Luis C. Orozco - Edl · LUIS C OROZCO CERTIFIED PUBLIC ACCOUNTANT 808 Del Oro Lane Pharr, TX 78577 [email protected] (956) 782-5481 Member of AICPA & TSCPA (956) 782-5484 Independent

EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT ANNUAL FINANCIAL REPORT

FOR THE YEAR ENDED AUGUST 31, 2018

Luis C. Orozco Certified Public Accountant

808 Del Oro Lane Pharr, TX 78577

[email protected]

Edinburg Consolidated

Independent School District Edinburg, Texas

Comprehensive Annual Financial Report

For

Fiscal Year Ended August 31, 2018

Prepared by: The Division of Finance

EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT Edinburg, Texas

COMPREHENSIVE ANNUAL FINANCIAL REPORT

AUGUST 31, 2018

TABLE OF CONTENTS Page

Number Exhibit

i

INTRODUCTORY SECTION

Table of Contents ........................................................................................................................ i Letter of Transmittal .................................................................................................................... 1 GFOA Certificate of Achievement .............................................................................................. 6 List of Principal Officials ............................................................................................................ 7 Administrative Organizational Chart. .......................................................................................... 8 Certificate of Board ..................................................................................................................... 9

FINANCIAL SECTION

Independent Auditor’s Report ..................................................................................................... 11 Management’s Discussion and Analysis ..................................................................................... 13

Basic Financial Statements:

Government-wide Financial Statements: Statement of Net Position ........................................................................................... 22 A-1 Statement of Activities ............................................................................................... 23 B-1

Fund Financial Statements: Balance Sheet – Governmental Funds ........................................................................ 24 C-1 Reconciliation of the Balance Sheet – Governmental Funds to the

Government-wide Statement of Net Position .......................................................... 25 C-2 Statement of Revenues, Expenditures, and Changes in Fund

Balances – Governmental Funds .............................................................................. 27 C-3 Reconciliation of the Statement of Revenues, Expenditures, and Changes in

Fund Balances – Governmental Funds to the Government-wide

Statement of Activities ............................................................................................. 28 C-4 Statement of Net Position – Proprietary Funds ........................................................... 29 D-1 Statement of Revenues, Expenses, and Changes in Net

Position – Proprietary Funds .................................................................................... 30 D-2 Statement of Cash Flows – Proprietary Funds ............................................................ 31 D-3 Statement of Fiduciary Net Position – Fiduciary Funds ............................................. 32 E-1 Statement of Changes in Fiduciary Fund Net Position – Fiduciary Funds ................. 33 E-2 Notes to the Financial Statements ............................................................................... 34

Required Supplementary Schedules:

Budgetary Comparison Schedule – General Fund ...................................................... 68 G-1 Schedule of the District’s Proportionate Share of the Net Pension Liability –

Teacher Retirement System of Texas....................................................................... 69 G-2 Schedule of District Contributions – Teacher Retirement System of Texas ............... 70 G-3 Schedule of the District’s Proportionate Share of the Net OPEB Liability ……….... 71 G-4 Schedule of District Contributions to the TRS OPEB Plan………………………….. 72 G-5 Notes to Required Supplementary Information……………………………………… 73



AUGUST 31, 2018


Number Exhibit

ii

FINANCIAL SECTION

Combining Statements: Nonmajor Governmental Funds:

Combining Balance Sheet ........................................................................................... 79 H-1 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ... 85 H-2 Combining Statements of Net Position, Internal Service Funds.................................. 91 H-3 Combining Statements of Revenues, Expenses and Changes in Net Position ............ 93 H-4 Combining Statements of Cash Flows, Internal Service Funds................................... 95 H-5 Combining Statements of Changes in Assets and Liabilities, Agency Funds ............ 97 H-6

Texas Education Agency – Required Schedules:

Schedule of Delinquent Taxes Receivable .................................................................. 99 J-1 Budgetary Comparison Schedule – Child Nutrition Program ..................................... 101 J-2 Budgetary Comparison Schedule – Debt Service Fund .............................................. 102 J-3

STATISTICAL SECTION

Government-Wide Information:

Fund Fund Balances – Governmental Funds – Last Ten Years............................................ 108 L-4 Governmental Fund Revenues by Source – Last Ten Years ....................................... 109 L-5 Governmental Fund Expenditures by Function – Last Ten Years............................... 110 L-6 Governmental Funds Other Sources, Uses and Changes in Fund Balances – Last

Ten Years................................................................................................................

111

L-7 Governmental Fund Expenditures by Function Per Average Daily Attendance –

Last Ten Years........................................................................................................ 112 L-8

Revenue Capacity Information: Assessed and Estimated Actual Value of Property – Last Ten Years ......................... 113 L-9 Property Tax Levies and Collections – Last Ten Years .............................................. 114 L-10 Allocation of Property Tax Rates and Levies – Last Ten Years.................................. 115 L-11 Property Tax Rates – Direct and Overlapping Governments (Per $100

Assessed Valuation) – Last Ten Years ...................................................................

116

L-12 Principal Property Taxpayers – Current Year and Nine Years Prior........................... 117 L-13

Debt Capacity Information:

Outstanding Debt by Type – Last Ten Years .............................................................. 118 L-14 Direct and Overlapping Debt – General Obligation Bonds ......................................... 119 L-15 Computation of Legal Debt – General Obligation Bonds – Last Ten Years ...............

120 L-16

Net Position by Component – Last Ten Years ............................................................ 105 L-1 Governmental Activities Expenses & Program Revenues – Last Ten Years .............. 106 L-2 General Revenues and Changes in Net Position – Last Ten Years ............................. 107 L-3 Information:



AUGUST 31, 2018


Number Exhibit

iii

STATISTICAL SECTION

Debt Capacity Information: (Continued) Ratio of Net General Obligation Bonded Debt to Estimated Actual Value

And Per Average Daily Membership – Last Ten Years ......................................... 121 L-17 Ratio of Annual Debt Service for General Bonded Debt to Total General

Fund Expenditures – Last Ten Years...................................................................... 122 L-18

Demographic and Economic Information Principal Employers – Current Year and Nine Years Prior......................................... 123 L-19 Demographic and Economic Statistics – Last Ten Years............................................ 124 L-20

Operating Information:

Work Force Composition by Employee Classification – Last Ten Years ................... 125 L-21 Schedule of Teacher Information – Last Ten Years .................................................... 126 L-22 Schedule of Attendance and Membership – Last Ten Years....................................... 127 L-23 Operating Statistics – Last Ten Years.......................................................................... 128 L-24 Schedule of Student Information – Last Ten Years..................................................... 129 L-25 Schedule of School Buildings...................................................................................... 130 L-26

FEDERAL AWARDS SECTION

Independent Auditors’ Report on Internal Control Over Financial Reporting

and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................ 132

Independent Auditors’ Report on Compliance for Each Major Federal Program and Report on Internal Control Over Compliance in Accordance with the Uniform Guidance............................................................. 134

Schedule of Findings and Questioned Costs................................................................ 136 Summary Schedule of Prior Audit Findings................................................................ 137 Corrective Action Plan ................................................................................................ 138 Schedule of Expenditures of Federal Awards.............................................................. 139 K-1 Notes to Schedule of Expenditures of Federal Awards ............................................... 141

1

2

3

4

5

Government Finance Officers Association

Certificate of Achievement

for Excellence in Financial Reporting

Presented to

Edinburg Consolidated Independent

School District, Texas

For its Comprehensive Annual

Financial Report

for the Fiscal Year Ended

August 31, 2017

Executive Director/CEO

6


LIST OF PRINCIPAL OFFICIALS

For The Year Ended August 31, 2018

BOARD OF TRUSTEES

Xavier Salinas – President

Carmen Gonzalez – Vice President

Robert Peña, Jr. – Secretary

Miguel “Mike” Farias – Member

Juan “Sonny” Palacios – Member

Oscar Salinas – Member

Ellie Torres – Member

ADMINISTRATORS

Dr. René Gutiérrez, Superintendent

Dr. Rebecca Morrison, Assistant Superintendent for Finance & Operations

Dr. Mario Salinas, Assistant Superintendent for Support Services

Eva Tristan Torres, Assistant Superintendent for Curriculum & Instruction

Eduardo Javier Moreno, Assistant Superintendent for Technology Services

7

SCHOOL BOARD

OF TRUSTEES

Dr. René GutiérrezSuperintendent

Dr. Rebecca MorrisonAssistant Superintendent for

Finance & Operations

Alida Suarez

Director of

Special Education

Arminda LozanoDirector of Career &

Technology Education

Maria C. SantiagoDenise GonzalesCTE Supervisors

Norma GonzalezElizabeth Perez

Distr ict Language Arts Specialists

Azael ArredondoDistr ict Social Studies

Specialist

Elizabeth GarzaYvonne Salinas

Socorro SandovalSp. Ed. Supervisor

Diagnosticians

Speech Pathologists

Physical Therapists

Maritza CardenasAraceli De La CruzNorma Santa Maria Bil. ESL Imm. Serv.

Supervisors

Legal Counsel

Beatriz MoralezElida Silva

Assessment Supv./Data Analyst

Eva TorresAssistant Superintendent for

Curriculum & Instruction

Sylvia Garcia

Director

of Finance

Juan TrevinoEsmeralda Munoz

Food Service Supervisors

Enrique HinojosaAdministrative

Accountant for Fixed Assets

Zelda LopezDirector for

Payroll Srvs/Benefits

Oscar SilvaSenior Accountant

for Finance

Amaro TijerinaCoordinator of

Purchasing

Noe PeñaAdministrative

Systems Analyst/Programmer

Maribel TovarAdministrative

Accountant for Payroll

Dr. Mario H. SalinasAssistant Superintendent for

Support Services

Robert Vina, Jr. Coordinator of

Personnel/Legal Issues

Margarita Oyervides Personnel

Management Supervisor

Belinda JassoApplication and

Data Management Coordinator

Shenshi Billy ChenSoftware Development

Engineer

Romeo CantuPublic

Information Officer

Javier RiosNetwork Programmer

Specialist

Eric DiazMarcelino Salinas

Imelda TrejoNetwork Specialists

Claudia RiosApplication/Programmer

Specialist

Raul HernandezERATE Specialist

Martin TorresDelia Ramirez

Media Communications

Mirella GarzaVanessa ArronaDistr ict Science

Specialists

Ramiro LealHugo Leal

Distr ict Math Specialists

Angelica PerezDirector of Advanced

Academics & Guidance Services

Secondary

Principals

Elementary

Principals

Diana Martinez

Director of

Health Services

Heralio PerezProject Manager

Norma CottrellMaria E. Garza

Cynthia GonzalezDieticians

Ricardo Perez, Jr.

Chief of Police

Visiting Teacher

Staff

Jaime CastilloTransportationInfo. Systems

Specialist

Dora EstradaCoordinator for Textbooks &

Instructional Materials

Edinburg CISD Organizational Chart

2017-2018

Robert Saenz

Director of

Maintenance

& Facilities

Robert EstradaDistr ict Architect

Carlos Lima Distr ict Engineer

Alonzo Barbosa

Director of

Transportation

Jaime Perez

Director for Child

Nutrition Services

Cynthia Saenz

Director of

Bilingual/ESL

Maria EsquivelCollege Read.

Supervisor

Dahlia D. MataTechnology

Integration Specialists

Yvette VelaGrant Development

Specialist

NEW VacancyPayroll Information

Specialist/Programmer

Eduardo MorenoAssistant Superintendent for

Technology Services

Rene SalinasDirector of

Personnel Services

Mary P. ZunigaPEIMS Supervisor

School Psychologists

Sara F. GonzalezAccountant for Finance

Ileana HerreraLicensed

Professional Counselor

(Staff)

Distr ict Lead Custodians

Freddy MartinezNing Zhou

Judith SanchezSystems

Programmers

Javier CamposDelia Orellana

Distr ict Auditors

Superintendent Approval 6/20/2017

Vacancy

Director of

Insurance

Jose Juan HuertaSystems Engineer

NEW VacancySenior Systems

Engineer

Alma MoronPEIMS/Pupil

Accounting Coordinator

Bernardo DiazPrint Shop

Administrator

NEW VacancyComputer

Graphics Specialist

Sonya Y. RodriguezCoordinator of Risk

Management

Sonia E. Cardona Texas ACE

Project Director

Dustin GarzaInsurance Supervisor

Campuses

Barr ientes MS B. L. Garza MS

Harwell MS Longoria MS Memorial MS

South MS Brewster School

Dominga Vela

Area Director of

C & I

Campuses

Avila Betts Canterbury Eisenhower Escandon Esparza Flores-Zapata Guerra Kennedy LBJ Lee Lincoln Ramirez San Carlos Travis

Jorge Botello

Area Director of

C & I

Campuses

Edinburg HSEdinburg North HSJ. Economedes HS

Robert Vela HSEarly College High Schs

Edinburg AcademyVision Academy

Career & Technology

Sandra Avila

Area Director of

C & I

Campuses

Austin Cano-Gonzalez Cavazos Crawford De La Vina Fr. Gonzalez Gorena Hargill Jefferson Magee M. Cristo Trevino Truman Villarreal Zavala

Anthony Garza

Area Director of

C & I

Jesusa Ramirez Inst. Service/

AR Curriculum Assistant

Patricio EscamillaMigrant/Title IV

Coordinator

Sandra Rodriguez Parental

Involvement Supervisor

Melissa Rodriguez

Federal ProgramsEvaluator

Irma Villarreal

Director of

Federal Programs

Carlos Guzman

Area Director for

Student Svcs.

Nelinda Villarreal

Director of Fine

Arts/UIL

Rogelio Garza

Director of

Athletics

Rodolfo JimenezSupervisor of

Social Services

SocialWorkers

Mario LopezMiddle School Athletics / PESupervisor

Sofia HinojosaCoordinator of Student

& Social Services

Leo ReyesPhysical Education

Coordinator

Joey CaceresHigh School Athletics / PE

Supervisor

Delise CavazosLicensed Professional

Counselor(Students)

Mara Lee Moats Staff Development

Supervisor

Dahlia Guzman

Area Director of

Assessment and

Special Programs

Jenise L. FuerteResponse to

Intervention Specialist (RTI)

Justin EliasSystems

Programmer

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9

FINANCIAL SECTION

10

LUIS C OROZCO CERTIFIED PUBLIC ACCOUNTANT


[email protected]

(956) 782-5481 Member of AICPA & TSCPA (956) 782-5484

Independent Auditor’s Report To Board of Trustees and Dr. Rene Gutierrez, Superintendent Edinburg Consolidated Independent School District 411 N. 8th Avenue Edinburg, Texas 78541 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 Edinburg CISD, as of and for the year ended August 31, 2018, and the related notes to the financial statements, which collectively comprise Edinburg CISD’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Edinburg CISD’s management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of Edinburg CISD, as of August , 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.

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[email protected]


Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, and pension information as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Edinburg CISD’s basic financial statements. The introductory section, combining statements, required TEA Schedules, statistical section, and the Schedule of Expenditures of Federal Awards, as required by the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining statements, required by TEA Schedules, and the Schedule of Expenditures of Federal Awards are the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining statements, required by TEA Schedules, and the Schedule of Expenditures of Federal Awards is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections as identified in the table of contents 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 it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 17, 2018 on our consideration of Edinburg Consolidated Independent School District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Edinburg Consolidated Independent School District’s internal control over financial reporting and compliance. Luis C Orozco, CPA Pharr, Texas December 17, 2018

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MANAGEMENT’S DISCUSSION AND ANALYSIS

This section of Edinburg Consolidated Independent School District’s annual financial report presents our discussion and analysis of the District’s financial performance during the fiscal year ended August 31, 2018. Please read it in conjunction with the District’s financial statements, which follow this section. FINANCIAL HIGHLIGHTS

The District’s total net position is $8,405,482 at August 31, 2018. This amounted to a decrease in net position of $167,016,305 from last year’s balance of $175,421,787. This decrease is attributed to a prior period adjustment needed to implement GASB No. 75, in the amount of $220,982,526.

During the year, the District’s expenses were $278,802,756, which are lower than the $332,768,978 generated in taxes and other revenues for governmental activities.

The general fund reported a fund balance this year of $70,920,036, with $69,656,564 of this being reported as unassigned fund balance.

OVERVIEW OF THE FINANCIAL STATEMENTS This annual report consists of three parts—management’s discussion and analysis (this section), the basic financial statements, and required supplementary information. The basic financial statements include two kinds of statements that present different views of the District:

The first two statements are government-wide financial statements that provide both long-term and short-term information about the District’s overall financial status.

The remaining statements are fund financial statements that focus on individual parts of the government, reporting the District’s operations in more detail than the government-wide statements.

The governmental funds statements tell how general government services were financed in the short term as well as what remains for future spending.

Proprietary fund statements offer short- and long-term financial information about the activities the government operates like businesses, such as food service.

Fiduciary fund statements provide information about the financial relationships in which the District acts solely as a trustee or agent for the benefit of others, to whom the resources in question belong.

The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the information in the financial statements. Figure A-1 shows how the required parts of this annual report are arranged and related to one another.

Figure A-1, Required Components of the District’s Annual Financial Report

13

Figure A-2 summarizes the major features of the District’s financial statements, including the portion of the District government they cover and the types of information they contain. The remainder of this overview section of management’s discussion and analysis explains the structure and contents of each of the statements. Government-wide Statements The government-wide statements report information about the District as a whole using accounting methods similar to those used by private-sector companies. The statement of net assets includes all of the government’s assets and liabilities. All of the current year’s revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid. The two government-wide statements report the District’s net position and how they have changed. Net position—the difference between the District’s assets, deferred inflows/outflows, and liabilities—is one way to measure the District’s financial health or position.

Over time, increases or decreases in the District’s net position are an indicator of whether its financial health is improving or deteriorating, respectively.

To assess the overall health of the District, one needs to consider additional nonfinancial factors such as changes in the District’s tax base

The government-wide financial statements of the District include the Governmental activities. Most of the District’s basic services are included here, such as instruction, extracurricular activities, curriculum and staff development, health services and general administration. Property taxes and grants finance most of these activities. Fund Financial Statements The fund financial statements provide more detailed information about the District’s most significant funds—not the District as a whole. Funds are accounting devices that the District uses to keep track of specific sources of funding and spending for particular purposes.

Some funds are required by State law and by bond covenants.

The Board of Trustees establishes other funds to control and manage money for particular purposes or to show that it is properly using certain taxes and grants.

The District has the following kinds of funds:

Governmental funds—Most of the District’s basic services are included in governmental funds, which focus on (1) how cash and other financial assets that can readily be converted to cash flow in and out and (2) the balances left at year-end that are available for spending. Consequently, the governmental fund statements provide a detailed short-term view that helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the District’s programs. Because this information does not encompass the additional long-term focus of the government-wide statements, we provide additional information at the bottom of the governmental funds statement, or on the subsequent page, that explain the relationship (or differences) between them.

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

Scope

Entire Agency’s government

(except fiduciary funds) and the Agency's component units

The activities of the district that are not proprietary or fiduciary

Activities the district operates similar to private businesses: self insurance

Instances in which the district is the trustee or agent for someone else's resources

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

Statement of activities Statement of revenues, expenditures & changes in fund balances

Statement of revenues, expenses and changes in fund net position

Statement of changes in fiduciary 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



Type of asset/liability information

All assets and liabilities, both financial and capital, short-term and long-term

Only assets expected to be used up and liabilities that come due during the year or soon thereafter; no capital assets included

All assets and liabilities, both financial and capital, and short-term and long- term

All assets and liabilities, both short-term and long- term; the Agency's funds do not currently contain capital assets, although they can

Type of inflow/outflow information

All revenues and 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



Fund Statements

Required financial statements

Figure A-2. Major Features of the District's Government-wide and Fund Financial Statements

14

Proprietary funds—Services for which the District charges customers a fee are generally reported in proprietary funds. Proprietary funds, like the government-wide statements, provide both long-term and short-term financial information.

We use internal service funds to report activities that provide supplies and services for the District’s other programs and activities.

Fiduciary funds—The District is the trustee, or fiduciary, for certain funds. It is also responsible for other assets that—because of a trust arrangement—can be used only for the trust beneficiaries. 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 net position and a statement of changes in fiduciary net position. We exclude these activities from the District’s government-wide financial statements because the District cannot use these assets to finance its operations.

FINANCIAL ANALYSIS OF THE DISTRICT AS A WHOLE Net position. The District’s combined net position decreased by $167,016,305, between fiscal years 2017 and 2018 to $8,405,482 as of August 31, 2018. (See Table A-1).

TotalPercentage

2018 2017 2018 2017 2018 2017 ChangeCurrent and Other Assets 135,081,204$ 128,091,182$ -$ -$ 135,081,204$ 128,091,182$ 5.46%Capital and Non-Current Assets 272,654,095 279,897,596 - - 272,654,095 279,897,596$ -2.59%

Total Assets 407,735,299 407,988,778 - - 407,735,299 407,988,778 -0.06%

Deferred Outflows of Resources 30,110,264 37,467,543 - - 30,110,264 37,467,543 -19.64%

Current Liabilities 26,108,185 37,201,551 - - 26,108,185 37,201,551 -29.82%Long Term Liabilities 338,805,849 228,005,904 - - 338,805,849 228,005,904 48.60%

Total Liabilities 364,914,034 265,207,455 - - 364,914,034 265,207,455 37.60%

Deferred Inflows of Resources 64,526,046 4,827,079 - - 64,526,046 4,827,079 1236.75%

Net Position:

Net Investment in Capital Assets 136,040,094 133,125,991 - - 136,040,094 133,125,991 2.19%Restricted 16,006,942 17,599,024 - - 16,006,942 17,599,024 -9.05%Unrestricted (143,641,554) 24,696,772 - - (143,641,554) 24,696,772 -681.62%

Total Net Position 8,405,482$ 175,421,787$ -$ -$ 8,405,482$ 175,421,787$ -95.21%

Table A-1Edinburg Consolidated Independent School District

Net Position

ActivitiesGovernmental Business-Type

Activities Total

Net position of the District’s governmental activities decreased 95.21% to $8,405,482. However, most of the total net position is either invested in capital assets or is restricted as to the purposes they can be used for. Unrestricted net position amounted to -$143,641,554 at the end of this fiscal year. The unrestricted balance decreased by 681.62% from the prior year. The decrease in the unrestricted balance was mainly due to the prior period adjustments needed to implement GASB No. 75 and the impact of reporting the liability for other post-employment benefits.

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Governmental Activities

Changes in net assets. The District’s total revenues were $333,383,361 for fiscal year ended August 31, 2018. A significant portion of revenue is derived from the following: 55.6% comes from state –aid formula grants, 16.5% of the District’s revenue comes from operating grants, and 22.5% is related to property taxes collected, Less than 6% of total revenue is composed of investment earnings received, charges for services and miscellaneous revenue. (See Figure A-3).

Governmental Activities

The property tax rate was 1.2398% in fiscal year 2017-18. The Maintenance and Operations tax rate was 1.17% and the Debt Service tax rate was 0.0698%. The property tax rate will remain constant in fiscal year 2018-19 as 1.17% for Maintenance and Operations and the Debt Service tax rate at 0.0698%.

The total cost of all programs and services was $279,417,138 of which 53.3% of these costs are for instruction, 9.29% is for facilities maintenance and operations, and 7.5% for food services to students which represent the major function percentages for fiscal year ended August 31, 2018. (See Figure A-4)

Governmental Activities – Changes in the District’s Net Position Table A-2 Continues in next page.

Charges for Services, 0.7%

Operating Grants, 16.5%

Property Taxes, 22.5%

State Aid, 55.6%

Investment, 0.6%

Other, 4.1%

FIGURE A‐3 ECISD SOURCES OF REVENUE FOR FISCAL YEAR 2018

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2018 2017 2018 2017 2018 2017Program Revenues:

Charges for Services 2,412,631$ 1,009,591$ -$ -$ 2,412,631$ 1,009,591$ Operating Grants & Contributions 51,660,392 65,552,265 - - 51,660,392 65,552,265 Capital Grants & Contributions - - - - - -

General Revenues:Property Taxes 75,034,298 71,010,870 - - 75,034,298 71,010,870 State Aid-Formula 185,291,985 223,268,041 - - 185,291,985 223,268,041 Grants and Contributions, Unrestricted 3,293,879 6,889,618 - - 3,293,879 6,889,618 Investment Earnings 2,044,952 1,090,037 - - 2,044,952 1,090,037 Other 13,645,224 2,143,312 - - 13,645,224 2,143,312

Total Revenues 333,383,361$ 370,963,734$ -$ -$ 333,383,361$ 370,963,734$

Total Expenses (By-Function)Instruction 148,893,621$ 211,053,219$ -$ -$ 148,893,621$ 211,053,219$ Instructional Resources and Media Services 7,008,819 11,008,067 - - 7,008,819 11,008,067 Curriculum and Staff Development 2,903,874 3,652,465 - - 2,903,874 3,652,465 Instructional Leadership 3,524,954 4,886,065 - - 3,524,954 4,886,065 School Leadership 13,146,963 16,082,373 - - 13,146,963 16,082,373 Guidance, Counseling and Evaluation Services 9,664,445 13,856,167 - - 9,664,445 13,856,167 Social Work Services 1,372,957 2,839,128 - - 1,372,957 2,839,128 Health Services 2,768,578 4,769,518 - - 2,768,578 4,769,518 Student (Pupil) Transportation 10,635,297 13,837,917 - - 10,635,297 13,837,917 Food Services 21,057,110 27,470,077 - - 21,057,110 27,470,077 Extracurricular Activities 14,648,026 15,796,255 - - 14,648,026 15,796,255 General Administration 5,303,132 13,447,834 - - 5,303,132 13,447,834 Facilities Maintenance and Operations 25,971,596 32,612,516 - - 25,971,596 32,612,516 Security and Monitoring Services 4,077,370 5,910,377 - - 4,077,370 5,910,377 Data Processing Services 1,271,027 580,135 - - 1,271,027 580,135 Community Services 774,324 933,370 - - 774,324 933,370 Debt Service - Interest on Long Term Debt 5,405,737 5,873,369 - - 5,405,737 5,873,369 Debt Service - Bond Issuance Cost and Fees 8,500 10,000 - - 8,500 10,000 Payments to Juvenile Justice Alternative Ed. Prg. 61,633 50,423 - - 61,633 50,423 Other Intergovernmental Charges 919,175 880,465 - - 919,175 880,465

Total Expenses 279,417,138$ 385,549,740$ -$ -$ 279,417,138$ 385,549,740$

Increase (Decrease in Net Position 53,966,223 (14,586,006) - - 53,966,223 (14,586,006)

Net Position Beginning 175,421,785 190,007,793 - - 175,421,785 190,007,793 Prior Period Adjustment (220,982,526) - - - (220,982,526) - Net Position - Beginning, as Restated (45,560,741) 190,007,793 - - (45,560,741) 190,007,793 Net Position Ending 8,405,482$ 175,421,787$ -$ -$ 8,405,482$ 175,421,787$

Activities Activities Total


Change in Net Position

Governmental Business-Type

17

Governmental Activities – Continued

The cost of all governmental activities this year was $279,417,138.

