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Res 10-19 WA Amend FY 09-10 budget and Adopt FY 10-11
WESTLAKE ACADEMY RESOLUTION NO. 10-19 A RESOLUTION OF THE BOARD OF TRUSTEES OF THE WESTLAKE ACADEMY TO ADOPT THE REVISED ACADEMIC SERVICES BUDGET FOR FISCAL YEAR ENDING AUGUST 31, 2010 AND THE PROPOSED BUDGET FOR FISCAL YEAR ENDING AUGUST 31, 2011. BE IT RESOLVED BY THE BOARD OF DIRECTORS OF WESTLAKE ACADEMY: WHEREAS, Section 44.002 of the Education Code of the Texas Education Agency Texas School Law Bulletin states the budget must be prepared according to generally accepted accounting principles, and WHEREAS, the budget must be approved by the Board of Trustees prior to August 31St according to Texas Education Agency's Financial Accountability System Resource Guide, Section 2.6.2—TEA Legal Requirements; and WHEREAS,the Board of Trustees held a Public Hearing on August 16, 2010; and WHEREAS, the Board of Trustees finds that the passage of this Resolution is in the best interest of the citizens of Westlake as well as the students, their parents, and faculty of Westlake Academy. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE WESTLAKE ACADEMY: SECTION 1: That, all matters stated in the recitals hercinabove are found to be true and correct and are incorporated herein by reference as if copied in their entirety. SECTION 2: That the Board of Trustees hereby adopts the revised Academic Services budget for the fiscal year ending August 31, 2010 and the proposed Academic Services Annual Operating Budget for the fiscal year ending August 31, 2011 and appropriates the funds contained therein attached to this resolution as Exhibit "A. . SECTION 3: That a copy of the official adopted 2010-2011 Budget shall be kept on file in the office of the Town Secretary. SECTION 4: if any portion of this resolution shall, for any reason, be declared invalid by any court of competent jurisdiction, such invalidity shall not affect the remaining provisions hereof and the Council hereby determines that it would have adopted this Resolution without the invalid provision. WA Resolution 10-19 Page 1 of 2 SECTION 5: That this resolution shall become effective from and after its date of passage. PASSED AND APPROVED ON THIS 16th DAY OF AUGUST, 2010. Laura heat, President ATTEST: Kell Edw 6-,Board Secre ary Tomas E. B er, uperintendent APPROVED AS TO FORM: , School Attorney WA Resolution 14-19 Page 2 of 2 w. . estlake Academ �`'f INTERNATIONAL BACCALAUREATE CHARTER SCHOOL Amp-Amp, ry� iii■ �i�, � I�w� VA- anal ` - r x t (� W 0 C� a FY 2010/ 201- f J x Annum s ^�� Operating TABLE OF i INTRODUCTORY SECTION Administrative Officials 1 GFOA Distinguished Budget Presentation Award-FY 09-10_• ____2 ASBO Meritorious Budget Award- FY 09-10.............._.......................................____..................3 Transmittal Letter------------- Framework and Presentation___________________________ 6 FINANCIAL SECTION Financial Structure 34 Function Code—General Description_______ AccountCoding Matrix---------------------------------------------------------------------------------- ---------------.............42 All Governmental Funds: Combined Statement of Revenues,Expenditures and Changes in Fund Balance,_________________43 Schedule of Revenues and Expenditures by Code ------------------------------ ---------------------------------44 Graph: All Fund Revenues and Expenditures—Fiscal Year 2010-1011 graph•.........................45 General Fund: Combined Statement of Revenues,Expenditures and Changes in Fund___________ _ _______________4b Combining Statement of Revenues,Expenditures and Changes in Fund_____________________________47 Statement of Revenues, Expenditures and Changes in Fund Balance - Transportation/Parking Fund-Fund .................. 197------------------------- -----------------------48 Statement of Revenues,Expenditures and Changes in Fund Balance - Athletic Activities - Fund 198 49 Statement of Revenues, Expenditures and Changes in Fund Balance— General Fund—Fund 199 50 Schedule of Expenditures by Function& Object Code--General Fund 199,________________________51 Graphs: Fiscal Year 2010-2011 Revenues and Expenditures-------------------------------------------------53 Fiscal Year 2010-2011 Expenditures (by function)__________________ -________--_--_--_54 Fiscal Year 2010-2011 Expenditures (by object code) __55 Fiscal Year 2010-2011 Revenues and Expenditures Comparison ____________________________5b Special Revenue Funds: Combined Statement of Revenues,Expenditures and Changes in Fund Balance.____________ ___57 Combining Statement of Revenues, Expenditures and changes in Fund Balance-------------____58 INFORMATIONAL SECTION Organizational.Chart PositionSummary------------------------------------------------------------------------------------•. 51 2010-2011 Salary Scale-------------------------------------------------------------- 62 2010-2011 School Calendar Fiscal and Budgetary Policies -------------------------------------------- Investment Policies 74 i This page is intentionally blank WESTLAKE ADMINISTRATIVE OFFICIALS FISCAL YEAR 2010/ 2011 Laura Wheat Board President Tim Brittan, Larry Corson, Carol Langdon, Rick Rennhack, Clif Cox Board of Trustees Thomas Brymer Superintendent 1 GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO Westlake Academy Texas For the Fiscal Fear Beginning September 1, 2009 President Executive Director The Government Finance Officers Association of the United States and Canada(GFOA)presented a Distinguished Budget Presentation Award to Westlake Academy,Texas for its annual budget for the fiscal year beginning September 1,2009. In order to receive this award,a governmental unit must publish a budget document that meets program criteria as a policy document,as an operations guide, as a financial plan,and as a communications device. This award is valid for a period of one year only. 2 Association of School Business Officials International MERITORIOUS This Meritorious Budget Award is presented to Westlake Academy for excellence in the preparation and issuance of its school system budget for the Fiscal Year 2009-2010. The budget is judged to conform to the principles and standards of the ASBO International Meritorious Budget Awards Program. President 0 Executive Director 3 This page is intentionally blank Westlake Academy FY 2010-2011 Proposed i 1 L TRANSMITTAL LETTER August 11, 2010 ,.>..,, Board of Trustees Westlake Academy 2600 J. T. Ottinger Road Westlake, TX 76262 ' Honorable Board Members: "*''''.�*^'�`' RE: Transmittal of Proposed FY 2010-2011 Westlake Academy Budget: "Building Our Learning Community" As Superintendent for Westlake Academy, I am submitting for your consideration the Proposed Budget for FY 2010-2011. This Proposed Budget for Westlake Academy encompasses all teaching and extra-curricular operating expenditures as well as State public school funding and private donations used to support the daily school operations of Westlake Academy in the 2010- 11 school year. This Proposed 2010-2011 General Fund Budget totals $4,425,054. It reflects the Board's discussion and direction from its June 18, 2010 budget retreat, A comparison of the Proposed Westlake Academy General Fund 2010-2011 Budget to the 2009- 2010 Amended Budget is as follows: Budget Estimated Proposed $$ %% FY 09/10 FY 10/11 (Decrease) (Decrease) Beginning Fund Balance $ 504,653 $ 522,908 $ 18,255 4% Revenues 4,211,154 4,530,013 318,859 8% Expenditures 4,092,898 4,425,054 332,156 8% Other Resources - 86,432 86,432 100% Other Uses 100,000 99,272 (728) -1% Net Revenues over(under) Expenditures $ 18,255 1 $ 92,119 1 $ 73,864 1 -405% Ending Fund Balance •0: Assigned Fund Balance 7,884 11 114,838 1 106,954 Ending ■ 500,190 #Days Operating(Based on 365) 46 1 41 Daily operating expense $ 11,213 $ 12,123 While Westlake Academy continues to operate in an economic climate that presents challenges, it continues to grow in enrollment and perform at a high level in all areas of our student's education. This budget was prepared and is recommended with the intent of keeping those factors in mind and in balance, while pursuing the Academy's adopted strategic plan's vision and desired outcomes. Those are: 4 VISION: "Westlake Academy is a nurturing, community-owned International Baccalaureate charter school whose inission is to achieve academic excellence and to develop live-long learners who become responsible global citizens. " Desired Outcomes High Student Achievement Strong Parent& Community Connections Financial Stewardship & Sustainability Student Engagement-Extracurricular Activities Effective Educators & Staff As with last year's budget, we continue the use of a theme to focus on the essence of what we do as an organization when we identify and prioritize our resources as we prepare and consider a budget. I would offer for FY 2010-2011 the theme "Building Our Learning Community" . There is much written in educational literature about schools as "learning communities", much of which is centered on the faculty being a professional learning community. A learning community is often characterized as having these attributes (SEDL): • supportive and shared leadership • supportive conditions • collective creativity • shared personal practice • shared values and vision While there is no doubt that our faculty is a critical component in building a learning community, I would endorse the view that one's concept of a learning community should be broader. It must also encompass our students, parents, elected officials, and the community in which our students live. In FY 2010-2011 Westlake Academy has a unique opportunity to broaden this concept of a learning community with our highly involved parent body to maximize this idea of a learning community as we pursue the school's continuous improvement. On behalf of the staff of Westlake Academy, as well as the municipal staff involved in providing staff support to the Academy, I would like to thank the Board for their leadership in pursuing educational excellence. I would like to recognize Finance Director Debbie Piper for her dedication, hard work, and diligent thoroughness in putting this budget together. Also, the Academy's Leadership Team, particularly Administrative Coordinator Ben Nibarger, is to be commended for their involvement and input into this document. A team is required if a school is to be successful as a learning community. And, that team must involve and consist of all the various facets of Westlake Academy; our faculty, administrators, parents, students, and the Board. Working as a team we can build our Westlake Academy learning community in a way that will make our students responsible global citizens in the twenty first century global market place in which they will live and work. Thomas E. Brymer Town Manager/Superintendent Westlake Academy 5 Westlake Academy FY 2010-2011 Piii •d Budget FRAMEWORK AND PRESENTATION Introduction The FY 2010-2011 Budget for Westlake Academy encompasses all teaching and extra-curricular operating expenses as well as State public school funding and private donations used to support the daily school operations of Westlake Academy. A comparison of the Proposed Westlake Academy General Fund 2010-2011 Budget to the 2009- 2010 Estimated Budget is as follows: Proposed Estimated Budget Budget FY i• . r Beginning,Fund Balance $ 504,653 $ 522,908 $ 18,255 4% Revenues 4,211,154 4,530,013 318,859 8% Expenditures 4,092,898 4,425,054 332,156 8% Other Resources - 86,432 86,432 100% Other Uses 100,000 99,272 (728) -1% Net Revenues over(under) Expenditures $ 18,255 1 $ 92,119 1 $ 73,864 1 -405% Ending Fund Balance $ •r: Assigned Fund Balance 1 7,884 1 114,838 1 106,954 1 - 00 •0 # Days Operating(Based an 365) 46 1 41 Daily operating expense $ 11,213 $ 12,123 As with last year's budget, we continue the use of a theme to focus on the essence of what we do as an organization when we identify and prioritize our resources as we prepare and consider a budget. The theme for FY 2010-2011 is "Building Our Learning Community". There is much written in educational literature about schools as "learning communities", much of which is centered on the faculty being a professional learning community. A learning community is often characterized as having these attributes (SEDL): • supportive and shared leadership • supportive conditions • collective creativity • shared personal practice • shared values and vision 6 I. Budget Approach As a public school, Westlake Academy is unique. The Academy is an open enrollment chartered school which features the International Baccalaureate (IB) curriculum for grades K-12. In fact, being a K-12 IB school helps us to comply with our charter in terms of offering something unique, not duplicating what is offered by the independent school districts that serve Westlake. Additionally, it is the only municipally owned chartered school in Texas and is one of only a handful of such schools in the country. It is unique in that it is a young school, having opened in 2003, that has added one (1) grade level per year since then. In 2009-2010 the Academy graduated its first senior class, another major milestone for the school. The Academy has a track record of continuous improvement centered on achieving strong student academic performance. Over time, it has added a wide variety of extra-curricular activities to provide a well-rounded education for our students. In August 2009 the Academy added a major facility improvement with the opening of its new Sam and Margaret Lee Arts & Sciences Center. Each year of its existence, Westlake Academy has prided itself on improving all aspects of its operations and services so it can be recognized as one of the top chartered schools in the state and nation. Through building our learning community, this spirit of continuous improvement is carried forward in this 2010-201.1 Budget for Westlake Academy. The 2010-2011 Budget continues movement towards placing the Academy's budget into a program based format that ties to the Academy's strategic plan and performance metrics contained in that plan. While including customary financial information related to funding levels, we have also included the following additional information to provide an accurate picture of the many dimensions of Westlake Academy: • Mission/vision and value statements • Student enrollment and projections • Academic programmes and athletics • Performance measurement • Organizational structure • General financial structure and facilities • Budget process description • Budget summary and analysis • Revenue sources • Proposed staffing levels • Proposed service level adjustments • Detail of Athletics Fund • Detail of Transportation/Parking Fund • Fund balance and Assigned for Technology/FF&E • Unfunded needs • Analysis of Westlake Academy by Fund • Future Board Direction and Financial Forecasting • Organizational Chart • Position Summary 7 • Proposed 2010-2011 Salary Scale • Fiscal and Budgetary Policies • Investment Policy IL Budget Systemic Framework-"Governing and Managing for Outcomes" The budget document is but one part of a system designed to link together critical governance and management decision making tools. This system is called "Governing and Managing for Outcomes" and is designed to integrate: • Strategic planning • Five (5) year financial forecasting, budgeting, and performance measurement linked to priorities, objectives, and outcomes • Reporting to monitor progress in outcome achievement and accountability for results • Aligning resources to prioritized outcomes • Long term approach to ensure financial sustainability • Working within Board adopted financial policies for the Academy • Maintaining core services III. Budget Challenges: Confronting Realities and Pursuing Opportunities While Westlake Academy has achieved much and has the potential to do even more, there are realities that must be recognized and confronted so proactive solutions can be identified and implemented to maintain a positive course. One of these challenges is to get a clear idea of our per student costs and determine the acceptable level of funding to use in terms of delivering the outcomes the Board has identified. The per student cost since FY 2003-2004 as well as the projected FY 2010-2011 budget at Westlake Academy is: Expenditures per Student $10,000 $8,000 $6,000 $4,000 $2,000 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 (Excludes in-direct cost of Payroll and Debt Payment-General Fund only) 8 Section X of this transmittal letter describes the Academy's financial structure and provides details about the existing challenges. However, these challenges are easily identifiable. They are: • Enrollment in FY 2011-2012 is projected to increase while per student State public education revenues are projected to be flat after FY 2010-2011 unless State per student funding is increased by the Texas legislature. • Donations via the Westlake Academy Foundation's Blacksmith campaign have remained at the same suggested per student annual donation of $1,800 since the Blacksmith campaign's inception 6 years ago and averages around $800 per student in actual giving. • Town of Westlake FY 2010-2011 annual investment in Westlake Academy is at $324,607 in indirect operating cost contributions as well as $1,501,778 in annual debt service payments for campus land and facilities. With municipal sales tax revenues falling and not having a municipal ad valorem (property) tax, the ability of the Town to invest further in the Academy is quite limited, if non-existent. • Funding for new facilities is hampered by both the lack of State public education funding for facilities for chartered schools and by the Town's maximized financial participation referenced in the previous bullet point. • Demand for new course offerings at the DP level is increasing, as well as for other programs, as we are now a fully operational K-12 school. Within these realities we can create opportunities,which could include: • Increased per student parent funding by the Blacksmith Program • Research, investigate, and then discuss with the Westlake Academy community the possibility of increasing class size to a maximum of 25 in certain upper grades such as Grades 9-12 • Aggressive marketing and development programs via the Westlake Academy Foundation to increase donor giving from individuals, businesses, corporations, foundations, grants, and other existing or new funding partners for the Academy • Create new funding streams through week night adult education courses that use the Academy building for a fee (this also is a great community outreach tool to build support for the Academy). These could be either community education type courses similar to those offered by municipal parks and recreation departments or courses offered by area junior colleges using the Academy as a satellite campus. • Using technology to offer classes via the web, thus having a virtual campus to teach from without the need to increase facilities. 