Financial Report - Katy ISD Annual Report.pdfSchedule of Expenditures for Computation of Indirect Costs for 2014-2015 ... Annual Financial Report ... includes the Independent Auditors

Comprehensive Annual

Financial Report

Katy Independent School District

6301 South Stadium Lane

EO. Box 159

Katy, Texas 77492-0159

KATY INDEPENDENT

SCHOOL DISTRICT

COMPREHENSIVE ANNUAL

FINANCIAL REPORT

FOR THE YEAR ENDED AUGUST 31, 2013

PREPARED BY

THE FINANCE DEPARTMENT

William L. Moore

Chief Financial Officer

Christopher J. Smith

Business Manager

Elizabeth A. Haven

Accounting Supervisor

Anne M. Faichtinger

Finance Officer

6301 S. Stadium Lane

P.O. Box 159


TABLE OF CONTENTS

Page Exhibit INTRODUCTORY SECTION

Transmittal Letter i

Certificate of Achievement viii

Certificate of Excellence x

Certificate of Board xii

Principal Officials and Advisors xiii

Administrative Organizational Chart xiv

FINANCIAL SECTION

Independent Auditors’ Report 1

Management’s Discussion and Analysis 5

Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position 17 A-1

Statement of Activities 18 B-1

Fund Financial Statements:

Balance Sheet – Governmental Funds 20 C-1

Reconciliation of the Governmental Funds Balance Sheet to the

Statement of Net Position 23 C-2

Statement of Revenues, Expenditures, and Changes in Fund

Balances – Governmental Funds 24 C-3

Reconciliation of the Governmental Funds Statement of Revenues,

Expenditures and Changes in Fund Balances to the Statement

of Activities 26 C-4

Statement of Net Position – Proprietary Funds – Internal Service Funds 27 D-1

Statement of Revenues, Expenses, and Changes in Fund Net

Position – Proprietary Fund Types – Internal Service Funds 28 D-2

Statement of Cash Flows – Proprietary Fund Types – Internal Service Funds 29 D-3

Statement of Fiduciary Assets and Liabilities – Agency Funds 30 E-1

Notes to Financial Statements 31

Required Supplementary Information:

Schedule of Revenues, Expenditures, and Changes in Fund Balances –

Original Budget, Amended Final, and Actual – General Fund 74 F-1

Notes to Required Supplementary Information 76

TABLE OF CONTENTS

Page Exhibit FINANCIAL SECTION (continued)

Other Supplementary Information:

Comparative Statements, Combining Statements, and Budget Comparisons:

General Fund: Comparative Balance Sheet – General Fund 80 G-1

Schedule of Revenues – Budget and Actual – General Fund 81 G-2

Schedule of Expenditures – Budget and Actual – General Fund 82 G-3

Debt Service Fund: Comparative Balance Sheet – Debt Service Fund 89 H-1

Schedule of Revenues, Expenditures, and Changes in Fund Balance –

Original Budget, Amended Final, and Actual – Debt Service Fund 90 H-2

Capital Projects Fund: Comparative Balance Sheet – Capital Projects Fund 94 I-1

Schedule of Revenues, Expenditures, and Changes in Fund Balance –

Capital Projects Fund 96 I-2

Nonmajor Governmental Funds: Combining Balance Sheet – Nonmajor Governmental Funds 102 J-1

Combining Statement of Revenues, Expenditures, and Changes

in Fund Balances – Nonmajor Governmental Funds 110 J-2

Schedule of Revenues, Expenditures, and Changes in Fund Balances

Original Budget, Amended Final, and Actual – Nutrition and Food Service 118 J-3

Internal Service Funds: Combining Statement of Net Position – Internal Service Funds 122 K-1

Combining Statement of Revenues, Expenses, and Changes in Fund Net Position –

Internal Service Funds 123 K-2

Combining Statement of Cash Flows – Internal Service Funds 124 K-3

Fiduciary Funds: Statement of Changes in Fiduciary Assets and Liabilities – Agency Funds 126 L-1

Schedule of Changes in Due to Student Groups – Agency Funds 127 L-2

Capital Assets Used in the Operations of Governmental Funds: Comparative Schedule by Source 130 M-1

Schedule by Function and Activity 131 M-2

Schedule of Changes by Function and Activity 134 M-3

General Long-Term Debt on Governmental Funds: Bond Schedule 138 N-1

Compliance Schedules: Schedule of Delinquent Taxes Receivable 144 O-1

Schedule of Expenditures for Computation of Indirect Costs for 2014-2015 146 O-2

Schedule of Required Responses to Selected School FIRST Indicators 147 O-3

TABLE OF CONTENTS

Page Exhibit STATISTICAL SECTION (Unaudited)

Financial Trends Information: Net Position by Component – Last Ten Fiscal Years 152 I

Changes in Net Position – Last Ten Fiscal Years 154 II

Fund Balances of Governmental Funds – Last Ten Fiscal Years 156 III

Changes in Fund Balances – Last Ten Fiscal Years 158 IV

Revenue Capacity Information: Assessed Value and Actual Value of Taxable Property – Last Ten Fiscal Years 162 V

Property Tax Rates – Direct and Overlapping Governments –

Last Ten Fiscal Years 164 VI

Principal Taxpayers – Current Year and Nine Years Ago 168 VII

Property Tax Levies and Collections – Last Ten Fiscal Years 169 VIII

Debt Capacity Information: Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 172 IX

Ratios of Net General Obligation Bonded Debt Outstanding –

Last Ten Fiscal Years 173 X

Direct and Overlapping Governmental Activities Debt 174 XI

Demographic and Economic Information: Demographic and Economic Statistics – Last Ten Fiscal Years 178 XII

Principal Employers – Current Year and Nine Years Ago 179 XIII

Operating Information:

Full-Time Equivalent District Employees by Position – Last Ten Fiscal Years 182 XIV

Operating Statistics – Last Ten Fiscal Years 184 XV

Teacher Base Salaries – Last Ten Fiscal Years 186 XVI

School Building Information – Last Ten Fiscal Years 188 XVII

Katy ISD Map and Facility Locations 200

INTRODUCTORY SECTION

THIS PAGE INTENTIONALLY LEFT BLANK


Alton L. FraileySUPERINTENDENT

January21,2014

The Board of Trustees and Citizens



P.O. Box 159


Dear Board Members and Citizens:

The Comprehensive Annual Financial Report (CAFR) of the Katy Independent School District (the District)

for the fiscal year ended August 31, 2013 is presented herein. The CAFR is management's report of the

financial operations of the District for the Board of Education (the Board), patrons, taxpayers, employees,

grantor agencies, the Texas Education Agency (TEA), and other interested parties. The Government-wide

Financial Statements in this report provide an overview of the District's governmental activities, while detailed

Fund Financial Statements describe specific activities of each fund group used in accounting for the District's

financial transactions. This report has been prepared by the District's Finance Department in accordance with

the accounting principles and reporting standards promulgated by the Governmental Accounting Standards

Board (GASB) and the official rules published by the Texas Education Agency.

The CAFR is presented in three sections: Introductory, Financial, and Statistical. The Introductory Section

includes this transmittal letter, a list of principal officials and advisors, and an organizational chart. The

Financial Section includes the Independent Auditors' Report, Management's Discussion and Analysis

(MD&A), basic financial statements, required supplementary information, and other supplementary

information. The Statistical Section is designed to reflect social and economic data, financial and fiscal trends,

and demographic information.

District management assumes full responsibility for the completeness, fairness, and accuracy of the

information contained in this report. We believe that the data presented is accurate in all material respects and

is presented in a manner to fairly display the financial position of the District as measured by the financial

activity of its various funds. We also believe that all necessary disclosures are included to enable the reader to

gain full understanding of the District's financial activities.

The Texas Education Code Section 44.008 requires an annual audit of the accounts, financial records, and

transactions of the District by independent certified public accountants selected by the Board. This requirement

has been complied with, and the Independent auditors' Report has been included in this report.

The independent audit of the financial statements of the District was part of a broader, federally mandated

"Single Audit" designed to meet the special needs of the federal grantor agencies. The standards governing

Single Audit engagements require the independent auditor to report not only on the fair presentation of the

financial statements, but also on the District's internal controls and compliance with legal requirements, with

special emphasis on internal controls and compliance with legal requirements involving the administration of

federal awards. These reports are available in the District's separately issued Single Audit Report.

Generally Accepted Accounting Principles (GAAP) requires that management provide a narrative introduction,

overview, and analysis to accompany the basic financial statements in the form of Management's 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 independentauditors.

iKaty Independent School District • 6301 South Stadium Lane • PO Box 159 . Katy, Texas 77492-0159

281-396-6000 • fax: 281-644-1800 • www.katyisd.org

ii

PROFILE OF THE DISTRICT

The Katy Independent School District was established in 1919 and is governed by an elected Board of seven

trustees. The District is a recognized political subdivision of the State of Texas and has the responsibility for

and control over all activities related to public education within its 181 square mile boundary. Located

approximately 16 miles west of downtown Houston, the District has a population of approximately 275,000

and extends beyond the City of Katy into Harris, Fort Bend, and Waller counties. The District and the City of

Katy are governed independently, with each having individual taxing authority. The District is an independent

entity and has no component units. Katy ISD has an enrollment of more than 64,677 students and is comprised

of 58 campuses including 35 elementary schools, 13 junior high schools, 7 comprehensive high schools, a high

school of choice, an alternative learning center, and a career and technology center. The ages and capacities of

these facilities can be found in Exhibit XVII of the Statistical Section.

Katy ISD provides a learning environment that ensures quality education. Its balanced, dynamic curriculum

and cooperative partnership with parents and community prepare students for the changes and challenges of

the future and empowers them to pursue productive and fulfilling lives. The District is a partnership of

teachers, parents, and the community. Because of this working alliance, each year Katy ISD students, staff,

schools, and volunteers win numerous state and national awards.

Attesting to the solid relationship between the District and the community, Katy ISD offers an award winning

Partners in Education program, providing approximately one volunteer for every four children in the District.

Volunteers donated more than 780,000 hours in 2012-13. In addition, Katy ISD is the first school district in the

world to adopt a Junior Achievement (JA) “whole district” approach, providing JA curriculum at each grade

level and at every campus.

Katy ISD teachers have online access to a rigorous and relevant curriculum that is aligned to state standards.

They collaboratively design instruction promoting meaningful learning experiences; encourage connections

between and among the disciplines; and promote academic, emotional, physical, social and behavioral skills.

Relevant tasks are developed to assess student learning through a variety of ways including formative,

summative, authentic, formal, informal, and project-based. Students are encouraged to be actively involved in

using evaluation criteria to self-monitor, self-reflect, and self-evaluate. Individual student data is used to

inform and guide instruction. Student achievement on statewide tests consistently surpasses statewide

achievement levels. Scores for the PSAT, SAT, and ACT rank above both state and national averages. Katy

ISD students consistently win individual and team championships (state, national, and international) in

academics, athletics, and fine arts. Several publications and services, including School Match, a nationwide

service which assists families in matching schools with the needs of their families, consistently rank Katy ISD

among the nation’s top school districts.

Information on the district website provides parents and community members with resources used in

instruction. Campus and teacher websites offer pertinent communication to assist with the parent-teacher-

student connection.

The District is a leader among Texas public school districts in the integration of technology and education and

maintains more than 34,500 centrally managed computers, over 7,000 tablet devices, and approximately 2,900

interactive white boards, as well as mobile wireless labs at every campus. An IP based phone system provides

each classroom with a phone and integration with various infrastructure applications including email. Katy ISD

has implemented a number of web based applications allowing for aggregation of data, in-depth reporting, and

remote access. Based on the great success of its Mobile Learning Device initiative, which began in 2009 and

provided over 2,300 Smartphones to fifth grade students at 18 elementary campuses and 1,200 Smartphones at

three junior high campuses, in 2011-12 Katy ISD implemented a “bring your own device” program at every

campus. The BYOD initiative allows students and teachers to bring their personal wireless devices to school and connect to the filtered, public Wi-Fi. During the 2013-14 school year, Katy is also embarking on a “Digital

Equity Initiative” designed to keep pace with the fast growth of the District by placing additional devices in the

hands of its students at campuses. Katy ISD continues to push the envelope in regards to preparing our

students to learn, live and work in the information age.

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Katy ISD is comprised of dedicated and aspiring professionals with a common goal “to do whatever it takes”

for student success. The emphasis is on meeting the needs of students through engaging instruction, a

supportive classroom environment, and a wide variety of extracurricular activities.

ECONOMIC CONDITION AND OUTLOOK

Local Economy

The area’s economy is diverse with concentrations in healthcare, real estate, oil and gas, commercial building,

retail trade, and service producing industries. Many employers recruit their professional workers from the west

Houston area; therefore, local educational institutions are a key component to producing employees with high

educational backgrounds. The greatest strength of the area’s economy is its human capital. Maintaining the

competitive advantage of having well-educated and highly compensated workers requires a number of

educational initiatives, including the public support of local schools as they enroll larger and more diverse

student bodies and the access to higher education for residents by public schools and businesses working with

local universities.

When one factors in the reputation of Katy ISD’s educational programs as reflected by its academic

achievements, the school district is expected to continue its strong growth and development. Amenities such as

the school system, proximity to employment and activity centers, and an effective transportation system

combine to attract new residents. Fueled by Houston’s robust energy and oil and gas sectors, several large

projects are occurring, including the ongoing construction of several master planned residential developments,

and the opening of facilities by Texas Medical Center staples like Texas Children’s, Methodist and Memorial

Herman Hospitals. In addition, residents will have more mobility options with access to I-10 and the continued

expansion of the Grand Parkway which will stretch across the northwest part of the district from I-10 to

Highway 290. These projects continue to stimulate residential and commercial growth with hotels, restaurants

and shopping centers leading the way.

Growth

According to American Schools and Universities Magazine, Katy ISD is the 64th

largest school district in the

nation and is the fourth fastest growing school district over the past 25 years of the 100 largest districts. With

2012-13 enrollments of 64,677 the District’s growth is showing no signs of stopping. The District’s latest

demographic report predicts that with moderate growth projections, over 86,000 students will attend Katy ISD

schools by the year 2020. There are many reasons for the District’s growth but a community survey revealed

that the primary reason new residents move to the Katy area is because of its schools.

It appears that the population of the District continues to grow and all indicators point to continued growth

over the next decade. This growth makes it imperative for the District to continue to plan wisely for the future.

A need for additional facilities continues to be a financial focal point of the District. A successful Bond

election was held in the fall of 2010 providing $459 million for the construction, renovation and equipping of

facilities and the purchase of land and buses. In August 2013, a new high school was completed along with

two comprehensive high school renovations to support the rapid enrollment growth and facility renewal and

improvement needs. Two new elementary schools are currently under construction and are scheduled to be

complete in the fall of 2014 as well.

The District is an active member of a coalition of fast-growing school districts that work with legislators to

address problems, needs, and challenges specific to districts in a fast-growth environment. Facility funding,

operating costs associated with additional facilities, tax rate limitations, and other problem areas experienced

by growing districts are the focus of the coalition.

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FINANCIAL INFORMATION

Accounting Systems

The Board of Trustees maintains a system of accounting controls designed to assist the administration in

meeting its responsibility for accurately reporting the financial condition of the District. The system is

designed to provide reasonable assurance that assets are safeguarded against loss, theft, or misuse so activities

can be recorded and transacted by the administration for the preparation of the District’s financial statements in

conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the District’s

comprehensive framework of internal controls has been designed to provide reasonable, rather than an

absolute, assurance that the financial statements will be free from material misstatement.

The cost of operating the District’s schools and the revenues to cover these costs are accounted for through the

General Fund. Food service operations and special programs funded by local, state and federal government

grants designed to accomplish a particular objective are accounted for in Special Revenue Funds.

The District accounts for school construction financed by bond sales through a Capital Projects Fund. A

specific portion of the tax rate is dedicated to payment of bond principal and interest. These transactions are

recorded in the Debt Service Fund.

The District has established Internal Service Funds to account for the transactions of its print shop operations,

self-insured workers’ compensation, and health insurance plans. Income for these funds is derived primarily

from charges to governmental funds based on usage.

Agency Funds are included in the CAFR in financial schedules of student activity funds. Accounting for these

funds is managed centrally by the Finance Department, using the same uniform accounting procedures and

guidelines as the General Fund.

The District’s accounting records are maintained on a modified accrual basis for governmental fund types and

a full accrual basis for the proprietary fund types as prescribed by Texas Education Agency Financial

Accountability System Resource Guide (Resource Guide). Additionally, the District has prepared the

Government-wide Financial Statements on the full accrual basis as required by Governmental Accounting

Standards Board Statement No. 34.

Financial data is submitted by the District to the Texas Education Agency through the Public Education

Information Management System (PEIMS). The data is then analyzed, reviewed and presented to the State

Board of Education.

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 budget itself is prepared utilizing a detailed

line item approach for governmental fund types and is prepared in accordance with the budgeting requirements

as outlined in the State Resource Guide. It is the intent of the District that the budgetary process results in the

most effective mix of the educational and financial resources available while attaining the goals and objectives

of the District. This includes the identification and prioritization of as many separate educational and education

support components as reasonably possible. These components are initially identified and prioritized by the

organizational manager most directly responsible and are later reviewed by principals, department heads,

central administrators, a budget committee, and finally the Board of Trustees.

This priority budgeting approach allows the District to establish layers of expenditures that can be matched to the anticipated revenues and desired levels of fund balances. The ultimate decision of the level of funding and

components to be funded is the responsibility of the Board.

v

The budget may be amended during the year to address unanticipated or changing needs of the District.

Changes to functional expenditure categories, revenue objects, or other sources and uses accounts require

Board approval.

Significant Financial Activities

Because of an expected shortfall, the Special Session of the 82nd

Texas Legislature cut public education

revenue by $5.4 billion. As it turns out the State’s biennial revenue exceeded the Comptroller’s projection by

at least $9 billion. The 83rd

Texas Legislature restored much, but not all of the lost funding. The public

education budget saw an increase of $6.2 billion over the last biennium, which included statewide student

growth. SB1 and HB 1025 contain the majority of changes to the state’s funding elements for the upcoming

biennium. The increase was made up of $3.4 billion for the Foundation School Program, $2.2 billion for

enrollment growth, $0.3 billion in various grants, and $0.3 billion for Teachers Retirement.

The District’s total tax base grew over $1.3 billion in 2012-13, an increase of 6.5%. The major growth

continued to be residential with single-family residential values increasing 2.7%. Residential properties,

including multi-family residences, comprised 65.2% of the total tax base, commercial property 29.2%, vacant

land 5.4%, and minerals less than 1%. Property located in Katy ISD is appraised by three County Appraisal

Districts (CAD’s).

The District has an inter-local agreement with the City of Katy to participate in a Tax Increment Reinvestment

Zone (TIRZ). Maintenance and Operation (M&O) taxes collected on real property located within the

reinvestment zone are contributed to the TIRZ and used to service bonded debt on a multipurpose facility

located within the zone. Tax contributions exceeding the annual debt requirements and related expenses are

returned to the District to be used within the TIRZ at the discretion of the District.

Technology is a high priority with expenditures focused on equipping new schools, the replacement of

equipment in existing schools, and providing new and updated software. The technology strategic plan and

long-range facility plan continue to be reviewed and modified as necessary to ensure continued support and

integration of technology both at the campus and support facilities.

State legislation passed in 2005 reduced the District’s M&O tax rate from $1.63 to $1.445 in 2006-07 and to

$1.0866 in 2007-08. School Boards are given local discretion to increase the M&O tax rates by four cents

without holding an election. The District’s 2012-13 M&O tax rate maintains the additional four cent increase

originally adopted in 2006-07.

The tax rates per $100 of assessed value at 100% of market value since the legislative change are as follows:

2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06

General Fund 1.1266$ 1.1266$ 1.1266$ 1.1266$ 1.1266$ 1.1266$ 1.4850$ 1.6300$

Debt Service Fund 0.4000 0.4000 0.4000 0.4000 0.4000 0.4000 0.3300 0.3700

Total 1.5266$ 1.5266$ 1.5266$ 1.5266$ 1.5266$ 1.5266$ 1.8150$ 2.0000$

vi

CASH MANAGEMENT POLICIES AND PRACTICES

It is the practice of the District to pursue an active cash management program which stresses safety of principal

and interest while generating favorable rates of return. This program is maintained in such a fashion so as to

provide a sufficient level of liquidity to support anticipated expenditures without subjecting the District to

material, unfavorable fluctuations of market and interest rate risk. Direct purchases of U.S. Treasury or Agency

securities are competitively bid and invested in accordance with statutory guidelines and local District policy.

The District’s investments also include participation in local government investment pools. This provides

liquidity and additional diversification of the investment portfolio.

Furthermore, the District expedites the receipt of revenues via electronic transfer and defers expenditures,

when appropriate, to maintain maximum use of funds. The total amount of investment income earned by the

District for the fiscal year ended August 31, 2013 was $1.1 million.

RISK MANAGEMENT

The objectives of the risk management program are to safeguard the assets of the District, minimize the

financial effect of potential losses, and to provide a reasonable level of employee benefits at an affordable

funding level. Through these processes, Risk Management will strive to provide a safe and orderly learning

environment for students, employees and patrons.

The District’s property and casualty insurance is provided by national commercial carriers. In addition,

Workers’ Compensation risks are self-funding and include the purchase of an excess Workers’ Compensation

policy for coverage related to excessive Workers’ Compensation claims.

Various types of insurance coverages are made available to the employees. Similar to Workers’ Compensation,

the District’s medical insurance program is partially self-funded and includes the purchase of stop loss

insurance for excessive claims. Portions of the coverages available, such as medical and life insurance are

partially paid by the District. Other available benefits offered to employees on a voluntary basis include dental,

vision, supplemental cancer, disability insurance, personal legal, Section 125 flexible spending accounts for

qualified medical and dependent care expenses, and group term life as well as dependent and supplemental life

policies.

AWARDS AND ACKNOWLEDGEMENTS

Financial Reporting Awards

Katy ISD was awarded the Texas Comptroller of Public Account’s Gold Leadership Award that spotlights

local government financial transparency. The award recognizes districts that keep their books open to the

public; provide clear, consistent pictures of spending; and shares information in a user-friendly format that lets

taxpayers easily access additional information.

For the eleventh consecutive year, the District scored the highest possible rating of “Superior Achievement”

for the Schools FIRST (Financial Integrity Rating System of Texas), a financial accountability system for

Texas School Districts developed by the Texas Education Agency in response to Senate Bill 875 of the 76th

Texas Legislature in 1999. The primary goal of Schools FIRST is to ensure 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 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 August 31, 2012 the thirtieth consecutive year that the District has achieved 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.

vii

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 and

are submitting it to the GFOA to determine its eligibility for certification.

Additionally, the District was 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 year

ended August 31, 2012. This award has also been received for thirty consecutive years. We believe the

Comprehensive Annual Financial Report for the year ended August 31, 2013 continues to conform to the

standards for which this award was granted.

Acknowledgements

We appreciate the support of the Board, the residents of the District, and the business community, all of whom

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 education

programs.

Also, we would like to express an appreciation to all employees in the District 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.

viii

KATY INDEPENDENT SCHOOL DISTRICT

CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN

FINANCIAL REPORTING

The Government Finance Officers Associate of the United States and Canada (GFOA) awarded a Certificate of

Achievement for Excellence in Financial Reporting to Katy Independent School District, Texas for its

Comprehensive Annual Financial Report for the fiscal year ended August 31, 2012.

In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and

efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards.

Such reports must satisfy both accounting principles generally accepted in the United States of America and

applicable legal requirements.

Receiving the award is recognition that a school system has met the highest standards of excellence in

government accounting and financial reporting.

ix

x


CERTIFICATE OF EXCELLENCE IN

FINANCIAL REPORTING

The Association of School Business Officials International (ASBO) awarded a Certificate of Excellence in

Financial Reporting to Katy Independent School District for its Comprehensive Annual Financial Report for

the fiscal year ended August 31, 2012.

The Certificate of Excellence in Financial Reporting is an award of recognition granted by ASBO. The award

certifies that the recipient school system has presented its Comprehensive Annual Financial Report to the

ASBO Panel of Review for critical review and evaluation and that the report was judged to have complied with

the principles and practices of financial reporting recognized by ASBO.

Receiving the award is recognition that a school system has met the highest standards of excellence in school

financial reporting.

xi

Association of School Business Officials

International

The Certificate of Excellence in Financial Reporting Award

is presented to

Katy Independent School District For Its Comprehensive Annual Financial Report (CAFR)

For the Fiscal Year Ended August 31, 2012

The CAFR has been reviewed and met or exceeded

ASBO International’s Certificate of Excellence standards

Ron McCulley, CPPB, RSBO John D. Musso, CAE, RSBA

President Executive Director

xii

Katy Independent School District Harris 101-914

Name of School District County County District

No.

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

district were reviewed and approved for the year ended August 31, 2013 at a meeting of the Board

of Trustees of such school district on the 21st day of January 2014.

Certificate of Board

xiii


COMPREHENSIVE ANNUAL FINANCIAL REPORT

YEAR ENDED AUGUST 31, 2013

PRINCIPAL OFFICIALS AND ADVISORS

Board of Trustees

Rebecca Fox .......................................................................................................................................... President

Volunteer

Joe M. Adams .............................................................................................................................. Vice President

Business Owner

Bryan Michalsky ................................................................................................................................... Secretary

Business Executive

Henry Dibrell ....................................................................................................................................... Treasurer

Business Executive

Charles Griffin ....................................................................................................................... Sergeant-At-Arms

Commercial Pilot

Terry Huckaby ....................................................................................................................................... Member

Educator

Bill Proctor, Ph.D................................................................................................................................... Member

Retiree

Administrative Staff

Alton L. Frailey............................................................................................................................ Superintendent

William L. Moore, CPA ................................................................................................. Chief Financial Officer

Thomas Gunnell ........................................................................................................... Chief Operations Officer

Christine Caskey, Ed.D. ................................................................................................ Chief Academic Officer

John Alawneh, Ph.D. ................................................................................................ Chief Information Officer

Accountants and Advisors

Whitley Penn, L.L.P. ............................................................................................................................ Auditors

Houston, Texas

Andrews Kurth, L.L.P. ................................................................................................................. Bond Counsel

Houston, Texas

RBC Capital Markets ............................................................................................................ Financial Advisors Dallas, Texas

xiv

FINANCIAL SECTION


Houston Offi ce 3411 Richmond AvenueSuite 500Houston, Texas 77046713.621.1515 Main

whitleypenn.com

An IndependentMember of

Dallas Fort Worth Houston

1

INDEPENDENT AUDITORS REPORT To the Board of Trustees Katy Independent School District Katy, 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 Katy Independent School District (the “District”), as of and for the year ended August 31, 2013, 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 of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

To the Board of Trustees


2

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 August 31, 2013, 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.

Emphasis of Matter

As discussed in Note 22 to the financial statements, the District adopted the provisions of GASB

Statement No. 65, Items Previously Reported as Assets and Liabilities, as of August 31, 2013. Our

opinion is not modified with respect to this matter.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that management’s

discussion and analysis on pages 5 through 15 and budgetary comparison information on pages 74

through 76 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 the 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 accompanying supplementary information, such as

the comparative statements, combining statements and budgetary comparisons, capital assets used in the

operations of governmental funds, general long-term debt on governmental funds and Texas Education

Agency (TEA) compliance schedules and other information, such as the introductory and statistical

section, are presented for the purposes of additional analysis and are not a required part of the basic

financial statements.

To the Board of Trustees


3

Other Matters (continued)

Other Information (continued)

The other supplementary information, which includes the comparative statements, combining statements

and budgetary comparisons, capital assets used in the operations of governmental funds, general long-

term debt on governmental funds and TEA compliance schedules are the responsibility of management

and were derived from and relate directly to the underlying accounting and other records used to prepare

the basic financial statements. Such information has been subjected to the auditing procedures applied in

the audit of the basic financial statements and certain additional procedures, including comparing and

reconciling such information directly to the underlying accounting and other records used to prepare the

basic financial statements or to the basic financial statements themselves, and other additional procedures

in accordance with auditing standards generally accepted in the United States of America. In our opinion,

the other supplementary information, which includes the comparative statements, combining statements

and budgetary comparisons, capital assets used in the operations of governmental funds, general long-

term debt on governmental funds and TEA compliance schedules are 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

assurance on them.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated January 21,

2014, on our consideration of the District’s internal control over financial reporting and our tests of its

compliance with certain provisions of laws, regulations, contracts, 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 the internal

control over financial reporting or on compliance. That report is an integral part of an audit performed in

accordance with Government Auditing Standards in considering the District’s internal control over

financial reporting and compliance.

Houston, Texas

January 21, 2014

4


5

MANAGEMENT’S DISCUSSION AND ANALYSIS

Our discussion and analysis of Katy Independent School District’s (the District) financial performance

provides an overview of the District’s financial activities for the twelve months ended August 31, 2013. It

should be read in conjunction with the information in the letter of transmittal and the District’s financial

statements.

FINANCIAL HIGHLIGHTS

As stated in the Government-wide Financial Statements, the assets and deferred outflows of resources of the

District exceeded the liabilities and deferred inflows of resources at August 31, 2013 by $214.5 million. Of this

amount, $142.2 million is unrestricted. The $214.5 million of the District’s total net position represents an

increase of $28.8 million from $185.7 million in fiscal year 2012. Total revenues increased $42.1 million to

$632.6 million in fiscal year 2013.

The District’s Governmental Fund Financial Statements reported a combined ending fund balance in fiscal

year 2013 of $316.1 million. The total fund balance for the General Fund was $149.2 million or 32.8% of the

total General Fund expenditures of $455.2 million. The Debt Service Fund ended its year with a fund balance

of $49.5 million which is to be used for the retirement of debt. The Capital Projects Fund ended the year with a

fund balance of $105.4 million which is restricted for school district construction projects. All Non-Major

Governmental Funds had fund balances totaling $12.0 million.

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 Basic Financial Statements. This

report also contains required supplementary information and other supplementary information in addition to

the basic financial statements themselves, including schedules required by the Texas Education Agency (TEA).

Government-wide Financial Statements

All the District’s services are reported in the Government-wide Financial Statements, including instruction,

student transportation, general administration, school leadership, facilities acquisition and construction, and

child nutrition services. Property taxes, state aid, federal aid, and investment earnings finance most of the

activities. Additionally, all capital and debt financing activities are reported here.

Government-wide Financial Statements are designed to provide readers a broad overview of the District’s

finances in a manner similar to a private-sector business.

Statement of Net Position presents information on all of the District’s assets, liabilities and deferred

outflows/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.

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 causing the change

occurs, regardless of the timing of related cash flows. Therefore, 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

unused leave retirement bonuses).

6

The Government-wide Financial Statements distinguish functions of the District that are principally supported

by taxes and revenues from other functions intended to recover all or a significant portion of their costs

through user fees and charges.

Government-wide Financial Statements can be found on pages 17-19.

Fund Financial Statements

The District uses fund accounting to track specific sources of funding and spending for particular purposes. A

fund is an accounting device 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 the District’s funds can be divided into

three categories: Governmental Funds, Proprietary Funds, and Fiduciary Funds. The Fund Financial

Statements provide more detailed information about the District’s most significant funds, not the District as a

whole.

Governmental Funds are used to account for essentially the same functions reported as government activities

in the Government-wide Financial Statements. Most of the District’s activities are included in governmental

funds which focus on 1) how cash and other financial assets, that can readily be converted to cash, flow in and

out and 2) the balances that are available for spending at year-end. Consequently, the Governmental Fund

Statements provide a detailed short-term view that helps determine whether more or fewer financial resources

can be spent in the near future to finance the District’s programs. Because this information does not encompass

the additional long-term focus of the Government-wide Statements, additional information is provided in

Figure A-1 to explain the relationship between them.

The District maintains 30 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 Capital Projects Fund which are considered to be

major funds. Data from the other government funds are combined in 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 adopted an annual appropriated budget for the General Fund, Debt Service Fund and Food Service

Fund. A budgetary comparison schedule has been provided to demonstrate compliance with these budgets.

The basic Governmental Fund Financial Statements can be found on pages 20-26 of this report.

Proprietary Funds are used to account for operations that are financed similar to those found in the private

sector. These funds provide both short-term and long-term financial information. There are two types of

proprietary funds.

The first type is the Enterprise Fund, which is used to report the same functions presented as business

type activities in the Government-wide Financial Statements. In the Enterprise Fund, the District

charges outside customers a fee for services the District provides. The District has no business-type

activities or enterprise funds.

The second type is the Internal Service Fund, which is used to accumulate and allocate costs internally

among the various functions. Internal Service Funds are used to support governmental activities such

as the District’s Workers’ Compensation, Health Insurance, and Print Shop funds. These three funds

are combined into a single aggregated presentation in the Proprietary Fund Financial Statements found

on pages 27-29 of this report.

7

Fiduciary Funds are used to account for assets held by the District in a trustee capacity or as an agent for

individuals, private organizations, and other funds. The District is responsible for ensuring that the assets

reported in these funds are used for their intended purposes. All of the District’s fiduciary activities are

reported in a separate Statement of Fiduciary Assets and Liabilities and Statement of Changes in Fiduciary

Assets and Liabilities. The Fiduciary Funds are excluded from the activities in the District’s Government-wide

Financial Statements because the District cannot use these assets to finance its operations.

The basic Fiduciary Fund Financial Statements can be found on page 30 of this report.

Notes to the Financial Statements

The notes provide additional information essential to a complete understanding of the data provided in the

Government-wide and Fund Financial Statements. The notes can be found on pages 31-72 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 expenditures 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. Required Supplementary

Information can be found on pages 74-76 of this report.

Other Supplementary Information

Other Supplementary Information provides additional analysis and is not a required part of the basic financial

statements. Other supplementary information includes comparative information on selected funds and

additional detail of the General Fund’s revenues and expenditures. It also contains the combining statements

referred to earlier in connection with non-major governmental funds and certain compliance schedules required

by state regulatory agencies. The Other Supplementary Information can be found on pages 80-147 of this

report.

The remainder of this overview section of the Management’s Discussion and Analysis explains the structure

and contents of each of the statements. Figure A-1 summarizes the major features of the District’s financial

statements, including the portion of the District covered and the types of information contained.

8

Figure A-1. Major Features of the District’s Government-wide and Fund Financial Statement

Type of Statements Government-wide Governmental Funds Proprietary Funds Fiduciary Funds

ScopeEntire District's government

(except fiduciary funds)

The activities of the

District that are not

proprietary or fiduciary

Actvities the District

operates similar to

private business

Instances in which the

District is the trustee or

agent for someone else's

resources

Statement of net position Balance sheet Statement of net positionStatement of fiduciary

assets and liabilities

Statement of revenues,

expenses, and changes in

fund net position

Statement of cash flows

Accounting basis and

measurement focus

Accrual accounting and

economic resources focus

Modified accrual

accounting and current

financial resources focus


economic resources

focus


economic resouces focus

Type of asset/liability

information

All assets and liabilities,

both financial and capital,

short-term and long-term

Only assets expected to

be used and liabilities

that come due during the

year or soon thereafter;

no capital assets

included


both financial and

capital, and short-term

and long-term


both short-term and long-

term

Type of inflow/outflow

information

All revenues and expenses

during year, regardless of

when cash is received or

paid

Revenues for which cash

is received during or

soon after the end of the

year; expenditures when

goods or services have

been received and

payment is due during

the year or soon

thereafter

All revenues and

expenses during year,

regardless of when cash

is received or paid

All revenues and

expenses during year,

regardless of when cash

is received or paid

Funds Statements

Required financial

statementsStatement of activities

Statement of revenues,

expenditures, and

changes in fund balances

Statement of changes in

fiduciary assets and

liabilities

GOVERNMENT-WIDE FINANCIAL ANALYSIS

As noted earlier, net position can serve as a useful indicator of the District’s financial position. The District’s

total net position increased to $214.5 million at August 31, 2013.

At the end of the current fiscal year, 66.3% of the District’s net position is unrestricted and are resources

available to fund the District’s programs in the following year.

An additional $14.0 million, or 6.5% of the District’s net position, reflect its investment in capital assets (e.g.

land, building and improvements, and furniture and equipment) less any related debt used to acquire those

assets still outstanding. These assets are not available for future spending. The remaining balance of net

position represents resources subject to external restrictions on how they may be use. The District’s net

position increased $28.8 million during the current fiscal year. The changes in net position are illustrated in

Table I.

9

2012

2013 (as restated) Change

Current and Other Assets 399,775,164$ 353,569,781$ 46,205,383$

Capital Assets 1,208,885,654 1,154,198,710 54,686,944

Total Assets 1,608,660,818 1,507,768,491 100,892,327

Total Deferred Outflows of Resources 41,050,957 43,651,540 (2,600,583)

Long-Term Liabilities 1,368,519,892 1,298,010,648 70,509,244

Other Liabilities 49,066,771 65,090,040 (16,023,269)

Total Liabilities 1,417,586,663 1,363,100,688 54,485,975

Total Deferred Inflows of Resources 17,650,968 2,596,012 15,054,956

Net Position:

Net Investment in Capital Assets 14,038,245 15,196,333 (1,158,088)

Restricted 58,244,628 56,177,142 2,067,486

Unrestricted 142,191,271 114,349,856 27,841,415

Total Net Position 214,474,144$ 185,723,331$ 28,750,813$

Net Position Summary

Table I

Governmental Activities


The net position of the District’s Governmental Activities increased by $28.8 million. This increase is

evidence that the overall financial condition of the District continues to be strong. The total cost of all

Governmental Activities for the fiscal year ended August 31, 2013 was $604.3 million. Funding for these

Governmental Activities is by specific program revenue or through general revenues such as property taxes

and investment earnings. The following is a summary of the governmental activities:

The total revenues of all governmental activities were $632.6 million. The amount paid by the

District’s taxpayers for these activities through property taxes was $337.4 million or 53.3%.

The District’s tax rate of $1.5266 per $100 of assessed value was unchanged from the previous fiscal

year. With a 6.5% increase in total assessed valuation, maintaining the tax rate increased the District’s

tax revenues $22.3 million in 2013.

The cost of all governmental activities is $604.3 million, an increase of $40.4 million from fiscal year

2012. Expenses increased in most functions to support the increase of 2,567 students.

The amount paid by those directly benefiting from programs was $19.9 million which was $0.3

million more than the prior year.

The amount paid by grants and contributions was $77.3 million which was a 3.3% less than the $80.0

million in 2012.

The cost of governmental activities not directly funded by program revenue was $507.1 million,

which were $28.3 million less than general revenues of $535.3 million. Of the $535.3 million in

general revenues, 63.0% was funded by property taxes and 36.6% was from state aid not restricted to

specific programs.

