Where Eagles Soar! Comprehensive Annual Financial Report€¦ · Where Eagles Soar! Comprehensive Annual Financial Report _____ For the Fiscal Year Ended June 30, 2016 ... November

ALLEN INDEPENDENT SCHOOL DISTRICT Where Eagles Soar!

Comprehensive Annual Financial Report

_____________________________

For the Fiscal Year Ended June 30, 2016

Allen ISD cultivates innovation in education that empowers every learner to realize his or her full potential.

612 East Bethany DriveAllen, Texas 75002

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Comprehensive Annual Financial Report

Allen Independent School District 612 East Bethany Drive

Allen, Texas 75002

Fiscal Year Ended June 30, 2016

Prepared by The Finance Department

Greg Cartwright Chief Financial Officer

Brent Ringo Executive Director of Finance


Allen Independent School District Comprehensive Annual Financial Report – Table of Contents

As of June 30, 2016

TABLE OF CONTENTS ........................................................................................................................................................................... i

INTRODUCTORY SECTION ................................................................................................................................................................ iii Certificate of Board ............................................................................................................................................................................. v Principal Officials and Advisories ......................................................................................................................................................vi Allen Independent School District Organizational Chart .................................................................................................................. vii Consultants and Advisors ................................................................................................................................................................ viii Introduction Letter and Profile of the District .....................................................................................................................................ix

FINANCIAL SECTION ............................................................................................................................................................................ 1 Independent Auditor’s Report............................................................................................................................................................ 2 Management’s Discussion and Analysis ............................................................................................................................................ 5

GOVERNMENTAL WIDE FINANCIAL STATEMENTS: ........................................................................................................... 15 Statement of Net Position ................................................................................................................................................................ 17 Statement of Activities ..................................................................................................................................................................... 18

GOVERNMENTAL FUNDS FINANCIAL STATEMENTS: ......................................................................................................... 21 Balance Sheet .................................................................................................................................................................................. 22 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ........................................................... 25 Statement of Revenues, Expenditures, and Changes in Fund Balance ............................................................................................. 26 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the

Statement of Activities ................................................................................................................................................................ 29 PROPRIETARY FUNDS FINANCIAL STATEMENTS: ............................................................................................................... 31

Statement of Fund Net Position ....................................................................................................................................................... 33 Statement of Revenues, Expenses, and Changes in Fund Net Position ............................................................................................ 34 Statement of Cash Flows ................................................................................................................................................................. 35

FIDUCIARY FUNDS FINANCIAL STATEMENTS: ..................................................................................................................... 37 Statement of Fiduciary Net Position ................................................................................................................................................ 38 Statement of Changes in Fiduciary Fund Net Position ..................................................................................................................... 39

NOTES TO THE FINANCIAL STATMENTS: ............................................................................................................................... 41 BUDGETARY COMPARISON REPORTING – REQUIRED SUPPLEMENTARY INFORMATION: ................................... 71

Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund ................................... 73 Schedule of the District’s Proportionate Share of the Net Pension Liability – Teacher Retirement System .................................... 74 Schedule of the District’s Contribution – Teacher Retirement System ............................................................................................ 75 Notes to the Required Supplementary Information .......................................................................................................................... 76

OTHER SUPPLEMENTARY INFORMATION: ............................................................................................................................ 77 Nonmajor Governmental Funds ....................................................................................................................................................... 79

Combining Balance Sheet ......................................................................................................................................................... 80 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .................................................................. 84

Nonmajor Enterprise Funds ............................................................................................................................................................. 89 Combining Statement of Fund Net Position .............................................................................................................................. 90 Combining Statement of Revenues, Expenditures, and Changes in Fund Net Position ............................................................. 91 Combining Statement of Cash Flows ........................................................................................................................................ 92

Internal Service Funds ..................................................................................................................................................................... 93 Combining Statement of Fund Net Position .............................................................................................................................. 94 Combining Statement of Revenues, Expenditures, and Changes in Fund Net Position ............................................................. 95 Combining Statement of Cash Flows ........................................................................................................................................ 96

Private Purpose Trust Funds ............................................................................................................................................................ 97 Combining Statement of Fund Net Position .............................................................................................................................. 98 Combining Statement of Revenues, Expenditures, and Changes in Fund Net Position ........................................................... 100

Agency Funds ................................................................................................................................................................................ 103 Statement of Changes in Assets and Liabilities ....................................................................................................................... 104

Required Texas Education Agency Schedules ............................................................................................................................... 105 Schedule of Delinquent Taxes Receivable............................................................................................................................... 106 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Child Nutrition Program .......... 108 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Debt Service Fund ................... 109

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Allen Independent School District Comprehensive Annual Financial Report – Table of Contents

As of June 30, 2016

STATISTICAL SECTION (UNAUDITED) .......................................................................................................................................... 111 Index Statistical Section ....................................................................................................................................................................... 113 Financial Trends Information ............................................................................................................................................................... 115

Net Position by Component – Last Ten Years ................................................................................................................................ 116 Expenses, Program Revenues, and Net (Expense) Revenue – Last Ten Years ............................................................................... 118 General Revenues and Total Change in Net Position – Last Ten Years .......................................................................................... 120 Fund Balance Governmental Funds – Last Ten Years .................................................................................................................... 122 Governmental Funds Revenues – Last Ten Years........................................................................................................................... 124 Governmental Funds Expenditures and Debt Service Ratio – Last Ten Years ............................................................................... 126 Governmental Funds Other Financing Sources and Uses and Net Change in Fund Balances – Last Ten Years ............................. 128

Revenue Capacity Information ............................................................................................................................................................. 131 Appraised Value and Actual Value of Taxable Property – Last Ten Years .................................................................................... 133 Direct and Overlapping Property Tax Rates – Last Ten Years ...................................................................................................... 134 Principal Property Tax Payers – Current and Nine Years Ago ....................................................................................................... 135 Property Tax Levies and Collections – Last Ten Years .................................................................................................................. 136

Debt Capacity Information ................................................................................................................................................................... 137 Outstanding Debt by Type – Last Ten Years .................................................................................................................................. 138 Direct and Overlapping Governmental Activities Debt .................................................................................................................. 139 Legal Debt Margin – Last Ten Years .............................................................................................................................................. 140

Demographic and Economic Information ............................................................................................................................................ 143 Demographic and Economic Statistics – Last Ten Years ................................................................................................................ 144 Principal Employers – Current and Nine Years Ago ...................................................................................................................... 145

Operating Information .......................................................................................................................................................................... 147 Full-Time Equivalent District Employees by Type – Last Ten Years ............................................................................................. 148 Operating Statistics – Last Ten Years ............................................................................................................................................. 150 Teacher Base Salaries – Last Ten Years ......................................................................................................................................... 151 School Building Information – Last Ten Years .............................................................................................................................. 152

COMPLIANCE AND FEDERAL AWARDS SECTION .................................................................................................................... 157 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters

Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards .............................. 159 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control Over Compliance

Required by OMB Circular A-133.................................................................................................................................................. 161 Schedule of Findings and Questioned Costs ........................................................................................................................................ 163 Schedule of Status of Prior Findings and Corrective Action Plan ........................................................................................................ 164 Schedule of Expenditures of Federal Awards ...................................................................................................................................... 166 Notes to Schedule of Expenditures of Federal Awards ........................................................................................................................ 167

I-1I-2I-3I-4I-5I-6I-7

I-8I-9I-10I-11

I-12I-13I-14

I-15I-16

I-17I-18I-19I-20

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INTRODUCTORY SECTION

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ALLEN INDEPENDENT SCHOOL DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT

YEAR ENDED JUNE 30, 2016

PRINCIPAL OFFICIALS AND ADVISORS

Board of Trustees

Louise Master……………………………………………………………………………………………President Residential Real Estate

Jimmy Trotter……………………………………………………………………………………...Vice-President Education Consultant

Amy Gnadt…………………………………………………………………...………………………….Secretary Engineer

John Montgomery……………………………………………………………………………………...…Member Global Security

Carl Clemencich……………………………………………………………………………………….....Member CPA – Asst. Controller

Susan Olinger…...………………………………………………………………………………………..Member Software Engineer

Kelley Rowley……………………………...…………………………………………………………….Member Financial Analyst

Administrative Officials

Dr. Lance Hindt…………………………………….……………………………………………..Superintendent

Jennifer Wilhelm...……………………..…………………………….Assistant Superintendent Learner Services

Robin Bullock…………………………………………..Assistant Superintendent School Leadership & Support

Ken Gregorski……………………………………………..………..Assistant Superintendent Human Resources

Greg Cartwright………………………………………………..…………………………Chief Financial Officer

Tim Carroll…………………………………….………………………………………Chief Information Officer

Daniel Pitcock…………………………………………………………………………..Chief Operations Officer

Dr. Maroba Zoeller………………………….……………………………Chief Governmental Relations Officer

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Board of Trustees

SuperintendentDr. Lance Hindt

Assistant Superintendent Learner Services Jennifer Wilhelm

Director of Fine Arts Jeff Turner

GT/AdvancedAcademics

Coordinator Barb Myer

Director of CTEBecky Hunt

Executive Director Special Services Dr. Harry Ryan

504/IMA CoordinatorBarbara Barker

Science CoordinatorLarry Labue

Social Studies Coordinator Kim White

ELA CoordinatorRegina Schnieder

Director Curriculum & Staff Development

Lisa Casto

Math Coordinator Mandy KnollDirector of

Accountability & Assessment

Sheryl Stewart

Special ProgramsCoordinator

Heather Forde

Chief Financial Officer Greg Cartwright

Payroll Administrator Caryn Stolp

Director of Student Nutrition

Dorothy Thompson

Director of Risk Management

John Palm

Director of AccountingLynn Lyon

Director of Finance Dr. Brent Ringo

Assistant Superintendent Human Resources

Ken Gregorski

Director of HR Kelly Mires

Chief Operations Officer Daniel Pitcock

Director of Transportation

Carl Cater

Director of Purchasing Debbie NyeDirector of Athletics

Steve Williams

Assistant Superintendent School Leadership & Support

Robin Bullock

Director of Student Services

Kim McLaughlin

Director of Safeand Secure Schools

Ernie Rodriguez

Coordinator of School HealthMelinda Smith

Chief Information Officer

Tim Carroll

Employee BenefitsJulie Sun

Principals

Employee BenefitsAdrianna Maldonado

Application Management

Venecia Napier

Employee Backgrounds

Belinda Salcido

Employee Management

Sandra Westerberg

Certification/NCLBLinda Parker

Substitute Management

Pam Jones

Director of MaintenanceSteve Hanner

Director of Student Information/PEIMS

Bonnie Suttle

Executive Director School Leadership

and Guidance Phyllis Spain

Executive Director Facilities

Greg Suttle

Executive Director Technology

Patrick Tanner

Chief Governmental Relations Officer

Dr. Maroba Zoeller

Director of Technology

Brent Goerner

ALLEN Independent School District

Foreign Language/ Staff Development

CoordinatorMichelle Salas

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Consultants and Advisors

Evans, Pingleton, & Howard, PLLC. ……………...…………………………………………………….Auditors 8950 Gary Burns Drive, Suite D Frisco, Texas 75034 Norton Rose Fulbright……………………………………..…………………………….…………Bond Counsel 2200 Ross Avenue, Suite 2800 Dallas, Texas 75201 First Southwest…………………………………………………………………...…………….Financial Advisor 325 N. Saint Paul, Suite 800 Dallas, Texas 75201 Linebarger, Goggan, Blair, & Simpson L.L.P. ………………….………………………Tax Collection Counsel 2777 N. Stemmons Freeway, Suite 1000 Dallas, Texas 75207 Thompson & Knight LLP. ………………….………………………………………...…………General Counsel 1700 Pacific Avenue, Suite 3300 Dallas, Texas 75201 Walsh, Anderson, Gallegos, Green, & Trevino PC. ………………….……….……...…………General Counsel 1700 Pacific Avenue, Suite 3300 Dallas, Texas 75201 American National Bank…………………………………………….……………………….Official Depository 720 S. Greenville Ave. Allen, TX 75002 STB Architects………………………………………………….…………………………...………….Architects 720 S. Greenville Ave. Allen, TX 75002 Corgan Associates..…………………………………………….…………………………...………….Architects 401 North Houston Street Dallas, TX 75202 VLK Architects…..…………………………………………….…………………………...………….Architects 2821 W 7th Street #300 Fort Worth, TX 76107

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November 1, 2016

The Board of Trustees and Citizens Allen Independent School District 612 East Bethany Drive Allen, Texas 75002

Dear Board Members and Citizens:

The Comprehensive Annual Financial Report (CAFR) of the Allen Independent School District (the District) for the fiscal year ended June 30, 2016 is presented herein. The CAFR is management's report of the financial operations of the District for the Board of Trustees (the Board), patrons, taxpayers, employees, grantor agencies, the Texas Education Agency (TEA), and other interested parties. The Government-wide Financial Statements in this report provide an overview of the District’s governmental activities, while detailed Fund Financial Statements describe specific activities of each fund group used in accounting for the District's financial transactions. This report has been prepared by the District’s Finance Department in accordance with the accounting principles and reporting standards promulgated by the Governmental Accounting Standards Board (GASB) and the official rules published by the Texas Education Agency.

The CAFR is presented in four sections: Introductory, Financial, Statistical, and Compliance and Federal Awards. The Introductory Section includes this transmittal letter, a list of principal officials and advisors, and an organizational chart. The Financial Section includes the Independent Auditors' Report, Management's Discussion and Analysis (MD&A), basic financial statements, required supplementary information, and other supplementary information. The Statistical Section is designed to reflect social and economic data, financial and fiscal trends, and demographic information. The Overall Compliance and Internal Controls Section includes the Independent Auditors’ Report and federal awards information.

District management assumes full responsibility for the completeness, fairness, and accuracy of the information contained in this report. We believe that the data presented is accurate in all material respects and is presented in a manner to fairly display the financial position of the District as measured by the financial activity of its various funds. We also believe that all necessary disclosures are included to enable the reader to gain full understanding of the District’s financial activities.

The Texas Education Code Section 44.008 requires an annual audit of the accounts, financial records, and transactions of the District by independent certified public accountants selected by the Board. This requirement has been met, and the Independent Auditors ' Report has been included in this report.

The independent audit of the financial statements of the District was part of a broader, federally mandated "Single Audit" designed to meet the special needs of the federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the District's internal controls and compliance with legal requirements, involving the administration of federal awards. These reports are available in the District's separately issued Single Audit Report.

Generally Accepted Accounting Principles (GAAP) requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The District’s MD&A can be found immediately following the report of the independent auditors.

PROFILE OF THE DISTRICT

The Allen Independent School District began in the 1880’s as a common school district. In 1910, Allen ISD was constituted as an independent school district and is governed by an elected Board of seven trustees. Allen ISD is governed by a “Team of Eight,” consisting of seven board members and the superintendent. The Board’s primary role is policy making, while the operational functions of the district have been delegated to the Superintendent and administrative staff. The District is a recognized political subdivision of the State of Texas and has the responsibility over all activities related to public education within its 27.1 square mile boundary. It is located in the southwest quadrant of Collin County, and 23 miles north of downtown Dallas.

The Allen Independent School District operates seventeen elementary schools, three middles schools, one ninth-grade center, and one high school. Disciplinary and non-disciplinary student referrals attend the alternative education center. The ages and capacities of these facilities can be found in Exhibit I-20 of the Statistical Section. The District has an enrollment of 20,885 students.

Our mission statement defines who we are: Allen ISD cultivates innovation in education that empowers every learner to realize his or her full potential. Our classrooms provide innovative learning experiences that motivate students to reach higher levels. We are developing critical thinkers who can problem solve and effectively communicate to better prepare them for future jobs that may not even exist today.

All Allen ISD campuses and the District received a “Met Standard” rating in the accountability standard for the state of Texas in 2016. In addition to the overall rating, campuses have the opportunity to earn up to seven academic distinctions:

• Top 25% Student Progress• Top 25% in Closing Achievement Gaps• Academic Achievement in Reading/English Language Arts• Academic Achievement in Math (Secondary only)• Academic Achievement in Science• Academic Achievement in Social Studies• Post-secondary Readiness

All secondary campuses and 13 of 17 elementary campuses received Distinction Designations, which are based upon campus performance on various indicators as compared to a cohort of 40 similar campuses across the state. Our students performed well above the state and regional averages for the most recent State of Texas Assessments of Academic Readiness (STAAR) both in passing scores and advanced performance, averaging 10-25% higher than state and regional averages on the STAAR tests. Scores for the PSAT, SAT, and ACT rank above both state and

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national averages. Specifically, Allen ISD students scored an average of 3.9 points higher in each section of the ACT when compared to students across the state. Also, Allen ISD students consistently win individual and team championships in academics, athletics, and fine arts. Our AHS Fine Arts department was one of thirteen US schools selected as a 2016 Grammy Signature School. Allen ISD ranked 11th among school districts in Texas, 9th for best teachers in Texas, and #3 in the nation for school administration according to Niche, a national K-12 and college ranking service. We offer a challenging curriculum to meet the needs of every student. Allen ISD remains committed to meeting the academic needs of ALL students. Small performance gaps remain in some content areas with some student groups, and as a result, campuses continue to monitor and adjust instruction and intervention in order to meet unique individual needs. Allen ISD continues to focus on providing high quality instruction and intervention. Students’ mastery of grade level curriculum is monitored throughout the year in order to address identified needs with classroom instruction, intervention, and enrichment. Advanced coursework is available through the Phoenix Program for students in the Gifted and Talented program, Pre-IB and IB (International Baccalaureate) courses and diploma program, Pre-AP and AP (Advanced Placement) courses and dual credit college-level courses through Collin College. Our CTE (Career and Technical Education) department offers multiple pathways for students to pursue including agriculture, architecture, audio/visual technology, business management, education, engineering, finance, health science, hospitality and tourism, information technology and public services. Allen ISD is a leader among Texas schools in the integration of technology in the classroom. We have a ratio of approximately 1.5 students to each digital device at each campus. In addition, we have a Bring Your Own Device initiative that allows students to leverage the number of devices available to students on a daily basis. Technology enhances instruction, engages the learner, and better prepares them for college and career. Allen ISD is comprised of dedicated and aspiring professionals with a common goal of helping every learner realize his or her full potential. Economic Condition and Outlook Local Economy Conveniently located in the heart of North Texas the area’s economy is diverse and expanding, with residential property compromising 70 percent of the total market assessed valuation. Allen continues to experience dramatic demographic and business growth. The majority of Allen’s commercial development occurred after 1992, when the city’s voters approved the creation of an economic development corporation funded by a dedicated half-cent sales tax. The city’s major commercial developments began with construction of business parks that attracted high-tech industries and professional services, with large retail centers being developed as the supporting population grew. Three large retail centers (one of which is undergoing expansion) have made Allen the regional retail destination in Collin County and Central Expressway north of I-635. Now, Allen is moving into the next phase of development with premiere office parks and a flagship convention center with a four-star hotel. In addition, there is approximately 1,000 acres

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of vacant land along State Highway 121 which will be developed as new employment centers with corporate campuses, mid-rise office parks, and attractive mixed-use developments. With the relocation and expansion of many corporate and regional headquarters to the area the economic base continues to expand. The District is located in Collin County 23 miles north of downtown Dallas. According to the US Census Bureau, by 2019 there will be a 16.3% job growth rate for the City of Allen compared to the national growth rate of 5.9%. Currently, the unemployment rate is 3.15%. The combined appraised value of the ten largest taxpayers total only 8.26 percent of the District’s total 2015-2016 assessed value. A schedule listing the ten largest tax payers can be found in Exhibit I-10 of the Statistical Section. The District’s commercial and industrial taxable base is generally comprised of high technology businesses and retail centers. Of the city’s population, population data can be found in Exhibit I-15, 94.9% have a high school diploma, 51.8% have a Bachelor’s Degree, and 18.2% hold an Advanced Degree. Reflecting the high educational attainment and affluence of Allen’s residents, 88.9% work in white collar occupations, while only 11.1% work in blue collar occupations. Growth According to Forbes, the City of Allen is included as “America’s Top 25 Best Cities to Relocate”, the #1 city for first-time home buyers, while Money Magazine ranks the City of Allen as “Top 20 Best Places to Live in America.” The city’s population reached over 94,000 residents last year, more than doubling from just over 45,000 in the year 2000. Prices in Allen’s housing market typically exceed regional averages due to its quality of life and have increased with the regional growth in population, migratory trends, and employment. According to the Texas A&M Real Estate Center, the median home price is $295,000 and the average home price is $361,958, which represents an increase of 11.3% and 15.7% over the previous year. Future residential development will be limited to Allen’s existing corporate limits as there is no additional vacant land to be annexed. Building permits totaling 475 were issued for the construction of single-family housing in the last 12 months, and permits for 573 multi-family units were issued. In its 2030 Comprehensive Plan, the city projected that on build-out, 3,180 single-family units, 1,182 multi-family units, and 1,450 high density units in mixed-use developments would be constructed. According to the Allen Economic Development Corporation, the Median Household income is $100,167. With the 2015-16 enrollment of 20,746 the District’s growth rate is slowing. The District’s latest demographic report predicts that with moderate growth projections the student enrollment will reach 22,000 by the year 2020. While there are many reasons that can be attributed to the district’s growth, feedback from residents revealed the primary reason residents move to Allen is because of its schools. Community Support Public support for public schools continues to be strong. Of the nineteen bond propositions since 1910, the community has passed eighteen for a total amount of $1,000,960,000. This support was evidenced again in November 2015 when the district proposed and passed $272,580,000 for new facility construction, renovation and upgrades to existing facilities, technology, security, and purchase of land. The measure was passed by 75.74% of the voters. New facility construction includes construction of elementary school #18, of Allen High School satellite STEAM facility,

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and of the complete rebuild of the Lowery Freshmen Center. Some renovations include the construction of a new multipurpose music room at Allen High School, renovating two elementary schools, and installation of lights and seating at a middle school athletic field. Upgrades to security and technology include improving the emergency communications systems across the district while also improving the district network infrastructure. Financial Information Budgeting The annual budget serves as the foundation for the District’s financial planning and control. State law requires that every local education agency in Texas prepare and file an annual budget of anticipated revenues and expenditures with the Texas Education Agency. The budget process begins in November when the projections are presented to the Board of Trustees. It is the intent of the District that the budgetary process results in the most effective mix of educational and financial resources available while attaining the goals and objectives of the District. The enrollment projections contained in this plan coupled with the state’s school funding system form the basis for significant budgetary decisions. Much of the District’s planning is focused on the District’s Strategic Plan and related Improvement Plan. The plan demonstrates the pledge to work towards goals set at the campus and district levels. Campus Improvement Plans, which couple with the District Improvement Plan, address specific needs for campus and student achievement. These plans are reviewed each quarter and involve engagement of stakeholder groups (community members, campus staff, parents, and central office staff). The Board of Trustees is required to adopt a final budget by no later than the close of the fiscal year, June 30. Annual budgets in the General Fund, Child Nutrition Fund, and Debt Service Fund are included in the official budget. The level of budgetary control is at the fund and the function level, as required by the Texas Education Agency. Site based decisions are made throughout the year as campus and departments manage their budgets. The financial system also provides controls limiting accessibility to budgetary account codes. Oversight control of all AISD expenditures is maintained by the Purchasing Department staff. In regards to long-term budget estimates, the Allen ISD projects moderate student growth until district buildout. Future budget additions to the General Fund for 2017-18 include the opening of Allen ISD’s 18th elementary school and adding a grade level of support to our Gifted and Talented Program, increasing the expenditure budget to $175 million. For the 2018-19 Fiscal Year, budget additions include a STEAM (Science, Technology, Engineering, Architecture, and Math) Center to supplement our High School Academic Program, a Technology Refresh to replace aging computer equipment, and adding another grade level of support to the Gifted and Talented Program, increasing the expenditure budget to $179 million. With slow to moderate enrollment growth it is estimated the expenditure budget will increase to $183 million by 2019-20. As local property values continue to rise the State’s financial support of the district continues to decrease. For additional information about the financial status of the District, readers should refer to the statements and schedules included in the Financial Section of the report. AISD continues to meet its responsibility of sound financial management.

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Other Information Internal Control The Board and administration of AISD are responsible for establishing and maintaining an internal control structure designed to ensure the District’s assets are protected from loss, theft, and misuse, and to ensure accurate accounting data is compiled in preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP). The cost of a control should not exceed the benefits to be derived therefore internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. Independent Audit State law and District policy require an annual audit of the accounts and financial records by independent certified public accountants selected by the Board of Trustees. Evans, Pingleton, & Howard, PLLC, has issued an unmodified opinion on the financial statement of the Allen Independent School District for the year ended June 30, 2016. The independent auditor’s report has been included in this report at the front of the financial section. Awards In 1999, the 76th Texas Legislature approved legislation requiring the Commissioner of Education in consultation with the Comptroller of Public Accounts to develop a rating system for school district financial accountability. The 77th Texas Legislature in 2001 subsequently adopted rules for the implementation and administration of the financial accountability rating system known as School FIRST, Financial Integrity Rating System of Texas. The financial accountability rating system benefits the public by having a system in place to ensure that school districts will be held accountable for the quality of their financial management practices and achieve improved performance in the management of their financial resources. AISD has received the highest rating for financial management for all years of the FIRST program. The Texas Comptroller of Public Accounts developed the Texas Comptroller Leadership Circle program in December 2009 to recognize local governments across Texas that strive to meet a high standard of financial transparency online. AISD currently holds the highest recognition, the “Platinum” award, by providing relevant budgetary and actual financial data online in an easily accessible format. Furthermore, the Government Finance Officers Association awarded Allen ISD the Certificate of Achievement for Excellence in Financial Report Program for the 2015-2016 Fiscal Year. Acknowledgements Without the dedicated services of the entire Finance Department the preparation of this report could not have been accomplished. We also wish to thank the members of the Board of Trustees for planning and conducting the financial operations of the District in a responsible manner.