9 • Pursuing partnerships with other charter and/or IB schools, as well as institutions of higher education, and share faculty training, academic programmes or programme resources to expand our academic/extra-curricular offerings to our students without additional capital investment in facilities. IV.Mission/Vision and Values In 2008, the Westlake Academy Board of Trustees held its first strategic planning retreat and arrived at a mission/vision statement as well as value statements for the Academy. The IB learner profile supports these statements. This strategic planning was further developed in FY 2009-2010 with the development and adoption by the Board of Westlake Academy's first five (S) year strategic plan that directly drives the budget process. The Westlake Academy mission/vision and values statement are seen below. "Westlake Academy is a nurturing, community-owned International Baccalaureate charter school whose mission is to achieve academic excellence and to develop life-long learners who become responsible global citizens. Academic Student Being a Engaged municipally Community Diverse Success and family students with • involvement learning through IB � oriented owned and international Curriculum environment operated awareness and support experience • charter school High Strong Parent Financial Effective # Academic &Community Stewardship Student and Engagement Educators Achievement Connections and Staff Sustainability V. Student Enrollment and Projections The Academy is known world-wide for its academic excellence and International Baccalaureate curriculum which focuses on developing caring, knowledgeable, inquiring young people who will help create a more peaceful world through intercultural respect and understanding. The Academy was the fifth school in the country to offer the IB curriculum from Kindergarten through high school. Admission applications received for children residing in the school's secondary boundaries wishing to participate in the enrollment lottery generally exceeds 700 students on an annual basis. 10 As a result, our enrollment has grown steadily since our September 2003 opening when we began operations as a Grades 1-6 PYP school. In FY 2010-2011, the enrollment is expected to be as follows: FY 2010-2011 ENROLLMENT Per grade Totals Grade 12 34 34 Grades 3-11 * 40 to 60 380 Grades 1-2 40 80 Kindergarten 36 36 Total Students 530 * A third 5th grade class is being added for the 2010-2011 school year. The same enrollment information shown in an alternative format: FY 09-10 FY 10-11 % Increase Primary Programme PYP G K-6 275 296 7.6% Middle Year Programme MYP G7-10 155 160 3.2% Diploma Programme DP G11-12 61 74 21.3% Total Students 491 530 7.9% Per Board direction from its June budget retreat, in FY 2010-2011, student enrollment will increase to an average of 20 students per class (Kindergarten, Grade 11, and Grade 12 excepted). Additionally, a third Grade 5 class will be added in FY 2010-2011. Total enrollment history by grade and future projections is as follows: Total Students 600 --- 500 -------. 400 - r 300 — --- 200 100 - � , + FY 03/04 FY 04/05 FY 05/0£ FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 1-6 K-7 K-8 K-9 K-10 K-11 K-12 K-12 As a municipally owned and operated chartered school, Westlake Academy's attendance boundaries, and its resulting student demographics, differ from those of a typical independent 11 school district. As set out in the Academy's charter granted by the Texas Education Agency (TEA), Westlake Academy's "primary boundaries" cover the corporate boundaries of the Town of Westlake. Children living in Westlake are automatically eligible to attend Westlake Academy, if they choose to enroll. The Academy also has what TEA defines as "secondary boundaries" that are geographically extensive and cover a major part of the Dallas-Fort worth Standard Metropolitan Statistical Area (SMSA). Children residing in these secondary boundaries (which are public school districts identified in the Academy's charter) may attend Westlake Academy after being selected from a waiting list created by an annual lottery for student vacancies. Enrollment by grade, primary boundary res idency, and secondary boundary (school district of residency) is illustrated below: WESTLAKE ACADEMY STUDENT CENSUS-MAY 2010 Primary Secondary Boundaries Included in appropriate ISD Westlake Carroll Keller Northwest Other Siblings Due to Schoo Due to Town Residents ISD' ISD"' ISD* Districts on Wait List Employee Employee Grade 'total No.of %of No.of %of No.of %of No.of %of No.of %of No,of %of No.of %of No.of %of Level Students Stud. Stud. Stud. Stud. Stud, Stud. Stud. Stud. Stud. Stud. Stud. Stud. stud. Stud. Stud. Stud. K 36 15 42% 1 3% 17 47% 3 8% 0 0% 2 6% 2 6% 1 3% 1 39 11 28% 2 5% 14 36% 3 81/ 9 23% 1 3% 2 5% 1 3% 2 37 10 27% 2 5% 17 46% 4 11% 3 11% 0 0% 5 141% 1 3% 3 39 20 51% 2 5% 6 15% 9 23% 2 5% 6 15% 1 3% 1 3% 4 44 19 43% 1 2% 11 25% 8 18% 5 11% 1 2% 1 2% 1 2% 5 39 18 46% 1 3% 14 36% 6 15% 0 0% 0 0% 0 0% 0 0% 6 41 16 39% 2 5% 14 34% 6 15% 3 7% 4 10% 2 5% 0 0% 7 41 15 37% 5 12% 14 34% 6 151/6 1 2% 10 24% 2 5% 0 0% 8 39 10 26% 3 8% 16 41% 7 18% 3 8% a 21% 1 3% 1 3% 9 39 9 23% 5 13% 15 38% 9 23% 1 3% 1 3% 1 3% 0% 10 36 2 6% 4 11% 19 53% 7 19% 4 11% 1 3% 0 0% 0 0% 11 37 8 22% 4 11% 17 46% 4 11% 4 11% 0 0% 1 3% 2 5% 12 24 1 2 8% 1 1 4% 1 14 58% 1 4 17% 1 3 13% 1 0 0% 1 0 0% 1 46/6 Totals 491 1 155 32% 1 33 7% 1 188 38% 1 76 15% 1 38 6% 1 34 7% 1 18 4% 9 2% Vl. Academic Programmes Westlake Academy is authorized by the International Baccalaureate (IB)to offer: • The IB Primary Years Programme (grades K-6) • The IB Middle Years Programme (grades 7-10) • The IB Diploma Programme (grades 11-12) These three curricula combine synergistically to form the 113 Continuum which is the cornerstone of the educational efforts pursued by Westlake Academy to produce 1B diploma graduates. 12 The IB programmes encourage students to be active learners, well-rounded individuals and engaged community members. Universities and colleges actively recruit IB graduates, often offering them credit or advanced standing for their IB work. Leading public and private universities and government officials recognize IB as excellent preparation for success in post secondary education and in life. Students who earn an IB diploma are equipped with the knowledge, skills, and abilities to compete with students around the world. The IB continuum is not only a pathway for students to an academically-rigorous, internationally recognized education. It prepares students for success in college or university by: • Focusing on the transference of learning with understanding to worthy tasks; • Fostering critical thinking, intellectual, and emotional maturity; and • Learning intellectual coherence through the alignment of what is taught and what is tested. When schools implement the full continuum of IB programmes,they realize several benefits: • An increased number of students prepared for and applying to the Diploma Programme as well as IB Diploma graduates; • Improved standardized test scores; • An understanding and appreciation of the world's cultures and histories among their students; and • A sense of community and shared goals among parents, students, teachers, and administrators. The IB programme related costs contained in this budget total $36,330 ($69/per person for FY 2010-2011) and are comprised of the following. Cost for Maintaining the IB Programmes PYP MYP DP Total Annual Fees $7,350 $8,400 $10,080 $25,830 Evaluation Visits $3,500 $3,500 $3,500 $10,500 * PYP visit was completed in FY 2008-2009 * MYP visit to be completed in FY 2010-2011 *DP visit to be completed in FY 2012-2013 (Future evaluation visits will be every five years) The IB curriculum continues to be the top reason parents seek out Westlake Academy for their child's education as evidenced in this response from the 2010 parents' survey: 13 Q1 . Overall Satisfaction With Westlake Academy Services and Programs by percentage of parents who rated the item as a 1 to 5 on a 5-point scale (excluding don't knows and not applicable) Suitability of campus for learning 33% 32% 11% IB cuMculum 39% 41% 16% DP teacherstfaculty 37% d4°6 14% Sac€aliernotional progress of child 36% 44% 10% PYP Curriculum 35% 43% 12% Oppostuniiies for parental involvement 36% 42% 1 1'1% Academic progress of child 34% to% PYP leacherslfacuity 38 0,6 36% 11% Overall satisfaction with education 341% 39% 1 5% Teachers response time 22% 1 51% 14% Maintenance of the Academy 30% 42% 1 14% Effectiveness of the WAF 30% 40% _21% MYP teachersifacu(ty 19% 47% 21% DP curriculum 26% a 39% 30% The four House system for students 32% 33% 28% Methods of WA communication 22% 41% 22% 0% 20% 40% 60% 80% 100% t7Very Satisfied(6) MSatisfied(4) =Neutral(3) EDissatisfied(1r2) Saaree., ETClnsfitvtR(July'010-Mesfiake.itadew. Board of rnrstees Parent Survey) VII. Westlake Academy Athletics While mentioning our academic programs, we must also take a moment and focus on our athletics for the coming school year. Athletics at the Academy are intended to "i round out our students' education and compliment their class room work. One of the Academy's athletic program's special features is that it offers all our students an opportunity to actually play at least one sport of their choosing (many play several). Another special attribute of Westlake Academy athletics is the tremendous core of talented parents who volunteer as coaches and assistant coaches, as well as serve in the Westlake Academy Athletic Club (WAAC). It should be noted that it w ill require the continued infusion of WAAC dollars to operate the Athletics Program at the level desired in FY 2010-2011. The Athletic Program budget is detailed in the `Budget Summary and Analysis" section. In FY 2009-2010 the Athletics Program continued making significant strides in its overall program design and performance. VIII. Performance Measurement The budget is a means to allocate financial resources to create certain educational outcomes as predetermined by the Board. These outcomes can lend themselves to measurement. By various 14 metrics, we can ascertain the point at which Westlake Academy is performing at a high level. We can also identify areas where additional emphasis or resources are needed to generate continuous improvement in terms of the outcomes the Board has identified as a priority. In that light, different types of measures are presented to examine the Academy's past and desired future student academic performance. Over time it is anticipated these measures will grow in their usefulness as we continue to identify the results we wish to achieve. One type of measure is an "absolute measure" such as standardized test results. This chart shows the Academy's State mandated TAKS (Texas Assessment of Knowledge and Skills)Results over time by subject area as well as the campus ratings by the Texas Education Agency(TEA): Description FY 03104 FY 04/05 FY 05106 FY 06107 FY 07108 FY 08109 FY 09110 Reading/English 98% 98% 99% 98% 99% 100% 98%v Language Arts Writing 97% 97% 99% 91% 93% 100% 96% Social Studies N/A NIA 99% 95% 98% 100% 99% Mathematics 97% 91% 95% 91% 93% 98%n 94% Science 93% 85% 78% 88% 96% 99% 99% Texas Accountability Exemplary Recognized Recognized Recognized Exemplary Exemplary Exemplary Rating The Academy's Strategic Planning has other metrics identified to measure Specific Outcomes needed to attain the Desired Outcome of High Student Achievement. These include use of the SAT, PSAT, Stanford Test as tools to assess student performance in relation to Westlake Academy, and other Texas charter schools, Texas public schools, and benchmark schools so as to be in the top 5% of those schools. Parents, as well as community perceptions, regarding Westlake Academy, are also important as a measure for evaluating areas of strength as well as areas for improvement. These perceptions can also help identify a pportunities for community outreach and partnerships. The f ollowing are key indicators resulting from the Town's 2010 recent DirectionFinder (citi zens) survey of Westlake residents, as wel 1 as result s from the Board's 2010 Westlake Academy Parents' Survey. 15 Q1-1 Overall, how satisfied are you with the quality of education provided by the Academy? Very Satisfied Very Dissatisfied z% Satisfied _Dissatisfied •% 9% IL Q16. Would you support increasing the overall size of the student body at the Academy if the class size were maintained or potentially reduced? by percentage of parents Yes 64% -Don't know r" 8% No 28% .Svtrrce: L C.Instirrrte(_rl y 10:0-M stlr kv Acade ry 3ocv-d of Tnisteas Parm Sirv7vv 16 Q3. Agreement with Various Statements About Communication and Outreach at Westlake Academy by percentage of parents who rated the item as a I to t on a 5-point scale (excluding don't knows and not applicable) Reception staff is friendly and helpful 32°16 4496 15°I I have been encouraged to volunteer 39% 30% '18% Written communication is clearleasy 20% 43% � 23 Am interested in ni nfe parent educationftraining 1976 23% 32% Academy keeps me informed 15% 31% 32% 0% 20% 40% 60% 80% 100% 0Strongly Agree(5) Agree(4j =Neutral(3) ODisagree(112) I 5auree: EX Irisrlrifre,(AP i 010-T esiiake-4cademY Board p(Tnisrees Parent Sivvi r i Q2. Westlake Academy Services and Programs That Parents Felt Were Most Important by percentage of parents who selected the item as one of their top three choices 18 curriculum 46°J Academic progress of child _ 44!'0 PYP teach ersffaculty 28°0 College preparation process _ 21% Sociallemotional progress of child — lfi 0 Teacher/parent communication 15% � PYP Curriculum 131 Overaii satisfaction with education 13% Communication about child's issues 12% r 1 DP teachersifacuity Ill 1% r 1 MYPteachersifacuft,. 11% 1 MYP Cu riculum 1090 DP Curriculum S!0 Extracurricular sports programs 7% ©uality of communication 6% r i Suitability of campus€or learning 6% � Grading system 5°e r i Other extracurricular programs 5:>ti Secondary Counseling department 3°Po Primary Counseling department 2%- Opportunities for parent input 2 ° Schoof website 2% Opportunities for parental involvement 2946 Methods of communication 2% � School uniform a,endor 2% Teachers response time 1% Maintenance of the Academy 1% Five year strategic plan €°!o i New main entrance security cheek-in t°f0 0% 20%° 40% 60% 01st Choice E12nd Choice 03rd Choice Source- ETC bisawre(Jeri)?