United ISD 2011

Comprehensive Annual Financial Report

For The Year Ended August 31, 2011

Roberto J. Santos Superintendent of Schools 201 Lindenwood Drive Laredo, Texas 78045 (956) 473-6201 http://www.uisd.net/

United Independent School District

UUNNIITTEEDD IINNDDEEPPEENNDDEENNTT SSCCHHOOOOLL DDIISSTTRRIICCTT Laredo, Texas

CCOOMMPPRREEHHEENNSSIIVVEE AANNNNUUAALL FFIINNAANNCCIIAALL RREEPPOORRTT

Year Ended August 31, 2011

Prepared by: The Division of Finance

UNITED INDEPENDENT SCHOOL DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT

FOR THE YEAR ENDED AUGUST 31, 2011

TABLE OF CONTENTS

INTRODUCTION SECTION

Letter of Transmittal .......................................................................................................................... 1 GFOA Certificate of Achievement .................................................................................................... 10 Principal UISD Official’s .................................................................................................................. 11 Organizational Chart .......................................................................................................................... 12 Certificate of Board ........................................................................................................................... 14

FINANCIAL SECTION

Independent Auditors’ Report ........................................................................................................... 17 Management’s Discussion and Analysis ........................................................................................... 21 Basic Financial Statements: Government-wide Financial Statements:

Statement of Net Assets ............................................................................................................. 33 Statement of Activities ............................................................................................................... 34

Fund Financial Statements: Balance Sheet – Government Funds .......................................................................................... 36 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets ......................................................................................................................................... 39 Statement of Revenues, Expenditures and Changes in Fund Balances –

Government Funds................................................................................................................ 40 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund

Balances of Governmental Funds to the Statement of Activities ......................................... 43 Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget

and Actual - General Fund .................................................................................................... 44 Statement of Net Assets - Proprietary Funds ............................................................................. 45 Statement of Revenues, Expenditures, and Changes in Fund Net Assets -

Proprietary Funds.................................................................................................................. 46 Statement of Cash Flows - Proprietary Funds ........................................................................... 47 Statement of Fiduciary Net Assets - Fiduciary Funds ............................................................... 49

Notes to the Financial Statements................................................................................................... 53 Combining and Individual Fund Statements and Schedules:

Combining Balance Sheet – Non-major Governmental Funds ...................................................... 88 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances –

Non-major Governmental Funds ............................................................................................... 96 Statement of Changes in Assets and Liabilities - Agency Fund ..................................................... 104

Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual: Enterprise Fund ............................................................................................................................ 105 Debt Service Fund ........................................................................................................................ 106

Texas Education Agency – Required Schedules: Schedule of Delinquent Taxes Receivable ................................................................................... 109 Schedule of Expenditures for Computations of Indirect Costs for 2009-2010

General and Special Revenue Funds ......................................................................................... 111 Fund Balance and Cash Flow Worksheet – General Fund ............................................................ 112

UNITED INDEPENDENT SCHOOL DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT


TABLE OF CONTENTS

FINANCIAL SECTION continued… Capital Assets Used in the Operation of Governmental Funds:

Investment in Governmental Funds Capital Assets by Source ..................................................... 115 Schedule by Function and Activity .............................................................................................. 116 Schedule of Changes in General Fixed Assets ............................................................................. 122

STATISTICAL SECTION

Financial Trends Information: Net Assets by Component .............................................................................................................. 134 Expenses, Program Revenues, and Net (Expense)/Revenue .......................................................... 136 General Revenues and Total Changes in Net Assets ...................................................................... 138 Fund Balances, Governmental Funds ............................................................................................. 140 Governmental Funds Revenues ...................................................................................................... 142 Changes in Fund Balances and Debt Service Ratio ........................................................................ 144 Local Revenues by Source, Governmental Funds .......................................................................... 146

Revenue Capacity Information: Assessed Value and Actual Value of Taxable Property ................................................................. 148 Property Tax Rates - Direct and Overlapping Governments .......................................................... 150 Principal Property Taxpayers ......................................................................................................... 152 Property Tax Levies and Collections .............................................................................................. 153

