inflation of 2.1% ****New Target Allocation groups Government Bonds within the stable value allocation.This include global sovereign nominal and inflation-linked bonds 30 Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements Discount Rate Sensitivity Analysis The following schedule shows the impact of the Net Pension Liability if the discount rate used was 1� less than and 1% greater than the discount rate that was used (7.25%) in measuring the 2019 Net Pension Liability. 1% Decrease in Discount 1%Increase in Discount Rate Rate Discount Rate (6.25%) (7.25%) (8.25�) Academy's proportionate share of the net pension liability $ 2,310,197 $ 1,502,914 $ 848,859 Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At August 31, 2020, the Academy reported a liability of$1,502,914 for its proportionate share of the TRS's net pension liability. This liability reflects a reduction for State pension support provided to the Academy. The amount recognized by the Academy as its proportionate share of the net pension liability,the related State support, and the total portion of the net pension liability that was associated with the Academy were as follows: Academy's proportionate share of the collective net pension liability $ 1,502,914 State's proportionate share that is associated with Academy 5,272,547 Total $ 6,775,461 The net pension liability was measured as of August 31, 2018 and rolled forward to August 31, 2019 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as August 31, 2018 rolled forward to August 31, 2019. The Academy's proportion of the net pension liability was based on the Academy's contributions to the pension plan relative to the contributions of all employers to the plan for the period September 1, 2018 thru August 31, 2019. At August 31, 2019, the employer's proportion of the collective net pension liability was 0.0028912�which was a decrease of 0.00001851�o from its proportion measured as of August 31, 2018. Changes since the Prior Actuarial Valuation The following were changes to the actuarial assumptions or other inputs that affected measurement of the total pension liability since the prior measurement period. • The single discount rate as of August 31, 2018 was a blended rate of 6.907� and that has changed to the long-term rate of return of 7.25%as of August 31, 2019. • With the enactment of Senate Bill 3 by the 2019 Texas Legislature, an assumption has been made about how this would impact future salaries. It is assumed that eligible active members will each receive a $2,700 increase in plan year 2020. For the year ended August 31, 2019, the Academy recognized pension expense of $1,192,380 and revenue and expense of$828,243 for support provided by the State. 31 Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements At August 31, 2020, the Academy reported its proportionate share of the TRS's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences between expected and actual economic experience $ 6,314 $ 52,184 Changes in actuarial assumptions 466,278 192,688 Difference between projected and actual investment earnings 15,091 - Changes in proportion and difference between the employer's contributions and the proportionate share of contributions 237,415 24,095 Contributions paid to TRS subsequent to the measurement date 230,148 - Total $ 955,246 $ 268,967 The $230,148 reported as a deferred outflow of resources resulting from Academy contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending August 31, 2021. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Pension Expense Year Ended (I ncome) August 31, Amount 2021 $ 143,456 2022 120,512 2023 86,421 2024 83,164 2025 32,429 Thereafter (9,851) Total $ 456,131 Note 8. Health Care Coverage During the period ended August 31, 2020, employees of the Academy who met minimum eligibility requirements were covered by a state-wide health care plan, TRS Active Care. The Academy's participation in this plan is renewed annually. The Academy paid into the Plan $367 per month per employee and $292 per month when the employee works less than 30 hours per week if eligible to enroll in TRS Active Care. Employees, at their option, pay premiums for any coverage above these amounts as well as for dependent coverage. The Teacher Retirement System (TRS) manages TRS Active Care. The medical plan is administered by Aetna, and Caremark Health administers the prescription drug plan. The latest financial information on the state-wide plan may be obtained by writing to the TRS Communications Department, 1000 Red River Street, Austin, Texas 78701, by calling the TRS Communications Department at 1-800-223-8778, or by downloading the report from the TRS Internet website, www.trs.state.tx.us, under the TRS Publications heading. 32 Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements Note 9. Defined Other Post Employment Benefit Plan Plan Description The Academy participates in the Texas Public School Retired Employees Group Insurance Program (TRS- Care). It is a multiple-employer, cost-sharing defined Other Post-Employment Benefit (OPEB) plan that has a special funding situation. The plan is administered through a trust by the Teacher Retirement System of Texas (TRS) Board of Trustees. It is established and administered in accordance with the Texas Insurance Code, Chapter 1575. OPEB Plan Fiduciary Net Position Detail information about the TRS-Care's fiduciary net position is available in the separately-issued TRS Comprehensive Annual Financial Report that includes financial statements and required supplementary information. That report may be obtained on the Internet at http://www.trs.state.tx.us/about/documents/cafr.pdf#CAFR; by writing to TRS at 1000 Red River Street, Austin, TX, 78701-2698; or by calling (512) 542-6592. Benefits Provided TRS-Care provides a basic health insurance coverage (TRS-Care 1), at no cost to all retirees from public schools, charter schools, regional education service centers and other educational Academys who are members of the TRS pension plan. Optional dependent coverage is available for an additional fee. Eligible retirees and their dependents not enrolled in Medicare may pay premiums to participate in one of two optional insurance plans with more comprehensive benefits (TRS-Care 2 and TRS-Care 3). Eligible retirees and dependents enrolled in Medicare may elect to participate in one of the two Medicare health plans for an additional fee. To qualify for TRS-Care coverage, a retiree must have at least 10 years of service credit in the TRS pension system. The Board of Trustees is granted the authority to establish basic and optional group insurance coverage for participants as well as to amend benefit terms as needed under Chapter 1575.052.There are no automatic post-employment benefit changes;including automatic COLAs. The premium rates for the optional health insurance are based on years of service of the member. The schedule below shows the monthly rates for a retiree with and without Medicare coverage. TRS-Care Plan Premium Rates Effective September l,2019-December 31,2019 Medicare Non-medicare Retiree* $ 135 $ 200 Retiree and spouse 529 689 Retiree*and children 468 408 Retiree and family 1,020 999 *or surviving spouse 33 Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements Contributions Contribution rates for the TRS-Care plan are established in state statute by the Texas Legislature,and there is no continuing obligation to provide benefits beyond each fiscal year. The TRS-Care plan is currently funded on a pay-as-you-go basis and is subject to change based on available funding. Funding for TRS- Care is provided by retiree premium contributions and contributions from the state, active employees, and schools based upon school payroll. The TRS Board of trustees does not have the authority to set or amend contribution rates. Texas Insurance Code, section 1575.202 establishes the state's contribution rate which is 1.25� of the employee's salary. Section 1575.203 establishes the active employee's rate which is .65� of pay. Section 1575.204 establishes an employer contribution rate of not less than 0.25 percent or not more than 0.75 percent of the salary of each active employee of the public. The actual employer contribution rate is prescribed by the Legislature in the General Appropriations Act. The following table shows contributions to the TRS-Care plan by type of contributor. Contribution rates 2020 2019 Active Employee 0.65% 0.65% Non-employer contributing entity (State) 1.25% 1.25� Employers/District 0.75% 0.75� Federal/private funding* 1.25% 1.25� *Contributions paid from federal funds and private grants are remitted by the employer (District) and paid at the State rate. Federal/private funding The contribution amounts for the Academy's fiscal year 2020 are as follows: 2019 Employer contributions $ 46,278 2019 Member contributions $ 39,064 2019 NECE on-behalf contributions (state) $ 56,446 In addition, the State of Texas contributed $27,410, $20,423 and $16,866 in 2020, 2019 and 2018, respectively, for on-behalf payments for Medicare Part D. In addition to the employer contributions listed above, there is an additional surcharge all TRS employers are subject to (regardless of whether or not they participate in the TRS Care OPEB program). When employers hire a TRS retiree,they are required to pay to TRS Care, a monthly surcharge of$535 per retiree. TRS-Care received supplemental appropriations from the State of Texas as the Non-Employer Contributing Entity in the amount of$73.6 million in fiscal year 2019. Actuarial Assumptions The actuarial valuation of the total OPEB liability was performed as of August 31,2018. Update procedures were used to roll forward the total OPEB liability to August 31, 2019. The actuarial valuation of the OPEB plan offered through TRS-Care is similar to the actuarial valuation performed for the pension plan, except that the OPEB valuation is more complex. 