HomeMy WebLinkAboutRes 06-15 WA Approving 2005-2006 Audit WESTLAKE ACADEMY
RESOLUTION NO. 06-15
A RESOLUTION OF THE BOARD OF TRUSTEES OF THE WESTLAKE ACADEMY
APPROVING THE FISCAL YEAR 2005/2006 ANNUAL AUDIT REPORT FROM
STOVALL, GRANDEY & ALLEN, LLP.
WHEREAS, Section 7.3.6 of the Data Collection & Reporting section of the
Financial Accountability System Resource Guide Update 11.0 requires that the annual financial
and compliance report be audited by an independent auditor; and
WHEREAS, Section 7.3.6 of the Data Collection&Reporting section of the
Financial Accountability System Resource Guide Update 11.0 requires the audit report be
submitted to the Division of School Financial Audits of TEA no later than 150 days after the
close of the fiscal year; and
WHEREAS, the audit report must be approved by the Board of Trustees; and
WHEREAS, a representative of Stovall, Grandey & Allen has appeared before the
Board of Trustees and has satisfactorily responded to all questions propounded by the Board.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE
WESTLAKE ACADEMY:
SECTION 1: That the Board of Trustees of Westlake Academy does hereby approve the
fiscal year 2005/2006 annual audit report from Stovall, Grandey&Allen, LLP.
SECTION 2: That this Resolution shall become effective upon the date of its passage.
PASSED AND APPROVED ON THIS 13" DAY OF NOVEMBER, 2006.
Cow`
ATTEST: Scott Bradley, President
V�
Ginger Awlry Acting Secretary arbara L. Bri la, Head of School
APPROVE TO
anion L tt me
WESTLAKE ACADEMY
(A COMPONENT UNIT OF
THE TOWN OF WESTLAKE)
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
AUGUST 31, 2006
WESTLAKE ACADEMY
(A COMPONENT UNIT OF THE TOWN OF WESTLAKE)
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED AUGUST 31, 2006
Page
Certificate of Board............................................................................................................. i
Independent Auditor’s Report............................................................................................. ii
Management’s Discussion and Analysis............................................................................. iv
Basic Financial Statements
Government Wide Statements:
A-1 Statement of Net Assets...................................................................................................... 1
B-1 Statement of Activities........................................................................................................ 2
Governmental Fund Financial Statements:
C-1 Balance Sheet...................................................................................................................... 4
C-2 Statement of Revenues, Expenditures, and Changes in Fund Balance................................ 5
D-1 Statement of Fiduciary Net Assets ..................................................................................... 6
Notes to the Basic Financial Statements.............................................................................. 7
Required Supplementary Information
G-1 Budgetary Comparison Schedule — General Fund............................................................. 15
Notes to the Required Supplementary Information............................................................. 16
Combining Schedules
H-1 Combining Balance Sheet................................................................................................... 17
H-2 Combining Schedule of Revenues, Expenditures and Changes in
Fund Balance – Non Major Governmental Funds........................................................ 18
Overall Compliance and Internal Controls Section
Report on Internal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards ...................................................... 19
CERTIFICATE OF BOARD
WESTLAKE ACADEMY TARRANT 220-810
Name of School County Co.-Dist. Number
We, the undersigned, certify that the attached annual financial reports of the above-named school were reviewed and
(check one) __________ approved __________ disapproved for the year ended August 31, 2006 at a meeting of the
Board of Trustees of such school on the _____ day of _________________________, 2006.
Signature of Board Secretary Signature of Board President
If the Board of Trustees disapproved of the auditors’ report, the reason(s) for disapproving it is (are):
(attach list as necessary)
i
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT
Board of Trustees
Westlake Academy
2650 J.T. Ottinger Road
Westlake, Texas 76262
Members of the Board:
We have audited the accompanying financial statements of the governmental activities, the
discretely presented component unit, each major fund, and the aggregate remaining fund
information of the Westlake Academy (the “Academy”) as of and for the year ended August
31, 2006 which collectively comprise the Academy’s basic financial statements as listed in
the table of contents. These financial statements are the responsibility of the Academy’s
management. Our responsibility is to express an opinion on these basic financial statements
based on our audit. The financial statements of Westlake Academy as of August 31, 2005
were audited by other auditors whose report dated October 13, 2005, expressed an
unqualified opinion on those statements.
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the basic financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the
basic financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall basic
financial statement presentation. We believe that our audit provides a reasonable basis for
our opinions.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the respective financial position of the government activities, the discretely
presented component unit, each major fund, and the aggregate remaining fund information of
the Academy as of August 31, 2006, and the respective changes in financial position and,
where applicable, cash flows thereof, for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated
October 9, 2006 on our consideration of Westlake Academy’s internal control over financial
reporting and our tests of its compliance with certain provisions of laws, regulations,
contracts, and grants agreements and other matters. The purpose of that report is to describe
the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on the internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be considered in assessing the
results of our audit.
The Management’s Discussion and Analysis (on pages iv through x) and the Budgetary
Comparison Schedule-General Fund (on page 15) are not a required part of the basic
financial statements but are supplementary information required by accounting principles
generally accepted in the United States of America. We have applied certain limited
procedures, which consisted principally of inquiries of management regarding the methods of
measurement and presentation of the required supplementary information. However, we did
not audit the information and express no opinion on it.
ii
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the Academy’s basic financial statements. The combining fund financial statements are presented for purposes of
additional analysis and are not a required part of the basic financial statements. The combining fund financial
statements have been subjected to the auditing procedures applied in the audit of the basic financial statements and,
in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole.
STOVALL, GRANDEY & ALLEN, LLP
Fort Worth, Texas
October 9, 2006
iii
WESTLAKE ACADEMY
MANAGEMENT’S DISCUSSION AND ANALYSIS
This section of Westlake Academy’s annual financial report presents our discussion and analysis of the Academy’s
financial performance during the fiscal year ended August 31, 2006. Please read it in conjunction with the
Academy’s financial statements, which follow this section.