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Government Finance Officers Association

Certificate of Achievement for Excellence

in Financial Reporting

Presented to

Allen Independent School District

Texas

For its Comprehensive Annual

Financial Report

for the Fiscal Year Ended

June 30, 2015

Executive Director/CEO

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FINANCIAL SECTION

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EVANS, PINGLETON and HOWARD, PLLC CERTIFIED PUBLIC ACCOUNTANTS

8950 Gary Burns Drive, Suite D Frisco, Texas 75034

PH 972-335-9754 FAX 972-335-9758

Independent Auditor’s Report

Board of School Trustees Allen Independent School Trustees Allen, Texas

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Allen Independent School District, as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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, the business-type activities, each major fund, and the aggregate remaining fund information of the Allen Independent School District, as of June 30, 2016, 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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Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information on pages 3-11 and 59 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Allen Independent School District’s basic financial statements. The introductory section, combining and individual non-major fund financial statements, and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is also not a required part of the basic financial statements.

The combining and individual non-major fund financial statements and the schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual non-major fund financial statements and the schedule of expenditures of federal awards are fairly stated in all material respects in relation to the basic financial statements as a whole.

The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Governmental Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated October 11, 2016, on our consideration of the Allen 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 Allen Independent School District’s internal control over financial reporting and compliance.

Evans, Pingleton and Howard, PLLC Frisco, TX October 11, 2016


4

ALLEN INDEPENDENT SCHOOL DISTRICT Management’s Discussion and Analysis

For the Year Ended June 30, 2016

5

This section of Allen Independent School District’s annual financial report presents our discussion and analysis of the District’s financial performance during the year ended June 30, 2016. Please read it in conjunction with the district’s basic financial statements, which follow this section.

FINANCIAL HIGHLIGHTS

At June 30, 2016, the District’s total (governmental activities and business-type activities) assetsand deferred outflows exceeded its liabilities by $114,174,959. Of this amount, $68,209,387(unrestricted net position) may be used to meet the District’s ongoing obligations.

General revenues accounted for $224,943,339 or 91.1% of all fiscal year 2016 revenue. Program-specific revenues in the form of charges for services and grants and contributions accounted for$22,051,142 or 8.9% of total fiscal year 2016 revenues.

The District had $224,994,688 in expenses related to governmental activities; of which$22,051,142 of these expenses were offset by program-specific charges for services or grants andcontributions. General revenues of $224,943,339 were adequate to provide for the remaining costof these programs resulting in a $21,999,793 increase in net assets.

The General Fund reported an ending fund balance of $91,500,488. This was an increase in theGeneral Fund balance from the prior year in the amount of $13,304,461. The unassigned GeneralFund balance decreased $5,062,067 from the prior year.

The District issued $301,900,000 in new general obligation bonds during the fiscal year to fundadditional facilities and refund outstanding debt.

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 area government-wide financial statements that provide both long-termand short-term information about the District’s overall financial status.

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

The governmental funds statements focus on how general government services were financed inthe short-term as well as what remains for future spending.

Proprietary fund statements offer short-term and long-term financial information about theactivities the government operates like businesses, such as the District’s concession stands andKid’s Club.

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

The basic financial statement also includes notes that explain some of the information in the basic 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 basic financial statements. Figure A-1 shows how the required parts of this annual report are arranged and related to one another. Figure A-2 summarizes the major features of the District’s basic 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.



6

Summary Detail

Management’s Discussion and Analysis

Basic Financial

Statements

Required Supplementary Information

Government‐Wide

Financial Statements

Fund Financial

Statements

Notes to the Financial Statements

Figure A-1

Required Components of the District’s Annual Financial Report

Figure A-2

Major Features of the District’s Government-wide and Fund Financial Statements

Types of Statements District‐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

Required financial statements

Statement of netposition

Statement of activities

Balance sheet

Statement of revenues,expenditures & changesin fund balances

Statement of netposition

Statement of revenues,expenses and changes infund net position

Statement of cash flows

Statement of fiduciarynet position

Statement of changes infiduciary net position

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





7

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 position 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 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 is an indicator of whether itsfinancial health is improving or deteriorating, respectively.

To assess the overall health of the District, one needs to consider additional nonfinancialfactors such as changes in the District’s tax base and student population.

The government-wide financial statements of the District are divided into two categories:

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.

Business-Type Activities – The District charges fees to customers to help it cover the costs of certain services it provides. The District’s concession fund, Kid’s Club, school supply sales and yearbook sales funds are included here.

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 particularpurposes or to show that it is properly utilizing certain taxes and grants.

The District has the following types of funds:

Governmental Funds – Most of the District’s basic services are included in governmentalfunds, which focus on (1) how cash and other financial assets that can readily be converted tocash 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 thathelps you determine whether there are more or fewer financial resources that can be spent inthe near future to finance the district’s programs. Because this information does notencompass the additional long-term focus of the government-wide statements, we provideadditional information on the subsequent page that explains the relationship (or differences)between them.



8

Proprietary Funds – Services for which the District charges customers a fee are generallyreported in proprietary funds. Proprietary funds, like the government-wide statements,provide both long-term and short-term financial information. Our enterprise funds arepresented in aggregate and account for activities such as concessions, day care, and yearbooksales. We use internal service funds to report activities that provide supplies and services forthe District’s other programs and activities.

Fiduciary Funds – The District is the trustee, or fiduciary, for certain funds. The District isresponsible for ensuring that the assets reported in these funds are used for their intendedpurposes. All of the District’s fiduciary activities are reported in a separate statement offiduciary net position. We exclude these activities from the District’s government-widefinancial statements because the District cannot use these assets to finance its operations.

FINANCIAL ANALYSIS OF THE DISTRICT AS A WHOLE

The District’s combined net position was $114,174,959 at June 30, 2016.

Table A-1 Allen Independent School District’s Net Position

2016 2015 2016 2015 2016 2015Assets

Cash and Investments 326,938,875$ 163,509,923 3,154,514 2,226,470 330,093,389$ 165,736,393 Other Assets 13,619,303 10,479,984 5,852 15,029 13,625,155 10,495,013 Captial Assets, Net 481,320,659 472,568,162 - - 481,320,659 472,568,162

Total Assets 821,878,837 646,558,069 3,160,366 2,241,499 825,039,203 648,799,568

Deferred Outflows of Resources 40,468,985 7,373,311 - - 40,468,985 7,373,311

LiabilitiesCurrent Liabilities 35,108,457 34,185,412 63,670 65,923 35,172,127 34,251,335 Long-term Liabilities 712,805,774 524,342,719 - - 712,805,774 524,342,719

Total Liabilities 747,914,231 558,528,131 63,670 65,923 747,977,901 558,594,054

Deferred Inflow of Resources 3,274,829 6,244,820 80,499 - 3,355,328 6,244,820

Net PositionNet Invested in Captial Assets 18,357,741 11,002,572 - - 18,357,741 11,002,572 Restricted 27,607,831 23,955,009 - - 27,607,831 23,955,009 Unrestricted 65,193,190 54,201,388 3,016,197 2,122,984 68,209,387 56,324,372

Total Net Position 111,158,762$ 89,158,969 3,016,197 2,122,984 114,174,959$ 91,281,953

Governmental Activities Business-Type Activities Total Government

Of the District’s restricted net position, $23,897,257 represents funds held for debt retirement. These funds are accumulated from property tax collections and are restricted for debt retirement. The unrestricted net asset represents resources available to fund the programs of the District for the next year.



9

CHANGES IN NET POSITION The District’s total revenues were $251,175,655. Of this total, 65% comes from local property taxes (See Table A-2) and 30% comes from state aid and federal grants, while only 5% relates to charges for services and other miscellaneous sources and transfers including investment earnings.

The total cost of all programs and services was $228,282,649. The largest expense categories were instruction and instructional related services which totaled $123,476,411 or 54% of total expenses.

The District’s base tax collections (current and delinquent) percentage for fiscal year 2016 is 99.56%. The total tax collections (base tax plus penalty and interest) percentage for fiscal year 2016 is 102.11%.

Table A-2

Revenues: 2016 2015 2016 2015 2016 2015Program Revenues

Charges for Services 7,445,960$ 7,627,181 5,381,174 4,580,087 12,827,134$ 12,207,268 Operating Grants and Contributions 14,605,182 15,397,078 - 113,317 14,605,182 15,510,395

General RevenuesProperty Taxes 163,388,375 150,095,980 - - 163,388,375 150,095,980 State Aid Formula 47,571,376 48,499,523 - - 47,571,376 48,499,523 Grants and Contributions 4,613,595 (196,865) - - 4,613,595 (196,865) Investment Earnings 851,508 214,201 - - 851,508 214,201 Miscellaneous 7,318,485 - - - 7,318,485 - Other 6,376,879 - - - 6,376,879 Transfers 1,200,000 1,172,905 (1,200,000) (1,200,000) - (27,095)

Total General Revenue 246,994,481 229,186,882 4,181,174 3,493,404 251,175,655 232,680,286

Total Revenues

Expenses:Instruction 116,653,422 113,269,325 - - 116,653,422 113,269,325 Instruction Resources and Media Services 3,391,782 2,250,780 - - 3,391,782 2,250,780 Curriculum and Staff Development 3,431,207 2,932,382 - - 3,431,207 2,932,382 Instructional Leadership 1,657,808 1,232,223 - - 1,657,808 1,232,223 School Leasdership 11,268,442 10,441,213 - - 11,268,442 10,441,213 Guidance, Counseling and Evaluation Services 10,154,986 9,211,632 - - 10,154,986 9,211,632 Social Work Services 62,886 31,188 - - 62,886 31,188 Health Services 1,694,456 1,582,451 - - 1,694,456 1,582,451 Student Transportation 4,525,376 4,291,929 - - 4,525,376 4,291,929 Food Services 7,096,047 6,631,866 - - 7,096,047 6,631,866 Extracurricular Activities 8,015,527 6,618,969 - - 8,015,527 6,618,969 General Administration 5,849,944 5,274,797 - - 5,849,944 5,274,797 Facilities Maintenance and Operations 18,732,861 18,819,001 - - 18,732,861 18,819,001 Security and Monitoring Services 2,801,947 2,415,284 - - 2,801,947 2,415,284 Data Processing Services 5,155,071 4,699,390 - - 5,155,071 4,699,390 Community Services 84,495 21,682 - - 84,495 21,682 Debt Service 22,215,203 21,463,827 - - 22,215,203 21,463,827 Capital Outlay - - - - - - Contracted Instructional Services Between Schools 1,129,136 776,337 - - 1,129,136 776,337 Payments Related to Shared Services Arrangements - 40,449 - - - 40,449 Payment to Juvenile Justice Alt Ed. Prgm. 26,390 - - - 26,390 - Other Intergovernmental Charges 1,047,702 959,364 - - 1,047,702 959,364 Concession Stands - - - 121,439 - 121,439Kid's Club - - 2,571,730 2,612,117 2,571,730 2,612,117 Other Enterprising Activities - - 716,231 230,926 716,231 230,926

Total Expenses 224,994,688 212,964,089 3,287,961 2,964,482 228,282,649 215,928,571

Increase/(Decrease) in Net Position 21,999,793 16,222,793 893,213 528,922 22,893,006 16,751,715

Beginning Net Position 89,158,969 93,175,792 2,122,984 1,594,062 91,281,953 94,769,854 Prior Period Adjustment - (20,239,616) - - - (20,239,616) Ending Net Position 111,158,762$ 89,158,969 3,016,197 2,122,984 114,174,959 91,281,953

Total GovernmentBusiness-Type ActivitiesGovernmental Activities

Gover

Gover

ALLEN Ma

F

nment-Wide

rnment-Wid

INDEPENDanagement’s DFor the Year

e Revenues

e Expenses

DENT SCHODiscussion an Ended June

10

s for Fiscal Y

for Fiscal Y

OOL DISTRnd Analysis

e 30, 2016

Year 2016 –

Year 2016 –

RICT

See Table A

See Table A

A-2

A-2



11

Table A-3 presents the cost of selected district functions as well as the selected functions’ 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 property tax dollars.

The cost of all governmental activities this year was $224,994,688.

However, the amount that our taxpayers paid for these activities through local propertytaxes was $163,388,375.

Some of the cost was paid by those who directly benefited from the programs at $7,445,960; or

By grants and contributions at $14,605,182.

Table A-3 Net Cost of Selected District Functions

Governmental Activities

% %2016 2015 Change 2016 2015 Change

Instruction 116,653,422$ 113,269,325 3.0% 108,086,366$ 103,561,000 4.4%School Leadership 11,268,442 10,441,213 7.9% 10,709,432 9,898,451 8.2%General Administration 5,849,944 5,274,797 10.9% 5,625,966 5,076,656 10.8%Plant Maintenance & Operations 18,732,861 18,819,001 -0.5% 17,605,039 17,770,937 -0.9%Debt Service 22,215,203 21,463,827 3.5% 22,215,203 21,463,827 3.5%

Net Cost of ServicesTotal Cost of Services

FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS

Revenues from governmental fund types totaled $246,994,481. Any increase in state revenues is a result of attendance gains and state increases to the basic allotment amount per student. Any decrease in federal revenues is primarily due to a decrease in federal program revenue distributed through other agencies.

The General Fund reported an ending fund balance of $91,500,488. This was an increase in the General Fund balance from the prior year in the amount of $13,304,461. The unassigned General Fund balance decreased $5,062,067 from the prior year.

GENERAL FUND BUDGETARY HIGHLIGHTS

Over the course of the year, the District revised its budget to reflect activities in the District. With these adjustments, actual expenditures were $17,330,694 less than the final General Fund amounts. The most significant positive variances in the District’s budget occurred in instruction and instructional-related services.

Resources available were $328,758 higher than the final budgeted amount. The favorable variance was related to increases in property tax receipts.



12

CAPITAL ASSETS & DEBT ADMINISTRATION

CAPITAL ASSETS

At the end of 2016, the District had invested $481,320,659 in a broad range of capital assets, including land, construction in progress, furniture and equipment, buildings and improvements and vehicles (See Table A-4).

%2016 2015 Change

Land 32,187,384$ 29,355,484 9.6%Buildings & Improvements 572,346,989 537,051,499 6.6%Furniture & Equipment 28,703,543 26,092,994 10.0%Construction in Progress 42,986,333 55,942,988 -23.2%

Total Historical Cost 676,224,249 648,442,965 4.3%

Total Accumulated Depreciation (194,903,590) (175,874,803) -10.8%

Net Capital Assets 481,320,659$ 472,568,162 1.9%

Table A4Capital Assets

LONG TERM DEBT

At the end of 2016, the District had $712,805,774 in debt outstanding as shown in Table A-5. More detailed information about the District’s debt is presented in the notes to the basic financial statements.

%2016 2015 Change

Bonds Payable 590,830,275$ 471,368,036 25.3%Other Debt Payable 84,607,113 35,346,212 139.4%Net Pension Liability 37,368,386 17,628,471 112.0%

Total Debt 712,805,774$ 524,342,719 35.9%

More detailed information is available about the District's debt in Note 4, Section G of the Notesto the Financial Statements.

Long Term DebtTable A5



13

BOND RATINGS

The credit ratings for the District are “Aa2” by Moody’s Investors Service, Inc. and “AA” by Standard & Poor’s Rating Services. The Permanent School Fund Bond Guarantee Program allows school district’s to sell bonds with an “AAA” rating.

ECONOMIC FACTORS

General Fund Revenues for 2016-17 are budgeted to increase 4.3% over prior year balances. The increase reflects the net result of increases to student enrollment and property taxes along with an increase in the basic allotment per student within the State funding formula. The certified property values for the 2016 tax year are $11.3 billion which is a $1.2 billion, or 11.0%, increase over the previous tax year. Future taxable value growth is expected to continue to reflect strong increases, but at a lower percent rate than year 2016, as new business and home construction continues within the District’s 29 square miles.

For 2016-2017, the property tax rate for Maintenance and Operations is held the same as last year at $1.14 per $100 of taxable value. The Interest & Sinking (I&S) tax rate for paying the District’s annual principal and interest payments on its bond debt is lower by two pennies – now at $0.45 per $100 of taxable value.

CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, taxpayers, customers, and 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 District’s Finance Department at Allen Independent School District, 612 E. Bethany Drive, Allen, Texas 75002.


14

GOVERNMENT-WIDE FINANCIAL STATEMENTS

15


16

EXHIBIT A-1ALLEN INDEPENDENT SCHOOL DISTRICTSTATEMENT OF NET POSITION

JUNE 30, 20161 2 3

ControlData

CodesGovernmental

Activities ActivitiesType

Business

Total

Primary Government

ASSETS3,154,363 1,193,477 4,347,840 Cash and Cash Equivalents $ $ $1110

151 325,745,398 325,745,549 Current Investments1120-2,676,814 2,676,814Property Taxes Receivable (Delinquent)1220-(133,841) (133,841)Allowance for Uncollectible Taxes1230-10,511,258 10,511,258Due from Other Governments1240

1,269 62,299 63,568 Other Receivables, net1290-298,831 298,831 Inventories1300

4,583 203,942 208,525 Prepayments1410Capital Assets:

-32,187,384 32,187,384 Land1510-398,891,421 398,891,421 Buildings, Net1520-7,255,521 7,255,521 Furniture and Equipment, Net1530-42,986,333 42,986,333 Construction in Progress1580

Total Assets1000 821,878,837 3,160,366 825,039,203 DEFERRED OUTFLOWS OF RESOURCES

-22,375,204 22,375,204 Deferred Charge for Refunding1701-18,093,781 18,093,781 Deferred Outflow Related to TRS1705

Total Deferred Outflows of Resources1700 40,468,985 - 40,468,985LIABILITIES

47,406 8,803,711 8,851,117 Accounts Payable2110-9,602,048 9,602,048Interest Payable2140-8,021 8,021Payroll Deductions & Withholdings2150

16,264 16,618,980 16,635,244Accrued Wages Payable2160-141 141Due to Other Governments2180-75,556 75,556Accrued Expenses2200

Noncurrent Liabilities-23,165,000 23,165,000 Due Within One Year2501-652,272,388 652,272,388 Due in More Than One Year2502-37,368,386 37,368,386 Net Pension Liability (District's Share)2540

Total Liabilities2000 747,914,231 63,670 747,977,901 DEFERRED INFLOWS OF RESOURCES

80,499 494,141 574,640 Deferred Resource Inflow2602-2,780,688 2,780,688 Deferred Inflow Related to TRS2605

Total Deferred Inflows of Resources2600 3,274,829 80,499 3,355,328 NET POSITION

-18,357,741 18,357,741Net Investment in Capital Assets3200Restricted:

-3,710,574 3,710,574Restricted for Federal and State Programs3820-23,897,257 23,897,257Restricted for Debt Service3850

3,016,197 65,193,190 68,209,387Unrestricted3900Total Net Position3000 111,158,762 3,016,197 114,174,959 $ $ $

17The notes to the financial statements are an integral part of this statement.

ALLEN INDEPENDENT SCHOOL DISTRICTSTATEMENT OF ACTIVITIES

FOR THE YEAR ENDED JUNE 30, 2016

ControlData

Codes Expenses ServicesCharges for

ContributionsGrants andOperating

Program Revenues

431

Primary Government:GOVERNMENTAL ACTIVITIES:

305,065 116,653,422 8,261,991 Instruction $ $ $11-3,391,782 102,767Instructional Resources and Media Services12-3,431,207 460,995Curriculum and Staff Development13-1,657,808 114,589Instructional Leadership21-11,268,442 559,010School Leadership23-10,154,986 1,504,186Guidance, Counseling and Evaluation Services31-62,886 3,939Social Work Services32-1,694,456 81,897Health Services33-4,525,376 627,452Student (Pupil) Transportation34

5,311,984 7,096,047 2,020,559Food Services35895,146 8,015,527 139,349 Extracurricular Activities36

-5,849,944 223,978General Administration41933,765 18,732,861 194,057Facilities Maintenance and Operations51

-2,801,947 83,257Security and Monitoring Services52-5,155,071 113,872Data Processing Services53-84,495 103,004Community Services61-19,729,357 -Debt Service - Interest on Long Term Debt72-2,485,846 -Debt Service - Bond Issuance Cost and Fees73- - 10,280 Capital Outlay81

- 1,129,136 - Contracted Instructional Services Between Schools91 - 26,390 - Payments to Juvenile Justice Alternative Ed. Prg.95 - 1,047,702 - Other Intergovernmental Charges99

224,994,688 7,445,960 14,605,182 [TG] Total Governmental Activities:

BUSINESS-TYPE ACTIVITIES:535,089 445,817 - Enterprise Funds - Locally Defined01

4,491,308 2,571,730 - Kids Club; After School; Community Ed; Learn&Play0226,445 24,667 - Wrapped School Packs/School Supplies0358,785 43,395 - Yearbooks HS/Lowry Freshman Center0410,341 10,775 - Yearbooks MS0661,035 48,596 - Yearbooks ES07

198,171 142,981 - Eagle Edge HS Store08

3,287,961 5,381,174 - [TB] Total Business-Type Activities:

[TP] TOTAL PRIMARY GOVERNMENT: 228,282,649 12,827,134 14,605,182 $ $ $DataControlCodes

General Revenues:Taxes:

Property Taxes, Levied for General PurposesMT Property Taxes, Levied for Debt ServiceDT

State Aid - Formula GrantsSFGrants and Contributions not RestrictedGCInvestment EarningsIEMiscellaneous Local and Intermediate RevenueMI

Transfers In (Out)FR

Total General Revenues & TransfersTR

Net Position - BeginningChange in Net Position

Net Position--Ending

CNNB

NE


EXHIBIT B-1

EXHIBIT B-1Net (Expense) Revenue and

Activities ActivitiesBusiness Type

TotalGovernmental

Changes in Net Position

6 7 8Primary Government

-(108,086,366) (108,086,366)$ $ $-(3,289,015) (3,289,015)-(2,970,212) (2,970,212)-(1,543,219) (1,543,219)-(10,709,432) (10,709,432)-(8,650,800) (8,650,800)-(58,947) (58,947)-(1,612,559) (1,612,559)-(3,897,924) (3,897,924)-236,496 236,496-(6,981,032) (6,981,032)-(5,625,966) (5,625,966)-(17,605,039) (17,605,039)-(2,718,690) (2,718,690)-(5,041,199) (5,041,199)-18,509 18,509-(19,729,357) (19,729,357)-(2,485,846) (2,485,846)-10,280 10,280-(1,129,136) (1,129,136)-(26,390) (26,390)-(1,047,702) (1,047,702)

(202,943,546) - (202,943,546)

89,272- 89,272 1,919,578- 1,919,578

1,778- 1,778 15,390- 15,390

(434) - (434)12,439- 12,439 55,190- 55,190

- 2,093,213 2,093,213

(202,943,546) 2,093,213 (200,850,333)

-115,660,393 115,660,393-47,727,982 47,727,982-47,571,376 47,571,376-4,613,595 4,613,595-851,508 851,508-7,318,485 7,318,485

(1,200,000)1,200,000 -

224,943,339 (1,200,000) 223,743,339

21,999,793 89,158,969

111,158,762 $

893,213 2,122,984

3,016,197 $

22,893,006 91,281,953

114,174,959 $

19


20

GOVERNMENTAL FUNDS FINANCIAL STATEMENTS

21

ALLEN INDEPENDENT SCHOOL DISTRICTBALANCE SHEET

GOVERNMENTAL FUNDSJUNE 30, 2016

ControlData

CodesGeneral

Fund FundDebt Service

50

ProjectsCapital

6010

ASSETS94,178 1,258,441 819,030 Cash and Cash Equivalents $ $ $1110

22,850,455 97,946,591 196,057,538 Investments - Current1120791,462 1,885,352 - Property Taxes - Delinquent1220(39,573)(94,268) - Allowance for Uncollectible Taxes (Credit)123012,957 8,866,452 - Receivables from Other Governments1240

- - 3,223,309 Due from Other Funds1260-53,898 101Other Receivables1290-272,275 -Inventories1300-195,324 -Prepayments1410

Total Assets1000 110,384,065 23,709,479 200,099,978 $ $ $

LIABILITIES-880,607 7,464,086Accounts Payable $ $ $2110-8,021 -Payroll Deductions and Withholdings Payable2150-15,914,618 -Accrued Wages Payable2160-731,405 3,223,309Due to Other Funds2170- - - Due to Other Governments2180

- 5,518 - Accrued Expenditures2200

Total Liabilities2000 17,540,169 - 10,687,395DEFERRED INFLOWS OF RESOURCES

564,111 1,343,408 - Unavailable Revenue - Property Taxes2601- - - Unavailable Revenue - Other2602

Total Deferred Inflows of Resources2600 1,343,408 564,111 -

FUND BALANCESNonspendable Fund Balance:

- 272,275 - Inventories3410 - 195,324 - Prepaid Items3430

Restricted Fund Balance:- - - Federal or State Funds Grant Restriction3450-1,016 189,412,583 Capital Acquisition and Contractural 3470

23,145,368- - Retirement of Long-Term Debt3480Committed Fund Balance:

- - - Other Committed Fund Balance3545Assigned Fund Balance:

- 9,700,000 - Construction3550 - 8,100,000 - Capital Expenditures for Equipment3570 - 400,000 - Other Assigned Fund Balance3590 - 72,831,873 - Unassigned Fund Balance3600

Total Fund Balances3000 91,500,488 23,145,368 189,412,583

$ 110,384,065 $ 23,709,479 $ 200,099,978 Total Liabilities, Deferred Inflows & Fund Balances4000


EXHIBIT C-1

Continued

EXHIBIT C-1

OtherFunds Funds

GovernmentalTotal

(1,011,190) 1,160,459 $ $7,169,218 324,023,802

- 2,676,814- (133,841)

1,631,849 10,511,258 - 3,223,309

8,300 62,29926,556 298,831

- 195,324

7,824,733 342,018,255 $ $

76,645 8,421,338 $ $- 8,021

704,362 16,618,980- 3,954,714

141 141 70,038 75,556

851,186 29,078,750

- 1,907,519494,141 494,141

494,141 2,401,660

26,556 298,831 - 195,324

3,710,574 3,710,574- 189,413,599- 23,145,368

2,742,276 2,742,276

- 9,700,000- 8,100,000- 400,000- 72,831,873

6,479,406 310,537,845

$ $ 342,018,255 7,824,733

23


24

EXHIBIT C-2ALLEN INDEPENDENT SCHOOL DISTRICT

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THESTATEMENT OF NET POSITION

JUNE 30, 2016

310,537,845 $Total Fund Balances - Governmental Funds

2,112,264 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 (decrease) net position.

