ALVIN INDEPENDENT SCHOOL DISTRICT BOARD OF … · BOARD OF TRUSTEES REGULAR BOARD MEETING November 11, 2014 ... Third grade student Knox Potter of Wilder Elementary was cast ... Priscila

ALVIN INDEPENDENT SCHOOL DISTRICT BOARD OF TRUSTEES

REGULAR BOARD MEETING

November 11, 2014

Official Agenda

7:00 PM

1. Call Meeting to Order and Establish Quorum

2. Invocation

3. Pledge of Allegiance

4. Introduction of Greeters 3

5. Commendations 4

6. Presentation

A. Financial Audit 11

B. School Boundary Advisory Committee 158

7. Open Forum - Information Only

8. Consent Agenda - Action Items

A. Request to Consider Approval of Board Minutes 159

B. Request to Consider Approval of Waiver of Building Use Fees 171

C. Request to Consider Properties in Trust 173

D. Request to Consider 2014-2015 Textbook Adoption Committee 183

E. Request to Consider Approval of Amendment 187

9. Request to Consider Approval of District/Campus Performance Objectives - Operations

Action Item

190

10. Request to Consider Local Policy Revisions - Business Action Item 306

11. Request to Consider Approval of TASB Policy Update 100 - Operations Action Item 314

12. Request to Consider Approval of Contract Award and Budget Amendment for

Replacing Hail Damaged Roofs at Alvin High School - Business Action Item

323

13. Request to Consider Approval of Consolidated Annual Financial Report 327

14. Request to Consider Approval of Employment of Personnel - Personnel Action Item 490

15. Superintendent's Report

A. Pack the Pantry Monday

B. Education Summit

C. Veteran's Day Choir Performances

D. Mark Twain Dedication

E. Education Go Get It Week

16. Future Agenda Items

17. Closed Executive Session

A. Deliberation with Board Attorney Regarding Proposed Settlement Agreement with Memorial

Hermann Pursuant to Texas Government Code Section 551.071

B. Deliberation Regarding the Purchase, Exchange, Lease or Value or Real Property Pursuant to

Texas Government Code Section 551.072

18. Open Session - Possible Action on Proposed Settlement Agreement

19. Open Session - Request to Consider Approval of Acquisition of Property

20. Adjournment

If, during the course of the meeting covered by this Notice, the Board of Trustees should determine that a

closed or executive meeting or session of the Board of Trustees is required, then such closed or executive meeting or

session as authorized by the Texas Open Meetings Act, Texas Government Code Section 551.001 et seq., will be

held by the School Board at the date, hour, and place given in this Notice or as soon after the commencement of the

meeting or session concerning any and all purposes permitted by the Act, including, but not limited to the following

sections and purposes:

Texas Government Code Section:

551.071 Private consultation with the board’s attorney.

551.072 Discussing purchase, exchange, lease, or value of real property.

551.073 Discussing negotiated contracts for prospective gifts or donations.

551.074 Discussing personnel or to hear complaints against personnel.

551.075 To confer with employees of the school district to receive information or to ask

questions.

551.076 Considering the deployment, specific occasions for, or implementation of, security

personnel or devices.

551.082 Considering the discipline of a public school child, or complaint or charge against

personnel.

551.083 Considering the standards, guidelines, terms, or conditions the board will follow, or will

instruct its representatives to follow, in consultation with representatives of employee

groups.

551.084 Excluding witnesses from a hearing.

Should any final action, final decision, or final vote be required in the opinion of the School Board with

regard to any matter considered in such closed or executive meeting or session, then the final action, final decision,

or final vote shall be either:

(a) In the open meeting covered by the Notice upon the reconvening of the public meeting; or

(b) at a subsequent public meeting of the School Board upon notice thereof; as the School Board shall

determine.

Alvin Independent School District November 11, 2014

To AISD Board of Trustees

Agendum

Greeters

Category Greeters

Resource Personnel Tommy King, Interim Superintendent

Daniel Combs, Communications

Attachments None

Rationale The greeters this evening are from Mark Twain Elementary. Mark Twain Elementary is celebrating their 50th Anniversary

this year and the campus will host a celebration tomorrow morning at 8:30 a.m. The students from Mark Twain would like

to invite everyone to join in on the 1960’s era celebration, which will include guest speakers, a student parade, and even some classic cars.

Budget Implications

None

Recommendation or Proposed Motion

None

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Agendum

Student & Faculty Commendation

Category Recognition


Daniel Combs, Communications

Attachments None

Rationale Knox Potter

Third grade student Knox Potter of Wilder Elementary was cast as the lead role and filmed in an anti-drug video last year with Austin indie rapper, p-teK. The video is based on a Teenage

Ninja Turtle book titled “Turtles Don't Do Drugs”. We appreciate the creative efforts of Knox as he shares the importance of staying drug free.

AP Scholars

The AP Program offers several AP Scholar Awards to recognize high school students who have demonstrated college-level achievement through AP courses and exams.

Alvin High School - AP Scholar Granted to students who receive scores of 3 or higher on three

or more AP Exams: (Commendation presented on campus, not during the board meeting) Paige Abney – 12th grade Tania Angulo – 12th grade

Ferdinand Boudreau – 12th grade Kaitlyn Dahlstrom – 12th grade Sopheara Duong – 11th grade

Parker Ercums – 11th grade Stacey Gardner – 12th grade Connor Hansen – 11th grade

Carolina Heiman – 12th grade Emily Hernandez – 12th grade

Luis Hernandez – 11th grade Julie Higuera – 11th grade Mary Hoffman – 11th grade

Madelyn Keyes – 12th grade Shalini Lakshmi – 10th grade Ashley Lawhorn – 11th grade

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Taylor Lupardus – 12th grade

Luis Medrano – 11th grade Dylan Nanez – 11th grade Kathleen Nelson – 12th grade

Crystal Porter – 12th grade Chelsea Sanchez – 11th grade Hyacinth Simmons – 10th grade

Eduardo Tenorio – 12th grade Samantha Torres – 10th grade

Joseph Watson – 11th grade Alvin High School - AP Scholar with Honor

Granted to students who receive an average score of at least 3.25 on all AP Exams taken, and scores of 3 or higher on four

or more of these exams: Abigail Armesto – 11th grade (Ab-i-gale Ar-mes-toe)

Servando Garcia – 11th grade

Niha Khan – 11th grade (Knee-ha Kaun)

Grant Klein – 11th grade Trystan Orr – 11th grade

Andrea Toledocastillo – 11th grade (An-dre-a Toe-lee-doe Cas-

tee-oe)

Suzanne Zeller – 11th grade

Alvin High School - AP Scholar with Distinction Granted to students who receive an average score of at least 3.5 on all AP Exams taken, and scores of 3 or higher on five or

more of these exams: Brianna Diaz – 11th grade Mauricio Exiga – 11th grade

Meagan Graham – 12th grade John Griffith – 12th grade

Joseph Kartye – 12th grade (Jo-sef Car-tee)

Jeremy Lupardus – 12th grade Angel Melendez – 12th grade

Katie Nelson – 11th grade Tuan Tran – 11th grade

Manvel High School – AP Scholar

Granted to students who receive scores of 3 or higher on three

or more AP Exams: (Commendation presented on campus, not

during the board meeting)

Nnamelu Akunne – 12th grade

Oluwakemi Alao – 12th grade

Christian Alarcon – 10th grade

Aaron Alex – 12th grade

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Sakari Anderson – 11th grade

Sarah Aziz – 11th grade

Omar Babar – 12th grade

Kelsey Banaglorioso – 12th grade

Kyle Beckman – 12th grade

Victoria Calvin – 11th grade

Margaret Campbell – 12th grade

Rhianna Campbell – 12th grade

Erica Chan – 12th grade

Patricia Coy – 12th grade

Chloe Diaz – 11th grade

Yannah Louis Dumandan – 12th grade

Francheska Durias – 11th grade

Megan Ferrari – 12th grade

Kevin Gangavarapu – 10th grade

Cameroon Gomez – 12th grade

Grant Grimland – 12th grade

Andrea Guloy – 12th grade

Bushra Hamid – 10th grade

Lucas Harvill – 11th grade

Anh Ho – 11th grade

Brian Ingamells – 12th grade

Jaelyn Jordan – 11th grade

Nikhita Korampally – 11th grade

Caleb Lamberth – 11th grade

Brittany Le – 11th grade

Makayla Leblanc – 11th grade

Andrea Lloyd – 11th grade

Denise Mayoral – 12th grade

Brandon McAlister – 12th grade

John Mendoza – 11th grade

Adrian Mihalcea – 11th grade

Jennifer Nguyen – 11th grade

Priscila Ramirez – 11th grade

Stacey Rybicki – 12th grade

Joshua Ryncarz – 11th grade

Gabrielle Saldivar-Vela – 12th grade

Randy Thai – 12th grade

Emem Thompson – 12th grade

Nicholas Trevino – 12th grade

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Manvel High School – AP Scholar with Honor

Granted to students who receive an average score of at least

3.25 on all AP Exams taken, and scores of 3 or higher on four

or more of these exams:

Anthony Fernando – 12th grade

Yussra Hamid – 11th grade

David Mei – 12th grade

Paola Obispo – 10th grade

Zachary Richardson – 12th grade

Laura Rybicki – 11th grade

Linsey Thai – 12th grade

Patricia Thai – 11th grade

Manvel High School – AP Scholar with Distinction

Granted to students who receive an average score of at least 3.4

on all AP Exams taken, and scores of 3 or higher on five or

more of these exams:

Isa Arce – 11th grade

Sofia Catalan – 12th grade

Aditya Chemudupaty – 12th grade

Quang Duong – 11th grade

Maya Hughley – 12th grade

Victor Leyja Benavides – 12th grade

Karla Leyja Benavides – 11th grade

Obet Montalvo – 11th grade

Roderick Mullen – 11th grade

Storie Nivers – 12th grade

Chinwe Obudulu – 12th grade

Gihan Ponweera – 12th grade

Stephen Qing – 12th grade

Anthony Randazzo – 12th grade

Andrew Riha – 12th grade

Scott Rohren – 11th grade

Elizabeth Roudbari – 11th grade

Logan Shoemaker – 12th grade

Sheryl Soundar – 11th grade

Tung Truong – 12th grade

Gabriel Viernes – 11th grade

Gayatri Viswanathan – 12th grade

Manvel High School – National AP Scholar

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Granted to students in the United States who receive an

average score of at least 4 on all AP Exams taken, and scores of

4 or higher on eight or more of these exams.

Quang Duong – 11th grade

Victor Leyja Benavides – 12th grade

Chinwe Obudulu - 12th grade

Andrew Riha -12th grade

Manvel High School – AP International Diploma

Granted to students who receive scores of 3 or higher on five or

more AP exams in three or more subject areas.

Logan Shoemaker – 12th grade

Region High School Choir

Alvin High School and Manvel High School choir students audition for Region 17 area solo. The following students will advance to Region 17 Regional auditions in November.

Representing Alvin High School: Alecia Ramirez (9th grade) Chair 23

Mackenzie Savage (9th Grade) Chair 20 Josie Shaffner (11th Grade) Chair 22 Kristopher Morris (9th Grade) Chair 3

Noah Bartley (9th Grade) Chair 3 Benjamin Miller, (9th Grade) Chair 12

Alvin High School Choir Director: Rebekah Terwilliger High

Representing Manvel High School: Miriam Green, (12th Grade) Chair 6 Alexandria Rawley (12th Grade) Chair 23

Victoria Santana (10th grade) Chair 20 Glydel Obate Chair 14

Tatyana Lobo Chair 24 (Tah-tee-AH-nah LOH-boh) Abbey Vollman Chair 24 John Cao (9th grade) Chair 4 (John Chow)

Kayse Musse (12th grade) Chair 5 (KAY-see MYOO-see)

Aaron Ealdama Chair 12 Aaron Ealdama (Aaron Ahl-DAH-mah)

John Gaviola (10th grade) Chair 14 (John Ga-vee-OH-lah)

Michael Lombardi (9th grade) Chair 18 Justino Vasquez (11th grade) Chair 2

Manvel High School Choir Director: John Gallagher District Vocal Specialist - Brenda Music

8

Meredith Mooney – Voya Award Through the Voya Unsung Heroes program, Voya Financial awards grants to K-12 educators nationwide to honor their innovative teaching methods, creative educational projects, and

the ability to positively influence the children they teach. Selected from a group of more than 1,000 applicants, Mooney is

one of only 100 winners across the country who received a $2,000 award to help fund and bring to life her creative idea,

Opera Alive: Song, Story, Art. On November 29, a secret celebration was planned under the guise of an academic pep rally. Students from Duke Elementary filled the cafeteria and

the Nolan Ryan Jr. High band took the stage. A representative from Voya Financial surprised Mrs. Mooney by announcing that

she was the third place winner of the national contest. Mrs. Mooney and Duke Elementary were presented with a $7,000.00 grant to support Opera Alive.

Last month, The Alvin ISD Business Office received a

commendation for their success, acknowledged by receiving the Certificate of Achievement for Excellence in Financial Reporting.

The business and budgetary practices of Alvin ISD have resulted in two additional recognitions.

Distinguished Budget Presentation Award The Government Finance Officers Association of the United

States and Canada has announced that Alvin ISD received the GFOA’s Distinguished Budget Presentation Award by meeting the highest principles of governmental budgeting. The award

guidelines are designed to assess how well an entity’s budget serves as a policy document, a financial plan, an operations

guide, and a communications device. Meritorious Budget Award

In addition, Alvin ISD was presented the Association of School Business Officials International Meritorious Budget Award for excellence in budget presentation during the 14-15 budget

year.

The Meritorious Budget Awards program promotes and recognizes excellence in school budget presentation and enhances school business official’s skills in developing,

analyzing, and presenting a school system budget. After a rigorous review by professional auditors, the award is conferred only on school districts that have met or exceeded the

program’s stringent criteria.

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This evening, to accept the commendation for the awards we

have Sonja Hockin, Budget Analyst for Alvin ISD. Sonja would like to express that a tremendous amount of team

work went into receiving these awards. She would also like to thank Brent Shaw and Giovanna Hamby for all of their assistance throughout the process.

District Goal(s) None

Budget Implications

None


That a commendation be presented to the students listed above.

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Agendum

Financial Audit Presentation

Category Susan Wilson, Chief Financial Officer

Resource Personnel Susan Wilson, Chief Financial Officer

Attachments None

Rationale The 2013 – 2014 Financial Audit is being presented by Whitley-Penn LLP the District’s external auditor.

District Goal(s) Fiscal Responsibility

Budget Implications

None


None

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ALVIN INDEPENDENT SCHOOL DISTRICT TABLE OF CONTENTS Page Exhibit Introductory Section

Principal Officials and Advisors i Certificate of the Board ii Transmittal Letter iii GFOA Certificate of Achievement x ASBO Certificate of Excellence xi Organizational Chart xii

Financial Section

Independent Auditor’s Report 1 Management’s Discussion and Analysis 7 Basic Financial Statements:

Government-wide Financial Statements: Statement of Net Position 18 A-1 Statement of Activities 19 B-1

Governmental Fund Financial Statements: Balance Sheet 20 C-1 Reconciliation of Balance Sheet for Governmental Funds to

Statement of Net Position 23 C-2 Statement of Revenues, Expenditures, and Changes in Fund

Balances 24 C-3 Reconciliation of the Statement of Revenues, Expenditures, and

Changes in Fund Balances for Governmental Funds to the Statement of Activities 26 C-4

Proprietary Fund Financial Statements: Statement of Net Position 27 D-1 Statement of Revenues, Expenses, and Changes in Fund Net

Position 28 D-2 Statement of Cash Flows 29 D-3

Fiduciary Fund Financial Statements: Statement of Fiduciary Net Position 30 E-1

Notes to the Financial Statements 31 F-1 Required Supplementary Information:

Budgetary Comparison Schedule - General Fund 57 G-1 Notes to Required Supplementary Information 58 G-2

Other Supplementary Information: Combining Fund Statements:

Non-major Governmental Funds: Combining Balance Sheet 62 H-1 Combining Statement of Revenues, Expenditures, and Changes

in Fund Balances 68 H-2 Internal Service Funds:

Combining Statement of Net Position 76 H-3 Combining Statement of Revenues, Expenses, and Changes in

Fund Net Position 78 H-4 Combining Statement of Cash Flows 80 H-5

Statement of Changes in Assets and Liabilities – Agency Funds 82 H-6

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ALVIN INDEPENDENT SCHOOL DISTRICT TABLE OF CONTENTS (continued)

Page Exhibit Required TEA Schedules:

Schedule of Delinquent Taxes Receivable 84 J-1 Budgetary Comparison Schedule - Child Nutrition Fund 86 J-4 Budgetary Comparison Schedule - Debt Service Fund 87 J-5

Statistical Section (Unaudited) Table Net Position by Component 92 1 Change in Net Position 94 2 Fund Balance s of Governmental Funds 96 3 Changes in Fund Balances of Governmental Funds 98 4 Assessed Value and Estimated Actual Value of Taxable Property -

Combined 101 5 Property Tax Rates - Direct and Overlapping Governments 102 6 Principal Taxpayers 104 7 Property Tax Levies and Collections 105 8 Outstanding Debt by Type 106 9 Ratios of net General Obligation Bonded Debt Outstanding 107 10 Direct and Overlapping Governmental Activities Debt 109 11 Legal Debt Margin Information - Combined 110 12 Demographic and Economic Statistics 112 13 Principle Employers 113 14 Full-Time Equivalent District Employees by Position 115 15 Operating Statistics 116 16 Teacher Base Salaries 119 17 School Building Information 120 18 Attendance Data 126 19

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Trustee Office Date Elected Term Expires OccupationCheryl Harris President May 2012 May 2015 Social WorkNicole Tonini Vice-President May 2013 May 2016 HomemakerRegan Metoyer Secretary May 2012 May 2015 ACC AdministratorTiffany Wennerstrom Trustee May 2013 May 2016 Former EducatorEarl Humbird Trustee May 2014 May 2017 Plant OperatorVivian Scheibel Trustee May 2014 May 2017 Pre-Sales Mike Lansford Trustee May 2012 May 2015 Insurance Agent

Years of ServiceOfficial Position Total District

Vacant SuperintendentTommy King Interim Superintendent 37 26Dr. Elizabeth Veloz Deputy Superintendent of Academics 22 12Dr. Loree Bruton Assistant Superintendent of Federal & Special Program 6 22Vacant Assistant Superintendent of Human ResourcesSusan Wilson Chief Financial Officer 26 22Pat Miller Chief Operations Officer 14 14Cheryl Ryan Director of Finance 22 8

Andrews Kurth, LLP, Houston, Texas BOSC, Inc., Houston, TexasBond Counsel Financial Advisor

Whitney-Penn, LLP Houston, TexasIndependent Auditors

Consultants and Advisors

Administrative Officials

Board of Trustees

PRINCIPAL OFFICIALS AND ADVISORS

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CERTIFICATE OF THE BOARD

Alvin Independent School District Brazoria 020-901 Name of School District County Co.– Dist. No.

We, the undersigned, certify that the attached annual financial reports of the above named school district

were reviewed and approved for the fiscal year ended June 30, 2014, at a meeting of the board of trustees

of such school district on November 11, 2014.

______________________________________ ___________________________________

President of Board Secretary of the Board

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301 E. House St. Alvin, TX 77511 Phone 281-245-2481 Fax 281-331-1693

iii

ALVIN INDEPENDENT SCHOOL DISTRICT

November 11, 2014 To the Board of Trustees and Citizens of the Alvin Independent School District: The Texas Education Code requires that all school districts file a set of financial statements with the Texas Education Agency (TEA) within 150 days of the close of each fiscal year. The financial statements must be presented in conformity with the generally accepted accounting principles (GAAP) and audited by a firm of licensed certified public accountants in accordance with generally accepted auditing standards. Pursuant to this requirement, we hereby issue the Comprehensive Annual Financial Report of the Alvin Independent School District (the District) for the fiscal year ended June 30, 2014. This report consists of managements’ representations concerning the finances of the District. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The financial statements of the District have been audited by Whitley Penn, LLP, a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the District for the fiscal year ended June 30, 2014, are free of material misstatement. The independent audit involves examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit that there was a reasonable basis for rendering and unmodified opinion that the District’s financial statements for the year ended June 30, 2014 are fairly presented in conformity with GAAP. The independent auditors’ report is presented as the first component of the financial section of this report. The independent audit of the financial statements is part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditors to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports may be found in the Federal Awards section of a separately issued report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The District’s MD&A can be found immediately following the report of the independent auditors.

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PROFILE OF THE DISTRICT The Alvin Independent School District was established on May 28, 1925. The District is an independent public educational agency operating under applicable laws and regulations of the state of Texas providing a full range of educational services appropriate to grade levels ranging from pre-kindergarten through grade twelve. Alvin ISD is located in Brazoria County, Texas, 25 miles southeast of Houston at the intersection of State Highway 6 and IH35. Alvin ISD spans 250 square miles and encompasses the cities of Alvin, Manvel, Iowa Colony, Liverpool, Rosharon, and Pearland. Alvin ISD continues to be the fastest growing District in the Houston Area. During the 2013-2014 school year, more than 900 new students, one hundred more than last years’ increase, were in attendance within the school District. AISD currently serves an average daily attendance of 18,550 students which is 19.8% higher than 15,478 students served five years ago. The District is comprised of two high schools, one career and technical education facility, one academic alternative school, one behavior alternative school, five junior high schools and fifteen primary/elementary schools. Currently construction is underway with the sixth junior high school which is scheduled to open in 2015, the third high school to open in 2016, and land has been acquired for the seventeenth elementary. The ages of the school buildings range from zero to forty-five years.

GOVERNING BODY The seven members of the Board of Trustees (Board) serve, without compensation, a three year term. While on a rotating basis, elections are held the first Saturday in May for either two or three positions each year. Any potential vacancies may be filled by appointment until the next election. Candidates must be qualified voters of the District. Regular meetings are scheduled the second Tuesday of the month and are held in the Board room at the Administrative building. Special meetings and workshops are scheduled as needed and announced in compliance with public notice requirements. The Board has final control over local school matters limited only by the state legislature, by the courts, and by the will of the people as expressed in school Board elections. Board decisions are based on a majority vote of those present. In general, the Board adopts policies, employs the Superintendent, and oversees the operations of the District and its schools. Besides general Board business, Trustees are charged with numerous statutory regulations including calling trustee and other school elections and canvassing the results, organizing the Board and electing its officers. The Board is also responsible for setting the tax rate, setting salary schedules, acting as a board of appeals in personnel and student matters, confirming recommendations for textbook adoptions, and adopting and amending the annual budget.

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MISSION, VISION & CORE BELIEFS Alvin ISD is a public school system whose mission is “…to offer exemplary programs enabling all students to possess the ability to learn for the rest of their lives and become productive citizens.” With over thirty different languages represented within the District, AISD’s Vision statement recognizes the diversity of being “a dynamic learning organization committed to the excellence for all students and every program.” It is the commitment of the District, to provide engaging learning opportunities and to build positive relationships with the students and their families, that has the faculty and staff members guided by the five Core Beliefs:

I. Trusting relationships in a safe and caring environment are vital to an innovative learning organization

II. A learning organization focused on excellence will continually transform to the best suit the needs of our students and community

III. Through community support and engagement, quality public schools build and preserve a healthy democratic society.

IV. Every student is uniquely capable and deserves to be provided engaging, challenging and meaningful work.

V. Each student should be empowered to realize the opportunities that they have as 21st century leaders.

ECONOMIC CONDITION AND OUTLOOK Located southeast of the Houston area, Alvin ISD resides within the Houston Metropolitan Statistical Area; the fifth largest in the Nation. With Texas’ economy outperforming that of the Nation’s, Houston is not only benefiting from the energy boom but also the increase in new construction and property values. The West end of the District, primarily where Alvin ISD’s growth is; is just miles from Houston’s medical center making it a prime location for not only the medical center but also the petro-chemical industry within the surrounding area as well. Hence, the increase in the new housing market within Alvin ISD. Since 2000, the District has experienced an approximate growth 73% in student population. Over the last ten years, property values have increased from $3.5 billion to over $7.7 billion. Although the recession slowed the continuous growth a bit, the constant demand for additional schools has remained steady over the last six years due to an average student growth of approximately 4.4%. This increase in students and values is reflective of the Tax Increment Reinvestment Zone (TIRZ) that the District entered into in 1999. Another positive growth opportunity for Alvin ISD lies with the port of Freeport. With the Foreign-Trade Zone, the Freeport Harbor Channel Improvement project (deepening and widening project) and the Panama Canal expansion, there will be more opportunities for additional jobs at the port of Freeport and surrounding areas which will add to the growth within the most southern part of the District’s West side.

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GROWTH In effort to accommodate the continued increase of students, in one of the fastest growing school districts in the Houston metropolitan area, the District has put plans in place to add additional facilities and update current buildings to fit the needs of 21st century learners. Alvin ISD is able to keep up with the demands and needs of the students, thanks to community support in past school bond elections. The 2013 school bond election enabled the District to begin construction on the District’s third high school, the replacement a junior high school, replacement of an elementary campus, renovate one of five junior high schools, design and construct a new agriculture facility as well as providing funds for the a new Career and Technology Education center.

BUDGETARY PROCESS State law requires that every local education agency in Texas prepare and file an annual budget of anticipated revenues and expenditures with the Texas Education Agency. The annual budget serves as the foundation for the District’s financial planning and control. The budget process must include budgeting for the General Fund, Debt Service Fund, and the Child Nutrition Fund. Each year, the Board of Trustees and the Superintendent begin the budget process by reviewing the goals that establish the basis for budgeting available resources. Considering the fast-growth environment, the economic conditions, the changes in accountability standards and the change in student population, the District makes it a priority to analyze and adjust the programmatic structure to best meet the needs of the students. As the budgets are developed by each campus and department, the District and Campus Improvement Plans are considered in the needs assessments. The budgets represent a balance between the educational needs of the students and programs and the ability of the community and the State of Texas (State) to provide the necessary financial resources. Each year, the budget process officially begins in October with the preparation of the budget calendar for the upcoming year. During October, the demographer study allows the District to begin looking at growth rates, trends, and economic conditions affecting the district. The forecasting then is able to be utilized in staffing allotments and in campus budget financial allotments. Through the course of the spring each year, the campuses and departments begin formulating the needs assessments and requests for the following budget. Consolidated budgeting information is then presented to the Superintendent’s Cabinet and to the Board of Trustees in various workshops and meetings. With a July 1 fiscal start date, the budget must be approved by June 19th each year.

FINANCIAL PLANNING Major revenue sources include local property taxes, state funding from Foundation School Program (FSP) and Available School Fund (ASF), interest income, and miscellaneous income including gate receipts and supplemental income. In order to ensure that Alvin ISD will have sufficient resources to cover the expenditures that will be added in the next several years, it has been the District’s practice to complete a three-year forecast of revenues and expenditures. In an environment where the revenue funding formula can change significantly, based on legislative action every two years, there are some heavy assumptions in these calculations.

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Alvin ISD utilizes more than one method for forecasting revenues. Local taxable values are assumed to increase 8% for the next three years. In addition, the annual student enrollment growth continues to rise. The average daily attendance is expected to increase 4.5% in the fiscal year 2014-15 and 5.5% in the following two years. Revenue Assumptions

1. As student enrollment growth continues to rise, the amount of staffing growth is being adjusted. 2. As seen in other school districts, the impact from state funding changes from SB1 of the 2011

Legislative Session have had a dramatic influence on future funding. 3. The increase from the 2013 Legislative Session will help smooth-out some of the loss to revenue

in the previous biennium. (Please see discussion in the Organization Section – Legislative Impacts).

Expenditure Assumptions

1. Alvin ISD will continue to maintain its allocation of campus budgets. 2. In order to meet the growing enrollment needs, staffing positions will need to be added by using

the Weighted Average Staff Allocation (WASA) method. This new system will allow the District to remain within budget guidelines without overspending.

3. Those expenditures not directly impacting instructional needs will be analyzed yearly

FUND BALANCE During the 2013-14 school year, there were 25 authorized budget amendments from general fund balance totaling $23,227,653. Although several of these were routine amendments, a number of them were for capital improvements and projects that included: Land Purchase, District-wide Safety & Security Radios Purchase, 3 Modular Buildings from Manvel High School, Buses, Technology, Safety & Security Vestibules, and CTE FFE at Alvin High School. In projecting needs for future financial resources, the approach that Alvin ISD has selected is to first consider the students, with their program needs, that we will have the privilege to serve in the next several years. For projecting fund balance needs, an underlying principal for financial solvency and for considerations for credit ratings, is to utilize the newly modified local board policy, CE (Local). Also, Government Finance Officers Association (GFOA), in 2009, released a best practice and advisory concerning financial management in governmental entities. Their recommended practices mention that adequate fund equity will vary based on unique circumstances. Additionally, Texas Association of School Business Officials (TASBO) released a recommended best practice in 2012 titled, “Appropriate Level of Fund Balance in the General Fund”. In the TASBO article, it states “The trend for fund balance in the General Fund provides insight into the level of consistency in following sound financial management practices by executive management and the board of trustees.” And in the conclusion of the paper, it states: “The overall fast growing student enrollment in Texas demands the best possible financial ratings to benefit lowered long-term debt costs related to the facilities, equipment and technology in the public education infrastructure.” The conclusion continues by stating, “An adequate fund balance helps a school district minimize various risks caused by uncontrollable factors and focus on the primary purpose of instructing students.” When a district, such as Alvin ISD, is in a high-growth part of their history, it is recommended and customary to stay closer to the 90 days of operating expenditures as the unassigned portion of their projected financial plan.

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AWARDS The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the District for its CAFR for the fiscal year ended June 30, 2013. This was the first year that Alvin ISD produced a CAFR and it was the first year to receive this prestigious award. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report. The report must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current Comprehensive Annual Financial Report continues to meet the requirements of the Certificate of Achievement program for which this report will be submitted to the GFOA to determine its eligibility for certification. The District was also awarded the Certificate of Excellence in Financial Reporting by the Association of School Business Officials International (ASBO) for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2013. Once again, this was the first year Alvin ISD completed a CAFR and submitted it for yet another prestigious award. We believe that our current Comprehensive Annual Financial Report continues to conform to the standards for which this award was granted and will be submitting it again. Additionally, the District just received news that the GFOA awarded the Distinguished Budget Presentation Award for the fiscal year beginning July 1, 2014. This is the second consecutive year the District has received this award. In order to receive this award, Alvin ISD published an easily readable and efficiently organized budget. This report satisfied both GAAP and applicable legal requirements. In addition, the District was awarded the Meritorious Budget Award, for the second consecutive year, by the Association of School Business Officials International (ASBO) for the fiscal year beginning July1, 2014. This is a national award which is given for the standard of excellence in budget presentation. Both the Distinguished Budget Presentation Award and the Meritorious Budget Award are valid for a period of one year. We believe our current budget and practices continue to meet both programs’ requirements as we continue to submit for these respected certificates. The FIRST (Financial Accountability Rating System of Texas) program, a financial accountability system for Texas school districts was developed by the Texas Education Agency in response to Senate Bill 218 of the 77th Texas Legislature in 2001. The TEA has awarded the District a rating of “Superior Achievement” for the year ended June 30, 2013. The District has been awarded the “Superior Achievement” rating under Texas’ Schools FIRST financial accountability rating system each year since inception which is twelve consecutive years. The rating is based upon an analysis of student and staff data reported for the 2012-2013 school year and budgetary and actual financial data for the fiscal year ended June 30, 2013. The primary goal of FIRST is to achieve quality performance in the management of school districts financial resources, a goal made more significant due to the complexity of accounting associated with the Texas school finance system. The “Superior Achievement” rating is the state’s highest financial rating, demonstrating the quality of AISD’s sound fiscal management.

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ACKNOWLEDGEMENTS We appreciate the support of the Board, the residents of the District, and the business community, all who work cooperatively to ensure the best education for its students and the prudent development of the District. This cooperation is indicative of the strong support for the attainment of excellence in the District’s educational programs. Also, we would like to express an appreciation to all employees of the District’s schools for their interest and support in planning and conducting the financial affairs of the District in a responsible and progressive manner. Finally, a special thanks to the Finance Department for its diligence and dedicated service in helping prepare this report on a timely basis. Respectfully submitted, Tommy King Susan Wilson Interim Superintendent Chief Financial Officer Cheryl Ryan Director of Finance

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FINANCIAL SECTION

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INDEPENDENT AUDITOR’S REPORT To the Board of Trustees Alvin Independent School District Alvin, Texas Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Alvin Independent School District (the “District”), as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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Board of Trustees Alvin Independent School District

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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the District, as of June 30, 2014, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that required supplementary information, such as management’s discussion and analysis and budgetary comparison information on pages 7-14 and 55-56 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements. The other supplementary information such as, the combining and individual nonmajor fund financial statements, and compliance schedules, and the other information, such as the introductory and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. DRAFT

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The combining and individual nonmajor fund financial statements, compliance schedules, as listed in the table of contents are the responsibility of management and were derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements, compliance schedules is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any issuance on it. Other Reporting Required By Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 11, 2014, on our consideration of the District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance. Houston, Texas November 11, 2014

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MANAGEMENT’S DISCUSSION AND ANALYSIS

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ALVIN INDEPENDENT SCHOOL DISTRICT MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)

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As management of the Alvin Independent School District (District), we offer readers of the District’s financial statements this narrative overview and analysis of the financial activities of the District for the fiscal year ended June 30, 2014. Financial Highlights • The assets and deferred outflows of the District exceeded its liabilities at the close of the fiscal year

by $139,516,262 (net position). Of this amount, $89,138,644 (unrestricted net position), or may be used to meet the District’s ongoing obligations to students and creditors.

• The District’s total net position increased by $24,915,133. The factors that substantially contributed to the increase in net position were additional revenue from state aid and property taxes.

• As of the close of the current fiscal year, the District’s governmental funds reported combined ending fund balances of $280,881,150, an increase of $172,235,452 in comparison with the prior year. The increase in governmental fund balances was primarily due to issuance of construction bonds resulting in the increase in capital projects fund of $164,877,025. The general fund balance increased by $4,572,321, which was attributed to the increase in state aid and increase in property tax assessed values.

• At the end of the current fiscal year, unassigned fund balance for the general fund was $17,057,409, or 11 percent of total general fund expenditures.

• The District’s total debt increased by $170,091,348 during the current fiscal year.

Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the District’s basic financial statements. The District’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains required supplementary information and other supplementary information in addition to the basic financial statements. Government-wide Financial Statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector business. The Statement of Net Position presents information on all of the District’s assets plus deferred outflows of resources and liabilities plus deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. The Statement of Activities presents information showing how the District’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused sick leave). The government-wide financial statements of the District are principally supported by taxes and intergovernmental revenues (governmental activities). The governmental activities of the District include Instruction, Instructional Resources and Media Services, Curriculum and Instructional Staff Development, Instructional Leadership, School Leadership, Guidance, Counseling, and Evaluation Services, Social Work Services, Health Services, Student Transportation, Food Services, Cocurricular/Extracurricular Activities, General Administration, Plant Maintenance and Operations, Security and Monitoring Services, Data Processing Services, Community Services, Interest on Long-term Debt, Bond Issuance Costs and Fees, Facilities Acquisition and Construction, Payments to Juvenile

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Justice Alternative Education Programs and Payments to Tax Increment Fund. The government-wide financial statements can be found on pages 18 through 19 of this report. Fund Financial Statements are a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the District can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a District’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the District’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The District maintains twenty-two individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, debt service fund, and the capital projects fund, all of which are considered to be major funds. Data from the other nineteen governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in the financial statements. The District adopts an annual appropriated budget for its general fund, debt service fund, and National School Breakfast and Lunch Program special revenue fund. The basic governmental fund financial statements can be found on pages 20 through 26 of this report. Proprietary Fund - The District maintains five internal service funds, one type of proprietary fund. Internal service funds are an accounting device used to accumulate and allocate costs internally among the District’s various funds and functions. The District uses internal service funds to report activities for its self-funded insurance programs and print shop and they have been included within governmental activities in the government-wide financial statements. Proprietary fund statements provide the same type of information as the government-wide financial statements, only in more detail. The internal service fund financial statements provide separate information for the Print Shop, Health Insurance, Worker’s Compensation Self-Insurance Funds, Property & Casualty Insurance and Health & Workers’ Compensation Fund. The basic proprietary fund financial statements can be found on pages 27 through 29 of this report. Fiduciary Funds are used to account for resources held for the benefit of parties outside of the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the District’s own programs. The district is only responsible for ensuring that the assets reported in these funds are used for their intended purposes.

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The basic fiduciary fund financial statement can be found on page 30 of this report. Notes to the Financial Statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 31 through 54 of this report. Required Supplementary Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information that further explains and supports the information in the financial statements. The required supplementary information relates to comparison of the original adopted budget, the final amended budget, and the actual amounts for the fiscal year. This is required supplementary information for the general fund and any major special revenue funds. The District did not have any major special revenue funds; therefore, only the general fund is presented as required supplementary information. The required supplementary information can be found on pages 57 through 58 of this report. Other Information. The combining and individual fund statements and schedules and other supplementary information are presented immediately following the required supplementary information and can be found on pages 60 through 79 of this report. Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a District’s financial position. In the case of the District, assets and deferred inflows exceeded liabilities by $139,516,262 at the close of the most recent fiscal year. The District’s net investment in capital assets, net position (e.g., land, buildings and improvements, furniture and equipment, construction in progress), was $41,087,905 less any outstanding related debt used to acquire those assets. The District uses these capital assets to provide services to students; consequently, these assets are not available for future spending. Although the District’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

2014 2013

Current and other assets 320,162,351$ 146,771,174$ Capital assets 335,598,298 309,980,431Total Assets 655,760,649 456,751,605Total Deferred Outflows of Resources 5,782,550 6,372,318 Current liabilities 33,389,302 30,129,179Long term liabilities 488,637,635 318,393,615Total Liabilities 522,026,937 348,522,794Net Position:

Net investment in capital assets 41,087,905 21,284,487Restricted 9,289,713 10,362,221Unrestricted 89,138,644 82,954,421

Total Net Position 139,516,262$ 114,601,129$

Alvin Independent School District's Net Position

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Net position of $9,289,713 is restricted for federal and state programs, food service, and debt service. The remaining balance of unrestricted net position of $89,138,644 may be used to meet the District’s ongoing obligations to students and creditors. At the end of the current fiscal year, the District is able to report positive balances in all three categories of net position. The District's net position increased by $24,915,133 during the current fiscal year primarily due to an increase in state aid and property taxes revenues.

2014 2013

Program Revenues

Charges for services 5,663,041$ 5,223,410$ Operating grants 21,842,203 18,025,169

General RevenuesProperty taxes 76,079,560 69,807,423 State aid 122,790,907 85,077,386 Grants and contributions not restricted 2,984,489 1,503,832 Interest earnings 290,921 171,643 Other 851,913 720,667

Total Revenues 230,503,034 180,529,530

ExpensesInstruction 101,757,339 84,121,811 Instructional resources and media services 3,095,140 2,567,700 Curriculum and staff development 1,360,882 878,941 Instructional leadership 3,335,201 2,456,964 School leadership 9,124,317 6,883,810 Guidance, counseling, and evaluation services 5,377,089 4,193,897 Health services 1,324,532 1,162,180 Student transportation 8,528,836 7,037,459 Food service 10,543,386 8,613,383 Extracurricular activities 5,674,403 4,171,298 General administration 6,596,383 5,056,372 Plant, maintenance and operations 14,629,992 10,390,945 Security and monitoring services 1,737,701 1,414,771 Data processing services 5,294,507 4,555,413 Community services 326,154 292,866 Interest and fiscal charges on long-term debt 16,814,512 11,481,012 Facilities repair and maintenance 983,798 255,730 Payments related to shared services arrangements 3,519,612 2,885,736 Payments to Juvenile Justice Alternative Education Programs 15,700 14,800 Payments to Tax Increment Fund 5,548,417 5,412,702

Total Expenses 205,587,901 163,847,790 Change in Net Position 24,915,133 16,681,740 Beginning Net Position 114,601,129 97,919,389 Ending Net Position 139,516,262$ 114,601,129$

Alvin Independent School District's Changes in Net Position

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Governmental Activities increased the District’s net position by $24,915,133. Key elements of this increase are as follows:

Revenues are generated primarily from three sources. Grants and contributions program and general revenues totaling $24,826,692 represent 11% percent of total revenues, state aid totaling $122,790,907 represents 53 percent of total revenue and property taxes $76,079,560 represent 33 percent of total revenues. The remaining revenues $6,805,875 are generated from charges for services, investment earnings, and miscellaneous revenues. Higher tax revenues were primarily the result of an increase in the District’s assessed values and state aid increased revenue was due to additional student attendance. The primary functional expense of the District is instruction $101,757,339, which represents 50 percent of total expenses. Plant maintenance and operations $14,629,992 represents 7 percent of total expenses. The Interest and fiscal charges on long-term debt $16,814,512 represents 8 percent of total expenses. The remaining individual functional categories of expenses are each 6 percent or less of total expenses.

Financial Analysis of the Government's Funds As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds. The focus of the District’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the District’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a District's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the District’s governmental funds reported combined ending fund balances of $280,881,150, an increase of $172,235,452 in comparison with the prior year. The general fund is the chief operating fund of the District. At the end of the current fiscal year, unassigned fund balance of the general fund was $17,057,409, while total fund balance reached $76,684,067. As a measure of the general fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 11 percent of total general fund expenditures, while total fund balance represents 49 percent of that same amount. The fund balance of the District’s general fund increased by $4,572,321 during the current fiscal year primarily due from increased state aid and property tax revenues. The debt service fund has a total fund balance of $11,961,471, all of which is restricted for the payment of debt service. The net increase in the debt service fund balance during the current year totaled $3,024,102 due to an increase state aid and property tax revenues. The capital projects fund has a total fund balance of $186,886,046. The net increase in fund balance of $164,877,025, is primarily due to the issuance of construction bonds. The fund balance is restricted for future construction projects.

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The District’s proprietary fund financials statement provides detail information about the profitability of the print shop, health insurance and workers’ compensation and property and casualty insurance funds. The net change in assets of these funds are eliminated and allocated to the governmental expenses in the government-wide financial statements. General Fund Budgetary Highlights Over the course of the year, District personnel recommended, and the Board of Trustees approved, several revisions to the budgeted revenue and appropriations. Revisions to the revenue budget are necessary due to changes in estimates for local and state revenue based on updated information concerning student attendance and tax collections. Revisions to appropriations are necessary due to the increase in district growth, changes in staffing and spending needs and various long-term projects which are established based on the student growth. The District’s major budget amendments during the year are summarized as follows:

Fund balance was decreased by $8,600,000 for authorized projects voted upon by the citizens of Alvin ISD during the 2013 Bond Election.

Fund balance was decreased by $398,772 for a District Communication System. This system will allow for a more reliable communications which will provide enhanced safety and security of students and staff.

Fund balance was decreased by $500,000 for Career and Technology (CTE) audio video, curriculum equipment and furniture, fixture and equipment (FFE) upgrades at Alvin High School.

Fund balance was decreased by $11,300,000 with funds being transferred to a Capital Projects fund for bond projects originally approved by voters. This will result in not having to sell $11.3 million of the 2013 authorized bonds which taxpayers will see a net savings of $29.8 million over the life of the bonds.

Fund balance decreased by $959,715 for 55 acres of land which included 20 acres being donated. This land acquisition will be used for future school campus(es).

Capital Assets and Debt Administration Capital Assets - The District’s investment in capital assets for its governmental type activities as of June 30, 2014, amounts to $335,598,298 (net of accumulated depreciation). This investment in capital assets includes land, buildings and improvements, furniture and equipment and construction in progress. The total increase of $25,617,867 in the District’s investment in capital assets for the current fiscal year was 8 percent change. Major capital asset events during the current fiscal year included the following:

Begin construction of High School #3

Begin construction of Manvel Junior High School – re-build on new site

Begin designing and planning for Alvin Junior High School expansion and renovations

School bus and band equipment purchases

Instructional technology upgrades

District-wide communications upgrades

Safety and security vestibules

Band and choir uniforms

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Portable classrooms

CTE curriculum equipment

Land acquisition

Balance Retirements Balance2013 Additions and Transfers 2014

Land 35,968,959$ 191,732$ -$ 36,160,691$ Construction in progress 5,164,161 22,364,802 (4,483,778) 23,045,185

Buildings and improvements 336,674,500 11,221,444 4,008,650 351,904,594 Furniture and equipment 29,468,641 3,474,401 (360,040) 32,583,002

407,276,261 37,252,379 (835,168) 443,693,472 Less accumulated depreciation for:

Buildings and improvements (81,155,353) (9,052,295) 475,130 (89,732,518) Furniture and equipment (16,140,477) (2,497,284) 275,105 (18,362,656)

(97,295,830) (11,549,579) 750,235 (108,095,174) Governmental Capital Assets 309,980,431$ 25,702,800$ (84,933)$ 335,598,298$

Alvin Independent School District's Capital Assets

Additional information on the District’s capital assets can be found in Note 4 on pages 42 through 43 of the notes to the financial statements. Long-term Debt - At the end of the current fiscal year, the District had $463,780,000 in bonded debt outstanding, an increase of $156,235,000 over the previous year, attributed to construction bonds issuance. The District’s bonds are sold with an “AAA” rating and are guaranteed through the Texas Permanent School Fund Guarantee Program or by a bond insurance policy. The underlying rating of “AA” from Fitch and the “Aa2” from Moody's Investors Service reflect the District’s growing and diverse tax base; favorable debt practices with sound capital planning necessary given the fast growing nature of the school district and satisfactory financial operations. Changes to long-term debt, for the fiscal year ended June 30, 2014, are as follows:


General obligation bonds 304,620,000$ 166,050,000$ (9,280,000)$ 461,390,000$ Bond issuance premiums 9,497,626 14,776,573 (920,225) 23,353,974 Maintenance tax notes 2,925,000 - (535,000) 2,390,000 Accrued compensated absences 1,350,989 219,239 (66,567) 1,503,661

318,393,615$ 181,045,812$ (10,801,792)$ 488,637,635$

Additional information on the District’s long-term liabilities can be found in Note 6 on pages 44 through 46 of the notes to the financial statements.

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Economic Factors and Next Year's Budgets and Tax Rates The District’s elected and appointed officials consider many factors when preparing the fiscal-year 2015 general fund budget. The adopted budget is based on the following significant assumptions:

The District’ current enrollment growth for the fall of 2014 passed the projected increase of 4.7%. Enrollment growth climbed to 5.1% which added 1,009 students to the start of the 2014 school year for a total of 20,818 students.

Five year enrollment projections predict that the District will have 5,171 more students with an enrollment of 25,989 students in the fall of 2019.

Ten year enrollment projections predict that the District will have 11,253 more students with an enrollment of 32,071 students in the fall of 2024.

Alvin ISD’s new housing will continue to be the strongest in the western portion of the district with the following campuses needed within the next ten years:

o Elementary Campuses = 7-8 additional o Jr. High School Campuses = 2-3 additional o High School Campuses = 1-2 additional

The State Comptroller’s Office reports show Texas’ unemployment rate has been at or below the national rate for 7 consecutive years.

The Federal Reserve Bank of Dallas reports that Texas remains a top state in job growth with a second quarter rate of 4.3% growth, 1.3% higher than the national average and the strongest growth rate in 9 years.

The Houston economy is benefiting from the energy boom with exports of $115 billion in goods in 2013 of which was refined petroleum and coal products per the Los Angeles Times.

According to our demographer, Templeton Demographics, Houston ranked number 6 in the top 10 cities for fast-growth companies, with 76 gat-growth companies based in the city.

Templeton Demographics also reported that in August, 2014, Houston issued 3,340 single-family housing permits. This is a 6.4% increase from August of 2013 and year-to-date multi-family permits are up 83.5% from the same period in 2013.

The Texas Comptroller’s office shows sales tax receipts increasing 2.1% for August 2013 over August 2012. Sales tax receipts have been increasing consecutively for over 3.5 years.

Tax rate for Tax Year 2014, fiscal year 2015 is $1.4170. The Maintenance and Operations portion is $1.040 and the Interest and Sinking portion is $.3770.

General Fund expenditures are currently budgeted to increase by $14,287,041 over last year’s approved budget. Major factors causing this increase include:

o Additional teaching and support positions throughout the District based upon the Weighted Average Salary Allotment (WASA) formula developed by AISD for increased enrollment. Includes salaries and benefits.

o 3% Cost of Living Adjustment o Opening of Dr. Red Duke Elementary – 15th elementary school o Increase in Health Insurance premiums o Campus and District Improvement plans

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General Fund revenues are currently budgeted to increase by $14,487,527 over last year’s approved budget.

Major factors causing the increase include:

o Increase in property taxes due to an increase in property values o Increase in state funding due to an increase in student enrollment.

Requests for Information – This financial report is designed to provide a general overview of the District’s finances for all those with an interest in the District's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the Business and Support Services, Alvin Independent School District, 301 E. House Street, Alvin, Texas, 77511.

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BASIC FINANCIAL STATEMENTS

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ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit A-1STATEMENT OF NET POSITION

June 30, 2014

Data Control Codes

Governmental Activities

Assets1110 Cash and temporary investments 273,339,777$ 1225 Property taxes receivables, net 3,770,046 1240 Due from other governments 35,705,239 1250 Accrued interest 126,419 1290 Other receivables, net 423,459 1300 Inventories 642,198 1410 Prepaid items 99,439

Capital assets not subject to depreciation:1510 Land 36,160,691 1580 Construction in progress 23,045,185

Capital assets net of depreciation:1520 Buildings and improvements, net 262,172,076 1530 Furniture and equipment, net 14,220,346 1910 Long-term investments 6,055,774 1000 Total Assets 655,760,649

Deferred Outflows of Resources

1700 Deferred charge on refunding 5,782,550 Total Deferred Outflows of Resources 5,782,550

Liabilities2110 Accounts payable 9,709,833 2140 Interest payable 7,015,869 2150 Payroll deductions and withholdings 1,292,335 2160 Accrued wages payable 11,153,213 2177 Due to others 3,180 2180 Due to other governments 1,447,457 2190 Due to student groups 309,058 2200 Accrued expenditures 2,458,357

Noncurrent Liabilities:2501 Due within one year 12,535,459 2502 Due in more than one year 476,102,176 2000 Total Liabilities 522,026,937

Net Position3200 Net investment in capital assets 41,087,905

Restricted for:3820 Federal and state programs 451,200 3840 Food service 3,141,963 3850 Debt service 5,696,550 3900 Unrestricted 89,138,644 3000 Total Net Position 139,516,262$

See Notes to the Financial Statements

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ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit B-1STATEMENT OF ACTIVITIES

For the Year Ended June 30, 2014

Data Control Codes Functions/Programs Expenses

Charges for Services

Operating Grants and

ContributionsGovernmental

ActivitiesGovernmental activities

11 Instruction 101,757,339$ 790,481$ 9,239,877$ (91,726,981)$ 12 Instructional resources and media

services 3,095,140 205,525 125,584 (2,764,031)

13 Curriculum and staff development 1,360,882 15,810 913,624 (431,448) 21 Instructional leadership 3,335,201 - 354,426 (2,980,775) 23 School leadership 9,124,317 - 689,454 (8,434,863) 31 Guidance, counseling, and

evaluation services 5,377,089 - 1,958,380 (3,418,709) 33 Health services 1,324,532 - 105,035 (1,219,497) 34 Student transportation 8,528,836 - 342,356 (8,186,480) 35 Food service 10,543,386 3,537,057 6,731,442 (274,887) 36 Extracurricular activities 5,674,403 823,834 173,312 (4,677,257) 41 General administration 6,596,383 - 392,602 (6,203,781) 51 Plant, maintenance and operations 14,629,992 274,524 548,354 (13,807,114) 52 Security and monitoring services 1,737,701 15,810 94,103 (1,627,788) 53 Data processing services 5,294,507 - 156,807 (5,137,700) 61 Community services 326,154 - 16,847 (309,307)

72Interest and fiscal charges on long-term debt 16,814,512 - - (16,814,512)

81 Facilities repair and maintenance 983,798 - - (983,798) 93 Payments related to shared

services arrangements 3,519,612 - - (3,519,612) 95 Payments to Juvenile Justice

Alternative Education Programs 15,700 - - (15,700) 97 Payments to Tax Increment Fund 5,548,417 - - (5,548,417)

TG Total governmental activities 205,587,901$ 5,663,041$ 21,842,203$ (178,082,657)

Data Control Codes

General revenues:Taxes:

MT Property taxes, levied for general purposes 59,540,947 DT Property taxes, levied for debt service 16,538,613 SF State-aid formula grants 122,790,907 GC Grants and contributions not restricted 2,984,489 IE Investment earnings 290,921 MI Miscellaneous 851,913 TR Total general revenues 202,997,790 CN Change in net position 24,915,133 NB Net position - beginning 114,601,129 NE Net position - ending 139,516,262$


Primary Government

Net (Expense) Revenue and

Changes in Net Position

Program Revenue

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20


GOVERNMENTAL FUNDS

Data Control Codes

General Fund

Debt Service

FundCapital

Projects Fund

Assets1110 Cash and temporary investments 51,571,022$ 11,722,221$ 193,944,133$

Receivables:1220 Property taxes - delinquent 4,051,855 966,360 - 1230 Allowance for uncollectible taxes (credit) (1,048,685) (199,484) - 1240 Receivables from other governments 34,157,253 185,151 - 1250 Accrued interest 64,785 - 59,908 1260 Due from other funds 927,971 62,391 - 1290 Other receivables 192,249 - - 1300 Inventories, at cost 529,633 - - 1410 Prepaid items 86,888 - - 1910 Long-term investments, at fair value 6,055,774 - - 1000 Total Assets 96,588,745$ 12,736,639$ 194,004,041$

Liabilities, Deferred Inflows, and Fund BalancesLiabilities:

2110 Accounts payable 1,986,972$ -$ 7,117,675$ 2140 Interest payable - 102,860 - 2150 Payroll deduction and withholdings payable 1,292,221 - - 2160 Accrued wages payable 10,741,751 - - 2170 Due to other funds 72,052 - 320 2180 Payable to other governments 1,422,096 24,220 - 2190 Due to student and employee groups 55,275 - - 2200 Accrued expenses 811,467 - - 2000 Total Liabilities 16,381,834 127,080 7,117,995

Deferred Inflows of Resources2600 Unavailable revenue - property taxes 2,575,369 648,088 - 2600 Unavailable revenue - SHARS 947,475 - -

Total Deferred Inflows of Resources 3,522,844 648,088 -

Fund Balances:Nonspendable:

3410 Nonspendable - inventories 529,633 - - 3430 Nonspendable - prepaid items 86,888 - -

Restricted:3450 Restricted - grant funds - - - 3470 Restricted - capital acquisitions and obligations - - 186,886,046 3480 Restricted - debt service - 11,961,471 -

Committed:3545 Committed - other 2,910,137 - -

Assigned:3590 Assigned - other 56,100,000 - -

Unassigned:3600 Unassigned 17,057,409 - - 3000 Total Fund Balances 76,684,067 11,961,471 186,886,046 4000 Total Liabilities, Deferred Inflows, and Fund Balances 96,588,745$ 12,736,639$ 194,004,041$

See Notes to Financial Statements.

June 30, 2014

BALANCE SHEET

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21

Exhibit C-1

Nonmajor Governmental

Funds

Total Governmental

Funds

5,430,857$ 262,668,233$

- 5,018,215 - (1,248,169)

1,362,835 35,705,239 - 124,693

6,481 996,843 194,050 386,299 89,409 619,042 12,551 99,439

- 6,055,774 7,096,183$ 310,425,608$

404,049$ 9,508,696$ - 102,860 114 1,292,335

411,462 11,153,213 929,851 1,002,223

1,141 1,447,457 - 55,275 - 811,467

1,746,617 25,373,526

- 3,223,457 - 947,475 - 4,170,932

89,409 619,042 12,551 99,439

3,503,321 3,503,321

- 186,886,046 - 11,961,471

1,744,285 4,654,422

- 56,100,000

- 17,057,409 5,349,566 280,881,150 7,096,183$ 310,425,608$

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22

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23

ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit C-2RECONCILIATION OF BALANCE SHEET FOR GOVERNMENTAL FUNDS TO

STATEMENT OF NET POSITION

Data Control Codes

Total fund balance, governmental funds 280,881,150$

Amounts reported for governmental activities in the statement of net position (A-1) are different because:

Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental funds.

1 Capital assets at historical cost, net of accumulated depreciation, where applicable 335,553,283

2

Property taxes receivable have been levied and are due this year, but are not available soon enough to pay for the current period's expenditures, these property taxes and related penalty and interest amounts (net of allowance for uncollectible accounts). 3,223,457

3

School health and related services (Shars) reimbursements have been submitted and are due this year, but are not available soon enough to pay for the current period's expenditures. 947,475

Long-term liabilities, including bonds payable, are not due and payable in the current period, and therefore are not reported as liabilities in the funds. Long-term liabilities at year end consist of:

4 General obligation bonds (461,390,000) 5 Premiums on issuance (23,353,974) 6 Maintenance tax notes payable (2,390,000) 7 Accrued compensated absences (1,494,086)

8 Deferred loss on refunding 5,782,550

9 Accrued interest payable (6,913,009)

10 Addition of Internal Service fund net position 8,669,416

19 Total net position - governmental activities 139,516,262$

See Notes to the Financial Statements.

June 30, 2014

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ALVIN INDEPENDENT SCHOOL DISTRICTSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCES - GOVERNMENTAL FUNDSFor the Fiscal Year Ended June 30, 2014

Data Control Codes

General Fund

Debt Service Fund

Capital Projects Fund

Revenues

5700 Local, intermediate, and out-of-state 60,646,760$ 16,559,510$ 130,736$ 5800 State program revenues 121,549,732 9,203,953 - 5900 Federal program revenues 1,796,942 466,562 - 5020 Total Revenues 183,993,434 26,230,025 130,736

ExpendituresCurrent:

0011 Instruction 90,744,597 - 249,097 0012 Instruction resources and media services 2,504,676 - 148,872 0013 Curriculum and instructional staff development 427,740 - - 0021 Instructional leadership 3,132,552 - - 0023 School leadership 8,779,113 - 999 0031 Guidance, counseling and evaluation services 3,527,768 - - 0033 Health services 1,293,183 - 5,372 0034 Student transportation 9,284,861 - - 0035 Food services 23,051 - - 0036 Extracurricular activities 3,313,989 - - 0041 General administration 6,500,735 - - 0051 Plant maintenance and operations 13,784,274 - - 0052 Security and monitoring services 1,587,587 - 158,302 0053 Data processing services 3,623,074 - 1,326,694 0061 Community services 285,040 - -

Debt service:

0071 Principal on long-term debt 535,000 9,280,000 - 0072 Interest on long-term debt 116,943 13,660,635 - 0073 Bond issuance costs and fees - 1,275,369 1,750

Capital outlay:

0081 Facilities acquisition and construction 95,007 - 34,021,113 Intergovernmental:

0093 Payments related to shared services 3,519,612 - - 0095 Payments to Juvenile Justice Alt. Ed. Prgm. 15,700 - - 0097 Payments to tax increment fund 4,631,925 916,492 - 6030 Total Expenditures 157,726,427 25,132,496 35,912,199 1100 Excess (deficiency) of revenues over expenditures 26,267,007 1,097,529 (35,781,463)

Other Financing Sources (Uses):

7911 Capital-related debt issued (regular bonds) - - 166,050,000 7912 Sale of real or personal property 63,802 - - 7915 Transfers in - - 21,758,488 7916 Premium or discount on issuance of bonds - 1,926,573 12,850,000 8911 Transfers out (21,758,488) - - 7080 Total other financing sources and uses (21,694,686) 1,926,573 200,658,488 1200 Net change in fund balances 4,572,321 3,024,102 164,877,025

0100 Fund Balance - July 1 (Beginning) 72,111,746 8,937,369 22,009,021

3000 Fund Balance - June 30 (Ending) 76,684,067$ 11,961,471$ 186,886,046$


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25

Exhibit C-3


Funds

Total Governmental

Funds

5,582,518$ 82,919,524$ 736,082 131,489,767

12,916,853 15,180,357 19,235,453 229,589,648

5,193,843 96,187,537 222,179 2,875,727 929,603 1,357,343 184,575 3,317,127 154,964 8,935,076

1,751,045 5,278,813 3 1,298,558

- 9,284,861 10,418,565 10,441,616

584,574 3,898,563 10,820 6,511,555

- 13,784,274 24,393 1,770,282 1,000 4,950,768

- 285,040

- 9,815,000 - 13,777,578 - 1,277,119

- 34,116,120

- 3,519,612 - 15,700 - 5,548,417

19,475,564 238,246,686 (240,111) (8,657,038)

- 166,050,000 2,115 65,917

- 21,758,488 - 14,776,573 - (21,758,488)

2,115 180,892,490 (237,996) 172,235,452

5,587,562 108,645,698

5,349,566$ 280,881,150$

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26

ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit C-4


Data Control Codes

Net change in fund balances - total governmental funds (from C-3) 172,235,452$

Amounts reported for governmental activities in the statement of activities (B-1) are different because:

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense.

