where eagles soar! comprehensive annual financial report...becky hunt executive director special...

ALLEN INDEPENDENT SCHOOL DISTRICT Where Eagles Soar!

Comprehensive Annual Financial Report

_____________________________

For the Fiscal Year Ended June 30, 2015

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, 2015

Prepared by The Finance Department

Greg Cartwright Chief Financial Officer

Brent Ringo Director of Finance

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

As of June 30, 2015

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 ............................................................................................ 35 Statement of Cash Flows ................................................................................................................................................................. 37

FIDUCIARY FUNDS FINANCIAL STATEMENTS: ..................................................................................................................... 39 Statement of Fiduciary Net Position ................................................................................................................................................ 41 Statement of Changes in Fiduciary Fund Net Position ..................................................................................................................... 43

NOTES TO THE FINANCIAL STATMENTS: ............................................................................................................................... 45 BUDGETARY COMPARISON REPORTING – REQUIRED SUPPLEMENTARY INFORMATION: ................................... 73

Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund ................................... 75 Schedule of the District’s Proportionate Share of the Net Pension Liability – Teacher Retirement System .................................... 77 Schedule of the District’s Contribution – Teacher Retirement System ............................................................................................ 78 Notes to the Required Supplementary Information .......................................................................................................................... 79

OTHER SUPPLEMENTARY INFORMATION: ............................................................................................................................ 81 Nonmajor Governmental Funds ....................................................................................................................................................... 83

Combining Balance Sheet ......................................................................................................................................................... 84 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .................................................................. 88

Nonmajor Enterprise Funds ............................................................................................................................................................. 93 Combining Statement of Fund Net Position .............................................................................................................................. 95 Combining Statement of Revenues, Expenditures, and Changes in Fund Net Position ............................................................. 96 Combining Statement of Cash Flows ........................................................................................................................................ 98

Internal Service Funds ..................................................................................................................................................................... 99 Combining Statement of Fund Net Position ............................................................................................................................ 101 Combining Statement of Revenues, Expenditures, and Changes in Fund Net Position ........................................................... 102 Combining Statement of Cash Flows ...................................................................................................................................... 103

Private Purpose Trust Funds .......................................................................................................................................................... 105 Combining Statement of Fund Net Position ............................................................................................................................ 106 Combining Statement of Revenues, Expenditures, and Changes in Fund Net Position ........................................................... 108

Agency Funds ................................................................................................................................................................................ 111 Statement of Changes in Assets and Liabilities ....................................................................................................................... 113

Required Texas Education Agency Schedules ............................................................................................................................... 115 Schedule of Delinquent Taxes Receivable............................................................................................................................... 116 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Child Nutrition Program .......... 118 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Debt Service Fund ................... 119

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D-1 D-2 D-3

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F-1 F-2 F-3

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

As of June 30, 2015

STATISTICAL SECTION (UNAUDITED) .......................................................................................................................................... 121 Index Statistical Section ....................................................................................................................................................................... 123 Financial Trends Information ............................................................................................................................................................... 125

Net Position by Component – Last Ten Years ................................................................................................................................ 126 Expenses, Program Revenues, and Net (Expense) Revenue – Last Ten Years ............................................................................... 128 General Revenues and Total Change in Net Position – Last Ten Years .......................................................................................... 130 Fund Balance Governmental Funds – Last Ten Years .................................................................................................................... 132 Governmental Funds Revenues – Last Ten Years........................................................................................................................... 134 Governmental Funds Expenditures and Debt Service Ratio – Last Ten Years ............................................................................... 136 Governmental Funds Other Financing Sources and Uses and Net Change in Fund Balances – Last Ten Years ............................. 138

Revenue Capacity Information ............................................................................................................................................................. 141 Appraised Value and Actual Value of Taxable Property – Last Ten Years .................................................................................... 143 Direct and Overlapping Property Tax Rates – Last Ten Years ...................................................................................................... 144 Principal Property Tax Payers – Current and Nine Years Ago ....................................................................................................... 145 Property Tax Levies and Collections – Last Ten Years .................................................................................................................. 146

Debt Capacity Information ................................................................................................................................................................... 147 Outstanding Debt by Type – Last Ten Years .................................................................................................................................. 148 Direct and Overlapping Governmental Activities Debt .................................................................................................................. 149 Legal Debt Margin – Last Ten Years .............................................................................................................................................. 150

Demographic and Economic Information ............................................................................................................................................ 153 Demographic and Economic Statistics – Last Ten Years ................................................................................................................ 154 Principal Employers – Current and Nine Years Ago ...................................................................................................................... 155

Operating Information .......................................................................................................................................................................... 157 Full-Time Equivalent District Employees by Type – Last Ten Years ............................................................................................. 158 Operating Statistics – Last Ten Years ............................................................................................................................................. 160 Teacher Base Salaries – Last Ten Years ......................................................................................................................................... 161 School Building Information – Last Ten Years .............................................................................................................................. 162

COMPLIANCE AND FEDERAL AWARDS SECTION .................................................................................................................... 167 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 .............................. 169 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control Over Compliance

Required by OMB Circular A-133.................................................................................................................................................. 171 Schedule of Findings and Questioned Costs ........................................................................................................................................ 173 Schedule of Status of Prior Findings and Corrective Action Plan ........................................................................................................ 174 Schedule of Expenditures of Federal Awards ...................................................................................................................................... 176 Notes to Schedule of Expenditures of Federal Awards ........................................................................................................................ 177

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

I-12 I-13 I-14

I-15 I-16

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

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INTRODUCTORY SECTION

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ALLEN INDEPENDENT SCHOOL DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT

YEAR ENDED JUNE 30, 2015

PRINCIPAL OFFICIALS AND ADVISORS

Board of Trustees

Louise Master……………………………………………………………………………………………President Business Development

Susan Olinger……………………………………………………………………………………...Vice-President Software Engineer

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

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

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

Dr. Michael Myers………………………………………………………………………………………..Member Consultant

Jimmy Trotter…………………………………………………………………………………………….Member Education Consultant

Administrative Officials

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

Beth Nicholas…………………………..…………………………….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 SuperintendentLearner Services

Beth Nicholas

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 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

Fulbright & Jaworski…………………………………………………………………….…………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

American National Bank…………………………………………….……………………….Official Depository 720 S. Greenville Ave. Allen, TX 75002

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November 1, 2015

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, 2015 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.

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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 20,746 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 campuses and the district met the highest accountability standard for the state of Texas in 2015. As a district, Allen ISD scored 93 of 100 for student achievement. 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 11 of our 17 elementary schools earned one or more academic distinction designations. 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. Scores for the PSAT, SAT, and ACT rank above both state and national averages. Allen ISD students consistently win individual and team championships in academics, athletics, and fine arts. In 2014-2015 Allen teams won state championships in

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Archery, Bass Fishing, Bowling, Competitive Shooting, Football, and Wrestling. Our AHS Fine Arts department was one of thirteen US schools selected as a 2014 Grammy Signature School.

Allen ISD ranked among the top ten school districts in Texas and is rated #1 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. 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 63.5 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.

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 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%. The combined appraised value of the ten largest taxpayers total only 8.9 percent of the District’s total 2014-2015 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.

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Growth

According to Forbes, the City of Allen is included as “America’s Top 25 Best Cities to Relocate.” 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 Collin County Association of Realtors, the median home price is $287,000 and the average home price is $333,510, both of which represent an increase of 12% 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.

With the 2014-2015 enrollments of 20,554 the District’s growth is gradually increasing. 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 STEM facility, and of the new 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

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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.

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.

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, 2015. 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

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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, thebusiness-type activities, each major fund, and the aggregate remaining fund information of AllenIndependent School District, as of and for the year ended June 30, 2015, and the related notes to thefinancial statements, which collectively comprise the District’s basic financial statements as listed in thetable of contents.

Management’s Responsibility for the Financial Statements

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

Auditor’s Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements. The procedures selected depend on the auditor’s judgment, including theassessment of the risks of material misstatement of the financial statements, whether due to fraudor error. In making those risk assessments, the auditor considers internal control relevant to theentity’s preparation and fair presentation of the financial statements in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose of expressing anopinion 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 thereasonableness of significant accounting estimates made by management, as well as evaluating theoverall 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, 2015, 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.

Continued

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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 52be 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 nonmajor 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 9, 2015, 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 9, 2015


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ALLEN INDEPENDENT SCHOOL DISTRICT Management’s Discussion and Analysis

For the Year Ended June 30, 2015

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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, 2015. Please read it in conjunction with the district’s basic financial statements, which follow this section.

FINANCIAL HIGHLIGHTS

At June 30, 2015, the District’s assets and deferred outflows exceeded its liabilities by $91,281,953.Of this amount, $56,324,372 (unrestricted net position) may be used to meet the District’s ongoingobligations.

General revenues accounted for $206,162,623 or 90.0% of all fiscal year 2015 revenue. Program-specific revenues in the form of charges for services and grants and contributions accounted for$23,024,259 or 10.8% of total fiscal year 2015 revenues.

The District had $212,964,089 in expenses related to governmental activities; of which $23,024,259of these expenses were offset by program-specific charges for services or grants and contributions.General revenues of $206,162,623 were adequate to provide for the remaining cost of theseprograms resulting in a $16,222,793 increase in net position.

The General Fund reported an ending fund balance of $78,196,027. This was an increase in theGeneral Fund balance from the prior year in the amount of $12,743,494. The unassigned GeneralFund balance increased $22,365,843 from the prior year.

The District issued $34,640,000 in new general obligation bonds during the fiscal year to refundoutstanding 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-term andshort-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-wide statements.

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

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

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

Continued



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 & changes in 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

Continued



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 nonfinancial factorssuch 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 specificsources 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 governmental funds,which focus on (1) how cash and other financial assets that can readily be converted to cash flowin and out and (2) the balances left at year-end that are available for spending. Consequently,the governmental fund statements provide a detailed short-term view that helps you determinewhether there are more or fewer financial resources that can be spent in the near future tofinance the district’s programs. Because this information does not encompass the additionallong-term focus of the government-wide statements, we provide additional information on thesubsequent page that explains the relationship (or differences) between them.

Continued



8

Proprietary funds – Services for which the District charges customers a fee are generally reportedin proprietary funds. Proprietary funds, like the government-wide statements, provide both long-term and short-term financial information. Our enterprise funds are presented in aggregate andaccount for activities such as concessions, after-school care, and yearbook sales. We useinternal service funds to report activities that provide supplies and services for the District’s otherprograms 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 of fiduciarynet position. We exclude these activities from the District’s government-wide financial statementsbecause 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 $91,281,953 at June 30, 2015.

Of the District’s restricted net position, $19,830,878 represent funds held for debt retirement. These funds are accumulated from property tax collections and are restricted for debt retirement. The unrestricted net position represents resources available to fund the programs of the District for the next year.

2015 2014 2015 2014 2015 2014

Asset

Cash and Investments 163,509,923 186,917,465 2,226,470 1,744,245 165,736,393 188,661,710Other Assets 10,479,984 14,023,886 15,029 (3,150) 10,495,013 14,020,736

Capital Assets, Net 472,568,162 451,078,162 0 0 472,568,162 451,078,162

Total Assets 646,558,069 652,019,513 2,241,499 1,741,095 648,799,568 653,760,608

Deferred Outflows of Resources 7,373,311 4,244,211 0 0 7,373,311 4,244,211

LiabilitiesCurrent Liabilities 34,185,412 32,133,590 65,923 147,033 34,251,335 33,081,142

Long‐term Liabilities 524,342,719 530,154,323 524,342,719 530,154,323

Total Liabilities 558,528,131 562,287,913 65,923 147,033 558,594,054 563,235,465

Deferred Inflows of Resources 6,244,280 800,519 0 0 6,244,280 0

Net Assets

Net Invested in Capital Assets 11,002,572 5,529,019 0 0 11,002,572 5,529,019

Restricted 23,955,009 25,556,120 0 0 23,955,009 25,556,120

Unrestricted 54,201,388 62,090,153 2,122,984 1,594,062 56,324,372 63,684,215

Total Net Position 89,158,969 93,175,292 2,122,984 1,594,062 91,281,953 94,769,354

Governmental Activities Business‐Type Activities Total Government

Table A‐1

Allen Independent School District's Net Position

Continued



9

CHANGES IN NET POSITION The District’s total revenues were $232,680,286. Of this total, 64.5% comes from local property taxes (See Table A-2) and 27.4% comes from state aid and federal grants, while only 8.1% relates to charges for services and other miscellaneous sources and transfers including investment earnings.

The total cost of all programs and services was $215,928,571. The largest expense categories were instruction and instructional related services which totaled $118,452,487 or 54.9% of total expenses.

The District’s base tax collections (current and delinquent) percentage for fiscal year 2015 is 101.59%. The total tax collections (base tax plus penalty and interest) percentage for fiscal year 2015 was 101.92%.

Table A-2

2015 2014 2015 2014 2015 2014

Program revenues

Charges for services 7,627,181 6,706,824 4,580,087 4,726,575 12,207,268 11,433,399

Operating grants and contributions 15,397,078 14,340,352 113,317 104,012 15,510,395 14,444,364

General revenues

Property taxes 150,095,980 139,359,676 150,095,980 139,359,676

State aid‐formula 48,499,523 48,370,344 48,499,523 48,370,344

Grants and Contributions not Restricted (196,865) (196,865) 0

Investment earnings 214,201 269,401 214,201 269,401

Miscellaneous 0 0 0

Other 6,376,879 3,617,758 6,376,879 3,617,758

Transfers 1,172,905 1,200,000 (1,200,000) (1,200,000) (27,095) 0 Total revenues 229,186,882 213,864,355 3,493,404 3,630,587 232,680,286 217,494,942

Expenses

Instruction 113,269,325 109,128,044 113,269,325 109,128,044

Instructional resources and media sources 2,250,780 2,584,507 2,250,780 2,584,507

Curriculum and staff development 2,932,382 2,499,944 2,932,382 2,499,944

Instructional leadership 1,232,223 1,236,703 1,232,223 1,236,703

School leadership 10,441,213 10,051,094 10,441,213 10,051,094 Guidance, counseling and evaluation services 9,211,632 8,875,883 9,211,632 8,875,883

Social work services 31,188 32,348 31,188 32,348

Health services 1,582,451 1,516,631 1,582,451 1,516,631

Student (pupil) transportation 4,291,929 4,179,189 4,291,929 4,179,189

Food services 6,631,866 6,276,027 6,631,866 6,276,027

Curricular & extracurricular activities 6,618,969 7,098,341 6,618,969 7,098,341

General administration 5,274,797 4,682,431 5,274,797 4,682,431

Plant maintenance & operations 18,819,001 16,558,742 18,819,001 16,558,742

Security & monitoring services 2,415,284 2,061,330 2,415,284 2,061,330

Data processing services 4,699,390 3,696,872 4,699,390 3,696,872

Community services 21,682 1,949 21,682 1,949

Debt service 21,463,827 22,733,440 21,463,827 22,733,440

Capital outlay 0 7,834 0 7,834

Contracted instructional 776,337 411,310 776,337 411,310

Payment for shared service arrangement 40,449 40,265 40,449 40,265

Other intergovernmental charges 959,364 900,480 959,364 900,480

Concessions stands 121,439 363,854 121,439 363,854

Kid's club/Community Ed 2,612,117 2,411,005 2,612,117 2,411,005

Other enterprising activities 230,926 279,061 230,926 279,061

Total expenses 212,964,089 204,573,364 2,964,482 3,053,920 215,928,571 207,627,284

Increase (decrease) in net assets 16,222,793 9,290,991 528,922 576,667 16,751,715 9,867,658

Net position ‐ beginning (July 1) 93,175,792 84,031,404 1,594,062 1,017,396 94,769,854 85,048,800

Prior Period Adjustment (20,239,616) (147,103) (20,239,616) (147,103)

Net position ‐ ending (June 30) 89,158,969 93,175,292 2,122,984 1,594,063 91,281,953 94,769,355

Governmental

Activities

Business‐type

Activities

Total

Primary Government

Continued



10

Government-wide Revenues for Fiscal Year 2015 – See Table A-2

Government-wide Expenses for Fiscal Year 2015 – See Table A-2

Continued



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 $212,964,089.

However, the amount that our taxpayers paid for these activities through local property taxes was$150,095,980.

Some of the cost was paid by those who directly benefited from the programs at $7,627,181; or

By grants and contributions at $15,397,078.

Table A-3 Net Cost of Selected District Functions

Governmental Activities

FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS

Revenues from governmental fund types totaled $229,186,882. 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 $78,196,027. This was an increase in the General Fund balance from the prior year in the amount of $12,743,494. The unassigned General Fund balance increased $22,365,843 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 $4,847,715 less than the final General Fund budgeted amounts. The most significant positive variances in the District’s budget occurred in instruction, instructional-related services, and facilities maintenance and operations.

Resources available were $2,378,319 higher than the final budgeted amount. The favorable variance was related mostly to increases in property tax receipts.

Total Cost of Services % Net Cost of Services %

2015 2014 2015 2014

Instruction 113,269,325 109,128,044 3.8% 103,561,000 100,113,861 3.4%

School Leadership 10,441,213 10,051,094 3.9% 9,898,451 9,602,213 3.1%

General Administration 5,274,797 4,682,431 12.7% 5,076,656 4,522,962 12.2%

Plant Maintenance & Operations 18,819,001 16,558,742 13.6% 17,770,937 15,645,011 13.6%

Debt Service 21,463,827 22,733,440 ‐5.6% 21,463,827 22,733,440 ‐5.6%

Continued



12

CAPITAL ASSETS AND DEBT ADMINISTRATION

CAPITAL ASSETS

At the end of 2015, the District had invested $472,568,162 in a broad range of capital assets, including land, construction in progress, furniture and equipment, buildings and improvements and vehicles (See Table A-4).

Table A-4 Capital Assets

LONG TERM DEBT

At the end of 2015, the District had $506,714,248 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.

Table A-5 Long Term Debt

Percentage

2015 2014 Change

Land $29,355,484.00 $29,355,484.00 0.0%

Construction in progress $55,942,988.00 $20,269,252.00 176.0%

Building and improvements $537,051,499.00 $535,727,564.00 0.2%

Furniture & equipment $26,092,994.00 $23,967,178.00 8.9%

Totals at historical cost $648,442,965.00 $609,319,478.00 6.4%

Less total accumulated depreciation ($175,874,803.00) ($158,241,315.00) 11.1%

$472,568,162.00 $451,078,163.00 4.8%


Percentage

2015 2014 Change

Bonds Payable 471,368,036 499,128,036 ‐5.6%

Other Debt Payable 35,346,212 31,026,287 13.9%

Net Pension Liability 17,628,471 N/A N/A

Total Debt Payable 524,342,719 530,154,323 ‐1.1%


Continued



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 2015-16 are budgeted to decrease 0.4% over prior year balances. The decrease reflects the net result of increases to student enrollment and property taxes and a decrease to state funding due to a funding formula adjustment. The certified property values for the 2015 tax year are $10.1 billion which is an $1 billion, or 9.7%, 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 2015, as new business and home construction continues within the District’s 29 square miles.