1,200,126 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 $648,442,965 and the accumulated depreciation was $175,874,803. In addition, long-term liabilities, including bonds payable of $471,368,036, 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 increase (decrease) net position.

53,210,711 3 Current year capital outlays of $29,835,711 and long-term debt principal payments of $23,375,000 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 current year capital outlays and debt principal payments is to increase (decrease) net position.

(22,055,293)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 in the amount of $37,368,386, a Deferred Resource Inflow related to TRS in the amount of $2,780,688 and a Deferred Resource Outflow related to TRS in the amount of $18,093,781. This amounted to a decrease in Net Position in the amount of $22,055,293.

(9,602,048)5 Accrued interest payable on long-term debt is not shown on the fund financial statements, but is shown on the government-wide financial statements. The effect of including accrued interest payable is to decrease net position.

(5,175,146)6 Accreted interest on capital appreciation bonds are not included on the fund financial statements, but is included on the government-wide financial statements. The effect of including accreted interest is to decrease net position.

(19,028,787)7 The current year depreciation expense increases accumulated depreciation. The net effect of the current year's depreciation is to decrease net position.

(200,040,910)8 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, eliminating interfund transactions, 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 is to increase (decrease) net position.

111,158,762 $19 Net Position of Governmental Activities


ALLEN INDEPENDENT SCHOOL DISTRICTSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

GOVERNMENTAL FUNDSFOR THE YEAR ENDED JUNE 30, 2016

ControlData

Codes FundGeneral

10

FundDebt Service

50

ProjectsCapital

60

REVENUES:119,133,583 47,486,485 1,823,424 Total Local and Intermediate Sources $ $ $5700

54,880,605 958,743 7,666 State Program Revenues580011,117 - - Federal Program Revenues5900

Total Revenues5020 174,025,305 48,445,228 1,831,090

EXPENDITURES:Current:

96,905,562 - - Instruction00112,035,272 - - Instructional Resources and Media Services00122,834,397 - - Curriculum and Instructional Staff Development00131,561,069 - - Instructional Leadership00219,352,186 - - School Leadership00237,961,481 - - Guidance, Counseling and Evaluation Services0031

60,302 - - Social Work Services00321,582,926 - - Health Services00333,276,433 - - Student (Pupil) Transportation0034

22,895 - - Food Services00353,853,698 - - Extracurricular Activities00365,365,277 - - General Administration0041

17,704,578 - - Facilities Maintenance and Operations00512,462,253 - 70,556Security and Monitoring Services00524,972,042 - - Data Processing Services0053

17,171 - - Community Services0061Debt Service:

- 23,375,000 - Principal on Long Term Debt0071- 21,127,048 - Interest on Long Term Debt0072- 2,485,846 - Bond Issuance Cost and Fees0073

Capital Outlay:84,794 - 29,140,522Facilities Acquisition and Construction0081

Intergovernmental:1,129,136 - - Contracted Instructional Services Between Schools0091

26,390 - - Payments to Juvenile Justice Alternative Ed. Prg.00951,047,702 - - Other Intergovernmental Charges0099

Total Expenditures6030 162,255,564 46,987,894 29,211,078

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

11,769,741 1,457,334 (27,379,988)

OTHER FINANCING SOURCES (USES): - 126,900,000 175,000,000 Capital Related Debt Issued (Regular Bonds)7911- - 2,053,820 Sale of Real and Personal Property7912

1,553,382 - - Transfers In7915- 53,633,619 - Premium or Discount on Issuance of Bonds7916

(18,662) - - Transfers Out (Use)8911- (178,064,592) - Other (Uses)8949

Total Other Financing Sources (Uses) 7080 1,534,720 2,469,027 177,053,820

1200 Net Change in Fund Balances 13,304,461 3,926,361 149,673,832 0100 Fund Balance - July 1 (Beginning) 78,196,027 19,219,007 39,738,751

3000 Fund Balance - June 30 (Ending) $ 91,500,488 $ 23,145,368 $ 189,412,583


EXHIBIT C-3

Continued

EXHIBIT C-3

OtherFunds Funds

GovernmentalTotal

177,820,422 9,376,930 $ $57,090,814 1,243,800

5,811,544 5,800,427

16,421,157 240,722,780

102,416,408 5,510,846 2,096,906 61,634 3,193,844 359,447 1,603,403 42,334 9,559,694 207,508 9,042,930 1,081,449

60,492 190 1,583,167 241 3,722,380 445,947 7,345,596 7,322,701 5,591,937 1,738,239 5,384,330 19,053

17,705,067 489 2,542,218 9,409 4,984,612 12,570

19,418 2,247

23,375,000-21,127,048-

2,485,846-

29,264,46439,148

1,129,136-26,390-

1,047,702-

16,853,452 255,307,988

(432,295) (14,585,208)

301,900,000-2,053,820-1,572,04418,662

53,633,619-(372,044)(353,382)

(178,064,592)-

(334,720) 180,722,847

(767,015) 166,137,639 7,246,421 144,400,206

$ 6,479,406 $ 310,537,845

27


28

EXHIBIT C-4ALLEN INDEPENDENT SCHOOL DISTRICT

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


166,137,639 $Total Net Change in Fund Balances - Governmental Funds

563,087 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 (decrease) net position.

53,210,711 Current year capital outlays of $29,835,711 and long-term debt principal payments of $23,375,000 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 current year capital outlays and debt principal payments is to increase (decrease) net position.

(1,625,176)Accrued interest payable on long-term debt is not shown on the fund financial statements, but is shown on the government-wide financial statements. The effect of including accrued interest payable is to increase (decrease) net position.

601,067 Accreted interest on capital appreciation bonds are not included on the fund financial statements, but is included on the government-wide financial statements. The effect of including accreted interest is to decrease net position.

(19,028,787)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.

(176,154,987)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, eliminating interfund transactions, 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 increase (decrease) net position.

(1,703,761)The implementation of GASB 68 required that certain expenditures be de-expended and recorded as deferred resource outflows. These contributions made after the measurement date of 08/31/15 caused the change in the ending net position to increase in the amount of $2,674,908. Contributions made before the measurement date and during the 2014 fiscal year were also expended in the 2015 fiscal year and recorded as an increase in net pension expense for the District. This caused a decrease in the change in net position totaling $1,251,041. The District's proportionate share of the TRS pension expense on the plan as a whole had to be recorded. The net pension expense decreased the change in net position by $3,127,628.

21,999,793 $ Change in Net Position of Governmental Activities



30

PROPRIETARY FUNDS FINANCIAL STATEMENTS

31


32

EXHIBIT D-1ALLEN INDEPENDENT SCHOOL DISTRICTSTATEMENT OF NET POSITION

PROPRIETARY FUNDSJUNE 30, 2016

TotalEnterprise

Funds Service FundsInternal

Total

Governmental Activities -

Business-Type Activities -

ASSETSCurrent Assets:

33,018 3,154,363 Cash and Cash Equivalents $ $1,721,596 151 Investments - Current

731,405-Due from Other Funds - 1,269 Other Receivables

8,618 4,583 Prepayments

Total Assets 3,160,366 2,494,637

LIABILITIESCurrent Liabilities:

382,373 47,406 Accounts Payable - 16,264 Accrued Wages Payable

Total Liabilities 63,670 382,373

DEFERRED INFLOWS OF RESOURCES - 80,499 Unavailable Revenue - Other

Total Deferred Inflows of Resources 80,499 -

NET POSITION2,112,264 3,016,197 Unrestricted Net Position

Total Net Position 3,016,197 2,112,264 $ $


EXHIBIT D-2ALLEN INDEPENDENT SCHOOL DISTRICT

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITIONPROPRIETARY FUNDS


TotalEnterprise

Funds Service FundsInternal

Total

Business-Type Activities -


OPERATING REVENUES:1,035,434 5,269,480 Local and Intermediate Sources $ $

- 111,694 State Program Revenues

Total Operating Revenues 5,381,174 1,035,434

OPERATING EXPENSES: - 2,229,973 Payroll Costs - 148,626 Professional and Contracted Services - 465,173 Supplies and Materials

478,964 418,284 Other Operating Costs - 25,905 Capital Outlay

Total Operating Expenses 3,287,961 478,964

Operating Income 2,093,213 556,470

NONOPERATING REVENUES (EXPENSES):6,617-Earnings from Temporary Deposits & Investments

Total Nonoperating Revenues (Expenses) - 6,617

Income Before Transfers 2,093,213 563,087

- (1,200,000)Transfers OutChange in Net Position

Total Net Position July 1 (Beginning)

Total Net Position June 30 (Ending)

893,213 2,122,984

$ 3,016,197

563,087 1,549,177

$ 2,112,264


EXHIBIT D-3ALLEN INDEPENDENT SCHOOL DISTRICTSTATEMENT OF CASH FLOWS

FOR THE YEAR ENDED JUNE 30, 2016PROPRIETARY FUNDS

Total TotalEnterprise Internal

Funds Service Funds


Business-Type Activities

Cash Flows from Operating Activities:1,003,007 5,418,075 Cash Received from User Charges $ $

- (2,232,134)Cash Payments to Employees for Services(305,043)(613,859)Cash Payments for Suppliers(478,964)(444,189)Cash Payments for Other Operating Expenses

2,127,893 Net Cash Provided by Operating

219,000 ActivitiesCash Flows from Non-Capital Financing Activities:

- (1,200,000)Operating Transfer OutCash Flows from Investing Activities:

6,617-Interest and Dividends on InvestmentsNet Increase in Cash and Cash Equivalents 927,893 225,617 Cash and Cash Equivalents at Beginning of Year 2,226,621 1,528,997

Cash and Cash Equivalents at End of Year 3,154,514 1,754,614

Cash on Balance Sheet:

(151)

3,154,363 $

(1,721,596)

33,018 $

Temporary Investment Not in Cash Equivalents

Operating Income: $ $

Reconciliation of Operating Income to Net CashProvided by Operating Activities:

2,093,213 556,470

Assets and Liabilities:Effect of Increases and Decreases in Current

- 9,145 Decrease (increase) in Receivables(288)32 Decrease (increase) in Prepaid Expenses

(304,755)2,292 Increase (decrease) in Accounts Payable - (2,670)Increase (decrease) in Accrued Wages Payable

(32,427)-Increase (decrease) in Due from Other Funds - 27,756 Increase (decrease) in Unavailable Revenue - (1,875)Increase (decrease) in Due to State

Net Cash Provided by Operating219,000 Activities 2,127,893 $ $


36


FIDUCIARY FUNDS FINANCIAL STATEMENTS

37

EXHIBIT E-1ALLEN INDEPENDENT SCHOOL DISTRICT

STATEMENT OF FIDUCIARY NET POSITIONFIDUCIARY FUNDS

JUNE 30, 2016

PrivatePurpose

Trust Funds FundsAgency

ASSETS(214,279)3,995 Cash and Cash Equivalents $ $654,076 17,440 Investments - Current

- 4,500 Other Receivables

Total Assets 25,935 439,797 $

LIABILITIES1,699 -Accounts Payable $

- 1,370 Accrued Wages Payable387,991-Due to Student Groups

2,656-Accrued Expenses47,451-Payable from Restricted Assets

Total Liabilities 1,370 439,797 $

NET POSITION24,565 Unrestricted Net Position

Total Net Position 24,565 $

38

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

EXHIBIT E-2ALLEN INDEPENDENT SCHOOL DISTRICT

STATEMENT OF CHANGES IN FIDUCIARY FUND NET POSITIONFIDUCIARY FUNDS


PrivatePurpose

Trust Funds

ADDITIONS:81,940 Local and Intermediate Sources $

2,545 State Program Revenues

Total Additions 84,485

DEDUCTIONS:79,948 Payroll Costs

1,000 Other Operating Costs

Total Deductions 80,948

Change in Net Position

Total Net Position July 1 (Beginning)

Total Net Position June 30 (Ending)

3,537

21,028

$ 24,565



40

41

NOTES TO THE FINANCIAL STATEMENTS


42

ALLEN INDEPENDENT SCHOOL DISTRICT Notes to Financial Statements

Year Ended June 30, 2016

43

(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Allen Independent School District (the "District") is a public educational agency operatingunder the applicable laws and regulations of the State of Texas. It is governed by a sevenmember Board of Trustees (the “Board”) elected by registered voters of the District. TheDistrict prepares its basic financial statements in conformity with accounting principlesgenerally accepted in the United States of America promulgated by the GovernmentalAccounting Standards Board and other authoritative sources. It complies with therequirements of the appropriate version of Texas Education Agency’s FinancialAccountability System Resource Guide (the “Resource Guide”) and the requirements ofcontracts and grants of agencies from which it receives funds.

A. Reporting Entity

The Board is elected by the public and it has the authority to make decisions, appointadministrators and managers, and significantly influence operations. It also has theprimary accountability for fiscal matters. Therefore, the District is a financial reportingentity as defined by the Governmental Accounting Standards Board (“GASB”) in itsStatement No. 14, “The Financial Reporting Entity.” There are no component unitsincluded within the reporting entity.

B. Government-Wide & Fund Financial Statements

The government-wide financial statements (i.e., the Statement of Net Position and theStatement of Activities) report information on all of the non-fiduciary activities of theDistrict. For the most part, the effect of inter-fund activity has been removed from thesestatements. Governmental activities, which normally are supported by taxes andintergovernmental revenues, are reported separately from business-type activities, whichrely to a significant extent on fees and charges for support.

The Statement of Activities demonstrates the degree to which the direct expenses of agiven function or segment are offset by program revenues. Direct expenses are those thatare clearly identifiable with a specific function or segment. Program revenues include 1)charges to customers or applicants who purchase, use, or directly benefit from goods,services, or privileges provided by a given function or segment and 2) grants andcontributions that are restricted to meeting the operational or capital requirements of aparticular function or segment. Taxes and other items not properly included amongprogram revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds, proprietary funds,and fiduciary funds, even though the latter are excluded from the government-widefinancial statements. Major individual governmental funds are reported as separatecolumns in the fund financial statements.

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

The government-wide financial statements are reported using the economic resourcesmeasurement focus and the accrual basis of accounting, as are the proprietary fund andfiduciary fund financial statements. Revenues are recorded when earned and expensesare recorded when a liability is incurred, regardless of the timing of related cash flows.Property taxes are recognized as revenues in the year for which they are levied. Grantsand similar items are recognized as revenue as soon as all eligibility requirementsimposed by the provider have been met.



44

(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

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

Governmental fund financial statements are reported using 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 un-matured interest and principal on long-term debt, which is recognized when due. The expenditures related to certain compensated absences and claims and judgments are recognized when the obligations are expected to be liquidated with expendable available financial resources. The District considers all revenues available if they are collectible within 60 days after year end.

Revenues from local sources consist primarily of property taxes. Property tax revenues and revenues received from the State are recognized under the susceptible to accrual concept, that is, when they are both measurable and available. The District considers them “available” if they will be collected within 60 days of the end of the fiscal year. 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 Fund Types and Fiduciary Funds are accounted for on a flow of economic resources measurement focus and utilize the accrual basis of accounting. This basis of accounting recognizes revenues in the accounting period in which they are earned and become measurable and expenses in the accounting period in which they are incurred and become measurable. The District applies all GASB pronouncements as well as the Financial Accounting Standards Board pronouncements issued on or before November 30, 1989, unless these pronouncements conflict or contradict GASB pronouncements. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the fund Statement of Net Position. The fund equity is segregated into invested in capital assets net of related debt, restricted Net Position, and unrestricted Net Position.



45


D. Fund Accounting

The District reports the following major governmental funds:

1. General Fund – The general fund is the district’s primary operating fund. Itaccounts for all financial resources except those required to be accounted for inanother fund.

2. Debt Service Fund – The District accounts for resources accumulated andpayments made for principal and interest on long-term general obligation debt ofgovernmental funds in a debt service fund.

3. Capital Projects Fund – The proceeds from long-term debt financing and revenuesand expenditures related to authorized construction and other capital assetacquisitions are accounted for in a capital projects fund.

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

Governmental Funds:

1. Special Revenue Funds – The District accounts for resources restricted to, ordesignated for, specific purposes by the District or a grantor in a special revenuefund. Most Federal and some State financial assistance is accounted for in a SpecialRevenue Fund, and sometimes unused balances must be returned to the grantor atthe close of specified project periods.

Fiduciary Funds:

E. Assets, Liabilities & Net Position or Equity

1. Deposits & Investments

The District’s cash and cash equivalents are considered to be cash on hand, demanddeposits, and short-term investments with original maturities of three months or lessfrom the date of acquisition.

2. Due from/(to) Other Funds

Inter-fund receivables and payables arise from inter-fund transactions and arerecorded in all affected funds in the period in which transactions are executed in thenormal course of operations.

2. Agency Funds – The District accounts for resources held for others in a custodialcapacity in agency funds. The District’s Agency Fund is for student groups.



46


E. Assets, Liabilities & Net Position or Equity (continued)

3. Capital Assets

Capital assets, which include property, plant, and equipment, are reported in theapplicable governmental activities columns in the government-wide financialstatements. Capital assets are defined by the government as assets with an initial,individual cost of more than $5,000 and an estimated useful life in excess of twoyears. Such assets are recorded at historical cost or estimated historical cost ifpurchased or constructed. Donated capital assets are recorded at estimated fairmarket value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the assetor materially extend assets lives are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects areconstructed.

Property, plant and equipment of the district is depreciated using the straight linemethod over the following estimated useful lives:

4. Vacation & Sick Leave

It is the District’s policy to permit some employees to accumulate earned, but unusedvacation and sick pay benefits. There is no liability for unpaid accumulated sick leavesince the District does not have a policy to pay any amounts when employeesseparate from service. All vacation pay is accrued when incurred in the government-wide, proprietary, and fiduciary fund financial statements. A liability for theseamounts is reported in governmental funds only if they have matured, for example,as a result of employee resignations and retirements.

5. Long-Term Obligations

In the government-wide financial statements, and proprietary fund types in the fundfinancial statements, long-term debt and other long-term obligations are reported asliabilities in the applicable governmental activities, business-type activities, orproprietary fund type statement of Net Position. Bond premiums and discounts, aswell as issuance costs, are deferred and amortized over the life of the bonds using theeffective interest method. Bonds payable are reported net of the applicable bondpremium or discount. Bond issuance costs are reported as deferred charges andamortized over the term of the related debt.

Assets YearsBuildings 40Building Improvements 20Vehicles 5-10Office Equipment 5-7Computer Equipment 5-7



47



5. Long-Term Obligations (continued)

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

6. Fund Equity

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

• Non-Spendable: 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.

• Restricted: This classification includes amounts for which constraints have been placed on the use of the resources either (a) externally imposed by creditors (such as though a debt covenant), 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 formal action of the Board of Trustees. These amounts cannot be used for any other purpose unless the Board of Trustees removes or changes the specified use by taking the same type of action (ordinance or resolution) that was employed when the funds were initially committed. This classification also includes contractual obligations to the extent that existing resources have been specifically committed for use in satisfying those contractual requirements.

• 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 expressed by an official to which the Board of Trustees delegates this authority.

• Unassigned: This classification includes amounts that have not been assigned to other funds or restricted, committed or assigned to a specific purpose within the General Fund.



48



6. Fund Equity (continued)

When an expenditure is incurred for purposes for which both restricted andunrestricted fund balance is available, the District considers restricted funds to havebeen spent first. When an expenditure is incurred for which committed, assigned, orunassigned fund balances are available, the District considers amounts to have beenspent in the following order: restricted, committed, assigned, and unassigned.

As of June 30, 2016, fund balances are composed of the following:

Debt Capital Other TotalGeneral Service Projects Governmental Governmental

Fund Fund Fund Funds Funds

Nonspendable:Inventories 272,275$ - - 26,556 298,831 Prepaid Items 195,324 - - - 195,324

Restricted:Debt Service - 23,145,368 - - 23,145,368 Federal and State Grants - - 3,710,574 3,710,574 Capital Projects 1,016 189,412,583 - 189,413,599

- - - 2,742,276 2,742,276 Committed:

Other Committed -Exhibit G1

Assigned:Construction 9,700,000 - - - 9,700,000 Capital Expenditures 8,100,000 - - - 8,100,000 Maintenance 400,000 - - - 400,000 Other Assigned - - - - -

Unassigned 72,831,873 - - - 72,831,873

Total Fund Balances 91,500,488$ 23,145,368 189,412,583 6,479,406 310,537,845$

7. Data Control Codes

The Data Control Codes refer to the account code structure prescribed by T.E.A. inthe Financial Accountability System Resources Guide. Texas Education Agencyrequires school districts to display these codes in the financial statements filed withthe Agency in order to insure accuracy in building a Statewide data base for policydevelopment and funding plans.

School Districts are required to report all expenses by function, except certainindirect expenses. General administration and data processing service functions(data control codes 41 and 53, respectively) include expenses that are indirectexpenses of other functions. These indirect expenses are not allocated to otherfunctions.



49

(2) RECONCILIATION OF GOVERNMENT-WIDE & FUND FINANCIAL STATEMENTS

A. Explanation of Certain Differences Between the Governmental Fund BalanceSheet and the Government-Wide Statement of Net Position

Exhibit C-2 provides a reconciliation between fund balance - total governmental fundsand Net Position - governmental activities as reported in the government-wide statementof Net Position. One element of that reconciliation explains that “various otherreclassifications and eliminations are necessary to convert from the modified accrualbasis of accounting to the full accrual basis of accounting.” The details of this$(200,040,910) adjustment are as follows:

Long Term Debt:Issuance of Bonds (142,837,239)$ Premium and Discount Costs on Bonds (78,746,300) Deferred Loss on Refunding Bonds 22,375,204 Compensated Absences (685,667)

(199,894,002)

Capital Assets:Disposal of Capital Assets (2,054,427)

(2,054,427)

Unavailable RevenueTo move the current year uncollected tax levy from unavailable revenue 966,914 To remove prior year collectible delinquent tax levy receivable 1,576,059 To reverse out the 60-day rule (635,454)

1,907,519

Net adjustment to decrease fund balance - total governmentalfunds to arrive at net position - governmental activities (200,040,910)$



50

(2) RECONCILIATION OF GOVERNMENT-WIDE & FUND FINANCIAL STATEMENTS(continued)

B. Explanation of Certain Differences Between the Governmental Fund Statementof Revenues, Expenditures & Changes in Fund Balances and the Government-Wide Statement of Activities

Exhibit C-4 provides a reconciliation between net changes in fund balances – totalgovernmental funds and changes in Net Position of governmental activities as reported inthe government-wide statement of activities. One element of that reconciliation explainsthat “various other reclassifications are necessary to convert from the modified accrualbasis of accounting to the full accrual basis of accounting.” The details of this$(176,154,987) adjustment are as follows:

Long-Term debt:Issuance of Bonds Payable (142,837,239)$ Current year amortization 2,421,800 Current year premium and discount cost on bonds (53,633,619) Compensated Absences 19,001,831 Current year deferred loss on refunding bonds 19,454

(175,027,773)

Capital Assets:Disposal of Capital Assets (2,054,427)

(2,054,427)

Taxes:To move current year and prior year uncollected tax levy to revenue 927,213

927,213

Net adjustment to increase net changes in fund balances -total governmental funds to arrive at changes tonet position of governmental activities (176,154,987)$

(3) STEWARDSHIP, COMPLIANCE & ACCOUNTABILITY

A. Budgetary Data

The Board of Trustees adopts an “appropriated budget” for the General Fund, DebtService Fund and the Food Service Fund which is included in the Special RevenueFunds. The District is required to present the adopted and final amended budgetedrevenues and expenditures for each of these funds. The District compares the finalamended budget to actual revenues and expenditures. The General Fund Budget reportappears in Exhibit F-1 and the other two reports are in Exhibit H-2 and H-3.

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

1. The District prepares a budget for the next succeeding fiscal year beginning July 1.The operating budget includes proposed expenditures and the means of financingthem.



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(3) STEWARDSHIP, COMPLIANCE & ACCOUNTABILITY (continued)

A. Budgetary Data (continued)

2. A meeting of the Board is then called for the purpose of adopting the proposedbudget. At least ten days’ public notice of the meeting must be given.

3. Prior to July 1, the budget is legally enacted through passage of a resolution by theBoard. Once a budget is approved, it can only be amended at the function and fundlevel by approval of a majority of the members of the Board. Amendments arepresented to the Board at its regular meetings. Each amendment must have Boardapproval. As required by law, such amendments are made before the fact, arereflected in the official minutes of the Board and are not made after fiscal year end.The budget was properly amended throughout the year by the Board of Trustees.

4. Each budget is controlled by the budget coordinator at the revenue and expenditurefunction/object level. Budgeted amounts are as amended by the Board. All budgetappropriations lapse at year end. A reconciliation of fund balances for bothappropriated budget and non-appropriated budget special revenue funds is asfollows:

June 30, 2016 Fund Balance

Appropriated budget funds - Food Service Special Revenue Fund 3,682,882$ Non-appropriated budget funds 2,743,694

All Special Revenue Funds 6,426,576$

B. Encumbrance Accounting

The District employs encumbrance accounting, whereby encumbrances for goods orpurchased services are documented by purchase orders and contracts. An encumbrancerepresents a commitment or Board appropriation related to unperformed contracts forgoods and services. The issuance of a purchase order or the signing of a contract createsan encumbrance but does not represent an expenditure for the period, only commitmentto expend resources. Appropriations lapse at June 30 and encumbrances outstanding atthat time are either canceled or appropriately provided for in the subsequent year'sbudget. There were no outstanding encumbrances at year end.