1 Governmental funds report capital outlays 37,203,366 2 Governmental funds depreciation expense (11,544,848)

3 Governmental funds report the entire net sales price (proceeds) from sale of an asset as revenue because it provides current financial resources. In contrast, the Statement of Activities reports only the gain or (loss) on the sale of the assets. Thus, the change in net position differs from the change in fund balance by the cost of the asset sold. (51,009)

4 Property tax revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. (77,290)

5 School health and related services in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 947,475

6 Premium from the issuance of long-term debt is reported as an other financing source in the governmental funds. In the government-wide financial statement, proceeds are treated as increase in long-term liabilities (14,776,573)

7 Repayment of bond principal is an expenditure in the governmental fund, but the repayment reduces long-term liabilities in the statement of net position. 9,815,000

8 Proceeds from issuance of long-term debt is reported as an other financing source in the governmental funds. In the government-wide financial statements, proceeds are treated as an increase in long-term liabilities. (166,050,000)

Some expenses reported in the statement of activities do not require the use of current financial resources and these are not reported as expenditures in governmental funds:

9 Increase in interest payable not recognized in fund statements (2,090,272)10 Increase in long-term portion of accrued compensated absences (152,448) 11 Amortization of bond premiums and discounts. 920,22512 Amortization of deferred loss on refunding (589,768)

13 Internal service funds are used by management to charge the costs of certain activities, such as insurance and telecommunications, to individual funds. The net revenue (expense) of the internal service funds is reported with governmental funds (see D-2). (874,177)

Change in net position of governmental activities (see B-1) 24,915,133$


RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR GOVERNMENTAL FUNDS TO THE

STATEMENT OF ACTIVITIES

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ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit D-1STATEMENT OF NET POSITION

PROPRIETARY FUNDS

June 30, 2014

Data Control Codes

Governmental Activities -

Internal Service Funds

AssetsCurrent Assets:

1110-75 Cash and cash equivalents 10,671,544$ Receivables:

1250 Accrued interest receivable 1,726 1260 Due from other funds 2,200 1290 Other receivables 37,160 1300 Inventories, at cost 23,156

Total Current Assets 10,735,786

Non-current Assets:

Land, Buildings and Equipment:1540 Furniture and equipment 61,532 1573 Accumulated depreciation - Equipment (16,517)

Total Non-current Assets 45,015 1000 Total Assets 10,780,801

Liabilities and Net PositionCurrent Liabilities:

2110 Accounts payable 454,920 2200 Accrued expenses 1,656,465

Total Current Liabilities 2,111,385 2000 Total Liabilities 2,111,385

Net Position:

3200 Investments in capital assets 45,015 3900 Unrestricted net position 8,624,401 3000 Total Net Position 8,669,416$


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ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit D-2STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION

PROPRIETARY FUNDS

For the Fiscal Year Ended June 30, 2014

Data Control Codes



Operating Revenues5749 Miscellaneous revenue from local sources 3,723$ 5754 Interfund services provided and used 17,483,231 5020 Total Operating Revenues 17,486,954

Operating Expenses6100 Payroll costs 134,845 6200 Purchased and contracted services 120,814 6300 Supplies and materials 51,773 6400 Claims expense and other operating expenses 18,026,252 6449 Depreciation 4,731 6030 Total Operating Expenses 18,338,415

1200 Operating Income (Loss) (851,461)

Non-Operating Revenues (Expenses)7020 Investment earnings 11,208 8951 Loss on sale of real and personal property (33,924)

Total Non-operating Revenues (Expenses) (22,716)

Income (Loss) before Transfers (874,177)

Transfers7915 Transfers in 4,255,312 8911 Transfers out (4,255,312)

Total Transfers - 1200 Change in Net Position (874,177)

0100 Net Position - July 1 (Beginning) 9,543,593

3300 Net Position - June 30 (Ending) 8,669,416$


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ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit D-3

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS




Cash Flows from Operating Activities:

Cash receipts from customers and with other funds 17,484,754$ Cash payments to suppliers for goods and services (18,053,284) Cash payments to employees (134,621)

Net Cash Provided by (Used for) Operating Activities (703,151)

Cash Flows from Non-Capital Financing Activities:

Advances from other funds 4,255,312 Advances to other funds (4,255,312)

Net Cash Provided by (Used for) Non-Capital Financing Activities -

Cash Flows from Capital and Related Financing Activities:Acquisition of capital assets (48,273)

Net Cash Provided by (Used for) Capital and Related Financing Activities (48,273)

Cash Flows from Investing Activities:

Interest on investments 9,482 Net Cash Provided by Investing Activities 9,482

Net Increase in Cash and Cash Equivalents (741,942)Cash and Cash Equivalents at Beginning of Year 11,413,486 Cash and Cash Equivalents at End of Year 10,671,544$

Reconciliation to Balance SheetCash and Cash Equivalents Per Cash Flow 10,671,544$

Cash and Cash Equivalents per Balance Sheet 10,671,544$

Reconciliation of Operating Income to Net Cash

Provided by Operating Activities:Operating Income (Loss) (851,461)$ Adjustments to Reconcile Operating Income to Net Cash

Provided by Operating Activities:Depreciation 4,731

Change in Assets and Liabilities:Decrease (increase) in Interfund Receivables (2,200) Decrease (increase) in Inventories (2,104) Increase (decrease) in Accounts Payable (73,329) Increase (decrease) in Payables to Other Governments (265,408) Increase (decrease) in Accrued Expenses 486,620

Net Cash Provided by (Used for) Operating Activities (703,151)$


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ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit E-1STATEMENT OF FIDUCIARY ASSETS AND LIABILITIESJune 30, 2014

Data Control Codes

Student Activity Fund

Assets1110 Cash and cash equivalents 701,757$

Receivables:1260 Due from other funds 3,308

Total Assets 705,065$

Liabilities2110 Accounts payable 25,955$ 2170 Due to other funds 128 2190 Due to others 678,982 2000 Total Liabilities $ 705,065


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ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit F-1 NOTES TO THE FINANCIAL STATEMENTS

31

Note 1 - Summary of Significant Accounting Policies Reporting Entity The Alvin Independent School District (the “District”) is governed by a seven-member Board of Trustees (the “Board”), which has governance responsibilities over all activities related to public elementary and secondary education within the District. Because members of the Board are elected by the public; have authority to make decisions; appoint management and significantly influence operations; and have primary accountability for fiscal matters; the District is not included in any other governmental reporting entity. The accompanying financial statements present the District. There are no component units, entities for which the District is considered to be financially accountable, included within the reporting entity. The District receives funding from local, state and federal government sources and must comply with the requirements of these funding source entities. Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the District. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities normally are supported by taxes and intergovernmental revenues. The statement of activities demonstrates the degree to which the direct expenses of a given function or segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to students or users who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The fiduciary fund financial statements reflect the District’s agency fund, reporting only assets and liabilities. The agency fund has no measurement focus, but utilizes the accrual basis of accounting for reporting it assets and liabilities.

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ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit F-1 NOTES TO THE FINANCIAL STATEMENTS (continued)

32

Note 1 - Summary of Significant Accounting Policies (continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modified 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 District 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, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Grant revenues and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the District. The District reports the following major governmental funds:

The general fund is the District's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

The debt service fund accounts for the resources accumulated and payments made for principal and

interest on long-term general obligation debt of governmental funds. The capital projects fund is used to account for proceeds from sales of bonds and other revenues to

be used for authorized construction and other capital asset acquisitions. Additionally, the District reports the following fund types:

The special revenue funds are used to account for resources restricted to for specific purposes by a grantor. Federal and state financial assistance generally is accounted for in a special revenue fund. Generally, unused balances are returned to the grantor at the close of the specified project periods. With respect to the food service and campus activity funds, funds are rolled over from year to year for use in the program.

The internal service funds are used to account for the operations of the District’s printing shop, health, workers’ compensation, property & casualty and health and workers’ compensation as self-insurance funds, which provides services to other departments inside the District on a cost reimbursement basis. The agency fund is used to account for assets held by the District as an agent for student organizations. The fund is custodial in nature (assets equal liabilities) and does not involve measurement of results of operation. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.

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33

Note 1 - Summary of Significant Accounting Policies (continued) Amounts reported as program revenues include 1) charges to students or users for goods, services, or privileges provided and 2) operating grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes and investment income. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the District's internal service fund are health and worker’s compensation insurance premiums to participate in the health and worker’s compensation insurance programs. Operating expenses for the internal service fund include the cost of services and administrative expenses. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the District's policy to use restricted resources first, then unrestricted resources as they are needed. Deposits and Investments The District's cash and cash equivalents are considered to be cash on hand, demand deposits, certificates of deposit, investment pools and short-term investments with original maturities of three months or less from the date of acquisition. Investments for the District are reported at fair value based on quoted market prices at June 30, 2014. The investment pools operate in accordance with appropriate state laws and regulations. The reported value of the pools is the same as the fair value of the pool shares. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Property tax receivables include unpaid property taxes at year-end are shown net of an allowance for uncollectibles. The property tax receivable allowance is based on historical experience in collecting taxes. Revenues from property taxes are recognized when levied to the extent they are available. The District considers property taxes as available if they are collected within 60 days of the end of the current fiscal period. However, not all outstanding property taxes are expected to be collected within one year of the date of the financial statements. Property values are determined by the Brazoria County Appraisal District as of January 1 of each year. Prior to September 1 of each year, the District must adopt its annual budget and as soon thereafter as practicable, shall adopt a tax rate thus creating the tax levy. Property taxes for the current calendar year are levied on approximately October 1 of each year and are payable by January 31 of the following year. Property tax receivables are recorded as of the date levied. Unpaid taxes become delinquent on February 1 and a tax lien on real property is created as of July 1 of each year.

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34

Note 1 - Summary of Significant Accounting Policies (continued) Inventories Inventories consisting of supplies and materials are valued at weighted average cost and they include maintenance, transportation, office and instructional supplies, and food service commodities. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Food service commodity inventory is recorded at fair market value on the date received. Commodities are recognized as revenues in the period received when all the eligibility requirements are met. Commodity inventory items are recorded as expenditures when distributed to user locations. A portion of fund balance is non-spendable to reflect minimum inventory quantities considered necessary for the District’s continuing operations. Capital Assets Capital assets, which include land, construction in progress, buildings and improvements and furniture and equipment, are reported in the governmental column in the government-wide financial statements. Capital assets are defined by the District as assets with an initial, individual cost that equals or exceeds $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Buildings and improvements, and furniture and equipment of the District are depreciated using the straight-line method over the following estimated useful lives:

Assets YearsBuildings and improvements 20 - 40Furniture and equipment 5 - 15

Compensated Absences The State of Texas has created a minimum sick leave program consisting of five days per year sick leave with no limit on accumulation and transferability among districts for every eligible employee leave regularly employed in Texas public schools. Each district’s local Board of Education is required to establish a sick leave plan. Local school districts may provide additional sick leave beyond the state minimum. The District maintains a policy allowing employees meeting established requirements to be compensated for unused sick leave at retirement. Annual vacation time is granted to nonprofessional hourly employees; however, any unused vacation time lapses at the end of each fiscal year. There are no other compensated absences allowed under the District’s personnel policies.

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35

Note 1 - Summary of Significant Accounting Policies (continued) Long-term Obligations In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the governmental activities column. Bond premiums and discounts are deferred and amortized over the life of the bonds using the bonds outstanding method, which approximates the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed in the period incurred. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. The current requirements for general obligation bonds principal and interest expenditures are accounted for in the debt service fund. Maintenance tax notes principal and interest expenditures are accounted for in the general fund. Deferred outflows/inflows of resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The District only has one item that qualifies for reporting in this category. It is the deferred charge on refunding reported in the government-wide statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resource, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The District has two type of items, which arises only under a modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenue from property taxes and school health and related services (Shars). These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. Net Position and Fund Balance Net position on the Statement of Net Position include the following:

Net investment in capital assets – the component of net position that reports capital assets less both the accumulated depreciation and the outstanding balance of debt and is directly attributable to the acquisition, construction, or improvement of these capital assets.

Restricted for federal and state programs – the component of net position that reports the difference between assets and liabilities related to federal and state programs that consist of assets with constraints placed on their use by granting agencies.

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36

Note 1 - Summary of Significant Accounting Policies (continued)

Restricted for debt service – the component of net position that reports the difference between assets and liabilities adjusted on a government-wide basis that consists of assets with constraints placed on their use by the bond covenants.

Unrestricted net position – the difference between the assets and liabilities that are not reported in net position net investment in capital assets, or restricted net position.

Net position flow assumption - Sometimes the District will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted - net position and unrestricted -net position in the government-wide statements, a flow assumption must be made about the order in which the resources are considered to be applied.

In the fund financial statements, governmental funds report fund balance as either a non-spendable, fund balance or a spendable fund balance.

Nonspendable fund balance – amounts that are not in spendable form or are required to be maintained intact. As such, then inventory and prepaid items have been properly classified in the Governmental Fund Balance Sheet (Exhibit C-1).

Restricted fund balance – amounts that can be spent only for specific purposes because of local, state or federal laws, or externally imposed conditions by grantors or creditors.

Committed fund balance – amounts constrained to specific purposes by the District itself, using its highest level of decision-making authority (i.e., Board of Trustees). To be reposted as committed, amounts cannot be used for any other purposes unless the District takes the same highest level of action to remove or change the constraint. The District establishes (and modifies or rescinds) fund balance commitments by passage of a resolution, A fund balance commitment is further indicated in the budget document as a commitment of the fund. See Note 16 for detailed information.

Assigned fund balance – amounts the District intends to use for a specific purpose. The District did not choose to delegate assignment authority.

Unassigned fund balance – amounts that are available for any purpose. Positive amounts are reported only in the general fund.

When expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the District considers restricted funds to have been spent first. The District has adopted a policy of spending and availability of fund balance shall be to reduce funds from the listed areas in the following order: Restricted, committed, assigned and unassigned. Negative amounts shall not be reported for restricted, committed or assigned funds. The District policy is to target a yearly unassigned general fund balance between 17 percent (60 days) and 25 percent (90 days) of total operating expenditures.

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Note 1 - Summary of Significant Accounting Policies (continued) Data Control Codes The Data Control Codes refer to the account code structure prescribed by the Texas Education Agency (TEA) in the Financial Accountability System Resource Guide. TEA requires school districts 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. Use of Estimates The presentation of financial statements, in conformity with generally accepted accounting principles requires, management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.

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Note 2 - Deposits and Investments The District’s cash and investments, at June 30, 2014, are shown below:

Cash and Deposits

External Investment

PoolsCommercial

Paper

Money Market

Mutual Fund & Certificate

of DepositMunicipal

Bonds Total

Governmental FundsGeneral Fund 8,851,862$ 18,274,583$ 22,046,644$ 3,398,607$ 5,055,100$ 57,626,796$ Debt Service Fund 90,785 11,631,436 - - - 11,722,221 Capital Projects Fund 630,649 126,607,621 53,155,273 13,550,590 - 193,944,133 Non-major Funds 2,084,840 3,346,017 - - - 5,430,857

11,658,136 159,859,657 75,201,917 16,949,197 5,055,100 268,724,007

Internal Service Funds 1,613,362 9,058,182 - - - 10,671,544

Total Government Wide Statements 13,271,498 168,917,839 75,201,917 16,949,197 5,055,100 279,395,551

Fiduciary Funds 701,757 - - - - 701,757

Total Cash and Investments 13,973,255$ 168,917,839$ 75,201,917$ 16,949,197$ 5,055,100$ 280,097,308$

Cash Deposits The District's funds are required to be deposited and invested under the terms of a depository contract pursuant to the Texas School Depository Act. The depository bank pledges securities which comply with state law and these securities are held for safekeeping and trust with the District's and the depository banks' agent bank. The pledged securities are approved by the Texas Education Agency and shall be in an amount sufficient to protect District 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. Investments The District’s investment policy is in accordance with the Public Funds Investment Act (Chapter 2256, Texas Government Code), the Public Funds Collateral Act, and federal and state laws. The District further limits its investments to obligations of the U.S. Treasury or the State of Texas, certain U.S. Agencies, certificates of deposit, collateralized mortgage obligations, no-load money market mutual funds, certain commercial paper, certain municipal securities, repurchase agreements, or investment pools. For fiscal year 2014, the District invested in U.S. Government Agency securities, the State of Texas (“TexPool”), TEXAS Term/TEXAS Daily, Texas CLASS and Texas Association of School Board’s Lone Star Investment Pool. TexPool, Lone Star, TEXAS Term/TEXAS Daily and Texas CLASS operate in a manner consistent with the SEC’s Rule 2a-7 of the Investment Company Act of 1940. As such, TexPool, Lone Star, TEXAS Term/TEXAS Daily and Texas CLASS use amortized cost to report net position and share prices, since those amounts approximate fair value. The Texas State Comptroller of Public Accounts exercises oversight responsibility over TexPool. Federated Investors manage the daily operations of the pool under a contract with the Comptroller. Lone Star is a Texas public investment pool sponsored by the Texas Association of School Boards (TASB) for investment of funds by state and local government entities, primarily local school districts. TASB has entered into an agreement with First Public, LLC as administrator of the pool.

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Note 2 - Deposits and Investments (continued) TEXAS Term/TEXAS Daily is a local government investment pool created by Texas local governments to provide investment programs tailored to the needs of local governments. PFM Asset Management LLC acts as the Investment adviser/administrator of the pool. The program administrator is Cutwater Investor Services Corp. There is no regulatory oversight by the State of Texas over TEXAS Term / TEXAS Daily, Texas CLASS, or Lone Star. Investments with Merrill Lynch are money markets mutual funds with the underlying investments primarily invested in bond mutual funds. At year-end, the District’s investments balances, weighted average maturity and credit quality ratings of these investments were as follows:

Fair Weighted S & P CreditMarket Average QualityValue Maturity (Days) Ratings

Investment TypeLocal Government Investment Pools:

Lone Star 375,688$ 56 AAATexas CLASS 37,652,933 50 AAAmTexas Daily 45,219,266 47 AAAmTexas Term - CP Pool 78,000,000 95 AAAfTexas Term - CD Program 992,000 47 AAAmTexPool 6,677,952 51 AAAm

Total 168,917,839 Commercial Paper:

Abbey Natl N America 4,995,219 9 A-1BNP Paribas Finance 14,985,900 27 A-1BNP Paribas Finance 9,979,066 29 A-1Credit Aricole North America 1,997,387 4 A-1Credit Suisse NY 8,193,827 12 A-1Deutsche Bank 4,993,813 10 A-1ING (US) Funding 9,996,810 9 A-1Macquarie Bank 4,995,407 9 A-1Macquarie Bank 4,999,611 2 A-1Natixix US Fin 1,542,713 4 A-1Natixix US Fin 3,527,868 8 A-1Wells Fargo Co 4,994,296 13 A-1

Total 75,201,917 Monet Market and Certificate of Deposit:

Money Market Mutual Fund 15,948,523 1 Not ratedCertificate of Deposit 1,000,674 390 Not rated

Total 16,949,197

Municipal Bond 5,055,100 230 AAA

Total Investments 266,124,053$

The District generally holds all Municipal bonds, Certificate of Deposits and Commercial Paper to maturity date. The District did not purchase any derivative investment products during the current year.

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Note 2 - Deposits and Investments (continued) Interest Rate Risk Interest rate risk is the risk that changes in interest rates may adversely affect the value of the investments. The District’s investment policy limits the maturities of investments and prohibits any investment for speculative gains. The District manages its exposure to declines in fair values by limiting the weighted average maturity of its investment portfolio to less than 365 days. At June 30, 2014 the District’s exposure to interest rate risk as measured by the maturities by investment type is summarized below:

Fair Market Less than 1 to 5

Value 1 Year Years

Local Government Investment Pools 168,917,839$ 168,917,839$ -$ Commercial Paper 75,201,917 75,201,917 - Money Market Mutual Fund 15,948,523 15,948,523 - Certificate of Deposit 1,000,674 - 1,000,674 Merrill Lynch 5,055,100 - 5,055,100

266,124,053$ 260,068,279$ 6,055,774$

The District recognizes that investment risk can result from market price changes. Investment officers are expected to display prudence, discretion, and intelligence in the selection of securities, as a way to minimize risk. Investments of the District shall be selected in a manner that seeks to ensure the preservation of capital in the overall portfolio. Credit Risk State law and the District’s investment policy limits investments in all categories to top ratings issued by nationally recognized statistical rating organizations.

Custodial Credit Risk The investments of the District shall be held by an independent third party with whom the District has a current custodial agreement. The District shall retain clearly marked receipts providing proof of the District’s ownership. The District may delegate to an investment pool the authority to hold legal title a custodian of investments purchased with the District funds. The District’s funds on deposit with the depository bank were either fully insured by the Federal Deposit Insurance Corporation or collateralized with securities held by the District or its agent and listing the District as owner. At June 30, 2014, the carrying value of the District’s deposits was $13,973,255 and the bank balance was $17,956,491. All District cash deposits at the depository bank were covered at all times by pledge securities held as collateral at a third party bank. All investments are made in the name of the Alvin Independent School District. All investments were purchased with the delivery versus payment method and are recorded at the District’s name on the Federal Reserve’s book entry system and confirmed to the District via safekeeping receipt maintained on the books of the depository banks safekeeping department.

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Note 2 - Deposits and Investments (continued) Concentration of Credit Risk The District’s investment policy requires the investment portfolio to be diversified in terms of investment instruments, maturity scheduling, and financial institutions in order to reduce the risk of loss resulting from over-concentration of assets in a specific class of investments, specific maturity, or specific issuer. Investments with concentrations of over five percent of the total portfolio at June 30, 2014 consisted of the following:

Fair Market PercentageValue of Portfolio


Texas CLASS 37,652,933$ 14.15%Texas Daily 45,219,266 16.99%Texas Term - CP Pool 78,000,000 29.31%

Commercial Paper: BNP Paribas Finance 14,985,900 5.63%

Money Market Mutual Fund 15,948,523 5.99%

Market values of Municipal bonds and Commercial Paper are based on quoted market values. The investments are reported by the District at fair value in accordance with Governmental Accounting Standards. The amount of increase in the fair value of investments for the fiscal year ended June 30, 2014 is included in investment income as follows:

Investment earnings 253,105$ Net increase in investment values 37,816 Total investment earnings 290,921$

Note 3 - Receivables Receivables as of year-end for the District's individual major and non-major funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows:

General Fund

Debt Service

Fund

Capital Projects

Fund


Funds

Internal Service Funds Total

Property Taxes 4,051,855$ 966,360$ -$ -$ -$ 5,018,215$ Due from other governments 34,157,253 185,151 - 1,362,835 - 35,705,239 Accrued Interest 64,785 - 59,908 - 1,726 126,419 Other 192,249 - - 194,050 37,160 423,459 Gross Receivables 38,466,142 1,151,511 59,908 1,556,885 38,886 41,273,332 Less allowance for doubtful

accounts (1,048,685) (199,484) - - - (1,248,169) Net Total Receivables 37,417,457$ 952,027$ 59,908$ 1,556,885$ 38,886$ 40,025,163$

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Note 3 - Receivables (continued) Governmental funds report unearned revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period or in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the District had no unearned revenue to report.

Note 4 - Capital Assets The District’s capital asset activity for the fiscal year ended June 30, 2014 is as follows:

Balance Retirements BalanceJune 30, 2013 Additions and Transfers June 30, 2014

Capital assets, not being depreciatedLand 35,968,959$ 191,732$ -$ 36,160,691$ Construction in progress 5,164,161 22,364,802 (4,483,778) 23,045,185

Total Capital assets, not being 41,133,120 22,556,534 (4,483,778) 59,205,876 Capital assets, being depreciated

Buildings and improvements 336,674,500 11,221,444 4,008,650 351,904,594 Furniture and equipment 29,386,481 3,425,388 (290,399) 32,521,470 Media center equipment 82,160 49,013 (69,641) 61,532

Total capital assets, being depreciated 366,143,141 14,695,845 3,648,610 384,487,596 Less accumulated depreciation for:

Buildings and improvements (81,155,353) (9,052,295) 475,130 (89,732,518) Furniture and equipment (16,092,974) (2,492,553) 239,388 (18,346,139) Media center equipment (47,503) (4,731) 35,717 (16,517)

Total accumulated depreciation (97,295,830) (11,549,579) 750,235 (108,095,174) Governmental capital assets 309,980,431$ 25,702,800$ (84,933)$ 335,598,298$

Depreciation expense was charged to functions/programs of the District as follows:

Function Depreciation

Expense

Instruction 5,350,909$ Instructional resources and media services 208,899 Curriculum and staff development 3,858 School leadership 131,513 Guidance, counseling and evaluation services 68,733 Health services 17,322 Student transportation 1,354,281 Food Services 599,906 Extracurricular activities 1,818,804 General administration 106,526 Plant maintenance and operations 1,132,958 Security and monitoring services 115,304 Data processing services 602,591 Community services 37,975

11,549,579$

Internal service fund capital assets, net of depreciation, totaled $45,015.

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Note 4 - Capital Assets (continued) Construction Commitments The District has active construction projects as of June 30, 2014. The projects include the construction and equipment of school facilities. At year-end, the District's commitments with contractors are as follows:

Project

Approved Construction

BudgetConstruction in Progress

Remaining Commitment

Fiber Project by TechnologyInterfacing Co. of Texas Inc 309,093$ 184,546$ 124,547$ Interfacing Co. of Texas Inc 245,683 122,842 122,841

Shadow Creek High School - Gamma Construction Co 7,037,956 5,527,530 1,510,426 Shadow Creek Gamma Construction Co 10,000 10,000 - Shadow Creek High School- SHW Group 2,090,464 1,370,512 719,952 Shadow Creek High School SHW Group 3,376,394 3,376,394 - Shadow Creek HS-SHW Group 25,000 1,545 23,455 Other Consulting Shadow Creek 48,509 48,509 - Alvin JH Renovation-Stewart Builders 950,317 202,398 747,919 SBWV Architects AJH Renovation 25,000 2,936 22,064 SBWV Architects AJH Renovation 877,000 303,375 573,625 SBWV Architects AJH Renovation 150,000 150,000 - Freddy Gormley/Gormley Survey 15,000 15,000 - Other AJH Renovation 3,466 3,466 - Manvel JH Replacemnt- SHW Group 255,000 26,722 228,278 Manvel JH Replacemnt- Durotech Inc 28,604,376 10,398,722 18,205,654 Terracon Consultants 60,000 40,817 19,183 MJH Replace SHW 1,001,384 1,001,384 - Durotech 50,000 50,000 - Other MJH Replacement 50,185 50,185 - Commercial Wireless Solutions 322,673 158,302 164,371

45,507,500$ 23,045,185$ 22,462,315$

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Note 5 - Interfund Receivables, Payables, and Transfers Interfund balances consist of short-term lending/borrowing arrangements that result primarily from payroll, warehouse ordering and other regularly occurring charges that are paid by the general fund and then charged back to the appropriate other fund. Additionally, some lending/borrowing may occur between two or more non-major governmental funds. The composition of interfund balances as of June 30, 2014, is as follows:

Interfund Receivable

Interfund Payable

General Fund 927,971$ 72,052$ Debt Service Fund 62,391 - Capital Projects Fund - 320 Nonmajor Governmental Funds 6,481 929,851 Internal Service Funds 2,200 - Trust and Agency Funds 3,308 128

1,002,351$ 1,002,351$

Interfund transfers are defined as “flows of assets without equivalent flow of assets in return and without a requirement for repayment.” The following is a schedule of the District’s transfers for the fiscal year ended June 30, 2014.

Transfer Out Transfer In AmountGeneral Fund Capital Projects Fund 21,758,488$ Health Insurance Fund Health and Workers'Compensation Fund 117,173 Workers Compensation Self-Insurance Health and Workers'Compensation Fund 4,138,139

26,013,800$

Transfers were made from the General Fund to Capital Projects Fund for ongoing construction projects and Internal services funds transfers resulted in the closing of Health and Workers Compensation funds and combining them into one Health and Workers’ Compensation fund. Note 6 - Long-term Liabilities Changes in Long-term Liabilities Long-term liability activity for the fiscal year ended June 30, 2014, was as follows:

Balance June 30, 2013 Additions Retirements

Balance June 30, 2014

Due Within One Year

General obligation bonds 304,620,000$ 166,050,000$ (9,280,000)$ 461,390,000$ 11,890,000$ Bond issuance premiums 9,497,626 14,776,573 (920,225) 23,353,974 - Maintenance tax notes 2,925,000 - (535,000) 2,390,000 560,000 Accrued compensated absences 1,350,989 219,239 (66,567) 1,503,661 85,459

318,393,615$ 181,045,812$ (10,801,792)$ 488,637,635$ 12,535,459$

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Note 6 - Long-term Liabilities (continued) General Obligation Bonds The District issues general obligation bonds to provide funds for the acquisition and construction of school buildings and technology. General obligation bonds are direct obligations and pledge the full faith and credit of the District. General Obligation bonds are paid from the Debt Service Fund and funded from future property tax revenues. In January 2014, the District issued $65,050,000 of Unlimited Tax Schoolhouse Bonds, Series 2014A and $101,000,000 of Variable Rate Unlimited Tax Schoolhouse Bonds, Series 2014B. Interest rates for the 2014A bonds ranged from 2.00% to 5.00% and the 2014B bonds interest rate was 4.00%. The bonds will be used to provide funds for (i) the construction, acquisition and equipment of school building in the District, the purchase of necessary sites for school building in the District and the purchase of new school buses, and (ii) to pay costs incurred in the issuance of the Bonds. Build America Bonds provide a direct reimbursement of 35 percent of the interest paid on the bonds. The District received reimbursement totaling $466,562 during the fiscal year. General obligation bonds currently outstanding are as follows:

Issue

Original issuance amount

Interest Rate (%) Maturity Date

Debt Outstanding

Unlimited Tax Schoolhouse Bonds, Series 2001B 13,865,000$ 3.875% to 4.25% 2025 6,580,000$ Unlimited Tax Schoolhouse Bonds, Series 2004A 34,100,000 3.25% to 5.25% 2027 7,100,000Unlimited Tax Adjustable Rate Bonds, Series 2004B 22,500,000 4.50% to 5.00% 2030 22,500,000Unlimited Tax Schoolhouse and Refunding Bonds, Series 2005 61,555,000 3.25% to 5.00% 2030 22,380,000Unlimited Tax School Building Bonds, Series 2006 71,990,000 4.00% to 5.50% 2033 64,090,000Unlimited Tax Schoolhouse and Refunding Bonds, Series 2007 79,655,000 4.00% to 5.00% 2033 71,630,000Unlimited Tax Schoolhouse and Refunding Bonds, Series 2007 6,280,000 4.25% to 4.375% 2025 6,280,000Unlimited Tax Refunding Bonds, Series 2010 22,195,000 2.00% to 4.00% 2025 20,635,000Unlimited Tax Schoolhouse Bonds, Series 2010A 11,330,000 3.00% to 5.00% 2020 7,265,000Unlimited Tax Schoolhouse Bonds, Taxable Series 2010B 29,500,000 3.78% to 5.09% 2035 29,500,000Unlimited Tax Refunding Bonds, Series 2012 37,380,000 3.00% to 5.00% 2027 37,380,000Unlimited Tax Schoolhouse Bonds, Series 2014A 65,050,000 2.00% to 5.00% 2030 65,050,000

34,470,000 4.00% 2039 34,470,000

33,145,000 4.00% 2036 33,145,000

33,385,000 4.00% 2033 33,385,000556,400,000$ 461,390,000$

Variable Rate Unlimited Tax Schoolhouse Bonds, Series 2014B (1 Year Put)Variable Rate Unlimited Tax Schoolhouse Bonds, Series 2014B (3 Year Put)Variable Rate Unlimited Tax Schoolhouse Bonds, Series 2014B (5 Year Put)

Annual debt service requirements to maturity for general obligation bonds are as follows:

Year Ending Principal Interest Totals2015 11,890,000$ 18,662,435$ 30,552,435$ 2016 10,980,000 18,403,340 29,383,340 2017 12,950,000 18,288,516 31,238,516 2018 15,590,000 17,929,941 33,519,941 2019 16,340,000 17,377,902 33,717,902

2020 - 2024 92,225,000 77,265,561 169,490,561 2025 - 2029 115,555,000 54,942,482 170,497,482 2030 - 2034 126,125,000 26,851,794 152,976,794 2035 - 2039 59,735,000 7,006,872 66,741,872

461,390,000$ 256,728,843$ 718,118,843$

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Note 6 - Long-term Liabilities (continued) Maintenance Tax Notes and Contractual Obligations Maintenance Tax Notes were issued to upgrade the District’s HVAC, lighting and controls. Maintenance Tax Notes are paid through the General Fund from future property tax revenues. Maintenance Tax Notes currently outstanding are as follows:

Notes and Contractual Obligations



Debt Outstanding

Maintenance Tax Notes, Series 2003 7,200,000$ 3.96% 2018 2,390,000$ 7,200,000$ 2,390,000$

Annual requirements to amortize the Maintenance Tax Notes and Contractual Obligations outstanding as of June 30, 2014, follow:

Year Ending Principal Interest Totals2015 560,000$ 95,600$ 655,600$ 2016 585,000 73,200 658,2002017 610,000 49,800 659,8002018 635,000 25,400 660,400

2,390,000$ 244,000$ 2,634,000$

Prior Year Refunding of General Obligation Bonds In prior years, the District defeased certain outstanding bonds by placing proceeds of new bonds in irrevocable escrow accounts to provide for all future debt service payments on the old bonds. Accordingly, the escrow accounts to provide for all future debt service payments are not included in the District’s financial statements. As of June 30, 2014, the amount of defeased debt outstanding amount to $30,325,000. Authorized but Unissued Bonds The District has $61,640,000 of voter authorized but unissued bonds. Depending on the rate of development within the District, changes in assessed valuation, and the amounts, interest rates, maturities and the timing of issuance of any additional bonds, increases in the District’s annual ad valorem tax rate may be required to provide for the payment of the principal of and interest on the District’s outstanding bonds, the Bonds, and any such future bonds. In addition to unlimited tax bonds, the District may incur other financial obligations payable from its collection of taxes and other sources of revenues, including maintenance tax notes payable from its collection of maintenance taxes, public property finance contracted obligations, delinquent tax notes and leases for various purposes payable from State appropriations and surplus maintenance taxes. Compensated Absences During the fiscal year ended June 30, 2014, the District accrued a total of $219,239 and paid out $66,567 in compensate absences. The total ending amount of accrued compensated absences at year-end is $1,503,661. Personal leave is paid out of the fund to which the employee’s salary relates, the majority of which has historically been the General Fund.

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Note 7 - General Fund Federal Program Revenues A summary of federal program revenues received in the general fund for the fiscal year ended June 30, 2014, follows:

CFDAProgram or Source Number Amount

Indirect Costs:Title I, Part A 84.010A 76,381$ Title I, Part D, Subpart 2 84.010A 8 IDEA-B Formula 84.027A 88,885 IDEA-B Preschool 84.173A 1,673 Career and Technical Basic Grant 84.048A 5,104 ESEA Title II, Part A 84.367A 13,115 Title III, Part A LEP 84.365A 5,843

ROTC 12.000 62,121 Medicaid Administrative Claims (MAC) 93.778 27,979 School Health and Related Service Program N/A 1,515,833

1,796,942$

Note 8 - Defined Benefit Pension Plan Plan Description The Alvin Independent School District contributes to the Teacher 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 the 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. The Texas state legislature has the authority to establish and amend benefits provisions of the pension plan and may, under certain circumstances, grant special authority to the TRS Board of Trustees. 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 78701, by calling the TRS Communications Department at 1-800-223-8778, or by downloading the report from the TRS Internet website, www.trs.state.tx.us, under the TRS Publications heading. Funding Policy State law provides a state contribution rate of 6.80% for fiscal year 2014, 6.40% for fiscal year 2013 and 6.00% for fiscal years 2012. For 2014, 2013 and 2012 the member contribution rate was 6.40%. In certain instances, the reporting district is required to make all or a portion of the 6.80%, 6.40% and 6.00% contribution for fiscal years 2014, 2013 and 2012 respectively. 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)

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Note 8 - Defined Benefit Pension Plan (continued) A state statute prohibits benefit improvements or contribution reductions if, as a result of 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. Actuarial implications of the funding provided in this manner are determined by the system’s actuary. Contributions Contributions for the retirement plan for the employees of the District represent 100% of the annual pension cost. Contributions made by the State, District and Employees, and the District’s annual covered payroll for the fiscal years 2014, 2013 and 2012 are as follows:

State TRS DistrictContributions Required Staff Members

For the Year Made on Behalf Contributions Contributions CoveredEnded of the District to TRS to TRS Payroll

2014 6,938,258$ 438,845$ 6,989,254$ 109,206,819$ 2013 5,123,191 343,259 5,459,374 85,303,013 2012 5,306,817 338,893 6,012,556 93,946,302

The contributions made by the state on behalf of the District have been recorded in the governmental funds financial statements of the District as both state revenues and expenditures. These contributions are the legal responsibility of the State. Note 9 - Retiree Health Plan Plan Description The Alvin Independent School District contributes to the Texas Public School Retired Employees Group Insurance Program (TRS-Care), a cost-sharing multiple-employer defined benefit postemployment health care plan administered by the Teacher Retirement System of Texas (TRS). TRS-Care Retire Plan provides health care coverage for certain person (and their dependents) who retired under TRS. The statutory authority for the program is Texas Insurance Code, Chapter 1575. Section 1575 grants the TRS Board of Trustees the authority to establish and amend basic and optional insurance coverage for participants. TRS issues a publicly available financial report that includes financial statements and required supplementary information for TRS-Care. That report may be obtained by writing to the TRS Communications Department, 1000 Red River Street, Austin, Texas 78701, by calling the TRS Communications Department at 1-800-223-8778, or by downloading the report from the TRS Internet website, www.trs.state.tx.us, under the TRS Publications heading. Funding Policy Contribution requirements are not actuarially determined but are legally established each biennium by the Texas legislature. Texas Insurance Code, Sections 1575.202, 203, and 204 establish state, active employee, and public school contributions, respectively. The state of Texas and active public school employee contribution rates were 1.00% and 0.65% of public school payroll, respectively, with school districts contributing percentage of payroll set at 0.55% for the fiscal year 2014, 2013 and 2012. Per Texas Insurance Code 1575, the public school contribution may not be less than 0.25% or greater than 0.75% of the salary of each active employee of the public school. For staff members funded by federal programs, the federal programs are required to contribute 0.65 percent.

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Note 9 - Retiree Health Plan (continued) Contributions made by the State, District and Employees for the years 2014, 2013 and 2012, are as follows:

State TRS Care DistrictContributions Required Staff Members

For the Year Made on Behalf Contributions ContributionsEnded of the District to TRS Care to TRS Care2014 988,171$ 643,320$ 709,855$ 2013 406,606 490,204 554,466 2012 895,283 560,888 610,652

For the current fiscal year and each of the past two years, the District’s actual contributions were equal to 100 percent of the required contributions. The contributions made by the state on behalf of the District have been recorded in the governmental funds financial statements of the District as both state revenues and expenditures. These contributions are the legal responsibility of the State. The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 established prescription drug coverage for Medicare beneficiaries known as Medicare Part D. Under Medicare Part D, TRS-Care retiree drug subsidy payments from the federal government to offset certain prescription drug expenditures for eligible TRS-Care participants. For fiscal years 2014, 2013 and 2012, the subsidy payments received by TRS-Care on behalf of the District were $298,413, $388,527, and $208,342 respectively. These payments are recorded as equal revenues and expenditures in the governmental funds financial statement of the District. The Early Retiree Reinsurance Program (ERRP) is a provision of the Patient Protection and Affordable Care Act (PPACA) and provides reimbursement to plan sponsors for a portion of the cost of providing health benefits to retirees between the ages of 55–64 and their covered dependents regardless of age. An “early retiree” is defined as a plan participant aged 55–64 who is not eligible for Medicare and is not covered by an active employee of the plan sponsor. This temporary program is available to help employers continue to provide coverage to early retirees. ERRP reimbursement is available on a first come, first served basis for qualified employers that apply and become certified for the program. TRS has been certified for this program and has received funds from the ERRP program. These funds will be allocated to reporting agencies using the same basis as the Medicare Part D – On Behalf Payments (GASB 24) reporting that is done each year. Reporting Entities should report this allocation on their annual financial statements much like on behalf payments. The district did not receive a subsidy for fiscal year 2014 and 2013, and the subsidy payment received by TRS-Care on behalf of the District for 2012 was $230,342. Note 10 - Risk Management Property/Liability The District is exposed to various risks related to torts: theft of, damage to and destruction of assets; errors and omissions; and natural disasters. The District’s risk management program encompasses various means of protecting the District against loss by obtaining property, casualty and liability coverage through commercial insurance carriers, self-insurance and from participation in a risk pool. Settled claims have not exceeded insurance coverage in any of the three previous fiscal years. There has not been any significant reduction in insurance coverage from that of the previous year.

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Note 10 - Risk Management (continued) Health Insurance During the period ended June 30, 2014, employees of Alvin Independent School District were covered by a partially self-insured health insurance plan (the Plan) accounted for through an internal service fund. The District made contributions to cover the employees and the employees, at their option, authorized payroll withholdings to pay contributions for dependents. All contributions were paid to a third party administrator acting on behalf of the District. The Plan was authorized by state statute and was documented by contractual agreement. The contract between the District and the third party administrator is renewable annually. In accordance with state statute, the District was protected against unanticipated catastrophic individual or aggregate loss by stop-loss coverage up to $100,000 per individual carried through a commercial insurer licensed to do business in Texas in accordance with the Texas Insurance Code. The Districts contribution expense for benefits during the year totaled $8,089,219. Estimates of claims payable and of claims incurred but not reported at June 30, 2014, are reflected as accrued expenses of the Fund. The liabilities include an amount for claims that have been incurred but were not reported until after June 30, 2014. Because actual claims liabilities depend on such complex factors as inflation, changes in legal requirements and damage awards, the process used in computing claims liability is an estimate Workers’ Compensation During the period ended June 30, 2014, employees of the District were covered by a self-funded workers’ compensation insurance plan (the “Plan”). The District contributes to the plan based upon established salary rates. Contributions were paid to a District Internal Service Fund. The third party administrator acts on behalf of the District to administer claims filed against the self-funded pool. The plan was authorized under the rules of the Texas Insurance Code and was documented by contractual agreement. This contract between the District and the third party administrator is renewable annually and terms of coverage and premium costs are included in the contractual provision. In accordance with state statute, the school district was protected against unanticipated catastrophic individual or aggregate loss by stop-loss coverage carried through Safety National Casualty Corp., a commercial insurer licensed or eligible to do business in Texas in accordance with the Texas Insurance Code. Stop-Loss coverage was in effect for specific claims exceeding $350,000 and for aggregate loss exceeding $1,000,000. Analysis of claims liability for the health and workers’ compensation fund, for the fiscal year 2014, 2013 and 2012, is as follows:

Fiscal Beginning of Current Year Claims End of YearYear Year Accrual Estimates Payments Accrual2014 1,160,494$ 16,470,478$ 15,984,082$ 1,646,890$ 2013 1,915,004 12,030,370 12,784,880 1,160,494 2012 1,562,667 16,321,677 15,969,340 1,915,004

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Note 11 - Compensated Absences Compensated absences include sick leave, compensated time and non-duty pay. Sick Leave Sick leave is comprised of two components: An annual payment for unused sick leave and reimbursement upon retirement.

Annual payment for unused sick leave Beginning in the year following the year an employee has accumulated 90 days of state and local leave, the employee becomes eligible to receive payment for unused local sick leave on an annual basis in accordance with the following provisions:

Professional employees shall be paid 75% of the entry-level teacher’s daily rate of pay for the

previous school year for each unused day, up to a maximum of five days Paraprofessionals and support employees shall be paid 75% of their daily rate of pay, up to a

maximum of 75% of the entry-level teacher’s daily rate of pay for the previous school year for each unused day, up to a maximum of five days

Payment for sick leave shall be reduced one day for each local leave day used during the previous school year. Employees may choose to accumulate local sick leave days in lieu of payment until the balance of local and state days reaches 115. Days in excess of 115 shall be bought back by the District.

Reimbursement at Retirement Upon retiring under TRS, employees shall be paid for each day of accumulated unused local leave, to a maximum of 45 days, at one-half their daily rate of pay, to a maximum of $50 per day. Payment shall be made at the time of retirement. Compensated Leave At the District’s option, employees not exempt under the Fair Labor Standards Act (non-exempt) may receive compensatory time off, rather than overtime pay, for overtime worked. The employee shall be informed in advance if overtime hours will accrue compensatory time rather than pay. Compensatory time earned by non-exempt employees may not accrue beyond a maximum of 60 hours. If an employee has a balance of more than 60 hours of overtime, the employee will be required to use compensatory time or, at the District’s option, will receive overtime pay. In recent years, the administration has allowed a carryover of twenty (20) hours from one year to another. An employee shall use compensatory time within the duty year in which it is earned. If the employee has any unused compensatory time remaining at the end of the fiscal year, the employee shall receive overtime pay.

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Note 12 - Commitments and Contingent Liabilities Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the District expects such amounts, if any, to be immaterial. The District is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the District's counsel, the resolution of these matters will not have a material adverse effect on the financial condition of the District. Note 13 - Shared Services Arrangement Energy for Schools - The District participates in the Energy for Schools shared services arrangement. Energy for Schools is a state electricity procurement cooperative with more than 140 member districts across the state of Texas. Member districts are charged for their electric consumption at contracted rates. The expenditures attributable to the District’s participation totaled $3,519,612 for the fiscal year. Hearing Impaired - The District participates in a Shared Service Arrangement (SSA) for the Galveston-Brazoria Co-op for the Hearing Impaired with nine other school districts. Approximately 25.9% of the total SSA expenditures are attributable to the District. Other member districts include Clear Creek ISD, Dickinson ISD, Friendswood ISD, Galveston ISD, Hitchcock ISD, La Marque ISD, Pearland ISD, Santa Fe ISD and Texas City ISD. The Clear Creek Independent School District is the fiscal agent for the program and all services are provided by the fiscal agent. The member districts provide the funds to the fiscal agent. Vision Cooperation - The District is a part of a vision cooperative that serves three area districts (Alvin, Pearland and Santa Fe). The District provides direct instruction and support services, such as Brailed material, and equipment) for students identified with vision impairments for all three districts. The expenditures attributable to the District’s participation totaled $131,410 for the fiscal year. Orientation and Mobility (O&M) - The District is a part of an agreement that serves three other area districts (Alvin, Pearland and Santa Fe). The purpose of the share service agreement is to share in the expense of providing certified O&M specialists, who are certified with the Academy for Certification of Vision Rehabilitation and Education Professionals to provide O&M services to visually impaired students eligible for special education under the Individuals for Disabilities Act. The expenditures attributable to the District’s participation totaled $63,342 for the fiscal year. Juvenile Justice Alternative Education Program - The District is required by law to participate in a Juvenile Justice Alternative Education Program (JJAEP) in coordination with the county juvenile board. A JJAEP is mandated by Chapter 37 of the Texas Education Code to provide education for certain expelled and adjudicated youth based on standards of academic accountability and performance as approved by the Texas Juvenile Probation Commission. The District paid $15,700 to place students in a JJAEP in the fiscal year 2014.

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Note 14 - Arbitrage In accordance with the provisions of Section 148(f) of the Internal Revenue Code of 1986, as amended, bonds must satisfy certain arbitrage requirements. Positive arbitrage is the excess of (1) the amount earned in investments purchased with bonds proceeds, or (2) the amount that such investments would have earned had such investments been invested at a rate equal to the yield on the bond issue. In order to comply with the arbitrage rebate requirements, positive arbitrage must be paid to the U.S. Treasury at the end of each five-year anniversary date of the bond issue. The District has no rebatable arbitrage liability at June 30, 2014. Note 15 - Attendance Incentive, Recruitment and Retention Plan for Employees The District offers its employees the opportunity to participate in an attendance Incentive plan. The Attendance Incentive, Recruitment and Retention Plan for Employees is designed to reward employees for reaching certain attendance and campus goals, enhance employees' retirement savings and provide an incentive to recruit and retain employees. This is a "401(a)" plan as defined under the Internal Revenue Code. All assets and income of the plan are held in trust for the exclusive benefit of participants and their beneficiaries. The District provides neither administrative services nor investment advice for the plan. Accordingly, no assets or liabilities are reported in the financial statement of the District. Note 16 - Fund Equity According to District policy, as prescribed by GASB Statement No. 54, the Board may establish commitments and assignments of fund balance from time to time in order to meet specific District needs. A summary of committed and assigned fund balance as of June 30, 2014, for all governmental types follows:

Other General Governmental

Fund FundsCommitted Fund Balance

Commited - other:Future TIRZ payments 2,000,000$ -$ Catastrophic contingency 910,137 - Campus activity funds - 1,744,285

Total Committed 2,910,137$ 1,744,285$

Assigned Fund BalanceAssigned - other:

Operating expenditures (3 months) 37,500,000$ -$ I&S commitment to lower tax rate 3,700,000 - CTE Projects (prior to potential bond funding) 6,000,000 - HB1 Carry-over 700,000 - Center for Learning and Leadership 5,000,000 - 1/5 Copier Costs (to prepare for purchase in future) 200,000 - District Priorities 1,000,000 - Future Elementary Land Purchase 2,000,000 -

Total Assigned 56,100,000$ -$

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Note 17 - Subsequent Event In June, 2014, the Superintendent resigned for another district. The Board is currently in the process of searching for a replacement to be hired by the end of December. On September 9, 2014, the District’s Board of Trustees approved orders authorizing the issuance, sale and delivery of Unlimited Tax Schoolhouse Bonds Series 2014C, in a maximum amount not to exceed $175,000,000. The sale is contingent upon meeting certain parameters established by the Board of Trustees. The Board approved parameters included the amount, the interest rate, price and terms. The Bonds will be issued for the purpose of (a) the construction, acquisition and equipment of school buildings in the District, the purchase of the necessary sites for school buildings in the District and the purchase of school buses, (b) refunding and defeasing the Refunded Bonds, and (c) paying the cost of issuance.

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REQUIRED SUPPLEMENTARY INFORMATION

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ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit G-1BUDGETARY COMPARISON SCHEDULE

GENERAL FUND


Budgeted Amounts

Data Control Codes Original Final

Actual Amounts, Budgetary

Basis

Variance with Final Budget -

Positive (Negative)

Revenues5700 Local revenues 58,041,185$ 59,247,639$ 60,646,760$ 1,399,121$ 5800 State program revenues 104,992,904 107,992,904 121,549,732 13,556,828 5900 Federal program revenues 998,635 1,917,635 1,796,942 (120,693) 5020 Total revenues 164,032,724 169,158,178 183,993,434 14,835,256


0011 Instruction 87,546,859 92,587,183 90,744,597 1,842,586 0012 Instruction resources and media services 2,880,517 2,680,465 2,504,676 175,789 0013 Curriculum and instructional staff development 1,018,061 592,856 427,740 165,116 0021 Instructional leadership 3,651,299 3,200,235 3,132,552 67,683 0023 School leadership 9,206,071 9,031,780 8,779,113 252,667 0031 Guidance, counseling and evaluation services 3,612,134 3,622,133 3,527,768 94,365 0033 Health services 1,690,006 1,440,006 1,293,183 146,823 0034 Student transportation 10,678,986 10,178,986 9,284,861 894,125 0035 Food services - 102,400 23,051 79,349 0036 Extracurricular activities 3,163,395 3,583,599 3,313,989 269,610 0041 General administration 8,845,057 7,562,071 6,500,735 1,061,336 0051 Plant maintenance and operations 15,028,625 14,895,710 13,784,274 1,111,436 0052 Security and monitoring services 2,044,698 2,044,698 1,587,587 457,111 0053 Data processing services 3,689,984 3,939,986 3,623,074 316,912 0061 Community services 536,934 536,934 285,040 251,894

Debt Service:

0071 Principal on long-term debt 365,000 535,000 535,000 - 0171 Interest on long-term debt 226,700 156,700 116,943 39,757

Capital outlay:

0081 Facilities acquisition and construction 56,000.00 220,542 95,007 125,535 Intergovernmental:

0093Payments related to shared services arrangements 4,432,922 4,432,922 3,519,612 913,310

0095 Payments to Juvenile Justice Alt. Ed. Prgm. 143,054 143,054 15,700 127,354 0097 Payments to tax increment fund 5,150,000 4,150,000 4,631,925 (481,925) 6030 Total Expenditures 163,966,302 165,637,260 157,726,427 7,910,833 1100 Excess (deficiency) of revenues over expenditures 66,422 3,520,918 26,267,007 22,746,089

Other Financing Sources (Uses):7912 Sale of real and personal property - - 63,802 63,802 8911 Transfers out - (21,789,048) (21,758,488) 30,560 7080 Total other financing sources and uses - (21,789,048) (21,694,686) 94,362

1200 Net change in fund balances 66,422 (18,268,130) 4,572,321 22,840,451 0100 Fund balances - beginning 72,111,746 72,111,746 72,111,746 - 3000 Fund balances - ending 72,178,168$ 53,843,616$ 76,684,067$ 22,840,451$

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ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit G-2 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

58

The District adopts annual appropriations type budgets for the General Fund, Food Service Special Revenue Fund, and the Debt Service Fund using the same method of accounting as for financial reporting, as required by law. The remaining Special Revenue Funds (primarily federal grant programs) utilize a managerial type budget approved at the fund level by the Board of Trustees upon acceptance of the grants. These grants are subject to Federal, State and locally imposed project length budgets and monitoring through submission of reimbursement reports. Expenditures may not legally exceed budgeted appropriations at the function or activity level. Expenditure requests which would require an increase in total budgeted appropriations must be approved by the Trustees through formal budget amendment. State law prohibits trustees from making budget appropriations in excess of funds available and estimated revenues. State law also prohibits amendment of the budget after fiscal year end. Supplemental appropriations were made to the General Fund during the fiscal year ended June 30, 2014. During the fiscal year ended June 30, 2014, function 97 expenditures exceeded budgeted appropriations in the General Fund by $481,925; and function 71 expenditures exceeded budgeted appropriation by $1,839 in the Debt Service Fund. The administrative level at which responsibility for control of budgeted appropriations begins is at the organizational level within each function of operations. The finance department reviews closely the expenditure requests submitted by the various organizational heads (principal and department heads) throughout the year to ensure proper spending compliance. No public funds of the District shall be expended in any manner other than as provided for in the budget adopted by the Board of Trustees. The official school budget was prepared for adoption for budgeted governmental fund types by June 20, 2013. The budget was formally adopted by the Board of Trustees at a duly advertised public meeting prior to the expenditure of funds. The final amended budget is filed with the Texas Education Agency (TEA) through inclusion in the annual financial and compliance report. Encumbrance accounting is utilized in all government fund types. Encumbrances for goods or purchased services are documented by purchase orders or contracts. Under Texas law, appropriations lapse at year-end and encumbrances outstanding at that time are appropriately provided for in the subsequent year’s budget. End of the year outstanding encumbrances that were provided for in the subsequent year’s budget were $382,787 for the General Fund.

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OTHER SUPPLEMENTARY INFORMATION

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Fund Number Fund Name & Description

211 ESEA Title I, Part A - Improving Basic Programs - Supplemental funds to help low-performing schoolsprovide opportunities for children to acquire skills needed to meet state student performance standards.

215 ESEA Title I, Part D - Deliquent Programs - Supplemental funds to help low-performing schoolsprovide opportunities for children to acquire skills needed to meet state student performance standards.

224 IDEA, Part B - Formula - Operate educational programs for children with disabilities.

225 IDEA, Part B - Preschool - Program for preschool children with disabilities.

240 National School Breakfast and Lunch Program - Program that provides federal reimbursementrevenues originating from the United States Department of Agriculture.

242 Summer Feeding Program TDA - Provide meals to the community based on the average number of dailyparticipants.

244 Career and Technology - Basic - Provide career and technical education to develop new and/or improvecareer and technical education programs for paid and unpaid employment.

255 ESEA, Title II, Part A - Teacher and Principal Training and Recruiting - Increase student academicachievement through increasing the number of qualified teachers, assistant principals and principals.

263 Title III, Part A - English Language Acquisition and Language Enhancement - Improve theeducation of limited English proficient children by assisting the children to learn English.

289 Federally Funded Special Revenue Funds - Miscellaneous federal funds that have not been assigned aTexas Education Fund number.

in the Special Revenue Funds are described below.

Nonmajor Governmental Funds

Special Revenue Funds

The Special Revenue Funds are used to account for all federal, state and locally-funded grants. These grantsare awarded to the District with the purpose of accomplishing specific educational goals. Grants included

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383 Region IV Professional Staff Development - funds granted to develop staff.

385 Visually Impaired State - Provide teachers and services to students who are visually handicapped.

397 Advanced Placement Incentives - Professional development of teachers teaching advanced classes.

404 Student Success Initiative - Implement programs that increase the preparedness of students in academics for at risk.

410 Instructional Materials Allotment - State funds allotted to school districts to purchase instructional materials and technology-related equipment and services.

427 CIS-CJD Intervention Services Grant - provides funds to reduce school drop-outs while improving attendance, behavior and academic achievement. Funds help pay for Communities in Schools person.

429 State Funded Special Revenue - Provide educational materials.

459 SSA - Vision and O & M - Provide educational programs for children with vision disabilities.

461 Campus Activity - proceeds from fundraising activities, vending sales, corporate and private donations to school-sponsored activities benefiting students and staff of the campus.