Debt Capacity Information: Ratios of Outstanding Debt by Type .............................................................................................. 154 Legal Debt Margin Information...................................................................................................... 156 Direct and Overlapping Governmental Activities Debt ................................................................. 158

Demographic and Economic Information: Demographic and Economic Statistics ........................................................................................... 159 Principal Employers ....................................................................................................................... 160

Operating Information: Full-time Equivalent District Employees by Type ......................................................................... 161 Full-time Equivalent District Employees by Function ................................................................... 162 Teacher Base Salaries ..................................................................................................................... 163 Measures of Capacity ..................................................................................................................... 164

FEDERAL AWARDS SECTION

Independent Auditors' Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards .......................................................................................... 169

Independent Auditors' Report on Compliance with Requirements Applicable To each Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133 .............................................................................................................................. 171

Schedule of Findings and Questioned Costs ...................................................................................... 173 Summary Schedule of Prior Audit Findings ...................................................................................... 175 Schedule of Expenditures of Federal Awards .................................................................................... 176 Notes on Accounting Policies for Federal Awards ............................................................................ 178

United Independent School District Division of Finance

201 Lindenwood Drive, Laredo, Texas 78045 (956) 473-6368, Fax (956) 473-6403

[email protected] December 15, 2011 Board of Trustees United Independent School District 201 Lindenwood Drive Laredo, Texas 78045 Dear Board Members: We are pleased to present the United Independent School District (the District) Comprehensive Annual Financial Report (CAFR) for the year ending August 31, 2011. The report was prepared by the Division of Finance-Accounting Department. Responsibility for the accuracy and fairness of the financial information and disclosures contained in the report rests solely with this division. The District’s annual audited financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information are presented in conformity with requirements established by the Texas Education Agency in their Financial Accountability Systems Resource Guide. The District’s independent auditors were Pattillo, Brown & Hill, L.L.P. and their opinion letter is hereby made a part of this report. The report as submitted to the Texas Education Agency has been modified to conform to the reporting format required by the Government Finance Officers Association. In addition, the Management’s Discussion and Analysis section is an integral part of the CAFR and can be found on page 21. Texas law requires that each public school district in the state undergo an annual audit conducted by an independent audit firm. This audit must be done in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. The audit must also comply with the requirements of the U.S. Office of Management and Budget Circular A-133, “Audits of States, Local Governments, and Non-Profit Organizations,” and other grantors regulations. The goal of the independent audit was to provide reasonable assurance that the financial statements of United Independent School District for fiscal year ended August 31, 2011, are free of material misstatement and are presented in conformity with generally accepted accounting principles (GAAP). The independent auditor’s report can be found on page 17.

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CAFR for the Year Ended August 31, 2011

Profile of the Government The District is a political subdivision and is an independent reporting entity as defined by the Governmental Accounting Standards Board Statement No. 14 (GASB 14). The District is located in Webb County, Texas and serves a population of approximately 251,096 persons and provides services to a large portion of the City of Laredo. The District was established in 1961 and “united” three small school districts that were in existence at the time. These were Cactus School District, which was located 28 miles north of Laredo on the Callaghan Ranch, Johnson School District, which was located in South Laredo on state highway 83, and Nye School District, located on the northern edge of the City of Laredo. The District currently comprises north and southeast Laredo, as well as, 75 percent of Webb County covering 2,448 square miles and is considered one of the fastest growing public school districts in the state of Texas. During the last several years, the District’s enrollment has risen from 39,447 students in 2007-2008 to 41,323 students in 2010-2011. Current projections show the District’s student enrollment will continue to grow by approximately 700 students per year for the next four years. The District is made up of 27 Elementary Schools (Pre-Kinder to 5th Grade), 9 Middle Schools (Grades 6, 7 and 8th), 4 High Schools (Grades 9, 10, 11 and 12th), 3 Magnet Schools (Grades 9-12th), 1 Alternative Education Center, and 4 Odessyware recovery and prevention programs. The student population of the District in 2010-2011 was primarily Hispanic American (96.4%), The remaining population consisted of White Americans (2.5%), African American (0.3%), Native America (0.1%) and Asian/Pacific Islanders (0.7%). The policy-making functions of the District lie with a seven-member Board of Trustees (the Board), each of which is elected from a single-member district for three-year staggered terms. The Board receives funding from local, state and federal source entities. However, the Board is not included in any other reporting entity as defined by GASB 14. This report contains all funds pertaining to the District. Serving without compensation, Board members establish the policies by which schools operate. In carrying out the task of setting policy, the board identifies needs and establishes priorities for the school system, allocates financial and human resources among the priority areas and evaluates school performance. On an annual basis, the District presents the Board of Trustees with the proposed budgets for the General Operating Fund, the Debt Service Fund, and the Food Service Fund for approval as required by the Texas Education Code and as described in the Texas Education Agency’s Financial Accountability Systems Resource Guide. The proposed budget is presented to the Board summarized at the function level for each of the funds above. The Board is required to hold a public hearing on the proposed budget and to adopt a final budget no later than August 31, the close of the District’s fiscal year. After adoption of the budget, the appropriation amounts are entered into the District’s