(4) DETAILED NOTES ON ALL FUNDS

A. Deposits & 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 bankplaces approved pledged securities for safekeeping and trust with the District’s agentbank in an amount sufficient to protect District funds on a day-to-day basis during theperiod of the contract. The pledge of approved securities is waived only to the extent ofthe depository bank’s dollar amount of Federal Deposit Insurance Corporation (“FDIC”)insurance.



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(4) DETAILED NOTES ON ALL FUNDS (continued)

A. Deposits & Investments (continued)

The District's combined deposits at June 30, 2016, and during the year ended June 30,2016 were fully insured by federal depository insurance or collateralized with securitiespledged to the District and held by the District's agent.

In addition the following is disclosed regarding coverage of combined balances on thedate of highest deposit:

a. Name of bank – American National Bank of Texasb. The market value of securities pledged as of the date of the highest combined balance

on deposit was $16,445,419.c. The highest combined balances of cash, savings and time of deposit accounts

amounted to $9,703,475 and occurred during the month of July.d. Total amount of FDIC coverage at the time of highest combined balance was

$250,000.

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. That policy must address the following areas: (1) safety of principal and liquidity, (2) portfolio diversification, (3) allowable investments, (4) acceptable risk levels, (5) expected rates of return, (6) maximum allowable statedmaturity of portfolio investments, (7) maximum average dollar-weighted maturityallowed based on the stated maturity date for the portfolio, (8) investment staff qualityand capabilities, and (9) bid solicitation preferences for certificates of deposit. Statutesauthorize 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 municipalsecurities; (4) money market savings account; (5) repurchase agreements, (6) bankersacceptances, (7) Mutual Fund; (8) Investment pools; (9) guaranteed investment contracts;and (10) common trust funds. The Act also requires the District to have independentauditors 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 localpolicies.

In compliance with the Public Funds Investment Act, the District has adopted a deposit and investment policy. That policy addresses the following risks:

a. Custodial Credit Risk – Deposits: In the case of deposits this is the risk that, in theevent of a bank failure, the District’s deposits may not be returned to it. TheDistrict’s policy regarding types of deposits allowed and collateral requirements is:the Depository may be a state bank authorized and regulated under Texas law; anational bank, savings and loan association, or savings bank authorized andregulated by federal law; or a savings and loan association or savings bank organizedunder Texas law; but shall not be any bank the deposits of which are not insured bythe Federal Deposit Insurance Corporation (FDIC). The District is not exposed tocustodial credit risk for its deposits, as all are covered by depository insurance andpledged securities.



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A. Deposits & Investments (continued)

b. Custodial Credit Risk – Investments: For an investment, this is the risk that, inthe event of the failure of the counterparty, the District will not be able to recover thevalue of its investments or collateral securities that are in the possession of anoutside party. The District investments are with the Lone Star Investment Pool(“Lone Star”). The pool is a public funds investment pool created to provide a safeenvironment for the placement of local government funds in authorized short-terminvestments. Local investment pools operate in a manner consistent with theSecurity and Exchange Commission’s Rule 2a7 of the Investment Company Act of1940. Administration of Lone Star is performed by a Board of Directors, which is anadministrative agency created under the Interlocal Act. The District is not exposed tocustodial credit risk for its investments.

c. Credit Risk – This is the risk that an issuer of an investment will be unable to fulfillits obligations. The rating of securities by nationally recognized rating agencies isdesigned to give an indication of credit risk. The credit quality rating for Lone Star atyear end was AAA by Moody’s Investor Service.

d. Interest Rate Risk – This is the risk that changes in interest rates will adverselyaffect the fair value of an investment. The District manages its exposure to declinesin fair values by limiting the weighted average maturity of its investment portfolio toless than one year from the time of purchase. The weighted average maturity for theDistrict’s investment in external investment pools is less than 60 days.

e. Foreign Currency Risk – This is the risk that exchange rates will adversely affectthe fair value of an investment. The District is not exposed to foreign currency risk.

f. Concentration of Credit Risk – This is the risk of loss attributed to the magnitudeof the District’s investment in a single issuer (i.e., lack of diversification).Concentration risk is defined as positions of 5 percent or more in the securities of asingle issuer. Investments issued by the U.S. Government and investments ininvestment pools are excluded from the 5 percent disclosure requirement. TheDistrict is not exposed to concentration risk.

The District’s temporary investments at June 30, 2016, were as follows:

Fair Description Value

Lone Star Investment Pool 170,875,964$ TexSTAR 28,226,415 Texas Class 61,053,081 TexPool 18,085

Total 260,173,545$



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B. Property Taxes

Property taxes are considered available when collected within the current period orexpected to be collected soon enough thereafter to be used to pay liabilities of the currentperiod. The District levies its taxes on October 1 in conformity with Subtitle E, TexasProperty Tax Code. Taxes are due upon receipt of the tax bill and are past due andsubject to interest if not paid by February 1 of the period following the October 1 levydate. The assessed value of the property tax roll on August 1, 2015, upon which the levyfor the 2015-16 fiscal year was based, was $10,146,542,548. Taxes are delinquent if notpaid by January 31. Delinquent taxes are subject to both penalty and interest chargesplus 15% delinquent collection fees for attorney costs after June 30.

The tax rates assessed for the year ended June 30, 2016, to finance General Fundoperations and the payment of principal and interest on general obligation long-termdebt were $1.14 and $0.47 per $100 valuation, respectively, for the total of $1.61 per $100valuation.

Delinquent taxes are prorated between maintenance and debt service based on ratesadopted for the year of the levy. Allowances for uncollectible taxes within the Generaland Debt Service Funds are based on historical experience in collecting taxes.Uncollectible personal property taxes are periodically reviewed and written off, but theDistrict is prohibited from writing off real property taxes without specific statutoryauthority from the Texas Legislature. As of June 30, 2016, property taxes receivable, netof estimated uncollectible taxes, totaled $1,791,084 for the General Fund and $751,889for the Debt Service Fund.

C. Due from Other Governments

The District participates in a variety of federal and state programs from which it receivesgrants to partially or fully finance certain activities. In addition, the District receivesentitlements from the State through the School Foundation and Per Capita Programs.Amounts due from federal and state governments as of June 30, 2016, are summarizedbelow. All federal grants shown below are passed through the TEA and are reported onthe combined financial statements as Due from Other Governments.

Local State FederalFund Revenues Entitlements Grants Total

General 31,485$ 8,834,967 - 8,866,452$ Special Revenue 505,936 - 1,138,870 1,644,806

Total 537,421$ 8,834,967 1,138,870 10,511,258$



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D. Interfund Balances & Activities

Interfund Receivables & Payables

Receivable Fund Payable Fund Amount

Internal Service Fund Internal Service Fund 731,405$

Transfers From Transfers To Amount

General Fund Food Service Fund 18,662$ Food Service Fund General Fund 353,382 Internal Service Fund General Fund 1,200,000

Total 1,572,044$

E. Capital Assets

Capital asset activity for the period ended June 30, 2016, was as follows:

Beginning EndingBalance Additions Retirements Balance

Governmental Activities:

Capital Assets Not Being Depreciated:Land 29,355,484$ 4,629,027 (1,797,127) 32,187,384$ Construction in Progress 55,942,988 22,469,927 (35,426,582) 42,986,333

Total Not Being Depreciated 85,298,472 27,098,954 (37,223,709) 75,173,717

Capital Assets Being Depreciated:Buildings and Improvements 537,051,499 35,295,490 - 572,346,989 Furniture, Equipment, and Vehicles 26,092,994 2,610,549 - 28,703,543

Total Being Depreciated 563,144,493 37,906,039 - 601,050,532

Less Accumulated Depreciation for:Buildings and Improvements (156,539,040) (16,916,528) - (173,455,568) Furniture, Equipment, and Vehicles (19,335,763) (2,112,259) (21,448,022)

Total Accumulated Depreciation (175,874,803) (19,028,787) - (194,903,590)

Total Capital Assets Being Depreciated, net 387,269,690 18,877,252 - 406,146,942

Governmental Activities Capital Assets, net 472,568,162$ 45,976,206 (37,223,709) 481,320,659$



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E. Capital Assets (continued)

Depreciation expense was charged to governmental functions as follows:

Instruction 10,690,276$ Instructional Resources and Media 198,678 Curriculum & Staff Development 137,482 School Leadership 1,371,133 Guidance, Counseling & Evaluation Services 786,227 Health Services 67,954 Student Transportation 762,655 Food Services 640,655 CoCurricular/Extracurricular Activities 2,467,722 General Administration 318,012 Plant Maintenance and Operations 683,104 Security and Monitoring 210,917 Data Processing Services 693,972

Total Depreciation Expense 19,028,787$

F. Construction Commitments

At June 30, 2016, the District had several projects under construction. A summary ofthese projects is as follows:

Construction in Progress Detail Balance Balanceat 6/30/15 Additions Retirements at 6/30/16

AHS Chiller 643,338 48,699 (692,037) - AHS Cooling Tower 521,406 223,458 (744,864) - Curtis Re-Roof (414) 891,338 279,488 (1,170,826) - Ford Renovation 12,855,520 242,102 (13,097,622) - Green Re-Roofing 867,913 587,775 (1,455,688) - Rountree Renovation 9,482,725 254,131 (9,736,856) - Service Center 28,176,274 1,850,391 - 30,026,665Service Center Traffic Light 257,300 - (257,300) - Story Renovation 2,019,011 5,970,372 (7,989,383) - Covered Parking 228,163 53,842 (282,005) - New Elementary School - 324,528 - 324,528 AHS Renovation - 3,847,287 - 3,847,287 Vaughn ES Renovation - 4,512,504 - 4,512,504 Curtis Tech Renovation - 1,252,056 - 1,252,056 Security Vestibules - 882,768 - 882,768 AHS Kitchen Renovation - 501,977 - 501,977 ES Fencing Project - 500,344 - 500,344 Lowery Center Rebuild - 2,400 - 2,400Baseball/Softball Fields - 16,439 - 16,439 Athletic Facility Chiller - 293,824 - 293,824 Green Tech Renovation - 264,145 - 264,145 Evans Tech Renovation - 338,932 - 338,932 AHS Tech Renovation - 222,464 - 222,464

55,942,988 22,469,926 (35,426,581) 42,986,333



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G. Bonds Payable

Bonds payable activity for the year ended June 30, 2016, was as follows:

Interest Beginning Ending Due WithinGovernmental Activities Rate Balance Additions Reductions Balance One Year2007 Building & Refunding 4.23% 43,475,000$ - (22,290,000) 21,185,000 5,530,000$ 2008 Building 3.89% 16,315,000 - (14,300,000) 2,015,000 985,000 2009 Building 4.87% 53,005,000 - (47,370,000) 5,635,000 1,785,000 2009A Building 4.78% 68,055,000 - (64,465,000) 3,590,000 1,155,000 2009B Building & Refunding 4.51% 26,777,100 - (18,352,761) 8,424,339 1,188 2010 Building & Refunding 3.91% 55,890,000 - (950,000) 54,940,000 750,000 2011 Building & Refunding 4.95% 62,645,000 - (310,000) 62,335,000 1,480,000 2012 Building & Refunding 3.61% 63,575,936 (2,820,000) 60,755,936 1,200,000 2013 Building & Refunding 47,940,000 - (3,015,000) 44,925,000 3,135,000 2014 Refunding 21,085,000 - (3,210,000) 17,875,000 1,630,000 2014A Refunding 12,605,000 - (5,160,000) 7,445,000 450,000 2015 Refunding - 8,710,000 (195,000) 8,515,000 - 2016 Building - 146,660,000 - 146,660,000 3,900,000 2016 Refunding - 146,530,000 - 146,530,000 1,140,000

Subtotal 471,368,036 301,900,000 (182,437,761) 590,830,275 23,141,188 Bond Premium 28,864,878 53,633,619 (3,752,197) 78,746,300 Compensated Absences 705,121 - (19,454) 685,667 Accreted Interest 5,776,213 951,036 (1,552,103) 5,175,146

Total Bonded Indebtedness 506,714,248$ 356,484,655 (187,761,515) 675,437,388 23,141,188$

Interest expense for the year on all bonded indebtedness was $21,061,464.

Debt Service requirements on bonded debt at June 30, 2016 are as follows:

Year Ending TotalJune 30 Principal Interest Requirements

2017 23,141,188$ 26,103,975 49,245,163 2018 18,199,517 26,223,587 44,423,104 2019 18,859,140 25,624,776 44,483,916 2020 20,001,464 24,496,140 44,497,604 2021 20,928,030 23,519,980 44,448,010

2022-2026 116,538,220 101,237,689 217,775,909 2027-2031 107,793,188 86,296,862 194,090,050 2032-2036 123,844,528 53,756,278 177,600,806 2037-2041 137,845,000 21,039,575 158,884,575

2042 3,680,000 184,000 3,864,000 590,830,275$ 388,482,862 979,313,137

Net Pension Liability Activity Beginning EndingBalance Additions Reductions Balance

Changes in Net Pension Liability 17,628,471$ 22,870,143 (3,130,228) 37,368,386$



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H. Defeasance of Debt

The District issued Refunding Bonds Series 2015 with a par value of $8,710,000 and anoriginal issue premium of $1,172,740. After paying fees and issuance costs, theremaining balance was used for the purpose of refunding a portion of Series 2007 bondscurrently obligated by the district. As a result of the refunding, the debt restructuringproduced a gross debt service savings of $1,461,758 and a net present value debt servicesavings of $1,268,788.

The District issued Refunding Bonds Series 2016 with a par value of $146,530,000 andan original issue premium of $22,965,310. After paying fees and issuance costs, theremaining balance was used for the purpose of refunding a portion of Series 2007, Series2008, Series 2009, Series 2009A, and Series 2009B bonds currently obligated by thedistrict. As a result of the refunding, the debt restructuring produced a gross debt servicesavings of $22,234,106 and a net present value debt service savings of $15,761,571.

The District issued Construction Bonds Series 2016 with a par value of $146,660,000 andan original issue premium of $29,495,569. After paying fees and issuance costs, theremaining balance was used for building and improving properties within the District.

In prior years, the District defeased previously issued and outstanding bonds by placingthe proceeds of new bonds in an irrevocable trust to provide for all future debt servicepayments on the old bonds. Accordingly, the trust account assets and the liability for thedefeased bonds are not included in the District’s financial statements. On June 30, 2016,$159,062,761 of the bonds outstanding is considered defeased.

(5) OTHER INFORMATION

A. Risk Management

The District is exposed to various risks of loss related to torts; theft of, damage to anddestruction of assets; errors and omissions; injuries to employees; and natural disasters.During fiscal 2016, the District purchased commercial insurance to cover generalliabilities. There were no significant reductions in coverage in the past fiscal year, andthere were no settlements exceeding insurance coverage for each of the past three fiscalyears.

B. Litigation & Contingencies

The District is a party to various legal actions none of which is believed byadministration to have a material effect on the financial condition of the District.Accordingly, no provision for losses has been recorded in the accompanying combinedfinancial statements for such contingencies. The District participates in numerous stateand federal grant programs which are governed by various rules and regulations of thegrantor agencies. Costs charged to the respective grant programs are subject to audit andadjustment by the grantor agencies; therefore, to the extent that the District has notcomplied with the rules and regulations governing the grants, if any, refunds of anymoney received may be required and the collectability of any related receivable at June30, 2016, may be impaired. In the opinion of the District, there are no significantcontingent liabilities relating to compliance with the rules and regulations governing therespective grants; therefore, no provision has been recorded in the accompanyingcombined financial statements for such contingencies.



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(5) OTHER INFORMATION (continued)

C. Revenues from Local & Intermediate Sources

During the current period, revenues from local and intermediate sources consisted of thefollowing:

Debt Capital OtherGeneral Service Projects Governmental

Fund Fund Fund Funds TotalProperty Taxes 114,077,272$ 47,059,746 - - 161,137,018$ Food Sales - - - 5,311,984 5,311,984 Investment Income 1,262,353 52,341 417,706 19,702 1,752,102 Penalties, Interest and Other - Tax Related Income 978,524 374,399 - - 1,352,923 Co-curricular Student Activities 895,146 - - 21,245 916,391 Other 1,920,288 - 1,405,718 4,023,998 7,350,004

Total 119,133,583$ 47,486,486 1,823,424 9,376,929 177,820,422$

D. Deferred Inflow of Resources

Governmental funds report deferred inflow of resources in connection with receivables forrevenues that are not considered to be available to liquidate liabilities of the currentperiod. Governmental funds also defer revenue recognition in connection with resourcesthat have been received, but not yet earned. At the end of the current fiscal year, thevarious components of deferred inflow of resources reported in the governmental fundswere as follows:

Special DebtGeneral Revenue ServiceFund Fund Fund Total

Net Tax Revenue 1,343,408$ - 564,111 1,907,519 Grants - 93,151 - 93,151 Materials - 5,170 - 5,170 Lunches - 395,820 - 395,820

Total 1,343,408$ 494,141 564,111 2,401,660

E. Health Care Coverage

For the year ending June 30, 2016, all employees of the District are covered by the TRSactive care insurance plan (the plan). The District paid premiums of $340 per month peremployee to the plan and employees, at their option, authorized payroll withholdings topay premiums for dependents. All premiums were paid to licensed insurer. The plan wasauthorized by Article 3.51-2., Texas Insurance Code, and was documented by contractualagreement.



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F. Defined Benefit Pension Plan

Plan Description – The District participates in a cost-sharing multiple employerdefined benefit pension that has a special funding situation. The plan is administered bythe Teacher Retirement System of Texas (TRS). TRS’s defined benefit pension plan isestablished 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 aqualified pension trust under Section 401(a) of the Internal Revenue Code. The Texaslegislature establishes benefits and contribution rates within the guidelines of the TexasConstitution. The pension’s Board of Trustees does not have the authority to establish oramend benefit terms.

All employees of public, state-supported educational institutions in Texas who areemployed for one-half or more of the standard work load and who are not exempted frommembership under Texas Government Code, Title 8, Section 822.002 are covered by thesystem.

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

Benefits Provided – TRS provides service and disability retirement, as well as deathand survivor benefits, to eligible employees (and their beneficiaries) of public and highereducation 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 creditedservice to arrive at the annual standard annuity except for members who aregrandfathered, the three highest annual salaries are used. The normal serviceretirement is at age 65 with 5 years of credited service or when the sum of the member’sage and years of credited service equals 80 or more years. Early retirement is at age 55with 5 years of service credit or earlier than 55 with 30 years of service credit. There areadditional provisions for early retirement if the sum of the member’s age and years ofservice credit total at least 80, but the member is less than age 60 or 62 depending ondate of employment, or if the member was grandfathered in under a previous rule. Thereare no automatic post-employment benefit changes; including automatic COLAs. Ad hocpostemployment benefit changes, including ad hoc COLAs can be granted by the TexasLegislature as noted in the Plan description above.



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F. Defined Benefit Pension Plan (continued)

Contributions – Contribution requirements are established or amended pursuant toArticle 16, section 67 of the Texas Constitution which requires the Texas legislature toestablish a member contribution rate of not less than 6% of the member’s annualcompensation and a state contribution rate of not less than 6% and not more than 10% ofthe aggregate annual compensation paid to members of the system during the fiscal yearTexas Government Code section 821.006 prohibits benefit improvements, if as a result ofthe particular action, the time required to amortize TRS’ unfunded actuarial liabilitieswould be increased to a period that exceeds 31 years, or, if the amortization periodalready 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 Code825.402 for member contributions and established employee contribution rates for fiscalyears 2014 thru 2017. The 83rd Texas Legislature, General Appropriations Act (GAA)established the employer contribution rates for fiscal years 2016 and 2017.

2015 2016Member 6.7% 7.2%Non-Employer Contributing Entity (State) 6.8% 6.8%Employers 6.8% 6.8%

2015 Employer Contributions 3,130,228$ 2015 Member Contributions 7,514,508$ 2015 NECE On-behalf Contributions 5,865,162$

Contributors to the plan include members, employers and the State of Texas as the only non-employer contributing entity. The State contributes to the plan in accordance with state statutes and the General Appropriations Act (GAA).



62



As the non-employer contributing entity for public education, the State of Texascontributes to the retirement system an amount equal to the current employercontribution rate times the aggregate annual compensation of all participating membersof the pension trust fund during that fiscal year reduced by the amounts described belowwhich are paid by the employers. Employers including public schools are required to paythe employer contribution rate in the following instances:

On the portion of the member’s salary that exceeds the statutory minimum formembers entitled to the statutory minimum under Section 21.402 of the TexasEducation 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, aprivately 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 administrativeemployees; and 100% of the state contribution rate for all other employees.

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 shallpay both the member contribution and the state contribution as an employmentafter retirement surcharge.

When a school district or charter school does not contribute to the Federal Old-AgeSurvivors and Disability Insurance (OASDI) Program for certain employees, theymust contribute 1.5% of the state contribution rate for certain instructional oradministrative employees; and 100% of the state contribution rate for all otheremployees.



63



Actuarial Assumptions - The total pension liability in the August 31, 2015 actuarialvaluation was determined using the following actuarial assumptions:

Valuation Date August 31, 2015Actuarial Cost Method Individual Entry Age NormalAsset Valuation Method Market ValueSingle Discount Rate 8.00%Long-term expected Investment Rate of Return 8.00%Inflation 2.50%Salary Increases including inflation 3.5 % to 9.5%Payroll Growth Rate 2.50%Benefit Changes during the year NoneAd hoc post-employment benefit changes None

The actuarial methods and assumptions are based primarily 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 all future benefit payments of current plan members. 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, 2015 are summarized below:



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Discount Rate (continued)

Long-Term Expected Target Expected Contribution to

Asset Class Allocation Geometric Real Long-TermRate of Return Portfolio Returns*

Global EquityU.S. 18.0% 4.6% 1.0%Non-U.S. Developed 13.0% 5.1% 0.8%Emerging Markets 9.0% 5.9% 0.7%Directional Hedge Funds 4.0% 3.2% 0.1%Private Equity 13.0% 7.0% 1.1%

Stable ValueU.S. Treasuries 11.0% 0.7% 0.1%Absolute Return 0.0% 1.8% 0.0%Stable Value Hedge Funds 4.0% 3.0% 0.1%Cash 1.0% -0.2% 0.0%

Real ReturnGlobal Inflation Linked Bonds 3.0% 0.9% 0.0%Real Assets 16.0% 5.1% 1.1%Energy and Natural Resources 3.0% 6.6% 0.2%Commodities 0.0% 1.2% 0.0%

Risk ParityRisk Parity 5.0% 6.7% 0.3%Inflation Expectation 2.2%Alpha 1.0%

Total 100.0% 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 Position Liability if the discounted rate used was 1% less than and 1% greater than the discount rate that was used (8%) in measuring the 2015 Net Pension Liability.



65



Pension Liabilities, Pension Expense & Deferred Outflows of Resources andDeferred Inflows of Resources Related to Pensions.

At August 31, 2015, Allen Independent School District reported a liability of $37,368,386for its proportionate share of the TRS’s net pension liability. This liability reflects areduction of State pension support provided to the District. The amount recognized by theDistrict 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 wereas follows:

District's proportionate share of the collective net pension liability 37,368,386$ State's proportionate share that is associated with the District 59,754,683 Total 97,123,069$

The net pension liability was measured as of August 31, 2015 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, 2014 thru August 31, 2015.

At August 31, 2015 the employer’s proportion of the collective net pension liability was 0.1057% which was an increase of .0397% from its proportion measured as of August 31, 2014.

For the year ended August 31, 2015, the District recognized pension expense of $9,973,449 and revenue of $9,973,449 for support provided by the State.

At August 31, 2015, 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 of Resources

Deferred Inflows of Resources

Differences between expected and actual economic experiences 226,737$ 1,436,100$ Changes in actuarial assumptions 952,982 1,333,140 Differences between projected and actual investment earnings 5,162,015 - Changes in proportion and differences between the employer's contributionsand the proportionate share of contributions 9,077,139 11,448 Total as of August 31, 2015 measurement date 15,418,873$ 2,780,688$ Contributions paid to TRS subsequent to the measurement date 2,674,908 Total as of fiscal year-end 18,093,781$ 2,780,688$



66



Pension Liabilities, Pension Expense & Deferred Outflows of Resources andDeferred Inflows of Resources Related to Pensions (continued)

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

2017 2,259,080$ 2018 2,259,080 2019 2,259,079 2020 3,606,077 2021 1,291,186 Thereafter 963,683

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% to 2.5%

2. The ultimate merit assumption for long-service employees was decreasedfrom 1.25% to 1.00%

3. In accordance with the observed experience, there were small adjustmentsin the service-based promotional /longevity component of the salary scale.

4. The payroll growth assumption was lowered from 3.5% to 2.5%.

Mortality Assumptions

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

6. The post-retirement mortality tables for disabled retirees were updated toreflect recent TRS member experience. Mortality rates will be assumed tocontinue to improve in the future using a fully generational approach andScale BB.

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



67



Changes Since the Prior Actuarial Valuation (continued)

Other Demographic Assumptions

8. Previously, it was assumed 10% of all members who had contributed in thepast 5 years to be an active member. This was an implicit rehire assumptionbecause teachers have historically had a high incidence of terminatingemployment for a time and then returning to the workforce at a later date.This methodology was modified to add a more explicit valuation of therehire incidence in the termination liabilities, and therefore these 10% areno longer being counted as active members.

9. There were adjustments to the termination patterns for members consistentwith experience and future expectations. The termination patterns wereadjusted to reflect the rehire assumption. The timing of the terminationdecrement was also changed from the middle of the year to the beginning tomatch the actual pattern in the data.

10. Small adjustments were made to the retirement patterns for membersconsistent with experience and future expectations.

11. Small adjustments to the disability patterns were made for membersconsistent with experience and future expectations. Two separate patternswere 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 themwill choose a 100% joint and survivor annuity option.