Nonmajor Governmental Funds (Continued)

Special Revenue Funds (Continued)

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ALVIN INDEPENDENT SCHOOL DISTRICTCOMBINING BALANCE SHEET

ALL NONMAJOR GOVERNMENTAL FUNDS

June 30, 2014

211 215 224

Data Control Codes

ESEA Title I Part A

ESEA, Title I Part D

IDEA B Formula

Assets1110 Cash and temporary investments -$ -$ -$

Receivables:1240 Receivables from other governments 333,147 609,239 1260 Due from other funds 1,727 - - 1290 Other receivables 155 - - 1310 Inventories, at cost - - - 1410 Prepaid items - - - 1000 Total Assets 335,029$ -$ 609,239$

Liabilities and Fund BalancesLiabilities:

Current Liabilities:

2110 Accounts payable 33,305$ -$ 9,884$ 2150 Payroll deduction and withholdings payable - - - 2160 Accrued wages payable 83,547 - 132,489 2170 Due to other funds 218,177 - 466,866 2180 Due to other governments - - - 2000 Total Liabilities 335,029 609,239

Fund Balance:Nonspendable:

3410 Nonspendable - inventories - - - 3430 Nonspendable - prepaid items - - -

Restricted:3450 Restricted - grant funds - - -

Committed:3545 Committed - other - - - 3000 Total Fund Balances - - - 4000 Total Liabilities and

Fund Balances 335,029$ -$ 609,239$

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Exhibit H-1Page 1 of 3

225 240 242 244 255 263 289

IDEA B Preschool

National School

Breakfast and Lunch

Program

Summer Feeding Program

Career and Technical -

BasicESEA Title II, Part A TPTR

Title III Part A - LEP

Federally Funded Special

Revenue Funds

-$ 3,341,311$ -$ -$ -$ -$ -$

14,989 76,561 - 49,184 147,876 70,136 1,540 - 128 - - - - - - 17,323 - - - - - - 89,409 - - - - - - 433 - - - - -

14,989$ 3,525,165$ -$ 49,184$ 147,876$ 70,136$ 1,540$

149$ 243,685$ -$ 1,577$ 93,505$ -$ -$ - - - - - - - - 131,777 - - - 13,704 -

14,840 7,740 - 47,607 54,371 56,432 1,540 - - - - - - -

14,989 383,202 49,184 147,876 70,136 1,540

- 89,409 - - - - - - 433 - - - - -

- 3,052,121 - - - - -

- - - - - - - - 3,141,963 - - - - -

14,989$ 3,525,165$ -$ 49,184$ 147,876$ 70,136$ 1,540$

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June 30, 2014

383 385 397

Data Control Codes

Region IV Professional

Staff Development

State Supplemental

Visually Impaired

Advanced Placement Incentive

Assets

1110 Cash and temporary investments -$ -$ 12,547$ Receivables:

1240 Receivables from other governments - - 3,600 1260 Due from other funds - - - 1290 Other receivables - - - 1310 Inventories, at cost - - - 1410 Prepaid items - - - 1000 Total Assets -$ -$ 16,147$



2110 Accounts payable -$ -$ -$ 2150 Payroll deduction and withholdings payable - - - 2160 Accrued wages payable - - - 2170 Due to other funds - - - 2180 Due to other governments - - - 2000 Total Liabilities - -



Restricted:

3450 Restricted - grants funds - - 16,147 Committed:

3545 Committed - other - - - 3000 Total Fund Balances 16,147 4000 Total Liabilities and

Fund Balances $ $ 16,147$

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404 410 427 429 459 461

Student Success

Initiative

Instructional Material

Allotment

CIS-CJD Intervention

Services Grant

State Funded Special

RevenueSSA - Vision and O & M

Campus Activity Funds

-$ 133,077$ -$ 251,101$ -$ 1,692,821$

- 52,005 4,558 - - - - - - - - 4,626 - - - - 105,285 71,287 - - - - - - - - - - - 12,118

$ 185,082$ 4,558$ 251,101$ 105,285$ 1,780,852$

-$ 1,130$ -$ -$ 38$ 20,776$ - - - - - 114 - - - - 49,945 - - - 4,558 - 55,302 2,418 - - - - - 1,141

1,130 4,558 - 105,285 24,449

- - - - - - - - - - - 12,118

- 183,952 - 251,101 - -

- - - - - 1,744,285 183,952 251,101 1,756,403

$ 185,082$ 4,558$ 251,101$ 105,285$ 1,780,852$

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ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit H-1COMBINING BALANCE SHEET Page 3 of 3ALL NONMAJOR GOVERNMENTAL FUNDS

June 30, 2014

Data Control Codes

Total Nonmajor Governmental

Funds

Assets1110 Cash and temporary investments 5,430,857$

Receivables: 1240 Receivables from other governments 1,362,835 1260 Due from other funds 6,481 1290 Other receivables 194,050 1310 Inventories, at cost 89,409 1410 Prepaid items 12,551 1000 Total Assets 7,096,183$


Current Liabilities: 2110 Accounts payable 404,049$ 2150 Payroll deduction and withholdings payable 114 2160 Accrued wages payable 411,462 2170 Due to other funds 929,851 2180 Due to other governments 1,141 2000 Total Liabilities 1,746,617

Fund Balance:

Nonspendable: 3410 Nonspendable - inventories 89,409 3430 Nonspendable - prepaid items 12,551

Restricted:3450 Restricted - grants funds 3,503,321

Committed: 3545 Committed - other 1,744,285 3000 Total Fund Balances 5,349,566 4000 Total Liabilities and

Fund Balances 7,096,183$

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ALVIN INDEPENDENT SCHOOL DISTRICTCOMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCES - ALL NONMAJOR GOVERNMENTAL FUNDS


211 215 224

Data Control Codes

ESEA Title I Part A


IDEA B Formula

Revenues

5700 Local, intermediate, and out-of-state -$ -$ -$ 5800 State program revenues - - - 5900 Federal program revenues 2,565,279 260 2,985,324 5020 Total Revenues 2,565,279 260 2,985,324


0011 Instruction 2,098,854 - 1,168,061 0012 Instruction resources and media services - - - 0013 Curriculum and instructional staff development 267,488 - 97,430 0021 Instructional leadership 100,314 260 8,504 0023 School leadership 98,623 - 2,790 0031 Guidance, counseling and evaluation services - - 1,708,539 0033 Health services - - - 0035 Food service - - - 0036 Extracurricular activities - - - 0041 General administration - - - 0052 Security and monitoring services - - - 0053 Data processing services - - - 0061 Community services - - - 6030 Total Expenditures 2,565,279 260 2,985,324

1100 Excess (deficiency) of revenues over expenditures - - -

Other Financing Sources (Uses)

7912 Sale of real or personal property - - - 7080 Total other financing sources and uses - - -

1200 Net change in fund balances - - -

0100 Fund balance - July 1 (beginning) - - -

3000 Fund balance - June 30 (ending) -$ -$ -$

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225 240 242 244 255 263 289

IDEA B Preschool

National School

Breakfast and Lunch Program



Basic

ESEA Title II, Part A

TPTRTitle III Part

A - LEP


Revenue Funds

-$ 3,546,511$ -$ -$ -$ -$ -$ - 342,882 - - - - -

53,568 6,295,981 92,579 185,890 419,823 312,157 5,992 53,568 10,185,374 92,579 185,890 419,823 312,157 5,992

51,209 - - 103,930 6,725 120,430 4,452 - - - - - - -

2,359 - - 65,232 300,129 163,760 - - - - 4,033 56,696 - - - - - - 47,429 - - - - - 12,695 - 27,967 - - - - - - - - - 10,322,670 92,579 - - - - - - - - - - - - - - - 8,844 - - - - - - - - 1,540 - - - - - - - - - - - - - -

53,568 10,322,670 92,579 185,890 419,823 312,157 5,992

- (137,296) - - - - -

- 2,115 - - - - - - 2,115 - - - - -

- (135,181) - - - - -

- 3,277,144 - - - - -

-$ 3,141,963$ -$ -$ -$ -$ -$

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ALVIN INDEPENDENT SCHOOL DISTRICTCOMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGESIN FUND BALANCES - ALL NONMAJOR GOVERNMENTAL FUNDSFor the Fiscal Year Ended June 30, 2014

383 385 397

Data Control Codes


Staff Development

State Supplemental

Visually Impaired


Revenues

5700 Local, intermediate, and out-of-state -$ -$ -$ 5800 State program revenues - 20,000 8,100 5900 Federal program revenues - - - 5020 Total Revenues - 20,000 8,100


0011 Instruction - 20,000 27 0012 Instruction resources and media services - - - 0013 Curriculum and instructional staff development - - 4,525 0021 Instructional leadership 14,768 - - 0023 School leadership 5,007 - - 0031 Guidance, counseling and evaluation services - - - 0033 Health services - - - 0035 Food service - - - 0036 Extracurricular activities - - - 0041 General administration - - - 0052 Security and monitoring services - - - 0053 Data processing services 1,000 - - 0061 Community services - - - 6030 Total Expenditures 20,775 20,000 4,552

1100Excess (deficiency) of revenues over expenditures (20,775) - 3,548



1200 Net change in fund balances (20,775) - 3,548

0100 Fund balance - July 1 (beginning) 20,775 - 12,599

3000 Fund balance - June 30 (ending) -$ -$ 16,147$

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404 410 427 429 459 461

Student Success

Initiative


Allotment


Services Grant




-$ -$ -$ -$ 453,710$ 1,582,297$ 12,808 307,551 44,688 53 - -

- - - - - - 12,808 307,551 44,688 53 453,710 1,582,297

12,808 315,081 44,688 - 450,678 796,900 - - - - - 222,179 - 1,130 - - 3,032 24,518 - - - - - - - - - - - 1,115 - - - - - 1,844 - - - - - 3 - - - - - 3,316 - - - - - 584,574 - - - - - 1,976 - - - - - 22,853 - - - - - - - - - - - -

12,808 316,211 44,688 - 453,710 1,659,278

- (8,660) - 53 - (76,981)

- - - - - - - - - - - -

- (8,660) - 53 - (76,981)

- 192,612 - 251,048 - 1,833,384

-$ 183,952$ -$ 251,101$ -$ 1,756,403$

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ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit H-2COMBINING STATEMENT OF REVENUES, EXPENDITURES, Page 3 of 3IN FUND BALANCES - ALL NONMAJOR GOVERNMENTAL FUNDSFor the Fiscal Year Ended June 30, 2014

Data Control Codes


FundsRevenues

5700 Local, intermediate, and out-of-state 5,582,518$ 5800 State program revenues 736,082 5900 Federal program revenues 12,916,853 5020 Total Revenues 19,235,453

Expenditures Current:

0011 Instruction 5,193,843 0012 Instruction resources and media services 222,179 0013 Curriculum and instructional staff development 929,603 0021 Instructional leadership 184,575 0023 School leadership 154,964 0031 Guidance, counseling and evaluation services 1,751,045 0033 Health services 3 0035 Food service 10,418,565 0036 Extracurricular activities 584,574 0041 General administration 10,820 0052 Security and monitoring services 24,393 0053 Data processing services 1,000 0061 Community services 6030 Total Expenditures 19,475,564

1100 Excess (deficiency) of revenues over expenditures (240,111)

Other Financing Sources (Uses) 7912 Sale of real or personal property 2,115 7080 Total other financing sources and uses 2,115

1200 Net change in fund balances (237,996)

0100 Fund balance - July 1 (beginning) 5,587,562

3000 Fund balance - June 30 (ending) 5,349,566$

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INTERNAL SERVICE FUNDS

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COMBINING STATEMENT OF NET POSITION


752 753 773

Data Control Codes Print Shop

Health Insurance

Workers' Comp Self-Insurance


1110 Cash and cash equivalents 206,307$ -$ -$ Receivables:

1250 Accrued interest receivable - - - 1260 Due from other funds 2,200 - - 1290 Other receivables - - - 1300 Inventories, at cost 23,156 - -

Total Current Assets 231,663

Non-current Assets:Capital Assets:

1530 Furniture and equipment 61,532 - - 1573 Accumulated depreciation - Equipment (16,517) - -

Total Non-current Assets 45,015 - - 1000 Total Assets 276,678

LiabilitiesCurrent Liabilities:

2110 Accounts payable 17,740 - - 2200 Accrued expenses 9,575 - -

Total current liabilities 27,315 - - 2000 Total Liabilities 27,315 - -

Net Position3200 Net investment in capital assets 45,015 - - 3900 Unrestricted 204,348 - - 3000 Total Net Position 249,363$ -$ -$


June 30, 2014

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Exhibit H-3

755 770

Property & Casualty

Insurance

Health & Workers'

Compensation Fund Total

5,032,585$ 5,432,652$ 10,671,544$

1,726 - 1,726 - - 2,200 - 37,160 37,160 - - 23,156

5,034,311 5,469,812 10,735,786

- - 61,532 - - (16,517) - - 45,015

5,034,311 5,469,812 10,780,801

- 437,180 454,920 - 1,646,890 1,656,465 - 2,084,070 2,111,385 - 2,084,070 2,111,385

- - 45,015 5,034,311 3,385,742 8,624,401 5,034,311$ 3,385,742$ 8,669,416$

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ALVIN INDEPENDENT SCHOOL DISTRICTCOMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION



752 753 773


Health Insurance


Operating Revenues

5749 Miscellaneous revenue from local sources -$ -$ -$ 5754 Interfund services provided and used 291,177 - - 5020 Total operating revenues 291,177 - -

Operating Expenses6100 Payroll costs 134,845 - - 6200 Purchased and contracted services 78,914 - - 6300 Supplies and materials 51,773 - - 6400 Claims expense and other operating expenses - - - 6449 Depreciation 4,731 - - 6030 Total Operating Expenses 270,263 - -

1200 Operating Income (Loss) 20,914 - -

Non-Operating Revenues (Expenses)7020 Investment earnings - - - 8951 Loss on sale of real and personal property (33,924) - -

Total Non-operating Revenues (33,924) - -

Income (Loss) before Transfers (13,010) - -

Transfers

7915 Transfers in - - - 8911 Transfers out - (117,173) (4,138,139)

Total Transfers - (117,173) (4,138,139) 1200 Change in Net Position (13,010) (117,173) (4,138,139)

0100 Net Position - July 1 (Beginning) 262,373 117,173 4,138,139

3300 Net Position - June 30 (Ending) 249,363$ -$ -$

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Exhibit H-4

755 770

Property & Casualty

Insurance

Health & Workers'


-$ 3,723$ 3,723$ - 17,192,054 17,483,231 - 17,195,777 17,486,954

- - 134,845 - 41,900 120,814 - - 51,773 - 18,026,252 18,026,252 - - 4,731 - 18,068,152 18,338,415

- (872,375) (851,461)

8,403 2,805 11,208 - - (33,924)

8,403 2,805 (22,716)

8,403 (869,570) (874,177)

- 4,255,312 4,255,312 - - (4,255,312) - 4,255,312 -

8,403 3,385,742 (874,177)

5,025,908 - 9,543,593

5,034,311$ 3,385,742$ 8,669,416$

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ALVIN INDEPENDENT SCHOOL DISTRICTCOMBINING STATEMENT OF CASH FLOWS



752 753 773

Print ShopHealth

Insurance


Increase (Decrease) in Cash and Cash EquivalentsCash Flows from Operating Activities:

Cash receipts from customers and with other funds - health 288,977$ $ 37,160$ Cash payments to suppliers for goods and services (118,016) (1,355,597) (595,589) Cash payments to employees (134,621) - -

Net Cash Provided by (Used for) Operating Activities 36,340 (1,355,597) (558,429)

Cash Flows from Non-Capital Financing Activities:Advances from other funds - - Advances to other funds - (117,173) (4,138,139)

Net Cash Provided by (Used for) Non-CapitalFinancing Activities - (117,173) (4,138,139)

Cash Flows from Capital and Related Financing Activities:Acquisition of capital assets (48,273) - -

Net Cash Provided by (Used for) Capital and Related Financing Activities (48,273) - -

Cash Flows from Investing Activities:Interest on investments - - -

Net Cash Provided by Investing Activities - - -

Net Increase in Cash and Cash Equivalents (11,933) (1,472,770) (4,696,568) Cash and Cash Equivalents at Beginning of Year 218,240 1,472,770 4,696,568 Cash and Cash Equivalents at End of Year 206,307$ -$ -$

Reconciliation to Balance Sheet Cash and Cash Equivalents 206,307$ -$ -$ Cash and Cash Equivalents per Balance Sheet 206,307$ -$ -$


Provided by Operating Activities:Operating Income (Loss) 20,914$ $ $ Adjustments to Reconcile Operating Income to Net Cash

Provided by Operating Activities:Depreciation 4,731 - -

Change in Assets and Liabilities:Decrease (increase) in Receivables - - 37,160 Decrease (increase) in Interfund Receivables (2,200) - - Decrease (increase) in Inventories (2,104) - - Increase (decrease) in Accounts Payable 14,775 (270,518) (254,766) Increase (decrease) in Payables to Others - (265,408) - Increase (decrease) in Accrued Expenses 224 (819,671) (340,823)

Net Cash Provided by (Used for) Operating Activities 36,340$ (1,355,597)$ (558,429)$

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Exhibit H-5

755 770

Property & Casualty

Insurance

Health & Workers'


-$ 17,158,617$ 17,484,754$ - (15,984,082) (18,053,284) - - (134,621) - 1,174,535 (703,151)

- 4,255,312 4,255,312 - - (4,255,312)

- 4,255,312 -

- - (48,273)

- - (48,273)

6,677 2,805 9,482 6,677 2,805 9,482

6,677 5,432,652 (741,942) 5,025,908 - 11,413,486 5,032,585$ 5,432,652$ 10,671,544$

5,032,585$ 5,432,652$ 10,671,544$ 5,032,585$ 5,432,652$ 10,671,544$

-$ (872,375)$ (851,461)$

- - 4,731

- (37,160) - - - (2,200) - - (2,104) - 437,180 (73,329) - - (265,408) - 1,646,890 486,620

-$ 1,174,535$ (703,151)$

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ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit H-6STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS


Balance BalanceJune 30, 2013 Additions Deductions June 30, 2014

Student ActivitiesAssets:

Cash and Cash Equivalents 647,952$ 53,805$ -$ 701,757$ Receivables:

Due From Other Funds 1,114 2,194 - 3,308 Deferred Expenses 17,648 - 17,648 -

Total Assets 666,714$ 55,999$ 17,648$ 705,065$

Liabilities:Accounts Payable 39,570$ -$ 13,615$ 25,955$ Due to Other Funds 124 4 - 128 Due to Student Groups 627,020 51,962 - 678,982

Total Liabilities 666,714$ 51,966$ 13,615$ 705,065$

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REQUIRED TEA SCHEDULES

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ALVIN INDEPENDENT SCHOOL DISTRICTSCHEDULE OF DELINQUENT TAXES RECEIVABLE


1 2 3 10

Net Assessed/Appraised BeginningLast Ten Tax Rates Value For School Balance

Fiscal Years Maintenance Debt Service Tax Purposes 7/1/13

2005 and prior Various Various Various 480,501$

2006 1.441000 0.264800 2,482,291,828 104,318

2007 1.317700 0.228200 3,271,284,300 118,032

2008 1.040000 0.288200 3,967,086,809 114,185

2009 1.040000 0.288200 4,559,307,338 151,836

2010 1.040000 0.264100 4,805,508,857 185,363

2011 1.040000 0.264100 4,872,422,130 236,521

2012 1.040000 0.304100 4,995,537,162 440,789

2013 1.040000 0.289100 5,196,626,439 1,479,650

2014 1.040000 0.289100 5,662,268,528 -

1000 Totals 3,311,195

Penalty and interest receivable on taxes

Total taxes receivable per Exhibit C-1

9000 Portion of Row 1000 for Taxes Paid into TaxIncrement Zone Under Chapter 311, Tax Code(Function 97) -$

Supplemental Tax Increment Zone Payment(Function 97) -

Total Payment into Tax Increment Zone -$

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Exhibit J-1

20 30 30a 40 50

Current Maintenance Debt Service Entire EndingYear's Total Total Year's Balance

Total Levy Collections Collections Adjustments 6/30/14

-$ 14,487$ 1,959$ (68,059)$ 395,996$

- 4,557 837 (799) 98,125

- 6,618 1,146 (1,452) 108,816

- 10,133 2,808 (1,659) 99,585

- 26,156 7,248 7,855 126,287

- 58,323 14,811 59,765 171,994

- 81,809 20,775 50,795 184,732

- 178,534 52,204 54,805 264,856

- 792,653 220,342 (12,070) 454,585

75,257,211 57,793,727 16,065,545 - 1,397,939

75,257,211 58,966,997 16,387,675 89,181 3,302,915

1,715,300

5,018,215$

-$ 13,188,997$ 3,666,325$ -$ -$

- 1,334,993 - - -

-$ 14,523,990$ 3,666,325$ -$ -$

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ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit J-4

NATIONAL SCHOOL BREAKFAST AND LUNCH PROGRAM


Child NutritionBudget

Data Control Codes Original Final Actual

Variance Favorable

(Unfavorable)

Revenues5700 Local, Intermediate, and Out-of-State 3,424,953$ 3,424,953$ 3,546,511$ 121,558$ 5800 State Program Revenues 53,000 53,000 342,882 289,882 5900 Federal Program Revenues 6,122,856 6,282,856 6,295,981 13,125 5020 Total Revenues 9,600,809 9,760,809 10,185,374 424,565


0035 Food Services 9,477,924 11,058,957 10,322,670 736,287 6030 Total Expenditures 9,477,924 11,058,957 10,322,670 736,287

1100 Excess (Deficiency) Revenues Over

Expenditures 122,885 (1,298,148) (137,296) 1,160,852

Other Financing Sources (Uses):7912 Sale of real or personal property - - 2,115 2,115 7080 Total other financing sources and uses - - 2,115 2,115

1200 Net change in fund balance 122,885 (1,298,148) (135,181) 1,162,967

0100 Fund Balance - July 1 (Beginning) 3,277,144 3,277,144 3,277,144 -

3000 Fund Balance - June 30 (Ending) 3,400,029$ 1,978,996$ 3,141,963$ 1,162,967$

BUDGETARY COMPARISON SCHEDULE

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DEBT SERVICE FUND


Debt Service FundBudget


Variance Favorable

(Unfavorable)

Revenues5700 Local, Intermediate, and Out-of-State 15,195,964$ 16,220,964$ 16,559,510$ 338,546$ 5800 State Program Revenues 8,168,464 9,004,464 9,203,953 199,489 5900 Federal Program Revenues 466,560 466,562 2 5020 Total Revenues 23,364,428 25,691,988 26,230,025 538,037

ExpendituresCurrent:Debt Service:

0071 Principal on long-term debt 9,280,000 9,280,000 9,280,000 - 0072 Interest on long-term debt 13,178,165 14,934,165 14,936,004 (1,839)

Intergovernmental:

0097 Payments to tax increment fund 906,263 926,263 916,492 9,771 6030 Total Expenditures 23,364,428 25,140,428 25,132,496 7,932

1100 Excess (Deficiency) Revenues Over Expenditures - 551,560 1,097,529 545,969

Other Financing Sources (Uses):7916 Premium or discount on issuance of bonds - - 1,926,573 1,926,573 7080 Total other financing sources and uses - - 1,926,573 1,926,573

1200 Net change in fund balance - 551,560 3,024,102 2,472,542




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STATISTICAL SECTION

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STATISTICAL SECTION (Unaudited)

This part of the Alvin Independent School District’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the District’s overall financial health. Page

Financial Trends - Tables 1-4 92

These schedules contain trend information to help the reader understand how the District’s financial performance and well-being have changed over time.

Revenue Capacity - Tables 5-8 101

These schedules contain information to help the reader assess the District’s most significant local revenue source, the property tax.

Debt Capacity - Tables 9-12

106

These schedules present information to help the reader assess the affordability of the District’s current levels of outstanding debt and the District’s ability to issue additional debt in the future.

Demographic and Economic Information - Tables 13-15 112

These schedules offer demographic and economic indicators to help the reader understand the environment within which the District’s financial activities take place.

Operating Information - Tables 16-19 116

These schedules contain service and infrastructure data to help the reader understand how the information in the District's financial report relates to the services the District provides and the activities it performs.

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ALVIN INDEPENDENT SCHOOL DISTRICTNET POSITION BY COMPONENT

LAST TEN FISCAL YEARS

(Unauditied)

2014 2013 2012 2011

Governmental Activities: Investment in Capital Assets 41,087,905$ 21,284,487$ 12,467,024$ 13,437,882$ Restricted 9,289,713 10,362,221 6,691,092 7,402,790 Unrestricted 89,138,644 82,954,421 81,035,631 66,508,617 Total Primary Government Net Position 139,516,262$ 114,601,129$ 100,193,747$ 87,349,289$

Note: The District fiscal year end date was changed from August 31 to June 30 with the fiscal year ended June 30, 2013, being a ten month conversion year.

Source: The Statement of Net Position for Alvin Independent School District

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Table 1

2010 2009 2008 2007 2006 2005

25,935,429$ 22,277,379$ 20,128,086$ 26,710,206$ 27,814,383$ 27,062,763$ 9,786,985 9,579,057 6,662,018 5,135,892 6,405,212 6,106,910

61,280,833 46,910,410 40,133,467 29,843,463 24,525,804 20,241,239 97,003,247$ 78,766,846$ 66,923,571$ 61,689,561$ 58,745,399$ 53,410,912$

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ALVIN INDEPENDENT SCHOOL DISTRICTCHANGE IN NET POSITION


(Unaudited)

Expenses 2014 2013 2012 2011Governmental Activities: Instruction 101,757,339$ 84,121,811$ 89,332,999$ 88,552,327$ Instructional Resources and Media Services 3,095,140 2,567,700 2,875,213 2,656,384 Curriculum and Instructional Staff Development 1,360,882 878,941 966,156 1,052,978 Instructional Leadership 3,335,201 2,456,964 2,161,103 1,793,949 School Leadership 9,124,317 6,883,810 7,959,849 7,703,374 Guidance, Counseling, and Evaluation Services 5,377,089 4,193,897 4,680,891 4,613,929 Health Services 1,324,532 1,162,180 1,257,983 1,175,196 Student Transportation 8,528,836 7,037,459 7,852,619 8,098,651 Food Services 10,543,386 8,604,974 9,155,687 8,966,386 Cocurricular/Extracurricular Activities 5,674,403 4,179,707 5,133,605 4,740,847 General Administration 6,596,383 5,056,372 5,856,134 5,091,874 Plant Maintenance and Operations 14,629,992 10,390,945 12,578,801 13,618,479 Security and Monitoring Services 1,737,701 1,414,771 1,663,147 1,737,964 Data Processing Services 5,294,507 4,555,413 3,811,208 4,373,584 Community Services 326,154 292,866 342,441 231,428 Interest and fiscal charges on Long-term Debt 16,814,512 11,481,012 13,854,946 14,760,457 Facilities Acquisition and Construction 983,798 255,730 1,005,916 1,079,628

Payments related to shared services arrangements 3,519,612 2,885,736 2,996,745 3,949,205 Juvenile Justice Alternative Education Prog 15,700 14,800 30,800 72,500 Tax Increment Fund 5,548,417 5,412,702 6,638,195 3,927,960

Total Primary Government Expenses 205,587,901 163,847,790 180,154,438 178,197,100

Program Revenues Governmental Activities: Charges for Services Instruction 790,481 861,085 929,543 869,712 Instructional Resources and Media Services 205,525 191,352 228,001 198,355 Curriculum and Staff Development 15,810 15,946 - 15,258 Instructional Leadership - - - - School Leadership - 15,946 - - Guidance, Counseling, and Evaluation Services - 31,892 - - Studen Transportation - - - - Food Services 3,537,057 3,143,679 3,191,855 3,078,175 Cocurricular/Extracurricular Activities 823,834 692,841 818,594 618,206 General Administration - - 17,539 - Plant Maintenance and Operations 274,524 254,723 199,508 112,218 Security and Monitoring Services 15,810 15,946 - 30,516 Other Activities - - - - Operating Grants and Contributions 21,842,203 18,025,169 21,384,882 33,692,988 Total Primary Government Program Revenues 27,505,244 23,248,579 26,769,922 38,615,428

Net (Expense)/RevenueTotal Primary Government Net Expense (178,082,657) (140,599,211) (153,384,516) (139,581,672)

General Revenues and Other Changes in Net Position Governmental Activities:

Property Taxes, Levied for General Purposes 59,540,947 54,621,390 52,190,961 51,556,450 Property Taxes, Levied for Debt Service 16,538,613 15,186,033 15,301,658 13,043,052 Investment Earnings 290,921 171,643 307,010 574,092 State aid-formula grants 122,790,907 85,077,386 93,407,109 62,919,907 Grants and contributions not restricted 2,984,489 1,503,832 2,663,777 1,585,422 Miscellaneous 851,913 720,667 2,358,459 248,791 Extraordinary Item - - - -

Total Primary Government General Revenues 202,997,790 157,280,951 166,228,974 129,927,714

Change in Net Position -Total Primary Government 24,915,133$ 16,681,740$ 12,844,458$ (9,653,958)$


Source: The Statement of Activities for Alvin Independent School District

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Table 2

2010 2009 2008 2007 2006 2005

90,368,110$ 78,195,897$ 69,270,296$ 62,258,339$ 56,248,532$ 52,895,450$ 2,596,791 2,629,790 2,423,429 2,186,474 1,960,221 1,596,034 1,062,613 904,905 942,631 976,155 744,996 698,628 1,769,448 1,745,407 1,617,938 1,473,561 1,161,514 836,365 7,720,501 7,127,199 6,081,091 5,447,693 4,586,446 4,021,691 4,306,867 3,510,581 3,127,275 2,787,644 2,624,064 2,385,954 1,198,178 1,100,076 956,863 986,586 753,354 711,435 6,802,786 6,154,717 6,370,781 5,530,002 4,826,339 4,620,374 8,212,591 7,715,946 7,636,953 6,565,796 5,953,394 5,107,066 4,845,658 4,381,694 3,552,880 3,129,112 2,295,765 2,061,272 4,006,331 3,427,741 3,479,345 3,076,454 2,791,864 2,736,446

14,957,666 16,114,457 15,874,500 15,434,977 11,194,816 10,706,939 1,970,349 1,670,145 1,356,934 1,187,924 971,690 818,214 4,784,407 3,207,026 2,631,370 2,099,410 1,707,190 1,740,378

158,613 82,488 78,843 72,565 68,133 96,607 13,429,984 13,646,534 13,694,192 12,086,159 9,512,003 5,833,166 1,945,181 2,585,107 8,962,491 6,227,888 5,608,396 1,048,656 3,785,417 3,733,897 - - - -

90,400 137,146 143,914 155,351 68,797 67,674 6,941,779 3,574,007 2,879,739 - - -

180,953,670 161,644,760 151,081,465 131,682,090 113,077,514 97,982,349

573,413 608,571 507,701 508,350 385,964 8,819 145,573 195,202 243,274 244,400 167,172 - 29,115 22,965 10,577 39,104 33,434 -

- - - - - 33,812 - - 10,577 19,552 50,152 - - - - - - - - - - - - 2,244

3,134,723 2,940,737 2,800,044 2,274,926 2,138,599 2,062,787 896,953 456,904 379,930 236,822 271,517 117,487

- - 10,577 16,717 20,287 101,241 157,265 190,649 142,303 125,343 142,744 14,557 45,930 42,308 48,880 25,076 10,820

5,172,741 - - - 8,359 - 29,524,140 22,305,153 17,424,155 14,377,982 14,509,924 12,888,841 39,592,456 26,732,727 21,619,792 17,892,319 17,732,257 15,287,841

(141,361,214) (134,912,033) (129,461,673) (113,789,771) (95,345,257) (82,694,508)

50,533,105 47,214,859 43,707,324 40,875,931 38,245,525 30,648,595 12,832,311 13,028,031 11,257,494 7,492,055 6,991,360 4,932,887

361,178 1,387,915 6,352,666 8,072,011 5,468,035 1,912,859 94,000,926 83,432,651 73,148,196 54,908,736 48,370,445 48,566,857 1,063,821 52,812 43,692 13,749 1,135,019 202,034

806,274 1,639,040 112,094 264,934 469,361 4,597 - - 74,217 - - -

159,597,615 146,755,308 134,695,683 111,627,416 100,679,745 86,267,829

18,236,401$ 11,843,275$ 5,234,010$ (2,162,355)$ 5,334,488$ 3,573,321$

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ALVIN INDEPENDENT SCHOOL DISTRICTFUND BALANCES OF GOVERNMENTAL FUNDS


(Unaudited)

**Fiscal Year Ended: 2014 2013 2012 2011

General Fund Reserved -$ -$ -$ -$ Unreserved - - - - Non-spendable:

Non-spendable - inventories 529,633 526,359 507,514 478,748 Nonspendable - prepaid items 86,888 41,133 20,371 23,930

Committed:Committed - retirement of loans/notes payable - - 2,000,000 2,000,000 Committed - capital expenditures for equipment - 3,381,720 3,381,720 22,756,788 Committed - self insurance - 1,000,000 1,000,000 1,000,000 Committed - other 2,910,137 33,562,757 31,562,757 -

Assigned:Assigned - other 56,100,000 - - -

Unassigned:Unassigned 17,057,409 33,599,777 33,799,518 29,379,990

Total General Fund 76,684,067 72,111,746 72,271,880 55,639,456

All Other Governmental Funds Reserved Special Revenue Funds - - - -

Undesignated - - - - Non-spendable:


Restricted:Restricted - grant funds 3,503,321 3,684,250 2,666,833 2,347,689 Retricted - capital acquisition program 186,886,046 22,009,021 15,326,917 42,689,521 Retricted - debt service 11,961,471 8,936,869 1,977,131 3,182,945

Committed:Committed - other 1,744,285 1,832,471 1,733,532 1,559,351

Total All Other Governmental Funds 204,197,083 36,533,952 21,890,208 49,956,478

Total Governmental Funds 280,881,150$ 108,645,698$ 94,162,088$ 105,595,934$

** Implementaion of GASB Statement No. 54 "Fund Balance Reporting and Governmental Fund Type Definitions"


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Table 3

2010 2009 2008 2007 2006 2005

867,657$ 519,852$ 371,070$ 557,437$ 321,266$ 372,621$ 49,263,163 40,613,363 35,391,892 23,778,169 17,838,346 13,076,879

- - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - - 50,130,820 41,133,215 35,762,962 24,335,606 18,159,612 13,449,500

46,530,237 58,440,191 69,535,534 122,846,837 113,489,201 70,235,587 2,259,766 3,066,947 2,400,367 2,148,353 1,468,849 1,351,278

- - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

48,790,003 61,507,138 71,935,901 124,995,190 114,958,050 71,586,865

98,920,823$ 102,640,353$ 107,698,863$ 149,330,796$ 133,117,662$ 85,036,365$ DRAFT

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ALVIN INDEPENDENT SCHOOL DISTRICTCHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS


(Unaudited)

2014 2013 2012 2011RevenuesLocal, Intermediate, and Out-of-State 82,919,524$ 76,155,357$ 74,643,517$ 70,690,025$ State Programs 131,489,767 91,468,045 100,698,813 70,349,764 Federal Programs 15,180,357 13,138,342 16,756,955 27,418,496 Total Revenues 229,589,648 180,761,744 192,099,285 168,458,285

ExpendituresCurrent: Instruction 96,187,537 79,826,376 83,573,982 83,692,156 Instructional Resources and Media Services 2,875,727 2,394,715 2,653,170 2,459,153 Curriculum and Instructional Staff Development 1,357,343 881,899 970,774 1,057,860 Instructional Leadership 3,317,127 2,458,717 2,140,128 1,785,317 School Leadership 8,935,076 6,778,716 7,725,852 7,526,019 Guidance, Counseling, and Evaluation Services 5,278,813 4,137,525 4,574,486 4,529,469 Health Services 1,298,558 1,146,068 1,224,597 1,155,374 Student Transportation 9,284,861 6,303,295 7,680,751 8,595,995 Food Services 10,441,616 8,349,955 8,570,924 8,481,544 Cocurricular/Extracurricular Activities 3,898,563 2,688,602 3,500,571 3,219,314 General Administration 6,511,555 4,996,250 5,738,465 4,977,734 Plant Maintenance and Operations 13,784,274 9,620,863 11,491,894 12,813,900 Security and Monitoring Services 1,770,282 1,379,945 1,538,014 1,626,406 Data Processing Services 4,950,768 4,839,416 4,316,097 4,200,842 Community Services 285,040 259,459 296,332 190,790 Debt Service: Principal on Long-term Debt 9,815,000 6,960,000 9,400,000 7,615,000 Interest on Long-term Debt 13,777,578 9,216,598 13,834,407 15,224,364 Bond Issuance Cost and Fees 1,277,119 14,298 408,084 429,701 Capital Outlay: Facilities Acquisition and Construction 34,116,120 5,747,721 23,888,237 26,840,955 Intergovernmental:

Payments related to shared services arrangements 3,519,612 2,885,736 2,996,745 3,949,205 Juvenile Justice Alt. Ed. Prgm. 15,700 14,800 30,800 72,500 Tax Increment Fund 5,548,417 5,412,702 6,638,195 3,927,960

Total Expenditures 238,246,686 166,313,656 203,192,505 204,371,558

Excess (Deficiency) of Revenues Over (Under) Expenditures (8,657,038) 14,448,088 (11,093,220) (35,913,273) Other Financing Sources (Uses)Refunding bonds issued - - 37,380,000 - Issuance of Capital Related Debt (Regular Bonds) 166,050,000 - - 40,830,000 Proceeds from Capital Lease - - - - Refunding Bonds Issued - - - - Premium/Discount from Issuance of Bonds 14,776,573 - 5,981,015 1,635,505 Sale of Real and Personal Property 65,917 35,522 32,037 60,683 Other Resources - - - 62,182 Other Source - - - - Transfers In 21,758,488 13,183,400 3,086 6,345,452 Transfers Out (21,758,488) (13,183,400) (3,086) (6,345,438) Payment to Refunded Bond Escrow Agent - - (43,733,678) - Total Other Financing Sources (Uses) 180,892,490 35,522 (340,626) 42,588,384

Net Change in Fund Balances 172,235,452$ 14,483,610$ (11,433,846)$ 6,675,111$

Debt Service as a Percentage of Noncapital Expenditures 11.74% 10.17% 13.19% 12.99%

Note: The District fiscal year end date was changed from August 31 to June 30 with the fiscal year ended June 30, 2013, being a tem month conversion year.

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Table 4

2010 2009 2008 2007 2006 2005

69,860,187$ 67,849,626$ 64,345,302$ 60,789,686$ 54,170,304$ 41,073,790$ 101,377,908 91,679,994 79,433,145 59,357,475 53,605,407 53,274,041 23,210,979 14,110,622 11,182,898 9,942,992 10,389,981 8,392,116

194,449,074 173,640,242 154,961,345 130,090,153 118,165,692 102,739,947

85,688,484 75,206,579 66,352,184 57,770,997 54,420,220 50,797,389 2,404,274 2,468,569 2,274,952 2,073,312 1,879,007 1,715,741 1,070,457 925,409 942,079 991,465 764,194 748,773 1,769,677 1,751,750 1,614,344 1,443,106 1,158,631 809,089 7,557,422 7,014,708 5,954,170 5,193,282 4,516,599 3,864,308 4,232,794 3,465,661 3,091,828 2,666,673 2,584,679 2,338,052 1,180,533 1,091,964 941,962 762,883 735,388 694,288 8,571,798 7,349,911 5,573,631 6,302,238 5,122,744 4,815,340 7,705,599 7,316,263 7,203,560 6,021,239 5,693,147 4,889,605 3,682,282 3,034,759 2,614,811 2,160,047 1,762,197 1,803,622 4,779,929 3,619,058 3,468,996 3,010,608 2,763,847 2,657,418

14,237,923 15,684,505 15,697,183 15,269,481 11,180,052 10,766,333 2,006,102 1,714,250 1,329,355 1,186,557 931,561 864,499 4,563,532 2,896,457 2,697,864 1,946,285 1,559,609 1,560,778

121,496 80,371 75,916 65,926 64,353 90,142 - - - - - -

6,210,000 4,745,000 3,570,000 3,390,000 2,955,000 3,071,849 13,247,514 13,248,776 13,378,603 11,861,715 8,906,359 5,590,389

264,827 413,803 63,197 837,531 286,370 695,300 - - - - -

11,273,794 19,617,670 56,859,572 57,781,687 34,950,959 29,207,257

3,785,417 3,733,897 - - - - 90,400 137,146 143,914 155,351 68,797 67,674

6,941,779 3,574,007 2,879,739 - - - 191,386,033 179,090,513 196,727,860 180,890,383 142,303,713 127,047,846

3,063,041 (5,450,271) (41,766,515) (50,800,230) (24,138,021) (24,307,899)

22,195,000 - - 21,530,043 - 22,210,000 - 29,080,000 - 64,404,957 71,990,000 39,345,000 - - - - - - - - - - - -

2,133,316 345,973 - 1,882,836 215,970 3,116,532 64,076 45,788 134,585 42,723 - - 30,180 - - - - -

- - - - - - 6,654,655 - 1,573,368 1,241,516 15,035 3,464,369

(13,554,655) - (1,573,368) (3,864,516) (1,689) (3,464,368) (24,305,143) (29,080,000) - (23,330,712) - (23,358,864) (6,782,571) 391,761 134,585 61,906,847 72,219,316 41,312,669

(3,719,530)$ (5,058,510)$ (41,631,930)$ 11,106,617$ 48,081,295$ 17,004,770$

11.31% 11.36% 11.48% 12.03% 14.12% 8.91%

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ALVIN INDEPENDENT SCHOOL DISTRICT Table 5ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY


(Unaudited)

Actual ValuePersonal Total Total

Fiscal Year Real Property Property Less: Assessed DirectEnded Value Value Exemptions Value Rate (1)

2014 7,721,740,930$ 1,186,933,497$ 1,760,282,766$ 7,148,391,661$ 1.3291$

2013 6,992,358,698 1,056,279,164 1,322,388,544 6,726,249,318 1.3291

2012 6,751,119,987 823,130,039 1,246,730,931 6,327,519,095 1.3441

2011 6,832,845,447 737,821,503 1,211,887,166 6,358,779,784 1.3041

2010 6,658,420,580 748,104,614 1,266,892,651 6,139,632,543 1.3041

2009 6,064,743,427 707,370,165 1,138,901,648 5,633,211,944 1.3282

2008 5,797,402,479 647,318,861 1,030,956,817 5,413,764,523 1.3282

2007 5,022,079,238 588,478,097 959,986,597 4,650,570,738 1.5459

2006 4,473,100,165 482,324,048 950,668,687 4,004,755,526 1.7058

2005 3,531,795,413 418,390,780 769,912,006 3,180,274,187 1.6760

Source: Brazoria County Appraisal District

(1) Tax Rates are per $100 of assessed value.

Note: The District fiscal year end date was changed from August 31 to June 30 with the fiscal year ended June 30, 2013, being a ten month conversion year.DRAFT

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ALVIN INDEPENDENT SCHOOL DISTRICTPROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS

(PER $100 OF ASSESSED VALUE)


(Unaudited)

Taxing Authority 2014 2013 2012 2011Overlapping Rates:

Brazoria County 0.4320$ 0.4259$ 0.4259$ 0.4131$ Port Freeport 0.4500 0.0515 0.0515 0.0535 Alvin Community College 0.1998 0.1198 0.1998 0.1995 City of Alvin 0.8438 0.8438 0.8438 0.0836 City of Hillcrest Village 0.4326 0.3918 0.3918 0.3891 City of Manvel 0.4764 0.5879 0.5879 0.5879 City of Pearland 0.7051 0.7051 0.7051 0.6851 Brazoria County MUD #6 0.6300 0.6300 0.6300 0.6300 Brazoria County MUD #21 1.4300 1.4300 1.4300 1.4300 Brazoria County MUD #25 1.0000 1.0500 1.0500 1.1000 Brazoria County MUD #26 0.6900 0.6900 0.6900 0.6900 Brazoria County MUD #29 0.0940 0.9000 0.9000 0.8000 Brazoria County MUD #31 1.3000 1.3000 1.3000 1.3000 Brazoria County MUD #34 0.8500 0.8500 0.8500 0.8500 Brazoria County MUD #35 1.0200 1.0200 1.0200 1.0200 Sedona Lakes MUD #1 1.2500 1.2500 1.2500 1.2500 Brazoria/Ft. Bend County MUD #1 0.8500 0.8500 0.8500 0.8500

District Direct Rates:

Alvin ISD - Maintenance & Operations 1.0400 1.0400 1.0400 1.0400 Alvin ISD - Debt Service 0.3770 0.2891 0.3041 0.2641 Total District Direct Rates 1.4170$ 1.3291$ 1.3441$ 1.3441$


Municipal Utility District (MUD) DRAFT

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Table 6

2010 2009 2008 2007 2006 2005

0.4030$ 0.3663$ 0.3300$ 0.3114$ 0.3217$ 0.4080$ 0.0535 0.0535 0.0535 0.0560 0.0597 0.0650 0.1998 0.1998 0.1998 0.2103 0.2195 0.2376 0.8036 0.8036 0.8036 0.8036 0.8036 0.8036 0.3778 0.3745 0.3745 0.3745 0.3745 0.3745 0.5879 0.5879 0.5879 0.5878 0.6288 0.6485 0.6654 0.6526 0.6526 0.6526 0.6527 0.6744 0.6300 0.6300 0.6300 0.6700 0.7200 - 1.4300 1.4500 1.3500 1.3500 1.3500 - 1.1000 1.1000 1.1000 1.2300 1.2500 - 0.7100 0.7100 0.7100 0.7100 0.7700 - 0.8000 0.8000 0.7500 0.7500 0.7500 - 1.3000 1.3000 1.4020 1.3900 1.3900 - 0.8500 0.8500 0.8500 0.8500 0.8500 - 1.0200 0.8900 0.8500 not collecting not collecting - 1.2500 1.2500 - - - - 0.8500 0.8500 0.8500 0.8500 0.8500 -

1.0400 1.0400 1.0400 1.3177 1.4410 1.4412 0.2641 0.2882 0.2882 0.2282 0.2648 0.2348 1.3041$ 1.3041$ 1.3282$ 1.3282$ 1.5459$ 1.6760$

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ALVIN INDEPENDENT SCHOOL DISTRICT Table 7PRINCIPAL TAXPAYERS

CURRENT YEAR AND NINE YEARS AGO

(Unaudited)

2014 2005Taxable Percentage of Taxable Percentage of

Assessed Total Assessed Assessed Total AssessedTaxpayer Valuation Rank Value Valuation Rank Value

Denbury Onshore, LLC 381,598,549$ 1 5.34% -$ - Pearland Town Center, LP 69,086,460 2 0.97% - - Schlumberger Well Services 51,529,070 3 0.72% - - Amreit SPF Shadow Creek, LP 48,187,760 4 0.67% - - Centerpoint Energy, Inc. 38,600,930 5 0.54% - - 12400 Shadow Creek Parkway, LLC 27,100,030 6 0.38% - - Discovery Shadow Creek Owner 26,780,230 7 0.37% - - Shadow Kirby LTS PTRN 25,000,000 8 0.35% - - Pearland MultiFamily DST 24,205,950 9 0.34% - - Weatherford US, LP 23,971,470 10 0.34% - - Ron Carter - - 10,418,510 1 0.33%CL Ashton Woods, LP - - 7,421,838 2 0.23%Power Rig Rental Tool Co. - - 2,100,000 3 0.07%QTS Fishing & Rental Tools - - 1,713,500 4 0.05%Stoddard Group, LTD - - 1,638,181 5 0.05%Amistco Separation Products, Inc. - - 1,090,140 6 0.03%Martin Peyton Trustee - - 1,047,150 7 0.03%260 Huffman, LLC - - 1,034,310 8 0.03%AHI Supply, LLC - - 1,112,570 9 0.03%SCR 12/13, LTD 1,002,288 10 0.03%Totals 716,060,449$ 10.02% 28,578,487$ 0.90%

Total Taxable Assessed Value 7,148,391,661$ 3,180,274,187$


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ALVIN INDEPENDENT SCHOOL DISTRICT Table 8PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS(Unaudited)

Collected within theFiscal Year of the Levy Total Collections to Date

Taxes Levied Percentage Collections Percent of TotalFiscal Year for the of Net Tax in Subsequent Tax Collections

Ended Fiscal Year (1) Amount Levy Years Amount To Net Tax Levy

2014 75,257,211$ 73,859,271$ 98.14% -$ 73,859,271$ 98.14%

2013 69,056,291 67,588,712 97.86% 1,012,995 68,601,707 97.86%

2012 67,184,595 66,031,647 98.34% 888,092 66,919,739 99.61%

2011 63,523,536 62,304,616 98.05% 1,034,188 63,338,804 99.71%

2010 62,825,476 61,269,362 97.77% 1,384,120 62,653,482 99.73%

2009 59,435,489 57,799,440 97.21% 1,509,762 59,309,202 99.79%

2008 52,756,411 51,126,782 97.03% 1,530,045 52,656,827 99.81%

2007 50,563,534 48,790,036 96.48% 1,664,682 50,454,718 99.78%

2006 45,542,415 43,687,073 96.33% 1,757,218 45,444,291 99.78%

2005 35,936,141 34,170,004 95.95% 1,652,999 35,823,003 99.69%

(1) Current year original tax levy net of supplements and adjustments within current year


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ALVIN INDEPENDENT SCHOOL DISTRICT Table 9OUTSTANDING DEBT BY TYPE


(Unaudited)

Governmental Activities Ratio of DebtGeneral Maintenance Total to Debt

Fiscal Year Obligation Tax Primary Assessed Per Ended: Bonds Notes Government Value (1) Student (2)

2014 484,743,974$ 2,390,000$ 487,133,974$ 6.81% 27,623$

2013 314,117,626 2,925,000 317,042,626 4.71% 17,978

2012 323,279,016 3,440,000 326,719,016 5.16% 19,370

2011 329,204,355 3,935,000 333,139,355 5.24% 20,721

2010 294,821,605 4,405,000 299,226,605 4.87% 19,332

2009 298,620,852 4,855,000 303,475,852 5.39% 20,325

2008 302,576,574 5,290,000 307,866,574 5.69% 21,749

2007 305,676,889 5,705,000 311,381,889 6.70% 23,506

2006 243,788,414 6,105,000 249,893,414 6.24% 20,325

2005 172,424,443 6,485,000 178,909,443 5.63% 15,413

(1) See Table 5 for assessed value data.(2) See Table 16 for student enrollment data.Fiscal year 2013 has an end date of 6/30


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ALVIN INDEPENDENT SCHOOL DISTRICT Table 10RATIOS OF NET GENERAL OBLIGATION BONDED DEBT OUTSTANDING


(Unaudited)

Ratio of NetLess Restricted Bonded

Fiscal Year Gross Bonded for Retirement Net Bonded Debt to Net Bonded DebtEnded: Debt (1) of Bonded Debt Debt Assessed Value (2) per Student (3)

2014 487,133,974$ 5,696,550$ 481,437,424$ 6.73% 27,300$

2013 317,042,626 4,774,659 312,267,967 4.64% 17,707

2012 326,719,016 2,104,932 324,614,084 5.13% 19,245

2011 333,139,355 3,318,778 329,820,577 5.19% 20,515

2010 299,226,605 5,704,739 293,521,866 4.78% 18,964

2009 303,475,852 5,039,719 298,436,133 5.30% 19,988

2008 307,866,574 2,974,996 304,891,578 5.63% 21,539

2007 311,381,889 1,485,935 309,895,954 6.66% 23,394

2006 249,893,414 3,464,876 246,428,538 6.15% 20,043

2005 178,909,443 3,182,369 175,727,074 5.53% 15,139

(1) Includes general obligation bonds, notes, and contractual obligations.(2) See Table 5 for assessed value data.(3) See Table 16 for student enrollment data.


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ALVIN INDEPENDENT SCHOOL DISTRICT Table 11DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT

June 30, 2014

(Unaudited) Amount

Gross Debt Percent Applicable to Taxing Authority Outstanding Overlapping (1) School District

Overlapping:Alvin Community College District 14,380,000$ 88.91% 12,785,258$ Alvin, City of 24,710,000 100.00% 24,710,000 Brazoria County 90,265,000 25.59% 23,098,814 Brazoria County MUD #6 24,780,000 13.70% 3,394,860 Brazoria County MUD #21 32,785,000 100.00% 32,785,000 Brazoria County MUD #25 21,755,000 100.00% 21,755,000 Brazoria County MUD #26 38,160,000 100.00% 38,160,000 Brazoria County MUD #29 11,760,000 100.00% 11,760,000 Brazoria County MUD #31 12,055,000 100.00% 12,055,000 Brazoria County MUD #34 28,755,000 100.00% 28,755,000 Brazoria County MUD #35 9,010,000 100.00% 9,010,000 Brazoria-Fort Bend County MUD 63,680,000 64.92% 41,341,056 Hillcrest Village, City of 100,000 100.00% 100,000 Manvel, City of 2,715,000 99.57% 2,703,326 Pearland, City of 297,415,000 25.76% 76,614,104 Port Freeport 6,030,000 3.30% 198,990 Sedona Lakes MUD #1 7,465,000 100.00% 7,465,000

Subtotal, Overlapping Debt 346,691,408

Direct:Alvin Independent School District 487,133,974 100.00% 487,133,974 Total Direct and Overlapping Debt 833,825,382$


(1) The percentage of overlapping debt is estimated using taxable assessed property values. Percentages were estimated by determining the portion of the overlapping taxing authority's taxable assessed value that is within the District's boundaries and dividing it by the overlapping taxing authority's total taxable assessed value.

Source: "Texas Municipal Reports" published by the Municipal Advisory Council of Texas and the District's Financial Advisor

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ALVIN INDEPENDENT SCHOOL DISTRICTLEGAL DEBT MARGIN INFORMATION


(Unaudited)

2014 2013 2012 2011

Debt Limit 714,839,166$ 672,624,932$ 632,751,910$ 635,877,978$

Total Net Debt Applicable to Limit 481,437,424 312,267,967 324,614,084 329,820,577

Legal Debt Margin 233,401,742$ 360,356,965$ 308,137,826$ 306,057,401$

Total Net Debt Applicable to the Limit as a Percentage of Debt Limit 67.35% 46.43% 51.30% 51.87%

Legal Debt Margin Calculation for Fiscal Year 2014:

Assessed Value 7,148,391,661$ Debt Limit Percentage of Assessed Value 10%Debt Limitation 714,839,166

Debt Applicable to Debt Limitation:Total Bonded Debt 487,133,974$ Less Reserve for Retirement of Bonded Debt 5,696,550

Total Amount of Debt Applicable to Debt Limitation 481,437,424 Legal Debt Margin 233,401,742$


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Table 12

2010 2009 2008 2007 2006 2005

613,963,254$ 563,321,194$ 541,376,452$ 465,057,074$ 400,475,553$ 318,027,419$

293,521,866 298,436,133 304,891,578 309,895,954 246,428,538 175,727,074

320,441,388$ 264,885,061$ 236,484,874$ 155,161,120$ 154,047,015$ 142,300,345$

47.81% 52.98% 56.32% 66.64% 61.53% 55.26%

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ALVIN INDEPENDENT SCHOOL DISTRICT Table 13

DEMOGRAPHIC AND ECONOMIC STATISTICS


(Unaudited)

Average Per Capita

Fiscal Year Estimated Peak Daily District Personal Personal Unemployment

Ended Population Enrollment (6) Attendance (1) Employees (2) Income (3) Income (4) Rate (5)

2005 276,956 12,415 11,608 1,296 403,635,000$ 18,850$ 7.3%

2006 286,773 13,273 12,295 1,339 457,017,000 21,343 7.3%

2007 293,315 14,270 13,247 1,436 480,593,000 22,444 8.2%

2008 301,011 15,220 14,155 1,980 518,087,000 24,195 8.2%

2009 308,890 15,940 14,931 2,126 519,651,000 24,268 8.3%

2010 313,166 16,547 15,478 2,254 586,289,000 27,380 9.4%

2011 319,973 17,127 16,077 2,305 588,159,000 24,268 8.8%

2012 324,769 17,940 16,867 2,262 619,181,000 22,252 7.5%

2013 336,521 18,886 17,635 2,436 564,481,000 23,291 6.5%

2014 * 343,623 19,809 18,550 2,766 (6) (6) 6.5%

* Information not yet available - Estimated - avg of increase last 5 years

(1) Source:District PEIMS Reports

(2) Source: AEIS reports provided by Texas Education Agency

(3) Source: Alvin Manvel Area Chamber of Commerce; U.S. Census

(4) Source: Community Economic Development HotReport; City of Alvin

(5) Brazoria County Labor Market Information Website - Average

(6) Not Available at time of Publication

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ALVIN INDEPENDENT SCHOOL DISTRICT Table 14PRINCIPAL EMPLOYERS

CURRENT YEAR AND NINE YEARS AGO(Unaudited)

2005Percentage Percentage

of Total of TotalEmployer Employees Rank Employment Employees Rank Employment

Alvin Independent School District 2,766 1 49.80% 1,746 1 56.38%DISH Network* 750 2 13.50% - * N/AAlvin Community College 545 3 9.81% 272 3 8.78%Wal-Mart 520 4 9.36% 459 2 14.82%Ron Carter 320 5 5.76% 260 4 8.40%TEAM 257 6 4.63% 102 6 3.29%City of Alvin 247 7 4.45% 168 5 5.42%Diversifed Ceramics 91 8 1.64% 90 7 2.91%Denbury Resources** 58 9 1.04% - ** N/A

5,554 100.00% 3,097 100.00%

Source: City of Alvin Economic Development Department

** Denbury Resources not in Alvin until 2009

* DISH Network not in Alvin until 2006

2014

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ALVIN INDEPENDENT SCHOOL DISTRICT Table 15FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY POSITIONLAST TEN FISCAL YEARS(Unaudited)

Position 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Administrator 28 26 26 27 20 20 23 17 17 19

Associate/Assistant Principal 41 35 35 35 36 31 27 24 24 20

Food Service 236 214 214 213 212 212 152 138 138 115

Counselor 41 38 34 34 34 26 24 22 22 18

Librarian/Library/Aides 42 42 41 43 43 42 34 32 32 28

Maintenance/Operation 273 231 226 221 215 214 188 170 170 149

Nurse 22 20 22 18 18 18 16 14 14 13

Other Professional * 77 59 51 51 46 51 44 29 29 29

Other Support Staff ** 201 83 88 59 59 51 62 27 27 46

Principal 23 23 23 22 22 21 19 18 18 17

Secretary/Clerical 92 85 85 83 81 76 66 59 59 51

Security 50 14 14 14 14 14 14 14 14 12

Special Education Aides 144 128 121 126 126 122 101 87 87 80

Teacher 1,265 1,226 1,075 1,097 1,087 1,058 981 903 845 827

Technical 39 20 20 20 21 21 18 14 14 15

Transportation 192 192 192 192 188 177 174 163 163 139

Total Employees 2,766 2,436 2,267 2,255 2,222 2,154 1,943 1,731 1,673 1,578

* Includes Diagnosticians, Psychologist, Speech Pathologists, Social Workers, Accountants and other professional staff not otherwise listed above.

** Computer, Classroom Aides

Source: District Records


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ALVIN INDEPENDENT SCHOOL DISTRICTOPERATING STATISTICS


(Unaudited)

Average CostFiscal Year Daily Operating Per Percentage

Ended Attendance Expenditures (1) Student Change

2014 17,635 176,173,623$ 9,990$ 23.27%

2013 17,635 142,919,904 8,104 -9.98%

2012 16,867 151,854,556 9,003 -2.58%

2011 16,077 148,578,291 9,242 -6.28%

2010 15,478 152,636,937 9,861 1.37%

2009 14,931 145,245,641 9,728 11.82%

2008 14,155 123,141,651 8,699 8.87%

2007 13,247 105,856,169 7,991 0.95%

2006 12,295 97,320,018 7,915 2.85%

2005 11,608 89,336,041 7,696 2.97%

Source: Nonfinancial information from district records.

(1) Operating expenditures are total expendtiures less debt service and capital outlay (to the extent capitalized for the government-wide statement of net position) and expenditures for capitalized assets included within the functional expenditures categories.


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117

Table 16

Percentage ofGovernment Cost Student to Students in

Wide Per Percentage Teaching Teacher Free/ReducedExpenses Student Change Staff Ratio Lunch Program

205,587,901$ 11,658$ 25.47% 1,265 13.94 50.4%

163,847,790 9,291 -13.01% 1,226 14.38 51.6%

180,154,438 10,681 -3.64% 1,076 15.68 53.1%

178,197,100 11,084 -5.19% 1,098 14.65 53.8%

180,953,670 11,691 7.99% 1,088 14.23 52.0%

161,644,760 10,826 1.43% 1,058 14.11 52.3%

151,081,465 10,673 7.37% 982 14.42 47.6%

131,682,090 9,940 8.08% 904 14.66 50.5%

113,077,514 9,197 8.95% 845 14.54 48.0%

97,982,349 8,441 32.43% 827 14.04 49.7%

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118

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119

ALVIN INDEPENDENT SCHOOL DISTRICT Table 17TEACHER BASE SALARIESLAST TEN FISCAL YEARS(Unaudited)

District Statewide

Fiscal Year Minimum Maximum Average Average No Bachelor's Master's

Ended: Salary (1) Salary (1) Salary (2) Salary (2) Degree Degree Degree Doctorate

2014 47,400$ 70,948$ 54,391$ 50,179$ 13 927 319 8

2013 46,700 68,865 52,905 49,139 12 945 295 10

2012 46,000 66,410 50,157 48,375 4 854 208 9

2011 46,000 66,410 50,355 48,638 7 874 206 9

2010 45,000 64,838 49,031 48,263 4 879 195 9

2009 43,500 62,758 46,879 47,159 10 882 158 7

2008 41,700 60,671 45,486 46,179 16 811 146 7

2007 40,600 59,121 45,764 44,897 11 744 140 7

2006 38,100 56,621 42,853 41,743 17 684 137 5

2005 37,000 54,633 42,231 41,009 6 683 132 5

(1) Source: District records

(2) Source: Texas Education Agency website

Note: The District fiscal year end date was changed from August 31 to June 30 with the fiscal year ended

June 30, 2013, being a ten month conversion year.