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accounting and encumbrance system and monitoring of the expenditures and encumbrances in relation to the approved budget begins. Budget managers have the authority to approve budget transfers anytime during the year. A budget transfer is the movement of appropriations between budget line items within the same function. Any request to move appropriations between budget line items to different functions is considered a budget amendment. Any budget amendment requested by budget managers requires Board approval. Expenditure requests will not be processed unless appropriations are available in the line item. The District feels that the budgetary controls currently in place are adequate to ensure that expenditures remain within the approved budget and that the District complies with regulations established by the Texas Education Code and the Financial Accountability Systems Resource Guide. The District evaluates the existing system of internal controls annually through self-evaluation, internal auditing and the annual independent financial and compliance audit. Internal controls are designed to provide reasonable, but not absolute, assurance regarding: 1) the safeguarding of assets against loss from authorized use or disposition; and 2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that: 1) the cost of controls should not exceed benefits expected to be derived; and 2) the evaluation of costs and benefits requires estimates and judgments by management. Academics play a significant role in the lives of our students. Our campuses offer a wide variety of courses in all academic areas, including gifted and talented and advanced placement courses at our high schools. The District continues to support existing programs such as career/technology and expanding programs such as the Science, Business, and Engineering Magnet Schools. The focal point of this year’s budget is on instruction with budgeted expenditures for students and teachers making up over 76% of the General Fund budget. The District budgeted $220,740,084 for the 2010-2011 school year on instructional and instructional related service funds. This represents 72% of the District’s operating budget for the 2010-2011 fiscal year. With the difficulty in accessing the city’s few libraries, some campuses have become hubs for learning and reading through Library Nights, Family Reading Nights, Picnic Up a Good Book and Read, and Bibliotherapy. Technology Linking the Community program fosters technological literacy in parents and to the community through classes offered at several campuses. In addition, the District funds the several college readiness programs which helps provide training for students from grades 6 – 12 on college preparatory materials and issues. Some of the critical factors it offers are introducing the idea of college at a very early age, and encourages parental involvement through its FUNdamentals of College Admissions Program that helps families make decisions about college. The Texas Education Agency developed a completely reconceived testing program in academic year 2002-2003. In the sixth year of implementation, the Texas Assessment of

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Knowledge and Skills (TAKS) continues to reflect good instructional practices and more accurately measures student learning. United Independent School District is proud to say it met the requirements for a Recognized status from the State of Texas. For Fiscal Year 2011-2012, the Texas Education Agency will implement a new assessment tool for Texas school districts. STAAR, State of Texas Assessments of Academics Readiness, will encompass end-of-course exams at the high school level that will replace TAKS. Due to the continued growth the District is experiencing, the number of teachers with less than five years teaching experience makes up more than 35.7% of the total teachers in the District. The District sustains a teacher mentor program, called “Pathfinders of the 21st Century”, which provides role models of effective instructional strategies for those teachers new to the profession. The District believes the Pathfinder program has had a positive impact on the TAKS test. Factors Affecting Financial Condition