For 2015-2016, the property tax rate for Maintenance and Operations is lowered by two pennies to $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 also lower by one penny – now at $0.47.

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, 20151 2 3

ControlData

CodesGovernmental

Activities ActivitiesType

Business

Total

Primary Government

ASSETS2,226,470 2,852,824 5,079,294 Cash and Cash Equivalents $ $ $1110

151 160,657,099 160,657,250 Current Investments1120 - 2,187,345 2,187,345 Property Taxes Receivable (Delinquent)1220 - (109,368) (109,368)Allowance for Uncollectible Taxes1230 - 7,890,532 7,890,532 Due from Other Governments1240

10,414 190,409 200,823 Other Receivables, net1290 - 136,380 136,380 Inventories1300

4,615 184,686 189,301 Prepayments1410Capital Assets:

- 29,355,484 29,355,484 Land1510 - 380,512,459 380,512,459 Buildings, Net1520 - 6,757,231 6,757,231 Furniture and Equipment, Net1530 - 55,942,988 55,942,988 Construction in Progress1580

Total Assets1000 646,558,069 2,241,650 648,799,719 DEFERRED OUTFLOWS OF RESOURCES

- 4,703,770 4,703,770 Deferred Charge for Refunding1701 - 2,669,541 2,669,541 Deferred Outflow Related to TRS1705

Total Deferred Outflows of Resources1700 7,373,311 - 7,373,311 LIABILITIES

45,114 10,218,343 10,263,457 Accounts Payable2110 - 7,976,872 7,976,872 Interest Payable2140 - 26,348 26,348 Payroll Deductions & Withholdings2150

18,934 15,826,747 15,845,681 Accrued Wages Payable21601,875 611 2,486 Due to Other Governments2180

- 136,491 136,491 Accrued Expenses2200Noncurrent Liabilities

- 23,180,000 23,180,000 Due Within One Year2501 - 483,534,248 483,534,248 Due in More Than One Year2502 - 17,628,471 17,628,471 Net Pension Liability (District's Share)2540

Total Liabilities2000 558,528,131 65,923 558,594,054 DEFERRED INFLOWS OF RESOURCES

52,743 851,678 904,421 Deferred Resource Inflow #22602 - 5,392,602 5,392,602 Deferred Inflow Related to TRS2605

Total Deferred Inflows of Resources2600 6,244,280 52,743 6,297,023 NET POSITION

- 11,002,572 11,002,572 Net Investment in Capital Assets3200Restricted:

- 4,124,131 4,124,131 Restricted for Federal and State Programs3820 - 19,830,878 19,830,878 Restricted for Debt Service3850

2,122,984 54,201,388 56,324,372 Unrestricted3900

Total Net Position3000 89,158,969 2,122,984 91,281,953 $ $ $

17

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

ALLEN INDEPENDENT SCHOOL DISTRICTSTATEMENT OF ACTIVITIES

FOR THE YEAR ENDED JUNE 30, 2015

Control

Data

CodesExpenses Services

Charges for

Contributions

Grants and

Operating

Program Revenues

431

Primary Government:GOVERNMENTAL ACTIVITIES:

253,737 113,269,325 9,454,588 Instruction $ $ $11

- 2,250,780 96,720 Instructional Resources and Media Services12

- 2,932,382 424,450 Curriculum and Staff Development13

- 1,232,223 92,014 Instructional Leadership21

- 10,441,213 542,762 School Leadership23

- 9,211,632 1,415,015 Guidance, Counseling and Evaluation Services31

- 31,188 1,948 Social Work Services32

- 1,582,451 79,216 Health Services33

- 4,291,929 594,271 Student (Pupil) Transportation34

5,431,485 6,631,866 1,936,078 Food Services35

1,075,824 6,618,969 126,017 Extracurricular Activities36

- 5,274,797 198,141 General Administration41

866,135 18,819,001 181,929 Facilities Maintenance and Operations51

- 2,415,284 64,329 Security and Monitoring Services52

- 4,699,390 75,543 Data Processing Services53

- 21,682 106,602 Community Services61

- 21,061,464 - Debt Service - Interest on Long Term Debt72

- 402,363 - Debt Service - Bond Issuance Cost and Fees73

- - 7,455 Capital Outlay81

- 776,337 - Contracted Instructional Services Between Schools91

- 40,449 - Payments to Juvenile Justice Alternative Ed. Prg.95

- 959,364 - Other Intergovernmental Charges99

212,964,089 7,627,181 15,397,078 [TG] Total Governmental Activities:

BUSINESS-TYPE ACTIVITIES:83,405 121,439 - Enterprise Funds - Locally Defined01

4,307,072 2,612,117 - Kids Club; After School; Community Ed; Learn&Play02

30,629 8,651 - Wrapped School Packs/School Supplies03

51,420 24,257 - Yearbooks HS/Lowry Freshman Center04

17,478 14,337 - Yearbooks MS06

64,555 48,969 - Yearbooks ES07

138,845 134,712 - Eagle Edge HS Store08

2,964,482 4,693,404 - [TB] Total Business-Type Activities:

[TP] TOTAL PRIMARY GOVERNMENT: 215,928,571 12,320,585 15,397,078 $ $ $

DataControlCodes

General Revenues:Taxes:

Property Taxes, Levied for General PurposesMT

Property Taxes, Levied for Debt ServiceDT

State Aid - Formula GrantsSF

Grants and Contributions not RestrictedGC

Investment EarningsIE

Miscellaneous Local and Intermediate RevenueMI

Transfers In (Out)FR

Total General Revenues & TransfersTR

Net Position - Beginning

Change in Net Position

Net Position--Ending

Prior Period Adjustment

CN

NB

NE

PA

18The notes to the financial statements are an integral part of this statement.

Continued

EXHIBIT B-1Page 1 of 2

EXHIBIT B-1Net (Expense) Revenue and

Activities ActivitiesBusiness Type

TotalGovernmental

Changes in Net Position

6 7 8Primary Government

- (103,561,000) (103,561,000)$ $ $ - (2,154,060) (2,154,060) - (2,507,932) (2,507,932) - (1,140,209) (1,140,209) - (9,898,451) (9,898,451) - (7,796,617) (7,796,617) - (29,240) (29,240) - (1,503,235) (1,503,235) - (3,697,658) (3,697,658) - 735,697 735,697 - (5,417,128) (5,417,128) - (5,076,656) (5,076,656) - (17,770,937) (17,770,937) - (2,350,955) (2,350,955) - (4,623,847) (4,623,847) - 84,920 84,920 - (21,061,464) (21,061,464) - (402,363) (402,363) - 7,455 7,455 - (776,337) (776,337) - (40,449) (40,449) - (959,364) (959,364)

(189,939,830) - (189,939,830)

(38,034) - (38,034)1,694,955 - 1,694,955

21,978 - 21,978 27,163 - 27,163

3,141 - 3,141 15,586 - 15,586

4,133 - 4,133

- 1,728,922 1,728,922

(189,939,830) 1,728,922 (188,210,908)

- 106,145,553 106,145,553 - 43,950,427 43,950,427 - 48,499,523 48,499,523 - (196,865) (196,865) - 214,201 214,201 - 6,376,879 6,376,879

(1,200,000)1,172,905 (27,095)

206,162,623 (1,200,000) 204,962,623

16,222,793 93,175,792

89,158,969 $

528,922 1,594,062

2,122,984 $

16,751,715 94,769,854

91,281,953 $

(20,239,616) - (20,239,616)

19

Page 2 of 2


20

GOVERNMENTAL FUNDS FINANCIAL STATEMENTS

21

ALLEN INDEPENDENT SCHOOL DISTRICTBALANCE SHEET

GOVERNMENTAL FUNDSJUNE 30, 2015

ControlData

CodesGeneral

Fund FundDebt Service

50

ProjectsCapital

6010

ASSETS94,178 717,806 809,595 Cash and Cash Equivalents $ $ $1110

18,790,063 86,537,228 46,203,855 Investments - Current1120644,075 1,543,270 - Property Taxes - Delinquent1220(32,204)(77,164) - Allowance for Uncollectible Taxes (Credit)1230

7,614 7,632,647 - Receivables from Other Governments1240 - 182,303 - Other Receivables1290 - 124,715 - Inventories1300 - 176,356 - Prepayments1410

Total Assets1000 96,837,161 19,503,726 47,013,450 $ $ $

LIABILITIES - 1,935,305 7,274,699 Accounts Payable $ $ $2110 - 26,348 - Payroll Deductions and Withholdings Payable2150 - 15,221,344 - Accrued Wages Payable2160 - 698,978 - Due to Other Funds2170 - - - Due to Other Governments2180 - 63,572 - Accrued Expenditures2200

Total Liabilities2000 17,945,547 - 7,274,699 DEFERRED INFLOWS OF RESOURCES

284,719 695,587 - Unavailable Revenue - Property Taxes2601 - - - Unavailable Revenue - Other2602

Total Deferred Inflows of Resources2600 695,587 284,719 -

FUND BALANCESNonspendable Fund Balance:

- 124,715 - Inventories3410 - 176,356 - Prepaid Items3430

Restricted Fund Balance: - - - Federal or State Funds Grant Restriction3450 - 1,016 39,738,751 Capital Acquisition and Contractural 3470

19,219,007 - - Retirement of Long-Term Debt3480Committed Fund Balance:

- - - Other Committed Fund Balance3545 - 77,893,940 - Unassigned Fund Balance3600

Total Fund Balances3000 78,196,027 19,219,007 39,738,751

$ 96,837,161 $ 19,503,726 $ 47,013,450 Total Liabilities, Deferred Inflows & Fund Balances4000


Continued

EXHIBIT C-1Page 1 of 2

EXHIBIT C-1

OtherFunds Funds

GovernmentalTotal

1,198,083 2,819,662 $ $7,630,118 159,161,264

- 2,187,345 - (109,368)

250,271 7,890,532 8,106 190,409

11,665 136,380 - 176,356

9,098,243 172,452,580 $ $

321,211 9,531,215 $ $ - 26,348

605,403 15,826,747 - 698,978 611 611

72,919 136,491

1,000,144 26,220,390

- 980,306 851,678 851,678

851,678 1,831,984

11,665 136,380 - 176,356

4,124,131 4,124,131 - 39,739,767 - 19,219,007

3,110,625 3,110,625 - 77,893,940

7,246,421 144,400,206

$ $ 172,452,580 9,098,243

23

Page 2 of 2


24

EXHIBIT C-2ALLEN INDEPENDENT SCHOOL DISTRICT

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

JUNE 30, 2015

144,400,206 $Total Fund Balances - Governmental Funds

1,549,177 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.

(48,049,873)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 $609,319,478 and the accumulated depreciation was $158,241,315. In addition, long-term liabilities, including bonds payable of $499,128,036, 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.

58,348,487 3 Current year capital outlays of $39,123,487 and long-term debt principal payments of $19,225,000 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.

(7,976,872)4 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.

(5,776,213)5 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.

(17,633,488)6 The current year depreciation expense increases accumulated depreciation. The net effect of the current year's depreciation is to decrease net position.

(15,350,923)7 Various other reclassifications and eliminations are necessary to convert from the modified accrual basis of accounting to accrual basis of accounting. These include recognizing unavailable revenue from property taxes as revenue, 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.

(20,351,532)8 Included in the items relatd to debt is the recognition of the District's proportionate share of the net pension liability required by GASB 68 in the amount of $17,628,471, a deferred resource inflow related to TRS in the amount of $5,392,602, and a deferred resource outflow related to TRS in the amount of $2,669,541. The net effect is a decrease in net position.

89,158,969 $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, 2015

Control

Data

Codes Fund

General

10

Fund

Debt Service

50

Projects

Capital

60

REVENUES:

110,940,473 44,451,697 65,792 Total Local and Intermediate Sources $ $ $5700

55,463,730 - 7,455 State Program Revenues5800

27,758 - - Federal Program Revenues5900

Total Revenues5020 166,431,961 44,451,697 73,247

EXPENDITURES:

Current:

95,554,591 - - Instruction00112,000,194 - - Instructional Resources and Media Services0012

2,474,656 - - Curriculum and Instructional Staff Development0013

1,192,393 - - Instructional Leadership0021

9,018,283 - - School Leadership0023

7,469,828 - - Guidance, Counseling and Evaluation Services0031

31,173 - - Social Work Services0032

1,515,808 - - Health Services0033

3,200,480 - - Student (Pupil) Transportation0034

20,986 - - Food Services0035

3,592,708 - - Extracurricular Activities0036

4,841,076 - - General Administration0041

18,466,983 - - Facilities Maintenance and Operations0051

2,191,400 - - Security and Monitoring Services0052

1,848,842 - - Data Processing Services0053

19,002 - - Community Services0061

Debt Service:

- 19,225,000 - Principal on Long Term Debt0071

- 21,718,823 - Interest on Long Term Debt0072

- 402,363 - Bond Issuance Cost and Fees0073

Capital Outlay:

228 - 40,116,122 Facilities Acquisition and Construction0081

Intergovernmental:

776,337 - - Contracted Instructional Services Between Schools0091

40,449 - - Payments to Juvenile Justice Alternative Ed. Prg.0095

959,364 - - Other Intergovernmental Charges0099

Total Expenditures6030 155,214,781 41,346,186 40,116,122

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

11,217,180 3,105,511 (40,042,875)

OTHER FINANCING SOURCES (USES):

- 34,640,000 - Capital Related Debt Issued (Regular Bonds)7911

1,570,053 - - Transfers In7915

- 4,949,001 - Premium or Discount on Issuance of Bonds7916

(16,644) - - Transfers Out (Use)8911

(27,095) (44,180,278) - Other Uses8949

Total Other Financing Sources (Uses) 7080 1,526,314 (4,591,277) -

1200 Net Change in Fund Balances 12,743,494 (1,485,766) (40,042,875)

0100 Fund Balance - July 1 (Beginning) 65,452,533 20,704,773 79,781,626

3000 Fund Balance - June 30 (Ending) $ 78,196,027 $ 19,219,007 $ 39,738,751


EXHIBIT C-3Page 1 of 2

Continued

EXHIBIT C-3

Other

Funds Funds

Governmental

Total

165,119,063 9,661,101 $ $

57,901,324 2,430,139

5,798,412 5,770,654

17,861,894 228,818,799

102,805,720 7,251,129

2,058,551 58,357

2,804,773 330,117

1,231,079 38,686

9,122,472 104,189

8,489,953 1,020,125

31,173 -

1,515,808 -

3,618,464 417,984

7,281,083 7,260,097

4,483,675 890,967

4,826,176 (14,900)

18,466,983 -

2,191,400 -

1,892,891 44,049

20,665 1,663

19,225,000 -

21,718,823 -

402,363 -

40,126,517 10,167

776,337 -

40,449 -

959,364 -

17,412,630 254,089,719

449,264 (25,270,920)

34,640,000 -

1,586,697 16,644

4,949,001 -

(386,697)(370,053)

(44,207,373) -

(353,409) (3,418,372)

95,855 (28,689,292)

7,150,566 173,089,498

$ 7,246,421 $ 144,400,206

27

Page 2 of 2


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


(28,689,292)$Total Net Change in Fund Balances - Governmental Funds

(8,018)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.

58,348,487 Current year capital outlays of $39,123,487 and long-term debt principal payments of $19,225000 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.

447,208 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.

(916,834)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.

(17,633,488)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.

4,786,646 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.

(111,916)The implementation of GASB 68 required that certain expenditures be de-expended and recorded as deferred resource inflows. These contributions made after the measurement date of 08/31/14 caused the change in the ending net position to increase in the amount of $1,251,041. Contributions made before the measurement date but during the 2015 fiscal year were also de-expended and recorded as a reduction in the net pension liability for the District. This also caused an increase in the change in net position totaling $266,485. The District's proportionate share of the TRS pension expense on the plan as a whole had to be recorded as an expense. The net pension expense decreased the change in net position by $1,629,442. The net effect is a decrease in net position.