Some of the cost were paid by those who directly benefited from the programs in the amount of $2,412,631.

Other cost were paid by Operating Grants, Capital Grants and Contributions of $51,660,392.

However, the amount that our taxpayers paid for these activities through property taxes was $75,034,298. Table A-3 presents the cost of each of the District’s largest functions as well as each function’s net cost (total cost less fees generated by the activities and intergovernmental aid). The net cost reflects what was funded by state revenues as well as local tax dollars.

FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS Governmental Funds The focus of the District’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. As of August 31, 2018, the District’s governmental funds reported ending fund balances of $86,571,616. Of the current ending fund balances, the general fund reported an ending fund balance of $70,920,036 while the rest of the funds amounted to a fund balance of $15,651,580. The following categories are recorded and primary uses noted in accordance with implementing GASB No. 54.

$2,221,239 is recorded as non-spendable for inventories.

$5,360,003 is recorded as restricted, of which -$952,236 is restricted for Federal or State Programs, $6,312185 is in Retirement of Long-Term Debt.

$9,333,809 is recorded as committed fund balance $8,908,967 of this is committed for construction and

$424,842 other committed fund balance.

$69,956,564 is recorded as unassigned and is available for spending at the government’s discretion. Revenues from governmental fund types totaled $388,335,658 as of August 31, 2018. This is an increase of $20,279,326 from August 31, 2017’s total of $368,056,332.

2018 2017 % Change 2018 2017 % Change

Instruction 148,893,621$ 211,053,219$ -29.45% 128,069,070$ 179,867,661$ -28.80%School Leadership 13,146,963 16,082,373 -18.25% 12,379,897 14,789,569 -16.29%Food Services 21,057,110 27,470,077 -23.35% (2,473,848) 3,508,402 -170.51%Extracurricular Activities 14,648,026 15,796,255 -7.27% 14,399,798 15,408,139 -6.54%Facilities Maintenance / Operations 25,971,596 32,612,516 -20.36% 25,918,345 31,842,480 -18.60%

Table A-3Net Cost of District's Major Governmental Activities

Costs Net Costs

18

General Fund Budgetary Highlights

Over the course of the year, the District revised its budget five times. Even with these adjustments, actual expenditures were $11,715,998 below final budget amounts. The most significant positive variance resulted from staffing. Staffing is budgeted for full employment throughout the full year. Budget amounts for vacant positions throughout the year are not eligible to budget revisions.

Instructional expenses were budgeted at a total of $193,191,498 and actual expenditures totaled$186,021,975. This created the single most significant expenditure variance in the budget, which totaled asavings of $7,169,523 of expected expenses.

On the other hand, resources available were budgeted at a total of $345,963,992 and actual revenues totaled $344,520,031, netting a difference of $1,443,961 less than what was expected. As noted earlier, this variance was caused by a decrease of students in average daily attendance and decrease in E-Rate.

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets

At the end of 2018, the District had invested $272,654,096 in a broad range of capital assets, including land, equipment, buildings, and vehicles. (See Table A-4.) This amount represents a net decrease of $7,243,502 (including additions, deductions and depreciation).

The District’s fiscal year 2019 capital budget projects spending another $1.2 million in capital projects. More detailed information about the District’s capital assets is presented in the notes to the financial statements (Note E).

Long Term Debt

At year-end the District had $116,030,000 million in bonds and $6,995,000 notes outstanding as shown in Table A-5. More detailed information about the District’s debt is presented in the notes to the financial statements (Notes IV.F. & IV.G.).

District’s Long Term Debt – Table A-5 continues on next page.

2018 2017 2018 2017 2018 2017

Land 19,840,434$ 19,840,434$ -$ -$ 19,840,434$ 19,840,434$ Construction in Progress 8,107,858 10,774,056 - - 8,107,858 10,774,056 Buildings and Improvements 463,193,222 451,380,613 - - 463,193,222 451,380,613 Vehicles 24,822,398 23,609,053 - - 24,822,398 23,609,053 Furniture and Equipment 48,708,764 47,370,840 - - 48,708,764 47,370,840

- - Totals at Historical Cost 564,672,676 552,974,996 - - 564,672,676 552,974,996

Accumulated Depreciation (292,018,580) (273,077,398) - - (292,018,580) (273,077,398)

Net Capital Assets 272,654,096$ 279,897,598$ -$ -$ 272,654,096$ 279,897,598$



District's Capital Assets


Bond Ratings

The District’s bonds presently carry “AAA” ratings with underlying ratings as follows: Fitch

“AAA”

19

District’s Long-Term Debt – Continued

ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATE

Appraised value used for the 2019 budget preparation is $6.29 billion, or 8.65% increase from 2018. New construction for 2018 is up from $417.01 million in 2017 to $463.49.

General operating fund spending per student decreases in the 2019 budget from $10,791 to $10,088. This is a 6.51% decrease.

These indicators were taken into account when adopting the general fund budget for 2019. Amounts available for appropriation in the general fund budget are $338.52 million, a decrease of 2.15% over the final 2018 budget of $345.96 million. Expenditures for 2019 budget are budgeted at $344.00 million, which is a .55% decrease over the final 2018 budget of $345.89 million. 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 and to demonstrate the District’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the ECISD’s Finance Department, 411 N. 8th Ave., Edinburg, Texas 78541.

2018 2017 2018 2017 2018 2017

Bonds Payable 116,030,000$ 124,405,000$ -$ -$ 116,030,000$ 124,405,000$ Notes Payable 6,995,000 8,940,000 - - 6,995,000 8,940,000 Compensated Absences 1,784,294 1,790,573 - - 1,784,294 1,790,573 Premium on Bonds 18,363,138 19,487,678 - - 18,363,138 19,487,678 Net Pension Liability 69,609,302 83,702,653 - - 69,609,302 83,702,653 Net OPEB Liability 126,024,116 222,489,211 - - 126,024,116 222,489,211

Total Long Term Debt 338,805,850$ 460,815,115$ -$ -$ 338,805,850$ 460,815,115$



District's Long Term Debt


20

BASIC FINANCIAL STATEMENTS

21

EXHIBIT A-1EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT

STATEMENT OF NET POSITIONAUGUST 31, 2018

Control

Data

Codes

Governmental

Activities

Primary Government

ASSETS

19,117,926 Cash and Cash Equivalents $111092,693,833 Current Investments11208,382,989 Property Taxes - Delinquent1220(251,489)Allowance for Uncollectible Taxes1230

12,405,904 Due from Other Governments1240146,667 Accrued Interest1250

380 Due from Fiduciary Funds1267104,091 Other Receivables, Net1290

2,399,438 Inventories130081,466 Prepayments1410

Capital Assets:

22,099,831 Land1510222,794,907 Buildings, Net152011,220,138 Furniture and Equipment, Net15308,431,361 Other Capital Assets, Net15408,107,858 Construction in Progress1580

Total Assets1000 407,735,299

DEFERRED OUTFLOWS OF RESOURCES

6,564,711 Deferred Charge for Refunding170121,471,000 Deferred Outflow Related to TRS Pension17052,074,553 Deferred Outflow Related to TRS OPEB1706

Total Deferred Outflows of Resources1700 30,110,264

LIABILITIES

6,710,394 Accounts Payable21102,240,053 Payroll Deductions and Withholdings2150

13,562,818 Accrued Wages Payable216018,291 Due to Student Groups2190

3,576,629 Unearned Revenue2300Noncurrent Liabilities:

11,879,29 4 Due Within One Year2501131,293,138 Due in More Than One Year250269,609,302 Net Pension Liability (District's Share)2540

126,024,116 Net OPEB Liability (District's Share)2545

Total Liabilities2000 364,914,03 5

DEFERRED INFLOWS OF RESOURCES

11,809,921 Deferred Resource Inflow Related to TRS Pension260552,716,125 Deferred Resource Inflow Related to TRS OPEB2606

Total Deferred Inflows of Resources2600 64,526,046

NET POSITION

136,040,094 Net Investment in Capital Assets3200(957,767)Restricted for Federal and State Programs3820

3,605,650 Restricted for Debt Service385013,359,059 Restricted for Capital Projects3860

(143,641,554)Unrestricted3900

Total Net Position3000 8,405,48 2$

The notes to the financial statements are an integral part of this statement.

22

EXHIBIT B-1EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT

STATEMENT OF ACTIVITIESFOR THE YEAR ENDED AUGUST 31, 2018

Net (Expense)

Revenue and

Changes in Net

PositionProgram RevenuesData

Control

Codes

1 3 4 6

Operating

Grants and

Contributions

Charges for

ServicesExpenses

Governmental

Activities

Primary Gov.

Primary Government:

GOVERNMENTAL ACTIVITIES:279,317 148,893,621 20,545,234 (128,069,070)Instruction $ $ $ $11

84,323 7,008,819 151,174 (6,773,322)Instructional Resources and Media Services12

- 2,903,874 776,174 (2,127,700)Curriculum and Instructional Staff Development13

- 3,524,954 1,148,679 (2,376,275)Instructional Leadership21

21,080 13,146,963 745,986 (12,379,897)School Leadership23

- 9,664,445 2,842,564 (6,821,881)Guidance, Counseling and Evaluation Services31

21,080 1,372,957 1,019,257 (332,620)Social Work Services32

- 2,768,578 74,171 (2,694,407)Health Services33

21,080 10,635,297 3,054 (10,611,163)Student (Pupil) Transportation34

451,000 21,057,110 23,079,958 2,473,848 Food Services35

21,080 14,648,026 227,148 (14,399,798)Extracurricular Activities36

- 5,303,132 7,538 (5,295,594)General Administration41

42,161 25,971,596 11,090 (25,918,345)Facilities Maintenance and Operations51

- 4,077,370 1,062 (4,076,308)Security and Monitoring Services52

- 1,271,027 - (1,271,027)Data Processing Services53

1,471,510 774,324 1,027,303 1,724,489 Community Services61

- 5,405,737 - (5,405,737)Debt Service - Interest on Long-Term Debt72

- 8,500 - (8,500)Debt Service - Bond Issuance Cost and Fees73

- 61,633 - (61,633)Payments to Juvenile Justice Alternative Ed. Prg.95

- 919,175 - (919,175)Other Intergovernmental Charges99

[TP] TOTAL PRIMARY GOVERNMENT: 279,417,138 2,412,631 51,660,392 (225,344,115)$ $ $

DataControlCodes General Revenues:

Taxes:70,670,559 Property Taxes, Levied for General PurposesMT

4,363,739 Property Taxes, Levied for Debt ServiceDT

190,671,757 Grants and Contributions not RestrictedGC

2,044,952 Investment EarningsIE

11,531,894 Miscellaneous Local and Intermediate RevenueMI

27,437 Transfers In (Out):FR

279,310,338 Total General Revenues & TransfersTR

Net Position - Beginning


Net Position--Ending

Prior Period Adjustment

CN

NB

NE

PA

53,966,223

175,421,785 (220,982,526)

8,405,482 $


23

EXHIBIT C-1EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT

BALANCE SHEET

GOVERNMENTAL FUNDS

AUGUST 31, 2018

Control

Data

Codes

General

Fund Funds

Other

Funds

Governmental

Total10

ASSETS87,267 18,821,664 18,908,931 Cash and Cash Equivalents $ $ $1110

17,070,816 62,939,729 80,010,545 Investments - Current1120

613,008 7,769,981 8,382,989 Property Taxes - Delinquent1220

(18,390)(233,099) (251,489)Allowance for Uncollectible Taxes1230

3,940,634 8,465,270 12,405,904 Due from Other Governments1240

- 146,667 146,667 Accrued Interest1250

1,333,219 4,046,438 5,379,657 Due from Other Funds1260

70,095 21,237 91,332 Other Receivables1290

- 2,354,447 2,354,447 Inventories1300

Total Assets1000 104,332,334 23,096,649 127,428,983 $ $ $

LIABILITIES1,139,826 3,962,299 5,102,124 Accounts Payable $ $ $2110

- 2,240,053 2,240,053 Payroll Deductions and Withholdings Payable2150

1,276,492 12,286,003 13,562,495 Accrued Wages Payable2160

3,749,816 4,476,458 8,226,274 Due to Other Funds2170

18,291 - 18,291 Due to Student Groups2190

666,026 2,910,603 3,576,629 Unearned Revenue2300

Total Liabilities2000 25,875,416 6,850,451 32,725,866

DEFERRED INFLOWS OF RESOURCES594,618 7,536,882 8,131,500 Unavailable Revenue - Property Taxes2601

Total Deferred Inflows of Resources2600 7,536,882 594,618 8,131,500

FUND BALANCESNonspendable Fund Balance:

- 2,221,239 2,221,239 Inventories3410

Restricted Fund Balance:5,531 (957,767) (952,236) Federal or State Funds Grant Restriction3450

54 - 54 Capital Acquisition and Contractural Obligation3470

6,312,185 - 6,312,185 Retirement of Long-Term Debt3480

Committed Fund Balance:8,908,967 - 8,908,967 Construction3510

424,842 - 424,842 Other Committed Fund Balance3545

- 69,656,564 69,656,564 Unassigned Fund Balance3600

Total Fund Balances3000 70,920,036 15,651,580 86,571,616

Total Liabilities, Deferred Inflows & Fund Balances4000 104,332,334 23,096,649 127,428,983 $ $ $


24


RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE

STATEMENT OF NET POSITION

AUGUST 31, 2018

86,571,616 $Total Fund Balances - Governmental Funds

14,269,903 1 The District uses internal service funds to charge the costs of certain activities, such as self-insurance and printing, to appropriate functions in other funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position. The net effect of this consolidation is to increase net position.

125,274,346 2 Capital assets used in governmental activities are not financial resources and therefore are not reported in governmental funds. At the beginning of the year, the cost of these assets was $552,974,996 and the accumulated depreciation was ($273,077,399). In addition, long-term liabilities, including bonds payable and premiums on bonds, are not due and payable in the current period, and, therefore are not reported as liabilities in the funds. The net effect of including the beginning balances for capital assets (net of depreciation) and long-term debt in the governmental activities is to decrease net position. Note: Beginning Balances related to TRS are NOT included in this amount.

23,148,500 3 Current year capital outlays and long-term debt principal payments are expenditures in the fund financial statements, but they should be shown as increases in capital assets and reductions in long-term debt in the government-wide financial statements. The net effect of including the 2018 capital outlays and debt principal payments is to decrease net position.

(59,948,223)4 Included in the items related to debt is the recognition of the District's proportionate share of the net pension liability required by GASB 68. At the beginning of the year, the net position related to TRS was a Deferred Resource Outflow in the amount of $21,471,000, a Deferred Resource Inflow in the amount of $11,809,921 and a net pension liability in the amount of $69,609,302. Changes from the current year reporting of the TRS plan resulted in an increase in net position in the amount of $1,975,812. The combination of the beginning of the year amounts and the changes during the year resulted in a difference between the ending fund balance and the ending net position in the amount of (59,948,223) .

(176,665,688)5 The District implemented GASB 75 reporting requirements for the OPEB benefit plan through TRS. Since this is the first year of implementation, a prior period adjustment had to be made in the amount of ($220,982,526). The District's share of the TRS plan resulted in a net OPEB liability of $126,024,116, a deferred outflow of $2,074,553 and a deferred inflow of $52,716,125. This resulted in a difference between the ending fund balance and the ending net position of (176,665,688).

(18,941,181)6 The 2018 depreciation expense increases accumulated depreciation. The net effect of the current year's depreciation is to decrease net position.

14,696,209 7 Various other reclassifications and eliminations are necessary to convert from the modified accrual basis of accounting to accrual basis of accounting. These include recognizing unavailable revenue from property taxes as revenue, reclassifying the proceeds of bond sales as an increase in bonds payable, and recognizing the liabilities associated with maturing long-term debt and interest. The net effect of these reclassifications and recognitions is to increase net position.


25


RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE

STATEMENT OF NET POSITION

AUGUST 31, 2018

8,405,482 $19 Net Position of Governmental Activities


26


STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS


Control

Data

Codes

10

General

Fund Funds

Other

Funds

Governmental

Total

REVENUES:7,155,271 79,525,078 86,680,349 Total Local and Intermediate Sources $ $ $5700

8,460,158 237,609,905 246,070,063 State Program Revenues5800

27,585,817 27,999,429 55,585,246 Federal Program Revenues5900

Total Revenues5020 345,134,412 43,201,246 388,335,658

EXPENDITURES:Current:

20,492,371 186,453,126 206,945,497 Instruction0011

151,174 8,461,922 8,613,096 Instructional Resources and Media Services0012

776,175 2,600,664 3,376,839 Curriculum and Instructional Staff Development0013

1,148,680 3,923,103 5,071,783 Instructional Leadership0021

745,986 15,760,028 16,506,014 School Leadership0023

2,842,564 11,448,827 14,291,391 Guidance, Counseling and Evaluation Services0031

1,019,257 907,493 1,926,750 Social Work Services0032

74,171 3,897,465 3,971,636 Health Services0033

3,054 13,623,445 13,626,499 Student (Pupil) Transportation0034

10,321 25,606,572 25,616,893 Food Services0035

227,148 13,627,408 13,854,556 Extracurricular Activities0036

7,538 6,819,227 6,826,765 General Administration0041

88,269 29,734,185 29,822,454 Facilities Maintenance and Operations0051

1,062 5,843,588 5,844,650 Security and Monitoring Services0052

- 1,304,492 1,304,492 Data Processing Services0053

1,027,303 31,197 1,058,500 Community Services0061

Debt Service:8,375,000 1,945,000 10,320,000 Principal on Long-Term Debt0071

5,890,300 294,466 6,184,766 Interest on Long-Term Debt0072

7,250 1,250 8,500 Bond Issuance Cost and Fees0073

Capital Outlay:9,547,257 84,522 9,631,779 Facilities Acquisition and Construction0081

Intergovernmental: - 61,633 61,633 Payments to Juvenile Justice Alternative Ed. Prg.0095

- 919,174 919,174 Other Intergovernmental Charges0099

Total Expenditures6030 333,348,787 52,434,880 385,783,667

1100 Excess (Deficiency) of Revenues Over (Under) Expenditures

11,785,625 (9,233,634) 2,551,991

OTHER FINANCING SOURCES (USES): - 27,437 27,437 Sale of Real and Personal Property7912

7,334,574 50,696,714 58,031,288 Transfers In7915

(976)(58,255,312) (58,256,288)Transfers Out (Use)8911

Total Other Financing Sources (Uses) 7080 (7,531,161) 7,333,598 (197,563)

1200 Net Change in Fund Balances 4,254,464 (1,900,036) 2,354,428

0100 Fund Balance - September 1 (Beginning) 66,665,572 17,551,617 84,217,189

3000 Fund Balance - August 31 (Ending) $ 70,920,036 $ 15,651,580 $ 86,571,616


27


RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES


(2,354,428)$Total Net Change in Fund Balances - Governmental Funds

(5,616,204)The District uses internal service funds to charge the costs of certain activities, such as self-insurance and printing, to appropriate functions in other funds. The net income (loss) of internal service funds are reported with governmental activities. The net effect of this consolidation is to increase net position.

(23,148,500)Current year capital outlays and long-term debt principal payments are expenditures in the fund financial statements, but they should be shown as increases in capital assets and reductions in long-term debt in the government-wide financial statements. The net effect of removing the 2018 capital outlays and debt principal payments is to decrease net position.

18,941,181 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 position.

552,755 Various other reclassifications and eliminations are necessary to convert from the modified accrual basis of accounting to accrual basis of accounting. These include recognizing unavailable revenue from property taxes as revenue, adjusting current year revenue to show the revenue earned from the current year's tax levy, reclassifying the proceeds of bond sales, and recognizing the liabilities associated with maturing long-term debt and interest. The net effect of these reclassifications and recognitions is to decrease net position.

1,975,812 Current year changes due to GASB 68 increased revenues in the amount of $3,047,621 but also increased expenditures in the amount of $1,071,809. The net effect on the change in the ending net position was an increase in the amount of $1,975,812.

(44,316,838)The implementation of GASB 75 to report the District's share of the TRS OPEB plan resulted in a prior period adjustment in the amount of ($220,982,526). The changes in the ending net position as a result of reporting the OPEB items was a decrease in the change in net postion in the amount of $44,316,838.

(53,966,222)$ Change in Net Position of Governmental Activities


28

EXHIBIT D-1EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT

STATEMENT OF NET POSITIONPROPRIETARY FUNDS

AUGUST 31, 2018

Total

Internal

Service Funds

Governmental

Activities -

ASSETSCurrent Assets:

208,995 Cash and Cash Equivalents $

12,683,288 Investments - Current

2,846,997 Due from Other Funds

12,759 Other Receivables

44,991 Inventories81,466 Prepayments

15,878,496 Total Current Assets

Noncurrent Assets:

Capital Assets:

(1,580)Depreciation on Furniture and Equipment

1,580 District Defined Capital Assets

- Total Noncurrent Assets

Total Assets 15,878,496

LIABILITIESCurrent Liabilities:

1,608,270 Accounts Payable

323 Accrued Wages Payable

Total Liabilities 1,608,593

NET POSITION

14,269,903 Unrestricted Net Position

Total Net Position 14,269,903 $


29


STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION

PROPRIETARY FUNDS


Total

Internal

Service Funds

Governmental

Activities -

OPERATING REVENUES:

35,601,895 Local and Intermediate Sources $

Total Operating Revenues 35,601,895

OPERATING EXPENSES:

208,694 Payroll Costs

394,613 Professional and Contracted Services

222,445 Supplies and Materials

29,384,939 Other Operating Costs

Total Operating Expenses 30,210,691

Income Before Transfers 5,391,204

225,000 Transfer In


Total Net Position - September 1 (Beginning)

Total Net Position - August 31 (Ending)

5,616,204

8,653,699

$ 14,269,903


30


STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED AUGUST 31, 2018PROPRIETARY FUNDS

Total

Internal

Service Funds

Governmental

Activities -

Cash Flows from Operating Activities:

29,300,739 Cash Received from Assessments - Other Funds $

(208,694)Cash Payments to Employees for Services(29,650,528)Cash Payments for Suppliers

(81,466)Cash Payments for Other Operating Expenses

(639,949)Net Cash Used for OperatingActivities

Cash Flows from Capital & Related Financing Activities:

225,000 Capital Contributed by Other Funds

Net Decrease in Cash and Cash Equivalents (414,949)

Cash and Cash Equivalents at Beginning of Year 623,944

Cash and Cash Equivalents at End of Year 208,995 $

Operating Income:$

Reconciliation of Operating Income to Net Cash

Used for Operating Activities:5,391,204

Assets and Liabilities:Effect of Increases and Decreases in Current

310,844 Decrease (increase) in Receivables(3,054)Decrease (increase) in Inventories

(81,466)Decrease (increase) in Prepaid Expenses354,199 Increase (decrease) in Accounts Payable

323 Increase (decrease) in Accrued Wages Payable(5,315,115)Increase (decrease) in Current Investments(1,296,884)Increase (decrease) in Due From Other Funds

Net Cash Used for OperatingActivities (639,949)$


31

EXHIBIT E-1EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT

STATEMENT OF FIDUCIARY NET POSITIONFIDUCIARY FUNDSAUGUST 31, 2018

ECISD Supt

Scholarship

Fund Funds

Agency

ASSETS

1,157,748 352 Cash and Cash Equivalents $ $

201,427 271,197 Investments - Current

Total Assets 271,549 1,359,175 $

LIABILITIES

95,373 - Payroll Deductions and Withholdings Payable $

380 - Due to Other Funds

1,263,422 - Due to Student Groups

Total Liabilities - 1,359,175 $

NET POSITION

271,549 Restricted for Scholarships

Total Net Position 271,549 $


32

EXHIBIT E-2EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT

STATEMENT OF CHANGES IN FIDUCIARY FUND NET POSITIONFIDUCIARY FUNDS


ECISD Supt

Scholarship

Fund

ADDITIONS:

84,701 Contributions $

4,577 Interest

Total Additions 89,278

DEDUCTIONS:

18,678 Adminstrative Expenses

37,000 Scholarships

Total Deductions 55,678




33,600

237,949

$ 271,549


33


NOTES TO THE FINANCIAL STATEMENTS

For the Year ended August 31, 2018

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Edinburg Consolidated Independent School District (the “District”) is a public educational agency operating under the applicable laws and regulations of the State of Texas. The Board of Trustees (“Board”), a seven- member group, has governance responsibilities over all activities related to educational services within the jurisdiction of the District. The District prepares its basic financial statements in conformity with generally accepted accounting principles promulgated by the Governmental Accounting Standards Board and it complies with the requirements of the appropriate version of Texas Education Agency’s Financial Accountability System Resource Guide (the “Resource Guide”) and the requirements of contracts and grants of agencies from which it receives funds.

A. REPORTING ENTITY

The Board is elected by the public and has the authority to make decisions, appoint administrators and managers, significantly influence operations of the district, and has the primary accountability for fiscal matters. The District is not included in any other governmental “reporting entity” as defined by the Governmental Accounting Standards Board (“GASB”) and there are no component units included within 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 the entire District with the interfund activities removed. Governmental activities include programs supported primarily by grants, state foundation funds and other intergovernmental revenues.

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. 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 through the Department of Education, Department of Health & Human Services and Texas Education Agency. If revenue is not program revenue, it is general revenue used to support all of the District’s functions.

Interfund activities between governmental 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 Net Position. All interfund transactions between governmental funds and between governmental funds and internal service funds are eliminated on the government-wide statements.

The fund financial statements provide reports on the financial condition and results of operations for three fund categories - governmental, proprietary, and fiduciary. Since the resources in the fiduciary funds cannot be used for District operations, they are not included in the government-wide statements. The District considers some governmental funds major and reports their financial condition and results of operations in a separate column.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. All other revenues and expenses are nonoperating.

34


NOTES TO THE FINANCIAL STATEMENTS For the Year ended August 31, 2018


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. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements use the current financial resources measurement focus and the modified accrual basis of accounting. With this measurement focus, only current assets, current liabilities and fund balances are included on the balance sheet. Operating statements of these funds present net increases and decreases in current assets (i.e., revenues and other financing sources and expenditures and other financing uses).

The modified accrual basis of accounting recognizes revenues in the accounting period in which they become both measurable and available, and it recognizes expenditures in the accounting period in which the fund liability is incurred, if measurable, 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 tax revenue. Miscellaneous revenues are recorded as revenue when received in cash because they are generally not measurable until actually received. Investment earnings are recorded as earned, since they are both measurable and available.

Grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant. Accordingly, when such funds are received, they are recorded as deferred revenues until related and authorized expenditures have been made. If balances have not been expended by the end of the project period, grantors sometimes require the District to refund all or part of the unused amount.

The Proprietary and Private-purpose Trust Funds are reported using the economic resources measurement focus and the accrual basis of accounting. This basis of accounting recognizes revenues in the accounting period in which they are earned and become measurable and expenses in the accounting period in which they are incurred and become measurable.

The Agency Fund has no measurement focus but utilizes the accrual basis of accounting for reporting its assets and liabilities.