DRAFT

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120

ALVIN INDEPENDENT SCHOOL DISTRICTSCHOOL BUILDING INFORMATION


Building: 2014 2013 2012 2011 2010

High SchoolsAlvin High School (1954-2008) Square Footage 554,937 580,197 580,197 580,197 580,197 Capacity 2,561 2,561 2,561 2,561 2,561 Enrollment 2,574 2,436 2,338 2,325 2,399AHS F Bldg.(1957) ADAPT Square Footage 41,159 41,159 41,159 41,159 41,159 Capacity 270 270 270 270 270 Enrollment* - - - - - Manvel High School (2006/2009) Square Footage 450,330 450,330 450,330 450,330 450,330 Capacity 2,500 2,500 2,500 2,500 2,500 Enrollment 2,521 2,337 2,143 1,981 1,842Assets (2003) Square Footage 32,397 32,397 32,397 32,397 32,397 Capacity 300 300 300 300 300 Enrollment 196 199 199 207 220

Junior High SchoolsAlvin Junior High (1968) Square Footage 121,447 121,447 121,447 121,447 121,447 Capacity 708 708 708 708 708 Enrollment 773 759 733 788 756Fairview JH (2008) Square Footage 172,163 172,163 172,163 172,163 172,163 Capacity 1,000 1,000 1,000 1,000 1,000 Enrollment 882 904 890 659 648Harby Junior High (1980) Square Footage 151,405 151,405 151,405 151,405 151,405 Capacity 832 832 832 832 832 Enrollment 680 638 688 666 665Nolan Ryan Junior High(2008) Square Footage 172,163 172,163 172,163 172,163 172,163 Capacity 1,000 1,000 1,000 1,000 1,000 Enrollment 1,180 1,065 993 1,176 1,055MJH @Rodeo Palms (2012) Square Footage 172,163 172,163 Capacity 1,000 1,000 Enrollment 879 828Manvel Junior High (1972)Square Footage 94,932 94,932 94,932Capacity 559 559 559Enrollment 770 468 441

* Included within AHS enrollment figures - fluctuates daily

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121

Table 18Page 1 of 3

2009 2008 2007 2006 2005

580,197 580,197 411,347 411,347 411,3472,561 2,561 N/A N/A N/A2,425 2,726 2,901 3,268 3,222

41,159 41,159 41,159 41,159 41,159270 270 270 270 270

- - - - -

450,330 328,900 328,9002,500 1,500 1,5001,676 1,191 634

32,397 32,397 32,397 32,397 32,397300 300 300 300 300211 222 220 195 161

121,447 121,447 121,447 121,447 121,447708 708 708 708 708758 659 665 727 752

172,1631,000

629

151,405 151,405 151,405 151,405 151,405832 832 832 832 832649 773 806 843 711

172,1631,000

998

94,932 94,932 94,932 94,932 94,932559 559 559 559 559387 755 631 497 399

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122

ALVIN INDEPENDENT SCHOOL DISTRICTSCHOOL BUILDING INFORMATION (continued)


Building: 2014 2013 2012 2011 2010

Elementary SchoolsAlvin Elementary (1974) Square Footage 50,837 50,837 50,837 50,837 50,837 Capacity 424 424 424 424 424 Enrollment 503 551 589 599 598Alvin Primary (1979) Square Footage 79,500 79,500 79,500 79,500 79,500 Capacity 680 680 680 680 680 Enrollment 646 663 689 734 707Jeter Elementary (2002) Square Footage 91,689 91,689 91,689 91,689 91,689 Capacity 800 800 800 800 800 Enrollment 916 803 723 782 714EC Mason Elementary (1979) Square Footage 67,496 67,496 67,496 67,496 67,496 Capacity 624 624 624 624 624 Enrollment 662 651 666 633 628Hood Case Elementary (1997) Square Footage 84,468 84,468 84,468 84,468 84,468 Capacity 738 738 738 738 738 Enrollment 733 735 771 772 747Longfellow Elementary(1968) Square Footage * * 50,837 50,837 50,837 Capacity 404 404 404 Enrollment 536 532 505Mark Twain Primary (1964) Square Footage 48,134 48,134 48,134 Capacity 622 622 622 Enrollment 655 626 627Marek Elementary (2004) Square Footage 91,689 91,689 91,689 91,689 91,689 Capacity 800 800 800 800 800 Enrollment 927 899 853 892 840Passmore Elementary (1993) Square Footage 85,411 85,411 85,411 85,411 85,411 Capacity 708 708 708 708 708 Enrollment 722 694 637 607 624Savannah Lakes Elementary(2008) Square Footage 94,662 94,662 94,662 94,662 94,662 Capacity 800 800 800 800 800 Enrollment 814 782 725 684 643Stevenson Primary (1974) Square Footage 67,156 67,156 67,156 67,156 67,156 Capacity 590 590 590 590 590 Enrollment 659 638 605 609 621Walt Disney Elementary(1979) Square Footage 65,496 65,496 65,496 65,496 65,496 Capacity 572 572 572 572 572 Enrollment 555 494 467 459 464

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123

Table 18Page 2 of 3

2009 2008 2007 2006 2005

50,837 50,837 50,837 50,837 50,837424 424 424 424 424566 531 530 530 572

79,500 79,500 79,500 79,500 79,500680 680 680 680 680678 813 834 797 760

91,689 91,689 91,689 91,689 91,689800 800 800 800 800676 1,092 998 882 749

67,496 67,496 67,496 67,496 67,496624 624 624 624 624619 722 689 634 645

84,468 84,468 84,468 84,468 84,468738 738 738 738 738767 870 859 841 830

50,837 50,837 50,837 50,837 50,837404 404 404 404 404488 483 485 465 528

48,134 48,134 48,134 48,134 48,134622 622 622 622 622607 854 849 850 778

91,689 91,689 91,689 91,689 91,689800 800 800 800 800766 796 951 545 284

85,411 85,411 85,411 85,411 85,411708 708 708 708 708619 739 758 711 737

93,542800582

67,156 67,156 67,156 67,156 67,156590 590 590 590 590629 820 831 872 836

65,496 65,496 65,496 65,496 65,496572 572 572 572 572489 458 465 466 496

DRAFT

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124



Building: 2014 2013 2012 2011 2010

Elementary Schools (continued)Wilder Elementary(2007) Square Footage 94,662 94,662 94,662 94,662 94,662 Capacity 800 800 800 800 800 Enrollment 896 833 766 971 842Mark Twain Elementary (2012) Square Footage 100,241 100,241 Capacity 800 800 Enrollment 816 773York Elementary (2011) Square Footage 96,297 96,297 96,297 Capacity 800 800 800 Enrollment 823 716 579Longfellow Elementary @ old Mark Twain PrimarySquare Footage 48,134 48,134Capacity 622 622Enrollment 501 486

* In 2012-2013 Longfellow Elementary moved to the "old" Mark Twain buildingwhen the "new" Mark Twain Elementary opened. Current Bond election includes "new" Longfellow campus.

Administration Bldg(1981&2010) Square Footage 23,578 23,578 23,578 23,578 23,578 Capacity 75 75 75 75 75Child Nutrition (2006) Square Footage 4,680 4,680 4,680 4,680 4,680 Capacity 10 10 10 10 10Safety & Technology Ctr(2007) Square Footage 16,800 16,800 16,800 16,800 16,800 Capacity 36 36 36 36 36Support Services Ctr (2007) Square Footage 51,627 51,627 51,627 51,627 51,627 Capacity 35 35 35 35 35Transportation (2004) Square Footage 31,103 31,103 31,103 31,103 31,103 Capacity 117 117 117 117 117Maintenance Facility Square Footage 2,900 2,900 2,900 2,900 2,900 Capacity 3 3 3 3 3

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125

Table 18Page 3 of 3

2009 2008 2007 2006 2005

93,542 93,542800 800741 622

23,578 23,578 23,578 23,578 23,57875 75 75 75 75

4,680 4,680 4,680 4,680 10 10 10 10

16,800 16,800 16,80036 36 36

51,627 51,627 51,627

35 35 35

31,103 31,103 31,103 31,103 31,103117 117 117 117 117

2,900 2,900 2,900 2,900 2,9003 3 3 3 3

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126

ALVIN INDEPENDENT SCHOOL DISTRICT Table 19ATTENDANCE DATA


(Unaudited)

Percent

Fiscal Total Increase Percent of

Year Enrollment Amount (Decrease) Membership

2013/2014 19,809 18,550$ 5.19% 93.64%

2012/2013 19,014 17,635 4.60% 92.75%

2011/2012 18,018 16,867 4.9% 93.61%

2010/2011 17,175 16,077 3.9% 93.61%

2009/2010 16,591 15,478 3.7% 93.29%

2008/2009 15,983 14,931 5.4% 93.42%

2007/2008 15,196 14,155 6.8% 93.15%

2006/2007 14,201 13,247 3.9% 93.28%

2005/2006 13,213 12,295 5.0% 95.50%

2004/2005 12,528 11,608 4.0% 92.65%

Source: District, AEIS Report and PEIMS Report

Average Daily Attendance

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157



Agendum

School Boundary Advisory Committee Presentation

Category Business

Resource Personnel Kevon Wells, Executive Director of Administrative Services

Attachments

Rationale Representatives, Jeffrey Foley, Julie Pickren and Maureen DelBello, of the SBAC, will present the

committees zone approved recommendation.

Budget Implications

None


None

158

On October 14, 2014 the Alvin

Independent School District Board

of Trustees met for a Regular

Meeting/Public Hearing at the Alvin

Independent School District, 301 E.

House Street, Alvin, Texas with the

following members present:

Tiffany Wennerstrom, Nicole Tonini, Cheryl Harris, Earl Humbird, Vivian Scheibel, Regan Metoyer and Mike Lansford

Interim Superintendent King and

other administrative staff were also

present.

ITEM #1- CALL MEETING TO ORDER AND ESTABLISH QUORUM

President Harris called the meeting

to order at 7:00 p.m. in accordance

with the Texas Open Meetings Act,

Texas Government Code Section

551.001 stating that a quorum of

Board members was present, notice

was duly posted.

ITEM #2 – PUBLIC HEARING – FINANCIAL INTEGRITY RATING SYTEM OF TEXAS (FIRST)

A public hearing was conducted

regarding Alvin ISD’s financial

integrity rating. This rating is based

on the State’s Financial Integrity

Rating System of Texas (FIRST).

For the eleventh consecutive year,

Alvin ISD received a Superior Rating

awarded by the Texas Education

Agency. The Superior Achievement

rating is the state’s highest,

demonstrating the quality of Alvin

ISD’s financial management and

reporting system. Ms. Cheryl Ryan,

Director of Finance, reviewed the

assessments that were used to

compile this rating.

The primary goal of the FIRST is to

achieve quality performance in the

management of school districts’

financial resources, a goal made

more significant due to the

complexity of accounting associated

with the Texas School Finance

System. Alvin ISD met 69 out of a

possible 70 indicators.

Ms. Ryan asked if there were any

comments or concerns regarding the

financial accountability rating. No

response was given.

ITEMS 3 & 4 – INVOCATION/PLEDGE

Trustee Tonini gave the invocation

and led the Pledge of Allegiance.

ITEM#5 – GREETERS

The greeters for the evening were

yearbook students from Manvel

High School & Alvin High School

ITEM #6 – STUDENT COMMENDATIONS

Certificates of commendation were

recommended for the following:

2015 National Merit Program Commended Students - Alvin HS Joseph Watson

Suzanne Zeller

National Hispanic Recognition Program – Alvin HS

Brianna Diaz

Mauricio Exiga

Servando Garcia

Luis Medrano

Joy Pou

Andrea Toledo

2015 National Merit Program Commended Students – Manvel HS Isa Arce

Quang Duong

Brandon Prince

Stephen Qing

Robin San Miguel

Sheryl Soundar

Patricia Thai

National Hispanic Recognition Program – Manvel HS Karla Leyja-Benavides

Obet Montalvo

Robin San Miguel

Ryan San Miguel

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159

Page 2 Regular Board Meeting October 14, 2014 Public Hearing

National Achievement Scholarship Program

Roderick Mullen

Brandon Prince (Semi-Finalist)

Natorie Kimble

National Achievement Scholarship Semifinalist Manvel High School

Quang Dong

Nolan Ryan Junior High Symphonic Band National Winner in Two Divisions of the “Mark of Excellence / National Wind Band Honors Contest Ben Greer, Catherine Tang, Lianne D’Souza, Lexi

Poole, Tyler Beckman, Bethany Lin, Jasmin Sunny,

Syajah Davis, Alicia Sanchez, Jasmin Richards, Dante

Dinas Director: Josh Mooney

Alvin Junior High Symphonic Band National Wind Band Commended Winner Owen Bradford, Jacob Mangione, Blake Stilwell,

Rebeka Renteria, Sara Persons, Jennifer Tankink,

Jacob Gomez, Mikayla Pacheco, Miguel Vargas,

Andrew Talley, Hayley Collins Director: Kyle Norman

Area Jazz Band Alvin High School Andrew Wilson – Trumpet 3rd Chair Region Jazz

Band/Qualified for Area F Jazz Band

Manvel High School QubanHall – Alto Saxophone 1st Chair Area

Devan Monroe – Chiar Drums 1st Chair Area

Josh Berry – Drums 1st Chair (Jazz Band 2)

Stuff The Bus Campaign School Supplies Valued at $35,155.8 presented by

Kroger and Cos Media

Jami Huygens, Cathie Woitena, Susan Plemons, Bel

Sanchez, Enrique Morales, Rev. Craig King

Alvin ISD Business Office Financial Service Award Linda Thom, Jan Lacombe, Adam Flores, Cindy

Gardin, Denise Benbrook, Denise Bitner, Cathy

Gonzales, Paula Henderson, Jackie Henry and Ronda

Haynes

Clean Air Champion Designation Jim Abney, Jeff Dungen & Juan Mejias

ITEM #7 – OPEN FORUM

The following patron addressed the

Board of Trustees:

Daniel Carreon – Future Elementary School #16

ITEM #8 – PRESENTATIONS

Update on Templeton Demographic Projections

Bob Templeton gave an update on

Demographic Projections for Alvin

ISD.

Mr. Templeton noted that Texas

remains a top state in job growth

with a second quarter rate of 4.3%,

1.3 percentage points higher than

the national average and the

strongest growth rate in 9 years.

Mr. Templeton continued by

presenting the following:

o National Economic Conditions

o Cites with the Top Growth

o Texas & Local Economic Overview

o Houston Housing Market

o Annual Local Closings

o Vacant Developed Lots

o Activity in Local Subdivisions

o Overall Housing Date

o Enrollment history

o Ten Year Forecast

In summary:

• The state's unemployment rate has been at

or below the national rate for 7 consecutive

years.

• Housing market showing strong growth in

new construction and increasing values.

• 2014 starts are the highest they have been in

6 years and both starts and closing will climb

close to 1,000 homes during this school year.

• New housing will continue to be the strongest

in Jeter, Mason and Savannah Lakes

Elementary zones.

• The opening of Manvel Junior High and then

Shadow Creek Ranch High School will

provide relief to secondary campuses.

• Fall 2014 enrollment growth of 5.1% with an

increase of 1,009 students. Fall 2014

enrollment = 20,818.

• Five year enrollment growth of 5,174 with

Fall 2019 enrollment = 25,992.

• Ten-Year enrollment growth of 11,073 with

Fall 2024 enrollment = 31,891.

ITEM 9 - REQUEST TO CONSIDER CONSENT AGENDA ITEMS A-D

Trustee Lansford requested to pull

Item C – Request to Consider

Approval of Out-of-State Trips.

Trustee Lansford made a motion to

approve Consent Agenda Items A, B,

and D. Trustee Wennerstrom

seconded the motion. Motion

carried unanimously (7-0).

160


ITEM A – REQUEST TO CONSIDER APPROVAL OF PROPERTIES IN TRUST

The “Offer and Recommendation

Report” was presented to the Board

of Trustees.

The Board was asked to accept

property number: 0280-002-352

Offer Number 0280-002-352

Bidder Jessica McGlothlin

Legal Description Lot 9K, 1A-9K1B, Clara

Lane, CR 958

2 acres

Current Appraised Value $3,600

Taxes Due $17,285

Offer $18,570

Met Min. Bid at Sale Yes

% of Taxes Due 107%

% of Value 52%

# Yrs. In Judgmt 16

Addt’l Yrs. Off Roll 3

The Board was asked to reject

property property number: 1363-002-122

Offer Number 1363-001-122

Bidder Charlie Goodson

Legal Description Lot C, Next to 1501 W.

South

0.212 Acres

Current Appraised Value $16,160

Taxes Due $22,745

Offer $7,070

Met Min. Bid at Sale No

% of Taxes Due 31%

% of Value 44%

# Yrs. In Judgmt 18

Addt’l Yrs. Off Roll 2

ITEM B – REQUEST TO CONSIDER APPROVAL OF REQUESTS FOR PROPOSALS

Maintenance – Custodial Supplies

Bid packets were distributed to

thirty vendors for supplies,

chemicals, and equipment with

twenty four responding. A non-

exclusive award was requested,

allowing each participating vendor

to supply catalog percent discounts

and/or formal fax quote abilities to

comply with the law on items for

which it does not elect to receive line

item proposals.

ITEM C – REQUEST TO CONSIDER APPROVAL OF OUT-OF-STATE TRIPS

Pulled from Consent Agenda

ITEM D – REQUEST TO CONSIDER APPROVAL OF BOARD MINUTES

The following Board Minutes were

presented to the Board of Trustees

for Approval:

September 4, 2014

September 9, 2014

September 10, 2014

September 22, 2014

September 30, 2014

ITEM A – REQUEST TO CONSIDER APPROVAL FOR OUT-OF-STATE TRIPS

The following student trips were


for approval

January 18-23, 2015 – Close Up Program – Washington, DC

February 25-28, 2015 – Girls Softball – Baton Rouge, LA June 9-12, 2015 – Fine Arts, New York, NY June 11-23, 2015 – Foreign Language – France & Spain November 20-24, 2015 – Jacketeers & Cheerleaders – Orlando, FL Spring Break 2016 – History Class – Germany, Czech, The Alps, Berlin, Prague, Munich and Lucerne

Trustee Metoyer made a motion to

approve the trips as presented.

Trustee Wennerstrom seconded the

motion.

Trustee Lansford expressed that he

is uncomfortable with approving the

out-of-state travel asking to amend

the motion and just approve the

trips that are located within the

United States of America.

Trustee Metoyer noted that she

wished to stand with her motion as

made.

Discussion ensued with Trustees

expressing their concerns and

opinions regarding approving out of

161


state student trips as well as

incentives given to teachers who

chaperone these trips.

Motion carried 5 – 2 with Trustees

Lansford and Humbird voting

against the motion.

ITEM #10 – REQUEST TO CONSIDER APPROVAL OF FIRST READING OF TASB POLICY UPDATE 100

TASB Policy Update 100 was


for the first reading.

Trustee Tonini made a motion to

approve the first reading of TASB

Policy Update 100. Trustee Scheibel

seconded the motion.

Motion carried unanimously (7-0).

ITEM #11 – REQUEST TO CONSIDER APPROVAL OF COUNTY EXTNSION AGENT AS AN AISD STAF MEMBER

This requested was to renew the

Board of Trustees approval for the

county Extension Agent to act as an

adjunct staff member for Alvin ISD.

Trustee Humbird made a motion to

approve the FFA Local Policy for

Attendance including the County

Extension Agent as an AISD adjunct

staff member. Trustee Wennerstrom



ITEM #12 – REQUEST TO CONSIDER APPROVAL OF LOCAL POLICY REVISIONS

Alvin ISD staff along with TASB

Policy Services staff conducted a

review of Section C local policies to

better align policies with practices

allowing the District to be efficient

and effective with all financial

resources available.

Currently changes are being

requested to local policies: CDA

(Local), CDC (Local) and CFB (Local).


approve the local policy revisions as

presented (first reading). Trustee

Scheibel seconded the motion.

Discussion ensued regarding CDC

(Local) – Gifts from the Public and

Criteria for Acceptance.

Motion carried (6-1) with Trustee

Lansford voting against the motion.

ITEM #13 – REQUEST TO CONSIDER HB1 ACCOUNT ROLL-OVER

A budget rollover for the HB1

accounts in the amount of

$700,000.00 was requested.


approve the $700,000.00 HB1 roll-

over. Trustee Tonini seconded the

motion. Motion carried

unanimously (7-0).

ITEM # 14 – REQUEST TO CONSIDER APPROVAL OF RIGHT OF WAY DEDICATION

In order to accommodate a

southbound right-turn lane at the

Kirby Drive entrance to Shadow

Creek High School, the City of

Pearland requested an approximate

12’x15’ dedication of right-of-way.


approve the right-of-way dedication

to the City of Pearland and

authorize administration to execute

the final dedication once the metes

and bounds survey has been

completed.

Trustee Metoyer seconded the

motion.


ITEM #15 – REQUEST TO CONSIDER APPROVAL OF AWARD OF RFP FOR DEMOLITION AND ABATEMENT CONTRACTOR FOR DEMOLITION OF THE EXISTING LONGFELLOW ELEMENTARY SCHOOL

Competitive Sealed Proposals were

received from six (6) contractors for

the demolition and abatement of the

162


existing Longfellow Elementary

school on Tuesday September 23,

2014. Demolition must be

accomplished prior to the

construction of the new elementary

school. 1 Priority Environmental

Services offers the best value to the

district.


approve 1 Priority Environmental

Services for the demolition and

abatement of Longfellow Elementary

School and approve the

Superintendent to execute a

contract not to exceed $215,000.00

for demolition and abatement of

Longfellow Elementary School.

Trustee Scheibel seconded the

motion.

Discussion ensued regarding the

cost of the project, the competitive

sealed proposal process and matrix

grading system.


ITEM #16 – REQUEST TO DELEGATE EXECUTIVE AUTHORITY TO SUPERINTENDENT FOR PROCUREMENT OF NEXT ELECTRICAL CONTRACT

Future electricity rates are expected

to be on the rise with current

market conditions more favorable

for the consumer. By entering the

electric market and contracting for

rates and terms of service now, the

District will be in position to secure

the best rate and value for AISD’s

near future. The most competitive

electric rate quotes are extended

with a short acceptance window.

This time line necessitates advance

authority granted to the

Superintendent to act on behalf of

the District in order to accept the

most favorable rate quote.


delegate authority to the

Superintendent to select the best

value bidder or proposer of retail

electricity for the District, and to

negotiate and execute a final

contract with the selected retail

electricity provider not to exceed 5.5

cents per kWh and a 48 month term

or less. Trustee Wennerstrom


Motion carried with 6 votes. Trustee

Lansford abstained from voting.

ITEM #17 – REQUEST TO CONSIDER EMPLOYMENT OF PERSONNEL

As presented.


approve all employments as

presented. Trustee Wennerstrom



ITEM #18 – REQUEST TO CONSIDER APPROVAL OF ADMINISTRATIVE APPOINTMENT

Brandy Johanson was

recommended by administration to

serve as Assistant Principal/Teacher

of ASSETS Academy.


approve Ms. Johanson as presented.

Trustee Scheibel seconded the

motion.


ITEM #19 – SUPERINTENENT’S REPORT

Interim Superintendent King

reviewed the following:

o Update to Longfellow Elementary

o Groundbreaking at Shadow Creek

HS

o School Boundary Advisory

Committee Update

o Chamber of Commerce Business

Expo

o Dr. “Red” Duke Elementary in the

o Apple App Store

ITEM #20 – FUTURE AGENDA ITEMS

The following future agenda items

were requested:

Trustee Metoyer requested an

update on the implementation of the

orchestra program. Trustee Tonini

163


asked for information regarding a

joint venture with the Shadow Creek

Soccer Association and the school

district.

ITEM #21 – CLOSED EXECUTIVE SESSION

The Board of Trustees entered into a

Closed Executive Session at 8:55

p.m. to discuss the following:

Deliberation regarding security audit

pursuant to Texas Government Code Section

551.076

Consultation with Board attorney regarding

proposed settlement agreement with

Memorial Herman pursuant to Texas

Government Code Section 551.071

Discuss recommendation to terminate

probationary contract teacher pursuant to

Texas Government Code Section 551.074

The Board returned into an Open

Session at 9:45 p.m.

ITEM #22 – POSSIBLE ACTION ON PROPOSED SETTLEMENT AGREEMENT

No action was taken

ITEM #23 – POSSIBLE ACTION TO PROPOSE TERMINATION OF PROBATIONARY CONTRACT TEACHER


propose termination of a teacher

during probationary contract.

Trustee Tonini seconded the motion.


ITEM #24 – ADJOURNEMENT


adjourn the meeting at 9:50 p.m.

Trustee Metoyer seconded the


unanimously (7-0).

Attest:

________________________________

Cheryl Harris, President

________________________________

Regan Metoyer, Secretary

164



of Trustees met for a Special Board

Meeting at the Alvin Independent

School District, 301 E. House

Street, Alvin, Texas with the










was duly posted.




p.m. to conduct the following

business:

Consider and Interview Candidates for the

Position of Superintendent of Schools

Pursuant to Texas Government Code Section

551.074


The meeting was adjourned at 11:05

p.m.

Attest:

________________________________


________________________________


SSppeecciiaall BBooaarrdd MMeeeettiinngg OOccttoobbeerr 1155,, 22001144

165
















was duly posted.



Closed Executive Session at 6:01 to

conduct the following business:




551.074



p.m.

Attest:

________________________________


________________________________



166
















was duly posted.



Closed Executive Session at 6:01 to

conduct the following business:




551.074



a.m.

Attest:

________________________________


________________________________



167
















was duly posted.




p.m. to conduct the following

business:




551.074



p.m.

Attest:

________________________________


________________________________



168

On November 3, 2014 at 6:30 p.m.,

the Alvin Independent School

District Board of Trustees met for a

Special Board Meeting at the

Central Administration Building,

AISD, Alvin, Texas, with the


Cheryl Harris, Nicole Tonini, Vivian Scheibel, Earl Humbird, Mike Lansford and Tiffany Wennerstrom

Trustee Metoyer arrived at the meeting at 6:40 p.m. CALL TO ORDER

President Harris stated that a

quorum of Board members was

present, notice was duly posted, and

the meeting was called to order in

accordance with the Texas Open

Meetings Act, Texas Government

Code Section 551.001.




p.m. to discuss the following:

551.074 Discuss and Consider Identification

of Lone Finalist for the Position of

Superintendent of Schools

The Board re-entered into an open

session at 7:05 p.m. ITEM #2 – REQUEST TO CONSIDER NAMING OF LONE FINALIST FOR ALVIN ISD SUPERINTEDENT OF SCHOOLS


name Dr. James “Buck” Gilcrease as

the lone finalist for Superintendent

of Schools. Trustee Humbird gave a

second to the motion. Motion

carried unanimously (7-0).

Dr. Gilcrease is now serving as

Superintendent of Schools in

Hillsboro, Texas.

There is a twenty one day waiting

period before Dr. Gilcrease’s hiring

can become official.

ITEM #3 - ADJOURNMENT


adjourn the meeting. Trustee

Wennerstrom gave a 2nd to the


unanimously (7-0).

Meeting was adjourned at 7:08 p.m.

Attest:

________________________________


________________________________


SSPPEECCIIAALL BBOOAARRDD MMEEEETTIINNGG

NNoovveemmbbeerr 33,, 22001144

169

On November 5, 2014 the Alvin


of Trustees met for a Workshop

Meeting at 11:40 a.m. in the Central

Administration Building, AISD,

Alvin, Texas, with the following

members present:

Cheryl Harris, Nicole Tonini, Vivian Scheibel and Tiffany Wennerstrom ITEM #1 - CALL TO ORDER


to order stating that a quorum of

Board members were present, notice

was duly posted, and the meeting

was called to order in accordance



551.001.

ITEM #2 – DISCUSS INFORMATIONAL ITEMS RELATED TO UPCOMING (November 11, 2014) BOARD AGENDA

The November 11, 2014 Board

agenda was reviewed and discussed.

ITEM #3 – ADJOURNMENT

Trustee Scheibel made a motion to

adjourn the meeting. Trustee

Wennerstrom gave a second to the


unanimously (4-0).

Meeting was adjourned at 12:40

p.m.

Attest:

________________________________


________________________________


BBooaarrdd WWoorrkksshhoopp

NNoovveemmbbeerr 55,, 22001144

170



Agendum

Request to Consider Waiver of Stadium Use Fees for Relay for

Life

Category Business


Attachments Memo

Rationale The American Cancer Society requests to use Alvin High

School Memorial Stadium for the “Relay for Life” and is further requesting the usage fees be waived.

The football field is needed from 6:00 a.m. on Saturday, April 11, 2015 to 1:00 a.m. on Sunday, April 12.

Access to restrooms, lights and electricity are needed.

Volunteers will clean up the entire area. The American Cancer Society will assume the cost for

electricity usage.


Budget Implications

None

Recommendation or

Proposed Motion

That Board approve Alvin High School Memorial Stadium

usage and waiver of fees for “Relay for Life” in April.

171

172



Agendum

Request to Consider Approval of Trust Property

Category Business


Attachments Offer and Recommendation Report

Rationale The “OFFER AND RECOMMENDATION REPORT” listing this

month’s offers for properties in trust is included.


Budget Implications

None


That Board accept property number 0424-0009-100, 3700-0039-000, 3700-0038-000 and reject property number 0468-

0004-287.

173

Alvin Independent School DistrictTrust PropertyNovember 11, 2014

Property # Acc

ept

Rej

ect

LEGAL DESCRIPTION

CURRENTAPPRAISED

VALUETAXES

DUE

MetMinimun

Bid atSale

% ofTaxesDue

% ofValue

# Yrs inJudgmt

Addt'l YrsOff Roll

BIDDER OFFER

0424-0009-100 A Lila Vaughn CR 160, Tract 2D2, 1.0 Acres $20,000 $8,008 $8,001 Yes 100% 40% 15 3

3700-0039-000 A Peggy Mendez Block 4, Lot 9 CR 719 .1217 Acres $2,650 $513 $3,500 Yes 683% 52% 4 3

3700-0038-000 A Peggy Mendez Block 4, Lot 8 CR 719 .1231 Acres $10,780 $2,894 $5,500 Yes 190% 51% 5 30468-0004-287 R Jose Garza Tract 3D2, Lots 1-3, 4254 CR 305B 1.136 Acres $22,410 $16,348 $11,500 No 70% 51% 17 3

174

175

176

177

178

179

180

181

182



Agendum

Request to Consider 2014-2015 Textbook Adoption/Committee

Category Business/Action

Resource Personnel Tommy King,

Deputy Superintendent Business & Support Services

Attachments Memo, List of Committee Members and list of Textbook Areas

Rationale Each year the Board appoints teacher representatives to the Textbook Selection Committee based on subject areas scheduled for new textbook adoption. Committee members

are charged with the responsibility of gathering input and recommendations for all teachers in their respective

subjects.


Budget Implications

None

Recommendation or

Proposed Motion

That Board approve the 2014–2015 Textbook Adoption and

Committee as presented.

183

184

185

186



Agendum

Request to Consider Budget Amendment #3

Category Business

Resource Personnel Pat Miller, Chief Operations Officer

Attachments Memo/Bid Tabs from David Bolton, Director of Maintenance

Rationale Amendment #3 for $1,574,635.01

David Bolton, Director of Maintenance requests a budget amendment in the amount of $1,574,635.01 to start repairs

on the hail damaged roofs at Alvin High School. The insurance settlement funds are not yet received, but final claim settlement is near. Prior to receipt of insurance funds,

a budget amendment is required to execute the contracts and initiate the roof replacement work.


Budget Implications

Funds from Property Casualty Fund Balance will be used.


That Board approve Budget Amendment #3 as presented.

187

301 E. House St. ♦ Alvin, TX 77511 ♦ 281-824-0567 ♦ FAX 281-585-4567 Physical Address: 2200 Stapp Maxwell, Alvin, Texas


David Bolton

Director of Maintenance & Operations

October 31, 2014

TO: Patrick Miller Chief Operating Officer

Susan Wilson Chief Financial Officer

FROM: David Bolton

SUBJECT: Board Approval to contract with Duro-Last Roofing to replace roofs at

Alvin High School

AISD Maintenance Department has been working on an insurance claim for hail damage at 7 of our

campuses. The final claim adjustment is near settlement. Prior to settlement of the claim, it is in the best interest of

the District, to proceed with replacing the damaged roofs at several AHS buildings.

The District has moved forward with accepting bids by use of The Interlocal Purchasing System (TIPS), a

state purchasing method commonly used by public schools. Duro-Last Roofing, the manufacturer of our roofing

systems, will act as the agent to procure competitive bids for installation labor, materials, equipment and other needs

from qualified roofers. The material costs are locked in at prices previously bid and negotiated by the state.

The following proposals will be completed in two contract packages due to the size and scope of work:

AHS Roof Package 1: includes replacing the roofs at the AHS Auditorium & Gym 1, Find Arts and Field

House. Phase 1 will be awarded to Duro-Last using Parsons Roofing as the installer.

AHS Roof Package 2: includes replacing the roofs at the AHS Competition Gym, Gym3 and Vocational.

Phase 2 will be awarded to Duro-Last using Jaco Roofing as the installer.

Request contract award of AHS roof packages 1&2 to Duro-Last, a TIPS vendor, to provide the

replacement of hail damaged roofs at Alvin High School. Upon approval, Duro-Last will begin replacement in

December 2014.

.

Request funding approval in the amount of $1,574,635.01 through Fund Balance. Reimburse upon

receipt of funding from insurance settlement.

Budget Amendment

AHS Roof Package 1 from account 6xx to account xxx. $822,251.05


Attachments: Bid Summary

188

ALVIN ISDHAIL DAMAGE

ALVIN HIGH SCHOOL ROOF REPLACEMENTDURO-LAST BID SUMMARY

GAGE JACO PARSONSCAMPUS ROOFING ROOFING ROOFING

ALVIN HIGH SCHOOLPackage 1 $1,316,888.57 $1,183,841.01 $790,951.05

Safety Director $9,000.00 $30,000.00 $3,400.00Fencing $14,500.00 $20,000.00 $4,000.00Scaffolding $4,000.00 $3,000.00 $5,500.00Deck replacement/Contingency $15,000.00 $15,000.00 $15,000.00Plywood $3,800.00 $4,000.00 $3,400.00

Subtotal $1,363,188.57 $1,255,841.01 $822,251.05

Performance & Payment Bonds Yes Yes Yes

Total for Package 1 $1,363,188.57 $1,255,841.01 $822,251.05

Duro-Last awarded with Parsons Roofing installing Package 1: $822,251.05

Package 2 $846,597.51 $737,383.96 $816,564.96

Safety DirectorFencingScaffoldingDeck replacement/Contingency $15,000.00 $15,000.00 $15,000.00Plywood

Subtotal $861,597.51 $752,383.96 $831,564.96


Total for Package 2 $861,597.51 $752,383.96 $831,564.96

Duro-Last awarded with Jaco Roofing installing Package 2: $752,383.96

Total funds needed from Fund Balance $1,574,635.01

189



Agendum

Request to Consider Approval of District/Campus Performance

Objectives

Category Operations / Action

Resource Personnel Dr. Elizabeth Veloz-Powell, Deputy Superintendent of Academics

Brent Shaw, Director of Accountability & Assessment

Attachments District/Campus Performance Objectives

Rationale Texas Education Code §11.253 requires that each

district/campus improvement plan set objectives based on the TAPR report and periodically measure progress toward

the performance objectives. These objectives must be approved by the local board of trustees and must be included in the published TAPR report.

Also as per requirement, the District/Campus Improvement

Plans will be published to the Alvin ISD website and updated as needed.

District Goal(s) Academic Performance, Teachers and Staff, Technology,

Facilities, Parental/Community Involvement, and Fiscal Responsibility

Budget Implications

None


That the Board approve the district/campus performance objectives

RESPECTFULLY SUBMITTED,

190

Alvin Independent School District

District Improvement Plan

2014-2015Accountability Rating: Met Standard

Alvin Independent School DistrictGenerated by Plan4Learning.com 1 of 5 District #020901

October 31, 2014 9:07 am

191

Mission StatementThe mission of the Alvin Independent School District, the center for public education, is to offer exemplary programs enabling all students

to possess the ability to learn for the rest of their lives and become productive citizens.

VisionAlvin ISD is a dynamic learning organization committed to excellence for all students and every program.

Core BeliefsTrusting relationships in a safe and caring environment are vital to an innovative learning organization.A learning organization focused on excellence will continually transform to best suit the needs of our students and community.Through community support and engagement, quality public schools build and preserve a healthy democratic society.Every student is uniquely capable and deserves to be provided engaging, challenging and meaningful work.Each student should be empowered to realize the opportunities that they have as 21st century learners.


October 31, 2014 9:07 am

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Table of Contents

Goal 1: Academic Performance: Student academic performance on state and national exams will reflect continuous improvement and excellence inlearning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Goal 2: Parental/Community Involvement: Alvin ISD will actively engage parents and the district communities in the education process of ourstudents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Goal 3: Teachers and Staff: Alvin ISD will attract and retain the highest quality teachers and staff and support their efforts with quality professionaldevelopment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Goal 4: Technology: Alvin ISD will invest in evolving technology and maintaining existing infrastructure in order to promote student engagementin the teaching and learning process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Goal 5: Facilities: Facilities will be provided that are supportive of a quality instructional program and represent the importance of public educationwithin the community. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Goal 6: Fiscal Responsibility: Alvin ISD will be efficient managers of all district revenues by targeting expenditures through careful planning andgoal setting strategies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5


October 31, 2014 9:07 am

193

Goal 1: Academic Performance: Student academic performance on state and national exams will reflect continuousimprovement and excellence in learning.

Performance Objective 1: District will meet or exceed the four indexes on the 2014-15 Accountability system; Student Achievement, StudentProgress, Closing Performance Gaps, and Postsecondary Readiness.

Performance Objective 2: District will meet or exceed state average on STAAR assessments in math, ELA, science and social studies.

Performance Objective 3: District will meet or exceed state averages in Hispanic and Economically Disadvantaged in the area of reading.

Performance Objective 4: District will score at or above the state average on the ACT and SAT.

Performance Objective 5: Increase ACT and SAT scores for students who are Economically Disadvantaged by 10%.

Goal 2: Parental/Community Involvement: Alvin ISD will actively engage parents and the district communities in theeducation process of our students.

Performance Objective 1: A minimum of four parent nights will be held at each elementary to encourage parents to be exposed to the curriculum.

Performance Objective 2: An active Parent/Teacher Organization (PTO) and/or an Action Team for Partnerships (ATP) will be established at eachelementary and junior high and will meet a minimum of four times during the school year.

Performance Objective 3: Increase the eNews subscriptions by 10%.

Performance Objective 4: Increase parent involvement through adult education opportunities and parenting workshops by 10%.

Goal 3: Teachers and Staff: Alvin ISD will attract and retain the highest quality teachers and staff and support their effortswith quality professional development.

Performance Objective 1: Maintain 100% Highly Qualified Staff by offering competitive salaries/benefits packages while using effective HRprocesses.

Performance Objective 2: Increase teacher attendance from previous year.

Performance Objective 3: 100% of district professional learning sessions will be documented in a centralized system.

Performance Objective 4: 100% of teaching staff will receive professional development on Alvin's Engaged Learning Model.


October 31, 2014 9:07 am

194

Performance Objective 5: Provide a formal induction program to 100% of teaching staff new to Alvin ISD.

Goal 4: Technology: Alvin ISD will invest in evolving technology and maintaining existing infrastructure in order topromote student engagement in the teaching and learning process.

Performance Objective 1: Provide professional learning on the Substitution Augmentation Modification Redefinition (SAMR) Model to 10% of allteaching staff.

Performance Objective 2: Increase the Technology test scores for students that are enrolled in the Technology Application class by 5%.

Performance Objective 3: Construct an infrastructure that supports digital readiness in 100% of Alvin ISD classrooms.

Goal 5: Facilities: Facilities will be provided that are supportive of a quality instructional program and represent theimportance of public education within the community.

Performance Objective 1: Increase facility maintenance work order efficiencies to:* Response within 24 hours for 80% of electronically filed work orders.* Completion within 72 hours for 85% of electronically filed work orders that do not include the ordering of parts from a vendor.

Performance Objective 2: Reduce district work order volume per square foot by 5% compared to prior year.

Performance Objective 3: Achieve Energy Star rating for 3 additional Alvin ISD campuses with 12 months.

Goal 6: Fiscal Responsibility: Alvin ISD will be efficient managers of all district revenues by targeting expenditures throughcareful planning and goal setting strategies.

Performance Objective 1: The District's Financial Reports demonstrate increased transparency through expanding financial reports beyond reportingcompliance requirements. Transform budget manual to include the 1 page required approved page and more than 400 pages of data by campus andstudent expenditures/budgets. Increase audit to include additional 10 tables of 10-year data.

Performance Objective 2: Alvin ISD will manage the staffing process to balance the need for additional educational resources with the financialresources available by implementing Weighted Alvin ISD Staffing Allocations (WASA) to keep payroll budgets below 83% of overall budget.

Performance Objective 3: The district will meet the following spending requirements: Special Education - 52%, Career and Technology - 58%, Giftedand Talented - 55%, Compensatory - 52%, Bilingual Education - 52%


October 31, 2014 9:07 am

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Alvin Elementary


Alvin ElementaryGenerated by Plan4Learning.com 1 of 5 Campus #020-901-101

October 29, 2014 11:57 am

196

Mission StatementIt is the mission of Alvin Elementary to offer exemplary programs that inspire a love of learning and lead to all students becoming productive citizens.


Core BeliefsTrusting relationships in a safe and caring environment are vital to an innovative learning organization.

A learning organization focused on excellence will continually transform to best suit the needs of our students and community.Through community support and engagement, quality public schools build and preserve a healthy democratic society.

Every student is uniquely capable and deserves to be provided engaging, challenging and meaningful work.Each student should be empowered to realize the opportunities that they have as 21st century learners.


October 29, 2014 11:57 am

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Table of Contents

Goal 1: Academic Performance: Student academic performance on state and national exams will reflect continuous improvement and excellence inlearning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Goal 2: Parental/Community Involvement: Alvin ISD will actively engage parents and the district communities in the education process of ourstudents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Goal 3: Teachers and Staff: Alvin ISD will attract and retain the highest quality teachers and staff and support their efforts with quality professionaldevelopment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Goal 4: Technology: Alvin ISD will invest in evolving technology and maintaining existing infrastructure in order to promote student engagementin the teaching and learning process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5


October 29, 2014 11:57 am

198


Performance Objective 1: Alvin Elementary will meet or exceed state averages on the STAAR reading, math, writing, and science assessments.

Performance Objective 2: Alvin Elementary will increase the index 2 score for student progress by 5 points.

Performance Objective 3: Alvin Elementary will increase the index 3 score for closing performance gaps by 10 points.

Performance Objective 4: Alvin Elementary will increase the ELL passing rate on STAAR reading, writing, math, and science assessments by 10%.

Performance Objective 5: Alvin Elementary will increase the percentage of LEP students progressing at least one proficiency by 20%.


Performance Objective 1: Alvin Elementary will increase the percentage of parents using TEAMS Parent-Self Serve by 10%.

Performance Objective 2: Alvin Elementary will increase the percentage of parents attending campus events by 10%.

Performance Objective 3: Alvin Elementary will provide a minimum of four opportunities throughout the school year for parents to participate inevents specifically designed around their needs.

Performance Objective 4: Alvin Elementary will provide resources and materials concerning parenting and school related issues to parents on aweekly basis.


Performance Objective 1: 100% of staff will be provided meaningful professional development that is aligned with AISD's vision and core beliefs andis focused on the Engaged Learning Model.

Performance Objective 2: 100% of staff development will be designed collaboratively with teachers and staff.

Performance Objective 3: 100% of staff will be provided recognition for their successes and efforts throughout the school year.

Performance Objective 4: Teachers will meet weekly with their professional learning communities (PLC) to work on lesson design, student


October 29, 2014 11:57 am

199

interventions, and professional learnnig.


Performance Objective 1: 100% of PBL units will include opportunities for students to utilize technology.

Performance Objective 2: Teachers will utilize technology a minimum of one time per unit for the purpose of formative assessment.

Performance Objective 3: Students will utilize technology a minimum of one time per grading period for the purpose of creating a presentation ordisplaying information.


October 29, 2014 11:57 am

200


Alvin Primary School


Alvin Primary SchoolGenerated by Plan4Learning.com 1 of 4 Campus #020901102

October 29, 2014 11:59 am

201

Mission StatementThe mission of Alvin Primary School is to provide a postitive learning climate that ensures high expectations for all students, a strong instructional focus,

accountability for student learning, and an emphasis on parent and community involvement. Our vision is to set an exemplary example of good firstteaching for all students and provide students a solid foundation to become lifelong learners.




Every student is uniquely capable and deserves to be provided engaging, challenging, and meaningful work.Each student should be empowered to realize the opportunities that they have as 21st century learners.


October 29, 2014 11:59 am

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Table of Contents



October 29, 2014 11:59 am

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Performance Objective 1: 1. At least 85% of first and second grade students at Alvin Primary will meet or exceed district averages on reading, mathand science benchmark exams.

Performance Objective 2: 2.By the end of the 2014-2015 school year, 90% of students will increase their DRA scores by one year's growth or onegrade level.

Performance Objective 3: Decrease retention rate at all grade levels to zero.

Performance Objective 4: Increase the percentage of student attendance to 97% or better.

Performance Objective 5: Provide a variety of resources so that 100% of students, teachers, and parents have access to materials and experiences thatenrich the curriculum.


Performance Objective 1: Parent involvement in school activities will increase by 20%.

Performance Objective 2: Alvin Primary will form a Parent Action Team to increase parent involvement and communication by 20%.


Performance Objective 1: Ensure that all students are taught by highly qualified staff that are 100% certified in their content area.

Performance Objective 2: Provide high quality staff development to 100% of staff based on campus needs.


Performance Objective 1: Utilize all available technology to implement project based learning units and increase student technology products to atleast two per semester.

Performance Objective 2: Increase the use and availability of technology resources to 100% of students and staff.Alvin Primary SchoolGenerated by Plan4Learning.com 4 of 4 Campus #020901102

October 29, 2014 11:59 am

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Mark Twain Elementary


Mark Twain ElementaryGenerated by Plan4Learning.com 1 of 5 Campus #020901103

October 29, 2014 12:17 pm

205

Mission StatementMark Twain Primary is committed to educating the whole child while providing a safe and nurturing environment that promotes a passion for life -long

learning, respect for self and others, and an appreciation for individual differences.

VisionAlvin ISD is a dynamic learning organization committed to excellence for all students in every program





October 29, 2014 12:17 pm

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Table of Contents

Goal 1: Academic Performance: Student academic performance on state and national exams will reflect continuous improvement and excellence inlearning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Goal 2: Parental/Community Involvement: Alvin ISD will actively engage parents and the district communities in the education process of ourstudents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Goal 3: Alvin ISD will attract and retain the highest quality teachers and staff and support their efforts with quality professional development. . . . . . 4Goal 4: Technology: Alvin ISD will invest in evolving technology and maintaining existing infrastructure in order to promote student engagementin the teaching and learning process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5


October 29, 2014 12:17 pm

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Performance Objective 1: Campus will meet or exceed all targets on each of the 2014 Accountability indexes

Performance Objective 2: Campus will meet or exceed state averages in Hispanic, Economically Disadvantaged, At Risk, Special Education, and LEPstudents in Reading

Performance Objective 3: Campus will meet or exceed state averages in Hispanic, Economically Disadvantaged, At Risk, Special Education, and LEPstudents in Math and Science

Performance Objective 4: Campus will meet or exceed state averages in Economically Disadvantaged, LEP, Special Education, and At Risk studentsin Writing

Performance Objective 5: Campus will meet or exceed state averages on Level III Advanced in Reading, Writing, Math and Science

Performance Objective 6: During the 2014 - 2015 school year, Mark Twain students will have a 97% attendance rate for students.


Performance Objective 1: A minimum of two parent nights will be held to expose parents to the curriculum

Performance Objective 2: Increase Parent participation in technology integration by 5%

Performance Objective 3: PTO will be meet a minimum of 4 times during the school year

Performance Objective 4: Parents attending the "Parenting Partners Parenting Training" will participate in 6 out of 7 workshops (Title 1)

Performance Objective 5: Increase Parent Participation to campus events by 10%

Goal 3: Alvin ISD will attract and retain the highest quality teachers and staff and support their efforts with qualityprofessional development.

Performance Objective 1: During the 2014 - 2015 school year, 100% of all staff members will participate in professional learning opportunities thatsupport student learning and promote student achievement.


October 29, 2014 12:17 pm

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Performance Objective 2: 100% of teachers will be Highly Qualified during the 2014 - 2015 School Year.

Performance Objective 3: During the 2014 - 2015 school year, Mark Twain will have a 97% or greater attendance rate for all staff members.


Performance Objective 1: Technology will be incorporated into instruction in 100% of the classrooms during the 2014 - 2015 school year.

Performance Objective 2: 100% of classroom teachers will participate in instructional technology professional development during the 2014 - 2015school year.

Performance Objective 3: 100% of staff will use technology to communicate using at least 3 different forms of communication.

Performance Objective 4: Using the online math program computer programs, students in grades 3 - 5 will improve their orginal baseline score by50% before the STAAR test.


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Longfellow Elementary


Distinction Designations:Top 25% Closing Performance Gaps

Postsecondary Readiness

Longfellow ElementaryGenerated by Plan4Learning.com 1 of 5 Campus #020901104

October 29, 2014 12:15 pm

210

Mission StatementIt is the mission of Longfellow Elementary to create a community of learners by providing a nurturing environment where academic

excellence excels.


Core BeliefsTrusting relationships in a safe and caring environment are vital to an innovative learning organization.A learning organization focused on excellence will continually transform to best suit the needs of our students and community schoolsbuild and preserve a healthy democratic society.Every student is uniquely capable and deserves to be provided engaging, challenging and meaningful work.Each student should be empowered to realize the opportunities that they have as 21st century learners.


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Performance Objective 1: Campus will meet or exceed state average in math, reading, writing, and science STAAR assessments.

Performance Objective 2: Campus will meet or exceed district average in student K-2 reading assessments.

Performance Objective 3: Campus will meet or exceed state averages on Level III/Advanced in reading, writing, math, and science STAARassessments.

Performance Objective 4: Campus will meet or exceed 96% attendance rate.


Performance Objective 1: Increase Parent participation in campus events by 10%

Performance Objective 2: Increase communication to parents by using a variety of resources to send out information at least 6 times a month.

Performance Objective 3: Increase community involvement by inviting members of the community to participate in campus events or participate in acommunity or business event at least once a month.

Performance Objective 4: Reduce number of discipline incidents by 3%


Performance Objective 1: 100% of all staff members will participate in professional learning opportunities that support student learning and promotestudent achievement.

Performance Objective 2: 100% of staff will be Highly Qualified.

Performance Objective 3: Increase the staff attendance rate to 97% or higher.



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Performance Objective 1: Technology will be incorporated into instruction in 100% of classrooms during the 14-15 school year.

Performance Objective 2: 100% of classroom teachers will participate in instructional technology professional development during the 14-15 schoolyear.

Performance Objective 3: 100% of staff will use technology to communicate using at least 3 different forms of communication. (Email, Calendar,Website, Remind 101 etc...)


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E.C. Mason Elementary


Distinction Designations:Academic Achievement in Mathematics

Academic Achievement in Science

E.C. Mason ElementaryGenerated by Plan4Learning.com 1 of 5 Campus #020-901-105

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Mission StatementIt is the mission of E.C. Mason Elementary to lead each child to succeed, overcome all obstacles, venture to develop leaders, and enable each child to

become more than he/she ever hoped to be.






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Performance Objective 1: By the end of the 2014-2015 school year, our campus will meet or exceed state average on the STAAR Assessment in allcontent areas.

Performance Objective 2: By the end of the school year our campus will increase the percentage of Level III Advanced on STAAR in all content areasby at least 2%.

Performance Objective 3: Reduce Office Referrals by 10%.

Performance Objective 4: Student Attendance Rate will increase by 2% or higher by the end of the year.


Performance Objective 1: Increase parent involvement in school activities by 10% or higher by the end of the school year.

Performance Objective 2: Provide a minimum of five opportunities throughout the school year for parents to participate or volunteer in schoolfunctions and day-to-day operations.


Performance Objective 1: 100% of instructional staff will participate in ongoing professional development through trainings provided by campuspersonnel, district personnel and other outside sources.

Performance Objective 2: Teachers will have weekly support both during instructional design and implementation from peers and support staffthroughout the year.

Performance Objective 3: Staff attendance will increase to 96% or higher for the 2014-2015 school year.


Performance Objective 1: 100% of our core instruction teachers will integrate technology into their lesson plans.


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Performance Objective 2: 100% of classroom teachers will participate in instructional technology professional development during the school year.

Performance Objective 3: Using the online computer programs, students in grades 1-5 will improve their original baseline score by 10% before thedistrict and state assessments.


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R.L. Stevenson Primary


R.L. Stevenson PrimaryGenerated by Plan4Learning.com 1 of 4 Campus #020-901-106

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Mission StatementIt is the mission of R.L. Stevenson to create a positive learning environment where all students, parents, and staff are encouraged to become lifelong learners.


Core BeliefsCore Beliefs:

Trusting relationships in a safe and caring environment are vital to an innovative learning organization.

A learning organization focused on excellence will continually transform to best suit the needs of our students and community.

Through community support and engagement, quality public schools build and preserve a healthy democratic society.

Every student is uniquely capable and deserves to be provided engaging, challenging, and meaningful work.

Each student should be empowered to realize the opportunities that they have as 21st century learners.


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Performance Objective 1: Campus will increase percentage of on or above level Reading Levels by 10%.

Performance Objective 2: Campus will meet or exceed district average in Reading and Math Benchmarks.


Performance Objective 1: Increase Parental Involvement in school wide activities and volunteering by 5%.

Performance Objective 2: Increase Community Involvement in school wide activities and volunteering by 5%.


Performance Objective 1: 90% of staff development provided will focus on designing engaging lessons based on standards (TEKS).

Performance Objective 2: Increase staff attendance by 3%.

Performance Objective 3: 100% of staff will participate in Professional Learning Communities.


Performance Objective 1: Increase staff usage of technology by incorporating technology in 90% of all staff development.

Performance Objective 2: Teachers in core areas will facilitate a minimum of 5 lessons where students will utilize technology devices.

Performance Objective 3: Students will complete a minimum of 2 products reflecting technology integration.


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Walt Disney Elementary


Distinction Designations:Academic Achievement in Science

Walt Disney ElementaryGenerated by Plan4Learning.com 1 of 5 Campus #020901107

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Every student is uniquely capable and deserves to be provided engaging, challenging, and meaningful work. Each student should be empowered to realize the opportunities that they have as 21st century learners.


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Performance Objective 1: Walt Disney Elementary will meet or exceed the performance expectations on each of the 2014-2015 indexes, set by thestate of Texas and will increase by 5 percentage points at Phase-in Satisfactory Standard in the areas of reading, math writing, and science.

Performance Objective 2: The campus will increase STAAR Level III performance by 3 percentage points in reading, math, science and writing witheconomically disadvantaged students, and Hispanic students.

Performance Objective 3: The campus will increase by 3 percentage points on STAAR at Phase-in Satisfactory Standard in the areas of reading andmath with special education students.


Performance Objective 1: Walt Disney will host a minimum of four after school events to encourage parental involvement.

Performance Objective 2: Walt Disney will host four Parenting Partners workshops.

Performance Objective 3: Walt Disney will host 8 - 10 evening classes using the Latino Literacy Project materials


Performance Objective 1: Teachers will attend a minimum of eight days of campus level, district level or out of district professional development.

Performance Objective 2: Provide a minimum of 30 minutes of professional development on higher level questioning for the teachers.

Performance Objective 3: All teachers will be trained in creating and implementing classroom modifications.


Performance Objective 1: Teachers in core areas will facilitate a minimum of five lessons where students may use their own device or the school'sdevice.

Performance Objective 2: Each core teacher is responsible for his/her students completing a minimum of one product reflecting technologyWalt Disney ElementaryGenerated by Plan4Learning.com 4 of 5 Campus #020901107

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integration.

Performance Objective 3: Walt Disney teachers will attend at least 90 minutes of professional development focused on technology.


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Melba Passmore Elementary



Academic Achievement in ScienceTop 25% Student Progress

Top 25% Closing Performance GapsPostsecondary Readiness

Public Presentation Date: October 14, 2014

Melba Passmore ElementaryGenerated by Plan4Learning.com 1 of 4 Campus #020-901-108

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Mission StatementAt Passmore Elementary School our mission is to develop self-directed, independent, secure and responsible children who will have a love for learning, acuriosity for the world around them and the ability to find solutions to questions so that they can grow socially, emotionally and intellectually to their full

potential. We strive to exhibit positive communication with both parents and the community in which we serve.






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Performance Objective 1: Passmore Elementary will meet or exceed the STAAR performance expectations set by the Texas Education Agency in allsubjects by the end of the 2014-2015 school year.

Performance Objective 2: Passmore Elementary will meet or exceed state averages on STAAR Level III/Advanced in reading, writing, math, andscience by the end of the 2014-2015 school year.

Performance Objective 3: Passmore Elementary will meet or exceed 96% student attendance rate.


Performance Objective 1: Passmore Elementary will increase parent participation by 10%.

Performance Objective 2: Campus will communicate with parents and community members in a variety of methods during the 2014-2015 school yearat least six times each month.


Performance Objective 1: During the 2014-2015, 100% of all staff members will participate in professional learning opportunities that support studentlearning and promote student achievement.

Performance Objective 2: By the end of the 2014-2015 school year, Passmore Elementary will increase the staff attendance rate to 97% or higher.

Performance Objective 3: During the 2014-2015 school year, 90% of the campus instructional budget will be spent on training, resources, supplies,and field-based instruction with will directly impact and recognize student achievement.



Performance Objective 2: 100% of classroom teachers will participate in instructional technology professional development during the 2014-2015school year.


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Hood-Case Elementary


Distinction Designations:Academic Achievement in Reading/English Language Arts

Academic Achievement in ScienceTop 25% Student Progress

Top 25% Closing Performance GapsPostsecondary Readiness

Hood-Case ElementaryGenerated by Plan4Learning.com 1 of 5 Campus #020-901-109

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Mission StatementOur mission at Hood-Case Elementary is to provide students with an exemplary education for LIFE-Learing, Involving Familes and Educators.






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Goal 1: Academic Performance: Student academic performance on state and national exams will reflect continuous improvement and excellence inlearning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Goal 2: Parental/Community Involvement: Alvin ISD will actively engage parents and district communities in the education process of our students. . 4Goal 3: Teachers and Staff: Alvin ISD will attract and retain the highest quality teachers and staff and support their efforts with quality professionaldevelopment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Goal 4: Technology: Alvin ISD will invest in evolving technology and maintaining existing infrastructure in order to promote student engagementin the teaching and learning process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4


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Performance Objective 1: Hood-Case Elementary will meet or exceed the STAAR performance expectations set by the Texas Education Agency in allsubjects by the end of the 2014-2015 school year.

Performance Objective 2: Hood-Case Elementary will meet or exceed State STAAR Level III standards by the end of the 2014-2015 school year.

Performance Objective 3: Hood-Case Elementary LEP population will meet or exceed state average in STAAR writing and science.

Goal 2: Parental/Community Involvement: Alvin ISD will actively engage parents and district communities in the educationprocess of our students.

Performance Objective 1: During the 2014-2015 school year, we will increase the opportunity for Parenting Partners to be involved and support theschool by increasing the number of opportunities for involvement by 50% from the previous school year.

Performance Objective 2: Bilingual parent attendance at literacy and math training will increase by 50% by the end of the 2014-2015 school year.

Performance Objective 3: By the end of the 2014-2015 school year, 40% of students with transportation in grades 3-5 will participate in the before andafter school programs.


Performance Objective 1: During the 2014-2015 school year, 100% of all staff members will participate in professional learning opportunities thatsupport student learning and promote student achievement.

Performance Objective 2: By the end of the 2014-2015 school year, Hood-Case Elementary will increase the staff attendance rate to 97% or higher.