16,222,793 $ Change in Net Position of Governmental Activities



30

PROPRIETARY FUNDS FINANCIAL STATEMENTS

31


32

EXHIBIT D-1ALLEN INDEPENDENT SCHOOL DISTRICT

STATEMENT OF NET POSITIONPROPRIETARY FUNDS

JUNE 30, 2015

TotalEnterprise

Funds Service FundsInternal

Total

Governmental Activities -

Business-Type Activities -

ASSETSCurrent Assets:

33,162 2,226,470 Cash and Cash Equivalents $ $1,495,835 151 Investments - Current

698,978 - Due from Other Funds - 10,414 Other Receivables

8,330 4,615 Prepayments

Total Assets 2,241,650 2,236,305

LIABILITIESCurrent Liabilities:

687,128 45,114 Accounts Payable - 18,934 Accrued Wages Payable - 1,875 Due to Other Governments

Total Liabilities 65,923 687,128

DEFERRED INFLOWS OF RESOURCES - 52,743 Unavailable Revenue - Other

Total Deferred Inflows of Resources 52,743 -

NET POSITION1,549,177 2,122,984 Unrestricted Net Position

Total Net Position 2,122,984 1,549,177 $ $



34

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:698,978 4,580,087 Local and Intermediate Sources $ $

- 113,317 State Program Revenues

Total Operating Revenues 4,693,404 698,978

OPERATING EXPENSES: - 2,212,979 Payroll Costs - 64,893 Professional and Contracted Services - 287,857 Supplies and Materials

709,053 366,688 Other Operating Costs - 32,065 Capital Outlay

Total Operating Expenses 2,964,482 709,053

Operating Income (Loss) 1,728,922 (10,075)

NONOPERATING REVENUES (EXPENSES):2,057 - Earnings from Temporary Deposits & Investments

Total Nonoperating Revenues (Expenses) - 2,057

Income (Loss) Before Transfers 1,728,922 (8,018)

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

Total Net Position July 1 (Beginning)

Total Net Position June 30 (Ending)

528,922 1,594,062

$ 2,122,984

(8,018)1,557,195

$ 1,549,177



36

EXHIBIT D-3ALLEN INDEPENDENT SCHOOL DISTRICTSTATEMENT OF CASH FLOWS

FOR THE YEAR ENDED JUNE 30, 2015PROPRIETARY FUNDS

Total TotalEnterprise Internal

Funds Service Funds


Business-Type Activities

Cash Flows from Operating Activities:668,456 4,644,505 Cash Received from User Charges $ $

- (2,212,201)Cash Payments to Employees for Services316,395 (351,175)Cash Payments for Suppliers

(709,053)(398,753)Cash Payments for Other Operating Expenses

1,682,376 Net Cash Provided by Operating

275,798 ActivitiesCash Flows from Non-Capital Financing Activities:

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

2,057 - Interest and Dividends on InvestmentsNet Increase in Cash and Cash Equivalents 482,376 277,855 Cash and Cash Equivalents at Beginning of Year 1,744,245 1,251,142

Cash and Cash Equivalents at End of Year 2,226,621 1,528,997

Cash on Balance Sheet:

(151)

2,226,470 $

(1,495,835)

33,162 $

Temporary Investment Not in Cash Equivalents

Operating Income (Loss): $ $

Reconciliation of Operating Income (Loss) to Net CashProvided by Operating Activities:

1,728,922 (10,075)

Assets and Liabilities:Effect of Increases and Decreases in Current

- (8,564)Decrease (increase) in Receivables(8,330)(4,615)Decrease (increase) in Prepaid Expenses

324,725 6,190 Increase (decrease) in Accounts Payable - 778 Increase (decrease) in Accrued Wages Payable - 1,876 Increase (decrease) in Due to State

(30,522)(5,000)Increase (decrease) in Due to Other Funds - (37,211)Increase (decrease) in Unearned Revenue

Net Cash Provided by Operating275,798 Activities 1,682,376 $ $



38

FIDUCIARY FUNDS FINANCIAL STATEMENTS

39


40

EXHIBIT E-1ALLEN INDEPENDENT SCHOOL DISTRICT

STATEMENT OF FIDUCIARY NET POSITIONFIDUCIARY FUNDS

JUNE 30, 2015

PrivatePurpose

Trust Funds FundsAgency

ASSETS(160,582)1,754 Cash and Cash Equivalents $ $562,246 18,403 Investments - Current

743 2,242 Other Receivables

Total Assets 22,399 402,407 $

LIABILITIES2,724 - Accounts Payable $

- 1,371 Accrued Wages Payable13 - Due to Other Governments

352,176 - Due to Student Groups2,656 - Accrued Expenses

44,838 - Payable from Restricted Assets

Total Liabilities 1,371 402,407 $

NET POSITION21,028 Unrestricted Net Position

Total Net Position 21,028 $

41

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


42

EXHIBIT E-2ALLEN INDEPENDENT SCHOOL DISTRICT

STATEMENT OF CHANGES IN FIDUCIARY FUND NET POSITIONFIDUCIARY FUNDS


PrivatePurpose

Trust Funds

ADDITIONS:75,425 Local and Intermediate Sources $

2,552 State Program Revenues

Total Additions 77,977

DEDUCTIONS:77,971 Payroll Costs

1,000 Other Operating Costs

Total Deductions 78,971

Change in Net Position

Total Net Position July 1 (Beginning)

Total Net Position June 30 (Ending)

(994)

22,022

$ 21,028



44

45

NOTES TO THE FINANCIAL STATEMENTS


46

ALLEN INDEPENDENT SCHOOL DISTRICT Notes to Financial Statements

Year Ended June 30, 2015

47

(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 seven member Board of Trustees (the “Board”) elected by registered voters of the District. The District prepares its basic financial statements in conformity with accounting principles generally accepted in the United States of America promulgated by the Governmental Accounting Standards Board and other authoritative sources. It complies with the requirements of the appropriate version of Texas Education Agency’s Financial Accountability System Resource Guide (the “Resource Guide”) and the requirements of contracts and grants of agencies from which it receives funds.

A. Reporting Entity

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

B. Government-Wide & Fund Financial Statements

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

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

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

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

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

Continued



48


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.

Continued



49


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:

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.

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.

Continued



50


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

Continued



51



5. Long-Term Obligations (continued)

In the fund financial statements, governmental fund types recognize bond premiumsand discounts, as well as bond issuance costs, during the current period. The faceamount of debt issued is reported as other financing sources. Premiums received ondebt issuances are reported as other financing sources while discounts on debtissuances are reported as other financing uses. Issuance costs, whether or notwithheld from the actual debt proceeds received, are reported as debt serviceexpenditures.

6. Fund Equity

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

Non-Spendable: This classification includes amounts that cannot be spentbecause they are either (a) not in spendable form or (b) are legally orcontractually required to be maintained intact.

Restricted: This classification includes amounts for which constraints havebeen placed on the use of the resources either (a) externally imposed bycreditors (such as though a debt covenant), grantors, contributors, or laws orregulations of other governments, or (b) imposed by law throughconstitutional provisions or enabling legislation.

Committed: This classification includes amounts that can be used only forspecific purposes pursuant to constraints imposed by formal action of theBoard of Trustees. These amounts cannot be used for any other purposeunless the Board of Trustees removes or changes the specified use by takingthe same type of action (ordinance or resolution) that was employed when thefunds were initially committed. This classification also includes contractualobligations to the extent that existing resources have been specificallycommitted for use in satisfying those contractual requirements. The Districthad no committed resources as of June 30, 2015

Assigned: This classification includes amounts that are constrained by theDistrict’s intent to be used for a specific purpose but are neither restrictednor committed. This intent can be expressed by an official to which the Boardof Trustees delegates this authority.

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

Continued



52



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, 2015, fund balances are composed of the following:

Debt Capital Other TotalGeneral Service Projects Governmental Governmental

Fund Fund Fund Funds Funds

Nonspendable:Inventories 124,715 - 11,665 136,380 Prepaid Items 176,356$ - 176,356

Restricted:Debt Service - 19,219,007 - - 19,219,007 Federal and State Grants - - - 4,124,131 4,124,131 Capital Projects 1,016 - 39,738,751 39,739,767

Committed:Other Committed - - - 3,110,625 3,110,625

Assigned:Other Assigned - - - - -

Unassigned 77,893,940 - - - 77,893,940

Total Fund Balances 78,196,027$ 19,219,007$ 39,738,751$ 7,246,421$ 144,400,206$

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.

Continued



53

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

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

Exhibit C-2 provides a reconciliation between fund balance - total governmental funds and Net Position - governmental activities as reported in the government-wide statement of Net Position. One element of that reconciliation explains that “various other reclassifications and eliminations are necessary to convert from the modified accrual basis of accounting to the full accrual basis of accounting.” The details of this $(15,350,923) adjustment are as follows:

Long Term Debt:Issuance of Bonds 8,535,000$ Premium and Discount Costs on Bonds (28,864,878) Deferred Loss on Refunding Bonds 4,703,770 Compensated Absences (705,121)

(16,331,229) Unavailable Revenue

To remove the unavailable revenue from unavailable revenue 848,117 To remove prior year collectible delinquent tax levy receivable 1,229,860 To reverse out the 60-day rule (1,097,671)

980,306

Net adjustment to decrease fund balance - total governmentalfunds to arrive at net position - governmental activities (15,350,923)$

Continued



54

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

B. Explanation of Certain Differences Between the Governmental Fund Statement of 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 – total governmental funds and changes in Net Position of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains that “various other reclassifications are necessary to convert from the modified accrual basis of accounting to the full accrual basis of accounting.” The details of this$4,786,646 adjustment are as follows:

Long-Term debt:Issuance of Bonds Payable 8,535,000$ Current year amortization 1,126,985 Current year premium and discount cost on bonds (4,949,001) Compensated Absences (126,794) Current year deferred loss on refunding bonds 1,005,278

5,591,468 Taxes:

To move the prior year uncollected tax levy to revenue (804,822) (804,822)

Net adjustment to increase net changes in fund balances -total governmental funds to arrive at changes tonet position of governmental activities 4,786,646$

(3) STEWARDSHIP, COMPLIANCE & ACCOUNTABILITY

A. Budgetary Data

The Board of Trustees adopts an “appropriated budget” for the General Fund, Debt Service Fund and the Food Service Fund which is included in the Special Revenue Funds. 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 Budget report appears 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 the basic 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.

Continued



55

(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 bythe Board. Once a budget is approved, it can only be amended at the function andfund level by approval of a majority of the members of the Board. Amendmentsare presented to the Board at its regular meetings. Each amendment must haveBoard 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 yearend.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, 2015 Fund Balance

Appropriated budget funds - Food Service Special Revenue Fund 4,081,598$ Non-appropriated budget funds 3,164,823

All Special Revenue Funds 7,246,421$

B. Encumbrance Accounting

The District employs encumbrance accounting, whereby encumbrances for goods or purchased services are documented by purchase orders and contracts. An encumbrance represents a commitment or Board appropriation related to unperformed contracts for goods and services. The issuance of a purchase order or the signing of a contract creates an encumbrance but does not represent an expenditure for the period, only commitment to expend resources. Appropriations lapse at June 30 and encumbrances outstanding at that time are either canceled or appropriately provided for in the subsequent year's budget. 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 bank places approved pledged securities for safekeeping and trust with the District’s agent bank in an amount sufficient to protect District funds on a day-to-day basis during the period of the contract. The pledge of approved securities is waived only to the extent of the depository bank’s dollar amount of Federal Deposit Insurance Corporation (“FDIC”) insurance.

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(4) DETAILED NOTES ON ALL FUNDS (continued)

A. Deposits & Investments (continued)

The District's combined deposits at June 30, 2015, and during the year ended June 30, 2015 were fully insured by federal depository insurance or collateralized with securities pledged to the District and held by the District's agent.

In addition the following is disclosed regarding coverage of combined balances on the date 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 $18,323,758.c. The highest combined balances of cash, savings and time of deposit accounts

amounted to $9,370,474 and occurred during the month of January.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 stated maturity of portfolio investments, (7) maximum average dollar-weighted maturity allowed based on the stated maturity date for the portfolio, (8) investment staff quality and capabilities, and (9) bid solicitation preferences for certificates of deposit. Statutes authorize the District to invest in (1) obligations of the U.S. Treasury, certain U.S. agencies, and the State of Texas; (2) certificates of deposit; (3) certain municipal securities; (4) money market savings account; (5) repurchase agreements, (6) bankers acceptances, (7) Mutual Fund; (8) Investment pools; (9) guaranteed investment contracts; and (10) common trust funds. The Act also requires the District to have independent auditors perform test procedures related to investment practices as provided by the Act. The District is in substantial compliance with the requirements of the Act and with local policies.

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, 2015, were as follows:

Fair Description Value

Lone Star Investment Pool 131,300,306$ TexSTAR 29,006,614 Texas Class 911,931 TexPool 19,047 Total 161,237,898$

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B. Property Taxes

Property taxes are considered available when collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period. The District levies its taxes on October 1 in conformity with Subtitle E, Texas Property Tax Code. Taxes are due upon receipt of the tax bill and are past due and subject to interest if not paid by February 1 of the period following the October 1 levy date. The assessed value of the property tax roll on August 1, 2014, upon which the levy for the 2014-15 fiscal year was based, was $9,080,358,311. Taxes are delinquent if not paid by January 31. Delinquent taxes are subject to both penalty and interest charges plus 15% delinquent collection fees for attorney costs after June 30.

The tax rates assessed for the year ended June 30, 2015, to finance General Fund operations and the payment of principal and interest on general obligation long-term debt were $1.16 and $0.48 per $100 valuation, respectively, for the total of $1.64 per $100 valuation.

Delinquent taxes are prorated between maintenance and debt service based on rates adopted for the year of the levy. Allowances for uncollectible taxes within the General and Debt Service Funds are based on historical experience in collecting taxes. Uncollectible personal property taxes are periodically reviewed and written off, but the District is prohibited from writing off real property taxes without specific statutory authority from the Texas Legislature. As of June 30, 2015, property taxes receivable, net of estimated uncollectible taxes, totaled $1,466,106 for the General Fund and $611,871 for the Debt Service Fund.

C. Due from Other Governments

The District participates in a variety of federal and state programs from which it receives grants to partially or fully finance certain activities. In addition, the District receives entitlements from the State through the School Foundation and Per Capita Programs. Amounts due from federal and state governments as of June 30, 2015, are summarized below. All federal grants shown below are passed through the TEA and are reported on the combined financial statements as Due from Other Governments.

Local State FederalFund Revenues Entitlements Grants Total

General -$ 7,599,077$ - 7,599,077$ Special Revenue 237,645 - 53,810 291,455

Total 237,645$ 7,599,077$ 53,810 7,890,532$

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D. Interfund Balances & Activities

Interfund Receivables & Payables

Receivable Fund Payable Fund Amount

Internal Service Fund Internal Service Fund 698,978

Transfers From Transfers To Amount

General Fund Food Service Fund 16,644$ Food Service Fund General Fund 370,053 Internal Service Fund General Fund 1,200,000

Total 1,586,697$

E. Capital Assets

Capital asset activity for the period ended June 30, 2015, was as follows:

Beginning EndingBalance Additions Retirements Balance

Governmental Activities:

Capital Assets Not Being Depreciated:Land 29,355,484$ - - 29,355,484$ Construction in Progress 20,269,252 36,997,671 (1,323,935) 55,942,988

Total Not Being Depreciated 49,624,736 36,997,671 (1,323,935) 85,298,472

Capital Assets Being Depreciated:Buildings and Improvements 535,727,564 1,323,935 - 537,051,499 Furniture, Equipment, and Vehicles 23,967,178 2,125,816 - 26,092,994

Total Being Depreciated 559,694,742 3,449,751 - 563,144,493

Less Accumulated Depreciation for:Buildings and Improvements (140,648,562) (15,890,478) - (156,539,040) Furniture, Equipment, and Vehicles (17,592,753) (1,743,010) (19,335,763)

Total Accumulated Depreciation (158,241,315) (17,633,488) - (175,874,803)

Total Capital Assets Being Depreciated, net 401,453,427 (14,183,737) - 387,269,690 Governmental Activities Capital Assets, net 451,078,163$ 22,813,934 (1,323,935) 472,568,162$

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E. Capital Assets (continued)

Depreciation expense was charged to governmental functions as follows:

Instruction 9,814,898$ Instructional Resources and Media 186,500 Curriculum & Staff Development 125,305 School Leadership 1,249,358 Guidance, Counseling & Evaluation Services 713,161 Health Services 65,320 Student Transportation 669,649 Food Services 537,437 CoCurricular/Extracurricular Activities 2,375,495 General Administration 318,012 Plant Maintenance and Operations 729,671 Security and Monitoring 223,176 Data Processing Services 625,507

Total Depreciation Expense 17,633,488$

F. Construction Commitments

At June 30, 2015, the District had several projects under construction. A summary of these projects is as follows:

Construction in Progress Detail Balance Balanceat 6/30/14 Additions Retirements at 6/30/15

AHS Cafeteria Renovation 102,435 1,190,155 (1,292,590) - AHS Chiller - 643,338 - 643,338 AHS Cooling Tower - 521,406 - 521,406 Curtis Re-roof - 891,338 - 891,338 Ford MS Renovations 3,261,845 9,593,676 - 12,855,521 Green Re-roof - 867,913 - 867,913 Rountree Renovations 3,742,950 5,739,774 - 9,482,724 Service Center 13,162,021 15,271,552 - 28,176,273 Story Renovation - 2,019,012 - 2,019,012 Safety & Security - 31,345 (31,345) - Shade Structures - 228,163 - 228,163 Traffic Light Svc Center - 257,300 - 257,300

20,269,251 37,254,972 (1,323,935) 55,942,988

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G. Bonds Payable

Bonds payable activity for the year ended June 30, 2015, was as follows:

Interest Beginning Ending Due WithinGovernmental Activities Rate Balance Additions Reductions Balance One Year2005 Building 4.28% 17,865,000$ - (17,865,000) - - 2005 Refunding 5.76% 16,970,000 - (16,970,000) - - 2006 Building & Refunding 4.58% 14,990,000 - (14,990,000) - - 2007 Building & Refunding 4.23% 44,635,000 - (1,160,000) 43,475,000 3,950,000 2008 Building 3.89% 17,215,000 - (900,000) 16,315,000 945,000 2009 Building 4.87% 54,620,000 - (1,615,000) 53,005,000 1,700,000 2009A Building 4.78% 69,135,000 - (1,080,000) 68,055,000 1,120,000 2009B Building & Refunding 4.51% 26,777,100 - - 26,777,100 - 2010 Building & Refunding 3.91% 55,890,000 - - 55,890,000 950,000 2011 Building & Refunding 4.95% 63,290,000 - (645,000) 62,645,000 310,000 2012 Building & Refunding 3.61% 65,860,936 - (2,285,000) 63,575,936 2,820,000 2013 Building & Refunding 3.33% 51,880,000 - (3,940,000) 47,940,000 3,015,000 2014 Refunding 4.50% - 21,710,000 (625,000) 21,085,000 3,210,000 2014A Refunding 4.66% - 12,930,000 (325,000) 12,605,000 5,160,000

Subtotal 499,128,036 34,640,000 (62,400,000) 471,368,036 23,180,000 Bond Premium 25,588,581 4,949,001 (1,672,704) 28,864,878 Compensated Absences 578,327 126,794 - 705,121 Accreted Interest 4,859,379 916,834 - 5,776,213

Total Bonded Indebtedness 530,154,323$ 40,632,629 (64,072,704) 506,714,248 23,180,000$

Interest expense for the year on all bonded indebtedness was $21,718,823.

Debt Service requirements on bonded debt at June 30, 2015 are as follows:

Year Ending TotalJune 30 Principal Interest Requirements

2016 23,180,000 21,271,656 44,451,656 2017 18,101,188 20,324,706 38,425,894 2018 18,274,517 20,086,614 38,361,131 2019 18,959,140 19,412,841 38,371,981 2020 19,071,759 19,289,085 38,360,844

2021-2025 108,600,496 75,914,775 184,515,271 2026-2030 90,577,057 63,023,274 153,600,331 2031-2035 84,468,879 36,065,427 120,534,306 2036-2040 79,300,000 13,624,006 92,924,006 2041-2042 10,835,000 725,750 11,560,750

471,368,036$ 289,738,134 761,106,170$

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H. Defeasance of Debt

The District issued Refunding Bonds Series 2014 with a par value of $21,710,000 and an original issue premium of $3,463,238. After paying fees and issuance costs, the remaining $24,934,183 was used for the purpose of refunding a portion of both Series 2005 and 2006 debt’s currently obligated by the district. As a result of the refunding, the debt restructuring produced a gross debt service savings of $7,718,940 and a net present value debt service savings of $6,833,908.