34 Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements The following assumptions used for the valuation of the TRS-Care OPEB liability are identical to the assumptions employed in the August 31, 2019 TRS annual pension actuarial valuation: Demographic Assumptions Economic Assumptions Rates of mortality General inflation Rates of retirement Wage inflation Rates of termination Salary increases Rates of disability The demographic assumptions were developed in the experience study performed for TRS for the period ending August 31, 2017. The initial medical trend rates were 10.25� for Medicare retirees and 7.50� for non-Medicare retirees. There was an initial prescription drug trend rate of 10.25%for all retirees.The initial trend rates decrease to an ultimate trend rate of 4.50% over a period of 13 years. Valuation date August 31,2018, rolled forward to August 31,2019 Actuarial cost method Individual entry age normal I nflation 2.30� Discount Rate 2.63�.Source from fixed income municipal bonds with 20 years to maturity that include only federal tax-exempt municipal bonds as reported in Fidelity Index's "20-Year Municipal GO AA Index" as of August 31,2019 Aging factors Based on plan specific experience Election rates Normal Retirement;65% participation prior to age 65 and 50%after age 65. Expenses Third-party administrative expenses related to the delivery of health care benefits are included in the age-adjusted claims costs. Healthcare trend rates I nitial medical trend rates were 10.25%for Medicare retirees and 7.50%for non-Medicare retirees.There was an initial prescription drug trend rate of 10.25%for all retirees.The initial trend rates decrease to an ultimate trend rate of 4.50% ov er a period of 13 years Ad-hoc employment benefit changes None In this valuation,the impact of the Cadillac Tax has been calculated as a portion of the trend assumption. Assumptions and methods used to determine the impact of the Cadillac Tax include: • 2018 thresholds of$850/$2,292 were indexed annually by 2.30�. • Premium data submitted was not adjusted for permissible exclusions to the Cadillac Tax. • There were no special adjustments to the dollar limit other than those permissible for non-Medicare retirees over 55. Results indicate that the value of the excise tax would be reasonably represented by a 25 basis point addition to the long-term trend rate assumption. 35 Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements Discount Rate A single discount rate of 2.63�was used to measure the total OPEB liability at August 31, 2019. This was a decrease of 1.06�in the discount rate since the August 31, 2018 measurement date.The plan is essentially a "pay-as-you-go" plan, and based on the assumption that contributions are made at the statutorily required rates, the OPEB plan's fiduciary net position was projected to not be able to make all future benefit payments to current members and therefore, the single discount rate is equal to the prevailing municipal bond rate. The source for the rate is the Fixed Income Market Data / Yield Curve / Data Municipal Bonds with 20 years to maturity that include only federally tax-exempt municipal bonds as reported in Fidelity Index's "20-Year Municipal GO AA Index". Discount Rate Sensitivity Analysis. The following schedule shows the impact of the Net OPEB Liability if the discount rate used was 1% less than and 1� greater than the discount rate that was used (2.63�) in measuring the Net OPEB Liability. 1% Decrease in Discount 1%I ncrease in Discount Rate Rate Discount Rate (1.63�) (2.63�) (3.63%) Academy's proportionate share of the net OPEB liability $ 3,417,584 $ 2,830,719 $ 2,371,611 Healthcare Cost Trend Rates Sensitivity Analysis. The following presents the net OPEB liability of the plan using the assumed healthcare cost trend rate, as well as what the net OPEB liability would be if it were calculated using a trend rate that is one-percentage point lower or one-percentage point higher than the assumed healthcare cost trend rate. 1%Decrease in Trend l� Increase in Trend Rate Rate Trend Rate Academy's proportionate share of the net OPEB liability $ 2,309,200 $ 2,830,719 $ 3,529,31 1 OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEBs At August 31, 2020, the Academy reported a liability of$2,830,719 for its proportionate share of the TRS's Net OPEB Liability. This liability reflects a reduction for State OPEB support provided to the Academy. The amount recognized by the Academy as its proportionate share of the net OPEB liability, the related State support, and the total portion of the net OPEB liability that was associated with the Academy were as follows: Academy's proportionate share of the collective net OPEB liability $ 2,830,719 State's proportionate share that is associated with Academy 3,761,390 Total $ 6,592,109 The Net OPEB Liability was measured as of August 31, 2018 and rolled forward to August 31, 2019 and the Total OPEB Liability used to calculate the Net OPEB Liability was determined by an actuarial valuation as of that date. The employer's proportion of the Net OPEB Liability was based on the employer's contributions to the OPEB plan relative to the contributions of all employers to the plan for the period September 1, 2018 thru August 31, 2019. At August 31, 2019 the employer's proportion of the collective Net OPEB Liability was .0059857139�o which was an increase of .0000763739�the same proportion measured as of August 31, 2018. 36 Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements Changes Since the Prior Actuarial Valuation. The following were changes to the actuarial assumptions or other inputs that affected measurement of the Total OPEB liability since the prior measurement period. • The discount rate changed from 3.69� as of August 31, 2018 to 2.63�o as of August 31, 2019. This change increased the total OPEB liability. • The participation rate for pre-65 retirees was lowered from 70� to 65�. The participation rate for post-65 retirees was lowered from 75�o to 50�. 25�0 of pre-65 retirees are assumed to discontinue their coverage at age 65. There was no lapse assumption in the prior valuation. These changes decreased the total OPEB liability. • The trend rates were reset to better reflect the plan's anticipated experience. This change increased the total OPEB liability. • The percentage of retirees who are assumed to have two-person coverage was lowered from 20% to 15�0. In addition, the participation assumption for the surviving spouses of employees that die while actively employed was lowered from 20� to 10�0. These changes decreased the total OPEB liability. For the year ended August 31, 2020, the Academy recognized OPEB expense of $187,014 and revenue of$99,135 for support provided by the State. At August 31, 2020, the Academy reported its proportionate share of the TRS's deferred outflows of resources and deferred inflows of resources related to other post-employment benefits from the following sources: Deferred Deferred Outflows I nflows of Resources of Resources Differences between expected and actual economic experience $ 138,871 $ 463,217 Changes in actuarial assumptions 157,224 761,394 Difference between projected and actual investment earnings 305 - Changes in proportion and difference between the employer's contributions and the proportionate share of contributions 