Performance Objective 3: During the 2014-2015 school year, 90% of the campus instructional budget will be spent on training, resources, supplies,and field-based instruction which will directly impact and recognize student achievement.




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Performance Objective 2: By the end of the 2014-2015 school year, students will complete a minimum of 2 products reflecting technology integration.

Performance Objective 3: Using the online computer programs computer programs, students in grades 3-5 will improve their original baseline score by50% before the STAAR test.


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Don Jeter Elementary



Academic Achievement in ScienceTop 25% Closing Performance Gaps

Postsecondary Readiness

Don Jeter ElementaryGenerated by Plan4Learning.com 1 of 5 Campus #020-901-110

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Mission StatementOur mission is to provide an exemplary educational experience for all children.




Every student is uniquely capable and deserve to be provided engaging, challenging, and meaningful work.Each student should be empowered to realize the opportunities that they have as 21st century learners.


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Performance Objective 1: Don Jeter Elementary will meet or exceed state average on STAAR math, reading, writing, and science assessments by theend of the 2014-2015 school year.

Performance Objective 2: Don Jeter Elementary will increase the percentage of At-Risk students meeting expectations in all areas on STAARassessments by 5%.

Performance Objective 3: Don Jeter Elementary will increase the percentage of GT students scoring at Level III on the STAAR math, reading, writing,and science by 5%.

Performance Objective 4: Don Jeter Elementary will increase the percentage of students scoring on-level on the DRA in primary grades by 5%.


Performance Objective 1: During the 14-15 school year, Don Jeter Elementary will increase parent and community involvement and support byincreasing the number of opportunities by 10%.

Performance Objective 2: Campus will reduce number of bullying reports by 3%.

Performance Objective 3: Bilingual parent attendance at literacy and math training will increase by 50% by the end of the 2014-2015 school year.


Performance Objective 1: During the 2014-2015 school year, 100% of all all staff members will participate in professional learning opportunities thatsupport student learning and promote student achievement.

Performance Objective 2: Increase staff attendance by 2%.

Performance Objective 3: In the 14-15 school year, maintain 100% of district and campus policies and procedures to ensure a safe, secure, andpositive climate for learning.



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Performance Objective 3: Using the online computer program computer programs, students in grades 3-5 will improve their original baseline score by50% before the STAAR test.


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Mary Burks Marek Elementary



Mary Burks Marek ElementaryGenerated by Plan4Learning.com 1 of 4 Campus #020-901-111

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Value StatementTrusting relationships in a sharing and caring environment are vital to an innovative learning organization.

A learning organization focused on excellence will continually transform to best suit the needs of our students an dcommunity. Through community support an dengegement, quality public schools build and preserve a healthy democratic society.

Every student is uniquerly capable and deserves to be provided engaging, challenging, and meaningful work.Each student should be empowered to realize the opportunities that they have as 21st century learners.


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Performance Objective 1: Campus will meet or exceed state average in Level III performances on STAAR.

Performance Objective 2: Campus will meet or exceed state averages in Math, Reading, Writing, and Science on STAAR.

Performance Objective 3: Campus will meet or exceed state average in Hispanic, African American, Economically Disadvantaged, and LimitedEnglish Proficient Student groups in all subject areas on STAAR.


Performance Objective 1: Attendance at parent involvement activities will increase by 5% this school year.

Performance Objective 2: Campus will hold a minimum of 3 family engagement events.

Performance Objective 3: Amount of traffic on the school webpage will increase by 10%


Performance Objective 1: 100% of teachers will be highly qualified this school year.

Performance Objective 2: Retain 100% of new teachers

Performance Objective 3: Campus staff attendance percentage will met or exceed 95%


Performance Objective 1: Teachers in core areas will facilitate a minimum of 5 lessons where teachers will incorporate BYOD or technologyintegration into the lesson.

Performance Objective 2: Classroom teachers will participate in a minimum of 2 instructional technology professional development this school year.

Performance Objective 3: Increase electronic communication to parents and community through social media by 50%.Mary Burks Marek ElementaryGenerated by Plan4Learning.com 4 of 4 Campus #020-901-111

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Laura Ingalls Wilder Elementary



Academic Achievement in MathematicsAcademic Achievement in Science

Top 25% Student Progress

Laura Ingalls Wilder ElementaryGenerated by Plan4Learning.com 1 of 5 Campus #020-901-112

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VisionALVIN ISD is a dynamic learning organization committed to excellence for all students in every program.

Core BeliefsTrusting relationships in a safe and caring enviornment are vital to an innovative learning organization.A learning organization focused on excellence will continually transform to best suit the needs of our students and community.Through community support and engagement, quality public schools build and preserve a healthy democratic society.Every student is uniquely capable and deserves to be provided engaging, challenging, and meaningful work.Each student should be empowered to realize the opportunities that they have as 21st century learners.


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Performance Objective 1: By the end of 2014-2015, 90% of third through fifth grade African American students will score at Phase-in SatisfactoryStandard on STAAR Math.

Performance Objective 2: By the end of 2014-2015, 90% of African American, Hispanic, and Economically Disadvantaged fourth grade students willscore at Phase-in Satisfactory Standard on STAAR Writing.

Performance Objective 3: Wilder Elementary will offer all students a challenging high quality curriculum and will provide an effective deliverysystem to ensure 95% of all students meet or exceed state averages in math, reading, writing, and science STAAR assessments.

Performance Objective 4: By the end of 2014-2015, 95% of Special Education students will score at Phase-in Satisfactory Standard on STAAR Math,Writing, and Science.

Performance Objective 5: By the end of 2014-2015, 90% of students in grades K-2 will read on or above level on DRA.


Performance Objective 1: Wilder Elementary will host 10 campus wide activities to encourage and maintain parent and community participation.

Performance Objective 2: In the 14-15 School year, Wilder will maintain 100% of district and campus policies and procedures to ensure a safe, secure,and positive climate for learning.

Performance Objective 3: By the end of the 14-15 school year, PTO membership will increase by 10% .


Performance Objective 1: During the 14-15 school year, 100% of all staff will participate in professional learning opportunities that support studentlearning and promote student achievement.

Performance Objective 2: Increase staff/student ethnicity ratio by 1% in the Asian, HIspanic, and African American subgroup to mirror the studentethnicity demographics.

Performance Objective 3: 100% of Wilder faculty and staff will have 98% or higher attendance rate during the 14-15 school year.


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Performance Objective 4: During the 14-15 school year, 90% of the campus instructional budget will be utilized to purchase resources, supplies,professional learning experiences, and field based instruction which directly impact student achievement.


Performance Objective 1: 100% of Wilder Elementary teachers in core areas will facilitate a minimum of 5 lessons per semester that incorporateBYOD or technology integration into their lessons.

Performance Objective 2: Campus Technology committee will coordinate one campus activity each month that will lead the campus in technologyintegration.


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Savannah Lakes Elementary



Savannah Lakes ElementaryGenerated by Plan4Learning.com 1 of 5 Campus #020901113

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Value StatementTrusting relationships in a safe and caring environment are vital to an innovative learning organization.


Every student is uniquely capable and deserves to be provided engaging, challenging, and meaningful work.Each student should be empowered to realize the opportunities that they have as 21st century learners.


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Performance Objective 1: At least 90% of grade K-5 students, including all student groups will meet the STAAR performance expectations set by theTexas Education Agency in all subjects by the end of the 2014-2015 school year and be reading on or above grade level.

Performance Objective 2: 100% of Pre-K-5 teachers will work collaboratively as active members of a Professional Learning Community in order toincrease student achievement in all subjects.

Performance Objective 3: At least 90% of Gifted and Talented Students will meet the STAAR Level III performance expectation set by the TexasEducation Agency in all subjects by the end of the 2014-2015 school year.


Performance Objective 1: During the 2014-2015 school year, we will increase parent and community involvement and support increasing the numberof opportunities by 3% from the previous year.

Performance Objective 2: Attendance at parent involvement activities will increase by 5% by the end of 2014-2015.

Performance Objective 3: During the 2014-2015 school year, we will increase the number of parent conferences in the fall semester from 88% to 92%.


Performance Objective 1: 100% of teachers will be highly qualified during the 2014-2015 school year.

Performance Objective 2: Emphasize staff attendance to increase to 96% or higher in the 2014-2015 school year.

Performance Objective 3: Retain 98% of new teachers from the 2014-2015 school year.


Performance Objective 1: Technology will be incorporated into instruction in 100% of the classrooms for 2014-2015 school year.

Performance Objective 2: 100% of classroom teachers will participate in instructional technology professional development during the 2014-2015Savannah Lakes ElementaryGenerated by Plan4Learning.com 4 of 5 Campus #020901113

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school year.

Performance Objective 3: During the 2014-2015 school year, we will increase electronic communication to parents and the community by 50%.


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Glenn York Elementary



Academic Achievement in MathematicsAcademic Achievement in Science

Top 25% Student Progress

Glenn York ElementaryGenerated by Plan4Learning.com 1 of 5 Campus #020-901-114

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Mission StatementGlenn York Elementary is committed to creating a student-centered environment that stresses high expectations and addresses the educational, physical and emotional needs of all children. We

pledge to maintain an active partnership with students, teachers, parents and community to develop a love of learning, while embracing our diversity and unique talents. York Elementary strivesto provide all students the tools needed to be lifelong learners and responsible citizens in a global society.

VisionALVIN ISD is a dynamic learning organization committed to excellence for all students and every program.





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Performance Objective 1: A least 90% of elementary students, including all student groups will meet the performance expectations set by the TexasEducation Agency in all subjects by the end of the 14-15 school year.

Performance Objective 2: 100% of teachers will work collaboratively as active members of a Professional Learning Community in order to increasestudent achievement in all subjects.

Performance Objective 3: By the end of 14-15, campus will increase overall passing rate for our identified/ Index 3 population of African American,Hispanic, and Economically Disadvantaged scoring at Level II or above by 5%.


Performance Objective 1: During the 14-15 school year, we will increase parent and community involvement and support by increasing the number ofopportunities by 10%.

Performance Objective 2: In the 14-15 school year, maintain 100% of district and campus policies and procedures to ensure a safe, secure, andpositive climate for learning.

Performance Objective 3: PTO membership will increase by 10% by the end of 14-15 school year.


Performance Objective 1: During the 14-15 school year, 90% or more of all staff members will participate in professional learning opportunities thatsupport student learning and promote student achievement.

Performance Objective 2: Glenn York Elementary will have 97% attendance or higher for staff in the 14-15 school year.

Performance Objective 3: During the 14-15 school year, 90% or more of the campus instructional budget will be spent on training, resources, supplies,and field-based instruction which will directly impact and recognize student achievement.



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Performance Objective 3: Using the online computer programs as interventions, students in grades 1-5 will improve their original baseline score by20% before the district and state assessments.


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Dr. James "Red" Duke Elementary

2014-2015Accountability Rating: Not Rated

Dr. James "Red" Duke ElementaryGenerated by Plan4Learning.com 1 of 5 Campus #020901115

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VisionAlvin ISD is a dynamic learning organization committed to excellence for all students and every program

Value StatementTrusting relationships in a safe and caring environment are vital to an innovative learning organization.




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Performance Objective 1: Campus will meet or exceed the four indexes on each of the 2015 Accountability indexes; Student Achievement, StudentProgress, Closing Performance Gaps, and Postsecondary Readiness.

Performance Objective 2: Campus will meet or exceed state averages on STAAR assessments in math, reading, writing, and science.

Performance Objective 3: At least 90% of Gifted and Talented Students will meet the Level III performance expectation set by the Texas EducationAgency in all subjects by the end of the 2014-2015 school year.


Performance Objective 1: Campus will provide 2 parent and community technology trainings to enhance technological literacy.

Performance Objective 2: During the 2014-2015 school year, we will provide a minimum of 20 parent and community involvement activities oncampus.

Performance Objective 3: Parents will be provided with a minimum of 5 resources and materials concerning parenting and school related issues.


Performance Objective 1: Campus will increase the amount of teachers in Capturing Kids Hearts by 6%.

Performance Objective 2: Staff attendance will exceed 95%

Performance Objective 3: 100% of staff will be provided meaningful professional development that is aligned with AISD's vision and core beliefs andis focused on the Engaged Learning Model.


Performance Objective 1: Campus will send a minimum of 20 electronic communications before the end of 2014-2015 school year.

Performance Objective 2: 100% of teachers will utilize technology for professional learning through the use of applications such as Edmodo, Twitter,Dr. James "Red" Duke ElementaryGenerated by Plan4Learning.com 4 of 5 Campus #020901115

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and Google Docs

Performance Objective 3: Teachers in core areas will facilitate a minimum of 5 lessons where students will utilize BYOD or technology devices.


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Alvin Junior High School

2014-2015Accountability Rating: Improvement Required

Alvin Junior High SchoolGenerated by Plan4Learning.com 1 of 5

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Mission StatementTo facilitate lifelong learning for students in a challenging, supportive, and collaborative environment.

VisionAlvin Junior High is a dynamic learning organization committed to excellence for all students and every program.





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Performance Objective 1: Meet or exceed state standards in grades 6 through 8 on Index 1-4 on STAAR assessment.

Performance Objective 2: Increase enrollment in advanced academic courses by 5%.

Performance Objective 3: Increase At Risk performance on all state assessments by 5%.

Performance Objective 4: Increase the percentage of students who score at Level III on state assessments by 5%.

Performance Objective 5: Increase the percentage of ELL students passing the state assessment by 10%.

Performance Objective 6: Increase teacher attendance rate by 1%.


Performance Objective 1: Provide two learning opportunities for parents / community.

Performance Objective 2: Host a minimum of two parent-centered events.

Performance Objective 3: Increase electronic communication through Parent Link, increasing subscription by 5%.


Performance Objective 1: 100% of staff will engage in professional learning topics specific to activities that increase student engagement.

Performance Objective 2: Train 100% of teachers in AVID strategies.

Performance Objective 3: Train 10% of teachers annually in Capturing Kids' Hearts until all staff are trained.

Performance Objective 4: 100% of teaching staff will receive professional development on Engaged Learning Model.



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Performance Objective 1: Teachers in core areas will facilitate a minimum of six lessons each nine weeks where students utilize BYOD or technologydevices.

Performance Objective 2: Students will complete a minimum of two products per course reflecting technology integration - one per semester.


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Rodeo Palms Junior High

2014-2015Accountability Rating: Improvement Required

Rodeo Palms Junior HighGenerated by Plan4Learning.com 1 of 5

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Core BeliefsCore Beliefs

Trusting relationships in a safe and caring environment are vital to an innovative learning organization.A learning organization focused on excellence will continually transform to best suit the needs of our students and community.

Through community support and engagement, quality public schools build and preserve a healthy democratic society.Every student is uniquely capable and deserves to be provided engaging, challenging and meaningful work.



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Performance Objective 2: Increase the number of students scoring at a level III/advanced measure by 7% in all subjects.



Performance Objective 1: Provide two learning opportunities per semester for parents/community.

Performance Objective 2: Increase communication to parents/community by increasing subscription through Parent Link, Twitter, and Facebook by10%.

Performance Objective 3: Provide opportunities for parents to know and learn how to support classroom learning at home with at least two after schoolparent meeting each semester.

Performance Objective 4: Increase membership in PTO by 10% from previous year.


Performance Objective 1: Increase percentage of teachers trained in Capturing Kids' Hearts by 10% each year until 100% trained.

Performance Objective 2: Increase collaboration by providing each core department with substitute teachers once each semester to allow acollaboration day for vertical and horizontal designing of lessons.

Performance Objective 3: Increase teacher/staff professional growth choices by allowing 100% of teachers/staff to seek out professional developmentopportunities based on their PDAS Summative/evaluation and reflective needs which support the district vision.

Performance Objective 4: Provide training to all math and social studies teacher in the Engage! Learning Model to implement the next phase.



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Performance Objective 1: Teachers in core areas will facilitate a minimum of six lessons each nine weeks where students utilize BYOD or technology.

Performance Objective 2: Continue to purchase technology to ensure each teacher has a minimum of five devices in their classroom for student usedesigned to increase student engagement.

Performance Objective 3: Students will complete a minimum of two products per course reflecting technology integration - one per semesterminimum


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G.W. Harby Jr. High School


G.W. Harby Jr. High SchoolGenerated by Plan4Learning.com 1 of 5 Campus #020-901-043

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Mission StatementHarby Junior High will provide students with engaging learning experiences that will empower them to be productive 21st century learners.

VisionHarby Junior High is a dynamic learning organization committed to excellence for all students in every program.

Value Statement

Core Beliefs

Trusting relationships in a safe and caring environment are vital to an innovative learning organization.

A learning organization focused on excellence will continually transform to best suit the needs of our students and community.

Through community support and engagement, quality public schools build and preserve a healthy democratic society.

Every student is uniquely capable and deserves to be provided engaging, challenging and meaningful work.



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Goal 1: Academic Performance: Student academic performance on state and national exams will reflect continuous improvement and excellence inlearning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Goal 2: Parental/Community Involvement: Alvin ISD will actively engage parents and the district communities in the education process of ourstudents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Goal 3: Teachers and Staff: Alvin ISD will attract and retain the highest quality teachers and staff and support their efforts with quality professionaldevelopment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Goal 4: Technology: Alvin ISD will invest in evolving technology order to promote student engagement in the teaching and learning process. . . . . . 4


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Performance Objective 1: HJH will exceed 2013-2014 scores on the State Assessment in all sub groups in grades 6 through 8 in Indexes 1-4.

Performance Objective 2: Increase the percent of students who score at level 3 on state assessment by 5%.


Performance Objective 4: Reduce the number of office referrals by 10%.


Performance Objective 1: Utilize various communication venues to keep parents informed once weekly.

Performance Objective 2: Increase parental participation and active involvement by 10%.

Performance Objective 3: Provide learning opportunities for parents and the community to be exposed to the curriculum on at least 3 occasionsthroughout the 2014-2015 year.

Performance Objective 4: Increase the amount students utilizing Communities in Schools (CIS) by 10%.


Performance Objective 1: 100% of the HJH teachers will attend monthly learning opportunities.

Performance Objective 2: Harby Junior High will continue to foster a positive climate where teachers and staff are retained at at least 85%

Performance Objective 3: 100% of teachers will be trained in AVID strategies.

Performance Objective 4: Increase teacher attendance rate by 1%.

Goal 4: Technology: Alvin ISD will invest in evolving technology order to promote student engagement in the teaching andlearning process.


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Performance Objective 1: Harby Junior High School will support teachers in providing 4 meaningful and engaging learning experiences thatincorporate technology. during the 2014-2015 school year.

Performance Objective 2: Increase the amount of technology devices available for teacher and student use by 5%.


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Nolan Ryan Jr. High School



Academic Achievement in Science

Nolan Ryan Jr. High SchoolGenerated by Plan4Learning.com 1 of 5

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VisionNolan Ryan Junior High is a dynamic organization committed to excellence for all students and every program.

Core BeliefsAt Nolan Ryan Junior High we believe....

- trusting relationships in a safe and caring environment are vital to an innovative learning organization

- a learning organization focused on excellence will continually transform to best suit the needs of our students and community

- through community support and engagement, quality public schools build and preserve a healthy democratic society

- every student is uniquely capable and deserves to be provided engaging, challenging and meaningful work

- each student should be empowered to realize the opportunities that they have as 21st century learners


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Table of Contents



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Performance Objective 2: Nolan Ryan Junior High will score at or above the national average on the ACT EXPLORE test.


Performance Objective 4: Increase At-Risk performance on all state assessments by 5%.

Performance Objective 5: Increase the percentage of students who score at Level III on state assessments from previous year

Performance Objective 6: Increase the percentage of ELL students passing the state assessment by 15%.


Performance Objective 1: Campus will hold three parent nights to expose parents to the core curriculum and elective programs.

Performance Objective 2: Increase parent participation in PTO by 5% by offering incentives to students to encourage parents in joining.

Performance Objective 3: Develop a minimum of three new school community/business partnerships by reaching out to local businesses.

Performance Objective 4: Increase communication with parents through eNews, Parent Link, marquee updates, and Remind 101 by 15%. Send massnotifications and school updates bi-weekly (minimum).

Performance Objective 5: Provide learning opportunities for parents and community by incorporating at least three guest speakers/presentations duringparent meetings regarding Junior High parenting tips.


Performance Objective 1: 100% of staff will engage in professional development geared toward the Engaged Learning Model (ELM) during facultymeetings, department/planning meetings and team meetings and classroom observations.

Performance Objective 2: 100% of NRJH teachers will be trained on AVID strategies.


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Performance Objective 3: Train 15% of teachers annually in Capturing Kids' Hearts until all staff are trained.

Performance Objective 4: 100% of staff will engage in professional learning topics specific to curriculum that increase student engagement.

- Provide opportunities for staff to attend training at regional service centers.- Provide professional development on technology applications- Provide professional development on the effects of diversity with teaching and


Performance Objective 1: Teachers in core areas will facilitate a minimum of 5 lessons where students utilize BYOD or technology devices.

Performance Objective 2: Teachers in core areas will facilitate a minimum of 2 projects/lessons utilizing technology.

Performance Objective 3: 100% of technology purchases will align to the AISD Engaged Learning Model.

Performance Objective 4: Increase use of effective technology instruction by 10% in classrooms by training teachers on technology through TechTuesday and other "best practices" throughout the school year during faculty meetings/in service.

Performance Objective 5: Increase professional dialogue on designing engaging lessons through the weekly use of technology. by sharing weekly techtips via Edmodo/Outlook as well as through facilitated online discussions.


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Fairview Jr. High School


Public Presentation Date: October 27, 2014

Fairview Jr. High SchoolGenerated by Plan4Learning.com 1 of 5 Campus #020901046

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Mission StatementFairview Junior High will empower all students to achieve excellence by helping them to fulfill their own potential for success in a safe, enriching

environment.






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Table of Contents



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Performance Objective 1: FJH will meet or exceed state standards in grades 6 through 8, including meeting or exceeding state standards for Index 1, 2,3, and 4.

Performance Objective 2: Increase the percent of students who score at Level III on state assessments from previous year.

Performance Objective 3: Increase enrollment in advanced academics courses by 5%.

Performance Objective 4: Increase At-Risk peformance on all state assessments by 5%.

Performance Objective 5: Increase the number of ELL students passing the state assessments by 10%

Performance Objective 6: Increase the percentage of LEP students progressing at least one proficiency level by 10%.

Performance Objective 7: Increase the staff attendance rate by 1%.


Performance Objective 1: FJH will hold three family curriculum nights focused on increasing student achievement by informing parents of strategiesto support learning at home, assist families with understanding child and adolescent development, and communicating with parents about schoolprograms and student progress.

Performance Objective 2: Increase the percentage of parents using TEAMS and Parent Link by 10%.

Performance Objective 3: Maintain weekly communication with parents through Enewsletter, Social Media, and Parent Conferences.

Performance Objective 4: Develop a minimum of two new school community/business partnerships by reaching out to local businesses andcommunity organizations.


Performance Objective 1: 100% of FJH staff will engage in professional learning opportunities focused on designing engaging work, building positiverelationships, and increasing the rigor of coursework in all content areas (Alvin ISD Engaged Learning Model).


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Performance Objective 2: 100% of teachers will be trained on AVID strategies for campus-wide implementation.

Performance Objective 3: Train 15% of teachers annually in Capturing Kids Hearts until all staff are trained.

Performance Objective 4: 50% of FJH Year One and Year Two teachers will attend professional development on classroom management strategies.


Performance Objective 1: Teachers in core content areas will facilitate a minimum of 5 lessons where students utilize BYOD or technology devices.

Performance Objective 2: All teachers will facilitate a minimum of 2 lessons where students complete projects reflecting the integration of technology.

Performance Objective 3: Increase the number of technology devices and equipment available for student learning.

Performance Objective 4: Increase the number of technology trainings offered to and attended by staff.


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Alvin High School


Distinction Designations:Academic Achievement in Social Studies

Alvin High SchoolGenerated by Plan4Learning.com 1 of 5

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Mission StatementAlvin High School will educate, empower, and prepare students by ensuring our actions reflect Alvin ISD core beliefs.

Trusting relationships in a safe and caring environment are vital to an innovative learning organization.A learning organization focused on excellence will continually transform to be suit the needs of our students and community.Through community support and engagement, quality public schools build and preserve a healthy democratic society.Every student is uniquely capable and deserves to be provided engaging, challenging and meaningful work.Each student should be empowered to realize the opportunities they have as 21st century learners.

VisionAlvin High School is a dynamic learning organization committed to excellence for all students and every program.



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Performance Objective 1: Campus will meet or exceed state standards in grades 9-12 on indexes 1-4 on EOC assessments.

Performance Objective 2: Each subgroup will meet or exceed the percentage points of their respective state average on the STAAR EOC assessments.

Performance Objective 3: Student attendance will increase by 1 percent.

Performance Objective 4: Increase student retention rate in PAP/AP courses by 10 percent.

Performance Objective 5: Increase completion rate of all students to 99 percent.

Performance Objective 6: Increase the percentage of English Language Learners and Limited English Proficient Students passing rate on STAAREOC by 3 percent.

Performance Objective 7: Increase the number of college ready graduates as measured by Index 4 to 63 percent.

Performance Objective 8: Students will score at or above the state average on the ACT and SAT.

Performance Objective 9: Students scoring 3 or higher on AP testing will increase to 55 percent.


Performance Objective 1: Increase the amount of parents receiving Enews and other parentlink communications by 10%.

Performance Objective 2: AHS will engage students, parents, and community in 5 school spirit related activities.

Performance Objective 3: Develop 3 new community partnerships designed to increase community support from our students as well as increasestudent support from our community.

Performance Objective 4: Provide 3 learning opportunities for parents with regard to technology and self education.



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Performance Objective 1: Maintain the percentage of highly qualified core academic subject area teachers at 100 percent.

Performance Objective 2: 100 percent of teachers and staff will receive consistent communication to assist in increased participation in sharedresponsibilities.

Performance Objective 3: All staff will receive professional learning which focuses on building appropriate student-teacher relationships anddesigning engaging work for students.


Performance Objective 1: 100 percent of technology purchased will align to the AISD Engaged Learning Model.

Performance Objective 2: A minimum of 10 technology professional learning opportunities will be provided to teachers to more efficiently facilitatestudent learning in the classroom.

Performance Objective 3: Teachers in core areas will facilitate a minimum of 2 project/lessons utilizing technology.


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Manvel High School


Manvel High SchoolGenerated by Plan4Learning.com 1 of 5 Campus #020-901-002

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Mission StatementManvel High School will prepare students through a rigorous curriculum, to be successful in a dynamic global society. Using professional resources and

technology, we will collaborate with parents, students and the community to develop life-long learners and innovative critical thinkers who will contribute tosociety at their full potential.

VisionManvel High School, in connection with the community, provides a comprehensive education that inspires excellence today and empowers students for

success tomorrow.



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Performance Objective 1: Meet or exceed state standards on STAAR EOC English, Math, Science, and Social Studies exams, including indexes 1-4.

Performance Objective 2: Increase the number of students achieving Level III scores on STAAR EOC exams by 10%.

Performance Objective 3: 75% of graduates will take either the SAT or ACT and will score at or above state average.

Performance Objective 4: Increase the percentage of ELL students passing STAAR EOC by 10%.

Performance Objective 5: MHS will continue to increase percentage of students taking AP exams across demographic areas while also increasingnumber of students scoring 3,4,or 5

Performance Objective 6: Increase the percentage of At-risk students passing STAAR EOC by 10%

Performance Objective 7: Increase graduation rates and the percentage of students graduating on the RHP by 1%.


Performance Objective 1: Increase the number of opportunities parents and community members have to become involved in campus activities be50%

Performance Objective 2: Host at least 4 MHS college and career workshops.

Performance Objective 3: Develop 3 new partnerships with local businesses or business owners.

Performance Objective 4: Host 2 ESL Parent Nights to educate parents on the opportunities that the district provides for parents and students to bridgethe gap between home and school.

Performance Objective 5: Increase ParentLink subscriptions by 10%.


Performance Objective 1: Retain 85% of professional and non-professional staff from one year to the next.


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Performance Objective 2: 100% of teaching staff will receive professional development on ELM model.

Performance Objective 3: Continue to train 15% of staff in Caputuring Kids Hearts until 100% of staff is trained.

Performance Objective 4: Increase teacher attendance by 1%.


Performance Objective 1: Ensure that 100% of teachers attend content specific technology professional development training opportunities.

Performance Objective 2: Teachers in core areas will facilitate a minimum of 2 project/ lessons utilizing technology.


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Assets Academy

2014-2015Accountability Rating: Met Alternative Standard

Assets AcademyGenerated by Plan4Learning.com 1 of 4 Campus #020901005

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Mission StatementThe mission of ASSETS is to alter our students’ perceptions of the value of education and opportunities it provides. ASSETS accomplishes this by creatinga positive learning environment, maintaining high expectations, and challenging students to make choices that will result in life-long learning.

VisionASSETS Academy’s vision is for our students to have discernment in regards to their interpersonal and social growth as well as understanding the needs of

others. In addition, our vision is to create a college-bound culture on our campus where students are directed, motivated, and pursuing post-secondaryeducation.





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Table of Contents

Goal 1: Academic Performance: Student academic performance on state and national exams will reflect continuous improvement and excellence inlearning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Goal 2: Parental/Community Involvement: ASSETS will actively engage parents and the district communities in the education process of ourstudents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Goal 3: Teachers and Staff: ASSETS will attract and retain the highest quality teachers and staff and support their efforts with quality professionaldevelopment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Goal 4: Technology: ASSETS will invest in evolving technology and maintaining existing infrastructure in order to promote student engagement inthe teaching and learning process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4


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Performance Objective 1: Meet or exceed state standards in Grades 9-12 on Indexes 1-4 STAAR/EOC Assessments.

Performance Objective 2: Increase student attendance by 2%.

Performance Objective 3: Increase the student graduation rate of all student populations to 96%.

Goal 2: Parental/Community Involvement: ASSETS will actively engage parents and the district communities in theeducation process of our students.

Performance Objective 1: Increase the percentage of parent and community involvement by 5%.

Performance Objective 2: Increase electronic communication through E-news and/or Parent Link by 10%

Performance Objective 3: Develop at least one new school community/business partnership by reaching out to the community.

Goal 3: Teachers and Staff: ASSETS will attract and retain the highest quality teachers and staff and support their effortswith quality professional development.

Performance Objective 1: Maintain the percentage of classes being taught by highly qualified teachers at 100%.

Performance Objective 2: Improve staff attendance by 5%.

Performance Objective 3: Provide weekly teacher leadership training.

Goal 4: Technology: ASSETS will invest in evolving technology and maintaining existing infrastructure in order to promotestudent engagement in the teaching and learning process.

Performance Objective 1: Teachers in all areas will facilitate a minimum of six lessons where students will utilize BYOD or technology devices.

Performance Objective 2: All staff will improve their own technology skills by attending a minimum of three professional learning trainings per year.

Performance Objective 3: Students will complete a minimum of two products reflecting technology integration.


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Agendum

Request to Consider Local Policy Revisions

Category Business


Attachments Policies CDA (Local), CDC (Local) and CFB (Local)

Rationale Alvin ISD staff along with TASB Policy Services staff

conducted a review of Section C local policies to better align policies with practices allowing us to be efficient and effective

with all financial resources available. Currently, changes are being requested to local policies:

CDA (local), CDC (local) and CFB (local)


Budget Implications

None

Recommendation or

Proposed Motion

That Board approve Policy Changes Based upon Second

Reading of Local Policy Revisions as presented.

306

Alvin ISD 020901 OTHER REVENUES CDA INVESTMENTS (LOCAL)

Proposed Revisions; 9-22-14 1 of 4 CDA(LOCAL)-B to X

PROPOSED REVISIONS

The Superintendent or other person designated by Board resolu-

tion shall serve as the investment officer of the District and shall

invest District funds as directed by the Board and in accordance

with the District’s written investment policy and generally accepted

accounting procedures. All investment transactions except invest-

ment pool funds and mutual funds shall be executed on a delivery

versus payment basis.

From those investments authorized by law and described further in

CDA(LEGAL), the Board shall permit investment of District funds in

only the following investment types, consistent with the strategies

and maturities defined in this policy:

1. Obligations of, or guaranteed by, governmental entities as

permitted by Government Code 2256.009.

2. Certificates of deposit and share certificates as permitted by

Government Code 2256.010.

3. Fully collateralized repurchase agreements permitted by

Government Code 2256.011.

4. A securities lending program as permitted by Government

Code 2256.0115.

5. Banker’s acceptances as permitted by Government Code

2256.012.

6. Commercial paper as permitted by Government Code

2256.013.

7. No-load money market mutual funds and no-load mutual

funds as permitted by Government Code 2256.014.

8. A guaranteed investment contract as an investment vehicle

for bond proceeds, provided it meets the criteria and eligibility

requirements established by Government Code 2256.015.

9. Public funds investment pools as permitted by Government

Code 2256.016.

The main goal of the investment program is to ensure its safety

and liquidity maximize financial returns within current market condi-

tions in accordance with this policy. Investments shall be made in

a manner that ensures the preservation of capital in the overall

portfolio, and offsets during a 12-month period any market price

losses resulting from interest-rate fluctuations by income received

from the balance of the portfolio. No individual investment transac-

INVESTMENT

AUTHORITY

APPROVED

INVESTMENT

INSTRUMENTS

SAFETY AND

INVESTMENT

MANAGEMENT

307



tion shall be undertaken that jeopardizes the total capital position of

the overall portfolio.

Any internally created pool fund group of the District shall have a

maximum dollar weighted maturity of 180 days. The maximum al-

lowable stated maturity of any other individual investment owned

by the District shall not exceed two one years from the time of pur-

chase. The Board may specifically authorize a longer maturity for

a given investment, within legal limits.

The District’s investment portfolio shall have sufficient liquidity to

meet anticipated cash flow requirements.

The investment portfolio shall be diversified in terms of investment

instruments, maturity scheduling, and financial institutions to re-

duce risk of loss resulting from overconcentration of assets in a

specific class of investments, specific maturity, or specific issuer.

The investment officer shall monitor the investment portfolio and

shall keep the Board informed of significant declines in the market

value of the District’s investment portfolio. Information sources

may include financial/investment publications and electronic media,

available software for tracking investments, depository banks,

commercial or investment banks, financial advisors, and repre-

sentatives/advisors of investment pools or money market funds.

Monitoring shall be done at least quarterly, as required by law, and

more often as economic conditions warrant by using appropriate

reports, indices, or benchmarks for the type of investment.

In accordance with Government Code 2256.005(b), the investment

officer shall develop a procedure to monitor changes in investment

ratings and to liquidate investments that do not maintain satisfacto-

ry ratings.

Investments of the following fund categories shall be consistent

with this policy and in accordance with the strategy defined below.

Investment strategies for operating funds (including any commin-

gled pools containing operating funds) shall have as their primary

objectives safety, investment liquidity, and maturity sufficient to

meet anticipated cash flow requirements.

Investment strategies for agency funds shall have as their objec-

tives safety, investment liquidity, and maturity sufficient to meet an-

ticipated cash flow requirements.

Investment strategies for debt service funds shall have as their ob-

jective sufficient investment liquidity to timely meet debt service

payment obligations in accordance with provisions in the bond

LIQUIDITY AND

MATURITY

DIVERSITY

MONITORING MARKET

PRICES

MONITORING RATING

CHANGES

FUNDS / STRATEGIES

OPERATING FUNDS

AGENCY FUNDS

DEBT SERVICE

FUNDS

308



documents. Maturities longer than two one years are authorized

provided legal limits are not exceeded.

Investment strategies for capital project funds shall have as their

objective sufficient investment liquidity to timely meet capital pro-

ject obligations. Maturities longer than one year are authorized

provided legal limits are not exceeded.

The District shall retain clearly marked receipts providing proof of

the District’s ownership. The District may delegate, however, to an

investment source pool the authority to hold legal title as custodian

of investments purchased with District funds by the investment

sourcepool.

Prior to handling investments on behalf of the District, the invest-

ment source brokers/dealers must submit required written docu-

ments in accordance with law. [See SELLERS OF INVEST-

MENTS, CDA(LEGAL)] Representatives of the investment source

brokers/dealers shall be registered with the Texas State Securities

Board and must have membership in the Securities Investor Pro-

tection Corporation (SIPC), and be in good standing with the Fi-

nancial Industry Regulatory Authority (FINRA).

In order to get the best return on its investments, the District may

solicit bids for certificates of deposit in writing, by telephone, or

electronically, or by a combination of these methods.

To reduce exposure to changes in interest rates that could ad-

versely affect the value of investments, the District shall use final

and weighted-average-maturity limits and diversification.

The District shall monitor interest rate risk using weighted average

maturity and specific identification.

A system of internal controls shall be established and documented

in writing and must include specific procedures designating who

has authority to withdraw funds. Also, they shall be designed to

protect against losses of public funds arising from fraud, employee

error, misrepresentation by third parties, unanticipated changes in

financial markets, or imprudent actions by employees and officers

of the District. Controls deemed most important shall include:

1. Separation of transaction authority from accounting and

recordkeeping and electronic transfer of funds.

2. Avoidance of collusion.

3. Custodial safekeeping.

4. Clear delegation of authority.

CAPITAL PROJECTS

SAFEKEEPING AND

CUSTODY

SELLERS OF

INVESTMENTS

BROKERS / DEALERS

SOLICITING BIDS FOR

CD’S

INTEREST RATE RISK

INTERNAL CONTROLS

309



5. Written or electronic confirmation of telephone transactions.

6. Annual Ddocumentation of the investment sourcedealer ques-

tionnaires, quotations and bids, evaluations, transactions, and

rationale.

7. Avoidance of bearer-form securities.

These controls shall be reviewed by the District’s independent au-

diting firm.

310

Alvin ISD 020901 OTHER REVENUES CDC GRANTS FROM PRIVATE SOURCES (LOCAL)

Proposed Revisions; 9-22-14 1 of 2 CDC(LOCAL)-X to A

TASB STANDARD TEXT

The Board may accept any bequest or gift of money or property on

behalf of the District. The gift shall become the sole property of the

District for its use and disposition. All gifts shall be given to the

District and not to a particular school. At the discretion of the Su-

perintendent or designee, the gift may be used in a particular

school.

The Superintendent shall examine and evaluate offers of gifts to

the District and may recommend acceptance to the Board when

the gifts:

1. Have a purpose consistent with District purposes.

2. Place no restrictions on the school program.

3. Do not require the endorsement of a business product.

4. Do not conflict with policies or actions of the Board or public

law.

5. Do not require extensive District maintenance.

Any individual or group, including PTA or booster clubs, wishing to

donate money, material, or equipment to the District shall describe

in writing the proposed donation.

Upon receipt of this proposal, an appropriate staff member shall

evaluate the proposed donation.

The Superintendent or Board shall consider the staff’s recommen-

dation and shall decide whether to accept or reject the proposed

donation. A person or group offering a gift or donation shall be

recognized with a District Certificate of Appreciation.

CRITERIA FOR ACCEPTING GIFTS

To be acceptable, a gift shall:

1. Have a purpose consistent with District goals and objectives;

2. Not add to staff load;

3. Not begin a program that the Board would be unwilling to take

over when the gift or grant funds are exhausted;

4. Not bring unreasonable or hidden costs to the District;

5. Place no restrictions on the school program;

6. Not be in conflict with existing District policies or procedures;

GIFTS FROM THE

PUBLIC

CRITERIA FOR

ACCEPTANCE

APPROVAL

311

Alvin ISD 020901 OTHER REVENUES CDC GRANTS FROM PRIVATE SOURCES (LOCAL)

Proposed Revisions; 9-22-14 2 of 2 CDC(LOCAL)-X to A

7. Become a possession solely of the District for use and dispo-

sition as deemed most appropriate;

8. Not require extensive maintenance on the part of the District;

9. Not require the endorsement of a business product; and

10. Not be remanufactured and sold for profit by any employee or

group of students of the District.

Capital improvement construction projects to existing facilities paid

for by gift or donation shall be approved prior to beginning any

construction in accordance with the following:

1. Projects costing $9,999.99 or less shall require approval of

the Superintendent.

2. Projects costing $10,000 or more shall require approval by

the Board.

The donor shall sign a release of all rights to donations. Titles to

donated items shall be presented for transfer to the District at the

time of the donation.

312

Alvin ISD 020901 ACCOUNTING CFB INVENTORIES (LOCAL)

Proposed Revisions; 9-22-14 1 of 1 CFB(LOCAL)-A to X

PROPOSED REVISIONS

The capitalization threshold for purposes of classifying capital as-

sets shall be $5,000 and have a useful life of at least one year. CAPITALIZATION

THRESHOLD

313



Agendum

Request to Consider Approval of TASB Policy Update 100

Category Operations/Action Item


Attachments Vantage Points / Board Member’s guide to Update 100

Rationale TASB has updated the Legal policies for review. The first reading of TASB Policy Update 100 was approved at the

October 14, 2014 Board Meeting.

District Goal(s) Academic Performance Teachers and Staff Technology

Facilities Fiscal Responsibility

Budget Implications

None


That the Board approve TASB Policy Update 100 as presented.

314

(LOCAL) Policy Action List

ALVIN ISD(020901) - Update / 100

Here is a list of Local Policies that the board will take action on for Update 100. In Update 100, there are legal policies that are listed as well but need no board action.

CKE(LOCAL): SAFETY PROGRAM/RISK MANAGEMENT - SECURITY PERSONNEL

CPC(LOCAL): OFFICE MANAGEMENT - RECORDS MANAGEMENT

CRD(LOCAL): INSURANCE AND ANNUITIES MANAGEMENT - HEALTH AND LIFE INSURANCE

DCB(LOCAL): EMPLOYMENT PRACTICES - TERM CONTRACTS

DCC(LOCAL): EMPLOYMENT PRACTICES - CONTINUING CONTRACTS

DCD(LOCAL): EMPLOYMENT PRACTICES - AT-WILL EMPLOYMENT

DCE(LOCAL): EMPLOYMENT PRACTICES - OTHER TYPES OF CONTRACTS

FDA(LOCAL): ADMISSIONS - INTERDISTRICT TRANSFERS

FL(LOCAL): STUDENT RECORDS

GKB(LOCAL): COMMUNITY RELATIONS - ADVERTISING AND FUND RAISING IN THE SCHOOLS

315

Vantage Points A Board Member’s Guide to Update 100

Please note: Vantage Points is an executive summary, prepared specifically for board members, of the TASB Localized Update. The topic-by-topic outline and the thumbnail descriptions focus attention on key issues to assist local officials in understanding changes found in the policies. The description of policy changes in Vantage Points is highly summarized and should not substitute for careful attention to the more detailed, district-specific Explanatory Notes and the policies within the localized update packet.

316

1

This information is provided for educational purposes only to facilitate a general understanding of the law or other regulatory matter. This information is neither an exhaustive treatment on the subject nor is this intended to substitute for the advice of an attorney or other professional advisor. Consult with your attorney or professional advisor to apply these principles to specific fact situations.

We welcome your comments or suggestions for improving Vantage Points. Please write to us at TASB Policy Service, P.O. Box 400, Austin, TX 78767-0400, e-mail us at [email protected], or call us at 800-580-7529 or 512-467-0222.

For further information about Policy Service, check out our website at http://policy.tasb.org.

© 2014 Texas Association of School Boards, Inc. All rights reserved.

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Among the topics addressed at Update 100 are performance reporting, district- and campus-improvement plans, security personnel, instructional materials allotments, records management, employee health insurance, district employment practices, staff development, credit-by-examination, revocation of student transfers, and public information.

Provisions at AIB(LEGAL) have been revised to reflect the new Texas Aca-demic Performance Report (TAPR), which replaced the Academic Excellence Indicator System (AEIS) report. The policy also incorporates the amended Commissioner’s rules outlining timelines for a public hearing on the TAPR and requiring the report to be published on the district’s website and in other public places. Details from existing Commissioner’s rules regarding school report cards (SRCs), including timelines for distributing the report to parents, and a new provision from the amended rules permitting the district to send the SRC to parents by e-mail, have also been added to this legally referenced policy.

Changes from the 83rd Texas Legislature, Regular Session, require the Commissioner of Education to develop an online survey on teaching and learning conditions to be administered biennially to district professional staff. As noted at BQA(LEGAL) and BQB(LEGAL) and beginning with the 2014–15 school year, each district- and campus-level planning and decision-making committee must use the results of the survey to review and revise the district- and campus-level improvement plans and, as otherwise appropriate, to en-hance the learning environment. Note that if your district committee functions as a single district/campus committee, only BQA(LEGAL) is included in the Update packet.

CKE(LEGAL), addressing security personnel, has been reorganized and revised to better reflect statutory text and is recommended for inclusion in all districts’ policy manuals to reflect common security options available to school districts. The policy is organized into four major sections and includes existing provisions on district peace officers and security personnel; new provisions on school marshals from the 83rd Texas Legislature, Regular Session; provisions regarding concealed handgun licensees, including a new attorney general decision on authorizing individuals to carry firearms on district property; and existing statutory provisions on school resource officers.

Not revised at Update 100 but also recommended for inclusion in all districts’ localized policy manuals is DEB(LEGAL) addressing fringe benefits and in-cluding the legal requirements applicable upon the death of a peace officer employed by a district. This legally referenced policy is recommended as a reference since all districts have the option of commissioning peace officers.

Performance Reporting

District/Campus Improvement Plans

Security Personnel

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CKE(LOCAL) POLICY CONSIDERATIONS

This local policy on security personnel may be recommended for inclusion or for revision in your district’s policy manual based on the district’s responses to a survey sent by TASB Policy Service in early June. Note, however, that if the board has not authorized the formation of a police department or if the district does not have an arrangement with a local law enforcement agency for the presence of school resource officers on district property, no local poli-cy is recommended at this time. If the board has authorized certain individu-als to carry concealed handguns on district premises, this information should be included at CKC(LOCAL).

FL(LOCAL) POLICY CONSIDERATIONS

Recommended revisions at FL(LOCAL) clarify that a district’s school re-source officers, if any, are considered “school officials” for purposes of FERPA and are allowed access to student records if they have a legitimate educational interest in the records. Even if the district does not currently have school resource officers, this revision is recommended to accommo-date any future arrangements.

The recent attorney general opinion regarding concealed handgun licensees incorporated at CKE(LEGAL) is also reflected at GKA(LEGAL), addressing conduct on school premises. The opinion provides that a concealed handgun license holder does not commit a criminal offense by carrying a handgun at an interscholastic event or a board meeting if the holder is lawfully carrying a handgun pursuant to the board’s written regulations and authorization.

Revisions at CMD(LEGAL) were prompted by amended Commissioner’s rules regarding the instructional materials allotment (IMA) and include addi-tional detail regarding the option for a district to requisition and receive in-structional materials before IMA funds are available, as well as other provi-sions concerning the mechanics of IMA funding and reimbursement.

At CPC(LEGAL), existing statutory provisions have been added explaining that a board must designate a records management officer (RMO) for the dis-trict and file the RMO’s name, office, or position with the Texas State Library and Archives Commission within 30 days.

Concealed Handgun License Holders

District Operations

Instructional Materials

Records Management

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CRD(LEGAL) has been extensively reworked in light of the Affordable Care Act. Text has been streamlined throughout and adjusted to better match stat-utory authority, while definitions of full-time and part-time employees have been revised to help districts determine employee eligibility for participation in TRS-ActiveCare.

CRD(LOCAL) POLICY CONSIDERATIONS

Recommended deletions at this code provide flexibility for the district to de-termine contributions to health insurance premiums based on factors other than part-time or full-time status, as previously indicated in the policy. For example, the district could consider TRS membership in setting contribu-tions. This change is more consistent with state law, which requires districts to contribute to the health insurance premiums of only those employees who are active, contributing TRS members.

DC(LOCAL) SERIES POLICY CONSIDERATIONS

A primary objective of Update 100 is to ensure districts’ local policies align with their current employment practices. Local policy recommendations in this series of policies reflect the district’s responses to the survey sent by TASB Policy Service in June and affect, as applicable, DCB(LOCAL) regard-ing term contracts, DCC(LOCAL) on continuing contracts, DCD(LOCAL) re-garding at-will employment, and DCE(LOCAL) addressing non-Chapter 21 contracts. For specific changes to your district’s policies, see the Update 100 Explanatory Notes.

Statutory changes from the 2011 82nd Texas Legislature—which were delayed pending development of the new principal appraisal system that TEA will pilot in the 2014–15 school year—are now reflected at DMA(LEGAL), where provisions on staff development have been reorganized to better track statute and to include separate development requirements for educators and principals. As a result of the 2013 83rd Texas Legislature, Regular Session, provisions on required professional development for adult education staff have been deleted from the policy, since the administration and oversight of adult education and literacy programs has now transferred from TEA to the Texas Workforce Commission.

Health Insurance

Employee Issues

Employment Practices

Staff Development

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As reflected at EHDB(LEGAL), amended State Board rules on credit by examination with prior instruction specify that tests given to students for the purpose of receiving credit for a subject in which a student has received prior instruction must be approved by the board.

Changes at EIC(LEGAL) on class rank address how the new foundation graduation program will affect requirements for automatic admission to an institution of higher education.

FDA(LOCAL) POLICY CONSIDERATIONS

For districts that approve interdistrict transfers, recommended revisions to this local policy are based on a recent Commissioner decision that deter-mined that, under the Texas Education Code, interdistrict transfers must be for a period of one year. As a result, text permitting the district to revoke transfers mid-year for violations of the district’s rules and regulations has been deleted, while new text provides that the district may take into account a transfer student’s conduct in approving a transfer for the following school year.

A new legally referenced policy at GB(LEGAL), containing provisions formerly at GBA(LEGAL), details the scope of public information and serves as an introduction to the series of policies addressing public information.

GBA(LEGAL), addressing access to public information, has been revised and reorganized. Several provisions addressing the scope of public information were moved to GB(LEGAL) and the remaining text, along with additional existing statutory provisions, was reorganized into three sections addressing right of access, confidential information under the Public Information Act (PIA), and information excepted from disclosure under the PIA.

GBAA(LOCAL) POLICY CONSIDERATIONS

With some exception, state law allows districts to charge requestors for dis-trict personnel time spent responding to the requestor’s public information requests after the personnel time exceeds a specified amount established by the district, which may not be less than 36 hours. For districts that did not already have a local policy at this code, we recommend inclusion of this poli-cy in your local policy manual to provide that the district will charge reques-tors for personnel time in accordance with this policy.

Instruction and Student Issues

Credit by Examination

Automatic Admissions

Interdistrict Student Transfers

Public Information

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GKB(LOCAL) POLICY CONSIDERATIONS

Recommended revisions to this local policy addressing advertising in schools expand the standards for accepting or rejecting advertising under district consideration and state that acceptance of advertising does not con-stitute district endorsement or approval. The policy explains that advertising is for the purpose of generating revenue, not establishing a forum for com-munication. Although requests for advertising must be considered in a man-ner consistent with the First Amendment, the district maintains control over the size and location of advertising and may reject advertising that is incon-sistent with law, board policy, regulations, or curriculum or that has a rea-sonable likelihood of exposing the district to controversy, litigation, or disrup-tion.

For further information on these and other policy changes, refer to the policy-by-policy Explanatory Notes—customized for each district’s policies—and the policies themselves, found in your district’s localized update packet.

Advertising

More Information

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November 11, 2014


Agendum Request Board Approval of Contract Award and Budget Amendment for Replacing Hail Damaged Roofs at Alvin High

School

Category Business

Resource Personnel Patrick Miller, Chief Operations Officer

Attachments Supporting memorandum from Director of Maintenance,

David Bolton; roofing contractor’s tabulation of bids.

Rationale A claim for roof damage due to a hail storm was filled by the Alvin ISD in last fiscal year. The damage did not become evident on our single-ply Durolast roofing systems

until after more than a year. The claim process continues to make progress and is anticipated to be presented to the

Board in the near future. In order to minimize collateral damage, a contract for roof repairs to several critical buildings on Alvin High School campus is being presented

for consideration.

The most effective method to proceed is through Texas Inter-local Purchasing System (TIPS administered by Region VII Service Center). The District has used the

Durolast Roofing System for our (flat) roofs across the District for over 20 years. Durolast Inc. will act as a general contractor and sub out the repairs in two projects

as indicated in the supporting documents.

Until funds from the insurance claim are received we are recommending the use of designated Property & Casualty Funds (755 Fund).

Budget Implications Requires a budget amendment at this time to re-direct

Property Casualty funds and appropriate the execution a of contract(s) prior to the receipt of the insurance settlement funds.

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Recommendation or

Proposed Motion

That AISD Board of Trustees approves and authorizes the

Superintendent to execute contract(s) with Durolast Roofing, Inc for the roofing replacement at Alvin High School and approve the corresponding budget amendment.

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301 E. House St. ♦ Alvin, TX 77511 ♦ 281-824-0567 ♦ FAX 281-585-4567 Physical Address: 2200 Stapp Maxwell, Alvin, Texas


David Bolton

Director of Maintenance & Operations

October 31, 2014

TO: Patrick Miller Chief Operating Officer

Susan Wilson Chief Financial Officer

FROM: David Bolton

SUBJECT: Board Approval to contract with Duro-Last Roofing to replace roofs at

Alvin High School

AISD Maintenance Department has been working on an insurance claim for hail damage at 7 of our

campuses. The final claim adjustment is near settlement. Prior to settlement of the claim, it is in the best interest of

the District, to proceed with replacing the damaged roofs at several AHS buildings.

The District has moved forward with accepting bids by use of The Interlocal Purchasing System (TIPS), a

state purchasing method commonly used by public schools. Duro-Last Roofing, the manufacturer of our roofing

systems, will act as the agent to procure competitive bids for installation labor, materials, equipment and other needs

from qualified roofers. The material costs are locked in at prices previously bid and negotiated by the state.

The following proposals will be completed in two contract packages due to the size and scope of work:

AHS Roof Package 1: includes replacing the roofs at the AHS Auditorium & Gym 1, Find Arts and Field

House. Phase 1 will be awarded to Duro-Last using Parsons Roofing as the installer.

AHS Roof Package 2: includes replacing the roofs at the AHS Competition Gym, Gym3 and Vocational.

Phase 2 will be awarded to Duro-Last using Jaco Roofing as the installer.

Request contract award of AHS roof packages 1&2 to Duro-Last, a TIPS vendor, to provide the

replacement of hail damaged roofs at Alvin High School. Upon approval, Duro-Last will begin replacement in

December 2014.

.

Request funding approval in the amount of $1,574,635.01 through Fund Balance. Reimburse upon

receipt of funding from insurance settlement.

Budget Amendment



Attachments: Bid Summary

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ALVIN ISDHAIL DAMAGE

ALVIN HIGH SCHOOL ROOF REPLACEMENTDURO-LAST BID SUMMARY

GAGE JACO PARSONSCAMPUS ROOFING ROOFING ROOFING

ALVIN HIGH SCHOOLPackage 1 $1,316,888.57 $1,183,841.01 $790,951.05

Safety Director $9,000.00 $30,000.00 $3,400.00Fencing $14,500.00 $20,000.00 $4,000.00Scaffolding $4,000.00 $3,000.00 $5,500.00Deck replacement/Contingency $15,000.00 $15,000.00 $15,000.00Plywood $3,800.00 $4,000.00 $3,400.00

Subtotal $1,363,188.57 $1,255,841.01 $822,251.05


Total for Package 1 $1,363,188.57 $1,255,841.01 $822,251.05

Duro-Last awarded with Parsons Roofing installing Package 1: $822,251.05

Package 2 $846,597.51 $737,383.96 $816,564.96

Safety DirectorFencingScaffoldingDeck replacement/Contingency $15,000.00 $15,000.00 $15,000.00Plywood

Subtotal $861,597.51 $752,383.96 $831,564.96


Total for Package 2 $861,597.51 $752,383.96 $831,564.96

Duro-Last awarded with Jaco Roofing installing Package 2: $752,383.96

Total funds needed from Fund Balance $1,574,635.01

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Agendum

Request to Consider Approval of Financial Audit Report

Category Business


Attachments 2013-2014 Audit Reports

Rationale The 2013 – 2014 Financial Audit was presented earlier in the

meeting. An additional regulation of Alvin Independent School District is to annually submit the results of the audit

to TEA after the official vote of the Board of Trustees.


Budget Implications

None

Recommendation or

Proposed Motion

That Board approve the 2013 – 2014 Financial Audit as

presented.

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ALVIN INDEPENDENT SCHOOL DISTRICT TABLE OF CONTENTS Page Exhibit Introductory Section

Principal Officials and Advisors i Certificate of the Board ii Transmittal Letter iii GFOA Certificate of Achievement x ASBO Certificate of Excellence xi Organizational Chart xii

Financial Section

Independent Auditor’s Report 1 Management’s Discussion and Analysis 7 Basic Financial Statements:

Government-wide Financial Statements: Statement of Net Position 18 A-1 Statement of Activities 19 B-1

Governmental Fund Financial Statements: Balance Sheet 20 C-1 Reconciliation of Balance Sheet for Governmental Funds to

Statement of Net Position 23 C-2 Statement of Revenues, Expenditures, and Changes in Fund

Balances 24 C-3 Reconciliation of the Statement of Revenues, Expenditures, and

Changes in Fund Balances for Governmental Funds to the Statement of Activities 26 C-4

Proprietary Fund Financial Statements: Statement of Net Position 27 D-1 Statement of Revenues, Expenses, and Changes in Fund Net

Position 28 D-2 Statement of Cash Flows 29 D-3

Fiduciary Fund Financial Statements: Statement of Fiduciary Net Position 30 E-1

Notes to the Financial Statements 31 F-1 Required Supplementary Information:

Budgetary Comparison Schedule - General Fund 57 G-1 Notes to Required Supplementary Information 58 G-2

Other Supplementary Information: Combining Fund Statements:

Non-major Governmental Funds: Combining Balance Sheet 62 H-1 Combining Statement of Revenues, Expenditures, and Changes

in Fund Balances 68 H-2 Internal Service Funds:

Combining Statement of Net Position 76 H-3 Combining Statement of Revenues, Expenses, and Changes in

Fund Net Position 78 H-4 Combining Statement of Cash Flows 80 H-5

Statement of Changes in Assets and Liabilities – Agency Funds 82 H-6

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ALVIN INDEPENDENT SCHOOL DISTRICT TABLE OF CONTENTS (continued)

Page Exhibit Required TEA Schedules:

Schedule of Delinquent Taxes Receivable 84 J-1 Budgetary Comparison Schedule - Child Nutrition Fund 86 J-4 Budgetary Comparison Schedule - Debt Service Fund 87 J-5

Statistical Section (Unaudited) Table Net Position by Component 92 1 Change in Net Position 94 2 Fund Balance s of Governmental Funds 96 3 Changes in Fund Balances of Governmental Funds 98 4 Assessed Value and Estimated Actual Value of Taxable Property -

Combined 101 5 Property Tax Rates - Direct and Overlapping Governments 102 6 Principal Taxpayers 104 7 Property Tax Levies and Collections 105 8 Outstanding Debt by Type 106 9 Ratios of net General Obligation Bonded Debt Outstanding 107 10 Direct and Overlapping Governmental Activities Debt 109 11 Legal Debt Margin Information - Combined 110 12 Demographic and Economic Statistics 112 13 Principle Employers 113 14 Full-Time Equivalent District Employees by Position 115 15 Operating Statistics 116 16 Teacher Base Salaries 119 17 School Building Information 120 18 Attendance Data 126 19

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Trustee Office Date Elected Term Expires OccupationCheryl Harris President May 2012 May 2015 Social WorkNicole Tonini Vice-President May 2013 May 2016 HomemakerRegan Metoyer Secretary May 2012 May 2015 ACC AdministratorTiffany Wennerstrom Trustee May 2013 May 2016 Former EducatorEarl Humbird Trustee May 2014 May 2017 Plant OperatorVivian Scheibel Trustee May 2014 May 2017 Pre-Sales Mike Lansford Trustee May 2012 May 2015 Insurance Agent

Years of ServiceOfficial Position Total District

Vacant SuperintendentTommy King Interim Superintendent 37 26Dr. Elizabeth Veloz Deputy Superintendent of Academics 22 12Dr. Loree Bruton Assistant Superintendent of Federal & Special Program 6 22Vacant Assistant Superintendent of Human ResourcesSusan Wilson Chief Financial Officer 26 22Pat Miller Chief Operations Officer 14 14Cheryl Ryan Director of Finance 22 8

Andrews Kurth, LLP, Houston, Texas BOSC, Inc., Houston, TexasBond Counsel Financial Advisor

Whitney-Penn, LLP Houston, TexasIndependent Auditors

Consultants and Advisors

Administrative Officials

Board of Trustees

PRINCIPAL OFFICIALS AND ADVISORS

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CERTIFICATE OF THE BOARD

Alvin Independent School District Brazoria 020-901 Name of School District County Co.– Dist. No.