Federal Government

On Feb. 13, 2009, Congress passed the American Recovery and Reinvestment Act (ARRA) of 2009 which was signed it into law four days later. A direct response to the economic crisis, the Recovery Act has three immediate goals, (1) Create new jobs as well as save existing ones, (2) Spur economic activity and invest in long-term economic growth, and (3) Foster unprecedented levels of accountability and transparency in government spending. These funds total over $20,695,336 for United ISD. To date, United ISD has spent all ARRA funds.

State Government

The 81st Texas Legislature, 2009, passed House Bill 3646 which increase state funding for public schools guaranteeing each school a minimum annual increase of $120 per student in weighted average daily attendance (ADA) using the ARRA funds that President Obama had set up for government agencies as a stabilization application. In anticipation that the Texas stabilization application would be approved, state lawmakers appropriated State Fiscal Stabilization Funds (SFSF), along with $30 billion of state funds, to finance the Foundation School Program (FSP) formula changes of HB 3646. The SFSF appropriation amounts to less than 3% of a local education agency’s (LEA) total state and local FSP funding. For 2010-2011 the District received $6.7 million in SFSF Foundation School Funds and $5.1 million in SFSF Available School Funds.

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Local Economy Employment and the Labor Force Laredo is considered the “Gateway to Mexico” and is a strategically positioned land port that connects Mexico’s principle highway and railroad with U.S. rail lines and U.S. Interstate 35, which services Texas seaports and northern U.S. states. International trade, transportation, retail trade, oil and gas, and tourism continue to play a major role in the Laredo/Webb County area economy. Laredo’s economy reaches the over 6,000,000 people from Monterrey, Mexico and the surrounding areas. Laredo is fastest growing city east of the Rocky Mountains and the most competitive NAFTA crossing into Mexico. Webb County continues to show growth in population and industry, with the majority of the growth situated within the boundaries of the District. The top ten employers in the area consist of one medical service facilities, one grocery/retail store, one fast food restaurant, one call center and six government institutions including the City of Laredo, the County of Webb, Laredo ISD, United ISD, Texas A&M International University, and the Laredo Sector Border Patrol. Together, these employers provide jobs for over 22,690 people. The population in the Laredo/Webb County area was estimated to have reached over 233,152 persons for the year 2009 according to the Laredo Development Foundation. Forecasts by the Texas Water Development Board show the population reached 235,937 in 2010. The area felt the effect of the peso devaluation in 1995 and 1996 with the unemployment rate rising into the double-digit range. However, the economy in Mexico has stabilized and the unemployment rate in the Laredo area is the lowest on the U.S. – Mexican border currently at 9.3%. This is a noticeable increase of 85% over the average of the past 5 years of 5.0%. The industries in the area showing the most gains were transportation, public utilities, communications, and the government sector. The “maquiladora” companies in the area continue to cause the manufacturing process to shift into Mexico, with the United States side benefiting from increased freight forwarding, transportation, and warehousing services. International Trade Webb County, Texas is located on the border where U.S. Highway 35 meets the Mexico border across from Nuevo Laredo, Tamaulipas, Mexico. International bridges I and II are located between Laredo and Nuevo Laredo and international bridge III is located between Laredo and the city of Colombia, Mexico. International bridge IV is in the northwest portion of Laredo and is used primarily for freight transportation purposes. The opening of this fourth bridge has helped alleviate the traffic congestion that was being experienced at the other three bridges. The Laredo City Council, as well as the County of Webb, have instructed their administrations to move forward with the application process, in conjunction with Mexico, for a fifth international bridge for non-commercial use.