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



68


G. Retiree Health Plan

Plan Description – The District contributes to the Texas Public School RetiredEmployees Group Insurance Program (TRS-Care), a cost-sharing multiple-employerdefined benefit postemployment health care plan administered by the TeacherRetirement System of Texas. TRS-Care Retired Plan provides health care coverage forcertain persons (and their dependents) who retired under the Teacher RetirementSystem of Texas. The statutory authority for the program is Texas Insurance Code,Chapter 1575. Section 1575.052 grants the TRS Board of Trustees the authority toestablish and amend basic and optional group insurance coverage for participants. TheTRS issues a publicly available financial report that includes financial statements andrequired supplementary information for TRS-Care. That report may be obtained byvisiting the TRS Web site at www.trs.state.tx.us, by writing to the CommunicationsDepartment of the Teacher Retirement System of Texas at 1000 Red River Street,Austin, Texas 78701, or by calling 1-800-223-8778.

Funding Policy – Contribution requirements are not actuarially determined but arelegally established each biennium by the Texas Legislature. Texas Insurance Code,Sections 1575.202, 203, and 204 establish state, active employee, and public schoolcontributions, respectively. The State of Texas and active public school employeecontribution rates were 1.0% and 0.65% of public school payroll, respectively, with schooldistricts contributing a percentage of payroll set at 0.55% for fiscal years 2014, 2015, and2016. Per Texas Insurance Code, Chapter 1575, the public school contribution may not beless than 0.25% or greater than 0.75% of the salary of each active employee of the publicschool.

On Behalf Payments – On Behalf payments made by the State for Retiree Health Plancontributions totaled $7,560,955. Additionally, the District is allocated a portion of theMedicare Part D retiree drug subsidy the TRS-Care receives. The amount allocated onbehalf for the year ended June 30, 2016 was estimated by TRS at $345,018.

H. Workers’ Compensation Insurance

Beginning September 1, 1993, the District established its self-funding worker’scompensation program. Through its historical review of the worker’s compensation self-insurance program, the District projected a liability of $339,970 as of June 30, 2016 forthe ultimate loss reserve of the fund.

The District has maintained a self-insured retention of $200,000 per occurrence andaggregate retention of $3,000,000 since becoming self-funded. The District currentlypurchases excess coverage to statutory limits from Frost Insurance Company. TheDistrict does not purchase aggregate excess insurance. Claims administration is providedby Barron Risk Management Services.

The accrued liability for worker’s compensation self-insurance of $339,970 includesincurred but not reported claims. Because actual claim liabilities depend on such complexfactors, the process used in computing the liability does not necessarily result in anactual amount.



69


I. Workers’ Compensation Insurance

Changes in the balances of claims liability amounts in fiscal years 2013 and 2014 are asfollows:

2016 2015Unpaid Claims, Beginning of Period 644,000$ 320,000 Incurred Claims (including IBNR) 164,964 408,556 Claim Payments (468,994) (84,556) Unpaid Claims, End of Period 339,970$ 644,000

J. Unemployment Compensation Pool

During the year ended June 30, 2015, the District provided unemployment compensationcoverage to its employees through participation in the TASB Risk Management Fund(The Fund). The Fund was created and is operated under the provisions of the InterlocalCooperation Act, Chapter 791 of the Texas Local Government Code. The Fund’sUnemployment Compensation Program is authorized by Section 22.005 of the TexasEducation Code and Chapter 172 of the Texas Local Government Code. All membersparticipating in the Fund execute Interlocal Agreements that define the responsibilitiesof the parties.

The Fund meets its quarterly obligation to the Texas Workforce Commission. Expensesare accrued monthly until the quarterly payment has been made. Expenses can bereasonably estimated; therefore there is no need for specific or aggregate stop losscoverage for the Unemployment Compensation pool. For the year ended June 30, 2016,the Fund anticipates that Allen ISD has no additional liability beyond the contractualobligation for payment of contribution.

The Fund engages the services of an independent auditor to conduct a financial auditafter the close of each year on August 31. The audit is accepted by the Fund’s Board ofTrustees in February of the following year. The Fund’s audited financial statement as ofAugust 31, 2015, are available on the TASB Risk Management Fund website and havebeen filed with the Texas Department of Insurance in Austin.

(6) ARBITRAGE COMPLIANCE

The District is monitoring its compliance with Federal arbitrage regulations. As of June 30,2016, the District is in compliance with Federal regulations and the District has no liabilityfor arbitrage rebates.

(7) EVALUTATION OF SUBSEQUENT EVENTS

The District has evaluated subsequent events through October 11, 2016, the date which thefinancial statements were available to be issued.

70


BUDGETARY COMPARISON REPORTING –

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)

71


72

EXHIBIT F-1ALLEN INDEPENDENT SCHOOL DISTRICT

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL - GENERAL FUND


ControlData

CodesOriginal Final

(GAAP BASIS)

(Negative)Positive or

Final BudgetVariance WithActual Amounts

Budgeted Amounts

REVENUES:119,966,543 118,690,000 119,133,583 (832,960)Total Local and Intermediate Sources $ $ $ $5700

53,650,004 47,011,850 54,880,605 1,230,601 State Program Revenues580080,000 80,000 11,117 (68,883)Federal Program Revenues5900

Total Revenues5020 165,781,850 173,696,547 174,025,305 328,758

EXPENDITURES:Current:

99,037,917 98,898,206 96,905,562 2,132,355 Instruction00112,130,405 2,121,055 2,035,272 95,133 Instructional Resources and Media Services00122,994,301 3,045,501 2,834,397 159,904 Curriculum and Instructional Staff Development00131,594,740 1,288,340 1,561,069 33,671 Instructional Leadership00219,566,105 9,615,105 9,352,186 213,919 School Leadership00238,024,277 7,822,677 7,961,481 62,796 Guidance, Counseling and Evaluation Services0031

64,345 59,045 60,302 4,043 Social Work Services00321,644,449 1,593,949 1,582,926 61,523 Health Services00334,201,235 3,377,116 3,276,433 924,802 Student (Pupil) Transportation0034

23,500- 22,895 605 Food Services00354,100,8274,141,927 3,853,698 247,129 Extracurricular Activities00365,617,1405,639,440 5,365,277 251,863 General Administration0041

18,394,71018,088,110 17,704,578 690,132 Facilities Maintenance and Operations00512,557,6622,492,262 2,462,253 95,409 Security and Monitoring Services00527,486,3272,598,902 4,972,042 2,514,285 Data Processing Services0053

22,500- 17,171 5,329 Community Services0061Capital Outlay:

9,760,818 29,765 84,794 9,676,024 Facilities Acquisition and Construction0081Intergovernmental:

1,250,000- 1,129,136 120,864 Contracted Instructional Services Between Schools009160,00070,000 26,390 33,610 Payments to Juvenile Justice Alternative Ed. Prg.0095

1,055,0001,025,000 1,047,702 7,298 Other Intergovernmental Charges0099

Total Expenditures6030 161,906,400 179,586,258 162,255,564 17,330,694

1100 Excess (Deficiency) of Revenues Over Expenditures

3,875,450 (5,889,711) 11,769,741 17,659,452

OTHER FINANCING SOURCES (USES): 1,560,000 1,560,000 1,553,382 (6,618)Transfers In7915

- - (18,662) (18,662)Transfers Out (Use)8911

Total Other Financing Sources (Uses) 7080 1,560,000 1,560,000 1,534,720 (25,280)

1200 Net Change in Fund Balances 5,435,450 (4,329,711) 13,304,461 17,634,172

0100 Fund Balance - July 1 (Beginning) 78,196,027 78,196,027 78,196,027 -

3000 Fund Balance - June 30 (Ending) $ 83,631,477 $ 73,866,316 $ 91,500,488 $ 17,634,172

73

EXHIBIT F-2

2016 2015District’s Proportion of the Net Pension Liability (Asset) 0.1057137% 0.0659961%

District’s Proportionate Share of Net Pension Liability (Asset) 37,368,386$ 17,628,471$

States Proportionate Share of the Net Pension Liability (Asset) associated with the District 69,997,022 59,754,683

Total 107,365,408$ 77,383,154$

District's Covered Employee Payroll (1) 112,365,408$ 105,409,672$

Contributions as a Percentage of Covered-Employee Payroll 2.76% 1.36%

District's Proportionate Share of Net Pension Liability (Asset) 33.26% 16.72%as percentage of its Covered Employee Payroll

Plan Fiduciary Net Position as a percentage of the Total Pension Liability 78.43% 83.25%

Notes:GASB 68, Paragraph 81 requires that the data in this schedule be preseneted as of the District's respective fiscal years as opposedto the time periods covered by the measurement dates ending August 31, 2014 for Fiscal Year 2015 and August 31, 2015 forFiscal Year 2016.

In accordance with GASB 68, Paragraph 138, only two years of data are presented this reporting period. "The information for allperiods 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. Theschedules should not include information that is not measured in accordnance with the requirements of this Statement."

ALLEN INDEPENDENT SCHOOL DISTRICTSCHEDULE OF THE DISTRICT'S PROPORTIONATE SHARE OF THE NET PENSON LIABILITY

TEACHER RETIREMENT SYSTEMJUNE 30, 2016

74

SCHEDULE OF DISTRICT CONTRIBUTIONSTEACHER RETIREMENT SYSTEM OF TEXAS

FOR FISCAL YEAR 2016

ALLEN INDEPENDENT SCHOOL DISTRICT EXHIBIT F-3

20152016

Contractually Required Contribution 1,517,526 $$ 3,209,088

Contribution in Relation to the Contractually Required Contribution (1,517,526)(3,209,088)

Contribution Deficiency (Excess) -0-$$ -0-

District's Covered-Employee Payroll 111,279,167 $$ 116,267,026

Contributions as a Percentage of Covered-Employee Payroll 1.36%2.76%

Note: In accordance with GASB 68, Paragraph 138, only two 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, 2014 for Fiscal Year 2015 and August 31, 2015 for Fiscal Year 2016.

75

ALLEN INDEPENDENT SCHOOL DISTRICT NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION

JUNE 30, 2015

Budgets - The Board of Trustees adopts an “appropriated budget” for the General Fund, Debt Service Fund and the Child Nutrition Fund which is included in the Special Revenue Funds. Generally Accepted Accounting Principles serves as the basis of budgeting. The District is required to present the adopted and final amended budgeted revenues and expenditures for each of these funds. The District compares the final amended budget to actual revenues and expenditures. The General Fund Budgetary Comparison Schedule appears in F-1. The Budgetary Comparison Schedule for the Debt Service Fund can be found in Exhibit H-3, while the Budgetary Comparison Schedule for the Child Nutrition Fund can be found in Exhibit H-2.

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

1) The District prepares a budget for the next succeeding fiscal year beginning July 1. Theoperating budget includes proposed expenditures and the means of financing them.

2) A meeting of the Board is then called for the purpose of adopting the proposed budget. At leastten days’ public notice of the meeting must be given.

3) Prior to July 1, the budget is legally enacted through passage of a resolution by the Board.

Once a budget is approved, it can only be amended at the function and fund level by approval of a majority of the members of the Board. Amendments are presented to the Board at its regular meetings. Each amendment must have Board approval. As required by law, such amendments are made before the fact, are reflected in the official minutes of the Board and are not made after fiscal year end. The budget was properly amended throughout the year by the Board of Trustees.

Each budget is controlled by the budget coordinator at the revenue and expenditure function/object level. Management is able to transfer amounts within each function. Budgeted amounts are amended by the Board of Trustees. All budget appropriations lapse at year-end.

76

OTHER SUPPLEMENTARY INFORMATION

77


78

NONMAJOR GOVERNMENTAL FUNDS

79

EXHIBIT G-1Page 1 of 4

204 205 211Data ESEA Title IV Head ESEA I, A

Control Safe & Drug Start ImprovingCodes Free Schools Basic Program

ASSETS1110 Cash & Cash Equivalents -$ (30,850)$ (206,609)$ 1120 Investments - Current - - - 1240 Receivables from Other Governments - 41,479 335,533 1290 Other Receivables - - 6 1300 Inventories - - - 1000 Total Assests -$ 10,629$ 128,930$

LIABILITIES2110 Accounts Payable -$ -$ -$ 2160 Accrued Wages Payable - 10,629 110,493 2180 Due to Other Governments - - - 2200 Accrued Expenditures - - 18,437 2000 Total Liabilities - 10,629 128,930

DEFERRED INFLOWS OF RESOURCES2602 Unavailable Revenue - Other - - - 2600 Total Deferred Inflows of Resources - - -

FUND BALANCESNonspendable Fund Balance:

3410 Inventories - - - Restricted Fund Balance:

3450 Federal or State Funds Grant Restriction - - - Committed Fund Balance:

3545 Other Committed Fund Balnce - - - 3000 Total Fund Balance - - - 4000 Total Liabilities, Deferred Inflows & Fund Balances -$ 10,629$ 128,930$

Continued

80

ALLEN INDEPENDENT SCHOOL DISTRICTCOMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDSJUNE 30, 2016

Federal Special Revenue Funds


224 225 226 240 244 255 263IDEA - IDEA - IDEA - National Career and ESEA II, A Title III, APart B Part B Part B Breakfast and Technical - Training and English Lang.

Formula Preschool Discretionary Lunch Program Basic Grant Recruiting Acquisition

(706,945)$ (7,908)$ (70,909)$ (236,319)$ (44,556)$ (34,151)$ (44,820)$ - - - 4,603,942 - - -

1,010,357 13,048 70,909 - 44,556 54,131 58,879 - - - 3,408 - - - - - - 26,556 - - -

303,412$ 5,140$ -$ 4,397,587$ -$ 19,980$ 14,059$

-$ -$ -$ 26,635$ -$ -$ -$ 258,801 4,515 - 292,250 - 17,595 10,079

- - - - - - - 44,611 625 - - - 2,385 3,980

303,412 5,140 - 318,885 - 19,980 14,059

- - - 395,820 - - - - - - 395,820 - - -

- - - 26,556 - - -

- - - 3,656,326 - - -

- - - - - - - - - - 3,682,882 - - -

303,412$ 5,140$ -$ 4,397,587$ -$ 19,980$ 14,059$

Continued


81


Total 392 397 410 428 Total State 461 472Federal Non-Ed. Advanced State Ready to Special Campus ProsoftSpecial Community Placement Textbook Succeed Revenue Activity

Revenue Funds Based Support Incentives Fund License Plate Funds Funds

(1,383,067)$ (2,957)$ 52,830$ 5,170$ 1,418$ 56,461$ 78,402$ 1,066$ 4,603,942 - - - - - 2,436,918 - 1,628,892 2,957 - - - 2,957 - -

3,414 - - - - - 4,886 - 26,556 - - - - - - -

4,879,737$ -$ 52,830$ 5,170$ 1,418$ 59,418$ 2,520,206$ 1,066$

26,635$ -$ -$ -$ -$ -$ 50,010$ -$ 704,362 - - - - - - -

- - - - - - 141 - 70,038 - - - - - - -

801,035 - - - - - 50,151 -

395,820 - - 5,170 - 5,170 - - 395,820 - - 5,170 - 5,170 - -

26,556 - - - - - - -

3,656,326 - 52,830 - 1,418 54,248 - -

- - - - - - 2,470,055 1,066 3,682,882 - 52,830 - 1,418 54,248 2,470,055 1,066 4,879,737$ -$ 52,830$ 5,170$ 1,418$ 59,418$ 2,520,206$ 1,066$

Continued

State Special Revenue Funds

82

Local Special Revenue Funds


473 474 475 481 482 485 Total Local TotalFoundation Grants Light Family School Faculty Special Nonmajor

Grants Outside Span Literacy Finance Revenue GovernmentalFoundation Litigation Funds Funds

88,031$ 59,028$ 45,702$ -$ 32,694$ 10,493$ 315,416$ (1,011,190)$ - - - - - 128,358 2,565,276 7,169,218 - - - - - - - 1,631,849 - - - - - - 4,886 8,300 - - - - - - - 26,556

88,031$ 59,028$ 45,702$ -$ 32,694$ 138,851$ 2,885,578$ 7,824,733$

-$ -$ -$ -$ -$ -$ 50,010$ 76,645$ - - - - - - - 704,362 - - - - - - 141 141 - - - - - - - 70,038 - - - - - - 50,151 851,186

93,151 - - - - - 93,151 494,141 93,151 - - - - - 93,151 494,141

- - - - - - - 26,556

- - - - - - - 3,710,574

(5,120) 59,028 45,702 - 32,694 138,851 2,742,276 2,742,276 (5,120) 59,028 45,702 - 32,694 138,851 2,742,276 6,479,406 88,031$ 59,028$ 45,702$ -$ 32,694$ 138,851$ 2,885,578$ 7,824,733$

83



204 205 211Data ESEA Title IV Head ESEA I, A

Control Safe & Drug Start ImprovingCodes Free Schools Basic Program

REVENUES:5700 Total Local and Intermediate Sources -$ -$ -$ 5800 State Program Revenues - - - 5900 Federal Program Revenues - 89,908 809,064 5020 Total Revenues -$ 89,908$ 809,064$

EXPENDITURESCurrent:

0011 Instruction - 86,460 612,074 0012 Instructional Resources and Media Services - - - 0013 Curriculum and Instructional Staff Development - 3,448 8,455 0021 Instructional Leadership - - - 0023 School Leadership - - 79,132 0031 Guidance, Counseling and Evaluation Services - - 109,403 0032 Social Work Services - - - 0033 Health Services - - - 0034 Student (Pupil) Transportation - - - 0035 Food Services - - - 0036 Extracurricular Activities - - - 0041 General Administration - - - 0051 Facilities Maintenance and Operations - - - 0052 Security and Monitoring Services - - - 0053 Data Processing Services - - - 0061 Community Services - - -

Capital Outlay:0081 Facilities Acquisition and Construction - - - 6030 Total Expenditures - 89,908 809,064 1100 Excess (Deficiency) of Revenues Over (Under) - - -

ExpendituresOTHER FINANCING SOURCES (USES):

7915 Transfers In - - - 8911 Transfers Out (Use) - - - 7080 Total Other Financing Sources (Uses) - - -

1200 Net Change in Fund Balance - - - 0100 Fund Balance - July 1 (Beginning) - - - 3000 Fund Balance - June 30 (Ending) -$ -$ -$

Continued

ALLEN INDEPENDENT SCHOOL DISTRICTCOMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDSJUNE 30, 2015

84



224 225 225 240 244 255 263IDEA - IDEA - IDEA - National Career and ESEA II, A Title III, APart B Part B Part B Breakfast and Technical - Training and English Lang.

Formula Preschool Preschool Lunch Program Basic Grant Recruiting Acquisition

-$ -$ -$ 5,373,329$ -$ -$ -$ - - - 158,013 - - -

2,671,463 29,951 70,909 1,732,917 112,402 163,110 120,703 2,671,463$ 29,951$ 70,909$ 7,264,259$ 112,402$ 163,110$ 120,703$

929,351 29,951 70,909 - 112,402 142,478 120,703 - - - - - - -

296,647 - - - - 20,632 - 42,334 - - - - - -

- - - - - - - 965,356 - - - - - -

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

437,775 - - - - - - - - - 7,322,701 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - 2,671,463 29,951 70,909 7,322,701 112,402 163,110 120,703

- - - (58,442) - - -

- - - 13,108 - - - - - - (353,382) - - - - - - (340,274) - - -

- - - (398,716) - - - - - - 4,081,598 - - - -$ -$ -$ 3,682,882$ -$ -$ -$

85



392 397 410 428 461 472 473 474Non-Ed. Advanced State Ready to Campus Prosoft Foundation Grants

Community Placement Textbook Succeed Activity Grants OutsideBased Support Incentives Fund License Plate Funds Foundation

-$ -$ -$ -$ 3,876,623$ -$ 87,143$ 39,543$ 12,947 - 1,072,686 154 - - - -

- - - - - - - - 12,947$ -$ 1,072,686$ 154$ 3,876,623$ -$ 87,143$ 39,543$

12,947 - 1,072,686 - 2,173,515 - 89,196 58,174 - - - 104 61,530 - - - - - - - 24,015 - 3,000 3,250 - - - - - - - - - - - - 126,376 - - 2,000 - - - - 3,561 - - 3,129 - - - - 190 - - - - - - - 241 - - - - - - - 8,172 - - - - - - - - - - - - - - - 1,737,352 - 67 820 - - - - 19,053 - - - - - - - 489 - - - - - - - 9,409 - - - - - - - 12,570 - - - - - - - 2,247 - - -

- - - - 39,148 - - 12,947 - 1,072,686 104 4,217,868 - 92,263 67,373

- - - 50 (341,245) - (5,120) (27,830)

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

- - - 50 (341,245) - (5,120) (27,830) - 52,830 - 1,368 2,811,300 1,066 - 86,858 -$ 52,830$ -$ 1,418$ 2,470,055$ 1,066$ (5,120)$ 59,028$

Continued

86

Revenue FundsState Special

Local Special Revenue Funds Federal Special Revenue

Funds


475 481 482 485 TotalLight Family School Faculty NonmajorSpan Literacy Finance Governmental

Litigation Funds

-$ -$ -$ 292$ 9,376,930$ - - - - 1,243,800 - - - - 5,800,427 -$ -$ -$ 292$ 16,421,157

- - - - 5,510,846 - - - - 61,634 - - - - 359,447 - - - - 42,334 - - - - 207,508 - - - - 1,081,449 - - - - 190 - - - - 241 - - - - 445,947 - - - - 7,322,701 - - - - 1,738,239 - - - - 19,053 - - - - 489 - - - - 9,409 - - - - 12,570 - - - - 2,247

- - - - 39,148 - - - - 16,782,543 - - - 292 (432,295)

- 5,554 - - 18,662 - - - - (353,382) - 5,554 - - (334,720)

- 5,554 - 292 (767,015) 45,702 (5,554) 32,694 138,559 7,246,421 45,702$ -$ 32,694$ 138,851$ 6,479,406$

Continued

87


88


NONMAJOR ENTERPRISE FUNDS

89

EXHIBIT G-3

Data 712 720 732 737 740 TotalControl Concession Community School Supply Yearbook Allen HS Eagle SeeCodes Fund Club Fund Fund Fund Store Fund Exhibit D-1


1110 Cash and Cash Equivalents 251,115$ 2,530,297$ 47,526$ 222,440$ 102,985$ 3,154,363$

1120 Investments 151 - - - - 151

1290 Other Receivables - - - 1,269 - 1,269

1410 Prepayments 4,583 - - - - 4,583

1000 Total Assets 255,848 2,530,297 47,526 223,708 102,985 3,160,366


2110 Accounts Payable 8,860 38,049 - 497 - 47,406

2160 Accrued Wages Payable 7,028 5,676 - - 3,560 16,264

2181 Due to State - - - - - -

2000 Total Liabilities 15,888 43,725 - 497 3,560 63,670

DEFERRED INFLOWS OF RESOURCES2310 Unavailable Revenue - 75,062 5,437 - - 80,499

Total Deferred Inflows of Resources - 75,062 5,437 - - 80,499

NET POSITION3900 Unrestricted Net Position 239,960 2,411,510 42,088 223,211 99,425 3,016,197

3000 Total Net Position 239,960$ 2,411,510$ 42,088$ 223,211$ 99,425$ 3,016,197$

ALLEN INDEPENDENT SCHOOL DISTRICTCOMBINING STATEMENT OF FUND NET POSITION

NONMAJOR ENTERPRISE FUNDSJUNE 30, 2016


90

EXHIBIT G-4

Data 712 720 732 737 740 Total

Control Concession Community School Supply Yearbook Allen HS Eagle See

Codes Fund Club Fund Fund Fund Store Fund Exhibit D-2

OPERATING REVENUES

5700 Total Local & Intermediate 529,097$ 4,388,355$ 26,445$ 129,054$ 196,529$ 5,269,479$ 5800 State 5,992 102,953 - 1,108 1,642 111,694 5000 Total Operating Revenues 535,089 4,491,308 26,445 130,162 198,171 5,381,174$

OPERATING EXPENSES

6100 Payroll Costs 98,509 2,089,529 - 13,508 28,427 2,229,973 6200 Professional & Contracted Services 119,179 28,206 - 1,241 - 148,626 6300 Supplies & Materials 227,265 222,735 7,061 578 7,532 465,171 6400 Other Operating Costs 863 207,994 17,605 84,802 107,021 418,286 6600 Capital Equipment - 23,267 - 2,638 - 25,905 6030 Total Operating Expenses 445,817 2,571,731 24,667 102,767 142,981 3,287,962

Operating Income (Loss) Before Transfers 89,272 1,919,578 1,778 27,394 55,190 2,093,212

8911 TRANSFERS OUT - (1,200,000) - - - (1,200,000) Change in Net Position 89,272 719,578 1,778 27,394 55,190 893,212

NET POSITION

Net Position - Beginning 150,689 1,691,932 40,311 195,816 44,235 2,122,983 3540 Net Position - Ending 239,961$ 2,411,510$ 42,089$ 223,210$ 99,425$ 3,016,196$

Business-Type Activities Business-Type Activities

ALLEN INDEPENDENT SCHOOL DISTRICTCOMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND NET POSITION


91

EXHIBIT G-5

712 720 732 737 740 TotalConcession Community School Supply Yearbook Allen HS Eagle See

Fund Club Fund Fund Fund Store Fund Exhibit D-3Cash Flows from Operating Activities: Cash Received from User Charges 571,989$ 4,491,308$ 26,445$ 130,162$ 198,171$ 5,418,075$ Cash Payments to Employees for Services (98,509) (2,091,690) - (13,508) (28,427) (2,232,134) Cash Payments for Supplies (346,444) (250,941) (7,061) (1,819) (7,594) (613,859) Cash Payments for Other Operating Expenses (863) (396,361) (17,605) 87,439 (116,799) (444,189) Net Cash Provided by Operating Activities 126,173 1,752,316 1,779 202,274 45,351 2,127,893

Cash Flows From Non-Capital Financing Activities: Operating Transfer Out - (1,200,000) - - - (1,200,000)

Cash Flows from Investing Activities: Interest and Dividends on Investments - - - - - -