FINANCIAL HIGHLIGHTS
• On the government-wide financial statements, the assets of the Academy exceeded liabilities by $427,720
(Net Assets). This is an increase of $195,629 during the year ended August 31, 2006.
• The Academy had $2,249,998 in expenses related to governmental activities of which $230,652 of these
expenses were offset by program-specific charges for services or grants and contributions. This is a total
expense increase of $372,600 over the prior year.
• The General Fund reported a fund balance this year of $427,720, an increase of $195,629 from the prior
year.
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of three parts—management’s discussion and analysis (this section), the basic financial
statements, and required supplementary information. The basic financial statements include two kinds of statements
that present different views of the Academy:
The financial statements also include notes that explain some of the
information in the financial statements and provide more detailed data.
The statements are followed by a section of required supplementary
information that further explains and supports the information in the
financial statements. Figure A-1 shows how the required parts of this
annual report are arranged and related to one another.
Figure A-1. Required Components of
the Academy’s Annual Financial
Report
• The first two statements are government-wide financial
statements that provide both long-term and short-term
information about the Academy’s overall financial status.
• The remaining statements are fund financial statements that
focus on individual parts of the government, reporting the
Academy’s operations in more detail than the government-
wide statements.
− The governmental funds statements tell how general
government services were financed in the short-term
as well as what remains for future spending.
iv
Figure A-2 below summarizes the major features of school district/charter school financial statements, including the
portion of the Academy government they cover, as well as the types of information they contain. The remainder of
this overview section of management’s discussion and analysis explains the structure and contents of each of the
statements. The Academy did not have any “Proprietary” funds at August 31, 2006.
Government-wide Statements
The government-wide statements report information about the Academy as a whole using accounting methods
similar to those used by private-sector companies. The statement of net assets includes all of the government’s
assets and liabilities. All of the current year’s revenues and expenses are accounted for in the statement of activities
regardless of when cash is received or paid.
The two government-wide statements report the Academy’s net assets and how they have changed. Net assets—the
difference between the Academy’s assets and liabilities—is one way to measure the Academy’s financial health or
position.
• Over time, increases or decreases in the Academy’s net assets are an indicator of whether its financial health
is improving or deteriorating, respectively.
The government-wide financial statements of the Academy include the Governmental activities. Most of the
Academy’s basic services are included here, such as instruction, extracurricular activities, curriculum and staff
development, health services, and general administration. State funds, donations and grants finance most of these
activities.
FIGURE A-2.
MAJOR FEATURES OF THE ACADEMY’S GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
Type of Statements Government-wide Governmental Funds Proprietary Funds Fiduciary Funds
The Academy has no
Proprietary Funds for the
year ended 8-31-06.
Scope
Entire Academy’s govern-
ment (except fiduciary
funds) and the Academy’s
component units
The activities of the
Academy that are not
proprietary or fiduciary
Activities of the Academy
operates similar to private
business, i.e. self-
insurance
Instances in which the
Academy is the trustee or
agent for someone else’s
resources
Required financial
statements
*Statement of net assets
*Statement of activities
*Balance Sheet
*Statement of revenues,
expenditures & changes
in fund balances
*Statement of net assets
*Statement of revenues,
expenses and changes in
fund net assets
*Statement of cash flows
*Statement of fiduciary
net assets
*Statement of changes in
fiduciary net assets
Accounting basis and
measurement focus
Accrual accounting and
economic resources focus
Modified accrual account-
ing and current financial
resources focus
Accrual accounting and
economic resources focus
Accrual accounting and
economic resources focus
Type of asset/liability
information
All assets and liabilities,
both financial and capital,
short-term and long-term
Only assets expected to be
used up and liabilities that
come due during the year
or soon thereafter, no
capital assets included
All assets and liabilities
both financial and capital,
and short-term and long-
term.
All assets and liabilities,
both short-term and long-
term; the Agency’s funds
do not currently contain
capital assets, although
they can.
Type of inflow/outflow
information
All revenues and ex-
penses during year,
regardless of when cash is
received or paid.
Revenues for which cash
is received during or soon
after the end of the year,
expenditures when goods
or services have been
received and payment is
due during the year or
soon thereafter
All revenues and ex-
penses during year,
regardless of when cash is
received or paid
All revenues and ex-
penses during year,
regardless of when cash is
received or paid
v
Fund Financial Statements
The fund financial statements provide more detailed information about the Academy’s most significant funds—not
the Academy as a whole. Funds are accounting devices that the Academy uses to keep track of specific sources of
funding and spending for particular purposes.
• Some funds are required by State law and by bond covenants.
• The Board of Trustees establishes other funds to control and manage money for particular purposes or to
show that it is properly using certain taxes and grants.
Below are the three types of funds. The Academy had only “Governmental funds” and “Fiduciary funds” for the
year ended August 31, 2006.
• Governmental funds—Most of the Academy’s basic services are included in governmental funds, which
focus on (1) how cash and other financial assets that can readily be converted to cash flow in and out and
(2) the balances left at year-end that are available for spending. Consequently, the governmental fund
statements provide a detailed short-term view that helps you determine whether there are more or fewer
financial resources that can be spent in the near future to finance the Academy’s programs. Because this
information does not encompass the additional long-term focus of the government-wide statements, we
provide additional information at the bottom of the governmental funds statement, or on the subsequent
page, that explains the relationship (or differences) between them.
• Proprietary funds - (None at August 31, 2006) Services for which the Academy would charge customers a
fee are generally reported in proprietary funds. Proprietary funds, like the government-wide statements,
provide both long- and short-term financial information.
− Internal service funds to report activities that provide supplies and services for the Academy’s other
programs and activities - such as a School’s Self Insurance Fund or Print Shop.
• Fiduciary funds - Some schools are the trustee, or fiduciary, for certain funds. It is also responsible for
other assets that—because of a trust arrangement—can be used only for the trust beneficiaries. These
schools are responsible for ensuring that the assets reported in these funds are used for their intended
purposes. All of these fiduciary activities are reported in a separate statement of fiduciary net assets and a
statement of changes in fiduciary net assets. These activities are excluded from the school’s government-
wide financial statements because they cannot use these assets to finance their operations.
vi
FINANCIAL ANALYSIS OF THE ACADEMY AS A WHOLE
Net assets. The Academy’s combined net assets were $427,720 at August 31, 2006. (See Table A-1).