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With its proximity to Mexico, the area’s largest factor on the local economy continues to be the trade between the United States and Mexico. Laredo is the number one inland port along the US-Mexico border crossing over $261.1 billion in imports and export according to the Laredo Development Foundation. The North American Free Trade Agreement (NAFTA) continues to provide Laredo with tremendous growth in freight forwarding, freight transportation and freight storage industries. Imports and exports between the United States and Mexico passing through the Laredo area have risen steadily over the last five years. Over 700 of Fortune 1,000 companies do international business via Laredo. The international bridges crossed over 2,181,268 trucks and 458,559 loaded rail cars along with 419.5 million pounds of air freight in 2010. This “traffic” has spurred increases in other industries such as retail sales, construction and government. Oil and Gas Industry The oil and gas industry continues to be a factor in the Webb County/District economy. In prior years, with the District being considered a rural school district, mineral values made up a substantial portion of the total property values for the District. The Eagle Ford Shale hydrocarbon production is a major oil and gas undertaking located in the North Western part of the District. This production has significant importance due to its capability of producing both gas and more oil than other traditional shale plays. The shale play trends across Texas from the Mexican border up into East Texas, roughly 50 miles wide and 400 miles long with an average thickness of 250 feet according to the Texas Railroad Commission With the majority of the growth in the Laredo area occurring in our District, the mineral portion of values is approximately 9.5% of the total assessed valuation of the District and is expected to increase over the next ten years due to the Eagle Ford Shale production. Retail Industry The retail industry continues to have a major effect on the economy of the Webb County/District area. In 2010, the retail industry continued to provide more jobs than any other industry located in the area, accounting for approximately 28,700 jobs. Laredo’s Wal-Mart has the highest sales per square foot in the nation. In addition, the total assessed valuation for real commercial property made up almost 19.3% of the District’s entire assessed property valuation, second only to residential single family units. The retail industry is projected to stay strong if population projections remain as they are. Banking Industry The banking industry in the Webb County/District area remains strong with eleven financial institutions operating in the county/district. Bank of America and First National Bank opened to the public in 2010. The banking industry has combined total assets of over $3.8 trillion.

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Long-term Facilities Planning The District is growing at a rate of about 700 students per year. As such, classrooms must be provided to accommodate this growth. A long-range facility master plan developed by administration includes a projected district-wide enrollment increase of 1,100 students over the next three years. The District is projected to be at 43,116 students for school year 2015-2016. Faced with the challenge of providing a quality education for increasing numbers of students, the Board of Trustees invited community members to explore options for dealing with this growth. A 100 member Blue Ribbon Committee, composed of parents, District patrons and community members, was appointed by the Board. After conducting demographic studies, needs assessments, and considering the District’s growth, the Blue Ribbon Committee presented its recommendations on how to handle the District’s growth. In May of 2007, the constituents of United ISD did not pass a bond election of approximately $400 million. The Board of Trustees along with the community will determine when it is most appropriate to call for a new bond election. The majority of the funds will be for new construction and additions/renovations to existing schools and other facilities. The remaining portion of funds will be used for instructional technology which includes network wiring/infrastructure and additional equipment designed to aid students and teachers in the learning process. However, the District did issue $17.4 million in Qualified School Construction Bonds in 2009 through the American Recovery and Reinvestment Tax Act of 2009. UISD will use these funds to replace and upgrade fire detection and alarm systems, HVAC replacements, electrical and lighting systems upgrades, roof replacements, ADA compliance renovations and repair the District’s original athletic complex.

Debt Service Debt Service is a major area of cost due to the District’s building program which is primarily financed by the sale of general obligation bonds. The Texas Education Code (TEC) authorizes the District to issue negotiable coupon bonds to construct, acquire, or equip school buildings, to purchase necessary sites, or to acquire or refinance property financed under a contract entered into under the Public Property Finance Act. The District is further authorized to levy and assess annual ad valorem taxes sufficient to pay the principal and interest on the bonds as they become due. The District’s primary objective in debt management is to keep the level of indebtedness within available resources and within legal debt limitations. All bond elections are held in accordance with statutory requirements and bonds are issued and taxes are levied in compliance with Sections 45.001, 45.003(b)(1), and 45.003(e) of the Texas Education Code.