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D. BASIS OF PRESENTATION - FUND ACCOUNTING

The District reports the following major governmental fund:

1. General Fund - is used to account for financial resources used for general operations. This is a budgeted fund and any fund balances are considered resources available for current operations. All revenues and expenditures not required to be accounted for in other funds, are accounted for in this fund.

Additionally, the District reports the following fund type(s):

Governmental Funds:

1. Special Revenue Funds - are used to account for resources restricted to, or designated for,

specific purposes by a grantor. Federal and state financial assistance generally is accounted for in a Special Revenue Fund. Normally, unused balances are returned to the grantor at the close of specified project periods.

2. Debt Service Fund - is used to account for resources accumulated and payments made for

principal and interest on long-term general obligation debt of governmental funds in a debt service fund.

3. Capital Projects Fund - is used to account for proceeds from long-term debt financing and

revenues and expenditures related to authorized construction and other capital asset acquisitions.

4. Permanent Funds - is used to account for donations for which the donor has stipulated that

the principal may not be expended and where the income may only be used for purposes that support the District’s programs. The District has no permanent funds.

Proprietary Funds:

1. Enterprise Funds - are used to account for those operations that are financed and operated in

a manner similar to private business. The District has no enterprise funds.

2. Internal Service Funds - are used to account for revenues and expenses related to self- funded insurance and workers’ compensation provided to employees within the District which are accounted for as internal service funds.

Fiduciary Funds:

1. Private Purpose Trust Funds - are used to account for scholarships, which have stipulations

for the participants awarded; only the income may be used for a specific purpose.

2. Agency Funds – are used to account for resources held for others in a custodial capacity in an Agency Fund. The District’s Agency Funds are the Student Activity Funds, Payroll Escrow Fund and the Flexible Spending Fund.

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E. OTHER ACCOUNTING POLICIES

1. For purposes of the statement of cash flows, the District considers highly liquid investments to be cash equivalents if they have a maturity of three months or less when purchased.

2. Inventory is valued at cost (average). The District accounts for school supply and food inventories by

using the consumption method whereby expenditures are recognized only when inventory items are used. Maintenance supplies inventory is accounted for by using the purchase method whereby purchases of inventories are recognized as expenditures when the goods are received and the transaction is vouchered. Reported inventories are equally offset by a fund balance reserve, which indicates that they do not constitute “available spendable resources” even though they are a component of net current assets. Commodity inventory is offset by unearned revenue.

3. In the government-wide financial statements, and proprietary fund types in the fund financial

statements, long-term obligations are reported as liabilities in the applicable governmental activities statement of net position.

4. Capital assets, which include land, buildings, vehicles, furniture & equipment and construction in

progress, are reported in the applicable governmental activities columns in the government-wide financial statements. Capital assets are defined by the District as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value, which is the price that would be paid to acquire an asset with equivalent service potential at the acquisition date.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Buildings, vehicles and furniture & equipment of the District are depreciated using the straight line method over the following estimated useful lives:

Assets Years

Infrastructure 30 Buildings 50 Building Improvements 20 Vehicles 2-15 Office & Computer Equipment 3-15

5. Interfund activity results from loans, services provided, reimbursements or transfers between funds.

Loans are reported as interfund receivables and payables as appropriate, and are subject to elimination upon consolidation. Services provided are treated as revenues or expenditures. Transfers In and Transfers Out are netted and presented as a single “Transfers” line on the government-wide statement of activities. Similarly, interfund receivables and payables are netted and presented as a single “Internal Balances” line of the government-wide statement of net position.

6. Accumulated compensatory absences that is expected to be liquidated with expendable available

resources is reported as an expenditure and a liability in the Governmental Funds only if they have matured.

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7. In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statements element, deferred outflows of resources, presents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The District only has one item that qualifies for reporting in this category. It is a deferred outflow related to TRS that is reported in the government-wide statement of net position.

In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statements element, deferred inflows or resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The District has an item that qualifies for reporting in this category. It is deferred inflow related to TRS that is reported only in the government-wide statement of net position. Additionally, the District has an item which arises only under a modified accrual basis of accounting, which qualifies for reporting in this category. Accordingly, the item, unavailable, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from one source: property taxes. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.

8. Net position represents the differences between assets, deferred outflows (inflows) of resources and

liabilities. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used for the acquisition, construction or improvements of those assets, and adding back unspent proceeds. Net position is reported as restricted when there are limitations imposed on their use either through the enabling legislations adopted by the District or through external restrictions imposed by creditors, grantors or laws or regulations of other governments.

Sometimes the government will fund outlays for a particular purpose from both restricted (e.g. restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied.

9. Sometimes the District will fund outlays for a particular purpose from both restricted and unrestricted

resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the District’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.

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10. The governmental fund financial statements present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the District is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. The classifications used in the governmental fund financial statements are as follows:

Nonspendable: This classification includes amounts that cannot be spent because they are

either (a) not in spendable form or (b) are legally or contractually required to be maintained intact. Nonspendable items are not expected to be converted to cash or are not expected to be converted to cash within the next year.

Restricted: This classification includes amounts for which constraints have been placed on the

use of the resources either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments, or (b) imposed by law through constitutional provisions or enabling legislation.

Committed: This classification includes amounts that can be used only for specific purposes

pursuant to constraints imposed by board resolution by the Board. The Board's commitment may be modified or rescinded by a majority vote in a scheduled meeting. Board commitments cannot exceed the amount of fund balance that is greater than the sum of nonspendable and restricted fund balances since that practice would commit funds that the District does not have. Board commitments must occur before the end of the reporting period with amounts to be determined subsequently.

Assigned: This classification includes amounts that are constrained by the District’s intent to

be used for a specific purpose but are neither restricted nor committed. This intent can be expresses by the Board, the Superintendent, or Superintendent’s designee.

Unassigned: This classification includes the residual fund balance for the General Fund. The

unassigned classification also includes negative residual fund balance of any other governmental fund that cannot be eliminated by offsetting of assigned fund balance amounts.

The order of spending and availability shall be to reduce funds from the listed areas in the following order: restricted, committed, assigned, and unassigned.

11. 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 data base for policy development and funding plans.

12. Compensated absences for the District consist of vacation days not taken during the year are not

accumulated and carried over to subsequent years. Local sick leave is however, accumulated, but only paid to the employee upon retirement up to a maximum of 30 days. The estimated amount of sick leave expected to be paid at retirement during the year ended August 31, 2018 is $1,784,294, and an accrual has been made. A liability for these amounts is reported in governmental funds only if they have matured, as a result of employee resignation and/or retirement.

39



II. RECONCILIATION OF GOVERNMENT-WIDE & FUND FINANCIAL STATEMENTS

A. EXPLANATION OF 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.

One element of that reconciliation explains that capital assets are not financial resources and are therefore not reported in governmental funds. In addition, long-term liabilities, including capital leases payable, are not due and payable in the current period and are not reported as liabilities in the funds. The details of capital assets and long-term debt at the beginning of the year were as follows:

B. EXPLANATION OF 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 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 asset balance and the change in net position. The details of this adjustment are as follows:

Capital Assets at the Historic Accumulated Net Value at the Change in

Beginning of Year Cost Depreciation Beginning of Year Net Position

Land & Improvements $ 26,725,361 $ (4,334,193) $ 22,391,168

Buildings & Improvements 444,495,686 (218,836,103) 225,659,583

Vehicles 23,609,053 (14,935,301) 8,673,753

Furniture & Equipment 47,370,839 (34,971,802) 12,399,037

Construction in Progress 10,774,056 - 10,774,056


$ 552,974,996 $ (273,077,399) $ 279,897,597

Long Term Liabilities at the Payable at the

Beginning of Year Beginning of Year

Bonds Payable $ (124,405,000)

Loans Payable (8,940,000)

Prem. Loans Payable (19,487,678)

Compensated Absences (1,790,573)

Change in Net Position (154,623,251)

Net Adjustment to Net Position $ 125,274,346

40



II. RECONCILIATION OF GOVERNMENT-WIDE & FUND FINANCIAL STATEMENTS

B. EXPLANATION OF DIFFERENCES BETWEEN THE GOVERNMENTAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES AND THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES

Adjustments to Adjustments in

Current Year Capital Outlay Amount Changes in Net Position Net Position

Land $ - $ -

Buildings & Improvements 1,069,437 1,069,437

Furniture & Equipment 1,337,924 1,337,924

Vehicles 1,213,344 1,213,344

Construction in Progress 8,076,975 8,076,975

Total Capital Outlay $ 11,697,680

Debt Principal Payments

Bonds Payable $ 8,375,000 $ 8,375,000

Loan Payable 1,945,000 1,945,000

Premium on Bonds 1,124,540 1,124,540

Compensated Absences Payable 6,280 6,280

Total Principal Payments 11,450,820

Net Adjustment to Net Position $ 23,148,499

III. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

A. BUDGETARY DATA The Board of Trustees adopts an “appropriated budget” on a basis consistent with GAAP for the General Fund, Debt Service Fund and Food Service Fund (which is included in the General Fund). The District is required to present the adopted and final amended budgeted revenues and expenditures for these three funds. The General Fund Budget report is presented in Exhibit G-1 and the Child Nutrition Program Budget and Debt Service Fund Budget report is presented in Exhibit J-4 and J-5.

The following procedures are followed in establishing the budgetary data reflected in the basic financial statements:

1. Prior to August 20th the District prepares a budget for the next succeeding fiscal year beginning

September 1st. 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. Public notice of the meeting must be given at least ten days prior to the meeting.

3. Prior to September 1st, 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. During the year, the budget was amended as necessary. There were no significant budget amendments passed during the 2017-2018 school year.

41



III. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

A. BUDGETARY DATA

4. Each budget is controlled by the budget coordinator at the revenue and expenditure functions or object level. Budgeted amounts are as amended by the Board. All budget appropriations lapse at year- end.

5. Encumbrances for goods or purchased services are documented by purchase orders or contracts.

Under Texas law, appropriations lapse at August 31st, and encumbrances outstanding at that time are to be either canceled or appropriately provided for in the subsequent year’s budget.

IV. DETAILED NOTES ON ALL FUNDS

A. DEPOSITS AND INVESTMENTS

The funds of the District must be deposited and invested under the terms of a contract, contents of which are set out in the Depository Contract Law. The depository bank places approved pledged securities for safekeeping and trust with counterparty’s trust department in the Districts name in an amount sufficient to protect District funds on a day-to-day basis during the period of the contract. The pledge of approved securities is waived only to the extent of the depository bank's dollar amount of Federal Deposit Insurance Corporation (“FDIC”) insurance.

At August 31, 2018, the carrying amount of the District’s deposits, excluding trust and agency funds, was $20,271,611, and the bank balance was $20,964,405. The District's cash deposits at August 31, 2018 and during the year, were covered by FDIC insurance or by pledged collateral held by the District’s agent bank in the District’s name. The District monitors cash flows regularly when TEA funds are received to ensure that the bank pledges sufficient collateral.

District Policies and Legal Contractual Provisions Governing Deposits

Custodial Credit Risk for Deposits – State law requires governmental entities to contract with financial institutions in which funds will be deposited to secure on deposit at the end of each business day. The pledged securities must be in the name of the governmental entity and held by the entity or its agent. Since the District complies with this law, it has no custodial risk for deposits.

Foreign Currency Risk for Deposits – The District limits the risk that changes in exchange rates will adversely affect the fair value of a deposit. At year-end, the District was not exposed to foreign currency risk.

District Policies and Legal Contractual Provisions Governing Investments

The Public Funds Investment Act (Government Code Chapter 2256) contains specific provisions in the areas of investment practices, management reports and establishment of appropriate policies. Among other things, it requires the District to adopt, implement, and publicize an investment policy. The policy must address the following areas: (1) safety of principal and liquidity, (2) portfolio diversification, (3) allowable investments, (4) acceptable risk levels, (5) expected rates of return, (6) maximum allowable stated maturity of portfolio investments, (7) maximum average dollar-weighted maturity allowed based on the stated maturity date for the portfolio, (8) investment staff quality and capabilities, (9) and bid solicitation preferences for certificates of deposit.

42




A. DEPOSITS AND INVESTMENTS

The Statutes authorize the District to invest in (1) obligations of the U.S. Treasury, certain U.S. agencies, and the State of Texas; (2) certificates of deposit, (3) certain municipal securities, (4) money market savings accounts, (5) repurchase agreements, (6) bankers acceptances, (7) Mutual Funds, (8) Investment pools, (9) guaranteed investment contracts, (10) and common trust funds. The Act also requires the District to have independent auditors perform test procedures related to investment practices as provided by the Act. The District is in substantial compliance with the requirements of the Act and with local policies.

The District’s temporary investments at August 31, 2018, are shown below:

Investment Maturities (in years)

Fair Less More

Investment Type Value Than 1 1 to 5 6 to 10 Than 10

BBVA Compass Bk - Certificate of Deposit

$ 15,000,000 $ 15,000,000 $ - $ - $ -

Lone Star Investment Pool 39,124,468

39,124,468

- - -

Texas Term Local Government

145,912

145,912

- - -

MBIA 38,896,078

38,896,078

- - -

Total $ 93,166,458 $ 93,166,458 $ - $ - $ -

Additional policies and contractual provisions governing deposits and investments for the District are specified below:

Credit Risk – In accordance with state law and the District’s investment policy, investments in mutual funds and investment pools must be rated at least AAA or have an equivalent rating, commercial paper must be rated at least A-1, P-1 or have an equivalent rating, and obligations of states, agencies, counties, and cities must be at least A or its equivalent. As of August 31, 2018, the District’s investments in Lone Star Investment Pool were rated AAA f-s/t by Standard and Poor’s (S&P), and MBIA was rated AAA/v1+ by Fitch Ratings.

Custodial Risk for Investments – For an investment, this is the risk that, in the event of the failure of the counterparty, the District will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. All investments held by third parties were fully collateralized and held in the District’s name.

Concentration of Credit Risk – The investment portfolio is diversified in terms of investment instruments and maturity scheduling to reduce risk of loss resulting from over concentration of assets in specific class of investments, specific maturity or specific issuer. As of August 31, 2018, the District had its investments in TASB investment pools rated AAA as noted above.

Interest Rate Risk – In accordance with state law and the District’s investment policy, the District does not purchase any investments greater than five (5) years for its operating funds.

Foreign Currency Risk for Investments – The District limits the risk that changes in exchange rates will adversely affect the fair value of an investment. At year-end, the District was not exposed to foreign currency risk.

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B. PROPERTY TAXES

Property taxes are levied by October 1st 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 1st of the year following the year in which imposed. On January 1st of each year, a tax lien attaches to property to secure the payment of all taxes, penalties, and interest ultimately imposed. Property tax revenues are considered available when they become due or past due and receivable within the current period and those expected to be collected during a 60 day period after the close of the school fiscal year.

The tax rates assessed for the year ended August 31, 2018, to finance General Fund operations and the payment of principal and interest on general obligation long-term debt were $1.1700 and $0.06980 per $100 valuation, respectively, for a total of $1.2398. The assessed valuation of $6,052,055,839 was used to determine the tax rates, represents 100% of the fair market value of the property. Allowances for uncollectible within the General Fund is based upon historical experience in collecting property taxes. Uncollectible personal property taxes are periodically reviewed and written off, but the District is prohibited from writing off real property taxes without specific statutory authority from the Texas Legislature.

C. DUE FROM OTHER GOVERNMENTS AND AGENCIES

Amounts due from other governments and agencies are as follows: State Federal

Fund Entitlements Grants Other Total

General $ 5,965,733 $ 2,278,621 $ 220,915 $ 8,465,270

Special Revenue - 3,927,701 - 3,927,701

Debt Service - - 12,933 12,933

Total $ 5,965,733 $ 6,206,322 $ 233,848 $ 12,405,904

D. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS

Transfers are indicative of subsidies of various District operations. The following schedule briefly summarizes the District’s transfer activities at August 31, 2018:

Transfers In Transfers Out Amount Purpose

General General $ 50,696,714 State Allotment Indirect Cost

Debt Service General 4,000,000 Transfer for Debt Service

Capital Projects General 3,334,574 Capital Improvement Projects

Internal Service General 225,000 Operating Transfer

$ 58,256,288

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D. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS

Interfund balances at August 31, 2018 consisted of the following individual fund balances:

General Fund:

Due From Other Funds

Due to Other Funds

General Fund $ 1,629,192 $ 1,629,192

Special Revenue Funds 2,416,867 270

Debt Service Funds - -

Internal Service Funds - -

Trust & Agency Funds 380 2,846,997

Total General Fund 4,046,439 4,476,458

Special Revenue Funds

General Fund 270 2,416,867

Special Revenue Funds 1,332,949 1,332,949


Total Special Revenue Funds 1,333,219 3,749,816

Internal Service Funds

General Fund 2,846,997 -

Special Revenue Funds - -


Total Internal Service Funds 2,846,997 -

Trust & Agency Funds

General Fund - 380

Total Trust & Agency Funds - 380

Totals $ 8,226,654 $ 8,226,654

Balances resulted from the time lag between the dates that 1) interfund goods and services are provided and/or reimbursement expenditures occur, and 2) transactions are recorded in the accounting system, and 3) payments between funds are made. Balances also result from interfund payroll transactions and end of year reclasses made between funds.

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E. CAPITAL ASSET ACTIVITY

Capital asset activity for the District for the year ended August 31, 2018, was as follows: BEGINNING BALANCE INCREASES DECREASES

ENDING BALANCE

Governmental activities: Capital assets not being depreciated: Land $ 19,840,434 $ - $ 19,840,434 Construction in progress $ 10,774,056 $ 8,076,975 $ 10,743,173 $ 8,107,858 Total capital assets not being depreciated $ 30,614,490 $ 8,076,975 $ 10,743,173 $ 27,948,292

Capital assets being depreciated: Land improvements $ 6,884,927 $ 6,884,927 Buildings and improvements $ 444,495,686 $ 11,812,609 $ 456,308,295 Equipment (Capital Lease) $ 47,370,840 $ 1,337,924 $ 48,708,764 Vehicles $ 23,609,053 $ 1,213,344 $ 24,822,398 Total capital assets being depreciated $ 522,360,506 $ 14,363,878 $ - $ 536,724,384 Less accumulated depreciation for: Land improvements $ (4,334,193) $ (291,337) $ (4,625,530) Buildings and improvements $ (218,836,102) $ (14,677,285) $ (233,513,387) Equipment (Capital Lease) $ (34,971,803) $ (2,516,824) $ (37,488,626) Vehicles $ (14,935,301) $ (1,455,736) $ (16,391,036) Total Accum. Dep. $ (273,077,398) $ (18,941,181) $ - $ (292,018,580) Total cap. assets being depreciated, net $ 249,283,108 $ (4,577,304) $ - $ 244,705,804

Governmental activities capital assets, net $ 279,897,598 $ 3,499,671 $ 10,743,173 $ 272,654,096

Depreciation expense was charged to governmental functions as follows:

11 Instruction 11,596,554

12 Instruction Resources and Media Services 348,738

21 Instructional Leadership 1,960

23 School Leadership 347,113

31 Guidance, Counseling, & Evaluation Services 22,488

32 Social Work Services 2,893

33 Health Services 32,703

34 Student Transportation 1,209,193

35 Food Services 1,258,853

36 Extracurricular Acitivies 2,141,388

41 General Administration 168,725

51 Plant Maintenance and Operations 1,632,971

52 Security and Monitoring Services 150,652

53 Data Processing Services 3,550

61 Community Service 23,399

18,941,181

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E. LONG-TERM OBLIGATIONS

General Obligation Bonds – The District issues general obligation bonds for the governmental activities to provide funds for the construction and equipment of school facilities, and to refund general obligation bonds. General obligation bonds are direct obligations and the full faith and credit of the District. Current principal and interest requirements are payable solely from future revenues of the Debt Service Fund which consists principally of property taxes collected by the District, interest earnings, and State funds. 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 indentures.

A summary of change for long-term debt for the year ended August 31, 2018 is as follows:

Interest Final Original Interest Balance Principal Issued/

Principal Balance Due Within

Description Rate Maturity Issue Amount Current Yr 08/31/17 Refunded Retired 08/31/18 One Year

Unlimited Tax Refunding

Bonds, Series 2008A 3.5 - 5.00% 2019 $ 37,170,000 $ 361,500 $ 8,055,000

- $ 3,930,000 $ 4,125,000 $ 4,125,000

Unlimited Tax School Building, Series 2008B 3.25 -

5.25% 2038

111,610,000 64,000 2,560,000

- 2,560,000 - -


Bonds, Series 2014 2.0 - 5.00% 2030

37,600,000 1,513,150 33,220,000

- 1,885,000 31,335,000 1,970,000


Bonds, Series 2016 2.0 - 5.00% 2038

81,625,000 3,951,650

80,570,000

- - 80,570,000 2,460,000

Totals

$ 5,890,300 $ 124,405,000

- $ 8,375,000 $ 116,030,000 $ 8,555,000

The District has never defaulted on any principal and interest payments. There are a number of limitations and restrictions contained in the general obligation bond indentures. Management has indicated that the District is in compliance with all significant limitation and restrictions at August 31, 2018.

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F. LONG-TERM OBLIGATIONS

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

Year Ended Governmental Activities Total

August 31, Principal Interest Required

2019 $ 8,555,000 $ 5,493,650 $ 14,048,650

2020 4,630,000 5,127,250 9,757,250

2021 4,845,000 4,916,500 9,761,500

2022 5,080,000 4,681,700 9,761,700

2023 5,335,000 4,421,325 9,756,325

2024-2028 31,025,000 17,770,900 48,795,900

2029-2033 28,405,000 10,200,300 38,605,300

2034-2038 28,155,000 3,659,375 31,814,375

Totals $116,030,000 $56,271,000 $172,301,000

Note Payable – The District issued the note payable for the governmental activities to provide funds for the renovations to existing facilities. The note is being issued pursuant to the Constitution and general laws of the State of Texas, including Sections 45.108 and the Texas Education Code, as amended. The Note is a direct obligation of the District, payable from and secured by ad valorem taxes levied by the District for maintenance purposes, within the limits prescribed by law, against all taxable property located within the District.

Interest Final Original Interest Balance Principal Balance Due Within

Description Rate Maturity Issue Amounts Current Year 8/31/17 Retired 8/31/18 One Year

Personal Property LGC 271 3.67% 2018 $ 3,870,000 $ 8,441 $ 460,000 $ 460,000 $ - $ -

Personal Property LGC 271 2.0 - 4.0% 2022 9,045,000 205,325 5,805,000 1,075,000 4,730,000 1,115,000

Personal Property LGC 271 2.0 - 3.0% 2023 6,170,000 80,700 2,675,000 410,000 2,265,000 425,000

Totals

$ 294,466 $ 8,940,000 $ 1,945,000 $ 6,995,000 $ 1,540,000

Annual debt service requirements to maturity for the note payable are as follows:

Year Ended Note Payable Total

August 31, Principal Interest Required

2019 $ 1,540,000 $ 234,013 $ 1,774,013

2020 1,595,000 173,475 1,768,475

2021 1,660,000 110,613 1,770,613

2022 1,720,000 46,475 1,766,475

2023 480,000 7,200 487,200

Totals $ 6,995,000 $ 571,776 $ 7,566,776

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G. CHANGES IN LONG-TERM LIABILITIES

The District’s long-term liabilities consist of bond and note indebtedness, accrued compensated absences, and net pension liability. General obligation bond expenditure requirements are accounted for in the debt service fund while note payable are accounted for in the general fund. The general and special revenue funds are used to liquidate accrued compensated absences. Other long-term liabilities are generally liquidated with resources of the general fund.

The following is a summary of changes in long-term debt:

Balance

Balance Due Within

9/1/17 Additions Reductions 8/31/18 One Year

Bonds Payable $ 124,405,000 $ - $ (8,375,000) $ 116,030,000 $ 8,555,000

Note Payable 8,940,000 - (1,945,000) 6,995,000 1,540,000

Compensated Balances 1,790,573 306,962 (313,242) 1,784,294 1,784,294

Premium on Bonds:

Bonds Payable 2014 4,504,708 - (375,392) 4,129,316 -

Bonds Payable 2016 14,982,970 - (749,148) 14,233,822 -

Net Pension Liability 83,702,653 (6,958,357) (7,134,994) 69,609,302 -

Net OPEB Liability 222,489,211 (94,958,410) (1,506,685) 126,024,116 -

Totals $ 460,815,115 $ (101,916,767) $ (20,092,498) $ 338,805,850 $ 11,879,294

H. CONTINGENT LIABILITIES

The District participates in a number of grant programs funded by State and Federal Agencies. These

programs are subject to compliance audits by the grantor agencies or their representatives.

Audits of all of these programs for the year ended August 31, 2018 have not been conducted. Accordingly,

the District’s compliance with applicable grant requirements will be established at some future date. The

amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at

this time although the District expects such amounts, if any, to be immaterial.

The District is involved in various legal proceedings arising from its operations, including investigations

into alleged misconduct by certain employees. The ultimate resolution of these matters is pending.

Management, in consultation with its attorneys, believes that the outcome of these pending matters will not

have a material adverse effect on the District’s financial statements or compliance.

I. DEFINED BENEFIT PENSION PLAN Plan Description. The District participates in a cost-sharing multiple-employer defined benefit pension that has a special funding situation. The plan is administered by the Teacher Retirement System of Texas (TRS). TRS’s defined benefit pension plan is established and administered in accordance with the Texas Constitution, Article XVI, Section 67 and Texas Government Code, Title 8, Subtitle C. The pension trust fund is a qualified pension trust under Section 401(a) of the Internal Revenue Code. The Texas Legislature establishes benefits and contribution rates within the guidelines of the Texas Constitution. The pension’s Board of Trustees does not have the authority to establish or amend benefit terms.

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I. DEFINED BENEFIT PENSION PLAN All employees of public, state-supported educational institutions in Texas who are employed for one-half or more of the standard work load and who are not exempted from membership under Texas Government Code, Title 8, Section 822.002 are covered by the system.

Pension Plan Fiduciary Net Position. Detailed information about the Teacher Retirement System’s fiduciary net position is available in a separately-issued Comprehensive Annual Financial Report that includes financial statements and required supplementary information. That report may be obtained on the Internet at http://www.trs.state.tx.us/about/documents/cafr.pdf#CAFR; by writing to TRS at 1000 Red River Street, Austin, TX, 78701-2698; or by calling (512) 542-6592.

Benefits Provided. TRS provides service and disability retirement, as well as death and survivor benefits, to eligible employees (and their beneficiaries) of public and higher education in Texas. The pension formula is calculated using 2.3 percent (multiplier) times the average of the five highest annual creditable salaries times years of credited service to arrive at the annual standard annuity except for members who are grandfathered, the three highest annual salaries are used. The normal service retirement is at age 65 with 5 years of credited service or when the sum of the member’s age and years of credited service equals 80 or more years. Early retirement is at age 55 with 5 years of service credit or earlier than 55 with 30 years of service credit. There are additional provisions for early retirement if the sum of the member’s age and years of service credit total at least 80, but the member is less than age 60 or 62 depending on date of employment, or if the member was grandfathered in under a previous rule. There are no automatic post-employment benefit changes; including automatic COLAs. Ad hoc post-employment benefit changes, including ad hoc COLAs can be granted by the Texas Legislature as noted in the Plan description in (A) above.