=r7j'0-fr€sflakc Acade m•Yoard urTnistees Parent Snnt v) 17 IX. Organizational Structure The organizational structure for Westlake Academy is established by its charter which is granted through an authorizer on behalf of the State, the Texas Education Agency (TEA). Westlake Academy is governed by a six member elected Board of Trustees that also serves as the Town Council for the Town of Westlake, the entity that owns and operates the Academy. The Board of Trustees appoints a Superintendent to oversee the Academy's management and operations. The Superintendent also serves as Westlake's Town Manager. The Academy's organizational structure is based on research into management of municipally owned charter schools. The current structure was adopted by the Board in Resolution 09-23 on December 7, 2009. The Superintendent is responsible for the implementation of the Board's policy agenda for Westlake Academy, facilitating the Board's strategic plan., formulating policy recommendations for Board consideration, as well as managerial oversight of the Academy's budget administration, finances, and budget preparation. Superintendent responsibilities also include selection of the principals for both the Primary and Secondary Years Programmes. The Academy's Superintendent oversees the Westlake Academy Leadership Team(WALT)which is charged with the responsibility of managing the school's on-going academic and extra-curricular operations. Each principal is responsible, with advisement from the Superintendent, for selection and evaluation of the faculty and staff involved in providing their Programme's academic services. The senior management structure for the Academy is: Superintenclant s■■■ D' Coordinator Admin Coordinator Principal .. The 2011-2012 school year is an assessment year for the Academy's Middle Years Programme. For that reason, initially the MYP Principal will focus on Grades 7-10. Eventually Grades 11-12 will become part of this position's purview. Until then, the school's IB Diploma Coordinator will serve as the Diploma Programme team lead. X. General Academy Financial Structure and Facilities Overview A. Campus Facilities The land and buildings that comprise the Westlake Academy campus are owned by the Town of Westlake, a municipality incorporated under State law as a Type A general law city. Westlake Academy opened in 2003 with Grades 1 through 6 and has added a grade each subsequent year. With the commencement of the 2009-2010 school year, the final component was added with the 12th grade inaugural graduating class. The campus is located 18 on twenty three (23) acres adjacent to J.T. Ottinger Road, which is near the intersection of State Highways 114 and 170. The original campus included three (3) stand alone academic buildings with a total of twenty nine (29) classrooms, administrative offices, restrooms, a library, breakout area, a performance hall, dining and kitchen area, locker rooms, and a gym. These buildings total 52,600 square feet. The Academy interior design includes wood, vinyl covering, carpet and tile flooring. The hallways are lined with wooden lockers and carpet flooring. The Sam and Margaret Lee Arts & Sciences Center opened in August of 2009 and added another 8,400 square feet of building space to the campus. This facility includes one art room, two science labs, five offices, a workroom, conference room, restrooms and breakout space. B. Capital Costs/Debt Service The Town of Westlake has issued certificates of obligation and general obligation bonds to fund the construction of the campus. As of FY 2010-11 there is $32,266,379 (principal and interest) of outstanding bonded indebtedness to retire these bonds. Included in this total, is the 2008 issuance of$2.5 million in G.O. bond debt to fund a portion of the new $5.1 million Sam and Margaret Lee Arts & Sciences Building. Annual debt service payments are expensed to the Town's municipal budget and the revenue stream presently utilized to make the annual debt service payment is comprised of municipal sales tax. However, the legal pledge securing these bonds, should this present sales tax revenue source not be adequate to retire this debt, is an ad valorem tax which the Town would be required to implement on all property within its corporate limits. Presently the Town of Westlake levies no ad valorem tax and there is no direct limit on debt for the Town. The Constitution of the State of Texas provides that the ad valorem tax levied by the Issuer for general purposes and for the purpose of paying debt service requirements of the Issuer's general obligation debt shall not exceed $1.50 for each $100 of assessed valuation of taxable property. While there are future facility needs, there are currently no funded buildings or large projects for Westlake Academy contained in the Town's CIP (capital improvement plan) due to the unavailability of funding. C. Direct O eratin Costs In addition to owning the Westlake Academy campus facilities, the Town of Westlake is responsible for the daily maintenance costs of the campus grounds and buildings. Per Board direction from its June budget retreat, FY 2010-2011 will be the first fiscal year all direct costs to operate the campus are expensed to the Academy's operating budget (as opposed to the previous practice of expensing much of that cost in the Town's municipal budget). Direct costs moved from the municipal budget to the Academy's operating budget in FY 2010-2011 total $243,213. D. Indirect Operating Costs Further, the Town of Westlake provides various administrative support services for the Academy to avoid duplication of costs. This fact was used as part of the charter application process with the TEA to help bolster the Town's case for having a community school without duplicating cost structures and required resources. These indirect operating costs are contained in the Town's municipal budget and are estimated to be approximately $324,607 in 19 FY 2010-2011. These support services for the Academy that generate indirect costs paid by the Town of Westlake are: • Human resources • Information technology • Risk management • Finance and accounting services • Facility maintenance services • General administrative services (Superintendent) • Board support services including policy advisement and strategic planning (Superintendent) • Official Board records maintenance and election administration (Town Secretary) As other indices in this letter show, such as the Academy's growing enrollment and staffing levels, this has created an increased demand for the level of support services that the Town provides the Academy. Per Board direction at its June budget retreat, beginning in FY 2011- 2012, indirect costs for these services provided by the Town will be expensed to the Academy operating budget. E. Financial Structure Summary In summary, the full cost structure for Westlake Academy for FY 2010-2011 (all funds), including the Proposed FY 2010-2011 Westlake Academy Budget is $12,219. Overall Cost Summary Proposed FY 10-11 Proposed Westlake Academy Budget $ 4,649,822 Estimated Town Funded Indirect Operational Costs(Support Services) 324,607 Subtotal All Operating Costs 4,973,129 Annual Debt Service Payment 1,501,778 Grand Total $ 6,476,207 20 Expenditures per Student (Includeds full-cost structure-All Funds) $14,000 513.865 $13,500 _.___ _. _.. r $13,012 $12,933 $13,000 $12,500 ---..- - $12,014 $12,000 $11,500 __.� ---- $11,000 -JF4. FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 XI. Westlake Academy FY 2010-2011 Budget Process A. Academy Budget and Strategic Planning Process and Calendar The Academy's budget process integrates with its strategic planning process and covers the financial cycle starting with budget planning and ending with the audited financial report: • October/December 2009 Strategic Plan preparation process occurs • December 2009 Westlake Academy Leadership Team(WALT)begins planning FY 2010-2011 Budget • January 2010 WALT meets with WA affiliates for joint planning for FY 2010-2011 • January-March 2010 Staff presents draft WA Strategic Plan to Board of Trustees (BOT) • February 2010 Discussion with BOT of broad overview of WA's 2010- 2011 Budget(i.e. early input, including review of updated WA financial forecast) • April 5, 2010 BOT adoption of five year strategic plan • April/May 2010 Proposed budget preparation for 2010-2011 (Faculty input) • June/July 2010 Westlake Academy parents' survey conducted • June 18, 2010 FY 2010-11 Proposed Budget and Strategic Planning Retreat with BOT 21 • August 16, 2010 Board consideration/adoption of Westlake AcademyFY 2010-2011 Budget • August- September 2011 Budget Amendments for FY 2010-2011 • Fa112010 Begin strategic plan update/review process for FY 2011- 2012 • December 2010 Annual Financial Report for FY 2009-2010 B. Staff Budget Preparation Methodology_ The Academy's budget process is site based, instructionally driven, and reflects the Board's strategic priorities and outcomes. The Budget Calendar and Five-Year Financial Forecast are also reviewed with the Board of Trustees at least annually. The goal of the Academy's budget preparation process is to incorporate all the school's planning efforts into a single process; "Governing and Managing for Outcomes" . Budget preparation begins by soliciting input from faculty as to their projected needs for academic programme delivery in the upcoming fiscal year. The information is placed onto budget work sheets which are then reviewed by the Westlake Academy Leadership Team (WALT). Increases or decreases in funding are identified as "service level adjustments" (SLA's). SLA's can be utilized to add a new program or service as well as tracking increased or decreased funding levels for an existing or expanded service/program. Proposed funding and SLA's are then reviewed by the WALT with the Superintendent including all proposed staffing levels. A preliminary budget is fashioned by the Superintendent for final review, including instructional impacts and reallocation of existing funds, as well as requests for additional funds. When determined to be complete and in concert with available resources and the strategic plan, the Superintendent submits a recommended Westlake Academy Budget for consideration by the Board of Trustees. C. Board of Trustee Budget Review The Board of Trustees regularly receives financial updates during the course of the fiscal year including any revisions to the five-year financial forecast. Upon receipt of the proposed annual Westlake Academy budget, the Board conducts budget workshops to review proposed outcomes for the next fiscal year, expenditure and revenue levels,proposed staffing levels and service level adjustments, compliance of the budget with fiscal policies, as well an updated five (5) year financial forecast. D. Budget Adoption In addition to Board budget workshops held from February to June, the Board of Trustees holds the required public meeting and adopts the budget in August prior to beginning the fiscal year, which runs from September V to August 31't. XIL Budget Summary and Analysis A. Expenditure Summary The FY 2010-2011 Proposed Westlake Academy Budget totals $4,649,822 (including ALL funds) and is summarized as follows: 22 Proposed Percentage Budget of Total EXPENDITURES (BY OBJECT) FY 10/11 Budget 61XX Payroll & Related Items $ 3,396,643 73% 62XX Contracted Services 641,745 14% 63XX Supplies & Materials 258,287 6% 64XX Other Operating 353,147 8% 65XX Debt Service - 0% Total Expenditures $ 4,649,822 100% EXPENDITURES (BY FUNCTION) 11 - Instructional $ 2,595,282 56% 12 - Resources & Media 93,256 2% 13 -Staff Development 136,250 3% 21 - Instructional Leadership 133,415 3% 23 - School Leadership 298,877 6% 31 - Guidance & Counseling 164,757 4% 33 - Health Services 54,529 1% 35 - Food Services 9,700 0% 36 - CoCurricular/Extracurricular Activities 114,098 2% 41 -Administrative 279,300 6% 51 - Maintenance & Operations 546,560 12% 53 - Data Processing 158,851 3% 61 - Community Services 64,949 1% 71 - Debt Service - 0% Total Expenditures $ 4,649,822 100% B. Revenue Sources Westlake Academy's revenues to fund its annual budget come from two major sources. First, public education funding is provided by the State of Texas which accounts for 88.7% of this budget revenues. The funding is provided on a per student basis and is projected to be $7,073 per student for FY 2010-2011. The following chart show s the Stat e's per student funding level (State Foundation funds only) for the Academy since inception as well as the projected FY 2010-2011: 23 State Funding per Student $8,000 $7,000 $6,000 $5,000 $4,000 -- - - -- � ; - roc, $2,000 - $1,000 --- s FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 Donations provided by the Westlake Academy Foundation's Blacksmith Program constitute the second largest funding source for the Westlake Academy Budget which totals 9.25%. Absent other revenue sources, if it were not for this private donation support from the parents that participate in the Foundation's Blacksmith campaign, the Academy's Budget would not be fully funded and could not provide educational services at their current level. Presently the Westlake Academy Budget receives no ad valorem revenues as the Town of Westlake does not levy an ad valorem tax. Since the inception of the Foundation's Blacksmith program., annual amounts raised from the Academy parent body are as follows: Revenue Sources FY 09/10 FY 09/10 FY 10/11 FY 08/09 Adopted Estimated Proposed Audited Budget Budget Budget Local &Intermediate Sources Blacksmith Apprentice Program(WAF) $ 394,129 $ 420,000 $ 435,095 $ 419,230 Gifts and Donations 20,000 - 3,000 - Investment Earnings 4,617 3,000 625 1,500 Lunchroom Revenues 6,339 8,600 - 3,000 WAF Salary Reimbursement 64,858 64,858 64,858 64,858 Local Revenue 25,341 11,000 16,388 12,000 Athletic Activities Income 32,743 48,006 44,953 51,953 Transportation & Parking - - 32,840 Total Local&Intermediate Sources 506,248 555,464 564,919 585,381 State Revenues Foundation School Program 2,960,589 3,443,120 3,379,040 3,748,836 State Revenue (TR5 and Medicare On-Behalf) 202,539 174,285 193,989 189,630 Medicare Part D On-Behalf - - 6,044 6,165 Total State Revenues 3,163,129 3,617,405 3,579,073 3,944,631 TOTAL REVENUES $3,669,377 $4,172,869 $4,143,993 $4,530,013 24 Revenues by Dollars 4,500,000 -- ----- — – — ------ Lunchroom Revenues 4,000,000 -— ----- 3,500,000 – - --- _ r.Investment Earnings _I 3,000,000 Gifts and Donations 2,500,000 --... __-_ _- „ -_ ------- 2,000,000 -- -- - --- i Local Revenues 1,500,000 _ --.-- — 1,000,000 _- WAF Salary Reimbursement 500,000 ■Blacksmith Apprentice Program 0 (WAF) FY 08/09 FY 09/10 FY 09/10 FY 10/11 ■State Revenues Audited Adopted Budget Estimated Budget Proposed Budget Revenues by Percentage 100% --.— --- — — - Lunchroom Revenues i i S0% — --_n___ ------ W zr Investment Earnings x.Gifts and Donations 60% - - - - 0 Local Revenues WAF Salary Reimbursement ■Blacksmith Apprentice Program (WAF) 0% -- , -- 0 State Revenues FY 08/09 FY 09/10 FY 09/10 FY 10/11 Audited Adopted Budget Estimated Budget Proposed Budget 25 Blacksmith Program Contributions $500,000 $400,000 s: $30fl,000 FY 00/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 actual actual actual estimated proposed C. Total Budgets for All Governmental Funds The following schedule presents a comparison of revenues and expenditures for all Governmental Funds in the Academic Services Budget. Budgets for the General Fund, the Food Service Fund (a Special Revenue Fund) and the Debt Service Fund must be included in the official district budget (legal or fiscal year basis). The Academy does not maintain a Food Service Fund or a Debt Service Fund; therefore; the only fund legally adopted will be the General Fund. For informational purposes only,budgets for Special Revenue Funds are included throughout the presentation. 26 All Governmental Funds-Total Revenues Adopted Estimated Proposed Actual Budget Budget Budget FY 08/09 FY 09/10 FY 09/10 FY 10/11 General Fund 5 3,661,645 $ 4,172,869 $ 4,211,154 $ 4,530,013 Special Revenue Funds 96,610 139,680 332,131 162,768 Total Governmental Funds $ 3,758,255 $ 4,312,549 $ 4,543,285 $ 4,692,781 All Governmental Funds-Total Expenditures Adopted Estimated Proposed Actual Budget Budget Budget FY 08/09 FY 09110 FY 09/10 FY 10/11 General Fund $ 3,709,086 $ 3,918,033 $ 4,092,898 $ 4,425,054 Special Revenue Funds 96,610 139,680 270,131 224,768 Total Governmental Funds $ 3,805,696 $ 4,057,713 $ 4,363,029 $ 4,649,822 All Governmental Funds-Expenditures by Object Code Adopted Estimated Proposed Actual Budget Budget Budget FY 08/09 FY 09/10 FY 09/10 FY 10/11 61XX Payroll&Related Items $ 2,790,289 $ 3,090,775 $ 3,275,786 $ 3,396,643 62XX Contracted Services 553,162 488,190 444,608 641,745 63XX Supplies&Materials 252,376 252,105 305,659 258,287 64XX Other Operating 126,878 184,643 295,481 353,147 65XX Debt Service 82,991 42,000 41,496 - Total Expenditures $ 3,805,697 $ 4,057,713 $ 4,363,029 $ 4,649,822 D. Proposed Staffin Levels As we examine proposed major areas of expenditures such as staffing, it is helpful to think about and evaluate them based on their impact on these suggested desired outcomes for the Academy (see Section N for more detail): ➢ High Academic Achievement ➢ Strong Parent& Community Connections ➢ Financial Stewardship & Sustainability ➢ Student Engagement ➢ Effective Educators & Staff As indicated in the previous charts, 73% of Westlake Academy's Operating Budget as adopted are payroll related, i.e. - salaries and wages plus fringe benefit cost. A detailed personnel schedule is provided in this adopted budget. A summary schedule of recommended positions with a comparison to the current approved budget is as follows: 27 FY 09/10 FY 10/11 Actual Proposed Increase Primary Instructional 18.00 20.90 2.90 Secondary Instructional 15.77 16.75 0.98 Special Education 2.00 2.00 - Sub-total Instructional Staff 35.77 39.65 3.88 Instructional Aides 3.70 3.75 0.05 Librarian 1.00 1.00 Counselors 2.00 2.00 Nurse 1.00 1.00 Clerical Staff 5.00 4.40 -0.60 Leadership 4.60 5.00 0.40 Information Technology 1.70 1.80 0.10 Strings 0.25 0.25 - Day-Porter 0.60 0.60 - Sub-total Other Staff 19.85 19.80 -0.05 TOTAL EMPLOYEES 55.62 59.45 3.83 Total Staff 70 - - - -� - . 60 50 - 40 ,. 30 20 r __ 10 .