10

2012

2013 (as restated) Change Change %

Revenues:

Program Revenues:

Charges for Services 19,917,619$ 19,588,686$ 328,933$ 1.68%

Operating Grants and Contributions 77,328,433 79,970,734 (2,642,301) (3.30)

General Revenues:

Property Taxes 337,394,598 315,100,360 22,294,238 7.08

State Revenues 195,933,554 173,734,050 22,199,504 12.78

Other 2,010,963 2,117,630 (106,667) (5.04)

Total Revenues 632,585,167 590,511,460 42,073,707 7.12

Expenses:

Instruction 333,099,527 308,601,797 24,497,730 7.94

Instructional Resources and Media Services 9,015,595 8,327,278 688,317 8.27

Curriculum and Staff Development 7,871,530 6,940,667 930,863 13.41

Instructional Leadership 4,059,587 3,794,703 264,884 6.98

School Leadership 30,333,001 28,168,842 2,164,159 7.68

Guidance, Counseling and Evaluation 21,261,678 19,025,982 2,235,696 11.75

Health Services 5,407,237 4,857,399 549,838 11.32

Student Transportation 17,006,681 16,558,066 448,615 2.71

Food Services 27,993,364 25,891,645 2,101,719 8.12

Cocurricular/Extracurricular Activities 12,246,444 11,543,395 703,049 6.09

General Administration 9,484,422 9,735,761 (251,339) (2.58)

Plant Maintenance and Operations 47,106,425 45,070,541 2,035,884 4.52

Security and Monitoring 5,388,225 4,880,858 507,367 10.40

Data Processing Services 12,031,043 10,973,675 1,057,368 9.64

Community Services 1,036,286 1,278,824 (242,538) (18.97)

Interest and Issuance Costs on Long-Term Debt 54,643,432 48,891,235 5,752,197 11.77

Bond Issuance Costs and Fees 1,015,900 4,243,024 (3,227,124) (76.06)

Facilities Acquisition and Construction 1,502,445 2,102,576 (600,131) (28.54)

Payments to Shared Services Arrangements 204,065 232,862 (28,797) (12.37)

Payments to JJAEP 18,088 32,924 (14,836) (45.06)

Payments to Tax Increment Reinvestment Zone 1,122,877 452,731 670,146 148.02

Payments to Appraisal District 2,455,136 2,348,096 107,040 4.56

Total Expenses 604,302,988 563,952,881 40,350,107 7.15

Increase (Decrease) in Net Position

Before Special Items 28,282,179 26,558,579 1,723,600 6.49

Special Items 468,634 3,175,479 (2,706,845) (85.24)

Increase (Decrease) in Net Position 28,750,813 29,734,058 (983,245) (3.31)

Beginning Net Position (as restated) 185,723,331 155,989,273 29,734,058 19.06

Ending Net Position 214,474,144$ 185,723,331$ 28,750,813$ 15.48%

Changes in Net Position

Table II


11

Figure A-2

Revenues by Source – Governmental Activities

53.3%

31.0%

12.2%

3.1%

0.4%

Property Taxes

State Aid Formula

Operating Grants & Contributions

Charges for Services

Other

Figure A-3

Program Expenses by Major Function – Governmental Activities

In Millions

$350.0

$34.4

$83.9

$9.5

$64.5

$6.3$55.6

$0

$50

$100

$150

$200

$250

$300

$350

$400

Instruction & Instructional

Related

Instructional & School

Leadership

Support Services - Student

Administrative Support Services

Support Services - Non-Student

Ancillary Services

Debt Service

12

FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS

Governmental Funds

The District’s accounting records for general governmental operations are maintained on a modified accrual

basis as prescribed by the Financial Accountability System Resource Guide, Texas Education Agency, with the

revenues being recorded when available and measurable to finance expenditures of the fiscal period.

Expenditures are recorded when services or goods are received and the fund liabilities are incurred. The

general governmental operations include the following major funds: General, Debt Service, and Capital

Projects.

Revenues from all Governmental Funds totaled $631.0 million for the fiscal year ended August 31, 2013, an

increase of 7.5% from the prior fiscal year. Local revenues, including property taxes, continued to be the

largest source of revenue received by the District and increased $24.0 million over fiscal year 2012. The

increase in State revenues of $22.8 million or 11.3% from fiscal year 2012 was primarily a result of the District

going back to state formulas, increased property values and the increase in enrollment. Federal revenues

decreased $2.6 million or 5.9%.

Expenditures for governmental operations totaled $692.1 million during fiscal year 2013, a decrease of 8.7%

from fiscal year 2012. This decrease was a result of the decreased expenditures for capital projects of $102.0

million.

The Governmental Funds reported a combined fund balance of $316.1 million, an increase of $47.4 million

from the combined fund balances for 2012. Changes to the combined fund balances include a $22.3 million

increase in the General Fund, an increase in the Debt Service Fund of $5.7 million, an increase in the Capital

Projects fund of $20.0 million and a decrease of $0.5 million in the Non-Major Governmental Funds. Out of

the combined fund balances, $119.5 million constitutes unassigned fund balances. Of the remainder of the fund

balance, $2.7 million is nonspendable, $163.8 million is restricted for items such as debt service, food services,

and capital projects, $7.8 million is committed to self-funded insurance and campus activity funds, and $22.3

million is assigned for the opening of new schools, land purchases, employer mandate provisions of the Patient

Protection and Affordable Care Act, and future technology needs.

The General Fund is the primary operating fund of the District. The most significant factor contributing to the

increase of fund balance was the under spending of payroll and related costs combined with campus and

departments under spending their budgets. At the end of the current fiscal year, the General Fund’s fund

balance was $149.2 million. Unassigned fund balance represents 26.2% of the total General Fund

expenditures, and total fund balance represents 32.8%.

The Debt Service Fund ended the year with a fund balance of $49.5 million, all of which was restricted for the

payment of debt service. The district makes semi-annual debt service payments in February and August of

each year. Debt service payments including bond fees for the year ended August 31, 2013 were $90.9 million.

The Capital Projects Fund ended the year with a fund balance of $105.4 million which is an increase of $20.0

million over 2012. This increase in fund balance was due to construction expenditures associated with ongoing

construction projects along with a bond sale late in the year. The entire fund balance is restricted for future

construction.

13

Proprietary Funds

The District maintains three internal service funds. Information is presented separately in the Proprietary Funds

Combining Statement of Net Position and in the Proprietary Funds Combining Statement of Revenues,

Expenses, and Changes in Fund Net Position for the Health Insurance, Workers’ Compensation, and Print

Shop Funds. Net position in these funds as of August 31, 2013 was $6.2 million. Of this amount, $0.3 million

was for Health Insurance, $3.3 million was for Workers’ Compensation and $2.6 million for the Print Shop.

Net position for the fiscal year decreased $0.6 million.

GENERAL FUND BUDGETARY HIGHLIGHTS

Over the course of the year, the District revised its budget several times. Revisions to the revenue budget were

necessary due to changes in estimates for local and state revenue based on updated information relating to tax

collections, earnings on investments, student attendance and rental income. Revisions to the expenditure

budget were made to reflect actual expenditures associated with staffing, fluctuation in spending needs, and

various other unforeseen occurrences.

The District’s major budget amendments presented to the Board of Trustees throughout the year are

summarized as follows:

The total General Fund revenue budget was increased by $11.8 million.

The local revenue budget increased by $4.7 million. Current and delinquent property tax collections

increased $4.4 million and associated penalty and interest increased $0.1 million. Other local revenue

increased $0.2 million.

The state revenue budget increased $6.9 million primarily due growth in attendance that was

significantly more than budgeted. In addition, the growth in special populations which generate more

state funding was higher than projected.

Federal revenue increased by $0.3 million. Federal Build America Bonds (BABs) revenue decreased

$0.2 because of Federal Sequestration and the eRate budget was reduced by $0.5 million because

qualifying reimbursements were down. However, these decreases were more than offset with $0.9

million in additional SHARS revenues and a modest $0.1 million in other federal revenues.

The district increased the expenditure budget by $6.4 million throughout the year. These increases

were made to purchase land, replace white fleet vehicles, furniture for growth and to purchases start-

up supplies for the district’s seventh comprehensive high school, Obra Tompkins High School.

After revenue and expenditure budgets were adjusted as described above, the District’s actual General Fund

amounts differed from the final budget as reported in the budgetary comparison on pages 74-75 of this report.

This difference is primarily due to the following factors:

Final revenues realized were over budgeted levels by $3.1 million. Revenues from local sources

exceeded the budget by $0.8 million because of high tax collection rates and strong rental income,

while revenues from state sources were $2.3 million higher than budgeted. The increase in state

revenue was because of recognizing local property value adjustments in addition to adjustments by

TEA. Both of these increased prior year’s state funding amounts.

Expenditures were $8.7 million less than final budgeted amounts. Remaining unspent were payroll

and related costs of $5.1 million, supplies of $2.6 million, contracted services of $0.6 million, other

operating expenditures and capital of $0.4 million.

14

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets

The District has invested $1.2 billion, net of depreciation, in a broad range of capital assets, including land,

equipment, buildings, and vehicles. This amount represents a net increase (including additions, deductions and

depreciation) of $54.7 million from the prior year.

2012

2013 (as restated) Change Percentage

Land 75,846,324$ 71,402,749$ 4,443,575$ 6.22%

Land Improvements 25,347,945 29,066,219 (3,718,274) (12.79)

Buildings and Improvements 923,757,928 854,189,676 69,568,252 8.14

Furniture and Equipment 71,667,579 67,968,059 3,699,520 5.44

Vehicles 19,821,668 21,438,112 (1,616,444) (7.54)

Construction in Progress 72,187,072 89,672,665 (17,485,593) (19.50)

Assets Under Capital Lease 20,257,138 20,461,229 (204,091) (1.00)

Total Capital Assets, Net of Depreciation 1,208,885,654$ 1,154,198,709$ 54,686,945$ 4.74%

Capital Assets (net of depreciation)

Table III


The increase in capital assets net of depreciation was due mainly to construction in progress as a result of the

bond election passed in November 2010. In addition, the acquisition and improvements to land combined with

the addition of furniture, equipment and vehicles all led to the increase in capital assets. More detailed

information about the District’s capital assets is presented in Note 8 to the financial statements.

Debt Administration

At the end of the fiscal year the District had total debt outstanding of $1.4 billion as illustrated in Table IV.

This amount consists primarily of general obligation bonds backed by the full faith of the State of Texas’s

Permanent School Fund. The District’s debt includes capital appreciation bonds which accrete interest until

their maturity date. Accreted interest on these capital appreciation bonds totaled $9.8 million at the end of the

fiscal year. Included in the outstanding debt of the District for financial reporting purposes is the Capital Lease

for the multi-purpose complex constructed for the District by the Katy Development Authority through a Tax

Increment Reinvestment Zone (TIRZ). The $16.2 million capital lease will be paid from property taxes

collected through the TIRZ.

The District’s bonds are rated AAA by Standard & Poor’s (S&P) and Aaa by Moody’s Investor Service

(Moody’s) based on the guarantee of the Permanent School Fund of the State of Texas. The District’s

underlying ratings are AA by Standard & Poor’s and Aa2 by Moody’s Investor Service.

More detailed information about the District’s debt is presented in Notes 9 and 10 to the financial statements.

15

2013 2012 Change

General Obligation Bonds 1,232,844,961$ 1,165,099,961$ 67,745,000$

Accreted Interest on Capital

Appreciation Bonds 9,827,986 9,409,109 418,877

Capital Leases 16,245,000 17,360,000 (1,115,000)

Compensated Absences 20,700,459 19,516,454 1,184,005

Imputed Borrowing 41,050,957 43,651,540 (2,600,583)

Premium on Bonds Issued 47,850,529 42,017,423 5,833,106

Total Outstanding Debt 1,368,519,892$ 1,297,054,487$ 71,465,405$

Table IV

Outstanding Debt


ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES

As part of the budget development process the District’s management has taken into consideration all the

factors that drive school district budgets: enrollments, property values, state funding, facility needs and the

local economy.

The State’s increase in funding public education combined with an anticipated 3.7% increase in enrollment are

projected to increase the District’s state funding for 2013-14 by approximately $24 million or just over 11%.

The district remains a “Formula” District, enabling the District to benefit from growth in property values and

the resulting increase in budgeted tax revenues of $21 million.

Although growth has slowed slightly, Katy ISD continues to be one of the fastest growing school districts in

the Houston metropolitan area, growing at an average of 5.0% from 2004 to 2013 with the 2013-14 enrollment

projected to be 67,064 students. The District has also experienced significant growth in property values over

the past ten years with assessed values increasing at an average of 8.4% annually. Unemployment continues to

remain low in all geographical areas of the District.

All of these factors were considered when adopting the 2013-14 budgets. With a total tax rate of $1.5266, the

District estimates budgeted revenues of $648.8 million and appropriations of $636.3 million, of which $525.6

million of revenues and $512.0 million of expenditures are in the General Fund. There are no major initiatives

or new programs included in the 2013-14 budgets.

CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a

general overview of the District’s finances. Questions concerning any of the information provided in this

report or requests for additional information should be addressed to the Chief Financial Officer, Katy I.S.D.,

6301 South Stadium Lane, P.O. Box 159, Katy, Texas 77492.

16


17


STATEMENT OF NET POSITION Exhibit A-1

AUGUST 31, 2013

Data Primary Government

Control Governmental

Codes Activities

ASSETS

1110 Cash and Investments 357,654,417$

1225 Property Taxes Receivable (net) 9,627,668

1240 Due from Other Governments 11,112,389

1290 Other Receivables (net) 1,538,766

1300 Inventories, at cost 1,473,268

1410 Prepaid Items 1,453,168

Capital Assets not Being Depreciated:

1510 Land 75,846,324

1580 Construction in Progress 72,187,072

Capital Assets, net of Accumulated Depreciation:

1511 Land Improvements, net of Accumulated Depreciation 25,347,945

1520 Buildings and Improvements, net of Accumulated Depreciation 923,757,928

1530 Furniture and Equipment, net of Accumulated Depreciation 71,667,579

1540 Vehicles, net of Accumulated Depreciation 19,821,668

1550 Assets Under Capital Lease, net of Accumulated Depreciation 20,257,138

1990 Interest Rate Swaps 16,915,488

1000 Total Assets 1,608,660,818

DEFERRED OUTFLOWS OF RESOURCES

1700 Deferred Outflows: Amount on Refunding 41,050,957

1000 Total Deferred Outflows of Resources 41,050,957

LIABILITIES

2110 Accounts Payable 34,078,250

2140 Interest Payable 2,790,944

2150 Payroll Deductions and Withholdings 1,035,754

2160 Accrued Wages Payable 5,665,895

2180 Due to Other Governments 2,690,626

2200 Accrued Expenses 2,422,136

2300 Unearned Revenue 383,166

Noncurrent Liabilities:

2501 Compensated Absences Due within One Year 564,643

2501 Bonds and Debt Due within One Year 36,652,444

2501 Capital Lease Due within One Year 1,150,000

2501 Imputed Borrowing Due within One Year 2,600,583

2502 Bonds and Debt Due in More than One Year 1,244,043,046

2502 Capital Lease Due in More than One Year 15,095,000

2502 Compensated Absences Due in More than One Year 20,135,816

2502 Imputed Borrowing Due in More than One Year 38,450,374

2590 Accreted Interest on Capital Appreciation Bonds 9,827,986

2000 Total Liabilities 1,417,586,663

DEFERRED INFLOWS OF RESOURCES

2600 Deferred Inflows: Interest Rate Swap 16,915,488

2600 Deferred Inflows: Net Gain/Loss on Refunding 735,480

Total Deferred Inflows of Resources 17,650,968

NET POSITION

3200 Net Investment in Capital Assets 14,038,245

Restricted for:

3820 Food Service 5,201,710

3850 Debt Service 49,056,113

3890 Tax Increment Zone 3,840,293

3890 Medicaid Administrative Claiming 146,512

3900 Unrestricted 142,191,271

3000 Total Net Position 214,474,144$

See Notes to Financial Statements

18


STATEMENT OF ACTIVITIES


Program Revenues

Data Operating

Control Charges for Grants and

Codes Functions/Programs Expenses Services Contributions

Governmental Activities:

0011 Instruction 333,099,527$ 1,033,348$ 32,223,502$

0012 Instructional Resources and Media Services 9,015,595 2,249 1,100,774

0013 Curriculum and Staff Development 7,871,530 3,136 2,699,397

0021 Instructional Leadership 4,059,587 541 565,063

0023 School Leadership 30,333,001 2,492 1,901,844

0031 Guidance, Counseling, and Evaluation Services 21,261,678 3,326 2,843,657

0033 Health Services 5,407,237 260 10,091,310

0034 Student Transportation 17,006,681 44,170 600,281

0035 Food Services 27,993,364 12,699,017 12,133,561

0036 Cocurricular/Extracurricular Activities 12,246,444 2,252,426 1,306,391

0041 General Administration 9,484,422 219,816 585,959

0051 Plant Maintenance and Operations 47,106,425 2,232,762 1,980,824

0052 Security and Monitoring Services 5,388,225 15,548 231,106

0053 Data Processing Services 12,031,043 32,569 322,242

0061 Community Services 1,036,286 156,057 535,609

0072 Interest on Long-Term Debt 54,643,432 7,716,958

0073 Bond Issuance Costs and Fees 1,015,900

0081 Facilities Acquisition and Construction 1,502,445 1,219,902 285,890

0093 Payments Related to Shared Services Arrangements 204,065 204,065

0095 18,088

0097 Payments to Tax Increment Reinvestment Zone 1,122,877

0099 Payments to Appraisal Districts 2,455,136

TG Total Governmental Activities 604,302,988 19,917,619 77,328,433

TP TOTAL PRIMARY GOVERNMENT 604,302,988$ 19,917,619$ 77,328,433$

Data

Control

Codes

General Revenues and Special Items:

MT Property Taxes, Levied for General Purposes

DT Property Taxes, Levied for Debt Service

SF State Aid - Formula Grants Unrestricted

IE Investment Earnings

MI Miscellaneous

S1 Insurance Recoveries

S2 Net Gain on Disposal of Assets

TR Total General Revenues and Special Items

CN Change in Net Position

NB Net Position - Beginning

PA Prior period adjustments

NE Net Position - Ending

See Notes to Financial Statements.

Payments to Juvenile Justice Alternative Education Programs

19

Exhibit B-1

Net (Expense)

Revenue and

Changes in

Net Position

Governmental

Activities

(299,842,677)$

(7,912,572)

(5,168,997)

(3,493,983)

(28,428,665)

(18,414,695)

4,684,333

(16,362,230)

(3,160,786)

(8,687,627)

(8,678,647)

(42,892,839)

(5,141,571)

(11,676,232)

(344,620)

(46,926,474)

(1,015,900)

3,347

(18,088)

(1,122,877)

(2,455,136)

(507,056,936)

(507,056,936)

248,945,316

88,449,282

195,933,554

1,140,128

870,835

191,330

277,304

535,807,749

28,750,813

188,522,021

(2,798,690)

214,474,144$

20


BALANCE SHEET

GOVERNMENTAL FUNDS

AUGUST 31, 2013

Data

Control Debt

Codes General Service Fund

ASSETS

1110 Cash and Investments 165,863,809$ 46,191,586$

Receivables:

1225 Property Taxes Receivable (net) 7,289,430 2,338,238

1240 Due from Other Governments 1,920,988 214,039

1250 Accrued Interest 5,990

1260 Due from Other Funds 3,177,829

1290 Other Receivables 1,270,708

1300 Inventories, at cost 1,066,712

1410 Prepaid Items 1,386,909

1000 Total Assets 178,798,556$ 51,927,682$

LIABILITIES

Current Liabilities:

2110 Accounts Payable 9,250,922$ 80,625$

2150 Payroll Withholding Payable 1,035,754

2160 Accrued Wages Payable 5,167,525

2170 Due to Other Funds 3,610,501

2180 Due to Other Governments 2,690,626

2200 Accrued Expenditures 342,694

2300 Unearned Revenues 205,242

2000 Total Liabilities 22,303,264 80,625


2600 Unavailable Revenue - Property Taxes 7,289,430 2,338,238

FUND BALANCES

Fund Balances:

3410/30 Nonspendable 2,453,621

3450-90 Restricted 49,508,819

3510-45 Committed 5,000,000

3550-90 Assigned 22,273,650

3600 Unassigned 119,478,591

3000 Total Fund Balances 149,205,862 49,508,819

4000 Total Liabilities, Deferred Inflows,

and Fund Balances 178,798,556$ 51,927,682$


21

Exhibit C-1

Non-Major Total

Capital Governmental Governmental

Projects Fund Funds Funds

124,543,317$ 10,734,461$ 347,333,173$

9,627,668

4,030,284 6,165,311

5,990

174,433 3,802,454 7,154,716

257,901 1,528,609

329,238 1,395,950

64,460 1,451,369

124,717,750$ 19,218,798$ 374,662,786$

19,271,934$ 2,505,814$ 31,109,295$

1,035,754

10,531 487,839 5,665,895

4,055,191 7,665,692

2,690,626

342,694

177,924 383,166

19,282,465 7,226,768 48,893,122

9,627,668

329,238 2,782,859

105,435,285 8,859,277 163,803,381

2,803,515 7,803,515

22,273,650

119,478,591

105,435,285 11,992,030 316,141,996

124,717,750$ 19,218,798$ 374,662,786$

22


23


RECONCILIATION OF THE GOVERNMENTAL FUNDS Exhibit C-2

BALANCE SHEET TO THE STATEMENT OF NET POSITION

AUGUST 31, 2013

Total Fund Balances - Governmental Funds (from Exhibit C-1) 316,141,996$

Amounts reported for governmental activities in the Statement of Net Position are

different because:

Capital assets used in governmental activities are not financial resources and therefore

are not reported as assets in governmental funds. 1,208,239,237

Revenues in the Statement of Activities that do not provide current financial resources

are not reported as revenues in the funds. 4,948,877

Deferred revenue on property taxes receivable and penalty and interest on delinquent

taxes have been levied or assessed and are due this year but are not available soon

enough to pay for current period's expenditures and are deferred and added back to Fund

Balances for Statement of Net Position. 9,627,668

Deferred inflows from gain/loss on refundings are not due and payable in the current

period, and therefore are not reported as liabilities in the funds. (735,480)

Internal Service Funds are used by the District's management to charge the costs of the

various insurance programs and printing operations to the individual funds. The assets

and liabilities of the Internal Service Fund are included in the Government-wide

Statement of Net Position. 6,169,031

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:

Bonds payable and premiums (1,280,695,490)

Capital Lease (16,245,000)

Compensated Absences - Long-term Portion (20,357,765)

Accreted Interest on Capital Appreciation Bonds (9,827,986)

Interest Payable (2,790,944)

Net Position of Governmental Activities 214,474,144$


24


STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS


Data

Control Debt

Codes General Service Fund

REVENUES

5700 Local, Intermediate, and Out-of-State 256,010,351$ 88,649,614$

5800 State Program Revenues 216,400,712 4,619,828

5900 Federal Program Revenues 9,823,527

5020 Total Revenues 482,234,590 93,269,442

EXPENDITURES

Current:

0011 Instruction 289,637,973

0012 Instructional Resources and Media Services 6,202,143

0013 Curriculum and Staff Development 5,313,897

0021 Instructional Leadership 3,594,095

0023 School Leadership 27,900,487

0031 Guidance, Counseling, and Evaluation Services 18,387,376

0033 Health Services 4,351,710

0034 Student Transportation 13,552,241

0035 Food Services

0036 Cocurricular/Extracurricular Activities 9,057,668

0041 General Administration 8,805,920

0051 Plant Maintenance and Operations 45,048,728

0052 Security and Monitoring Services 5,427,576

0053 Data Processing Services 8,773,599

0061 Community Services 511,587

Debt Service:

0071 Principal on Long-Term Debt 35,255,000

0072 Interest on Long-Term Debt 55,662,253

0073 Bond Issuance Costs and Fees 31,111

0081 Capital Outlay-Facilities Acquisition and Construction 3,492,435

Intergovernmental Charges:

0093 Payments Related to Shared Service Arrangements

0095 Payments to J.J.A.E.P. 18,088

0097 Payments to Tax Increment Reinvestment Zone 2,690,626

0099 Other Intergovernmental Charges 2,455,136

6030 Total Expenditures 455,221,285 90,948,364

Excess (Deficiency) of Revenues

1100 Over (Under) Expenditures 27,013,305 2,321,078

OTHER FINANCING SOURCES/(USES)

7911 Capital-Related Debt Issued (Regular Bonds)

7912 Sale of Real and Personal Property 65,781

7915 Transfers In 626,394 3,361,265

7916 Premium on Issuance of Bonds

8911 Transfers Out (5,597,130)

7080 Total Other Financing Sources/(Uses) (4,904,955) 3,361,265

SPECIAL ITEMS

7918 Insurance Recoveries 191,330

1200 Net Change in Fund Balances 22,299,680 5,682,343

0100 Fund Balance - September 1 (Beginning) 126,906,182 43,826,476

3000 Fund Balance - August 31 (Ending) 149,205,862$ 49,508,819$


25

Exhibit C-3

Non-Major Total

Capital Governmental Governmental

Projects Fund Funds Funds

264,415$ 19,752,428$ 364,676,808$

4,431,128 225,451,668

3,161,027 27,888,921 40,873,475

3,425,442 52,072,477 631,001,951

17,673,517 307,311,490

817,247 7,019,390

2,483,540 7,797,437

387,435 3,981,530

483,145 28,383,632

1,922,610 20,309,986

277,787 4,629,497

82,747 13,634,988

24,583,868 24,583,868

867,921 9,925,589

8,919 8,814,839

77,744 45,126,472

7,824 5,435,400

1,865 8,775,464

520,049 1,031,636

35,255,000

55,662,253

984,789 1,015,900

92,979,002 1,599,533 98,070,970

204,065 204,065

18,088

2,690,626

2,455,136

93,963,791 51,999,816 692,133,256

(90,538,349) 72,661 (61,131,305)

103,000,000 103,000,000

14,471 80,252

3,987,659

7,779,789 7,779,789

(264,135) (626,394) (6,487,659)

110,515,654 (611,923) 108,360,041

191,330

19,977,305 (539,262) 47,420,066

85,457,980 12,531,292 268,721,930

105,435,285$ 11,992,030$ 316,141,996$

26


RECONCILIATION OF THE GOVERNMENTAL FUNDS SATEMENT OF Exhibit C-4

REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE TO

THE STATEMENT OF ACTIVITIES


Net Change in Fund Balances - Total Governmental Funds (from Exhibit C-3) 47,420,066$

Amounts reported for governmental activities in the Statement of Activities (Exhibit B-1) are

different because:

Internal Service Funds are used by management to charge the cost of various insurance programs

and printing operations to individual funds. The net activity of the Internal Service Funds is

included in the entity-wide statements. (625,287)

Governmental funds report capital outlays as expenditures. However, in the Statement of

Activities, the costs of those assets are allocated over their estimated useful lives as depreciation

expense. 98,666,580

Depreciation is not recognized as an expense in governmental funds, since it does not require the

use of current financial resources. The net effect of the current year's depreciation is to decrease

net assets. (44,262,383)

Repayment of bond and capital lease principal is recorded as an expenditure in the governmental

funds, but the repayment reduces long-term liabilities in the Statement of Net Position. 36,370,000

Issuance of long-term debt, plus premiums and interest is recorded as current financial resources

in governmental funds and is shown as an increase in long-term debt in the government-wide

statements. (110,779,789)

Interest accrual on capital appreciation bonds and interest accruals through year end on bonds are

not recorded in the Fund Financial Statements but are accrued in the entity wide statements. (695,797)

Net gain on disposal of assets is not recorded in the Fund Financial Statements but is included in

the entity-wide statements. 197,052

Property taxes and penalty and interest receivable at year end will not be collected for several

months after the District's fiscal year ends, so they are not considered available revenues and are

deferred in the governmental funds financial statements. Deferred tax revenues are adjusted and

are recorded as revenues and beginning net position for the Government-wide Statements. The

amount of change in the current year Statement of Activities due to deferred taxes are deducted

from the fund basis financials for the Government-wide Statement of Activities. (242,151)

Amortization of deferred losses on refunding issues, and bond premiums are recorded in the

Government-wide Statement of Activities. 2,167,364

Revenues that are earned but do not provide current financial resources are recorded in the

Statement of Activities but are not in the Fund Financial Statements. 4,948,877

Revenues received in the current year but earned in the prior year are recorded in the Fund

Financial Statements but were in the Statement of Activities in the prior year. (3,162,831)

Increase in long-term compensated absence liability is included in the entity-wide statements. (1,250,888)

Change in Net Position of Governmental Activities (see Exhibit B-1) 28,750,813$


27


STATEMENT OF NET POSITION Exhibit D-1

PROPRIETARY FUNDS

INTERNAL SERVICE FUNDS

AUGUST 31, 2013

Data


Codes Activities

ASSETS

Current Assets:

1110 Cash and Cash Equivalents 10,321,244$

1260 Due from Other Funds 510,976

1290 Other Receivables 4,167

1300 Inventories 77,318

Total Current Assets 10,913,705

Noncurrent Assets:

Capital Assets:

1520 Building and Improvements 2,516

1540 Furniture and Equipment 1,648,561

1573 Accumulated Depreciation (1,004,660)

Total Non Current 646,417

1000 Total Assets 11,560,122

LIABILITIES


2110 Accounts Payable 2,968,955

2200 Accrued Expenses 2,422,136

2000 Total Liabilities 5,391,091

NET POSITION

3200 Invested in Capital Assets 646,417

3900 Unrestricted 5,522,614

3000 Total Net Position 6,169,031$


28


STATEMENT OF REVENUES, EXPENSES AND CHANGES IN Exhibit D-2

FUND NET POSITION

PROPRIETARY FUND TYPES



Data


Codes Activities

OPERATING REVENUES

5754 Charges for Services 40,392,101$

5020 Total Operating Revenues 40,392,101

OPERATING EXPENSES

6100 Salary and Benefits 46,718

6200 Administrator Fees 7,028,005

6200 Insurance Premiums 47,382

6200 Claims Expenses 34,757,225

6200 Repair and Maintenance Expense 18,145

6200 Equipment Rental 114,048

6300 Supplies 1,623,242

6400 Miscellaneous Operating Expenses 7,645

6400 Depreciation 235,193

6030 Total Operating Expenses 43,877,603

1300 Operating Income (Loss) (3,485,502)

NONOPERATING REVENUES

5742 Investment Income 39,325

Total Nonoperating Revenue 39,325

Income (Loss) before Contributions and Transfers (3,446,177)

7900 Capital Contributions - Capital Assets 320,890

7900 Transfers In 2,500,000

1300 Change in Net Position (625,287)

0100 Total Net Position - September 1 (Beginning) 6,794,318

3000 Total Net Position - August 31 (Ending) 6,169,031$


29


STATEMENT OF CASH FLOWS Exhibit D-3

PROPRIETARY FUND TYPES



Governmental

Activities

CASH FLOWS FROM OPERATING ACTIVITIES

Cash Receipts from Internal Services Provided 39,891,734$

Cash Payments to Suppliers (1,661,842)

Cash Payments to Pay Claims (33,898,341)

Cash Payments to Contract Adminstrators (7,204,298)

Cash Payments to Employees (46,718)

Net Cash (Used) by Operating Activities (2,919,465)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES

Transfers from Other Funds 2,500,000

Net Cash Provided by Noncapital Financing Activities 2,500,000

CASH FLOWS FROM INVESTING ACTIVITIES

Interest Received 39,325

Net Cash Provided by Investing Activities 39,325

Net (Decrease) in Cash and Cash Equivalents (380,140)

Cash and Cash Equivalents at Beginning of Year 10,701,384

Cash and Cash Equivalents at End of Year 10,321,244$

RECONCILIATION OF OPERATING (LOSS) TO NET CASH

(USED) BY OPERATING ACTIVITIES

Operating Income (Loss) (3,485,502)$

Adjustments to Reconcile Operating Income to Net Cash

Provided by Operating Activities

Depreciation 235,193

Change in Assets and Liabilities:

(Increase) Decrease in Receivables 10,608

(Increase) Decrease in Inventories 10,748

Increase (Decrease) in Accounts Payable (61,351)

Increase (Decrease) in Interfund Payables (510,976)

Increase (Decrease) in Accrued Expenses 881,815

Net Cash (Used) by Operating Activities (2,919,465)$

Noncash Investing, Capital, and Financing Activities

Contributions of Capital Assets from Government 320,890$


30


STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES Exhibit E-1

AGENCY FUNDS

AUGUST 31, 2013

Data

Control

Codes Agency Funds

ASSETS

1110 Cash and Investments 4,748,224$

1000 Total Assets 4,748,224$

LIABILITIES

2110 Accounts Payable 368,184$

2160 Accrued Wages 1,575

2190 Due to Student Groups 4,378,465

2000 Total Liabilities 4,748,224$



31

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Katy Independent School District (the District) was formed in February 1919 by a special act of the

Texas State Legislature. The District is an independent public educational agency operating under applicable

laws and regulations of the State of Texas. A seven member Board of Trustees elected to staggered three-

year terms by the District’s residents autonomously governs the District. The District prepares its Basic

Financial Statements in conformity with Generally Accepted Accounting Principles (GAAP) promulgated by

the Governmental Accounting Standards Board (GASB) and other authoritative sources identified in

Statement on Auditing Standards No. 69 of the American Institute of Certified Public Accountants; and it

complies with the requirements of the appropriate version of the Texas Education Agency’s Financial Accountability System Resource Guide (the “Resource Guide” or “FASRG”) and the requirements of

contracts and grants of agencies from which it received funds.

The District prepared these financial statements in accordance with GASB Statement No. 34, “Basic

Financial Statements and Management’s Discussion and Analysis for State and Local Governments”, GASB

Statement No. 37, “Basic Financial Statements and Management’s Discussion and Analysis for State and

Local Governments: Omnibus” which provides additional guidance for the implementation of GASB

Statement No. 34, and GASB Statement No. 38 “Certain Financial Statement Disclosures” which changes

note disclosure requirements for governmental entities.

GASB Statement No. 34 established a financial reporting model for state and local governments that

included the addition of Management’s Discussion and Analysis, Government-wide Financial Statements,

Required Supplementary Information, and the elimination of the effects of internal service activities and the

use of account groups to the already required fund Financial Statements and notes.

The following is a summary of the most significant accounting policies:

A. Reporting Entity

The District is considered an independent entity for financial reporting purposes and is considered a

primary government. As required by Generally Accepted Accounting Principles, these basic financial

statements have been prepared based on considerations regarding the potential for inclusion of other

entities, organizations, or functions as part of the District’s financial reporting entity. Based on these

considerations, the District’s Basic Financial Statements do not include any other entities. Additionally,

as the District is considered a primary government for financial reporting purposes, its activities are not

considered a part of any other governmental or other type of reporting entity.

Considerations regarding the potential for inclusion of other entities, organizations, or functions in the

District’s financial reporting entity are based on criteria prescribed by Generally Accepted Accounting

Principles. These same criteria are evaluated in considering whether the District is a part of any other

governmental or other type of reporting entity. The overriding elements associated with prescribed

criteria considered in determining that the District’s financial reporting entity status is that of a primary

government are: that it has a separately elected governing body; it is legally separate; and it is fiscally

independent of other state and local governments.

Additionally prescribed criteria under Generally Accepted Accounting Principles include considerations

pertaining to organizations for which the primary government is financially accountable; and

considerations pertaining to other organizations for which the nature and significance of their

relationship with the primary government are such that exclusion would cause the reporting entity’s

financial statements to be misleading or incomplete.


32

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

A. Reporting Entity (continued)

The Board of Trustees (the Board) is elected by the public and has the primary accountability for fiscal

matters. Therefore, the District is a financial reporting entity as defined by the Governmental

Accounting Standards Board (GASB) in its Statement No. 14, “The Financial Reporting Entity.” The

District has also implemented GASB Statement No. 39, “Determining Whether Certain Organizations

are Component Units”. The District receives support from various PTO, PTA, and Booster club

organizations. None of these organizations meet the criteria specified by GASB 39 to be included in the

District’s Financial Statements. Therefore, there are no component units included with the reporting

entity.

B. Government-wide and Fund Financial Statements

The Statement of Net Position and the Statement of Activities are Government-wide Financial

Statements. They report information on all of the Katy Independent School District operating activities

and activities other than the District’s fiduciary (agency type) activities. For the most part, the effect of

interfund activities has been removed from these statements. Governmental activities include programs

supported primarily by taxes, state foundation funds, grants and other intergovernmental revenues. The

District has no business-type activities that rely to a significant extent on fees and charges for support.

The Statement of Activities demonstrates how other people or entities that participate in programs the

District operates have shared in the payment of the direct costs. The “charges for services” column

includes payments made by parties that purchase, use, or directly benefit from goods or services

provided by a given function or segment of the District. Examples include school lunch charges,

community education tuition, summer school tuition, etc. The “grants and contributions” column

includes amounts paid by organizations outside the District to help meet the operational or capital

requirements of a given function. Examples include grants under the Elementary and Secondary

Education Act. If a revenue is not a program revenue, it is a general revenue used to support all of the

District’s functions. Property taxes are always general revenues.

Interfund activities between governmental funds and between governmental funds and proprietary funds

appear as due to/due from on the Governmental Fund Balance Sheet and Proprietary Fund Statement of

Net Position and as other resources and other uses on the Governmental Fund Statement of Revenues,

Expenditures and Changes in Fund Balance and on the Proprietary Fund Statement of Revenues,

Expenses and Changes in Fund Net Position. In the Government-wide statements, eliminations have

been made to minimize double-counting of internal activities. Interfund balances between governmental

funds and also between governmental funds and internal service funds are eliminated on the

Government-wide Statement of Net Position. Since the internal service funds support the District’s

activities, the financial activities of these funds are presented in the governmental activities column in

the Government-wide Statement of Activities as a direct expense in the proper functional category. In

the Government-wide Statement of Activities, the net activities of the Internal Service such as Health

Insurance, Workers’ Compensation, and Print Shop have been allocated to the appropriate functional

expense in order to present a more accurate and complete picture of the direct expenses of the functions.

The District has no interfund services provided and used between functions that would be program

revenue which would not be eliminated in the process of consolidation. Interfund activities between

governmental and fiduciary funds remain as due to/due from on the Government-wide Statement of

Activities.


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B. Government-wide and Fund Financial Statements (continued)

The Fund Financial Statements provide reports on the financial condition and results of operations for

three fund categories – governmental, proprietary, and fiduciary. Since the resources in the fiduciary

funds cannot be used for district operations, they are not included in the Government-wide Statements.