The District issued Refunding Bonds Series 2014A with a par value of $12,930,000 and an original issue premium of $1,485,763. After paying fees and issuance costs, the remaining $14,246,095 was used for the purpose of refunding a portion of both Series 2005 and 2006 debt’s currently obligated by the district. As a result of the refunding, the debt restructuring produced a gross debt service savings of $4,433,741 and a net present value debt service savings of $3,587,042.

In prior years, the District defeased previously issued and outstanding bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the District’s financial statements. On June 30, 2015, $17,040,000 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 and destruction of assets; errors and omissions; injuries to employees; and natural disasters. During fiscal 2015, the District purchased commercial insurance to cover general liabilities. There were no significant reductions in coverage in the past fiscal year, and there were no settlements exceeding insurance coverage for each of the past three fiscal years.

B. Litigation & Contingencies

The District is a party to various legal actions none of which is believed by administration to have a material effect on the financial condition of the District. Accordingly, no provision for losses has been recorded in the accompanying combined financial statements for such contingencies. The District participates in numerous state and federal grant programs which are governed by various rules and regulations of the grantor agencies. Costs charged to the respective grant programs are subject to audit and adjustment by the grantor agencies; therefore, to the extent that the District has not complied with the rules and regulations governing the grants, if any, refunds of any money received may be required and the collectability of any related receivable at June 30, 2015, may be impaired. In the opinion of the District, there are no significant contingent liabilities relating to compliance with the rules and regulations governing the respective grants; therefore, no provision has been recorded in the accompanying combined 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 the following:

Debt Capital OtherGeneral Service Projects Governmental

Fund Fund Fund Funds TotalProperty Taxes 105,968,342$ 43,850,011 - - 149,818,353$ Food Sales - - - 5,431,485 5,431,485 Investment Income 120,279 - 65,792 3,225 189,296 Penalties, Interest and Other - Tax Related Income 1,378,128 576,780 - - 1,954,908 Co-curricular Student Activities 1,075,824 - - 24,779 1,100,603 Other 2,397,900 24,906 - 4,201,612 6,624,418

Total 110,940,473$ 44,451,697 65,792 9,661,101 165,119,063$

D. Deferred Inflow of Resources

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

Special DebtGeneral Revenue ServiceFund Fund Fund Total

Net Tax Revenue 695,587$ - 284,719 980,306 Grants - 120,605 - 120,605 Materials - 417,050 - 417,050 Lunches - 314,023 - 314,023

Total 695,587$ 851,678 284,719 1,831,984

E. Health Care Coverage

For the year ending June 30, 2015, all employees of the District are covered by the TRS active care insurance plan (the plan). The District paid premiums of $310 per month per employee to the plan and employees, at their option, authorized payroll withholdings to pay premiums for dependents. All premiums were paid to licensed insurer. The plan was authorized by Article 3.51-2., Texas Insurance Code, and was documented by contractual agreement.

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F. Defined Benefit Pension Plan

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

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

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

The information provided in the Notes to the Financial Statements in the 2014 Comprehensive Annual Financial Report for TRS provides the following information regarding the Pension Plan fiduciary net position as of August 31, 2014:

Net Pension Liability Total

Total Pension Liability 159,496,075,886$ Less: Plan Fiduciary Net Position (132,779,243,085) Net Pension Liability 26,716,832,801$

Net Position as percentage of Total Pension Liability 83.25%

Benefits Provided – TRS provides service and disability retirement, as well as death and survivor benefits, to eligible employees (and their beneficiaries) of public and higher education in Texas. The pension formula is calculated using 2.3 percent (multiplier) times the average of the five highest annual creditable salaries times years of credited service to arrive at the annual standard annuity except for members who are grandfathered, the three highest annual salaries are used. The normal service retirement is at age 65 with 5 years of credited service or when the sum of the member’s age and years of credited service equals 80 or more years.

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F. Defined Benefit Pension Plan (continued)

Early retirement is at age 55 with 5 years of service credit or earlier than 55 with 30 years of service credit. There are additional provisions for early retirement if the sum of the member’s age and years of service credit total at least 80, but the member is less than age 60 or 62 depending on date of employment, or if the member was grandfathered in under a previous rule. There are no automatic post-employment benefit changes; including automatic COLAs. Ad hoc postemployment benefit changes, including ad hoc COLAs can be granted by the Texas Legislature as noted in the Plan description above.

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

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

2014 2015Member 6.4% 6.7%Non-Employer Contributing Entity (State) 6.8% 6.8%Employers 6.8% 6.8%

2014 Employer Contributions 1,673,184$ 2014 Member Contributions 6,746,219$ 2014 NECE On-behalf Contributions 5,659,469$

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).

As the non-employer contributing entity for public education, the State of Texas contributes to the retirement system an amount equal to the current employer contribution rate times the aggregate annual compensation of all participating members of the pension trust fund during that fiscal year reduced by the amounts described below

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which are paid by the employers. Employers including public schools are required to pay the employer contribution rate in the following instances:

On the portion of the member’s salary that exceeds the statutory minimum 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 actuarialmethods and assumptions are primarily based on a study of actual experience forthe four year period ending August 31, 2010 and adopted on April 8, 2011. Withthe exception of the post-retirement local funds.

In addition to the employer contributions listed above, when employing a retiree of the Teacher Retirement System the employer shall pay both the member contribution and the state contribution as an employment after retirement surcharge.

Actuarial Assumptions - The total pension liability in the August 31, 2014 actuarial valuation was determined using the following actuarial assumptions:

Valuation Date 31-Aug-14Actuarial Cost Method Individual Entry Age NormalAmortization Method Level Percentage of Payroll, OpenRemaining Amortization Period 30 YearsAsset Valuation Method 5 year Market ValueDiscount Rate 8.00%Long-term expected Investment Rate of Return* 8.00%Salary Increases* 4.25% to 7.25%Weighted-Average at Valuation Date 5.55%Payroll Growth Rate 3.50%

* Includes Inflation of 3%

The mortality rates for healthy lives and a minor change to the expected retirement age for inactive vested members stemming from the actuarial audit performed in the summer of 2014, the assumptions and methods are the same as used in the prior valuation. When the mortality assumptions were adopted in 2011, they contained a significant margin for possible future mortality improvement. As of the date of the valuation, there has been a significant erosion of this margin to the point that the margin has been eliminated. Therefore, the post-retirement mortality rates for current and future retirees were decreased to add additional margin for future improvement in mortality in accordance with the Actuarial Standards of Practice No. 35.

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

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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. Suggested Note D Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. The long-term rate of return on pension plan investments is 8%. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimates ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.

Best estimates of geometric real rates of return for each major asset class included in the Systems target asset allocation as of August 31, 2014 are summarized below:

Long-TermTarget Real Return Expected

Asset Class Allocation Geometric Basis Portfolio RealRate of Return*

Global EquityU.S. 18.0% 7.0% 1.4%Non-U.S. Developed 13.0% 7.3% 1.1%Emerging Markets 9.0% 8.1% 0.9%Directional Hedge Funds 4.0% 5.4% 0.2%Private Equity 13.0% 9.2% 1.4%

Stable ValueU.S. Treasuries 11.0% 2.9% 0.3%Absolute Return 0.0% 4.0% 0.0%Stable Value Hedge Funds 4.0% 5.2% 0.2%Cash 1.0% 2.0% 0.0%

Real ReturnGlobal Inflation Linked Bonds 3.0% 3.1% 0.0%Real Assets 16.0% 7.3% 1.5%Energy and Natural Resources 3.0% 8.8% 0.3%Commodities 0.0% 3.4% 0.0%

Risk ParityRisk Parity 5.0% 8.9% 0.4%Alpha 1.0%

Total 100.0% 8.7%

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

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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 *85) in measuring the 2014 Net Pension Liability.

1% Decrease in Discount Rate

(7.0%)

Discount Rate (8.0%)

1% Increase in Discount Rate

(9.0%)

District's Proportionate share of the net pension liability: 31,501,009$ 17,628,471$ 7,254,396$

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

At August 31, 2014, Allen Independent School District reported a liability of $17,628,471 for its proportionate share of the TRS’s net pension liability. This liability reflects a reduction of State pension support provided to the District. The amount recognized by the District as its proportionate share of the net pension liability, the related State support, and the total portion of the net pension liability that was associated with the District were as follows:

District's proportionate share of the collective net pension liability 17,628,471$ State's proportionate share that is associated with the District 59,754,683 Total 77,383,154$

The net pension liability was measured as of August 31, 2014 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, 2013 thru August 31, 2014.

At August 31, 2014 the employer’s proportion of the collective net pension liability was 0.0659961%. Since this is the first year of implementation, the District does not have to proportion measured as of August 31, 2013. The Notes to the Financial Statement for August 31, 2014 for TRS stated that the change in proportion was immaterial and therefore disregarded this year.

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

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

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There was a change in employer contribution requirements that occurred after the measurement date of the net pension liability and the employer’s reporting date. A 1.5% contribution for employers not paying Old Age Survivor and Disability Insurance (OASDI) on certain employees went into law effective 09/01/2013. The amount of the expected resultant change in the employer’s proportion cannot be determined at this time. For the year ended August 31, 2014, the District recognized pension expense of $5,524,209 and revenue of $5,524,209 for support provided by the State.

At August 31, 2014, 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 272,630$ -$

Changes in actuarial assumptions 1,145,870 -

Differences between projected and actual investment earnings - 5,387,981

- 4,621

Total 1,418,500$ 5,392,602$

Changes in proportion and differences between the employer's contributions and the proportionate share of contributions

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

Year ended August 31,

Pension Expense Amount

2015 (1,108,474)$ 2016 (1,108,474) 2017 (1,108,474) 2018 (1,108,474) 2019 238,521 Thereafter 221,273

At June 30, 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

Total net amounts per August 31, 2014 measurement date 1,418,500$ 5,392,602$ Contributions paid to TRS subsequent to the measurement date 1,251,041 -

Total 2,669,541$ 5,392,602$

Continued



70


G. Retiree Health Plan

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

Funding Policy – Contribution requirements are not actuarially determined but are legally established each biennium by the Texas Legislature. Texas Insurance Code, Sections 1575.202, 203, and 204 establish state, active employee, and public school contributions, respectively. The State of Texas and active public school employee contribution rates were 1.0% and 0.65% of public school payroll, respectively, with school districts contributing a percentage of payroll set at 0.55% for fiscal years 2013, 2014, and 2015. Per Texas Insurance Code, Chapter 1575, the public school contribution may not be less than 0.25% or greater than 0.75% of the salary of each active employee of the public school.

On Behalf Payments – On Behalf payments made by the State for Retiree Health Plan contributions totaled $7,196,396. Additionally, the District is allocated a portion of the Medicare Part D retiree drug subsidy the TRS-Care receives. The amount allocated on behalf for the year ended June 30, 2015 was estimated by TRS at $329,218.

G. Workers’ Compensation Insurance

Beginning September 1, 1993, the District established its self-funding worker’s compensation program. Through its historical review of the worker’s compensation self-insurance program, the District projected a liability of $644,000 as of June 30, 2015 for the ultimate loss reserve of the fund.

The District has maintained a self-insured retention of $200,000 per occurrence and aggregate retention of $3,000,000 since becoming self-funded. The District currently purchases excess coverage to statutory limits from Frost Insurance Company. The District does not purchase aggregate excess insurance. Claims administration is provided by York Risk Services Group.

The accrued liability for worker’s compensation self-insurance of $644,000 includes incurred but not reported claims. Because actual claim liabilities depend on such complex factors, the process used in computing the liability does not necessarily result in an actual amount.

Continued



71


H. Workers’ Compensation Insurance

Changes in the balances of claims liability amounts in fiscal years 2014 and 2015 are as follows:

2015 2014Unpaid Claims, Beginning of Period 320,000$ 320,000 Incurred Claims (including IBNR) 408,556 - Claim Payments (84,556) - Unpaid Claims, End of Period 644,000$ 320,000

I. Unemployment Compensation Pool

During the year ended June 30, 2015, the District provided unemployment compensation coverage 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 Interlocal Cooperation Act, Chapter 791 of the Texas Local Government Code. The Fund’s Unemployment Compensation Program is authorized by Section 22.005 of the Texas Education Code and Chapter 172 of the Texas Local Government Code. All members participating in the Fund execute Interlocal Agreements that define the responsibilities of the parties.

The Fund meets its quarterly obligation to the Texas Workforce Commission. Expenses are accrued monthly until the quarterly payment has been made. Expenses can be reasonably estimated; therefore there is no need for specific or aggregate stop loss coverage for the Unemployment Compensation pool. For the year ended June 30, 2015, the Fund anticipates that Allen ISD has no additional liability beyond the contractual obligation for payment of contribution.

The Fund engages the services of an independent auditor to conduct a financial audit after the close of each year on August 31. The audit is accepted by the Fund’s Board of Trustees in February of the following year. The Fund’s audited financial statement as of August 31, 2014, are available on the TASB Risk Management Fund website and have been 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, 2015, the District is in compliance with Federal regulations and the District has noliability for arbitrage rebates.

(7) EVALUTATION OF SUBSEQUENT EVENTS

The District has evaluated subsequent events through October 9, 2015, the date which the financial statements were available to be issued.

(8) OTHER MATTERS

The District completed the work and the legal issues surrounding the Eagle Stadium repairs. A final settlement is being negotiated to close this project.

Continued



72

(9) PRIOR PERIOD ADJUSTMENT

During fiscal year 2015, the District adopted GASB Statement No. 68 for Accounting and Reporting for Pensions. With GASB 68, the District must assume their proportionate share of the Net Pension Liability of the Teacher Retirement System of Texas. Adoption of GASB 68 required a prior period adjustment to report the effect of GASB 68 retroactively. The amount of the prior period adjustment is $(20,239,616). The restated beginning net position is $74,530,238.

BUDGETARY COMPARISON REPORTING – REQUIRED SUPPLEMENTARY INFORMATION

73


74

EXHIBIT F-1

Variance WithData Actual Final Budget

Control Amounts Positive orCodes Original Final (GAAP BASIS) (Negative)

REVENUES5700 Total Local & Intermediate Sources 105,938,321$ 108,784,140$ 110,940,473$ 2,156,333$ 5800 State Program Revenues 58,767,152 55,269,502 55,463,730 194,228 5900 Federal Program Revenues - - 27,758 27,758 5000 Total Revenues 164,705,473 164,053,642 166,431,961 2,378,319

EXPENDITURESCurrent:

0011 Instruction 97,267,191 97,652,270 95,554,591 2,097,679 0012 Instructional Resources and Media Services 2,050,058 2,067,718 2,000,194 67,524 0013 Curriculum and Instructional Staff Development 2,577,293 2,586,178 2,474,656 111,522 0021 Instructional Leadership 1,214,513 1,219,203 1,192,393 26,810 0023 School Leadership 9,159,373 9,210,373 9,018,283 192,090 0031 Guidance, Counseling, and Evaluation Services 7,718,690 7,769,590 7,469,828 299,762 0032 Social Work Services 35,444 40,539 31,173 9,366 0033 Health Services 1,558,528 1,565,878 1,515,808 50,070 0034 Student (Pupil) Transportation 3,141,760 3,236,426 3,200,480 35,946 0035 Food Services - 21,060 20,986 74 0036 Extracurricular Activities 3,943,453 3,948,768 3,592,708 356,060 0041 General Administration 4,582,298 4,898,248 4,841,076 57,172 0051 Facilities Maintenance and Operations 19,752,389 19,736,019 18,466,983 1,269,036 0052 Security and Monitoring Services 2,261,888 2,253,648 2,191,400 62,248 0053 Data Processing Services 1,967,528 1,971,818 1,848,842 122,976 0061 Community Services - 24530 19,002 5,528

Capital Outlay: - - 0081 Facilities Acquisition and Construction - 230 228 2

Intergovernmental: - - 0091 Contracted Instructional Services Between Schools 400,000 800,000 776,337 23,663 0095 Payments to Juvenile Justice Alternative Ed. Prg. 70,000 70,000 40,449 29,551 0099 Other Intergovernmental Charges 990,000 990,000 959,364 30,636 6030 Total Expenditures 158,690,406 160,062,496 155,214,781 4,847,715 1100 Excess of Revenues Over Expenditures 6,015,067 3,991,146 11,217,180 7,226,034

OTHER FINANCING SOURCES (USES):7915 Transfers In 1,560,000 1,560,000 1,570,053 10,053 8911 Transfers Out (Use) - - (16,644) (16,644) 8949 Other Uses - - (27,095) (27,095) 7080 Total Other Financing Sources (Uses): 1,560,000 1,560,000 1,526,314 (33,686)

1200 Net Change in Fund Balances 7,575,067 5,551,146 12,743,494 7,192,348 0100 Fund Balance - July 1 (Beginning) 65,452,533 65,452,533 65,452,533 - 3000 Fund Balance - June 30 (Ending) 73,027,600$ 71,003,679$ 78,196,027$ 7,192,348$

Budgeted Amounts

ALLEN INDEPENDENT SCHOOL DISTRICT BUDGETARY COMPARISON SCHEDULE

GENERAL FUNDFOR THE YEAR ENDED JUNE 30, 2015

75


76

EXHIBIT F-2

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

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

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

Total 77,383,154$

District's Covered Employee Payroll (1) 111,279,228$

District's Proportionate Share of Net Pension Liability (Asset) 15.84%as percentage of its Covered Employee Payroll

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

Notes:The District implemented GASB Statement No. 68 in fiscal year 2015, therefore, only one year of datais presented. The 10-year required information will be presented as it becomes available.

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

TEACHER RETIREMENT SYSTEMJUNE 30, 2015

77

EXHIBIT F-3

2015Contractually Required Contribution 612,037$

Contribution in Relation to the Contractually Required Contribution (612,037)

Contribution Deficiency (Excess) -$

District's Covered Employee Payroll (1) 111,279,228$

Contributions as a Percentage of Employee Covered Payroll 0.55%

Notes:The District implemented GASB Statement No. 68 in fiscal year 2015, therefore, only one year of datais presented. The 10-year required information will be presented as it becomes available.

ALLEN INDEPENDENT SCHOOL DISTRICTSCHEDULE OF THE DISTRICT CONTRIBUTIONS

TEACHER RETIREMENT SYSTEMJUNE 30, 2015

78

ALLEN INDEPENDENT SCHOOL DISTRICT NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION

JUNE 30, 2015

Budgets - The Board of Trustees adopts an “appropriated budget” at the fund/function code level 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.