--- -- - 0 d� FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 K-8 K-9 K-10 K-11 K-12 K-12 With a few exceptions,new positions included in the proposed Westlake Academy Budget comport to discussions held with the Board at their June 18,2010 budget retreat. Recommended new positions will be discussed below under proposed service level adjustments. E. Proposed Service Level Adiustments This budget makes use of Service Level Adjustments (SLA's)to track any cost changes. These cost changes can be due to increased operating costs for an existing program, increased operating costs due to program expansion, or costs for the reallocation of existing funding. SLA's can also outline cost decreases that occur for a variety of reasons including efficiencies, not spending the fully budgeted allocation in the current fiscal year, or service level reductions that reduce cost. 28 Generally speaking, Service Level Adjustments proposed in this budget are those that fall in the category of increased operating costs for existing programs. Some SLA's are proposed due to existing program expansion, such as adding a third fifth grade class. In terms of SLA's involving new expenditure areas to target for recommendation to the Board for FY 10-11, staff recommends three (3) areas: new positions, employee compensation, staff training, and absorbing operational costs for the Arts& Sciences Building. ➢ Direct Operating Costs(formerly charged to Town): Total: $243,213 Desired Outcome: Financial Stewardship and Responsibility In FY 2010-2011 the Academy will begin to pay the entire operating costs including maintenance and upkeep of the physical facility. For the last six years this was charged to the Town's budget and is being transferred to the Academy. This includes contracts for grounds,janitorial,HVAC, lighting,etc. ➢ New Positions: Total: $203,137 Desired Outcome: High Student Achievement In FY 10-I1, it is proposed to add 3.83 full-time equivalent employees (FTE's) to the Westlake Academy Budget. It should be noted that the additional FTE's shown below are illustrated as "whole" positions. These additions, like many existing positions in the Academy, are allocated on a percentage basis to more than one function. • One MYP Spanish Teacher • One 5' grade classroom teacher • One MYP Physics/Math Teacher • One Library Aide • One Part-time MYP Art Teacher ➢ Employee Compensation and Benefits: Total: $67,705 Desired Outcomes: Effective Educators &Staff High Student Achievement With 72% of the Academy's Budget funding allocated to employee pay and benefits, it is important that we offer competitive salaries, wages, and benefits to attract and retain a strong faculty base, even in a difficult economy. It is proposed to shift our teacher's pay scale to provide for a 2% pay increase and a $7,000 increase in coaching stipends which will be offset by an increase in athletic fees in FY 2010- 2011. ➢ IB Fee Increase: Total: $2,000 Desired Outcome:High Student Achievement ➢ Bus Operating Costs: Total: $20,000 Desired Outcome:High Student Achievement Student Engagement 29 Two (2) 18 to 20 passenger buses were funded by generous donations by parents during the Westlake Academy Foundation's Gallery Night function. These buses will be utilized to transport Academy students to various class field trip and athletic events. This is a new service for which operating costs for gasoline, insurance, and other operating expenses will be funded by the student usage fees and the Academy. Graduation Ceremony Expenses: Total: $10,000 Desired Outcome: Student Engagement Strong Parent& Community Connections This would provide a reasonable amount of adequate funds in-line with the actual costs incurred in our first senior commencement ceremony in 2010. F. Athletics Proeram As mentioned previously, the Academy's Athletic Program is intended to move this program forward in FY 2010-2011. The budget for the program is: FY 09110 FY 10111 Revenues Uniform Replacement Fee $ 7,931 $ 7,931 Equipment Replacement Fee 2,185 2,185 Donations 8,301 8,301 Tournament Receipts 1,585 1,585 Registration Fees 20,523 27,523 Miscellaneous 4,429 4,429 Total Revenues 44,953 51,953 Expenditures Officials 10,265 11,000 Field Rentals 848 1,000 Uniforms 19,130 5,000 Supplies 3,013 5,000 Equipment 1,093 8,000 Trophies/Awards 802 1,000 Tournament Entry Fees 2,710 5,000 League Fees 1,540 2,000 Total Expenditures 39,401 38,000 Excess(Deficiency)of Revenues Over(under)Expenditures 5,553 13,953 Other Financing Sources(Uses) Transfers in - - Transfers out - (7,000) Total Other Financing Sources(Uses) - (7,000) Net Changes in Fund Balance 5,553 6,953 Fund Balance,Beginning 2,332 7,885 Fund Balance,Ending(Assigned) $ 7,885 $ 14,838 30 G. Transportation/Parking Fund FY 10111 Revenues Parking Fees $ 12,840 Transportation Fees 20,000 Total Revenues 32,840 Expenditures Bus Operations(Fuel/Supplies) 20,000 Total Expenditures 20,000 Excess(Deficiency)of Revenues Over(under)Expenditures 12,840 Other Financing Sources(Uses) Transfers in Transfers out (12,840) Total Other Financing Sources(Uses) _ (12,840) Net Changes in Fund Balance - Fund Balance,Beginning Fund Balance,Ending(Assigned) $ - H. Fund Balance and Assigned for Technolosy/FF&E The ending fund balance for the General Fund portion of the Academic Services Budget is estimated as follows: FY 09110 FY 10111 % Inc(Dec) Fund Balance $515,053 $500,218 -2.88% The goal for the fund balance of the General Fund for FY 2010-2011 is to have this balance be equivalent to at least 41 operating days. In FY 2010-2011, it is recommended to use this fund balance as follows: Total Estimated Fund Balance @ 08-31-11 $ 615,056 Assigned Fund Balance 114,838 Total Estimated Fund Balance (Unassigned) $ 500,218 The Academy needs to continue the practice begun in FY 2009-2010 of setting aside funds for replacement of computers, furniture, and fixtures. It is intended, at th a end of F Y 2010-2011 (assuming the fund balance show n here occurs),to assign $100,000 for Technology/FF&E (furniture/fixture & equipment) for Westlake Academy to begin to accumulate funding for these future replacement needs that ar a currently u nfunded and $14,838 for athletic activities. I. Unfunded Needs As with any budget, there are yet other needs that new dollars could support. This may be an area where consideration by the Westlake Academy Foundation to increase it's per student suggested funding contribution would help. 31 J. Analysis of Operating Budget by Fund General Fund The General Fund is budgeted at $4,425,054 for FY 2010-2011. This fund is established to account for resources financing the fundamental operations of the Academy, in partnership with the community,to enable and motivate our students to reach their full potential. All revenues and expenditures not required to be accounted for in other funds are included here. This is a budgeted fund and any fund balances are considered resources available for current operations. Fund balances may be appropriated by the Board of Trustees by budget amendment to implement its responsibilities. The 2010-2011 budget plans to decrease fund balance by approximately $14.8K. This fund also includes the newly created Transportation/Parking Fund—Fund 197 as well as the Athletic Activities Fund—Fund 198. This budget leaves the Academy's ending fund balance at 11% of the General Fund's current operating expenditures. The Academy's target for FY 2010- 2011 is forty-one (41) operating days. Special Revenue Funds These funds are budgeted at$224,768 in total and are established to account for grant funds from federal, state or local sources or expenditures legally restricted for specified purposes. Any unused balances are returned to the grantor at the close of specified project periods. The Academy has six(6) Special Revenue Funds budgeted for FY 2010-2011 as follows: 2010-2011 Special Revenue Funds Budget IDEA B -Formula $ 69,097 IDEA B -Preschool 1,796 ARRA Title XIV- SFSF Stimulus 72,136 Advanced Placement Incentives 5,750 Technology Allotment 13,989 Hudson Foundation 62,000 Total Special Revenue Fund $ 224,768 K. Future Board Direction and Financial Forecasting The Board, at its June 18, 2010 planning retreat, directed staff to include the following in FY 2010-2011: • Add all Academy related direct operating costs,previously in the municipal budget,into the Academy's operating budget • Increase class size to an average of twenty(20) Beginning in FY 2011-2012 the Board directed: • Move all indirect Academy operating costs now expensed in the municipal budget to the Academy operating budget. • Budget Blacksmith funding at a 75%level • Increase enrollment via an expanded block schedule. The following financial forecast reflects this Board direction: 32 ACADEMY WESTLAKE FIVE YEAR FORECAST Description FY 10-11 General Fund Beginning Fund Balance $ 522,937 $ 615,056 $ 411,401 $ 340,295 $ 335,160 REVENUES: Local Revenue Westlake Foundation reimbursement for Salary 64,858 64,858 64,858 64,858 64,858 WAF,WAAC,Grants,Scrip,Other Local Rev 12,000 12,000 12,240 12,485 12,734 Biacksmith Apprentice Program (75%FY 11-12&future) 419,230 361,883 373,748 385,613 385,613 Interest Earned 1,500 1,500 1,530 1,561 1,592 Food Services 3,000 3,000 3,060 3,121 3,184 Athletic Activities 51,953 53,512 55,117 56,771 58,474 Transportation/Parking 32,840 15,900 18,860 18,860 18,860 Total Local Revenue 585,381 512,652 529,413 543,268 545,314 State Revenue TEA Foundation funds 3,748,836 4,314,698 4,455,990 4,597,450 4,597,450 TRS On-behafflMedicare Part B (Offset fn Salary exp) 195,795 199,711 203,705 207,780 211,935 TOTAL REVENUES 4,530,013 5,027,062 5,189,108 5,348,497 5,354,699 EXPENDITURES: Object Code 61 X-Salaries 3,253,614 3,593,687 3,665,560 3,738,872 3,813,649 Object Code 62XX-Professional&Contracted Services 641,745 985,604 1,005,316 1,025,423 1,045,931 Object Code 63XX-Supplies&Materials 224,298 231,027 235,647 235,647 235,647 Object Code 64XX-Other Operating Costs 305,397 314,559 320,850 320,850 320,850 Object Code 65XX-Debt Service - 93,000 20,000 20,000 - Object Code 66XX-Capital Assets 133,000 TOTAL EXPEDITURES 4,425,054 5,217,877 5,247,374 5,340,792 5,416,078 OTHER RESOURCESIUSES Other Resources 7,000 7,000 7,000 7,000 7,000 Other Resources(Setting up capital lease for portables) 133,000 Transfers Out 19,840) (19,840) (19,840) (19,840) (19,840) Excess Revenues Over(Under)Expenditures 92,118 (203,655) (71,106) (5,134) (74,218) ENDING FUND BALANCE 615,056 411,401 340,295 335,160 260,942 Assigned-Technology/FFE 100,000 100,000 100,000 100,000 100,000 Assigned-Uniform/Equipment Replacement 14,838 15,283 15,741 - - ENDING FUND BALANCE BASED ON 75%BSA donations $ 500,218 $ 296,118 $ 224,553 $ 235,160 $ 160,942 $$Per o eratln Da $ 12,123 $ 14,296 $ 14,376 $ 14,632 $ 14,839 9 of Operating Days(based on 365)(75%BSA donations) 41 21 16 16 11 ENDING FUND BALANCE(BASED ON 75%BSA donations) $ 500,218 $ 296,118 $ 224,553 $ 235,160 $ 160,942 Additional 25%Blacksmith Apprentice donations 120,628 124,583 128,538 128,538 ENDING FUND BALANCE BASED ON 100%BSA donations) $ 500,218 $ 416,745 $ 349,136 $ 363,698 $ 289,480 #of Operating Days(based on 3651(100%BSA donatimn 41 29 24 25 20 Key Assumptions: A State Funding based on current FY 09-10 funding formula for all five years B FY 11-12 and future years-Blacksmith Apprentice Program budgeted at 75% C FY 11-12-Includes four(5)new Secondary teachers and a third section in G7-G10;G11 will grown to 3 sections in FY 12-13;G12 will grow to 3 section in FY 13-14 D FY 11-12-Added 3 portable buildings E FY 11-12-Approximately$325K added for indirect payroll costs of services performed by Town staff F 3%increase in all other expenditures FY 11112;2%increase in all other expenditures FY 12113,then held flat. G 2% increase in Salary and Professional&Cnntracted Services each year. H Assigned fund balance reflects the portion being held for equipment/uniform replacement as well as FF&E and technology equip. 33 Financial Structure Summary of Significant Accounting Policies Repordng Entity Westlake Academy, a blended component unit of the Town of Westlake, is a Texas non-profit Corporation under Chapter 12, Subchapter D of the Education Code to provide education. The Board of Trustees consists of five 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 Government Accounting Standards Board(the "GASB") and other authoritative sources identified in Statement on Auditing Standards No. 69 of the American Institute of Certified Public Accountants; and it complies with the requirements of the appropriate version of the Texas Education Agency (TEA) Financial Accountability System Resource Guide(the "Resource Guide") and the requirements of contracts and grants of agencies from which it receives funds. The Board 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." The Academy's basic financial statements include a separate governmental entity that is controlled by or dependent on the Academy. The determination to include separate governmental entities is based on the criteria of GASB Statement No. 24, "The Financial Reporting Entity" as amended by GASB Statement No. 39, "Determining Whether Certain Organizations are Component Units." GASB defines the reporting entity as the primary government and those component units for which the primary government is financially accountable. To be financially accountable, a voting majority of the component unit's ruling body must be appointed by the primary government, and either (a) the primary government just be able to impose its will, or (b) the primary government may potentially benefit financially or be financially responsible for the component unit. The Westlake Academy Foundation (the "Foundation") is a 501(c)3 nonprofit organization which was established exclusively for the purposes of supporting the Academy. This includes fundraising for and contributing raised funds to the Academy. The Foundation is discretely presented in the Westlake Academy financial statements ad reported in a separate column to emphasize that it is legally separate from the Academy. Separate audited financial statements of the Foundation are prepared annually. 34 Basis ofAccounting Governmental fund financial statements are reported using the current financial resource measurement focus and the modifred accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred. Revenues from local sources consist primarily from the Westlake Academy Foundation. 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 earned to the extent of the expenditures made under the provision of the grant. Accordingly, grant fiends are not requested until the expense has been incurred. The Academy reports the following funds: Governmental Fund Types are those through which most governmental functions of the Academy are financed. The acquisition, use and balances of the Academy's expendable financial resources, and the related liabilities are accounted for through the Governmental Fund Types. Following are the Academy's Governmental Fund Types: General Fund The General Fund is a governmental fund with budgetary control which is used to show transactions resulting from operations of on-going organizations and activities from a variety of revenue sources for which fund balance is controlled by and retained for the use of the Academy. This is a budgeted fund, and any fund balances are considered resources available for current operations. fund balances may be appropriated by the Board of Trustees to implement its responsibilities. Fund 199—General Fund This classification must be used for funds in which the local governing board designates. The local governing board has wide discretion in their use as provide by law. This fund usually includes transactions as a result of revenues from local sources and Foundation School Program Sources. Any locally defined code that is used at the local option are to be converted to Fund 199 for PEIMS reporting. 35 Fund 198—Athletic Activities This locally defined fund code is used to account for expenditures for athletics that normally involve competition between schools (and frequently involve offsetting gate receipts or fees such as football, baseball, volleyball, track, tennis and golf). This fund is converted to Fund 199 for PEIMS reporting. Fund 197—Transportation/Parking This locally defined fund code is used to account for revenues and expenditures related to transportation (field trips and co-curricular/extracurricular) for students as well as to collect parking fees and remit them to the Town of Westlake as a reimbursement for the expense of the new parking lot built in the summer of 2010 (funded by the Town). This fund is converted to Fund 199 for PEIMS reporting. Special Revenue Funds The Special Revenue Funds are the funds that account for local, state and federally financed programs or expenditures legally restricted for specified purposes or where unused balances are returned to the grantor at the close of a specified project period. Fund 224 IDEA-B Formula (Federally Funded) Fund is used, on a project basis, for funds granted to operate educational programs for children with disabilities. Fund 225 IDEA-B Preschool(Federally Funded) Fund is used, on a project basis, for funds granted to operate educational programs for preschool children with disabilities. Fund 266 ARRA, Title XIV, State Fiscal Stabilization Fund (Stimulus Funds) Fund is used to account, on a project basis, for funds granted to improve basic programs authorized by the Elementary and Secondary Education Act of 1965, as amended by the No Child Left Behind Act of 2001; the Individuals with Disabilities Education Act(IDEA); the Adult and Family Literacy Act; the Carl D. Perkins and Technical Education Act of 2006, or for the modernization, renovation, and repairs that are consistent with a recognized green building rating system. (84.394) This grant is funded by the American Recovery and Reinvestment Act(ARRA) of 2009, Title XIV. Fund 397 Advanced Placement/IB Awards (State Funded) Fund is used to account, on a project basis, for funds awarded under the Texas Advanced Placement Award Incentive Program, Chapter 28, Subchapter C, Texas Education Code. The purpose of this incentive program is to recognize and reward those students, teachers, and schools that demonstrate success in achieving the state's educational goals. 