The District considers some governmental funds as major and reports their financial condition and

results of operations in a separate column.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating

revenues and expenses result from providing services and producing and delivering goods in connection

with a proprietary fund’s principal ongoing operations. All other revenues and expenses are non-

operating.

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The Government-wide Financial Statements use the economic resources measurement focus and the

accrual basis of accounting, as do the Proprietary Fund and Fiduciary Fund financial statements.

Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of

the timing of the 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.

Governmental Fund Financial Statements use the current financial resources measurement focus and the

modified accrual basis of accounting. With this measurement focus, only current assets, current

liabilities, deferred inflows of resources and fund balances are included on the balance sheet. Operating

statements of these funds present net increases and decreases in current assets (i.e., revenues and other

financing sources and expenditures and other financing uses).

The modified accrual basis of accounting recognizes revenues in the accounting period in which they

become both measurable and available and recognizes expenditures in the accounting period in which

the fund liability is incurred, if measurable, except for unmatured interest and principal on long-term

debt, which is recognized when due. The expenditures related to certain compensated absences and

claims and judgments are recognized when the obligations are expected to be liquidated with expendable

available financial resources. The District considers all revenues available if they are collectible within

60 days after year-end.

Revenues from local sources consist primarily of property taxes. Property tax revenues and revenues

received from the State are recognized under the susceptible-to-accrual concept. Miscellaneous revenues

are recorded as revenue when received in cash because they are generally not measurable until actually

received. Investment earnings are recorded as earned, since they are both measurable and available.

Grant funds are considered to be earned to the extent of expenditures made under the provisions of the

grant. Accordingly, when such funds are received, they are recorded as unearned revenues until related

and authorized expenditures have been made. If balances have not been expended by the end of the

project period, grantors may require the District to refund all or part of the unused amount.


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C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued)

The Proprietary Fund Types are accounted for on a flow of economic resources measurement focus and

utilize the accrual basis of accounting. This basis of accounting recognizes revenues in the accounting

period in which they are earned and become measurable and expenses in the accounting period in which

they are incurred and become measurable.

D. Fund Accounting

The accounts of the District are organized on the basis of funds in accordance with the provisions of the

Resource Guide. Each fund is considered to be a separate accounting entity. The operations of each fund

are accounted for by providing a separate set of self-balancing accounts, which comprise its assets,

liabilities, deferred inflows of resources, fund equity, revenues, and expenditures or expenses. For

financial statement presentation, the District’s Fund Financial Statements provide more detailed

information about the District’s most significant funds, not the District as a whole. The funds shown on

the Fund Financial Statements are considered major funds because of the size and activity of the funds

in relation to all of the funds.

The District reports the following major Governmental Funds:

1. General Fund

The General Fund is the government’s primary operating fund. It is used to account for all financial

transactions not properly included in other funds. The principal sources of revenues include local

property taxes, state funding under the Foundation School Program, interest earnings on fund

investments, federal source revenues for indirect costs reimbursed by the programs accounted for in

the Special Revenue Fund, and revenues received for School Health and Related Services.

Expenditures include all costs associated with the daily operations of the District except for food

service, debt service, capital projects, and specific programs funded by the federal or state

government.

2. Debt Service Fund

The Debt Service Fund is used to account for the payment of interest and principal on all bonds of

the District. The primary sources of revenue for debt service are local property taxes, state existing

debt and instructional facilities allotments, and interest earnings on investments.

3. Capital Projects Fund

The Capital Projects fund is used to account for the proceeds of the District’s bond sales and

revenues whose expenditures are restricted to the construction and acquisition of major capital

facilities.


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D. Fund Accounting (continued)

The District also reports the following Non-Major Governmental Fund:

4. Special Revenue Fund

The Special Revenue Fund is used to account for all financial resources restricted to, or designated

for, specific purposes by a grantor. Specifically, this type of fund is used to account for funds that

are used for the District’s food service program, including local and federal revenue sources, for

federally financed programs (grants) where unused balances are returned to the grantor at the close

of specified project periods and other revenue specific programs. Project accounting is employed to

maintain integrity for the various sources of funds. Resources accounted for in these funds are

awarded to the District for the purpose of accomplishing specific educational tasks as defined by

grantors in contracts or other agreements.

Additionally, the District reports the following Proprietary Fund:

5. Internal Service Fund

The Internal Service Fund is used to account for revenues and expenses related to services provided

to organizations inside the District on a cost reimbursement basis. The following Internal Service

Funds are used by the District:

The Workers’ Compensation Fund is used to account for the operations of the District’s workers’

compensation insurance plan, which is supported principally by employer contributions. Expenses

include plan benefit payments to insured employees for claims and premium charges. Estimated

amounts due for claims incurred but not reported at year-end are included as fund liabilities.

Similar to the Workers’ Compensation Fund, the Health Insurance Fund is used to account for the

District’s health insurance plan, which is supported by both district and employee contributions.

Expenses include plan benefit payments to health care providers for claims incurred. Estimated

amounts due for claims incurred but not reported at year-end are included as fund liabilities.

The Print Shop Fund is used to account for the District’s internal printing operations. All costs and

expenses of operating the print shop are accounted for in the fund. Users of the printing services are

charged fees based on amounts estimated to cover the cost of operations.

Additionally, the District reports the following Fiduciary Funds:

6. Agency Funds

The Agency Funds are used to account for activities of student groups. These funds have no equity;

assets are equal to liabilities and do not include revenues and expenditures for general operations of

the District. The Agency Fund accounts for resources held in a custodial capacity by the District,

and consist of funds that are property of students and others and cannot be used by the District in

operations.


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E. Other Accounting Policies – Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net

Position or Equity

1. Cash and Cash Equivalents

The District’s cash and cash equivalents are considered to be cash on hand, demand deposits,

certificates of deposit, balances in privately managed public funds investment pools (TexPool and

Lone Star), and short-term investments with original maturities of three months or less from the date

of acquisition. For the purpose of the statement of cash flows, the Proprietary Fund Types consider

temporary investments, with maturity of three months or less when purchased, to be cash

equivalents.

2. Investments

Investments consist of deposits with TexPool and Lone Star, local government investment pools.

The District’s investments are carried at fair value based on quoted market prices at August 31,

2013 in accordance with Generally Accepted Accounting Principles. Investments having a maturity

of three months or less when purchased are reported as cash and cash equivalents.

3. Short-Term Interfund Receivables/Payables

During the course of operations, transactions occur between individual funds for specified purposes.

These receivables and payables are classified as due from other funds or due to other funds on the

combined balance sheet.

4. Inventories and Prepaid Items

Inventories consisting of supplies and materials are stated at cost (average cost method) and include

consumable custodial, maintenance, transportation, instructional, food consumables and office

supplies. Inventories of governmental funds are recorded as expenditures when the supplies and

materials are used or consumed (consumption method) rather than when purchased. Inventories of

food commodities are recorded as revenues at fair market value supplied by the Texas Department

of Human Services on the date received, and are recorded as expenditures when the commodities

are consumed. A portion of fund balance is classified as non-spendable to reflect minimum

inventory quantities considered necessary for the District’s continuing operations.

Certain payments to vendors reflect costs application to future accounting periods and are recorded

as prepaid items in both government-wide and fund financial statements.

5. Capital Assets

Capital assets, which include land, buildings, furniture and equipment, are reported in the applicable

governmental column in the Government-wide Financial Statements. Primarily, capital assets are

defined by the District as assets with an initial cost of more than $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. Costs of the facilities Acquisition and Construction Function that relate to

overall planning of District facilities, managing overall District assets and overall construction

projects are treated as period costs and are not capitalized unless related to specific assets. Donated

capital assets are recorded at estimated fair market value at the date of donation.


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Position or Equity (continued)

5. Capital Assets (continued)

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.

When assets are retired or otherwise disposed of, the related costs or other recorded amounts are

removed.

Buildings, furniture, and equipment of the District are depreciated using the straight line method

over the following estimated useful lives:

Assets Years

Building 50

Portable Buildings 25-50

Building Improvements 7-25

Furniture & Fixtures 20

Vehicles 15

Buses 15

Equipment 10-15

Office Equipment 10

Computer Equipment 6

Land and construction in progress are not depreciated

6. Deferred Outflows/Inflows of Resources

In addition to assets, the Statement of Net 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 has one item

that qualifies for reporting in this category. It is related to the hedging derivative instruments

associated with the Series 2012-C Bonds and the refunding of the Series 2004-C Bonds. The

deferred amount on refunding related to the Series 2004-C Bonds is reported in the Government-

wide Statement of Net Position in this category and will be amortized over the life of the debt.

In addition to liabilities, the Statement of Net Position will sometimes report a separate section for

deferred inflows of resources. This separate financial statement element, Deferred Inflows of

Resources, represents an acquisition of net position that applies to a future period(s) and so will not

be recognized as an inflow or resource (revenue) until that time. The District has two items that

qualifies for reporting in this category. The imputed at-the-market swaps associated with the Series

2012-C Bonds are reported as a deferred inflow of resources at market value. The net gain/loss on

refunding bonds is reported in the Government-wide Statement of Net Position in this category and will be amortized over the life of the debt.


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6. Deferred Outflows/Inflows of Resources (continued)

In addition to liabilities, the Balance Sheet will sometimes report a separate section for deferred

inflows of resources. This separate financial statement element, Deferred Inflows of Resources,

represents unavailable revenues that applies to a future period(s) and so will not be recognized as an

inflow or resource (revenue) until that time. The District has one item that qualifies for reporting in

this category. The unavailable revenue – property taxes are reported as a deferred inflow of

resources and will be recognized as collected.

7. Long-Term Obligations

In the Government-wide Financial Statements and in the Proprietary Fund types in the Fund

Financial Statements, long-term debt and other long-term obligations are reported as liabilities in the

applicable governmental activities, or Proprietary Fund type Statement of Net Position. Bond

premiums and discounts are deferred and amortized over the life of the bonds using the effective

interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond

issuance costs are expensed when incurred. Accretion of interest on the capital appreciation bonds is

recorded at the accreted value through the end of the fiscal year.

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.

8. Transactions Between Funds

Transactions between funds that would be treated as revenues, expenditures or expenses if they

involved organizations external to the District are accounted for as revenues, expenditures or

expenses in the applicable funds.

Transactions which constitute reimbursements of a fund for expenditures or expenses initially made

from that fund, which are properly attributable to another fund, are recorded as expenditures or

expenses in the reimbursing fund and as reductions of the expenditures or expenses in the fund that

is reimbursed.

Other legally authorized transfers are included in the results of operations of the governmental

funds.

9. Compensated Absences – Accumulated Vacation Pay and Sick Leave

The District has a vacation pay policy for twelve-month employees whereby eligible employees

shall receive vacation of one to fifteen days dependent upon the number of years of service.

Employees become eligible for vacation days after six months of employment. All vacation days are

forfeited if not taken by December 31 of the calendar year; therefore, the liability for unused

vacation days at August 31, 2013 is not material to the financial statements.


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9. Compensated Absences – Accumulated Vacation Pay and Sick Leave (continued)

The District pays a portion of accrued sick leave to employees who retire with five or more years of

continuous employment in the District and whose retirement can be verified by the Teachers

Retirement System. The compensated absences are normally paid through the General Fund when

the amounts are due. Payment is limited to the current salary rate for one-half of the locally

accumulated sick leave days up to a maximum of 90 accumulated days.

10. Fund Equity

Beginning with fiscal year 2011, the District implemented GASB Statement No. 54 “Fund Balance

Reporting and Governmental Fund Type Definitions”. This statement provides more clearly defined

fund balance categories to make the nature and extent of the constraints placed on a government’s

fund balance more transparent. The following classifications describe the relative strength of the

spending constraints:

a. Non-spendable Fund Balance

Non-spendable fund balance represents amounts that are not in spendable form or are required

to be maintained intact. As such, the inventory and prepaid items have been properly classified

in the Governmental Funds Balance Sheet (Exhibit C-1).

b. Restricted Fund Balance

Restricted fund balance consists of amounts that can be spent only for specific purposes because

of local, state or federal laws, or externally imposed conditions by grantors or creditors. The

Fund balance for the Child Nutrition Fund and other grant funds are classified as restricted.

c. Committed Fund Balance

Committed fund balances are amounts constrained to specific purposes by the District itself,

using its highest decision making authority (the Board of Trustees). To be reported as

committed, amounts cannot be used for any other purpose unless the District takes the same

highest level of action to remove or change the constraint. The General Fund has committed

$5,000,000 for self-insurance purposes. The District has committed the fund balance in the

Campus Activity Fund for uses benefitting the respective campuses where the funds were

raised.

d. Assigned Fund Balance

Assigned fund balance is the amount the District intends to use for a specific purpose The

Board of Trustees delegates the responsibility to assign fund balances to the Superintendent or

his designees. The District has assigned fund balances in the General Fund in the amount of

$22,324,758 and is detailed in Note 12.


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10. Fund Equity (continued)

e. Unassigned Fund Balance

Amounts that are available for any purpose are considered unassigned fund balance. Positive

numbers can only be reported in the general fund.

The District establishes (and modifies or rescinds) fund balance commitments and assignments by

passage of resolution. Per the local policy, assigned fund balance amounts are established by the

Superintendent or his designee.

11. 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.

12. Data Control Codes

The Data Control Codes refer to the account code structure prescribed by TEA in the Financial

Accountability System Resource Guide. The Texas Education Agency 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.

13. Use of Funds

When both restricted and unrestricted resources are available for use, it is the District’s policy to use

restricted resources first, then unrestricted as they are needed. Additionally, the District would first

use committed, then assigned, and lastly unassigned amounts of unrestricted fund balance when

expenditures are made. The District does not have a formal minimum fund balance policy.

NOTE 2 – RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS

A. Explanation of Certain Differences between the Governmental Fund Balance Sheet and the

Government-wide Statement of Net Position

Exhibit C-2 provides the reconciliation between the fund balance for total governmental funds on the

governmental fund balance sheet and the net position for governmental activities as reported in the

Government-wide Statement of Net Position. Major elements of that reconciliation include capital assets

which are not financial resources and are therefore not reported in governmental funds, long-term

liabilities, including bonds payable, which are not due and payable in the current period and are not

reported as liabilities in the Fund Financial Statements, and property taxes receivable which are included

as unearned in the Fund Financial Statements are adjusted based on when the tax levy was made and for

uncollectible amounts.


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NOTE 2 – RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS

(continued)

B. Explanation of Certain Differences between the Governmental Fund Statement of Revenues,

Expenditures and Changes in Fund Balances and the Government-wide Statement of Activities

Exhibit C-4 provides a reconciliation between the net changes in fund balance as shown on the

governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the

changes in net position of governmental activities as reported on the Government-wide Statement of

Activities. One element of that reconciliation explains that current year capital outlays and debt principal

payments are expenditures in the Fund Financial Statements, but should be shown as increases in capital

assets and decreases in long-term debt in the Government-wide Statements. This adjustment affects both

the net position balance and the change in net position. The debt payments on retirement of debt are

recorded as expenditures for Fund Basis Financial Statements but are recorded as a reduction of debt in

the Government-wide Financial Statements. The capital asset additions are expenditures in the Fund

Basis Financial Statements but are capitalized in the Government-wide Financial Statements. The Fund

Basis Financial Statements do not include the current depreciation expense.

Another element of the reconciliation on Exhibit C-4 is described as various other reclassifications and

eliminations necessary to convert from the modified accrual basis of accounting to the accrual basis of

accounting. As indicated above, if new debt is issued, it is treated as a source of revenue on the Fund

Basis Financial Statements, while in the Government-wide Financial Statements; the amount is recorded

as a liability. Property taxes are adjusted for the accrual basis and the unearned revenues are adjusted

based on prior year levies and current year uncollectible amounts.

NOTE 3 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY

A. Budgetary Data

The Board of Trustees adopts an appropriated budget for the General Fund, Debt Service Fund, and

Special Revenue Fund. The Food Service fund is included in the Special Revenue Fund. Budgets are

prepared using the same method of accounting as for financial reporting. The District is required to

present the adopted and final amended budgeted revenues and expenditures for the General Fund and

each major special revenue fund. The Food Service Fund is not a major fund. The General Fund budget

report appears in the required supplementary information section where the District compares the final

amended budget to actual revenues and expenditures. Per regulatory requirements, the Debt Service

Fund and the Food Service Fund are required to be reported with the original budget, amended budget

and actual. These statements are included in the Other Supplementary Information section of this report.

The Capital Projects Fund budget is prepared on a project basis based on the proceeds available from

bond issues and planned expenditures outlined in applicable bond ordinances. Capital Projects Fund

equity, which represents unexpended appropriations, is re-appropriated in the subsequent fiscal year’s

budget until available funds for acquisition and construction of facilities have been utilized. Each major

construction contract is approved based on the existing availability of bond proceeds and/or approved

but unissued bonds. The non-budgeted Special Revenue funds (primarily federal, state, and local grant

programs) utilize a managerial type financial plan approved at the fund level by the Board of Trustees

upon acceptance of the grants. These grants are subject to state imposed project length budgets and

monitored through submission of reimbursement reports to the state.


42

NOTE 3 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (continued)

A. Budgetary Data (continued)

The following procedures are followed in establishing the budgetary data reflected in the Fund Financial

Statements:

1. Prior to August 20, the District prepares a budget for the next succeeding fiscal year beginning

September 1. The operating budget includes proposed expenditures and the means of financing

them.

2. A meeting of the Board is then called for the purpose of adopting the proposed budget. At least ten

days public notice of the meeting must be given.

3. Prior to September 1, the budget is legally enacted through passage of a resolution by the Board.

Once a budget is approved, it can only be amended at the function and fund level by approval of a

majority of the members of the Board. Amendments are presented to the Board at its regular

meetings. Each amendment must have Board approval. As required by law, such amendments are

made before the fact, are reflected in the official minutes of the Board, and are not made after fiscal

year end. Because the District has a policy of careful budgetary control, several amendments were

necessary during the year.

4. Each budget is controlled by the budget coordinator at the revenue and expenditure function/object

level. Budgeted amounts are amended by the Board. All budget appropriations lapse at year end.

5. During the fiscal year ended August 31, 2013 the District did not have any expenditures over

appropriations in major funds.

6. A reconciliation of fund balances for both appropriated budget and non-appropriated budget Special

Revenue Funds is as follows:

All Special Unbudgeted Budgeted

Revenue Special Special

Funds Revenue Funds Revenue Funds

Revenues 52,072,477$ 26,923,502$ 25,148,975$

Expenditures 51,999,816 26,204,175 25,795,641

Revenues Over (Under) Expenditures 72,661 719,327 (646,666)

Other Sources (Uses) (611,923) (626,394) 14,471

Fund Balance Beginning 12,531,292 6,697,387 5,833,905

Fund Balance Ending 11,992,030$ 6,790,320$ 5,201,710$


43

NOTE 3 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (continued)

A. Budgetary Data (continued)

7. During the fiscal year the operating budget must be amended by the Board for changes to function

appropriation amounts. All supplemental appropriations must be within limits of available revenues

and fund equity.

The following table summarizes changes to the originally adopted budget for all budgeted funds:

Appropriations as of Supplemental Appropriations as of

September 1, 2012 Appropriations August 31, 2013

Fund (Original Budget) and Revisions (Amended Budget)

General Fund 457,585,217$ 6,353,112$ 463,938,329$

Special Revenue Funds 28,651,383 (1,777,046) 26,874,337

Debt Service Fund 91,165,000 (60,000) 91,105,000

Total all Budgeted Funds 577,401,600$ 4,516,066$ 581,917,666$

B. Encumbrances

Encumbrance accounting, under which purchase orders, contracts, and other commitments are recorded

in order to reserve that portion of the applicable appropriation, is used in all governmental funds.

Encumbrances outstanding at year-end are commitments that do not constitute expenditures or

liabilities, but are reported as assignments of fund balances. Since appropriations lapse at the end of each

fiscal year, outstanding encumbrances are appropriately provided for in the subsequent fiscal year’s

budget to provide for the liquidation of the prior commitments.

NOTE 4 – DEPOSITS (CASH) AND INVESTMENTS

A. Deposits (Cash)

Deposits and investment transactions of the District are regulated by State statutes of the Texas

Education Code and other regulations regarding security for District funds in depository institutions.

In accordance with applicable statutes, the District has a depository contract with an area bank

(depository) providing for interest rates to be earned on deposited funds and for banking charges the

District incurs as a result of banking services received. All depository contracts have a term of two

years, commencing with the start of every odd-numbered fiscal year. However, the contract can be

extended for two additional two year periods should the depository and the District agree to the

extension. Depository contracts are awarded on the basis of competitive proposals received from area

banks and can be awarded to more than one bank if the bids received are relatively equal.

The District may place funds with the depository in interest and non-interest bearing accounts. Statutes

and the depository contract require that all funds in the depository institution be fully secured by federal

depository insurance or a combination of federal depository insurance and acceptable collateral

securities and/or an acceptable surety bond. The collateral securities are placed with an independent

third party custodian or trustee institution. In accordance with State statutes pertaining to lawful

collateralization of District deposits, safekeeping receipts are issued in the name of the depository with

proper identification that the collateral securities are pledged by the depository to secure funds of the

District.


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NOTE 4 – DEPOSITS (CASH) AND INVESTMENTS (continued)

A. Deposits (Cash) (continued)

Acceptable collateral securities include direct obligations of the United States of America (U.S.), bonds

of any agency of the U.S., bonds of the State of Texas or of any county, school district, city, or town of

the State of Texas that have been rated A or better and other securities as authorized by Chapter 2257

Collateral for Public Funds of the Government Code and Chapter 2256 Public Fund Investment Act.

The District may approve all collateral securities prior to their being pledged. The depository can release

or replace collateral securities pledged to secure District funds only upon obtaining the written approval

of the District.

All demand and time deposits in the depository bank were entirely covered by federal depository

insurance and by acceptable collateral securities pledged in the District’s name by Prosperity Bank and

held in safekeeping by Federal Home Loan Bank of Dallas at year-end in accordance with provisions of

the depository contract.

At August 31, 2013 the cash in the bank was $264,897,935. As of August 31, 2013 the deposits and

amount of pledged collateral and FDIC coverage was as follows:

Carrying Amount Pledged Collateral Available

of Combined and Surety FDIC

Financial Institution Deposit Bond Coverage Month

Prosperity Bank 264,897,935$ 310,701,453$ 500,000$ August 31, 2013

B. Investments

The Board of Trustees of the District has adopted a written investment policy (the “Investment Policy”)

regarding the investment of the funds as defined in the Public Funds Investment Act of 1995 (Chapter

2256, Texas Government Code). The Public Funds Investment Act requires an annual audit of

investment practices. Audit procedures in this area, conducted as part of the audit, disclosed that in the

area of investment practices, management reports, and establishment of appropriate policies, the District

was in substantial compliance with the requirements of the Act. Additionally, the investments and

investment practices of the District are in compliance with the Trustees’ investment policies.

The District’s Investment Policy emphasizes safety of principal and liquidity, addresses investment

diversification, yield, and maturity and addresses the quality and capability of investment personnel. The

Investment Policy includes a list of authorized investment instruments, a maximum allowable stated

maturity of any individual investment and the maximum average dollar weighted maturity allowed for

fund groups.


45


B. Investments (continued)

The District is authorized to invest in the following investment instruments:

1. Obligations of, or guaranteed by, the U.S. Government and its agencies and instrumentalities as

permitted by Government Code 2256.009. This excludes collateralized mortgage obligations.

Maximum maturity shall be three years.

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. A1/P1 Commercial paper as defined by Government Code 2256.013 and not to exceed 60 days to

maturity.

5. No-load money market mutual funds as permitted by Government Code 2256.014.

6. Constant dollar public funds investment pools as permitted by Government Codes 2256.016 –

2256.019.

A summary of the District’s cash and investments at August 31, 2013 is shown below.

Cash Bank Investment

on Hand Deposits Pools Total

General 47,400$ 127,612,220$ 38,204,189$ 165,863,809$

Debt Service 30,887,813 15,303,773 46,191,586

Capital Projects 91,149,506 33,393,811 124,543,317

Special Revenue Fund 100 561,951 10,172,410 10,734,461

Total Governmental Funds 47,500 250,211,490 97,074,183 347,333,173

Internal Service Fund 9,938,221 383,023 10,321,244

Total Governmental Activities 47,500 260,149,711 97,457,206 357,654,417

Fiduciary Funds

Trust and Agency 4,748,224 4,748,224

Total 47,500$ 264,897,935$ 97,457,206$ 362,402,641$

The District generally holds all securities to maturity. The District did not purchase any derivative

investment products during the current year nor participate in any reverse repurchase agreements or

security lending agreements during the fiscal year 2013.

The following table includes the portfolio balances, credit rating, and weighted average maturity of the

portfolio balance by investment type of the District as of August 31, 2013:

Fair Weighted

Rating Value Avg. Maturity

Lone Star - Public Funds Investment Pool AAAm 30,227,354$ 56 days

TexPool - Public Funds Investment Pool AAAm 67,229,852 56 days

Total Investments and Cash Equivalent 97,457,206$


46



As of August 31, 2013, the District’s investments included TexPool and Lone Star Public Funds

Investment Pools. The investment pools investments are not evidenced by securities that exist in

physical or book entry form and, accordingly, do not have custodial risk.

Investment Pool policies require that local government deposits be used to purchase investments

authorized by the Public Funds Investment Act of 1987, as amended. Oversight responsibility for

TexPool is provided by The Texas State Comptroller of Public Accounts and for Lone Star by The

Texas Association of School Boards.

The value of District portions in TexPool and Lone Star are the same as the value of the Shares. These

external pooled funds operate in a manner consistent with the SEC’s Rule 2a7 of the Investment

Company Act of 1940. The external pooled funds are amortized cost rather than market value to report

net assets to compute share price, such funds have daily liquidity. Although TexPool and Lone Star have

weighted average maturities greater than one, the District considers its holdings in these funds to have a

one day weighted average maturity.

Credit Risk Related to Investments

Credit risk is the risk that another party to a deposit or investment transaction will not fulfill its

obligations. This is not to be confused with market risk, which is the risk that the market value of an

investment, collateral protecting a deposit, or securities underlying a repurchase agreement, will decline.

Market risk is not depicted in this note.

In compliance with GASB 40, local policy also addresses credit risk by monitoring investment

diversification through specific identification disclosure and weighted average maturity disclosure.

As of August 31, 2013, TexPool and Lone Star represented 18.6% and 8.3%, respectively, of the

General Fund, Debt Service Fund, Capital Projects Fund, Special Revenue Fund, Internal Service Fund

and Fiduciary Fund investments and are rated AAAm by Standard and Poor’s.

Interest Rate Risk

As a means of minimizing risk of loss due to interest rate fluctuations, the District’s Investment Policy

requires that investment maturities in the General Fund, Debt Service Fund, Capital Projects Fund, and

Special Revenue Fund will not exceed the lesser of a dollar weighted average maturity of 365 day or the

anticipated cash flow requirements of the fund. The District’s Investment Policy also limits that no

investment shall have a maturity greater than three years from the date of purchase.

As of August 31, 2013, 26.9% of the entire portfolio was invested in AAAm rated public investment

pools. The dollar weighted average maturity of the pools was 56.5 days, which is less than the threshold

of 180 days.


47



Custodial Credit Risk

The District’s agent holds the securities in the General Fund, Debt Service Fund, Capital Projects Fund,

and Special Revenue Fund in the District’s name; therefore, the District is not exposed to custodial

credit risk. Custodial credit risk for investments is the risk that, in event of the failure of the counterparty

(e.g. broker dealer) to a transaction, a government will not be able to recover the value of its investments

or collateral securities that are in the possession of another party. The District’s policy requires that a

third party custodian or a bank trust department hold all securities owned by, or pledged as collateral to

the District.

NOTE 5 – PROPERTY TAXES

The current assessment ratio of the District is 100% of market valuation of all property within the

District’s boundaries. The local maintenance and debt service tax rates for the 2012-13 school year were

$1.1266 and $.40 respectively per $100 of assessed valuation. The 2012-13 assessed valuation was

$22,083,259,111 and resulted in a final adjusted tax levy of $333,716,657.

Property taxes are levied by October 1 on the assessed value listed the prior January 1 for all real and

business personal property located in the District in conformity with Subtitle E, Texas Property Tax

Code. Taxes are due on receipt of the tax bill and are delinquent if not paid before February 1 of the year

following the year in which imposed. On January 31 of each year, a lien attaches to the property to

secure the payment of all taxes, penalties, and interest ultimately imposed. Local taxes assessed on

valuations made as of January 1 each year are recorded in the District’s Financial Statements net of the

related allowance for uncollectible taxes. The resulting net taxes receivable is stated at the amount

estimated to be collectible based upon the District’s collection experience. Uncollectible taxes are

periodically reviewed and written off by the District, as provided by specific statutory authority from the

State Legislature. Net property taxes receivable at August 31, 2013 consisted of the following:

General Debt Service

Fund Fund Total

Property Taxes Receivable-Current Year Levy 1,846,242$ 655,508$ 2,501,750$

Property Taxes Receivable-Prior Years' Levies 4,186,424 1,333,069 5,519,493

Total Property Taxes Receivable 6,032,666 1,988,577 8,021,243

Penalty and Interest on Delinquent Property Taxes 3,315,019 1,006,210 4,321,229

Total Property Taxes and Penalty and Interest 9,347,685 2,994,787 12,342,472

Less Allowance for Uncollectible Taxes 2,058,255 656,549 2,714,804

Net Property Taxes Receivable 7,289,430$ 2,338,238$ 9,627,668$

Appraisal District

The Texas Legislature in 1979 adopted a comprehensive Property Tax Code which established an

appraisal district and an appraisal review board in each county in the State of Texas. The District has

property in Harris, Fort Bend, and Waller Counties. Beginning January 1, 2008 the District contracted

with each county for the appraisal of property for all taxing units in the county’s boundaries, including the District. The District paid Harris County Appraisal District, Fort Bend County Appraisal District,

and Waller Country Appraisal District $1,516,442, $791,249 and $147,445 respectively in fiscal 2013

for appraising property.


48

NOTE 6 – AMOUNTS DUE TO/FROM OTHER FUNDS AND INTERFUND TRANSFERS

Amounts Due To/From Other Funds at August 31, 2013 include the following:

Interfund Interfund

Receivables Payables

General Fund $ 3,610,501$

Debt Service Fund 3,177,829

Capital Projects Fund 174,433

Non-Major Governmental Funds

Special Revenue Funds:

ESEA, Title I, Part A 740,402

IDEA-Part B, Formula 1,360,632

IDEA-Part B, Preschool 21,907

Nutrition and Food Services 119,610

Voc. Ed.-Basic Grant 47,887

ESEA, Title II, Part A 157,416

ESEA, Title III, Part A 532,705

Medicaid Administrative Claiming 65,161

Early Childhood Intervention 197,015

SSA, IDEA-Part B, Discretionary 21,558

SSA, IDEA-Part B, Deaf 642

SSA, IDEA-Part B, Preschool Deaf 3,471

Advanced Placement Incentives 2,039

SSI Grants to Schools 41,828

Instructional Materials Allotment 490,589

Read to Succeed License Plate Program 56

SSA, Regional Deaf Cooperative 39,681

SSA, Deaf Local Share 8,310

Campus Activity Funds 3,170,081

Locally Funded Special Revenue 74,528

Tax Increment Reinvestment Zone 759,714

Katy ISD Education Foundation Grants 2,413

Total Special Revenue Funds/Non-Major Gov. Funds 3,802,454 4,055,191

Total Governmental Funds 7,154,716 7,665,692

Internal Service Fund 510,976

Total - All Funds 7,665,692$ 7,665,692$


49

NOTE 6 – AMOUNTS DUE TO/FROM OTHER FUNDS AND INTERFUND TRANSFERS (continued)

The District had not cleared the interfund payables and receivables at year end. Most of the amounts

represent short-term borrowings between funds for operating expense payments.

Transfers between funds in fiscal year 2013 are as follows:

Transfers In Transfers Out

Governmental Funds:

General Fund 626,394$ 5,597,130$

Debt Service Fund 3,361,265

Capital Projects Fund 264,135

Non-Major Governmental Funds:

Special Revenue Funds:

Tax Increment Reinvestment Zone 626,394

Total Governmental Funds 3,987,659 6,487,659

Internal Services Funds 2,500,000

Total All Funds 6,487,659$ 6,487,659$

Transfers are used to: 1) move interest revenues from the Capital Projects Fund where they are collected to

the Debt Service Fund for payment of principal and interest, 2) move Tax Increment Reinvestment Zone

Funds to the General Fund to cover net operating costs of the Leonard Merrell Center, 3) move the federal

subsidy payment on the Build America Bonds from the General Fund to the Debt Service Fund for payment

of principal and interest, and 4) provide supplemental funding from the General Fund to the Health

Insurance Internal Service Fund.

NOTE 7 – AMOUNTS DUE FROM AND TO OTHER GOVERNMENTS

Receivables Due from Other Governments at August 31, 2013 consisted of the following:

Non-Major

General Debt Service Governmental

Fund Fund Funds Total

Due from State Agencies:

State Grant Expenditure Reimbursement 800$ $ 180,667$ 181,467$

State Summary of Finances 1,920,188 214,039 2,134,227

Due from Federal Agencies:

Federal Grant Expenditure Reimbursement 3,837,281 3,837,281

Due from Local Agencies:

Local Grant Expenditure Reimbursement 12,336 12,336

Total Due from Other Governments 1,920,988$ 214,039$ 4,030,284$ 6,165,311$

Payables Due to Other Governments at August 31, 2013 consisted of the following:

General

Fund

Due to Local Agencies:

Katy Development Authority 2,690,626$

2,690,626$


50

NOTE 8 – CAPITAL ASSETS

Prior to GASB Statement No. 34, the District was not required to calculate depreciation expense on capital

assets. In accordance with the implementation of GASB Statement No. 34, capital assets have been adjusted

to reflect historical cost for the purpose of calculating depreciation.

Capital asset activity for the governmental activities of the District for the year ended August 31, 2013 is as

follows:

Balance

September 1, 2012 Additions Retirements Balance

(As Restated) and Transfers and Transfers August 31, 2013


Capital Assets not being Depreciated:

Land 71,402,749$ 4,443,575$ $ 75,846,324$

Construction in Progress 89,672,665 72,187,072 (89,672,665) 72,187,072

Total Capital Assets, not being

Depreciated 161,075,414 76,630,647 (89,672,665) 148,033,396

Capital Assets being Depreciated:

Land Improvements 51,097,019 599,523 (2,097,560) 49,598,982

Buildings and Improvements 1,122,304,697 96,397,947 (1,399,763) 1,217,302,881

Furniture and Equipment 145,410,085 20,809,579 (10,937,090) 155,282,574

Capital Leases 24,039,425 310,980 (9,388) 24,341,017

Vehicles 41,524,534 891,741 (950,409) 41,465,866

Total Capital Assets, being

Depreciated at Historical Cost 1,384,375,760 119,009,770 (15,394,210) 1,487,991,320

Less: Accumulated Depreciation for:

Land Improvements (22,030,800) (2,220,237) (24,251,037)

Buildings and Improvements (268,115,021) (25,462,270) 32,338 (293,544,953)

Furniture and Equipment (77,442,026) (13,836,057) 7,663,088 (83,614,995)

Capital Leases (3,578,196) (515,071) 9,388 (4,083,879)

Vehicles (20,086,422) (2,463,624) 905,848 (21,644,198)

Total Accumulated Depreciation (391,252,465) (44,497,259) 8,610,662 (427,139,062)


Capital Assets, Net 1,154,198,709$ 151,143,158$ (96,456,213)$ 1,208,885,654$

Capital Leases included in the above schedule consist of the following major classes:

Balance Additions Retirements Balance

September 1, 2012 and Transfers and Transfers August 31, 2013

Capital Lease Assets

Land Improvements 163,506$ 9,000$ $ 172,506$

Buildings and Improvements 23,218,103 301,980 23,520,083

Furniture and Equipment 657,816 (9,388) 648,428

Total Capital Lease Assets 24,039,425 310,980 (9,388) 24,341,017

Less: Accumulated Depreciation for:

Land Improvements (1,825) (600) (2,425)

Buildings and Improvements (3,289,366) (474,333) (3,763,699)

Furniture and Equipment (287,005) (40,138) 9,388 (317,755)

Total Accumulated Depreciation (3,578,196) (515,071) 9,388 (4,083,879)

Capital Leases, Net 20,461,229$ (204,091)$ $ 20,257,138$


51

NOTE 8 – CAPITAL ASSETS (continued)

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

Instruction 23,666,533$

Instructional Resources and Media Services 1,932,790

Curriculum and Instructional Staff Development 14,391

Instructional Administration 35,885

School Administration 1,649,541

Guidance and Counseling Services 751,480

Health Services 733,830

Student Transportation 3,223,970

Food Service 3,288,505

Cocurricular/Extracurricular Activities 2,397,362

General Administration 600,004

Plant Maintenance and Operations 2,552,632

Security and Monitoring Services 114,912

Data Processing Services 3,526,794

Capital Facilities 8,630

Total Depreciation Expense Governmental Activities 44,497,259$

Construction in progress and remaining commitments under related construction contracts at August 31,

2013 are as follows:

Construction in Progress:

Contract Other Construction

Project Expenditures Project Costs in Progress

Katy High West Campus Replacement 24,676,648$ 684,177$ 25,360,824$

Taylor High Renovation 33,594,731 745,284 34,340,015

High School Performing Arts Center Renovations 4,307,222 39,180 4,346,402

Elementary #36 3,490,349 382,495 3,872,844

Elementary #37 3,695,574 59,167 3,754,741

STEM Project Center (design) 20,520 20,520

Agricultural Sciences Complex (design) 113,726 113,726

Stadium #2 (design) 378,000 378,000

70,276,770$ 1,910,303$ 72,187,072$

Contract and related commitments:

Authorized Contract Remaining

Project Contract Expenditures Commitment

Katy High West Campus Replacement 25,146,250$ 24,676,648$ 469,602$

Taylor High Renovation 35,340,917 33,594,731 1,746,186

High School Performing Arts Center Renovations 4,686,260 4,307,222 379,038

Elementary #36 16,182,000 3,490,349 12,691,651

Elementary #37 16,745,000 3,695,574 13,049,426

STEM Project Center (design) 64,800 20,520 44,280

Agricultural Sciences Complex (design) 344,623 113,726 230,897

Stadium #2 (design) 540,000 378,000 162,000

99,049,850$ 70,276,770$ 28,773,080$

As explained in Note 3, encumbrance accounting is utilized to assure effective budgetary control. As of

August 31, 2013 the General Fund had $1,123,650, the Capital Projects Fund had $46,688,131 and Non-

Major Governmental Funds had $2,016,692 in outstanding encumbrances.