Table 1-A
Westlake Academy’s Net Assets
(in thousands of dollars)
Governmental Activities
Total %
Change
2006 2005 2005-2006
Current and Other Assets $ 470 $ 316
Total Assets 470 316 49%
Current Liabilities 42 84
Total Liabilities 42 84 (50)%
Net Assets
Unrestricted 428 232
Total Net Assets $ 428 $ 232 85%
Figure A-3
Westlake Academy
Sources of Revenue for Fiscal Year 2006
Federal
Grants
2%
Charge for
Services
3%
Gifts and
Bequests
16%
State Funding
79%
Changes in net assets. The Academy’s
total revenues were $2.4 million. A
significant portion, 79%, of the Academy’s
revenue came from state funding. (See
Figure A-3.) 2% percent came from
federal grants, 16% came from gifts and
bequests, and 3% from revenue related to
charges for services.
The total cost of all programs and services
was $2.2 million; 66% of these costs are
for instructional and instructional related
costs.
vii
Table A-3
Changes in Westlake Academy’s Net Assets
(in thousands of dollars)
Governmental Activities
Total %
Change
2006 2005 2005-2006
Revenues
Program Revenues:
Charges for Services $ 98 $ 39 151%
Operating Grants and Contributions 132 335 (61)%
General Revenues:
Grants and Contributions not restricted 1,822 1,520 20%
Miscellaneous Local and Intermediate Revenues 394 203 94%
Total Revenues 2,446 2,097 17%
Expenses
Instruction and instructional related 1,484 1,237 20%
Instructional leadership/school administration 276 258 7%
Guidance, social work, health, transportation 67 64 5%
Food services 83 14 493%
Extracurricular activities 44 45 (2)%
General administration 85 84 1%
Plant maintenance and security 167 129 29%
Data processing services 42 44 (5)%
Community services 2 2 0%
Total Expenses 2,250 1,877 20%
Increase in Net Assets 196 220 (11)%
Beginning Net Assets 232 12 1,833%
Ending Net Assets $ 428 $ 232 84%
Table A-4 (below) presents the cost of each of the Academy’s largest functions as well as each function’s net cost
(total cost less fees generated by the activities and intergovernmental aid). The net cost reflects what was funded by
state revenues as well as local tax dollars.
• The cost of all governmental activities this year was $2,249,998.
• Some of the cost was paid by those who directly benefited from the programs, $98,357.
• By grants and contributions $132,295.
viii
Table A-4
Net Cost of Selected Westlake Academy Functions
(in thousands of dollars)
Total Cost of Services
Total %
Change Net cost of Services
Total %
Change
2006 2005 2005-2006 2006 2005 2005-2006
Instruction $ 1,406 $ 1,190 18% $ 1,292 $ 930 39%
School Leadership 276 258 7% 261 209 25%
Food Services 83 14 493% (8) (3) 167%
General Administration 85 84 1% 85 66 29%
Plant Maintenance and Operations 167 130 28% 167 117 43%
FINANCIAL ANALYSIS OF THE ACADEMY’S FUNDS
Revenues from governmental fund types totaled $2,445,627 with total governmental fund type expenditures totaling
$2,249,998.
General Fund Budgetary Highlights
Over the course of the year, the Academy revised its budget by increasing revenues by $80,375 and decreased
expenditures by $2,649, netting an increase of $83,024 to the budget. At year-end, actual expenditures were $64,195
below the amended budget.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS
• General Fund revenues are budgeted to increase 14% over 2005-2006 actual revenues. This rise is primarily
attributable to the increase in student population as well as anticipated Blacksmith Apprentice program
donations which correspond to the number of students enrolled.
• Increase in the Academy population by adding a ninth grade for FY 2006-2007. Each year the Academy will
expand one grade level until the Academy reaches K-12. With this expansion, increase in the 7th grade and new
Westlake students being admitted, the student population is estimated to increase by 56.
• The Academy’s 2007 refined average daily attendance is expected to be 335.620 up by 20.20 from FY 2006’s
315.417. This is an increase of approximately 7%.
• Amounts available for appropriation in the General Fund budget are $2.76 million, an increase of 20% over the
final 2006 budget of $2.3 million. This increase includes the addition of staff, teacher salary adjustments, and
additional technology and supplies for the 9th grade classes.
• General Fund operation spending per student increased in the 2007 budget from $7,447 to $7,817. This 5%
increase is associated with the above referenced explanation of the additional budgeted expenditures. The
addition to staff for FY 2006-2007 includes a total of 4.8 teachers. Full time additions include the
English/Humanities MYP teacher, part-time Mathematics and Biology MYP teachers, additional PE teacher,
additional Special Education teacher and full-time IT teacher/Coordinator/Technician. Other personnel
increases are a result of expanding the total number of days worked for the following positions: Spanish teacher,
and the Art and Music teachers.
• If the FY 2006-2007 budget estimates are realized, the Academy’s General Fund’s budgetary fund balance is
expected to decrease approximately $14K by the close of FY 2007.
ix
ACHIEVEMENTS DURING FISCAL YEAR 2005-2006:
• Became an IBO World School with the Authorization of the PYP (Primary Years Program). This makes
Westlake Academy only the sixth school in Texas with an IBO/PYP program.
• Obtained a successful Consultation visit for the MYP (Middle Years Program). As a result, IB North
America has scheduled the MYP Authorization visit for second semester of the 2006-2007 academic year.
• The PYP Exhibition, planned, organized and carried out by the G6 students, was of the highest caliber.
Other IB candidates and authorized schools have contacted us for input on how to incorporate our unique
plan for the exhibition, a required part of the PYP.