54,784 - Contributions paid to TRS subsequent to the measurement date 46,278 - Total $ 397,462 $ 1,224,611 The $46,278 deferred outflow of resources resulting from Academy contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the year ended August 31, 2021. The net amounts of the remaining balances of deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: OPEB Expense Year Ended (I ncome) August 31, Amount 2021 $ (149,145) 2022 (149,145) 2023 (149,244) 2024 (149,303) 2025 (149,287) Thereafter (127,303) Total $ (873,427) 37 Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements Note 10. Risk Management The Academy is exposed to various risk of loss related to torts, theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters for which the Academy carries commercial insurance. There were no settlements exceeding insurance coverage in the current fiscal year. Litigation and Contingencies The Academy is a party to various legal actions none of which is believed by administration to have a material effect on the financial condition of the Academy. Accordingly, no provision for losses has been recorded in the accompanying combined financial statements for such contingencies. The Academy participates in state and federal grant programs which are governed by various rules and regulations of the grantor agencies. Costs charged to the respective grant programs are subject to audit and adjustment by the grantor agencies; therefore, to the extent that the Academy has not complied with the rules and regulations governing the grants, if any, refunds of any money received may be required and the collectability of any related receivable at August 31, 2020 may be impaired. In the opinion of the Academy, there are no significant contingent liabilities relating to compliance with the rules and regulations governing the respective grants; therefore, no provision has been recorded in the accompanying combined financial statements for such contingencies. Note 11. Capital Leases The Academy has entered into lease agreements as lessee for financing the acquisition of computer equipment and software. The lease agreements qualify as capital leases for accounting purposes, and therefore, have been recorded at the present value of the future minimum lease payments as of the inception date. Equipment and software with a historical cost of $585,623 was under capital lease at August 31, 2020. Because the cost of the individual items was below the Academy's capitalization threshold, the entire cost was recorded as expense. The following schedule shows the future minimum lease payments under the capitalized lease together with the present value of the net minimum lease payments as of August 31, 2020: Year Ending August3l, Principal Interest Total 2021 $ 195,108 $ 12,814 $ 207,922 2022 202,904 5,017 207,921 Total $ 398,012 $ 17,831 $ 415,843 38 Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Financial Statements Note 12. Related Party Transactions The Westlake Academy Foundation contributed $1,212,197 to the Academy during the fiscal year ended August 31, 2020. In addition to the use of facilities discussed in Note 4, the Town of Westlake contributed $291,181 to the Academy during the year. Note 13. Evaluation of Subsequent Events In March 2020, the World Health Organization declared the novel coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide.This contagious disease outbreak, which has continued to spread, and any related adverse public health developments, has adversely affected public education,workforces, economies, and financial markets globally, potentially leading to an economic downturn. It has also disrupted the normal operations of many businesses and organizations. It is not possible for management to predict the duration or magnitude of the adverse results of the outbreak and its disruptive effects on the Academy's operations and financial results at this time. Note 14. New Accounting Pronouncements In June 2018 the GASB released GASB statement No.87, Leases.This statement was issued to increase the usefulness of governmental entities' financial statements by requiring recognition of certain lease assets and liabilities that were previously accounted for as operating leases. It establishes a single model for lease accounting based on the principle that leases are a financing of the right to use an underlying asset. Under this statement a lessee is required to recognize a lease liability and an intangible right-to-use asset and a lessor is required to recognize a lease receivable and a deferred inflow of resources. This statement is effective for the Academy for the year ended August 31, 2022 and the Academy is currently evaluating the impact of this standard on its financial statements. In January 2017 the GASB released GASB statement No. 84, Fiduciary Activities.This statement was issued to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how fiduciary activities should be reported.The requirements of this statement will enhance consistency and comparability by (1) establishing specific criteria for identifying activities that should be reported as fiduciary activities and (2) clarifying whether and how business-type activities should report their fiduciary activities. Greater consistency and comparability enhances the value provided by the information reported in financial statements for assessing government accountability and stewardship.This statement is effective for the Academy for the year ended August 31, 2021 and the Academy is currently evaluating the impact of this standard on its financial statements. Note 15. Expenditures in Excess of Appropriations For the year ending August 31, 2020, expenditures exceeded appropriations in the following functions: School Leadership ($29,665); Guidance, counseling, and evaluation services ($2,463), and facilities maintenance and operations ($6,849). 39 This Page Intentionally Left Blank 40 Required Supplementary Information 41 Westlake Academy Exhibit E-1 (A Component Unit of the Town of Westlake) Budgetary Comparison Schedule -General Fund For the Year Ended August 31, 2020 Variance with Data Actual Final Budget Control Budgeted Amounts Amounts Positive or Codes Original Final GAAP Basis (Negative) REVENUES 5700 Local and intermediate sources $ 1,590,561 $ 1,507,081 $ 1,462,051 $ (45,030) 5800 State programrevenues 8,127,372 8,108,857 7,957,979 (150,878) 5020 Total revenues 9,717,933 9,615,938 9,420,030 (195,908) EXPENDITURES CURRENT: 0011 Instruction 5,273,570 5,842,824 5,566,302 276,522 0012 Instructional resources and media services 96,371 96,371 88,513 7,858 0013 Curriculum and staff development 83,545 83,545 57,790 25,755 0021 Instructionalleadership 182,919 182,919 154,252 28,667 0023 Schoolleadership 1,030,836 1,030,836 1,060,501 (29,665) 0031 Guidance,counseling,and evaluation services 568,295 566,954 569,417 (2,463) 0033 Health services 75,686 79,686 77,264 2,422 0036 Extracurricular activities 279,323 293,033 253,652 39,381 0041 General administration 253,649 253,649 244,889 8,760 0051 Facilities maintenance and operations 970,081 970,081 976,930 (6,849) 0052 Security and monitoring services 37,000 37,000 20,150 16,850 0053 Data processing services 228,360 228,360 213,941 14,419 0061 Communityservices 142,862 142,862 136,790 6,072 DEBTSERVICE: 0071 Debt service-principal on long-term debt 329,694 187,61 1 187,61 1 - 0072 Debt service-interest on long-term debt 20,311 20,311 20,311 - 6030 Total expenditures 9,572,502 10,016,042 9,628,313 387,729 1100 Excess (deficiency)of revenues over (under)expenditures 145,431 (400,104) (208,283) 191,821 OTHER FINANCING SOURCES 7913 Capital lease proceeds - 585,623 585,623 - Total other financing sources - 585,623 585,623 - 1200 Net change in fund balance 145,431 185,519 377,340 191,821 0100 Fund balances--beginning 1,373,837 1,373,837 1,373,837 - 3000 Fund balances-ending $ 1,519,268 $ 1,559,356 $ 1,751,177 $ 191,821 The Notes to the Budgetary Comparison Schedule are an integral part of this statement. 42 Westlake Academy (A Component Unit of the Town of Westlake) Notes to the Budgetary Comparison Schedule For the Year Ended August 31, 2020 Budgetary Information The Board of Trustees adopts an "appropriated budget" on a GAAP basis for the General Fund. The Academy is required to present the adopted and final amended budgeted revenues and expenditures for this fund. The General Fund budget appears in Exhibit E-1. The following procedures are followed in establishing the budgetary data: l. Prior to August 25 of the preceding fiscal year, the Academy prepares a budget for the next succeeding fiscal year beginning September l. The operating budget includes proposed expenditures and the means of financing them. 2. A meeting of the Board of Trustees is then called for the purpose of adopting the proposed budget. 