52

NOTE 9 – LONG-TERM DEBT

General Obligation Bonds

General long-term debt of the District consists of General Obligation Bonds which provide funds to

construct, acquire, and equip school buildings and purchase necessary sites for school buildings. Certain

outstanding bonds may be redeemed at their par value prior to their normal maturity dates in accordance

with the terms of the related bond orders. The District has never defaulted on any principal or interest

payment.

In November 2010 voters authorized $459,795,000 of General Obligation Bonds. The District has no

authorized but unissued bonds remaining at August 31, 2013.

General long-term debt consists of bonds payable and accretion of capital appreciation bonds. Bonds are

payable solely from revenues of the Debt Service Fund which consists primarily of property taxes collected

by the District, state existing debt and instructional facilities allotments, and investment income. The capital

lease is paid from General Fund property tax revenues generated within the Tax Increment Reinvestment

Zone.

Changes in Long-Term Debt

A summary of long-term debt transactions of the District for the year ended August 31, 2013 is as follows:

Balance at Balance at Due

September 1, August 31, Within

2012 Additions Retirements 2013 One Year

General Obligation Bonds 1,165,099,961$ 103,000,000$ 35,255,000$ 1,232,844,961$ 36,652,444$

Accreted Interest on Capital

Appreciation Bonds 9,409,109 418,877 9,827,986

Imputed Borrowing 43,651,540 2,600,583 41,050,957 2,600,583

Bond Issuance Premiums 42,017,423 7,779,789 1,946,683 47,850,529

Total Bonds Payable 1,260,178,033 111,198,666 39,802,266 1,331,574,433 39,253,027

Capital Leases 17,360,000 1,115,000 16,245,000 1,150,000

Compensated Absences 19,516,454 1,782,599 598,594 20,700,459 564,643

Total 1,297,054,487$ 112,981,265$ 41,515,860$ 1,368,519,892$ 40,967,670$

The District is in compliance with all significant bond and note limitations and restrictions.


53

NOTE 9 – LONG-TERM DEBT (continued)

Outstanding bonded debt at August 31, 2013 consisted of the following:

Debt

Issue Series Description Matures Outstanding

25,000,000$ 1996-A Limited Tax School Building Bonds 4.75-6.40 % 2017 3,100,000$

6,029,997 2004-B Limited Tax Refunding Bonds 2.00-4.00 2020 480,001

23,055,000 2005-A Unlimited Tax Refunding Bonds 3.00-5.25 2032 21,575,000

29,685,000 2005-B Unlimited Tax Refunding Bonds 3.00-5.25 2032 26,130,000

29,995,000 2006 Unlimited Tax School Building Bonds 4.00-5.00 2036 27,975,000

65,000,000 2007-A Unlimited Tax School Building Bonds 4.25-5.00 2037 59,810,000

167,944,959 2007-B Unlimited Tax Refunding Bonds 4.00-5.00 2035 163,974,960

61,395,000 2007-C Limited Tax Refunding Bonds 4.00-5.63 2027 54,625,000

80,000,000 2007-D Unlimited Tax School Building Bonds 4.25-5.63 2037 55,295,000


38,235,000 2008-B Limited Tax Refunding Bonds 3.75-4.38 2024 30,450,000

97,700,000 2008-C Unlimited Tax School Building Bonds 2.75-5.00 2038 82,435,000



11,625,000 2010-B Limited Tax Refunding Bonds 3.00-5.00 2027 7,540,000

41,470,000 2010-C Unlimited Tax School Building Bonds 4.00-5.00 2021 30,955,000

155,000,000 2010-D Unlimited Tax School Building Bonds 4.50-5.30 2041 155,000,000

6,220,000 2010-E Limited Tax Refunding Bonds 2.00-4.00 2017 4,145,000

147,680,000 4.00-5.00 2042 147,680,000

34,475,000 2012-B Variable Rate Unlimited Tax Refunding Bonds 4.00-5.00 2031 34,475,000

115,000,000 2012-C Variable Rate Unlimited Tax Refunding Bonds 4.00-5.00 2036 115,000,000


1,232,844,961

(36,652,444)

41,050,957

47,850,529

1,285,094,003$

Interest

Rate

Total Bonded Debt Long-Term

2012-A Unlimited Tax School Building & Refunding Bonds

Total Bonded Debt

Less Amounts Due Within One Year

Plus Unamortized Imputed Borrowing

Plus Unamortized Premiums


54


Annual requirements to amortize all bonded long-term debt outstanding (including accretion) as of August

31, 2013 are as follows:

Fiscal Year Principal Interest Totals

2014 36,652,444$ 60,497,134$ 97,149,578$

2015 40,381,822 58,328,872 98,710,694

2016 44,571,333 57,209,626 101,780,959

2017 43,787,539 56,337,794 100,125,333

2018 45,736,823 54,725,540 100,462,363

2019 50,495,000 49,614,207 100,109,207

2020 49,335,000 47,279,079 96,614,079

2021 51,620,000 44,851,368 96,471,368

2022 52,585,000 42,395,451 94,980,451

2023 54,060,000 39,901,753 93,961,753

2024 56,055,000 37,297,980 93,352,980

2025 55,385,000 34,621,605 90,006,605

2026 57,315,000 31,885,321 89,200,321

2027 55,540,000 29,097,497 84,637,497

2028 58,050,000 26,284,713 84,334,713

2029 52,170,000 23,541,634 75,711,634

2030 51,395,000 20,981,862 72,376,862

2031 48,965,000 18,510,536 67,475,536

2032 44,185,000 16,224,156 60,409,156

2033 36,110,000 14,216,353 50,326,353

2034 38,815,000 12,315,658 51,130,658

2035 40,675,000 10,297,433 50,972,433

2036 41,070,000 8,222,747 49,292,747

2037 29,000,000 6,168,979 35,168,979

2038 23,520,000 4,762,009 28,282,009

2039 18,600,000 3,597,110 22,197,110

2040 19,475,000 2,531,177 22,006,177

2041 20,125,000 1,422,296 21,547,296

2042 11,580,000 569,000 12,149,000

2043 5,590,000 139,750 5,729,750

1,232,844,961 813,828,640 2,046,673,601

36,652,444 60,497,134 97,149,578

Long Term Debt 1,196,192,517$ 753,331,506$ 1,949,524,023$

Less: Current Portion


55


Interest Rate Swap Agreements

Variable Interest Rate Bonds Synthetic Fixed Rate Swaps

On July 28, 2004 as a means to reduce its borrowing cost in comparison to the issuance of traditional

fixed rate bonds, the District entered into two identical pay fixed/receive variable rate swap agreements

on the District’s $115,000,000 Variable Rate Unlimited Tax School Building Bonds, Series 2004-C

(“2004-C Bonds”). The swap agreements and the bonds were issued at the same time. The swap

agreements are with JP Morgan Chase Bank, N.A. and Bank of America, N.A., each in an original

notional amount of $57,500,000 in order to synthetically fix the interest obligations on the variable

interest bonds.

On July 17, 2012 the District refunded the 2004-C Bonds with the $115,000,000 Variable Rate

Unlimited Tax Refunding Bonds, Series 2012-C (“2012-C Bonds”) in order to mitigate bank risk while

increasing the effectiveness of the hedging derivative.

Objective

The objective of the swaps is to hedge against the potential of rising interest rates in conjunction with

the District’s $115,000,000 outstanding variable rate debt. The interest rate swaps were effective hedges

as of the prior reporting period with each swap’s cumulative change in fair value recorded in deferred

outflows on the Statement of Net Position. The refunding of the 2004-C Bonds was considered a

termination event as described in Governmental Accounting Standards Board (GASB) Statement 53. As

of the refunding date the swaps were considered to be off-market, consisting of an imputed at-the-

market swap and an imputed borrowing. The fair values of the derivative instruments outstanding at

August 31, 2013 and the changes in fair values for the year then ended are as follows:

Fair Value at August 31, 2013

Governmental Activities Classification Amount

Cash Flow Hedge:

Pay fixed interest rate swap Asset: Interest Rate Swaps 16,915,488$

Liability: Imputed Borrowing 41,050,957 Negative Fair Value 24,135,469$

Changes in Fair Value

Governmental Activities Classification Amount

Cash Flow Hedge:

Pay fixed interest rate swap Deferred Inflows: Interest Rate Swap (14,319,476)$

Terms

The swaps notional amounts total $115,000,000, the principal amount of the associated 2012-C Bonds.

The District’s swap agreements contain scheduled reductions to outstanding notional amounts that

follow anticipated payments of principal of the 2012-C Bonds in varying amounts during the years 2019

to 2036. Under the terms of the swaps, the District will pay a fixed rate of 3.92% and receive a floating

rate equal to 67% of the one-month London Interbank Offered Rate (LIBOR) Index. All agreements were effective July 28, 2004, the date of issuance of the 2004-C Bonds. The termination date is August

15, 2036.


56


Interest Rate Swap Agreements (continued)

For the fiscal year ending August 31, 2013 the effective rate of the bonds associated with the swaps is as

follows:

Rate

Paid

Terms (Received)

Fixed rate paid for swaps 3.92%

Variable rate payment received from counterparties LIBOR x 67% (0.14)

Net rate paid/(received) for swaps 3.78

Average variable rate paid on bonds associated with swaps 0.79Effective rate of bonds associated with swaps 4.57%

In contrast, the fixed rate the District would have paid on General Obligation Bonds at a comparable

maturity on the same original sale date in 2004 would have been 5.15%. The savings in interest

expenditures realized by participating in the swap agreement is $15,368,839 as compared to costs the

District would have incurred if the debt had been issued as traditional fixed rate bonds at the time of

original issuance.

Fair Value

Because LIBOR interest rates have declined since inception of the swaps, the swaps had a negative fair

value of $24,135,469 on August 31, 2013. This value was calculated using the zero-coupon method.

This method calculates the future net settlement payments required by the swap, assuming that the

current forward rates implied by the yield curve correctly anticipate future spot interest rates.

Credit Risk

As of August 31, 2013, the District was not exposed to credit risk because the swaps had a negative fair

value. However, should interest rates increase and the fair value of the swaps become positive, the

District would be exposed to credit risk on the swaps in the amount of its fair value.

Basis Risk

The 2012-C Bonds were issued as Floating Rate Notes. During the initial three-year rate period, the

interest rate on the hedged bonds is indexed to 67% of one-month LIBOR with monthly rate resets plus

a constant of 65 basis points. The reference rate on the floating leg of each hedging derivative is also

67% of one-month LIBOR with weekly rate resets. Because the variable amount the District is paying

and receiving are both based on the same index, the District is not exposed to basis risk.


57



Interest Rate Risk

Interest payments on the hedged variable-rate debt are expected to increase (decrease) as LIBOR rates

increase (decrease). Because the variable amount the District is paying and receiving are both based on

67% of one-month LIBOR, the District’s exposure to interest rate risk is mitigated.

Termination Risk

The District has the unilateral right to voluntarily terminate the swap agreements at any time over their

term at the then prevailing market value. A counterparty may only terminate a swap if the District fails

to perform under the terms of the contract. The District’s options are to terminate with the swap

providers at an agreed market value, assign the Swap to a third party based on bids or quotes, or enter

into an off-setting swap transaction. If the swap should be terminated, the associated variable-rate bonds

would no longer carry synthetic fixed interest rates. Also, if at the time of the termination the swap has a

negative fair value, the District would be liable to the counterparty for a payment equal to the swap’s

fair value. The negative fair value of the swap agreements does not expose the District to a loss because

it is unlikely the District would exercise its termination rights when the fair value is negative. However,

should interest rates change and the fair value of the swap agreements become positive, the District

would receive payment of the fair value if the agreements were terminated.

The swap agreements are subject to termination in the event of default or if the ratings assigned to either

the District’s or the counterparty’s unenhanced long-term debt obligations are withdrawn or reduced to

BBB- by S&P or Baa3 by Moody’s. At August 31, 2013, the credit rating assigned to JP Morgan Chase

Bank, N.A. is A+ by S&P and Aa3 by Moody’s, while the credit rating assigned to Bank of America,

N.A. is A by S&P and A3 by Moody’s.

Remarketing and Rollover Risk

The 2012-C Bonds will bear interest initially at the rate of 67% of one-month LIBOR plus 65 basis

points from July 17, 2012 through and including August 14, 2015. The bonds do not require a liquidity

agent or a remarketing agent for that time period and therefore the District is not exposed to remarketing

risk during the initial rate period.

Thereafter, the bonds will bear interest at a LIBOR rate determined by a remarketing agent to be

selected by the District before the end of the initial rate period. In the event the remarketing agent at the

conversion date cannot remarket the bonds, the District does not have any obligation to purchase the

bonds at that time. In this event, the bonds that have been unsuccessfully remarketed will bear interest at

a rate of eight percent.

The District’s 2012-C Bonds and swaps have matching notional maturity dates of August 15, 2036;

therefore, the District is not exposed to rollover risk at this time.


58



Swap Payments and Associated Debt

As of August 31, 2013 the following are debt service requirements assuming current interest rates during

the initial rate period, and rates returning to pre-refunding rates thereafter.

Fiscal Year Ending Principal Interest* Total

2014 $ 5,255,500$ 5,255,500$

2015 5,255,500 5,255,500

2016 5,511,920 5,511,920

2017 5,506,655 5,506,655

2018 5,514,250 5,514,250

2019-36 115,000,000 59,916,085 174,916,085

Total 115,000,000$ 86,959,910$ 201,959,910$

*Initial rate period (July 17, 2012 through August 14, 2015) budgeted at 4.57%. Assumes 3.92%

synthetic fixed rate and .65% constant. Variable rate payments and receipts negate as they are based on

the same index and percentage.

Thereafter (August 15, 2015 through August 15, 2036) budgeted at 4.795%. Assumes 3.92% synthetic

fixed rate, .40% liquidity fees, .35% budgeted reserve, and .125% remarketing fees.

Accreted Interest on Premium Compound Interest Bonds

A portion of the Series 2005 and 2007 refunding bonds are capital appreciation bonds. These obligations

have a principal value of $304,928 and a maturity value of $11,425,000. The interest on these obligations

will be paid upon maturity in the fiscal years ending August 31, 2014 through August 31, 2018. The accreted

value of these bonds at August 31, 2013 is $10,132,918 including accreted interest on these bonds of

$9,827,990, which is reflected in the accompanying general long-term debt accounts.

Prior Year Advanced Refunding of General Long-Term Debt

In prior years the District defeased certain outstanding School Building and Refunding Bonds by placing the

proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old

bonds. Accordingly, the respective trust account assets and the liability for the defeased bonds are not

included in the District’s Financial Statements. At August 31, 2013 approximately $231.4 million previously

refunded bonds outstanding are considered defeased.


59


Build America Bonds

In February 2009, as part of the American Recovery and Reinvestment Act of 2009, Congress added

Sections 54AA and 6431 to the Internal Revenue Code of 1986, which permit state and local governments to

obtain certain tax advantages when issuing taxable obligations that meet certain requirements of the Code

and the related Treasury regulations. Such obligations are referred to as Build America Bonds (BABs).

In December 2010, the District issued Series 2010-D Bonds in the amount of $155,000,000 under the BABs

program. Under this program, the District receives semi-annual subsidies equal to 35% of the interest it pays

on the bonds. The subsidy payments received by the District will not be pledged as security for the payment

of the Series 2010-D Bonds and no holder of the Series 2010-D Bonds will be entitled to a tax credit or any

subsidy payment with respect to the Series 2010-D Bonds. The District intends to use the subsidy payments

for any lawful purpose, which may include payment of principal and interest on the Series 2010-D Bonds. In

the fiscal year ended August 31, 2013 the District received $3,097,130 in such subsidies. This includes a

reduction of the August 15, 2013 subsidy payment by 8.7% due to federal sequestration. The amount

received was recorded as federal revenue in the General Fund and, at the discretion of the District, was

transferred to the Debt Service Fund. The sequestration reduction percentage for 2014 has been set at 7.2%.

NOTE 10 – COMMITMENT TO FINANCE MULTI-PURPOSE COMPLEX THROUGH

PARTICIPATION IN TAX INCREMENT REINVESTMENT ZONE AGREEMENTS

Under a series of agreements, the District agreed to provide funding to finance $25,590,000 of tax-exempt

bonds issued in September 2002 by the Katy Development Authority (KDA). The Bonds are legally

described as The Katy Development Authority Tax Increment Contract Revenue Bonds (Katy ISD Contract),

Series 2002. The Bonds were issued pursuant to the terms and conditions of a Bond Resolution approved by

the KDA Board. The issuance of the bonds was approved by the Zone Board and the City Council of the

City of Katy (City). In June 2012 the KDA refunded the $18,800,000 outstanding Series 2002 Bonds by

issuing Series 2012 Refunding Bonds in the amount of $17,360,000.

Capital Lease Arrangement

The arrangements under the series of agreements constitute a capital lease arrangement for the District in

constructing a multi-purpose complex and this arrangement is not altered by the refunding. The District

recorded a capital lease obligation and a related asset in the approximate amount of the original bonds. Total

assets under capital lease at August 31, 2013 were $24,341,017. Of that amount $23,520,083 is classified as

Buildings and Improvements, $648,428 is Furniture and Equipment and $172,506 is Land Improvements.

The bond proceeds were used to construct a multi-purpose complex for large District functions. It is also

available for rent by outside entities. Although the KDA legally owns the multi-purpose center, the

agreements provide that the District lease, construct, and control the use of this facility during the life of the

bonds issued to construct it. Ownership of the multi-purpose complex will revert to the District once the

bonds are retired. District collected tax increments from the General Fund will be used to pay the debt during

this term through a lease arrangement between the District and the KDA. No rent paid to the District for use

of the multi-purpose complex will be pledged as security for the bonds.


60



(continued)

Capital Lease Arrangement (continued)

Pursuant to an Amended and Restated Interlocal Agreement between the City and the District (the Interlocal

Agreement), the District has agreed to pay to the City for deposit to a special account of the Tax Increment

Fund established for the Zone (the Tax Increment Fund) certain of its tax collections resulting from its

taxation of the increase, if any, in the appraised value of real property located in the Zone since the

designated base year of 1997 (the District Tax Increments). The City, the KDA, and the Zone have entered

into an agreement (the Tri-Party Agreement) which sets forth, among other things, the agreement of the City

on behalf of itself and the Zone, to pay to the KDA the District Tax Increments. Once debt service on the

bonds for the current bond year has been deposited and the applicable fees have been paid, the District may

use any surplus as specified in the Interlocal Agreement.

The KDA has pledged to the payment of the bonds all of its rights to the District Tax Increments and all of

its rights in the project and project site.

Significant aspects of the bonds/capital lease obligation of the District are shown below:

Maturity Date

Serially, Interest

Amount Interest Beginning/ Payment Callable

Series Outstanding Rates Ending Dates Dates

2012 16,245,000$ 2.88% 5/15/14 to May 15/ 2017*

5/15/25 November 15 2020**

*Bonds maturing on or after May 15, 2017 through May 15, 2020 are subject to redemption at a price of

102% of par value plus unpaid accrued interest from the most recent interest payment date to the date fixed

for redemption.

**Bonds maturing on or after May 15, 2021 are subject to redemption in whole, or from time to time in part,

at the option of KDA prior to their maturity dates on May 15, 2020 or on any date thereafter at a price of par

value plus unpaid accrued interest from the most recent interest payment date to the date fixed for

redemption.


61



(continued)

Capital Lease Arrangement (continued)

The debt service requirements on the bonds/capital lease obligation of the District are as follows:

Fiscal Year Ended Annual

August 31, Principal Interest Debt Service

2014 1,150,000$ 467,856$ 1,617,856$

2015 1,185,000 434,736 1,619,736

2016 1,220,000 400,608 1,620,608

2017 1,255,000 365,472 1,620,472

2018 1,290,000 329,328 1,619,328

2019 1,325,000 292,176 1,617,176

2020 1,365,000 254,016 1,619,016

2021 1,405,000 214,704 1,619,704

2022 1,445,000 174,240 1,619,240

2023 1,490,000 132,624 1,622,624

2024 1,535,000 89,712 1,624,712

2025 1,580,000 45,504 1,625,504

Total 16,245,000 3,200,976 19,445,976

Less: Current Portion 1,150,000 467,856 1,617,856

Long Term Lease 15,095,000$ 2,733,120$ 17,828,120$

The average annual calendar debt service on the bonds is $1,620,498 through maturity. The maximum

annual calendar debt service on the bonds is $1,625,504 through maturity.

Through the fiscal year ended August 31, 2013, the District has paid $31,502,612 in collected tax increments

and state revenues to the KDA. The District will pay additional tax increments of $1,859,668 collected in

fiscal 2012-13 and state revenues of $830,958 to the KDA in fiscal 2013-14, and these amounts have been

included as a liability in these financial statements. The District estimates that it will collect an additional

$2,877,449 in tax increments and state revenues in fiscal 2013-14 to be paid to the KDA in the 2014-15

fiscal year. The tax increment base value is $4,397,510 and the certified taxable value in the Zone for the

2013 tax year is $176,530,630. The District has received $7,863,802 in tax collections in excess of bond

payment requirements and related expenses. These proceeds have been placed in a special revenue fund to

be used within the TIRZ at the discretion of the District.


62



(continued)

Other Significant Information

The KDA, a public not-for-profit local government corporation, was authorized to be established by the City

of Katy, Texas in 1998, to aid, assist, and act on behalf of the City in the performance of the City’s

governmental functions and to provide a means of financing certain project costs in connection with

Reinvestment Zone Number One, City of Katy, Texas (the Zone). The KDA is governed by a board of

directors (the Board), whose voting members are appointed by the City. KDA is the administrator of the

Zone. The KDA is considered a discretely presented component unit of the City in accordance with

accounting principles generally accepted in the United States of America applicable to state and local

governments.

The Zone was created by the City Council of the City, pursuant to the provisions of the Tax Increment

Financing Act, Chapter 311, Texas Tax Code (the TIF Act), to facilitate development of the land within the

boundaries of the Zone, consisting of land located entirely within the City and Fort Bend County (the

County). The majority of the Zone, consisting of 479 acres, is bounded by Interstate 10 on the north, Pin Oak

Village and Falcon Point on the south, Katy Fort Bend Road on the east, and Pin Oak Road on the west. An

interchange on Interstate provides direct access to the Zone. The remainder of the property in the Zone is

located north of Interstate 10 and is owned by the District.

The ordinance of the City establishing the Zone also established a board of directors of the Zone (the Zone

Board). The Board of Directors of the Zone consists of nine persons: five appointed by the City, one

appointed by the County, one appointed by the District, one appointed by the state senator in whose district

the Zone is located, and one appointed by the state representative in whose district the Zone is located.

As required under the TIF Act, the Zone Board adopted, and the City Council of the City approved, a Project

Plan and Reinvestment Zone Financing Plan, which has been amended (as amended, the Plan). The Plan sets

out the public improvements needed to develop or induce development within the Zone (the Public

Improvements). The cost of the Public Improvements, the cost of creation of the Zone, and related

organizational costs (the Project Costs) constitute eligible project costs under the TIF Act, which may be

financed with proceeds of the bonds.


63

NOTE 11 – UNEARNED REVENUES

Governmental funds report unearned revenue in connection with receivables for revenues that are not

considered to be available to liquidate liabilities in the current period. Government funds also defer revenue

recognition in connection with resources that have been received but not yet earned. At the end of the current

fiscal year, the various components of deferred inflows of resources and unearned revenue at August 31,

2013 reported in the governmental funds were as follows:

Unavailable Unearned

Deferred Inflows of Resources

Net Property Taxes Receivable (General Fund) 7,289,430$ $

Net Property Taxes Receivable (Debt Service Fund) 2,338,238

Unearned Revenue

Proceeds-Expenditure

Driven State Grants (Special Revenue Fund) 177,924

Revenues Received Prior to Meeting all

Expenditure Requirements (General Fund) 205,242

Total 9,627,668$ 383,166$

NOTE 12 – FUND EQUITY

Nonspendable, Restricted, Committed and Assigned Fund Balance

A summary of nonspendable, restricted, committed and assigned fund balance at August 31, 2013 is as

follows:

Capital Non-Major

Fund Balances: General Debt Service Projects Governmental

Nonspendable:

Inventory 1,066,712$ $ $ 329,238$

Prepaid Items 1,386,909

Total Nonspendable 2,453,621$ $ $ 329,238$

Restricted for:

Long-Term Debt $ 49,508,819$ $ $

Capital Acquisitions and Contracts 105,435,285

Food Services 4,872,472

Tax Increment Zone 3,840,293

Health Services 146,512

Total Restricted $ 49,508,819$ 105,435,285$ 8,859,277$

Committed to:

Self Funded Insurance 5,000,000$ $ $ $

Campus Activity Funds 2,803,515

Total Committed 5,000,000$ $ $ 2,803,515$

Assigned to:

Future Technology Retrofits 10,850,000$ $ $ $

Opening Additional Schools 5,300,000

Self Funded Insurance-Stop Loss 1,000,000

Future Land Purchase 3,000,000

Capital Expenditures for Equipment 1,000,000

Other Assignments-Encumbrances 1,123,650

Total Assigned 22,273,650$ $ $ $


64

NOTE 13 – REVENUES FROM LOCAL AND INTERMEDIATE SOURCES

During the current year, revenues from local and intermediate sources consisted of the following:

Capital Non-Major

General Debt Service Projects Governmental Total

Property Taxes 247,700,743$ 87,928,488$ $ $ 335,629,231$

Penalties, Interest, and

Other Tax Related Income 1,491,563 515,956 2,007,519

Summer School, Tuition and Fees 1,597,089 1,597,089

Investment Income 610,092 205,170 264,415 21,125 1,100,802

Food Sales 13,910,788 13,910,788

Cocurricular Student Activities 1,560,560 1,560,560

Facility Rental 1,989,823 1,989,823

Other 1,060,481 5,820,515 6,880,996

Total 256,010,351$ 88,649,614$ 264,415$ 19,752,428$ 364,676,808$

NOTE 14 – GENERAL FUND FEDERAL PROGRAM REVENUES

For purposes of regulatory requirements of the Texas Education Agency, a summary of federal program

revenues received in the General Fund for the year ended August 31, 2013 follows:

Program or Source CFDA Number Amount

Naval Junior Reserve Officers Training Program n/a 70,596$

Federal Flood Control Funds 12.112 66

SHARS 93.778 4,610,945

E-Rate School and Libraries Universal Support n/a 909,470

Build America Bonds Subsidy n/a 3,097,130

Indirect Costs

National School Breakfast Program 10.553 148,787

National School Lunch Program 10.555 763,467

ESEA Title I, Part A - Improving Basic Programs 84.010A 67,745

IDEA Part B - Formula 84.027A 79,384

IDEA Part B - Preschool 84.173A 1,115

Carl D. Perkins, Title I, Part C 84.048A 5,499

ESEA Title II, Part A - Teacher & Principal 84.367A 13,836

ESEA Title III, Part A 84.365A 32,319

Early Childhood Intervention Various 22,419

IDEA Part B - Deaf 84.027A 627

IDEA Part B - Preschool Deaf 84.173A 122

Total 9,823,527$


65

NOTE 15 – RETIREMENT PLAN

Retirement Plan

Plan Description

The Teacher Retirement System of Texas (TRS) is a multiple-employer Public Employee Retirement

System (PERS). It is a cost-sharing PERS with one exception, all risks and costs are not shared by the

employer but are the liability of the State of Texas. By statute, the State of Texas contributes to the

retirement system an amount equal to the current authorized rate times the aggregate annual

compensation of all members of the retirement system during that fiscal year. The payroll for District

employees covered by the system for the fiscal year ended August 31, 2013 was approximately $352

million. The District’s total payroll was approximately $362 million.

For members of the retirement system entitled to the state’s statutory minimum salary for certain school

personnel, the District pays the state’s contribution on the portion of the member’s salary that exceeds

the statutory minimum.

Types of Employees Covered

All employees of public, state-supported educational institutions in Texas who are employed for one-

half or more of the standard workload and who are not exempted from membership under Texas

Government Code are covered by the plan.

Benefit Provisions

The Teacher Retirement System of Texas administers retirement and disability annuities and death and

survivor benefits to employees and beneficiaries of employees of the public school system of Texas. It

operates primarily under the provisions of Texas Constitution Article XVI, Section 67 and Texas

Government Code, Title 8, Subtitle C. The system also administers proportional retirement benefits and

service credit transfers under Texas Government Code, Title 8, Chapter 803 and Chapter 805,

respectively.

Service Retirement

1. Normal Age 65 with 5 years of service

Age 60 with 20 years of service (members on or after 9/01/07)

Any combination of age plus years of service which equals 80

2. Reduced Age 55 with at least 5 years of service

Any age below 50 (age 60 if member on or after 9/01/07) with

30 years of service

Age plus years of service total 80 and less than age 60

(members on or after 9/01/07)

A member is fully vested after five years of creditable service and entitled to any benefit for which

eligibility requirements have been met.


66

NOTE 15 – RETIREMENT PLAN (continued)

Retirement Plan (continued)

Funding Policy

State law provides a state contribution rate of 6.4% for fiscal year 2013, 6.0% for fiscal year 2012 and

6.644% for fiscal year 2011. State law further provides a member contribution rate of 6.4% for fiscal

years 2013, 2012, and 2011. In certain instances, the reporting district is required to make all or a

portion of the state’s 6.4% contribution.

Contribution requirements are not actuarially determined but are legally established each biennium

pursuant to the following state funding policy: (1) The state constitution requires the legislature to

establish a member contribution rate of not less than 6.0% of the member’s annual compensation and a

state contribution rate of not less than 6.0% of the member’s annual compensation and not more than

10% of the aggregate annual compensation of all members of the system during the fiscal year. (2) A

state statute prohibits benefit improvements or contribution reductions if, as a result of the particular

actions, 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 exceeds 31 years , the period would be increased by

such action.

Contributions Required and Made

Employees are required by state statute to pay 6.4% of their eligible gross earnings to TRS for

retirement benefits. The State of Texas contributed 6.4% of all employees’ eligible gross earnings

toward retirement benefits for fiscal year 2013, 6.0% for fiscal year 2012 and 6.644% for fiscal year

2011, except for those District employees subject to statutory minimum requirements and those

employees being paid from and participating in federally funded programs. The statutory minimum

requirements are based on the State of Texas teacher schedule and then adjusted, based on local tax

rates. For employees funded by federal programs, the federal programs are required to contribute 6.4%

for fiscal year 2013, 6.0% for fiscal year 2012 and 6.644% for fiscal year 2011.

Contributions made by the state, District, and employees, and the District’s annual covered payroll for

the fiscal years are as follows:

State TRS District Percentage of District's

Pension Contribuitons Required Total Payroll Employees' Annual

Fiscal Made on Behalf Contributions Contributed Contributions Covered

Year of the District to TRS By District to TRS Payroll

2011 18,891,747$ 4,731,099$ 1.33% 22,752,573$ 355,508,588$

2012 15,916,845 3,783,874 1.15 21,014,124 328,345,312

2013 17,812,315 4,751,427 1.35 22,563,614 352,558,343

The contributions made by the state on behalf of the District have been recorded in the financial

statements of the District as both state revenue and payroll expenditures. These contributions are the

legal responsibility of the state.


67


Retirement Plan (continued)

Contributions Required and Made (continued)

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.

Retiree Health Plan

Plan Description

The 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-Care Retired Plan provides health care coverage for

certain persons (and their dependents) who retired under the Teacher Retirement System of Texas. The

statutory authority for the program is Texas Insurance Code, Chapter 1575. Section 1575.052 grants the

TRS Board of Trustees the authority to establish and amend basic and optional group insurance

coverage for participants. The TRS issues a publicly available financial report that includes financial

statements and required supplementary information for TRS-Care. That report may be obtained by

visiting the TRS website at www.trs.state.tx.us, by writing to the Communications Department of the

Teacher Retirement System of Texas at 1000 Red River Street, Austin, Texas 78701, or by calling 1-

800-223-8778.

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 contribution rates were

0.50% for 2013 and 1.0% for 2012 and 2011. Active public school employee contribution rates 0.65% of

public school payroll, with school districts contributing a percentage of payroll set at 0.55% for fiscal

years 2013, 2012, and 2011. Per Texas Insurance Code, Chapter 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.

Contributions made by the state, District, and active employees for the years ended August 31, 2013,

2012, and 2011 to TRS-Care are as follows:

State TRS-Care District Active

Contribuitons Required Employees'

Made on Behalf Contributions Contributions

Fiscal Year of the District to TRS-Care to TRS-Care

2011 3,376,823$ 2,090,397$ 2,310,823$

2012 3,132,700 1,920,613 2,134,245

2013 1,669,259 2,000,191 2,291,581

http://www.trs.state.tx.us/

http://www.trs.state.tx.us/


68


Retiree Health Plan (continued)

Medicare Part D

The Medicare Prescription Drug, Improvement, and Modernization Act of 2003, effective January 1,

2006, established prescription drug coverage for Medicare beneficiaries known as Medicare Part D. One

of the provisions of Medicare Part D allows for the Texas Public School Retired Employee Group

Insurance Program (TRS-Care) to receive retiree drug subsidy payments from the federal government to

offset certain prescription drug expenditures for eligible TRS-Care participants. For the fiscal years

ended August 31, 2013, 2012, and 2011, the subsidy payments received by TRS-Care on-behalf of the

District were $977,024, $727,912, and $913,527, respectively. The contributions made on behalf of the

District have been recorded in the financial statements of the District as both revenue and payroll

expenditure.

Compensated Absences

The District pays one-half of the locally accumulated sick leave days up to a maximum of 90

accumulated days to employees who retire with five or more years of continuous employment in the

District and who retire from the state Teacher Retirement System. The majority of the payments are

administered through Public Agency Retirement Services (PARS). During 2013, $598,594 was

disbursed to 91 members. No assets are being held or accumulated for future distribution. The District

has accrued $20,700,459 in the Government-wide Financial Statements to pay for compensated

absences.

NOTE 16 – RISK MANAGEMENT

The District is exposed to various risks related to torts: theft of, damage to and destruction of assets, errors

and omissions, natural disasters, health and welfare of employees for which the District carries commercial

insurance or self-insures. No settlements have exceeded insurance coverage in the last three years.

Property, Casualty, General Liability, Professional Liability, and Unemployment

The District purchases commercial insurance for property loss with limits of $250 million, $25 million for

named windstorms. The policy covers up to $25 million per year for flood losses. In addition, the policy

covers $1 million for the one property currently in a flood plain. The District purchases an additional $.5

million building and $.5 million contents in flood protection for this facility. Casualty risks are insured by a

risk pool through an Interlocal agreement with Texas Association of School Boards (TASB), with limits of

$1 million per occurrence and $3 million aggregate for commercial general liability and a $.5 million

combined single limit automobile policy. Professional liability risks are insured with limits of $1 million.

Within these policy limits, the District’s exposure is limited to deductibles.


69

NOTE 16 – RISK MANAGEMENT (continued)

Property, Casualty, General Liability, Professional Liability, and Unemployment (continued)

In addition to purchasing insurance for property, casualty, and liability risks, the District is a member of the

Texas Association of School Boards Property/Casualty Joint Account, a public entity risk pool. The District

uses the risk pool for its unemployment insurance coverage. The District’s participation in the risk pool is

limited to payment premiums for its unemployment coverage. The risk pool is fully funded through annual

premiums, and excess loss policies are purchased by the pool as considered necessary. Settled claims have

not exceeded insurance coverage in any of the previous three fiscal years.

There has not been any significant reduction in insurance coverage from that of the previous year.

Health Insurance

Effective January 1, 2004, the District established a partially self-insured program for health insurance

coverage. Contributions are paid from all governmental funds to the Health Insurance Internal Service Fund

from which all claims and administrative expenses are paid. Claims administration and consulting services

are provided to the District through a third party administrator. The District maintains aggregate stop loss

coverage. The District is insured for covered medical claims paid and incurred during the plan year by Aetna

under an annual aggregate insurance contract. The coverage provides that the insurer will pay such claims

that exceed the annual aggregate attachment point that is determined by a monthly amount per covered

employee based on the tier of coverage in which they are enrolled.

An accrual for incurred but not reported claims in the amount of $1.6 million has been recorded in the fund

as of August 31, 2013. Claims payable, including an estimate of claims incurred but not reported, was

actuarially determined based on an estimate of the remaining liability of known claims.

At August 31, 2013, the fund had net position of $323,050. Because of past history and the method of

calculation, the District considers all claims to be current liabilities. Changes in incurred but not paid claims

liability for the fiscal years ended August 31, 2013 and 2012 are as follows:

2013 2012

Beginning Accrual 762,279$ 1,889,246$

Current Estimates 33,815,484 29,112,458

Payments for Claims (32,932,615) (30,239,425)

Ending Accrual 1,645,148$ 762,279$

Health Insurance

Workers’ Compensation

The District established a limited risk management program for Workers’ Compensation in 1992 by setting

up the Workers’ Compensation Internal Service Fund to account for its insured and self-insured risk of loss.

The Internal Service Fund charges the General Fund and Special Revenue Funds on the basis of payroll

incurred by each fund in order to provide for Workers’ Compensation claims of District employees. The

ending retained earnings balance in the Internal Service Fund has been accumulated by the District’s management to reserve for losses which may be incurred under its partially self-insured plan. The Internal

Service Fund services all claims for risk of loss to which the District is exposed.


70

NOTE 16 – RISK MANAGEMENT (continued)

Workers’ Compensation (continued)

Workers’ Compensation liabilities are reported when it is probable that a loss has occurred and the amount

of that loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but

were not reported until after August 31, 2013. Because of past history, the District considers all claims to be

current liabilities. Because actual claims liabilities depend on such complex factors as inflation, changes in

legal requirements and impairment benefits, the process used in computing claims liability results in an

estimate. Claims liabilities are re-evaluated periodically to take into consideration recently settled claims, the

frequency of claims, and other economic and social factors.

Claims liability activities for 2013 compared to 2012 are as follows:

2013 2012

Beginning Accrual 778,043$ 752,387$

Current Estimates 964,671 906,702

Payments for Claims (965,726) (881,046)

Ending Accrual 776,988$ 778,043$

Workers' Compensation

At August 31, 2013, the District had $4.4 million in cash available for payment of Workers’ Compensation

claims. The District has also purchased an excess Workers’ Compensation policy for coverage relating to

excessive Workers’ Compensation claims. The District has a $550,000 Self-Insured Retention (SIR) per any

one occurrence. The policy has an obligation to pay all costs required by the Texas Workers’ Compensation

Act in excess of the District’s SIR for each workers’ compensation occurrence.