36 Fund 411 Technology Allotment (State Funded) Fund is to be used to account, on a project basis, for funds awarded to purchase technological software or equipment that contributes to student learning, or to pay for training for educational personnel involved in the use of these materials. Fund 461 Campus Activity Funds (Locally Funded) Fund is used to account for transactions related to a principal's activity fund if the monies generated are not subject to recall by the Academy's Board of Trustees into the General Fund, i.e. vending machine revenues Fund 481 Hudson Foundation Grant(Locally Funded) This locally defined fund is used to account for grants received from the Hudson Foundation. Their focus for Education is partnering with organizations that use innovative methods to reduce the dropout rate, increase academic performance and help young adults make better choices and prepare for the future. This includes all areas of formal education, with a primary focus on kindergarten through high school. The funds received in FY 09-10 will be used to advance the Academy's professional development efforts as well as the completion of a Master Facilities Plan to ensure effective and efficient use of the physical space. Fund 482 Fund 100 (Locally Funded) This locally defined fund is used to account for grants awarded to the Academy by the Westlake Academy Foundation to be used to develop, retain, and recruit "legacy teachers"; educators who make a positive and lasting difference in the lives of students they teach. The Academy reports the following proprietary fund: Fiduciary Fund The agency f and account for resources held in a custodial capacity by the Academy, and consists of funds that are the property of students or others. These are not budgeted funds. Basis ofBudeetin Legal requirements for charter budgets are formulated by the state and TEA. A Board typically adopts an "Appropriated budget" on a basis consistent with GAAP for the general fund, debt service fund and child nutrition program (which is included in special revenue funds). The Academy does not maintain a debt service nor child nutrition program; therefore, only the General Fund is required to be adopted. At a minimum, the Academy is required to present the original and the final amended budgets for revenues and expenditures compared to actual revenues and expenditures for the General Fund. 37 Budgets are prepared on the same basis of accounting as that used in the financial statements. The basis of budgeting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements, Governmental fund types, the general fund and the special revenue funds, are budgeted using the current financial resources measurement focus and the modified accrual basis of accounting. The proprietary fund, our fiduciary fund, the agency fund, is not a budgeted fund. 38 Function Descriptions _ J 10 Instruction and Instructional Related Services 11 Instruction This function is used for activities that deal directly with the interaction between teachers and students. This function includes expenditures for direct classroom instruction and other activities that deliver, enhance, or direct the delivery of learning situations to students. Expenditures for the delivery of instruction in regular program basic skills, bilingual and ESL programs, compensatory, remedial or tutorial programs, gifted and talented education programs,and vocational education programs are classified in function 11. For example, function 11 includes classroom teachers, teacher assistants, and graders, but does not include curriculum development(function 13)or principals(function 23). 12 Instructional Resources and Media Services This function is used for expenditures that are directly and exclusively used for resource centers, establishing and maintaining libraries, and other major facilities dealing with educational resources and media. For example, function 12 includes librarians, but does not include textbooks(function 11)or reference books in the classroom(also function 11). 13 Curriculum Development and Instructional Staff Development This function is used for expenditures that are directly and exclusively used to aid instructional staff in planning, developing, and evaluating the process of providing learning experiences for students. This function also includes expenditures related to research and development activities that investigate, experiment and/or follow-through with the development of new or modified instructional methods, techniques, procedures, service,etc.For example,this function includes staff that research and develop innovative, new, or modified instruction and staff who prepare in-service training for instructional staff,but does not include salaries of instructional staff when attending in-service training (function 11 or 12). 20 Instructional and School Leadership 21 Instructional Leadership This function encompasses those district-wide activities which have as their purpose managing, directing, and supervising the general and specific instructional programs and activities.For example, function 21 includes instructional supervisors but does not include principals(function 23). 23 School Leadership This function includes expenses for directing, managing, and supervising a school. It includes salaries and supplies for the principal,assistant principal,and other administrative and clerical staff, including attendance clerks. 39 30 Support Services—Student 31 Guidance,Counseling,and Evaluation Service This function includes expenses for testing and assessing students'abilities, aptitudes, and interests with respect to career and educational goals and opportunities. It includes psychological services,testing,and counseling. 32 Social Work Services This function includes expenditures which directly and exclusively promote and improve school attendance. Examples include social workers, non-instructional home visitors, home visitor aides,and truant officers. 33 Health Services This function embraces the area of responsibility providing health services which are not a part of direct instruction. It includes medical,dental,and nursing services. 34 Student Transportation This function includes the cost of providing management and operational services for transporting students to and from school. Function 34 includes transportation supervisors and bus drivers,but does not include field trips(function 11)or student organization trips (function 36). 35 Food Services This function includes the management of the food service program at the schools and the serving of meals, lunches, or snacks in connection with school activities. Function 35 includes cooks and food purchases,but does not include concession stands(function 36). 36 Co-curricular/Extracurricular Activities This function incorporates those activities which are student and curricular related, but which are not necessary to the regular instructional services. Examples of co-curricular activities are scholastic competition,speech,debate,and band.Examples of extracurricular activities are football,baseball,etc. and the related activities(drill team,cheerleading)that exist because of athletics. Function 36 includes athletic salary supplements paid exclusively for coaching, directing, or sponsoring extracurricular athletics, but does not include salaries for teaching physical education(function 11). 40 Support Services-Administrative 41 General Administration This function includes expenses incurred for the overall administrative responsibilities of the District. It includes expenses for the school board, superintendent's office, personnel services, and financial services. 40 50 Support Services -Non Student Based 51 Plant Maintenance This function deals with expenditures made to keep buildings, grounds, and equipment safe for use and in efficient working condition. This function also includes expenditures associated with warehousing services. Examples include janitors, facility insurance premiums,utilities, and warehouse personnel. 52 Security and Monitoring Services This function is used for expenditures that are for activities to keep student and staff surroundings safe, whether in transit to or from school, on a campus, or participating in school-sponsored events at another location. 53 Data Processing Services This function is for non-instructional data processing services which include computer facility management, computer processing, systems development, analysis, and design. Personal computers that are stand alone are to be charged to the appropriate function. Peripherals including terminals and printers are also to be charged to the appropriate function. 60 Ancillary Services 61 Community Services This function encompasses all other activities of the school district,which are designed to provide a service or benefit to the community as a whole or a portion of the community. Examples would include recreation programs,natatorium, and parenting programs. 70 Debt Service 71 Debt Service This function includes expenditures for bond and lease purchase principal,and all types of interest paid. 41 Account Coding Function Code Function ii • Description 11 Instruction&Related 12 Instructional Resources &Media Sources (Library) 13 Curriculum Development&Inst. Staff Development 21 Instructional Leadership 23 School Leadership(Principal) 31 Guidance, Counseling&Evaluation Services 32 Social Work Services 33 Health Services 34 Student(Pupil) Transportation 35 Food Services 36 Cocurricularlextracurricular activities 41 General Administration(Superintendent/Board) 51 Plant Maintenance and Operations 52 Security and Monitoring Services 53 Data Processing Services 61 Community Services 71 Debt Service Object Object ii Description 61XX Payroll and Payroll Related 62XX Professional & Contracted Services 63XX Supplies and Materials 64XX Other Operating Costs 65XX Debt Service 42 WESTLAKE ACADEMY COMBINED STATEMENT OF REVENUES,EXPENDITURE'S AND CHANGES IN FUND BALANCE ALL GOVERNMENTAL FUNDS For the Year Ending August 31,2011 Adopted Estimated Proposed Actual Budget Budget Budget FY 08/09 FY 09/10 FY 09/10 FY 10/11 REVENUES Local Revenues $ 538,992 $ 555,464 $ 678,919 $ 585,381 Federal Program Revenues 56,134 119,976 198,427 143,029 State Program Revenues 3,163,129 3,637,109 3,665,938 3,964,371 Total Revenues $ 3,758,255 $ 4,312,549 $ 4,543,285 $ 4,692,781 EXPENDITURES(BY FUNCTION) 11 -Instructional 2,120,372 2,452,007 2,617,152 2,595,282 12 Resources&Media 62,513 91,303 89,689 93,256 13 Staff Development 36,973 67,405 119,989 136,250 21 Instructional Leadership 11,660 92,034 94,189 133,415 23 School Leadership 179,554 210,441 253,382 298,877 31 -Guidance&Counseling 163,575 153,340 156,431 164,757 33 -Health Services 58,845 53,813 53,561 54,529 35 Food Services 15,448 9,018 8,716 9,700 36 CoCurricular/Extracurricular Activities 111,738 108,220 93,252 114,098 41 Administrative 527,000 272,714 303,049 279,300 51 -Maintenance&Operations 279,485 300,156 300,048 546,560 53 -Data Processing 88,720 140,404 167,128 158,851 61 -Community Services 66,822 64,858 64,946 64,949 71 -Debt Service 82,991 42,000 41,496 - Total Expenditures 3,805,696 4,057,713 4,363,029 4,649,822 Expenditures (47,441) 254,836 180,255 42,959 OTHER FINANCING SOURCES(USES) 79- Other Resources 117,640 - - 86,432 89- Other Uses (200,000) (100,000) (100,000) (99,272) Total Other Financing Sources(Uses) (82,360) (100,000) (100,000) (12,840) NET CHANGES IN FUND BALANCE (129,801) 154,836 80,255 30,119 FUND BALANCE,BEGINNING 634,454 504,653 504,653 584,908 FUND BALANCE,ENDING 504,653 659,489 584,908 615,027 Assigned-Uniform/Equipment Replacement 7,884 14,838 Assigned-Hudson Foundation Grants 62,000 Assigned-Athletics - Assigned-Technology/FF&E Replacement 100,000 100,000 FUND BALANCE,ASSIGNED $ 504,653 $ 559,489 $ 515,024 $ 500,190 43 WESTLAKE ACADEMY SCHEDULE OF REVENUES AND EXPENDITURES BY OBECT CODE ALL GOVERNMENTAL FUNDS For the Year Ending August 31,2011 All Governmental Funds-Total Revenues Adopted Estimated Proposed Actual Budget Budget Budget FY 08109 FY 09/10 FY 09/10 FY 10/11 General Fund $ 3,661,645 $ 4,172,869 $ 4,211,154 $ 4,530,013 Special Revenue Funds 96,610 139,680 332,131 162,768 Total Governmental Funds $ 3,758,255 $ 4,312,549 $ 4,543,285 $ 4,692,781 All Governmental Funds-Total Expenditures Adopted Estimated Proposed Actual Budget Budget Budget FY 08/09 FY 09/10 FY 09/10 FY 10/11 General Fund $ 3,709,086 $ 3,918,033 $ 4,092,898 $ 4,425,054 Special Revenue Funds 96,610 139,680 270,131 224,768 Total Governmental Funds $ 3,805,696 $ 4,057,713 $ 4,363,029 $ 4,649,822 All Governmental Funds-Expenditures by Object Code Adopted Estimated Proposed Actual Budget Budget Budget FY 08/09 FY 09/10 FY 09/10 FY 10/11 61XX Payroll&Related Items $ 2,790,289 $ 3,090,775 $ 3,275,786 $ 3,396,643 62XX Contracted Services 553,162 488,190 444,608 641,745 63XX Supplies&Materials 252,376 252,105 305,659 258,287 64XX Other Operating 126,878 184,643 295,481 353,147 65XX Debt Service 82,991 42,000 41,496 - Total Expenditures $ 3,805,697 $ 4,057,713 $ 4,363,029 $ 4,649,822 44 Westlake Academy All Fund Revenues and Expenditures Fiscal Year 2010/2011 Proposed Revenues State Revenue 84% ■ Local Revenues 13% ■ Federal Revenues 3% Proposed Expenditures 13 _Staff Development 1% ■ 12 -Resources &Media ■ Other Operating Costs 2% 5% 0 11 -Instructional ■ 23 -School Leadership 56% 6% ■ 31 -Guidance& Caunseling4% ■ 33-Health Services Ng- s �i a 1% cr � ■ 35-Foad Services 71 -Debt Service 36 -CoCurricular/ 1°' Extracurricular Activities 3% 61 -CumrnunityServices 51 -Maintenance& ■ 41 -Administrative 2% '- 53 -Data Processing Operations 5°k 3% 12% 45 WESTLAKE ACADEMY COMBINED STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE GENERAL FUND For the Year Ending August 31,2 011 Adopted Estimated Proposed Actual Budget Budget Budget FY 08/09 FY 09/10 FY 09/10 FY 10/11 REVENUES Local Revenues $ 538,992 $ 555,464 $ 564,919 $ 585,381 State Program Revenues 3,122,653 3,617,405 3,646,234 3,944,632 Total Revenues $ 3,661,645 $ 4,172,869 $ 4,211,154 $ 4,530,013 EXPENDITURES(BY FUNCTION) 11 Instructional $ 2,028,112 $ 2,318,077 $ 2,404,771 $ 2,438,264 12 Resources&Media 62,513 91,303 89,689 93,256 13 Staff Development 32,623 61,655 62,239 68,500 21 Instructional Leadership 11,660 92,034 94,189 133,415 23 _School Leadership 179,554 210,441 253,382 298,877 31 Guidance&Counseling 163,575 153,340 156,431 164,757 33 -Health Services 58,845 53,813 53,561 54,529 35 -Food Services 15,448 9,018 8,716 9,700 36 Co Curricular/Extracurricular Activities 111,738 108,220 93,252 114,098 41 Administrative 527,000 272,714 303,049 279,300 51 -Maintenance&Operations 279,485 300,156 300,048 546,560 53 -Data Processing 88,720 140,404 167,128 158,851 61 Community Services 66,822 64,858 64,946 64,949 71 Debt Service 82,991 42,000 41,496 - Total Expenditures 3,709,086 3,918,033 4,092,898 4,425,054 Expenditures $ (47,441) $ 254,836 $ 118,255 $ 104,959 OTHER FINANCING SOURCES(USES) 79-Other Resources 117,640 - - 86,432 89-Other Uses {200,000) (100,000) (100,000) (99,272) Total Other Financing Sources(Uses) (82,360) (100,000) (100,000) (12,840) NET CHANGES IN FUND BALANCE (129,801) 154,836 18,255 92,119 FUND BALANCE,BEGINNING 634,454 504,653 504,653 522,908 FUND BALANCE,ENDING 504,653 659,489 522,908 615,027 Assigned-Uniforms/Equipment Replacement 2,332 11,846 7,884 14,838 Assigned-Athletics - 3,252 - - Assigned-Technology/FF&E Replacement - 127,822 - 100,000 FUND BALANCE,UNASSIGNED $ 502,321 $ 519,821 $ 515,024 $ 500,190 46 WESTLAKE ACADEMY COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE GENERALFUND For the Year Ending August 31,2011 Proposed FY 10/11 197 198 199 Total Transportation/ Athletic General General Parking Fund Activities Fund Fund FY 10/11 FY 10/11 FY 10/11 FY 10/11 REVENUES Local Revenues $ 32,840 $ 51,953 $ 500,588 $ 585,381 State Program Revenues - - 3,944,632 3,944,632 Total Revenues 32,840 51,953 4,445,220 4,530,013 EXPENDITURES(BY FUNCTION) 11 Instructional 10,000 - 2,428,264 2,438,264 12 -Resources&Media - 93,256 93,256 13 Staff Development - 68,500 68,500 21 -Instructional Leadership - 133,415 133,415 23 School Leadership - 298,877 298,877 31 Guidance&Counseling - 164,757 164,757 33 -Health Services - 54,529 54,529 35 Food Services - - 9,700 9,700 36 -CoCurricular/Extracurricular Activities 10,000 38,000 66,098 114,098 41 -Administrative - - 279,300 279,300 51 -Maintenance&Operations - 546,560 546,560 53 Data Processing - 158,851 158,851 61 -Community Services - 64,949 64,949 71 Debt Service - - - - Total Expenditures 20,000 38,000 4,367,054 4,425,054 Excess(Deficiency)of Revenues Over(Under) 12,840 13,953 78,166 104,959 OTHER FINANCING SOURCES(USES) 79 -Other Resources - - 86,432 86,432 89 -Other Uses (12,840) (7,000) (79,432) (99,272) Total Other Financing Sources(Uses) (12,840) (7,040) 7,000 (12,840) NET CHANGES IN FUND BALANCE 6,953 85,166 92,119 FUND BALANCE,BEGINNING 7,884 515,024 522,908 FUND BALANCE, ENDING 14,838 600,190 615,027 Assigned-Uniform/Equipment Replacement 14,838 - 14,838 Assigned-Athletics - - - Assigned-Technology/FF&E Replacement 100,000 100,000 FUND BALANCE,UNASSIGNED $ $ $ 500,190 $ 500,190 47 WESTLAKE ACADEMY STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE TRANSPORTATION/PARKING FUND- 197 For the Year Ending August 31,2011 Proposed Budget FY 10/11 REVENUES Local Revenues $ 32,840 State Program Revenues - Total Revenues 32,840 EXPENDITURES(BY FUNCTION) 11 -Instructional 10,000 12 _Resources&Media - 13 Staff Development 21 -Instructional Leadership 23 -School Leadership 31 -Guidance&Counseling 33 Health Services 35 Food Services - 36 _CoCurricular/Extracurricular Activities 10,000 41 Administrative - 51 -Maintenance&Operations 53 Data Processing 61 Community Services 71 -Debt Service - Total Expenditures 20,000 Excess(Deficiency)of Revenues Over(Under)Expenditures 12,840 OTHER FINANCING SOURCES(USES) 79-Other Resources - 89-Other Uses (12,840) Total Other Financing Sources(Uses) (12,840) NET CHANGES IN FUND BALANCE FUND BALANCE,BEGINNING FUND BALANCE, ENDING Assigned-Parking Assigned-Transportation FUND BALANCE,UNASSIGNED $ 48 WESTLAKE ACADEMY STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE ATHLETIC ACTIVITIES FUND-198 For the Year Ending August 31,2011 Estimated Proposed Variance Audited Budget Budget Proposed to FY 08/09 FY 09/10 FY 10/11 Estimated REVENUES Local Revenues $ 32,743 $ 44,953 $ 51,953 $ 7,000 State Program Revenues - _ _ Total Revenues 32,743 44,953 51,953 7,000 EXPENDITURES(BY FUNCTION) 11 -instructional - _ _ 12 -Resources&Media 13 -Staff Development 21 Instructional Leadership 23 -School Leadership 31 Guidance&Counseling _ 33 -Health Services 35 _Food Services - _ _ 36 CoCurricular/Extracurricular Activities 30,411 39,401 38,000 (1,401) 41 -Administrative - - 51 Maintenance&Operations - _ 53 -Data Processing 61 Community Services _ 71 -Debt Service _ _ _ Total Expenditures 30,411 