Contributions. Contribution requirements are established or amended pursuant to Article 16, section 67 of the Texas Constitution which requires the Texas legislature to establish a member contribution rate of not less than 6% of the member’s annual compensation and a state contribution rate of not less than 6% and not more than 10% of the aggregate annual compensation paid to members of the system during the fiscal year. Texas Government Code section 821.006 prohibits benefit improvements, if as a result of the particular action, the time required to amortize TRS’ unfunded actuarial liabilities would be increased to a period that exceeds 31 years, or, if the amortization period already exceeds 31 years, the period would be increased by such action.

Employee contribution rates are set in state statute, Texas Government Code 825.402. Senate Bill 1458 of the 83rd Texas Legislature amended Texas Government Code 825.402 for member contributions and established employee contribution rates for fiscal years 2014 thru 2017. It also added a 1.5% contribution for employers not paying Old Age Survivor and Disability Insurance (OASDI) on certain employees effective for fiscal year 2016 as discussed in Note 1 of the TRS 2015 CAFR. The 83rd Texas Legislature, General Appropriations Act (GAA) established the employer contribution rates for fiscal years 2014 and 2015. The 84th Texas Legislature, General Appropriations Act (GAA) established the employer contribution rates for fiscal years 2017 and 2018.

Contribution Rates

2017 2018

Member 7.7% 7.7%

Non-Employer Contributing Entity (State) 6.8% 6.8%

Employers 6.8% 6.8%

Current fiscal year employer contributions

$ 7,351,282

Current fiscal year member contributions

2017 measurement year NECE on-behalf contributions

$ 17,443,918

$ 10,603,671

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I. DEFINED BENEFIT PENSION PLAN

Contributors to the plan include members, employers and the State of Texas as the only non-employer contributing entity. The State is the employer for senior colleges, medical schools and state agencies including TRS. In each respective role, the State contributes to the plan in accordance with state statutes and the General Appropriations Act (GAA).

As the non-employer contributing entity for public education and junior colleges, the State of Texas contributes to the retirement system an amount equal to the current employer contribution rate times the aggregate annual compensation of all participating members of the pension trust fund during that fiscal year reduced by the amounts described below which are paid by the employers. Employers (public school, junior college, other entities or the State of Texas as the employer for senior universities and medical schools) are required to pay the employer contribution rate in the following instances:

On the portion of the member's salary that exceeds the statutory minimum for members entitled to

the statutory minimum under Section 21.402 of the Texas Education Code.

During a new member’s first 90 days of employment.

When any part or all of an employee’s salary is paid by federal funding sources, a privately sponsored source, from non-educational and general, or local funds.

When the employing district is a public junior college or junior college district, the employer shall contribute to the retirement system an amount equal to 50% of the state contribution rate for certain instructional or administrative employees; and 100% of the state contribution rate for all other employees.

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In addition to the employer contributions listed above, there are two additional surcharges an employer is subject to.

When employing a retiree of the Teacher Retirement System the employer shall pay both the

member contribution and the state contribution as an employment after retirement surcharge.

When a school district or charter school does not contribute to the Federal Old-Age, Survivors and

Disability Insurance (OASDI) Program for certain employees, they must contribute 1.5% of the state contribution rate for certain instructional or administrative employees; and 100% of the state contribution rate for all other employees.

Actuarial Assumptions. The total pension liability in the August 31, 2017, actuarial valuation was determined using the following actuarial assumptions:

Valuation Date

Actuarial Cost Method

Amortization Method

Single Discount Rate

Discount Rate

Long-term expected Investment Rate of Return*

Inflation

Salary Increases including Inflation

Payroll Growth Rate

Benefit Changes During the Year

Ad Hoc Post-Employment Benefit Changes

8/31/2017

Individual Entry Age Normal

Market Value

8.00%

8.00%

8.00%

2.50%

3.5% to 9.5%

2.50%

None

None

The actuarial methods and assumptions are primarily based on a study of actual experience for the four-year period ending August 31, 2014 and adopted on September 24, 2015.

Discount Rate. The discount rate used to measure the total pension liability was 8.0%. There was no change in the discount rate since the previous year. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and those of the contributing employers and the non- employer contributing entity are made at the statutorily required rates. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. The long-term rate of return on pension plan investments is 8%.

The long-term expected rate of return on pension plan investments was determined using a building- block method in which best-estimates ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of geometric real rates of return for each major asset class included in the Systems target asset allocation as of August 31, 2017 are summarized below:

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Expected Contribution to

Long-Term Target Real Return Portfolio

Asset Class Allocation Global Equity

Geometric Basis Returns*

U.S. 18% 4.6% 1.0%

Non-U.S. Developed 13% 5.1% 0.8%

Emerging Markets 9% 5.9% 0.7%

Directional Hedge Funds 4% 3.2% 0.1%

Private Equity 13% 7.0% 1.1%

Stable Value

U.S. Treasuries 11% 0.7% 0.1%

Absolute Return 0% 1.8% 0.0%

Stable Value Hedge Funds 4% 3.0% 0.1%

Cash 1% -0.2% 0.0%

Real Return

Global Inflation Linked Bonds 3% 0.9% 0.0%

Real Assets 16% 5.1% 1.1%

Energy and Natural Resources 3% 6.6% 0.2%

Commodities 0% 1.2% 0.0%

Risk Parity

Risk Parity 5% 6.7% 0.3%

Inflation Expectation 2.2%

Alpha 1%

Total 100% 8.7%

* The Expected Contribution to Returns incorporates the volatility drag resulting from the conversion between Arithmetic and Geometric mean returns.

Discount Rate Sensitivity Analysis. The following schedule shows the impact of the Net Pension Liability if the discount rate used was 1% less than and 1% greater than the discount rate that was used (8%) in measuring the 2017 Net Pension Liability.

1% Decrease in

Discount Rate

Discount Rate

1% Increase in

Discount Rate

(7.0%) (8.0%) (9.0%) Proportionate share of the net pension liability: $ 117,347,530 $ 69,609,302 $ 29,859,479

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Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of

Resources Related to Pensions. At August 31, 2018, the District reported a liability of $69,609,302 for its

proportionate share of the TRS’s net pension liability. This liability reflects a reduction for State pension

support provided to the District. The amount recognized by the District as its proportionate share of the net

pension liability, the related State support, and the total portion of the net pension liability that was

associated with the District were as follows:

District's proportionate share of the collective net pension liability $ 69,609,302

State's proportionate share that is associated with the District 103,667,357

Total $ 173,276,659

The net pension liability was measured as of August 31, 2017 and the total pension liability used to calculate

the net pension liability was determined by an actuarial valuation as of that date. The employer’s proportion

of the net pension liability was based on the employer’s contributions to the pension plan relative to the

contributions of all employers to the plan for the period September 1, 2016 thru August 31, 2017.

At August 31, 2017 the employer’s proportion of the collective net pension liability was 0.2177017833%,

which was an decrease of (0.0038011193%) from its proportion measured as of August 31, 2016.

Changes Since the Prior Actuarial Valuation. The following are changes to the actuarial assumptions or

other inputs that affected measurement of the total pension liability since the prior measurement period:

Economic Assumptions

1. The inflation assumption was decreased from 3.00% to 2.5%.

2. The ultimate merit assumption for long-service employees was decreased from 1.25% to 1%.

3. In accordance with the observed experience, there were small adjustments in the service-based

promotional/longevity component of the salary scale.

4. The payroll growth assumption was lowered from 3.50% to 2.50%.

Mortality Assumptions

5. The post-retirement mortality tables for non-disabled retirees were updated to reflect recent TRS member experience. Mortality rates will be assumed to continue to improve in the future using a fully generational approach and Scale BB.

6. The post-retirement mortality tables for disabled retirees were updated to reflect recent TRS

member experience. Mortality rates will be assumed to continue to improve in the future using a fully generational approach and Scale BB.

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7. The pre-retirement mortality tables for active employees were updated to use 90% of the recently published RP-2014 mortality table for active employees. Mortality rates will be assumed to continue to improve in the future using a fully generational approach and Scale BB.

Other Demographic Assumptions

8. Previously, it was assumed 10% of all members who had contributed in the past 5 years to be

an active member. This was an implicit rehire assumption because teachers have historically had a high incidence of terminating employment for a time and then returning to the workforce at a later date. This methodology was modified to add a more explicit valuation of the rehire incidence in the termination liabilities, and therefore these 10% are no longer being counted as active members.

9. There were adjustments to the termination patterns for members consistent with experience and

future expectations. The termination patterns were adjusted to reflect the rehire assumption. The timing of the termination decrement was also changed from the middle of the year to the beginning to match the actual pattern in the data.

10. Small adjustments were made to the retirement patterns for members consistent with experience

and future expectations.

11. Small adjustments to the disability patterns were made for members consistent with experience and future expectations. Two separate patterns were created based on whether the member has 10 years of service or more.

12. For members that become disabled in the future, it is assumed 20% of them will choose a 100%

joint and survivor annuity option.

Actuarial Methods and Policies

13. The method of using celled data in the valuation process was changed to now using individual data records to allow for better reporting of some items, such as actuarial gains and losses by source.

There were no changes of assumptions or other inputs that affected measurement of the total pension liability during the measurement period.

For the year ended August 31, 2018, the District recognized pension expense of $17,234,428 and revenue of $7,907,334 for support provided by the State.

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At August 31, 2017, the District reported its proportionate share of the TRS’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

The net amounts of the employer’s balances of deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows:

Fiscal year ended August 31, Pension Expense

Amount

2019 $ 62,086

2020 $ 4,505,429

2021 $ (279,299)

2022 $ (1,579,210)

2023 $ (182,682)

Thereafter $ (216,527)

At August 31, 2018, the District reported its proportionate share of the TRS’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows of

Resources Resources

Total net amounts per August 31, 2017 measurement date

$ 14,119,718 $ 11,809,921

Contributions paid to TRS subsequent to the measurement date

7,351,282 -

Total

Health Care Coverage

$ 21,471,000 $

11,809,921

Medicare Part D. Federal legislation enacted in January 2006 established prescription drug coverage for Medicare beneficiaries known as Medicare Part D. As a result, this provision 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 pharmacy claims paid by TRS-Care on behalf of plan participants. GASB Statement No. 24 requires recognition of these on-behalf payments in the financial statements. Medicare Part D payments made on-behalf of Edinburg Consolidated ISD participants for the years ended August 31, 2016, 2017, and 2018 were $889,051 and $737,475 and $685,621 respectively.

Deferred Outflows of

Resources Deferred Inflows of

Resources

Differences between expected and actual actuarial experiences $ 1,018,415 $ 3,753,938

Changes in actuarial assumptions 3,170,814 1,815,217

Differences between projected and actual investment earnings - 5,072,974

Changes in proportion and differences between the employer's contributions

and the proportionate share of contributions 9,930,489 1,167,792

Total as of August 31, 2017 measurement date $ 14,119,718 $ 11,809,921

Contributions paid to TRS subsequent to the measurement date 7,351,282

Total as of fiscal year-end $ 21,471,000 $ 11,809,921

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Summary of Significant Accounting Policies

The fiduciary net position of the Teacher Retirement System of Texas (TRS) TRS-Care Plan has been determined using the flow of economic resource measurement focus and full accrual basis of accounting. This includes for purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to other post-employment benefits, OPEB expense, and information about assets, liabilities and additions to/deductions from TRS-Care's fiduciary net position. Benefit payments are recognized when due and payable in accordance with the benefit terms. There are no investments as this is a pay-as-you-go plan and all cash is held in a cash account.

J. DEFINED OTHER POST EMPLOYMENT BENEFIT PLANS

Plan Description. The District participates in the Texas Public School Retired Employees Group Insurance Program (TRS-Care). It is a multiple-employer, cost-sharing defined Other Post-Employment Benefit (OPEB) plan that has a special funding situation. The plan is administered through a trust by the Teacher Retirement System of Texas (TRS) Board of Trustees. It is established and administered in accordance with the Texas Insurance Code, Chapter 1575. OPEB Plan Fiduciary Net Position. Detail information about the TRS-Care's fiduciary net position is available in the separately-issued TRS Comprehensive Annual Financial Report that includes financial statements and required supplementary information. That report may be obtained on the Internet at http://www.trs.state.tx.us/about/documents/cafr.pdf#CAFR; by writing to TRS at 1000 Red River Street, Austin, TX, 78701-2698; or by calling (512) 542-6592. Components of the net OPEB liability of the TRS-Care plan as of August 31, 2017 are as follows:

Net OPEB Liability Total Total OPEB Liability $ 43,885,784,621 Less: plan fiduciary net position 399,535,986 Net OPEB liability $ 43,486,248,635 Net position as a percentage of total OPEB liability 0.91%

Benefits Provided. TRS-Care provides a basic health insurance coverage (TRS-Care 1), at no cost to all retirees from public schools, charter schools, regional education service centers and other educational districts who are members of the TRS pension plan. Optional dependent coverage is available for an additional fee. Eligible retirees and their dependents not enrolled in Medicare may pay premiums to participate in one of two optional insurance plans with more comprehensive benefits (TRS-Care 2 and TRS-Care 3). Eligible retirees and dependents enrolled in Medicare may elect to participate in one of the two Medicare health plans for an additional fee. To qualify for TRS-Care coverage, a retiree must have at least 10 years of service credit in the TRS pension system. The Board of Trustees is granted the authority to establish basic and optional group insurance coverage for participants as well as to amend benefit terms as needed under Chapter 1575.052. There are no automatic post-employment benefit changes; including automatic COLAs.

The premium rates for the optional health insurance are based on years of service of the member. The schedule below shows the monthly rates for the average retiree with Medicare Parts A&B coverage, with 20 to 29 years of service for the basic plan and the two optional plans.

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TRS-Care Plan Premium Rates

Effective Sept. 1, 2016 - Dec. 31, 2017 TRS Care-1

Basic Plan TRS Care-2

Optional Plan TRS Care-3

Optional Plan Retiree* $ 0 $ 70 $ 100 Retiree and Spouse 20 175 255 Retiree* and Children 41 132 182 Retiree and Family 61 237 337 Surviving Children Only 28 62 82 *or surviving spouse

Contributions. Contribution rates for the TRS-Care plan are established in state statute by the Texas Legislature, and there is no continuing obligation to provide benefits beyond each fiscal year. The TRS- Care plan is currently funded on a pay-as-you-go basis and is subject to change based on available funding. Funding for TRS-Care is provided by retiree premium contributions and contributions from the state, active employees, and school districts based upon public school district payroll. The TRS Board of trustees does not have the authority to set or amend contribution rates. Texas Insurance Code, section 1575.202 establishes the state's contribution rate which is 1.0% of the employee's salary. Section 1575.203 establishes the active employee's rate which is .65% of pay. Section 1575.204 establishes an employer contribution rate of not less than 0.25 percent or not more than 0.75 percent of the salary of each active employee of the public. The actual employer contribution rate is prescribed by the Legislature in the General Appropriations Act. The following table shows contributions to the TRS-Care plan by type of contributor.

Contribution Rates

2017 2018 Active Employee 0.65% 0.65% Non-Employer Contributing Entity (State) 1.00% 1.25% Employers 0.55% 0.75% Federal/private Funding Remitted by Employers 1.00% 1.25%

District's 2018 FY Employer Contributions $ 2,054,827 District's 2018 FY Member Contributions $ 1,479,774 Measurement Year NECE On-Behalf Contributions $ 1,928,946

In addition to the employer contributions listed above, there is an additional surcharge all TRS employers are subject to (regardless of whether or not they participate in the TRS Care OPEB program). When employers hire a TRS retiree, they are required to pay to TRS-Care, a monthly surcharge of $535 per retiree.

TRS-Care received supplemental appropriations from the State of Texas as the Non-Employer Contributing Entity in the amount of $15.6 million in fiscal year 2017. House Bill 21 was passed in special session and provided a supplemental appropriation in the amount of $212 million in fiscal year 2018.

The District's proportionate of share of the $212,000,000 received during the district's 2018 fiscal year is reported in the fund level financial statements as an on-behalf contribution as required by GASB 85 and GASB 24.

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IV. DETAILED NOTES ON ALL FUNDS Actuarial Assumptions. The total OPEB liability in the August 31, 2017 actuarial valuation was determined using the following actuarial assumptions: [Actuarial Assumptions can be found in the 2017 TRS CAFR, Note 10, page 82]. The actuarial valuation of TRS-Care is similar to the actuarial valuations performed for the pension plan, except that the OPEB valuation is more complex. All of the demographic assumptions, including mortality, and most of the economic assumptions are identical to those which were adopted by the Board in 2015 and are based on the 2014 actuarial experience study of TRS. The active mortality rates were based on 90 percent of the RP-2014 Employee Mortality Tables for males and females. The post-retirement mortality rates were based on the 2015 TRS of Texas Healthy Pensioner Mortality Tables. The following assumptions and other inputs used for members of TRS-Care are identical to the assumptions used in the August 31, 2017 TRS pension actuarial valuation:

Rates of Mortality General Inflation Rates of Retirement Wage Inflation Rates of Termination Expected Payroll Growth Rates of Disability Incidence

Additional Actuarial Methods and Assumptions:

Valuation Date August 31, 2017 Actuarial Cost Method Individual Entry Age Normal Inflation Discount Rate 3.42% Aging Factors Based on Plan Specific Experience Expenses Third-party administrative expenses

related to the delivery of health care benefits are included in the age-adjusted claims costs.

Payroll Growth Rate 2.50% Projected Salary Increases 3.50% - 9.50% Healthcare Trend Rates 4.50% - 12.00% Election Rates Normal Retirement: 70%

Participation prior to age 65 and 75% participation after age 65.

Ad-hoc Post Employment Benefit Changes None

*Source: Fixed Income municipal bonds with 20 years to maturity that include only federal tax-exempt municipal bonds as reported in Fidelity Index's "20- Year Municipal GO AA Index" as of August 31, 2017. **Includes inflation at 2.50% ***Initial trend rates are 7.00% for non-Medicare retirees; 10.00% for Medicare retirees and 12.00% for prescriptions for all retirees. Initial trend rates decrease to an ultimate trend rate of 4.50% over a period of 10 years.

59




Discount Rate. A single discount rate of 3.42% was used to measure the total OPEB liability. There was a change of .44 percent in the discount rate since the previous year. The Discount Rate can be found in the 2017 TRS CAFR on page 83. Because the plan is essentially a "pay-as-you-go" plan, the single discount rate is equal to the prevailing municipal bond rate. The projection of cash flows used to determine the discount rate assumed that contributions from active members and those of the contributing employers and the non-employer contributing entity are made at the statutorily required rates. Based on those assumptions, the OPEB plan's fiduciary net position was projected to not be able to make all future benefit payments of current plan members. Therefore, the municipal bond rate was applied to all periods of projected benefit payments to determine the total OPEB liability. The source of the municipal bond rate was Fixed-income municipal bonds with 20 years to maturity that include only federally tax-exempt municipal bonds as reported in Fidelity Index's "20-year Municipal GO AA Index" as of August 31, 2017. Sensitivity of the Net OPEB Liability: Discount Rate Sensitivity Analysis. The following schedule shows the impact of the Net OPEB Liability if the discount rate used was 1% less than and 1% greater than the discount rate that was used (3.42%) in measuring the Net OPEB Liability.

1% Decrease in Discount Rate

(2.42%)

Discount Rate (3.42%)

1% Increase in Discount Rate

(4.42%) District's proportionate share of the Net OPEB Liability:

$ 148,739,742

$ 126,024,116

$ 107,765,874

Healthcare Cost Trend Rates Sensitivity Analysis - The following presents the net OPEB liability of the plan using the assumed healthcare cost trend rate, as well as what the net OPEB liability would be if it were calculated using a trend rate that is one-percentage point lower or one-percentage point higher than the assumed healthcare cost trend rate.

1% Decrease Current Healthcare Cost Trend Rate

1% Increase

District's proportionate share of the Net OPEB Liability:

$ 104,927,667

$ 126,024,116

$ 153,705,316

OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEBs. At August 31, 2018, EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT reported a liability of $ 126,024,116 for its proportionate share of the TRS's Net OPEB Liability. This liability reflects a reduction for State OPEB support provided to the District. The amount recognized by the District as its proportionate share of the net OPEB liability, the related State support, and the total portion of the net OPEB liability that was associated with EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT were as follows:

District's Proportionate share of the collective net OPEB liability $ 126,024,116

State's proportionate share that is associated with the District 161,343,391

Total $ 287,367,507 The Net OPEB Liability was measured as of August 31, 2017 and the Total OPEB Liability used to calculate the Net OPEB Liability was determined by an actuarial valuation as of that date. The employer's proportion of the Net OPEB Liability was based on the employer's contributions to the OPEB plan relative to the contributions of all employers to the plan for the period September 1, 2016 thru August 31, 2017.

60



IV. DETAILED NOTES ON ALL FUNDS At August 31, 2017 the employer's proportion of the collective Net OPEB Liability was 0.2898022241% which was the same proportion measured as of August 31, 2016.

Changes Since the Prior Actuarial Valuation The following were changes to the actuarial assumptions or other inputs that affected measurement of the Total OPEB liability since the prior measurement period: [These can be found in the TRS CAFR on page 83].

1. Significant plan changes were adopted during fiscal year ending August 31, 2018. Effective January 1, 2018, only one health plan option will exist (instead of three), and all retirees will be required to contribute monthly premiums for coverage. The health plan changes triggered changes to several of the assumptions, including participation rates, retirement rates, and spousal participation rates.

2. The August 31, 2016 valuation had assumed that the savings related to the Medicare Part D reimbursements would phase out by 2022. This assumption was removed for the August 31, 2017 valuation. Although there is uncertainty regarding these federal subsidies, the new assumption better reflects the current substantive plan. This change was unrelated to the plan amendment, and its impact was included as an assumption change in the reconciliation of the total OPEB liability. This change significantly lowered the OPEB liability.

3. The discount rate changed from 2.98 percent as of August 31, 2016 to 3.42 percent as of August 31, 2017. This change lowered the total OPEB liability.

In this valuation the impact of the Cadillac Tax has been calculated as a portion of the trend assumption. Assumptions and methods used to determine the impact of the Cadillac Tax include:

2018 thresholds of $850/$2,292 were indexed annually by 2.50 percent. Premium data submitted was not adjusted for permissible exclusions to the Cadillac Tax. There were no special adjustments to the dollar limit other than those permissible for non-

Medicare retirees over 55. Results indicate that the value of the excise tax would be reasonably represented by a 25-basis point addition to the long term trend rate assumption. Future actuarial measurements may differ significantly from the current measurements due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements; and changes in plan provisions or applicable law. There were no changes of benefit terms that affected measurement of the Total OPEB liability during the measurement period. For the year ended August 31, 2018, EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT recognized OPEB expense of $(96,251,800) and revenue of $(53,989,789) for support provided by the State. At August 31, 2018, EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT reported its proportionate share of the TRS's deferred outflows of resources and deferred inflows of resources related to other post- employment benefits from the following sources: 61



Deferred Outflows of

Resources

Deferred Inflows of Resources

Differences between expected and actual actuarial experience $ - $ 2,630,849 Changes in actuarial assumptions - 50,085,276 Net Difference between projected and actual investment earnings 19,143 -Changes in proportion and difference between the employer's contributions and the proportionate share of contributions

583 -

Total as of August 31, 2017 measurement date $ 19,726 $ 52,716,125

Contributions paid to TRS subsequent to the measurement date 2,054,827

Total $ 2,074,553 $ 52,716,125


The net amounts of the employer's balances of deferred outflows and inflows (not including the deferred contribution paid subsequent to the measurement date) of resources related to OPEBs will be recognized in OPEB expense as follows:

K. RISK MANAGEMENT

During the fiscal year ended August 31, 2018 the District sponsored a self-funded insurance plan to provide health care benefits to employees and their dependents. The District paid premiums of $464 per month per employee to the Fund. Total employee contributions are required for coverage of dependents. In accordance with state statue, the District was protected against unanticipated catastrophic individual stop-loss coverage carried through VOYA, a commercial insurer licensed or eligible to do business in Texas in accordance with the Texas Insurance Code. The District’s current stop-loss policy is in effect from January 1, 2018 to December 31, 2018. Stop-loss coverage was in effect for individual claims exceeding $325,000. The contract between the Edinburg Consolidated Independent School District and the licensed insurer is renewable, and terms of coverage and premium costs are included in the contractual provisions. The latest financial statements available for Blue Cross Blue Shield (BCBS), MedImpact, Continental and MaxCare are filed with the Texas State Board of Insurance, Austin, Texas, and are public records. The following is a summary of the changes in the balances of claims liabilities for the year ended August 31, 2018.

2018 2017

Unpaid claims, beginning of year $ 3,103,223 $ 240,900

Incurred claims (including IBNRs) 28,119,715 31,777,334

Claim payments (28,624,917) (28,915,011) Unpaid claims, end of year $ 2,598,021 $ 3,103,223

Year ended August 31: OPEB Expense Amount 2019 $ (6,953,351) 2020 (6,953,351)

2021 (6,953,351) 2022 (6,953,351) 2023 (6,958,137) Thereafter $ (17,924,857)

62



IV. DETAILED NOTES ON ALL FUNDS Worker’s Compensation Coverage For the year ended August 31, 2018, the District met its statutory worker’s compensation obligations through participation in a Self-Funded Worker’s Compensation Plan with TRISTAR Risk Management as the TPA (Third Party Administrator). This plan is authorized by Article 8309, Vernon’s Annotated Texas Statutes. The District provides statutory worker’s compensation benefits to its employees.

The District’s and TRISTAR Risk Management are protected against higher than expected claims costs through the purchase of stop loss coverage for any claim in excess of the self-funded retention of $400,000. For the year ended August 31, 2018, the fund purchased excess stop loss coverage from Frost Insurance. The fund uses an independent actuary to determine reserve adequacy and fully funds those reserves.

As of August 31, 2018, the District has reserved for estimated claims incurred, but not reported that do not exceed the required reserves. The liability reported at August 31, 2018 is based on the requirements of Governmental Accounting Standards Board No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred as of the date of the financial statements, and the amount of loss can be reasonably estimated. These liabilities include an amount for claims that have been incurred but not reported. Because actual claim liabilities depend on complex factors such as inflation, changes in legal doctrines, and damage awards, the process used in computing the liability does not necessarily result in an exact amount.