3. Prior to September 1,the budget is legally enacted through resolution by the Board. Once a budget is approved, it can only be amended at the object by the staff, function and fund level must be amended by approval of a majority of the members of the Board. Amendments are presented to the Board at its regular meetings. Each amendment made before the fact, is reflected in the official minutes of the Board, and is not made after fiscal year end. 4. Westlake Academy employees can amend the budget within each function as long as the total function expenditure remains the same as adopted budget. If the total budgeted function expenditure is amended and different from adopted budget, the Board must approve the amendment. All budget appropriations lapse at year end. 43 Westlake Academy Exhibit E-2 (A Component Unit of the Town of Westlake) Schedule of Academy's Proportionate Share of Net Pension Liability- Teacher Retirement System For the Last Six Plan Years 2019 2018 2017 2016 2015 2014 Academy's proportion of the net pension liability 0.0028912�0 0.0027061% 0.0028012% 0.0027822�0 0.0030945� 0.0007190% Academy's proporfionate share of net pension liability $ 1,502,914 $ 1,489,525 $ 895,663 $ 1,051,346 $ 1,093,865 $ 192,056 State's proportionate share of net pension liability associated with Westlake Academy 5,272,547 5,571,598 3,480,057 4,035,754 3,667,893 2,965,583 Total $ 6,775,461 $ 7,061,123 $ 4,375,720 $ 5,087,100 $ 4,761,758 $ 3,157,639 Academy's covered payroll $ 5,534,431 $ 5,289,916 $ 5,391,515 $ 5,094,571 $ 4,784,695 $ 4,300,931 Academy's proportionate share of net pension liability as a percentage of its covered payroll 27.16% 28.16% 16.61� 20.64% 22.86� 4.47% Plan fiduciary net position as a percentage of total pension liability 75.24% 73.74% 82.17% 78.00% 78.43% 83.25% Note:Only six years of data is presented in accordance with GASB #68, paragraph 138."The information for all periods for the 10- year schedules that are required to be presented as required supplementary information may not be available initially. In these cases,during the transition period,that information should be presented for as many years as are available.The schedules should not include information that is not measured in accordance with the requirements of this Statement." 44 Westlake Academy Exhibit E-3 Schedule of Pension Contributions-Teacher Retirement System For the Last Six Fiscal Years 2020 2019 2018 2017 2016 2015 Statutorily required contributions $ 230,148 $ 100,311 $ 91,593 $ 131,436 $ 88,399 $ 92,325 Actual contributions in relation to statutorily required contributions 230,148 100,311 91,593 131,436 88,399 92,325 Contribution deficiency(excess) $ - $ - $ - $ - $ - $ - Academy's covered payroll $ 5,984,542 $ 5,534,431 $ 5,289,916 $ 5,391,515 $ 5,094,571 $ 4,784,695 Contributions as a percentage of Academy's covered payroll 3.85� 1.81� 1.73% 2.44% 1.74% 1.93% Note: GASB 68, Paragraph 81.2.b requires that the data in this schedule be presented as of the Academy's current fiscal year as opposed to the time period covered by the measurement date. Note:Only six years of data is presented in accordance with GASB #68, paragraph 138."The information for all periods for the 10- year schedules that are required to be presented as required supplementary information may not be available initially. In these cases,during the transition period,that information should be presented for as many years as are available.The schedules should not include information that is not measured in accordance with the requirements of this Statement. 45 Westlake Academy Exhibit E-4 (A Component Unit of the Town of Westlake) Schedule of Academy's Proportionate Share of Net OPEB Liability- Teacher Retirement System TRS Care Plan For the Last Three Plan Years 2019 2018 2017 Academy's proportion of the net OPEB liability 0.0059857139% 0.005909340% 0.0058830418% Academy's proportionate share of net OPEB liability $ 2,830,719 $ 2,950,588 $ 2,558,314 State's proportionate share of net OPEB liability associated with Westlake Academy 3,761,390 4,695,104 4,406,333 Total $ 6,592,109 $ 7,645,692 $ 6,964,647 Academy's covered payroll $ 5,534,431 $ 5,289,916 $ 5,391,515 Academy's proportionate share of net OPEB liability as a percentage of its covered payroll 51.15% 55.78% 47.45� Plan fiduciary net position as a percentage of total OPEB liability 2.66% 1.57� 0.91% Note:Only three years of data is presented in accordance with GASB#75."The information for all periods for the 10-year schedules that are required to be presented as required supplementary information may not be available initially. In these cases,during the transition period, that information should be presented for as many years as are available. The schedules should not include information that is not measured in accordance with the requirements of this Statement." 46 Westlake Academy Exhibit E-5 Schedule of OPEB Contributions -Teacher Retirement System TRS Care Plan For the Last Three Fiscal Years 2020 2019 2018 Statutorily required contributions $ 46,278 $ 46,703 $ 46,204 Actual contributions in relation to statutorily required contributions 46,278 46,703 46,204 Contribution deficiency(excess) $ - $ - $ - Academy's covered payroll $ 5,984,542 $ 5,534,431 $ 5,289,916 Contributions as a percentage of Academy's covered payroll 0.77% 0.84% 0.87� Note:GASB 75 requires that the data in this schedule be presented as of the Academy's current fiscal year as opposed to the time period covered by the measurement date. Note:Only three years of data is presented in accordance with GASB#75."The information for all periods for the 10-year schedules that are required to be presented as required supplementary information may not be available initially. In these cases, during the transition period, that information should be presented for as many years as are available. The schedules should not include information that is not measured in accordance with the requirements of this Statement." 47 This Page Intentionally Left Blank 48 Combining Statements 49 Westlake Academy Exhibit F-1 (A Component Unit of the Town of Westlake) Combining Balance Sheet Nonmajor Governmental Funds August 31, 2020 224 397 461 484 497 Data Advanced Foundation- Total Nonmajor Control IDEA Part B Placement Campus Student Governmental Codes Formula Initiatives Activily Funds Local Grant Scholarships Funds ASS ETS 11 10 Cash and cash equivalents $ - $ - $ 10,675 $ - $ - $ 10,675 1290 Other receivables - - - 539 - 539 1000 Total asseh $ - $ - $ 10,675 $ 539 $ - $ 11,214 LIABILITIES AND FUND BALANCES LIABILITIES: 2110 Accounts payable $ - $ - $ 728 $ - $ - $ 728 2170 Due to otherfunds - - - 376 - 376 Totalliabilities - - 728 376 - 1,104 FUND BALANCES: Restricted for: 3490 Donor stipulations - - 163 - 163 Committed for: 3545 Campus activities - - 9,947 - - 9,947 3000 Total fund balances - - 9,947 163 - 10,110 4000 Total liabilities and fund balance: $ - $ - $ 10,675 $ 539 $ - $ 11,214 50 Westlake Academy Exhibit F-2 (A Component Unit of the Town of Westlake) Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds For the Year Ended August 31, 2020 224 397 461 484 497 Data Advanced Foundation- Total Nonmajor Conhol IDEA Part B Placement Campus Student Governmental Codes Formula Initiatives Activity Funds Local Grant Scholarships Funds REVENUES 5700 Local and intermediate sources $ - $ - $ 42,097 $ 185,962 $ 2,500 $ 230,559 5800 Stateprogramrevenues - 1,469 - - - 1,469 5900 Federal program revenues 1 13,670 - - 113,670 5020 Total revenues 113,670 1,469 42,097 185,962 2,500 345,698 EXPENDITURES Current: 0011 Instruction 113,670 1,469 - 87,437 2,500 205,076 0013 Curriculum and instructional staff development - - - 1,600 - 1,600 0031 Guidance,counseling and evaluation services - - - 4,935 - 4,935 0036 Extracurricular activities - - 42,268 94,587 - 136,855 0041 General administration - 975 - - 975 6030 Total expenditures 113,670 1,469 43,243 188,559 2,500 349,441 1100 EXCESS(DEFICIENCY)OF REVENUES OVER(UNDER)EXPENDITURES - - (1,146) (2,597) - (3,743) 1200 NETCHANGE IN FUND BALANCES - - (1,146) (2,597) - (3,743) 0100 FUND BALANCES,BEGINNING - - 11,093 2,760 - 13,853 3000 FUND BALANCES,ENDING $ - $ - $ 9,947 $ 163 $ - $ 10,110 51 This Page Intentionally Left Blank 52 Internal Control Report 53 This Page Intentionally Left Blank 54 wea�er � Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed In Accordance with Government Auditing Standards To the Board of Trustees Westlake Academy We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the discretely presented component unit, each major fund,and the aggregate remaining fund information of Westlake Academy (the Academy) as of and for the year ended August 31, 2020, and the related notes to the financial statements, which collectively comprise the Academy's basic financial statements and have issued our report thereon dated December 2, 2020. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Academy's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Academy's internal control.Accordingly, we do not express an opinion on the effectiveness of the Academy's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Academy's financial statements are free of material misstatement,we performed tests of its compliance with certain provisions of laws,regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 55 Weaver and Tidwell, L.L.P. 2300 North Field Street, Suite 1000 � Dallas, Texas 75201 Main: 972.490.1970 CPAs AND ADVISORS � WE R.COM The Board of Trustees Westlake Academy Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance.Accordingly, this communication is not suitable for any other purpose. �J� a� �,eQ.,��•P. WEAVER AND TIDWELL, L.L.P. Dallas, Texas December 2, 2020 56 �x��Y��� f �. h�':� :.. � '� ��}�'�F estlake Academy Board of Trustees �� � s�.������� TYPE OF ACTiON Workshop - Discussion Item Westlake Board Meeting Monday, December 07, 2020 ToP�C: Presentation and discussion regarding the Enrollment for the Fall 2020 semester STaFF CoNTaCT: Kim Gardner, Administration and Accountability Director Amanda DeGan, Superintendent Dr. Mechelle Bryson, Executive Director of Westlake Academy Strategic Alignment Vision, Value, Mission Perspective Curriculum Outcome Ob'ective Mission: Westlake Academy is an IB World School whose mission is to provide students with an Improve the internationally minded Citizen,Student& pyp�MYP/DP Efficiences of education of the highest Stakeholder Operational Systems quality,so they are well- balanced life-long learners. EXECUTIVE SUMMARY (INCLUDING APPLICABLE ORGANIZATIONAL HISTORY) Shortly after school has started each year, staff presents the enrollment projections for the fall semester along with an overview of how many students unenrolled at the Academy. Staff has complied this information for the 20/21 school year and have included additional figures on our in-person and remote learners due to the impact of the pandemic. RECOMMENDATION Review data and provide direction. ATTACHMENTS A presentation will be provided at the meeting. Page 1 of 1 �x��Y��� f �. h�':� :.. � '� ��}�'�F estlake Academy Board of Trustees �� � s�.������� TYPE OF ACTiON Regular Meeting - Action Item Westlake Board Meeting Monday, December 07, 2020 ToPrC: Presentation and Discussion of the Academic Honesty Policy STaFF CoNTaCT: Dr. Mechelle Bryson, Executive Director Strategic Alignment Vision, Value, Mission Perspective Curriculum Outcome Obiective Academic Strengthen our Academic Excellence Operations P�'P�MYP/DP Westlake Academy Culture Strategic Initiative Time Line - Start Date: N/A Completion Date: N/A Funding Amount: NA Status - N/A Source -N/A EXECUTIVE SUMMARY(INCLUDING APPLICABLE ORGANIZATIONAL HISTORY) Educational institutions have an obligation and duty to protect and promote the academic integrity of the organization. Westlake Academy believes that fostering the academic integrity of students is a high priority. In essence, the Academy has a responsibility to uphold the highest level of academic honesty in all the scholastic work produced by students. In addition, teachers and students have the responsibility to help ensure that all students have an equal opportunity to demonstrate the knowledge and skills they acquire during their studies and to continue this responsibility as a "lifelong learner" in post-secondary education and future career. All members of Westlake Academy IB community must strive to be principled, acting with integrity and honesty, with a strong sense of fairness and justice, and with respect for the dignity and rights of people everywhere. In exhibiting integrity, students must embrace these principles and standards established by the IBO and Westlake Academy. This presentation will address the following: • Current Board Policy on Academic Honesty; • Current Westlake Academy IBO Academic Honesty Policy; and • Changes Made to Parent/Student Handbook. The Academy's Instructional Leadership Team has reviewed and discussed these items and will share steps that have been taken to strengthen the academic honesty to the organization. RECOMMENDATION Staff seeks feedback from the Board of Trustees. ATTACHMENTS • Current Board Policy on Academic Honestv - Exhibit"A" • Current Westlake Academy Academic Honesty Policy- E�ibit "B" Item 5e - Exhibit "A" TOWN OF WESTLAKE WESTLAKE ACADEMY BOARD OF TRUSTEES POLICY Policy No. 3.10: Date Board Adopted: August 16, 2010 Date Board Amended: June 1, 2015 Effective Date: June 1, 2015 Policv Cateqory: arent, Student and Faculty Relations and Expectations Policy Name: Academic Honesty and Honor Code Policy Goal: To establish a standard for academic honesty and the expectations relative to an honor code for Westlake Academy Policv Description: A component of the mission statement for Westlake Academy is to strive to achieve academic excellence and develop life-long learning traits for the success of the students. As such, an academic honesty and honor code is necessary to support those endeavors. All students are expected to act with integrity in regards to Academic and non-academic contexts. Any form of plagiarism, including downloading and using information from the internet without quoting sources, will be considered a violation of the code of conduct. We expect all students to be on their honor, and cheating will be dealt with severely. Academic Dishonesty Academic dishonesty is defined as: • Engaging in any act of plagiarism by passing off ideas or words of another as one's own, using another's work without quoting sources, committing literary theft, or presenting an idea from an already existing source as new or original; • Receiving or providing assistance on an assignment in or out of the classroom where collaboration is not explicitly condoned by the instructor; • Communicating or attempting to communicate with another student during an examination via verbal, nonverbal, written, or electronic means; • Disclosing the content of assessment material to another student who is taking or has taken the same course but has not yet taken the assessment in question; 44 � Page • Possessing or using forbidden materials or aids during an assessment; or • Stealing, attempted theft, or collusion with any who attempt to steal assessment materials. Cheating, plagiarism, forgery and any other forms of academic dishonesty are considered severe discipline infractions and will be subject to the progressive discipline process outlined in the Parent/Student Handbook. Honor Code By means of an Honor Code, students practice responsible leadership, accept personal responsibility and develop strong character and create an atmosphere free from suspicion. At its core, the Honor Code is based on mutual respect and trust, serving as a written model for what is expected from students in terms of behavior, as well as a pledge to live by the school's values. All students will be required to support the traits identified in the IB Learner Profile by committing to the following: Honor Pledge: As an IB student, 1 am responsible to uphold a principled perspective in mV personal and academic life. Students who commit themselves to upholding the Westlake Academy Honor Code will be instilled with a sense of honor and integrity that will last beyond their school years. 45 � Page Wesdake Academy Academic Integrity Policy Item 5e - Exhibit "B" est a e ca em • . . :� � „ . . � . . . c a emlc nte r1t . O 1C 1 Revised August 2019 Wesdake Academy Academic Integrity Policy Westlake Academy Vision 1Yle.rtlal�e Acadeyny in.rpires.rtudents to achieve their highe.rt individual potential in a nurturing environ�nent that fo.rter.r the trait.r found in the IB Learner Profile: Inguirer.r, Knozvledgeable, Thinker.r, Coyn�nunicators, Princpled, Open-lnindecl, Ca�zng Kisk-takers, Balanced, and Keflective Westlake Academy Mission 1�Y e.rtlal�e Acadelny i.r an IB i�orld School zvhose ynission i.r to provide .rtudent.r zvith an internationally �cinded education of the highest guality .ro they are ivell-balanced and respectful life-long learner.r. Westlake Academy Values Maxiyni�ing Per.ronal Developinent Acade�ic Excellence Kespect for Self and Other.r Personal Kespon.ribility Coynpa.r.rion and Under.rtanding 2 Revised August 2019 Wesdake Academy Academic Integrity Policy Statement of Philosouhv A component of the mission statement for Westlake Academy is to strive to achieve academic excellence and develop life-long learning traits for the success of the students. As such, an academic honesty and honor code is necessary to support those endeavors. All students are expected to act with integrity in regards to academic and non-academic contexts. Purnose of the Academic Inte�ritv Policv According to the International Baccalaureate, the IB Zearner�irofile ofprincipled e.