NOTE 17 – ARBITRAGE

In accordance with the provisions of Section 148(f) of the Internal Revenue Code of 1986, as amended,

bonds must satisfy certain arbitrage rebate requirements. Positive arbitrage is the excess of 1) the amount

earned on investments purchased with bond proceeds over 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 not recorded a liability for arbitrage as of

August 31, 2013. In management’s opinion, the arbitrage liability, if any, would be immaterial to the

financial statements as of August 31, 2013.


71

NOTE 18 – JOINT VENTURE SHARED SERVICE ARRANGEMENTS

The District is the fiscal agent for a Shared Service Arrangement (SSA) which provides services for deaf

students of the District, Bellville ISD, Brazos ISD, Royal ISD and Sealy ISD. All services are provided by

the fiscal agent, and funds are received directly by the fiscal agent from the granting agency. According to

guidance provided in TEA’s Resource Guide, the District has accounted for the fiscal agent’s activities of

the SSA in the appropriate Special Revenue Funds and has accounted for these funds using Model 2 in the

SSA section of the Resource Guide. Expenditures as of August 31, 2013 of the SSA are summarized below:

Katy ISD Bellville ISD Brazos ISD Royal ISD Sealy ISD

IDEA-B Discretionary, Deaf 43,538$ 2,902$ 1,161$ 1,742$ 2,322$

IDEA-B Deaf 30,281 2,019 807 1,211 1,615

IDEA-B Preschool, Deaf 3,267 218 87 131 174

IDEA-C Early Intervention 915 61 24 37 49

Regional Day School For the Deaf 443,693 29,580 11,832 17,747 23,664

Local Share, Deaf 169,623 11,308 4,523 6,785 9,047

691,317$ 46,088$ 18,434$ 27,653$ 36,871$

The District also participates in a Shared Service Arrangement for deaf education services with seven other

school districts. Approximately 2% of the students served by the Shared Service Arrangement are

attributable to the District. The District does not account for revenues or expenditures of this program and

does not disclose them in these financial statements. The District neither has a joint ownership interest in

capital assets purchased by the fiscal agent, Cypress-Fairbanks ISD, nor does the District have a net equity

interest in the fiscal agent.

The fiscal agent is neither accumulating significant financial resources nor fiscal contingencies that would

give rise to a future additional benefit or burden to Katy ISD. The fiscal agent manager is responsible for all

financial activities of the Shared Services Arrangement. Presented below are the revenues and expenditures

as of August 31, 2013 attributable to the District’s participation.

Revenues:

Local Revenue 30,864$

State Revenue 37,482

Total Revenues 68,346$

Expenditures:

Payroll Costs 66,857$

Contract Services 1,451

Other Operating Expenditures 38

Total Expenditures 68,346$

NOTE 19 – LITIGATION AND CONTINGENCIES

From time to time, the District is a defendant in legal proceedings relating to its operations as a school

district. In the best judgment of the District’s management, the outcome of any present legal proceedings

will not have any adverse material effect on the accompanying financial statements.


72

NOTE 20 – OTHER FINANCING SOURCES

During the 2012-13 fiscal year, the District received reimbursement for legal fees of $226,455. $191,330

related to legal fees paid in previous years. This amount was recorded as an other financing source. The

portion relating to current year fees paid was recorded as an offset to the expenses.

NOTE 21 – PRIOR PERIOD ADJUSTMENTS

The District eliminated the remaining unamortized bond issuance costs for the outstanding bonds in

accordance with the implementation of GASB Statement No. 65. The District also restated the ending

Building and Improvements balance for retainage payable expensed in the year ended August 31, 2012,

which has now been capitalized. The effect of this change on the beginning net position balance of the

Government-wide Statement of Activities is as follows:

Statement of

Activities

Net Position at September 1, 2012 188,522,021$

Elimination of unamortized debt issuance costs in accordance with GASB 65 (10,646,231)

Capitalization of retainage expenses in prior year 7,847,541

Net Position at September 1, 2012 (as restated) 185,723,331$

NOTE 22 – IMPLEMENTATION OF NEW GASB STATEMENTS

The accompanying financial statements reflect the implementation of GASB Statement number 65.

Significant impacts of GASB Statement No. 65 include reclassifying certain balances that were previously

reported as assets and liabilities as deferred inflows of resources and deferred outflows of resources. GASB

Statement No. 65 also required debt issuance costs to be reported as expenses when incurred. The retroactive

effects of implementing this change in reporting debt issuance costs resulted in a restatement of the

beginning net position of the government-wide funds, as described in Note 21.

73

REQUIRED SUPPLEMENTARY INFORMATION

74


SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

ORIGINAL BUDGET, AMENDED FINAL, AND ACTUAL – GENERAL FUND


with comparative actual balances for the Year Ended August 31, 2012

Data

Control

Codes Original Final

REVENUES



5900 Federal Program Revenues 9,636,157 9,936,630

5020 Total Revenues 467,291,332 479,128,134

EXPENDITURES

Current:

0011 Instruction 292,621,033 293,390,927

0012 Instructional Resources and Media Services 6,193,739 6,414,745

0013 Curriculum and Staff Development 5,409,184 5,876,013

0021 Instructional Leadership 3,873,570 3,818,697

0023 School Leadership 27,506,502 28,381,768

0031 Guidance, Counseling, and Evaluation Services 18,250,925 18,860,731

0033 Health Services 4,508,342 4,449,998

0034 Student Transportation 15,545,767 14,075,135

0036 Cocurricular/Extracurricular Activities 9,394,278 9,724,107

0041 General Administration 10,033,425 9,589,685

0051 Plant Maintenance and Operations 43,880,892 45,202,021

0052 Security and Monitoring Services 5,246,282 5,602,602

0053 Data Processing Services 8,347,487 9,073,261

0061 Community Services 609,082 617,130

0081 Capital Outlay: Facilities Acquisition and Construction 804,258 3,616,283

0095 Payments to Juvenile Justice Alternative Education Programs 135,965 63,740

0097 Payments to Tax Increment Reinvestment Zone 2,724,486 2,724,486

0099 Other Intergovernmental Charges 2,500,000 2,457,000


1100 Excess (Deficiency) of Revenues Over Expenditures 9,706,115 15,189,805

OTHER FINANCING SOURCES (USES)

7912 Sales of Real and Personal Property 52,000

7915 Transfers In 500,000 650,000

8911 Transfers Out (4,737,982) (5,097,130)

7080 Total Other Financing Sources (Uses) (4,237,982) (4,395,130)

SPECIAL ITEMS

7918 Insurance Recovery

1200 Net Change in Fund Balances 5,468,133 10,794,675

0100 Fund Balances - Beginning 126,906,182 126,906,182

3000 Fund Balances - Ending 132,374,315$ 137,700,857$

Budgeted Amounts

See accompanying notes to the Required Supplementary Information

2013

75

Exhibit F-1

2012

Variance with

Final Budget

Actual Positive (Negative) Actual

256,010,351$ 828,500$ 238,968,668$

216,400,712 2,391,059 194,328,921

9,823,527 (113,103) 6,154,932

482,234,590 3,106,456 439,452,521

289,637,973 3,752,954 260,023,220

6,202,143 212,602 5,832,280

5,313,897 562,116 4,394,335

3,594,095 224,602 3,391,165

27,900,487 481,281 26,016,276

18,387,376 473,355 16,203,940

4,351,710 98,288 3,887,408

13,552,241 522,894 13,967,256

9,057,668 666,439 8,536,357

8,805,920 783,765 9,144,847

45,048,728 153,293 42,811,505

5,427,576 175,026 4,826,934

8,773,599 299,662 7,436,616

511,587 105,543 472,376

3,492,435 123,848 1,847,534

18,088 45,652 32,924

2,690,626 33,860 2,435,819

2,455,136 1,864 2,348,096

455,221,285 8,717,044 413,608,888

27,013,305 11,823,500 25,843,633

65,781 13,781 4,235,947

626,394 (23,606) 468,281

(5,597,130) (500,000) (3,237,982)

(4,904,955) (509,825) 1,466,246

191,330 191,330 312,787

22,299,680 11,505,005 27,622,666

126,906,182 99,283,516

149,205,862$ 11,505,005$ 126,906,182$

76


NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

For the Year Ended August 31, 2013

Budgets and Budgetary Accounting Each school district in Texas is required by law to prepare annually a budget of anticipated revenues and

expenditures for the General Fund, the Child Nutrition Fund and the Debt Service Fund for the fiscal year

beginning September 1. The Texas Education Code requires the budget to be prepared not later than August 20

and adopted by August 31 of each year. The Budgets are prepared on a basis of accounting that is used for

reporting in accordance with Generally Accepted Accounting Principles.

The District annually adopts legally authorized appropriated budgets for the General, Debt Service, and certain

Special Revenue funds.

The District’s administration performs budget reviews during the year by which budget requirements are re-

evaluated and revisions recommended to the Board. The Board may approve amendments to the budget, which

are required when a change is made to any one of the functional expenditure categories or revenue object

accounts defined by the TEA. Expenditures may not legally exceed budgeted appropriations, as amended, at

the function level by fund. Unexpended appropriations lapse at year-end.

The following procedures were followed in establishing the budgetary data reflected in the Fund Financial

Statements:

1. Prior to August 20 the District prepares a budget for the next succeeding fiscal year beginning

September 1. The operating budget includes proposed expenditures and the means of financing them.

2. A meeting of the Board is then called for the purpose of adopting the proposed budget. At least ten

days public notice of the meeting must be given.

3. Prior to September 1, the budget is legally enacted through passage of a resolution by the Board. Once

a budget is approved, it can only be amended at the function and fund level by approval of a majority

of the members of the Board. Amendments are presented to the Board at its regular meetings. Each

amendment must have Board approval. As required by law, such amendments are made before the

fact, are reflected in the official minutes of the Board, and are not made after fiscal year end. Because

the District has a policy of careful budgetary control, several amendments were necessary during the

year.

4. Each budget is controlled by the budget coordinator at the revenue and expenditure function/object

level. Budgeted amounts are amended by the Board. All budget appropriations lapse at year end.

During the fiscal year ended August 31, 2013 the District did not have any expenditures over appropriations on

all required legally adopted budgets.

77

COMPARATIVE STATEMENTS, COMBINING STATEMENTS

AND BUDGET COMPARISONS

78


79

GENERAL FUND

The General Fund is used to account for all financial transactions not properly included in other funds.

The principal sources of revenues include local property taxes, state reimbursement for professional

salaries and other operating expenditures, and earnings on investments. Expenditures include all costs

associated with the daily operations of the schools.

80


COMPARATIVE BALANCE SHEET Exhibit G-1

GENERAL FUND

AUGUST 31, 2013

Data

Control August 31, August 31,

Codes 2013 2012

ASSETS

1110 Cash and Temporary Investments at Fair Value 165,863,809$ 152,359,584$

Receivables:


1240 Due from Other Governments 1,920,988 68,168

1260 Due from Other Funds 3,717,795

1290 Other Receivables 1,270,708 818,779

1300 Inventories, at Cost 1,066,712 1,005,386

1410 Prepaid Items 1,386,909 231,458

1000 Total Assets 178,798,556$ 165,737,591$

LIABILITIES


2110 Accounts Payable 9,250,922$ 8,001,239$

2150 Payroll Withholding Payable 1,035,754 637,229

2160 Accrued Wages Payable 5,167,525 5,182,497

2170 Due to Other Funds 3,610,501

2180 Due to Other Governments 2,690,626 16,863,885

2200 Accrued Expenditures 342,694 409,577

2300 Unearned Revenue 205,242 200,561

2000 Total Liabilities 22,303,264 31,294,988



FUND BALANCE

Fund Balances:

3410/30 Nonspendable 2,453,621 1,236,844

3540 Committed 5,000,000 5,000,000

3580 Assigned 22,273,650 34,873,093

3600 Unassigned 119,478,591 85,796,245

3000 Total Fund Balance 149,205,862 126,906,182



81


SCHEDULE OF REVENUES – BUDGET AND ACTUAL Exhibit G-2

GENERAL FUND


with comparative actual balances for the year ended August 31, 2012

2012

Variance

Positive

Budget Actual (Negative) Actual

Local Sources

Real and Personal Property Taxes 246,535,000$ 247,332,638$ 797,638$ 230,735,719$

Taxes Collected on Tax Increment Zone 1,861,851 1,859,668 (2,183) 1,683,555

Tuition and Fees from Patrons 1,564,000 1,597,089 33,089 1,357,487

Investment Income 608,000 610,092 2,092 517,358

Rental Income 1,865,000 1,989,823 124,823 2,144,053

Donations 28,000 54,115 26,115 25,223

Athletics 1,590,000 1,560,560 (29,440) 1,320,056

Other 1,130,000 1,006,366 (123,634) 1,185,217

Revenues - Local Sources 255,181,851 256,010,351 828,500 238,968,668

State Sources

Per Capita and Foundation 193,031,437 195,932,753 2,901,316 173,733,371

TRS On-Behalf Benefit 20,978,216 20,458,598 (519,618) 20,580,101

Other State Revenue 9,361 9,361 15,449

Revenues - State Sources 214,009,653 216,400,712 2,391,059 194,328,921

Federal Sources

Indirect Costs - Federal Grants 1,133,500 1,135,320 1,820 999,728

Federal Grants 1,035,148 980,132 (55,016) 62,882

SHARS 4,530,000 4,610,945 80,945 1,854,340

Build America Bonds Subsidy 3,237,982 3,097,130 (140,852) 3,237,982

Revenues - Federal Sources 9,936,630 9,823,527 (113,103) 6,154,932

Total Revenues 479,128,134$ 482,234,590$ 3,106,456$ 439,452,521$

2013

82


SCHEDULE OF EXPENDITURES – BUDGET AND ACTUAL Exhibit G-3

GENERAL FUND Page 1 of 4



2012 (1)

Variance

Positive

Function Budget Actual (Negative) Actual

Instruction and Instruction-Related Services

Instruction

6100 Payroll Costs 281,621,311$ 279,352,571$ 2,268,740$ 249,511,690$

6200 Purchased and Contracted Services 964,528 639,897 324,631 628,975

6300 Supplies and Materials 10,298,523 9,084,150 1,214,373 9,187,760

6400 Other Operating Expenditures 407,256 362,637 44,619 311,170

6600 Capital Outlay 99,309 198,718 (99,409) 383,625

Total Instruction 293,390,927 289,637,973 3,752,954 260,023,220

Instructional Resources and Media Services

6100 Payroll Costs 5,565,523 5,388,451 177,072 5,095,422

6200 Purchased and Contracted Services 7,223 6,227 996 6,796

6300 Supplies and Materials 834,363 804,527 29,836 724,269


Total Instructional Resources/Media Svc. 6,414,745 6,202,143 212,602 5,832,280

Curriculum and Instructional Staff Development

6100 Payroll Costs 4,451,013 4,287,413 163,600 3,614,277




Total Curriculum/Instr. Staff Development 5,876,013 5,313,897 562,116 4,394,335

Total Instruction and

Instruction-Related Services 305,681,685 301,154,013 4,527,672 270,249,835

Instruction and School Leadership

Instructional Administration

6100 Payroll Costs 3,436,489 3,383,129 53,360 3,198,940




Total Instructional Administration 3,818,697 3,594,095 224,602 3,391,165

School Administration

6100 Payroll Costs 27,621,517 27,262,575 358,942 25,372,744




6600 Capital Outlay 8,124 8,124

Total School Administration 28,381,768 27,900,487 481,281 26,016,276

Total Instruction and School Leadership 32,200,465 31,494,582 705,883 29,407,441

2013

83






2012 (1)

Variance

Positive


Support Services - Student (Pupil)

Guidance and Counseling Services

6100 Payroll Costs 17,617,584$ 17,412,945$ 204,639$ 15,288,445$




Total Guidance and Counseling Services 18,860,731 18,387,376 473,355 16,203,940

Health Services

6100 Payroll Costs 4,294,950 4,233,894 61,056 3,779,521




Total Health Services 4,449,998 4,351,710 98,288 3,887,408

Student (Pupil) Transportation

6100 Payroll Costs 10,934,174 10,551,130 383,044 10,341,706

6200 Purchased and Contracted Services 165,500 193,802 (28,302) 164,785

6300 Supplies and Materials 2,674,364 2,539,743 134,621 2,567,682


6600 Capital Outlay 22,843 21,812 1,031 711,082

Total Student (Pupil) Transportation 14,075,135 13,552,241 522,894 13,967,256

Cocurricular/Extracurricular Activities

6100 Payroll Costs 6,166,366 5,826,266 340,100 5,682,057



6400 Other Operating Expenditures 1,435,497 1,350,463 85,034 1,172,832

6600 Capital Outlay 24,058 24,058

Total Cocurricular/Extracurricular Activities 9,724,107 9,057,668 666,439 8,536,357

Total Support Services - Student (Pupil) 47,109,971 45,348,995 1,760,976 42,594,961

2013

84






2012 (1)

Variance

Positive


Administrative Support Services

General Administration

6100 Payroll Costs 6,979,962$ 6,570,357$ 409,605$ 6,847,192$

6200 Purchased and Contracted Services 1,546,734 1,443,792 102,942 1,260,400



6600 Capital Outlay 6,000 5,704 296 27,882

Total Administrative Support Services 9,589,685 8,805,920 783,765 9,144,847

Support Services - Nonstudent Based

Plant Maintenance and Operations

6100 Payroll Costs 20,942,993 20,700,404 242,589 19,543,038

6200 Purchased and Contracted Services 18,436,141 18,625,849 (189,708) 19,016,428


6400 Other Operating Expenditures 1,514,568 1,516,564 (1,996) 1,132,593

6600 Capital Outlay 646,159 642,564 3,595 166,966

Total Plant Maintenance and Operations 45,202,021 45,048,728 153,293 42,811,505

Security and Monitoring Services

6100 Payroll Costs 4,959,789 4,804,200 155,589 4,431,121




6600 Capital Outlay 223,076 223,026 50 113,912

Total Security and Monitoring Services 5,602,602 5,427,576 175,026 4,826,934

Data Processing Services

6100 Payroll Costs 6,310,526 6,125,361 185,165 5,717,344




6600 Capital Outlay 103,451 341,330 (237,879) 15,640

Total Data Processing Services 9,073,261 8,773,599 299,662 7,436,616

Total Support Services - Nonstudent Based 59,877,884 59,249,903 627,981 55,075,055

Ancillary Services

Community Services

6100 Payroll Costs 453,525 384,950 68,575 337,678


6300 Supplies and Materials 64,970 64,194 776 74,156

6400 Other Operating Expenditures 6,271 5,559 712 6,106

Total Ancillary Services 617,130 511,587 105,543 472,376

2013

85






2012 (1)

Variance

Positive


Capital Outlay

Facilities Acquisition and Construction

6100 Payroll Costs 636,328$ 606,082$ 30,246$ 594,074$



6600 Capital Outlay 2,972,265 2,881,701 90,564 1,247,351

Total Capital Outlay 3,616,283 3,492,435 123,848 1,847,534

Intergovernmental Charges

Payments to Juvenile Justice Alternative

Education Program


Payments to Tax Increment

Reinvestment Zone

6400 Other Operating Expenditures 2,724,486 2,690,626 33,860 2,435,819

Other Intergovernmental Charges

6200 Purchased and Contracted Services 2,457,000 2,455,136 1,864 2,348,096

Total Intergovernmental Charges 5,245,226 5,163,850 81,376 4,816,839

6030 Total Expenditures 463,938,329$ 455,221,285$ 8,717,044$ 413,608,888$

(1) Expenditures reduced for Education Jobs Fund recorded in Special Revenue Fund.

2013

86


87

DEBT SERVICE FUND

The Debt Service Fund is used to account for revenues from debt service taxes and earnings on

investments which are used for payment of interest and principal on the District’s bonded

indebtedness.

88


89


COMPARATIVE BALANCE SHEET Exhibit H-1

DEBT SERVICE FUND

AUGUST 31, 2013 and 2012

Data

Control August 31, August 31,

Codes 2013 2012

ASSETS

1110 Cash and Investments at Fair Value 46,191,586$ 44,573,042$

Receivables:


1240 Due from Other Governments 214,039

1250 Accrued Interest 5,990 7,572

1260 Due from Other Funds 3,177,829 222,261

1000 Total Assets 51,927,682$ 47,136,273$

LIABILITIES


2110 Accounts Payable 80,625$ 51,329$

2140 Interest Payable Current 79,347

2180 Due to Other Governments 845,723

2000 Total Liabilities 80,625 976,399



FUND BALANCE

Restricted For:

3480 Retirement of Long-term Debt 49,508,819 43,826,476

3000 Total Fund Balance 49,508,819 43,826,476



90


SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE – ORIGINAL BUDGET, AMENDED FINAL, AND ACTUAL DEBT SERVICE FUND



Data

Control


REVENUES



5020 Total Revenues 89,532,680 92,633,697

EXPENDITURES

Debt Service:

0071 Principal on Long-Term Debt 35,255,000 35,255,000

0072 Interest on Long-Term Debt 55,593,306 55,750,000

0073 Bond Issuance Costs and Fees 316,694 100,000


1100 Excess (Deficiency) of Revenues

Over (Under) Expenditures (1,632,320) 1,528,697


7901 Refunding Bonds Issued

7915 Transfers In 3,482,982 3,317,130

7916 Premium on Issuance of Bonds

8940 Payment to Bond Refunding Escrow Agent

7080 Total Other Financing Sources and Uses 3,482,982 3,317,130

1200 Net Change in Fund Balance 1,850,662 4,845,827

0100 Fund Balances - Beginning 43,826,476 43,826,476

3000 Fund Balances - Ending 45,677,138$ 48,672,303$

Budgeted Amounts

2013

91

Exhibit H-2

2012

Variance with

Final Budget

Positive

Actual (Negative) Actual

88,649,614$ 280,819$ 82,719,642$

4,619,828 354,926 4,639,729

93,269,442 635,745 87,359,371

35,255,000 35,181,136

55,662,253 87,747 50,163,326

31,111 68,889 3,060,606

90,948,364 156,636 88,405,068

2,321,078 792,381 (1,045,697)

167,785,000

3,361,265 44,135 3,613,433

7,502,404

(174,020,686)

3,361,265 44,135 4,880,151

5,682,343 836,516 3,834,454

43,826,476 39,992,022

49,508,819$ 836,516$ 43,826,476$

92


93

CAPITAL PROJECTS FUND

The Capital Projects Fund is used to account for proceeds from the sale of general obligation bonds and

the expenditures of these funds for the construction and equipping of new school facilities, to purchase

school sites, and the renovation or repair of present facilities.

94


COMPARATIVE BALANCE SHEET


AUGUST 31, 2013 and 2012

Katy Development

Katy Independent Authority

Data School District Multi-Purpose

Control Capital Projects Complex for the

Codes Fund District

ASSETS

1110 Cash and Investments at Fair Value 124,543,317$ $

Receivables:

1240 Due from Other Governments

1260 Due from Other Funds 174,433

1000 Total Assets 124,717,750$ $

LIABILITIES


2110 Accounts Payable 19,271,934$ $

2160 Accrued Wages Payable 10,531

2170 Due to Other Funds

2000 Total Liabilities 19,282,465

FUND BALANCE

Restricted For:

3470 Capital Acquisitions and Contracts 105,435,285

3000 Total Fund Balance 105,435,285

4000 Total Liabilities and Fund Balance 124,717,750$ $

95

Exhibit I-1

August 31, August 31,

2013 2012

124,543,317$ 109,292,744$

292,700

174,433

124,717,750$ 109,585,444$

19,271,934$ 24,044,243$

10,531 13,552

69,669

19,282,465 24,127,464

105,435,285 85,457,980

105,435,285 85,457,980

124,717,750$ 109,585,444$

Total

96


SCHEDULE OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCE


YEAR ENDED AUGUST 31, 2013 and 2012

Katy Development

Katy Independent Authority

Data

Control

Codes

School District

Capital Projects

Fund

Multi-purpose

Complex for the

District

REVENUES

5700 Local, Intermediate, and Out-of-State 264,135$ 280$

5900 Federal Program Revenues 3,161,027

5020 Total Revenues 3,425,162 280

EXPENDITURES

0081 Facilities Acquisition and Construction:

Land and Improvements 417,601

Building and Improvements 74,672,782 292,980

Furniture and Equipment 17,595,639

Total Facilities Acquisition and Construction 92,686,022 292,980

0073 Bond Issuance Cost and Other Fees 984,789

6030 Total Expenditures 93,670,811 292,980


Over (Under) Expenditures (90,245,649) (292,700)


7911 Capital Related Debt Issued 103,000,000

7916 Premium on Issuance of Bonds 7,779,789

8911 Transfers Out (264,135)

7080 Total Other Financing Sources (Uses) 110,515,654

1200 Net Change in Fund Balance 20,270,005 (292,700)

0100 Fund Balances - Beginning 85,165,280 292,700

3000 Fund Balances - Ending 105,435,285$ $

97

Exhibit I-2

August 31,

2013

August 31,

2012

264,415$ 375,777$

3,161,027

3,425,442 375,777

417,601 2,225,362

74,965,762 165,639,860

17,595,639 26,946,273

92,979,002 194,811,495

984,789 1,182,418

93,963,791 195,993,913

(90,538,349) (195,618,136)

103,000,000 129,370,000

7,779,789 21,812,418

(264,135) (375,451)

110,515,654 150,806,967

19,977,305 (44,811,169)

85,457,980 130,269,149

105,435,285$ 85,457,980$

Total

98


99

NONMAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS

Special Revenue Funds are used to account for financial resources restricted to or designated for specific

purposes by a grantor. Specifically, this type of fund is used to account for the District’s Food Service

program, including local and federal revenue sources for state and federally financed programs (grants)

where unused balances are returned to the grantor at the close of specified project periods, and other

revenue specific programs.

100

Special Revenue Fund Program Descriptions

Elementary and Secondary Education Act (ESEA) Title I, Part A – Improving Basic Programs - Funds are used on identified campuses to enable schools to provide opportunities for children served

to acquire the knowledge and skills contained in the challenging State content standards and to meet

the challenging State performance standards developed for all children.

Individuals with Disabilities Education Act (IDEA), Part B – Formula - Funds are used to operate

educational programs for children with disabilities. This fund also includes capacity building and

improvement (sliver) subgrants.

Individuals with Disabilities Education Act (IDEA), Part B - Preschool - Funds are used for

preschool children with disabilities.

Nutrition and Food Services - Funds are used to account for allowable expenditures, as determined

under the National School Lunch Act, for the operation and improvement of the Child Nutrition

Programs.

Vocational Education, Carl Perkins Basic Grant - Funds are used to provide instruction related to

career and technology education and to develop new and/or improve career and technology education

programs for paid and unpaid employment.

Elementary and Secondary Education Act (ESEA) Title II, Part A - Teacher and Principal Training and Recruiting – Funds are used to increase student academic achievement through

improving teacher and principal quality and increasing the number of highly qualified teachers in

classrooms and highly qualified principals and assistant principals in schools.

Elementary and Secondary Education Act (ESEA) Title III, Part A – LEP and Immigrant - Funds are used to improve the education of limited English proficient children by assisting the

children to learn English and meet challenging State academic content and student academic

achievement standards.

Medicaid Administrative Claiming Program – Funds are used for reimbursement of eligible

administrative costs for activities attributed to the implementation of the Medicaid state plan.

Summer School Program for LEP Students in Kindergarten and First Grade – Funds are used

for reimbursement of summer school costs for Limited English Proficient Students in Kindergarten

and First Grade.

Early Childhood Intervention - Funds are used to identify and provide needed intervention services

for children from birth to age 3 who are developmentally delayed or appear to be at risk for

developmental delay.

Individuals with Disabilities Education Act (IDEA), Part B-Discretionary Deaf, SSA - Funds are

used to support an education service center basic special education component and also targeted

support to LEAs, Regional Day School Programs for the Deaf, private residential placements, priority

projects, and other emerging needs.

Individuals with Disabilities Education Act (IDEA), Part B-Formula Deaf, SSA - Funds are used

to operate educational programs for children with disabilities. This fund also includes capacity

building and improvement (sliver) subgrants.

101

Special Revenue Fund Program Descriptions (continued)

Individuals with Disabilities Education Act (IDEA), Part B-Preschool Deaf, SSA - Funds are used

for preschool children who are hearing impaired.

Individuals with Disabilities Education Act (IDEA), Part C, Early Intervention, SSA - Funds are

used to assist local Regional Day School for the Deaf programs and the Texas School for the Deaf in

providing direct services to hearing impaired infants to toddlers ages birth through two years of age.

The program also provides supplemental and appropriate services to eligible students that are provided

by a certified and trained teacher.

State Visually Handicapped - Funds are used to provide educational assistance to visually impaired

students.

Non-Educational Community-Based Support Services - Funds are used for the provision of non-

educational community-based support services to students with disabilities who would remain or have

to be placed in residential facilities for educational reasons without the provision of these services.

The support services may include transportation, respite for the parents, case management, social

work, in-home family support and other items.

Advanced Placement Incentive - Funds are awarded to specific campuses based on student scores on

Advanced Placement examinations and are to be used for enhancement of academic programs at

awarded campuses.

SSI Grants to Schools – Funds will be used to provide for interventions for struggling students in

grades K-12 during the 2012-2013 school year.

Instructional Materials Allotment - Funds are used to provide instructional materials awarded under

the textbook allotment.

Read-To-Succeed License Plate Program - Funds are awarded to specific campuses based on the

sale of specialty license plates and are to be used to pay for educational materials for the school

library.

State Funded Special Revenue Funds – Accounts for state funded special revenue that has not been

specified above.

Regional Day School for the Deaf, SSA - Funds are used for staff and activities of the Regional Day

School Program for the Deaf (RDSPD).

Local Share Regional Day School for the Deaf, SSA - Funds are used to account for excess costs of

services provided to hearing impaired students ages birth through twenty-one.

Campus Activity Funds - Funds are used for activities benefiting students and staff.

Locally Funded Special Revenue – Locally funded special revenue funds not specified above.

Tax Increment Reinvestment Zone - Funds are used to account for tax increment revenues, in

excess of bond payments, restricted for expenditures within the reinvestment zone.

Katy ISD Education Foundation Grants – Funds will be used to provide resources to enrich

teaching, inspire learning, and enhance opportunities for students enrolled in Katy ISD.

102


COMBINING BALANCE SHEET


AUGUST 31, 2013

211 224 225

Data ESEA IDEA IDEA

Control Title I Part B Part B

Codes Part A Formula Preschool

ASSETS

1110 Cash and Cash Equivalents $ $ $

Receivables:

1240 Due from Other Governments 878,200 1,645,664 24,185

1260 Due from Other Funds

1290 Other Receivables

1300 Inventories, at Cost

1410 Prepaid Items

1000 Total Assets 878,200$ 1,645,664$ 24,185$

LIABILITIES


2110 Accounts Payable 115,660$ 172,177$ 709$

2160 Accrued Wages Payable 22,138 112,855 1,569

2170 Due to Other Funds 740,402 1,360,632 21,907

2300 Unearned Revenue

2000 Total Liabilities 878,200 1,645,664 24,185

FUND BALANCE

Fund Balances:

3410/20 Nonspendable

3450 Restricted for Food Service Operations

3490 Restricted for Tax Increment Zone

3490 Restricted for Health Services

3545 Committed for Campus Activity Funds

3000 Total Fund Balances

4000 Total Liabilities and Fund Balances 878,200$ 1,645,664$ 24,185$

103

Exhibit J-1

Page 1 of 4

240 244 255 263 272 289

Nutrition Voc. Ed. ESEA ESEA Medicaid

and Basic Title II Title III Administrative Summer

Food Services Grant Part A Part A Claiming School LEP

6,149,267$ $ $ $ $ $

258,368 47,887 187,927 641,283 81,351

65,161

129,174 437

329,238

6,866,047$ 47,887$ 188,364$ 641,283$ 146,512$ $

1,233,371$ $ 30,948$ 85,591$ $ $

311,356 22,987

119,610 47,887 157,416 532,705

1,664,337 47,887 188,364 641,283

329,238

4,872,472

146,512

5,201,710 146,512

6,866,047$ 47,887$ 188,364$ 641,283$ 146,512$ $

104




AUGUST 31, 2013

289 315 316

Data Early SSA SSA

Control Childhood IDEA B IDEA B

Codes Intervention Discretionary Deaf

ASSETS


Receivables:

1240 Due from Other Governments 55,224 22,478 1,888

1260 Due from Other Funds

1290 Other Receivables 97,464


1410 Prepaid Items 63,620

1000 Total Assets 216,308$ 22,478$ 1,888$

LIABILITIES


2110 Accounts Payable 12,485$ 677$ 1,246$

2160 Accrued Wages Payable 6,808 243

2170 Due to Other Funds 197,015 21,558 642

2300 Unearned Revenue

2000 Total Liabilities 216,308 22,478 1,888

FUND BALANCE

Fund Balances:







Total Liabilities and Fund Balances 216,308$ 22,478$ 1,888$

105

Exhibit J-1

Page 2 of 4

317 340 385 392 397 404

SSA SSA State Non-Ed Advanced SSI

IDEA B IDEA C Early Visually Community Placement Grants to

Preschool Deaf Intervention Handicapped Support Incentive Schools

$ $ $ $ $ $

3,877 62,178

2,039

3,877$ $ $ $ 2,039$ 62,178$

406$ $ $ $ $ 20,350$

3,471 41,828

2,039

3,877 2,039 62,178

3,877$ $ $ $ 2,039$ 62,178$

106




AUGUST 31, 2013

410 427 429

Data Instructional Read to Succeed State Funded

Control Materials License Special

Codes Allotment Plate Program Revenue

ASSETS


Receivables:

1240 Due from Other Governments 60,669

1260 Due from Other Funds 490,589 56

1290 Other Receivables


1410 Prepaid Items

1000 Total Assets 551,258$ 56$ $

LIABILITIES


2110 Accounts Payable 449,957$ $ $

2160 Accrued Wages Payable

2170 Due to Other Funds

2300 Unearned Revenue 101,301 56

2000 Total Liabilities 551,258 56

FUND BALANCE

Fund Balances:







Total Liabilities and Fund Balances 551,258$ 56$ $

107

Exhibit J-1

Page 3 of 4

435 455 461 480 495 499

SSA SSA Campus Locally Tax Increment Katy ISD

Regional Deaf Deaf Activity Funded Reinvestment Education

CO-OP Local Share Funds Special Revenue Zone Found. Grants

$ $ $ $ 4,585,194$ $

46,769 12,336

3,170,081 74,528

14,813 16,013

840

46,769$ 12,336$ 3,170,081$ 74,528$ 4,600,007$ 16,853$

$ 1,581$ 366,216$ $ $ 14,440$

7,088 2,445 350

39,681 8,310 759,714 2,413

74,528

46,769 12,336 366,566 74,528 759,714 16,853

3,840,293

2,803,515

2,803,515 3,840,293

46,769$ 12,336$ 3,170,081$ 74,528$ 4,600,007$ 16,853$

108


COMBINING BALANCE SHEET Exhibit J-1

NONMAJOR GOVERNMENTAL FUNDS Page 4 of 4

AUGUST 31, 2013

Nonmajor

Data Special Nonmajor

Control Revenue Governmental

Codes Funds Funds

ASSETS

1110 Cash and Cash Equivalents 10,734,461$ 10,734,461$

Receivables:

1240 Due from Other Governments 4,030,284 4,030,284

1260 Due from Other Funds 3,802,454 3,802,454

1290 Other Receivables 257,901 257,901

1300 Inventories, at Cost 329,238 329,238

1410 Prepaid Items 64,460 64,460

1000 Total Assets 19,218,798$ 19,218,798$

LIABILITIES


2110 Accounts Payable 2,505,814$ 2,505,814$

2160 Accrued Wages Payable 487,839 487,839

2170 Due to Other Funds 4,055,191 4,055,191

2300 Unearned Revenue 177,924 177,924

2000 Total Liabilities 7,226,768 7,226,768

FUND BALANCE

Fund Balances:

3410/20 Nonspendable 329,238 329,238

3450 Restricted for Food Service Operations 4,872,472 4,872,472

3490 Restricted for Tax Increment Zone 3,840,293 3,840,293

3490 Restricted for Health Services 146,512 146,512

3545 Committed for Campus Activity Funds 2,803,515 2,803,515

3000 Total Fund Balances 11,992,030 11,992,030

Total Liabilities and Fund Balances 19,218,798$ 19,218,798$

Totals August 31, 2013

109


110


COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCES – NON MAJOR GOVERNMENTAL FUNDS