39,401 38,000 (1,401) Excess(Deficiency)of Revenues Over(Under)Expenditures 2,332 5,553 13,953 8,401 OTHER FINANCING SOURCES(USES) 79-Other Resources - _ _ _ 89-Other Uses (7,000) (7,000) Total Other Financing Sources(Uses) - - (7,000) (7,000) NET CHANGES IN FUND BALANCE 2,332 5,553 6,953 1,401 FUND BALANCE,BEGINNING - 2,332 7,884 5,553 FUND BALANCE,ENDING 2,332 7,884 14,838 6,953 Assigned-Uniform/Equipment Replacement 2,332 7,884 14,838 6,954 Assigned-Athletics - - _ _ FUND BALANCE,UNASSIGNED $ - $ $ $ 49 WESTLAKE ACADEMY STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE GENERAL FUND- 199 For the Year Ending August 31,2011 Variance Est Adopted Estimated Proposed FY 09-10 Audited Budget Budget Budget Proposed FY 08109 FY 09/10 FY 09/10 FY 10/11 FY 10/11 REVENUES Local Revenues $ 506,249 $ 507,458 $ 519,966 $ 500,588 $ (19,379) State Program Revenues 3,122,653 3,617,405 3,646,234 3,944,632 298,397 Total Revenues $ 3,628,902 $ 4,124,863 $ 4,166,201 $ 4,445,220 $ 279,019 EXPENDITURES(BY FUNCTION) 11 Instructional $ 2,028,112 $ 2,318,077 $ 2,404,771 $ 2,428,264 $ 23,493 12 -Resources&Media 62,513 91,303 89,689 93,256 3,567 13 Staff Development 32,623 61,655 62,239 68,500 6,261 21 -Instructional Leadership 11,660 92,034 94,189 133,415 39,226 23 School Leadership 179,554 210,441 253,382 298,877 45,495 31 Guidance&Counseling 163,575 153,340 156,431 164,757 8,325 33 _Health Services 58,845 53,813 53,561 54,529 968 35 -Food Services 15,448 9,018 8,716 9,700 983 36 -CoCurricular/Extracurricular Activities 81,327 54,319 53,851 66,098 12,246 41 Administrative 527,000 272,714 303,049 279,300 (23,749) 51 -Maintenance&Operations 279,485 300,156 300,048 546,560 246,512 53 Data Processing 88,720 140,404 167,128 158,851 (8,277) 61 Community Services 66,822 64,858 64,946 64,949 3 71 -Debt Service 82,991 42,000 41,496 - (41,496) Total Expenditures 3,678,675 3,864,132 4,053,498 4,367,054 313,556 Excess(Deficiency)of Revenues Over(Under) Expenditures $ (49,773) $ 260,731 $ 112,703 $ 78,166 $ (34,537) OTHER FINANCING SOURCES(USES) 79-Other Resources 117,640 - - 86,432 86,432 89-Other Uses (200,000) (100,000) (100,000) (79,432) 20,568 Total Other Financing Sources(Uses) (82,360) (100,000) (100,000) 7,000 107,000 NET CHANGES IN FUND BALANCE (132,133) 160,731 12,703 85,166 72,463 FUND BALANCE,BEGINNING 634,454 502,321 502,321 515,024 12,703 FUND BALANCE,ENDING 502,321 663,052 515,024 600,190 85,166 Assigned-Technology/FF&E Replacement - 127,822 - 100,000 100,000 FUND BALANCE,UNASSIGNED $ 502,321 $ 516,569 $ 515,024 $ 500,190 $ (14,834) 50 WESTLAKE ACADEMY SCHEDULE OF EXPENDITURES BY FUNCTION&OBJECT CODE GENERAL FUND- 199 For the Year Ending August 31,2011 Variance Est FY 09/10 to Audited Adopted Budget Estimated Budget Proposed Budget Proposed FY 08/09 FY 09/10 FY 09/10 FY 10/11 FY 10/11 EXPENDITURES 11 Instructional 6100 Payroll $ 1,812,274 $ 2,088,582 $ 2,147,760 $ 2,224,064 $ 76,304 6200 Contracted Services 41,131 48,300 43,023 48,450 5,427 6300 Supplies&Materials 169,244 160,895 181,923 120,500 (61,423) 6400 Other Operating 5,462 20,300 32,065 35,250 3,185 Total Instructional 2,028,112 2,318,077 2,404,771 2,428,264 23,493 12 Resource&Media 6100 Payroll 56,032 69,379 71,306 79,006 7,700 6200 Contracted Services 600 500 4,131 3,750 (381) 6300 Supplies&Materials 5,881 18,100 14,252 8,000 (6,252) 6400 Other Operating - 3,324 - 2,500 2,500 Total Resource&Media 62,513 91,303 89,689 93,256 3,567 13 Staff Development 6200 Contracted Services 3,250 - 540 S00 (40) 6300 Supplies&Materials - - 553 500 (53) 6400 Other Operating 29,373 61,655 61,146 67,500 6,354 Total Staff Development 32,623 61,655 62,239 68,500 6,261 21 Instructional Leadership 6100 Payroll 11,660 92,034 94,081 133,415 39,334 6400 Other Operating - - 108 - (108) Total Instructional Leadership 11,660 92,034 94,189 133,415 39,226 23 School Leadership 6100 Payroll 165,714 188,451 221,397 269,127 47,730 6200 Contracted Services 13,004 20,500 29,650 26,750 (2,900) 6300 Supplies&Materials 836 1,490 1,057 1,500 443 6400 Other Operating - - 1,278 1,500 222 Total School Leadership 179,554 210,441 253,382 298,877 45,495 31 Guidance&Counseling 6100 Payroll 132,615 119,280 121,624 119,257 (2,368) 6200 Contracted Services 30,238 32,100 34,224 42,500 8,276 6300 Supplies&Materials 722 1,645 583 2,500 1,917 6400 Other Operating - 315 - 500 500 Total Guidance&Counseling 163,575 153,340 156,431 164,757 8,325 33 Health Services 6100 Payroll 58,314 51,458 51,835 52,179 344 6200 Contracted Services - 380 65 250 185 6300 Supplies&Materials 531 1,920 1,661 2,000 339 6400 Other Operating - 55 - 100 100 Total Health Services 58,845 53,813 53,561 54,529 968 35 Food Services 6100 Payroll 10,739 8,168 8,649 9,200 550 6300 Supplies&Materials 4,459 600 67 500 433 6400 Other Operating 250 250 - - - Total Food Services 15,448 9,018 8,716 9,700 983 51 WESTLAKE ACADEMY SCHEDULE OF EXPENDITURES BY FUNCTION&OBJECT CODE GENERAL FUND-199 For the Year Ending August 31,2011 Variance Est FY 09/10 to Audited Adopted Budget Estimated Budget Proposed Budget Proposed FY 08/09 FY 09/10 FY 09/10 FY 10/11 FY 10/11 36 CoCurricular Activities 6100 Payroll 44,588 42,665 41,689 44,272 2,583 6200 Contracted Services 31,180 1,680 3,430 10,750 7,320 6300 Supplies&Materials 724 410 408 500 92 6400 Other Operating 4,834 9,564 8,324 10,576 2,252 Total CoCurricular Activities 81,326 54,319 53,851 66,098 12,246 41 Administrative 6100 Payroll 308,395 121,497 128,397 114,875 (13,522) 6200 Contracted Services 167,062 109,050 87,982 105,000 17,018 6300 Supplies&Materials 9,413 11,150 20,723 10,500 (10,223) 6400 Other Operating 42,130 31,017 65,947 48,925 (17,022) Total Administrative 527,000 272,714 303,049 279,300 (23,749) 51 Maintenance&Operations 6100 Payroll 109 12,253 12,135 13,801 1,666 6200 Contracted Services 237,528 239,140 213,650 374,995 161,345 6300 Supplies&Materials 7,145 11,000 11,000 48,218 37,218 6400 Other Operating 34,703 37,763 63,263 109,546 46,283 :al Maintenance&Operations 279,485 300,156 300,048 546,560 246,512 53 Data Processing 6100 Payroll 67,076 112,174 113,538 129,471 15,933 6200 Contracted Services 18,885 16,800 16,800 16,800 - 6300 Supplies&Materials 2,760 10,580 35,440 10,580 (24,860) 6400 Other Operating - 850 1,350 2,000 650 Total Data Processing 88,720 140,404 167,128 158,851 (8,277) 61 Community Services 6100 Payroll 66,822 64,858 64,946 64,949 3 Total Community Service 66,822 64,858 64,946 64,949 3 71 Debt Service 6500 Debt Service 82,991 42,000 41,496 - (41,496) Total Debt Service 82,991 42,000 41,496 - (41,496) Total Expenditure $ 3,678,675 $ 3,864,132 $ 4,053,498 $ 4,367,054 $ 313,556 Audited Adopted Budget Estimated Budget Proposed Budget Percentage of FY 08/09 FY 09/10 FY 09/10 FY 10/11 Budget EXPENDITURES BY OBJECT CODE 61XX-Payroll&Related Items $ 2,734,336 $ 2,970,799 $ 3,077,359 $ 3,253,614 75% 62XX-Contracted Services 542,878 468,450 433,495 629,745 14% 63XX-Supplies&Materials 201,717 217,790 267,667 205,298 5% 64XX-Other Operating 116,752 165,093 233,481 278,397 6% 65XX-Debt Service 82,991 42,000 41,496 - 0% Total Expenditures 3,678,675 3,864,132 5 4,053,498 4,367,054 100% 52 Westlake Academy General Fund Revenues and Expenditures Fiscal Year 2010/2011 Proposed Revenues State Revenues 87% Local Revenues 13% Payroll atled Proposed Expenditures Items 77% '----,Contracted Services Debervice 14% t S Other 1% Operating Supplies& Costs Materials 5% 5% 53 Westlake Academy General Fund Expenditures by Function Fiscal Year 2010/2011 F" 11 "qqql F Instructional Resources Media 53 Data Processing Wt 51 23 Maintenance chool Leadership Guidance&Operations 6% 41 Counseling Administrative iii 11 -Instructional ®12 -Resources&Media IJ 13 -Staff Development ®21 -Instructional Leadership ®23 -School Leadership IW 31 -Guidance&Counseling ©33 -Health Services 935 -Food Services -; 35 -CoCurricular/Extracurricular Activities 941 -Administrative .J 51 -Maintenance&Operations W53 Data Processing _#51 -Community Services �J 71 -Debt Service 54 Westlake Academy General Fund Expenditures by Object Code Fiscal Year 2010/2011 63XX 64XX Supplies&Materials Other 62XX 5% Operating Contracted 7% Services 14% 65XX De fat Service 0% 61XX-Payroll& Related Items 74% 55 Westlake Academy General Fund - Revenue and Expenditure Comparison Fiscal Year 03/04 through 10/11 Fiscal Year Revenues inc % Expenditures inc % N etChange FY 03/04 actual $1,094,608 $1,068,857 $25,751 FY 04/05 actual $1,831,898 67% $1,612,198 51% $219,700 FY 05/06 actual $2,407,526 31% $2,211,897 37% $195,629 FY 06/07 actual $2,879,531 20% $2,615,411 18°% $264,120 FY 07/08 actual $3,240,449 13% $3,373,953 29% -$133,504 FY 08/09 actual $3,661,645 13% $3,709,086 10% -$47,441 FY 09/10 estimated $4,211,154 15°% $4,092,898 10% $118,255 FY 10/11 proposed $4,530,013 8% $4,425,054 8% $104,959 $23,856,824 $23,109,355 $747,469 $5,000,000 $4,500,000 $4,000,000 f $3,500,000 $3,000,000 $2,500,000 f $2,000,000 1 $1,500,000 $1,000,000 $500,000 FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 actual actual actual actual actual actual estimated proposed id revenues 9 Expenditures 56 WESTLAKE ACADEMY COMBINED STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE ALL SPECIAL REVENUE FUNDS For the Year Ending August 31,2011 Adopted Estimated Actual Budget Budget FY 10/11 FY 08/09 FY 09/10 FY 09/10 Proposed REVENUES Federal Program Revenues $ 40,476 $ 119,976 $ 198,427 $ 143,029 Local Program Revenues - - 114,000 - State Program Revenues 56,134 19,704 19,704 19,739 Total Revenues 96,610 139,680 332,131 162,768 EXPENDITURES(BY FUNCTION) 11 Instructional 92,260 133,930 212,381 157,018 13 Staff Development 4,350 5,750 57,750 67,750 Total Expenditures 96,610 139,680 270,131 224,768 Excess(Deficiency)of Rev Over(Under)Exp - - 62,000 (62,000) NET CHANGES IN FUND BALANCE 62,000 (62,000) FUND BALANCE,BEGINNING - 62,000 FUND BALANCE,ENDNG 62,000 - Assigned-Hudson Foundation Grant 62,000 FUND BALANCE,ENDNG(Unassigned) $ $ $ - $ 57 WESTLAKE ACADEMY COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE ALL SPECIAL REVENUE FUNDS For the Year Ending August 31,2011 Title XIV Advanced Total IDEA-8 IDEA-8 SFSF Fund Placement Hudson Special Formula Preschool (ARRA) Incentives Technology Foundation Revenue 224 225 266 397 411 481 Funds REVENUES Federal Program Revenues $ 69,097 $ 1,796 $ 72,136 $ $ $ $ 143,029 Local Program Revenues - - - - State Program Revenues - - - 5,750 13,989 - 19,739 Total Revenues 69,097 1,796 72,136 5,750 13,989 162,768 EXPENDITURES(BY FUNCTION) 11 -Instructional 69,097 1,796 72,136 - 13,989 157,018 13 -Staff Development - - - 5,750 - 62,000 67,750 Total Expenditures 69,097 1,796 72,136 5,750 13,989 62,000 224,768 Excess(Deficiency)of Rev Over(Under)Exp - - - - - (62,000) (62,000) NET CHANGES IN FUND BALANCE (62,000) (62,000) FUND BALANCE,BEGINNING 62,000 62,000 FUND BALANCE,ENDNG $ $ $ - $ $ $ $ 58 This page is intentionally blank 59 Westlake Academy Organizational FBoard of Trustees Town Manager/ Superintendent I Secondary Administrative Primary Principal Athletic Director Principal Coordinator MYP/DP Office Staff PYP Coordinator Coordiriators Secondary 7SchoolNurse rTAKS imarary Counselor/ Counselor Coordinator Secondary Teachers Dining Hall Primary Teachers Secondary Primary Special Ed. Special Ed. Special Ed, Instructional Aides Strings Program Librarian 60 Position FY 03104 FY 04105 FY 05106 FY 06/07 FY 07/08 FY 08109 FY 09110 FY 10111 Fiscal Year Actual Actual Actual Actual Actual Actual Actual Proposed Classes Served 1-6 K-7 K-8 K-9 K-10 K-11 K-12 K-12 Head of School 1.00 1.00 1.00 1.00 1.00 1.00 - - Primary Principal - - - - 1.00 1.00 1.00 1.00 Secondary Principal - - - - - 0.50 1.00 1.00 Admin Coordinator - - - - - 1.00 1.00 1.00 PYP Coordinator - 0.30 0.50 0.50 1.00 0.50 0.60 0.60 MYP Coordinator - - 0.40 0.40 0.40 0.50 0.50 1.00 DP Coordinator - - - - - 0.50 0.50 0.40 Primary-K - 2.00 2.00 2.00 2.00 2.00 2.00 100 Primary 1 2.00 2.00 100 2.00 2.00 2.00 1.70 2.00 Primary 2 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Primary 3 2.00 2.00 3.00 2.00 2.60 2.00 2.00 2.00 Primary 4 2.00 1.70 2.50 2.00 2.00 2.00 2,00 2.00 Primary 5 2.00 2.00 2,00 100 2.00 2.00 2.00 3.00 Primary 6 2.00 2.00 2.00 2.00 2.00 2.00 1.80 2.00 Primary-PE 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.50 Primary -Reading Spec.l - - - - - - 0.40 1.00 Primary-Art 0.80 0.80 0.60 0.80 0.80 0.80 0.90 1.00 Primary-Music 0.80 0.40 0.80 1.00 1.00 1.00 1.00 1.00 Primary-Spanish 1.00 1.00 1.00 1.00 1.00 1.00 1.20 1.00 Primary-IT - - - - - - - 0.40 Special Education - - 1.00 100 2.00 2.00 2.00 2.00 Secondary-Art - 0.60 0.60 _ 1.00 0.80 1.00 0.85 Secondary English - - 1.00 2.00 2.00 2.00 3.00 3.00 Secondary-Humanities - 1.00 0.60 0.60 1.60 2.00 3.10 3.00 Secondary-IT - - - 0.30 0.30 0.30 030 0.20 Secondary-Math - 0.40 1.00 1.50 2.00 1.75 2.00 2.00 Secondary-Science - 0.50 1.00 1.50 2.00 2.50 3.25 3.60 Secondary-Spanish - 0.40 0.50 1.00 1.00 1.50 2.00 2.60 Secondary-PE - 0.25 0.40 1.00 1.00 1.25 0.72 1.50 Secondary-CAS - - - - 0.60 - 0.25 - Strings Staff - - - - - - 0.25 0.25 Librarian - 0.40 1 AO 1.00 1.00 1.00 1.00 1.00 Counselors - 0.50 1.00 1.00 1.50 2.00 2.00 2.00 Athletic Director - - - - - - 0.75 - Teaching Aides - 0.60 - - - 2.50 3.70 3.75 Nurse 1.00 0.50 0.50 0.50 0.50 1.00 1.00 1.00 IT - - - 0.70 0.70 0.70 1.70 1.80 Asst.to Head of School 1.00 1.00 1.00 1.00 1.00 - - - Registraar - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Office Aide - - 0.60 0.60 1.60 2.60 3.00 3.00 Lunchroom Personnel 0.25 0.40 0.40 0.40 0.40 0.40 0.40 0.40 Day Porter - - - - - - 0.60 0.60 Positions Total I 36.40 43.00 48.10 55.62 59.45 61 Westlake Academy Proposed 2010-2011 Salary Scale Classroom Teachers, Counselors, Librarians, and Nurses 'fr � W c 0 $ 45,044 1 $ 45,194 2 $ 45,544 3 $ 45,894 4 $ 46,244 5 $ 46,694 6 $ 47,144 7 $ 47,594 8 $ 48,044 9 $ 48,494 10 $ 48,994 11 $ 49,494 12 $ 49,994 13 $ 50,494 14 $ 50,994 15 $ 51,544 16 $ 52,094 17 $ 52,644 18 $ 53,194 19 $ 53,744 20 $ 54,344 21 $ 54,944 22 $ 55,544 23 $ 56,144 24 $ 56,744 25 $ 57,594 26 $ 58,444 27 $ 59,294 28 $ 60,144 29 $ 60,994 30 $ 61,844 62 T T Q a co ca N [q (6 co ? } T C) a N a N fY Vl L L Ili = lb = N = 0.3 'M T T (4 1) y M 01 m I? x ❑ `m —y lu ° y x c fY c W W W � W m ° C Q1 91 7, O M Y U N C, 0 m y' M 7, o � a a 7 ro � a s c E `m m m a `M c _ U) W U7 W ll5 c0 0 d5 v W Ili 00 LL1 L .2 O N C T O G C N C U7 OO ° C C C C U O N O O E ❑ v E E E E E = m T ° y E E E E -rn N -c 1 W O N . � LO W❑(N� g o s rn ❑o A o Lo l >m. u❑l -0 C) M W N d 0 Q 01 N o N (D N o o o o o o 0 0— ❑ ❑ ❑ ❑ ❑ ❑ o O N m U N o N co L) w i m w (D o m v o m "g v s m o. ro io V z Z co LL m 0 0 0 co U) W 2 Y n I W ! 0 T oT~o (J) 2 W J O a ❑_ M 0 � f� O M v M _ N .0 N ❑ ED C3 r { N (o N r N Lb o co C 2 ❑ cD o N N O(p 7 m y r O O M N N r V N N N N ? 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C,4 :7 :.a M.o 0 N lam° _l -- N � — O N —� N Q N o M -I' ^ N - 1 CO a N ^ �O CO N CN � Z � M:Q'.^_m 2 �.M.O h �� t y.N O+;`O' � _. _ - U N 0 A 'a °a c"v: 3 'O s. r 3 N N. 3 �.�^ °° N o o 0 o — 0 . . w IN: sy .. 7M v L — ° •o o 7 0 �.'.� o o E o t"7 r N'..O�. N N,4'7 vl w w 2 ^ Lu CO N � 2 N M1 N N Q N CP cv, w � V1: — CO u] N fn 7: l., °� 'I'] R.N N 47 u) NN CAN 1 Fiscal and Budgetary Policies I. STATEMENT OF PURPOSE The broader intent of the following Fiscal and Budgetary Policy Statements is to enable the Academy to achieve a long-term stable and positive financial condition. The watchwords of the Academy's financial management include integrity, prudent, stewardship, planning, accountability, and full disclosure. The more specific purpose is to provide guidelines to the Finance Director in planning and directing the Academy's day-to-day financial affairs and in developing recommendations to the Academy Superintendent or his designate and Academy Board of Trustees. The scope of these policies generally span, among other issues, accounting, purchasing, auditing, financial reporting,internal controls,operating budgeting,revenue management, cash and investment management, expenditure control, asset management, debt management, and planning concepts, in order to: • Present fairly and with full disclosure the financial position and results of the financial operations of the Academy in conformity with generally accepted accounting principles (GAAP),and • Determine and demonstrate compliance with finance related legal and contractual issues in accordance with provisions of the Texas Local Government Code and other pertinent legal documents and mandates. The Academy Board of Trustees will annually review and approve the Fiscal and Budgetary Policy Statements as part of the budget process. H. SUMMARY OF POLICY INTENDED OUTCOMES This policy framework mandates pursuit of the following fiscal objectives: Operating B udget: Prepare conservatively, estimate revenues, present and adopt the Academy's annual operating plan. Revenues Management: Design,maintain and administer a revenue system that will assure a reliable, equitable,diversified and sufficient revenue stream to support desired Academy services. Expenditure Control: Identify priority services, establish appropriate service levels and administer the expenditure of available resources necessary to assure fiscal stability and the effective and efficient delivery of services. Fund Balance: Maintain the fund balance of the various operating funds at levels sufficient to protect the Academy's creditworthiness as well as its financial position from emergencies. 