We, the undersigned, certify that the attached annual financial reports of the above named school district

were reviewed and approved for the fiscal year ended June 30, 2014, at a meeting of the board of trustees

of such school district on November 11, 2014.

______________________________________ ___________________________________

President of Board Secretary of the Board

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301 E. House St. Alvin, TX 77511 Phone 281-245-2481 Fax 281-331-1693

iii


November 11, 2014 To the Board of Trustees and Citizens of the Alvin Independent School District: The Texas Education Code requires that all school districts file a set of financial statements with the Texas Education Agency (TEA) within 150 days of the close of each fiscal year. The financial statements must be presented in conformity with the generally accepted accounting principles (GAAP) and audited by a firm of licensed certified public accountants in accordance with generally accepted auditing standards. Pursuant to this requirement, we hereby issue the Comprehensive Annual Financial Report of the Alvin Independent School District (the District) for the fiscal year ended June 30, 2014. This report consists of managements’ representations concerning the finances of the District. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The financial statements of the District have been audited by Whitley Penn, LLP, a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the District for the fiscal year ended June 30, 2014, are free of material misstatement. The independent audit involves examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit that there was a reasonable basis for rendering and unmodified opinion that the District’s financial statements for the year ended June 30, 2014 are fairly presented in conformity with GAAP. The independent auditors’ report is presented as the first component of the financial section of this report. The independent audit of the financial statements is part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditors to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports may be found in the Federal Awards section of a separately issued report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The District’s MD&A can be found immediately following the report of the independent auditors.

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PROFILE OF THE DISTRICT The Alvin Independent School District was established on May 28, 1925. The District is an independent public educational agency operating under applicable laws and regulations of the state of Texas providing a full range of educational services appropriate to grade levels ranging from pre-kindergarten through grade twelve. Alvin ISD is located in Brazoria County, Texas, 25 miles southeast of Houston at the intersection of State Highway 6 and IH35. Alvin ISD spans 250 square miles and encompasses the cities of Alvin, Manvel, Iowa Colony, Liverpool, Rosharon, and Pearland. Alvin ISD continues to be the fastest growing District in the Houston Area. During the 2013-2014 school year, more than 900 new students, one hundred more than last years’ increase, were in attendance within the school District. AISD currently serves an average daily attendance of 18,550 students which is 19.8% higher than 15,478 students served five years ago. The District is comprised of two high schools, one career and technical education facility, one academic alternative school, one behavior alternative school, five junior high schools and fifteen primary/elementary schools. Currently construction is underway with the sixth junior high school which is scheduled to open in 2015, the third high school to open in 2016, and land has been acquired for the seventeenth elementary. The ages of the school buildings range from zero to forty-five years.

GOVERNING BODY The seven members of the Board of Trustees (Board) serve, without compensation, a three year term. While on a rotating basis, elections are held the first Saturday in May for either two or three positions each year. Any potential vacancies may be filled by appointment until the next election. Candidates must be qualified voters of the District. Regular meetings are scheduled the second Tuesday of the month and are held in the Board room at the Administrative building. Special meetings and workshops are scheduled as needed and announced in compliance with public notice requirements. The Board has final control over local school matters limited only by the state legislature, by the courts, and by the will of the people as expressed in school Board elections. Board decisions are based on a majority vote of those present. In general, the Board adopts policies, employs the Superintendent, and oversees the operations of the District and its schools. Besides general Board business, Trustees are charged with numerous statutory regulations including calling trustee and other school elections and canvassing the results, organizing the Board and electing its officers. The Board is also responsible for setting the tax rate, setting salary schedules, acting as a board of appeals in personnel and student matters, confirming recommendations for textbook adoptions, and adopting and amending the annual budget.

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MISSION, VISION & CORE BELIEFS Alvin ISD is a public school system whose mission is “…to offer exemplary programs enabling all students to possess the ability to learn for the rest of their lives and become productive citizens.” With over thirty different languages represented within the District, AISD’s Vision statement recognizes the diversity of being “a dynamic learning organization committed to the excellence for all students and every program.” It is the commitment of the District, to provide engaging learning opportunities and to build positive relationships with the students and their families, that has the faculty and staff members guided by the five Core Beliefs:

I. Trusting relationships in a safe and caring environment are vital to an innovative learning organization

II. A learning organization focused on excellence will continually transform to the best suit the needs of our students and community

III. Through community support and engagement, quality public schools build and preserve a healthy democratic society.

IV. Every student is uniquely capable and deserves to be provided engaging, challenging and meaningful work.

V. Each student should be empowered to realize the opportunities that they have as 21st century leaders.

ECONOMIC CONDITION AND OUTLOOK Located southeast of the Houston area, Alvin ISD resides within the Houston Metropolitan Statistical Area; the fifth largest in the Nation. With Texas’ economy outperforming that of the Nation’s, Houston is not only benefiting from the energy boom but also the increase in new construction and property values. The West end of the District, primarily where Alvin ISD’s growth is; is just miles from Houston’s medical center making it a prime location for not only the medical center but also the petro-chemical industry within the surrounding area as well. Hence, the increase in the new housing market within Alvin ISD. Since 2000, the District has experienced an approximate growth 73% in student population. Over the last ten years, property values have increased from $3.5 billion to over $7.7 billion. Although the recession slowed the continuous growth a bit, the constant demand for additional schools has remained steady over the last six years due to an average student growth of approximately 4.4%. This increase in students and values is reflective of the Tax Increment Reinvestment Zone (TIRZ) that the District entered into in 1999. Another positive growth opportunity for Alvin ISD lies with the port of Freeport. With the Foreign-Trade Zone, the Freeport Harbor Channel Improvement project (deepening and widening project) and the Panama Canal expansion, there will be more opportunities for additional jobs at the port of Freeport and surrounding areas which will add to the growth within the most southern part of the District’s West side.

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GROWTH In effort to accommodate the continued increase of students, in one of the fastest growing school districts in the Houston metropolitan area, the District has put plans in place to add additional facilities and update current buildings to fit the needs of 21st century learners. Alvin ISD is able to keep up with the demands and needs of the students, thanks to community support in past school bond elections. The 2013 school bond election enabled the District to begin construction on the District’s third high school, the replacement a junior high school, replacement of an elementary campus, renovate one of five junior high schools, design and construct a new agriculture facility as well as providing funds for the a new Career and Technology Education center.

BUDGETARY PROCESS State law requires that every local education agency in Texas prepare and file an annual budget of anticipated revenues and expenditures with the Texas Education Agency. The annual budget serves as the foundation for the District’s financial planning and control. The budget process must include budgeting for the General Fund, Debt Service Fund, and the Child Nutrition Fund. Each year, the Board of Trustees and the Superintendent begin the budget process by reviewing the goals that establish the basis for budgeting available resources. Considering the fast-growth environment, the economic conditions, the changes in accountability standards and the change in student population, the District makes it a priority to analyze and adjust the programmatic structure to best meet the needs of the students. As the budgets are developed by each campus and department, the District and Campus Improvement Plans are considered in the needs assessments. The budgets represent a balance between the educational needs of the students and programs and the ability of the community and the State of Texas (State) to provide the necessary financial resources. Each year, the budget process officially begins in October with the preparation of the budget calendar for the upcoming year. During October, the demographer study allows the District to begin looking at growth rates, trends, and economic conditions affecting the district. The forecasting then is able to be utilized in staffing allotments and in campus budget financial allotments. Through the course of the spring each year, the campuses and departments begin formulating the needs assessments and requests for the following budget. Consolidated budgeting information is then presented to the Superintendent’s Cabinet and to the Board of Trustees in various workshops and meetings. With a July 1 fiscal start date, the budget must be approved by June 19th each year.

FINANCIAL PLANNING Major revenue sources include local property taxes, state funding from Foundation School Program (FSP) and Available School Fund (ASF), interest income, and miscellaneous income including gate receipts and supplemental income. In order to ensure that Alvin ISD will have sufficient resources to cover the expenditures that will be added in the next several years, it has been the District’s practice to complete a three-year forecast of revenues and expenditures. In an environment where the revenue funding formula can change significantly, based on legislative action every two years, there are some heavy assumptions in these calculations.

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Alvin ISD utilizes more than one method for forecasting revenues. Local taxable values are assumed to increase 8% for the next three years. In addition, the annual student enrollment growth continues to rise. The average daily attendance is expected to increase 4.5% in the fiscal year 2014-15 and 5.5% in the following two years. Revenue Assumptions

1. As student enrollment growth continues to rise, the amount of staffing growth is being adjusted. 2. As seen in other school districts, the impact from state funding changes from SB1 of the 2011

Legislative Session have had a dramatic influence on future funding. 3. The increase from the 2013 Legislative Session will help smooth-out some of the loss to revenue

in the previous biennium. (Please see discussion in the Organization Section – Legislative Impacts).

Expenditure Assumptions

1. Alvin ISD will continue to maintain its allocation of campus budgets. 2. In order to meet the growing enrollment needs, staffing positions will need to be added by using

the Weighted Average Staff Allocation (WASA) method. This new system will allow the District to remain within budget guidelines without overspending.

3. Those expenditures not directly impacting instructional needs will be analyzed yearly

FUND BALANCE During the 2013-14 school year, there were 25 authorized budget amendments from general fund balance totaling $23,227,653. Although several of these were routine amendments, a number of them were for capital improvements and projects that included: Land Purchase, District-wide Safety & Security Radios Purchase, 3 Modular Buildings from Manvel High School, Buses, Technology, Safety & Security Vestibules, and CTE FFE at Alvin High School. In projecting needs for future financial resources, the approach that Alvin ISD has selected is to first consider the students, with their program needs, that we will have the privilege to serve in the next several years. For projecting fund balance needs, an underlying principal for financial solvency and for considerations for credit ratings, is to utilize the newly modified local board policy, CE (Local). Also, Government Finance Officers Association (GFOA), in 2009, released a best practice and advisory concerning financial management in governmental entities. Their recommended practices mention that adequate fund equity will vary based on unique circumstances. Additionally, Texas Association of School Business Officials (TASBO) released a recommended best practice in 2012 titled, “Appropriate Level of Fund Balance in the General Fund”. In the TASBO article, it states “The trend for fund balance in the General Fund provides insight into the level of consistency in following sound financial management practices by executive management and the board of trustees.” And in the conclusion of the paper, it states: “The overall fast growing student enrollment in Texas demands the best possible financial ratings to benefit lowered long-term debt costs related to the facilities, equipment and technology in the public education infrastructure.” The conclusion continues by stating, “An adequate fund balance helps a school district minimize various risks caused by uncontrollable factors and focus on the primary purpose of instructing students.” When a district, such as Alvin ISD, is in a high-growth part of their history, it is recommended and customary to stay closer to the 90 days of operating expenditures as the unassigned portion of their projected financial plan.

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AWARDS The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the District for its CAFR for the fiscal year ended June 30, 2013. This was the first year that Alvin ISD produced a CAFR and it was the first year to receive this prestigious award. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report. The report must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current Comprehensive Annual Financial Report continues to meet the requirements of the Certificate of Achievement program for which this report will be submitted to the GFOA to determine its eligibility for certification. The District was also awarded the Certificate of Excellence in Financial Reporting by the Association of School Business Officials International (ASBO) for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2013. Once again, this was the first year Alvin ISD completed a CAFR and submitted it for yet another prestigious award. We believe that our current Comprehensive Annual Financial Report continues to conform to the standards for which this award was granted and will be submitting it again. Additionally, the District just received news that the GFOA awarded the Distinguished Budget Presentation Award for the fiscal year beginning July 1, 2014. This is the second consecutive year the District has received this award. In order to receive this award, Alvin ISD published an easily readable and efficiently organized budget. This report satisfied both GAAP and applicable legal requirements. In addition, the District was awarded the Meritorious Budget Award, for the second consecutive year, by the Association of School Business Officials International (ASBO) for the fiscal year beginning July1, 2014. This is a national award which is given for the standard of excellence in budget presentation. Both the Distinguished Budget Presentation Award and the Meritorious Budget Award are valid for a period of one year. We believe our current budget and practices continue to meet both programs’ requirements as we continue to submit for these respected certificates. The FIRST (Financial Accountability Rating System of Texas) program, a financial accountability system for Texas school districts was developed by the Texas Education Agency in response to Senate Bill 218 of the 77th Texas Legislature in 2001. The TEA has awarded the District a rating of “Superior Achievement” for the year ended June 30, 2013. The District has been awarded the “Superior Achievement” rating under Texas’ Schools FIRST financial accountability rating system each year since inception which is twelve consecutive years. The rating is based upon an analysis of student and staff data reported for the 2012-2013 school year and budgetary and actual financial data for the fiscal year ended June 30, 2013. The primary goal of FIRST is to achieve quality performance in the management of school districts financial resources, a goal made more significant due to the complexity of accounting associated with the Texas school finance system. The “Superior Achievement” rating is the state’s highest financial rating, demonstrating the quality of AISD’s sound fiscal management.

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ACKNOWLEDGEMENTS We appreciate the support of the Board, the residents of the District, and the business community, all who work cooperatively to ensure the best education for its students and the prudent development of the District. This cooperation is indicative of the strong support for the attainment of excellence in the District’s educational programs. Also, we would like to express an appreciation to all employees of the District’s schools for their interest and support in planning and conducting the financial affairs of the District in a responsible and progressive manner. Finally, a special thanks to the Finance Department for its diligence and dedicated service in helping prepare this report on a timely basis. Respectfully submitted, Tommy King Susan Wilson Interim Superintendent Chief Financial Officer Cheryl Ryan Director of Finance

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FINANCIAL SECTION

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INDEPENDENT AUDITOR’S REPORT To the Board of Trustees Alvin Independent School District Alvin, Texas Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Alvin Independent School District (the “District”), as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the District, as of June 30, 2014, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that required supplementary information, such as management’s discussion and analysis and budgetary comparison information on pages 7-14 and 55-56 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements. The other supplementary information such as, the combining and individual nonmajor fund financial statements, and compliance schedules, and the other information, such as the introductory and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. DRAFT

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The combining and individual nonmajor fund financial statements, compliance schedules, as listed in the table of contents are the responsibility of management and were derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements, compliance schedules is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any issuance on it. Other Reporting Required By Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 11, 2014, on our consideration of the District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance. Houston, Texas November 11, 2014

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MANAGEMENT’S DISCUSSION AND ANALYSIS

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As management of the Alvin Independent School District (District), we offer readers of the District’s financial statements this narrative overview and analysis of the financial activities of the District for the fiscal year ended June 30, 2014. Financial Highlights • The assets and deferred outflows of the District exceeded its liabilities at the close of the fiscal year

by $139,516,262 (net position). Of this amount, $89,138,644 (unrestricted net position), or may be used to meet the District’s ongoing obligations to students and creditors.

• The District’s total net position increased by $24,915,133. The factors that substantially contributed to the increase in net position were additional revenue from state aid and property taxes.

• As of the close of the current fiscal year, the District’s governmental funds reported combined ending fund balances of $280,881,150, an increase of $172,235,452 in comparison with the prior year. The increase in governmental fund balances was primarily due to issuance of construction bonds resulting in the increase in capital projects fund of $164,877,025. The general fund balance increased by $4,572,321, which was attributed to the increase in state aid and increase in property tax assessed values.

• At the end of the current fiscal year, unassigned fund balance for the general fund was $17,057,409, or 11 percent of total general fund expenditures.

• The District’s total debt increased by $170,091,348 during the current fiscal year.

Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the District’s basic financial statements. The District’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains required supplementary information and other supplementary information in addition to the basic financial statements. Government-wide Financial Statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector business. The Statement of Net Position presents information on all of the District’s assets plus deferred outflows of resources and liabilities plus deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. The Statement of Activities presents information showing how the District’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused sick leave). The government-wide financial statements of the District are principally supported by taxes and intergovernmental revenues (governmental activities). The governmental activities of the District include Instruction, Instructional Resources and Media Services, Curriculum and Instructional Staff Development, Instructional Leadership, School Leadership, Guidance, Counseling, and Evaluation Services, Social Work Services, Health Services, Student Transportation, Food Services, Cocurricular/Extracurricular Activities, General Administration, Plant Maintenance and Operations, Security and Monitoring Services, Data Processing Services, Community Services, Interest on Long-term Debt, Bond Issuance Costs and Fees, Facilities Acquisition and Construction, Payments to Juvenile

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Justice Alternative Education Programs and Payments to Tax Increment Fund. The government-wide financial statements can be found on pages 18 through 19 of this report. Fund Financial Statements are a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the District can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a District’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the District’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The District maintains twenty-two individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, debt service fund, and the capital projects fund, all of which are considered to be major funds. Data from the other nineteen governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in the financial statements. The District adopts an annual appropriated budget for its general fund, debt service fund, and National School Breakfast and Lunch Program special revenue fund. The basic governmental fund financial statements can be found on pages 20 through 26 of this report. Proprietary Fund - The District maintains five internal service funds, one type of proprietary fund. Internal service funds are an accounting device used to accumulate and allocate costs internally among the District’s various funds and functions. The District uses internal service funds to report activities for its self-funded insurance programs and print shop and they have been included within governmental activities in the government-wide financial statements. Proprietary fund statements provide the same type of information as the government-wide financial statements, only in more detail. The internal service fund financial statements provide separate information for the Print Shop, Health Insurance, Worker’s Compensation Self-Insurance Funds, Property & Casualty Insurance and Health & Workers’ Compensation Fund. The basic proprietary fund financial statements can be found on pages 27 through 29 of this report. Fiduciary Funds are used to account for resources held for the benefit of parties outside of the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the District’s own programs. The district is only responsible for ensuring that the assets reported in these funds are used for their intended purposes.

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The basic fiduciary fund financial statement can be found on page 30 of this report. Notes to the Financial Statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 31 through 54 of this report. Required Supplementary Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information that further explains and supports the information in the financial statements. The required supplementary information relates to comparison of the original adopted budget, the final amended budget, and the actual amounts for the fiscal year. This is required supplementary information for the general fund and any major special revenue funds. The District did not have any major special revenue funds; therefore, only the general fund is presented as required supplementary information. The required supplementary information can be found on pages 57 through 58 of this report. Other Information. The combining and individual fund statements and schedules and other supplementary information are presented immediately following the required supplementary information and can be found on pages 60 through 79 of this report. Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a District’s financial position. In the case of the District, assets and deferred inflows exceeded liabilities by $139,516,262 at the close of the most recent fiscal year. The District’s net investment in capital assets, net position (e.g., land, buildings and improvements, furniture and equipment, construction in progress), was $41,087,905 less any outstanding related debt used to acquire those assets. The District uses these capital assets to provide services to students; consequently, these assets are not available for future spending. Although the District’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

2014 2013

Current and other assets 320,162,351$ 146,771,174$ Capital assets 335,598,298 309,980,431Total Assets 655,760,649 456,751,605Total Deferred Outflows of Resources 5,782,550 6,372,318 Current liabilities 33,389,302 30,129,179Long term liabilities 488,637,635 318,393,615Total Liabilities 522,026,937 348,522,794Net Position:

Net investment in capital assets 41,087,905 21,284,487Restricted 9,289,713 10,362,221Unrestricted 89,138,644 82,954,421

Total Net Position 139,516,262$ 114,601,129$

Alvin Independent School District's Net Position

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Net position of $9,289,713 is restricted for federal and state programs, food service, and debt service. The remaining balance of unrestricted net position of $89,138,644 may be used to meet the District’s ongoing obligations to students and creditors. At the end of the current fiscal year, the District is able to report positive balances in all three categories of net position. The District's net position increased by $24,915,133 during the current fiscal year primarily due to an increase in state aid and property taxes revenues.

2014 2013

Program Revenues

Charges for services 5,663,041$ 5,223,410$ Operating grants 21,842,203 18,025,169

General RevenuesProperty taxes 76,079,560 69,807,423 State aid 122,790,907 85,077,386 Grants and contributions not restricted 2,984,489 1,503,832 Interest earnings 290,921 171,643 Other 851,913 720,667

Total Revenues 230,503,034 180,529,530

ExpensesInstruction 101,757,339 84,121,811 Instructional resources and media services 3,095,140 2,567,700 Curriculum and staff development 1,360,882 878,941 Instructional leadership 3,335,201 2,456,964 School leadership 9,124,317 6,883,810 Guidance, counseling, and evaluation services 5,377,089 4,193,897 Health services 1,324,532 1,162,180 Student transportation 8,528,836 7,037,459 Food service 10,543,386 8,613,383 Extracurricular activities 5,674,403 4,171,298 General administration 6,596,383 5,056,372 Plant, maintenance and operations 14,629,992 10,390,945 Security and monitoring services 1,737,701 1,414,771 Data processing services 5,294,507 4,555,413 Community services 326,154 292,866 Interest and fiscal charges on long-term debt 16,814,512 11,481,012 Facilities repair and maintenance 983,798 255,730 Payments related to shared services arrangements 3,519,612 2,885,736 Payments to Juvenile Justice Alternative Education Programs 15,700 14,800 Payments to Tax Increment Fund 5,548,417 5,412,702

Total Expenses 205,587,901 163,847,790 Change in Net Position 24,915,133 16,681,740 Beginning Net Position 114,601,129 97,919,389 Ending Net Position 139,516,262$ 114,601,129$

Alvin Independent School District's Changes in Net Position

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Governmental Activities increased the District’s net position by $24,915,133. Key elements of this increase are as follows:

Revenues are generated primarily from three sources. Grants and contributions program and general revenues totaling $24,826,692 represent 11% percent of total revenues, state aid totaling $122,790,907 represents 53 percent of total revenue and property taxes $76,079,560 represent 33 percent of total revenues. The remaining revenues $6,805,875 are generated from charges for services, investment earnings, and miscellaneous revenues. Higher tax revenues were primarily the result of an increase in the District’s assessed values and state aid increased revenue was due to additional student attendance. The primary functional expense of the District is instruction $101,757,339, which represents 50 percent of total expenses. Plant maintenance and operations $14,629,992 represents 7 percent of total expenses. The Interest and fiscal charges on long-term debt $16,814,512 represents 8 percent of total expenses. The remaining individual functional categories of expenses are each 6 percent or less of total expenses.

Financial Analysis of the Government's Funds As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds. The focus of the District’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the District’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a District's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the District’s governmental funds reported combined ending fund balances of $280,881,150, an increase of $172,235,452 in comparison with the prior year. The general fund is the chief operating fund of the District. At the end of the current fiscal year, unassigned fund balance of the general fund was $17,057,409, while total fund balance reached $76,684,067. As a measure of the general fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 11 percent of total general fund expenditures, while total fund balance represents 49 percent of that same amount. The fund balance of the District’s general fund increased by $4,572,321 during the current fiscal year primarily due from increased state aid and property tax revenues. The debt service fund has a total fund balance of $11,961,471, all of which is restricted for the payment of debt service. The net increase in the debt service fund balance during the current year totaled $3,024,102 due to an increase state aid and property tax revenues. The capital projects fund has a total fund balance of $186,886,046. The net increase in fund balance of $164,877,025, is primarily due to the issuance of construction bonds. The fund balance is restricted for future construction projects.

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The District’s proprietary fund financials statement provides detail information about the profitability of the print shop, health insurance and workers’ compensation and property and casualty insurance funds. The net change in assets of these funds are eliminated and allocated to the governmental expenses in the government-wide financial statements. General Fund Budgetary Highlights Over the course of the year, District personnel recommended, and the Board of Trustees approved, several revisions to the budgeted revenue and appropriations. Revisions to the revenue budget are necessary due to changes in estimates for local and state revenue based on updated information concerning student attendance and tax collections. Revisions to appropriations are necessary due to the increase in district growth, changes in staffing and spending needs and various long-term projects which are established based on the student growth. The District’s major budget amendments during the year are summarized as follows:

Fund balance was decreased by $8,600,000 for authorized projects voted upon by the citizens of Alvin ISD during the 2013 Bond Election.

Fund balance was decreased by $398,772 for a District Communication System. This system will allow for a more reliable communications which will provide enhanced safety and security of students and staff.

Fund balance was decreased by $500,000 for Career and Technology (CTE) audio video, curriculum equipment and furniture, fixture and equipment (FFE) upgrades at Alvin High School.

Fund balance was decreased by $11,300,000 with funds being transferred to a Capital Projects fund for bond projects originally approved by voters. This will result in not having to sell $11.3 million of the 2013 authorized bonds which taxpayers will see a net savings of $29.8 million over the life of the bonds.

Fund balance decreased by $959,715 for 55 acres of land which included 20 acres being donated. This land acquisition will be used for future school campus(es).

Capital Assets and Debt Administration Capital Assets - The District’s investment in capital assets for its governmental type activities as of June 30, 2014, amounts to $335,598,298 (net of accumulated depreciation). This investment in capital assets includes land, buildings and improvements, furniture and equipment and construction in progress. The total increase of $25,617,867 in the District’s investment in capital assets for the current fiscal year was 8 percent change. Major capital asset events during the current fiscal year included the following:

Begin construction of High School #3

Begin construction of Manvel Junior High School – re-build on new site

Begin designing and planning for Alvin Junior High School expansion and renovations

School bus and band equipment purchases

Instructional technology upgrades

District-wide communications upgrades

Safety and security vestibules

Band and choir uniforms

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Portable classrooms

CTE curriculum equipment

Land acquisition


Land 35,968,959$ 191,732$ -$ 36,160,691$ Construction in progress 5,164,161 22,364,802 (4,483,778) 23,045,185

Buildings and improvements 336,674,500 11,221,444 4,008,650 351,904,594 Furniture and equipment 29,468,641 3,474,401 (360,040) 32,583,002

407,276,261 37,252,379 (835,168) 443,693,472 Less accumulated depreciation for:

Buildings and improvements (81,155,353) (9,052,295) 475,130 (89,732,518) Furniture and equipment (16,140,477) (2,497,284) 275,105 (18,362,656)

(97,295,830) (11,549,579) 750,235 (108,095,174) Governmental Capital Assets 309,980,431$ 25,702,800$ (84,933)$ 335,598,298$

Alvin Independent School District's Capital Assets

Additional information on the District’s capital assets can be found in Note 4 on pages 42 through 43 of the notes to the financial statements. Long-term Debt - At the end of the current fiscal year, the District had $463,780,000 in bonded debt outstanding, an increase of $156,235,000 over the previous year, attributed to construction bonds issuance. The District’s bonds are sold with an “AAA” rating and are guaranteed through the Texas Permanent School Fund Guarantee Program or by a bond insurance policy. The underlying rating of “AA” from Fitch and the “Aa2” from Moody's Investors Service reflect the District’s growing and diverse tax base; favorable debt practices with sound capital planning necessary given the fast growing nature of the school district and satisfactory financial operations. Changes to long-term debt, for the fiscal year ended June 30, 2014, are as follows:


General obligation bonds 304,620,000$ 166,050,000$ (9,280,000)$ 461,390,000$ Bond issuance premiums 9,497,626 14,776,573 (920,225) 23,353,974 Maintenance tax notes 2,925,000 - (535,000) 2,390,000 Accrued compensated absences 1,350,989 219,239 (66,567) 1,503,661

318,393,615$ 181,045,812$ (10,801,792)$ 488,637,635$

Additional information on the District’s long-term liabilities can be found in Note 6 on pages 44 through 46 of the notes to the financial statements.

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Economic Factors and Next Year's Budgets and Tax Rates The District’s elected and appointed officials consider many factors when preparing the fiscal-year 2015 general fund budget. The adopted budget is based on the following significant assumptions:

The District’ current enrollment growth for the fall of 2014 passed the projected increase of 4.7%. Enrollment growth climbed to 5.1% which added 1,009 students to the start of the 2014 school year for a total of 20,818 students.

Five year enrollment projections predict that the District will have 5,171 more students with an enrollment of 25,989 students in the fall of 2019.

Ten year enrollment projections predict that the District will have 11,253 more students with an enrollment of 32,071 students in the fall of 2024.

Alvin ISD’s new housing will continue to be the strongest in the western portion of the district with the following campuses needed within the next ten years:

o Elementary Campuses = 7-8 additional o Jr. High School Campuses = 2-3 additional o High School Campuses = 1-2 additional

The State Comptroller’s Office reports show Texas’ unemployment rate has been at or below the national rate for 7 consecutive years.

The Federal Reserve Bank of Dallas reports that Texas remains a top state in job growth with a second quarter rate of 4.3% growth, 1.3% higher than the national average and the strongest growth rate in 9 years.

The Houston economy is benefiting from the energy boom with exports of $115 billion in goods in 2013 of which was refined petroleum and coal products per the Los Angeles Times.

According to our demographer, Templeton Demographics, Houston ranked number 6 in the top 10 cities for fast-growth companies, with 76 gat-growth companies based in the city.

Templeton Demographics also reported that in August, 2014, Houston issued 3,340 single-family housing permits. This is a 6.4% increase from August of 2013 and year-to-date multi-family permits are up 83.5% from the same period in 2013.

The Texas Comptroller’s office shows sales tax receipts increasing 2.1% for August 2013 over August 2012. Sales tax receipts have been increasing consecutively for over 3.5 years.

Tax rate for Tax Year 2014, fiscal year 2015 is $1.4170. The Maintenance and Operations portion is $1.040 and the Interest and Sinking portion is $.3770.

General Fund expenditures are currently budgeted to increase by $14,287,041 over last year’s approved budget. Major factors causing this increase include:

o Additional teaching and support positions throughout the District based upon the Weighted Average Salary Allotment (WASA) formula developed by AISD for increased enrollment. Includes salaries and benefits.

o 3% Cost of Living Adjustment o Opening of Dr. Red Duke Elementary – 15th elementary school o Increase in Health Insurance premiums o Campus and District Improvement plans

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General Fund revenues are currently budgeted to increase by $14,487,527 over last year’s approved budget.

Major factors causing the increase include:

o Increase in property taxes due to an increase in property values o Increase in state funding due to an increase in student enrollment.

Requests for Information – This financial report is designed to provide a general overview of the District’s finances for all those with an interest in the District's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the Business and Support Services, Alvin Independent School District, 301 E. House Street, Alvin, Texas, 77511.

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BASIC FINANCIAL STATEMENTS

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ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit A-1STATEMENT OF NET POSITION

June 30, 2014

Data Control Codes

Governmental Activities

Assets1110 Cash and temporary investments 273,339,777$ 1225 Property taxes receivables, net 3,770,046 1240 Due from other governments 35,705,239 1250 Accrued interest 126,419 1290 Other receivables, net 423,459 1300 Inventories 642,198 1410 Prepaid items 99,439

Capital assets not subject to depreciation:1510 Land 36,160,691 1580 Construction in progress 23,045,185

Capital assets net of depreciation:1520 Buildings and improvements, net 262,172,076 1530 Furniture and equipment, net 14,220,346 1910 Long-term investments 6,055,774 1000 Total Assets 655,760,649

Deferred Outflows of Resources

1700 Deferred charge on refunding 5,782,550 Total Deferred Outflows of Resources 5,782,550

Liabilities2110 Accounts payable 9,709,833 2140 Interest payable 7,015,869 2150 Payroll deductions and withholdings 1,292,335 2160 Accrued wages payable 11,153,213 2177 Due to others 3,180 2180 Due to other governments 1,447,457 2190 Due to student groups 309,058 2200 Accrued expenditures 2,458,357

Noncurrent Liabilities:2501 Due within one year 12,535,459 2502 Due in more than one year 476,102,176 2000 Total Liabilities 522,026,937

Net Position3200 Net investment in capital assets 41,087,905

Restricted for:3820 Federal and state programs 451,200 3840 Food service 3,141,963 3850 Debt service 5,696,550 3900 Unrestricted 89,138,644 3000 Total Net Position 139,516,262$


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ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit B-1STATEMENT OF ACTIVITIES


Data Control Codes Functions/Programs Expenses

Charges for Services

Operating Grants and

ContributionsGovernmental

ActivitiesGovernmental activities

11 Instruction 101,757,339$ 790,481$ 9,239,877$ (91,726,981)$ 12 Instructional resources and media

services 3,095,140 205,525 125,584 (2,764,031)

13 Curriculum and staff development 1,360,882 15,810 913,624 (431,448) 21 Instructional leadership 3,335,201 - 354,426 (2,980,775) 23 School leadership 9,124,317 - 689,454 (8,434,863) 31 Guidance, counseling, and

evaluation services 5,377,089 - 1,958,380 (3,418,709) 33 Health services 1,324,532 - 105,035 (1,219,497) 34 Student transportation 8,528,836 - 342,356 (8,186,480) 35 Food service 10,543,386 3,537,057 6,731,442 (274,887) 36 Extracurricular activities 5,674,403 823,834 173,312 (4,677,257) 41 General administration 6,596,383 - 392,602 (6,203,781) 51 Plant, maintenance and operations 14,629,992 274,524 548,354 (13,807,114) 52 Security and monitoring services 1,737,701 15,810 94,103 (1,627,788) 53 Data processing services 5,294,507 - 156,807 (5,137,700) 61 Community services 326,154 - 16,847 (309,307)

72Interest and fiscal charges on long-term debt 16,814,512 - - (16,814,512)

81 Facilities repair and maintenance 983,798 - - (983,798) 93 Payments related to shared

services arrangements 3,519,612 - - (3,519,612) 95 Payments to Juvenile Justice

Alternative Education Programs 15,700 - - (15,700) 97 Payments to Tax Increment Fund 5,548,417 - - (5,548,417)

TG Total governmental activities 205,587,901$ 5,663,041$ 21,842,203$ (178,082,657)

Data Control Codes

General revenues:Taxes:

MT Property taxes, levied for general purposes 59,540,947 DT Property taxes, levied for debt service 16,538,613 SF State-aid formula grants 122,790,907 GC Grants and contributions not restricted 2,984,489 IE Investment earnings 290,921 MI Miscellaneous 851,913 TR Total general revenues 202,997,790 CN Change in net position 24,915,133 NB Net position - beginning 114,601,129 NE Net position - ending 139,516,262$


Primary Government

Net (Expense) Revenue and

Changes in Net Position

Program Revenue

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GOVERNMENTAL FUNDS

Data Control Codes

General Fund

Debt Service

FundCapital

Projects Fund

Assets1110 Cash and temporary investments 51,571,022$ 11,722,221$ 193,944,133$

Receivables:1220 Property taxes - delinquent 4,051,855 966,360 - 1230 Allowance for uncollectible taxes (credit) (1,048,685) (199,484) - 1240 Receivables from other governments 34,157,253 185,151 - 1250 Accrued interest 64,785 - 59,908 1260 Due from other funds 927,971 62,391 - 1290 Other receivables 192,249 - - 1300 Inventories, at cost 529,633 - - 1410 Prepaid items 86,888 - - 1910 Long-term investments, at fair value 6,055,774 - - 1000 Total Assets 96,588,745$ 12,736,639$ 194,004,041$

Liabilities, Deferred Inflows, and Fund BalancesLiabilities:

2110 Accounts payable 1,986,972$ -$ 7,117,675$ 2140 Interest payable - 102,860 - 2150 Payroll deduction and withholdings payable 1,292,221 - - 2160 Accrued wages payable 10,741,751 - - 2170 Due to other funds 72,052 - 320 2180 Payable to other governments 1,422,096 24,220 - 2190 Due to student and employee groups 55,275 - - 2200 Accrued expenses 811,467 - - 2000 Total Liabilities 16,381,834 127,080 7,117,995

Deferred Inflows of Resources2600 Unavailable revenue - property taxes 2,575,369 648,088 - 2600 Unavailable revenue - SHARS 947,475 - -

Total Deferred Inflows of Resources 3,522,844 648,088 -

Fund Balances:Nonspendable:

3410 Nonspendable - inventories 529,633 - - 3430 Nonspendable - prepaid items 86,888 - -

Restricted:3450 Restricted - grant funds - - - 3470 Restricted - capital acquisitions and obligations - - 186,886,046 3480 Restricted - debt service - 11,961,471 -

Committed:3545 Committed - other 2,910,137 - -

Assigned:3590 Assigned - other 56,100,000 - -

Unassigned:3600 Unassigned 17,057,409 - - 3000 Total Fund Balances 76,684,067 11,961,471 186,886,046 4000 Total Liabilities, Deferred Inflows, and Fund Balances 96,588,745$ 12,736,639$ 194,004,041$

See Notes to Financial Statements.

June 30, 2014

BALANCE SHEET

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21

Exhibit C-1


Funds

Total Governmental

Funds

5,430,857$ 262,668,233$

- 5,018,215 - (1,248,169)

1,362,835 35,705,239 - 124,693

6,481 996,843 194,050 386,299 89,409 619,042 12,551 99,439

- 6,055,774 7,096,183$ 310,425,608$

404,049$ 9,508,696$ - 102,860 114 1,292,335

411,462 11,153,213 929,851 1,002,223

1,141 1,447,457 - 55,275 - 811,467

1,746,617 25,373,526

- 3,223,457 - 947,475 - 4,170,932

89,409 619,042 12,551 99,439

3,503,321 3,503,321

- 186,886,046 - 11,961,471

1,744,285 4,654,422

- 56,100,000

- 17,057,409 5,349,566 280,881,150 7,096,183$ 310,425,608$

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22

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23

ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit C-2RECONCILIATION OF BALANCE SHEET FOR GOVERNMENTAL FUNDS TO

STATEMENT OF NET POSITION

Data Control Codes

Total fund balance, governmental funds 280,881,150$

Amounts reported for governmental activities in the statement of net position (A-1) are different because:

Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental funds.

1 Capital assets at historical cost, net of accumulated depreciation, where applicable 335,553,283

2

Property taxes receivable have been levied and are due this year, but are not available soon enough to pay for the current period's expenditures, these property taxes and related penalty and interest amounts (net of allowance for uncollectible accounts). 3,223,457

3

School health and related services (Shars) reimbursements have been submitted and are due this year, but are not available soon enough to pay for the current period's expenditures. 947,475

Long-term liabilities, including bonds payable, are not due and payable in the current period, and therefore are not reported as liabilities in the funds. Long-term liabilities at year end consist of:

4 General obligation bonds (461,390,000) 5 Premiums on issuance (23,353,974) 6 Maintenance tax notes payable (2,390,000) 7 Accrued compensated absences (1,494,086)

8 Deferred loss on refunding 5,782,550

9 Accrued interest payable (6,913,009)

10 Addition of Internal Service fund net position 8,669,416

19 Total net position - governmental activities 139,516,262$


June 30, 2014

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ALVIN INDEPENDENT SCHOOL DISTRICTSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCES - GOVERNMENTAL FUNDSFor the Fiscal Year Ended June 30, 2014

Data Control Codes

General Fund

Debt Service Fund

Capital Projects Fund

Revenues

5700 Local, intermediate, and out-of-state 60,646,760$ 16,559,510$ 130,736$ 5800 State program revenues 121,549,732 9,203,953 - 5900 Federal program revenues 1,796,942 466,562 - 5020 Total Revenues 183,993,434 26,230,025 130,736


0011 Instruction 90,744,597 - 249,097 0012 Instruction resources and media services 2,504,676 - 148,872 0013 Curriculum and instructional staff development 427,740 - - 0021 Instructional leadership 3,132,552 - - 0023 School leadership 8,779,113 - 999 0031 Guidance, counseling and evaluation services 3,527,768 - - 0033 Health services 1,293,183 - 5,372 0034 Student transportation 9,284,861 - - 0035 Food services 23,051 - - 0036 Extracurricular activities 3,313,989 - - 0041 General administration 6,500,735 - - 0051 Plant maintenance and operations 13,784,274 - - 0052 Security and monitoring services 1,587,587 - 158,302 0053 Data processing services 3,623,074 - 1,326,694 0061 Community services 285,040 - -

Debt service:

0071 Principal on long-term debt 535,000 9,280,000 - 0072 Interest on long-term debt 116,943 13,660,635 - 0073 Bond issuance costs and fees - 1,275,369 1,750

Capital outlay:

0081 Facilities acquisition and construction 95,007 - 34,021,113 Intergovernmental:

0093 Payments related to shared services 3,519,612 - - 0095 Payments to Juvenile Justice Alt. Ed. Prgm. 15,700 - - 0097 Payments to tax increment fund 4,631,925 916,492 - 6030 Total Expenditures 157,726,427 25,132,496 35,912,199 1100 Excess (deficiency) of revenues over expenditures 26,267,007 1,097,529 (35,781,463)

Other Financing Sources (Uses):

7911 Capital-related debt issued (regular bonds) - - 166,050,000 7912 Sale of real or personal property 63,802 - - 7915 Transfers in - - 21,758,488 7916 Premium or discount on issuance of bonds - 1,926,573 12,850,000 8911 Transfers out (21,758,488) - - 7080 Total other financing sources and uses (21,694,686) 1,926,573 200,658,488 1200 Net change in fund balances 4,572,321 3,024,102 164,877,025

0100 Fund Balance - July 1 (Beginning) 72,111,746 8,937,369 22,009,021

3000 Fund Balance - June 30 (Ending) 76,684,067$ 11,961,471$ 186,886,046$


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25

Exhibit C-3


Funds

Total Governmental

Funds

5,582,518$ 82,919,524$ 736,082 131,489,767

12,916,853 15,180,357 19,235,453 229,589,648

5,193,843 96,187,537 222,179 2,875,727 929,603 1,357,343 184,575 3,317,127 154,964 8,935,076

1,751,045 5,278,813 3 1,298,558

- 9,284,861 10,418,565 10,441,616

584,574 3,898,563 10,820 6,511,555

- 13,784,274 24,393 1,770,282 1,000 4,950,768

- 285,040

- 9,815,000 - 13,777,578 - 1,277,119

- 34,116,120

- 3,519,612 - 15,700 - 5,548,417

19,475,564 238,246,686 (240,111) (8,657,038)

- 166,050,000 2,115 65,917

- 21,758,488 - 14,776,573 - (21,758,488)

2,115 180,892,490 (237,996) 172,235,452

5,587,562 108,645,698

5,349,566$ 280,881,150$

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ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit C-4


Data Control Codes

Net change in fund balances - total governmental funds (from C-3) 172,235,452$

Amounts reported for governmental activities in the statement of activities (B-1) are different because:

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense.

1 Governmental funds report capital outlays 37,203,366 2 Governmental funds depreciation expense (11,544,848)

3 Governmental funds report the entire net sales price (proceeds) from sale of an asset as revenue because it provides current financial resources. In contrast, the Statement of Activities reports only the gain or (loss) on the sale of the assets. Thus, the change in net position differs from the change in fund balance by the cost of the asset sold. (51,009)

4 Property tax revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. (77,290)

5 School health and related services in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 947,475

6 Premium from the issuance of long-term debt is reported as an other financing source in the governmental funds. In the government-wide financial statement, proceeds are treated as increase in long-term liabilities (14,776,573)

7 Repayment of bond principal is an expenditure in the governmental fund, but the repayment reduces long-term liabilities in the statement of net position. 9,815,000

8 Proceeds from issuance of long-term debt is reported as an other financing source in the governmental funds. In the government-wide financial statements, proceeds are treated as an increase in long-term liabilities. (166,050,000)

Some expenses reported in the statement of activities do not require the use of current financial resources and these are not reported as expenditures in governmental funds:

9 Increase in interest payable not recognized in fund statements (2,090,272)10 Increase in long-term portion of accrued compensated absences (152,448) 11 Amortization of bond premiums and discounts. 920,22512 Amortization of deferred loss on refunding (589,768)

13 Internal service funds are used by management to charge the costs of certain activities, such as insurance and telecommunications, to individual funds. The net revenue (expense) of the internal service funds is reported with governmental funds (see D-2). (874,177)

Change in net position of governmental activities (see B-1) 24,915,133$


RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR GOVERNMENTAL FUNDS TO THE

STATEMENT OF ACTIVITIES

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ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit D-1STATEMENT OF NET POSITION

PROPRIETARY FUNDS

June 30, 2014

Data Control Codes




1110-75 Cash and cash equivalents 10,671,544$ Receivables:

1250 Accrued interest receivable 1,726 1260 Due from other funds 2,200 1290 Other receivables 37,160 1300 Inventories, at cost 23,156

Total Current Assets 10,735,786

Non-current Assets:

Land, Buildings and Equipment:1540 Furniture and equipment 61,532 1573 Accumulated depreciation - Equipment (16,517)

Total Non-current Assets 45,015 1000 Total Assets 10,780,801

Liabilities and Net PositionCurrent Liabilities:

2110 Accounts payable 454,920 2200 Accrued expenses 1,656,465

Total Current Liabilities 2,111,385 2000 Total Liabilities 2,111,385

Net Position:

3200 Investments in capital assets 45,015 3900 Unrestricted net position 8,624,401 3000 Total Net Position 8,669,416$


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ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit D-2STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION

PROPRIETARY FUNDS


Data Control Codes



Operating Revenues5749 Miscellaneous revenue from local sources 3,723$ 5754 Interfund services provided and used 17,483,231 5020 Total Operating Revenues 17,486,954

Operating Expenses6100 Payroll costs 134,845 6200 Purchased and contracted services 120,814 6300 Supplies and materials 51,773 6400 Claims expense and other operating expenses 18,026,252 6449 Depreciation 4,731 6030 Total Operating Expenses 18,338,415

1200 Operating Income (Loss) (851,461)

Non-Operating Revenues (Expenses)7020 Investment earnings 11,208 8951 Loss on sale of real and personal property (33,924)

Total Non-operating Revenues (Expenses) (22,716)

Income (Loss) before Transfers (874,177)

Transfers7915 Transfers in 4,255,312 8911 Transfers out (4,255,312)

Total Transfers - 1200 Change in Net Position (874,177)

0100 Net Position - July 1 (Beginning) 9,543,593

3300 Net Position - June 30 (Ending) 8,669,416$


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ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit D-3

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS




Cash Flows from Operating Activities:

Cash receipts from customers and with other funds 17,484,754$ Cash payments to suppliers for goods and services (18,053,284) Cash payments to employees (134,621)

Net Cash Provided by (Used for) Operating Activities (703,151)

Cash Flows from Non-Capital Financing Activities:

Advances from other funds 4,255,312 Advances to other funds (4,255,312)

Net Cash Provided by (Used for) Non-Capital Financing Activities -

Cash Flows from Capital and Related Financing Activities:Acquisition of capital assets (48,273)

Net Cash Provided by (Used for) Capital and Related Financing Activities (48,273)

Cash Flows from Investing Activities:

Interest on investments 9,482 Net Cash Provided by Investing Activities 9,482

Net Increase in Cash and Cash Equivalents (741,942)Cash and Cash Equivalents at Beginning of Year 11,413,486 Cash and Cash Equivalents at End of Year 10,671,544$

Reconciliation to Balance SheetCash and Cash Equivalents Per Cash Flow 10,671,544$

Cash and Cash Equivalents per Balance Sheet 10,671,544$


Provided by Operating Activities:Operating Income (Loss) (851,461)$ Adjustments to Reconcile Operating Income to Net Cash

Provided by Operating Activities:Depreciation 4,731

Change in Assets and Liabilities:Decrease (increase) in Interfund Receivables (2,200) Decrease (increase) in Inventories (2,104) Increase (decrease) in Accounts Payable (73,329) Increase (decrease) in Payables to Other Governments (265,408) Increase (decrease) in Accrued Expenses 486,620

Net Cash Provided by (Used for) Operating Activities (703,151)$


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ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit E-1STATEMENT OF FIDUCIARY ASSETS AND LIABILITIESJune 30, 2014

Data Control Codes

Student Activity Fund

Assets1110 Cash and cash equivalents 701,757$

Receivables:1260 Due from other funds 3,308

Total Assets 705,065$

Liabilities2110 Accounts payable 25,955$ 2170 Due to other funds 128 2190 Due to others 678,982 2000 Total Liabilities $ 705,065


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ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit F-1 NOTES TO THE FINANCIAL STATEMENTS

31

Note 1 - Summary of Significant Accounting Policies Reporting Entity The Alvin Independent School District (the “District”) is governed by a seven-member Board of Trustees (the “Board”), which has governance responsibilities over all activities related to public elementary and secondary education within the District. Because members of the Board are elected by the public; have authority to make decisions; appoint management and significantly influence operations; and have primary accountability for fiscal matters; the District is not included in any other governmental reporting entity. The accompanying financial statements present the District. There are no component units, entities for which the District is considered to be financially accountable, included within the reporting entity. The District receives funding from local, state and federal government sources and must comply with the requirements of these funding source entities. Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the District. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities normally are supported by taxes and intergovernmental revenues. The statement of activities demonstrates the degree to which the direct expenses of a given function or segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to students or users who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The fiduciary fund financial statements reflect the District’s agency fund, reporting only assets and liabilities. The agency fund has no measurement focus, but utilizes the accrual basis of accounting for reporting it assets and liabilities.

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Note 1 - Summary of Significant Accounting Policies (continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modified 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 District 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, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Grant revenues and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the District. The District reports the following major governmental funds:

The general fund is the District's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

The debt service fund accounts for the resources accumulated and payments made for principal and

interest on long-term general obligation debt of governmental funds. The capital projects fund is used to account for proceeds from sales of bonds and other revenues to

be used for authorized construction and other capital asset acquisitions. Additionally, the District reports the following fund types:

The special revenue funds are used to account for resources restricted to for specific purposes by a grantor. Federal and state financial assistance generally is accounted for in a special revenue fund. Generally, unused balances are returned to the grantor at the close of the specified project periods. With respect to the food service and campus activity funds, funds are rolled over from year to year for use in the program.

The internal service funds are used to account for the operations of the District’s printing shop, health, workers’ compensation, property & casualty and health and workers’ compensation as self-insurance funds, which provides services to other departments inside the District on a cost reimbursement basis. The agency fund is used to account for assets held by the District as an agent for student organizations. The fund is custodial in nature (assets equal liabilities) and does not involve measurement of results of operation. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.

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Note 1 - Summary of Significant Accounting Policies (continued) Amounts reported as program revenues include 1) charges to students or users for goods, services, or privileges provided and 2) operating grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes and investment income. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the District's internal service fund are health and worker’s compensation insurance premiums to participate in the health and worker’s compensation insurance programs. Operating expenses for the internal service fund include the cost of services and administrative expenses. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the District's policy to use restricted resources first, then unrestricted resources as they are needed. Deposits and Investments The District's cash and cash equivalents are considered to be cash on hand, demand deposits, certificates of deposit, investment pools and short-term investments with original maturities of three months or less from the date of acquisition. Investments for the District are reported at fair value based on quoted market prices at June 30, 2014. The investment pools operate in accordance with appropriate state laws and regulations. The reported value of the pools is the same as the fair value of the pool shares. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Property tax receivables include unpaid property taxes at year-end are shown net of an allowance for uncollectibles. The property tax receivable allowance is based on historical experience in collecting taxes. Revenues from property taxes are recognized when levied to the extent they are available. The District considers property taxes as available if they are collected within 60 days of the end of the current fiscal period. However, not all outstanding property taxes are expected to be collected within one year of the date of the financial statements. Property values are determined by the Brazoria County Appraisal District as of January 1 of each year. Prior to September 1 of each year, the District must adopt its annual budget and as soon thereafter as practicable, shall adopt a tax rate thus creating the tax levy. Property taxes for the current calendar year are levied on approximately October 1 of each year and are payable by January 31 of the following year. Property tax receivables are recorded as of the date levied. Unpaid taxes become delinquent on February 1 and a tax lien on real property is created as of July 1 of each year.

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Note 1 - Summary of Significant Accounting Policies (continued) Inventories Inventories consisting of supplies and materials are valued at weighted average cost and they include maintenance, transportation, office and instructional supplies, and food service commodities. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Food service commodity inventory is recorded at fair market value on the date received. Commodities are recognized as revenues in the period received when all the eligibility requirements are met. Commodity inventory items are recorded as expenditures when distributed to user locations. A portion of fund balance is non-spendable to reflect minimum inventory quantities considered necessary for the District’s continuing operations. Capital Assets Capital assets, which include land, construction in progress, buildings and improvements and furniture and equipment, are reported in the governmental column in the government-wide financial statements. Capital assets are defined by the District as assets with an initial, individual cost that equals or exceeds $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Buildings and improvements, and furniture and equipment of the District are depreciated using the straight-line method over the following estimated useful lives:

Assets YearsBuildings and improvements 20 - 40Furniture and equipment 5 - 15

Compensated Absences The State of Texas has created a minimum sick leave program consisting of five days per year sick leave with no limit on accumulation and transferability among districts for every eligible employee leave regularly employed in Texas public schools. Each district’s local Board of Education is required to establish a sick leave plan. Local school districts may provide additional sick leave beyond the state minimum. The District maintains a policy allowing employees meeting established requirements to be compensated for unused sick leave at retirement. Annual vacation time is granted to nonprofessional hourly employees; however, any unused vacation time lapses at the end of each fiscal year. There are no other compensated absences allowed under the District’s personnel policies.

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Note 1 - Summary of Significant Accounting Policies (continued) Long-term Obligations In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the governmental activities column. Bond premiums and discounts are deferred and amortized over the life of the bonds using the bonds outstanding method, which approximates the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed in the period incurred. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. The current requirements for general obligation bonds principal and interest expenditures are accounted for in the debt service fund. Maintenance tax notes principal and interest expenditures are accounted for in the general fund. Deferred outflows/inflows of resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The District only has one item that qualifies for reporting in this category. It is the deferred charge on refunding reported in the government-wide statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resource, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The District has two type of items, which arises only under a modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenue from property taxes and school health and related services (Shars). These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. Net Position and Fund Balance Net position on the Statement of Net Position include the following:

Net investment in capital assets – the component of net position that reports capital assets less both the accumulated depreciation and the outstanding balance of debt and is directly attributable to the acquisition, construction, or improvement of these capital assets.

Restricted for federal and state programs – the component of net position that reports the difference between assets and liabilities related to federal and state programs that consist of assets with constraints placed on their use by granting agencies.

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Note 1 - Summary of Significant Accounting Policies (continued)

Restricted for debt service – the component of net position that reports the difference between assets and liabilities adjusted on a government-wide basis that consists of assets with constraints placed on their use by the bond covenants.

Unrestricted net position – the difference between the assets and liabilities that are not reported in net position net investment in capital assets, or restricted net position.

Net position flow assumption - Sometimes the District will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted - net position and unrestricted -net position in the government-wide statements, a flow assumption must be made about the order in which the resources are considered to be applied.

In the fund financial statements, governmental funds report fund balance as either a non-spendable, fund balance or a spendable fund balance.

Nonspendable fund balance – amounts that are not in spendable form or are required to be maintained intact. As such, then inventory and prepaid items have been properly classified in the Governmental Fund Balance Sheet (Exhibit C-1).

Restricted fund balance – amounts that can be spent only for specific purposes because of local, state or federal laws, or externally imposed conditions by grantors or creditors.

Committed fund balance – amounts constrained to specific purposes by the District itself, using its highest level of decision-making authority (i.e., Board of Trustees). To be reposted as committed, amounts cannot be used for any other purposes unless the District takes the same highest level of action to remove or change the constraint. The District establishes (and modifies or rescinds) fund balance commitments by passage of a resolution, A fund balance commitment is further indicated in the budget document as a commitment of the fund. See Note 16 for detailed information.

Assigned fund balance – amounts the District intends to use for a specific purpose. The District did not choose to delegate assignment authority.

Unassigned fund balance – amounts that are available for any purpose. Positive amounts are reported only in the general fund.

When expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the District considers restricted funds to have been spent first. The District has adopted a policy of spending and availability of fund balance shall be to reduce funds from the listed areas in the following order: Restricted, committed, assigned and unassigned. Negative amounts shall not be reported for restricted, committed or assigned funds. The District policy is to target a yearly unassigned general fund balance between 17 percent (60 days) and 25 percent (90 days) of total operating expenditures.

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Note 1 - Summary of Significant Accounting Policies (continued) Data Control Codes The Data Control Codes refer to the account code structure prescribed by the Texas Education Agency (TEA) in the Financial Accountability System Resource Guide. TEA requires school districts 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. Use of Estimates The presentation of financial statements, in conformity with generally accepted accounting principles requires, management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.

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Note 2 - Deposits and Investments The District’s cash and investments, at June 30, 2014, are shown below:

Cash and Deposits

External Investment

PoolsCommercial

Paper

Money Market

Mutual Fund & Certificate

of DepositMunicipal

Bonds Total

Governmental FundsGeneral Fund 8,851,862$ 18,274,583$ 22,046,644$ 3,398,607$ 5,055,100$ 57,626,796$ Debt Service Fund 90,785 11,631,436 - - - 11,722,221 Capital Projects Fund 630,649 126,607,621 53,155,273 13,550,590 - 193,944,133 Non-major Funds 2,084,840 3,346,017 - - - 5,430,857

11,658,136 159,859,657 75,201,917 16,949,197 5,055,100 268,724,007

Internal Service Funds 1,613,362 9,058,182 - - - 10,671,544

Total Government Wide Statements 13,271,498 168,917,839 75,201,917 16,949,197 5,055,100 279,395,551

Fiduciary Funds 701,757 - - - - 701,757

Total Cash and Investments 13,973,255$ 168,917,839$ 75,201,917$ 16,949,197$ 5,055,100$ 280,097,308$

Cash Deposits The District's funds are required to be deposited and invested under the terms of a depository contract pursuant to the Texas School Depository Act. The depository bank pledges securities which comply with state law and these securities are held for safekeeping and trust with the District's and the depository banks' agent bank. The pledged securities are approved by the Texas Education Agency and shall be in an amount sufficient to protect District 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. Investments The District’s investment policy is in accordance with the Public Funds Investment Act (Chapter 2256, Texas Government Code), the Public Funds Collateral Act, and federal and state laws. The District further limits its investments to obligations of the U.S. Treasury or the State of Texas, certain U.S. Agencies, certificates of deposit, collateralized mortgage obligations, no-load money market mutual funds, certain commercial paper, certain municipal securities, repurchase agreements, or investment pools. For fiscal year 2014, the District invested in U.S. Government Agency securities, the State of Texas (“TexPool”), TEXAS Term/TEXAS Daily, Texas CLASS and Texas Association of School Board’s Lone Star Investment Pool. TexPool, Lone Star, TEXAS Term/TEXAS Daily and Texas CLASS operate in a manner consistent with the SEC’s Rule 2a-7 of the Investment Company Act of 1940. As such, TexPool, Lone Star, TEXAS Term/TEXAS Daily and Texas CLASS use amortized cost to report net position and share prices, since those amounts approximate fair value. The Texas State Comptroller of Public Accounts exercises oversight responsibility over TexPool. Federated Investors manage the daily operations of the pool under a contract with the Comptroller. Lone Star is a Texas public investment pool sponsored by the Texas Association of School Boards (TASB) for investment of funds by state and local government entities, primarily local school districts. TASB has entered into an agreement with First Public, LLC as administrator of the pool.

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Note 2 - Deposits and Investments (continued) TEXAS Term/TEXAS Daily is a local government investment pool created by Texas local governments to provide investment programs tailored to the needs of local governments. PFM Asset Management LLC acts as the Investment adviser/administrator of the pool. The program administrator is Cutwater Investor Services Corp. There is no regulatory oversight by the State of Texas over TEXAS Term / TEXAS Daily, Texas CLASS, or Lone Star. Investments with Merrill Lynch are money markets mutual funds with the underlying investments primarily invested in bond mutual funds. At year-end, the District’s investments balances, weighted average maturity and credit quality ratings of these investments were as follows:

Fair Weighted S & P CreditMarket Average QualityValue Maturity (Days) Ratings


Lone Star 375,688$ 56 AAATexas CLASS 37,652,933 50 AAAmTexas Daily 45,219,266 47 AAAmTexas Term - CP Pool 78,000,000 95 AAAfTexas Term - CD Program 992,000 47 AAAmTexPool 6,677,952 51 AAAm

Total 168,917,839 Commercial Paper:

Abbey Natl N America 4,995,219 9 A-1BNP Paribas Finance 14,985,900 27 A-1BNP Paribas Finance 9,979,066 29 A-1Credit Aricole North America 1,997,387 4 A-1Credit Suisse NY 8,193,827 12 A-1Deutsche Bank 4,993,813 10 A-1ING (US) Funding 9,996,810 9 A-1Macquarie Bank 4,995,407 9 A-1Macquarie Bank 4,999,611 2 A-1Natixix US Fin 1,542,713 4 A-1Natixix US Fin 3,527,868 8 A-1Wells Fargo Co 4,994,296 13 A-1

Total 75,201,917 Monet Market and Certificate of Deposit:

Money Market Mutual Fund 15,948,523 1 Not ratedCertificate of Deposit 1,000,674 390 Not rated

Total 16,949,197

Municipal Bond 5,055,100 230 AAA

Total Investments 266,124,053$

The District generally holds all Municipal bonds, Certificate of Deposits and Commercial Paper to maturity date. The District did not purchase any derivative investment products during the current year.