2018 2017

Beginning claims liability $ 1,060,507 $ 1,382,063

Current year claims & changes

in estimates 378,638 275,928

Claim payments (373,282) (597,484)

Ending claims liability $ 1,065,863 $ 1,060,507

L. UNEARNED REVENUE

Unearned revenue at year-end consisted on the following: General Special Debt

Fund Revenue Service Total

State Revenue $ 2,756,129 $ - $ 370,716 $ 3,126,845

Athletic Receipts 21,266 - - 21,266

Advanced Placement Incentives - 227,306 - 227,306

Literacy & Math Achievement Academies - 2,100 - 2,100

Instructional Materials Allotment - 65,904 - 65,904

USDA Commodities 133,208 - - 133,208

Totals $ 2,910,603 $ 295,310 $ 370,716 $ 3,576,629

63




M. REVENUE FROM LOCAL AND INTERMEDIATE SOURCES

During the current year, revenues from local and intermediate sources consisted on the following:


N. USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and/or disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Internal

General Special Debt Capital Service

Fund Revenue Service Projects Funds Total

Property taxes $ 70,843,166 $ - $ 4,398,372 $ - $ - $ 75,241,537

Penalties, interest,

and other tax income 1,607,232 - 116,832 - - 1,724,064

Investment income 1,679,598 8,347 168,124 197,230 171,721 2,225,020

Food sales 414,110 - - - - 414,110

Co-curricular student activities 473,247 512,366 - - - 985,613

Other 4,507,724 319,824 - 1,434,176 35,430,175 41,691,900

Totals $ 79,525,078 $ 840,537 $ 4,683,328 $ 1,631,406 $ 35,601,896 $ 122,282,244

64




O. GENERAL FUND FEDERAL SOURCE REVENUES

Federally financed programs are generally accounted for in the Special Revenue Funds of the District, except for indirect costs charged to federal programs which are accounted for in the General Fund as prescribed by TEA and certain direct revenues. The District recognized in the General Fund such revenues for the year ended August 31, 2018 from various federal sources as follows:

P. MAINTENANCE OF EFFORT

The District sponsors a modified self-insurance plan to provide health care benefits to staff members and their dependents.

Program or Source CFDA # Amount

School Breakfast Program 10.553 $ 6,838,149 National School Lunch Program 10.555 14,482,720 Food Distribution (USDA Commodities) 10.550 1,615,801 School Health Related Services N/A 3,842,536 Medicaid Administrative Claims 93.778 50,199 E-RATE Program N/A 498,216 R.O.T.C. N/A 235,899

Total Programs $ 27,563,520

Indirect Costs: Texas Education Agency:

ESSA Title I Part A - Improving Basic Programs 84.010A $ 246,573 ESSA Title I Part C - Migratory Children 84.011A 44,738 IDEA-B Formula 84.027A 94,229 IDEA-B Preschool Grant 84.173A 780 Texas 21st Century Community Learning Centers, Cycle 9 84.287C 1,406

ESSA Title III, Part A-English Language Acquisition 84.365A 17,455 ESSA Title II, A Teacher & Principal Training 84.367A 23,434 ESSA Title IV, Part A Subpart 1- SSAEP 84.424A 3,472 Texas Hurricane Emergency Impact Aid to LEAs 84.938C 3,823 Total Indirect Costs 435,909

Total General Fund $ 27,999,429

24,493,538.00$

B. Subtract any non-medical expenditures

Life Insurance 64,235.00$

Dental Insurance 605,996.00

Vision insurance -

Long-Term disability -

Short-term disability -

Alternate plans -

COBRA expense -

Retiree expense - 670,231.00

C. 2017-2018 Maintenance of Effort: 23,823,307.00$

A. Total District premium paid for health care for 2017-2018:

65




Q. NEGATIVE OPERATING GRANTS AND CONTRIBUTIONS - STATEMENT OF ACTIVITIES

Expense activity is required to be recorded by districts who are participants in cost-sharing pension and OPEB benefit plans with a special funding situation where non-employer contributing entities (NECE) also participate in contributions to the plans. TRS-retirement and TRS-care benefit plans are both cost-sharing plans with special funding situations. Therefore, on-behalf expense activity of the NECE must be recorded at the government-wide level of reporting on the Statement of Activities in accordance with GASB 68 and 75.

During the year under audit, the NECE expense was negative due to changes in benefits within the TRS-care plan. The accrual for the proportionate share of that expense was a negative on-behalf revenue and negative on-behalf expense. This resulted in negative revenue for operating grants and contributions on the Statement of Activities. According to guidance provided directly from GASB, this is the correct reporting.

Following are the effects on the Statement of Activities as a result of the negative on-behalf accruals recorded:

R. PRIOR PERIOD ADJUSTMENTS

There is prior period adjustment of 220,982,526 as a result of implementation of GASB 75 Other Post-Employment Benefits (OPEB) as noted in Schedule B-1 of the government wide financial statements.

S. SUBSEQUENT EVENTS

Management has evaluated subsequent events through December 17, 2018 the date the financial statements were available to be issued.

Operating Grants and

Operating Negative Contributions Grants and On-Behalf (excluding on- Contributions Accruals behalf accruals)

11 - Instruction $ (136,803) $ (579,925) $ 443,122

12 - Instructional Resources and Media Services (12,401) (14,662) 2,261

13 - Curriculum and Instructional Staff Development (238) (6,487) 6,249

23 - School Leadership (50,191) (59,342) 9,151

31 - Guidance, Counseling and Evaluation Services (23,676) (27,993) 4,317

33 - Health Services 490 (2,213) 2,703

34 - Student (Pupil) Transportation (20,203) (21,095) 892

35 - Food Services 95,576 (25,369) 120,945

36 - Extracurricular Activities 31,797 (26,949) 58,746

41 - General Administration (49,701) (58,761) 9,060

51 - Facilities Maintenance and Operations (59,231) (70,030) 10,799

53 - Data Processing Services (31,214) (36,906) 5,692

61 - Community Services 208 0 208

$ (255,587) $ (929,732) $ 674,145

66

REQUIRED SUPPLEMENTARY SCHEDULES

67

EXHIBIT G-1EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL - GENERAL FUNDFOR THE YEAR ENDED AUGUST 31, 2018

Control

Data

CodesOriginal Final

(GAAP BASIS)

(Negative)

Positive or

Final BudgetVariance WithActual Amounts

Budgeted Amounts

REVENUES:79,361,630 75,297,714 79,525,078 163,448 Total Local and Intermediate Sources $ $ $ $5700

232,843,556 235,065,082 237,609,905 4,766,349 State Program Revenues5800

33,758,806 33,758,806 27,999,429 (5,759,377)Federal Program Revenues5900

Total Revenues5020 344,121,602 345,963,992 345,134,412 (829,580)

EXPENDITURES:Current:

193,191,498 191,668,217 186,453,126 6,738,372 Instruction00118,720,996 8,708,615 8,461,922 259,074 Instructional Resources and Media Services00122,796,879 2,852,680 2,600,664 196,215 Curriculum and Instructional Staff Development00134,343,721 4,262,886 3,923,103 420,618 Instructional Leadership0021

15,786,995 15,759,512 15,760,028 26,967 School Leadership002312,062,177 12,038,915 11,448,827 613,350 Guidance, Counseling and Evaluation Services0031

931,564 798,336 907,493 24,071 Social Work Services00323,916,247 3,902,660 3,897,465 18,782 Health Services0033

13,700,738 13,729,004 13,623,445 77,293 Student (Pupil) Transportation0034

25,862,408 25,848,354 25,606,572 255,836 Food Services003513,801,816 13,748,591 13,627,408 174,408 Extracurricular Activities0036

8,069,528 7,608,700 6,819,227 1,250,301 General Administration004131,471,257 31,492,005 29,734,185 1,737,072 Facilities Maintenance and Operations0051

6,114,152 6,105,742 5,843,588 270,564 Security and Monitoring Services00521,339,809 1,329,644 1,304,492 35,317 Data Processing Services0053

100,080 98,180 31,197 68,883 Community Services0061

Debt Service:1,945,000 1,945,000 1,945,000 - Principal on Long-Term Debt0071

294,466 294,466 294,466 - Interest on Long-Term Debt00726,000 6,000 1,250 4,750 Bond Issuance Cost and Fees0073

Capital Outlay:453,746 500,000 84,522 369,224 Facilities Acquisition and Construction0081

Intergovernmental:62,000 51,000 61,633 367 Payments to Juvenile Justice Alternative Ed. Prg.0095

923,288 896,288 919,174 4,114 Other Intergovernmental Charges0099

Total Expenditures6030 343,644,795 345,894,365 333,348,787 12,545,578

1100 476,807 69,627 11,785,625 11,715,998 Excess of Revenues Over Expenditures

OTHER FINANCING SOURCES (USES): 27,437 - 27,437 - Sale of Real and Personal Property7912

50,913,528 50,471,529 50,696,714 (216,814)Transfers In7915(58,472,126)(55,756,529) (58,255,312) 216,814 Transfers Out (Use)8911

Total Other Financing Sources (Uses) 7080 (5,285,000) (7,531,161) (7,531,161) -

1200 Net Change in Fund Balances (4,808,193) (7,461,534) 4,254,464 11,715,998

0100 Fund Balance - September 1 (Beginning) 66,665,572 66,665,572 66,665,572 -

3000 Fund Balance - August 31 (Ending) $ 61,857,379 $ 59,204,038 $ 70,920,036 $ 11,715,998

68

SCHEDULE OF THE DISTRICT'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY


TEACHER RETIREMENT SYSTEM OF TEXAS

EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT

EXHIBIT G-2

FY 2017 Plan Year 2016




0.217701783%District's Proportion of the Net Pension Liability (Asset) 0.2215029% 0.2297322% 0.1645018%

69,609,302 $District's Proportionate Share of Net Pension Liability (Asset) 83,702,653 $ $ 81,207,275 $ 43,940,706

103,667,357 State's Proportionate Share of the Net Pension Liability (Asset) Associated with the District

125,069,894 118,931,510 100,339,877

208,772,547$Total $ 173,276,659 $ 200,138,785 144,280,583$

219,125,866 $District's Covered Payroll 214,676,717 $ $ 205,823,212 $ 198,275,441

31.77%District's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered Payroll

38.99% 39.45% 22.16%

82.70%Plan Fiduciary Net Position as a Percentage of the Total Pension Liability

78.00% 78.43% 83.25%

Note: In accordance with GASB 68, Paragraph 138, only four years of data are presented this reporting period. "The information for all periods for the 10-year schedules that are required to be presented as required supplementary information may not be available initially. In these cases, during the transition period, that information should be presented for as many years as are available. The schedules should not include information that is not measured in accordance with the requirements of this Statement."

Note: GASB 68, Paragraph 81 requires that the information on this schedule be data from the period corresponding with the periods covered as of the measurement dates of August 31, 2017 for year 2018, August 31, 2016 for Year 2017, August 31, 2015 for Year 2016 and August 31, 2014 for 2015.

69

SCHEDULE OF DISTRICT'S CONTRIBUTIONS FOR PENSIONS


FOR FISCAL YEAR 2018


EXHIBIT G-3

20172018 2016 2015

Contractually Required Contribution 7,134,994 $$ 7,351,282 7,037,708 $ $ 6,802,464

Contribution in Relation to the Contractually Required Contribution 7,134,994 7,351,282 7,037,708 6,802,464

Contribution Deficiency (Excess)$ - $ - $ -- $

District's Covered Payroll 219,125,866 $$ 226,502 214,676,717 $ $ 205,823,212

Contributions as a Percentage of Covered Payroll 3.26%3.25% 3.28% 3.31%

Note: In accordance with GASB 68, Paragraph 138, only four years of data are presented this reporting period. "The information for all periods for the 10-year schedules that are required to be presented as required supplementary information may not be available initially. In these cases, during the transition period, that information should be presented for as many years as are available. The schedules should not include information that is not measured in accordance with the requirements of this Statement."

Note: GASB 68, Paragraph 81 requires that the data in this schedule be presented as of the District's respective fiscal years as opposed to the time periods covered by the measurement dates ending August 31 of the preceding year.

70

SCHEDULE OF THE DISTRICT'S PROPORTIONATE SHARE OF THE NET OPEB LIABILITY




EXHIBIT G-4


0.289802222%District's Proportion of the Net Liability (Asset) for Other Post Employment Benefits

126,024,116 $District's Proportionate Share of Net Post Employment Benefit Liability (Asset)

161,343,391 State's Proportionate Share of the Net Post Employment Benefit Liability (Asset) Associated with the District

Total $ 287,367,507

219,125,866 $District's Covered Payroll

57.51%District's Proportionate Share of the Net OPEB Liability (Asset) as a Percentage of its Covered Payroll

0.91%Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability

This schedule shows only the year for which this information is available. Additional information will be added until 10 years of data are available and reported.

Note: GASB Codification, Vol. 2, P50.238 states that the information on this schedule should be determined as of the measurement date. Therefore the amounts reported for FY 2018 are based on the August 31, 2017 measurement date.

71

SCHEDULE OF DISTRICT'S CONTRIBUTIONS FOR OTHER POSTEMPLOYMENT BENEFITS (OPEB)


FOR FISCAL YEAR 2018


EXHIBIT G-5

2018

Contractually Required Contribution 2,054,827 $

Contribution in Relation to the Contractually Required Contribution 2,054,827

Contribution Deficiency (Excess)$ -

District's Covered Payroll 226,502,476 $

Contributions as a Percentage of Covered Payroll 0.91%

Information in this schedule should be provided only for the years where data is available. Eventually 10 years of data should be presented.

Note: GASB Codification, Vol. 2, P50.238 requires that the data in this schedule be presented as of the District's respective fiscal years as opposed to the time periods covered by the measurement dates ending August 31 of the preceding year.

72


NOTES TO REQUIRED SUPPLEMENTARY INFORMATIONFOR THE YEAR ENDED AUGUST 31, 2018

A. Notes to Schedules for the TRS Pension

Changes of Benefit terms.

There were no changes of benefit terms that affected measurement of the total pension liability during the measurement period.

Changes of Assumptions.

There were no changes to the actuarial assumptions or other inputs that affected measurement of the total pension liability since the prior measurement period.

B. Notes to Schedules for the TRS OPEB Plan

Changes in Benefit.

There were no changes of benefit terms that affected measurement of the Total OPEB liability during the measurement period.

Changes in Assumptions.

The following were changes to the actuarial assumptions or other inputs that affected measurement of Total OPEB liability since the prior measurement period:

1. Significant plan changes were adopted during fiscal year ending August 31, 2017. Effective January 1, 2018, only one health plan option will exist (instead of three), and all retirees will be required to contribute monthly premiums for coverage. The health plan changes triggered changes to several of the assumptions, including participation rates, retirement rates, and spousal participation rates.

2. The August 31, 2016 valuation had assumed that the savings related to the Medicare Part D reimbursements would phase out by 2022. This assumption was removed for the August 31, 2017 valuation. Although there is uncertainty regarding these federal subsidies, the new assumption better reflects the current substantive plan. This change was unrelated to the plan amendment, and its impact was included as an assumption change in the reconciliation of the total OPEB liability. This change significantly lowered the OPEB liability.

3. The discount rate changed from 2.98 percent as of August 31, 2016 to 3.42 percent a of August 31, 2017. This change lowered the total OPEB liability.

73

In this valuation the impact of the Cadillac tax has been calculated as a portion of the trend assumption. Assumptions and methods used to determine the impact of the Cadillac Tax include:

· 2018 thresholds of $850/$2,292 were indexed annually by 2.50 percent.· Premium data submitted was not adjusted for permisible exclusions to the

Cadillac Tax.· There were no special adjustments to the dollar limit other than those

permissible for non-Medicare retirees over 55.

Results indicate that the value of the excise tax would be reasonably represented by a 25 basis point addition to the long term trend rate assumption.

Future actuarial measurements may differ significantly from the current measurements due to such factors as the following: plan experience differing from that anticipated by the economic or demographic asumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements; and changes in plan provisions or applicable law.

74

COMBINING STATEMENTS

75

SPECIAL REVENUE FUNDS

The Special Revenue Funds generally account for state and federally financed programs where unused balances are returned to the grantors at the close of specified project periods. Project accounting is employed to maintain integrity for the various sources of funds. Funds included in the Special Revenue Funds are described in the following pages.

ESEA TITLE I PART A - IMPROVING BASIC PROGRAMS (211) To account for funds allocated to local educational agencies 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.

ESEA, TITLE I PART C - MIGRATORY CHILDREN (212) To account for funds granted for programs benefiting children of migrant agriculture-related workers and children of migrant fishermen.

IDEA-PART B, FORMULA (224) To account for funds granted to operate educational programs for handicapped children with disabilities.

IDEA PART B, PRESCHOOL (225) To account for funds granted for preschool handicapped children.

TITLE I, PART C – CARL D PERKINS (244) To account for funds granted to provide career and technology education to develop new and/or improve career and technology education programs for paid and unpaid employment. Full participation in the basic grant is from individuals who are members of special populations, at (1) a limited number of campuses or (2) a limited number of program areas.

ESEA TITLE II PART A TEACHER AND PRINCIPAL TRAINING AND RECRUITING (255) To provide financial assistance to LEAs 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, also, to hold local education agencies and schools accountable for improving student academic achievement.

TITLE III, ENGLISH LANGUAGE ACQUISISTION AND LANGUAGE ENHANCEMENT (263) To account for funds granted to improve the education of limited English proficient children, by assisting them to learn English and meet challenging State academic content and student academic achievement standards.

GAINING EARLY AWARNESS FOR COLLEGE READINESS: GEAR UP (274) To account for funds granted to provide services and support to low-income minority school districts to ensure that students are academically prepared for higher education, graduate from high school, and have access to higher education opportunities.

FEDERALLY FUNDED SPECIAL REVENUE FUNDS (289) This fund classification is to be used to account, on a project basis, for federally funded special revenue funds that have not been specified above

76

ADVANCED PLACEMENT (397) To account for funds used to promote pre-AP and AP programs thus increasing the number of student and teachers enrolled and teaching pre – AP and AP courses at each participating school. This grant also supports activities to increase the participation of low income students in pre advanced placement and advanced placement courses.

STATE TEXTBOOK FUND (410) This fund classification is to be used to account, on a project basis, for funds awarded to school districts under the textbook allotment.

STATE FUNDED SPECIAL REVENUE FUNDS (429) State funded special revenue funds not listed above are to be accounted for in this fund.

CAMPUS ACTIVITY FUNDS (461) To account for resources held for others in a custodial capacity.

PROJECT LEAD THE WAY (480) This fund is used to account for costs associated with implementation of the PLTW Gateway Introduction to Computer Science (ICS) Units in middle schools.

77

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78


COMBINING BALANCE SHEETNONMAJOR GOVERNMENTAL FUNDS

AUGUST 31, 2018

Control

Data

Codes

ESEA I, A

Improving

Basic Program Migrant

Part C

ESEA Title I

Formula

IDEA - Part B

Preschool

IDEA - Part B

211 212 224 225

ASSETS

- - - - $ $ $ $1110 Cash and Cash Equivalents

- 3 - - 1120 Investments - Current

- - - - 1220 Property Taxes - Delinquent

- - - - 1230 Allowance for Uncollectible Taxes

320,735 2,049,428 680,541 7,785 1240 Due from Other Governments

- 1,101,300 - - 1260 Due from Other Funds

- - - - 1290 Other Receivables

Total Assets1000 3,150,731 320,735 680,541 7,785 $ $ $ $

LIABILITIES

996 - 536 108 $ $ $ $2110 Accounts Payable

85,191 784,282 251,299 1,315 2160 Accrued Wages Payable

234,548 2,366,449 428,706 6,362 2170 Due to Other Funds

- - - - 2190 Due to Student Groups

- - - - 2300 Unearned Revenue

Total Liabilities2000 3,150,731 320,735 680,541 7,785


- - - - 2601 Unavailable Revenue - Property Taxes

Total Deferred Inflows of Resources2600 - - - -

FUND BALANCES

Restricted Fund Balance:

- - - - 3450 Federal or State Funds Grant Restriction

- - - - 3470 Capital Acquisition and Contractural Obligation

- - - - 3480 Retirement of Long-Term Debt

Committed Fund Balance:

- - - - 3510 Construction

- - - - 3545 Other Committed Fund Balance

Total Fund Balances3000 - - - -

4000 Total Liabilities, Deferred Inflows & Fund Balances 3,150,731 320,735 680,541 7,785 $ $ $ $

79

EXHIBIT H-1 (Cont'd)

Career and

Technical -

Recruiting

Training and

ESEA II,A

Acquisition

English Lang.

Title III, A

Learning

Community

Title IV, B GEAR UP Texas Hurricane

Emergency

Impact Aid

Advanced

Placement

Incentives

Title IV, A

Subpart 1

SSAEP

244 255 263 265 274 287 289 397

Basic Grant

- - - - - - - 65,904 $ $ $ $ $ $ $ $

- - - - - - - -

- - - - - - - -

- - - - - - - -

47,049 214,901 191,146 33,407 181,792 152,795 48,122 -

- - - - - - - -

- - - - - - - -

33,407 181,792 152,795 214,901 47,049 191,146 48,122 65,904 $ $ $ $ $ $ $ $

675 - - - 272 108 - - $ $ $ $ $ $ $ $

8,611 31,754 - 1,902 55,433 56,706 - -

37,763 183,147 191,146 31,505 126,087 95,981 48,122 -

- - - - - - - -

- - - - - - - 65,904

33,407 181,792 152,795 214,901 47,049 191,146 48,122 65,904

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

33,407 181,792 152,795 214,901 47,049 191,146 48,122 65,904 $ $ $ $ $ $ $ $

80



AUGUST 31, 2018

Control

Data

Codes

State

Textbook

Fund Academies

Achievement

Literacy Math

Funds

Activity

Campus

the Way

Project Lead

410 429 461 480

ASSETS

1,830 1,187 8,436 - Cash and Cash Equivalents $ $ $ $1110

- - 383,606 - Investments - Current1120

- - - - Property Taxes - Delinquent1220

- - - - Allowance for Uncollectible Taxes1230

- - - - Due from Other Governments1240

270 231,649 - - Due from Other Funds1260

- - 70,095 - Other Receivables1290

Total Assets1000 232,836 2,100 462,137 - $ $ $ $

LIABILITIES

- (1) 19,004 - Accounts Payable $ $ $ $2110

- - - - Accrued Wages Payable2160

- - - - Due to Other Funds2170

- - 18,291 - Due to Student Groups2190

2,100 227,306 - - Unearned Revenue2300

Total Liabilities2000 227,305 2,100 37,295 -


- - - - Unavailable Revenue - Property Taxes2601

Total Deferred Inflows of Resources2600 - - - -

FUND BALANCES


- 5,531 - - Federal or State Funds Grant Restriction3450

- - - - Capital Acquisition and Contractural Obligation3470

- - - - Retirement of Long-Term Debt3480


- - - - Construction3510

- - 424,842 - Other Committed Fund Balance3545

Total Fund Balances3000 5,531 - 424,842 -

4000 Total Liabilities, Deferred Inflows & Fund Balances 232,836 2,100 462,137 - $ $ $ $

81


Nonmajor

Special

Fund

Service

Debt

Bonds

2008

Construction

Education

Rooth Road

Safe Routes Construction

Local Project

EHS

Construction

Repairs

Maintenance

Facilities

Construction

TRE

Construction

Total 511 623 625 627 628 629 633

Revenue Funds

7,691,710 85,275 63,483 77,357 9,822 47 (9,528,900) 1,055,161 $ $ $ $ $ $ $ $

- - - 383,609 6,660,146 7 10,027,054 -

- - - - 613,008 - - -

- - - - (18,390) - - -

- - - 3,927,701 12,933 - - -

- - - 1,333,219 - - - -

- - - 70,095 - - - -

5,791,981 7,277,519 54 85,275 7,691,710 63,483 498,154 1,055,161 $ $ $ $ $ $ $ $

828,465 26,654 - 21,699 - - - 10,626 $ $ $ $ $ $ $ $

- - - 1,276,492 - - - -

- - - 3,749,816 - - - -

- - - 18,291 - - - -

- - - 295,310 370,716 - - -

5,361,608 370,716 - 26,654 828,465 - - 10,626

- - - - 594,618 - - -

- 594,618 - - - - - -

- - - 5,531 - - - -

- - - - - 54 - -

- - - - 6,312,185 - - -

6,863,245 58,621 63,483 - - - 498,154 1,044,535

- - - 424,842 - - - -

430,373 6,312,185 54 58,621 6,863,245 63,483 498,154 1,044,535

5,791,981 7,277,519 54 85,275 7,691,710 63,483 498,154 1,055,161 $ $ $ $ $ $ $ $

82

EXHIBIT H-1EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT


AUGUST 31, 2018

Control

Data

Codes

Construction

Land

Purchase Complex

Fund Sports

Construction

Project Funds

Capital

Nonmajor

Funds

Governmental

Nonmajor

634 635 Total Total

ASSETS

608,431 24,881 88 87,267 Cash and Cash Equivalents $ $ $ $1110

- - 10,027,061 17,070,816 Investments - Current1120

- - - 613,008 Property Taxes - Delinquent1220

- - - (18,390)Allowance for Uncollectible Taxes1230

- - - 3,940,634 Due from Other Governments1240

- - - 1,333,219 Due from Other Funds1260

- - - 70,095 Other Receivables1290

Total Assets1000 24,881 608,431 10,027,149 23,096,649 $ $ $ $

LIABILITIES

252,382 - 1,118,127 1,139,826 Accounts Payable $ $ $ $2110

- - - 1,276,492 Accrued Wages Payable2160

- - - 3,749,816 Due to Other Funds2170

- - - 18,291 Due to Student Groups2190

- - - 666,026 Unearned Revenue2300

Total Liabilities2000 - 252,382 1,118,127 6,850,451


- - - 594,618 Unavailable Revenue - Property Taxes2601

Total Deferred Inflows of Resources2600 - - - 594,618

FUND BALANCES


- - - 5,531 Federal or State Funds Grant Restriction3450

- - 54 54 Capital Acquisition and Contractural Obligation3470

- - - 6,312,185 Retirement of Long-Term Debt3480


356,049 24,881 8,908,967 8,908,967 Construction3510

- - - 424,842 Other Committed Fund Balance3545

Total Fund Balances3000 24,881 356,049 8,909,022 15,651,580

4000 Total Liabilities, Deferred Inflows & Fund Balances 24,881 608,431 10,027,149 23,096,649 $ $ $ $

83

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84


COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES INFUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS


Control

Data

Codes

ESEA I, A

Improving

Basic Program Migrant

Part C

ESEA Title I

Formula

IDEA - Part B

Preschool

IDEA - Part B

211 212 224 225

REVENUES: - - - - Total Local and Intermediate Sources5700 $ $ $ $ - - - - State Program Revenues5800

2,594,940 14,415,673 5,465,900 44,462 Federal Program Revenues5900

Total Revenues5020 14,415,673 2,594,940 5,465,900 44,462

EXPENDITURES:

Current:445,315 10,576,970 5,127,759 43,245 Instruction0011

- 141,507 - - Instructional Resources and Media Services0012 - 132,080 205 1,217 Curriculum and Instructional Staff Development0013

195,766 781,011 43,216 - Instructional Leadership002112,648 503,701 - - School Leadership0023

1,927,083 184,288 294,720 - Guidance, Counseling and Evaluation Services00319,832 1,009,425 - - Social Work Services0032

- 66,526 - - Health Services0033 - - - - Student (Pupil) Transportation0034 - - - - Food Services0035 - - - - Extracurricular Activities0036 - - - - General Administration0041 - - - - Facilities Maintenance and Operations0051 - - - - Security and Monitoring Services0052

4,296 1,020,165 - - Community Services0061

Debt Service: - - - - Principal on Long-Term Debt0071 - - - - Interest on Long-Term Debt0072 - - - - Bond Issuance Cost and Fees0073

Capital Outlay: - - - - Facilities Acquisition and Construction0081

Total Expenditures6030 14,415,673 2,594,940 5,465,900 44,462


- - - -

OTHER FINANCING SOURCES (USES): - - - - Transfers In7915 - - - - Transfers Out (Use)8911

Total Other Financing Sources (Uses) 7080 - - - -

1200 Net Change in Fund Balance - - - -

0100 Fund Balance - September 1 (Beginning) - - - -

3000 Fund Balance - August 31 (Ending) $ - $ - $ - $ -

85


Career and

Technical -

Basic Grant Recruiting

Training and

ESEA II,A

AcquisitionEnglish Lang.