• Conducted 1st international student exchange when fifth grade students from Greengates School, an IB
World School in Mexico City, visited Westlake Academy in October 2005. Thirteen Westlake Academy
students returned the five-day, four night visit in March 2006.
• Implemented residential field trips for Grades 4, 5, 7 and 8.
• Maintained TEA Recognized status, with increased numbers of a 100% passing rate and even had 25%
perfect scores in one grade’s exam.
• Started a school newspaper, The Black Cow, headed by our MYP students. The paper became the most
highly read newspaper in the community and was named one of the top 7 Junior High newspapers in the
State of Texas. Numerous student editors and contributors garnered individual awards.
• For the first time, students created the layout, writing and production for the school yearbook.
• Competitive sports doubled in number with both Elementary and Junior High teams in most sports offered.
• Fine Arts staged 3 drama productions. In every production, each and every one of the students in G7 and
G8 were on stage. Plays staged: The Miracle Worker, Westside Story and Shakespeare’s Julius Caesar.
• Formed an exceptional Community Choir, comprised of parents and teachers, under the direction of our
Music Teacher.
• All Westlake Academy Odyssey of the Mind Teams won 1st or 2nd prizes at Regionals and went on to State
Competition.
• Westlake Academy students participated in UIL Regional Spelling Bees and did very well.
• Student-led conferences were successfully initiated in lieu of Parent-Teacher conferences.
• Students created service projects in record numbers, donating time, supplies, money and support to many
different agencies and emergency relief funds.
• Teachers attended a record number of IB training courses, both locally, nationally and internationally.
• House of Commons donated funds for teachers to visit IB schools during the 2006-2007 school year.
• Parents donated over $358,000 to the Blacksmith Apprentice Program.
• TEA ranked the Academy as Gold Medalist in 5 categories for 2005: Math; Reading; Science; Writing;
Attendance
CONTACTING THE ACADEMY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a
general overview of the Academy’s finances and to demonstrate the Academy’s accountability for the money it
receives. If you have questions about this report or need additional financial information, contact the
Academy/Town Finance Director, Debbie Piper, at 817-490-5712.
x
BASIC FINANCIAL STATEMENTS
EXHIBIT A-1
WESTLAKE ACADEMY
STATEMENT OF NET ASSETS
AUGUST 31, 2006
1 4
Control
Data
Codes
Governmental
Activities Foundation
WA
Primary
Government Component Unit
ASSETS
118,468 12,051 Cash and Cash Equivalents $$1110
55,534 361,864 Current Investments1120
- 84,425 Due from Other Governments1240
- 11,430 Deferred Expenses1410
Total Assets1000 469,770 174,002
LIABILITIES
- 7,963 Accounts Payable2110
- 33,209 Accrued Wages Payable2160
- 878 Accrued Expenses2200
Total Liabilities2000 42,050 -
NET ASSETS
174,002 427,720 Unrestricted Net Assets3900
Total Net Assets3000 427,720 174,002 $$
1
The notes to the financial statements are an integral part of this statement.
WESTLAKE ACADEMY
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED AUGUST 31, 2006
Control
Data
Codes Expenses Services
Charges for
Contributions
Grants and
Operating
Program Revenues
1 43
Primary Government:
GOVERNMENTAL ACTIVITIES:
4,815 1,406,462 110,055 Instruction $$$11
- 58,065 2,972 Instructional Resources and Media Services12
- 19,978 - Curriculum and Instructional Staff Development13
- 386 - Instructional Leadership21
- 275,559 15,005 School Leadership23
- 44,569 1,545 Guidance, Counseling and Evaluation Services31
- 22,220 1,313 Health Services33
90,346 82,844 555 Food Services35
1,333 43,726 595 Cocurricular/Extracurricular Activities36
- 84,847 - General Administration41
- 167,318 - Plant Maintenance and Operations51
- 42,039 124 Data Processing Services53
1,863 1,985 131 Community Services61
[TP] TOTAL PRIMARY GOVERNMENT:2,249,998 98,357 132,295 $$$
Component Unit:
- 473,113 - Nonmajor Component Unit $$$1C
[TC] TOTAL COMPONENT UNIT:473,113 - - $$$
Data
Control
Codes
General Revenues:
Taxes:
State Aid - Formula GrantsSF
Investment EarningsIE
Miscellaneous Local and Intermediate RevenueMI
Total General RevenuesTR
Net Assets--Beginning
Change in Net Assets
Net Assets--Ending
CN
NB
NE
2
The notes to the financial statements are an integral part of this statement.
EXHIBIT B-1
Net (Expense) Revenue and
Activities
Governmental
Changes in Net Assets
6 9
WA
Foundation
Primary Government Component Unit
(1,291,592)$ - $
(55,093) -
(19,978) -
(386) -
(260,554) -
(43,024) -
(20,907) -
8,057 -
(41,798) -
(84,847) -
(167,318) -
(41,915) -
9 -
(2,019,346) -
- (473,113)
- (473,113)
1,822,200 -
8,180 -
384,595 599,973
2,214,975 599,973
195,629
232,091
427,720 $
126,860
47,142
174,002 $
3
EXHIBIT C-1
WESTLAKE ACADEMY
BALANCE SHEET
GOVERNMENTAL FUNDS
AUGUST 31, 2006
Control
Data
Codes General
Fund Funds
Revenue
Special
Funds
Governmental
Total10
ASSETS
- 12,870 12,870 Cash and Cash Equivalents $$$1110
- 361,864 361,864 Investments - Current1120
1,417 83,008 84,425 Due from Other Governments1240
- 11,430 11,430 Deferred Expenditures1410
Total Assets1000 469,172 1,417 470,589 $$$
LIABILITIES AND FUND BALANCES
Liabilities:
819 - 819 Deficit Cash $$$2105
- 7,963 7,963 Accounts Payable2110
551 32,658 33,209 Accrued Wages Payable2160
47 831 878 Accrued Expenditures2200
Total Liabilities2000 41,452 1,417 42,869 $$$
Fund Balances:
Unreserved and Undesignated:
- 427,720 427,720 Reported in the General Fund $$$3600
Total Fund Balances3000 427,720 - 427,720 $$$
Total Liabilities and Fund Balances4000 469,172 1,417 470,589 $$$
4
The notes to the financial statements are an integral part of this statement.