64 Intergovernmental Relationships: Coordinate efforts with other agencies to achieve common policy objectives, share the cost of providing governmental services on an equitable basis and support favorable legislation at the State and Federal level. Grants: Seek, apply for and effectively administer Federal, State, and foundation grants-in-aid which address the Academy's current priorities and policy objectives. Fiscal M onitoring: Prepare and present regular reports that analyze, evaluate, and forecast the Academy's financial performance and economic condition. Financial C onsultants: With available resources, seek out and employ the assistance of qualified financial advisors and consultants in the management and administration of the Academy's financial functions. Accounting, Auditing,and Financial Reporting: Comply with prevailing Federal, State and local statues and regulations. Conform to generally accepted accounting principles as promulgated by the Government Accounting Standards Board (GASB), the American Institute of Certified Public Accountants(AICPA),and the Government Finance Officers Association(GFOA). Internal C ontrols: To establish and maintain an internal control structure designed to provide reasonable assurances that the Academy's assets are safeguarded and that the possibilities for material errors in the Academy's financial records are minimized. M. OPERATING BUDGET • Preparation — Budgeting is an essential element of the financial planning, control, and evaluation process. The"operating budget"is the Academy's annual financial operating plan related to educational service instructional costs. • The Academy operating budget is legally required to include the Academy's General, Debt Service, and Food Service Funds. Currently, Westlake Academy only has one fund,the General Fund,which must be legally adopted annually. The Academy budgets the Special Revenue Funds for informational purposes only. • Information to be prepared includes documentation related to Service Level Adjustments (SLAs) for increases to existing service levels or additional services, position control schedules, general and administrative cost implications, etc. will be submitted and reviewed during the budget process. • SLA's related to new position requests will include an assessment of their impact on additional internal services necessary to support these positions as it relates to General& Administrative (G&A) charges in the Academy budget(subject to funding availability) to fund these costs. • A budget preparation calendar and timetable will be established and followed in accordance with State law. 65. + Revenue E stimates f or Budgeting - In order to maintain a stable level of services, the Academy shall use a conservative, objective, and analytical approach when preparing revenue estimates.The process shall include analysis of probable economic changes and their impacts on revenues, number of students, and trends in revenues. It will also include an assessment of the State legislative environment related to public charter school funding levels. This approach should reduce the likelihood of actual revenues falling short of budget estimates during the year and should avoid mid-year service reductions. + Balanced Budget—Current operating revenues,including State"Foundation"funds,donations and grants which can be used for operations, will be sufficient to support current operating expenditures. Annually recurring revenue will not be less than annually recurring operating budget expenditures. • Proposed B udget Content a nd Process — A proposed budget shall be prepared by the Superintendent or his designate with the participation of the Academy's Leadership Team, Finance Director and Academy staff, and then submitted to the Superintendent for review. Following Superintendent review, the proposed budget will be presented to the Board for its consideration. • The proposed budget shall include five basic segments for review and evaluation: (1) personnel costs, (2) base budget for operations and maintenance costs, (3) service level adjustments for increases of existing service levels or additional services, (4) revenues, and(5)General Administrative(G&A)costs. • The proposed budget review process shall include Board of Trustees review of each of the four segments of the proposed budget and a public hearing to allow for citizen participation in the budget preparation process. • Concurrent with the Academy budget preparation,Town staff will identify and provide to the Board all direct Academy expenses contained in the Town's municipal budget. • The proposed budget process shall allow sufficient time to provide review as well as address policy and fiscal issues by the Board of Trustees. • A copy of the proposed budget shall be filed with the Town Secretary when it is submitted to the Board of Trustees as well as placed on the Academy's website. + Budget Adoption - Upon the determination and presentation of the final iteration of the proposed budget document as established by the Board of Trustees, a public hearing will be set and publicized. The Board will subsequently consider a resolution which, if adopted, such budget becomes the Academy's Annual Budget. The adopted budget will be effective for the fiscal year beginning September 1. • Budget Amendments — The Superintendent or his designate and Finance Department will monitor all financial operations. A school district must amend the official budget before exceeding a functional expenditure category, i.e., instruction, administration, etc. in the total budget.The budget team will decide whether to proceed with the budget amendment and,if so, 66 will then present the request to the Board of Trustees. If the Board decides a budget amendment is necessary, the amendment is adopted in resolution format and the necessary budgetary changes are then made. • Planning—The budget process will be coordinated so as to identify major policy issues for the Board of Trustees by integrating it into the Board's overall strategic planning process for the Academy. • Reporting - Monthly financial reports will be prepared by the Finance Department and distributed to the Superintendent or his designate. Information obtained from financial reports and other operating reports is to be used by personnel to monitor and control the budget. Summary financial reports will be presented to the Board quarterly. IV. REVENUES MANAGEMENT A. REVENUE DESIGN PARAMETERS. The Academy will strive for the following optimum characteristics in its revenue system: • Simplicity - The Academy, where possible and without sacrificing accuracy, will strive to keep the revenue system simple in order to reduce costs, achieve transparency, and increase parent and citizen understanding of Academy revenue sources. • Certainty - A thorough knowledge and understanding of revenue sources increases the reliability of the revenue system. • Administration -The benefits of a revenue source will exceed the cost of administering that revenue. Every effort will be made for the cost of administration to be reviewed annually for cost effectiveness as a part of the indirect cost and cost of service analysis. • Equity-The Academy shall make every effort to maintain equity in its revenue system: i.e. the Academy shall seek to minimize or eliminate all forms of subsidization between entities. • Adequacy, Diversification a nd S tability — To the extent practical, the Academy shall attempt to achieve a balance in its revenue system. The Academy shall also strive to maintain a balanced and diversified revenue system to protect the Academy from fluctuations in any one source due to changes in local economic conditions which adversely impact that source. B. REVENUE S OURCES. Currently, Westlake Academy receives revenue to fund its annual operating budget from the following sources: * State Education funding • State and Federal Grants • General Donations—The Academy recognizes that private donations comprise a significant part of the Westlake Academy budget. All funds received will become part of the budget and be subject to appropriation for Academy general operations. 67 • General Donations—(continued) • Westlake Academy Foundation • House of Commons • Westlake Academy Athletic Club • Local Merchants • Specific Purpose Donations—Funds donated for a specific purpose C. REVENUE MONITORING. Revenues as they are received will be regularly compared to budgeted revenues and variances will be investigated. This process will be summarized in the appropriate budget report. V. EXPENDITURE CONTROL • Appropriations — The point of budgetary control is at the function level in the General Fund and Special Revenue Funds. When budget adjustments among functions are necessary,they must be approved by the Board of Trustees. • Current Funding B asis - The Academy shall operate on a current funding basis. Expenditures shall be budgeted and controlled so as not to exceed current revenues plus the planned use of fund balance accumulated through prior year savings. (The use of fund balance shall be guided by the Fund Balance/Retained Earnings Policy Statements.) • Avoidance of Operating Deficits - The Academy shall take immediate corrective actions if at any time during the fiscal year expenditure and revenue re-estimates are such that an operating deficit (i.e., projected expenditures in excess of projected revenues) is projected at year-end. Corrective actions can include a hiring freeze,expenditure reductions,or use of Rind balance within the Fund. Use of fund balance must be recommended by the Superintendent and approved by the Board of Trustees. ❖ Expenditure deferrals into the following fiscal year, short-term loans, or use of one- time revenue sources shall be avoided to balance the budget. • Periodic Program Reviews-The Superintendent or his designate shall undertake periodic staff and third-party reviews of Academy programs for both efficiency and effectiveness. Where appropriate,privatization and contracting with other governmental agencies will be evaluated as alternative approaches to service delivery. Service delivery which is determined to be inefficient and/or ineffective shall be reduced in scope or eliminated. • General an d A dministrative (G&A)C harges — To the extent practical, an annual analysis of G&A charges will be performed and funding allocated, if available. The analysis shall involve an objective consideration of the service demands currently being met by municipal staff to support Academy operations and a determination of factors that will continue to affect and increase the time needed for the performance of these services. For example, new Academy staff requires additional support staff time to perform tasks related to insurance, payroll, etc. Where feasible, G&A costs will be charged to all funds 68 for services of indirect general overhead costs, which may include general administration, finance, facility use, personnel, technology, engineering, legal counsel, and other costs as deemed appropriate. The charges will be determined through an indirect cost allocation study following accepted practices and procedures. • Purchasing -The Academy shall make every effort to maximize any discounts offered by creditors/vendors. Staff shall also use purchasing cooperatives as well as competitive bidding in accordance with State law to attain the best possible price on goods and services. • Prompt Payment -All invoices will be paid within 30 days of receipt in accordance with the prompt payment requirements of State law. • Salary - The Academy shall strive to maintain competitive salary levels for faculty and staff. A salary survey will be conducted annually, sampling surrounding Independent School Districts and Charter Schools, to create a comparison. The Academy will strive to maintain salary levels within three percent(3%)of the median of surveyed schools. VI. FUND BALANCE • General Fund Undesignated Fund Balance - The Academy shall strive to maintain the General Fund Undesignated fund balance at 45 days of operation. • Use of Fund Balance-Fund Balance will be targeted to only be used with Board approval and can be only be used for the following: emergencies, non-recurring expenditures, such as technology/FF&E (furniture, fixtures and equipment), or major capital purchases that cannot be accommodated through current year savings. Should such use reduce the balance below the appropriate level set as the objective for that fund,recommendations will be made on how to restore it. Use of fund balance will be recommended by the Superintendent and must be approved by the Board of Trustees. VII, INTERGOVERNMENTAL RELATIONSHIPS • Inter-local Cooperation in D elivering Services - In order to promote the effective and efficient delivery of services, the Academy shall actively seek to work with other local entities in joint purchasing consortium, sharing facilities, sharing equitably the costs of service delivery,and developing joint programs to improve service to it's students. • Legislative Program - The Academy shall cooperate with other entities to actively oppose any state or federal regulation or proposal that mandates additional Academy programs or services and does not provide the funding to implement them. Conversely, as appropriate,the Academy shall support legislative initiatives that provide additional funding. VIII. GRANTS • Grant Guidelines - The Academy shall apply, and facilitate the application by others, for only those grants that are consistent with the objectives and high priority needs previously 69 identified by Academy Board of Trustees. The potential for incurring ongoing costs, to include the assumption of support for grant funded positions from local revenues, will be considered prior to applying for a grant. • Grant Review - All grant submittals shall be reviewed for their cash match requirements, their potential impact on the operating budget, and the extent to which they meet the Academy's policy objectives. if there are cash match requirements, the source of funding shall be identified prior to application. Staff will focus on one-time grants to avoid long-term implications related to additional expenditures in future years. • Grant Program Termination - The Academy shall terminate grant funded programs and associated positions when grant funds are no longer available unless alternate funding is identified and obtained. IX. FISCAL MONITORING • Financial S tatus and Performance R eports - Quarterly reports comparing expenditures and revenues to current budget, noting the status of fund balances to include dollar amounts and percentages, and outlining any remedial actions necessary to maintain the Academy's financial position shall be prepared for review by the Superintendent and the Board of Trustees. Student roster information will also be included in the quarter reports submitted to the Board of Trustees. • Compliance with Board Policy Statements - The Fiscal and Budgetary Policies will be reviewed annually by the Board of Trustees and updated, revised or refined as deemed necessary. Policy statements adopted by the Board of Trustees are guidelines, and occasionally, exceptions may be appropriate and required. However, exceptions to stated policies will be specifically identified,and the need for the exception will be documented and fully explained. X. FINANCIAL CONSULTANTS To employ the assistance of qualified financial advisors and consultants as needed in the management and administration of the Academy's financial functions. These areas include but are not limited to investments, debt administration, financial accounting systems, program evaluation, and financial impact modeling. Advisors shall be selected on a competitive basis using objective questionnaires and requests for proposals based on the scope of the work to be performed. M. ACCOUNTING AUDITING AND FINANCIAL REPORTING To comply with prevailing local, state, and federal regulations relative to accounting, auditing, and financial reporting. Accounting practices and financial reporting shall conform to generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board(GASB), the American Institute of Certified Public Accountants, (AICPA), and the Government Finance Officers Association (GFOA). The Board shall select an independent firm of certified public accountants to perform an annual audit of all operations. Required Texas Education Agency (TEA) account coding 70 will be used for all revenue and expenditure reporting. • Accounting - Currently, the Education Service Center (Region Xl) books all revenues and expenditures, and prepares bank reconciliations. Academy staff is responsible for all coding and approval of expenditures and revenues. Documentation and coding of deposits are forwarded to the Town's Finance Department for review and preparation of deposit slips. Town's Finance Director and staff are responsible for review and transfer of invoices and other documentation to the Service Center for processing as well as the physical deposit of funds. It is the responsibility of the Superintendent or his designate and Academy staff to review the monthly reports for any discrepancies and report to the Town's Finance Director for analysis and re-class of questioned bookings,if appropriate. • External Auditing-Academy will be audited annually by outside independent accountants (auditors). The auditors must be a CPA firm and must demonstrate significant experience in the field of local government auditing. They must conduct the Academy's audit in accordance with generally accepted auditing standards. The auditors' report on Academy's financial statements will be completed within a timely period of the Academy's fiscal year- end. The auditor will jointly review the management letter with the Academy Board of Trustees,if necessary. In conjunction with this review, the Finance Director shall respond in writing to the Academy Board of Trustees regarding the auditor's Management Letter, addressing the issued contained therein. The Academy will not require auditor rotation,but will circulate request for proposal for audit services on a periodic basis as deemed appropriate. • Responsibility of Auditor to Academy Board of Trustees -The auditor is retained by and is accountable directly to the Academy Board of Trustees and will have access to direct communication with the Academy Board of Trustees if the Academy Staff is unresponsive to auditor recommendations or if the auditor considers such communication necessary to fulfill its legal and professional responsibilities. • Internal F inancial R eporting - The Finance Department will prepare internal financial reports sufficient for management to plan,monitor,and control Academy's financial affairs. XII. INTERNAL CONTROLS • 'Written P rocedures - Whenever possible, written procedures will be established and maintained by the Finance Director and utilized by all Academy personnel for all functions involving purchasing, cash handling and/or accounting throughout the Academy. These procedures will embrace the general concepts of fiscal responsibility set forth in this policy statement. • Academy Staff Responsibilities - The Superintendent or his designate, in consultation with the Finance Director, will be responsible for ensuring that appropriate internal controls are followed throughout the Academy, that all directives or internal controls are implemented, and that all independent auditor internal control recommendations are addressed. Staff will develop and periodically update written internal control procedures. 