AUGUST 31, 2013

211 224 225

Data ESEA IDEA IDEA

Control Title I Part B Part B

Codes Part A Formula Preschool

REVENUES

5700 Local, Intermediate, and Out-of-State $ $ $

5800 State Program Revenues

5900 Federal Program Revenues 4,693,688 6,958,764 70,205

5020 Total Revenues 4,693,688 6,958,764 70,205

EXPENDITURES

0011 Instructional Leadership 4,078,370 4,869,429 69,717

0012 Instructional Resources and Media Services

0013 Curriculum and Instructional Staff Development 281,535 95,688 405

0021 Instructional Leadership 39,660 34,040

0023 School Leadership 8,091

0031 Guidance and Counseling Services 1,715,330 83

0033 Health Services 38,347

0034 Student Transportation 3,926

0035 Food Services

0036 Cocurricular/Extracurricular Activities

0041 General Administration

0051 Plant Maintenance and Operations

0052 Security and Monitoring Services

0053 Data Processing Services 1,865


0081 Capital Outlay

0093 Payments to Fiscal Agents 204,065

6030 Total Expenditures 4,693,688 6,958,764 70,205


Over (Under) Expenditures

7912 Sale of Real and Personal Property

8911 Transfers Out

1200 Net Change in Fund Balance

0100 Fund Balance - September 1 (Beginning)

3000 Fund Balance - August 31 (Ending) $ $ $

111

Exhibit J-2

Page 1 of 4

240 244 255 263 272 289

Nutrition Voc. Ed. ESEA ESEA Medicaid

and Basic Title II Title III Administrative Summer

Food Services Grant Part A Part A Claiming School LEP

14,060,963$ $ $ $ $ $

150,176

10,937,836 455,885 735,682 2,415,368 131,875 62,461

25,148,975 455,885 735,682 2,415,368 131,875 62,461

291,058 19,164 1,192,196 62,461

164,827 703,744 946,667

1,876

1,979 1,246

96,402

73,037

24,583,868

8,919

202,222

1,211,773

25,795,641 455,885 735,682 2,415,368 96,402 62,461

(646,666) 35,473

14,471

(632,195) 35,473

5,833,905 111,039

5,201,710$ $ $ $ 146,512$ $

112




AUGUST 31, 2013

289 315 316

Data Early SSA SSA

Control Childhood IDEA B IDEA B

Codes Intervention Discretionary Deaf

REVENUES

5700 Local, Intermediate, and Out-of-State 208,783$ $ $

5800 State Program Revenues 198,059

5900 Federal Program Revenues 1,334,596 51,665 35,933

5020 Total Revenues 1,741,438 51,665 35,933

EXPENDITURES

0011 Instructional Leadership 1,369,337 46,084 19,986

0012 Instructional Resources and Media Services

0013 Curriculum and Instructional Staff Development 1,093 648 2,244

0021 Instructional Leadership 305,393

0023 School Leadership

0031 Guidance and Counseling Services 793

0033 Health Services 60,159 4,933 13,703

0034 Student Transportation

0035 Food Services



0051 Plant Maintenance and Operations


0053 Data Processing Services


0081 Capital Outlay

0093 Payments to Fiscal Agents

6030 Total Expenditures 1,741,438 51,665 35,933




8911 Transfers Out




113

Exhibit J-2

Page 2 of 4

317 340 385 392 397 404

SSA SSA State Non-Ed Advanced SSI

IDEA B IDEA C Early Visually Community Placement Grants to

Preschool Deaf Intervention Handicapped Support Incentive Schools

$ $ $ $ $ $

20,000 31,040 7,570 143,649

3,877 1,086

3,877 1,086 20,000 31,040 7,570 143,649

3,877 1,086 20,000 7,245 117,197

26,452

325

31,040

3,877 1,086 20,000 31,040 7,570 143,649

$ $ $ $ $ $

114




AUGUST 31, 2013

410 427 429

Data Instructional Read to Succeed State Funded

Control Materials License Special

Codes Allotment Plate Program Revenue

REVENUES

5700 Local, Intermediate, and Out-of-State $ $ $

5800 State Program Revenues 3,282,982 152 70,984

5900 Federal Program Revenues

5020 Total Revenues 3,282,982 152 70,984

EXPENDITURES

0011 Instructional Leadership 3,059,595

0012 Instructional Resources and Media Services 152

0013 Curriculum and Instructional Staff Development 57,247

0021 Instructional Leadership

0023 School Leadership

0031 Guidance and Counseling Services 166,140

0033 Health Services

0034 Student Transportation

0035 Food Services



0051 Plant Maintenance and Operations 70,984


0053 Data Processing Services

0061 Community Services

0081 Capital Outlay

0093 Payments to Fiscal Agents

6030 Total Expenditures 3,282,982 152 70,984




8911 Transfers Out




115

Exhibit J-2

Page 3 of 4

435 455 461 480 495 499

SSA SSA Campus Locally Tax Increment Katy ISD

Regional Deaf Deaf Activity Funded Reinvestment Education

CO-OP Local Share Funds Special Revenue Zone Found. Grants

$ 201,286$ 4,443,917$ 500$ 820,967$ 16,012$

526,516

526,516 201,286 4,443,917 500 820,967 16,012

491,730 130,726 1,808,247 16,012

817,095

1,240 201,750

5,621 520

471,829

34,786 5,478

63,699 544

5,784

867,421 500

6,760

7,824

18

254,440 133,320

526,516 201,286 4,447,710 500 133,320 16,012

(3,793) 687,647

(626,394)

(3,793) 61,253

2,807,308 3,779,040

$ $ 2,803,515$ $ 3,840,293$ $

116


COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES Exhibit J-2

IN FUND BALANCES – NON MAJOR GOVERNMENTAL FUNDS Page 4 of 4

AUGUST 31, 2013

Data Nonmajor

Control Special Governmental

Codes Revenue Funds Funds

REVENUES




5020 Total Revenues 52,072,477 52,072,477

EXPENDITURES

0011 Instructional Leadership 17,673,517 17,673,517

0012 Instructional Resources and Media Services 817,247 817,247

0013 Curriculum and Instructional Staff Development 2,483,540 2,483,540

0021 Instructional Leadership 387,435 387,435

0023 School Leadership 483,145 483,145

0031 Guidance and Counseling Services 1,922,610 1,922,610

0033 Health Services 277,787 277,787

0034 Student Transportation 82,747 82,747

0035 Food Services 24,583,868 24,583,868

0036 Cocurricular/Extracurricular Activities 867,921 867,921

0041 General Administration 8,919 8,919

0051 Plant Maintenance and Operations 77,744 77,744

0052 Security and Monitoring Services 7,824 7,824

0053 Data Processing Services 1,865 1,865

0061 Community Services 520,049 520,049

0081 Capital Outlay 1,599,533 1,599,533

0093 Payments to Fiscal Agents 204,065 204,065


1100 Excess (Deficiency) of Revenues 72,661 72,661


7912 Sale of Real and Personal Property 14,471 14,471

8911 Transfers Out (626,394) (626,394)

1200 Net Change in Fund Balance (539,262) (539,262)



Totals August 31, 2013

117


118


SCHEDULE OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES ORIGINAL BUDGET,

AMENDED FINAL, AND ACTUAL - NUTRITION AND FOOD SERVICE



2013

NUTRITION AND

Data

Control


REVENUES


5800 State Program Revenues 158,570 150,176


5020 Total Revenues 26,283,694 25,003,151

EXPENDITURES

0035 Food Services

Payroll Costs 8,830,883 8,851,771

Professional and Contracted Services 85,000 217,727

Supplies and Materials 16,120,500 16,268,823

Other Operating Expenses 15,000 11,383

Capital Outlay 2,600,000 24,400

Total Food Service 27,651,383 25,374,104

0081 Capital Outlay

Capital Outlay 1,000,000 1,500,233

Total Capital Outlay 1,000,000 1,500,233



Over (Under) Expenditures (2,367,689) (1,871,186)

7912 Sale of Real and Personal Property 14,471

1200 Net Change in Fund Balance (2,367,689) (1,856,715)



Budgeted Amounts

119

Exhibit J-3

FOOD SERVICE

Variance with

Final Budget

Actual Amounts

Positive

(Negative) 2012 Actuals

14,060,963$ 59,434$ 13,792,496$

150,176 157,347

10,937,836 86,390 10,693,140

25,148,975 145,824 24,642,983

8,672,520 179,251 7,834,579

138,519 79,208 122,945

15,735,450 533,373 14,789,424

12,981 (1,598) 16,897

24,398 2 284,225

24,583,868 790,236 23,048,070

1,211,773 288,460 3,218,223

1,211,773 288,460 3,218,223

25,795,641 1,078,696 26,266,293

(646,666) 1,224,520 (1,623,310)

14,471 23,424

(632,195) 1,224,520 (1,599,886)

5,833,905 7,433,791

5,201,710$ 1,224,520$ 5,833,905$

120


121


The Internal Service Funds are used to account for revenues and expenses related to services provided to

organizations inside the District on a cost reimbursement basis.

122


COMBINING STATEMENT OF NET POSITION Exhibit K-1


AUGUST 31, 2013

Data Total

Control Health Workers' Print Internal

Codes Insurance Compensation Shop Service Funds

ASSETS

Current Assets:

1110 Cash and Cash Equivalents 3,833,279$ 4,444,786$ 2,043,179$ 10,321,244$

1260 Due from Other Funds 510,976 510,976

1290 Other Receivables 4,167 4,167

1300 Inventories 77,318 77,318

Total Current Assets 4,348,422 4,444,786 2,120,497 10,913,705

Noncurrent Assets:

Capital Assets:

1520 Building and Improvements 2,516 2,516

1540 Furniture and Equipment 1,999 1,646,562 1,648,561

1573 Accumulated Depreciation (1,999) (1,002,661) (1,004,660)

Total Non Current 646,417 646,417

1000 Total Assets 4,348,422 4,444,786 2,766,914 11,560,122

LIABILITIES


2110 Accounts Payable 2,380,224 411,512 177,219 2,968,955

2200 Accrued Expenses 1,645,148 776,988 2,422,136

2000 Total Liabilities 4,025,372 1,188,500 177,219 5,391,091

NET POSITION

3200 Investment in Capital Assets 646,417 646,417

3900 Unrestricted 323,050 3,256,286 1,943,278 5,522,614

3000 Total Net Position 323,050$ 3,256,286$ 2,589,695$ 6,169,031$


123


COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN Exhibit K-2

FUND NET POSITION



Data Total

Control Health Workers' Print Internal

Codes Insurance Compensation Shop Service Funds

OPERATING REVENUES

5754 Charges for Services 36,211,380$ 739,986$ 3,440,735$ 40,392,101$

5020 Total Operating Revenues 36,211,380 739,986 3,440,735 40,392,101

OPERATING EXPENSES

6100 Salary and Benefits 46,718 46,718

6200 Administrator Fees 5,456,921 110,174 1,460,910 7,028,005

6200 Insurance Premiums 47,382 47,382

6200 Claims Expense 33,801,785 955,440 34,757,225

6200 Repair and Maintenance 18,145 18,145

6200 Equipment Rental 114,048 114,048

6300 Supplies 4,350 1,618,892 1,623,242

6400 Miscellaneous Operating Expenses 7,645 7,645

6400 Depreciation 235,193 235,193

6030 Total Operating Expenses 39,313,069 1,117,346 3,447,188 43,877,603

1300 Operating Income (Loss) (3,101,689) (377,360) (6,453) (3,485,502)

NONOPERATING REVENUES (EXPENSES)

5742 Investment Income 9,720 23,152 6,453 39,325

Total Nonoperating Revenue 9,720 23,152 6,453 39,325

Income (Loss) before

Contributions & Transfers (3,091,969) (354,208) (3,446,177)

7900 Capital Contributions 320,890 320,890

7900 Transfers In 2,500,000 2,500,000

1300 Change in Net Position (591,969) (354,208) 320,890 (625,287)

0100 Total Net Position September 1 (Beginning) 915,019 3,610,494 2,268,805 6,794,318

3000 Total Net Position August 31 (Ending) 323,050$ 3,256,286$ 2,589,695$ 6,169,031$


124


COMBINING STATEMENT OF CASH FLOWS Exhibit K-3



Total

Health Workers' Print Internal

Insurance Compensation Shop Service Funds

CASH FLOWS FROM OPERATING ACTIVITIES

Cash Receipts from Internal Services Provided 35,711,013$ 739,986$ 3,440,735$ 39,891,734$

Cash Payments to Suppliers (7,645) (4,350) (1,649,847) (1,661,842)

Cash Payments to Pay Claims (32,932,615) (965,726) (33,898,341)

Cash Payments to Contract Administrators (5,453,429) (157,766) (1,593,103) (7,204,298)

Cash Payments to Employees (46,718) (46,718)

Net Cash Provided (Used) by Operating Activities (2,729,394) (387,856) 197,785 (2,919,465)

CASH FLOWS FROM NONCAPITAL FINANCING

ACTIVITIES

Transfers from Other Funds 2,500,000 2,500,000

Net Cash Provided by Investing Activities 2,500,000 2,500,000

CASH FLOWS FROM INVESTING ACTIVITIES

Interest Received 9,720 23,152 6,453 39,325

Net Cash Provided by Investing Activities 9,720 23,152 6,453 39,325

Net Increase (Decrease) in Cash and Cash Equivalents (219,674) (364,704) 204,238 (380,140)

Cash and Cash Equivalents at Beginning of Year 4,052,953 4,809,490 1,838,941 10,701,384

Cash and Cash Equivalents at End of Year 3,833,279$ 4,444,786$ 2,043,179$ 10,321,244$

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED (USED) BY OPERATING ACTIVITIES

Operating Income (Loss) (3,101,689)$ (377,360)$ (6,453)$ (3,485,502)$

Adjustments to Reconcile Operating Income to Net Cash

Provided by Operating Activities:

Depreciation 235,193 235,193

(Increase) Decrease in Inventories 10,748 10,748

(Increase) Decrease in Receivables 10,608 10,608

Increase (Decrease) in Accounts Payable (10,207) (9,441) (41,703) (61,351)

Increase (Decrease) in Interfund Payables (510,976) (510,976)

Increase (Decrease) in Accrued Expenses 882,870 (1,055) 881,815

Net Cash Provided (Used) by Operating Activities (2,729,394)$ (387,856)$ 197,785$ (2,919,465)$

Noncash Investing, Capital,and Financing Activities

Contributions of Capital Assets from Government 320,890$ 320,890$


125

FIDUCIARY FUNDS

Agency Fund The Agency Fund is used to account for assets held by the District as an agent for employees and various

student groups throughout the District.

Student Activity Fund The Agency Fund is used to account for assets held for various student groups throughout the District.

126


STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES Exhibit L-1

AGENCY FUNDS


Balance Balance

September 1, August 31,

2012 Additions Deductions 2013

STUDENT ACTIVITIES

ASSETS

Cash 4,320,070$ 431,149$ 2,995$ 4,748,224$

Due From Other Funds 8,443,415 8,443,415

Total Assets 4,320,070$ 8,874,564$ 8,446,410$ 4,748,224$

LIABILITIES

Accounts Payable 258,475$ 7,816,268$ 7,706,559$ 368,184$

Accrued Wages 1,276 1,575 1,276 1,575

Due to Student Groups 4,060,319 8,650,473 8,332,327 4,378,465

Total Liabilities 4,320,070$ 16,468,316$ 16,040,162$ 4,748,224$

127


SCHEDULE OF CHANGES IN DUE TO STUDENT GROUPS Exhibit L-2

AGENCY FUNDS Page 1 of 2


Balance Balance



Student Activities

Due to Student Groups

High Schools:

Katy 164,438$ 170,408$ 217,540$ 117,306$

Taylor 384,613 600,590 623,702 361,501

Mayde Creek 133,687 267,586 276,952 124,321

Cinco Ranch 417,508 708,928 722,469 403,967

Morton Ranch 87,029 348,815 306,723 129,121

Seven Lakes 441,265 1,025,325 990,234 476,356

Tompkins 19,493 16,829 2,664

Raines 585 52 448 189

Opportunity Awareness Center 61 49 110

Miller Career & Technology Center 28,654 66,453 57,667 37,440

Junior High Schools:

Katy 92,399 108,321 81,381 119,339

West Memorial 45,364 95,386 99,256 41,494

Mayde Creek 2,396 68,103 60,365 10,134

Memorial Parkway 88,059 105,509 94,184 99,384

McDonald 43,046 80,506 71,357 52,195

Beck 99,406 234,167 232,766 100,807

McMeans 128,880 165,385 156,261 138,004

Cinco Ranch 92,690 307,280 321,778 78,192

Morton Ranch 39,576 46,368 50,089 35,855

Beckendorff 116,971 331,616 298,693 149,894

Cardiff 17,863 96,538 98,544 15,857

Wood Creek 56,317 269,945 246,060 80,202

Seven Lakes 12,749 234,181 191,404 55,526

Elementary Schools:

Wolfe 897 4,808 4,674 1,031

Katy 17,161 8,269 5,941 19,489

West Memorial 8,049 14,101 15,458 6,692

Memorial Parkway 3,984 10,649 10,299 4,334

Hutsell 3,047 12,025 13,331 1,741

Bear Creek 2,697 19,152 19,643 2,206

Cimarron 7,453 21,840 25,483 3,810

Winborn 16,305 14,128 12,371 18,062

Nottingham Country 6,017 20,550 20,033 6,534

Sundown 3,643 9,629 9,315 3,957

128


SCHEDULE OF CHANGES IN DUE TO STUDENT GROUPS Exhibit L-2

AGENCY FUNDS Page 2 of 2


Balance Balance



Elementary Schools: (continued)

Mayde Creek 4,112$ 9,444$ 10,947$ 2,609$

Pattison 4,347 11,870 12,992 3,225

Golbow 4,865 30,619 28,306 7,178

Fielder 10,406 35,812 33,047 13,171

Hayes 10,127 9,853 7,799 12,181

McRoberts 12,104 6,572 7,727 10,949

Alexander 3,252 9,263 7,671 4,844

Williams 19,798 38,847 34,963 23,682

Creech 15,053 19,959 15,503 19,509

King 13,533 5,729 6,435 12,827

Schmalz 4,863 19,677 13,373 11,167

Kilpatrick 24,399 41,518 41,642 24,275

Rylander 9,350 14,411 11,028 12,733

Exley 37,914 43,225 36,350 44,789

Rhoads 18,567 14,388 20,804 12,151

Franz 9,029 8,561 9,080 8,510

Griffin 24,825 31,071 40,630 15,266

Stephens 7,909 14,951 13,379 9,481

Woodcreek 5,963 51,668 46,163 11,468

Morton Ranch 2,283 28,735 21,493 9,525

Holland 11,675 29,890 33,861 7,704

Stanley 7,517 6,543 10,475 3,585

Wilson 325 41,364 37,703 3,986

Wolman 1,470 15,083 10,600 5,953

Shafer 501 28,896 21,208 8,189

Total All Schools 2,826,996 6,054,104 5,884,539 2,996,561

Non-School Activities

Athletics 176,557 491,417 423,695 244,279

Central Administration 314,489 151,474 141,011 324,952

Vocational Administration 248,510 1,452,413 1,368,820 332,103

Music Department 327,767 397,019 421,666 303,120

Other 166,000 104,046 92,596 177,450

Total Non-School Activities 1,233,323 2,596,369 2,447,788 1,381,904

Total Due to Student Groups 4,060,319$ 8,650,473$ 8,332,327$ 4,378,465$

129

CAPITAL ASSETS USED

IN THE

OPERATIONS OF

GOVERNMENTAL FUNDS Capital assets purchased or constructed by the District are shown at original cost. Donated assets are

valued at the fair market value on the date donated. Costs incurred for the purchase or construction of

general capital assets are recorded as expenditures in the General Fund, Special Revenue Fund, and

Capital Projects Fund and are capitalized as capital assets used in the operations of Governmental Funds.

The capital assets consist principally of school buildings and related equipment.

130


CAPITAL ASSETS USED IN THE OPERATIONS OF GOVERNMENTAL FUNDS Exhibit M-1

COMPARATIVE SCHEDULE BY SOURCE

AS OF AUGUST 31, 2013 and 2012

2012

2013 (As Restated)

Governmental Fund Capital Assets

Land 75,846,324$ 71,402,749$

Land Improvements 49,598,982 51,097,019

Buildings and Improvements 1,217,300,365 1,122,302,181

Furniture and Equipment 153,634,014 143,658,606

Capital Leases 24,341,017 24,039,425

Vehicles 41,465,866 41,524,534

Construction in Progress 72,187,072 89,672,665

Total Governmental Fund Capital Assets 1,634,373,640$ 1,543,697,179$

Investment in Governmental Funds Capital Assets by Source

Investment in property acquired prior

to September 1, 1977 16,243,454$ 16,243,454$

Investment in property acquired after

September 1, 1977 from:

General Fund 29,390,918 25,043,877

Special Revenue Fund 19,582,972 17,367,721

Capital Projects Fund 1,569,050,729 1,484,967,945

Agency Fund 105,567 74,182

Total Governmental Fund Capital Assets 1,634,373,640$ 1,543,697,179$

131



SCHEDULE BY FUNCTION AND ACTIVITY Page 1 of 3

AS OF AUGUST 31, 2013

Furniture,

Land & Buildings & Construction- Equipment &

Location Improvements Improvements In-Progress Vehicles Total

Instructional and Related

High Schools:

Katy 5,889,483$ 53,376,990$ 26,457,085$ 4,471,583$ 90,195,141$

Taylor 8,015,367 51,712,771 35,431,734 4,134,021 99,293,893

Mayde Creek 4,046,864 68,016,596 1,083,480 4,117,065 77,264,005

Cinco Ranch 11,706,541 59,980,493 1,074,942 6,354,389 79,116,365

Morton Ranch 5,678,586 72,689,927 6,261,698 84,630,211

Seven Lakes 7,410,380 63,560,969 6,795,417 77,766,766

Tompkins 2,102,023 88,575,378 5,630,576 96,307,977

High School #8 5,820,920 889,965 6,710,885

Total 50,670,164 458,803,089 64,047,241 37,764,749 611,285,243

Junior High Schools:

Katy 537,312 12,575,063 1,477,731 14,590,106

West Memorial 372,246 25,777,800 1,370,353 27,520,399

Mayde Creek 879,095 28,987,634 1,859,545 31,726,274

Memorial Parkway 1,435,575 11,467,164 1,255,216 14,157,955

McDonald 873,276 10,232,927 1,653,023 12,759,226

Beck 844,306 11,105,050 1,870,031 13,819,387

McMeans 1,308,285 14,260,850 1,813,744 17,382,879

Cinco Ranch 259,684 15,172,931 2,076,269 17,508,884

Morton Ranch 482,532 18,946,869 1,988,971 21,418,372

Beckendorff 1,905,834 17,160,490 2,040,639 21,106,963

Cardiff 2,336,559 25,010,125 2,212,277 29,558,961

Wood Creek 1,824,346 25,749,749 2,266,433 29,840,528

Seven Lakes 213,486 25,613,434 2,177,443 28,004,363

Total 13,272,536 242,060,086 24,061,675 279,394,297

Elementary Schools:

Wolfe 337,521 16,841,095 1,184,327 18,362,943

Katy 101,312 7,078,387 699,066 7,878,765

West Memorial 148,165 12,027,531 1,021,428 13,197,124

Memorial Parkway 306,051 8,000,243 929,088 9,235,382

Hutsell 252,286 10,578,267 1,232,807 12,063,360

132





Furniture,



Elementary Schools (continued):

Bear Creek 365,064$ 10,665,624$ $ 816,748$ 11,847,436$

Cimarron 407,222 8,238,352 755,783 9,401,357

Winborn 591,044 12,203,380 870,148 13,664,572

Nottingham Country 230,385 13,162,667 916,164 14,309,216

Sundown 359,378 14,184,872 891,319 15,435,569

Mayde Creek 212,168 14,457,267 878,118 15,547,553

Pattison 669,609 8,911,308 816,377 10,397,294

Golbow 420,767 6,167,617 842,021 7,430,405

Fielder 224,442 7,848,798 884,957 8,958,197

Hayes 243,894 6,871,427 1,029,386 8,144,707

McRoberts 293,443 6,617,468 1,189,448 8,100,359

Alexander 387,368 7,953,544 1,163,678 9,504,590

Williams 558,436 8,473,639 1,180,398 10,212,473

Creech 582,664 8,762,869 1,117,169 10,462,702

King 507,762 10,556,318 1,346,228 12,410,308

Schmalz 972,173 10,318,037 1,354,613 12,644,823

Kilpatrick 1,308,084 10,403,679 1,132,152 12,843,915

Rylander 1,239,809 11,802,127 1,333,457 14,375,393

Exley 474,901 10,240,629 1,265,052 11,980,582

Rhoads 921,263 10,345,078 1,495,952 12,762,293

Franz 798,269 10,388,962 1,396,197 12,583,428

Griffin 732,447 11,592,645 1,462,486 13,787,578

Stephens 1,798,548 13,785,316 1,413,761 16,997,625

Wood Creek 776,568 13,880,640 1,473,735 16,130,943

Morton Ranch 1,125,834 15,428,109 1,382,429 17,936,372

Holland 1,092,367 14,249,683 1,243,880 16,585,930

Stanley 989,959 16,509,605 1,546,771 19,046,335

Wilson 1,469,943 15,112,995 1,511,907 18,094,845

Wolman 844,914 15,057,603 1,537,648 17,440,165

Shafer 1,365,810 14,634,223 1,596,188 17,596,221

Elementary #36 915,108 3,872,844 4,787,952

Elementary #37 1,277,955 3,754,741 5,032,696

25,302,933 393,350,004 7,627,585 40,910,886 467,191,408

133





Furniture,



Instructional Leadership

Administration Annex $ 84,929$ $ 815,040$ 899,969$

Transportation

Transportation Centers 2,110,292 15,075,699 42,112,172 59,298,163

Rhodes Stadium 3,581,647 8,035,850 378,000 820,988 12,816,485

Rodeo Arena 7,968 1,477,114 20,661 1,505,743

Multi-Purpose Center 164,538 21,749,989 627,767 22,542,294

Total Cocurricular/Extracurricular 3,754,153 31,262,953 378,000 1,469,416 36,864,522

Administration

Administration Building 2,280,040 23,241,926 41,153,485 66,675,451

Maintenance and Operations

Support Services Complex 191,702 29,093,708 1,825,296 31,110,706

Other

Alternative Learning Ctr/Raines 405,862 19,585,524 1,748,121 21,739,507

Miller Career & Tech. Center 357,384 20,371,202 1,857,592 22,586,178

Agriculture Facilities/CATE 3,245,404 3,054,569 113,726 85,211 6,498,910

Outdoor Learning Center 449,352 532,610 55,856 1,037,818

Land Sites 23,489,890 23,489,890

Other 88,100 4,304,149 20,520 1,888,809 6,301,578

Total Other 28,035,992 47,848,054 134,246 5,635,589 81,653,881

Total Capital Assets 125,617,812$ 1,240,820,448$ 72,187,072$ 195,748,308$ 1,634,373,640$

Cocurricular/Extracurricular

Activities

134



SCHEDULE OF CHANGES BY FUNCTION AND ACTIVITY Page 1 of 3


Governmental Governmental

Funds Capital Assets Funds

September 1, 2012 Net Retirements Capital Assets

Location (As Restated) Additions & Transfers August 31, 2013

Instructional and Related

High Schools:

Katy 75,005,713$ 15,406,747$ 217,319$ 90,195,141$

Taylor 82,320,893 18,657,764 1,684,764 99,293,893

Mayde Creek 76,088,294 1,601,373 425,662 77,264,005

Cinco Ranch 77,714,786 1,754,305 352,726 79,116,365

Morton Ranch 84,526,581 257,082 153,452 84,630,211

Seven Lakes 77,496,001 479,450 208,685 77,766,766

Tompkins 60,300,436 36,121,506 113,965 96,307,977

High School #8 5,773,343 937,542 6,710,885

Total High School 539,226,047 75,215,769 3,156,573 611,285,243

Junior High Schools

Katy 14,632,044 19,419 61,357 14,590,106

West Memorial 27,276,955 332,025 88,581 27,520,399

Mayde Creek 31,492,021 360,766 126,513 31,726,274

Memorial Parkway 14,156,340 24,661 23,046 14,157,955

McDonald 12,779,771 67,259 87,804 12,759,226

Beck 13,618,418 678,216 477,247 13,819,387

McMeans 17,393,032 49,810 59,963 17,382,879

Cinco Ranch 17,227,638 384,185 102,939 17,508,884

Morton Ranch 21,262,825 180,815 25,268 21,418,372

Beckendorff 20,985,575 139,725 18,337 21,106,963

Cardiff 29,498,456 71,305 10,800 29,558,961

Wood Creek 29,744,359 142,952 46,783 29,840,528

Seven Lakes 26,771,050 1,239,797 6,484 28,004,363

Total Junior High 276,838,484 3,690,935 1,135,122 279,394,297

Elementary Schools

Wolfe 17,980,406 427,992 45,455 18,362,943

Katy 7,878,313 8,496 8,044 7,878,765

West Memorial 13,211,371 58,793 73,040 13,197,124

Memorial Parkway 9,189,503 101,755 55,876 9,235,382

Hutsell 11,964,272 107,199 8,111 12,063,360

Bear Creek 11,869,704 9,148 31,416 11,847,436

Cimarron 9,425,827 22,114 46,584 9,401,357

Winborn 13,501,471 495,308 332,207 13,664,572

135









Elementary Schools (continued):

Nottingham Country 14,349,216$ 8,173$ 48,173$ 14,309,216$

Sundown 15,444,060 26,475 34,966 15,435,569

Mayde Creek 15,460,955 92,931 6,333 15,547,553

Pattison 10,360,168 56,370 19,244 10,397,294

Golbow 7,440,712 71,549 81,856 7,430,405

Fielder 8,758,515 555,293 355,611 8,958,197

Hayes 8,005,557 518,591 379,441 8,144,707

McRoberts 8,096,934 32,853 29,428 8,100,359

Alexander 9,494,306 38,931 28,647 9,504,590

Williams 10,207,161 29,267 23,955 10,212,473

Creech 10,458,341 28,259 23,898 10,462,702

King 12,223,517 230,219 43,428 12,410,308

Schmalz 12,593,231 121,427 69,835 12,644,823

Kilpatrick 12,839,620 67,480 63,185 12,843,915

Rylander 14,064,671 316,537 5,815 14,375,393

Exley 11,906,951 84,723 11,092 11,980,582

Rhoads 12,674,136 96,123 7,966 12,762,293

Franz 12,502,219 90,526 9,317 12,583,428

Griffin 13,644,833 483,805 341,060 13,787,578

Stephens 17,002,206 11,666 16,247 16,997,625

Woodcreek 16,082,581 62,155 13,793 16,130,943

Morton Ranch 17,947,887 45,456 56,971 17,936,372

Holland 16,590,900 80,671 85,641 16,585,930

Stanley 18,917,547 236,397 107,609 19,046,335

Wilson 17,833,410 273,796 12,361 18,094,845

Wolman 16,985,770 465,955 11,560 17,440,165

Shafer 17,139,953 477,111 20,843 17,596,221

Elementary #36 4,787,952 4,787,952

Elementary #37 5,032,696 5,032,696

Total Elementary 454,046,224 15,654,192 2,509,008 467,191,408

Instructional Leadership

Administration Annex 890,901 57,849 48,781 899,969

Transportation

Transportation Centers 59,256,024 1,001,869 959,730 59,298,163

Cocurricular/

Extracurricular Activities

Rhodes Stadium 12,420,135 396,350 12,816,485

Rodeo Arena 1,505,743 1,505,743

Multi-Purpose Center 22,533,682 18,000 9,388 22,542,294

Total Cocurricular/Extracurricular 36,459,560 414,350 9,388 36,864,522

136









Administration

Administration Building 65,218,671$ 4,108,784$ 2,652,004$ 66,675,451$

Maintenance and Operations

Support Services Complex 30,934,564 401,101 224,959 31,110,706

Other

Alternative Learning Center 21,674,243 116,843 51,579 21,739,507

Miller Career Center 22,602,168 81,745 97,735 22,586,178

Agriculture Facilities/CATE 4,568,657 1,930,519 266 6,498,910

Outdoor Learning Center 979,763 58,055 1,037,818

Land Sites 23,581,764 2,005,686 2,097,560 23,489,890

Other 7,420,109 909,088 2,027,619 6,301,578

Total Other 80,826,704 5,101,936 4,274,759 81,653,881

Total Capital Assets 1,543,697,179$ 105,646,785$ 14,970,324$ 1,634,373,640$

137

GENERAL LONG-TERM DEBT

ON

GOVERNMENTAL FUNDS

The purpose of the Long-Term Debt Accounts is to record and present the liability of the District for

long-term debt until the debt is retired. The long-term debt of the District consists of bonds issued for the

purposes of constructing and equipping new facilities, renovation of existing facilities, and obligations

related to compensated absences.

138


BOND SCHEDULE

FISCAL YEAR ENDED AUGUST 31, 2013

Interest Amounts Amounts Issued Retired

Date of Rate Original Outstanding Current Current

Issue Description Payable Issue 09/01/12 Year Year

12-03-96 Series 1996-A Limited 4.75% 25,000,000$ 3,100,000$ $ $

Tax School Building Bonds 6.40%

06-15-03 Series 2003-A Unlimited Tax 2.00% 64,674,958 8,065,000 8,065,000

School Building Bonds 5.00%

05-25-04 Series 2004-B Limited Tax 2.00% 6,029,997 480,001

Refunding Bonds 4.00%

02-23-05 Series 2005-A Unlimited Tax 3.00% 23,055,000 21,765,000 190,000


02-23-05 Series 2005-B Unlimited Tax 3.00% 29,685,000 26,625,000 495,000


09-28-06 Series 2006 Unlimited Tax 4.00% 29,995,000 27,975,000


03-21-07 Series 2007-A Unlimited Tax 4.25% 65,000,000 59,810,000


04-24-07 Series 2007-B Unlimited Tax 4.00% 167,944,959 164,579,960 605,000


04-24-07 Series 2007-C Limited Tax 4.00% 61,395,000 55,905,000 1,280,000


09-24-07 Series 2007-D Unlimited Tax 4.25% 80,000,000 56,800,000 1,505,000


01-14-08 Series 2008-A Unlimited Tax 3.75% 30,850,000 27,895,000 2,975,000


01-14-08 Series 2008-B Limited Tax 3.75% 38,235,000 33,745,000 3,295,000


06-11-08 Series 2008-C Unlimited Tax 2.75% 97,700,000 84,940,000 2,505,000


03-12-09 Series 2009 Unlimited Tax 2.00% 24,315,000 22,660,000 560,000


139

Exhibit N-1

Page 1 of 2

Amounts Interest Requirements 09/01/15

Outstanding Current Year Ending 8/31/14 Year Ending 8/31/15 To Maturity

08/31/13 Year Principal Interest Principal Interest Interest

3,100,000$ 198,400$ $ 198,400$ $ 198,400$ 297,600$

201,625

480,001 20,440 60,000 19,240 65,000 16,708 40,131

21,575,000 1,067,631 195,000 1,060,772 205,000 1,053,394 14,366,757

26,130,000 1,290,387 500,000 1,272,662 125,000 1,261,256 11,711,881

27,975,000 1,321,875 1,321,875 1,321,874 22,666,814

59,810,000 2,671,131 2,671,131 2,600,000 2,593,131 30,787,835

163,974,960 7,532,600 97,444 9,405,031 46,822 8,955,653 82,129,419

54,625,000 2,791,075 3,675,000 2,655,716 5,480,000 2,398,231 9,530,297

55,295,000 2,717,600 1,475,000 2,654,275 855,000 2,604,763 24,531,584

24,920,000 1,042,769 2,705,000 936,269 4,255,000 805,769 1,853,956

30,450,000 1,270,975 2,975,000 1,153,413 4,865,000 1,006,413 2,437,740

82,435,000 3,988,527 2,780,000 3,906,472 2,260,000 3,824,703 45,246,556

22,100,000 1,011,538 525,000 997,888 510,000 984,987 13,614,719

140


BOND SCHEDULE


Interest Amounts Amounts Issued Retired

Date of Rate Original Outstanding Current Current

Issue Description Payable Issue 09/01/12 Year Year

04-08-10 Series 2010-A Unlimited Tax 2.00% 68,910,000$ 67,640,000$ $ 5,460,000$


04-08-10 Series 2010-B Limited Tax 3.00% 11,625,000 10,050,000 2,510,000


12-29-10 Series 2010-C Unlimited Tax 4.00% 41,470,000 36,190,000 5,235,000


12-29-10 Series 2010-D Unlimited Tax 4.50% 155,000,000 155,000,000


Build America Bonds

12-29-10 Series 2010-E Limited Tax 2.00% 6,220,000 4,720,000 575,000


06-19-12 Series 2012-A Unlimited Tax 4.00% 147,680,000 147,680,000

School Building and 5.00%

Refunding Bonds

07-17-12 Series 2012-B Variable Rate 4.00% 34,475,000 34,475,000

Unlimited Tax School 5.00%

Buildling and Refunding Bonds

07-17-12 Series 2012-C Variable Rate 4.50% 115,000,000 115,000,000

Unlimited Tax 5.30%

Refunding Bonds

07-25-13 Series 2013 Unlimited Tax 2.00% 103,000,000 103,000,000


1000 Totals 1,427,259,914$ 1,165,099,961$ 103,000,000$ 35,255,000$

6594-Other Debt Service Expense 41,065$

141

Exhibit N-1

Page 2 of 2

Amounts Interest Requirements 09/01/15

Outstanding Current Year Ending 8/31/14 Year Ending 8/31/15 To Maturity

08/31/13 Year Principal Interest Principal Interest Interest

62,180,000$ 3,074,500$ 11,795,000$ 2,670,425$ 8,495,000$ 2,163,175$ 7,575,750$

7,540,000 360,600 1,135,000 293,375 315,000 271,625 1,183,050

30,955,000 1,624,125 5,500,000 1,355,750 5,310,000 1,085,500 2,421,275

155,000,000 9,251,377 9,251,378 9,251,378 154,298,091

4,145,000 131,788 1,485,000 96,338 1,190,000 48,787 29,306

147,680,000 7,179,250 7,179,250 255,000 7,174,150 99,724,825

34,475,000 1,381,442 1,281,750 1,281,750 20,248,375

115,000,000 5,261,612 5,255,500 5,255,500 76,448,910

103,000,000 270,985 1,750,000 4,860,224 3,550,000 4,771,725 73,857,763

1,232,844,961$ 55,662,252$ 36,652,444$ 60,497,134$ 40,381,822$ 58,328,872$ 695,002,634$

Note: The amounts in the interest columns include accreted interest on the capital appreciation bonds.

142


143

COMPLIANCE SCHEDULES

144


SCHEDULE OF DELINQUENT TAXES RECEIVABLE


Assessed/Appraised Beginning

Fiscal Value For School Balance

Year Maintenance Debt Service Total Tax Purposes September 1

2004 Various Various Various Various 802,045$

and prior

2005 1.6300$ 0.3700$ 2.0000$ 11,730,058,506$ 367,892

2006 1.6300 0.3700 2.0000 12,688,512,035 380,639

2007 1.4850 0.3300 1.8150 14,003,603,902 423,127

2008 1.1266 0.4000 1.5266 16,171,736,868 577,937

2009 1.1266 0.4000 1.5266 18,673,124,451 758,370

2010 1.1266 0.4000 1.5266 19,517,648,879 938,620

2011 1.1266 0.4000 1.5266 19,819,925,666 1,393,000

2012 1.1266 0.4000 1.5266 20,727,521,751 2,611,726

2013 1.1266 0.4000 1.5266 22,083,259,111

1000 Totals 8,253,356$

9000 - Portion of Row 1000 for Taxes Paid

into Tax Increment Zone Under Chapter 311, Tax Code 165,069,090$ $

Note: Tax rates are per $100 valuation.