EXHIBIT C-2
WESTLAKE ACADEMY
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED AUGUST 31, 2006
Control
Data
Codes
10
General
Fund Funds
Revenue
Special
Funds
Governmental
Total
REVENUES:
- 491,132 491,132 Total Local and Intermediate Sources $$$5700
8,649 1,916,394 1,925,043 State Program Revenues5800
29,452 - 29,452 Federal Program Revenues5900
Total Revenues5020 2,407,526 38,101 2,445,627
EXPENDITURES:
Current:
38,101 1,368,361 1,406,462 Instruction0011
- 58,065 58,065 Instructional Resources and Media Services0012
- 19,978 19,978 Curriculum and Instructional Staff Development0013
- 386 386 Instructional Leadership0021
- 275,559 275,559 School Leadership0023
- 44,569 44,569 Guidance, Counseling and Evaluation Services0031
- 22,220 22,220 Health Services0033
- 82,844 82,844 Food Services0035
- 43,726 43,726 Cocurrricular/Extracurricular Activities0036
- 84,847 84,847 General Administration0041
- 167,318 167,318 Plant Maintenance and Operations0051
- 42,039 42,039 Data Processing Services0053
- 1,985 1,985 Community Services0061
Total Expenditures6030 2,211,897 38,101 2,249,998
1200 Net Change in Fund Balances 195,629 - 195,629
0100 Fund Balance - September 1 (Beginning)232,091 - 232,091
3000 Fund Balance - August 31 (Ending)$427,720 $ - $427,720
5
The notes to the financial statements are an integral part of this statement.
EXHIBIT D-1
WESTLAKE ACADEMY
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
AUGUST 31, 2006
Agency
Fund
ASSETS
9,320 Cash and Cash Equivalents $
Total Assets 9,320 $
LIABILITIES
9,320 Due to Student Groups $
Total Liabilities 9,320 $
6
The notes to the financial statements are an integral part of this statement.
WESTLAKE ACADEMY
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED AUGUST 31, 2006
7
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. REPORTING ENTITY
Westlake Academy (the “Academy”), a blended component unit of the Town of Westlake (the “Town”), is
a Texas non-profit Corporation under Chapter 12, Subchapter D of the Education Code to provide
education services and acquire, finance and operate educational facilities. The Board of Trustees (the
“Board”) consists of six trustees and is appointed by the Town’s governing body. Currently all the
members of the Board are members of the Town’s governing body. The Academy prepares its basic
financial statements in conformity with generally accepted accounting principles promulgated by the
Governmental Accounting Standards Board (the “GASB”) and other authoritative sources identified in
Statement on Auditing Standards No. 69 of the American Institute of Certified Public Accountants; and it
complies with the requirements of the appropriate version of Texas Education Agency’s Financial
Accountability System Resource Guide (the “Resource Guide”) and the requirements of contracts and
grants of agencies from which it receives funds.
The Board is appointed by the governing board 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. 14, “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 must be able to impose its
will, or (b) the primary government may potentially benefit financially or be financially responsible for the
component unit.
The Westlake Academy Foundation (the “Foundation”) is a 501(c)3 nonprofit organization which was
established exclusively for the purposes of supporting the Academy. This includes fundraising for and
contributing raised funds to the Academy. The Foundation has been discretely presented in the
accompanying financial statements. See Footnote II for additional information relating to the Foundation.
Separate audited financial statements of the Foundation are not available.
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The Statement of Net Assets and the Statement of Activities are government-wide financial statements.
They report information on all of the Academy’s nonfiduciary activities with most of the interfund
activities removed. Governmental activities include programs supported primarily by State and Federal
grants, the Foundation, and the Town. The Academy has no business-type activities that rely to a
significant extent, on fees and charges for support.
WESTLAKE ACADEMY
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED AUGUST 31, 2006
8
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS, continued
The Statement of Activities demonstrates how other people or entities that participate in programs the
Academy operates have shared in the payment of the direct costs. Direct expenses are those that are clearly
identifiable with a specific function or segment. The "charges for services" column includes payments
made by parties that purchase, use, or directly benefit from goods or services provided by a given function
or segment of the Academy. The primary example is school lunch charges. The "grants and contributions"
column includes amounts paid by organizations outside the Academy to help meet the operational or capital
requirements of a given function. Examples include grants under the Elementary and Secondary Education
Act. If a revenue is not a program revenue, it is a general revenue used to support all of the Academy's
functions.
Interfund activities between governmental funds appear as due to/due froms on the Governmental Fund
Balance Sheet and as other resources and other uses on the Governmental Fund Statement of Revenues,
Expenditures and Changes in Fund Balance. All interfund transactions between governmental funds are
eliminated on the government-wide statements. Interfund activities between governmental funds and
fiduciary funds remain as due to/due froms on the government-wide Statement of Activities.
The fund financial statements provide reports on the financial condition and results of operations for three
fund categories - governmental, proprietary, and fiduciary. Since the resources in the fiduciary funds
cannot be used for Academy operations, they are not included in the government-wide statements. The
Academy considers some governmental funds major and reports their financial condition and results of
operations in a separate column.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses result from providing services and producing and delivering goods in connection
with a proprietary fund's principal ongoing operations. All other revenues and expenses are nonoperating.
The Academy has no proprietary funds.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
The government-wide financial statements use the economic resources measurement focus and the accrual
basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of the related cash flows. Grants and similar items are recognized as
revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements use the current financial resources measurement focus and the
modified accrual basis of accounting. With this measurement focus, only current assets, current liabilities
and fund balances are included on the balance sheet. Operating statements of these funds present net
increases and decreases in current assets (i.e., revenues and other financing sources and expenditures and
other financing uses).