79


80

OTHER SUPPLEMENTARY INFORMATION

81


82

NONMAJOR GOVERNMENTAL FUNDS

83

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 -$ (29,744)$ (4,393)$ 1120 Investments - Current - - - 1240 Receivables from Other Governments - 40,050 112,622 1290 Other Receivables - - - 1300 Inventories - - - 1000 Total Assests -$ 10,306$ 108,229$

LIABILITIES2110 Accounts Payable -$ 18$ -$ 2160 Accrued Wages Payable - 10,288 94,328 2180 Due to Other Governments - - - 2200 Accrued Expenditures - - 13,901 2000 Total Liabilities - 10,306 108,229

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 -$ 10,306$ 108,229$

Continued

ALLEN INDEPENDENT SCHOOL DISTRICTCOMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDSJUNE 30, 2015

Federal Special Revenue Funds

84


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

Formula Preschool Lunch Program Basic Grant Recruiting Acquisition Revenue Funds

253,633$ (242)$ (153,297)$ -$ (695)$ (3,587)$ 61,675$ - - 4,784,974 - - - 4,784,974

47,009 6,801 - - 18,743 19,243 244,468 124 - 50 - - - 174

- - 11,665 - - - 11,665 300,766$ 6,559$ 4,643,392$ -$ 18,048$ 15,656$ 5,102,956$

-$ -$ 28,995$ -$ -$ -$ 29,013$ 250,690 5,681 218,776 - 15,884 9,756 605,403

- - - - - - - 50,076 878 - - 2,164 5,900 72,919

300,766 6,559 247,771 - 18,048 15,656 707,335

- - 314,023 - - - 314,023 - - 314,023 - - - 314,023

- - 11,665 - - - 11,665

- - 4,069,933 - - - 4,069,933

- - - - - - - - - 4,081,598 - - - 4,081,598

300,766$ 300,766$ 4,643,392$ -$ 18,048$ 15,656$ 5,397,163$

Continued

85



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

Community Placement Textbook Succeed Revenue Activity GrantsBased Support Incentives Fund License Plate Funds Funds

(5,803)$ 52,830$ 607,872$ 1,368$ 656,267$ 187,392$ 1,066$ 121,241$ - - - - - 2,717,077 - -

5,803 - - - 5,803 - - - - - - - - 7,932 - - - - - - - - - - -$ 52,830$ 607,872$ 1,368$ 662,070$ 2,912,401$ 1,066$ 121,241$

-$ -$ 190,822$ -$ 190,822$ 100,490$ -$ 636$ - - - 250,690 250,690 - - - - - - - - 611 - - - - - 50,076 50,076 - - - - - 190,822 300,766 491,588 101,101 - 636

- - 417,050 - 417,050 - - 120,605 - - 417,050 - 417,050 - - 120,605

- - - - - - - -

- 52,830 - 1,368 54,198 - - -

- - - - - 2,811,300 1,066 - - 52,830 - 1,368 54,198 2,811,300 1,066 - -$ 52,830$ 607,872$ 1,368$ 662,070$ 2,912,401$ 1,066$ 121,241$

Continued86

State Special Revenue Funds Local Special Revenue Funds


474 475 481 482 485 Total Local TotalGrants Light Family School Faculty Special NonmajorOutside Span Literacy Finance Revenue Governmental

Foundation Litigation Funds Funds

87,108$ 45,702$ (5,554)$ 32,694$ 10,192$ 479,841$ 1,198,083$ - - - - 128,067 2,845,144 7,630,118 - - - - - - 250,271 - - - - - 7,932 8,106 - - - - - - 11,665

87,108$ 45,702$ (5,554)$ 32,694$ 138,259$ 3,332,917$ 9,098,243$

250$ -$ -$ -$ -$ 101,376$ 321,211$ - - - - - - 605,403 - - - - - 611 611 - - - - - - 72,919

250 - - - - 101,987 1,000,144

- - - - - 120,605 851,678 - - - - - 120,605 851,678

- - - - - - 11,665

- - - - - - 4,124,131

86,858 45,702 (5,554) 32,694 138,559 3,110,625 3,110,625 86,858 45,702 (5,554) 32,694 138,559 3,110,625 7,246,421 87,108$ 45,702$ (5,554)$ 32,694$ 138,559$ 3,333,217$ 9,098,243$

87

Local Special Revenue Funds


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 - 87,945 755,062 5020 Total Revenues -$ 87,945$ 755,062$

EXPENDITURESCurrent:

0011 Instruction - 84,965 564,767 0012 Instructional Resources and Media Services - - - 0013 Curriculum and Instructional Staff Development - 2,980 19,290 0021 Instructional Leadership - - - 0023 School Leadership - - 79,512 0031 Guidance, Counseling and Evaluation Services - - 91,493 0034 Student (Pupil) Transportation - - - 0035 Food Services - - - 0036 Extracurricular Activities - - - 0041 General Administration - - - 0053 Data Processing Services - - - 0061 Community Services - - -

Capital Outlay:0081 Facilities Acquisition and Construction - - - 6030 Total Expenditures - 87,945 755,062 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

88



224 225 240 244 255 263 392IDEA - IDEA - National Career and ESEA II, A Title III, A Non-Ed.Part B Part B Breakfast and Technical - Training and English Lang. Community

Formula Preschool Lunch Program Basic Grant Recruiting Acquisition Based Support

-$ -$ 5,497,675$ -$ -$ -$ -$ - - 139,767 - - - 51,399

2,792,625 41,216 1,683,768 118,991 149,708 141,339 - 2,792,625$ 41,216$ 7,321,210$ 118,991$ 149,708$ 141,339$ 51,399$

1,138,683 41,216 - 116,591 141,079 137,794 51,399 - - - - - - -

275,471 - - 2,400 8,629 3,545 - 38,686 - - - - - -

- - - - - - - 923,808 - - - - - - 415,977 - - - - - -

- - 7,260,097 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - 2,792,625 41,216 7,260,097 118,991 149,708 141,339 51,399

- - 61,113 - - - -

- - 16,644 - - - - - - (370,053) - - - - - - (353,409) - - - -

- - (292,296) - - - - - - 4,373,894 - - - - -$ -$ 4,081,598$ -$ -$ -$ -$

Continued

89



FederalSpecial

RevenueFunds

397 410 428 461 472 473 474 475Advanced State Ready to Campus Prosoft Foundation Grants LightPlacement Textbook Succeed Activity Grants Outside SpanIncentives Fund License Plate Funds Foundation

-$ -$ -$ 4,068,421$ -$ 69,022$ 25,920$ -$ - 2,238,463 399 28 - 83 - - - - - - - - - - -$ 2,238,463$ 399$ 4,068,449$ -$ 69,105$ 25,920$ -$

- 2,238,463 - 2,636,625 - 75,905 23,642 - - - 234 58,123 - - - - - - - 17,802 - - - - - - - - - - - - - - - 24,677 - - - - - - - 4,824 - - - - - - - 2,007 - - - - - - - - - - - - - - - 890,225 - 562 180 - - - - (14,900) - - - - - - - 44,049 - - - - - - - 1,663 - - - -

- - - 10,167 - - - - 2,238,463 234 3,675,262 - 76,467 23,822 - - - 165 393,187 - (7,362) 2,098 -

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

- - 165 393,187 - (7,362) 2,098 - 52,830 - 1,203 2,418,113 1,066 7,362 84,760 45,702 52,830$ -$ 1,368$ 2,811,300$ 1,066$ -$ 86,858$ 45,702$

Continued

90

Revenue FundsState Special



481 482 485 TotalFamily School Faculty Nonmajor

Literacy Finance GovernmentalLitigation Funds

-$ -$ 63$ 9,661,101$ - - - 2,430,139 - - - 5,770,654 -$ -$ 63$ 17,861,894

- - - 7,251,129 - - - 58,357 - - - 330,117 - - - 38,686 - - - 104,189 - - - 1,020,125 - - - 417,984 - - - 7,260,097 - - - 890,967 - - - (14,900) - - - 44,049 - - - 1,663

- - - 10,167 - - - 17,412,630 - - 63 449,264

- - - 16,644 - - - (370,053) - - - (353,409)

- - 63 95,855 (5,554) 32,694 138,496 7,150,566 (5,554)$ 32,694$ 138,559$ 7,246,421$

91



92

NONMAJOR ENTERPRISE FUNDS

93


94

EXHIBIT G-3

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-1

ASSETS

Current Assets:

1110 Cash and Cash Equivalents 154,489$ 1,786,778$ 44,974$ 192,423$ 47,806$ 2,226,470$

1120 Investments 151 - - - - 151

1290 Other Receivables - - - 10,414 - 10,414

1410 Prepayments 4,615 - - - - 4,615

1000 Total Assets 159,255 1,786,778 44,974 202,836 47,806 2,241,650

LIABILITIES

Current Liabilities:

2110 Accounts Payable 1,756 41,251 - 2,107 - 45,114

2160 Accrued Wages Payable 6,810 5,515 - 3,149 3,460 18,934

2181 Due to State - - - 1,764 111 1,875

2000 Total Liabilities 8,566 46,766 - 7,020 3,571 65,923

DEFERRED INFLOWS OF RESOURCES

2310 Unavailable Revenue - 48,080 4,663 - - 52,743 Total Deferred Inflows of Resources - 48,080 4,663 - - 52,743

NET POSITION

3900 Unrestricted Net Position 150,689 1,691,932 40,311 195,816 44,235 2,122,983

3000 Total Net Position 150,689$ 1,691,932$ 40,311$ 195,816$ 44,235$ 2,122,983$

ALLEN INDEPENDENT SCHOOL DISTRICTCOMBINING STATEMENT OF FUND NET POSITION

NONMAJOR ENTERPRISE FUNDSJUNE 30, 2015


95


Data 712 720 732

Control Concession Community School Supply

Codes Fund Club Fund Fund

OPERATING REVENUES

5700 Total Local & Intermediate 80,205$ 4,200,526$ 30,629$

5800 State 3,201 106,546 -

5000 Total Operating Revenues 83,405 4,307,073 30,629

OPERATING EXPENSES

6100 Payroll Costs 52,256 2,099,632 -

6200 Professional & Contracted Services 33,379 31,514 -

6300 Supplies & Materials 35,805 224,708 8,552

6400 Other Operating Costs - 224,199 99

6600 Capital Equipment - 32,065 -

6030 Total Operating Expenses 121,440 2,612,118 8,651

Operating Income (Loss) Before Transfers (38,035) 1,694,955 21,978

8911 TRANSFERS OUT - (1,200,000) -

Change in Net Position (38,035) 494,955 21,978

NET POSITION

Net Position - Beginning 188,723 1,196,977 18,333

3540 Net Position - Ending 150,689$ 1,691,932$ 40,311$

Continued96


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



737 740 Total

Yearbook Allen HS Eagle See

Fund Store Fund Exhibit D-2

131,527$ 137,199$ 4,580,086$

1,925 1,646 113,318

133,452 138,845 4,693,404$

32,701 28,391 2,212,979

- - 64,893

16 18,776 287,857

54,844 87,546 366,688

- - 32,065

87,562 134,712 2,964,482

45,890 4,133 1,728,922

- - (1,200,000)

45,890 4,133 528,922

149,926 40,102 1,594,062 195,816$ 44,235$ 2,122,984$

97


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 83,406$ 4,283,250$ 17,240$ 126,652$ 133,957$ 4,644,505$ Cash Payments to Employees for Services (52,039) (2,099,652) - (32,219) (28,291) (2,212,201) Cash Payments for Supplies (74,942) (248,584) (8,552) (316) (18,781) (351,175) Cash Payments for Other Operating Expenses - (256,264) (99) (54,844) (87,546) (398,753) Net Cash Provided by Operating Activities (43,575) 1,678,750 8,589 39,273 (661) 1,682,376

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 (43,575) 478,750 8,589 39,273 (661) 482,376 Cash and Cash Equivalents at Beginning of Year 196,214 1,308,027 36,386 155,152 48,467 1,744,245

Cash and Cash Equivalents at End of Year 152,639 1,786,776 44,975 194,425 47,806 2,226,621

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

Cash on Balance Sheet: 152,488 1,786,776 44,975 194,425 47,806 2,226,470

Reconciliation of Operating Income(Loss) to Net Cash Provided by Operating Activities:Operating Income (Loss): (38,035) 1,694,955 21,978 45,890 4,133 1,728,922

Effect of Increases and Decreases in Current Assets and Liabilities:

Decrease(increase) in Receivables - - - (8,564) - (8,564) Decrease(increase) in Prepaid Expenses (4,615) - - - - (4,615) Decrease(increase) in Accounts Payable (1,143) 7,638 - (300) (5) 6,190 Decrease(increase) in Accrued Wages Payable 217 (21) - 482 100 778 Decrease(increase) in Due to State - - - 1,765 111 1,876 Decrease(increase) in Due to Other Funds - - - - (5,000) (5,000) Decrease(increase) in Unearned Revenue - (23,821) (13,389) - - (37,211) Net Cash Provided by Operating Activities (43,575)$ 1,678,750$ 8,589$ 39,273$ (661)$ 1,682,376$

ALLEN INDEPENDENT SCHOOL DISTRICTCOMBINING STATEMENT OF CASH FLOWS


98


INTERNAL SERVICE FUNDS

99


100

EXHIBIT G-6

753 773Data Health Workers' Total

Control Insurance Comp SeeCodes Fund Fund Exhibit D-1


1110 Cash and Cash Equivalents 42,072$ -$ 42,072$ 1120 Investments - 1,486,925 1,486,925 1260 Due From Other Funds - 698,978 698,978 1410 Prepayments - 8,330 8,330 1000 Total Assets 42,072 2,194,233 2,236,305


2110 Accounts Payable 39,252 647,876 687,128 2000 Total Liabilities 39,252 647,876 687,128

NET POSITION3900 Unrestricted Net Position 2,820 1,546,357 1,549,177 3000 Total Net Position 2,820$ 1,546,357$ 1,549,177$



INTERNAL SERVICE FUNDSJUNE 30, 2015

101

EXHIBIT G-7

753 773Data Health Workers' Total

Control Insurance Comp SeeCodes Fund Fund Exhibit D-2

OPERATING REVENUES5749 Total Local & Intermediate -$ 698,978$ 698,978$ 5000 Total Operating Revenues - 698,978 698,978

OPERATING EXPENSES6100 Payroll Costs - - - 6200 Professional & Contracted Services - - - 6300 Supplies & Materials - - - 6400 Other Operating Costs - 709,053 709,053 6600 Capital Equipment - - - 6030 Total Operating Expenses - 709,053 709,053

Operating Income (Loss) Before Transfers - (10,075) (10,075)

NONOPERATING REVENUES (EXPENSES)5742 Earnings from Temporary Deposits & Investments 58 1,999 2,057 5000 Total Nonoperating Revenues (Expenses) 58 1,999 2,057

Change in Net Position 58 (8,076) (8,018)

NET POSITIONNet Position - Beginning 2,762 1,554,433 1,557,195

3540 Net Position - Ending 2,820$ 1,546,357$ 1,549,177$




102

EXHIBIT G-8

753 773 TotalHealth Workers' See

Insurance Comp ExhibitFund Fund D-3

Cash Flows from Operating Activities: Cash Received from User Charges -$ 668,456$ 668,456$ Cash Payments to Employees for Services - - - Cash Payments for Supplies - 316,395 316,395 Cash Payments for Other Operating Expenses - (709,053) (709,053) Net Cash Provided by Operating Activities - 275,798 275,798

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

Cash Flows from Investing Activities: Interest and Dividends on Investments 58 1,999 2,057

Net Increase in Cash and Cash Equivalents 58 277,797 277,855 Cash and Cash Equivalents at Beginning of Year 42,014 1,209,128 1,251,142

Cash and Cash Equivalents at End of Year 42,072 1,486,925 1,528,997

Temporary Investment Not in Cash Equivalents (42,072) (1,453,763) (1,495,835)

Cash on Balance Sheet: -$ 33,162$ 33,162$

Reconciliation of Operating Income(Loss) to Net Cash Provided by Operating Activities:Operating Income (Loss): -$ (10,075)$ (10,075)$

Effect of Increases and Decreases in Current Assets and Liabilities:

Decrease(increase) in Receivables - - - Decrease(increase) in Prepaid Expenses - (8,330) (8,330) Decrease(increase) in Accounts Payable - 324,725 324,725 Decrease(increase) in Accrued Wages Payable - - - Decrease(increase) in Due to State - - - Decrease(increase) in Due to Other Funds - (30,522) (30,522) Decrease(increase) in Unearned Revenue - - - Net Cash Provided by Operating Activities -$ 275,798$ 275,798$


ALLEN INDEPENDENT SCHOOL DISTRICT COMBINING STATEMENT OF CASH FLOWS


103


104

PRIVATE PURPOSE TRUST FUNDS

105


808 811 812 813Data Foundation Mitchell Craig Covington

Control for Allen Smithwick Baxter MemorialCodes Schools Scholarship Scholarship Scholarship


1110 Cash and Cash Equivalents 520$ -$ -$ -$ 1120 Investments 118 3,811 4,110 6,990 1290 Other Receivables 2,242 - - 1000 Total Assets 2,880 3,811 4,110 6,990


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

NET POSITION3900 Unrestricted Net Position 1,509 3,811 4,110 6,990 3000 Total Net Position 1,509$ 3,811$ 4,110$ 6,990$

Continued106

Private Purpose Trust Funds


PRIVATE PURPOSE TRUST FUNDSJUNE 30, 2015


814 815 816 820Pierce Don Key Total

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

-$ -$ -$ 1,264$ 1,784$ 8 2,621 716 - 18,374 - - - - 2,242 8 2,621 716 1,264 22,399

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

8 2,621 716 1,264 21,028 8$ 2,621$ 716$ 1,264$ 21,028$

107



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 75,419$ 1$ 2$ 3$ -$ 5800 State 2,552 - - - - 5000 Total Operating Revenues 77,971 1 2 3 -

OPERATING EXPENSES6100 Payroll Costs 77,971 - - - - 6400 Other Operating Costs - 1,000 - - - 6030 Total Operating Expenses 77,971 1,000 - - -