Title III, A

Learning

Community

Title IV, B

244 255 263 265 397

Advanced

Placement

Incentives

289

Other Federal

Special

Revenue Funds

287

Texas HurricaneEmergency

274

GEAR UP

-- - - - ---$ $ $ $ $ $ $ $- - - - - - - -

1,299,355 514,722 1,003,692 1,749,473 - 186,700 187,323 123,577

514,722 1,299,355 1,003,692 1,749,473 - 186,700 187,323 123,577

862,939 179,536 989,687 1,565,240 - 144,900 187,323 20,947 - - - - - - - -

431,212 - 13,105 55,000 - 41,800 - - 5,204 - - 121,588 - - - -

- - - - - - - - - 335,186 - - - - - 101,288

- - - - - - - - - - - 7,645 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 900 - - - - 1,342

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

- - - - - - - -

514,722 1,299,355 1,003,692 1,749,473 - 186,700 187,323 123,577

- - - - - - - -

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

- - - - - - - -

- - - - - - - -

- - - - - - - -

$ - $ - $ - $ - $ - $ - $ - $ -

Impact Aid

86




Control

Data

Codes

State

Textbook

Fund Academies

Achievement

Literacy Math

Funds

Activity

Campus

the Way

Project Lead

410 429 461 480

REVENUES: - - 840,537 - Total Local and Intermediate Sources5700 $ $ $ $

101,150 63,251 - - State Program Revenues5800 - - - - Federal Program Revenues5900

Total Revenues5020 63,251 101,150 840,537 -

EXPENDITURES:

Current: - 63,251 285,250 8 Instruction0011 - - 9,667 - Instructional Resources and Media Services0012

101,150 - 406 - Curriculum and Instructional Staff Development0013 - - 1,895 - Instructional Leadership0021 - - 229,637 - School Leadership0023 - - - - Guidance, Counseling and Evaluation Services0031 - - - - Social Work Services0032 - - - - Health Services0033 - - 3,054 - Student (Pupil) Transportation0034 - - 10,321 - Food Services0035 - - 227,148 - Extracurricular Activities0036 - - 7,538 - General Administration0041 - - 11,090 - Facilities Maintenance and Operations0051 - - 1,062 - Security and Monitoring Services0052 - - 600 - Community Services0061

Debt Service: - - - - Principal on Long-Term Debt0071 - - - - Interest on Long-Term Debt0072 - - - - Bond Issuance Cost and Fees0073

Capital Outlay: - - - - Facilities Acquisition and Construction0081

Total Expenditures6030 63,251 101,150 787,668 8


- - 52,869 (8)

OTHER FINANCING SOURCES (USES): - - - - Transfers In7915 - - - - Transfers Out (Use)8911

Total Other Financing Sources (Uses) 7080 - - - -

1200 Net Change in Fund Balance - - 52,869 (8)

0100 Fund Balance - September 1 (Beginning) 5,531 - 371,973 8

3000 Fund Balance - August 31 (Ending) $ 5,531 $ - $ 424,842 $ -

87


Nonmajor

Special

Revenue Funds Fund

Service

Debt

Bonds

2008

Construction

Education

Rooth Road

Safe Routes

Total 511 623 625 633

Maintenance

Facilities

Construction

629

TRE

Construction

628

EHS

Construction

Repairs

627

Construction

Local Project

4,683,328 840,537 - - - 197,230 - - $ $ $ $ $ $ $ $8,295,757 164,401 - - - - - -

- 27,585,817 - - - - - -

28,590,755 12,979,085 - - - 197,230 - -

- 20,492,371 - - - - - - - 151,174 - - - - - - - 776,175 - - - - - - - 1,148,680 - - - - - - - 745,986 - - - - - - - 2,842,564 - - - - - -

- 1,019,257 - - - - - - - 74,171 - - - - - - - 3,054 - - - - - - - 10,321 - - - - - - - 227,148 - - - - - - - 7,538 - - - - - - - 11,090 - - 77,179 - - - - 1,062 - - - - - - - 1,027,303 - - - - - -

8,375,000 - - - - - - - 5,890,300 - - - - - - -

7,250 - - - - - - -

- - - 62,358 392,491 1,683 - 6,134,293

28,537,894 14,272,550 - 62,358 469,670 1,683 - 6,134,293

52,861 (1,293,465) - (62,358) (6,134,293) - 195,547 (469,670)

4,000,000 - - - - - - 3,333,598 - - - - - (976) - -

- 4,000,000 - - - (976) - 3,333,598

52,861 2,706,535 - (62,358) (2,800,695) - 194,571 (469,670)

377,512 3,605,650 54 120,979 9,663,940 63,483 303,583 1,514,206

1,044,535 $498,154 $63,483 $6,863,245 $58,621 $54 $6,312,185 $430,373 $

88




Control

Data

Codes

Construction

Land

Purchase Complex

Fund Sports

Construction

Project Funds

Capital

Nonmajor

Funds

Governmental

Nonmajor

634 635 Total Total

REVENUES:1,434,176 - 1,631,406 7,155,271 Total Local and Intermediate Sources5700 $ $ $ $

- - - 8,460,158 State Program Revenues5800 - - - 27,585,817 Federal Program Revenues5900

Total Revenues5020 - 1,434,176 1,631,406 43,201,246

EXPENDITURES:

Current: - - - 20,492,371 Instruction0011 - - - 151,174 Instructional Resources and Media Services0012 - - - 776,175 Curriculum and Instructional Staff Development0013 - - - 1,148,680 Instructional Leadership0021 - - - 745,986 School Leadership0023 - - - 2,842,564 Guidance, Counseling and Evaluation Services0031 - - - 1,019,257 Social Work Services0032 - - - 74,171 Health Services0033 - - - 3,054 Student (Pupil) Transportation0034 - - - 10,321 Food Services0035 - - - 227,148 Extracurricular Activities0036 - - - 7,538 General Administration0041 - - 77,179 88,269 Facilities Maintenance and Operations0051 - - - 1,062 Security and Monitoring Services0052 - - - 1,027,303 Community Services0061

Debt Service: - - - 8,375,000 Principal on Long-Term Debt0071 - - - 5,890,300 Interest on Long-Term Debt0072 - - - 7,250 Bond Issuance Cost and Fees0073

Capital Outlay:2,956,432 - 9,547,257 9,547,257 Facilities Acquisition and Construction0081

Total Expenditures6030 - 2,956,432 9,624,437 52,434,880


- (1,522,256) (7,993,031) (9,233,634)

OTHER FINANCING SOURCES (USES): 976 - 3,334,574 7,334,574 Transfers In7915 - - (976) (976)Transfers Out (Use)8911

Total Other Financing Sources (Uses) 7080 - 976 3,333,598 7,333,598

1200 Net Change in Fund Balance

0100 Fund Balance - September 1 (Beginning)

3000 Fund Balance - August 31 (Ending)

- (1,521,280) (4,659,433) (1,900,036)

17,551,617

15,651,580 $

13,568,455

$ 8,909,022

1,877,329

$ 356,049

24,881

$ 24,881

89

INTERNAL SERVICE FUNDS

The Internal Service Funds are used to account for activities where the District charges fees to internal users for goods or services.

PRINT SHOP (752) This fund is used to account for transactions related to district provided print shop services to other organizational units of district and other governmental units on a cost-reimbursement basis.

WORKMENS’ COMPENSATION (772) This fund is used to account for transactions related to workmens’ compensation insurance and claims activities of the school district.

TWC UNEMPLOYMENT (773) This fund is used to account for transactions related to Texas Workforce Commission unemployment insurance and claims activities of the school district.

HEALTH INSURANCE (774) This fund is used to account for transactions related to self-funded health insurance activities of the school district.

CLEARWIRE AIRWAVES (775) This fund is used to account for educational broadband service.

90


COMBINING STATEMENT OF NET POSITIONINTERNAL SERVICE FUNDS

AUGUST 31, 2018

Print

Shop Compensation

Workmens'

752 772

ASSETSCurrent Assets:

4,316 6,896 Cash and Cash Equivalents $ $4,750,608 803,882 Investments - Current

- - Due from Other Funds261 12,498 Other Receivables - 44,991 Inventories - - Prepayments

868,267 4,755,185 Total Current Assets

Noncurrent Assets:Capital Assets:

- (1,580)Depreciation on Furniture and Equipment - 1,580 District Defined Capital Assets

- - Total Noncurrent Assets

Total Assets 868,267 4,755,185

LIABILITIESCurrent Liabilities:

976,586 66,230 Accounts Payable - - Accrued Wages Payable

Total Liabilities 66,230 976,586

NET POSITION3,778,599 802,037 Unrestricted Net Position

Total Net Position 802,037 3,778,599 $ $

91

EXHIBIT H-3

TWC

Insurance

Health

Airwaves

Clearwire

Service Funds

Internal

Total

Unemployment

773 774 775

208,995 63 190,369 7,351 $ $ $ $12,683,288 402,967 6,350,413 375,418 2,846,997 - 2,846,997 -

12,759 - - -

44,991 - - - 81,466 - 81,466 -

403,030 9,469,245 382,769 15,878,496

(1,580) - - - 1,580 - - -

- - - -

403,030 9,469,245 382,769 15,878,496

1,608,270 - 565,454 - 323 - - 323

- 565,454 323 1,608,593

14,269,903 403,030 8,903,791 382,446

403,030 8,903,791 382,446 14,269,903 $ $ $ $

92


COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITIONINTERNAL SERVICE FUNDS


Print

Shop Compensation

Workmens'

752 772

OPERATING REVENUES:

1,198,953 629,388 Local and Intermediate Sources $ $

Total Operating Revenues 629,388 1,198,953

OPERATING EXPENSES:

- 197,335 Payroll Costs - 329,063 Professional and Contracted Services - 222,445 Supplies and Materials

579,164 - Other Operating Costs

Total Operating Expenses 748,843 579,164

Income (Loss) Before Transfers (119,455) 619,789

- 225,000 Transfer In




105,545

696,492

$ 802,037

619,789

3,158,810

$ 3,778,599

93

EXHIBIT H-4

TWC

Unemployment Insurance

Health

Airwaves

Clearwire

Service Funds

Internal

Total

773 774 775

33,547,854 151,490 74,210 35,601,895 $ $ $ $

151,490 33,547,854 74,210 35,601,895

- - 11,359 208,694 65,550 - - 394,613

- - - 222,445 28,700,318 105,457 - 29,384,939

105,457 28,765,868 11,359 30,210,691

46,033 4,781,986 62,851 5,391,204

- - - 225,000

46,033

356,997

$ 403,030

4,781,986

4,121,805

$ 8,903,791

62,851

319,595

$ 382,446

5,616,204

8,653,699

$ 14,269,903

94


COMBINING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED AUGUST 31, 2018INTERNAL SERVICE FUNDS

Print Workmens'

Shop Compensation

752 772

Cash Flows from Operating Activities:

588,828 489,465 Cash Received from Assessments - Other Funds $ $

- (197,335)Cash Payments to Employees for Services(587,832)(517,443)Cash Payments for Suppliers

- - Cash Payments for Other Operating Expenses

(225,313)Net Cash Provided by (Used for) Operating

996 Activities

Cash Flows from Capital & Related Financing Activities:

- 225,000 Capital Contributed by Other Funds

Net Increase (Decrease) in Cash and Cash Equivalents (313) 996

Cash and Cash Equivalents at Beginning of Year 7,209 3,320

Cash and Cash Equivalents at End of Year 6,896 4,316 $ $

Operating Income (Loss): $ $

Reconciliation of Operating Income (Loss) to Net Cash

Provided By (Used For) Operating Activities:

(119,455) 619,789

Assets and Liabilities:Effect of Increases and Decreases in Current

(261)101,370 Decrease (increase) in Receivables - (3,054)Decrease (increase) in Inventories - - Decrease (increase) in Prepaid Expenses

(8,668)37,119 Increase (decrease) in Accounts Payable - - Increase (decrease) in Accrued Wages Payable

(609,864)(241,293)Increase (decrease) in Current Investments - - Increase (decrease) in Due From Other Funds

Net Cash Provided by (Used for)Operating Activities $ (225,313) $ 996

95

EXHIBIT H-5

Total

TWC Health Clearwire Internal

Unemployment Insurance Airwaves Service Funds

773 774 775

(41,681) 28,253,725 10,402 29,300,739 $ $ $ $

- - (11,359) (208,694)

(105,457) (28,440,119) 323 (29,650,528)

- (81,466) - (81,466)

(147,138) (267,860) (634) (639,949)

- - - 225,000

(147,138)

147,201

63 $ $

(267,860)

458,229

190,369

(634)

7,985

7,351 $ $

(414,949)

623,944

208,995

$ 46,033 $ 4,781,986 62,851 $ $ 5,391,204

- 209,735 - 310,844

- - - (3,054)

- (81,466) - (81,466)

- 325,748 - 354,199

- - 323 323

(193,171) (4,206,979) (63,808) (5,315,115)

- (1,296,884) - (1,296,884)

(147,138) (267,860) (634) (639,949)$$$$

96


COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

ALL AGENCY FUNDS


BALANCE

SEPTEMBER 1

2017 ADDITIONS

DEDUCTIONS

2018

AUGUST 31

BALANCE

STUDENT ACTIVITY ACCOUNTAssets:

3,668,122 1,028,297 3,565,364 Cash and Temporary Investments 1,131,055 $ $ $ $

Liabilities:3,668,122 1,028,297 3,565,364 Due to Student Groups 1,131,055 $ $ $ $

PAYROLL ESCROWAssets:

179,678 89,763 173,938 Cash and Temporary Investments 95,503 $ $ $ $

Liabilities:1,114 - 1,114 Accounts Payable - $ $ $ $

178,505 89,694 172,825 Payroll Deductions & Withholdings 95,374 1,174 69 1,114 Due to Other Funds 129

Total Liabilities 89,763 180,793 175,053 95,503 $ $ $ $

FLEXIBLE SPENDINGAssets:

16,933 125,151 9,467 Cash and Temporary Investments 132,617 $ $ $ $

Liabilities:2,123 - 2,123 Accounts Payable - $ $ $ $2,245 128 2,123 Due to Other Funds 250 7,344 125,023 - Due to Student Groups 132,367

Total Liabilities 125,151 11,712 4,246 132,617 $ $ $ $

TOTAL AGENCY FUNDSAssets:

3,864,733 1,243,211 3,748,769 Cash and Temporary Investments 1,359,175 $ $ $ $

Liabilities:3,237 - 3,237 Accounts Payable - $ $ $ $

178,505 89,694 172,825 Payroll Deductions & Withholdings 95,374 3,419 197 3,237 Due to Other Funds 379

3,675,466 1,153,320 3,565,364 Due to Student Groups 1,263,422

Total Liabilities 1,243,211 3,860,627 3,744,663 1,359,175 $ $ $ $

97

REQUIRED TEA SCHEDULES

98


SCHEDULE OF DELINQUENT TAXES RECEIVABLE

FISCAL YEAR ENDED AUGUST 31, 2018

Last 10 Years Ended

August 31

Tax Rates

Debt ServiceMaintenance Tax Purposes

Value for School

Assessed/Appraised

(1) (2) (3)

VariousVariousand prior years2009 $ Various

0.1498001.040000 5,488,700,507 2010

0.1798001.040000 5,216,927,340 2011

0.1998001.170000 4,892,942,008 2012

0.0698001.040000 4,869,365,974 2013

0.1998001.170000 4,844,803,071 2014

0.0698001.170000 5,236,086,966 2015

0.0698001.170000 5,478,717,560 2016

0.0698001.170000 5,685,937,894 2017

0.0698001.170000 6,052,055,839 (School year under audit)2018

1000 TOTALS

99

EXHIBIT J-1

9/1/2017

Balance

Beginning

Total Levy

Year's

Current

(20)(10) (50)

Ending

Balance

8/31/2018

(40)

Entire

Year's

Adjustments

(31)

Maintenance

Collections

(32)

Debt Service

Collections

- 1,899,148 111,493 (34,065)$ $ $ $ $ 1,742,540 $ 11,050

- 279,316 24,279 (3,854) 246,985 4,197

- 329,691 30,387 (2,727) 290,740 5,838

- 385,615 92,628 (1,759) 285,702 5,526

- 405,910 108,723 44,293 320,594 20,887

- 524,946 174,268 25,690 365,97210,397

- 725,739 259,555 66,730 517,429 15,485

- 1,145,855 449,763 13,466 682,727 26,832

- 2,900,420 1,462,835 (134,920) 1,215,395 87,270

74,341,861 - 68,129,235 713,171 2,714,906 4,210,891

$ 8,382,990 $ 687,025 $ 70,843,166 $ 74,341,861 $ 8,596,640 $ 4,398,373

100

EXHIBIT J-2EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL - CHILD NUTRITION PROGRAM


Control

Data

CodesOriginal Final

(GAAP BASIS)

(Negative)

Positive or


Budgeted Amounts

REVENUES:1,490,000 1,490,000 460,671 (1,029,329)Total Local and Intermediate Sources $ $ $ $5700

491,030 491,030 591,563 100,533 State Program Revenues5800

25,294,000 25,294,000 22,936,670 (2,357,330)Federal Program Revenues5900

Total Revenues5020 27,275,030 27,275,030 23,988,904 (3,286,126)

EXPENDITURES:25,820,808 25,806,754 25,546,372 274,436 Food Services0035

51,294 51,231 43,043 8,251 Facilities Maintenance and Operations0051

200 200 - 200 Security and Monitoring Services0052



1,416,845 1,402,728 (1,600,511) (3,003,239)

OTHER FINANCING SOURCES (USES): - - 356,369 356,369 Transfers In7915

(2,200,000)(2,200,000) - 2,200,000 Transfers Out (Use)7961

Total Other Financing Sources (Uses) 7080 (2,200,000) (2,200,000) 356,369 2,556,369

1200 Net Change in Fund Balances (783,155) (797,272) (1,244,142) (446,870)


3000 Fund Balance - August 31 (Ending) $ 460,987 $ 446,870 $ - $ (446,870)

101

EXHIBIT J-3EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL - DEBT SERVICE FUND


Control

Data

CodesOriginal Final

(GAAP BASIS)

(Negative)

Positive or


Budgeted Amounts

REVENUES:5,281,616 5,281,616 4,683,328 (598,288)Total Local and Intermediate Sources $ $ $ $5700

8,461,092 4,802,895 8,295,757 (165,335)State Program Revenues5800

Total Revenues5020 10,084,511 13,742,708 12,979,085 (763,623)

EXPENDITURES:

Debt Service:8,375,000 8,439,000 8,375,000 - Principal on Long-Term Debt0071

5,890,300 5,826,300 5,890,300 - Interest on Long-Term Debt0072

16,000 16,000 7,250 8,750 Bond Issuance Cost and Fees0073



(4,196,789) (538,592) (1,293,465) (754,873)

OTHER FINANCING SOURCES (USES): 4,000,000 4,000,000 4,000,000 - Transfers In7915

1200 Net Change in Fund Balances (196,789) 3,461,408 2,706,535 (754,873)


3000 Fund Balance - August 31 (Ending) $ 3,408,861 $ 7,067,058 $ 6,312,185 $ (754,873)

102

STATISTICAL SECTION

103


STATISTICAL SECTION OVERVIEW

This part of the District’s comprehensive annual financial report presents detailed information to provide the readers of the District’s financial information with a background for a better understanding of the information in the financial statements, note disclosures, and required supplementary information.

The statistical section is organized in the following sections:

Government-Wide Information – This section contains schedules that reflect current year and past years amounts on the District’s government-wide financial statements.

Fund Information – This section contains schedules that reflect current year and past years amounts on the District’s fund financial statements.

Revenue Capacity Information – This section contains schedules that provide information about the District’s most significant major own-source revenue, which is property taxes, and the factors that impact the District’s ability to generate such revenue.

Debt Capacity Information – This section contains schedules that provide information on the District’s current levels of outstanding debt, the District’s ability to repay the debt, and to issue additional debt in the future.

Demographic and Economic Information – This section contains schedule that provide an understanding of the environment within which the District’s financial activities take place.

Operating Information – This section contains schedules that provide information about the services the District provides and the activities it performs; such as, employees and facilities of the District.

104

EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT TABLE L-1NET POSITION BY COMPONENT LAST TEN YEARS

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Governmental Activities

Net Investment in Capital Assets $-44,644,199 $29,654,898 $64,968,013 $83,136,229 $87,437,667 $98,599,997 $110,583,748 $136,304,611 $133,125,990 $136,040,094

Restricted 121,099,606 35,363,258 33,509,188 26,268,527 18,970,678 18,405,071 22,688,172 12,678,703 17,179,645 16,006,942

Unrestricted 48,328,557 75,938,799 69,952,250 83,762,296 95,068,565 99,239,178 47,026,521 41,024,479 25,116,152 -143,641,554

Total Net Position $124,783,964 $140,956,955 $168,429,451 $193,167,052 $201,476,910 $216,244,246 $180,298,441 $190,007,793 $175,421,787 $8,405,482

Source: Financial Statements and Independent Auditor's Report

Statement of Net Position (Exhibit A-1)

2009-2018 Fiscal Year End 8/31

*Implementation of GASB 65

105

TABLE L-2GOVERNMENTAL /BUSINESS TYPE ACTIVITIES EXPENSES AND PROGRAM REVENUES

LAST TEN YEARS

Expenses 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Governmental Activities:

Instruction $165,985,139 $176,582,441 $171,065,907 $172,254,593 177,594,768 190,967,799 203,585,610 227,212,376 211,053,219 148,893,621Instructional Resource and Media Services 8,205,956 7,236,460 6,929,361 7,078,509 6,675,828 7,070,144 7,692,864 8,974,400 11,008,067 7,008,819Curriculum and Staff Development 3,091,953 3,371,704 2,346,471 2,950,348 2,929,692 3,439,433 3,320,581 4,438,804 3,652,465 2,903,874Instructional Leadership 4,600,585 4,929,278 4,542,319 3,810,298 3,901,851 4,602,875 4,579,919 4,901,058 4,886,065 3,524,954School Leadership 11,736,985 12,081,494 12,447,528 12,784,055 13,358,404 14,443,783 14,682,919 16,049,282 16,082,373 13,146,963Guidance, Counseling and Evaluation Services 11,612,991 12,122,093 12,199,195 11,503,798 11,554,367 12,392,137 12,469,269 13,790,627 13,856,167 9,664,445Social Work Services 1,949,917 2,039,504 2,000,653 1,812,956 1,710,233 1,851,491 1,631,437 1,654,839 2,839,128 1,372,957Health Services 3,033,372 3,059,172 2,951,975 2,815,981 3,016,841 3,185,731 3,391,369 3,846,549 4,769,518 2,768,578Student Transportation 10,533,839 10,489,366 11,011,748 11,151,915 11,600,242 12,320,497 11,758,431 12,735,130 13,837,917 10,635,297Food Services 16,554,852 17,516,012 18,696,109 18,438,042 21,238,931 22,712,046 22,942,217 25,986,977 27,470,077 21,057,110Cocurricular/Extracurricular Activities 8,424,168 8,441,107 9,095,889 9,808,154 11,519,842 11,643,820 14,051,418 13,243,196 15,796,255 14,648,026General Administration 6,763,531 3,898,288 -1,633,250 -1,089,235 4,170,403 4,275,889 11,460,961 8,756,875 13,447,834 5,303,132Facilities Maintenance and Operations 25,709,470 26,365,148 25,784,499 25,726,734 26,065,332 26,651,778 30,194,455 29,036,530 32,612,516 25,971,596Security and Monitoring Services 3,533,911 3,189,022 3,161,415 3,033,165 3,291,423 4,745,171 4,715,464 5,515,252 5,910,377 4,077,370Data Processing Services 1,008,076 1,150,170 1,237,705 1,091,735 1,054,343 2,063,968 545,151 744,958 580,136 1,271,027Community Services 962,097 1,066,826 1,044,418 933,399 849,157 940,583 953,549 985,047 933,370 774,324Debt Service-Interest and Fees on Long Term Debt 9,528,443 9,368,463 10,779,985 10,199,032 9,427,911 9,018,750 8,833,859 6,729,359 5,883,369 5,414,237Facilities Acquisition and Construction 3,421,034 4,581,286 5,119,717 5,485,643 6,751,605 7,679,627 - - 0 0Payments Related to Shared Services Arrangement - - - - - - - - 0 0Payment to Juvenile Justice Alternative Ed. Prg 42,000 42,000 42,000 42,000 42,000 42,000 35,917 42,000 50,423 61,633Other Intergovernmental Charges 751,263 787,166 744,202 743,591 799,415 816,113 833,874 884,301 880,465 919,175Total Governmental Activities Expenses 297,449,582 308,317,000 299,567,846 300,574,713 317,552,588 340,863,635 357,679,264 385,527,560 385,549,740 279,417,138Program Revenues

Charges for Services:Instruction $953,515 $920,056 $964,304 $1,508,401 1,163,681 1,297,964 945,229 262,389 267,583 279,317Instructional Resources and Media Services - - - - - - - - 80,780 84,323Curriculum and Staff Development - - - - - - - - - -Instructional Leadership - - - - - - - - - -School Leadership - - - - - - - - 20,195 21,080Guidance, Counseling and Evaluation Services - - - - - - - - - -Social Work Services - - - - - - - - 20,195 21,080Health Services - - - - - - - - - -Student Transportation 1,018,616 925,061 1,000,969 1,582,108 1,217,115 1,351,455 1,713,553 1,598,027 20,195 21,080Food Services 1,848,368 1,816,284 1,822,141 1,774,884 1,354,761 1,230,708 956,233 763,089 540,058 451,000Cocurricular/Extracurricular Activities 365,269 414,741 509,496 419,834 824,920 779,392 643,067 461,045 20,195 21,080General Administration - - - - - - 273,958 184,411 - -Facilities Maintenance and Operations - - - - - - - - 40,390 42,161Security and Monitoring Services - - - - - - - - - -Data Processing Services - - - - - - - - - -Community Services - - - - - - - - - 1,471,510Debt Service-Interest and Fees on Long Term DebtFacilities Acquisition and Construction - - - - - - - - - -Other Intergovernmental Charges