Tax Rates

145

Exhibit O-1

Current Maintenance Interest and Entire Ending

Year's and Operations Sinking Fund Total Year's Balance

Total Levy Collections Collections Collections Adjustments August 31

$ 41,843$ 9,545$ 51,388$ (276,235)$ 474,422$

13,700 3,109 16,809 (6,769) 344,314

26,811 6,057 32,868 (6,175) 341,596

55,168 12,290 67,458 11,879 367,548

303,024 107,589 410,613 305,409 472,733

410,026 145,580 555,606 494,424 697,188

530,759 188,446 719,205 643,113 862,528

697,548 247,665 945,213 425,974 873,761

1,191,944 423,220 1,615,164 88,841 1,085,403

333,716,657 244,429,920 86,784,987 331,214,907 2,501,750

333,716,657$ 247,700,743$ 87,928,488$ 335,629,231$ 1,680,461$ 8,021,243

Penalty and Interest Receivable on Taxes 4,321,229

Less Allowance (2,714,804)

Total Property Taxes Receivable (net) per Exhibit C-1 9,627,668$

1,859,668$ 1,859,668$ $ 1,859,668$ $ $

146


SCHEDULE OF EXPENDITURES FOR COMPUTATIONS Exhibit O-2

OF INDRECT COST FOR 2014-2015

GENERAL AND SPECIAL REVENUE FUNDS


Function 41 and Related Function 53-General Administration , 99 Appraisal District Cost

1 2 3 4 5 6 7

(702) (703) (701) (750) (720) (Other)

Account Account School Tax Supt's Indirect Direct

Number Name Board Collection Office Cost Cost Miscellaneous Total

611X-6146 Payroll Costs 73,737$ 179,359$ 353,737$ 5,963,524$ $ $ 6,570,357$

6149

Fringe Benefits (Unused Leave for

Separating Employees in Function 41

and Related 53)

6149

Fringe Benefits (Unused Leave for

Separating Employees in all

Functions except Function 41 and

Related 53)

6211 Legal Services 821,499 821,499

6212 Audit Services 101,863 101,863

6213

Tax Appraisal and Collection

(Appraisal District Costs only from

Function 99) 2,642,356 2,642,356

6214 Lobbying

621X Other Professional Services 4,272 695 125,795 130,762

6220 Tuition and Transfer Payments

6230 Education Service Centers

6240 Maintenance and Repairs 13,985 13,985

6250 Utilities

6260 Rentals 2,029 8,843 10,872

6290 Miscellaneous Contracted Services 14,058 904 162,628 177,590

6320 Textbooks and Reading 200 1,542 5,161 6,903

6330 Testing Materials

63XX Other Supplies and Materials 772 161 1,611 178,841 181,385

6410 Travel, Subsistence, Stipends 21,985 115 18,573 90,806 131,479

6420 Insurance and Bonding Costs 166,543 166,543

6430 Election Costs 62,236 62,236

6490 Miscellaneous Operating 16,078 563 73,677 156,123 246,441

6500 Debt Service

6600 Capital Outlay 5,704 5,704

6000 Total 1,014,837$ 2,822,554$ 452,768$ 6,960,127$ 13,985$ 5,704$ 11,269,975$

Total expenditures for General and Special Revenue Funds 507,221,101$

LESS: Deductions of unallowable Costs

Total Capital Outlay (6600) 10 6,562,292

Total Debt & Lease (6500) 11

Plant Maintenance (Function 51, 6100-6400) 12 44,483,906

Food (Function 35, 6341 and 6499) 13 13,242,948

Stipends (6413) 14

Column 4 (above) - Total Indirect Cost 6,960,127

Subtotal 71,249,273

Net Allowed Direct Cost 435,971,828$

Total Cost of Buildings Before Depreciation 15 1,217,593,345$

Historical Cost of Buildings Over 50 Years Old 16 810,467$

Federal Money in Building Cost (Net of Above) 17 $

Total Cost of Furniture & Equipment Before Depreciation 18 195,099,880$

Historical Cost of Furniture & Equipment Over 16 Years Old 19 7,346,134$

Federal Money in Furniture & Equipment (Net of Above) 20 19,582,972$

(8) Note A - No Function 53 expenditures are included in this report on administrative costs.

$2,455,136 in Function 99 expenditures for appraisal district costs are included in the report in

administrative costs.

147


SCHEDULE OF REQUIRED RESPONSES TO SELECTED Exhibit O-3

SCHOOL FIRST INDICATORS L1 Worksheet


SF2

Where there any disclosures in the Annual Financial Report and/or other sources of

information concerning default on bonded indebtedness obligations? No

SF4

Did the district receive a clean audit? - Was there an unqualified opinion in the

Annual Financial Report? Yes

SF5

Did the Annual Financial Report disclose any instances of material weaknesses in

internal controls? No

SF9 Was there any disclosure in the Annual Financial Report of material noncompliance? No

SF10

Total accumulated accretion on capital appreciation bonds included in government-

wide financial statements at fiscal year-end 9,827,986$

148


149

STATISTICAL SECTION (UNAUDITED)

The statistical section of the Katy 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 economic condition and overall financial health. To assist financial

statement users, the information contained within this section is categorized as follows:

Financial Trends Information These schedules contain trend information to show how the District’s financial performance

and position have changed over time.

Revenue Capacity Information

These schedules contain information to help assess the factors affecting the District’s most

significant local revenue source, the property tax.

Debt Capacity Information These schedules present information to help assess the affordability of the District’s current

debt burden and its ability to issue additional debt in the future.

Demographic and Economic Information These schedules provide demographic and economic indicators to help in understanding the

environment in which the District operates and to facilitate in comparisons over time.

Operating Information These schedules provide information about the District’s operations and resources to assist in

using the financial statement information to better understand and assess the District’s

economic condition.

150


151

FINANCIAL TRENDS INFORMATION

These schedules contain trend information to assist users in understanding how the District’s

financial position has changed over time.

152


NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS

(accrual basis of accounting)

2004 (1) 2005 (1) 2006 (1) 2007 (1)


Net Investment in Capital Assets 29,058,657$ 27,463,891$ 24,997,611$ 20,411,149$

Restricted 32,258,699 31,626,616 32,500,836 38,775,885

Unrestricted 21,894,511 19,073,280 23,325,590 44,163,519

Total Governmental Activities Net Position 83,211,867$ 78,163,787$ 80,824,037$ 103,350,553$

Primary Government:

Net Investment in Capital Assets 29,058,657$ 27,463,891$ 24,997,611$ 20,411,149$

Restricted 32,258,699 31,626,616 32,500,836 38,775,885

Unrestricted 21,894,511 19,073,280 23,325,590 44,163,519

Total Primary Government Net Position 83,211,867$ 78,163,787$ 80,824,037$ 103,350,553$

(1) 2011 and prior have not been restated for GASB 65 regarding expensing of bond issuance costs.

Source: District Financial Statements

153

Exhibit I

2012

2008 (1) 2009 (1) 2010 (1) 2011 (1) (as restated) 2013

23,580,292$ 20,218,827$ 8,212,302$ 21,482,594$ 15,196,333$ 14,038,245$

39,551,272 45,930,809 55,025,421 53,397,875 56,177,142 58,244,628

54,974,366 70,842,091 76,101,294 89,003,969 114,349,856 142,191,271

118,105,930$ 136,991,727$ 139,339,017$ 163,884,438$ 185,723,331$ 214,474,144$

23,580,292$ 20,218,827$ 8,212,302$ 21,482,594$ 15,196,333$ 14,038,245$

39,551,272 45,930,809 55,025,421 53,397,875 56,177,142 58,244,628

54,974,366 70,842,091 76,101,294 89,003,969 114,349,856 142,191,271

118,105,930$ 136,991,727$ 139,339,017$ 163,884,438$ 185,723,331$ 214,474,144$

154


CHANGES IN NET POSITION


(accrual basis of accounting)

Expenses 2004 (1) 2005 (1) 2006 (1) 2007 (1)


Instruction 190,642,259$ 199,736,287$ 221,648,273$ 235,089,402$

Instructional Resources and Media Services 5,160,756 5,606,088 5,787,639 5,894,688

Curriculum and Instructional Staff Development 4,660,034 5,493,203 6,658,297 7,551,674

Instructional Leadership 3,042,934 2,762,674 3,161,367 3,529,192

School Leadership 18,895,920 19,857,658 20,575,869 23,492,823

Guidance, Counseling, and Evaluation Services 12,298,300 12,949,023 13,037,708 15,335,023

Social Work Services 105,340 66,285 60,253

Health Services 2,929,451 3,450,632 3,713,445 3,890,489

Student Transportation 10,202,993 10,717,877 12,058,695 13,123,010

Food Services 13,479,137 15,521,553 17,211,008 18,156,902

Cocurricular/Extracurricular Activities 5,865,535 6,363,179 7,695,834 8,142,192

General Administration 7,382,986 8,207,955 8,578,280 9,426,367

Plant Maintenance and Operations 28,487,575 32,440,001 35,695,475 38,456,713

Security and Monitoring Services 2,931,282 3,176,345 3,703,420 4,117,254

Data Processing Services 6,979,195 7,310,229 7,928,236 10,703,118

Community Services 937,873 989,942 1,165,140 1,258,994

Interest on Long-term Debt 35,709,269 39,079,447 38,845,376 38,070,152

Bond Issuance Costs and Fees 184,200 1,027,060 792,223 713,967

Facilities Acquisition and Construction 2,052,446 2,321,283 1,117,766 1,137,675

Payments Related to Shared Service Arrangements 151,175 192,823 257,893 324,704

Payments to Juvenile Justice Alternative Ed. Prog. 32,101 15,408 17,409 72,534

Payments to Tax Increment Reinvestment Zone 604,804 683,219 712,987 889,382

Payments to Appraisal Districts

Total Primary Government Expenses 352,735,565 377,968,171 410,422,593 439,376,255

Program Revenues


Charges for Services

Instruction 1,014,411 1,016,392 1,036,035 1,079,165

Food Services 8,513,645 9,182,558 9,751,677 10,457,908

Cocurricular/Extracurricular Activities 653,492 692,431 745,497 818,778

Plant Maintenance and Operations 458,187 512,962 1,154,693 1,163,221

Community Services 461,260 436,276 425,448 456,521

Facilities Acquisition and Construction

Other Activities 237,830 257,370 529,342 523,222

Operating Grants and Contributions 28,883,019 45,851,257 57,260,855 57,195,921

Total Primary Government Program Revenues 40,221,844 57,949,246 70,903,547 71,694,736

Net (Expense)/RevenueTotal Primary Government Net Expense (312,513,721)$ (320,018,925)$ (339,519,046)$ (367,681,519)$

General Revenues and Other Changes in Net Position


Property Taxes, Levied for General Purposes 171,611,930$ 188,508,552$ 204,609,341$ 207,061,154$

Property Taxes, Levied for Debt Service 39,460,323 43,186,971 46,597,555 46,065,028

State Aid - Formula Grants 88,227,999 75,728,794 80,619,011 123,643,052

Investment Earnings 2,613,507 6,289,107 9,573,370 12,554,200

Miscellaneous 1,019,974 1,257,421 780,019 884,601

Special Items

Total Primary Government General Revenues

and Special Items 302,933,733 314,970,845 342,179,296 390,208,035

Change in Net Position

Total Primary Government (9,579,988)$ (5,048,080)$ 2,660,250$ 22,526,516$

(1) 2011 and prior have not been restated for GASB 65 regarding expensing of bond issuance costs.


155

Exhibit II

2012

2008 (1) 2009 (1) 2010 (1) 2011 (1) (as restated) 2013

268,533,006$ 291,929,894$ 318,792,587$ 321,361,278$ 308,601,797$ 333,099,527$

6,672,377 7,931,519 8,776,073 8,694,209 8,327,278 9,015,595

7,157,010 7,050,425 7,910,924 8,323,619 6,940,667 7,871,530

3,757,887 3,881,692 3,925,420 4,078,594 3,794,703 4,059,587

25,360,780 27,312,712 28,700,116 29,459,540 28,168,842 30,333,001

16,855,291 17,815,255 19,331,101 19,932,124 19,025,982 21,261,678

.

4,303,590 4,589,089 5,374,766 5,410,272 4,857,399 5,407,237

15,233,885 12,883,372 15,870,638 16,776,762 16,558,066 17,006,681

21,354,474 23,056,332 25,659,045 25,802,502 25,891,645 27,993,364

9,928,317 9,967,767 10,309,076 12,465,039 11,543,395 12,246,444

8,472,898 9,213,660 9,536,158 10,142,271 9,735,761 9,484,422

43,420,624 46,881,345 47,824,859 48,326,942 45,070,541 47,106,425

4,215,405 4,710,876 5,114,765 5,162,174 4,880,858 5,388,225

11,422,292 11,041,079 11,759,319 11,894,172 10,973,675 12,031,043

1,329,072 1,209,595 1,205,834 1,159,882 1,278,824 1,036,286

40,795,508 43,947,372 45,691,858 40,902,519 48,891,235 54,643,432

785,918 958,143 955,270 303,997 4,243,024 1,015,900

1,540,284 1,162,184 1,845,948 623,871 2,102,576 1,502,445

359,539 448,412 305,166 300,087 232,862 204,065

66,347 76,926 69,917 47,890 32,924 18,088

955,208 1,072,644 510,997 306,098 452,731 1,122,877

1,652,904 2,019,174 2,134,824 2,242,299 2,348,096 2,455,136

494,172,616 529,159,467 571,604,661 573,716,141 563,952,881 604,302,988

1,055,369 1,044,537 1,065,708 1,043,362 907,065 1,033,348

12,340,206 12,792,926 13,032,422 14,375,772 10,456,147 12,699,017

1,014,173 1,480,755 1,765,252 2,023,554 1,952,969 2,252,426

1,389,066 1,613,579 1,729,204 1,876,929 2,426,812 2,232,762

457,242 482,679 200,650 174,218 149,276 156,057

3,325,766 1,219,902

559,189 244,137 593,306 156,749 370,651 324,107

63,253,951 69,097,773 84,775,106 92,971,578 79,970,734 77,328,433

80,069,196 86,756,386 103,161,648 112,622,162 99,559,420 97,246,052

(414,103,420)$ (442,403,081)$ (468,443,013)$ (461,093,979)$ (464,393,461)$ (507,056,936)$

179,739,418$ 209,445,201$ 219,043,580$ 223,109,407$ 232,528,594$ 248,945,316$

63,556,260 74,282,810 77,572,287 79,267,758 82,571,766 88,449,282

174,912,493 171,839,753 166,306,187 181,203,466 173,734,050 195,933,554

9,548,757 2,484,905 6,792,995 1,275,513 1,171,162 1,140,128

1,101,869 1,030,226 1,075,254 783,256 946,468 870,835

3,175,479 468,634

428,858,797 459,082,895 470,790,303 485,639,400 494,127,519 535,807,749

14,755,377$ 16,679,814$ 2,347,290$ 24,545,421$ 29,734,058$ 28,750,813$

156


FUND BALANCES OF GOVERNMENTAL FUNDS


(modified accrual basis of accounting)

Fiscal Year Ended 08/31: 2004 2005 2006 2007

General Fund

Non-spendable 1,202,349$ 1,105,561$ 1,363,980$ 1,354,871$

Committed 4,400,000 6,100,000 4,200,000 2,700,000

Assigned 4,188,413 1,622,383 3,089,885 9,105,587

Unassigned 33,731,432 38,441,226 39,188,541 51,542,427

Total General Fund 43,522,194$ 47,269,170$ 47,842,406$ 64,702,885$

All Other Governmental Funds

Non-spendable 134,944$ 101,225$ 180,427$ 191,582$

Restricted (1) 174,591,227 103,013,750 68,158,526 101,056,547

Committed

Total All Other Governmental Funds 174,726,171$ 103,114,975$ 68,338,953$ 101,248,129$

(1) Changes in Restricted Fund Balances due to the timing of annual bond sales and related

construction expenditures.


157

Exhibit III

2008 2009 2010 2011 2012 2013

1,873,623$ 1,391,967$ 2,157,515$ 1,421,067$ 1,236,844$ 2,454,289$

2,600,000 4,600,000 5,500,000 5,000,000 5,000,000 5,000,000

1,840,860 180,621 334,402 8,940,358 34,873,093 21,324,758

64,643,540 73,692,155 77,732,382 83,922,091 85,796,245 120,426,815

70,958,023$ 79,864,743$ 85,724,299$ 99,283,516$ 126,906,182$ 149,205,862$

132,669$ 179,606$ 251,330$ 218,906$ 239,268$ 329,238$

91,648,933 79,766,603 71,624,798 181,202,286 138,769,172 163,803,381

2,352,818 2,565,430 2,807,308 2,803,515

91,781,602$ 79,946,209$ 74,228,946$ 183,986,622$ 141,815,748$ 166,936,134$

158


CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS


(modified accrual basis of accounting)

2004 2005 2006 2007

REVENUES

Local, Intermediate, and Out-of-State 225,434,989$ 251,579,743$ 274,487,539$ 280,831,045$

State Programs 104,250,459 106,992,248 114,612,387 162,763,562

Federal Programs 12,563,189 14,183,010 22,662,809 17,436,262

Total Revenues 342,248,637 372,755,001 411,762,735 461,030,869

EXPENDITURES

Current:

Instruction 171,212,408 183,307,319 207,056,719 219,194,081

Instructional Resources and Media Services 3,874,739 4,332,612 4,577,636 4,617,025

Curriculum and Instructional Staff Development 4,464,563 5,496,733 6,668,900 7,482,979

Instructional Leadership 2,878,560 2,677,167 3,118,127 3,442,456

School Leadership 17,153,470 18,574,966 19,630,197 22,300,714

Guidance, Counseling, and Evaluation Services 11,447,352 12,360,173 12,623,208 14,803,455

Social Work Services 103,632 65,995 60,232

Health Services 2,410,384 2,962,348 3,262,193 3,389,637

Student Transportation 8,024,220 9,143,923 11,252,902 11,338,150

Food Services 11,327,681 13,182,893 15,023,843 15,971,493

Cocurricular/Extracurricular Activities 4,635,538 5,077,980 5,753,247 6,304,803

General Administration 6,960,872 7,373,660 7,918,102 8,788,291

Plant Maintenance and Operations 26,682,331 30,696,561 34,036,947 37,308,819

Security and Monitoring Services 2,811,394 3,102,896 3,743,425 4,193,896

Data Processing Services 5,619,515 5,156,563 4,840,349 7,316,165

Community Services 919,868 984,453 1,166,604 1,256,604

Debt Service:

Principal on Long-term Debt 21,000,000 24,418,715 27,280,290 23,996,448

Interest on Long-term Debt 36,183,470 38,070,729 38,137,850 41,562,419

Bond Issuance Costs and Fees 1,229,078 796,239 549,710 2,980,150

Capital Outlay:

Facilities Acquisition and Construction 156,135,935 71,549,002 36,334,257 70,036,213

Intergovernmental:

Payments Related to Shared Service Arrangements 151,175 192,823 257,893 324,704

Payments to Juvenile Justice Alternative Education Programs 32,101 15,408 17,409 72,534

Payments to Tax Increment Reinvestment Zone 2,587,822 2,667,763 2,695,281 2,871,182

Payments to Appraisal Districts

Total Expenditures 497,846,108 442,206,921 446,005,321 509,552,218

Excess (Deficiency) of Revenues Over

(Under) Expenditures (155,597,471) (69,451,920) (34,242,586) (48,521,349)


Refunding Bonds Issued 6,029,997 55,043,735 229,339,959

Issuance of Capital Related Debt (General Obligation Bonds) 144,090,000 94,995,000

Sale of Real and Personal Property 38,261 500,181 39,800 216,524

Transfers In 1,923,662 3,076,491 3,306,741 8,913,808

Premium/Discount from Issuance of Bonds 2,544,413 2,193,487 12,770,037

Other Resources 782,629

Transfers Out (4,223,662) (3,076,491) (3,306,741) (9,014,739)

Payment to Bond Refunding Escrow Agent (6,187,379) (56,149,703) (239,712,215)

Total Other Financing Sources (Uses) 144,215,292 1,587,700 39,800 98,291,003

SPECIAL ITEMS

Insurance Recoveries

Extraordinary Item

Net Change in Fund Balances (11,382,179)$ (67,864,220)$ (34,202,786)$ 49,769,654$

Debt Service as a Percentage of Noncapital Expenditures (1) 16.66% 16.82% 15.99% 14.91%


(1) In calculating the ratio of total debt service expenditures to noncapital expenditures, governmental fund expenditures for the acquisition

and construction of assets that are classified as capital assets for reporting in the government-wide financial statements are subtracted from

the total governmental fund expenditures.

Total Expenditures 497,846,108$ 442,206,921$ 446,005,321$ 509,552,218$

Less: Capital Expenditures 154,600,784 70,725,762 36,910,199 69,961,671

Total Non-Capital Expenditures 343,245,324$ 371,481,159$ 409,095,122$ 439,590,547$

159

Exhibit IV

2008 2009 2010 2011 2012 2013

270,977,481$ 303,580,951$ 327,094,361$ 329,823,325$ 340,712,386$ 364,676,808$

216,105,399 210,251,108 196,102,519 213,715,690 202,618,331 225,451,668

21,393,828 26,219,083 49,137,229 57,953,778 43,429,299 40,873,475

508,476,708 540,051,142 572,334,109 601,492,793 586,760,016 631,001,951

251,354,793 269,537,620 291,917,938 301,529,674 285,930,849 307,311,490

5,273,769 5,757,651 6,747,428 6,942,900 6,524,212 7,019,390

7,143,582 6,864,451 7,845,233 8,324,803 6,898,759 7,797,437

3,711,127 3,770,034 3,843,553 4,057,656 3,736,648 3,981,530

24,160,937 25,462,905 26,716,508 27,969,423 26,462,148 28,383,632

16,343,264 17,069,072 18,445,897 19,276,983 18,236,935 20,309,986

3,772,423 4,058,489 4,591,317 4,746,316 4,159,915 4,629,497

16,293,597 13,486,474 12,530,374 17,673,359 13,972,298 13,634,988

19,675,576 20,578,180 22,196,554 22,740,357 23,048,070 24,583,868

7,898,546 7,302,397 7,709,668 9,969,462 9,176,420 9,925,589

7,803,126 8,531,368 8,816,940 9,556,448 9,145,782 8,814,839

41,647,853 45,135,795 45,736,061 46,003,543 42,901,346 45,126,472

4,094,284 4,571,848 4,957,056 5,309,484 4,847,057 5,435,400

7,824,710 7,308,873 7,676,070 8,203,034 7,436,616 8,775,464

1,330,580 1,205,533 1,207,373 1,160,407 1,300,534 1,031,636

33,424,703 30,310,140 32,443,017 33,038,949 35,181,136 35,255,000

44,944,261 50,352,037 47,218,663 57,116,297 50,163,326 55,662,253

2,226,613 812,816 2,628,369 3,053,887 4,243,024 1,015,900

188,034,286 40,056,710 16,170,704 88,182,312 199,914,742 98,070,970

359,540 448,412 305,166 300,087 232,862 204,065

66,347 76,926 69,917 47,890 32,924 18,088

2,938,733 3,054,869 2,493,628 2,290,436 2,435,819 2,690,626

1,652,904 2,019,174 2,134,824 2,242,299 2,348,096 2,455,136

691,975,554 567,771,774 574,402,258 679,736,006 758,329,518 692,133,256

(183,498,846) (27,720,632) (2,068,149) (78,243,213) (171,569,502) (61,131,305)

69,085,000 80,535,000 6,220,000 167,785,000

177,700,000 24,315,000 196,470,000 129,370,000 103,000,000

319,733 43,402 42,371 47,765 4,259,371 80,252

4,516,274 1,155,775 663,483 2,761,373 4,081,714 3,987,659

5,383,879 433,557 10,038,986 5,429,882 29,314,822 7,779,789

(4,516,275) (1,155,775) (663,483) (2,761,373) (4,081,714) (6,487,659)

(72,201,154) (90,611,898) (6,607,541) (174,020,686)

180,287,457 24,791,959 4,459 201,560,106 156,708,507 108,360,041

191,330

312,787

(3,211,389)$ (2,928,673)$ (2,063,690)$ 123,316,893$ (14,548,208)$ 47,420,066$

15.65% 15.33% 14.27% 15.38% 15.29% 15.32%

691,975,554$ 567,771,774$ 574,402,258$ 679,736,006$ 758,329,518$ 692,133,256$

191,177,412 41,572,647 16,035,610 93,728,031 200,034,542 98,631,756

500,798,142$ 526,199,127$ 558,366,648$ 586,007,975$ 558,294,976$ 593,501,500$

160


161

REVENUE CAPACITY INFORMATION

These schedules contain information to assist users in understanding and assessing the factors

affecting the District’s ability to generate its own-source revenues.

162


ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY


Actual Value

Fiscal Year Commercial

Ended 8/31: Residential & Industrial Minerals Vacant Land

2004 7,728,030,594$ 3,042,938,815$ 28,758,820$ 695,222,036$

2005 8,572,474,505 2,955,128,542 26,080,430 810,496,738

2006 9,315,229,123 3,232,219,558 26,770,050 883,427,675

2007 10,163,972,539 3,670,102,098 27,624,630 1,057,853,884

2008 11,620,659,904 4,533,500,162 53,317,250 1,002,449,685

2009 12,819,282,488 5,797,265,319 61,812,773 1,125,242,489

2010 13,681,249,992 5,966,281,419 39,107,987 1,312,938,313

2011 14,401,416,679 5,705,922,710 40,504,850 1,314,770,327

2012 15,151,391,289 5,956,767,164 25,676,428 1,301,661,488

2013 16,095,198,911 6,304,330,980 18,887,750 1,435,122,329

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

Source: County Appraisal Districts

163

Exhibit V

Total Total

Less: Assessed Direct

Other Exemptions Value Rate (1)

352,131,651$ 1,029,093,760$ 10,817,988,156$ 1.9700$

394,709,706 1,028,831,865 11,730,058,056 2.0000

342,414,433 1,111,548,804 12,688,512,035 2.0000

296,073,637 1,212,022,886 14,003,603,902 1.8150

361,470,191 1,399,660,324 16,171,736,868 1.5266

243,110,631 1,373,589,249 18,673,124,451 1.5266

276,521,902 1,758,450,734 19,517,648,879 1.5266

287,292,349 1,929,981,249 19,819,925,666 1.5266

270,073,732 1,978,048,350 20,727,521,751 1.5266

259,998,534 2,030,279,393 22,083,259,111 1.5266

164


PROPERTY TAX RATES – DIRECT AND OVERLAPPING GOVERNMENTS

(PER $100 OF ASSESSED VALUE)


Taxing Authority 2004 2005 2006 2007

District Direct Rates:

Maintenance & Operations $ 1.6000 $ 1.6300 $ 1.6300 $ 1.4850

Debt Service 0.3700 0.3700 0.3700 0.3300

Total District Direct Rates $ 1.9700 $ 2.0000 $ 2.0000 $ 1.8150

Overlapping Rates:

Addicks UD $ 0.6300 $ 0.6300 $ 0.6100 $ 0.6100

Baker Road MUD 0.9100 0.7700 0.6900 0.6800

Castlewood MUD 1.3500 1.3500 1.1500 1.0900

Cimarron MUD 0.7000 0.7000 0.6800 0.6400

Cinco MUD #1 1.0200 1.0200 1.0000 1.5000

Cinco MUD #2 0.6011 0.5800 0.5650 0.5500

Cinco MUD #3 0.6200 0.5750 0.5400 0.5200

Cinco MUD #5 0.7100 0.6500 0.5950 0.5900

Cinco MUD #6 0.7200 0.6900 0.6400 0.5900

Cinco MUD #7 0.7000 0.6650 0.6100 0.5900

Cinco MUD #8 0.9400 0.9400 0.9100 0.9000

Cinco MUD #9 0.7600 0.7600 0.7400 0.6750

Cinco MUD #10 0.8700 0.7100 0.6700 0.6600

Cinco MUD #12 0.6900 0.6400 0.5900 0.5600

Cinco MUD #14 1.0200 1.0200 1.0000 0.9000

Cinco SW MUD #1 *N/A *N/A *N/A *N/A

Cinco SW MUD #2 *N/A *N/A *N/A 1.5000



Cornerstone MUD 0.5000 0.5000 0.4900 0.4900

Fort Bend Co. 0.5237 0.5237 0.5167 0.5167

Fort Bend Co. LID #12 0.5000 0.5000 0.5000 0.3500

Fort Bend Co. MUD #34 1.0500 0.9500 0.8400 0.7500

Fort Bend Co. MUD #35 1.2500 1.2500 1.2500 1.2000

Fort Bend Co. MUD #37 0.6300 0.6300 0.6300 0.5900

Fort Bend Co. MUD #57 *N/A *N/A 1.5000 1.5000


Fort Bend Co. MUD #124 1.2000 1.2000 1.1500 1.0900

Fort Bend Co. MUD #130 0.8000 0.8000 0.8000 0.8000

Fort Bend Co. MUD #142 *N/A 1.3900 1.3900 1.3900


Fort Bend Co. MUD #171 *N/A *N/A *N/A *N/A



Fry Road MUD 0.6200 0.6200 0.5600 0.5400

Grand Lakes MUD #1 1.2500 1.2500 1.1500 1.0300

Grand Lakes MUD #2 1.2200 1.1000 0.9700 0.8600

Grand Lakes MUD #4 0.9000 0.8700 0.8200 0.8200

Grand Lakes WC & ID 0.1700 0.1500 0.1050 0.1000

Green Trails MUD 0.4400 0.4400 0.4400 0.3500

Harris Co. 0.3880 0.3999 0.3999 0.4024

Harris Co. Dept. of Education 0.0063 0.0063 0.0063 0.0063

Harris Co. Flood Contr. Dist. 0.0417 0.0332 0.0332 0.0324

Harris Co. MUD #61 0.6900 0.6900 0.6300 0.5900

Harris Co. MUD #62 0.6700 0.6700 0.6600 0.6100

Harris Co. MUD #63 *N/A *N/A *N/A *N/A

*N/A Political entity not in existence or taxes not yet levied.


165

Exhibit VI

Page 1 of 2

2008 2009 2010 2011 2012 2013

$ 1.1266 $ 1.1266 $ 1.1266 $ 1.1266 $ 1.1266 $ 1.1266

0.4000 0.4000 0.4000 0.4000 0.4000 0.4000

$ 1.5266 $ 1.5266 $ 1.5266 $ 1.5266 $ 1.5266 $ 1.5266

$ 0.6100 $ 0.6000 $ 0.6300 $ 0.6550 $ 0.6550 $ 0.6550

0.6600 0.6300 0.5450 0.5650 0.5650 0.5000

0.9500 0.8900 0.8900 0.8700 0.8500 0.8500

0.6000 0.5800 0.5700 0.5700 0.5700 0.5700

0.8800 0.8800 0.6750 0.6450 0.5950 0.5500

0.5200 0.5000 0.4750 0.4750 0.4750 0.4750

0.5100 0.5100 0.4700 0.4700 0.4800 0.4600

0.5750 0.5750 0.5000 0.4950 0.4950 0.4750

0.5900 0.5900 0.4800 0.4800 0.4800 0.4800

0.5750 0.5750 0.5250 0.5200 0.4900 0.4850

0.8900 0.8900 0.8400 0.8500 0.5950 0.8200

0.6500 0.3700 0.6100 0.5950 0.5950 0.5950

0.6500 0.6500 0.6000 0.6100 0.5900 0.5900

0.5300 0.5300 0.4700 0.4300 0.4300 0.3600

0.7900 0.7900 0.6600 0.6350 0.5950 0.5550

*N/A 1.5000 1.5000 1.5000 1.5000 1.5000

1.5000 1.5000 1.5000 1.5000 1.5000 1.4450

*N/A 1.5000 1.5000 1.5000 1.5000 1.5000

*N/A 1.5000 1.5000 1.5000 1.5000 1.4800

0.4300 0.3800 0.3700 0.3700 0.3600 0.3600

0.5167 0.4998 0.4998 0.4998 0.4998 0.4998

0.2500 0.1900 0.1500 0.1400 0.1300 0.1250

0.7200 0.7100 0.7100 0.6900 0.6800 0.6800

1.0500 0.8900 0.7400 0.6900 0.6300 0.6300

0.5900 0.5900 0.5600 0.5200 0.5200 0.5200

1.5000 1.5000 1.5000 1.5000 1.4500 1.4500

1.5000 1.5000 1.5000 1.5000 1.5000 1.5000

0.9900 0.9200 0.9200 0.9200 0.9900 0.9900

0.7900 0.7700 0.7600 0.7600 0.7500 0.7400

1.3200 1.3200 1.3200 1.3200 1.3200 1.2700

1.3000 1.3000 1.3000 1.2700 1.2600 1.2600

*N/A 1.2940 1.2940 1.2950 1.2950 1.2833

*N/A 1.2500 1.2500 1.2500 1.2500 1.2500

*N/A *N/A *N/A *N/A 0.6000 0.6000

0.5000 0.4650 0.4650 0.5000 0.5000 0.5000

0.7900 0.7900 0.6500 0.6300 0.5400 0.5400

0.7000 0.7000 0.4650 0.4550 0.4450 0.4375

0.8200 0.8200 0.7900 0.7900 0.7700 0.7600

0.0950 0.0950 0.0875 0.0825 0.0825 0.0825

0.2700 0.3000 0.3600 0.4400 0.4000 0.2600

0.3924 0.3892 0.3922 0.3881 0.3912 0.4002

0.0059 0.0058 0.0061 0.0066 0.0066 0.0066

0.0311 0.0309 0.0292 0.0292 0.0281 0.0281

0.5900 0.5900 0.5900 0.5900 0.5900 0.5900

0.6100 0.6200 0.6500 0.6500 0.6500 0.6500

*N/A 0.8500 0.8500 0.8500 0.8500 0.7000

166


PROPERTY TAX RATES – DIRECT AND OVERLAPPING GOVERNMENTS

(PER $100 OF ASSESSED VALUE)


Taxing Authority 2004 2005 2006 2007

Overlapping Rates:

Harris Co. MUD #64 $ 0.7000 $ 0.7000 $ 0.7000 $ 0.7000

Harris Co. MUD #65 0.8260 0.8260 0.8260 0.8260

Harris Co. MUD #71 1.1780 1.1700 1.1700 1.1300

Harris Co. MUD #81 0.5000 0.4500 0.4000 0.3800

Harris Co. MUD #105 1.1000 1.0500 1.0000 0.9500

Harris Co. MUD #216 1.2500 1.2500 1.2500 1.2500

Harris Co. MUD #238 0.8200 0.8100 0.7800 0.7500


Harris Co. MUD #345 0.4000 0.3950 0.3950 0.3900

Harris Co. MUD #346 0.8300 0.7100 0.5500 0.5000


Harris Co. UD #6 0.2400 0.2400 0.2400 0.2400

Harris-Fort Bend Cos. MUD #1 1.1000 1.0500 1.0000 0.9500

Harris-Fort Bend Cos. MUD #3 *N/A *N/A *N/A *N/A



Houston, City of 0.6550 0.6500 0.6475 0.6450

Interstate MUD 0.9500 0.9300 0.7400 0.6500

Jackrabbit Road PUD 0.4100 0.4100 0.4100 0.3450

Katy, City of 0.6147 0.6147 0.6147 0.6054

Longhorn Town UD 0.8500 0.8300 0.8100 0.7700

Mason Creek UD 0.3250 0.3250 0.3250 0.3250

Mayde Creek MUD 0.8200 0.8150 0.8000 0.7550

Memorial MUD 0.8400 0.7800 0.7000 0.6600

Morton Road MUD 0.8900 0.8400 0.8100 0.8100

Northwest Harris Co. MUD #12 1.1000 1.0500 1.0000 0.9800

Nottingham Country MUD 0.5300 0.5300 0.5300 0.5000

Port of Houston Authority 0.0200 0.0167 0.0147 0.0130

Ricewood MUD 0.6900 0.6750 0.6600 0.6200

Rolling Creek UD *N/A *N/A *N/A *N/A

Waller County 0.6562 0.6675 0.6999 0.6660

Waller County RID #1 *N/A *N/A *N/A *N/A

Waller-Harris ESD 2000 *N/A 0.0975 0.1000 0.1000

West Harris Co. MUD #2 0.3800 0.4000 0.4200 0.4200

West Harris Co. MUD #5 *N/A *N/A *N/A 1.2000



Westlake MUD #1 0.6000 0.6000 0.6000 0.6000

West Memorial MUD 0.2930 0.2930 0.3000 0.3200

Weston MUD 0.7500 0.7000 0.6400 0.6200

Westpark MUD 0.6500 0.6200 0.6200 0.6500

Willow Creek Farms MUD *N/A *N/A *N/A *N/A

Willow Fork DD 0.3000 0.2700 0.2600 0.2400

Woodcreek Reserve MUD 0.6000 0.6000 0.6600 0.5100

UD - Utility District

MUD - Municipal Utility District

PUD - Public Utility District

LID - Land Improvement District

RID - Road Improvement District

DD - Development District

ESD - Emergency Services District

WC & ID - Water Control & Improvement District

*N/A Political entity not in existence or taxes not yet levied.


167

Exhibit VI

Page 2 of 2

2008 2009 2010 2011 2012 2013

$ 0.7000 $ 0.7100 $ 0.7100 $ 0.7100 $ 0.7100 $ 0.7100

0.8260 0.8260 0.8260 0.8460 0.8960 0.9770

1.0900 1.0200 1.1000 1.1000 1.1000 1.1000

0.3700 0.3500 0.3500 0.3700 0.3700 0.3700

0.9300 0.9300 0.9300 0.9300 0.9300 0.9300

1.2500 1.2500 1.2200 1.1600 1.1000 1.0700

0.7300 0.7300 0.7200 0.7200 0.7150 0.6950

1.3500 1.3500 1.3500 1.3500 1.3500 1.3500

0.3700 0.3700 0.3700 0.3900 0.4200 0.4200

0.4900 0.4700 0.4400 0.4050 0.2800 0.2000

*N/A *N/A *N/A 1.5000 1.5000 1.5000

0.2400 0.2400 0.2400 0.2400 0.2400 0.2400

0.8800 0.8000 0.7700 0.7500 0.7300 0.7000

*N/A 1.2500 1.2500 1.2500 1.2400 1.2400

0.9600 0.9600 0.9600 0.9500 0.9500 0.8800

0.8200 0.7500 0.7500 0.7300 0.7100 0.7100

0.6438 0.6388 0.6388 0.6388 0.6388 0.6388

0.5500 0.4400 0.4350 0.4350 0.4250 0.4200

0.3450 0.3450 0.3450 0.3450 0.3450 0.2500

0.6054 0.5937 0.5937 0.5937 0.5937 0.5867

0.7000 0.7000 0.6700 0.6500 0.6500 0.6300

0.3240 0.3240 0.3240 0.3460 0.3460 0.3460

0.7550 0.7550 0.8370 0.8960 0.8960 0.9150

0.5800 0.5200 0.5400 0.5550 0.5500 0.5400

0.7900 0.7900 0.7900 0.8200 0.8400 0.8400

0.9600 0.9600 0.9600 1.0100 1.0600 1.0600

0.4300 0.4100 0.3950 0.3950 0.3950 0.3950

0.0144 0.0177 0.0164 0.0205 0.0186 0.0195

0.5600 0.5600 0.5600 0.5800 0.5800 0.5800

*N/A *N/A 0.9900 0.9800 0.9700 0.9700

0.6288 0.6425 0.6246 0.6484 0.6598 0.6611

*N/A 1.2500 1.2500 1.2500 1.2500 1.2500

0.0906 0.0930 0.0970 0.0944 0.0944 0.0995

0.4200 0.4200 0.4700 0.4600 0.5000 0.5000

1.2000 1.2000 1.2000 1.2000 1.2000 1.2000

0.9700 0.9300 0.9200 0.9000 0.9000 0.9000

0.8200 0.9300 0.9700 1.0100 1.2500 1.3100

0.6000 0.6000 0.6000 0.6000 0.6400 0.6325

0.3200 0.3200 0.3800 0.4500 0.4500 0.4500

0.6200 0.6200 0.6200 0.6200 0.6100 0.6100

0.6500 0.6500 0.4800 0.6500 0.7500 0.6700

1.2500 1.2500 1.2500 1.2500 1.2500 1.2500

0.2000 0.1900 0.1900 0.1900 0.1900 0.1900

0.6000 0.5100 0.5500 0.6000 0.6000 0.6000

168


PRINCIPAL TAXPAYERS Exhibit VII

CURRENT YEAR AND NINE YEARS AGO

2013 2004

Percentage of Percentage of

Assessed Total Assessed Assessed Total Assessed

Taxpayer Value (1) Rank Value (2) Value (1) Rank Value (3)

BP Amoco 392,779,809$ 1 1.78% 132,802,550$ 2 1.23%

Westlake Four Owner Corp 182,240,435 2 0.83 110,085,100 3 1.02

Conoco Phillips Co. 127,990,942 3 0.58 89,391,450 4 0.83

Katy Mills LP 113,923,870 4 0.52 169,187,880 1 1.56

Centerpoint Energy (4) 108,463,578 5 0.49

Shell Oil Co. 105,717,735 6 0.48 71,087,328 7 0.66

Academy Ltd. 100,568,982 7 0.46 77,151,900 6 0.71

Wal-Mart 82,545,638 8 0.37 62,639,245 8 0.58

Sercel, Inc. 73,844,345 9 0.33

KBS II Two 70,738,689 10 0.32

Reliant Energy (4) 79,620,590 5 0.74

Katy Storage & Transport 61,552,310 9 0.57

ExxonMobil Corporation 58,147,410 10 0.54

TOTALS 1,358,814,023$ 6.16% 911,665,763$ 8.44%

(1) Assessed (taxable) value equals appraised value after exemptions.