�ect.r student.r to "act ivith integrity and honesty, and zvith a strong sense offairness,justice, and res�tiectfor the dignity of the individual,grou�is, and communities." �Acade�nic Hone.rty in the IB Educational Context, 2014� This document is to make explicit the academic integrity philosophy of Westlake Academy, an IB World School, offering an international education to children from Kindergarten through Grade 12. Policv Review Procedures Each spring, representatives from each programme (PYP,MYP, and DP) will form a committee to review the current Academic Integrit��Policy. This committee will make revisions based on cuYrent International Baccalaureate (IB) documentis and Texas Education Agency updates. The committee will present the revised policy to the whole staff for fuYther input. At the commencement of each school yeaY, the coordinatoYs will facilitate Yeflection on the policy agreements with all teaching staff to ensure the policy is a working document evident in planning, teaching, and assessment. 3 Revised August 2019 Wesdake Academy Academic Integrity Policy How do vou learn and act with academic inte�ritv? —o� By `learning how to learn' through a common language of the approaches to learning (ATL) skills that are common in all IB programmes, students will acquire five skills: A roaches To Learnin Skills What does it look like in the classroom? Communication • Students express their own ideas clearly and logically. • Students paraphrase accurately and concisely. • Students ask for clarifications. • Students listen to and follow directions. Research • Students evaluatie and select appropriatie informa�ion sources and�or digital tools based on the task. • Students use critical literacy skills to analyze and inteYpret information. • Students understand the significance of academic integrity and intellectual property rights. • Students create references and citations, use footnotes/endnotes and construct a bibliography accordin r to the MLA format. Self-management • Students keep an organized and logical system to document learning. • Students use technology responsibly and productively with academic purpose. • Students demonstrate persistence by coming up with their own original ideas. • Students take res onsibilit for one's own actions. Social • Students respect the work of others by giving credit for original ideas. • Students are aware of their personal impact as a member of a learning group. • Students use the language of the learner profile in conversations and discussions. Thinkin� • Students revise understandings based on new information and evidence. • Students make judgments or decisions about personal responsibilit��in regards to original ideas, projects, and assignments. • Students independently think for themselves rather than making shortcuts by�duplicating of others' thinkin and written work. (PYP:Fro�n Princ ple.r into Practice, International Baccalaureate, 20�8� (MYP:From Principle.r into Practice, Internc�tional Baccalaureate, 20�5� (DP:Frorn Principle.r into Practice, International Baccalaureate, 2015� 4 Revised August 2019 Wesdake Academy Academic Integrity Policy Academic Inte�ritv Pled�e The Integrity Pledge that follows has been a collaborative process, drafted and discussed by students across all IB Programmes, subject-based teachers, and the administration. By means of a pledge, students practice responsible leadership, accept personal responsibility, develop strong character, and create an atmosphere free from suspicion. At its core, the pledge is based on mutual respect and trust, serving as a written model for what is expected from students in terms of behavior, as well as a pledge to live by the school's values. Parents and community members are important partners in promoting academic integrity. All students will be required to support the traits identified in the IB Learner Profile by commitring to the following: A.r an IB.rtudent, I anc re.rpon.rible to uphold a principled per.rpective in�ny per.ronal and acadeynic life. Conseauences Related to Academic Inte�ritv � Students who have chosen not to uphold the Integrity Pledge regarding academic honest�T will be subject to tihe Westlake Academy discipline policy and the administrative guidelines (see discipline section of Student-Parent Handbook). What is Academic Dishonestv? • Engaging in any act of plagiarism by passing off ideas or words of another as one's own, using another's work without quoting sources, committing literary theft, or presenting an idea from an already existing source as new oY original; • Receiving or providing assistance on an assignment in or out of the classroom where collaboration is not explicitly condoned by the teacher. This does not include legitimate collaboration in a group project or assistance provided to help another student understand class material; • Communicating or attempting to communicate with another student during an examination via veYbal, nonverbal,written, or electronic means; • Disclosing the content of assessment material to another student who is taking or has taken the same course but has not yet taken the assessment in question; • Possessing or using foxbidden materials or aids during an assessment; stealing, attempted theft, or collusion with any who attempt to steal assessment materials. Exambles of academic misconduct, intellectual rouertv, and authentic authorshiu: Academic misconduct is behavior that results in or may result in, the student or any other student gaining an unfair advantage in an assessment. What does this behavior look like? • Copying another student's work without explicit acknowledgment • Allowing another student to copy one's work (collusion) • Taking unauthorized material into an examination 5 Revised August 2019 Wesdake Academy Academic Integrity Policy • Behavior that disrupts an examination oY may distract other students • Communicating with another student during an examination • Using a translator in a language assessment without being given permission by the teacher. Examules of conventions for citin� and acknowled�in� ori�inal authorshiu: • All sources consulted are acknowledged in one's work using MLA referencing style • All information used in the body of the text is fully listed in the bibliography • Quotation marks or indentations are used to show all text that is someone else's exact words • All sources are cited so readers can find them Distinction between le�itimate collaboration and unacceutable collusion: Legitimate collaboration occurs when two students or more share and use materials to complete a group project and acknowledge in their work who produced what Moreover, a student acting in the place of a tutor for another,wherein one assists the other to learn the subject material through the use of class assignments, is legitimate collaboYation. Unacceptable collusion occurs when students deliberately copy each other's work without referencing the other's student work; this also includes the lack of will to learn course material and simply use another's work and claiming it as one's own. Cheating,plagiarism, forgery, and any other forms of academic dishonesty are considered severe discipline infractions and will be subject to the progressive discipline process oudined in the Parent/Student Handbook. 6 Revised August 2019 Wesdake Academy Academic Integrity Policy Academic Inte�ritv Essential A�reements • We will seize teachable moments for students to ensure academic integrity is upheld in future works. This will instill positive behaviors. • We will actively monitor students during class work times. Our presence as a facilitator of learning ensures we are establishing an environment where academic integrity thrives. • We will make the Academic Integrity Pledge visible in our classrooms. When turning in research assignments and assessments teachers will require students to transcribe or sign a copy of the pledge. • We will hold students accountable for their actions when the choice is made to not uphold the Academic Integrity Pledge. • We will model for students how to cite work and write a bibliography. • We will examine sources as documented by students. 