Operating Grants/Capital and Contributions 43,280,139 62,289,502 82,419,788 63,440,454 59,706,678 64,762,030 65,068,988 70,587,780 65,552,265 51,660,392Total Governmental ActivitiesProgram Revenues 47,465,907 66,365,644 86,716,698 68,725,681 64,267,155 69,421,549 69,601,028 73,856,741 66,561,856 54,073,023Net Government ActivitiesRevenue/(Expenses) $(249,983,675) $(241,951,356) $(212,851,148) $(231,849,032) $(253,285,433) $(271,442,086) $(288,078,236) $(311,670,819) $(318,987,884) $(225,344,115)


Statement of Activities( Exhibit B-1)




106

EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT TABLE L-3GENERAL/BUSINESS REVENUE AND CHANGES IN NET POSITION LAST TEN YEARS

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Net Governmental Activities

Revenue/(Expenses)$(249,983,675) $(241,951,356) $(212,851,148) $(231,849,032) $(253,285,433) $(271,442,086) $(288,078,236) $(311,670,819) $(318,987,884) $(225,344,115)

General Revenue and Changes in Net Position:

Governmental Activities:

Property Taxes-General59,545,888 58,374,457 54,662,721 58,155,992 49,941,195 59,798,574 60,637,036 63,090,444 66,985,044 70,670,559

Property Taxes-Debt Services 8,449,829 10,106,027 11,120,864 3,799,802 9,832,696 3,685,936 3,620,710 3,757,057 4,025,826 4,363,739

State Aid - Formula Grants - - - - - - 225,373,176 240,663,967 223,268,041 -

Grants & Contributions Not Restricted 184,686,391 189,526,245 179,554,637 192,808,656 197,478,320 222,227,255 5,647,510 11,860,020 6,889,618 190,671,757

Investment Earnings 1,947,152 366,672 223,791 285,037 463,384 430,062 257,258 555,629 1,090,037 2,044,952

Miscellaneous 1,523,845 1,757,426 1,143,327 1,555,022 - 5,824 1,997,766 2,239,768 2,120,800 11,531,894

Special Item - Resource - - - - - 286,770 4,383,981 - - -

Special Item - (Use) - - - - - - - - - -

Sale of Real Property - - - - - - - - 22,512 -

Transfers In (Out) (1,318,254) (1,978,760) (117,652) (17,880) 3,879,695 (225,000) - - - 27,437

Total Governmental Activities254,834,851 258,152,067 246,587,688 256,586,629 261,595,290 286,209,421 301,917,437 322,166,885 304,401,878 279,310,338

Changes in Net Position $4,851,176 $16,200,711 $33,736,540 $24,737,597 $8,309,857 $14,767,335 $13,839,201 $10,496,066 $(14,586,006) $53,966,223


Statement of Activities( Exhibit B-1)



107

EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT TABLE L-4FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN YEARS

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018General FundPRE GASB 54Reserved Fund Balances:

Investment in Inventory $971,921 $1,336,355 - - - - - - - - -Retirement of Long-term Debt 5,162,182 - - - - - - - - - -Outstanding Encumbrances - - - - - - - - - - -Reserve for Food Service 4,107,039 3,706,802 - - - - - - - - -Other Reserves for Fund Balance 1,539,898 1,539,898 1,539,898 - - - - - - - -Other Designated of Fund Balance 827,429 827,429 - - - - - - - - -

Unreserved and Undesignated: - - - - - - - -Reported in General Fund 22,062,634 30,883,353 51,198,529 - - - - - - - -

POST GASB 54Non-spendable:

Inventories - - - 1,268,015 1,236,506 1,307,779 1,534,399 1,755,295 2,186,491 1,674,835 2,221,239Prepaid Items - - - - - - - - - - -

Restricted:Federal/State Funds Grant Restrictions - - - 8,800,972 9,138,575 8,137,297 7,300,385 6,297,709 3,318,349 419,379 -957,767Other Restrictions of Fund Balance - - - - - - - - - - -

Assigned:Construction - - - - - - - - - - -Capital Expenditures for Equipment - - - - - - - - - - -Other - - - 6,264,043 6,264,043 - - - - - -

Unassigned: - - - 43,588,317 52,858,037 61,455,712 63,820,776 67,332,807 70,792,310 64,571,358 69,656,564Total General Fund Balance $34,671,103 $38,293,837 $52,738,427 $59,921,347 $69,497,161 $70,900,788 $72,655,560 $75,385,811 $76,297,150 $66,665,572 $70,920,036All Other Governmental FundsPRE GASB 54Reserved, Reported In:Special Revenue

Other Reserves 1,058,806 785,844 690,352 - - - - - - - - Debt ServiceRetireinent of Long Term Debt

Retireinent of Long Term Debt 8,259,640 8,259,640 4,062,445 - - - - - - - -Capital. Projects

Outstanding Encumbrances - 3,695 809,921 - - - - - - - -Construction 6,695,007 3,086,322 - - - - - - - - -

Unreserved and Undesignated:Reported in General Fund - (2,662,075) - - - - - - - - -Reported in Special Revenue Funds - 362,878 (607,801) - - - - - - - -Reported in Capital Projects Funds 2,911,270 103,879,363 34,199,390 - - - - - - - -

POST GASB 54Restricted:

Federal/State Funds Grant Restrictions - - - 543,343 405,434 - 202,192 20,077 9,840 5,539 5,531Capital Acquistion and Contractual Obligati - - - 6,783,433 21,426 17,732 17,749 17,756 15,313 54 54Retirement of Long Term Debt - - - 3,508,344 5,840,560 7,039,933 1,007,939 3,369,270 6,768,724 3,605,650 6,312,185Other Restrictions of Fund Balance - - - - - - - - - - -

Committed:Construction - - - 2,100,000 - 3,180,728 11,464,440 9,993,806 10,818,991 13,568,402 8,908,968Capital Expenditures for Equipment - - - 5,000,000 4,598,489 197,205 - - - - -Other Committments of Fund Balance - - - 509,053 - 381,581 285,759 306,003 395,299 371,973 424,842

Assigned:Construction - - - - 16,202 16,202 - - - - -

Unassigned: - - - 32,635 - - - - - - -Total 18,924,723 113,715,667 39,154,307 18,476,808 10,882,111 10,833,381 12,978,079 13,706,912 18,008,167 17,551,618 15,651,580Total Governmental Funds -Fund Balance $53,595,826 $152,009,504 $91,892,734 $78,398,155 $80,379,272 $81,734,169 $85,633,639 $89,092,723 $94,305,317 $84,217,190 $86,571,616Governmental Funds -Beginning Fund Balance 49,113,106 53,595,826 152,009,504 91,892,734 78,398,155 80,379,272 81,734,169 85,633,639 89,092,723 94,305,317 84,217,190Net Change in Fund Balance 4,482,720 98,413,678 (60,116,770) (13,494,579) 1,981,116 1,354,896 3,899,470 3,459,084 5,212,594 (10,088,127) (2,354,428)Ending Fund Balance $53,595,826 $152,009,504 $91,892,734 $78,398,155 $80,379,272 $81,734,169 $85,633,639 $89,092,723 $94,305,317 $84,217,190 $86,571,616

Source: Financial Statements and Independent Auditor's ReportBalance Sheet - Governmental Funds (Exhibit C-1) 2007-2016Statement of Revenues, Expenditures, and Changes in Fund Balances (Exhibit C-2) 2007-2016

2009-2018 Fiscal Year End 8/31Per GASB 54 - 2011

108

EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT TABLE L-5GOVERNMENTAL FUND REVENUE BY SOURCELAST TEN YEARS

Fiscal Property Per Capita On Behalf Federal

Year Tax Tuition Other and Foundation TRS Payments Other Programs Total

2009 68,881,926 16,388 6,171,116 165,852,117 8,084,295 3,890,259 49,510,999 302,407,100

2010 70,196,041 69,000 4,482,625 165,849,404 8,714,152 5,151,399 71,570,240 326,032,861

2011 68,163,356 39,913 4,489,709 175,824,027 8,019,270 3,444,802 74,057,824 334,038,901

2012 64,738,099 36,790 5,609,467 187,723,601 8,494,425 4,432,615 54,921,108 325,956,105

2013 64,701,043 30,239 4,813,834 192,628,463 8,514,429 1,856,683 53,578,234 326,122,925

2014 64,900,752 39,415 5,056,491 217,485,366 7,759,328 2,043,807 59,700,284 356,985,443

2015 67,155,900 39,324 5,420,489 225,373,176 7,894,573 5,378,960 56,842,216 368,104,638

2016 69,510,947 39,483 4,635,248 240,663,967 9,587,424 5,386,712 60,153,609 389,977,390

2017 70,511,979 36,936 4,889,617 223,268,041 11,127,334 2,900,696 55,321,728 368,056,332

2018 76,965,601 29,062 9,685,685 233,622,479 12,086,097 361,487 55,585,247 388,335,658


Statement of Revenues, Expenditures, and Changes in Fund Balances (Exhibit C-2)


Local and Intermediate Sources State Programs

109

EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT TABLE L-6GOVERNMENTAL FUND EXPENDITURES BY FUNCTION LAST TEN YEARS

Capital Inter-Outlay : governmetal :

Instructional And Instructional Support Support Ratio of

Instructional and Services Administrative Services Debt Service Debt Facilities Inter- Total Debt Services

Fiscal Related School Student Support Non-Student Ancillary Service Interest Service Acquisition governmentalGovernmental

Fund to Non-Capital

Year Services Leadership Other Services Based Services Prinicpal and Other Other Fees&

Construction Charges Expenditures Expenditures

2009 171,109,598 15,975,139 51,805,710 5,412,061 30,152,431 961,559 8,972,601 14,403,429 618,529 17,417,266 793,263 317,621,586 7.79%

2010 181,311,876 16,651,589 52,531,964 5,558,832 30,435,985 1,066,286 10,238,661 12,530,361 22,398 75,028,748 829,166 386,205,866 7.32%

2011 176,998,332 16,737,537 58,143,384 5,334,221 30,415,627 1,043,910 9,980,000 12,306,009 13,105 29,478,460 786,202 341,236,787 7.15%

2012 176,483,843 16,179,257 54,910,754 4,931,023 30,610,314 918,459 12,340,500 9,858,099 340,933 16,781,035 785,591 324,139,808 7.22%

2013 181,708,244 17,144,732 60,500,153 5,549,975 30,451,437 870,168 12,845,000 9,420,066 7,845 5,314,891 841,415 324,653,926 6.97%

2014 195,944,474 18,632,540 64,981,809 5,592,365 34,017,955 944,743 13,265,000 9,009,000 9,750 9,891,994 858,113 353,147,743 6.49%

2015 205,806,708 19,064,322 65,231,303 5,921,164 35,293,697 967,429 14,540,000 7,734,510 447,028 13,376,754 869,791 369,252,706 6.26%

2016 217,194,094 19,772,187 69,921,937 6,426,223 35,164,532 946,257 15,070,000 6,649,141 859,247 12,469,900 926,301 385,399,819 5.82%

2017 210,879,440 20,095,696 70,776,004 6,527,187 37,954,006 868,640 14,185,000 6,652,398 10,000 9,062,713 930,888 377,941,971 5.65%

2018 218,935,437 21,577,797 73,287,717 6,826,764 36,971,598 1,058,500 10,320,000 6,184,766 8,500 9,631,779 980,808 385,783,667 4.39%


Statement of Revenues, Expenditures, and Changes in Fund Balances (Exhibit C-2) 2009-2018 Fiscal Year End 8/31

Current : Debt Service :

110

EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT TABLE L-7GOVERNMENTAL FUNDS OTHER SOURCES, USES AND CHANGES IN FUND BALANCESLAST TEN YEARS

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Excess of Revenue Over

(Under) Expenditures $(15,214,486) $(60,173,005) $(7,197,886) $1,816,297 $1,468,999 $3,837,700 $(1,148,068) $4,577,572 $(9,885,639) $2,551,991

Other Financing Sources (Uses)

Issuance of Bonds114,690,000 - - - - - - - - -

Refunding Bonds Issued- - - - - - 37,600,000 81,625,000 - -

Sale of Real and Personal Property- 27,736 40,441 49,020 110,897 286,770 56,601 - 22,512 27,437

Proceeds from Sales of Fixed Assets- - - - - - - - - -

Issuance of Capital Leases- - - - - - - - - -

Issuance of Loans- - - - - - - - - -

Issuance on Non-Current Debt- 2,035,000 9,045,000 23,685,000 - - - - - -

Transfer In20,440,969 32,442,819 40,287,384 47,847,682 45,713,175 61,221,031 70,341,675 69,347,303 69,521,930 58,031,288

Premium on Issuance of Bonds1,466,926 - 510,450 986,764 - - 5,630,884 16,481,267 - -

Prepaid Interest560,038 - 37,498 - - - - - - -

Other Resources- - - - - - 4,327,380 - - -

Transfer Out(20,440,969) (32,442,819) (40,287,384) (47,847,682) (45,938,175) (61,446,031) (70,566,675) (69,572,303) (69,746,930) (58,256,288)

Other Uses(3,088,800) (2,006,498) (9,666,041) (24,555,965) - - (42,782,713) (97,246,244) - -

Total Other Financing Sources (Uses) 113,628,164 56,238 (32,652) 164,819 (114,103) 61,770 4,607,152 635,022 (202,488) (197,563)

Special Items - - - - - - - - - -

Extraordinary Items (Resources) - - - - - - - - - -

Net Changes in Fund Balances $98,413,678 $(60,116,767) $(7,230,538) $1,981,116 $1,354,896 $3,899,470 $3,459,084 $5,212,594 $(10,088,127) $2,354,428

Source: Financial Statements and Independent Auditor's ReportStatement of Revenues, Expenditures, and Changes in Fund Balances (Exhibit C-2)


111

EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT TABLE L-8GOVERNMENTAL FUND EXPENDITURES BY FUNCTION PER AVERAGE DAILY ATTENDANCELAST TEN YEARS

Capital Inter-Outlay : governmetal :

Instructional and Instructional Support Support Debt Total

Average Instructional and Services Administrative Services Debt Service Facilities Inter- Governmental

Fiscal Daily Related School Student Support Non-Student Ancillary Service Interest Acquisition Governmental Fund

Year Attendance Services Leadership Other Services Based Services Prinicpal and Other&

Construction Charges Expenditures

2009 28,721 5,958 556 1,804 188 1050 33 312 523 606 28 11,059

2010 29,753 6,094 560 1,766 187 1023 36 344 422 2522 28 12,980

2011 30,835 5,740 543 1,886 173 986 34 324 400 956 25 11,066

2012 31,049 5,684 521 1,769 159 986 30 397 328 540 25 10,440

2013 31,277 5,810 548 1,934 177 974 28 411 301 170 27 10,380

2014 31,719 6,178 587 2,049 176 1072 30 418 284 312 27 11,134

2015 31,932 6,445 597 2,043 185 1105 30 455 256 419 27 11,564

2016 32,301 6,724 612 2,165 199 1089 29 467 232 386 29 11,932

2017 32,050 6,580 627 2,208 204 1184 27 443 208 283 29 11,792

2018 31,648 6,918 682 2,316 216 1168 33 326 196 304 31 12,190

Source: Financial Statements and Independent Auditor's ReportPEIMS DATA Report (PFR7D001) 2009-2018Statement of Revenues, Expenditures and Changes in Fund Balances (Exhibit C-2)2009-2018 Fiscal Year End 8/31

Current : Debt Service :

112

EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT TABLE L-9ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTYLAST TEN YEARS

Ratio of Total

Taxable Assessed Value

Fiscal Personal Property Less: Total Taxable Actual to Total Direct

Year Real Property & Mineral Exemptions Assessed Value Taxable Value Actual Taxable Value Tax Rate

2009 4,824,225,772 2,462,265,161 1,831,660,568 5,454,830,365 7,286,490,933 74.86% 1.1898

2010 6,551,765,571 1,513,505,936 2,576,571,000 5,488,700,507 8,065,271,507 68.05% 1.2198

2011 6,117,365,844 1,734,116,480 2,634,554,984 5,216,927,340 7,851,482,324 66.45% 1.2398

2012 6,178,716,826 1,381,027,618 2,666,802,436 4,892,942,008 7,559,744,444 64.72% 1.2398

2013 7,149,018,485 391,580,686 2,671,233,197 4,869,365,974 7,540,599,171 64.58% 1.2398

2014 7,111,799,759 439,194,017 2,706,190,705 4,844,803,071 7,550,993,776 64.16% 1.2398

2015 7,270,474,625 447,543,253 2,481,930,912 5,236,086,966 7,718,017,878 67.84% 1.2398

2016 8,359,854,983 311,310,779 3,192,448,202 5,478,717,560 8,671,165,762 63.18% 1.2398

2017 8,706,262,370 194,397,309 3,214,721,785 5,685,937,894 8,900,659,679 63.88% 1.2398

2018 9,535,174,091 194,956,711 3,678,074,963 6,052,055,839 9,730,130,802 62.20% 1.2398


Schedule of Delinquent Taxes Receivable (Exhibit J-1)

Assessment Roll Grand Totals from Hidalgo County Appraisal District (Supplement I)


Actual Value

113

EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT TABLE L-10PROPERTY LEVIES AND COLLECTIONSLAST TEN YEARS

Collection

Fiscal Total Original Total Adjusted Subsequent

Year Tax Levy Tax Levy Amount% of Original

Levy Years Amount% of Adjusted

Levy

2009 $66,080,091 $67,245,860 $63,342,526 95.86% $3,724,358 $67,066,884 99.73%

2010 68,330,486 68,369,902 64,364,972 94.20% 3,757,945 68,122,917 99.64%

2011 66,259,936 66,240,250 62,566,175 94.43% 3,383,335 65,949,510 99.56%

2012 62,261,828 62,184,158 59,095,543 94.91% 2,802,913 61,898,456 99.54%

2013 62,082,724 62,065,566 59,154,461 95.28% 2,590,512 61,744,972 99.48%

2014 62,191,111 62,111,335 59,288,513 95.33% 2,456,850 61,745,363 99.41%

2015 64,205,217 64,508,854 61,995,211 96.56% 1,996,215 63,991,425 99.20%

2016 67,092,002 66,776,137 64,385,208 95.97% 1,708,196 66,093,404 98.98%

2017 69,661,093 69,041,739 66,276,240 95.14% 1,550,105 67,826,344 98.24%

2018 74,341,861 75,055,032 72,340,126 97.31% - 72,340,126 96.38%




Collected within the

Fiscal year of Levy Total Collections to Date

114

EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT TABLE L-11ALLOCATION OF PROPERTY TAX RATES AND LEVIESLAST TEN YEARS

Debt Debt Original

Fiscal General Service General Service Levy

Year Fund Fund Total Fund Fund Total

2009 1.0400 0.1498 1.1898 57,760,375 8,319,716 66,080,091

2010 1.0400 0.1798 1.2198 58,258,490 10,071,997 68,330,486

2011 1.0400 0.1998 1.2398 55,581,814 10,678,122 66,259,936

2012 1.1700 0.0698 1.2398 58,756,524 3,505,304 62,261,828

2013 1.0400 0.1998 1.2398 52,077,781 10,004,943 62,082,724

2014 1.1700 0.0698 1.2398 58,689,789 3,501,322 62,191,111

2015 1.1700 0.0698 1.2398 60,590,502 3,614,715 64,205,217

2016 1.1700 0.0698 1.2398 63,314,762 3,777,240 67,092,002

2017 1.1700 0.0698 1.2398 65,739,215 3,921,878 69,661,093

2018 1.1700 0.0698 1.2398 70,018,274 4,323,587 74,341,861



Detail General Ledger Reports


Tax Levies

Tax Rates

(Per $100 of Assessed Value)

115

EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT TABLE L-12PROPERTY TAX RATES-DIRECT AND OVERLAPPING GOVERNMENTS(PER $100 ASSESSED VALUATION)LAST TEN YEARS

Total Direct

and Original

Fiscal Tax Hidalgo South Drainage EMS Districts Edinburg City of Overlapping Levy

Year Year County Texas ISD District No.1 No. 1-4 CISD STC Edinburg Rates Total

2009 2008 0.5900 0.0492 0.0700 0.0715 1.1898 0.1498 0.6350 2.7553 66,080,091

2010 2009 0.5900 0.0492 0.0725 0.0736 1.2198 0.1491 0.6350 2.7892 68,330,486

2011 2010 0.5900 0.0492 0.0725 0.0778 1.2398 0.1497 0.6350 2.8140 66,259,936

2012 2011 0.5900 0.0492 0.0733 0.0815 1.2398 0.1507 0.6350 2.8195 62,261,828

2013 2012 0.5900 0.0492 0.0750 0.1066 1.2398 0.1507 0.6350 2.8463 62,082,724

2014 2013 0.5900 0.0492 0.0957 0.1082 1.2398 0.1500 0.6350 2.8679 62,191,111

2015 2014 0.5900 0.0492 0.0957 0.1098 1.2398 0.1850 0.6350 2.9045 64,205,217

2016 2015 0.5900 0.0492 0.0951 0.1118 1.2398 0.1850 0.6350 2.9059 67,092,002

2017 2016 0.5900 0.0492 0.0951 0.1152 1.2398 0.1850 0.6350 2.9093 69,661,093

2018 2017 0.5800 0.0492 0.0951 0.1095 1.2398 0.1850 0.6350 2.8936 74,341,861



Hidalgo County Tax Assessor-Collector Tax Rate Schedule (website)

City of Edinburg


116

EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT TABLE L-13PRINCIPAL PROPERTY TAXPAYERS2018 AND 2009

Tax Year2017

AssessedValuation

PercentageTotal Assessed

Valuation

Tax Year2008

AssessedValuation

PercentageTotal Assessed

Valuation

1 South Texas Elec Coop-Red Gate $153,130,490 1.92% 1 Shell Western E&P, Inc. $472,655,320 7.95%

2 Merit Energy Company 108,570,825 1.36% 2 Chevron USA, Inc. 456,481,610 7.68%

3 AEP Texas Central Co. 76,415,830 0.96% 3 Smith Production Inc 117,567,400 1.98%

4 Day Surgery at Renaissance LLC 49,810,378 0.62% 4 Calpine Construction Finance Co. LP 97,713,920 1.64%

5 Calpine Construction Finance (Magic VY GN) 49,743,260 0.62% 5 Chesapeake Operating 91,114,530 1.53%

6 Electric Transmission of Texas 49,024,070 0.61% 6 El Paso Production Oil & Gas 82,534,700 1.39%

7 Day Surgery at Renaissance 43,516,451 0.54% 7 Trenton Street Corporation 58,908,315 0.99%

8 The Shoppes at Rio Grande Valley LP 37,020,422 0.46% 8 AEP Texas Central Co. 40,686,860 0.68%

9 Trenton Street Corporation 34,026,931 0.43% 9 Newfield Exploration Company 37,175,320 0.63%

10 EDP Renewables NA-Los Mirasole 25,000,000 0.31% 10 Day Surgery at Renaissance 34,191,752 0.58%

$626,258,657 7.84% $1,489,029,727 25.04%

Source: Hidalgo Appraisal District

Top Taxpayer 2017 & 2008

Edinburg Approval Tax Roll

Fiscal Year 2018 Fiscal Year 2009

117

EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT TABLE L-14OUTSTANDING DEBT BY TYPE LAST TEN YEARS

Ratio of Total Total Debt

General **Total Debt Debt to Estimated to Average

Fiscal Obligation Premium on Accretion Maintenance Loans Capital Total to Personal ***Total Debt Actual Daily

Year Bonds Bonds of Bonds Tax Notes Payable Leases Debt Income to Per Capita Taxable Value Membership

2009 222,794,976 - 2,728,426 24,665,000 - 418,685 250,607,087 13.26% 1,823 3.44% 8,177

2010 214,725,000 - 1,539,129 22,955,000 - - 239,219,129 10.82% 1,671 2.97% 7,497

2011 206,660,000 - - 21,125,000 - - 227,785,000 10.30% 1,595 2.90% 6,889

2012 196,215,000 - - 19,210,000 - - 215,425,000 13.17% 1,561 2.85% 6,467

2013 185,375,000 - - 17,205,000 - - 202,580,000 8.23% 1,418 2.69% 6,032

2014 174,180,000 - - 15,135,000 - - 189,315,000 7.32% 1,282 2.51% 5,568

2015 157,610,000 5,255,492 - 13,010,000 - - 175,875,492 6.76% 1,151 2.28% 5,146

2016 136,700,000 20,612,218 - 10,830,000 - - 168,142,218 5.89% 1,082 1.94% 4,878

2017 124,405,000 19,487,678 - 8,940,000 - - 152,832,678 5.00% 952 1.72% 4,413

2018 116,030,000 18,363,138 - 6,995,000 - - 141,388,138 4.46% 861 1.45% 4,147


Notes to Financial Statements Long-Term Debt Obiligations 2009-2018

Texas Academic Performance Reports (TAPR formerly AEIS Report)


Other Governmental Activities DebtGeneral Bonded Debt

118

EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT TABLE L-15DIRECT AND OVERLAPPING DEBT GOVERMENTAL ACTIVITIES DEBT

***EstimatedShare of

**Percentage Direct and*Gross Debt Applicable Overlapping

Political Subdivision Amounts As of to ECISD Debt

DIRECT DEBT

Edinburg CISD - Bonds $134,393,138 08/31/18 100.00% $134,393,138

Edinburg CISD - Maintenance Tax Notes$6,995,000 08/31/18 100.00% 6,995,000

Edinburg CISD - Loans - 08/31/18 -

Edinburg CISD - Leases - 08/31/18 -

$141,388,138

OVERLAPPING DEBT

City Of Edinburg $49,605,000 08/31/18 99.40% $49,307,370

Hidalgo County 196,855,000 08/31/18 19.06% 37,520,563

Hidalgo Co Drainage District #1 129,300,000 08/31/18 17.90% 23,144,700

City Of McAllen 91,450,000 08/31/18 2.68% 2,450,860

South Texas College 143,065,000 08/31/18 15.55% 22,246,608

Total Net Overlapping Debt 134,670,101

Total Direct and Overlapping Debt: $276,058,239

* Gross Debt Amounts include related premium and accretion on refunding bonds.

** Overlapping percentage is calculated as follows:Shared market value between entities from the Appraisal

District divided by the total market value of each entity.

*** The overlapping debt is calculated as follows:The gross debt multiplied by the overlapping percentage = overlapping debt

Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the District. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and the businesses of the District. This process recognizes that, when considering the districts ability to issue and repay long term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.