The modified accrual basis of accounting recognizes revenues in the accounting period in which they
become both measurable and available and it recognizes expenditures in the accounting period in which the
fund liability is incurred, if measurable. The expenditures related to certain compensated absences and
claims and judgments are recognized when the obligations are expected to be liquidated with expendable
available financial resources. The Academy considers all revenues available if they are collectible within
60 days after year end.
WESTLAKE ACADEMY
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED AUGUST 31, 2006
9
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION, continued
Miscellaneous revenues are recorded as revenue when received in cash because they are generally not
measurable until actually received. Investment earnings are recorded as earned, since they are both
measurable and available.
Grant funds are considered to be earned to the extent of expenditures made under the provisions of the
grant. Accordingly, when such funds are received, they are recorded as deferred revenues until related and
authorized expenditures have been made. If balances have not been expended by the end of the project
period, grantors sometimes require the Academy to refund all or part of the unused amount.
The Proprietary Fund Types and Fiduciary Funds are accounted for on a flow of economic resources
measurement focus and utilize the accrual basis of accounting. This basis of accounting recognizes
revenues in the accounting period in which they are earned and become measurable and expenses in the
accounting period in which they are incurred and become measurable. The Academy applies all GASB
pronouncements as well as the Financial Accounting Standards Board pronouncements issued on or before
November 30, 1989, unless these pronouncements conflict or contradict GASB pronouncements. With this
measurement focus, all assets and all liabilities associated with the operation of these funds are included on
the fund Statement of Net Assets. The fund equity is segregated into restricted net assets, and unrestricted
net assets.
D. FUND ACCOUNTING
The Academy reports the following major governmental funds:
• The General Fund — The General Fund is the Academy’s primary operating fund. It accounts
for all financial resources except those required to be accounted for in another fund.
Additionally, the Academy reports the following fund types:
1. Special Revenue Fund — The Academy accounts for resources restricted to, or designated for,
specific purposes by the Academy or a grantor in a special revenue fund. Most Federal and some
State financial assistance is accounted for in a Special Revenue Fund and sometimes unused
balances must be returned to the grantor at the close of specified project period.
2. Agency Funds – The Academy accounts for resources held for others in a custodial capacity in
agency funds. Fiduciary funds are reported in the fiduciary fund financial statements. However,
because these assets are not available to support Academy programs, these funds are not included
in the government-wide statements. The Academy's agency fund is a Student Activity Fund.
E. OTHER ACCOUNTING POLICIES
1. For purposes of the statement of cash flows for proprietary and similar fund types, the Academy
considers highly liquid investments to be cash equivalents if they have a maturity of three months
or less when purchased.
WESTLAKE ACADEMY
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED AUGUST 31, 2006
10
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
E. OTHER ACCOUNTING POLICIES, continued
2. It is the Academy's policy to permit some employees to accumulate earned but unused vacation
and sick pay benefits. There is no liability for unpaid accumulated sick leave since the Academy
does not have a policy to pay any amounts when employees separate from service with the
government. All vacation pay is accrued when incurred in the government-wide, proprietary, and
fiduciary fund financial statements. A liability for these amounts is reported in governmental
funds only if they have matured, for example, as a result of employee resignations and retirements.
3. The Academy provides health insurance for its employees through Blue Cross/Blue Shield. The
Academy meets its obligations for workers’ compensation insurance through The Hartford
Insurance Company.
4. In the fund financial statements, governmental funds report reservations of fund balance for
amounts that are not available for appropriation or are legally restricted by outside parties for use
for a specific purpose. Designations of fund balance represent tentative management plans that
are subject to change.
5. When the Academy incurs an expense for which it may use either restricted or unrestricted assets,
it uses the restricted assets first unless unrestricted assets will have to be returned because they
were not used.
6. The Academy is exposed to various risk of loss related to torts theft of; damage to and destruction
of assets; errors and omissions; injuries to employees; and natural disasters. During fiscal 2006,
the Academy purchased commercial insurance to cover general liabilities. There were no
settlements exceeding insurance coverage in the current fiscal year.
7. During the year ended August 31, 2006, employees of the Academy were covered by a health
insurance plan (the Plan). The Academy paid premiums of $296.84 per month per employee to
the Plan. Employees, at their option, authorized payroll withholdings to pay premiums for
dependents. All premiums were paid to a licensed insurer. The Plan was authorized by Article
3.51-2, Texas Insurance Code and was documented by contractual agreement.
8. The Data Control Codes refer to the account code structure prescribed by TEA in the Financial
Accountability System Resource Guide. Texas Education Agency requires the Academy to
display these codes in the financial statements filed with the Agency in order to insure accuracy in
building a statewide database for policy development and funding plans.
WESTLAKE ACADEMY
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED AUGUST 31, 2006
11
II. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
A. DEPOSITS AND INVESTMENTS
The funds of the Academy must be deposited and invested under the terms of a contract, contents of which
are set out in the Depository Contract Law. The depository bank places approved pledged securities for
safekeeping and trust with the Academy’s agent bank in an amount sufficient to protect Academy funds on
a day-to-day basis during the period of the contract. The pledge of approved securities is waived only to
the extent of the depository bank’s dollar amount of Federal Deposit Insurance Corporation (“FDIC”)
insurance.
At August 31, 2006, the carrying amount of the Academy’s deposits (cash, certificates of deposit, and
interest-bearing savings accounts included in temporary investments) was $12,050 and the bank balance
was $54,453.
The Public Funds Investment Act (Government Code Chapter 2256) contains specific provisions in the
areas of investment practices, management reports and establishment of appropriate policies. Among other
things, it requires the Academy to adopt, implement, and publicize an investment policy. That policy must
address the following areas: (1) safety of principal and liquidity, (2) portfolio diversification, (3) allowable
investments, (4) acceptable risk levels, (5) expected rates of return, (6) maximum allowable stated maturity
of portfolio investments, (7) maximum average dollar-weighted maturity allowed based on the stated
maturity date for the portfolio, (8) investment staff quality and capabilities, (9) and bid solicitation
preferences for certificates of deposit. Statutes authorize the Academy to invest in (1) obligations of the
U.S. Treasury, certain U.S. agencies, and the State of Texas; (2) certificates of deposit, (3) certain
municipal securities, (4) money market savings accounts, (5) repurchase agreements, (6) bankers
acceptances, (7) mutual funds, (8) investment pools, (9) guaranteed investment contracts, (10) and common
trust funds. The Act also requires the Academy to have independent auditors perform test procedures
related to investment practices as provided by the Act. The Academy is in substantial compliance with the
requirements of the Act and with local policies.