7 Revised August 2019 Town Cou nci I a nd Board of Trustees Item # 6 DISCUSSION REGARDING THE BACK-TO-SCHOOL PLAN FOR THE 2020-2021 ACADEMIC YEAR, INCLUDING UPDATES REGARDING VIRTUAL AND ON- CAMPUS STUDENT INSTRUCTION. Town Cou nci I a nd Board of Trustees Item # 7 — Reports REPORTS: Reports are prepared for informational purposes and will be accepted as presented. (there will no presentations associated with the report items) There will be no separate discussion unless a Board of Trustees Member requests that report be removed and considered separately. a. Report on the use of ofF-site facilities for classroom space. b. Review a request for a memorial bench to be placed on the Westlake Academy Campus. �x��Y��� f �. h�':� :.. � '� ��}�'�F estlake Academy Board of Trustees �� � s�.������� TYPE OF ACTiON Workshop - Report Westlake Board Meeting Monday, December 07, 2020 ToPrc: Report on the use of off-site facilities for classroom space STaFF CoNTaCT: Dr. Mechelle Bryson, Executive Director Strategic Alignment Vision, Value, Mission Perspective Curriculum Outcome Obiective Academic Improve the Academic Excellence MYP/DP Efficiences of Operations Operational Systems Strategic Initiative Time Line - Start Date: January 5, 2021 Completion Date: May 28, 2021 Funding Amount: NA Status - N/A Source -N/A EXECUTIVE SUMMARY(INCLUDING APPLICABLE ORGANIZATIONAL HISTORY) The purpose of this report is to update the Board of Trustees on the use of off-site facilities for classroom space.We had been asked to explore the possibility of using open office space or unused convention and/or ballroom space in Westlake. Staff collaborated with the general manager of the Marriott and reached out to the leasing companies for the office space in our community. The leasing companies have not been receptive to this use for their corporate/office environment for a variety of reasons. Those include the sharing of space with students (even if they are upperclassmen), the on-going renovations that are occurring within Solana,parking concerns, and the general logistical needs of students using the facilities. The Marriott was more receptive to this type of use; however, they were not able to divide the grand ballroom into the smaller spaces that we need for individual classrooms and they already have events scheduled for the spring that would necessitate that we set-up and break down the spaces. We have outlined some of the other feedback and concerns staff has with utilizing alternative space for our students. This feedback can be found in the attached report. RECOMMENDATION Staff seeks feedback. ATTACHMENTS Report on the use of off-site facilities for classroom space Report on the use of off-site facilities for classroom space Date: December 1, 2020 TO: Westlake Academy Board of Trustees FROM: Dr. Mechelle Bryson, Executive Director SUBJECT: Alternative Classrooms at Marriott Assessment The purpose of this report is to update the Board of Trustees on the use of off-site facilities for classroom space. We had been asked to explore the possibility of using open office space or unused convention and/or ballroom space in Westlake. Staff collaborated with the general manager of the Marriott and reached out to the leasing companies for the office space in our community. The leasing companies have not been receptive to this use for their corporate/office environment for a variety of reasons. Those include the sharing of space with students (even if they are upperclassmen), the on-going renovations that are occurring within Solana, parking concerns, and the general logistical needs of students using the facilities. The Marriott was more receptive to this type of use; however, they were not able to divide the grand ballroom into the smaller spaces that we need for individual classrooms and they already have events scheduled for the spring that would necessitate that we set-up and break down the spaces. We have outlined some of the other feedback and concerns staff has with utilizing alternative space for our students. Overview of Items for Consideration Teacher Travel Impact: Alternative campus use presents challenges in that we have teachers who teach across grade levels. For instance, we may have a teacher that has a course load which includes both DP and MYP (G9-G10)students during a given day. This will likely require a change to the master schedule in order to accommodate the travel time our teachers will require to move between their teaching assignments. Transportation Impact: Currently, we do not have public transportation to move our students between the main campus (for sports or other activities) and an alternative campus. Lunch: The Marriott is not set-up to provide lunch to our students and we would need to see if our current vendor would be able to transport lunch (for those students who choose this option) to the hotel. Internet: We would face challenges in utilizing an alternative provider network as it relates to security and unauthorized access for our students. There could also Potential Noise Issues: Should the Marriott use adjacent space in their facility for other corporate gatherings, we may have noise overlap with our classroom spaces during the day. Covid Protocols: Any Covid protocols and safeguards that we have currently in place would be compromised in a facility with unrestricted public access. Academy Room Use Chart: We also reviewed our options through two scenarios. One, if we moved G9/G10 to alternative classrooms and the other if we moved G11/G12 offsite. Below, you will find the number of classrooms that we are currently using for G9/G10 and would likely need if we opted for this type of a configuration. It would be challenging for the Marriott to break down their larger rooms into this number of individual spaces and to keep students from being spread out in different areas of the hotel on two levels. The charts below show classroom usa e for rades 9 and 10. Period 1 Period 2 Period 3 Period 4 7 Classrooms Needed 8 Classrooms Needed 7 Classrooms Needed 8 Classrooms Needed Period 5 Period 6 Period 7 Period 8 9 Classrooms Needed 7 Classrooms Needed 8 Classrooms Needed 9 Classrooms Needed The Charts below show classroom usage for grades 11 and 12. Period 1 Period 2 Period 3 Period 4 7 Classrooms Needed 7 Classrooms Needed 7 Classrooms Needed 6 Classrooms Needed Period 5 Period 6 Period 7 Period 8 5 Classrooms Needed 6 Classrooms Needed 8 Classrooms Needed 6 Classrooms Needed Recommendation: With the configuration needs that we have specific to a school, we would recommend that we continue with our current classroom use on campus and utilize our COVID mitigation protocols to the best of our ability. Westlake Town Council TYPE OF ACTION T x E i o w N a F WESTLAKE wOPl{SIlOp - Rep02`C �ISTINCTIVE BY DESIGN Westlake Town Council Meeting Monday, December 07, 2020 ToPrc: Request for a memorial bench to be placed on the Westlake Academy Campus. STAFF Co1vTACT: Troy J. Meyer, Director Facilities & Public Works Strategic Ali�nment i i � . � . . , ; . . � � - 1 � Exemplary Service&Governance Informed&Engaged -We set the standard by delivering Improve Technology, Municipal& Citizens/Sense of unparalleled municipal and Facilities& Community Academic Operations educational services at the lowest Equipment cost. . , Outside the Scope of Identified Strategic Initiatives Timeline- Start Date: December 7, 2020 Completion Date: December 14, 2020 Funding Amount: N/A Status - � N/A Source - N/A EXECUTIVE SUMMARY(INCLUDING APPLICABLE ORGANIZATIONAL HISTORY) We have received an application, submitted by Westlake Academy parent and resident Ahu Seig, to place a memorial bench on the Westlake Academy campus in memory of Susan Canole. The Canole family has lived in Westlake for five years and have two children attending Westlake Academy in the 6th and 3rd grades. Susan, who passed away in 2020 after her courageous battle with cancer, was a volunteer in the HOC, an active room mom and participated in many other aspects of Westlake Academy. The Westlake Academy class of 2027 donated money towards a gift for the Canole family and the family has requested a bench for the campus. The Sieg family has volunteered to cover the cost for the bench and plaque to be installed on the campus. Page 1 of 2 There are currently four memorial items on campus, three benches and one anvil, all in memory of students and staf£ This request is the first memorial for a person, other than a student or staff member that has been submitted to the Council for approval. This application will be present at the December 14th Town Council meeting for consideration. RECOMMENDATION Staff recommends the Council review the Town Policy for Naming of Town Owned Facilities and Parks to determine if this request meets the criteria for a memorial bench on the Westlake Academy campus. ATTACHMENTS Town Policy for Naming of Town Owned Facilities and Parks—EXhibit "A" Page 2 of 2 �,�"�� �"� � ��L� �° �.