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Note 2 - Deposits and Investments (continued) Interest Rate Risk Interest rate risk is the risk that changes in interest rates may adversely affect the value of the investments. The District’s investment policy limits the maturities of investments and prohibits any investment for speculative gains. The District manages its exposure to declines in fair values by limiting the weighted average maturity of its investment portfolio to less than 365 days. At June 30, 2014 the District’s exposure to interest rate risk as measured by the maturities by investment type is summarized below:

Fair Market Less than 1 to 5

Value 1 Year Years

Local Government Investment Pools 168,917,839$ 168,917,839$ -$ Commercial Paper 75,201,917 75,201,917 - Money Market Mutual Fund 15,948,523 15,948,523 - Certificate of Deposit 1,000,674 - 1,000,674 Merrill Lynch 5,055,100 - 5,055,100

266,124,053$ 260,068,279$ 6,055,774$

The District recognizes that investment risk can result from market price changes. Investment officers are expected to display prudence, discretion, and intelligence in the selection of securities, as a way to minimize risk. Investments of the District shall be selected in a manner that seeks to ensure the preservation of capital in the overall portfolio. Credit Risk State law and the District’s investment policy limits investments in all categories to top ratings issued by nationally recognized statistical rating organizations.

Custodial Credit Risk The investments of the District shall be held by an independent third party with whom the District has a current custodial agreement. The District shall retain clearly marked receipts providing proof of the District’s ownership. The District may delegate to an investment pool the authority to hold legal title a custodian of investments purchased with the District funds. The District’s funds on deposit with the depository bank were either fully insured by the Federal Deposit Insurance Corporation or collateralized with securities held by the District or its agent and listing the District as owner. At June 30, 2014, the carrying value of the District’s deposits was $13,973,255 and the bank balance was $17,956,491. All District cash deposits at the depository bank were covered at all times by pledge securities held as collateral at a third party bank. All investments are made in the name of the Alvin Independent School District. All investments were purchased with the delivery versus payment method and are recorded at the District’s name on the Federal Reserve’s book entry system and confirmed to the District via safekeeping receipt maintained on the books of the depository banks safekeeping department.

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Note 2 - Deposits and Investments (continued) Concentration of Credit Risk The District’s investment policy requires the investment portfolio to be diversified in terms of investment instruments, maturity scheduling, and financial institutions in order to reduce the risk of loss resulting from over-concentration of assets in a specific class of investments, specific maturity, or specific issuer. Investments with concentrations of over five percent of the total portfolio at June 30, 2014 consisted of the following:

Fair Market PercentageValue of Portfolio


Texas CLASS 37,652,933$ 14.15%Texas Daily 45,219,266 16.99%Texas Term - CP Pool 78,000,000 29.31%

Commercial Paper: BNP Paribas Finance 14,985,900 5.63%

Money Market Mutual Fund 15,948,523 5.99%

Market values of Municipal bonds and Commercial Paper are based on quoted market values. The investments are reported by the District at fair value in accordance with Governmental Accounting Standards. The amount of increase in the fair value of investments for the fiscal year ended June 30, 2014 is included in investment income as follows:

Investment earnings 253,105$ Net increase in investment values 37,816 Total investment earnings 290,921$

Note 3 - Receivables Receivables as of year-end for the District's individual major and non-major funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows:

General Fund

Debt Service

Fund

Capital Projects

Fund


Funds

Internal Service Funds Total

Property Taxes 4,051,855$ 966,360$ -$ -$ -$ 5,018,215$ Due from other governments 34,157,253 185,151 - 1,362,835 - 35,705,239 Accrued Interest 64,785 - 59,908 - 1,726 126,419 Other 192,249 - - 194,050 37,160 423,459 Gross Receivables 38,466,142 1,151,511 59,908 1,556,885 38,886 41,273,332 Less allowance for doubtful

accounts (1,048,685) (199,484) - - - (1,248,169) Net Total Receivables 37,417,457$ 952,027$ 59,908$ 1,556,885$ 38,886$ 40,025,163$

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Note 3 - Receivables (continued) Governmental funds report unearned revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period or in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the District had no unearned revenue to report.

Note 4 - Capital Assets The District’s capital asset activity for the fiscal year ended June 30, 2014 is as follows:

Balance Retirements BalanceJune 30, 2013 Additions and Transfers June 30, 2014

Capital assets, not being depreciatedLand 35,968,959$ 191,732$ -$ 36,160,691$ Construction in progress 5,164,161 22,364,802 (4,483,778) 23,045,185

Total Capital assets, not being 41,133,120 22,556,534 (4,483,778) 59,205,876 Capital assets, being depreciated

Buildings and improvements 336,674,500 11,221,444 4,008,650 351,904,594 Furniture and equipment 29,386,481 3,425,388 (290,399) 32,521,470 Media center equipment 82,160 49,013 (69,641) 61,532

Total capital assets, being depreciated 366,143,141 14,695,845 3,648,610 384,487,596 Less accumulated depreciation for:

Buildings and improvements (81,155,353) (9,052,295) 475,130 (89,732,518) Furniture and equipment (16,092,974) (2,492,553) 239,388 (18,346,139) Media center equipment (47,503) (4,731) 35,717 (16,517)

Total accumulated depreciation (97,295,830) (11,549,579) 750,235 (108,095,174) Governmental capital assets 309,980,431$ 25,702,800$ (84,933)$ 335,598,298$

Depreciation expense was charged to functions/programs of the District as follows:

Function Depreciation

Expense

Instruction 5,350,909$ Instructional resources and media services 208,899 Curriculum and staff development 3,858 School leadership 131,513 Guidance, counseling and evaluation services 68,733 Health services 17,322 Student transportation 1,354,281 Food Services 599,906 Extracurricular activities 1,818,804 General administration 106,526 Plant maintenance and operations 1,132,958 Security and monitoring services 115,304 Data processing services 602,591 Community services 37,975

11,549,579$

Internal service fund capital assets, net of depreciation, totaled $45,015.

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Note 4 - Capital Assets (continued) Construction Commitments The District has active construction projects as of June 30, 2014. The projects include the construction and equipment of school facilities. At year-end, the District's commitments with contractors are as follows:

Project

Approved Construction

BudgetConstruction in Progress

Remaining Commitment

Fiber Project by TechnologyInterfacing Co. of Texas Inc 309,093$ 184,546$ 124,547$ Interfacing Co. of Texas Inc 245,683 122,842 122,841

Shadow Creek High School - Gamma Construction Co 7,037,956 5,527,530 1,510,426 Shadow Creek Gamma Construction Co 10,000 10,000 - Shadow Creek High School- SHW Group 2,090,464 1,370,512 719,952 Shadow Creek High School SHW Group 3,376,394 3,376,394 - Shadow Creek HS-SHW Group 25,000 1,545 23,455 Other Consulting Shadow Creek 48,509 48,509 - Alvin JH Renovation-Stewart Builders 950,317 202,398 747,919 SBWV Architects AJH Renovation 25,000 2,936 22,064 SBWV Architects AJH Renovation 877,000 303,375 573,625 SBWV Architects AJH Renovation 150,000 150,000 - Freddy Gormley/Gormley Survey 15,000 15,000 - Other AJH Renovation 3,466 3,466 - Manvel JH Replacemnt- SHW Group 255,000 26,722 228,278 Manvel JH Replacemnt- Durotech Inc 28,604,376 10,398,722 18,205,654 Terracon Consultants 60,000 40,817 19,183 MJH Replace SHW 1,001,384 1,001,384 - Durotech 50,000 50,000 - Other MJH Replacement 50,185 50,185 - Commercial Wireless Solutions 322,673 158,302 164,371

45,507,500$ 23,045,185$ 22,462,315$

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Note 5 - Interfund Receivables, Payables, and Transfers Interfund balances consist of short-term lending/borrowing arrangements that result primarily from payroll, warehouse ordering and other regularly occurring charges that are paid by the general fund and then charged back to the appropriate other fund. Additionally, some lending/borrowing may occur between two or more non-major governmental funds. The composition of interfund balances as of June 30, 2014, is as follows:

Interfund Receivable

Interfund Payable

General Fund 927,971$ 72,052$ Debt Service Fund 62,391 - Capital Projects Fund - 320 Nonmajor Governmental Funds 6,481 929,851 Internal Service Funds 2,200 - Trust and Agency Funds 3,308 128

1,002,351$ 1,002,351$

Interfund transfers are defined as “flows of assets without equivalent flow of assets in return and without a requirement for repayment.” The following is a schedule of the District’s transfers for the fiscal year ended June 30, 2014.

Transfer Out Transfer In AmountGeneral Fund Capital Projects Fund 21,758,488$ Health Insurance Fund Health and Workers'Compensation Fund 117,173 Workers Compensation Self-Insurance Health and Workers'Compensation Fund 4,138,139

26,013,800$

Transfers were made from the General Fund to Capital Projects Fund for ongoing construction projects and Internal services funds transfers resulted in the closing of Health and Workers Compensation funds and combining them into one Health and Workers’ Compensation fund. Note 6 - Long-term Liabilities Changes in Long-term Liabilities Long-term liability activity for the fiscal year ended June 30, 2014, was as follows:

Balance June 30, 2013 Additions Retirements

Balance June 30, 2014

Due Within One Year

General obligation bonds 304,620,000$ 166,050,000$ (9,280,000)$ 461,390,000$ 11,890,000$ Bond issuance premiums 9,497,626 14,776,573 (920,225) 23,353,974 - Maintenance tax notes 2,925,000 - (535,000) 2,390,000 560,000 Accrued compensated absences 1,350,989 219,239 (66,567) 1,503,661 85,459

318,393,615$ 181,045,812$ (10,801,792)$ 488,637,635$ 12,535,459$

DRAFT

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Note 6 - Long-term Liabilities (continued) General Obligation Bonds The District issues general obligation bonds to provide funds for the acquisition and construction of school buildings and technology. General obligation bonds are direct obligations and pledge the full faith and credit of the District. General Obligation bonds are paid from the Debt Service Fund and funded from future property tax revenues. In January 2014, the District issued $65,050,000 of Unlimited Tax Schoolhouse Bonds, Series 2014A and $101,000,000 of Variable Rate Unlimited Tax Schoolhouse Bonds, Series 2014B. Interest rates for the 2014A bonds ranged from 2.00% to 5.00% and the 2014B bonds interest rate was 4.00%. The bonds will be used to provide funds for (i) the construction, acquisition and equipment of school building in the District, the purchase of necessary sites for school building in the District and the purchase of new school buses, and (ii) to pay costs incurred in the issuance of the Bonds. Build America Bonds provide a direct reimbursement of 35 percent of the interest paid on the bonds. The District received reimbursement totaling $466,562 during the fiscal year. General obligation bonds currently outstanding are as follows:

Issue



Debt Outstanding

Unlimited Tax Schoolhouse Bonds, Series 2001B 13,865,000$ 3.875% to 4.25% 2025 6,580,000$ Unlimited Tax Schoolhouse Bonds, Series 2004A 34,100,000 3.25% to 5.25% 2027 7,100,000Unlimited Tax Adjustable Rate Bonds, Series 2004B 22,500,000 4.50% to 5.00% 2030 22,500,000Unlimited Tax Schoolhouse and Refunding Bonds, Series 2005 61,555,000 3.25% to 5.00% 2030 22,380,000Unlimited Tax School Building Bonds, Series 2006 71,990,000 4.00% to 5.50% 2033 64,090,000Unlimited Tax Schoolhouse and Refunding Bonds, Series 2007 79,655,000 4.00% to 5.00% 2033 71,630,000Unlimited Tax Schoolhouse and Refunding Bonds, Series 2007 6,280,000 4.25% to 4.375% 2025 6,280,000Unlimited Tax Refunding Bonds, Series 2010 22,195,000 2.00% to 4.00% 2025 20,635,000Unlimited Tax Schoolhouse Bonds, Series 2010A 11,330,000 3.00% to 5.00% 2020 7,265,000Unlimited Tax Schoolhouse Bonds, Taxable Series 2010B 29,500,000 3.78% to 5.09% 2035 29,500,000Unlimited Tax Refunding Bonds, Series 2012 37,380,000 3.00% to 5.00% 2027 37,380,000Unlimited Tax Schoolhouse Bonds, Series 2014A 65,050,000 2.00% to 5.00% 2030 65,050,000

34,470,000 4.00% 2039 34,470,000

33,145,000 4.00% 2036 33,145,000

33,385,000 4.00% 2033 33,385,000556,400,000$ 461,390,000$

Variable Rate Unlimited Tax Schoolhouse Bonds, Series 2014B (1 Year Put)Variable Rate Unlimited Tax Schoolhouse Bonds, Series 2014B (3 Year Put)Variable Rate Unlimited Tax Schoolhouse Bonds, Series 2014B (5 Year Put)

Annual debt service requirements to maturity for general obligation bonds are as follows:

Year Ending Principal Interest Totals2015 11,890,000$ 18,662,435$ 30,552,435$ 2016 10,980,000 18,403,340 29,383,340 2017 12,950,000 18,288,516 31,238,516 2018 15,590,000 17,929,941 33,519,941 2019 16,340,000 17,377,902 33,717,902

2020 - 2024 92,225,000 77,265,561 169,490,561 2025 - 2029 115,555,000 54,942,482 170,497,482 2030 - 2034 126,125,000 26,851,794 152,976,794 2035 - 2039 59,735,000 7,006,872 66,741,872

461,390,000$ 256,728,843$ 718,118,843$

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Note 6 - Long-term Liabilities (continued) Maintenance Tax Notes and Contractual Obligations Maintenance Tax Notes were issued to upgrade the District’s HVAC, lighting and controls. Maintenance Tax Notes are paid through the General Fund from future property tax revenues. Maintenance Tax Notes currently outstanding are as follows:

Notes and Contractual Obligations



Debt Outstanding

Maintenance Tax Notes, Series 2003 7,200,000$ 3.96% 2018 2,390,000$ 7,200,000$ 2,390,000$

Annual requirements to amortize the Maintenance Tax Notes and Contractual Obligations outstanding as of June 30, 2014, follow:

Year Ending Principal Interest Totals2015 560,000$ 95,600$ 655,600$ 2016 585,000 73,200 658,2002017 610,000 49,800 659,8002018 635,000 25,400 660,400

2,390,000$ 244,000$ 2,634,000$

Prior Year Refunding of General Obligation Bonds In prior years, the District defeased certain outstanding bonds by placing proceeds of new bonds in irrevocable escrow accounts to provide for all future debt service payments on the old bonds. Accordingly, the escrow accounts to provide for all future debt service payments are not included in the District’s financial statements. As of June 30, 2014, the amount of defeased debt outstanding amount to $30,325,000. Authorized but Unissued Bonds The District has $61,640,000 of voter authorized but unissued bonds. Depending on the rate of development within the District, changes in assessed valuation, and the amounts, interest rates, maturities and the timing of issuance of any additional bonds, increases in the District’s annual ad valorem tax rate may be required to provide for the payment of the principal of and interest on the District’s outstanding bonds, the Bonds, and any such future bonds. In addition to unlimited tax bonds, the District may incur other financial obligations payable from its collection of taxes and other sources of revenues, including maintenance tax notes payable from its collection of maintenance taxes, public property finance contracted obligations, delinquent tax notes and leases for various purposes payable from State appropriations and surplus maintenance taxes. Compensated Absences During the fiscal year ended June 30, 2014, the District accrued a total of $219,239 and paid out $66,567 in compensate absences. The total ending amount of accrued compensated absences at year-end is $1,503,661. Personal leave is paid out of the fund to which the employee’s salary relates, the majority of which has historically been the General Fund.

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Note 7 - General Fund Federal Program Revenues A summary of federal program revenues received in the general fund for the fiscal year ended June 30, 2014, follows:

CFDAProgram or Source Number Amount

Indirect Costs:Title I, Part A 84.010A 76,381$ Title I, Part D, Subpart 2 84.010A 8 IDEA-B Formula 84.027A 88,885 IDEA-B Preschool 84.173A 1,673 Career and Technical Basic Grant 84.048A 5,104 ESEA Title II, Part A 84.367A 13,115 Title III, Part A LEP 84.365A 5,843

ROTC 12.000 62,121 Medicaid Administrative Claims (MAC) 93.778 27,979 School Health and Related Service Program N/A 1,515,833

1,796,942$

Note 8 - Defined Benefit Pension Plan Plan Description The Alvin Independent School District contributes to the Teacher 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 the 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. The Texas state legislature has the authority to establish and amend benefits provisions of the pension plan and may, under certain circumstances, grant special authority to the TRS Board of Trustees. 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 78701, by calling the TRS Communications Department at 1-800-223-8778, or by downloading the report from the TRS Internet website, www.trs.state.tx.us, under the TRS Publications heading. Funding Policy State law provides a state contribution rate of 6.80% for fiscal year 2014, 6.40% for fiscal year 2013 and 6.00% for fiscal years 2012. For 2014, 2013 and 2012 the member contribution rate was 6.40%. In certain instances, the reporting district is required to make all or a portion of the 6.80%, 6.40% and 6.00% contribution for fiscal years 2014, 2013 and 2012 respectively. 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)

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Note 8 - Defined Benefit Pension Plan (continued) A state statute prohibits benefit improvements or contribution reductions if, as a result of 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. Actuarial implications of the funding provided in this manner are determined by the system’s actuary. Contributions Contributions for the retirement plan for the employees of the District represent 100% of the annual pension cost. Contributions made by the State, District and Employees, and the District’s annual covered payroll for the fiscal years 2014, 2013 and 2012 are as follows:

State TRS DistrictContributions Required Staff Members

For the Year Made on Behalf Contributions Contributions CoveredEnded of the District to TRS to TRS Payroll

2014 6,938,258$ 438,845$ 6,989,254$ 109,206,819$ 2013 5,123,191 343,259 5,459,374 85,303,013 2012 5,306,817 338,893 6,012,556 93,946,302

The contributions made by the state on behalf of the District have been recorded in the governmental funds financial statements of the District as both state revenues and expenditures. These contributions are the legal responsibility of the State. Note 9 - Retiree Health Plan Plan Description The Alvin Independent School District contributes to the Texas Public School Retired Employees Group Insurance Program (TRS-Care), a cost-sharing multiple-employer defined benefit postemployment health care plan administered by the Teacher Retirement System of Texas (TRS). TRS-Care Retire Plan provides health care coverage for certain person (and their dependents) who retired under TRS. The statutory authority for the program is Texas Insurance Code, Chapter 1575. Section 1575 grants the TRS Board of Trustees the authority to establish and amend basic and optional insurance coverage for participants. TRS issues a publicly available financial report that includes financial statements and required supplementary information for TRS-Care. That report may be obtained by writing to the TRS Communications Department, 1000 Red River Street, Austin, Texas 78701, by calling the TRS Communications Department at 1-800-223-8778, or by downloading the report from the TRS Internet website, www.trs.state.tx.us, under the TRS Publications heading. Funding Policy Contribution requirements are not actuarially determined but are legally established each biennium by the Texas legislature. Texas Insurance Code, Sections 1575.202, 203, and 204 establish state, active employee, and public school contributions, respectively. The state of Texas and active public school employee contribution rates were 1.00% and 0.65% of public school payroll, respectively, with school districts contributing percentage of payroll set at 0.55% for the fiscal year 2014, 2013 and 2012. Per Texas Insurance Code 1575, the public school contribution may not be less than 0.25% or greater than 0.75% of the salary of each active employee of the public school. For staff members funded by federal programs, the federal programs are required to contribute 0.65 percent.

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Note 9 - Retiree Health Plan (continued) Contributions made by the State, District and Employees for the years 2014, 2013 and 2012, are as follows:

State TRS Care DistrictContributions Required Staff Members

For the Year Made on Behalf Contributions ContributionsEnded of the District to TRS Care to TRS Care2014 988,171$ 643,320$ 709,855$ 2013 406,606 490,204 554,466 2012 895,283 560,888 610,652

For the current fiscal year and each of the past two years, the District’s actual contributions were equal to 100 percent of the required contributions. The contributions made by the state on behalf of the District have been recorded in the governmental funds financial statements of the District as both state revenues and expenditures. These contributions are the legal responsibility of the State. The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 established prescription drug coverage for Medicare beneficiaries known as Medicare Part D. Under Medicare Part D, TRS-Care retiree drug subsidy payments from the federal government to offset certain prescription drug expenditures for eligible TRS-Care participants. For fiscal years 2014, 2013 and 2012, the subsidy payments received by TRS-Care on behalf of the District were $298,413, $388,527, and $208,342 respectively. These payments are recorded as equal revenues and expenditures in the governmental funds financial statement of the District. The Early Retiree Reinsurance Program (ERRP) is a provision of the Patient Protection and Affordable Care Act (PPACA) and provides reimbursement to plan sponsors for a portion of the cost of providing health benefits to retirees between the ages of 55–64 and their covered dependents regardless of age. An “early retiree” is defined as a plan participant aged 55–64 who is not eligible for Medicare and is not covered by an active employee of the plan sponsor. This temporary program is available to help employers continue to provide coverage to early retirees. ERRP reimbursement is available on a first come, first served basis for qualified employers that apply and become certified for the program. TRS has been certified for this program and has received funds from the ERRP program. These funds will be allocated to reporting agencies using the same basis as the Medicare Part D – On Behalf Payments (GASB 24) reporting that is done each year. Reporting Entities should report this allocation on their annual financial statements much like on behalf payments. The district did not receive a subsidy for fiscal year 2014 and 2013, and the subsidy payment received by TRS-Care on behalf of the District for 2012 was $230,342. Note 10 - Risk Management Property/Liability The District is exposed to various risks related to torts: theft of, damage to and destruction of assets; errors and omissions; and natural disasters. The District’s risk management program encompasses various means of protecting the District against loss by obtaining property, casualty and liability coverage through commercial insurance carriers, self-insurance and from participation in a risk pool. Settled claims have not exceeded insurance coverage in any of the three previous fiscal years. There has not been any significant reduction in insurance coverage from that of the previous year.

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Note 10 - Risk Management (continued) Health Insurance During the period ended June 30, 2014, employees of Alvin Independent School District were covered by a partially self-insured health insurance plan (the Plan) accounted for through an internal service fund. The District made contributions to cover the employees and the employees, at their option, authorized payroll withholdings to pay contributions for dependents. All contributions were paid to a third party administrator acting on behalf of the District. The Plan was authorized by state statute and was documented by contractual agreement. The contract between the District and the third party administrator is renewable annually. In accordance with state statute, the District was protected against unanticipated catastrophic individual or aggregate loss by stop-loss coverage up to $100,000 per individual carried through a commercial insurer licensed to do business in Texas in accordance with the Texas Insurance Code. The Districts contribution expense for benefits during the year totaled $8,089,219. Estimates of claims payable and of claims incurred but not reported at June 30, 2014, are reflected as accrued expenses of the Fund. The liabilities include an amount for claims that have been incurred but were not reported until after June 30, 2014. Because actual claims liabilities depend on such complex factors as inflation, changes in legal requirements and damage awards, the process used in computing claims liability is an estimate Workers’ Compensation During the period ended June 30, 2014, employees of the District were covered by a self-funded workers’ compensation insurance plan (the “Plan”). The District contributes to the plan based upon established salary rates. Contributions were paid to a District Internal Service Fund. The third party administrator acts on behalf of the District to administer claims filed against the self-funded pool. The plan was authorized under the rules of the Texas Insurance Code and was documented by contractual agreement. This contract between the District and the third party administrator is renewable annually and terms of coverage and premium costs are included in the contractual provision. In accordance with state statute, the school district was protected against unanticipated catastrophic individual or aggregate loss by stop-loss coverage carried through Safety National Casualty Corp., a commercial insurer licensed or eligible to do business in Texas in accordance with the Texas Insurance Code. Stop-Loss coverage was in effect for specific claims exceeding $350,000 and for aggregate loss exceeding $1,000,000. Analysis of claims liability for the health and workers’ compensation fund, for the fiscal year 2014, 2013 and 2012, is as follows:

Fiscal Beginning of Current Year Claims End of YearYear Year Accrual Estimates Payments Accrual2014 1,160,494$ 16,470,478$ 15,984,082$ 1,646,890$ 2013 1,915,004 12,030,370 12,784,880 1,160,494 2012 1,562,667 16,321,677 15,969,340 1,915,004

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Note 11 - Compensated Absences Compensated absences include sick leave, compensated time and non-duty pay. Sick Leave Sick leave is comprised of two components: An annual payment for unused sick leave and reimbursement upon retirement.

Annual payment for unused sick leave Beginning in the year following the year an employee has accumulated 90 days of state and local leave, the employee becomes eligible to receive payment for unused local sick leave on an annual basis in accordance with the following provisions:

Professional employees shall be paid 75% of the entry-level teacher’s daily rate of pay for the

previous school year for each unused day, up to a maximum of five days Paraprofessionals and support employees shall be paid 75% of their daily rate of pay, up to a

maximum of 75% of the entry-level teacher’s daily rate of pay for the previous school year for each unused day, up to a maximum of five days

Payment for sick leave shall be reduced one day for each local leave day used during the previous school year. Employees may choose to accumulate local sick leave days in lieu of payment until the balance of local and state days reaches 115. Days in excess of 115 shall be bought back by the District.

Reimbursement at Retirement Upon retiring under TRS, employees shall be paid for each day of accumulated unused local leave, to a maximum of 45 days, at one-half their daily rate of pay, to a maximum of $50 per day. Payment shall be made at the time of retirement. Compensated Leave At the District’s option, employees not exempt under the Fair Labor Standards Act (non-exempt) may receive compensatory time off, rather than overtime pay, for overtime worked. The employee shall be informed in advance if overtime hours will accrue compensatory time rather than pay. Compensatory time earned by non-exempt employees may not accrue beyond a maximum of 60 hours. If an employee has a balance of more than 60 hours of overtime, the employee will be required to use compensatory time or, at the District’s option, will receive overtime pay. In recent years, the administration has allowed a carryover of twenty (20) hours from one year to another. An employee shall use compensatory time within the duty year in which it is earned. If the employee has any unused compensatory time remaining at the end of the fiscal year, the employee shall receive overtime pay.

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Note 12 - Commitments and Contingent Liabilities Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the District expects such amounts, if any, to be immaterial. The District is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the District's counsel, the resolution of these matters will not have a material adverse effect on the financial condition of the District. Note 13 - Shared Services Arrangement Energy for Schools - The District participates in the Energy for Schools shared services arrangement. Energy for Schools is a state electricity procurement cooperative with more than 140 member districts across the state of Texas. Member districts are charged for their electric consumption at contracted rates. The expenditures attributable to the District’s participation totaled $3,519,612 for the fiscal year. Hearing Impaired - The District participates in a Shared Service Arrangement (SSA) for the Galveston-Brazoria Co-op for the Hearing Impaired with nine other school districts. Approximately 25.9% of the total SSA expenditures are attributable to the District. Other member districts include Clear Creek ISD, Dickinson ISD, Friendswood ISD, Galveston ISD, Hitchcock ISD, La Marque ISD, Pearland ISD, Santa Fe ISD and Texas City ISD. The Clear Creek Independent School District is the fiscal agent for the program and all services are provided by the fiscal agent. The member districts provide the funds to the fiscal agent. Vision Cooperation - The District is a part of a vision cooperative that serves three area districts (Alvin, Pearland and Santa Fe). The District provides direct instruction and support services, such as Brailed material, and equipment) for students identified with vision impairments for all three districts. The expenditures attributable to the District’s participation totaled $131,410 for the fiscal year. Orientation and Mobility (O&M) - The District is a part of an agreement that serves three other area districts (Alvin, Pearland and Santa Fe). The purpose of the share service agreement is to share in the expense of providing certified O&M specialists, who are certified with the Academy for Certification of Vision Rehabilitation and Education Professionals to provide O&M services to visually impaired students eligible for special education under the Individuals for Disabilities Act. The expenditures attributable to the District’s participation totaled $63,342 for the fiscal year. Juvenile Justice Alternative Education Program - The District is required by law to participate in a Juvenile Justice Alternative Education Program (JJAEP) in coordination with the county juvenile board. A JJAEP is mandated by Chapter 37 of the Texas Education Code to provide education for certain expelled and adjudicated youth based on standards of academic accountability and performance as approved by the Texas Juvenile Probation Commission. The District paid $15,700 to place students in a JJAEP in the fiscal year 2014.

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Note 14 - Arbitrage In accordance with the provisions of Section 148(f) of the Internal Revenue Code of 1986, as amended, bonds must satisfy certain arbitrage requirements. Positive arbitrage is the excess of (1) the amount earned in investments purchased with bonds proceeds, or (2) the amount that such investments would have earned had such investments been invested at a rate equal to the yield on the bond issue. In order to comply with the arbitrage rebate requirements, positive arbitrage must be paid to the U.S. Treasury at the end of each five-year anniversary date of the bond issue. The District has no rebatable arbitrage liability at June 30, 2014. Note 15 - Attendance Incentive, Recruitment and Retention Plan for Employees The District offers its employees the opportunity to participate in an attendance Incentive plan. The Attendance Incentive, Recruitment and Retention Plan for Employees is designed to reward employees for reaching certain attendance and campus goals, enhance employees' retirement savings and provide an incentive to recruit and retain employees. This is a "401(a)" plan as defined under the Internal Revenue Code. All assets and income of the plan are held in trust for the exclusive benefit of participants and their beneficiaries. The District provides neither administrative services nor investment advice for the plan. Accordingly, no assets or liabilities are reported in the financial statement of the District. Note 16 - Fund Equity According to District policy, as prescribed by GASB Statement No. 54, the Board may establish commitments and assignments of fund balance from time to time in order to meet specific District needs. A summary of committed and assigned fund balance as of June 30, 2014, for all governmental types follows:

Other General Governmental

Fund FundsCommitted Fund Balance

Commited - other:Future TIRZ payments 2,000,000$ -$ Catastrophic contingency 910,137 - Campus activity funds - 1,744,285

Total Committed 2,910,137$ 1,744,285$

Assigned Fund BalanceAssigned - other:

Operating expenditures (3 months) 37,500,000$ -$ I&S commitment to lower tax rate 3,700,000 - CTE Projects (prior to potential bond funding) 6,000,000 - HB1 Carry-over 700,000 - Center for Learning and Leadership 5,000,000 - 1/5 Copier Costs (to prepare for purchase in future) 200,000 - District Priorities 1,000,000 - Future Elementary Land Purchase 2,000,000 -

Total Assigned 56,100,000$ -$

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Note 17 - Subsequent Event In June, 2014, the Superintendent resigned for another district. The Board is currently in the process of searching for a replacement to be hired by the end of December. On September 9, 2014, the District’s Board of Trustees approved orders authorizing the issuance, sale and delivery of Unlimited Tax Schoolhouse Bonds Series 2014C, in a maximum amount not to exceed $175,000,000. The sale is contingent upon meeting certain parameters established by the Board of Trustees. The Board approved parameters included the amount, the interest rate, price and terms. The Bonds will be issued for the purpose of (a) the construction, acquisition and equipment of school buildings in the District, the purchase of the necessary sites for school buildings in the District and the purchase of school buses, (b) refunding and defeasing the Refunded Bonds, and (c) paying the cost of issuance.

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REQUIRED SUPPLEMENTARY INFORMATION

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ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit G-1BUDGETARY COMPARISON SCHEDULE

GENERAL FUND


Budgeted Amounts

Data Control Codes Original Final

Actual Amounts, Budgetary

Basis

Variance with Final Budget -

Positive (Negative)

Revenues5700 Local revenues 58,041,185$ 59,247,639$ 60,646,760$ 1,399,121$ 5800 State program revenues 104,992,904 107,992,904 121,549,732 13,556,828 5900 Federal program revenues 998,635 1,917,635 1,796,942 (120,693) 5020 Total revenues 164,032,724 169,158,178 183,993,434 14,835,256


0011 Instruction 87,546,859 92,587,183 90,744,597 1,842,586 0012 Instruction resources and media services 2,880,517 2,680,465 2,504,676 175,789 0013 Curriculum and instructional staff development 1,018,061 592,856 427,740 165,116 0021 Instructional leadership 3,651,299 3,200,235 3,132,552 67,683 0023 School leadership 9,206,071 9,031,780 8,779,113 252,667 0031 Guidance, counseling and evaluation services 3,612,134 3,622,133 3,527,768 94,365 0033 Health services 1,690,006 1,440,006 1,293,183 146,823 0034 Student transportation 10,678,986 10,178,986 9,284,861 894,125 0035 Food services - 102,400 23,051 79,349 0036 Extracurricular activities 3,163,395 3,583,599 3,313,989 269,610 0041 General administration 8,845,057 7,562,071 6,500,735 1,061,336 0051 Plant maintenance and operations 15,028,625 14,895,710 13,784,274 1,111,436 0052 Security and monitoring services 2,044,698 2,044,698 1,587,587 457,111 0053 Data processing services 3,689,984 3,939,986 3,623,074 316,912 0061 Community services 536,934 536,934 285,040 251,894

Debt Service:

0071 Principal on long-term debt 365,000 535,000 535,000 - 0171 Interest on long-term debt 226,700 156,700 116,943 39,757

Capital outlay:

0081 Facilities acquisition and construction 56,000.00 220,542 95,007 125,535 Intergovernmental:

0093Payments related to shared services arrangements 4,432,922 4,432,922 3,519,612 913,310

0095 Payments to Juvenile Justice Alt. Ed. Prgm. 143,054 143,054 15,700 127,354 0097 Payments to tax increment fund 5,150,000 4,150,000 4,631,925 (481,925) 6030 Total Expenditures 163,966,302 165,637,260 157,726,427 7,910,833 1100 Excess (deficiency) of revenues over expenditures 66,422 3,520,918 26,267,007 22,746,089

Other Financing Sources (Uses):7912 Sale of real and personal property - - 63,802 63,802 8911 Transfers out - (21,789,048) (21,758,488) 30,560 7080 Total other financing sources and uses - (21,789,048) (21,694,686) 94,362

1200 Net change in fund balances 66,422 (18,268,130) 4,572,321 22,840,451 0100 Fund balances - beginning 72,111,746 72,111,746 72,111,746 - 3000 Fund balances - ending 72,178,168$ 53,843,616$ 76,684,067$ 22,840,451$

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ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit G-2 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

58

The District adopts annual appropriations type budgets for the General Fund, Food Service Special Revenue Fund, and the Debt Service Fund using the same method of accounting as for financial reporting, as required by law. The remaining Special Revenue Funds (primarily federal grant programs) utilize a managerial type budget approved at the fund level by the Board of Trustees upon acceptance of the grants. These grants are subject to Federal, State and locally imposed project length budgets and monitoring through submission of reimbursement reports. Expenditures may not legally exceed budgeted appropriations at the function or activity level. Expenditure requests which would require an increase in total budgeted appropriations must be approved by the Trustees through formal budget amendment. State law prohibits trustees from making budget appropriations in excess of funds available and estimated revenues. State law also prohibits amendment of the budget after fiscal year end. Supplemental appropriations were made to the General Fund during the fiscal year ended June 30, 2014. During the fiscal year ended June 30, 2014, function 97 expenditures exceeded budgeted appropriations in the General Fund by $481,925; and function 71 expenditures exceeded budgeted appropriation by $1,839 in the Debt Service Fund. The administrative level at which responsibility for control of budgeted appropriations begins is at the organizational level within each function of operations. The finance department reviews closely the expenditure requests submitted by the various organizational heads (principal and department heads) throughout the year to ensure proper spending compliance. No public funds of the District shall be expended in any manner other than as provided for in the budget adopted by the Board of Trustees. The official school budget was prepared for adoption for budgeted governmental fund types by June 20, 2013. The budget was formally adopted by the Board of Trustees at a duly advertised public meeting prior to the expenditure of funds. The final amended budget is filed with the Texas Education Agency (TEA) through inclusion in the annual financial and compliance report. Encumbrance accounting is utilized in all government fund types. Encumbrances for goods or purchased services are documented by purchase orders or contracts. Under Texas law, appropriations lapse at year-end and encumbrances outstanding at that time are appropriately provided for in the subsequent year’s budget. End of the year outstanding encumbrances that were provided for in the subsequent year’s budget were $382,787 for the General Fund.

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OTHER SUPPLEMENTARY INFORMATION

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211 ESEA Title I, Part A - Improving Basic Programs - Supplemental funds to help low-performing schoolsprovide opportunities for children to acquire skills needed to meet state student performance standards.

215 ESEA Title I, Part D - Deliquent Programs - Supplemental funds to help low-performing schoolsprovide opportunities for children to acquire skills needed to meet state student performance standards.

224 IDEA, Part B - Formula - Operate educational programs for children with disabilities.

225 IDEA, Part B - Preschool - Program for preschool children with disabilities.

240 National School Breakfast and Lunch Program - Program that provides federal reimbursementrevenues originating from the United States Department of Agriculture.

242 Summer Feeding Program TDA - Provide meals to the community based on the average number of dailyparticipants.

244 Career and Technology - Basic - Provide career and technical education to develop new and/or improvecareer and technical education programs for paid and unpaid employment.

255 ESEA, Title II, Part A - Teacher and Principal Training and Recruiting - Increase student academicachievement through increasing the number of qualified teachers, assistant principals and principals.

263 Title III, Part A - English Language Acquisition and Language Enhancement - Improve theeducation of limited English proficient children by assisting the children to learn English.

289 Federally Funded Special Revenue Funds - Miscellaneous federal funds that have not been assigned aTexas Education Fund number.

in the Special Revenue Funds are described below.

Nonmajor Governmental Funds

Special Revenue Funds

The Special Revenue Funds are used to account for all federal, state and locally-funded grants. These grantsare awarded to the District with the purpose of accomplishing specific educational goals. Grants included

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383 Region IV Professional Staff Development - funds granted to develop staff.

385 Visually Impaired State - Provide teachers and services to students who are visually handicapped.

397 Advanced Placement Incentives - Professional development of teachers teaching advanced classes.

404 Student Success Initiative - Implement programs that increase the preparedness of students in academics for at risk.

410 Instructional Materials Allotment - State funds allotted to school districts to purchase instructional materials and technology-related equipment and services.

427 CIS-CJD Intervention Services Grant - provides funds to reduce school drop-outs while improving attendance, behavior and academic achievement. Funds help pay for Communities in Schools person.

429 State Funded Special Revenue - Provide educational materials.

459 SSA - Vision and O & M - Provide educational programs for children with vision disabilities.

461 Campus Activity - proceeds from fundraising activities, vending sales, corporate and private donations to school-sponsored activities benefiting students and staff of the campus.

Nonmajor Governmental Funds (Continued)

Special Revenue Funds (Continued)

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June 30, 2014

211 215 224

Data Control Codes

ESEA Title I Part A


IDEA B Formula

Assets1110 Cash and temporary investments -$ -$ -$

Receivables:1240 Receivables from other governments 333,147 609,239 1260 Due from other funds 1,727 - - 1290 Other receivables 155 - - 1310 Inventories, at cost - - - 1410 Prepaid items - - - 1000 Total Assets 335,029$ -$ 609,239$



2110 Accounts payable 33,305$ -$ 9,884$ 2150 Payroll deduction and withholdings payable - - - 2160 Accrued wages payable 83,547 - 132,489 2170 Due to other funds 218,177 - 466,866 2180 Due to other governments - - - 2000 Total Liabilities 335,029 609,239



Restricted:3450 Restricted - grant funds - - -

Committed:3545 Committed - other - - - 3000 Total Fund Balances - - - 4000 Total Liabilities and

Fund Balances 335,029$ -$ 609,239$

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225 240 242 244 255 263 289

IDEA B Preschool

National School

Breakfast and Lunch

Program



BasicESEA Title II, Part A TPTR

Title III Part A - LEP


Revenue Funds

-$ 3,341,311$ -$ -$ -$ -$ -$

14,989 76,561 - 49,184 147,876 70,136 1,540 - 128 - - - - - - 17,323 - - - - - - 89,409 - - - - - - 433 - - - - -

14,989$ 3,525,165$ -$ 49,184$ 147,876$ 70,136$ 1,540$

149$ 243,685$ -$ 1,577$ 93,505$ -$ -$ - - - - - - - - 131,777 - - - 13,704 -

14,840 7,740 - 47,607 54,371 56,432 1,540 - - - - - - -

14,989 383,202 49,184 147,876 70,136 1,540

- 89,409 - - - - - - 433 - - - - -

- 3,052,121 - - - - -

- - - - - - - - 3,141,963 - - - - -

14,989$ 3,525,165$ -$ 49,184$ 147,876$ 70,136$ 1,540$

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64



June 30, 2014

383 385 397

Data Control Codes


Staff Development

State Supplemental

Visually Impaired


Assets

1110 Cash and temporary investments -$ -$ 12,547$ Receivables:

1240 Receivables from other governments - - 3,600 1260 Due from other funds - - - 1290 Other receivables - - - 1310 Inventories, at cost - - - 1410 Prepaid items - - - 1000 Total Assets -$ -$ 16,147$



2110 Accounts payable -$ -$ -$ 2150 Payroll deduction and withholdings payable - - - 2160 Accrued wages payable - - - 2170 Due to other funds - - - 2180 Due to other governments - - - 2000 Total Liabilities - -



Restricted:

3450 Restricted - grants funds - - 16,147 Committed:

3545 Committed - other - - - 3000 Total Fund Balances 16,147 4000 Total Liabilities and

Fund Balances $ $ 16,147$

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404 410 427 429 459 461

Student Success

Initiative


Allotment


Services Grant




-$ 133,077$ -$ 251,101$ -$ 1,692,821$

- 52,005 4,558 - - - - - - - - 4,626 - - - - 105,285 71,287 - - - - - - - - - - - 12,118

$ 185,082$ 4,558$ 251,101$ 105,285$ 1,780,852$

-$ 1,130$ -$ -$ 38$ 20,776$ - - - - - 114 - - - - 49,945 - - - 4,558 - 55,302 2,418 - - - - - 1,141

1,130 4,558 - 105,285 24,449

- - - - - - - - - - - 12,118

- 183,952 - 251,101 - -

- - - - - 1,744,285 183,952 251,101 1,756,403

$ 185,082$ 4,558$ 251,101$ 105,285$ 1,780,852$

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ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit H-1COMBINING BALANCE SHEET Page 3 of 3ALL NONMAJOR GOVERNMENTAL FUNDS

June 30, 2014

Data Control Codes


Funds

Assets1110 Cash and temporary investments 5,430,857$

Receivables: 1240 Receivables from other governments 1,362,835 1260 Due from other funds 6,481 1290 Other receivables 194,050 1310 Inventories, at cost 89,409 1410 Prepaid items 12,551 1000 Total Assets 7,096,183$


Current Liabilities: 2110 Accounts payable 404,049$ 2150 Payroll deduction and withholdings payable 114 2160 Accrued wages payable 411,462 2170 Due to other funds 929,851 2180 Due to other governments 1,141 2000 Total Liabilities 1,746,617

Fund Balance:

Nonspendable: 3410 Nonspendable - inventories 89,409 3430 Nonspendable - prepaid items 12,551

Restricted:3450 Restricted - grants funds 3,503,321

Committed: 3545 Committed - other 1,744,285 3000 Total Fund Balances 5,349,566 4000 Total Liabilities and

Fund Balances 7,096,183$

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ALVIN INDEPENDENT SCHOOL DISTRICTCOMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCES - ALL NONMAJOR GOVERNMENTAL FUNDS


211 215 224

Data Control Codes

ESEA Title I Part A


IDEA B Formula

Revenues

5700 Local, intermediate, and out-of-state -$ -$ -$ 5800 State program revenues - - - 5900 Federal program revenues 2,565,279 260 2,985,324 5020 Total Revenues 2,565,279 260 2,985,324


0011 Instruction 2,098,854 - 1,168,061 0012 Instruction resources and media services - - - 0013 Curriculum and instructional staff development 267,488 - 97,430 0021 Instructional leadership 100,314 260 8,504 0023 School leadership 98,623 - 2,790 0031 Guidance, counseling and evaluation services - - 1,708,539 0033 Health services - - - 0035 Food service - - - 0036 Extracurricular activities - - - 0041 General administration - - - 0052 Security and monitoring services - - - 0053 Data processing services - - - 0061 Community services - - - 6030 Total Expenditures 2,565,279 260 2,985,324

1100 Excess (deficiency) of revenues over expenditures - - -



1200 Net change in fund balances - - -

0100 Fund balance - July 1 (beginning) - - -

3000 Fund balance - June 30 (ending) -$ -$ -$

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225 240 242 244 255 263 289

IDEA B Preschool

National School

Breakfast and Lunch Program



Basic

ESEA Title II, Part A

TPTRTitle III Part

A - LEP


Revenue Funds

-$ 3,546,511$ -$ -$ -$ -$ -$ - 342,882 - - - - -

53,568 6,295,981 92,579 185,890 419,823 312,157 5,992 53,568 10,185,374 92,579 185,890 419,823 312,157 5,992

51,209 - - 103,930 6,725 120,430 4,452 - - - - - - -

2,359 - - 65,232 300,129 163,760 - - - - 4,033 56,696 - - - - - - 47,429 - - - - - 12,695 - 27,967 - - - - - - - - - 10,322,670 92,579 - - - - - - - - - - - - - - - 8,844 - - - - - - - - 1,540 - - - - - - - - - - - - - -

53,568 10,322,670 92,579 185,890 419,823 312,157 5,992

- (137,296) - - - - -

- 2,115 - - - - - - 2,115 - - - - -

- (135,181) - - - - -

- 3,277,144 - - - - -

-$ 3,141,963$ -$ -$ -$ -$ -$

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ALVIN INDEPENDENT SCHOOL DISTRICTCOMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGESIN FUND BALANCES - ALL NONMAJOR GOVERNMENTAL FUNDSFor the Fiscal Year Ended June 30, 2014

383 385 397

Data Control Codes


Staff Development

State Supplemental

Visually Impaired


Revenues

5700 Local, intermediate, and out-of-state -$ -$ -$ 5800 State program revenues - 20,000 8,100 5900 Federal program revenues - - - 5020 Total Revenues - 20,000 8,100


0011 Instruction - 20,000 27 0012 Instruction resources and media services - - - 0013 Curriculum and instructional staff development - - 4,525 0021 Instructional leadership 14,768 - - 0023 School leadership 5,007 - - 0031 Guidance, counseling and evaluation services - - - 0033 Health services - - - 0035 Food service - - - 0036 Extracurricular activities - - - 0041 General administration - - - 0052 Security and monitoring services - - - 0053 Data processing services 1,000 - - 0061 Community services - - - 6030 Total Expenditures 20,775 20,000 4,552

1100Excess (deficiency) of revenues over expenditures (20,775) - 3,548



1200 Net change in fund balances (20,775) - 3,548

0100 Fund balance - July 1 (beginning) 20,775 - 12,599

3000 Fund balance - June 30 (ending) -$ -$ 16,147$

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71


404 410 427 429 459 461

Student Success

Initiative


Allotment


Services Grant




-$ -$ -$ -$ 453,710$ 1,582,297$ 12,808 307,551 44,688 53 - -

- - - - - - 12,808 307,551 44,688 53 453,710 1,582,297

12,808 315,081 44,688 - 450,678 796,900 - - - - - 222,179 - 1,130 - - 3,032 24,518 - - - - - - - - - - - 1,115 - - - - - 1,844 - - - - - 3 - - - - - 3,316 - - - - - 584,574 - - - - - 1,976 - - - - - 22,853 - - - - - - - - - - - -

12,808 316,211 44,688 - 453,710 1,659,278

- (8,660) - 53 - (76,981)

- - - - - - - - - - - -

- (8,660) - 53 - (76,981)

- 192,612 - 251,048 - 1,833,384

-$ 183,952$ -$ 251,101$ -$ 1,756,403$

DRAFT

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DRAFT

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ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit H-2COMBINING STATEMENT OF REVENUES, EXPENDITURES, Page 3 of 3IN FUND BALANCES - ALL NONMAJOR GOVERNMENTAL FUNDSFor the Fiscal Year Ended June 30, 2014

Data Control Codes


FundsRevenues

5700 Local, intermediate, and out-of-state 5,582,518$ 5800 State program revenues 736,082 5900 Federal program revenues 12,916,853 5020 Total Revenues 19,235,453

Expenditures Current:

0011 Instruction 5,193,843 0012 Instruction resources and media services 222,179 0013 Curriculum and instructional staff development 929,603 0021 Instructional leadership 184,575 0023 School leadership 154,964 0031 Guidance, counseling and evaluation services 1,751,045 0033 Health services 3 0035 Food service 10,418,565 0036 Extracurricular activities 584,574 0041 General administration 10,820 0052 Security and monitoring services 24,393 0053 Data processing services 1,000 0061 Community services 6030 Total Expenditures 19,475,564

1100 Excess (deficiency) of revenues over expenditures (240,111)

Other Financing Sources (Uses) 7912 Sale of real or personal property 2,115 7080 Total other financing sources and uses 2,115

1200 Net change in fund balances (237,996)

0100 Fund balance - July 1 (beginning) 5,587,562

3000 Fund balance - June 30 (ending) 5,349,566$

DRAFT

420

74

DRAFT

421

75


DRAFT

422

76

COMBINING STATEMENT OF NET POSITION


752 753 773


Health Insurance



1110 Cash and cash equivalents 206,307$ -$ -$ Receivables:

1250 Accrued interest receivable - - - 1260 Due from other funds 2,200 - - 1290 Other receivables - - - 1300 Inventories, at cost 23,156 - -

Total Current Assets 231,663

Non-current Assets:Capital Assets:

1530 Furniture and equipment 61,532 - - 1573 Accumulated depreciation - Equipment (16,517) - -

Total Non-current Assets 45,015 - - 1000 Total Assets 276,678

LiabilitiesCurrent Liabilities:

2110 Accounts payable 17,740 - - 2200 Accrued expenses 9,575 - -

Total current liabilities 27,315 - - 2000 Total Liabilities 27,315 - -

Net Position3200 Net investment in capital assets 45,015 - - 3900 Unrestricted 204,348 - - 3000 Total Net Position 249,363$ -$ -$


June 30, 2014

DRAFT

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Exhibit H-3

755 770

Property & Casualty

Insurance

Health & Workers'


5,032,585$ 5,432,652$ 10,671,544$

1,726 - 1,726 - - 2,200 - 37,160 37,160 - - 23,156

5,034,311 5,469,812 10,735,786

- - 61,532 - - (16,517) - - 45,015

5,034,311 5,469,812 10,780,801

- 437,180 454,920 - 1,646,890 1,656,465 - 2,084,070 2,111,385 - 2,084,070 2,111,385

- - 45,015 5,034,311 3,385,742 8,624,401 5,034,311$ 3,385,742$ 8,669,416$

DRAFT

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78

ALVIN INDEPENDENT SCHOOL DISTRICTCOMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION



752 753 773


Health Insurance


Operating Revenues

5749 Miscellaneous revenue from local sources -$ -$ -$ 5754 Interfund services provided and used 291,177 - - 5020 Total operating revenues 291,177 - -

Operating Expenses6100 Payroll costs 134,845 - - 6200 Purchased and contracted services 78,914 - - 6300 Supplies and materials 51,773 - - 6400 Claims expense and other operating expenses - - - 6449 Depreciation 4,731 - - 6030 Total Operating Expenses 270,263 - -

1200 Operating Income (Loss) 20,914 - -

Non-Operating Revenues (Expenses)7020 Investment earnings - - - 8951 Loss on sale of real and personal property (33,924) - -

Total Non-operating Revenues (33,924) - -

Income (Loss) before Transfers (13,010) - -

Transfers

7915 Transfers in - - - 8911 Transfers out - (117,173) (4,138,139)

Total Transfers - (117,173) (4,138,139) 1200 Change in Net Position (13,010) (117,173) (4,138,139)

0100 Net Position - July 1 (Beginning) 262,373 117,173 4,138,139

3300 Net Position - June 30 (Ending) 249,363$ -$ -$

DRAFT

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79

Exhibit H-4

755 770

Property & Casualty

Insurance

Health & Workers'


-$ 3,723$ 3,723$ - 17,192,054 17,483,231 - 17,195,777 17,486,954

- - 134,845 - 41,900 120,814 - - 51,773 - 18,026,252 18,026,252 - - 4,731 - 18,068,152 18,338,415

- (872,375) (851,461)

8,403 2,805 11,208 - - (33,924)

8,403 2,805 (22,716)

8,403 (869,570) (874,177)

- 4,255,312 4,255,312 - - (4,255,312) - 4,255,312 -

8,403 3,385,742 (874,177)

5,025,908 - 9,543,593

5,034,311$ 3,385,742$ 8,669,416$

DRAFT

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80

ALVIN INDEPENDENT SCHOOL DISTRICTCOMBINING STATEMENT OF CASH FLOWS



752 753 773

Print ShopHealth

Insurance


Increase (Decrease) in Cash and Cash EquivalentsCash Flows from Operating Activities:

Cash receipts from customers and with other funds - health 288,977$ $ 37,160$ Cash payments to suppliers for goods and services (118,016) (1,355,597) (595,589) Cash payments to employees (134,621) - -

Net Cash Provided by (Used for) Operating Activities 36,340 (1,355,597) (558,429)

Cash Flows from Non-Capital Financing Activities:Advances from other funds - - Advances to other funds - (117,173) (4,138,139)

Net Cash Provided by (Used for) Non-CapitalFinancing Activities - (117,173) (4,138,139)

Cash Flows from Capital and Related Financing Activities:Acquisition of capital assets (48,273) - -

Net Cash Provided by (Used for) Capital and Related Financing Activities (48,273) - -

Cash Flows from Investing Activities:Interest on investments - - -

Net Cash Provided by Investing Activities - - -

Net Increase in Cash and Cash Equivalents (11,933) (1,472,770) (4,696,568) Cash and Cash Equivalents at Beginning of Year 218,240 1,472,770 4,696,568 Cash and Cash Equivalents at End of Year 206,307$ -$ -$

Reconciliation to Balance Sheet Cash and Cash Equivalents 206,307$ -$ -$ Cash and Cash Equivalents per Balance Sheet 206,307$ -$ -$


Provided by Operating Activities:Operating Income (Loss) 20,914$ $ $ Adjustments to Reconcile Operating Income to Net Cash

Provided by Operating Activities:Depreciation 4,731 - -

Change in Assets and Liabilities:Decrease (increase) in Receivables - - 37,160 Decrease (increase) in Interfund Receivables (2,200) - - Decrease (increase) in Inventories (2,104) - - Increase (decrease) in Accounts Payable 14,775 (270,518) (254,766) Increase (decrease) in Payables to Others - (265,408) - Increase (decrease) in Accrued Expenses 224 (819,671) (340,823)

Net Cash Provided by (Used for) Operating Activities 36,340$ (1,355,597)$ (558,429)$

DRAFT

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81

Exhibit H-5

755 770

Property & Casualty

Insurance

Health & Workers'


-$ 17,158,617$ 17,484,754$ - (15,984,082) (18,053,284) - - (134,621) - 1,174,535 (703,151)

- 4,255,312 4,255,312 - - (4,255,312)

- 4,255,312 -

- - (48,273)

- - (48,273)

6,677 2,805 9,482 6,677 2,805 9,482

6,677 5,432,652 (741,942) 5,025,908 - 11,413,486 5,032,585$ 5,432,652$ 10,671,544$

5,032,585$ 5,432,652$ 10,671,544$ 5,032,585$ 5,432,652$ 10,671,544$

-$ (872,375)$ (851,461)$

- - 4,731

- (37,160) - - - (2,200) - - (2,104) - 437,180 (73,329) - - (265,408) - 1,646,890 486,620

-$ 1,174,535$ (703,151)$

DRAFT

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82

ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit H-6STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS


Balance BalanceJune 30, 2013 Additions Deductions June 30, 2014

Student ActivitiesAssets:

Cash and Cash Equivalents 647,952$ 53,805$ -$ 701,757$ Receivables:

Due From Other Funds 1,114 2,194 - 3,308 Deferred Expenses 17,648 - 17,648 -

Total Assets 666,714$ 55,999$ 17,648$ 705,065$

Liabilities:Accounts Payable 39,570$ -$ 13,615$ 25,955$ Due to Other Funds 124 4 - 128 Due to Student Groups 627,020 51,962 - 678,982

Total Liabilities 666,714$ 51,966$ 13,615$ 705,065$

DRAFT

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83

REQUIRED TEA SCHEDULES

DRAFT

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84

ALVIN INDEPENDENT SCHOOL DISTRICTSCHEDULE OF DELINQUENT TAXES RECEIVABLE


1 2 3 10

Net Assessed/Appraised BeginningLast Ten Tax Rates Value For School Balance

Fiscal Years Maintenance Debt Service Tax Purposes 7/1/13

2005 and prior Various Various Various 480,501$

2006 1.441000 0.264800 2,482,291,828 104,318

2007 1.317700 0.228200 3,271,284,300 118,032

2008 1.040000 0.288200 3,967,086,809 114,185

2009 1.040000 0.288200 4,559,307,338 151,836

2010 1.040000 0.264100 4,805,508,857 185,363

2011 1.040000 0.264100 4,872,422,130 236,521

2012 1.040000 0.304100 4,995,537,162 440,789

2013 1.040000 0.289100 5,196,626,439 1,479,650

2014 1.040000 0.289100 5,662,268,528 -

1000 Totals 3,311,195

Penalty and interest receivable on taxes

Total taxes receivable per Exhibit C-1

9000 Portion of Row 1000 for Taxes Paid into TaxIncrement Zone Under Chapter 311, Tax Code(Function 97) -$

Supplemental Tax Increment Zone Payment(Function 97) -

Total Payment into Tax Increment Zone -$

DRAFT

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85

Exhibit J-1

20 30 30a 40 50

Current Maintenance Debt Service Entire EndingYear's Total Total Year's Balance

Total Levy Collections Collections Adjustments 6/30/14

-$ 14,487$ 1,959$ (68,059)$ 395,996$

- 4,557 837 (799) 98,125

- 6,618 1,146 (1,452) 108,816

- 10,133 2,808 (1,659) 99,585

- 26,156 7,248 7,855 126,287

- 58,323 14,811 59,765 171,994

- 81,809 20,775 50,795 184,732

- 178,534 52,204 54,805 264,856

- 792,653 220,342 (12,070) 454,585

75,257,211 57,793,727 16,065,545 - 1,397,939

75,257,211 58,966,997 16,387,675 89,181 3,302,915

1,715,300

5,018,215$

-$ 13,188,997$ 3,666,325$ -$ -$

- 1,334,993 - - -

-$ 14,523,990$ 3,666,325$ -$ -$

DRAFT

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86


NATIONAL SCHOOL BREAKFAST AND LUNCH PROGRAM


Child NutritionBudget


Variance Favorable

(Unfavorable)

Revenues5700 Local, Intermediate, and Out-of-State 3,424,953$ 3,424,953$ 3,546,511$ 121,558$ 5800 State Program Revenues 53,000 53,000 342,882 289,882 5900 Federal Program Revenues 6,122,856 6,282,856 6,295,981 13,125 5020 Total Revenues 9,600,809 9,760,809 10,185,374 424,565


0035 Food Services 9,477,924 11,058,957 10,322,670 736,287 6030 Total Expenditures 9,477,924 11,058,957 10,322,670 736,287

1100 Excess (Deficiency) Revenues Over

Expenditures 122,885 (1,298,148) (137,296) 1,160,852

Other Financing Sources (Uses):7912 Sale of real or personal property - - 2,115 2,115 7080 Total other financing sources and uses - - 2,115 2,115

1200 Net change in fund balance 122,885 (1,298,148) (135,181) 1,162,967




DRAFT

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87


DEBT SERVICE FUND


Debt Service FundBudget


Variance Favorable

(Unfavorable)

Revenues5700 Local, Intermediate, and Out-of-State 15,195,964$ 16,220,964$ 16,559,510$ 338,546$ 5800 State Program Revenues 8,168,464 9,004,464 9,203,953 199,489 5900 Federal Program Revenues 466,560 466,562 2 5020 Total Revenues 23,364,428 25,691,988 26,230,025 538,037

ExpendituresCurrent:Debt Service:

0071 Principal on long-term debt 9,280,000 9,280,000 9,280,000 - 0072 Interest on long-term debt 13,178,165 14,934,165 14,936,004 (1,839)

Intergovernmental:

0097 Payments to tax increment fund 906,263 926,263 916,492 9,771 6030 Total Expenditures 23,364,428 25,140,428 25,132,496 7,932

1100 Excess (Deficiency) Revenues Over Expenditures - 551,560 1,097,529 545,969

Other Financing Sources (Uses):7916 Premium or discount on issuance of bonds - - 1,926,573 1,926,573 7080 Total other financing sources and uses - - 1,926,573 1,926,573

1200 Net change in fund balance - 551,560 3,024,102 2,472,542




DRAFT

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88

DRAFT

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89

STATISTICAL SECTION

DRAFT

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90

DRAFT

437

91

STATISTICAL SECTION (Unaudited)

This part of the Alvin Independent School District’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the District’s overall financial health. Page

Financial Trends - Tables 1-4 92

These schedules contain trend information to help the reader understand how the District’s financial performance and well-being have changed over time.