The carrying value of investments at August 31, 2006 was $361,864 (Texas Local Government Investment
Pool). Local government investment pools operate in a manner consistent with the SEC’s Rule 2a7 of the
Investment Company Act of 1940. Local government investment pools use amortized cost rather than
market value to report net assets to compute share prices. Accordingly, the fair value of the position of
these pools is the same as the value of the shares in each pool.
TexPool is organized in conformity with the Interlocal Cooperation Act, Chapter 791 of the Texas
Government Code, and the Public Funds Investment Act, Chapter 2256 of the Texas Government Code.
The Texas Comptroller of Public Accounts is the sole officer, director and shareholder of the Texas
Treasury Safekeeping Trust Company, which is authorized to operate TexPool. In addition, the TexPool
Advisory Board advises on TexPool’s Investment Policy. This Board is composed equally of participants
in TexPool and other persons who do not have a business relationship with TexPool who are qualified to
advise TexPool. TexPool is subject to annual review by an independent auditor consistent with the Public
Funds Investment Act. KPMG Peat Marwick, 111 Congress Avenue, Suite 1100, Austin, Texas 78701
performs the annual audit. In addition, TexPool is subject to review by the State Auditor’s Office and by
the Internal Auditor of the Comptroller’s Office.
WESTLAKE ACADEMY
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED AUGUST 31, 2006
12
II. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS, continued
A. DEPOSITS AND INVESTMENTS, continued
Policies Governing Deposits and Investments
In compliance with the Public Funds Investment Act, the Academy has adopted a deposit and investment
policy. That policy does address the following risks:
Custodial Credit Risk – Deposits: This is the risk that in the event of bank failure, the Academy’s deposits
may not be returned to it. The Academy was not exposed to custodial credit risk since its deposits at year-
end and during the year ended August 31, 2006 was covered by depository insurance or by pledged
collateral held by the Academy’s agent bank in the Academy’s name.
Custodial Credit Risk – Investments: This is the risk that, in the event of the failure of the counterparty, the
Academy will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. Investments are subject to custodial credit risk only if they are evidenced by
securities that exist in physical or book entry form. Thus positions in external investment pools are not
subject to custodial credit risk because they are not evidenced by securities that exist in physical or book
entry form.
Other Credit Risk: There is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. To minimize credit risk, TexPool invests only in investments authorized under the Public
Funds Investment Act. As of August 31, 2006, TexPool’s investments credit quality rating was AAAm
(Standard & Poor’s).
B. DUE FROM OTHER GOVERNMENTS
The Academy participates in a variety of federal and state programs from which it receives grants to
partially or fully finance certain activities. Amounts due from federal and state governments as of August
31, 2006, are summarized below. All federal grants shown below are passed through the TEA and are
reported on the financial statements as Due from Other Governments.
Fund
Due from Other
Governments
General $ 83,008
Special Revenue 1,417
Total $ 84,425
WESTLAKE ACADEMY
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED AUGUST 31, 2006
13
II. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS, continued
C. DEFINED BENEFIT PENSION PLAN
Plan Description. The Academy contributes to the Teacher’s Retirement System of Texas (TRS), a cost-
sharing multiple employer defined benefit pension plan. TRS administers retirement and disability
annuities, and death and survivor benefits to employees and beneficiaries of employees of the public school
systems of Texas. It operates primarily under the provisions of the Texas Constitution, Article XVI, Sec.
67, and Texas Government Code, Title 8, Subtitle C. TRS also administers proportional retirement benefits
and service credit transfer under Texas Government Code, Title 8, Chapters 803 and 805, respectively.
TRS issues a publicly available financial report that includes financial statements and required
supplementary information for the defined benefit pension plan. That report may be obtained by writing to
the TRS Communications Department, 1000 Red River Street, Austin, Texas 8701, by calling the TRS
Communications Department at 1-800-2238778, or by downloading the report from the TRS Internet
website, www.trs.state.tx.us, under the TRS Publications heading.
Funding Policy. State law provides for fiscal years 2006 and 2005 a state contribution rate of 6.0% and a
member contribution rate of 6.4%. In certain instances the reporting academy is required to make all or a
portion of the state’s 6.0% contribution. Contribution requirements are not actuarially determined but are
legally established each biennium pursuant to the following state funding policy: (1) The state constitution
requires the legislature to establish a member contribution rate of not less than 6.0% of the member’s
annual compensation and a state contribution rate of not less than 6.0% and not more than 10.0% of the
aggregate annual compensation of all members of the system during that fiscal year; (2) A state statute
prohibits benefit improvements or contribution reductions if, as a result of a the particular action, the time
required to amortize TRS’s unfunded actuarial liabilities would be increased to a period that exceeds 31
years, or, if the amortization period already exceeds 31 years, the period would be increased by such action.
State contributions to TRS made on behalf of Westlake Academy’s employees for the year ended August
31, 2006 and 2005 were $94,194 and $70,270, respectively.
D. REVENUE FROM LOCAL AND INTERMEDIATE SOURCES
During the current year, revenues from local and intermediate sources as reported on Exhibit C-2 of the
fund statements consisted of the following:
General Fund
Gift and Bequests $ 389,410
Food Sales 90,346
Interest 8,180
Co-curricular 3,196
Total $ 491,132
E. DONATED USE OF FACILITIES
The Academy currently operates in facilities that are capital assets of the Town. The Academy is not
required by the Town to pay rent for the use of those facilities.