(2) Total assessed value equals: 22,083,259,111$

(3) Total assessed value equals: 10,817,988,156$

(4) Centerpoint Energy was formerly Reliant Energy.


169


PROPERTY TAX LEVIES AND COLLECTIONS Exhibit VIII


Collected within the

Fiscal Year of the Levy Total Collections to Date

Collections

Fiscal Year Adjusted Percentage in Subsequent Percentage

Ended 8/31: Tax Levy Amount of Levy Years Amount of Levy

2004 208,922,612$ 205,466,339$ 98.35% 3,186,620$ 208,652,959$ 99.87%

2005 231,256,994 227,014,603 98.17 3,898,077 230,912,680 99.85

2006 249,041,523 244,492,055 98.17 4,207,871 248,699,926 99.86

2007 250,574,885 246,717,803 98.46 3,489,535 250,207,338 99.85

2008 241,816,171 237,881,768 98.37 3,461,671 241,343,439 99.80

2009 282,922,332 276,744,032 97.82 5,481,112 282,225,144 99.75

2010 294,968,580 290,752,880 98.57 3,353,172 294,106,052 99.71

2011 298,962,312 296,166,452 99.06 1,922,099 298,088,551 99.71

2012 312,957,852 310,257,285 99.14 1,615,164 311,872,449 99.65

2013 333,716,657 331,214,907 99.25 331,214,907 99.25

Source: Katy Independent School District Tax Office.

170


171

DEBT CAPACITY INFORMATION

These schedules contain information to assist users in understanding and assessing the District’s

debt burden and its ability to issue additional debt in the future.

172


RATIOS OF OUTSTANDING DEBT BY TYPE Exhibit IX


General Accretion on Ratio of

Obligation & Capital Total Debt to Debt

Fiscal Year Refunding Appreciation Capital Primary Assessed per

Ended 8/31: Bonds Bonds Leases Government Value (1) ADA (2)

2004 794,638,402$ 36,751,031$ 24,585,000$ 855,974,433$ 7.91% 21,419$

2005 770,219,688 39,709,448 23,960,000 833,889,136 7.11 19,697

2006 742,939,398 39,283,519 23,315,000 805,537,917 6.35 17,667

2007 811,472,908 39,442,081 22,645,000 873,559,989 6.24 18,033

2008 955,748,205 34,876,364 21,945,000 1,012,569,569 6.26 19,785

2009 949,753,065 27,568,558 21,215,000 998,536,623 5.35 18,614

2010 914,060,048 26,425,732 20,450,000 960,935,780 4.92 17,312

2011 1,077,256,097 9,711,419 19,645,000 1,106,612,516 5.58 19,186

2012 1,165,099,961 9,409,109 17,360,000 1,191,869,070 5.75 20,116

2013 1,232,844,961 9,827,986 16,245,000 1,258,917,947 5.70 20,495

(1) See Exhibit V for assessed value data.

(2) See Exhibit XV for student Average Daily Attendance (ADA) data.

Source: District Records

Governmental Actvities

173


RATIOS OF NET GENERAL OBLIGATION BONDED DEBT OUTSTANDING Exhibit X


Primary Ratio of Net

General Less Reserve Government Bonded Debt Net Bonded

Fiscal Year Obligation for Retirement Net Bonded to Assessed Debt

Ended 8/31: Bonds of Bonded Debt Debt Value (1) per ADA (2)

2004 794,638,402$ 28,679,465$ 765,958,937$ 7.08% 19,166$

2005 770,219,688 26,643,218 743,576,470 6.34 17,564

2006 742,939,398 25,987,669 716,951,729 5.65 15,724

2007 811,472,908 30,894,113 780,578,795 5.57 16,113

2008 955,748,205 31,341,477 924,406,728 5.72 18,062

2009 949,753,065 35,715,443 914,037,622 4.89 17,039

2010 914,060,048 43,788,671 870,271,377 4.46 15,678

2011 1,077,256,097 39,672,424 1,037,583,673 5.24 17,989

2012 1,165,099,961 43,645,850 1,121,454,111 5.41 18,927

2013 1,232,844,961 49,056,113 1,183,788,848 5.36 19,271

(1) See Exhibit V for assessed value data.

(2) See Exhibit XV for student Average Daily Attendance data.



174


DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT

AUGUST 31, 2013

Amount

Percent Overlapping

Taxing Authority Amount As Of Overlapping (1) Gross DebtDirect:

Katy Independent School District 1,306,768,476$ 8/31/2013 100.00% 1,306,768,476$

Overlapping:

Addicks UD 12,290,000 10/31/2013 100.00 12,290,000

Baker Road MUD 3,875,000 10/31/2013 100.00 3,875,000

Castlewood MUD 8,650,000 10/31/2013 100.00 8,650,000

Cimarron MUD 28,210,000 10/31/2013 100.00 28,210,000

Cinco MUD #1 6,138,613 10/31/2013 100.00 6,138,613

Cinco MUD #2 10,840,030 10/31/2013 100.00 10,840,030

Cinco MUD #3 6,082,628 10/31/2013 100.00 6,082,628

Cinco MUD #5 6,996,234 10/31/2013 100.00 6,996,234

Cinco MUD #6 7,050,382 10/31/2013 100.00 7,050,382

Cinco MUD #7 12,524,663 10/31/2013 100.00 12,524,663

Cinco MUD #8 13,057,369 10/31/2013 100.00 13,057,369

Cinco MUD #9 7,253,888 10/31/2013 100.00 7,253,888

Cinco MUD #10 10,562,436 10/31/2013 100.00 10,562,436

Cinco MUD #12 4,851,033 10/31/2013 100.00 4,851,033

Cinco MUD #14 21,158,627 10/31/2013 100.00 21,158,627

Cinco Southwest MUD #1 336,168 10/31/2013 100.00 336,168

Cinco Southwest MUD #2 78,321,496 10/31/2013 100.00 78,321,496



Cornerstone MUD 3,315,000 10/31/2013 100.00 3,315,000

Fort Bend Co. 468,360,000 10/31/2013 18.95 88,754,220

Fort Bend Co. LID #12 14,525,000 10/31/2013 5.24 761,110

Fort Bend Co. MUD #34 19,710,000 10/31/2013 100.00 19,710,000

Fort Bend Co. MUD #35 40,660,000 10/31/2013 100.00 40,660,000

Fort Bend Co. MUD #57 27,260,000 10/31/2013 100.00 27,260,000

Fort Bend Co. MUD #58 14,625,000 10/31/2013 100.00 14,625,000

Fort Bend Co. MUD #124 11,510,000 10/31/2013 100.00 11,510,000

Fort Bend Co. MUD #130 11,885,000 10/31/2013 100.00 11,885,000

Fort Bend Co. MUD #142 50,220,000 10/31/2013 44.70 22,448,340

Fort Bend Co. MUD #151 56,210,000 10/31/2013 94.91 53,348,911

Fort Bend Co. MUD #171 42,536,453 10/31/2013 100.00 42,536,453

Fort Bend Co. MUD #185 11,085,000 10/31/2013 100.00 11,085,000

Fort Bend Co. MUD #199 2,020,000 10/31/2013 100.00 2,020,000

Fry Road MUD 1,570,000 10/31/2013 100.00 1,570,000

Grand Lakes MUD #1 13,460,000 10/31/2013 100.00 13,460,000

Grand Lakes MUD #2 11,690,000 10/31/2013 100.00 11,690,000

Grand Lakes MUD #4 18,390,000 10/31/2013 100.00 18,390,000

Grand Lakes WC & ID 4,980,000 10/31/2013 100.00 4,980,000

Green Trails MUD 2,030,000 10/31/2013 100.00 2,030,000

Harris Co. 2,576,263,704 10/31/2013 3.94 101,504,790

Harris Co. Dept. of Education 7,605,000 10/31/2013 3.94 299,637

Harris Co. Flood Contr. Dist. 92,935,000 10/31/2013 3.94 3,661,639

Harris Co. MUD #61 4,440,000 10/31/2013 100.00 4,440,000

Harris Co. MUD #62 520,000 10/31/2013 100.00 520,000

Harris Co. MUD #63 11,905,000 10/31/2013 100.00 11,905,000

Harris Co. MUD #64 12,885,000 10/31/2013 100.00 12,885,000

Harris Co. MUD #65 15,000,000 10/31/2013 100.00 15,000,000

Harris Co. MUD #71 42,935,000 10/31/2013 100.00 42,935,000

Harris Co. MUD #81 8,485,000 10/31/2013 100.00 8,485,000

Harris Co. MUD #105 24,390,000 10/31/2013 3.94 960,966

Harris Co. MUD #216 7,780,000 10/31/2013 100.00 7,780,000

Gross Debt Outstanding

175

Exhibit XI

Amount

Percent Overlapping

Taxing Authority Amount As Of Overlapping (1) Gross DebtOverlapping:

Harris Co. MUD #238 22,700,000$ 10/31/2013 100.00% 22,700,000$

Harris Co. MUD #287 5,855,000 10/31/2013 100.00 5,855,000

Harris Co. MUD #345 3,235,000 10/31/2013 100.00 3,235,000

Harris Co. MUD #432 5,170,000 10/31/2013 100.00 5,170,000

Harris Co. Toll Road 432,540,000 10/31/2013 3.94 17,042,076

Harris Co. UD #6 3,160,000 10/31/2013 100.00 3,160,000

Harris-Fort Bend Cos. MUD #1 15,965,000 10/31/2013 100.00 15,965,000




Houston, City of 3,181,160,000 10/31/2013 1.47 46,763,052

Interstate MUD 11,660,000 10/31/2013 100.00 11,660,000

Katy, City of 9,295,000 10/31/2013 100.00 9,295,000

Longhorn Town UD 4,520,000 10/31/2013 100.00 4,520,000

Mason Creek UD 2,175,000 10/31/2013 100.00 2,175,000

Mayde Creek MUD 13,115,000 10/31/2013 100.00 13,115,000

Memorial MUD 10,435,000 10/31/2013 100.00 10,435,000

Morton Road MUD 6,735,000 10/31/2013 100.00 6,735,000

Northwest Harris Co. MUD #12 7,765,000 10/31/2013 0.55 42,708

Nottingham Country MUD 7,965,000 10/31/2013 100.00 7,965,000

Port of Houston Authority 717,624,397 10/31/2013 3.94 28,274,401

Ricewood MUD 7,270,000 10/31/2013 100.00 7,270,000

Rolling Creek UD 11,105,000 10/31/2013 13.97 1,551,369

West Harris Co. MUD #2 2,565,000 10/31/2013 100.00 2,565,000




Westlake MUD #1 5,310,000 10/31/2013 100.00 5,310,000

West Memorial MUD 4,255,000 10/31/2013 100.00 4,255,000

West Park MUD 15,180,000 10/31/2013 100.00 15,180,000

Weston MUD 15,420,000 10/31/2013 100.00 15,420,000

Willow Creek Farms MUD 5,170,000 10/31/2013 97.57 5,044,369

Willow Fork DD 33,710,000 10/31/2013 100.00 33,710,000

Woodcreek Reserve MUD 5,288,703 10/31/2013 100.00 5,288,703

Subtotal, Overlapping Debt 1,342,748,646

TOTAL DIRECT AND OVERLAPPING DEBT 2,649,517,122$

UD - Utility District

MUD - Municipal Utility District

PUD - Public Utility District

LID - Land Improvement District

DD - Development District

WC & ID - Water Control & Improvement District

(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 compiled and published by the Municipal Advisory Council of Texas

Gross Debt Outstanding

176


177

DEMOGRAPHIC AND ECONOMIC INFORMATION

These schedules contain information to assist users in understanding the socioeconomic

environment in which the District operates and to provide information that facilitates

comparisons of financial statement information over time and with other school districts.

178


DEMOGRAPHIC AND ECONOMIC STATISTICS Exhibit XII


Total Average

Assessed Assessed

Fiscal Value of Value Per Average

Year Ended Residential Residential Residential Daily Unemployment

08/31: Units (1) Units (1) Unit Attendance (2) Population (3) Rate (4)

2004 52,373 7,411,604,567$ 141,516$ 39,964 182,000 2.79%

2005 54,713 8,169,441,828 149,314 42,336 196,000 2.78

2006 58,948 8,873,495,383 150,531 45,596 211,000 2.76

2007 63,687 9,658,273,966 151,652 48,443 225,000 2.79

2008 64,307 11,083,214,223 172,348 51,179 237,000 2.86

2009 67,095 11,964,914,716 178,328 53,644 252,000 2.95

2010 71,236 12,981,238,080 182,229 55,508 260,000 2.83

2011 73,679 13,660,293,039 185,403 57,679 268,000 4.80

2012 74,967 14,326,714,983 191,107 59,250 270,000 4.90

2013 76,598 15,145,015,789 197,721 61,427 275,000 3.30

(1) Source: County Appraisal Districts - Includes Single Family Residential Units

(2) Source: District Records

(3) Source: Municipal Advisory Council of Texas

(4) Source: Katy Area Economic Development Council and Katy Area Chamber of Commerce

Due to the District's boundaries falling within three separate counties, total personal income data for geographic area is

not available for the ten year period presented.

179


PRINCIPAL EMPLOYERS Exhibit XIII

CURRENT YEAR AND NINE YEARS AGO

2013 2004

Percentage Percentage

of Total of Total

Employer Employees Rank Employment (1) Employees Rank Employment (2)

BP North America 9,000 1 5.66% 5,000 2

Katy ISD 8,929 2 5.42 5,064 1

Mustang Engineering/Wood Group 3,500 3 2.53 2,000 4

Shell Exploration & Production 3,000 4 2.17 500 7

Academy Sports and Outdoors 2,500 5 1.81

Conoco (3) 2,000 6 1.45

Phillips 66 (3) 2,000 6 0.87

Worley Parsons 2,000 6 0.72

Foster Wheeler 1,200 9 0.51

Walmart 1,000 10 0.51

ConocoPhillips (3) 3,500 3

ExxonMobil Corporation 1,400 5

Star Furniture 800 6

Albertson's 450 8

City of Katy 400 9

Memorial Hermann Katy Hospital 400 10

TOTALS 35,129 21.65% 19,514 n/a

(1) Total employment for 2013: 133,755

(2) Total employment data not available for 2004

(3) Conoco and Phillips 66 were formerly ConocoPhillips

Source: Katy Chamber of Commerce (2004) and Katy Area Economic Development Council (2013) through Info USA

and direct interviews.

180


181

OPERATING INFORMATION

These schedules contain information intended to provide contextual information about the

District’s operations and resources to assist readers in using financial statement information to

understand and assess the District’s economic condition.

182


FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY POSITION


POSITION: 2004 2005 2006 2007

Instruction 3,194.1 3,452.3 3,674.8 4,091.7

Instructional Resources and Media Services 78.0 77.0 88.0 85.0

Curriculum and Instructional Staff Development 37.0 51.2 62.9 60.0

Instructional Leadership 51.0 41.2 49.0 44.9

School Leadership 325.9 379.6 384.7 378.7

Guidance, Counseling, and Evaluation Services 168.5 186.0 199.4 203.0

Social Work Services 3.0 3.0 1.0 1.0

Health Services 47.8 53.9 64.9 68.9

Student Transportation 406.0 415.7 435.3 453.4

Food Services 364.0 388.0 411.0 400.0

Cocurricular/Extracurricular Activities 4.0 4.0 5.0 5.0

General Administration 92.0 90.0 107.0 110.7

Plant Maintenance and Operations 525.0 573.0 649.0 582.2

Security and Monitoring Services 63.0 73.0 76.0 78.0

Data Processing Services 64.0 75.0 72.0 57.0

Community Services 1.0 2.2 4.2 5.3

Facilities Acquisition and Construction 5.0 7.0 6.0 6.0

Total Employees 5,429.3 5,872.1 6,290.2 6,630.8


183

Exhibit XIV

2008 2009 2010 2011 2012 2013

4,484.0 4,817.5 5,070.0 5,329.0 4,926.5 5,723.5

102.0 109.0 111.0 116.0 106.0 112.0

64.6 63.3 65.8 65.0 41.5 59.5

59.9 62.2 59.7 61.0 56.0 54.0

438.0 465.0 474.0 488.0 464.0 518.0

243.5 265.0 268.5 286.5 261.5 280.0

0.0 0.0 0.0 0.0 0.0 0.0

81.0 90.0 97.0 108.0 104.0 107.0

476.7 533.0 527.0 485.0 490.0 505.0

476.0 511.0 517.0 513.0 493.0 546.0

7.0 9.0 9.0 16.0 16.0 27.0

104.5 109.4 103.4 112.4 100.4 93.4

583.0 656.0 660.0 660.0 566.0 651.0

90.0 94.0 93.0 96.0 93.0 128.0

74.0 88.0 95.0 105.0 92.0 101.0

5.3 6.8 19.6 4.6 4.6 16.6

6.0 6.0 6.0 6.0 6.0 7.0

7,295.5 7,885.2 8,176.0 8,451.5 7,820.5 8,929.0

184


OPERATING STATISTICS


Average Cost

Fiscal Year Daily Operating Per Percentage

Ended 8/31: Attendance Expenditures (1) ADA Change

2004 39,964 284,832,776$ 7,127$ 0.21%

2005 42,336 308,195,476 7,280 2.14

2006 45,596 343,127,272 7,525 3.37

2007 48,443 371,051,530 7,660 1.78

2008 51,179 420,202,565 8,210 7.19

2009 53,644 444,724,134 8,290 0.97

2010 55,508 476,076,599 8,577 3.46

2011 57,679 492,798,842 8,544 (0.38)

2012 59,250 468,707,490 7,911 (7.41)

2013 61,427 501,568,347 8,165 3.22

(1) Operating expenditures are total expenditures less debt service and capital outlay (to the extent

capitalized for the government-wide statement of net assets) and expenditures for capitalized

assets included within the functional expenditures categories.

Source: Academic Excellence Indicator System of Texas (AEIS), Texas Academic Performance

Reports (TAPR) and District records

185

Exhibit XV

Percentage of

Government Cost Student to Students in

Wide Per Percentage Teaching Teacher Free/Reduced

Expenses ADA Change Staff Ratio Lunch Program

352,735,565$ 8,826$ 5.18% 2,796 14.29 17.30%

377,968,171 8,928 1.15 2,910 14.55 20.30

410,422,593 9,001 0.82 3,199 14.25 23.30

439,376,255 9,070 0.76 3,423 14.15 24.10

494,172,616 9,656 6.46 3,670 13.95 25.00

529,159,467 9,864 2.16 3,914 13.71 27.90

571,604,661 10,298 4.39 4,120 13.47 29.10

573,716,141 9,947 (3.41) 4,125 13.98 30.20

563,952,881 9,518 (4.31) 3,860 15.35 31.30

604,302,988 9,838 3.36 4,068 15.10 30.10

186


TEACHER BASE SALARIES Exhibit XVI


KISD Region IV Statewide

Minimum Maximum Average Average Average

Salary (1) Salary (1) Salary (2) Salary (2) Salary (2)

35,600$ 64,444$ 43,982$ 42,531$ 40,478$

36,500 65,237 43,733 43,107 41,011

38,100 67,084 44,808 43,852 41,744

41,000 69,584 47,646 46,675 44,897

42,130 72,517 48,385 48,053 46,179

43,300 71,624 49,263 49,186 47,159

44,000 76,205 50,374 50,129 48,263

45,000 77,073 50,799 50,616 48,638

45,000 77,073 51,145 50,383 48,375

45,500 77,822 51,797 50,968 48,821

(1) Source: District records

(2) Source: Academic Excellence Indicator System of Texas (AEIS) from 2004-2012

Texas Academic Performance Reports (TAPR) - 2013

2012

2013

2009

2010

2011

2008

Fiscal Year

Ended 08/31:

2004

2005

2006

2007

187


188


SCHOOL BUILDING INFORMATION


Building: 2004 2005 2006 2007

HIGH SCHOOLS

Cinco Ranch (1999)

Square Footage 581,934 581,934 581,934 581,934

Capacity 3,000 3,000 3,000 3,000

Enrollment 3,207 3,604 3,252 3,016

Katy (1947)

Square Footage 589,196 589,196 589,196 589,196

Capacity 3,000 3,000 3,000 3,000

Enrollment 3,056 2,780 2,642 2,542

Mayde Creek (1984)

Square Footage 581,821 581,821 581,821 581,821

Capacity 3,000 3,000 3,000 3,000

Enrollment 3,209 2,760 2,527 2,417

Morton Ranch (2004)

Square Footage 482,996 482,996 482,996

Capacity 2,400 2,400 2,400

Enrollment 1,191 1,882 2,576

Raines (2008)

Square Footage

Capacity

Enrollment

Seven Lakes (2005)

Square Footage 599,005 599,005

Capacity 3,000 3,000

Enrollment 837 1,515

Taylor (1979)

Square Footage 542,192 542,192 542,192 542,192

Capacity 3,000 3,000 3,000 3,000

Enrollment 2,605 2,769 2,748 2,673

JUNIOR HIGH SCHOOLS

Beck (1996)

Square Footage 137,569 137,569 137,569 137,569

Capacity 1,232 1,232 1,232 1,232

Enrollment 1,542 1,103 1,148 1,141

Beckendorff (2004)

Square Footage 184,398 184,398 184,398

Capacity 1,403 1,403 1,403

Enrollment 707 986 1,296

Cardiff (2008)

Square Footage

Capacity

Enrollment

Cinco Ranch (2001)

Square Footage 154,637 154,637 154,637 154,637

Capacity 1,400 1,400 1,400 1,400

Enrollment 1,103 1,013 1,096 1,163

189

Exhibit XVII

Page 1 of 6

2008 2009 2010 2011 2012 2013

581,934 581,934 581,934 581,934 581,934 581,934

3,000 3,000 3,000 3,000 3,000 3,000

2,748 2,765 2,819 2,905 2,970 3,030

589,196 589,196 589,196 589,196 589,196 589,196

3,000 3,000 3,000 3,000 3,000 3,000

2,521 2,569 2,574 2,632 2,697 2,750

581,821 603,141 603,141 603,141 603,141 603,141

3,000 3,000 3,000 3,000 3,000 3,000

2,518 2,528 2,627 2,569 2,560 2,635

482,996 583,628 583,628 583,628 583,628 583,628

2,400 3,000 3,000 3,000 3,000 3,000

2,753 2,817 2,864 2,919 3,043 3,193

21,916 21,916 21,916 21,916 21,916

331 331 331 331 331

160 185 214 203 236

599,005 599,005 599,005 599,005 599,005 599,005

3,000 3,000 3,000 3,000 3,000 3,000

2,346 2,787 3,128 3,374 3,635 3,888

542,192 542,192 542,192 542,192 542,192 542,192

3,000 3,000 3,000 3,000 3,000 3,000

2,627 2,544 2,465 2,629 2,689 2,744

137,569 137,569 137,569 137,569 137,569 137,569

1,232 1,232 1,232 1,232 1,232 1,232

1,160 1,179 1,153 1,151 1,149 1,154

184,398 184,398 184,398 184,398 184,398 184,398

1,403 1,403 1,403 1,403 1,403 1,403

1,765 1,382 1,514 1,531 1,632 1,635

188,602 188,602 188,602 188,602 188,602

1,403 1,403 1,403 1,403 1,403

1,015 1,076 1,063 1,042 1,008

154,637 154,637 154,637 154,637 154,637 154,637

1,400 1,400 1,400 1,400 1,400 1,400

1,248 1,082 1,089 1,112 1,168 1,200

190




Building: 2004 2005 2006 2007

JUNIOR HIGH SCHOOLS (cont.)

Katy (1995)

Square Footage 137,569 137,569 137,569 137,569

Capacity 1,231 1,231 1,231 1,231

Enrollment 1,119 1,104 1,155 1,228

Mayde Creek (1980)

Square Footage 169,172 169,172 169,172 169,172

Capacity 1,414 1,414 1,414 1,414

Enrollment 1,229 1,276 1,355 1,387

McDonald (1991)

Square Footage 137,569 137,569 137,569 137,569

Capacity 1,220 1,220 1,220 1,220

Enrollment 886 1,081 1,213 1,299

McMeans (2000)

Square Footage 154,637 154,637 154,637 154,637

Capacity 1,400 1,400 1,400 1,400

Enrollment 1,125 1,195 1,169 1,209

Memorial Parkway (1982)

Square Footage 148,627 148,627 148,627 148,627

Capacity 1,133 1,133 1,133 1,133

Enrollment 1,086 1,042 1,033 1,022

Morton Ranch (2003)

Square Footage 180,290 180,290 180,290 180,290

Capacity 1,403 1,403 1,403 1,403

Enrollment 1,182 1,216 1,249 1,248

Seven Lakes (2012)

Square Footage

Capacity

Enrollment

West Memorial (1976)

Square Footage 163,906 163,906 163,906 163,906

Capacity 998 998 998 998

Enrollment 746 745 801 775

WoodCreek (2008)

Square Footage

Capacity

Enrollment

ELEMENTARY SCHOOLS

Alexander (1998)

Square Footage 106,134 106,134 106,134 106,134

Capacity 935 935 935 935

Enrollment 1,079 862 993 1,092

Bear Creek (1978)

Square Footage 101,269 101,269 101,269 101,269

Capacity 799 799 799 799

Enrollment 682 655 653 620

191

Exhibit XVII

Page 2 of 6

2008 2009 2010 2011 2012 2013

137,569 137,569 137,569 137,569 137,569 137,569

1,231 1,231 1,231 1,231 1,231 1,231

1,224 1,243 1,218 1,231 1,315 1,333

169,172 169,172 169,172 169,172 169,172 172,386

1,414 1,414 1,414 1,414 1,414 1,414

1,386 1,078 1,118 1,164 1,158 1,095

137,569 137,569 137,569 137,569 137,569 137,569

1,220 1,220 1,220 1,220 1,220 1,220

1,275 871 906 958 943 916

154,637 154,637 154,637 154,637 154,637 154,637

1,400 1,400 1,400 1,400 1,400 1,400

1,218 1,212 1,220 1,168 1,177 1,150

148,627 148,627 148,627 148,627 148,627 148,627

1,133 1,133 1,133 1,133 1,133 1,133

963 975 965 936 925 900

180,290 180,290 180,290 180,290 180,290 180,290

1,403 1,403 1,403 1,403 1,403 1,403

1,316 1,296 1,245 1,254 1,215 1,285

187,748

1,400

1,208

163,906 163,906 163,906 163,906 163,906 169,920

998 998 998 998 998 998

794 777 800 788 780 760

188,602 188,602 188,602 188,602 188,602

1,403 1,403 1,403 1,403 1,403

987 1,303 1,604 1,957 1,357

106,134 106,134 106,134 106,134 106,134 106,134

935 935 935 935 935 935

1,184 1,227 1,202 1,169 1,110 1,132

101,269 101,269 101,269 101,269 101,269 101,269

799 799 799 799 799 799

784 784 753 793 774 776

192




Building: 2004 2005 2006 2007

ELEMENTARY SCHOOLS (cont.)

Cimarron (1980)

Square Footage 93,823 93,823 93,823 93,823

Capacity 861 861 861 861

Enrollment 901 836 822 798

Creech (2000)

Square Footage 111,734 111,734 111,734 111,734

Capacity 935 935 935 935

Enrollment 1,110 882 918 951

Exley (2004)

Square Footage 121,638 121,638 121,638

Capacity 1,030 1,030 1,030


Fielder (1993)

Square Footage 106,117 106,117 106,117 106,117

Capacity 907 907 907 907

Enrollment 715 830 795 915

Franz (2004)

Square Footage 121,638 121,638 121,638

Capacity 1,030 1,030 1,030

Enrollment 637 1,038 1,268

Golbow (1989)

Square Footage 95,709 95,709 95,709 95,709

Capacity 867 867 867 867

Enrollment 1,266 790 858 859

Griffin (2006)

Square Footage 121,638

Capacity 1,030

Enrollment 959

Hayes (1995)

Square Footage 106,117 106,117 106,117 106,117

Capacity 907 907 907 907

Enrollment 1,082 853 901 881

Holland (2008)

Square Footage

Capacity

Enrollment

Hutsell (1978)

Square Footage 115,086 115,086 115,086 115,086

Capacity 983 983 983 983

Enrollment 854 859 867 839

Katy (1965)

Square Footage 86,825 86,825 86,825 86,825

Capacity 643 643 643 643

Enrollment 689 521 564 640

193

Exhibit XVII

Page 3 of 6

2008 2009 2010 2011 2012 2013

93,823 93,823 93,823 93,823 93,823 98,823

861 861 861 861 861 861

747 740 733 693 686 670

111,734 111,734 111,734 111,734 111,734 111,734

935 935 935 935 935 935

942 911 892 930 857 833

121,638 121,638 121,638 121,638 121,638 121,638

1,030 1,030 1,030 1,030 1,030 1,030

1,055 1,115 1,111 1,080 989 989

106,117 106,117 106,117 106,117 106,117 106,117

907 907 907 907 907 907

940 1,001 1,000 1,034 1,090 1,081

121,638 121,638 121,638 121,638 121,638 121,638

1,030 1,030 1,030 1,030 1,030 1,030

1,159 937 936 961 901 978

95,709 95,709 95,709 95,709 95,709 95,709

867 867 867 867 867 867

828 847 769 790 775 770

121,638 121,638 121,638 121,638 121,638 121,638

1,030 1,030 1,030 1,030 1,030 1,030

1,387 1,014 856 1,191 1,339 923

106,117 106,117 106,117 106,117 106,117 106,117

907 907 907 907 907 907

823 837 803 749 708 717

123,843 123,843 123,843 123,843 123,843

1,030 1,030 1,030 1,030 1,030

881 981 1,021 1,051 1,039

115,086 115,086 115,086 115,086 115,086 115,086

983 983 983 983 983 983

811 775 759 781 790 814

86,825 86,825 86,825 86,825 86,825 86,825

643 643 643 643 643 643

638 601 576 563 571 556

194




Building: 2004 2005 2006 2007


Kilpatrick (2003)

Square Footage 121,638 121,638 121,638 121,638

Capacity 1,030 1,030 1,030 1,030

Enrollment 689 1,032 1,557 1,199

King (2001)

Square Footage 121,164 121,164 121,164 121,164

Capacity 1,030 1,030 1,030 1,030

Enrollment 921 820 834 914

Mayde Creek (1983)

Square Footage 95,709 95,709 95,709 95,709

Capacity 868 868 868 868

Enrollment 1,000 970 1,030 1,036

McRoberts (1997)

Square Footage 106,134 106,134 106,134 106,134

Capacity 935 935 935 935

Enrollment 1,128 954 1,071 1,248

Memorial Parkway (1978)

Square Footage 103,658 103,658 103,658 103,658

Capacity 742 742 742 742

Enrollment 571 550 592 701

Morton Ranch (2008)

Square Footage

Capacity

Enrollment

Nottingham Country (1981)

Square Footage 101,427 101,427 101,427 101,427

Capacity 1,053 1,053 1,053 1,053

Enrollment 936 821 786 748

Pattison (1989)

Square Footage 112,156 112,156 112,156 112,156

Capacity 1,052 1,052 1,052 1,052

Enrollment 939 889 862 863

Rhoads (2004)

Square Footage 121,638 121,638 121,638

Capacity 1,030 1,030 1,030

Enrollment 717 867 899

Rylander (2004)

Square Footage 121,638 121,638 121,638

Capacity 1,030 1,030 1,030


Schmalz (2001)

Square Footage 121,164 121,164 121,164 121,164

Capacity 1,030 1,030 1,030 1,030

Enrollment 1,078 977 1,076 1,195

Shafer (2012)

Square Footage

Capacity

Enrollment

195

Exhibit XVII

Page 4 of 6

2008 2009 2010 2011 2012 2013

121,638 121,638 121,638 121,638 121,638 121,638

1,030 1,030 1,030 1,030 1,030 1,030

1,078 1,146 1,240 1,301 1,334 1,087

121,164 121,164 121,164 121,164 121,164 121,164

1,030 1,030 1,030 1,030 1,030 1,030

980 866 885 943 1,087 1,162

95,709 112,913 112,913 112,913 112,913 112,913

868 968 968 968 968 968

769 784 865 843 820 749

106,134 106,134 106,134 106,134 106,134 106,134

935 935 935 935 935 935

951 975 844 887 859 871

103,658 103,658 103,658 103,658 103,658 103,658

742 742 742 742 742 742

756 749 751 773 804 839

123,843 123,843 123,843 123,843 123,843

1,030 1,030 1,030 1,030 1,030

528 614 669 711 763

101,427 101,427 101,427 101,427 101,427 101,427

1,053 1,053 1,053 1,053 1,053 1,053

734 667 681 645 628 621

112,156 112,156 112,156 112,156 112,156 112,156

1,052 1,052 1,052 1,052 1,052 1,052

822 813 826 871 831 821

121,638 121,638 121,638 121,638 121,638 121,638

1,030 1,030 1,030 1,030 1,030 1,030

873 933 1,194 1,147 1,117 1,130

121,638 121,638 121,638 121,638 121,638 121,638

1,030 1,030 1,030 1,030 1,030 1,030

1,139 1,182 1,224 1,230 1,273 1,391

121,164 121,164 121,164 121,164 121,164 121,164

1,030 1,030 1,030 1,030 1,030 1,030

1,194 1,221 1,068 1,146 1,173 1,111

123,966

1,030

865

196




Building: 2004 2005 2006 2007


Stanley (2009)

Square Footage

Capacity

Enrollment

Stephens (2007)

Square Footage

Capacity

Enrollment

Sundown (1982)

Square Footage 95,608 95,608 95,608 95,608

Capacity 868 868 868 868

Enrollment 914 945 777 790

West Memorial (1974)

Square Footage 89,742 89,742 89,742 89,742

Capacity 683 683 683 683

Enrollment 735 610 643 641

Williams (2000)

Square Footage 111,734 111,734 111,734 111,734

Capacity 935 935 935 935

Enrollment 1,060 991 993 987

Wilson (2012)

Square Footage

Capacity

Enrollment

Winborn (1981)

Square Footage 94,596 94,596 94,596 94,596

Capacity 848 848 848 848

Enrollment 849 848 935 906

Wolfe (1968, 2012)

Square Footage 73,219 73,219 73,219 73,219

Capacity 405 405 405 405

Enrollment 504 472 480 411

Wolman (2012)

Square Footage

Capacity

Enrollment

WoodCreek (2007)

Square Footage

Capacity

Enrollment

197

Exhibit XVII

Page 5 of 6

2008 2009 2010 2011 2012 2013

126,897 126,897 126,897 126,897

1,030 1,030 1,030 1,030

897 1,191 1,539 1,240

123,249 123,249 123,249 123,249 123,249 123,249

1,030 1,030 1,030 1,030 1,030 1,030

872 817 827 801 770 770

95,608 112,913 112,913 112,913 112,913 112,913

868 968 968 968 968 968

783 904 886 876 891 833

89,742 89,742 89,742 89,742 89,742 89,742

683 683 683 683 683 683

667 705 757 758 778 754

111,734 111,734 111,734 111,734 111,734 111,734

935 935 935 935 935 935

978 954 912 832 801 778

123,966

1,030

892

94,596 94,596 94,596 94,596 94,596 94,596

848 848 848 848 848 848

890 843 818 831 795 793

73,219 73,219 73,219 73,219 73,219 98,761

405 405 405 405 405 500

407 436 402 410 399 440

123,966

1,030

757

123,249 123,249 123,249 123,249 123,249 123,249

1,030 1,030 1,030 1,030 1,030 1,030

741 1,053 1,082 1,373 1,601 1,255

198




Building: 2004 2005 2006 2007

OTHER INSTRUCTIONAL FACILITIES

Miller Career & Technology Center (1982)

Square Footage 23,147 23,147 23,147 23,147

Capacity 160 160 160 160

Enrollment (1)

Opportunity Awareness Center (1981)

Square Footage 30,712 30,712 30,712 30,712

Capacity 150 150 150 150

Enrollment (2) 107

Portable Buildings (3)

Number Utilized 148 157 183 208

Classrooms Provided 296 314 366 416


(1) Enrollment numbers included in home campus totals

(2) Enrollment numbers included in home campus totals from 2005-2013

(3) Used at schools where enrollment exceeded building capacity

199

Exhibit XVII

Page 6 of 6

2008 2009 2010 2011 2012 2013

23,147 132,951 132,951 132,951 132,951 132,951

160 907 907 907 907 907

30,712 87,015 87,015 87,015 87,015 87,015

150 677 677 677 677 677

219 219 227 241 270 269

349 360 396 404 459 453

200



P.O. Box 159


Documents

Financial Report - Katy ISD Annual Report.pdfSchedule of Expenditures for Computation of Indirect Costs for 2014-2015 ... Annual Financial Report ... includes the Independent Auditors