Net Increase in Cash and Cash Equivalents 126,173 552,316 1,779 202,274 45,351 927,893 Cash and Cash Equivalents at Beginning of Year 152,639 1,786,776 44,975 194,425 47,806 2,226,621

Cash and Cash Equivalents at End of Year 278,812 2,339,092 46,754 396,699 93,157 3,154,514

Temporary Investment Not in Cash Equivalents (151) - - - - (151)

Cash on Balance Sheet: 278,661 2,339,092 46,754 396,699 93,157 3,154,363

Reconciliation of Operating Income(Loss) to Net Cash Provided by Operating Activities:Operating Income (Loss): 24,150 1,997,041 21,978 45,890 4,153 2,093,213

Effect of Increases and Decreases in Current Assets and Liabilities:

Decrease(increase) in Receivables - - - (9,145) - (9,145) Decrease(increase) in Prepaid Expenses 32 - - - - 32 Decrease(increase) in Accounts Payable (2,144) 5,136 - (700) - 2,292 Decrease(increase) in Accrued Wages Payable (2,372) (1,407) - 309 800 (2,670) Decrease(increase) in Due to State - - - - - - Decrease(increase) in Due to Other Funds - 27,756 - - - 27,756 Decrease(increase) in Unearned Revenue - (674) (1,201) - - (1,875) Net Cash Provided by Operating Activities 19,666$ 2,027,852$ 20,777$ 36,354$ 4,953$ 2,127,893$

ALLEN INDEPENDENT SCHOOL DISTRICTCOMBINING STATEMENT OF CASH FLOWS



INTERNAL SERVICE FUNDS

93

EXHIBIT G-6

753 773Data Health Workers' Total

Control Insurance Comp SeeCodes Fund Fund Exhibit D-1


1110 Cash and Cash Equivalents 33,018$ -$ 33,018$ 1120 Investments - 1,721,596 1,721,596 1260 Due From Other Funds - 731,405 731,405 1410 Prepayments - 8,618 8,618 1000 Total Assets 42,072 2,194,233 2,494,637


2110 Accounts Payable 39,252 343,121 382,373 2000 Total Liabilities 39,252 343,121 382,373

NET POSITION3900 Unrestricted Net Position 2,967 2,109,296 2,112,263 3000 Total Net Position 2,820$ 2,109,296$ 2,112,263$

94



INTERNAL SERVICE FUNDSJUNE 30, 2016

EXHIBIT G-7

753 773Data Health Workers' Total

Control Insurance Comp SeeCodes Fund Fund Exhibit D-2

OPERATING REVENUES5749 Total Local & Intermediate -$ 1,035,435$ 1,035,435$ 5000 Total Operating Revenues - 1,035,435 1,035,435

OPERATING EXPENSES6100 Payroll Costs - - - 6200 Professional & Contracted Services - - - 6300 Supplies & Materials - - - 6400 Other Operating Costs - 478,965 478,965 6600 Capital Equipment - - - 6030 Total Operating Expenses - 478,965 478,965

Operating Income (Loss) Before Transfers - 556,470 556,470

NONOPERATING REVENUES (EXPENSES)5742 Earnings from Temporary Deposits & Investments 147 6,470 6,617 5000 Total Nonoperating Revenues (Expenses) 147 6,470 6,617

Change in Net Position 147 562,940 563,086

NET POSITIONNet Position - Beginning 2,820 1,546,357 1,549,177

3540 Net Position - Ending 2,967$ 2,109,297$ 2,112,263$


ALLEN INDEPENDENT SCHOOL DISTRICTCOMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND NET POSITION


95

EXHIBIT G-7

753 773 TotalHealth Workers' See

Insurance Comp ExhibitFund Fund D-3

Cash Flows from Operating Activities: Cash Received from User Charges -$ 1,003,007$ 1,003,007$ Cash Payments to Employees for Services - - - Cash Payments for Supplies - (305,043) (305,043) Cash Payments for Other Operating Expenses - (478,964) (478,964) Net Cash Provided by Operating Activities - 219,000 219,000

Cash Flows From Non-Capital Financing Activities: Operating Transfer Out - - -

Cash Flows from Investing Activities: Interest and Dividends on Investments 147 6,470 6,617

Net Increase in Cash and Cash Equivalents 147 225,470 225,617 Cash and Cash Equivalents at Beginning of Year 42,072 1,486,925 1,528,997

Cash and Cash Equivalents at End of Year 42,219 1,712,395 1,754,614

Temporary Investment Not in Cash Equivalents (42,219) (1,679,377) (1,721,596)

Cash on Balance Sheet: -$ 33,018$ 33,018$

Reconciliation of Operating Income(Loss) to Net Cash Provided by Operating Activities:Operating Income (Loss): -$ 556,470$ 556,470$

Effect of Increases and Decreases in Current Assets and Liabilities:

Decrease(increase) in Receivables - - - Decrease(increase) in Prepaid Expenses - (288) (288) Decrease(increase) in Accounts Payable - (304,755) (304,755) Decrease(increase) in Accrued Wages Payable - - - Decrease(increase) in Due to State - - - Decrease(increase) in Due to Other Funds - (32,427) (32,427) Decrease(increase) in Unearned Revenue - - - Net Cash Provided by Operating Activities -$ 219,000$ 219,000$


ALLEN INDEPENDENT SCHOOL DISTRICTSTATEMENT OF CASH FLOWS


PRIVATE PURPOSE TRUST FUNDS

97


808 811 812 813Data Foundation Mitchell Craig Covington

Control for Allen Smithwick Baxter MemorialCodes Schools Scholarship Scholarship Scholarship


1110 Cash and Cash Equivalents 2,761$ -$ (30)$ -$ 1120 Investments 118 2,818 4,149 7,004 1290 Other Receivables 4,500 - - 1000 Total Assets 7,380 2,818 4,119 7,004


2160 Accrued Wages Payable 1,371 - - - 2000 Total Liabilities 1,371 - - -

NET POSITION3900 Unrestricted Net Position 6,009 2,818 4,119 7,004 3000 Total Net Position 6,009$ 2,818$ 4,119$ 7,004$

Continued98

Private Purpose Trust Funds


PRIVATE PURPOSE TRUST FUNDSJUNE 30, 2016


814 815 816 820Pierce Don Key Total

Memorial Crowder Millipore Club SeeScholarship Scholarship Foundation Scholarship Exhibit E-1

-$ -$ -$ 1,264$ 3,995$ 8 2,626 716 - 17,440 - - - - 4,500 8 2,626 716 1,264 25,936

- - - - 1,371 - - - - 1,371

8 2,626 716 1,264 24,565 8$ 2,626$ 716$ 1,264$ 24,565$

99



808 811 812 813 814Data Foundation Mitchell Craig Covington Pierce

Control for Allen Smithwick Baxter Memorial MemorialCodes Schools Scholarship Scholarship Scholarship Scholarship

OPERATING REVENUES5700 Total Local & Intermediate 81,903$ 7$ 9$ 15$ -$ 5800 State 2,545 - - - - 5000 Total Operating Revenues 84,448 7 9 15 -

OPERATING EXPENSES6100 Payroll Costs 79,948 - - - - 6400 Other Operating Costs - 1,000 - - - 6030 Total Operating Expenses 79,948 1,000 - - -

Change in Net Position 4,500 (993) 9 15 -

NET POSITIONNet Position - Beginning 1,510 3,811 4,110 6,990 8

3540 Net Position - Ending 6,010$ 2,818$ 4,119$ 7,005$ 8$

Continued

ALLEN INDEPENDENT SCHOOL DISTRICTCOMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

PRIVATE PURPOSE TRUST FUNDSJUNE 30, 2016


100


815 816 820Don Key Total

Crowder Millipore Club SeeScholarship Foundation Scholarship Exhibit E-2

6$ 2$ -$ 81,941$ - - - 2,545 6 2 - 84,486

- - - 79,948 - - - 1,000 - - - 80,948

6 2 - 3,538

2,621 715 1,264 21,028 2,626$ 717$ 1,264$ 24,566$

101



102

AGENCY FUNDS

103

EXHIBIT G-11

DataControl Balance BalanceCodes July 1, 2015 Additions Deductions June 30, 2016

865 Student ActivityASSETS

1110 Cash and Cash Equivalents (247,948)$ 1,029,062$ 1,075,032$ (293,918)$ 1120 Investments 562,246 598,095 506,266 654,075 1290 Other Receivables 743 - 743 - 1000 Total Assets 315,041 1,627,157 1,582,041 360,158

LIABILITIES2110 Accounts Payable 1,379 272,334 273,713 - 2180 Due to Other Governments 13 1,592 1,605 - 2190 Due to Student Groups 320,993 368,011 331,860 357,144 2210 Accrued Expenses 2,656 - - 2,656 2000 Total Liabilities 325,041 641,937 607,178 359,800

880 Stadium FiduciaryASSETS

1110 Cash and Cash Equivalents 20,480 - - 20,480 1000 Total Assets 20,480 - - 20,480

LIABILITIES2440 Payable from Restricted Assets 20,837 - - 20,837 2000 Total Liabilities 20,837 - - 20,837

885 SunshineASSETS

1110 Cash and Cash Equivalents 56,529 203,659 201,029 59,159 1000 Total Assets 56,529 203,659 201,029 59,159

LIABILITIES2110 Accounts Payable 1,345 99,351 98,997 1,699 2190 Due to Student Groups 31,183 53,249 53,586 30,846 2440 Payable from Restricted Assets 24,001 55,849 53,236 26,614 2000 Total Liabilities 56,529 208,449 205,819 59,159

TOTAL AGENCY FUNDSASSETS

1110 Cash and Cash Equivalents (170,939) 1,232,721 1,276,061 (214,279) 1120 Investments 562,246 598,095 506,266 654,075 1290 Other Receivables 743 - 743 - 1000 Total Assets 392,050 1,830,816 1,783,070 439,797

LIABILITIES2110 Accounts Payable 2,724 371,685 372,710 1,699 2180 Due to Other Governments 13 1,592 1,605 - 2190 Due to Student Groups 352,176 421,260 385,446 387,990 2210 Accrued Expenses 2,656 - - 2,656 2440 Payable from Restricted Assets 44,837 55,849 53,236 47,450 2000 Total Liabilities 402,406$ 850,386$ 812,997$ 439,795$

ALLEN INDEPENDENT SCHOOL DISTRICTSTATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDSJUNE 30, 2016

104

REQUIRED TEXAS EDUCATION AGENCY SCHEDULES

105

ALLEN INDEPENDENT SCHOOL DISTRICTSCHEDULE OF DELINQUENT TAXES RECEIVABLE

FISCAL YEAR ENDED JUNE 30, 2016

Last 10 Years Tax Rates

Debt ServiceMaintenance Tax PurposesValue for School

Assessed/Appraised(1) (2) (3)

VariousVariousand prior years2007 $ Various

0.4303001.040000 6,323,061,461 2008

0.4303001.040000 6,843,308,532 2009

0.4303001.040000 7,171,457,931 2010

0.5000001.040000 7,243,179,486 2011

0.5000001.170000 7,387,417,379 2012

0.5000001.170000 7,870,111,934 2013

0.5000001.170000 8,234,388,099 2014

0.4800001.160000 9,080,358,311 2015

0.4700001.140000 10,146,542,548 (School year under audit)2016

1000 TOTALS

106 Continued

EXHIBIT H-1

7/1/2015Balance

Beginning

Total LevyYear's

Current(20)(10) (50)

EndingBalance

6/30/2016

(40)EntireYear's

Adjustments

(31)

MaintenanceCollections

(32)

Debt ServiceCollections

-97,888 3,029 (41,426)$ $ $ $ $ 51,744 $ 1,689

-34,410 1,220 - 32,685505

-70,783 1,215 (191) 68,874503

-194,927 94,429 53,908 109,00745,399

-190,050 208,233 293,239 174,944100,112

-203,672 173,956 314,384 269,76074,340

-216,209 180,537 320,268 278,78777,153

-286,651 221,054 324,861 295,99094,468

-892,755 846,478 681,209 377,219350,267

165,807,262- 113,282,420 (4,802,883) 1,017,804 46,704,155

$ 2,676,814 $ (2,856,631)$ 115,012,571 $ 165,807,262 $ 2,187,345 $ 47,448,591

107

EXHIBIT H-2ALLEN INDEPENDENT SCHOOL DISTRICT

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL - CHILD NUTRITION PROGRAM


ControlData

CodesOriginal Final

(GAAP BASIS)



Budgeted Amounts

REVENUES:5,729,540 5,729,540 5,373,329 (356,211)Total Local and Intermediate Sources $ $ $ $5700

152,095 152,095 158,013 5,918 State Program Revenues58001,661,470 1,661,470 1,732,917 71,447 Federal Program Revenues5900

Total Revenues5020 7,543,105 7,543,105 7,264,259 (278,846)

EXPENDITURES:9,603,028 8,151,240 7,322,701 2,280,327 Food Services0035

Total Expenditures6030 8,151,240 9,603,028 7,322,701 2,280,327

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

(608,135) (2,059,923) (58,442) 2,001,481

OTHER FINANCING SOURCES (USES): - - 13,108 13,108 Transfers In7915

(360,000)(360,000) (353,382) 6,618 Transfers Out (Use)7961

Total Other Financing Sources (Uses) 7080 (360,000) (360,000) (340,274) 19,726

1200 Net Change in Fund Balances (968,135) (2,419,923) (398,716) 2,021,207


3000 Fund Balance - June 30 (Ending) $ 3,113,463 $ 1,661,675 $ 3,682,882 $ 2,021,207

108

EXHIBIT H-3ALLEN INDEPENDENT SCHOOL DISTRICT

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL - DEBT SERVICE FUND


ControlData

CodesOriginal Final

(GAAP BASIS)



Budgeted Amounts

REVENUES:47,392,000 47,059,360 47,486,485 94,485 Total Local and Intermediate Sources $ $ $ $5700

958,000- 958,743 743 State Program Revenues5800

Total Revenues5020 47,059,360 48,350,000 48,445,228 95,228

EXPENDITURES:Debt Service:

23,375,000 23,180,000 23,375,000 - Principal on Long Term Debt007121,127,050 21,271,660 21,127,048 2 Interest on Long Term Debt0072

1,816,157 32,000 2,485,846 (669,689) Bond Issuance Cost and Fees0073

Total Expenditures6030 44,483,660 46,318,207 46,987,894 (669,687)

1100 Excess of Revenues Over Expenditures 2,575,700 2,031,793 1,457,334 (574,459)

OTHER FINANCING SOURCES (USES): 126,900,000- 126,900,000 - Capital Related Debt Issued (Regular Bonds)7911

52,943,250- 53,633,619 690,369 Premium or Discount on Issuance of Bonds7916(178,064,593)- (178,064,592) 1 Other (Uses)8949

Total Other Financing Sources (Uses) 7080 - 1,778,657 2,469,027 690,370

1200 Net Change in Fund Balances 2,575,700 3,810,450 3,926,361 115,911


3000 Fund Balance - June 30 (Ending) $ 21,794,707 $ 23,029,457 $ 23,145,368 $ 115,911

109

110


STATISTICAL SECTION

111


112

ALLEN INDEPENDENT SCHOOL DISTRICT INDEX STATISTICAL SECTION

JUNE 30, 2015

This section presents detailed information as a context for understanding what the information in the financial statements, note disclosures, required supplementary information, and supplementary information says about the Allen Independent School District’s overall financial health.

Contents Pages

Financial Trends Information 115-129 These schedules contain trend information intended to help the reader understand how the District’s financial position has changed over time.

Revenue Capacity Information 131-136 These schedules contain information intended to help the reader assess the District’s most significant revenue source, state tax collections.

Debt Capacity Information 137-142 These schedules contain information intended to assist users in understanding and assessing the District’s current levels of outstanding debt and the ability to issue additional debt.

Demographic and Economic Information 143-146 These schedules provide demographic and economic indicators intended to help the readers understand the socioeconomic environment within which the District’s financial activities take place.

Operating Information 147-155 These schedules provide contextual information about the District’s operations and resources intended to assist readers in using financial statement information to understand and assess the District’s economic condition.

113


114

Financial Trends Information

115

EXHIBITPage 1 of 2

Building 2007 2008 2009 2010Governmental Activies

Net Investment in Capital Assets 27,123,644$ 16,087,260$ 17,297,410$ 19,017,325$ Restricted 5,328,543 6,661,902 8,751,801 11,897,678 Unrestricted 18,471,615 37,472,260 37,722,473 37,950,845

Total Government Net Position 50,923,802 60,221,422 63,771,684 68,865,848

Business Type ActivitiesNet Investment in Capital Assets - - - - Restricted - - - - Unrestricted 469,304 564,570 560,418 559,492

Total Business Type Activities 469,304 564,570 560,418 559,492

Total Primary GovernmentNet Investment in Capital Assets 27,123,644 16,087,260 17,297,410 19,017,325 Restricted 5,328,543 6,661,902 8,751,801 11,897,678 Unrestricted 18,940,919 38,036,830 38,282,891 38,510,337

Total Primary Government 51,393,106$ 60,785,992$ 64,332,102$ 69,425,340$

Source: The Statement of Net Position for the Allen IndependentSchool District.

Continued116

ALLEN INDEPENDENT SCHOOL DISTRICTNET POSITION BY COMPONENT

LAST TEN FISCAL YEARS (UNAUDITED)JUNE 30, 2016

Fiscal Year

EXHIBITPage 2 of 2

2011 2012 2013 2014 2015 2016

17,646,573$ 14,009,916$ 8,468,488$ 5,529,019$ 11,002,572$ 18,357,741$ 14,560,212 15,153,026 24,202,102 25,556,120 23,955,009 27,607,831 38,586,665 53,286,345 51,360,854 62,090,153 54,201,388 65,193,190 70,793,450 82,449,287 84,031,444 93,175,292 89,158,969 111,158,762

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

516,610 880,944 1,017,397 1,594,062 2,122,984 3,016,197 516,610 880,944 1,017,397 1,594,062 2,122,984 3,016,197

17,646,573 14,009,916 8,468,448 5,529,019 11,002,572 18,357,741 14,560,212 15,153,026 24,202,102 25,556,120 23,955,009 27,607,831 39,103,275 54,167,289 52,378,251 63,684,215 56,324,372 68,209,387 71,310,060$ 83,330,231$ 85,048,801$ 94,769,354$ 91,281,953$ 114,174,959$

117

Fiscal Year

EXHIBIT I-2Page 1 of 2

2007 2008 2009 2010Expenses

Governmental ActivitiesInstruction 70,433,668$ 78,771,317$ 83,450,656$ 88,611,768$ Instructional Resources and Media Services 1,864,499 2,047,087 2,344,598 2,352,808 Curriculum & Staff Development 1,641,814 2,096,599 2,380,390 2,620,997 Instructional Leadership 899,196 888,813 1,228,261 1,300,370 School Leadership 6,525,320 7,518,486 8,027,711 8,257,916 Guidance, Counseling & Evaluation Services 4,946,698 5,707,778 6,553,377 7,260,209 Social Work Services 3,939 - - - Health Service 1,054,423 1,111,215 1,158,297 1,320,319 Student (pupil) Transportation 2,905,688 3,330,166 3,424,836 3,491,508 Food Services 5,090,036 5,556,795 5,854,804 6,091,206 Curricular & Extracurricular Activities 3,217,838 3,388,612 3,489,848 4,190,706 General Administration 3,499,417 4,235,259 4,375,089 4,286,847 Plant Maintenance & Operations 16,037,989 16,078,290 17,528,538 17,329,755 Security & Monitoring Services 902,530 949,017 1,408,775 1,444,923 Data Processing Services 2,013,046 2,105,709 2,351,981 1,904,588 Community Services 17,611 2,627 1,823 121,250 Debt Service 13,441,077 13,279,386 14,305,900 16,720,838 Capital Outlay 1,958,390 5,407,821 2,862,582 4,468,543 Contracted Instructional - - - - Payment for Shared Service Arrangement 90,115 47,205 57,308 84,917 Other Intergovernmental Charges - - 637,613 698,671

Total Governmental Activities Expenses 136,543,294 152,522,182 161,442,387 172,558,139 Business-type Activities

Concession Stands 130,517 124,949 130,784 124,017 Kid's Club/Community Ed 1,741,929 1,883,416 1,993,204 2,062,702 Other Enterprising Activities 251,114 285,141 358,117 316,497

Total Business-type Activities Expenses 2,123,560 2,293,506 2,482,105 2,503,216 Total Primary Government Program Expenses 138,666,854$ 154,815,688$ 163,924,492$ 175,061,355$

Program RevenuesGovernmental Activities

Charges for Services 6,966,611$ 7,366,665$ 7,456,229$ 8,442,652$ Operating Grants & Contributions 12,353,548 11,069,903 11,304,442 17,983,813

Total Governmental Activities Revenues 19,320,159 18,436,568 18,760,671 26,426,465 Business-type Activities

Charges for Services 2,691,245 3,136,785 3,297,397 3,616,443 Operating Grants & Contributions 370,640 73,573 80,356 85,846

Total Business-type Activities Revenues 3,061,885 3,210,358 3,377,753 3,702,289 Total Primary Government Program Revenues 22,382,044$ 21,646,926$ 22,138,424$ 30,128,754$

Net (Expense)/RevenueTotal Primary Government Expenses (116,284,810)$ (133,168,762)$ (141,786,068)$ (144,932,601)$

Source: The Statement of Activities for the Allen Independent School District.

Notes:Fiscal years prior to 2013 included in this schedule are shown as restated for changes required by GASB Statement No. 6363, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities

Continued118

ALLEN INDEPENDENT SCHOOL DISTRICTEXPENSES, PROGRAM REVENUES, AND NET (EXPENSE) REVENUE

LAST TEN FISCAL YEARS (UNAUDITED)

Fiscal Year


2011 2012 2013 2014 2015 2016

94,662,798$ 93,315,924$ 103,145,190$ 109,128,044$ 113,269,325$ 116,653,422$ 2,390,983 2,419,277 2,291,265 2,584,507 2,250,780 3,391,782 2,267,457 1,810,705 2,150,677 2,499,944 2,932,382 3,431,207 1,370,114 1,161,797 1,139,068 1,236,703 1,232,223 1,657,808 9,004,361 9,303,481 9,815,997 10,051,094 10,441,213 11,268,442 8,087,737 7,715,793 8,549,277 8,875,883 9,211,632 10,154,986

- - 2,162 32,348 31,188 62,886 1,381,741 1,303,991 1,391,282 1,516,631 1,582,451 1,694,456 3,546,135 3,529,600 3,807,549 4,179,189 4,291,929 4,525,376 6,107,204 6,091,575 6,246,375 6,276,027 6,631,866 7,096,047 4,260,185 4,624,501 5,941,308 7,098,341 6,618,969 8,015,527 4,506,087 3,938,827 4,335,737 4,682,431 5,274,797 5,849,944

17,486,034 15,672,993 17,693,619 16,558,742 18,819,001 18,732,861 1,412,150 1,744,129 2,162,379 2,061,330 2,415,284 2,801,947 2,064,785 1,869,306 2,573,037 3,696,872 4,699,390 5,155,071

6,931 693 492 1,949 21,682 84,495 20,361,943 21,116,077 22,942,857 22,733,440 21,463,827 22,215,203

7,928,513 5,725,998 7,834 7,834 - - - 581,130 314,083 411,310 776,337 1,129,136

42,690 62,149 73,302 40,265 40,449 26,390 739,107 781,240 856,647 900,480 959,364 1,047,702

187,626,955 182,769,186 195,440,137 204,573,364 212,964,089 224,994,688

140,626 121,143 381,604 363,854 121,439 445,817 2,215,538 2,325,809 2,261,669 2,411,005 2,612,117 2,571,730

350,345 214,602 368,138 279,061 230,926 270,414 2,706,509 2,661,554 3,011,411 3,053,920 2,964,482 3,287,961

190,333,464$ 185,430,740$ 198,451,548$ 207,627,284$ 215,928,571$ 228,282,649$

9,509,441$ 10,407,549$ 7,297,783$ 6,706,824$ 7,627,181$ 7,445,960$ 21,982,872 12,019,249 10,889,406 14,340,352 15,397,078 14,605,182 31,492,313 22,426,798 18,187,189 21,047,176 23,024,259 22,051,142

3,859,930 3,831,092 4,458,634 4,726,575 4,580,087 5,269,480 95,604 94,796 89,229 104,012 113,317 111,694

3,955,534 3,925,888 4,547,863 4,830,587 4,693,404 5,381,174 35,447,847$ 26,352,686$ 22,735,052$ 25,877,763$ 27,717,663$ 27,432,316$

(154,885,617)$ (159,078,054)$ (175,716,496)$ (181,749,521)$ (188,210,908)$ (200,850,333)$

119

Fiscal Year


2007 2008 2009 2010Net (Expense)/Revenue

Governmental Activities (117,223,135)$ (134,085,614)$ (142,681,716)$ (146,131,674)$ Business-type Activities 938,325 916,852 895,648 1,199,073

Total Primary Government Net Expense (116,284,810)$ (133,168,762)$ (141,786,068)$ (144,932,601)$

General Revenues and Other Changes in Net PositionGovernment Activities:

Property Taxes 98,693,651$ 96,785,549$ 101,155,007$ 110,002,740$ State Aid-Formula 29,513,698 45,649,131 42,093,936 39,096,231 Grants & Contributions Not Restricted - - - - Investment Earnings 3,816,988 3,760,095 1,311,567 543,230 Miscellaneous - - - 53,241 Other 1,940,318 822,000 - - Transfers - - 900,000 1,200,000

Total Government Activities 133,964,655 147,016,775 145,460,510 150,895,442 Business-type Activities

State Aid-Formula - 72 - - Investment Earnings 513 343 103 - Miscellaneous - - 97 - Transfers (913,583) (822,000) (900,000) (1,200,000)

Total Business-type Activities (913,070) (821,585) (899,800) (1,200,000) Total Primary Government 133,051,585$ 146,195,190$ 144,560,710$ 149,695,442$

Change in Net PositionGovernment Activities 16,741,520$ 12,931,161$ 2,778,794$ 4,763,768$ Business-type Activities 25,255 95,267 (4,152) (927)