Change in Net Position - (999) 2 3 -

NET POSITIONNet Position - Beginning 1,510 4,810 4,109 6,986 8

3540 Net Position - Ending 1,510$ 3,811$ 4,110$ 6,990$ 8$

Continued


PRIVATE PURPOSE TRUST FUNDSJUNE 30, 2015


108


815 816 820Don Key Total

Crowder Millipore Club SeeScholarship Foundation Scholarship Exhibit E-2

-$ -$ -$ 75,425$ - - - 2,552 - - - 77,977

- - - 77,971 - - - 1,000 - - - 78,971

- - - (994)

2,621 715 1,264 22,022 2,621$ 715$ 1,264$ 21,028$

109



110

AGENCY FUNDS

111


112

EXHIBIT G-11

DataControl Balance BalanceCodes July 1, 2014 Additions Deductions June 30, 2015

865 Student ActivityASSETS

1110 Cash and Cash Equivalents (184,643)$ 939,445$ 992,749$ (237,948)$ 1120 Investments 522,575 538,381 498,710 562,246 1290 Other Receivables 516 743 516 743 1000 Total Assets 338,447 1,478,569 1,491,975 325,041

LIABILITIES2110 Accounts Payable 11,170 267,635 277,426 1,379 2180 Due to Other Governments - 1,738 1,725 13 2190 Due to Student Groups 324,621 301,852 305,481 320,993 2210 Accrued Expenses 2,656 - - 2,656 2000 Total Liabilities 338,447 571,225 584,632 325,040

880 Stadium FiduciaryASSETS

1110 Cash and Cash Equivalents - 552,057 531,221 20,836 1000 Total Assets - 552,057 531,221 20,836

LIABILITIES2440 Payable from Restricted Assets - 292,543 271,707 20,837 2000 Total Liabilities - 292,543 271,707 20,837

885 SunshineASSETS

1110 Cash and Cash Equivalents 50,596 192,793 186,861 56,529 1000 Total Assets 50,596 192,793 186,861 56,529

LIABILITIES2110 Accounts Payable 1,263 91,203 91,121 1,345 2190 Due to Student Groups 29,426 58,147 56,390 31,183 2440 Payable from Restricted Assets 19,908 51,106 47,013 24,001 2000 Total Liabilities 50,596 200,455 194,523 56,529

TOTAL AGENCY FUNDSASSETS

1110 Cash and Cash Equivalents (134,047) 1,684,295 1,710,832 (160,583) 1120 Investments 522,575 538,381 498,710 562,246 1290 Other Receivables 516 743 516 743 1000 Total Assets 389,044 2,223,419 2,210,057 402,406

LIABILITIES2110 Accounts Payable 12,433 358,838 368,547 2,724 2180 Due to Other Governments - 1,738 1,725 13 2190 Due to Student Groups 354,048 359,999 361,871 352,176 2210 Accrued Expenses 2,656 - - 2,656 2440 Payable from Restricted Assets 19,908 343,649 318,719 44,837 2000 Total Liabilities 389,044$ 1,064,224$ 1,050,862$ 402,405$

ALLEN INDEPENDENT SCHOOL DISTRICTSTATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDSJUNE 30, 2015

113


114

REQUIRED TEXAS EDUCATION AGENCY SCHEDULES

115

ALLEN INDEPENDENT SCHOOL DISTRICT SCHEDULE OF DELINQUENT TAXES RECEIVABLE


Last 10 Years Tax Rates

Debt ServiceMaintenance Tax PurposesValue for School

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

VariousVariousand prior years2006 $ Various

0.405101.370000 5,508,561,086 2007

0.430301.040000 6,323,061,461 2008

0.430301.040000 6,843,308,532 2009

0.430301.040000 7,171,457,931 2010

0.500001.040000 7,243,179,486 2011

0.500001.170000 7,387,417,379 2012

0.500001.170000 7,870,111,934 2013

0.500001.170000 8,234,388,099 2014

0.480001.160000 9,080,358,311 (School year under audit)2015

100 TOTALS

116

EXHIBIT H-1Page 1 of 2

Continued

EXHIBIT H-1

7/1/2014Balance

Beginning

Total LevyYear's

Current(20)(10) (50)

EndingBalance

6/30/2015

(40)EntireYear's

Adjustments

(31)

MaintenanceCollections

(32)

Debt ServiceCollections

- 94,401 3,289 (28,469)$ $ $ $ $ 61,738 $ 905

- 39,892 17,295 18,667 36,150 5,114

- 61,720 32,618 18,804 34,410 13,496

- 241,109 120,478 - 70,783 49,848

- 286,291 188,817 188,231 194,927 90,778

- 278,914 173,905 168,649 190,050 83,608

- 328,205 225,394 197,183 203,672 96,322

- 282,953 263,735 309,698 216,209 112,707

- 755,245 564,394 336,994 286,651 241,194

150,593,761 - 105,119,356 (1,084,101) 892,755 43,497,549

$ 2,187,345 $ 125,656 $ 106,709,281 $ 150,593,761 $ 2,368,730 $ 44,191,521

117

Page 2 of 2

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)

(Negative)Positive or

Final BudgetVariance WithActual Amounts

Budgeted Amounts

REVENUES:5,652,388 5,652,388 5,497,675 (154,713)Total Local and Intermediate Sources $ $ $ $5700

155,105 155,105 139,767 (15,338)State Program Revenues58001,638,725 1,638,725 1,683,768 45,043 Federal Program Revenues5900

Total Revenues5020 7,446,218 7,446,218 7,321,210 (125,008)

EXPENDITURES:8,457,126 8,596,082 7,260,097 1,197,029 Food Services0035

Total Expenditures6030 8,596,082 8,457,126 7,260,097 1,197,029

1100 Excess (Deficiency) of Revenues Over Expenditures

(1,149,864) (1,010,908) 61,113 1,072,021

OTHER FINANCING SOURCES (USES): - - 16,644 16,644 Transfers In7915

(360,000)(360,000) (370,053) (10,053)Transfers Out (Use)7961

Total Other Financing Sources (Uses) 7080 (360,000) (360,000) (353,409) 6,591

1200 Net Change in Fund Balances (1,509,864) (1,370,908) (292,296) 1,078,612

0100 Fund Balance - July 1 (Beginning) 4,373,894 4,373,894 4,373,894 -

3000 Fund Balance - June 30 (Ending) $ 2,864,030 $ 3,002,986 $ 4,081,598 $ 1,078,612

118

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)

(Negative)Positive or

Final BudgetVariance WithActual Amounts

Budgeted Amounts

REVENUES:44,100,000 40,677,854 44,451,697 351,697 Total Local and Intermediate Sources $ $ $ $5700

Total Revenues5020 40,677,854 44,100,000 44,451,697 351,697

EXPENDITURES:Debt Service:

24,225,000 18,275,000 19,225,000 5,000,000 Principal on Long Term Debt007121,720,000 22,464,242 21,718,823 1,177 Interest on Long Term Debt0072

438,723 30,000 402,363 36,360 Bond Issuance Cost and Fees0073

Total Expenditures6030 40,769,242 46,383,723 41,346,186 5,037,537

1100 Excess (Deficiency) of Revenues Over Expenditures

(91,388) (2,283,723) 3,105,511 5,389,234

OTHER FINANCING SOURCES (USES): 34,640,000 - 34,640,000 - Capital Related Debt Issued (Regular Bonds)7911

4,949,001 - 4,949,001 - Premium or Discount on Issuance of Bonds7916(39,180,278) - (44,180,278) (5,000,000)Other (Uses)8949

Total Other Financing Sources (Uses) 7080 - 408,723 (4,591,277) (5,000,000)

1200 Net Change in Fund Balances (91,388) (1,875,000) (1,485,766) 389,234

0100 Fund Balance - July 1 (Beginning) 20,704,773 20,704,773 20,704,773 -

3000 Fund Balance - June 30 (Ending) $ 20,613,385 $ 18,829,773 $ 19,219,007 $ 389,234

119


120

STATISTICAL SECTION

121


122

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 125-140 These schedules contain trend information intended to help the reader understand how the District’s financial position has changed over time.

Revenue Capacity Information 141-146 These schedules contain information intended to help the reader assess the District’s most significant revenue source, state tax collections.

Debt Capacity Information 147-152 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 153-156 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 157-166 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.

123


124

Financial Trends Information

125

EXHIBIT I-1Page 1 of 2

2006 2007 2008 2009Governmental Activies

Net Investment in Capital Assets 23,082,852$ 27,123,644$ 16,087,260$ 17,297,410$ Restricted 6,651,201 5,328,543 6,661,902 8,751,801 Unrestricted 4,448,227 18,471,615 37,472,260 37,722,473

Total Government Net Position 34,182,280 50,923,802 60,221,422 63,771,684

Business Type ActivitiesNet Investment in Capital Assets - - - - Restricted - - - - Unrestricted 444,050 469,304 564,570 560,418

Total Business Type Activities 444,050 469,304 564,570 560,418

Total Primary GovernmentNet Investment in Capital Assets 23,082,852 27,123,644 16,087,260 17,297,410 Restricted 6,651,201 5,328,543 6,661,902 8,751,801 Unrestricted 4,892,277 18,940,919 38,036,830 38,282,891

Total Primary Government 34,626,330$ 51,393,106$ 60,785,992$ 64,332,102$

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

Continued126

ALLEN INDEPENDENT SCHOOL DISTRICTNET POSITION BY COMPONENT

LAST TEN FISCAL YEARS (UNAUDITED)

Fiscal Year


2010 2011 2012 2013 2014 2015

19,017,325$ 17,646,573$ 14,009,916$ 8,468,488$ 5,529,019$ 11,002,572$ 11,897,678 14,560,212 15,153,026 24,202,102 25,556,120 23,955,009 37,950,845 38,586,665 53,286,345 51,360,854 62,090,153 54,201,388 68,865,848 70,793,450 82,449,287 84,031,444 93,175,292 89,158,969

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

559,492 516,610 880,944 1,017,397 1,594,062 2,122,984 559,492 516,610 880,944 1,017,397 1,594,062 2,122,984

19,017,325 17,646,573 14,009,916 8,468,448 5,529,019 11,002,572 11,897,678 14,560,212 15,153,026 24,202,102 25,556,120 23,955,009 38,510,337 39,103,275 54,167,289 52,378,251 63,684,215 56,324,372 69,425,340$ 71,310,060$ 83,330,231$ 85,048,801$ 94,769,354$ 91,281,953$

127

Fiscal Year


2006 2007 2008 2009Expenses

Governmental ActivitiesInstruction 68,028,608$ 70,433,668$ 78,771,317$ 83,450,656$ Instructional Resources and Media Services 1,543,993 1,864,499 2,047,087 2,344,598 Curriculum & Staff Development 1,514,319 1,641,814 2,096,599 2,380,390 Instructional Leadership 886,496 899,196 888,813 1,228,261 School Leadership 6,430,170 6,525,320 7,518,486 8,027,711 Guidance, Counseling & Evaluation Services 4,366,469 4,946,698 5,707,778 6,553,377 Social Work Services 3,939 3,939 - - Health Service 993,282 1,054,423 1,111,215 1,158,297 Student (pupil) Transportation 2,511,332 2,905,688 3,330,166 3,424,836 Food Services 4,849,199 5,090,036 5,556,795 5,854,804 Curricular & Extracurricular Activities 3,001,290 3,217,838 3,388,612 3,489,848 General Administration 3,175,798 3,499,417 4,235,259 4,375,089 Plant Maintenance & Operations 15,814,070 16,037,989 16,078,290 17,528,538 Security & Monitoring Services 1,063,279 902,530 949,017 1,408,775 Data Processing Services 1,749,181 2,013,046 2,105,709 2,351,981 Community Services 11,665 17,611 2,627 1,823 Debt Service 11,970,007 13,441,077 13,279,386 14,305,900 Capital Outlay 2,419,428 1,958,390 5,407,821 2,862,582 Contracted Instructional - - - - Payment for Shared Service Arrangement 87,380 90,115 47,205 57,308 Other Intergovernmental Charges - - - 637,613

Total Governmental Activities Expenses 130,419,905 136,543,294 152,522,182 161,442,387 Business-type Activities

Concession Stands 173,409 130,517 124,949 130,784 Kid's Club/Community Ed 1,228,372 1,741,929 1,883,416 1,993,204 Other Enterprising Activities 315,331 251,114 285,141 358,117

Total Business-type Activities Expenses 1,717,112 2,123,560 2,293,506 2,482,105 Total Primary Government Program Expenses 132,137,017$ 138,666,854$ 154,815,688$ 163,924,492$

Program RevenuesGovernmental Activities

Charges for Services 8,027,164$ 6,966,611$ 7,366,665$ 7,456,229$ Operating Grants & Contributions 14,789,475 12,353,548 11,069,903 11,304,442

Total Governmental Activities Revenues 22,816,639 19,320,159 18,436,568 18,760,671 Business-type Activities

Charges for Services 2,075,598 2,691,245 3,136,785 3,297,397 Operating Grants & Contributions 398,551 370,640 73,573 80,356

Total Business-type Activities Revenues 2,474,149 3,061,885 3,210,358 3,377,753 Total Primary Government Program Revenues 25,290,788$ 22,382,044$ 21,646,926$ 22,138,424$

Net (Expense)/RevenueTotal Primary Government Expenses (106,846,229)$ (116,284,810)$ (133,168,762)$ (141,786,068)$

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

Continued128

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


Fiscal Year


2010 2011 2012 2013 2014 2015

88,611,768$ 94,662,798$ 93,315,924$ 103,145,190$ 109,128,044$ 113,269,325$ 2,352,808 2,390,983 2,419,277 2,291,265 2,584,507 2,250,780 2,620,997 2,267,457 1,810,705 2,150,677 2,499,944 2,932,382 1,300,370 1,370,114 1,161,797 1,139,068 1,236,703 1,232,223 8,257,916 9,004,361 9,303,481 9,815,997 10,051,094 10,441,213 7,260,209 8,087,737 7,715,793 8,549,277 8,875,883 9,211,632

- - - 2,162 32,348 31,188 1,320,319 1,381,741 1,303,991 1,391,282 1,516,631 1,582,451 3,491,508 3,546,135 3,529,600 3,807,549 4,179,189 4,291,929 6,091,206 6,107,204 6,091,575 6,246,375 6,276,027 6,631,866 4,190,706 4,260,185 4,624,501 5,941,308 7,098,341 6,618,969 4,286,847 4,506,087 3,938,827 4,335,737 4,682,431 5,274,797

17,329,755 17,486,034 15,672,993 17,693,619 16,558,742 18,819,001 1,444,923 1,412,150 1,744,129 2,162,379 2,061,330 2,415,284 1,904,588 2,064,785 1,869,306 2,573,037 3,696,872 4,699,390

121,250 6,931 693 492 1,949 21,682 16,720,838 20,361,943 21,116,077 22,942,857 22,733,440 21,463,827

4,468,543 7,928,513 5,725,998 7,834 7,834 - - - 581,130 314,083 411,310 776,337

84,917 42,690 62,149 73,302 40,265 40,449 698,671 739,107 781,240 856,647 900,480 959,364

172,558,139 187,626,955 182,769,186 195,440,137 204,573,364 212,964,089

124,017 140,626 121,143 381,604 363,854 121,439 2,062,702 2,215,538 2,325,809 2,261,669 2,411,005 2,612,117

316,497 350,345 214,602 368,138 279,061 230,926 2,503,216 2,706,509 2,661,554 3,011,411 3,053,920 2,964,482

175,061,355$ 190,333,464$ 185,430,740$ 198,451,548$ 207,627,284$ 215,928,571$

8,442,652$ 9,509,441$ 10,407,549$ 7,297,783$ 6,706,824$ 7,627,181$ 17,983,813 21,982,872 12,019,249 10,889,406 14,340,352 15,397,078 26,426,465 31,492,313 22,426,798 18,187,189 21,047,176 23,024,259

3,616,443 3,859,930 3,831,092 4,458,634 4,726,575 4,580,087 85,846 95,604 94,796 89,229 104,012 113,317

3,702,289 3,955,534 3,925,888 4,547,863 4,830,587 4,693,404 30,128,754$ 35,447,847$ 26,352,686$ 22,735,052$ 25,877,763$ 27,717,663$

(144,932,601)$ (154,885,617)$ (159,078,054)$ (175,716,496)$ (181,749,521)$ (188,210,908)$

129

Fiscal Year


2006 2007 2008 2009Net (Expense)/Revenue

Governmental Activities (107,603,266)$ (117,223,135)$ (134,085,614)$ (142,681,716)$ Business-type Activities 757,037 938,325 916,852 895,648

Total Primary Government Net Expense (106,846,229)$ (116,284,810)$ (133,168,762)$ (141,786,068)$

General Revenues and Other Changes in Net PositionGovernment Activities:

Property Taxes 95,320,235$ 98,693,651$ 96,785,549$ 101,155,007$ State Aid-Formula 16,190,421 29,513,698 45,649,131 42,093,936 Grants & Contributions Not Restricted - - - - Investment Earnings 2,725,064 3,816,988 3,760,095 1,311,567 Miscellaneous - - - - Other 228,684 1,940,318 822,000 - Transfers - - - 900,000

Total Government Activities 114,464,404 133,964,655 147,016,775 145,460,510 Business-type Activities

State Aid-Formula - - 72 - Investment Earnings 2,295 513 343 103 Miscellaneous - - - 97 Transfers - (913,583) (822,000) (900,000)

Total Business-type Activities 2,295 (913,070) (821,585) (899,800) Total Primary Government 114,466,699$ 133,051,585$ 146,195,190$ 144,560,710$

Change in Net PositionGovernment Activities 6,861,138$ 16,741,520$ 12,931,161$ 2,778,794$ Business-type Activities 759,332 25,255 95,267 (4,152)

Total Primary Government 7,620,470$ 16,766,775$ 13,026,428$ 2,774,642$

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

Continued

130

ALLEN INDEPENDENT SCHOOL DISTRICTGENERAL REVENUES AND TOTAL CHANGE IN NET POSITION


Fiscal Year


2010 2011 2012 2013 2014 2015

(146,131,674)$ (156,134,642)$ (160,342,388)$ (177,252,948)$ (183,526,188)$ (189,939,830)$ 1,199,073 1,249,025 1,264,334 1,536,452 1,776,667 1,728,922

(144,932,601)$ (154,885,617)$ (159,078,054)$ (175,716,496)$ (181,749,521)$ (188,210,908)$

110,002,740$ 112,452,243$ 125,019,234$ 131,074,774$ 139,359,676$ 150,095,980$ 39,096,231 43,879,002 45,717,783 42,894,175 48,370,344 48,499,523