WESTLAKE ACADEMY
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED AUGUST 31, 2006
14
II. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS, continued
F. COMPONENT UNIT ACTIVITY
Major classes of assets, liabilities, net assets, revenues and expenses for the Foundation are reported below
for the fiscal year-ended August 31, 2006.
Statement of Net Assets
Assets
Cash and Cash Equivalents $ 118,468
Investments 55,534
Total Assets $ 174,002
Total Liabilities $ -
Net Assets
Unrestricted Net Assets $ 174,002
Total Net Assets $ 174,002
Statement of Activities
Revenues Expenses Net
Gallery Night $ 114,561 $ (24,114) $ 90,447
Gallery Day 4,119 - 4,119
Blacksmith Apprentice 342,577 (385,634) (43,057)
Capital Campaign 75,000 (60,000) 15,000
Miscellaneous 63,716 (3,365) 60,351
Totals $ 599,973 $ (473,113) $ 126,860
Beginning Net Assets 47,142
Ending Net Assets $ 174,002
The Blacksmith Apprentice program includes expenses of approximately $383,000 of contributions that
were remitted to the Academy during the fiscal year ended August 31, 2006. The Foundation received
approximately $55,534 of a donated investment from an anonymous donor for the benefit of the Academy
during the fiscal year ended August 31, 2006. This contribution is unrestricted.
REQUIRED SUPPLEMENTARY SCHEDULES
EXHIBIT G-1
WESTLAKE ACADEMY
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
FOR THE YEAR ENDED AUGUST 31, 2006
Control
Data
Codes Original Final
(GAAP BASIS)
(Negative)
Positive or
Final Budget
Variance WithActual Amounts
Budgeted Amounts
REVENUES:
483,470 451,200 491,132 7,662 Total Local and Intermediate Sources $$$$5700
1,886,206 1,838,101 1,916,394 30,188 State Program Revenues5800
Total Revenues5020 2,289,301 2,369,676 2,407,526 37,850
EXPENDITURES:
Current:
1,402,534 1,484,979 1,368,361 34,173 Instruction0011
58,143 62,924 58,065 78 Instructional Resources and Media Services0012
25,530 17,000 19,978 5,552 Curriculum and Instructional Staff Development0013
413 - 386 27 Instructional Leadership0021
287,252 287,790 275,559 11,693 School Leadership0023
44,959 38,858 44,569 390 Guidance, Counseling and Evaluation Services0031
23,531 22,905 22,220 1,311 Health Services0033
78,314 15,840 82,844 (4,530)Food Services0035
47,115 50,406 43,726 3,389 Cocurrricular/Extracurricular Activities0036
93,725 92,648 84,847 8,878 General Administration0041
170,531 155,249 167,318 3,213 Plant Maintenance and Operations0051
42,192 47,192 42,039 153 Data Processing Services0053
1,853 2,950 1,985 (132)Community Services0061
Total Expenditures6030 2,278,741 2,276,092 2,211,897 64,195
1200 Net Change in Fund Balances 10,560 93,584 195,629 102,045
0100 Fund Balance - September 1 (Beginning)232,091 232,091 232,091 -
3000 Fund Balance - August 31 (Ending)$242,651 $325,675 $427,720 $102,045
15
COMBINING SCHEDULES
EXHIBIT H-1
WESTLAKE ACADEMY
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
AUGUST 31, 2006
Control
Data
Codes
IDEA - Part B
Formula Allotment
Technology
Funds
Governmental
Nonmajor
224 411 Total
ASSETS
48 1,369 1,417 Due from Other Governments $$$1240
Total Assets1000 1,369 48 1,417 $$$
LIABILITIES AND FUND BALANCES
Liabilities:
48 771 819 Deficit Cash $$$2105
- 551 551 Accrued Wages Payable2160
- 47 47 Accrued Expenditures2200
Total Liabilities2000 1,369 48 1,417
4000 Total Liabilities and Fund Balances 1,369 48 1,417 $$$
17
EXHIBIT H-2
WESTLAKE ACADEMY
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED AUGUST 31, 2006
Control
Data
Codes
IDEA - Part B
Formula Allotment
Technology
Funds
Governmental
Nonmajor
224 411 Total
REVENUES:
8,649 - 8,649 State Program Revenues5800 $$$
- 29,452 29,452 Federal Program Revenues5900
Total Revenues5020 29,452 8,649 38,101
EXPENDITURES:
Current:
8,649 29,452 38,101 Instruction0011
Total Expenditures6030 29,452 8,649 38,101
1200 Net Change in Fund Balance - - -
0100 Fund Balance - September 1 (Beginning) - - -
3000 Fund Balance - August 31 (Ending)$ - $ - $ -
18
OVERALL COMPLIANCE AND
INTERNAL CONTROLS SECTION
19
REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Board of Trustees
Westlake Academy
2650 J.T. Ottinger Road
Westlake, Texas 76262
We have audited the accompanying financial statements of the governmental activities, the
discretely presented component unit, each major fund, and aggregate remaining fund
information of Westlake Academy (the “Academy”) as of and for the year ended August 31,
2006, which collectively comprise the Academy’s basic financial statement and have issued
our report thereon dated October 9, 2006. We conducted our audit in accordance with
auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Academy’s internal control over
financial reporting in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and not to provide assurance on the
internal control over financial reporting. Our consideration of the internal control over
financial reporting would not necessarily disclose all matters in the internal control over
financial reporting that might be material weaknesses. A material weakness is a reportable
condition in which the design or operation of one or more of the internal control components
does not reduce to a relatively low level risk that misstatements caused by error or fraud in
amounts that would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal course of
performing their assigned functions. We noted no matters involving the internal control over
financial reporting and its operation that we consider to be material weaknesses.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Academy’s financial statements
are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts and grants, noncompliance with which could have a
direct and material effect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objective of our audit
and, accordingly, we do not express such an opinion. The results of our tests disclosed no
instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
This report is intended solely for the information and use of management and is not intended
to be and should not be used by anyone other than these specified parties.
STOVALL, GRANDEY & ALLEN, LLP
Fort Worth, Texas
October 9, 2006