Revenue Capacity - Tables 5-8 101

These schedules contain information to help the reader assess the District’s most significant local revenue source, the property tax.

Debt Capacity - Tables 9-12

106

These schedules present information to help the reader assess the affordability of the District’s current levels of outstanding debt and the District’s ability to issue additional debt in the future.

Demographic and Economic Information - Tables 13-15 112

These schedules offer demographic and economic indicators to help the reader understand the environment within which the District’s financial activities take place.

Operating Information - Tables 16-19 116

These schedules contain service and infrastructure data to help the reader understand how the information in the District's financial report relates to the services the District provides and the activities it performs.

DRAFT

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ALVIN INDEPENDENT SCHOOL DISTRICTNET POSITION BY COMPONENT


(Unauditied)

2014 2013 2012 2011

Governmental Activities: Investment in Capital Assets 41,087,905$ 21,284,487$ 12,467,024$ 13,437,882$ Restricted 9,289,713 10,362,221 6,691,092 7,402,790 Unrestricted 89,138,644 82,954,421 81,035,631 66,508,617 Total Primary Government Net Position 139,516,262$ 114,601,129$ 100,193,747$ 87,349,289$


Source: The Statement of Net Position for Alvin Independent School District

DRAFT

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Table 1

2010 2009 2008 2007 2006 2005

25,935,429$ 22,277,379$ 20,128,086$ 26,710,206$ 27,814,383$ 27,062,763$ 9,786,985 9,579,057 6,662,018 5,135,892 6,405,212 6,106,910

61,280,833 46,910,410 40,133,467 29,843,463 24,525,804 20,241,239 97,003,247$ 78,766,846$ 66,923,571$ 61,689,561$ 58,745,399$ 53,410,912$

DRAFT

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94

ALVIN INDEPENDENT SCHOOL DISTRICTCHANGE IN NET POSITION


(Unaudited)

Expenses 2014 2013 2012 2011Governmental Activities: Instruction 101,757,339$ 84,121,811$ 89,332,999$ 88,552,327$ Instructional Resources and Media Services 3,095,140 2,567,700 2,875,213 2,656,384 Curriculum and Instructional Staff Development 1,360,882 878,941 966,156 1,052,978 Instructional Leadership 3,335,201 2,456,964 2,161,103 1,793,949 School Leadership 9,124,317 6,883,810 7,959,849 7,703,374 Guidance, Counseling, and Evaluation Services 5,377,089 4,193,897 4,680,891 4,613,929 Health Services 1,324,532 1,162,180 1,257,983 1,175,196 Student Transportation 8,528,836 7,037,459 7,852,619 8,098,651 Food Services 10,543,386 8,604,974 9,155,687 8,966,386 Cocurricular/Extracurricular Activities 5,674,403 4,179,707 5,133,605 4,740,847 General Administration 6,596,383 5,056,372 5,856,134 5,091,874 Plant Maintenance and Operations 14,629,992 10,390,945 12,578,801 13,618,479 Security and Monitoring Services 1,737,701 1,414,771 1,663,147 1,737,964 Data Processing Services 5,294,507 4,555,413 3,811,208 4,373,584 Community Services 326,154 292,866 342,441 231,428 Interest and fiscal charges on Long-term Debt 16,814,512 11,481,012 13,854,946 14,760,457 Facilities Acquisition and Construction 983,798 255,730 1,005,916 1,079,628

Payments related to shared services arrangements 3,519,612 2,885,736 2,996,745 3,949,205 Juvenile Justice Alternative Education Prog 15,700 14,800 30,800 72,500 Tax Increment Fund 5,548,417 5,412,702 6,638,195 3,927,960

Total Primary Government Expenses 205,587,901 163,847,790 180,154,438 178,197,100

Program Revenues Governmental Activities: Charges for Services Instruction 790,481 861,085 929,543 869,712 Instructional Resources and Media Services 205,525 191,352 228,001 198,355 Curriculum and Staff Development 15,810 15,946 - 15,258 Instructional Leadership - - - - School Leadership - 15,946 - - Guidance, Counseling, and Evaluation Services - 31,892 - - Studen Transportation - - - - Food Services 3,537,057 3,143,679 3,191,855 3,078,175 Cocurricular/Extracurricular Activities 823,834 692,841 818,594 618,206 General Administration - - 17,539 - Plant Maintenance and Operations 274,524 254,723 199,508 112,218 Security and Monitoring Services 15,810 15,946 - 30,516 Other Activities - - - - Operating Grants and Contributions 21,842,203 18,025,169 21,384,882 33,692,988 Total Primary Government Program Revenues 27,505,244 23,248,579 26,769,922 38,615,428

Net (Expense)/RevenueTotal Primary Government Net Expense (178,082,657) (140,599,211) (153,384,516) (139,581,672)

General Revenues and Other Changes in Net Position Governmental Activities:

Property Taxes, Levied for General Purposes 59,540,947 54,621,390 52,190,961 51,556,450 Property Taxes, Levied for Debt Service 16,538,613 15,186,033 15,301,658 13,043,052 Investment Earnings 290,921 171,643 307,010 574,092 State aid-formula grants 122,790,907 85,077,386 93,407,109 62,919,907 Grants and contributions not restricted 2,984,489 1,503,832 2,663,777 1,585,422 Miscellaneous 851,913 720,667 2,358,459 248,791 Extraordinary Item - - - -

Total Primary Government General Revenues 202,997,790 157,280,951 166,228,974 129,927,714

Change in Net Position -Total Primary Government 24,915,133$ 16,681,740$ 12,844,458$ (9,653,958)$


Source: The Statement of Activities for Alvin Independent School District

DRAFT

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Table 2

2010 2009 2008 2007 2006 2005

90,368,110$ 78,195,897$ 69,270,296$ 62,258,339$ 56,248,532$ 52,895,450$ 2,596,791 2,629,790 2,423,429 2,186,474 1,960,221 1,596,034 1,062,613 904,905 942,631 976,155 744,996 698,628 1,769,448 1,745,407 1,617,938 1,473,561 1,161,514 836,365 7,720,501 7,127,199 6,081,091 5,447,693 4,586,446 4,021,691 4,306,867 3,510,581 3,127,275 2,787,644 2,624,064 2,385,954 1,198,178 1,100,076 956,863 986,586 753,354 711,435 6,802,786 6,154,717 6,370,781 5,530,002 4,826,339 4,620,374 8,212,591 7,715,946 7,636,953 6,565,796 5,953,394 5,107,066 4,845,658 4,381,694 3,552,880 3,129,112 2,295,765 2,061,272 4,006,331 3,427,741 3,479,345 3,076,454 2,791,864 2,736,446

14,957,666 16,114,457 15,874,500 15,434,977 11,194,816 10,706,939 1,970,349 1,670,145 1,356,934 1,187,924 971,690 818,214 4,784,407 3,207,026 2,631,370 2,099,410 1,707,190 1,740,378

158,613 82,488 78,843 72,565 68,133 96,607 13,429,984 13,646,534 13,694,192 12,086,159 9,512,003 5,833,166 1,945,181 2,585,107 8,962,491 6,227,888 5,608,396 1,048,656 3,785,417 3,733,897 - - - -

90,400 137,146 143,914 155,351 68,797 67,674 6,941,779 3,574,007 2,879,739 - - -

180,953,670 161,644,760 151,081,465 131,682,090 113,077,514 97,982,349

573,413 608,571 507,701 508,350 385,964 8,819 145,573 195,202 243,274 244,400 167,172 - 29,115 22,965 10,577 39,104 33,434 -

- - - - - 33,812 - - 10,577 19,552 50,152 - - - - - - - - - - - - 2,244

3,134,723 2,940,737 2,800,044 2,274,926 2,138,599 2,062,787 896,953 456,904 379,930 236,822 271,517 117,487

- - 10,577 16,717 20,287 101,241 157,265 190,649 142,303 125,343 142,744 14,557 45,930 42,308 48,880 25,076 10,820

5,172,741 - - - 8,359 - 29,524,140 22,305,153 17,424,155 14,377,982 14,509,924 12,888,841 39,592,456 26,732,727 21,619,792 17,892,319 17,732,257 15,287,841

(141,361,214) (134,912,033) (129,461,673) (113,789,771) (95,345,257) (82,694,508)

50,533,105 47,214,859 43,707,324 40,875,931 38,245,525 30,648,595 12,832,311 13,028,031 11,257,494 7,492,055 6,991,360 4,932,887

361,178 1,387,915 6,352,666 8,072,011 5,468,035 1,912,859 94,000,926 83,432,651 73,148,196 54,908,736 48,370,445 48,566,857 1,063,821 52,812 43,692 13,749 1,135,019 202,034

806,274 1,639,040 112,094 264,934 469,361 4,597 - - 74,217 - - -

159,597,615 146,755,308 134,695,683 111,627,416 100,679,745 86,267,829

18,236,401$ 11,843,275$ 5,234,010$ (2,162,355)$ 5,334,488$ 3,573,321$

DRAFT

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96

ALVIN INDEPENDENT SCHOOL DISTRICTFUND BALANCES OF GOVERNMENTAL FUNDS


(Unaudited)

**Fiscal Year Ended: 2014 2013 2012 2011

General Fund Reserved -$ -$ -$ -$ Unreserved - - - - Non-spendable:


Committed:Committed - retirement of loans/notes payable - - 2,000,000 2,000,000 Committed - capital expenditures for equipment - 3,381,720 3,381,720 22,756,788 Committed - self insurance - 1,000,000 1,000,000 1,000,000 Committed - other 2,910,137 33,562,757 31,562,757 -

Assigned:Assigned - other 56,100,000 - - -

Unassigned:Unassigned 17,057,409 33,599,777 33,799,518 29,379,990

Total General Fund 76,684,067 72,111,746 72,271,880 55,639,456

All Other Governmental Funds Reserved Special Revenue Funds - - - -

Undesignated - - - - Non-spendable:


Restricted:Restricted - grant funds 3,503,321 3,684,250 2,666,833 2,347,689 Retricted - capital acquisition program 186,886,046 22,009,021 15,326,917 42,689,521 Retricted - debt service 11,961,471 8,936,869 1,977,131 3,182,945

Committed:Committed - other 1,744,285 1,832,471 1,733,532 1,559,351

Total All Other Governmental Funds 204,197,083 36,533,952 21,890,208 49,956,478

Total Governmental Funds 280,881,150$ 108,645,698$ 94,162,088$ 105,595,934$

** Implementaion of GASB Statement No. 54 "Fund Balance Reporting and Governmental Fund Type Definitions"


DRAFT

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97

Table 3

2010 2009 2008 2007 2006 2005

867,657$ 519,852$ 371,070$ 557,437$ 321,266$ 372,621$ 49,263,163 40,613,363 35,391,892 23,778,169 17,838,346 13,076,879

- - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - - 50,130,820 41,133,215 35,762,962 24,335,606 18,159,612 13,449,500

46,530,237 58,440,191 69,535,534 122,846,837 113,489,201 70,235,587 2,259,766 3,066,947 2,400,367 2,148,353 1,468,849 1,351,278

- - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

48,790,003 61,507,138 71,935,901 124,995,190 114,958,050 71,586,865

98,920,823$ 102,640,353$ 107,698,863$ 149,330,796$ 133,117,662$ 85,036,365$ DRAFT

444

98

ALVIN INDEPENDENT SCHOOL DISTRICTCHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS


(Unaudited)

2014 2013 2012 2011RevenuesLocal, Intermediate, and Out-of-State 82,919,524$ 76,155,357$ 74,643,517$ 70,690,025$ State Programs 131,489,767 91,468,045 100,698,813 70,349,764 Federal Programs 15,180,357 13,138,342 16,756,955 27,418,496 Total Revenues 229,589,648 180,761,744 192,099,285 168,458,285

ExpendituresCurrent: Instruction 96,187,537 79,826,376 83,573,982 83,692,156 Instructional Resources and Media Services 2,875,727 2,394,715 2,653,170 2,459,153 Curriculum and Instructional Staff Development 1,357,343 881,899 970,774 1,057,860 Instructional Leadership 3,317,127 2,458,717 2,140,128 1,785,317 School Leadership 8,935,076 6,778,716 7,725,852 7,526,019 Guidance, Counseling, and Evaluation Services 5,278,813 4,137,525 4,574,486 4,529,469 Health Services 1,298,558 1,146,068 1,224,597 1,155,374 Student Transportation 9,284,861 6,303,295 7,680,751 8,595,995 Food Services 10,441,616 8,349,955 8,570,924 8,481,544 Cocurricular/Extracurricular Activities 3,898,563 2,688,602 3,500,571 3,219,314 General Administration 6,511,555 4,996,250 5,738,465 4,977,734 Plant Maintenance and Operations 13,784,274 9,620,863 11,491,894 12,813,900 Security and Monitoring Services 1,770,282 1,379,945 1,538,014 1,626,406 Data Processing Services 4,950,768 4,839,416 4,316,097 4,200,842 Community Services 285,040 259,459 296,332 190,790 Debt Service: Principal on Long-term Debt 9,815,000 6,960,000 9,400,000 7,615,000 Interest on Long-term Debt 13,777,578 9,216,598 13,834,407 15,224,364 Bond Issuance Cost and Fees 1,277,119 14,298 408,084 429,701 Capital Outlay: Facilities Acquisition and Construction 34,116,120 5,747,721 23,888,237 26,840,955 Intergovernmental:

Payments related to shared services arrangements 3,519,612 2,885,736 2,996,745 3,949,205 Juvenile Justice Alt. Ed. Prgm. 15,700 14,800 30,800 72,500 Tax Increment Fund 5,548,417 5,412,702 6,638,195 3,927,960

Total Expenditures 238,246,686 166,313,656 203,192,505 204,371,558

Excess (Deficiency) of Revenues Over (Under) Expenditures (8,657,038) 14,448,088 (11,093,220) (35,913,273) Other Financing Sources (Uses)Refunding bonds issued - - 37,380,000 - Issuance of Capital Related Debt (Regular Bonds) 166,050,000 - - 40,830,000 Proceeds from Capital Lease - - - - Refunding Bonds Issued - - - - Premium/Discount from Issuance of Bonds 14,776,573 - 5,981,015 1,635,505 Sale of Real and Personal Property 65,917 35,522 32,037 60,683 Other Resources - - - 62,182 Other Source - - - - Transfers In 21,758,488 13,183,400 3,086 6,345,452 Transfers Out (21,758,488) (13,183,400) (3,086) (6,345,438) Payment to Refunded Bond Escrow Agent - - (43,733,678) - Total Other Financing Sources (Uses) 180,892,490 35,522 (340,626) 42,588,384

Net Change in Fund Balances 172,235,452$ 14,483,610$ (11,433,846)$ 6,675,111$

Debt Service as a Percentage of Noncapital Expenditures 11.74% 10.17% 13.19% 12.99%

Note: The District fiscal year end date was changed from August 31 to June 30 with the fiscal year ended June 30, 2013, being a tem month conversion year.

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Table 4

2010 2009 2008 2007 2006 2005

69,860,187$ 67,849,626$ 64,345,302$ 60,789,686$ 54,170,304$ 41,073,790$ 101,377,908 91,679,994 79,433,145 59,357,475 53,605,407 53,274,041 23,210,979 14,110,622 11,182,898 9,942,992 10,389,981 8,392,116

194,449,074 173,640,242 154,961,345 130,090,153 118,165,692 102,739,947

85,688,484 75,206,579 66,352,184 57,770,997 54,420,220 50,797,389 2,404,274 2,468,569 2,274,952 2,073,312 1,879,007 1,715,741 1,070,457 925,409 942,079 991,465 764,194 748,773 1,769,677 1,751,750 1,614,344 1,443,106 1,158,631 809,089 7,557,422 7,014,708 5,954,170 5,193,282 4,516,599 3,864,308 4,232,794 3,465,661 3,091,828 2,666,673 2,584,679 2,338,052 1,180,533 1,091,964 941,962 762,883 735,388 694,288 8,571,798 7,349,911 5,573,631 6,302,238 5,122,744 4,815,340 7,705,599 7,316,263 7,203,560 6,021,239 5,693,147 4,889,605 3,682,282 3,034,759 2,614,811 2,160,047 1,762,197 1,803,622 4,779,929 3,619,058 3,468,996 3,010,608 2,763,847 2,657,418

14,237,923 15,684,505 15,697,183 15,269,481 11,180,052 10,766,333 2,006,102 1,714,250 1,329,355 1,186,557 931,561 864,499 4,563,532 2,896,457 2,697,864 1,946,285 1,559,609 1,560,778

121,496 80,371 75,916 65,926 64,353 90,142 - - - - - -

6,210,000 4,745,000 3,570,000 3,390,000 2,955,000 3,071,849 13,247,514 13,248,776 13,378,603 11,861,715 8,906,359 5,590,389

264,827 413,803 63,197 837,531 286,370 695,300 - - - - -

11,273,794 19,617,670 56,859,572 57,781,687 34,950,959 29,207,257

3,785,417 3,733,897 - - - - 90,400 137,146 143,914 155,351 68,797 67,674

6,941,779 3,574,007 2,879,739 - - - 191,386,033 179,090,513 196,727,860 180,890,383 142,303,713 127,047,846

3,063,041 (5,450,271) (41,766,515) (50,800,230) (24,138,021) (24,307,899)

22,195,000 - - 21,530,043 - 22,210,000 - 29,080,000 - 64,404,957 71,990,000 39,345,000 - - - - - - - - - - - -

2,133,316 345,973 - 1,882,836 215,970 3,116,532 64,076 45,788 134,585 42,723 - - 30,180 - - - - -

- - - - - - 6,654,655 - 1,573,368 1,241,516 15,035 3,464,369

(13,554,655) - (1,573,368) (3,864,516) (1,689) (3,464,368) (24,305,143) (29,080,000) - (23,330,712) - (23,358,864) (6,782,571) 391,761 134,585 61,906,847 72,219,316 41,312,669

(3,719,530)$ (5,058,510)$ (41,631,930)$ 11,106,617$ 48,081,295$ 17,004,770$

11.31% 11.36% 11.48% 12.03% 14.12% 8.91%

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ALVIN INDEPENDENT SCHOOL DISTRICT Table 5ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY


(Unaudited)

Actual ValuePersonal Total Total

Fiscal Year Real Property Property Less: Assessed DirectEnded Value Value Exemptions Value Rate (1)

2014 7,721,740,930$ 1,186,933,497$ 1,760,282,766$ 7,148,391,661$ 1.3291$

2013 6,992,358,698 1,056,279,164 1,322,388,544 6,726,249,318 1.3291

2012 6,751,119,987 823,130,039 1,246,730,931 6,327,519,095 1.3441

2011 6,832,845,447 737,821,503 1,211,887,166 6,358,779,784 1.3041

2010 6,658,420,580 748,104,614 1,266,892,651 6,139,632,543 1.3041

2009 6,064,743,427 707,370,165 1,138,901,648 5,633,211,944 1.3282

2008 5,797,402,479 647,318,861 1,030,956,817 5,413,764,523 1.3282

2007 5,022,079,238 588,478,097 959,986,597 4,650,570,738 1.5459

2006 4,473,100,165 482,324,048 950,668,687 4,004,755,526 1.7058

2005 3,531,795,413 418,390,780 769,912,006 3,180,274,187 1.6760


(1) Tax Rates are per $100 of assessed value.


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ALVIN INDEPENDENT SCHOOL DISTRICTPROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS

(PER $100 OF ASSESSED VALUE)


(Unaudited)

Taxing Authority 2014 2013 2012 2011Overlapping Rates:

Brazoria County 0.4320$ 0.4259$ 0.4259$ 0.4131$ Port Freeport 0.4500 0.0515 0.0515 0.0535 Alvin Community College 0.1998 0.1198 0.1998 0.1995 City of Alvin 0.8438 0.8438 0.8438 0.0836 City of Hillcrest Village 0.4326 0.3918 0.3918 0.3891 City of Manvel 0.4764 0.5879 0.5879 0.5879 City of Pearland 0.7051 0.7051 0.7051 0.6851 Brazoria County MUD #6 0.6300 0.6300 0.6300 0.6300 Brazoria County MUD #21 1.4300 1.4300 1.4300 1.4300 Brazoria County MUD #25 1.0000 1.0500 1.0500 1.1000 Brazoria County MUD #26 0.6900 0.6900 0.6900 0.6900 Brazoria County MUD #29 0.0940 0.9000 0.9000 0.8000 Brazoria County MUD #31 1.3000 1.3000 1.3000 1.3000 Brazoria County MUD #34 0.8500 0.8500 0.8500 0.8500 Brazoria County MUD #35 1.0200 1.0200 1.0200 1.0200 Sedona Lakes MUD #1 1.2500 1.2500 1.2500 1.2500 Brazoria/Ft. Bend County MUD #1 0.8500 0.8500 0.8500 0.8500

District Direct Rates:

Alvin ISD - Maintenance & Operations 1.0400 1.0400 1.0400 1.0400 Alvin ISD - Debt Service 0.3770 0.2891 0.3041 0.2641 Total District Direct Rates 1.4170$ 1.3291$ 1.3441$ 1.3441$


Municipal Utility District (MUD) DRAFT

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Table 6

2010 2009 2008 2007 2006 2005

0.4030$ 0.3663$ 0.3300$ 0.3114$ 0.3217$ 0.4080$ 0.0535 0.0535 0.0535 0.0560 0.0597 0.0650 0.1998 0.1998 0.1998 0.2103 0.2195 0.2376 0.8036 0.8036 0.8036 0.8036 0.8036 0.8036 0.3778 0.3745 0.3745 0.3745 0.3745 0.3745 0.5879 0.5879 0.5879 0.5878 0.6288 0.6485 0.6654 0.6526 0.6526 0.6526 0.6527 0.6744 0.6300 0.6300 0.6300 0.6700 0.7200 - 1.4300 1.4500 1.3500 1.3500 1.3500 - 1.1000 1.1000 1.1000 1.2300 1.2500 - 0.7100 0.7100 0.7100 0.7100 0.7700 - 0.8000 0.8000 0.7500 0.7500 0.7500 - 1.3000 1.3000 1.4020 1.3900 1.3900 - 0.8500 0.8500 0.8500 0.8500 0.8500 - 1.0200 0.8900 0.8500 not collecting not collecting - 1.2500 1.2500 - - - - 0.8500 0.8500 0.8500 0.8500 0.8500 -

1.0400 1.0400 1.0400 1.3177 1.4410 1.4412 0.2641 0.2882 0.2882 0.2282 0.2648 0.2348 1.3041$ 1.3041$ 1.3282$ 1.3282$ 1.5459$ 1.6760$

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ALVIN INDEPENDENT SCHOOL DISTRICT Table 7PRINCIPAL TAXPAYERS

CURRENT YEAR AND NINE YEARS AGO

(Unaudited)

2014 2005Taxable Percentage of Taxable Percentage of

Assessed Total Assessed Assessed Total AssessedTaxpayer Valuation Rank Value Valuation Rank Value

Denbury Onshore, LLC 381,598,549$ 1 5.34% -$ - Pearland Town Center, LP 69,086,460 2 0.97% - - Schlumberger Well Services 51,529,070 3 0.72% - - Amreit SPF Shadow Creek, LP 48,187,760 4 0.67% - - Centerpoint Energy, Inc. 38,600,930 5 0.54% - - 12400 Shadow Creek Parkway, LLC 27,100,030 6 0.38% - - Discovery Shadow Creek Owner 26,780,230 7 0.37% - - Shadow Kirby LTS PTRN 25,000,000 8 0.35% - - Pearland MultiFamily DST 24,205,950 9 0.34% - - Weatherford US, LP 23,971,470 10 0.34% - - Ron Carter - - 10,418,510 1 0.33%CL Ashton Woods, LP - - 7,421,838 2 0.23%Power Rig Rental Tool Co. - - 2,100,000 3 0.07%QTS Fishing & Rental Tools - - 1,713,500 4 0.05%Stoddard Group, LTD - - 1,638,181 5 0.05%Amistco Separation Products, Inc. - - 1,090,140 6 0.03%Martin Peyton Trustee - - 1,047,150 7 0.03%260 Huffman, LLC - - 1,034,310 8 0.03%AHI Supply, LLC - - 1,112,570 9 0.03%SCR 12/13, LTD 1,002,288 10 0.03%Totals 716,060,449$ 10.02% 28,578,487$ 0.90%

Total Taxable Assessed Value 7,148,391,661$ 3,180,274,187$


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ALVIN INDEPENDENT SCHOOL DISTRICT Table 8PROPERTY TAX LEVIES AND COLLECTIONS


Collected within theFiscal Year of the Levy Total Collections to Date

Taxes Levied Percentage Collections Percent of TotalFiscal Year for the of Net Tax in Subsequent Tax Collections

Ended Fiscal Year (1) Amount Levy Years Amount To Net Tax Levy

2014 75,257,211$ 73,859,271$ 98.14% -$ 73,859,271$ 98.14%

2013 69,056,291 67,588,712 97.86% 1,012,995 68,601,707 97.86%

2012 67,184,595 66,031,647 98.34% 888,092 66,919,739 99.61%

2011 63,523,536 62,304,616 98.05% 1,034,188 63,338,804 99.71%

2010 62,825,476 61,269,362 97.77% 1,384,120 62,653,482 99.73%

2009 59,435,489 57,799,440 97.21% 1,509,762 59,309,202 99.79%

2008 52,756,411 51,126,782 97.03% 1,530,045 52,656,827 99.81%

2007 50,563,534 48,790,036 96.48% 1,664,682 50,454,718 99.78%

2006 45,542,415 43,687,073 96.33% 1,757,218 45,444,291 99.78%

2005 35,936,141 34,170,004 95.95% 1,652,999 35,823,003 99.69%

(1) Current year original tax levy net of supplements and adjustments within current year


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ALVIN INDEPENDENT SCHOOL DISTRICT Table 9OUTSTANDING DEBT BY TYPE


(Unaudited)

Governmental Activities Ratio of DebtGeneral Maintenance Total to Debt

Fiscal Year Obligation Tax Primary Assessed Per Ended: Bonds Notes Government Value (1) Student (2)

2014 484,743,974$ 2,390,000$ 487,133,974$ 6.81% 27,623$

2013 314,117,626 2,925,000 317,042,626 4.71% 17,978

2012 323,279,016 3,440,000 326,719,016 5.16% 19,370

2011 329,204,355 3,935,000 333,139,355 5.24% 20,721

2010 294,821,605 4,405,000 299,226,605 4.87% 19,332

2009 298,620,852 4,855,000 303,475,852 5.39% 20,325

2008 302,576,574 5,290,000 307,866,574 5.69% 21,749

2007 305,676,889 5,705,000 311,381,889 6.70% 23,506

2006 243,788,414 6,105,000 249,893,414 6.24% 20,325

2005 172,424,443 6,485,000 178,909,443 5.63% 15,413

(1) See Table 5 for assessed value data.(2) See Table 16 for student enrollment data.Fiscal year 2013 has an end date of 6/30


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ALVIN INDEPENDENT SCHOOL DISTRICT Table 10RATIOS OF NET GENERAL OBLIGATION BONDED DEBT OUTSTANDING


(Unaudited)

Ratio of NetLess Restricted Bonded

Fiscal Year Gross Bonded for Retirement Net Bonded Debt to Net Bonded DebtEnded: Debt (1) of Bonded Debt Debt Assessed Value (2) per Student (3)

2014 487,133,974$ 5,696,550$ 481,437,424$ 6.73% 27,300$

2013 317,042,626 4,774,659 312,267,967 4.64% 17,707

2012 326,719,016 2,104,932 324,614,084 5.13% 19,245

2011 333,139,355 3,318,778 329,820,577 5.19% 20,515

2010 299,226,605 5,704,739 293,521,866 4.78% 18,964

2009 303,475,852 5,039,719 298,436,133 5.30% 19,988

2008 307,866,574 2,974,996 304,891,578 5.63% 21,539

2007 311,381,889 1,485,935 309,895,954 6.66% 23,394

2006 249,893,414 3,464,876 246,428,538 6.15% 20,043

2005 178,909,443 3,182,369 175,727,074 5.53% 15,139

(1) Includes general obligation bonds, notes, and contractual obligations.(2) See Table 5 for assessed value data.(3) See Table 16 for student enrollment data.


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ALVIN INDEPENDENT SCHOOL DISTRICT Table 11DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT

June 30, 2014

(Unaudited) Amount

Gross Debt Percent Applicable to Taxing Authority Outstanding Overlapping (1) School District

Overlapping:Alvin Community College District 14,380,000$ 88.91% 12,785,258$ Alvin, City of 24,710,000 100.00% 24,710,000 Brazoria County 90,265,000 25.59% 23,098,814 Brazoria County MUD #6 24,780,000 13.70% 3,394,860 Brazoria County MUD #21 32,785,000 100.00% 32,785,000 Brazoria County MUD #25 21,755,000 100.00% 21,755,000 Brazoria County MUD #26 38,160,000 100.00% 38,160,000 Brazoria County MUD #29 11,760,000 100.00% 11,760,000 Brazoria County MUD #31 12,055,000 100.00% 12,055,000 Brazoria County MUD #34 28,755,000 100.00% 28,755,000 Brazoria County MUD #35 9,010,000 100.00% 9,010,000 Brazoria-Fort Bend County MUD 63,680,000 64.92% 41,341,056 Hillcrest Village, City of 100,000 100.00% 100,000 Manvel, City of 2,715,000 99.57% 2,703,326 Pearland, City of 297,415,000 25.76% 76,614,104 Port Freeport 6,030,000 3.30% 198,990 Sedona Lakes MUD #1 7,465,000 100.00% 7,465,000

Subtotal, Overlapping Debt 346,691,408

Direct:Alvin Independent School District 487,133,974 100.00% 487,133,974 Total Direct and Overlapping Debt 833,825,382$


(1) The percentage of overlapping debt is estimated using taxable assessed property values. Percentages were estimated by determining the portion of the overlapping taxing authority's taxable assessed value that is within the District's boundaries and dividing it by the overlapping taxing authority's total taxable assessed value.

Source: "Texas Municipal Reports" published by the Municipal Advisory Council of Texas and the District's Financial Advisor

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ALVIN INDEPENDENT SCHOOL DISTRICTLEGAL DEBT MARGIN INFORMATION


(Unaudited)

2014 2013 2012 2011

Debt Limit 714,839,166$ 672,624,932$ 632,751,910$ 635,877,978$

Total Net Debt Applicable to Limit 481,437,424 312,267,967 324,614,084 329,820,577

Legal Debt Margin 233,401,742$ 360,356,965$ 308,137,826$ 306,057,401$

Total Net Debt Applicable to the Limit as a Percentage of Debt Limit 67.35% 46.43% 51.30% 51.87%

Legal Debt Margin Calculation for Fiscal Year 2014:

Assessed Value 7,148,391,661$ Debt Limit Percentage of Assessed Value 10%Debt Limitation 714,839,166

Debt Applicable to Debt Limitation:Total Bonded Debt 487,133,974$ Less Reserve for Retirement of Bonded Debt 5,696,550

Total Amount of Debt Applicable to Debt Limitation 481,437,424 Legal Debt Margin 233,401,742$


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Table 12

2010 2009 2008 2007 2006 2005

613,963,254$ 563,321,194$ 541,376,452$ 465,057,074$ 400,475,553$ 318,027,419$

293,521,866 298,436,133 304,891,578 309,895,954 246,428,538 175,727,074

320,441,388$ 264,885,061$ 236,484,874$ 155,161,120$ 154,047,015$ 142,300,345$

47.81% 52.98% 56.32% 66.64% 61.53% 55.26%

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ALVIN INDEPENDENT SCHOOL DISTRICT Table 13

DEMOGRAPHIC AND ECONOMIC STATISTICS


(Unaudited)

Average Per Capita

Fiscal Year Estimated Peak Daily District Personal Personal Unemployment

Ended Population Enrollment (6) Attendance (1) Employees (2) Income (3) Income (4) Rate (5)

2005 276,956 12,415 11,608 1,296 403,635,000$ 18,850$ 7.3%

2006 286,773 13,273 12,295 1,339 457,017,000 21,343 7.3%

2007 293,315 14,270 13,247 1,436 480,593,000 22,444 8.2%

2008 301,011 15,220 14,155 1,980 518,087,000 24,195 8.2%

2009 308,890 15,940 14,931 2,126 519,651,000 24,268 8.3%

2010 313,166 16,547 15,478 2,254 586,289,000 27,380 9.4%

2011 319,973 17,127 16,077 2,305 588,159,000 24,268 8.8%

2012 324,769 17,940 16,867 2,262 619,181,000 22,252 7.5%

2013 336,521 18,886 17,635 2,436 564,481,000 23,291 6.5%

2014 * 343,623 19,809 18,550 2,766 (6) (6) 6.5%

* Information not yet available - Estimated - avg of increase last 5 years

(1) Source:District PEIMS Reports

(2) Source: AEIS reports provided by Texas Education Agency

(3) Source: Alvin Manvel Area Chamber of Commerce; U.S. Census

(4) Source: Community Economic Development HotReport; City of Alvin

(5) Brazoria County Labor Market Information Website - Average

(6) Not Available at time of Publication

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ALVIN INDEPENDENT SCHOOL DISTRICT Table 14PRINCIPAL EMPLOYERS

CURRENT YEAR AND NINE YEARS AGO(Unaudited)

2005Percentage Percentage

of Total of TotalEmployer Employees Rank Employment Employees Rank Employment

Alvin Independent School District 2,766 1 49.80% 1,746 1 56.38%DISH Network* 750 2 13.50% - * N/AAlvin Community College 545 3 9.81% 272 3 8.78%Wal-Mart 520 4 9.36% 459 2 14.82%Ron Carter 320 5 5.76% 260 4 8.40%TEAM 257 6 4.63% 102 6 3.29%City of Alvin 247 7 4.45% 168 5 5.42%Diversifed Ceramics 91 8 1.64% 90 7 2.91%Denbury Resources** 58 9 1.04% - ** N/A

5,554 100.00% 3,097 100.00%

Source: City of Alvin Economic Development Department

** Denbury Resources not in Alvin until 2009

* DISH Network not in Alvin until 2006

2014

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ALVIN INDEPENDENT SCHOOL DISTRICT Table 15FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY POSITIONLAST TEN FISCAL YEARS(Unaudited)

Position 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Administrator 28 26 26 27 20 20 23 17 17 19

Associate/Assistant Principal 41 35 35 35 36 31 27 24 24 20

Food Service 236 214 214 213 212 212 152 138 138 115

Counselor 41 38 34 34 34 26 24 22 22 18

Librarian/Library/Aides 42 42 41 43 43 42 34 32 32 28

Maintenance/Operation 273 231 226 221 215 214 188 170 170 149

Nurse 22 20 22 18 18 18 16 14 14 13

Other Professional * 77 59 51 51 46 51 44 29 29 29

Other Support Staff ** 201 83 88 59 59 51 62 27 27 46

Principal 23 23 23 22 22 21 19 18 18 17

Secretary/Clerical 92 85 85 83 81 76 66 59 59 51

Security 50 14 14 14 14 14 14 14 14 12

Special Education Aides 144 128 121 126 126 122 101 87 87 80

Teacher 1,265 1,226 1,075 1,097 1,087 1,058 981 903 845 827

Technical 39 20 20 20 21 21 18 14 14 15

Transportation 192 192 192 192 188 177 174 163 163 139

Total Employees 2,766 2,436 2,267 2,255 2,222 2,154 1,943 1,731 1,673 1,578

* Includes Diagnosticians, Psychologist, Speech Pathologists, Social Workers, Accountants and other professional staff not otherwise listed above.

** Computer, Classroom Aides

Source: District Records


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ALVIN INDEPENDENT SCHOOL DISTRICTOPERATING STATISTICS


(Unaudited)

Average CostFiscal Year Daily Operating Per Percentage

Ended Attendance Expenditures (1) Student Change

2014 17,635 176,173,623$ 9,990$ 23.27%

2013 17,635 142,919,904 8,104 -9.98%

2012 16,867 151,854,556 9,003 -2.58%

2011 16,077 148,578,291 9,242 -6.28%

2010 15,478 152,636,937 9,861 1.37%

2009 14,931 145,245,641 9,728 11.82%

2008 14,155 123,141,651 8,699 8.87%

2007 13,247 105,856,169 7,991 0.95%

2006 12,295 97,320,018 7,915 2.85%

2005 11,608 89,336,041 7,696 2.97%

Source: Nonfinancial information from district records.

(1) Operating expenditures are total expendtiures less debt service and capital outlay (to the extent capitalized for the government-wide statement of net position) and expenditures for capitalized assets included within the functional expenditures categories.


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Table 16

Percentage ofGovernment Cost Student to Students in

Wide Per Percentage Teaching Teacher Free/ReducedExpenses Student Change Staff Ratio Lunch Program

205,587,901$ 11,658$ 25.47% 1,265 13.94 50.4%

163,847,790 9,291 -13.01% 1,226 14.38 51.6%

180,154,438 10,681 -3.64% 1,076 15.68 53.1%

178,197,100 11,084 -5.19% 1,098 14.65 53.8%

180,953,670 11,691 7.99% 1,088 14.23 52.0%

161,644,760 10,826 1.43% 1,058 14.11 52.3%

151,081,465 10,673 7.37% 982 14.42 47.6%

131,682,090 9,940 8.08% 904 14.66 50.5%

113,077,514 9,197 8.95% 845 14.54 48.0%

97,982,349 8,441 32.43% 827 14.04 49.7%

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ALVIN INDEPENDENT SCHOOL DISTRICT Table 17TEACHER BASE SALARIESLAST TEN FISCAL YEARS(Unaudited)

District Statewide

Fiscal Year Minimum Maximum Average Average No Bachelor's Master's

Ended: Salary (1) Salary (1) Salary (2) Salary (2) Degree Degree Degree Doctorate

2014 47,400$ 70,948$ 54,391$ 50,179$ 13 927 319 8

2013 46,700 68,865 52,905 49,139 12 945 295 10

2012 46,000 66,410 50,157 48,375 4 854 208 9

2011 46,000 66,410 50,355 48,638 7 874 206 9

2010 45,000 64,838 49,031 48,263 4 879 195 9

2009 43,500 62,758 46,879 47,159 10 882 158 7

2008 41,700 60,671 45,486 46,179 16 811 146 7

2007 40,600 59,121 45,764 44,897 11 744 140 7

2006 38,100 56,621 42,853 41,743 17 684 137 5

2005 37,000 54,633 42,231 41,009 6 683 132 5

(1) Source: District records

(2) Source: Texas Education Agency website

Note: The District fiscal year end date was changed from August 31 to June 30 with the fiscal year ended

June 30, 2013, being a ten month conversion year.

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ALVIN INDEPENDENT SCHOOL DISTRICTSCHOOL BUILDING INFORMATION


Building: 2014 2013 2012 2011 2010

High SchoolsAlvin High School (1954-2008) Square Footage 554,937 580,197 580,197 580,197 580,197 Capacity 2,561 2,561 2,561 2,561 2,561 Enrollment 2,574 2,436 2,338 2,325 2,399AHS F Bldg.(1957) ADAPT Square Footage 41,159 41,159 41,159 41,159 41,159 Capacity 270 270 270 270 270 Enrollment* - - - - - Manvel High School (2006/2009) Square Footage 450,330 450,330 450,330 450,330 450,330 Capacity 2,500 2,500 2,500 2,500 2,500 Enrollment 2,521 2,337 2,143 1,981 1,842Assets (2003) Square Footage 32,397 32,397 32,397 32,397 32,397 Capacity 300 300 300 300 300 Enrollment 196 199 199 207 220

Junior High SchoolsAlvin Junior High (1968) Square Footage 121,447 121,447 121,447 121,447 121,447 Capacity 708 708 708 708 708 Enrollment 773 759 733 788 756Fairview JH (2008) Square Footage 172,163 172,163 172,163 172,163 172,163 Capacity 1,000 1,000 1,000 1,000 1,000 Enrollment 882 904 890 659 648Harby Junior High (1980) Square Footage 151,405 151,405 151,405 151,405 151,405 Capacity 832 832 832 832 832 Enrollment 680 638 688 666 665Nolan Ryan Junior High(2008) Square Footage 172,163 172,163 172,163 172,163 172,163 Capacity 1,000 1,000 1,000 1,000 1,000 Enrollment 1,180 1,065 993 1,176 1,055MJH @Rodeo Palms (2012) Square Footage 172,163 172,163 Capacity 1,000 1,000 Enrollment 879 828Manvel Junior High (1972)Square Footage 94,932 94,932 94,932Capacity 559 559 559Enrollment 770 468 441

* Included within AHS enrollment figures - fluctuates daily

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Table 18Page 1 of 3

2009 2008 2007 2006 2005

580,197 580,197 411,347 411,347 411,3472,561 2,561 N/A N/A N/A2,425 2,726 2,901 3,268 3,222

41,159 41,159 41,159 41,159 41,159270 270 270 270 270

- - - - -

450,330 328,900 328,9002,500 1,500 1,5001,676 1,191 634

32,397 32,397 32,397 32,397 32,397300 300 300 300 300211 222 220 195 161

121,447 121,447 121,447 121,447 121,447708 708 708 708 708758 659 665 727 752

172,1631,000

629

151,405 151,405 151,405 151,405 151,405832 832 832 832 832649 773 806 843 711

172,1631,000

998

94,932 94,932 94,932 94,932 94,932559 559 559 559 559387 755 631 497 399

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Building: 2014 2013 2012 2011 2010

Elementary SchoolsAlvin Elementary (1974) Square Footage 50,837 50,837 50,837 50,837 50,837 Capacity 424 424 424 424 424 Enrollment 503 551 589 599 598Alvin Primary (1979) Square Footage 79,500 79,500 79,500 79,500 79,500 Capacity 680 680 680 680 680 Enrollment 646 663 689 734 707Jeter Elementary (2002) Square Footage 91,689 91,689 91,689 91,689 91,689 Capacity 800 800 800 800 800 Enrollment 916 803 723 782 714EC Mason Elementary (1979) Square Footage 67,496 67,496 67,496 67,496 67,496 Capacity 624 624 624 624 624 Enrollment 662 651 666 633 628Hood Case Elementary (1997) Square Footage 84,468 84,468 84,468 84,468 84,468 Capacity 738 738 738 738 738 Enrollment 733 735 771 772 747Longfellow Elementary(1968) Square Footage * * 50,837 50,837 50,837 Capacity 404 404 404 Enrollment 536 532 505Mark Twain Primary (1964) Square Footage 48,134 48,134 48,134 Capacity 622 622 622 Enrollment 655 626 627Marek Elementary (2004) Square Footage 91,689 91,689 91,689 91,689 91,689 Capacity 800 800 800 800 800 Enrollment 927 899 853 892 840Passmore Elementary (1993) Square Footage 85,411 85,411 85,411 85,411 85,411 Capacity 708 708 708 708 708 Enrollment 722 694 637 607 624Savannah Lakes Elementary(2008) Square Footage 94,662 94,662 94,662 94,662 94,662 Capacity 800 800 800 800 800 Enrollment 814 782 725 684 643Stevenson Primary (1974) Square Footage 67,156 67,156 67,156 67,156 67,156 Capacity 590 590 590 590 590 Enrollment 659 638 605 609 621Walt Disney Elementary(1979) Square Footage 65,496 65,496 65,496 65,496 65,496 Capacity 572 572 572 572 572 Enrollment 555 494 467 459 464

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Table 18Page 2 of 3

2009 2008 2007 2006 2005

50,837 50,837 50,837 50,837 50,837424 424 424 424 424566 531 530 530 572

79,500 79,500 79,500 79,500 79,500680 680 680 680 680678 813 834 797 760

91,689 91,689 91,689 91,689 91,689800 800 800 800 800676 1,092 998 882 749

67,496 67,496 67,496 67,496 67,496624 624 624 624 624619 722 689 634 645

84,468 84,468 84,468 84,468 84,468738 738 738 738 738767 870 859 841 830

50,837 50,837 50,837 50,837 50,837404 404 404 404 404488 483 485 465 528

48,134 48,134 48,134 48,134 48,134622 622 622 622 622607 854 849 850 778

91,689 91,689 91,689 91,689 91,689800 800 800 800 800766 796 951 545 284

85,411 85,411 85,411 85,411 85,411708 708 708 708 708619 739 758 711 737

93,542800582

67,156 67,156 67,156 67,156 67,156590 590 590 590 590629 820 831 872 836

65,496 65,496 65,496 65,496 65,496572 572 572 572 572489 458 465 466 496

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Building: 2014 2013 2012 2011 2010

Elementary Schools (continued)Wilder Elementary(2007) Square Footage 94,662 94,662 94,662 94,662 94,662 Capacity 800 800 800 800 800 Enrollment 896 833 766 971 842Mark Twain Elementary (2012) Square Footage 100,241 100,241 Capacity 800 800 Enrollment 816 773York Elementary (2011) Square Footage 96,297 96,297 96,297 Capacity 800 800 800 Enrollment 823 716 579Longfellow Elementary @ old Mark Twain PrimarySquare Footage 48,134 48,134Capacity 622 622Enrollment 501 486

* In 2012-2013 Longfellow Elementary moved to the "old" Mark Twain buildingwhen the "new" Mark Twain Elementary opened. Current Bond election includes "new" Longfellow campus.

Administration Bldg(1981&2010) Square Footage 23,578 23,578 23,578 23,578 23,578 Capacity 75 75 75 75 75Child Nutrition (2006) Square Footage 4,680 4,680 4,680 4,680 4,680 Capacity 10 10 10 10 10Safety & Technology Ctr(2007) Square Footage 16,800 16,800 16,800 16,800 16,800 Capacity 36 36 36 36 36Support Services Ctr (2007) Square Footage 51,627 51,627 51,627 51,627 51,627 Capacity 35 35 35 35 35Transportation (2004) Square Footage 31,103 31,103 31,103 31,103 31,103 Capacity 117 117 117 117 117Maintenance Facility Square Footage 2,900 2,900 2,900 2,900 2,900 Capacity 3 3 3 3 3

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Table 18Page 3 of 3

2009 2008 2007 2006 2005

93,542 93,542800 800741 622

23,578 23,578 23,578 23,578 23,57875 75 75 75 75

4,680 4,680 4,680 4,680 10 10 10 10

16,800 16,800 16,80036 36 36

51,627 51,627 51,627

35 35 35

31,103 31,103 31,103 31,103 31,103117 117 117 117 117

2,900 2,900 2,900 2,900 2,9003 3 3 3 3

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ALVIN INDEPENDENT SCHOOL DISTRICT Table 19ATTENDANCE DATA


(Unaudited)

Percent

Fiscal Total Increase Percent of

Year Enrollment Amount (Decrease) Membership

2013/2014 19,809 18,550$ 5.19% 93.64%

2012/2013 19,014 17,635 4.60% 92.75%

2011/2012 18,018 16,867 4.9% 93.61%

2010/2011 17,175 16,077 3.9% 93.61%

2009/2010 16,591 15,478 3.7% 93.29%

2008/2009 15,983 14,931 5.4% 93.42%

2007/2008 15,196 14,155 6.8% 93.15%

2006/2007 14,201 13,247 3.9% 93.28%

2005/2006 13,213 12,295 5.0% 95.50%

2004/2005 12,528 11,608 4.0% 92.65%

Source: District, AEIS Report and PEIMS Report

Average Daily Attendance

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SINGLE AUDIT REPORT


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ALVIN INDEPENDENT SCHOOL DISTRICT TABLE OF CONTENTS

Page

Independent Auditors’ 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

1

Independent Auditors’ Report on Compliance for each Major Program; Report on Internal Control over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133

3 Schedule of Findings and Questioned Costs

6

Schedule of Expenditures of Federal Awards

10

Notes to Schedule of Expenditures of Federal Awards

11

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INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN

AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Board of Trustees Alvin Independent School District Alvin, Texas We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Alvin Independent School District, (the “District”) as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our report thereon dated November 11, 2014. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the District’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exits that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify a deficiency in internal control, described in the accompanying schedule of findings and questioned costs as item #2014-001 that we consider to be a significant deficiency.

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To the Board of Trustees Alvin Independent School District

2

Compliance and Other Matters As part of obtaining reasonable assurance about whether the District’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instance of noncompliance or other matters that are required to be reported under Government Auditing Standards. The District’s Response to Findings The District’s response to the finding identified in our audit is described in the accompanying schedule of findings and questioned costs. The District’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Houston, Texas November 11, 2014

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INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND

REPORT ON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY OMB CIRCULAR A-133

To the Board of Trustees Alvin Independent School District Alvin, Texas Report on Compliance for Each Major Federal Program We have audited Alvin Independent School District’s (the “District”) compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the District’s major federal programs for the year ended June 30, 2014. The District’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of the District’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the District’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the District’s compliance.

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Opinion on Each Major Federal Program In our opinion, the District, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2014. Report on Internal Control Over Compliance Management of the District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the District’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, we identified a deficiency in internal control over compliance, as described in the accompanying schedule of findings and questioned costs as item #2014-002 that we consider to be a significant deficiency. The District’s response to the internal control over compliance finding identified in our audit is described in the accompanying schedule of findings and questioned costs. The District’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose.

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Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133 We have audited the financial statements of the District as of and for the year ended June 30, 2014, and have issued our report thereon dated November 11, 2014, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinion on the financial statements as a whole. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole. Houston, Texas November 11, 2014

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ALVIN INDEPENDENT SCHOOL DISTRICT SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Fiscal Year Ended June 30, 2014

6

I. Summary of Auditors’ Results

Financial Statements

Type of auditors’ report issued Unmodified Internal control over financial reporting:

Material weakness (es) identified? No Significant deficiency (ies) identified that are not considered to be material weaknesses? #2014-001

Noncompliance material to the financial statements noted? No Federal Awards

Internal controls over major programs: Material weakness (es) identified? No Significant deficiency (ies) identified that are not considered to be material weaknesses? Yes, #2014-002

Type of auditor’s report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with section .510(a) 2-7 of OMB Circular A-133 No

Identification of Major Programs: Name of Federal Program CFDA Number U.S. Department of Education

Child and Adult Care Food Program 10.558 Title I, Part A Improving Basic Programs 84.010A Special Education Cluster:

IDEA-B Formula 84.027A IDEA-B Preschool 84.173A

Title II, Part A – TPTR 84.367

Dollar threshold used to distinguish Between Type A

and Type B federal programs: $395,939

Auditee qualified as low-risk auditee? Yes

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ALVIN INDEPENDENT SCHOOL DISTRICT SCHEDULE OF FINDINGS AND QUESTIONED COSTS (continued) For the Fiscal Year Ended June 30, 2014

7

II. Financial Statement Findings Finding #2014-001 – Financial Close Procedures Criteria: Internal controls should be in place to ensure that year-end general ledger balances

are reconciled to properly supported subsidiary ledgers and documentation. Condition: The District’s investments reconciliation and accrued expenses for the insurance

fund were not properly supported by investment statements and actuarial reports.

Context: The auditor noted that general ledger balances were not properly supported by reconciliations and or proper documentation.

Effect: Misstatement in the financial statement balances may not be recognized in a timely

manner.

Cause: The reconciliations for investments and accrued expenses were not properly completed and supported by statements or documentation.

Recommendation: The District should continue to implement closing procedures in the identified areas

and ensure the general ledger balances are properly recorded and supported.

III. Federal Awards Findings and Questioned Costs Finding #2014-002 – Preparation of Schedule of Expenditures of Federal Awards Criteria: The District should have procedures in place to identify grant awards for inclusion

in the schedule of expenditures of federal awards. The schedule should include award name, Catalog of Federal Domestic Assistance (CFDA) program number, pass-through entity identifying number and total expenditures.

Condition: The District has not fully implemented appropriate procedures to capture required

information for completing the schedule of expenditures of federal awards. Context: The auditor noted that the District was unable to complete an accurate schedule of

expenditures of federal awards. Effect: The lack of appropriate procedures in preparing the schedule may result in

misstatement of reporting expenditures of federal awards. Questioned Cost: None Cause: The District received new funding that were not properly included or presented on

the schedule of expenditures of federal awards. Recommendation: The District should properly prepare the schedule of expenditures of federal awards.

The Business Department personnel should seek additional training in single audit and OMB A-133 compliance requirements.

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8

IV. Status of Prior Year Findings Finding # Corrective Action Taken Finding #2013-001 –Purchasing

Resolved The three conditions sited in the 2013 Audit finding last year did not re-occur in the subsequent year due to the improved internal controls, installation of new purchasing software, and additional personnel in key administrative areas including Purchasing, Food Services, Business Office, and Risk Management. The Purchasing function has been moved to the Business Services Department and centralization of the functions listed in the Recommendation of this finding along with additional internal controls has contributed to the improvements of the purchasing process.

Finding #2013-002 – Nepotism

Resolved. The condition described in this finding did occur and as indicated in the recommendation a request for an opinion was requested of Texas Attorney General. The District received the Attorney General ruling which found the employment to be in compliance with the state Nepotism laws. No corrective action was required.

Finding #2013-003 – Excess Food Service Fund Balance – Child Nutrition Cluster (CFDA# 10.553/10.555/10.559)

Resolved. The District submitted a fund balance reduction plan to the State of Texas and currently in the process on complying with the plan.

Finding #2013-004 – Title II Part A (CFDA #84.367A) – Time and Effort

Resolved. The District revised their procedures and now compliant.

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V. Corrective Action Finding # 2014-001 –

Financial Close Procedures

Contact Person: Susan Wilson, Chief Financial Officer Response: Additional year-end close procedures have been established. This is in addition to the month-end close procedures and quarterly checklist that has also been established. Estimated Date of Completion: June 30, 2015

Finding # 2014-002 – Preparation of Schedule Expenditures of Federal Awards

Contact Person: Susan Wilson, Chief Financial Officer Response: District personnel will research new programs to ensure proper preparation of the schedule of expenditures of federal awards. Estimated Date of Completion: June 30, 2015

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ALVIN INDEPENDENT SCHOOL DISTRICT Exhibit K-1SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


(2A) (1) (2) (3)Pass Through Federal Grantor/ Federal

Entity Identifying Pass-Through Grantor/ Fund CFDA FederalNumber Program Title Number Number Expenditures

U.S. Department of EducationPassed Through State Department of Education:

14610101020901 Title I, Part A - Improving Basic Programs 211 84.010A 2,641,660$ 13610103020901 Title I, Part D, Subpart 2 215 84.010A 268

146600010209016000 IDEA-B Formula ** 224 84.027A 3,074,209 146610010209016000 IDEA-B Preschool ** 225 84.173A 55,241

14420006020901 Carl D. Perkins Basic Formula 244 84.048A 190,994 14694501020901 Title II, Part A - TPTR 255 84.367A 432,938 14671001020901 Title III, Part A LEP 263 84.365A 318,000

69551302 Summer School LEP 289 84.369A 4,452 Total passed through State Department of Education 6,717,762

Total U.S. Department of Education 6,717,762

U.S. Department of AgriculturePassed Through State Department of Agriculture:

Non cash assistance (commodities):71301401 National School Lunch Program *** 240 10.555 233,556020-901 Child and Adult Care Food Program 240 10.558 253,456020-901 Summer Feeding Program *** 242 10.559 92,579

Agriculture 579,591

Passed Through State Department of Education:71301401 National School Lunch Program *** 240 10.555 4,393,68071401401 School Breakfast Program *** 240 10.553 1,415,289

Total passed through State Department of Education 5,808,969Total U.S. Department of Agriculture 6,388,560

U.S. Department of Health and Human ServicesDirect Program:

None Medicaid Administrative Claims (MAC) 199 93.778 27,979 Total U.S. Department of Health and Human Services 27,979

U.S. Department of DefenseDirect Program:

None ROTC 199 12.000 62,121 Total U.S. Department of Defense 62,121

U.S. Department of JusticeDirect Program:

15040401754 Bulletproof Vest 289 16.607 1,540 Total U.S. Department of Justice 1,540

Total Expenditures of Federal Awards 13,197,962$

** Special Education Cluster*** Child Nutrition Cluster

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ALVIN INDEPENDENT SCHOOL DISTRICT NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

11

Note 1 - Summary of Significant Accounting Policies The District accounts for all awards under federal programs in the General and Special Revenue Funds in accordance with the Texas Education Agency's Financial Accountability System Resource Guide. These programs are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e. revenues and other financing sources) and decreases (i.e. expenditures and other financing uses) in net current assets. The modified accrual basis of accounting is used for these funds. This basis of accounting recognizes revenues in the accounting period in which they become susceptible to accrual, i.e., both measurable and available, and expenditures in the accounting period in which the liability is incurred, if measurable, except for certain compensated absences and claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial resources. “Expenditures are recognized following the cost principles contained in OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments,” wherein certain types of expenditures are not allowable or are limited to reimbursement.” Pass-through entity identifying numbers are presented where available. Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and, accordingly, when such funds are received, they are recorded as deferred revenues until earned. Generally, unused balances are returned to the grantor at the close of specified project periods. Note 2 - Basis of Presentation The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the District under programs of the federal government for the ten months ended June 30, 2014. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Government, and Non-Profit Organizations. Because the schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net position or cash flows of the District. Note 3 - Reconciliation to Basic Financial Statements The following is a reconciliation of expenditures of federal awards program per the Schedule of Expenditures of Federal Awards and revenues reported on Exhibit C-3 on the District’s Comprehensive Annual Financial Report:

Total Expenditures of Federal Awards 13,197,962$ Add:

School Health and Related Services Program 1,515,833 Build America Bonds 466,562

Reconciled Balance 15,180,357$

Related Expenditures on Exhibit C-3

General Fund 1,796,942$ Debt service fund 466,562Special Revenue Funds 12,916,853

15,180,357$

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ALVIN INDEPENDENT SCHOOL DISTRICT NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (continued)

12

Note 4 - General Fund Expenditures

Federal awards reported in the general fund are summarized as follows:

CFDAProgram or Source Number AmountIndirect Costs:

Title I, Part A 84.010A 76,381$ Title I, Part D, Subpart 2 84.010A 8 IDEA-B Formula 84.027A 88,885 IDEA-B Preschool 84.173A 1,673 Career and Technical Basic Grant 84.048A 5,104 ESEA Title II, Part A 84.367A 13,115 Title III, Part A LEP 84.365A 5,843

ROTC and other N/A 62,121 Medicaid Administrative Claims (MAC) 93.778 27,979 School Health and Related Services Program N/A 1,515,833

1,796,942$

DRAFT

489



Agendum

Request to Consider Personnel Items – Employment of Personnel

Category Personnel/Action


Dr. Elizabeth Veloz-Powell, Deputy Superintendent

Attachments Memo related to personnel

Rationale Requested personnel

District Goal(s) Teachers and Staff

Budget Implications

None

Recommendation or

Proposed Motion

That Board approval be granted for requested personnel

490

Documents

ALVIN INDEPENDENT SCHOOL DISTRICT BOARD OF … · BOARD OF TRUSTEES REGULAR BOARD MEETING November 11, 2014 ... Third grade student Knox Potter of Wilder Elementary was cast ... Priscila