- - - - - (196,865) 543,230 439,092 335,421 396,043 269,401 214,201

53,241 - 25,787 78,511 - - - - - 5,671,625 3,617,758 6,376,879

1,200,000 1,291,907 900,000 1,400,000 1,200,000 1,172,905 150,895,442 158,062,244 171,998,225 181,515,128 192,817,179 206,162,623

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

(1,200,000) (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)

149,695,442$ 156,770,337$ 171,098,225$ 180,115,128$ 191,617,179$ 204,962,623$

4,763,768$ 1,927,602$ 11,655,837$ 4,262,180$ 9,290,991$ 16,222,793$ (927) (42,882) 364,334 136,452 576,667 528,922

4,762,841$ 1,884,720$ 12,020,171$ 4,398,632$ 9,867,658$ 16,751,715$

131

Fiscal Year


2006 2007 2008 2009General Fund

Nonspendable:Inventories 335,627$ 357,767$ 346,143$ 252,096$ Prepaid Items 297,565 206,601 - -

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

Committed: - - - - Assigned 3,000,000 9,000,000 9,000,000 9,000,000 Unassigned: 18,578,061 23,695,006 28,591,146 26,996,437

Total General Fund 22,211,253$ 33,259,374$ 37,938,305$ 36,249,549$

All Other Governmental FundsNonspendable:

Inventories 50,127$ 32,351$ 17,728$ 48,015$ Prepaid Items 3,519 2,054 - -

RestrictedDebt Service 10,960,140 10,067,739 10,780,970 14,501,176 Federal and State Grants 1,086,146 1,911,147 1,885,532 1,601,388 Capital Acquisition and Contractual 23,614,009 37,490,101 - - Other Miscellaneous 1,192,425 1,645,183 33,541,057 62,923,191

Committed - - - - Assigned - - - - Unassigned - - - 64,938

Total All Other Governmental Funds 36,906,366$ 51,148,575$ 46,225,287$ 79,138,708$

Total General and Other Governmental 59,117,619$ 84,407,949$ 84,163,592$ 115,388,257$

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

Continued132

ALLEN INDEPENDENT SCHOOL DISTRICTFUND BALANCE GOVERNMENTAL FUNDS


Fiscal Year


2010 2011 2012 2013 2014 2015

181,191$ 242,946$ 225,772$ 182,214$ 154,129$ 124,715$ - - 162,138 47,899 269,291 176,356

1,016 1,016 - 1,016 1,016 1,016 - - - - 2,500,000 -

9,000,000 9,000,000 9,000,000 7,000,000 7,000,000 - 25,303,982 27,966,083 39,088,478 47,076,549 55,528,097 77,893,940 34,486,189$ 37,210,045$ 48,476,388$ 54,307,678$ 65,452,533$ 78,196,027$

54,297$ 44,756$ 43,069$ 36,688$ 14,046$ 11,665$ - - 900 - - -

17,854,344 18,589,132 19,350,446 20,129,812 20,704,773 19,219,007 2,075,131 2,910,228 3,345,981 3,573,889 4,413,881 4,124,131

- 83,923,510 64,155,682 80,578,153 79,781,626 39,738,751 115,876,538 3,671 - - - -

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

330,698 - - - - - 136,191,008$ 108,156,317$ 90,234,199$ 108,190,499$ 107,636,965$ 66,204,179$

170,677,197$ 145,366,362$ 138,710,587$ 162,498,177$ 173,089,498$ 144,400,206$

133

Fiscal Year


2006 2007 2008 2009Federal Sources

Federal Grants 10,227$ -$ 10,286$ 4,412$ Food Service 4,867,427 3,948,269 4,320,957 4,893,825

Total Federal Sources 4,877,654$ 3,948,269$ 4,331,243$ 4,898,237$

State Sources:State Grants & Other 20,033,335$ 33,521,492$ 49,113,600$ 45,945,501$ Debt Service 4,677,984 2,263,010 1,243,545 - Captital Projects 4,828 5,079 5,608 5,935 Food Service 1,268,398 2,031,951 1,975,300 2,353,433

Total State Sources 25,984,545$ 37,821,532$ 52,338,053$ 48,304,869$

Local Sources:Local & Intermediate Sources 77,959,137$ 80,024,789$ 71,176,686$ 73,794,586$ Debt Service 20,577,464 23,091,712 28,176,532 29,806,467 Captial Projects 1,114,961 1,421,679 1,385,018 444,318 Food Service 5,380,655 6,035,499 6,114,008 6,246,409

Total Local Sources 105,032,217$ 110,573,679$ 106,852,244$ 110,291,780$

Total Revenues 135,894,416$ 152,343,480$ 163,521,540$ 163,494,886$

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

Continued134

ALLEN INDEPENDENT SCHOOL DISTRICTGOVERNMENTAL FUNDS REVENUES


Fiscal Year


2010 2011 2012 2013 2014 2015

8,212$ 8,595$ 7,769$ 78,511$ 83,309$ 27,758$ 11,026,684 15,040,727 4,741,124 5,088,101 5,734,788 5,770,654 11,034,896$ 15,049,322$ 4,748,893$ 5,166,612$ 5,818,097$ 5,798,412$

44,535,929$ 49,679,765$ 51,094,305$ 48,233,931$ 55,017,628$ 55,463,730$ - - - - - -

12,250 10,777 11,798 12,006 7,104 7,455 1,026,831 846,380 1,495,187 538,772 1,867,867 2,430,139

45,575,010$ 50,536,922$ 52,601,290$ 48,784,709$ 56,892,599$ 57,901,324$

75,514,665$ 77,385,441$ 89,364,104$ 95,383,077$ 99,063,821$ 110,940,473$ 35,694,150 36,514,518 37,404,862 39,534,556 41,435,518 44,451,697

225,322 234,207 170,824 171,280 107,257 65,792 7,838,017 8,468,586 9,164,554 9,459,046 8,558,167 9,661,101

119,272,154$ 122,602,752$ 136,104,344$ 144,547,959$ 149,164,763$ 165,119,063$

175,882,060$ 188,188,996$ 193,454,527$ 198,499,280$ 211,875,459$ 228,818,799$

135

Fiscal Year


2006 2007 2008Expenditures

11 Instruction 63,444,096$ 67,052,192$ 73,532,724$ 12 Instruction Resources and Media Services 1,430,384 1,767,318 2,016,006 13 Curriculum and Instructional Staff Development 1,464,126 1,604,703 2,044,465

Total Function 10 66,338,606 70,424,213 77,593,195

21 Instructional Leadership 876,981 905,664 887,705 23 School Leadership 5,948,992 6,114,671 7,001,629

Total Function 20 6,825,973 7,020,335 7,889,334

31 Guidance, Counseling, and Evaluation Services 4,107,006 4,766,893 5,434,038 32 Social Work Services - - - 33 Health Services 928,021 1,001,320 1,045,104 34 Student (Pupil) Transportation 2,037,263 2,381,102 2,699,388 35 Food Services 4,807,422 4,993,143 5,344,954 36 Extracurricular Activities 2,602,400 2,831,334 2,984,060

Total Function 30 14,482,112 15,973,792 17,507,544

41 General Administration 3,157,158 3,532,541 4,230,789 Total Function 40 3,157,158 3,532,541 4,230,789

51 Facilities Maintenance and Operations 15,341,358 15,607,911 15,610,963 52 Security and Monitoring Services 1,024,689 910,872 909,588 53 Data Processing Services 1,123,285 1,381,849 1,465,588

Total Function 50 17,489,332 17,900,632 17,986,139

61 Community Services 11,669 17,612 2,627 Total Function 60 11,669 17,612 2,627

71 Principal on Long-Term Debt 10,797,646 11,900,119 12,910,230 72 Interest on Long-Term Debt 12,711,726 13,895,378 14,061,098 73 Bond Issuance and Cost Fees 121,679 201,799 162,290

Total Function 70 23,631,051 25,997,296 27,133,618

81 Facilities Acquisition and Construction 24,208,645 17,277,656 31,028,841 Total Function 80 24,208,645 17,277,656 31,028,841

91 Contracted Instrucitonal Services Between Schools - - - 95 Juvenile Justice Alternative Education Programs 87,380 90,115 47,205 99 Other Intergovernmental Charges - - -

Total Function 90 87,380 90,115 47,205

Total Expenditures 156,231,926$ 158,234,192$ 183,419,292$

Capital Expenditures 22,498,532 15,753,812 26,064,822

Debt Service as a Percentage of Noncapital Expenditures 17.7% 18.2% 17.2%

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

136

ALLEN INDEPENDENT SCHOOL DISTRICTGOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO

LAST TEN FISCAL YEARS (UNAUDITED)Fiscal Year


2009 2010 2011 2012 2013 2014 2015

79,247,364$ 83,671,274$ 88,757,376$ 86,314,300$ 91,174,342$ 96,680,379$ 102,805,720$ 2,218,194 2,248,728 2,331,434 2,246,749 2,071,624 2,068,718 2,058,551 2,327,802 2,560,303 2,197,317 1,726,723 2,034,402 2,374,371 2,804,773

83,793,360 88,480,305 93,286,127 90,287,772 95,280,368 101,123,468 107,669,044

1,227,153 1,299,262 1,371,020 1,163,100 1,133,298 1,236,727 1,231,079 7,506,365 7,655,381 8,280,793 8,384,696 8,651,656 8,800,054 9,122,472 8,733,518 8,954,643 9,651,813 9,547,796 9,784,954 10,036,781 10,353,551

6,276,939 6,935,070 7,688,264 7,203,051 7,888,037 8,159,373 8,489,953 - - - - 2,162 32,349 31,173

1,092,138 1,254,287 1,316,229 1,239,406 1,298,504 1,442,710 1,515,808 2,845,668 2,963,569 2,980,458 3,004,312 3,273,898 3,620,461 3,618,464 5,628,028 5,850,534 5,850,502 5,909,100 6,367,093 5,961,732 7,281,083 3,083,147 3,714,039 3,711,782 3,954,200 4,256,023 4,733,721 4,483,675

18,925,920 20,717,499 21,547,235 21,310,069 23,085,717 23,950,346 25,420,156

4,134,621 4,049,536 4,195,289 3,616,048 3,987,468 4,309,157 4,826,176 4,134,621 4,049,536 4,195,289 3,616,048 3,987,468 4,309,157 4,826,176

16,832,368 16,684,887 16,808,009 15,035,919 16,425,661 15,885,134 18,466,983 1,368,487 1,385,716 1,325,884 1,593,554 1,883,829 1,834,706 2,191,400 1,675,468 1,561,995 1,882,848 1,567,811 1,730,807 1,695,441 1,892,891

19,876,323 19,632,598 20,016,741 18,197,284 20,040,297 19,415,281 22,551,274

1,823 121,408 6,931 1,724 2,130 1,991 20,665 1,823 121,408 6,931 1,724 2,130 1,991 20,665

13,094,362 15,965,096 16,165,000 16,065,000 17,035,000 19,100,000 19,225,000 14,599,293 17,181,877 19,601,252 20,571,007 21,716,821 21,969,028 21,718,823

561,687 933,160 535,106 601,790 225,646 193,253 402,363 28,255,342 34,080,133 36,301,358 37,237,797 38,977,467 41,262,281 41,346,186

34,070,054 39,771,614 73,491,076 67,981,542 41,120,797 36,497,399 40,126,517 34,070,054 39,771,614 73,491,076 67,981,542 41,120,797 36,497,399 40,126,517

- - - 581,130 314,083 411,310 776,337 57,308 84,917 42,690 62,149 73,302 40,265 40,449

637,613 698,671 739,107 781,240 856,647 900,480 959,364 694,921 783,588 781,797 1,424,519 1,244,032 1,352,055 1,776,150

198,485,882$ 216,591,324$ 259,278,367$ 249,604,551$ 233,523,230$ 237,948,759$ 254,089,719$

31,256,839 35,527,535 66,187,565 62,521,020 37,368,826 32,430,182 39,123,487

16.9% 18.8% 18.8% 19.9% 19.9% 20.1% 19.2%

137

Fiscal Year


2006 2007 2008Excess of Revenues Over

(Under) Expenditures (20,337,510)$ (5,890,712)$ (19,897,752)$

Other Financing Sources (Uses)Refunding Bonds Issued 6,794,999 25,120,000 - Capital Related Debt Issued (Regular Bonds) 17,330,000 29,810,000 22,315,000 Sale of Real and Personal Property 36,753 890,070 - Transfers In 1,621,078 1,134,398 822,000 Premium Discount on Issuance of Bonds 359,745 492,644 149,938 Transfers Out (Use) (839,888) (220,815) - Other (Uses) (7,006,562) (26,045,255) -

Total Other Financing Sources (Uses) 18,296,125 31,181,042 23,286,938

Net Change in Fund Balance (2,041,385)$ 25,290,330$ 3,389,186$

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

Continued138

ALLEN INDEPENDENT SCHOOL DISTRICTGOVERNMENTAL FUNDS OTHER FINANCING SOURCES AND USES AND


Fiscal Year

NET CHANGE IN FUND BALANCES


2009 2010 2011 2012 2013 2014 2015

(34,990,996)$ (40,709,264)$ (71,089,371)$ (56,150,024)$ (35,023,950)$ (26,073,300)$ (25,270,920)$

- - - - - - - 61,760,000 99,117,100 55,890,000 64,285,000 70,460,936 54,000,000 34,640,000

- - - - 199,163 - - 2,000,668 1,586,398 2,199,140 1,242,024 1,754,522 1,554,310 1,586,697 2,089,081 4,765,657 3,072,059 6,675,086 7,567,142 2,880,499 4,949,001 (405,556) (386,398) (407,233) (342,024) (354,522) (354,310) (386,697)

- (9,415,050) (14,975,432) (22,365,837) (20,840,801) (21,268,775) (44,207,373) 65,444,193 95,667,707 45,778,534 49,494,249 58,786,440 36,811,724 (3,418,372)

30,453,197$ 54,958,443$ (25,310,837)$ (6,655,775)$ 23,762,490$ 10,738,424$ (28,689,292)$

139

Fiscal Year


140

Revenue Capacity Information

141


142

EXHIBIT I-8

Agriculture Commercial & Total TotalFiscal Residential & Farm Industrial Less: Assessed DistrictYear Property Property Property Exemptions Value Rate (2)

2006 3,836,120,629 495,163,441 1,216,605,346 575,911,317 4,971,978,099 1.91246

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 1,314,416,572 9,080,358,311 1.64000

Source: Collin Central Appraisal District

Notes:(1) Represents total appraised value before exemptions.(2) Per $100 of assessed value.

143

Appraised Value (1)

ALLEN INDEPENDENT SCHOOL DISTRICTAPPRAISED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY


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

2006 1.50000 0.41240 1.91240 0.25000 0.08942 0.55900 0.58800 0.31000 0.45350

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

Source: Collin Central Appraisal District

Notes:(1) Includes levies for operating and debt service costs.

-Maintenance and Operations Tax Rate Limitation (imposed by statute and local referendum)

-Debt Service of Limited Tax Bond: $0.50 per $100 assessed valuation of taxable property in the District (Section 20.08, Texas Education Code).

Overlapping Rates (1)

144

Allen ISD Direct Rates

ALLEN INDEPENDENT SCHOOL DISTRICTDIRECT AND OVERLAPPING PROPERTY TAX RATES PER $100 VALUATION


EXHIBIT I-10

Percentage Percentageof Total of Total

Taxable Assessed Taxable AssessedAssessed Taxable Assessed Taxable

Taxpayer Value Rank Value Value Rank ValueAT&T Mobility LLC 146,950,999$ 1 1.62%

The Village at Allen LP 144,273,092 2 1.59%

Watters Creek Owner LLC 107,324,512 3 1.18%

AT&T Services Inc 91,038,581 4 1.00%

Cisco Systems Inc 90,654,841 5 1.00%

Chelsea Allen Development LP 87,299,462 6 0.96% 64,246,753$ 1 1.29%

Centennial Lake Forest LP 44,919,350 7 0.49%

Craig Ranch PT MFA I LP 42,024,294 8 0.46%

BH Benton Pointe Apartments LLC 41,354,800 9 0.46% 29,492,600 7 0.0059318

Creekside Acquisition LP 41,087,335 10 0.45%

Cingular Wireless LLC 46,993,415 2 0.95%

Lexington Allen LP 41,500,000 3 0.83%

TXU Electric Delivery Company 36,964,993 4 0.74%

BES Settler's Gate Fund III LP & ETAL 30,836,874 5 0.62%

Diebold Inc 30,692,559 6 0.62%

Sanmina Corp 25,489,515 8 0.51%

New Cingular Wireless Headquarters LLC 24,840,246 9 0.50%

SW Bell Telephone LP 23,602,670 10 0.47%

836,927,266$ 9.22% 354,659,625$ 7.13%

Source: Collin Central Appraisal District. Notes:

(1) Per $100 of assessed value.

2006 Total Taxable Value 4,971,978,099 2015 Total Taxable Value 9,080,358,311

145

2015 2006

ALLEN INDEPENDENT SCHOOL DISTRICT PRINCIPAL PROPERTY TAX PAYERS

CURRENT AND NINE YEARS AGO (UNAUDITED)

EXHIBIT I-11

Taxes Levied Collection inFiscal for the Percentage Subsequent PercentageYear Fiscal Year Amount of Levy (1) Years Amount of Levy (1)2006 94,752,691 91,412,480 96.47% 3,757,887 95,170,367 100.44%

2007 97,983,156 94,738,291 96.69% 3,496,339 98,234,630 100.26%

2008 90,602,948 92,097,528 101.65% 1,969,401 94,066,929 103.82%

2009 100,223,020 99,160,067 98.94% 1,339,481 100,499,548 100.28%

2010 107,575,361 107,984,128 100.38% 1,466,239 109,450,367 101.74%

2011 111,238,296 111,452,466 100.19% 1,409,799 112,862,265 101.46%

2012 124,473,111 123,529,462 99.24% 1,332,314 124,861,776 100.31%

2013 132,483,600 129,392,237 97.67% 1,343,614 130,735,851 98.68%

2014 138,691,627 136,991,095 98.77% 805,588 137,796,683 99.35%

2015 150,593,761 148,616,905 98.69% - 148,616,905 98.69%

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


146

Year of the LevyCollected Within the Fiscal

Total Collections to Date

Debt Capacity Information

147

EXHIBIT I-12

General Net Total PercentageFiscal Obligation Pension Primary of Personal PerYear Bonds Liability Government (1) Income (2) Capita (2)

2006 257,043,637 - 257,043,637 11.63% 3,940

2007 273,341,808 - 273,341,808 12.10% 3,899

2008 283,356,292 - 283,356,292 11.00% 3,813

2009 332,002,327 - 332,002,327 12.35% 4,247

2010 409,460,425 - 409,460,425 14.11% 5,008

2011 436,795,282 - 436,795,282 13.93% 5,145

2012 468,239,855 - 468,239,855 13.94% 5,333

2013 513,612,989 - 513,612,989 14.14% 5,707

2014 530,154,323 - 530,154,323 14.69% 5,741

2015 506,714,248 17,628,471 524,342,719 13.18% 5,568

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


148


EXHIBIT I-13

EstimatedShare of

Estimated Direct andDebt Percentage Overlapping

Outstanding Applicable (1) Debt

County of Collin 391,410,000 3.20% 12,525,120 Collin College 37,459,999 3.20% 1,198,720 City of Allen 96,450,000 99.50% 95,967,750 City of McKinney 250,660,000 4.78% 11,981,548 City of Parker 6,655,000 7.40% 492,470 City of Plano 300,470,000 2 0.89% 2,674,183 Subtotal, overlapping bonded debt 124,839,791

Allen Independent School District debt outstanding 506,714,248$

Total Direct and Overlapping Debt 631,554,039$

Ratio of (net) general bonded debt to the total assessed property value 6.96%

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.(2) Information not available for 2015. Used Debt Outsanding as of FYE 2014.