71 7HII. ASSET MANAGEMENT • Investments — The Finance Director shall promptly invest all Academy funds with the depository bank in accordance with the provisions of the current Bank Depository Agreement or in any negotiable instrument authorized by the Academy Board of Trustees. The Academy Board of Trustees has formally approved a separate Investment Policy for the Academy of Westlake that meets the requirements of the Public Funds Investment Act(PFIA), Section 2256 of the Texas Local Government Code. The Academy's investment practices will be conducted in accordance with this policy. The Finance Director will issue quarterly reports on investment activity to the Academy Board of Trustees. • Cash Management-Academy's cash flow will be managed to maximize the cash available to invest. Such cash management will entail the centralization of cash collections,where feasible, including field trips, and other collection offices as appropriate. Periodic review of cash flow position will be performed to determine performance of cash management and conformance to investment policies. The underlying theme will be that idle cash will be invested with the intent to(1)safeguard assets,(2)maintain liquidity,and(3)maximize return. • Fixed Assets an d I nventory - Such assets will be reasonably safeguarded and properly accounted for and prudently insured. The fixed asset inventory will be updated regularly. • Capital Assets—Currently all capital assets of Westlake Academy are owned and purchased by the Town of Westlake. In subsequent years, additional asset purchases may be paid with Westlake Academy funds. • Capitalization C riteria — For purposes of budgeting and accounting classification, the following criteria must be capitalized: • The asset is owned by the Westlake Academy • The expected useful life of the asset must be longer than one year,or extend the life on an identifiable existing asset by more than one year • The original cost of the asset must be at least$5,000 • The asset must be tangible • On-going repairs and general maintenance are not capitalized • New Purchases—All costs associated with bringing the asset into working order will be capitalized as a part of the asset cost. This includes start up costs, engineering or consultant type fees as part of the asset cost once the decision or commitment to purchase the asset is made. The cost of land acquired should include all related costs associated with its purchase • Improvements and Replacement—Improvement will be capitalized when they extend the original life of an asset or when they make the asset more valuable than it was originally. The replacement of assets components will normally be expenses unless they are a significant nature and meet all the capitalization criteria. • Computer S ystem/Data S ecurity — The Academy shall provide security of its computer/network system and data files through physical and logical security systems that will include,but are not limited to: network user authentications,firewalls, content filtering, spam/virus protection,and redundant data backup. 72 This page is intentionally blank 73 Investment Pi ! ICY I. POLICY STATEMENT It is the policy of the Westlake Academy (the "Academy") that the administration of its funds and the investment of those funds shall be handled as its highest public trust. Investments shall be made in a manner which will provide the maximum security of principal invested through limitations and diversification while meeting the daily cash flow needs of the Academy and conforming to all applicable state and Academy statutes governing the investment of public funds. The receipt of a market rate of return will be secondary to the requirements for safety and liquidity. It is the intent of the Academy to be in complete compliance with local law and the Texas Public Funds Investment Act (the "Act", Texas Government Code 2256). The earnings from investments will be used in a manner that best serves the public trust and interests of the Academy. II. SCOPE This Investment Policy applies to all the financial assets and funds held of the Academy. Any new funds created by the Academy will be managed under the provisions of this Policy unless specifically exempted by the Academy Board of Trustees and this Policy. III. OBJECTIVES AND STRATEGY It is the policy of the Academy that all funds shall be managed and invested with four primary objectives, listed in order of their priority: safety, liquidity, diversification and yield. These objectives encompass the following. Safety of Principal Safety of principal is the foremost objective of the Academy. Investments shall be undertaken in a manner that seeks to insure the preservation of capital in the overall portfolio. The suitability of each investment decision will be made on the basis of safety. Li uidi The Academy's investment portfolio will remain sufficiently liquid to enable it to meet all operating requirements which might be reasonably anticipated. Investment decisions will be based on cash flow analysis of anticipated expenditures. Diversification Diversification is required in the portfolio's composition. Diversification of the portfolio will include diversification by maturity and market sector and will include the use of a number of broker/dealers or banks for diversification and market coverage. Competitive bidding will be used on each sale or purchase. 74 Yield The Academy's investment portfolio shall be designed with the objective of attaining a reasonable market yield,taking into account the Academy's risk constraints and cash flow needs. A reasonable market yield for the portfolio will be defined as the six month(180 day) U.S. Treasury Bill which compares to the portfolio's maximum weighted average maturity of six months. The authorized investment purchased will be of the highest credit quality and marketability supporting the objectives of safety and liquidity. Securities, when not matched to a specific liability, will be short term to provide adequate liquidity. The portfolio shall be diversified to protect against market and credit risk in any one sector. The maximum weighted average maturity of the portfolio will be no more that 180 days and the maximum stated maturity of any security will not exceed two years. The funds are combined for investment purposes but the unique needs of all the funds in the portfolio are recognized and represented. Effective cash management is recognized as essential to good fiscal management. Cash management is defined as the process of managing monies in order to ensure maximum cash availability. The Academy shall maintain a cash management program which includes timely collection of accounts receivable, prudent investment, disbursement of payments within invoice terms and the management of banking services. IV. LEGAL LIMITATIONS, RESPONSIBILITIES AND AUTHORITY Specific investment parameters for the investment of public funds in Texas are stipulated in the Public Funds Investment Act, Chapter 2256, Texas Government Code, (the "Act"). The Act is attached as Exhibit A. The Public Funds Collateral Act, Chapter 2257, Texas Government Code, specifies collateral requirements for all public funds deposits. The Collateral Act is attached as Exhibit B. The Interlocal Cooperation Act, Chapter 791, Texas Government Code, authorizes local governments in Texas to participate in a Texas investment pool established thereunder. V. DELEGATION OF INVESTMENT AUTHORITY The Finance Director of the Town of Westlake, acting on behalf of the Board of Trustees, is designated as the Investment Officer of the Academy and is responsible for all investment management decisions and activities. The Board of Trustees is responsible for considering the quality and capability of staff, investment advisors, and consultants involved in investment management and procedures. All participants in the investment process shall seek to act responsibly as custodians of the public trust. The Investment Officer shall develop and maintain written administrative procedures for the operation of the investment program which are consistent with this Investment Policy. Procedures will include safekeeping, wire transfers, banking services contracts, and other investment related activities. 75 The Investment Officer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials and staff. The Investment Officer shall designate a staff person as a liaison/deputy in the event circumstances require timely action and the Investment Officer is not available. No officer or designee may engage in an investment transaction except as provided under the terms of this Policy and the procedures established by the Investment Officer and approved by the Superintendent. VI. PRUDENCE The standard of prudence to be used in the investment function shall be the "prudent person" standard and shall be applied in the context of managing the overall portfolio. This standard states: "Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the expected income to be derived." _Limitation of Personal Liability The Investment Officer and those delegated investment authority, when acting in accordance with the written procedures and this Policy and in accord with the Prudent Person Rule, shall be relieved of personal liability in the management of the portfolio provided that deviations from expectations for a specific security's credit risk or market price change are reported in a timely manner and that appropriate action is taken to control adverse market effects.. VII. INTERNAL CONTROLS The Investment Officer shall establish a system of written internal controls which will be reviewed annually with the independent auditor of the Academy. The controls shall be designed to prevent loss of public funds due to fraud, employee error, misrepresentation by third parties, or imprudent actions by employees of the Academy. VIII. AUTHORIZED INVESTMENTS Acceptable investments under this policy shall be limited to the instruments listed below. The choice of high-grade government investments and high-grade, money market instruments are designed to assure the marketability of those investments should liquidity needs arise. A. Obligations of the United States Government, its agencies and instrumentalities, not to exceed two (2)years to stated maturity, and excluding mortgage backed securities; 76 B. Fully insured or collateralized certificates of deposit from a bank doing business in the State of Texas and under the terms of a written depository agreement with that bank, not to exceed one year to stated maturity; C. No-load, SEC registered money market mutual funds. No more than 80% of the entity's monthly average balance may be invested in money market funds and; D. Constant dollar, AAA-rated Texas Local Government Investment Pools as defined by the Public Funds Investment Act. If additional types of securities are approved for investment by public funds by state statute, they will not be eligible for investment until this Policy has been amended and the amended version adopted by the Board of Aldermen. Delivery versus Payment All investment security transactions shall be conducted on a delivery versus payment (DVP)basis to assure that the Academy has control of its assets and/or funds at all times. IX. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS Securities broker/dealers may be primary or regional broker/dealers and will meet other criteria as determined by the Investment Officer including state registration and completion of a Academy Broker/Dealer questionnaire (attached as Exhibit D). The following criteria must be met by authorized firms. - annual provision of an audited financial statement, - proof of certification by the National Association of Securities Dealers (NASD) - proof of current registration with the Texas State Securities Commission, and - completion of the Academy's broker/dealer questionnaire. Every bank and broker/dealer with whom the Academy transacts business will be provided a copy of this Investment Policy to assure that they are familiar with the goals and objectives of the investment program. The firm will be required to return a signed copy of the Certification Form (attached as Exhibit C) certifying that the Policy has been received and reviewed and only those securities approved by the Policy will be sold to the Academy. X. DIVERSIFICATION AND MATURITY LIMITATIONS It is the policy of the Academy to diversify its investment portfolio. Invested funds shall be diversified to minimize risk or loss resulting from over-concentration of assets in a specific maturity, specific issuer, or specific class of securities. Diversification strategies shall be established and periodically reviewed. 77 XI. SAFEKEEPING AND COLLATERALIZATION The laws of the State and prudent treasury management require that all purchased securities be bought on a delivery versus payment (DVP) basis and be held in safekeeping by either an approved, independent third party financial institution or the Academy's designated depository. Securities Owned by the Academy All safekeeping arrangements shall be approved by the Investment Officer and an agreement of the terms executed in writing. The safekeeping bank may not be within the same holding company as the bank from with the securities are purchased. The custodian shall be required to issue original safekeeping receipts to the Academy listing each specific security, rate, description, maturity, cusip number, and other pertinent information. Collateral Collateralization shall be required on all bank time and demand deposits for principal and accrued interest amounts over the FDIC insurance coverage of $100,000 (by tax identification number). In order to anticipate market changes and provide a level of additional security for all funds, collateral with a market value equal to 102% of the total deposits are required. The pledging bank will be made contractually liable for monitoring and maintaining the collateral levels at all times. All collateral will be held by an independent third party bank outside the holding company of the bank, pledged to the Academy. Authorized collateral will include only: - Obligations of the US Government, its agencies and instrumentalities to include mortgage backed securities which pass the bank test,. - Municipal obligations rated at least A by two nationally recognized rating agencies. The custodian shall be required to provide original safekeeping receipts clearly marked that the security is pledged to the Academy. XII. REPORTING The Investment Officer shall submit quarterly reports to the Board of Trustees containing sufficient information to permit an informed outside reader to evaluate the performance of the investment program and in full compliance with the Act. At a minimum the report shall contain: - Beginning and ending market value of the portfolio by market sector and total portfolio - Beginning and ending book value of the portfolio by market sector and total portfolio - Change in market value during the period Detail on each asset(book, market, description,par ad maturity date) Earnings for the period - Overall weighted average maturity of the portfolio 78 The report will be prepared jointly by all involved in the investment activity and be signed by the Investment Officer. It will contain all elements as required by the Act and be signed by the Investment Officers as in compliance with the Act and this Policy. Market prices for assignment of market values will be obtained from an independent source. XIII. DEPOSITORIES The Academy will designate one banking institution through a competitive process as its central banking services provider at least every five years. This institution will be used for normal banking services including disbursements, deposits, and safekeeping of Academy owned securities. Other banking institutions from which the Academy may purchase only certificates of deposit will also be designated as a depository. All banking arrangements will be in written form in accordance with h'IRREA which requires a resolution of approval of the agreement by the Bank Council or Bank Loan Committee. XIV. INVESTMENT POLICY ADOPTION BY BOARD The Academy's Investment Policy and its incorporated strategies shall be adopted by resolution annually by the Board. The approval and any changes made to the Policy will be noted in the approving resolution. 79