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The District refunded $35,180,000 of outstanding bonds by issuing new bonds of $34,000,000. The District will benefit from this refunding with a net present value savings of $2,411,370, 6.85%, with a True Interest Cost (TIC) of 2.85%. As of August 31, 2011, the District had $284,644,889 of School Building Unlimited Tax Bonds, Capital Appreciation Bonds and Public Property Finance Contractual Obligations, with maturities extending into the year 2035. The District’s Debt Service fund balance is $4,943,715 as of August 31, 2011.

Fiduciary Operations The District maintains the fiduciary responsibility of monitoring the individual campus’ student activity funds. The District ensures that proper control over cash is maintained and that all procedures are in accordance with TEA’s Financial Accountability Systems Resource Guide. As of August 31, 2011, total assets for student activity funds were $1,512,040.

Certificates of Achievement and Excellence The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to United Independent School District for its comprehensive annual financial report for the fiscal year ended August 31, 2010. This was the twelfth consecutive year that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. In addition, the District received the GFOA’s Distinguished Budget Presentation Award for its annual budget document for fiscal year 2010-2011. This is the ninth consecutive year the award has been received. In order to qualify for the Distinguished Budget Presentation Award, the government’s budget document was judged to be proficient in several categories, including as a policy document, a financial plan, an operations guide, and a communications device.

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Acknowledgments Preparation of the Comprehensive Annual Financial Report takes dedication and commitment by staff members district-wide. The Division of Finance would like to thank the following personnel for the time and effort given to the preparation of this report: Executive Administration Mr. Roberto J. Santos, Superintendent of Schools

Mr. Eduardo Zuñiga, CPA, Associate Superintendent for Student Support Services Ms. Pamela Juarez, Associate Superintendent for Instruction Mr. David Garcia, Assistant Superintendent for Human Resources Mr. Enrique Rangel, Assistant Superintendent for Facilities/Construction/StudentServices Ms. Laida P. Benavides, CPA, Assistant Superintendent for Business and Finance Division of Finance Mr. Samuel D. Flores, Director of Accounting Mr. Robert Chapa, Director of Risk Management Ms. Consuelo Gonzalez, Director of Fixed Assets Ms. Norma Farabough, Tax Assessor/Collector Ms. Rosa I. Cabello, Accounting Manager Ms. Belinda E. Salazar, Budget Manager Ms. Elsa Pena, Senior Accountant Ms. Terry Veliz, Budget Accountant Ms. Irene G. Ruiz, Staff Accountant Mr. Mario Gonzalez, Staff Accountant Mr. Joe Martinez, Staff Accountant Ms. Janie Leal, Executive Secretary We would especially like to thank the District’s Board of Trustees for their time, dedication and support to the District and its personnel and our independent auditors, Pattillo, Brown & Hill, L.L.P. for their assistance in the preparation of this report. __________________________ ___________________________________ Samuel D. Flores Laida P. Benavides, CPA Director of Accounting Asst. Superintendent for Business/Finance

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UUUNNNIIITTTEEEDDD IIINNNDDDEEEPPPEEENNNDDDEEENNNTTT SSSCCCHHHOOOOOOLLL DDDIIISSSTTTRRRIIICCCTTT

PRINCIPAL DISTRICT OFFICIALS

Board of Trustees

Judd Gilpin, President Juan Roberto Ramirez, Vice-President

Ricardo Rodriguez, Secretary Ricardo Molina Sr., Parliamentarian

Pat Campos, Member Juan A. Molina Jr., Member Javier Montemayor, Member

Administrators

Roberto J. Santos, Superintendent Eduardo Zuñiga, CPA, Associate Superintendent Student Support Services

Pamela Juarez, Associate Superintendent of Curriculum and Instruction Laida P. Benavides, CPA, Assistant Superintendent for Business & Finance

Enrique Rangel, Assistant Superintendent of Facilities, Construction & Student Services David Garcia, Assistant Superintendent for Human Resources

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United Independent School District Organizational Chart

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CERTIFICATE OF BOARD

United Independent School District Webb 240-903 Name of School District County Co. – District Number We, the undersigned, do hereby certify that the attached annual financial reports of the above

named school district were reviewed and X approved -- disapproved for the year ended

August 31, 2011 at a meeting of the board of school trustees of such school district on the 14th

day of December, 2011.