Total Primary Government 16,766,775$ 13,026,428$ 2,774,642$ 4,762,841$

Source: The Statement of Activities for the Allen Independent School District

Continued

120

ALLEN INDEPENDENT SCHOOL DISTRICTGENERAL REVENUES AND TOTAL CHANGE IN NET POSITION


Fiscal Year


2011 2012 2013 2014 2015 2016

(156,134,642)$ (160,342,388)$ (177,252,948)$ (183,526,188)$ (189,939,830)$ (202,943,546)$ 1,249,025 1,264,334 1,536,452 1,776,667 1,728,922 2,093,213

(154,885,617)$ (159,078,054)$ (175,716,496)$ (181,749,521)$ (188,210,908)$ (200,850,333)$

112,452,243$ 125,019,234$ 131,074,774$ 139,359,676$ 150,095,980$ 163,388,375$ 43,879,002 45,717,783 42,894,175 48,370,344 48,499,523 47,571,376

- - - - (196,865) 4,613,595 439,092 335,421 396,043 269,401 214,201 851,508

- 25,787 78,511 - - 7,318,485 - - 5,671,625 3,617,758 6,376,879 -

1,291,907 900,000 1,400,000 1,200,000 1,172,905 1,200,000 158,062,244 171,998,225 181,515,128 192,817,179 206,162,623 224,943,339

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

(1,291,907) (900,000) (1,400,000) (1,200,000) (1,200,000) (1,200,000) (1,291,907) (900,000) (1,400,000) (1,200,000) (1,200,000) (1,200,000)

156,770,337$ 171,098,225$ 180,115,128$ 191,617,179$ 204,962,623$ 223,743,339$

1,927,602$ 11,655,837$ 4,262,180$ 9,290,991$ 16,222,793$ 21,999,793$ (42,882) 364,334 136,452 576,667 528,922 893,213

1,884,720$ 12,020,171$ 4,398,632$ 9,867,658$ 16,751,715$ 22,893,006$

121

Fiscal Year


2007 2008 2009 2010General Fund

Nonspendable:Inventories 357,767$ 346,143$ 252,096$ 181,191$ Prepaid Items 206,601 - - -

Restricted:Capital Projects - 1,016 1,016 1,016

Committed: - - - - Assigned 9,000,000 9,000,000 9,000,000 9,000,000 Unassigned: 23,695,006 28,591,146 26,996,437 25,303,982

Total General Fund 33,259,374$ 37,938,305$ 36,249,549$ 34,486,189$

All Other Governmental FundsNonspendable:

Inventories 32,351$ 17,728$ 48,015$ 54,297$ Prepaid Items 2,054 - - -

RestrictedDebt Service 10,067,739 10,780,970 14,501,176 17,854,344 Federal and State Grants 1,911,147 1,885,532 1,601,388 2,075,131 Capital Acquisition and Contractual 37,490,101 - - - Other Miscellaneous 1,645,183 33,541,057 62,923,191 115,876,538

Committed - - - - Assigned - - - - Unassigned - - 64,938 330,698

Total All Other Governmental Funds 51,148,575$ 46,225,287$ 79,138,708$ 136,191,008$

Total General and Other Governmental 84,407,949$ 84,163,592$ 115,388,257$ 170,677,197$

Source: The Balance Sheet of Governmental Funds for the Allen Independent School District

Continued122

ALLEN INDEPENDENT SCHOOL DISTRICTFUND BALANCE GOVERNMENTAL FUNDS


Fiscal Year


2011 2012 2013 2014 2015 2016

242,946$ 225,772$ 182,214$ 154,129$ 124,715$ 272,275$ - 162,138 47,899 269,291 176,356 195,324

1,016 - 1,016 1,016 1,016 1,016 - - - 2,500,000 - 17,800,000

9,000,000 9,000,000 7,000,000 7,000,000 - 400,000 27,966,083 39,088,478 47,076,549 55,528,097 77,893,940 72,831,873 37,210,045$ 48,476,388$ 54,307,678$ 65,452,533$ 78,196,027$ 91,500,488$

44,756$ 43,069$ 36,688$ 14,046$ 11,665$ 26,556$ - 900 - - - -

18,589,132 19,350,446 20,129,812 20,704,773 19,219,007 23,145,368 2,910,228 3,345,981 3,573,889 4,413,881 4,124,131 3,710,574

83,923,510 64,155,682 80,578,153 79,781,626 39,738,751 189,413,599 3,671 - - - - -

2,685,020 3,338,121 3,871,957 2,722,639 3,110,625 2,742,276 - - - - - - - - - - - -

108,156,317$ 90,234,199$ 108,190,499$ 107,636,965$ 66,204,179$ 219,038,373$

145,366,362$ 138,710,587$ 162,498,177$ 173,089,498$ 144,400,206$ 310,537,845$

123

Fiscal Year


2007 2008 2009 2010Federal Sources

Federal Grants -$ 10,286$ 4,412$ 8,212$ Food Service 3,948,269 4,320,957 4,893,825 11,026,684

Total Federal Sources 3,948,269$ 4,331,243$ 4,898,237$ 11,034,896$

State Sources:State Grants & Other 33,521,492$ 49,113,600$ 45,945,501$ 44,535,929$ Debt Service 2,263,010 1,243,545 - - Captital Projects 5,079 5,608 5,935 12,250 Food Service 2,031,951 1,975,300 2,353,433 1,026,831

Total State Sources 37,821,532$ 52,338,053$ 48,304,869$ 45,575,010$

Local Sources:Local & Intermediate Sources 80,024,789$ 71,176,686$ 73,794,586$ 75,514,665$ Debt Service 23,091,712 28,176,532 29,806,467 35,694,150 Captial Projects 1,421,679 1,385,018 444,318 225,322 Food Service 6,035,499 6,114,008 6,246,409 7,838,017

Total Local Sources 110,573,679$ 106,852,244$ 110,291,780$ 119,272,154$

Total Revenues 152,343,480$ 163,521,540$ 163,494,886$ 175,882,060$

Source: Exhibit XX, Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds for the Allen Independent School District

Continued124

ALLEN INDEPENDENT SCHOOL DISTRICTGOVERNMENTAL FUNDS REVENUES


Fiscal Year


2011 2012 2013 2014 2015 2016

8,595$ 7,769$ 78,511$ 83,309$ 27,758$ 11,117$ 15,040,727 4,741,124 5,088,101 5,734,788 5,770,654 5,800,427 15,049,322$ 4,748,893$ 5,166,612$ 5,818,097$ 5,798,412$ 5,811,544$

49,679,765$ 51,094,305$ 48,233,931$ 55,017,628$ 55,463,730$ 54,880,605$ - - - - - 958,743

10,777 11,798 12,006 7,104 7,455 7,666 846,380 1,495,187 538,772 1,867,867 2,430,139 1,243,800

50,536,922$ 52,601,290$ 48,784,709$ 56,892,599$ 57,901,324$ 57,090,814$

77,385,441$ 89,364,104$ 95,383,077$ 99,063,821$ 110,940,473$ 119,133,583$ 36,514,518 37,404,862 39,534,556 41,435,518 44,451,697 47,486,485

234,207 170,824 171,280 107,257 65,792 1,823,424 8,468,586 9,164,554 9,459,046 8,558,167 9,661,101 9,376,930

122,602,752$ 136,104,344$ 144,547,959$ 149,164,763$ 165,119,063$ 177,820,422$

188,188,996$ 193,454,527$ 198,499,280$ 211,875,459$ 228,818,799$ 240,722,780$

125

Fiscal Year


2007 2008 2009Expenditures

11 Instruction 67,052,192$ 73,532,724$ 79,247,364$ 12 Instruction Resources and Media Services 1,767,318 2,016,006 2,218,194 13 Curriculum and Instructional Staff Development 1,604,703 2,044,465 2,327,802

Total Function 10 70,424,213 77,593,195 83,793,360

21 Instructional Leadership 905,664 887,705 1,227,153 23 School Leadership 6,114,671 7,001,629 7,506,365

Total Function 20 7,020,335 7,889,334 8,733,518

31 Guidance, Counseling, and Evaluation Services 4,766,893 5,434,038 6,276,939 32 Social Work Services - - - 33 Health Services 1,001,320 1,045,104 1,092,138 34 Student (Pupil) Transportation 2,381,102 2,699,388 2,845,668 35 Food Services 4,993,143 5,344,954 5,628,028 36 Extracurricular Activities 2,831,334 2,984,060 3,083,147

Total Function 30 15,973,792 17,507,544 18,925,920

41 General Administration 3,532,541 4,230,789 4,134,621 Total Function 40 3,532,541 4,230,789 4,134,621

51 Facilities Maintenance and Operations 15,607,911 15,610,963 16,832,368 52 Security and Monitoring Services 910,872 909,588 1,368,487 53 Data Processing Services 1,381,849 1,465,588 1,675,468

Total Function 50 17,900,632 17,986,139 19,876,323

61 Community Services 17,612 2,627 1,823 Total Function 60 17,612 2,627 1,823

71 Principal on Long-Term Debt 11,900,119 12,910,230 13,094,362 72 Interest on Long-Term Debt 13,895,378 14,061,098 14,599,293 73 Bond Issuance and Cost Fees 201,799 162,290 561,687

Total Function 70 25,997,296 27,133,618 28,255,342

81 Facilities Acquisition and Construction 17,277,656 31,028,841 34,070,054 Total Function 80 17,277,656 31,028,841 34,070,054

91 Contracted Instrucitonal Services Between Schools - - - 95 Juvenile Justice Alternative Education Programs 90,115 47,205 57,308 99 Other Intergovernmental Charges - - 637,613

Total Function 90 90,115 47,205 694,921

Total Expenditures 158,234,192$ 183,419,292$ 198,485,882$

Capital Expenditures 15,753,812 26,064,822 31,256,839

Debt Service as a Percentage of Noncapital Expenditures 18.2% 17.2% 16.9%

Source: Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Fundsfor the Allen Independent School District Continued

126

ALLEN INDEPENDENT SCHOOL DISTRICTGOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO

LAST TEN FISCAL YEARS (UNAUDITED)Fiscal Year


2010 2011 2012 2013 2014 2015 2016

83,671,274$ 88,757,376$ 86,314,300$ 91,174,342$ 96,680,379$ 102,805,720$ 102,416,408$ 2,248,728 2,331,434 2,246,749 2,071,624 2,068,718 2,058,551 2,096,906 2,560,303 2,197,317 1,726,723 2,034,402 2,374,371 2,804,773 3,193,844

88,480,305 93,286,127 90,287,772 95,280,368 101,123,468 107,669,044 107,707,158

1,299,262 1,371,020 1,163,100 1,133,298 1,236,727 1,231,079 1,603,403 7,655,381 8,280,793 8,384,696 8,651,656 8,800,054 9,122,472 9,559,694 8,954,643 9,651,813 9,547,796 9,784,954 10,036,781 10,353,551 11,163,097

6,935,070 7,688,264 7,203,051 7,888,037 8,159,373 8,489,953 9,042,930 - - - 2,162 32,349 31,173 60,492

1,254,287 1,316,229 1,239,406 1,298,504 1,442,710 1,515,808 1,583,167 2,963,569 2,980,458 3,004,312 3,273,898 3,620,461 3,618,464 3,722,380 5,850,534 5,850,502 5,909,100 6,367,093 5,961,732 7,281,083 7,345,596 3,714,039 3,711,782 3,954,200 4,256,023 4,733,721 4,483,675 5,591,937

20,717,499 21,547,235 21,310,069 23,085,717 23,950,346 25,420,156 27,346,502

4,049,536 4,195,289 3,616,048 3,987,468 4,309,157 4,826,176 5,384,330 4,049,536 4,195,289 3,616,048 3,987,468 4,309,157 4,826,176 5,384,330

16,684,887 16,808,009 15,035,919 16,425,661 15,885,134 18,466,983 17,705,067 1,385,716 1,325,884 1,593,554 1,883,829 1,834,706 2,191,400 2,542,218 1,561,995 1,882,848 1,567,811 1,730,807 1,695,441 1,892,891 4,984,612

19,632,598 20,016,741 18,197,284 20,040,297 19,415,281 22,551,274 25,231,897

121,408 6,931 1,724 2,130 1,991 20,665 19,418 121,408 6,931 1,724 2,130 1,991 20,665 19,418

15,965,096 16,165,000 16,065,000 17,035,000 19,100,000 19,225,000 23,375,000 17,181,877 19,601,252 20,571,007 21,716,821 21,969,028 21,718,823 21,127,048

933,160 535,106 601,790 225,646 193,253 402,363 2,485,846 34,080,133 36,301,358 37,237,797 38,977,467 41,262,281 41,346,186 46,987,894

39,771,614 73,491,076 67,981,542 41,120,797 36,497,399 40,126,517 29,264,464 39,771,614 73,491,076 67,981,542 41,120,797 36,497,399 40,126,517 29,264,464

- - 581,130 314,083 411,310 776,337 1,129,136 84,917 42,690 62,149 73,302 40,265 40,449 26,390

698,671 739,107 781,240 856,647 900,480 959,364 1,047,702 783,588 781,797 1,424,519 1,244,032 1,352,055 1,776,150 2,203,228

216,591,324$ 259,278,367$ 249,604,551$ 233,523,230$ 237,948,759$ 254,089,719$ 255,307,988$

35,527,535 66,187,565 62,521,020 37,368,826 32,430,182 39,123,487 29,835,711

18.8% 18.8% 19.9% 19.9% 20.1% 19.2% 20.8%

127

Fiscal Year


2007 2008 2009Excess of Revenues Over

(Under) Expenditures (5,890,712)$ (19,897,752)$ (34,990,996)$

Other Financing Sources (Uses)Refunding Bonds Issued 25,120,000 - - Capital Related Debt Issued (Regular Bonds) 29,810,000 22,315,000 61,760,000 Sale of Real and Personal Property 890,070 - - Transfers In 1,134,398 822,000 2,000,668 Premium Discount on Issuance of Bonds 492,644 149,938 2,089,081 Transfers Out (Use) (220,815) - (405,556) Other (Uses) (26,045,255) - -

Total Other Financing Sources (Uses) 31,181,042 23,286,938 65,444,193

Net Change in Fund Balance 25,290,330$ 3,389,186$ 30,453,197$

Source: Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Fundsfor the Allen Independent School District

Continued128

ALLEN INDEPENDENT SCHOOL DISTRICTGOVERNMENTAL FUNDS OTHER FINANCING SOURCES AND USES AND


Fiscal Year

NET CHANGE IN FUND BALANCES


2010 2011 2012 2013 2014 2015 2016

(40,709,264)$ (71,089,371)$ (56,150,024)$ (35,023,950)$ (26,073,300)$ (25,270,920)$ (14,585,208)$

- - - - - - - 99,117,100 55,890,000 64,285,000 70,460,936 54,000,000 34,640,000 301,900,000

- - - 199,163 - - 2,053,820 1,586,398 2,199,140 1,242,024 1,754,522 1,554,310 1,586,697 1,572,044 4,765,657 3,072,059 6,675,086 7,567,142 2,880,499 4,949,001 53,633,619 (386,398) (407,233) (342,024) (354,522) (354,310) (386,697) (372,044)

(9,415,050) (14,975,432) (22,365,837) (20,840,801) (21,268,775) (44,207,373) (178,064,592) 95,667,707 45,778,534 49,494,249 58,786,440 36,811,724 (3,418,372) 180,722,847

54,958,443$ (25,310,837)$ (6,655,775)$ 23,762,490$ 10,738,424$ (28,689,292)$ 166,137,639$

129

Fiscal Year


130

Revenue Capacity Information

131

132


EXHIBIT I-8

Agriculture Commercial & Total TotalFiscal Residential & Farm Industrial Less: Assessed DistrictYear Property Property Property Exemptions Value Rate (2)

2007 4,259,255,656 545,155,293 1,365,648,482 661,498,345 5,508,561,086 1.77510

2008 4,904,283,384 583,919,595 1,594,314,241 759,455,759 6,323,061,461 1.47030

2009 5,263,523,873 623,200,498 1,721,337,827 764,753,666 6,843,308,532 1.47030

2010 5,481,898,821 548,446,366 1,972,457,653 831,344,909 7,171,457,931 1.47030

2011 5,559,641,012 511,467,636 2,027,431,128 864,360,290 7,234,179,486 1.54000

2012 5,681,125,905 457,565,110 2,183,096,060 487,369,696 7,834,417,379 1.67000

2013 5,937,597,350 443,246,118 2,307,886,494 818,618,028 7,870,111,934 1.67000

2014 6,306,372,669 423,690,218 2,347,690,211 843,364,999 8,234,388,099 1.67000

2015 7,106,941,341 450,359,482 2,495,957,265 972,899,777 9,080,358,311 1.64000

2016 7,952,192,139 481,173,242 2,632,520,135 919,342,968 10,146,542,548 1.61000

Source: Collin Central Appraisal District

Notes:(1) Represents total appraised value before exemptions.(2) Per $100 of assessed value.

Appraised Value (1)

ALLEN INDEPENDENT SCHOOL DISTRICTAPPRAISED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY


133

EXHIBIT I-9

Maintenance Total County City City City CityFiscal and Debt Direct of Collin of of of ofYear Operations Service Rate Collin College Allen McKinney Parker Plano

2007 1.37000 0.40510 1.77510 0.24500 0.08768 0.55800 0.58800 0.37708 0.47350

2008 1.04000 0.43030 1.47030 0.24500 0.08698 0.55700 0.58550 0.37708 0.47350

2009 1.04000 0.43030 1.47030 0.24250 0.08649 0.55600 0.58550 0.37708 0.47350

2010 1.04000 0.43030 1.47030 0.24250 0.08630 0.55500 0.58550 0.37708 0.48860

2011 1.04000 0.50000 1.54000 0.24000 0.08630 0.55400 0.58550 0.37708 0.48860

2012 1.17000 0.50000 1.67000 0.24000 0.08630 0.55300 0.58550 0.37708 0.48860

2013 1.17000 0.50000 1.67000 0.24000 0.08630 0.55200 0.58550 0.37708 0.48860

2014 1.17000 0.50000 1.67000 0.23750 0.08364 0.55000 0.58550 0.35708 0.48860

2015 1.16000 0.48000 1.64000 0.23500 0.08196 0.54000 0.58300 0.35098 0.48860

2016 1.14000 0.47000 1.61000 0.22500 0.08196 0.53000 0.58300 0.35098 0.48860

Source: Collin Central Appraisal District

Notes:(1) Includes levies for operating and debt service costs.

Tax Rate Limitation (imposed by statute and local referendum)

Debt Service of Limited Tax Bond: $0.50 per $100 assessed valuation of taxableproperty in the District (Section 20.08, Texas Education Code).

Local Maintenance: $1.50 per $100 assessed valuation subject to reduction as a debtincreases above 7% of taxable assessed valuation (Section 20.04, Texas EducationCode).

Overlapping Rates (1)

134

Allen ISD Direct Rates

ALLEN INDEPENDENT SCHOOL DISTRICTDIRECT AND OVERLAPPING PROPERTY TAX RATES


EXHIBIT I-10

Percentage Percentageof Total of Total

Taxable Assessed Taxable AssessedAssessed Taxable Assessed Taxable

Taxpayer Value Rank Value Value Rank ValueThe Village at Allen LP 147,302,454$ 1 1.45%

AT&T Mobility LLC 123,287,548 2 1.22% 88,107,359 1 Watters Creek Owner LLC 117,750,824 3 1.16% Chelsea Allen Development LP 89,327,906 4 0.88% 69,500,000 2AT&T Services Inc 83,591,374 5 0.82%

Cisco Systems Inc 81,174,520 6 0.80% 64,246,753$ 1.17% Creekside Acquisition LP 60,819,953 7 0.60% Craig Ranch PT MFA I LP 45,804,526 8 0.45% BH Benton Pointe Apartments LLC 44,795,236 9 0.44% 31,982,262 5 0.0058059BH Settlers Gate Apartments LP 44,001,257 10 0.43%TXU Electric Delivery Company 38,192,970 3 0.69%Lexington Allen LP 36,999,981 4 0.67%TC Village Inc 30,086,965 6 0.55%BES Settler's Gate Fund III LP & ETAL 29,000,000 7 0.53%New Cingular Wireless Headquarters LLC 24,905,306 8 0.45%SW Bell Telephone LP 24,371,090 9 0.44%Bossy Boots Holdings LTD 20,709,928 10 0.38%

837,855,598$ 8.26% 458,102,614$ 5.46%

Source: Collin County Central Appraisal District.

Notes:(1) Per $100 of assessed value.

2007 Total Taxable Value 5,508,561,086 2016 Total Taxable Value 10,146,542,548

135

2016 2007

ALLEN INDEPENDENT SCHOOL DISTRICTPRINCIPAL PROPERTY TAX PAYERS


EXHIBIT I-11

Taxes Levied Collection inFiscal for the Percentage Subsequent PercentageYear Fiscal Year Amount of Levy (1) Levy Years Amount of Levy (1)2007 97,983,156 94,738,291 96.69% 3,501,057 98,239,348 100.26%

2008 90,602,948 92,097,528 101.65% 1,971,126 94,068,654 103.83%

2009 100,223,020 99,160,067 98.94% 1,341,199 100,501,266 100.28%

2010 107,575,361 107,984,128 100.38% 1,606,067 109,590,195 101.87%

2011 111,238,296 111,452,466 100.19% 1,718,144 113,170,610 101.74%

2012 124,473,111 123,529,462 99.24% 1,580,610 125,110,072 100.51%

2013 132,483,600 129,392,237 97.67% 1,601,304 130,993,541 98.88%

2014 138,691,627 136,991,095 98.77% 1,121,110 138,112,205 99.58%

2015 150,593,761 148,616,905 98.69% 1,196,745 149,813,650 99.48%

2016 165,807,262 159,986,575 96.49% - 159,986,575 96.49%

Source: Collin Central Appraisal District and District Records

Notes:(1) Total Collections, net of penalties and interest and other judements, may result in collections that exceed 100% oforiginal levy.

ALLEN INDEPENDENT SCHOOL DISTRICTPROPERTY TAX LEVIES AND COLLECTIONS


136

Year of the LevyCollected Within the Fiscal

Total Collections to Date

Debt Capacity Information

137

EXHIBIT I-12

General Total PercentageFiscal Obligation Primary of Personal PerYear Bonds Government (1) Income (2) Capita (2)

2007 273,341,808 273,341,808 12.34% 3,974

2008 283,356,292 283,356,292 11.47% 3,974

2009 332,002,327 332,002,327 12.70% 4,370

2010 409,460,425 409,460,425 14.10% 5,003

2011 436,795,282 436,795,282 14.59% 5,386

2012 468,239,855 468,239,855 14.39% 5,503

2013 513,612,989 513,612,989 14.40% 5,812

2014 530,154,323 530,154,323 14.66% 5,730

2015 506,714,248 506,714,248 12.81% 5,413

2016 675,437,388 675,437,388 17.66% 7,141

Source: District records.

Notes:(1) Details of the District's outstanding debt can be found in the notes to the financial statements.(2) See Exhibit I-15 for personal income and population data.

ALLEN INDEPENDENT SCHOOL DISTRICTOUTSTANDING DEBT BY TYPE


138


EXHIBIT I-13

EstimatedShare of

Estimated Direct andDebt Percentage Overlapping

Outstanding Applicable (1) Debt

County of Collin 402,795,000 3.20% 12,889,440 Collin College 31,600,000 3.20% 1,011,200 City of Allen 190,291,256 99.50% 189,339,800 City of McKinney 263,424,127 4.78% 12,591,673 City of Parker 66,900,000 7.40% 4,950,600 City of Plano 316,275,000 0.89% 2,814,848 Subtotal, overlapping bonded debt 223,597,560

Allen Independent School District debt outstanding 675,437,388$

Total Direct and Overlapping Debt 899,034,948$

Ratio of (net) gerenal bonded debt to the estimated actual property value 8.86%

Source:Taxable value data used to estimated applicable percentages provided by Collin Central Appraisal District.Debt outstanding data provided by each governmental unit.

Notes:(1)The percentage of overlapping debt applicable is estimated using taxable property values.

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 businesses of the District. This process recognizes that, when considering the District's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. This does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt of each overlapping government.

ALLEN INDEPENDENT SCHOOL DISTRICTDIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT

JUNE 30, 2016 (UNAUDITED)

139


2007 2008 2009 2010

Debt Limit 550,856,109$ 632,306,146$ 684,330,853$ 717,145,793$

Total Net Debt Applicable to Limit 273,341,808 283,356,292 332,002,327 409,460,425

Legal Debt Margin 277,514,301$ 348,949,854$ 352,328,526$ 307,685,368$

Total Net Debt Applicable to theLimit as a Percentage of Debt Limit 49.62% 44.81% 48.51% 57.10%

Source: Calculation from taxable assessed valuation, total bonded debt, and debt service reservationdata.

Note: Bonded Debt Limitation: Total principal amount of tax fund indebtness cannot exceed 10% of assessed valuation of taxable property in the District according to the approved ad valorem tax roll atthe time of issuance of bonds.