Source: Municipal Advisory Council of Texas

119

EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT TABLE L-16COMPUTATION OF LEGAL DEBT MARGIN LAST TEN YEARS

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Assessed Valuation $5,454,830,365 $5,488,700,507 $5,216,927,340 4,892,942,008 $4,869,365,974 $4,844,803,071 5,236,086,966 5,478,717,560 5,685,937,894 6,052,055,839

Debt Limit-10% of

Assessed Valuation $545,483,037 $548,870,051 $521,692,734 $489,294,201 $486,936,597 $484,480,307 $523,608,697 $547,871,756 $568,593,789 $605,205,584

General Obligation Bonds 222,794,976 214,725,000 206,660,000 196,215,000 185,375,000 174,180,000 157,610,000 136,700,000 124,405,000 116,030,000

Deduct Amount Available in

Debt Services Fund(5,597,565) (4,062,447) (3,508,343) (5,840,561) (7,039,932) (1,007,940) (3,369,270) (6,768,724) (3,605,650) (6,312,185)

Net General Bonded Debt 217,197,412 210,662,553 203,151,657 190,374,439 178,335,068 173,172,060 154,240,730 129,931,276 120,799,350 109,717,815

Maintenance Tax Note 24,665,000 22,955,000 21,125,000 19,210,000 17,205,000 15,135,000 13,010,000 10,830,000 8,940,000 6,995,000

Loans Payable- - - - - - - - - -

Capital Leases418,685 - - - - - - - - -

Less : Applicable Debt Margin 242,281,097 233,617,553 224,276,657 209,584,439 195,540,068 188,307,060 167,250,730 140,761,276 129,739,350 116,712,815

Legal Debt Margin $303,201,940 $315,252,497 $297,416,077 $279,709,761 $291,396,530 $296,173,247 $356,357,966 $407,110,480 $438,854,439 $488,492,769

Debt Margin as a

Percentage of the Debt Limit 55.58% 57.44% 57.01% 57.17% 59.84% 61.13% 68.06% 74.31% 77.18% 80.72%


Notes to Financial Statements Computation of ECISD's Legal Debt Margin


Tax Roll Report Hidalgo County Tax Assessor

Budgetary Comparison Schedule Exhibit J-4


120

EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT TABLE L-17RATIO OF NET GENERAL OBLIGATION BONDED DEBTTO ESTIMATED ACTUAL TAXABLE VALUE ANDPER AVERAGE DAILY MEMBERSHIPLAST TEN YEARS

Less: Amount Net General

Average Estimated General Available In Net Bonded Debt Obligation Bonds

Fiscal Daily Actual Obligation Premium Accretion Debt Bonded to Estimated Actual Per Average

Year Membership Taxable Value Bonds on Bonds of Bonds Service Debt Taxable Value Daily Membership

2009 30,647 7,286,490,933 222,794,976 - 2,728,426 5,597,565 219,925,838 3.02% 7,270

2010 31,910 8,065,271,507 214,725,000 - 1,539,129 4,062,447 212,201,682 2.63% 6,729

2011 33,066 7,851,482,324 206,660,000 - - 3,508,343 203,151,657 2.59% 6,250

2012 33,311 7,559,744,444 196,215,000 - - 5,840,561 190,374,439 2.52% 5,890

2013 33,582 7,540,599,171 185,375,000 - - 7,039,932 178,335,068 2.36% 5,520

2014 34,002 7,550,993,776 174,180,000 - - 1,007,940 173,172,060 2.29% 5,123

2015 34,175 7,718,017,878 157,610,000 5,255,492 - 3,369,270 159,496,222 2.07% 4,612

2016 34,466 8,671,165,762 136,700,000 20,612,218 - 6,768,724 150,543,494 1.74% 3,966

2017 34,629 8,900,659,679 124,405,000 19,487,678 - 3,605,650 140,287,028 1.58% 3,593

2018 34,098 9,730,130,802 116,030,000 18,363,138 - 6,312,185 128,080,953 1.32% 3,403



Assessment Roll Grand Totals Hidalgo County Tax Assessor-Collector


121

EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT TABLE L-18RATIO OF ANNUAL DEBT SERVICE FOR GENERAL BONDED DEBTTO TOTAL GENERAL FUND EXPENDITURESLAST TEN YEARS

Ratio of

Annual Total Annual Debt Service

Fiscal Debt General Fund to Total General

Year Principal Interest* Service Expenditures Fund Expenditures

2009 6,946,485 12,616,751 19,563,236 250,457,338 7.81%

2010 8,069,976 11,532,508 19,602,484 239,557,547 8.18%

2011 8,065,000 11,530,604 19,595,604 239,459,150 8.18%

2012 10,325,500 9,238,405 19,563,905 250,012,839 7.83%

2013 10,840,000 8,817,881 19,657,881 267,969,723 7.34%

2014 11,195,000 8,467,094 19,662,094 292,659,466 6.72%

2015 12,415,000 7,253,100 19,668,100 297,976,176 6.60%

2016 12,890,000 6,230,274 19,120,274 314,799,010 6.07%

2017 12,295,000 6,297,375 18,592,375 317,189,386 5.86%

2018 8,375,000 5,890,300 14,265,300 333,348,785 4.28%


Budgetary Comparison Schedule Exhibit J-5

Budgetary Comparison Schedule Exhibit G-1


122

EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT TABLE L-19PRINCIPAL EMPLOYERSCURRENT YEAR

2018 2009

Employees Rank

Percentageof Total CityEmployment Employees Rank

Percentageof Total CityEmployment*

University of Texas-RGV/UTPA 5,822 1 15.40% 2,850 3

Edinburg Consolidated ISD 4,878 2 12.90% 3,600 1

Doctor's Hospital @ Renaissance 4,600 3 12.17% 2,000 5

U.S. Customs & Border Patrol 3,386 4 8.96% 1,609 6

Hidalgo County 3,137 5 8.30% 2,211 4

Edinburg Regional Medical Center 3,000 6 7.94% 3,000 2

Teleperformance 1200 7 3.17% 355 10

Wal-Mart (3 locations) 903 8 2.39% 850 8

City of Edinburg 748 9 1.98% 505 7

Edinburg Regional 600 10 1.59% - -

Total Top Ten 28,274 74.79% 16,980

Source: Edinburg Economic Development Corporation

Texas Labor Market Information

* Data not available

Employer

123

EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT TABLE L-20DEMOGRAPHIC AND ECONOMIC STATISTICSLAST TEN YEARS

*Per Percentage

Capita Average Economically

Fiscal Estimated (1) *Personal Personal Median Unemployment Daily Disadvantage

Year Population Income Income Age Rate Attendance Students

2009 137,480 1,889,250,160 13,742 27.00 6.70% 28,721 85.0%

2010 143,139 2,210,066,160 15,440 26.50 9.00% 29,753 85.3%

2011 142,795 2,211,037,780 15,484 27.20 8.00% 30,835 85.4%

2012 137,996 1,635,804,584 11,854 27.00 7.80% 31,049 85.5%

2013 142,820 2,462,788,080 17,244 28.40 6.80% 31,277 85.4%

2014 147,684 2,586,537,576 17,514 28.50 6.15% 31,719 85.3%

2015 152,779 2,601,673,591 17,029 27.70 5.10% 31,932 85.1%

2016 155,396 2,854,624,520 18,370 28.80 5.90% 32,301 85.2%

2017 160,579 3,058,387,634 19,046 27.70 5.60% 32,050 85.3%

2018 164,268 3,169,058,256 19,292 27.00 4.90% 31,648 86.3%

Source: U.S. Census Bureau 2009-2018Economagic.com

PEIMS Edit + Report (PRF7D001)

Texas Academic Performance Report (TAPR formely AEIS)


(1)* Estimates based on 2010 County census factor multiplied by the District's average daily attendance

* MSA statistics (McAllen-Mission-Edinburg)

Department of Number website

124

EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT TABLE L-21

WORKFORCE COMPOSITION BY EMPLOYEE CLASSIFICATION LAST TEN YEARS

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Number of Employees

Teachers 2,033 2,058 2,065 2,079 2,194 2,229 2,265 2,278 2,306 2,291

Professional Support 375 383 394 360 376 398 426 428 425 421

Campus Administration 68 68 72 76 77 84 83 90 88 89

Central Administration 6 6 8 7 10 15 14 14 13 21

Educational Aides 541 413 367 350 301 301 376 490 428 523

Auxiliary Staff 1,324 1,461 1,431 1,432 1,518 1,652 1,633 1,598 1,504 1,430

Total Employees 4,348 4,389 4,336 4,304 4,476 4,678 4,798 4,899 4,764 4,774

Percent of Total

Teachers 46.76% 46.87% 47.63% 48.29% 49.01% 47.64% 47.21% 46.54% 48.40% 47.99%

Professional Support 8.63% 8.73% 9.08% 8.37% 8.40% 8.50% 8.89% 8.74% 8.92% 8.81%

Campus Administration 1.57% 1.56% 1.65% 1.76% 1.71% 1.79% 1.73% 1.80% 1.85% 1.86%

Central Administration 0.15% 0.14% 0.18% 0.16% 0.22% 0.32% 0.29% 0.30% 0.27% 0.44%

Educational Aides 12.45% 9.41% 8.47% 8.13% 6.73% 6.43% 7.85% 10.00% 8.99% 10.95%

Auxiliary Staff 30.45% 33.29% 32.99% 33.28% 33.92% 35.32% 34.04% 32.62% 31.57% 29.94%

100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Source: Texas Academic Performance Report (TAPR formerly AEIS) PEIMS Edit + Reports (PRF4D004) 2009-2018 Fiscal Year End 8/31

Classification

125


SCHEDULE OF TEACHER INFORMATION

LAST TEN YEARS

Average Average

Teacher's Years of Bachelor's Master's

Minimum Maximum Minimum Maximum Minimum Maximum Salary Experience Education Education

2009 40,500 57,466 41,500 58,466 41,500 58,466 48,352 11.6 86.3% 12.4%

2010 41,540 58,506 42,540 59,506 42,540 59,506 49,487 12.1 83.8% 14.6%

2011 42,140 59,106 43,140 60,106 43,140 60,106 50,221 12.5 83.4% 15.6%

2012 42,140 59,106 43,140 60,106 43,140 60,106 49,933 12.8 81.3% 17.6%

2013 43,140 60,106 44,140 61,106 44,140 61,106 50,220 13.0 81.0% 18.0%

2014 43,140 61,258 44,140 62,258 44,140 62,258 51,592 12.9 79.7% 17.3%

2015 43,140 62,758 44,140 63,758 44,140 63,758 52,524 12.9 80.3% 18.7%

2016 45,700 63,020 46,700 64,020 46,700 64,020 54,221 12.9 79.9% 19.1%

2017 46,190 63,790 47,190 64,790 47,190 64,790 55,132 13.4 79.4% 19.8%

2018 46,880 64,670 47,880 65,670 47,880 65,670 56,290 13.7 78.2% 20.9%

Source: District's Human Resource DepartmentTexas Academic Performance Report (TAPR Report formely AEIS)

PEIMS Edit + Reports Data Review PRF4D004


FiscalYear

Bachelor's Degree Master's Degree Doctorate Degree

126


SCHEDULE OF ATTENDANCE AND MEMBERSHIPLAST TEN YEARS

Average Average

Fiscal Daily Daily Percent of

Year Attendance Membership Attendance

2009 28,721 30,647 93.71%

2010 29,753 31,910 93.24%

2011 30,835 33,066 93.25%

2012 31,049 33,311 93.21%

2013 31,277 33,582 93.14%

2014 31,719 34,002 93.29%

2015 31,932 34,175 93.44%

2016 32,301 34,466 93.72%

2017 32,050 34,629 92.55%

2018 31,648 34,098 92.82%

Source: Texas Academic Performance Report (TAPR formerly AEIS)PEIMS Edit + Reports Data Review (PRF7D001)TEA Budgeted Financial Data 2009-2018 Fiscal Year End 8/31

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OPERATING STATISTICS TABLELAST TEN YEARS

Average General Fund Cost Per •Governmental Cost Per

Fiscal Daily Operating Per Pupil Operating Per Pupil

Year Attendance Expenditures* Pupil Change Expenditures* Pupil Change

2009 28,721 241,109,416 8,395 2.06% 276,209,761 9,617 2.77%

2010 29,753 234,307,358 7,875 -6.19% 288,385,698 9,693 0.79%

2011 30,835 234,685,403 7,611 -3.35% 289,459,213 9,387 -3.15%

2012 31,049 245,671,730 7,912 3.96% 284,819,241 9,173 -2.28%

2013 31,277 265,139,531 8,477 7.14% 297,066,124 9,498 3.54%

2014 31,719 285,551,283 9,003 6.20% 320,971,999 10,119 6.54%

2015 31,932 295,099,955 9,242 2.65% 333,154,414 10,433 3.10%

2016 32,301 311,874,889 9,655 4.48% 350,351,531 10,847 3.96%

2017 32,050 314,591,976 9,816 1.66% 347,985,182 10,858 0.10%

2018 31,648 331,023,547 10,459 6.56% 359,638,621 11,364 4.66%

*General Fund and Governmental Operating Expenditures less debt service and capital projects (Function 70 and 80)

Source: PEIMS Edit + Reports Data Review (PRF7D001) Financial Statements and Auditor's Independent Report Statement of Activities (Exhibit C-2)Budgetary Comparison Schedule (Exhibit G-1) 2009-2018 Fiscal Year End 8/31

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EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT TABLE L-25SCHEDULE OF STUDENT INFORMATIONLAST TEN YEARS

Number of Percentage of

Teacher/ Percentage Economically Economically

Fiscal Student of Free and Disadvantage Disadvantage

Year Ratio Reduced Lunch Students Students

2009 15.1 84.52% 26,048 85.0%

2010 15.5 84.52% 27,234 85.3%

2011 16.0 84.52% 28,223 85.4%

2012 16.0 84.52% 28,476 85.5%

2013 15.3 84.52% 28,690 85.4%

2014 15.3 84.52% 29,016 85.3%

2015 15.1 84.52% 29,090 85.1%

2016 15.1 84.52% 29,360 85.2%

2017 15.0 84.52% 29,549 85.3%

2018 14.9 84.52% 29,435 86.3%

Source: Texas Academic Performance Reports (TAPR formerly AEIS Report)

Child Nutrition Program


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EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT TABLE L-26SCHEDULE OF SCHOOL BUILDING AND PORTABLESLAST TEN YEARS

EstimatedSquare Footage

BuildingCapacity

PortableSquare Footage

PortableCapacity

Yearbuilt

High Schools

Edinburg High School 330,646 2,800 16,320 520 2005

Edinburg North High School 305,056 2,800 22,592 600

J.Economedes High School 303,431 3,200 18,112 600 Robet Vela High School 258,856 2,300 6,336 150 2012

Sub-Total 1,197,989 11,100 63,360 1,870

Middle Schools

Brewster School 95,295 400 768 25

BL Garza Middle School 135,785 1,700 5,376 275 Barrientes Middle School 130,849 1,500 4,512 350 2008

Memorial Middle School 147,610 1,700 7,464 275

South Middle School 157,803 1,900 4,416 150 Harwell Middle School 148,218 1,700 9,216 50 2010Longoria Middle School 148,218 1,700 - 2011

Sub-Total 800,099 10,600 31,752 870

Elementary Schools

Austin Elementary 45,216 361 4,032 125 Brewster School Elementary 95,295 355 768 25 Hargill Elementary 35,265 364 7,872 150 Betts Elementary 62,612 650

Jefferson Elementary 51,352 474 960 25

Treviño Elementary 63,077 678

Robert E. Lee Elementary 58,147 606 360 25 Lincoln Elementary 67,915 694 Guerra Elementary 70,719 836

Zavala Elementary 65,867 804 - 50

Travis Elementary 48,901 493 768 25 Freddy Gonzalez Elementary 53,822 584 - 100

LBJ Elementary 51,295 606 Canterbury Elementary 69,046 741

Monte Cristo Elementary 57,525 653 7,393 200

Escandon Elementary 62,522 810 1,536 60

De La Viña Elementary 45,147 584 3,072 50

San Carlos Elementary 59,932 609 720 25

Truman Elementary 71,478 804

Eisenhower Elementary 63,241 653 2,304 50

Kennedy Elementary 68,354 807 960 50

Cano/Gonzalez Elementary 62,603 653

Cavazos Elementary 59,933 650

Villarreal Elementary 62,792 697 3,072 150

Avila Elementary 74,352 675 - -

Magee Elementary 70,793 697 Esparza Elementary 68,227 672

Crawford Elementary 71,127 675 4,608 100 2009

Ramirez Elementary 71,157 675 2010

Flores/Zapata Elementary 71,127 675 1,536 50 2010

Gorena Elementary 71,127 675 2011

Sub-Total 1,949,966 19,910 39,961 1,260

Other

Vision Center 5,730 225 2009

Academy 15,936 550

Sub-Total - - 21,666 775

Total 3,948,054 41,610 156,739 4,775

Source: Edinburg CISD Facilities M & O Department

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FEDERAL AWARD SECTION

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[email protected]

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Independent Auditor’s Report

To Board of Trustees and Dr. Rene Gutierrez, Superintendent Edinburg Consolidated Independent School District 411 N. 8th Avenue Edinburg, Texas 78541

We have audited, 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, the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Edinburg CISD as of and for the year ended August 31, 2018, and the related notes to the financial statements, which collectively comprise Edinburg CISD’s basic financial statements, and have issued our report thereon dated December 17, 2018.

Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered Edinburg CISD’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Edinburg CISD’s internal control. Accordingly, we do not express an opinion on the effectiveness of Edinburg CISD’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Edinburg CISD’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no

instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

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Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Luis C Orozco, CPA Pharr, Texas December 17, 2018

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[email protected]


REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE

IN ACCORDANCE WITH THE UNIFORM GUIDANCE

Independent Auditor’s Report To Board of Trustees and Dr. Rene Gutierrez, Superintendent Edinburg Consolidated Independent School District 411 N. 8th Avenue Edinburg, Texas 78541 Report on Compliance for Each Major Federal Program We have audited Edinburg CISD’s compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of Edinburg CISD’s major federal programs for the year ended August 31, 2018. Edinburg CISD’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of Edinburg CISD’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Edinburg CISD’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of Edinburg CISD’s compliance. Opinion on Each Major Federal Program In our opinion, Edinburg CISD complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended August 31, 2018.

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[email protected]


Report on Internal Control over Compliance Management of Edinburg CISD is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Edinburg CISD’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Edinburg CISD’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Luis C Orozco, CPA Pharr, Texas December 17, 2018

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SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED AUGUST 31, 2018

I. Summary of the Auditors' Results:

The type of auditors' report on financial statements: Unmodified

Regarding internal control over financial reporting:

a. Material weakness(es) identified: None

b. Significant deficiencies identified that are not considered to be material weaknesses: None reported

c. Noncompliance which is material to the financial statements: None

d. Regarding internal control over major programs:

Material weakness(es) identified: None

Significant deficiencies identified that are not considered to be material weaknesses: None reported

e. Type of auditors' report on compliance with major programs: Unmodified

f. Any audit findings which are required to be reported in

accordance with 2 CRF 200.516(a): No

g. Major programs are as follows: ESEA Title I Part C CFDA 84.011A Special Education Cluster

h.

Dollar threshold used to distinguish between Type A and

ESEA Title III Part A LEP 84.365A ESEA Title II Part A CFDA 84.367A

Type B programs: $1,517,181

i. Low risk auditee: Yes

II. Findings Relating to the Financial Statements Which Are Required To Be Reported in Accordance with Generally Accepted Government Auditing Standards.

None reported.

III. Findings and Questioned Costs for Federal Awards.

None reported.

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SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS FOR THE YEAR ENDED AUGUST 31, 2018

Not applicable.

137


CORRECTIVE ACTION PLAN FOR THE YEAR ENDED AUGUST 31, 2018

Not applicable.

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EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT Exhibit K-1

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


(1) (2) (2A) (3)

FEDERAL GRANTOR/ FEDERAL PASS THROUGH

PASS-THROUGH CFDA ENTITY IDENTIFYING FEDERAL

GRANTOR/PROGRAM TITLE NUMBER NUMBER EXPENDITURES

U.S. DEPARTMENT OF AGRICULTURE

Passed Through State Department of Education:

Child Nutrition Cluster

School Breakfast Program 10.553 TX108904 6,838,149

National Lunch Program 10.555 TX108904 14,482,720

Commodity Supplemental Program 10.555 TX108904 1,615,801

TOTAL CHILD NUTRITION CLUSTER 22,936,670

TOTAL DEPARTMENT OF AGRICULTURE 22,936,670

U.S. DEPARTMENT OF EDUCATION

Passed Through State Department of Education:

ESSA Title I, Part A - Improving Basic Programs 84.010A 18610101108904 13,346,133

ESSA Title I, Part A - Improving Basic Programs 84.010A 19610101108904 937,831

ESSA Title I, Part D - Subpart 2 - Delinquent Programs 84.010A 18610103108904 125,736

ESSA Title I, Part D - Subpart 2 - Delinquent Programs 84.010A 19610103108904 5,973

ESSA Title I, Part C - Migratory Children 84.011A 17615001108904 1,409

ESSA Title I, Part C - Migratory Children 84.011A 18615001108904 2,436,685

ESSA Title I, Part C - Migratory Children 84.011A 19615001108904 156,846

Title I, Part C - Carl D Perkins Basic Grant Formula for CATE 84.048A 18420006108904 482,162

Title I, Part C - Carl D Perkins Basic Grant Formula for CATE 84.048A 19420006108904 32,560

Texas 21st Century Community Learning Centers, Cycle 9, Year 2 84.287C 186950247110010 1,709,902

Texas 21st Century Community Learning Centers, Cycle 9, Year 3 84.287C 196950247110009 39,571

ESSA Title III, Part A Subpart 1- ELA 84.365A 18671001108904 946,987

ESSA Title III, Part A Subpart 1- ELA 84.365A 19671001108904 56,706

ESSA Title II, Part A -Supporting Effective Instruction 84.367A 18694501108904 1,243,922

ESSA Title II, Part A -Supporting Effective Instruction 84.367A 19694501108904 55,433

ESSA Title IV, Part A Subpart 1- SSAEP 84.424A 18680101108904 186,700

Texas Hurricane Emergency Impact Aid to LEAs 84.938C 51271901 187,323

Special Education Cluster

IDEA Part B, Formula 84.027A 186600011089046600 5,207,460

IDEA Part B, Formula 84.027A 196600011089046600 258,440

IDEA Part B, Preschool 84.173A 186610011089046610 43,147

IDEA Part B, Preschool 84.173A 196610011089046610 1,315

TOTAL SPECIAL EDUCATION CLUSTER 5,510,362

The accompanying notes are an integral part of this schedule.139

EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT Exhibit K-1

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


(1) (2) (2A) (3)

FEDERAL GRANTOR/ FEDERAL PASS THROUGH

PASS-THROUGH CFDA ENTITY IDENTIFYING FEDERAL

GRANTOR/PROGRAM TITLE NUMBER NUMBER EXPENDITURES

Passed Through State Education Service Centers:

Gaining Early Awareness & Readiness for Undergradute Programs (Gearup) 84.334A P334A110180-17 30,390

Passed Through University of Texas Rio Grande Valley:

Gaining Early Awareness & Readiness for Undergradute Programs (Gearup) 84.334A P334A170097 93,187

TOTAL DEPARTMENT OF EDUCATION 27,585,818

U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES

Passed Through Texas Dept of Human Services

Medicaid Cluster

Medicaid Administrative Claiming Program-MAC 93.778 529-07-01457-00138 50,199

TOTAL MEDICAID CLUSTER 50,199

TOTAL DEPARTMENT OF HEALTH AND HUMAN SERVICES 50,199

TOTAL EXPENDITURES OF FEDERAL AWARDS 50,572,687

The accompanying notes are an integral part of this schedule.140


NOTES TO SCHEDULE OF EXPENDITURES OF

FEDERAL AWARDS

For the Year Ended August 31, 2018 1. GENERAL

The Schedule of Expenditures of Federal Awards presents the activity of all applicable federal award programs of Edinburg Consolidated ISD. The District’s reporting entity is defined in Note I of the financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through other government agencies, are included on the Schedule of Expenditures of Federal Awards.

In accordance with TEA instructions, federal funds for the School Health and Related Services (SHARS) have been excluded from the Schedule of Expenditures of Federal Awards.

Federal funds for R.O.T.C, the Child Nutrition Cluster, School Health and Related Services (SHARS), Medicaid Administrative Claims (MAC), and revenues for indirect costs are reported in the General Fund. All other federal programs are accounted for and reported in Special Revenue Funds.

2. BASIS OF ACCOUNTING AND PRESENTATION

The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The Governmental Fund types are accounted for using a current financial resources measurement focus. All Federal grant funds were accounted for in a Special Revenue Fund or, in some instances, in the General Fund which are Governmental Fund type funds.

With this measurement focus, only current assets and current liabilities and the fund balance are included on the balance sheet. Operating statements of these funds present increases and decreases in net current assets. The modified accrual basis of accounting is used for the Governmental Fund types. This basis of accounting recognizes revenues in the accounting period in which they become susceptible to accrual, i.e., both measurable and available, and expenditures in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on General Long-Term Debt, which is recognized when due, and certain compensated absences and claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and, accordingly, when such funds are received, they are recorded as unearned revenues until earned. The period performance for federal grant funds for the purpose of liquidation of outstanding obligations made on or before the ending date of the federal project period extended 90 days beyond the federal project period ending date, in accordance with provisions in Section H, Period of Performance of Federal Funds, Part 3, Uniform Guidance Compliance Supplement. CFDA numbers for commodity assistance are the CFDA numbers of the programs under which USDA donated the commodities.

141

3. PASS-THROUGH EXPENDITURES

None of the federal programs expended by the District were provided to subrecipients.

4. INDIRECT COSTS

The District has received a negotiated indirect cost rate from TEA and elected not to use the de minimis indirect cost rate of 10% as described at 2 CFR §200.414(f)—Indirect (F&A) costs.

142

SCHOOLS FIRST QUESTIONNAIRE

EDINBURG CONSOLIDATED INDEPENDENT SCHOOL DISTRICT Fiscal Year 2018

Were there any disclosures in the Annual Financial Report and/or other sources of information concerning nonpayment of any terms of any debt agreement at fiscal year end? No

SF2

Was there an unmodified opinion in the Annual Financial Report on the financial statements as a whole? Yes

SF4

Did the Annual Financial Report disclose any instances of material weaknesses in internal controls over financial reporting and compliance for local, state, or federal funds? No

SF5

Was there any disclosure in the Annual Financial Report of material noncompliance for grants, contracts, and laws related to local, state, or federal funds? No

SF6

Did the school district make timely payments to the Teachers Retirement System (TRS), Texas Workforce Commission (TWC), Internal Revenue Service (IRS), and other government agencies?

YesSF7

Did the school district not receive an adjusted repayment schedule for more than one fiscal year for an over allocation of Foundation School Program (FSP) funds as a result of a financial hardship?

YesSF8

Total accumulated accretion on CABs included in government-wide financial statements at fiscal year-end.

SF10

Net Pension Assets (1920) at fiscal year-end.SF11

Net Pension Liabilities (2540) at fiscal year-end.69609302

SF12

Pension Expense (6147) at fiscal year-end.SF13

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Documents

Luis C. Orozco - Edl · LUIS C OROZCO CERTIFIED PUBLIC ACCOUNTANT 808 Del Oro Lane Pharr, TX 78577 [email protected] (956) 782-5481 Member of AICPA & TSCPA (956) 782-5484 Independent