� ,� � � � � � � .���.� d �'����� Aw�y'��P9'e„+Gd'°_� � �' � ..' � . �. .. .. , ���4R�.9C�.;idlS�zk ��x�a�;.«,T�F8�4.F�9iF$.B ��'��.` �>.'. . .'. . - . . ��..�� �.f��.. :.:: . �.. . .. .����: .>. � .. �,�.. . ,. :,,. � Y; .,. � . � ��� , �. �€������� P�rpose..................a..,...a,..,.............,....,..,..,..,,..,,............,........,...,....,,.....,.........,,........,.,,,. �. ............................ Qbje�tives..............e.....,.,...,...,......,.,.,,,...................,,...,......,......,..............,...,........,,...,.,...,............................1 �r'i�eria.............................................o..........,......,................,.............,,.,..,..,...e...,...,,........---........,..................1 Procedures....................................................................................................................................................2 Exceptic��s.....................................................................................................................................................2 � j � �: � <.� ��1�°� ��� fihe p�rpt�se caf the raami�ag guic�elir�es is ta est�blish the proper pracedur�s tc� r�cagnize the dedication, aectarr►plishrr�ent or ger�erosity eaf individ�als and entiti�s whose support; as a valuable and integral �csrrropc�n�nt of the mAssiora �af the Ts�wn of Westlake and, by extension, V1l�stlake Aeademy. The narning oppc�rtunities inciud� To�rr3 owned facilities, parks, recreatianal areas ar�d sports fields, hike and bike trail� and/or rnunic[pal bu�id3ngs -herefnafter r�ferred to as "facilities". Ir� tk�e future, additional naming oppcs��ua�ities rr�ay arise fc�r brick pavers, theater seats, benches, tree �lantings ar ather items not described abc�ve,which wiEl also be submitted�a the Co�ncil for review. �������� • Encc�urage broad cs�rnmunity support, en�ar�eement and Invalvemes�t in the Town and Academy througf� private donatior�s,gifts and other prsvate funding sources • Ensure that recognifiicas� is aff�rded to those who have made extraordinary commi#ments, danations �nd ach�evements on b�half of the Town and/c�r Academy • Provide a uniforrn p�licy fc�r s�bmittin� naming requests to the T�awn ��uncil far eonsideratit�n and deb�te ��'����"!� The�own Counci! rnay authorize the r�aming or renaming of the facilities under the foilowing criteria: C�ift-Rela�ed Namirsg — �accurs w�aen a don�r rnakes � significant rnon�tar�r contributian to the Town and/ar�caderr�y � A person or er�ti�y sa�bmitted for consid�ration shall havee (a) IVlade a sign�facant land andJor manetar�donation ta the�ow�c�r Academy (b) Made an "In Memoriam" request as a eonsideration of the donation • All requests anci pres�Qsed donatian amt�c�r��s wiil be submitted to the Caunc'sf for review and a�proval Hontarary t�amiraq �- rn�y be s�sb�nit�ed to re�ognize the decEicatior� c�r m�rit�rious contribution of a persor��r er�tity wha has beer� �nstrum�nta6 in supporting the t�a�ssior�t�f the Tc�wn and/or Academy � A, person may be iiv`sng or deeeased �nd will have demorastrated a cansistent ar signi�icant eontribution to the citizens�af the Town and/or to the students Qf Westlake Academy + I�aming ma�accur�c;r a syn�bo(or conce�t reco�nized as assaciated with the Tawn or Academy • �i locai t�is�Qric�l €igure ar (eader, place, event ar other ir�stan�e of historica! or cultural significane� � Predominant pl�nt��ter�als,streams, lakes, rivers and creeks Cornponents of the fa�ilitces c�r speciafized areas t�f use rnay have a different raame fra�m the larger park, �uiPding, recreation area, IZI�C�811L� �31ICE'$t"�II OC 6'TIUf'tlCl�}�I �UIII�{l1�. 1 � � � � . ����������� An appfication for a narr�ing request o€a fiacifity shc�uld be subrr�ittecE ta the Tovun Manager who shat! natif�r the Council of the r�c�ipt c�f the req�sest. The ap�licat6c�r� mus#cor�t�ir�: � �single reco�rarr�endati4r�ar na�rte fcsr�or�sideration � �r�sume ofi�he rr�mine� • � summation of t6�e �c�n�ribut�ons or impact of the individual or entity on the mission c�f the �"�a�nrn andJar Ac�de�y, * identificatian of the fiaciiity for namic�g consideration (i.e. park space, classroam, laboratory, �tc,� � [�arr�e c�f the pers�an�r gr�up m�king the requ�st Upc�n re�eipt, a r�vQew c�rnrr�itt�e compro�ed c�f the Town Manager and the department head associa�ed with the faciEit� or park specified in the naming applica�ior� vvill review the request and fc�rmulate a staff re�or�mendatian to the Couneil which wili incfude the foiic�wing� ! �urrent name o�t��faci!#ty(`sf applicable} • �tatus c�r availability af ths facality req�ested in th� naming oppartaanifiy � �s�ira�at� a€the b�ad�etary irtlpact of signage ar necessary plaqc�e tc� commemorate th� naming, �tatior�ary, legal fees, public r�otiees Qr other�c�sts and changes asso�iated v�rith the request The application and staf� recommencfatiQn wiEl be presented ta the CQuncii fvr approual or re�ection of the r�an���g request. :��� '���ll� In th�ever�t a gift-r�lated namcn�request stipulates a cc�ndition which the T�awn i�unable to maintain c�r ��nd, th�Coasncii retains th�a�ifoty to ctecline the gift. Narnes may be removed from considerat�on or from the faeility if the indsvidual is conv'scted Qf a felony or ar�y cr�me invalving mar�l turpitude, €s eor�victed csf a lesser included Qffense pursuant to a plea when th� origir�ally charg�d of��r�s� �s� fielony or if t�e indi�ridual acc�pts deferred adjudicatian for a felony or any crim� ir�uolving ra�oral tt�rpitud�, � � � � � �� Town Cou nci I a nd Board of Trustees Item # 8 — Executive Session EXECUTIVE SESSION: The Council will conduct a closed session pursuant to Texas Government Code, annotated, Chapter 551, Subchapter D for the following: a. Section 551.087 - Deliberation Regarding Economic Development Negotiations (1) to discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to have locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations; or (2) to deliberate the offer of a financial or other incentive to a business prospect described by Subdivision (1) for the following: - Front 44 - Entrada b. Section 551.071(2) —Consultation with Town Attorney on a matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with this chapter: Resolution No. 00-19, a Contract with Hillwood Development Corporation Concerning the Design Engineering and Construction of the West Side Pump Station and the Dove Road Waterline. c. Section 551.071(2) Consultation with Attorney — to seek advice of counsel on matters in which the duty of the Town Attorney under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551 of the Texas Government Code - FM 1938 access for proposed Southlake development. d. Section 551.073 - Deliberations Regarding Gifts and Donations. Town Cou nci I a nd Boa rd of Trustees Item # 9 — Reconvene Town Council and Board of Trustees Meeting Town Cou nci I a nd Boa rd of Trustees Item # 10 — Necessary Action TAKE ANY ACTION, IF NEEDED, FROM EXECUTIVE SESSION ITEMS. Town Cou nci I a nd Board of Trustees Item # 11 — Future Agenda Items FUTURE AGENDA ITEMS: Any Council or Board Member may request at a workshop and/or Council or Board meeting, under'�Future Agenda Item Requests", an agenda item for a future Council or Board meeting. The Council or Board Member making the request will contact the Town Manager/Superintendent with the requested item and will list it on the agenda. At the meeting, the requesting Board Member will explain the item, the need for Council/Board discussion of the item, the item's relationship to the Council and/or Board's strategic priorities, as well as the amount of estimated staff time necessary to prepare for Council or Board discussion. If the requesting Council or Board Member receives a second, the Town Manager/ Superintendent will place the item on the Council or Board of Trustees agenda calendar, allowing for adequate time for staff preparation on the agenda item. Town Cou nci I a nd Board of Trustees Item # 12 — Town Council and Board of Trustees Recap and StafF Direction Town Council a nd Boa rd of Trustees Item # 13 — Adjournment of the Town Council and Board of Trustees Meeting