Continued

ALLEN INDEPENDENT SCHOOL DISTRICTLEGAL DEBT MARGIN INFORMATION


140


Legal Debt Margin Calculation for Fiscal Year 2015Assessed Value 10,146,542,548$ Debt Limt (10% of Assessed Value) 1,014,654,255$ Debt Applicable to Limit (675,437,388) Legal Debt Margin 339,216,867$

2011 2012 2013 2014 2015 2016

723,417,949$ 738,441,738$ 787,011,193$ 823,438,810$ 908,035,831$ 1,014,654,255$

436,795,282 468,239,855 513,612,989 530,154,323 506,714,248 675,437,388

286,622,667$ 270,201,883$ 273,398,204$ 293,284,487$ 401,321,583$ 339,216,867$

60.38% 63.41% 65.26% 64.38% 55.80% 66.57%

141

142


Demographic and Economic Information

143

EXHIBIT I-15

CapitaPersonal Personal Income Unemployment

Fiscal Year Population (1) Income Dollars (2) Rate (3)2007 68,774 2,215,829,506 32,219 3.80%

2008 71,310 2,471,319,360 34,656 4.30%

2009 75,973 2,613,319,254 34,398 8.10%

2010 81,836 2,903,868,624 35,484 7.00%

2011 81,091 2,993,960,811 36,921 6.60%

2012 85,086 3,254,794,758 38,253 6.20%

2013 88,370 3,566,524,830 40,359 5.60%

2014 92,524 3,615,560,348 39,077 4.60%

2015 93,615 3,955,233,750 42,250 3.30%

2016 94,583 3,824,179,856 40,432 3.16%

Sources:(1) Estimated population provided by Municipal Advisory Council of Texas(2) Estimated Per Capita Income provided by Allen Economic Development Corporation(3) Unemployment Rate provided by Texas Workforce Commission

ALLEN INDEPENDENT SCHOOL DISTRICTDEMOGRAPHIC AND ECONOMIC STATISTICS


144

EXHIBIT I-16

Percentage of Percentage ofTotal City Total City

Employer Employees Rank Employment Employees Rank EmploymentAllen Independent School District 2,391 1 7.1% 2,300 1 10.1%

CVE Technology 1,200 2 3.6% - -

Experian Information Solutions 865 3 2.6% 655 4 2.9%

Frontier Communications 850 4 2.5% - - -

City of Allen 841 5 2.1% 684 3 3.0%

Texas Health Presbyterian Hospital 700 6 2.1% 690 2 3.0%

Jack Henry & Assoicates 640 7 1.9% 303 8 1.3%

PFSWeb Inc 450 8 1.3% - - -

Andrew's Distributing 400 9 1.2% - - -

KONE Inc 320 10 1.0% - - -

Graphic Converting - - - 600 5 2.6%

Sanmina-SCI - - - 565 6 2.5%

Celerity, Inc. - - - 330 7 1.4%

Sage Telecommunications - - - 300 9 1.3%

RCL Enterprises - - - 225 10 1.0%

Total 8,517 25.3% 6,652 29.1%

Source: Allen Economic Development Corporation provided 2006 and 2015 Principal Employers and TotalLabor ForceNote:

2016 Labor Force: 33,6142007 Labor Force: 22,836

145

2016 2007

ALLEN INDEPENDENT SCHOOL DISTRICTPRINCIPAL EMPLOYERS

CURRENT YEAR AND NINE YEARS AGO (UNAUDITED)

146


Operating Information

147


Teachers 2007 2008 2009Substitute 3.0 0.0 0.0Teacher 1,065.4 1,116.8 1,167.0

Total Teachers 1,068.4 1,116.8 1,167.0Professional Support

AudiologistCounselor 30.0 31.0 32.0Educational Diagnostician 23.0 22.0 23.0Librarian 18.0 18.0 19.0Occupational Therapist 3.0 4.0 4.0Physical Therapist 0.0 0.0 0.0Certified Orientation & Mobility Specialist 1.0 1.0 1.0School Nurse 20.0 20.0 21.0School Psychologist 4.0 5.0 5.0LSSP Psychologist 0.0 0.0 0.0Speech Therapist/Speech Language Pathologist 18.0 19.0 19.0Teacher Facilitator 4.0 11.0 28.0Athletic Trainer 0.0 0.0 0.0Campus Professional Personnel 2.0 3.0 2.0Non-Campus Professional Personnel 24.0 26.0 29.0

Total Professional Support 147.0 160.0 183.0

Campus AdministrationPrincipal 18.0 18.0 19.0Assistant Principal 28.0 32.0 35.0Instructional Officer 6.0 6.0 7.0Athletic Director 1.0 1.0 1.0

Total Campus Administration 53.0 57.0 62.0Central Administration

Assistant/Associate/Deputy Superintendent 5.0 4.0 5.0Superintendent 1.0 1.0 1.0Director/Executive Directors 1.0 1.0 0.0

Total Central Administration 7.0 6.0 6.0

Educational AidesEducational Aides 162.0 128.0 212.0

Total Educational Aides 162.0 128.0 212.0

Total All Full-Time Equivalent Employees 1,437.4 1,467.8 1,630.0

Source: District records from the FALL PEIMS submission data.Notes: Full-time instructional employees of the District are employed for all 180 scheduled schooldays. FTE employment for all other positions is determined based on the percentage of the days employed.

Continued

ALLEN INDEPENDENT SCHOOL DISTRICTFULLTIME EQUIVALENT DISTRICT EMPLOYEES BY TYPE


148

Full-time Equivalent Employees

EXHIBIT I-17 Page 2 of 2

2010 2011 2012 2013 2014 2015 20163.0 0.0 0.0 0.0 5.0 2.0 0.8

1,212.7 1,221.2 1,188.6 1,245.8 1,271.7 1,299.0 1,307.11,215.6 1,221.2 1,188.6 1,245.8 1,276.7 1,301.0 1,307.9

32.8 34.0 32.9 38.5 42.7 41.7 42.624.8 25.0 22.0 22.5 25.6 24.7 26.018.4 21.0 20.9 21.0 22.0 21.6 21.9

3.4 4.1 4.1 4.1 4.1 4.1 4.10.0 1.3 1.3 1.3 1.8 1.8 1.41.0 0.5 0.5 0.5 0.0 0.0 0.0

22.0 22.4 21.5 22.0 24.0 23.0 23.93.9 5.0 5.0 4.0 0.0 0.0 0.00.0 0.0 0.0 2.0 6.0 6.0 6.0

21.2 21.7 16.2 16.7 25.8 26.9 23.530.5 24.0 19.7 24.8 25.8 28.0 30.3

0.0 2.0 2.0 1.8 2.9 2.9 2.91.4 28.0 23.0 28.1 34.6 35.1 33.3

33.5 28.5 26.5 28.0 26.6 46.0 58.5193.0 217.5 195.6 215.4 241.9 261.8 274.4

23.1 22.0 21.1 21.1 22.1 22.1 21.727.1 35.0 33.4 35.0 34.0 32.1 33.44.8 5.0 4.0 4.0 5.0 4.6 4.61.0 1.0 1.0 1.0 1.0 1.0 1.0

56.0 63.0 59.5 61.1 62.1 59.9 60.7

4.0 4.0 3.0 3.0 3.0 3.0 3.01.0 1.0 1.0 1.0 1.0 1.0 1.01.0 1.0 1.0 1.0 1.0 2.0 2.06.0 6.0 5.0 5.0 5.0 6.0 6.0

195.0 214.3 163.5 122.4 219.2 233.1 249.3195.0 214.3 163.5 122.4 219.2 233.1 249.3

1,665.5 1,722.0 1,612.1 1,649.7 1,804.9 1,861.7 1,898.3

149

Full-time Equivalent Employees

EXHIBIT I-18

Percentageof StudentsReceiving

Cost Pupil- Free orOperating Per Percentage Teaching Teacher Reduced-Price

Fiscal Year Enrollment Expenditures Pupil Change Staff Ratio Meals

2007 16,407 104,477,729 6,368 3.47% 1,068.4 15.4 13.7%

2008 16,991 114,648,236 6,748 5.96% 1,116.8 15.2 13.8%

2009 17,455 124,140,453 7,112 5.40% 1,167.0 15.0 14.3%

2010 18,086 123,408,564 6,823 -4.06% 1,215.6 14.9 16.0%

2011 18,726 126,549,084 6,758 -0.96% 1,221.2 15.3 16.2%

2012 19,364 130,441,859 6,736 -0.32% 1,188.6 16.3 16.7%

2013 19,768 139,618,751 7,063 4.85% 1,245.8 15.9 16.8%

2014 20,262 144,364,632 7,125 0.88% 1,276.7 15.9 15.9%

2015 20,554 155,214,781 7,552 5.99% 1,301.0 15.8 15.2%

2016 20,739 162,255,564 7,824 3.60% 1307.9 15.9 14.9%

Source: TEA AEIS Reports, TEA TAPR Reports, and Statement of Revenues, Expenditures, and Changes in Fund Balance - Governmental Funds

ALLEN INDEPENDENT SCHOOL DISTRICTOPERATING STATISTICS


150

EXHIBIT I-19

Minimum Maximum District Average Statewide AverageFiscal Year Salary Salary Salary Salary

2007 41,001 56,288 45,849 44,897

2008 42,625 57,993 47,643 46,179

2009 44,500 59,977 49,327 47,159

2010 45,000 60,794 50,227 48,263

2011 46,000 61,958 50,701 48,638

2012 45,500 61,958 50,729 48,375

2013 46,000 62,082 50,831 48,821

2014 47,500 62,815 51,650 49,692

2015 47,500 64,006 52,981 50,715

2016 49,000 65,221 54,365 51,891

Source: TEA AEIS Reports, TEA TAPR Reports, and District Records

ALLEN INDEPENDENT SCHOOL DISTRICTTEACHER BASE SALARIES


Page 151


Building 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016HIGH SCHOOLS

Allen (1999)Square Footage 647,674 647,674 647,674 873,967 873,967 873,967 873,967 873,967 873,967 873,967Capacity 4,800 4,800 4,800 5,325 5,325 5,325 5,325 5,325 5,325 5,325Enrollment 3,623 3,613 3,637 3,671 3,836 3,986 4,137 4,411 4,537 4,745Percentage of Capacity Currently in Use 75.48% 75.27% 75.77% 68.94% 72.04% 74.85% 77.69% 82.84% 85.20% 89.11%

Lowery Freshmen Center (1960)Square Footage 282,917 282,917 282,917 282,917 282,917 282,917 282,917 282,917 282,917 282,917Capacity 1,775 1,775 1,775 1,775 1,775 1,775 1,775 1,775 1,775 1,775Enrollment 1,133 1,218 1,236 1,335 1,402 1,396 1,546 1,565 1,572 1,635Percentage of Capacity Currently in Use 63.83% 68.62% 69.63% 75.21% 78.99% 78.65% 87.10% 88.17% 88.56% 92.11%

MIDDLE SCHOOLSFord (1982)

Square Footage 149,671 149,671 149,671 149,671 149,671 149,671 149,671 149,671 149,671 149,671Capacity 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100Enrollment 827 833 875 857 878 955 865 895 877 894Percentage of Capacity Currently in Use 75.18% 75.73% 79.55% 77.91% 79.82% 86.82% 78.64% 81.36% 79.73% 81.27%

Curtis (1994)Square Footage 186,681 186,681 186,681 186,681 186,681 186,681 211,511 211,511 211,511 211,511Capacity 1,100 1,100 1,100 1,100 1,100 1,100 1,550 1,550 1,550 1,550Enrollment 670 710 747 726 838 1,000 1,073 1,094 1,191 1,236Percentage of Capacity Currently in Use 60.91% 64.55% 67.91% 66.00% 76.18% 90.91% 69.23% 70.58% 76.84% 79.74%

Ereckson (2004)Square Footage 244,614 244,614 244,614 244,614 244,614 272,386 272,386 272,386 272,386 272,386Capacity 1,100 1,100 1,100 1,100 1,100 1,550 1,550 1,550 1,550 1,550Enrollment 863 912 992 1,076 1,091 1,115 1,140 1,147 1,156 1,195Percentage of Capacity Currently in Use 78.45% 82.91% 90.18% 97.82% 99.18% 71.94% 73.55% 74.00% 74.58% 77.10%

ALLEN INDEPENDENT SCHOOL DISTRICTSCHOOL BUILDING INFORMATION


152Continued

EXHIBIT I-20Building 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016ELEMENTARY SCHOOLS Page 2 of 4

Rountree (1974)Square Footage 78,800 78,800 78,800 78,800 78,800 78,800 89,800 89,800 89,800 89,800Capacity 700 700 700 700 700 700 725 725 725 725Enrollment 580 554 542 558 531 523 502 527 558 531Percentage of Capacity Currently in Use 82.86% 79.14% 77.43% 79.71% 75.86% 74.71% 69.24% 72.69% 76.97% 73.24%

Boyd (1978)Square Footage 81,750 81,750 112,412 112,412 112,412 112,412 114,812 114,812 114,812 114,812Capacity 700 700 950 950 950 950 950 950 950 950Enrollment 582 609 603 597 587 732 742 746 715 685Percentage of Capacity Currently in Use 83.14% 87.00% 63.47% 62.84% 61.79% 77.05% 78.11% 78.53% 75.26% 72.11%

Reed (1981)Square Footage 86,323 86,323 86,323 86,323 86,323 86,323 86,323 86,323 86,323 86,323Capacity 815 815 815 815 815 815 815 815 815 815Enrollment 686 663 688 573 543 502 521 571 608 592Percentage of Capacity Currently in Use 84.17% 81.35% 84.42% 70.31% 66.63% 61.60% 63.93% 70.06% 74.60% 72.64%

Story (1987)Square Footage 92,595 92,595 92,595 92,595 92,595 92,595 92,595 92,595 92,595 92,595Capacity 850 850 850 850 850 850 850 850 850 850Enrollment 825 815 758 729 647 675 606 537 526 521Percentage of Capacity Currently in Use 97.06% 95.88% 89.18% 85.76% 76.12% 79.41% 71.29% 63.18% 61.88% 61.29%

Vaughan (1989)Square Footage 90,881 90,881 90,881 90,881 90,881 90,881 90,881 90,881 90,881 90,881Capacity 850 850 850 850 850 850 850 850 850 850Enrollment 686 630 587 582 548 532 520 514 506 498Percentage of Capacity Currently in Use 80.71% 74.12% 69.06% 68.47% 64.47% 62.59% 61.18% 60.47% 59.53% 58.59%

Green (1995)Square Footage 82,447 82,447 82,447 82,447 82,447 82,447 82,447 82,447 82,447 82,447Capacity 850 850 850 850 850 850 850 850 850 850Enrollment 776 784 741 764 702 653 614 700 681 638Percentage of Capacity Currently in Use 91.29% 92.24% 87.18% 89.88% 82.59% 76.82% 72.24% 82.35% 80.12% 75.06%

Norton (1997)Square Footage 102,007 102,007 102,007 102,007 102,007 102,007 102,007 102,007 102,007 102,007Capacity 850 850 850 850 850 850 850 850 850 850Enrollment 527 634 629 603 549 567 583 583 568 533Percentage of Capacity Currently in Use 62.00% 74.59% 74.00% 70.94% 64.59% 66.71% 68.59% 68.59% 66.82% 62.71%

153 Continued


Building 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Anderson (1997)

Square Footage 102,007 102,007 102,007 102,007 102,007 102,007 102,007 102,007 102,007 102,007Capacity 850 850 850 850 850 850 850 850 850 850Enrollment 941 941 934 648 637 628 655 606 597 576Percentage of Capacity Currently in Use 110.71% 110.71% 109.88% 76.24% 74.94% 73.88% 77.06% 71.29% 70.24% 67.76%

Bolin (1999)Square Footage 93,875 93,875 93,875 93,875 93,875 93,875 93,875 93,875 93,875 93,875Capacity 850 850 850 850 850 850 850 850 850 850Enrollment 774 808 764 792 786 696 677 678 625 583Percentage of Capacity Currently in Use 91.06% 95.06% 89.88% 93.18% 92.47% 81.88% 79.65% 79.76% 73.53% 68.59%

Kerr (1999)Square Footage 93,875 93,875 93,875 93,875 93,875 93,875 93,875 93,875 93,875 93,875Capacity 850 850 850 850 850 850 850 850 850 850Enrollment 761 874 666 750 558 581 631 683 699 699Percentage of Capacity Currently in Use 89.53% 102.82% 78.35% 88.24% 65.65% 68.35% 74.24% 80.35% 82.24% 82.24%

Marion (2003)Square Footage 101,510 101,510 101,510 101,510 101,510 101,510 101,510 101,510 101,510 101,510Capacity 950 950 950 950 950 950 950 950 950 950Enrollment 867 936 956 841 868 903 891 807 782 778Percentage of Capacity Currently in Use 91.26% 98.53% 100.63% 88.53% 91.37% 95.05% 93.79% 84.95% 82.32% 81.89%

Boon (2005)Square Footage 119,074 119,074 119,074 119,074 119,074 119,074 119,074 119,074 119,074 119,074Capacity 950 950 950 950 950 950 950 950 950 950Enrollment 785 872 906 937 757 779 776 789 767 716Percentage of Capacity Currently in Use 82.63% 91.79% 95.37% 98.63% 79.68% 82.00% 81.68% 83.05% 80.74% 75.37%

Chandler (2006)Square Footage 119,074 119,074 119,074 119,074 119,074 119,074 119,074 119,074 119,074 119,074Capacity 950 950 950 950 950 950 950 950 950 950Enrollment 521 581 635 673 712 693 713 675 681 659Percentage of Capacity Currently in Use 54.84% 61.16% 66.84% 70.84% 74.95% 72.95% 75.05% 71.05% 71.68% 69.37%

Evans (2008)Square Footage 119,074 119,074 119,074 119,074 119,074 119,074 119,074 119,074Capacity 950 950 950 950 950 950 950 950Enrollment 556 729 788 838 884 627 626 662Percentage of Capacity Currently in Use 58.53% 76.74% 82.95% 88.21% 93.05% 66.00% 65.89% 69.68%

154 Continued


Building 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Olson (2009)

Square Footage 119,074 119,074 119,074 119,074 119,074 119,074 119,074Capacity 950 950 950 950 950 950 950Enrollment 637 710 692 702 789 780 761Percentage of Capacity Currently in Use 67.05% 74.74% 72.84% 73.89% 83.05% 82.11% 80.11%

Cheatham (2010)Square Footage 119,074 119,074 119,074 119,074 119,074 119,074Capacity 950 950 950 950 950 950Enrollment 754 916 988 639 676 734Percentage of Capacity Currently in Use 79.37% 96.42% 104.00% 67.26% 71.16% 77.26%

Lindsey (2013)Square Footage 119,074 119,074 119,074Capacity 950 950 950Enrollment 678 832 875Percentage of Capacity Currently in Use 71.37% 87.58% 92.11%

OTHER EDUCATIONAL FACILITIESDillard (2005)

Square Footage 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000Ag Barn (1983)

Square Footage 18,500 18,500 18,500 18,500 18,500 18,500 18,500 18,500 18,500 18,500Administration (2008)

Square Footage 61,172 61,172 61,172 61,172 61,172 61,172 61,172 61,172 61,172Athletics (1999)

Square Footage 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000Athletics Fields

Fields (Quantity) 7 7 7 7 7 7 7 7 7 7Football Stadiums (Quantity) 5 5 5 5 5 5 6 6 6 6Running Tracks (Quantity) 4 4 4 4 4 4 4 4 4 4Baseball Fields (Quantity) 2 2 2 2 2 2 2 2 2 2Softball Fields (Quantity) 1 1 1 1 1 1 1 1 1 1Tennis Court Sites (Quantity) 18 18 18 18 18 18 18 18 18 18Playgrounds (Quantity) 13 13 14 15 16 16 16 17 17 17

Service Center Square Footage 120,000

155

156


COMPLIANCE AND FEDERAL AWARDS SECTION

157

158


159



PH 972-335-9754 FAX 972-335-9758

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS

PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Board of Trustees Allen Independent School District 612 E. Bethany Drive Allen, Texas 75002

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government AuditingStandards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Allen Independent School District, as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise Allen Independent School District’s basic financial statements, and have issued our report thereon dated October 11, 2016.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered Allen Independent School District’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Allen Independent School District’s internal control. Accordingly, we do not express an opinion on the effectiveness of Allen Independent School District’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance & Other Matters

As part of obtaining reasonable assurance about whether Allen Independent School District’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

160

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.


161



PH 972-335-9754 FAX 972-335-9758

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133

Board of Trustees Allen Independent School District 612 E. Bethany Drive Allen, Texas 75002

Report on Compliance for Each Major Federal Program

We have audited Allen Independent School District’s compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of Allen Independent School District’s major federal programs for the year ended June 30, 2016. Allen Independent School District’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

Management’s Responsibility

Management is responsible for compliance with the requirements of the laws, regulations, contracts and grants applicable to its federal programs.

Auditor’s Responsibility

Our responsibility is to express an opinion on compliance for each of Allen Independent School District’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Allen Independent School District’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of Allen Independent School District’s compliance.

Opinion on Each Major Federal Program

In our opinion, Allen Independent School District, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2016.

Other Matters

The results of our auditing procedures disclosed no instances of noncompliance, which are required to be reported in accordance with OMB Circular A-133. Our opinion on each major federal program is not modified with respect to these matters.

162

Report on Internal Control Over Compliance

Management of Allen Independent School District, is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Allen Independent School District’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Allen Independent School District’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. 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 OMB Circular A-133. Accordingly, this report is not suitable for any other purpose.


ALLEN INDEPENDENT SCHOOL DISTRICT Schedule of Findings and Questioned Costs

For Year Ended June 30, 2016

163

I. Summary of Auditor’s Results

1. The auditor’s report expresses an unmodified opinion on the financial statements.

2. No significant deficiencies were disclosed during the audit of the financial statements. Nomaterial weaknesses are reported.

3. No issues of noncompliance material to the financial statements which would be required tobe reported in accordance with Government Auditing Standards, were disclosed during theaudit.

4. No significant deficiencies in internal controls over major federal award programs weredisclosed during the audit. No material weaknesses are reported.

5. The auditor’s report on compliance for the major federal award programs expresses anunmodified opinion on all major federal programs.

6. There were no audit findings that are required to be reported in accordance with Section510(a) of OMB Circular A-133.

7. The programs tested as major programs were:National School Lunch Program 10.553, 10.555

8. The dollar threshold used to distinguish between Type A and Type B programs was$750,000.

9. Auditee was determined to be a low-risk auditee.

ALLEN INDEPENDENT SCHOOL DISTRICT Schedule of Status of Prior Findings


164

Program Status

-NONE-

ALLEN INDEPENDENT SCHOOL DISTRICT Corrective Action Plan


165

Program Corrective Action Plan

-NONE-

EXHIBIT I-1ALLEN INDEPENDENT SCHOOL DISTRICT

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSFOR THE YEAR ENDED JUNE 30, 2016

(1)Federal

Entity Identifying

(4)

NumberCFDA

ExpendituresFederal

Number

(3)(2)FEDERAL GRANTOR/PASS-THROUGH GRANTOR/PROGRAM or CLUSTER TITLE

Pass-Through

U.S. DEPARTMENT OF EDUCATIONPassed Through Education Service Center, Region 10

809,064ESEA, Title I, Part A - Improving Basic Programs 84.010A $16610101057950163,110ESEA, Title II, Part A, Teacher/Principal Training 84.367A 16694501057950120,703Title III, Part A - English Language Acquisition 84.365A 16671001057950

Total Passed Through Education Service Center, Region 10 1,092,877$Passed Through State Department of Education

2,671,463IDEA - Part B, Formula 84.027A $16660001043901600070,909IDEA - Part B, Discretionary 84.027A 16660006043901

Total CFDA Number 84.027A 2,742,372

29,951IDEA - Part B, Preschool 84.173A 166610010439016000Total Special Education Cluster (IDEA) 2,772,323

114,614Career and Technical - Basic Grant 84.048A 164200060439018,905Summer School LEP 84.369A 69551502

Total Passed Through State Department of Education 2,895,842$

TOTAL U.S. DEPARTMENT OF EDUCATION 3,988,719$

U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICESPassed Through Education Service Center, Region 10

89,908Head Start 93.600 $07CH7092Total Passed Through Education Service Center, Region 10 89,908$

TOTAL U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 89,908$

U.S. DEPARTMENT OF AGRICULTUREPassed Through State Department of Agriculture

153,021*School Breakfast Program 10.553 $714016011,579,896*National School Lunch Program 10.555 71301601

Total Child Nutrition Cluster 1,732,917

Total Passed Through State Department of Agriculture 1,732,917$

TOTAL U.S. DEPARTMENT OF AGRICULTURE 1,732,917$

TOTAL EXPENDITURES OF FEDERAL AWARDS 5,811,544$

*Denotes Major Program

166See Accompanying Notes to the Schedule of Expenditures of Federal Awards

ALLEN INDEPENDENT SCHOOL DISTRICT Notes to Schedule of Expenditures of Federal Awards


167

1. For all federal programs, the District uses the fund types specified in Texas Education Agency’s“Financial Accountability System Resource Guide.” Special revenue funds are used to account forresources restricted to, or designated for, specific purposes by a grantor. Federal and statefinancial assistance is generally accounted for in a Special Revenue Fund.

2. The accounting and financial reporting treatment applied to a fund is determined by itsmeasurement focus. The Governmental Fund types are accounted for using a current financialresources measurement focus. All Federal grant funds were accounted for in a Special RevenueFund that is a Governmental Fund type. With this measurement focus, only current assets andcurrent liabilities and the fund balance are included on the balance sheet. Operating statementsof 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 ofaccounting recognizes revenues in the accounting period in which they becomes susceptible toaccrual, i.e., both measurable and available, and expenditures in the accounting period in whichthe fund liability is incurred. Federal grant funds are considered to be earned to the extent ofexpenditures made under the provisions of the grant, and, accordingly, when such funds arereceived, they are recorded as deferred expenditures until earned.

3. The period of availability for federal grant funds for the purpose of liquidation of outstandingobligations made on or before the ending date of the federal project period extended 30 daysbeyond the federal project period ending date, in accordance with provisions of Section H, Periodof Availability of Federal Funds, Part 3, OMB Circular A-133 Compliance Statement -Provisional6/97.

4. The District participates in numerous Federal grant programs that are governed by variousrules and regulations of the grantor agencies. Costs charged to the respective grant programs aresubject to audit and adjustment by the grantor agencies; therefore, to the extent that the Districthas not complied with the rules and regulations governing the grants, in any, refunds of anymoney received may be required and the collectability of any related receivable at June 30, 2011,may be impaired. In the opinion of the District, there are no significant contingent liabilitiesrelating to compliance with the rules and regulations governing the respective grants; therefore,no provisions have been recorded in the accompanying financial statements for suchcontingencies.

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