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.

149

ALLEN INDEPENDENT SCHOOL DISTRICTDIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT

JUNE 30, 2015 (UNAUDITED)


2006 2007 2008 2009

Debt Limit 497,197,810$ 550,856,109$ 632,306,146$ 684,330,853$

Total Net Debt Applicable to Limit 257,043,637 273,341,808 283,356,292 332,002,327

Legal Debt Margin 240,154,173$ 277,514,301$ 348,949,854$ 352,328,526$

Total Net Debt Applicable to theLimit as a Percentage of Debt Limit 51.70% 49.62% 44.81% 48.51%

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


150


Legal Debt Margin Calculation for Fiscal Year 2015Assessed Value 9,080,358,311$ Debt Limt (10% of Assessed Value) 908,035,831$ Debt Applicable to Limit (506,714,248) Legal Debt Margin 401,321,583$

2010 2011 2012 2013 2014 2015

717,145,793$ 723,417,949$ 738,441,738$ 787,011,193$ 823,438,810$ 908,035,831$

409,460,425 436,795,282 468,239,855 513,612,989 530,154,323 506,714,248

307,685,368$ 286,622,667$ 270,201,883$ 273,398,204$ 293,284,487$ 401,321,583$

57.10% 60.38% 63.41% 65.26% 64.38% 55.80%

151


152

Demographic and Economic Information

153

EXHIBIT I-15

CapitaPersonal Personal Income Unemployment

Fiscal Year Population (1) Income Dollars (2) Rate (3)2006 65,245 2,210,631,090 33,882 4.30%

2007 70,104 2,258,680,776 32,219 3.80%

2008 74,315 2,575,460,640 34,656 4.30%

2009 78,179 2,689,201,242 34,398 8.10%

2010 81,759 2,901,136,356 35,484 7.00%

2011 84,901 3,134,629,821 36,921 6.60%

2012 87,798 3,358,536,894 38,253 6.20%

2013 89,997 3,632,188,923 40,359 5.60%

2014 92,339 3,608,331,103 39,077 4.60%

2015 94,179 3,979,062,750 42,250 3.30%

Sources:(1) Estimated population provided by US Census Bureau(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


154

EXHIBIT I-16

Percentage of Percentage ofTotal City Total City

Employer Employees Rank Employment Employees Rank EmploymentAllen Independent School District 2,210 1 7.0% 1,837 1 12.0%

Experian 865 2 2.7% 669 2 4.4%

Frontier Communications 850 3 2.7% - - -

City of Allen 775 4 2.5% 620 3 4.0%

Texas Health Presbyterian Hospital 670 5 2.1% 305 6 2.0%

Jack Henry & Assoicates 600 6 1.9% 234 8 1.5%

CVE Technology 600 6 1.9% - - -

PFSWeb 450 8 1.4% - - -

Andrew's Distributing 400 9 1.3% - - -

MonkeySports 203 10 0.6% - - -

Sanmina SCI - - - 550 4 3.6%

Sage Telecommunications - - - 512 5 3.3%

RCL Enterprises - - - 254 7 1.7%

Celerity - - - 217 9 1.4%

BSM Financial - - - 200 10 1.3%

Total 7,623 24.1% 5,398 35.2%

Source: Allen Economic Development Corporation provided 2006 and 2015 Principal Employers and TotalLabor ForceNote:2015 Labor Force: 31,5572006 Labor Force: 15,365

155

2015 2006

ALLEN INDEPENDENT SCHOOL DISTRICTPRINCIPAL EMPLOYERS

CURRENT YEAR AND NINE YEARS AGO (UNAUDITED)


156

Operating Information

157


Teachers 2006 2007 2008Substitute 3.0 3.0 0.0

1,021.8 1,065.4 1,116.81,024.8 1,068.4 1,116.8

TeacherTotal Teachers Professional Support

AudiologistCounselor 25.0 30.0 31.0Educational Diagnostician 24.0 23.0 22.0Librarian 17.0 18.0 18.0Occupational Therapist 0.0 3.0 4.0Physical Therapist 0.0 0.0 0.0Certified Orientation & Mobility Specialist 0.0 1.0 1.0School Nurse 19.0 20.0 20.0School Psychologist 4.0 4.0 5.0LSSP Psychologist 0.0 0.0 0.0Speech Therapist/Speech Language Pathologist 15.0 18.0 19.0Teacher Facilitator 5.0 4.0 11.0Athletic Trainer 0.0 0.0 0.0Campus Professional Personnel 1.0 2.0 3.0Non-Campus Professional Personnel 21.0 24.0 26.0

Total Professional Support 131.0 147.0 160.0

Campus AdministrationPrincipal 18.0 18.0 18.0Assistant Principal 28.0 28.0 32.0Instructional Officer 5.0 6.0 6.0Athletic Director 1.0 1.0 1.0

Total Campus Administration 52.0 53.0 57.0Central Administration

Assistant/Associate/Deputy Superintendent 4.0 5.0 4.0Superintendent 1.0 1.0 1.0Director/Executive Directors 0.0 1.0 1.0

Total Central Administration 5.0 7.0 6.0

Educational AidesEducational Aides 173.0 162.0 128.0

Total Educational Aides 173.0 162.0 128.0

Total All Full-Time Equivalent Employees 1,212.8 1,275.4 1,339.8

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


158

Full-time Equivalent Employees


2009 2010 2011 2012 2013 2014 20150.0 3.0 0.0 0.0 0.0 5.0 2.0

1,167.0 1,212.7 1,221.2 1,188.6 1,245.8 1,271.7 1,299.01,167.0 1,215.6 1,221.2 1,188.6 1,245.8 1,276.7 1,301.0

32.0 32.8 34.0 32.9 38.5 42.7 41.723.0 24.8 25.0 22.0 22.5 25.6 24.719.0 18.4 21.0 20.9 21.0 22.0 21.6

4.0 3.4 4.1 4.1 4.1 4.1 4.10.0 0.0 1.3 1.3 1.3 1.8 1.81.0 1.0 0.5 0.5 0.5 0.0 0.0

21.0 22.0 22.4 21.5 22.0 24.0 23.05.0 3.9 5.0 5.0 4.0 0.0 0.00.0 0.0 0.0 0.0 2.0 6.0 6.0

19.0 21.2 21.7 16.2 16.7 25.8 26.928.0 30.5 24.0 19.7 24.8 25.8 28.0

0.0 0.0 2.0 2.0 1.8 2.9 2.92.0 1.4 28.0 23.0 28.1 34.6 35.1

29.0 33.5 28.5 26.5 28.0 26.6 46.0183.0 193.0 217.5 195.6 215.4 241.9 261.8

19.0 23.1 22.0 21.1 21.1 22.1 22.135.0 27.1 35.0 33.4 35.0 34.0 32.17.0 4.8 5.0 4.0 4.0 5.0 4.61.0 1.0 1.0 1.0 1.0 1.0 1.0

62.0 56.0 63.0 59.5 61.1 62.1 59.9

5.0 4.0 4.0 3.0 3.0 3.0 3.01.0 1.0 1.0 1.0 1.0 1.0 1.00.0 1.0 1.0 1.0 1.0 1.0 2.06.0 6.0 6.0 5.0 5.0 5.0 6.0

212.0 195.0 214.3 163.5 122.4 219.2 233.1212.0 195.0 214.3 163.5 122.4 219.2 233.1

1,418.0 1,470.6 1,507.7 1,448.6 1,527.3 1,585.6 1,628.6

159

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

2006 15,885 97,766,099 6,155 2.61% 1,024.8 15.5 12.6%

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%

Source: TEA AEIS Reports, TEA TAPR Reports, and Statement of Revenues, Expenditures, and Changes in Fund Balance - Governmental Funds

ALLEN INDEPENDENT SCHOOL DISTRICTOPERATING STATISTICS


160

EXHIBIT I-19

Minimum Maximum District Average Statewide AverageFiscal Year Salary Salary Salary Salary

2006 38,000 53,287 43,257 41,744

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

Source: TEA AEIS Reports, TEA TAPR Reports, and District Records

ALLEN INDEPENDENT SCHOOL DISTRICTTEACHER BASE SALARIES


Page 161


Building 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015HIGH SCHOOLS

Allen (1999)Square Footage 647,674 647,674 647,674 647,674 873,967 873,967 873,967 873,967 873,967 873,967Capacity 4,800 4,800 4,800 4,800 5,325 5,325 5,325 5,325 5,325 5,325Enrollment 3,378 3,623 3,613 3,637 3,671 3,836 3,986 4,137 4,411 4,537Percentage of Capacity Currently in Use 70.38% 75.48% 75.27% 75.77% 68.94% 72.04% 74.85% 77.69% 82.84% 85.20%

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 1,267 1,133 1,218 1,236 1,335 1,402 1,396 1,546 1,565 1,572Percentage of Capacity Currently in Use 71.38% 63.83% 68.62% 69.63% 75.21% 78.99% 78.65% 87.10% 88.17% 88.56%

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 927 827 833 875 857 878 955 865 895 877Percentage of Capacity Currently in Use 84.27% 75.18% 75.73% 79.55% 77.91% 79.82% 86.82% 78.64% 81.36% 79.73%

Curtis (1994)Square Footage 186,681 186,681 186,681 186,681 186,681 186,681 186,681 211,511 211,511 211,511Capacity 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,550 1,550 1,550Enrollment 854 670 710 747 726 838 1,000 1,073 1,094 1,191Percentage of Capacity Currently in Use 77.64% 60.91% 64.55% 67.91% 66.00% 76.18% 90.91% 69.23% 70.58% 76.84%

Ereckson (2004)Square Footage 244,614 244,614 244,614 244,614 244,614 244,614 272,386 272,386 272,386 272,386Capacity 1,100 1,100 1,100 1,100 1,100 1,100 1,550 1,550 1,550 1,550Enrollment 825 863 912 992 1,076 1,091 1,115 1,140 1,147 1,156Percentage of Capacity Currently in Use 75.00% 78.45% 82.91% 90.18% 97.82% 99.18% 71.94% 73.55% 74.00% 74.58%

ALLEN INDEPENDENT SCHOOL DISTRICTSCHOOL BUILDING INFORMATION


162Continued

EXHIBIT I-20ELEMENTARY SCHOOLS Page 2 of 4

Rountree (1974)Square Footage 78,800 78,800 78,800 78,800 78,800 78,800 78,800 89,800 89,800 89,800Capacity 700 700 700 700 700 700 700 725 725 725Enrollment 631 580 554 542 558 531 523 502 527 558Percentage of Capacity Currently in Use 90.14% 82.86% 79.14% 77.43% 79.71% 75.86% 74.71% 69.24% 72.69% 76.97%

Boyd (1978)Square Footage 81,750 81,750 81,750 112,412 112,412 112,412 112,412 114,812 114,812 114,812Capacity 700 700 700 950 950 950 950 950 950 950Enrollment 625 582 609 603 597 587 732 742 746 715Percentage of Capacity Currently in Use 89.29% 83.14% 87.00% 63.47% 62.84% 61.79% 77.05% 78.11% 78.53% 75.26%

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 626 686 663 688 573 543 502 521 571 608Percentage of Capacity Currently in Use 76.81% 84.17% 81.35% 84.42% 70.31% 66.63% 61.60% 63.93% 70.06% 74.60%

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 862 825 815 758 729 647 675 606 537 526Percentage of Capacity Currently in Use 101.41% 97.06% 95.88% 89.18% 85.76% 76.12% 79.41% 71.29% 63.18% 61.88%

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 720 686 630 587 582 548 532 520 514 506Percentage of Capacity Currently in Use 84.71% 80.71% 74.12% 69.06% 68.47% 64.47% 62.59% 61.18% 60.47% 59.53%

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 764 776 784 741 764 702 653 614 700 681Percentage of Capacity Currently in Use 89.88% 91.29% 92.24% 87.18% 89.88% 82.59% 76.82% 72.24% 82.35% 80.12%

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 515 527 634 629 603 549 567 583 583 568Percentage of Capacity Currently in Use 60.59% 62.00% 74.59% 74.00% 70.94% 64.59% 66.71% 68.59% 68.59% 66.82%

Continued163


Anderson (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 880 941 941 934 648 637 628 655 606 597Percentage of Capacity Currently in Use 103.53% 110.71% 110.71% 109.88% 76.24% 74.94% 73.88% 77.06% 71.29% 70.24%

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 806 774 808 764 792 786 696 677 678 625Percentage of Capacity Currently in Use 94.82% 91.06% 95.06% 89.88% 93.18% 92.47% 81.88% 79.65% 79.76% 73.53%

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 598 761 874 666 750 558 581 631 683 699Percentage of Capacity Currently in Use 70.35% 89.53% 102.82% 78.35% 88.24% 65.65% 68.35% 74.24% 80.35% 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 806 867 936 956 841 868 903 891 807 782Percentage of Capacity Currently in Use 84.84% 91.26% 98.53% 100.63% 88.53% 91.37% 95.05% 93.79% 84.95% 82.32%

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 637 785 872 906 937 757 779 776 789 767Percentage of Capacity Currently in Use 67.05% 82.63% 91.79% 95.37% 98.63% 79.68% 82.00% 81.68% 83.05% 80.74%

Chandler (2006)Square Footage 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 950Enrollment 521 581 635 673 712 693 713 675 681Percentage of Capacity Currently in Use 54.84% 61.16% 66.84% 70.84% 74.95% 72.95% 75.05% 71.05% 71.68%

Evans (2008)Square Footage 119,074 119,074 119,074 119,074 119,074 119,074 119,074Capacity 950 950 950 950 950 950 950Enrollment 556 729 788 838 884 627 626Percentage of Capacity Currently in Use 58.53% 76.74% 82.95% 88.21% 93.05% 66.00% 65.89%

Continued164


Olson (2009)Square Footage 119,074 119,074 119,074 119,074 119,074 119,074Capacity 950 950 950 950 950 950Enrollment 637 710 692 702 789 780Percentage of Capacity Currently in Use 67.05% 74.74% 72.84% 73.89% 83.05% 82.11%

Cheatham (2010)Square Footage 119,074 119,074 119,074 119,074 119,074Capacity 950 950 950 950 950Enrollment 754 916 988 639 676Percentage of Capacity Currently in Use 79.37% 96.42% 104.00% 67.26% 71.16%

Lindsey (2013)Square Footage 119,074 119,074Capacity 950 950Enrollment 678 832Percentage of Capacity Currently in Use

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 61,172Athletics (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 5 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) 12 13 13 14 15 16 16 16 17 17

Service Center (1985)Square Footage 31,840 31,840 31,840 31,840 31,840 31,840 31,840 31,840 31,840 31,840

165


166

COMPLIANCE AND FEDERAL AWARDS SECTION

167


168

169



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, 2015, 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 9, 2015.

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.

170

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.


171



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, 2015. 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-ProfitOrganizations. 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, 2015.

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.

172

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 overcompliance 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, 2015

173

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:IDEA - Part B, Cluster, 84.027A & 84.173A

8. The dollar threshold used to distinguish between Type A and Type B programs was$300,000.

9. Auditee was determined to be a low-risk auditee.

ALLEN INDEPENDENT SCHOOL DISTRICT Schedule of Status of Prior Findings


174

Program Status

- NONE -

ALLEN INDEPENDENT SCHOOL DISTRICT Corrective Action Plan


175

Program Corrective Action Plan

- NONE -

EXHIBIT J-1ALLEN INDEPENDENT SCHOOL DISTRICT

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSFOR THE YEAR ENDED JUNE 30, 2015

(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

765,995ESEA, Title I, Part A - Improving Basic Programs 84.010A $15610101057950151,875ESEA, Title II, Part A, Teacher/Principal Training 84.367A 15694501057950143,385Title III, Part A - English Language Acquisition 84.365A 15671001057950

Total Passed Through Education Service Center, Region 10 1,061,255$Passed Through State Department of Education

2,792,625*IDEA - Part B, Formula 84.027A $15660001043901660041,216*IDEA - Part B, Preschool 84.173A 156610010439016610

2,833,841Total Special Education Cluster (IDEA)

120,537Career and Technical - Basic Grant 84.048A 1542000604390111,066Summer School LEP 84.369A 69551402

Total Passed Through State Department of Education 2,965,444$

TOTAL U.S. DEPARTMENT OF EDUCATION 4,026,699$

U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICESPassed Through Education Service Center, Region 10

87,945Head Start 93.600 $06CH7092Total Passed Through Education Service Center, Region 10 87,945$

TOTAL U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 87,945$

U.S. DEPARTMENT OF AGRICULTUREPassed Through the State Department of Agriculture

173,076School Breakfast Program 10.553 $714015011,510,692National School Lunch Program 10.555 713015011,683,768Total Child Nutrition Cluster

Total Passed Through the State Department of Agriculture 1,683,768$

TOTAL U.S. DEPARTMENT OF AGRICULTURE 1,683,768$

TOTAL EXPENDITURES OF FEDERAL AWARDS 5,798,412$

*Denotes Major Program.

176

ALLEN INDEPENDENT SCHOOL DISTRICT Notes to Schedule of Expenditures of Federal Awards


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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 of accounting recognizes revenues in the accounting period in which they becomes susceptible to accrual, i.e., both measurable and available, and expenditures in the accounting period in which the fund liability is incurred. Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and, accordingly, when such funds are received, they are recorded as deferred 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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