Signature of Board Secretary Signature of Board President


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IndependentAuditors' Report

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Management’s Discussion and Analysis

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MANAGEMENT’S DISCUSSION AND ANALYSIS UNAUDITED

In this section of the Comprehensive Annual Financial Report, we, the managers of United Independent School District, discuss and analyze the District’s financial performance for the fiscal year ended August 31, 2010. Please read it in conjunction with the independent auditors report on page 17, and the District’s Basic Financial Statements which begin on page 33. FINANCIAL HIGHLIGHTS

The District’s net assets increased by $30,655,311 as a result of this year’s operations. Net assets of our business-type activities increased by $860,151, by 28.7%, and net assets of our governmental activities increased by $29,795,160, or 22.4%. The most significant items that affected this change in net assets were decrease in interest expense of $4,866,275, increase in State Formula Funding of $7,772,864, increase of $1,672,664 in local tax collections and a decrease in noncurrent liabilities of $16,956,034.

Revenues for governmental activities increased by $17,390,555. The majority of this increase comes from receiving $7,149,48 from the Education Jobs Fund, a Medicaid reimbursement of $2,078,020 and cost saving measures implemented by District’s Board of Trustees and Management which produced savings in excess of $14,870,000. The District’s business-type activities combined revenues increased to $23,001,380, by 9%, while expenses increased to $22,141,230, slightly over 5% from last year.

The General Fund reported a fund balance this year of $102,662,832, an increase of $6,048,760

from last year. Again, this increase is accounted for by the funds received from the Education Jobs Fund, Medicaid reimbursement and controlled spending by the District’s Board of Trustees. More information is detailed in the accompanying notes to the financial statements.

In addition, the District refunded $35,180,000 of outstanding bonds by issuing new bonds of $34,000,000. The District will benefit from this refunding with a net present value savings of $2,411,370, 6.85%, with a True Interest Cost (TIC) of 2.85%.

The remaining Capital Projects Funds of $1,360,124 were fully expended in fiscal year 2010-2011.

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 District’s annual report consists of the management’s discussion and analysis and the basic financial statements only. The District did not report any data under the required supplementary information. The basic financial statements include two kinds of statements that present different views of the District:

The first two statements are government wide financial statements that provide both long-term and short-term information about the District’s overall financial status. They provide information about the activities of the District as a whole and reflect the flow of total economic resources in a manner similar to the financial reports of a business enterprise.

The remaining statements are fund financial statements that focus on individual parts of the

government, reporting the District’s operations in more detail than the government-wide statements.

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o The governmental funds statements tell how general government services were financed

in the short-term as well as what remains for future spending. o Proprietary fund statements offer short- and long-term financial information about the

activities the government operates like businesses, such as the food service enterprise fund.

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

The financial statements also include notes starting on page 53 that provide narrative explanations or additional data needed for full disclosure in the government-wide statements or the fund financial statements. The combining statements for non-major funds contain even more information about the District’s individual funds. These are not required by TEA. The sections labeled TEA Required Schedules and Federal Awards Section contain data used by monitoring or regulatory agencies for assurance that the District is using funds supplied in compliance with the terms of grants. Reporting the District as a Whole The Statement of Net Assets and the Statement of Activities The analysis of the District’s overall condition and operation begins on page 33. The government-wide statements report information about the activities of the District as a whole using accounting methods similar to those used by private-sector companies. The Statement of Net Assets includes all of the District’s assets and liabilities at the end of the year while the Statement of Activities includes all the revenues and expenses generated by the District’s operations during the year regardless of when cash is received or paid. The District’s revenues are divided into those provided by outside parties who share the costs of some programs such as tuition received from students from outside the District and grants provided by the U.S. Department of Education to assist children with disabilities or from disadvantaged backgrounds (program revenues), and revenues provided by the taxpayers or by TEA in equalization funding processes (general revenues). All the District’s assets are reported whether they serve the current year or future years. Liabilities are considered regardless of whether they must be paid in the current or future years. The two government-wide statements report the District’s net assets and how they have changed. Net assets – the difference between the District’s assets and liabilities – are one way to measure the District’s financial health or financial position. Over time, increase or decrease in the District’s net assets is an indicator of whether its financial health is improving or deteriorating, respectively. To fully assess the overall health of the District, however, you should consider non-financial factors as well, such as changes in the District’s average daily attendance or its property tax base and the condition of the District’s facilities. In the Statement of Net Assets and the Statement of Activities, we divide the District into two kinds of activities:

Government Activities – Most of the District’s basic services are reported here, including the instruction, counseling, co-curricular activities, transportation, maintenance, and general administration. Property taxes and state and federal grants finance most of these activities.

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Business – type activities – The District charges a fee to “customers” to help it cover all or most of the costs of services it provides in the Child Nutrition Program.

Reporting the District’s Most Significant Funds Fund Financial Statements The Fund Financial Statements begin on page 36 and provide detailed information about the District’s most significant funds – not the District as a whole. Laws and contracts require the District to establish some funds, such as grants received under the No Child Left Behind Act, from the U.S. Department of Education and such as bond covenants. The District’s administration establishes many other funds to help it control and manage money for particular purposes (like campus activities). The District’s three kinds of funds – governmental, proprietary, and fiduciary – use different accounting approaches.

Governmental funds – Most of the district’s basic services are reported in the governmental funds. These use modified accrual accounting (a method that measures the receipt and disbursement of cash and all other financial assets that can be readily converted to cash) and report balances that are available for future spending. The governmental fund statements provide a detailed short-term view of the District’s general operations and the basic services it provides. We describe the differences between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds in reconciliation schedules C2 and C4 located on pages 39 and 43 respectively following each of the fund financial statements.

Proprietary funds – The District reports the activities for which it charges users in proprietary funds using the same accounting methods employed in the Statement of Net Assets and the Statement of Activities. In fact, the District’s enterprise fund (one category of proprietary funds) is the business-type activities reported in the government-wide statements with more detail and additional information, such as cash flows.

Fiduciary funds – The District is the trustee, or fiduciary, for certain funds. It is also responsible for other assets that – because of a trust arrangement – can be used only for their intended purposes. All of the District’s fiduciary activities are reported in a separate Statement of Fiduciary Net Assets on page 49. We exclude these activities from the District’s government-wide financial statements because the District cannot use these assets to finance its operations.

FINANCIAL ANALYSIS OF THE DISTRICT AS A WHOLE Our analysis focuses on the net assets (Table A-1) and changes in net assets (Table A-2) of the District’s governmental and business-type activities. The most significant items that affected this change in net assets were decrease in interest expense of $4,866,275, increase in State Formula Funding of $7,772,864, increase of $1,456,798 in local tax collections and a decrease in noncurrent liabilities of $16,956,034. The Net Assets from our business-type activities increased by $860,152 for the year. This increase is mainly due to charges for services in the District’s school lunch and breakfast programs.

23


Total Percentage

Change

Current Assets:Cash and Cash Equivalents 105.7$ 114.6$ 3.0$ 1.9$ 108.7$ 116.6$ -6.7%Current Investments 7.0 - - - 7.0 - 100.0%Property Taxes Receivable 7.9 7.8 - - 7.9 7.8 1.0%

Allowance for Uncollectible Taxes (2.1) (2.9) - - (2.1) (2.9) -26.9%

Due from Other Governments 17.8 6.3 0.8 0.6 18.6 7.0 166.8%

Accrued Interest 0.0 - - - 0.0 - 100.0%Internal Balances 0.001 (0.11) (0.001) 0.11 - - 0.0%Due from Fiduciary Funds 0.010 - - - 0.0 - 0.0%Other Receivables, net 0.4 0.43 0.034 0.026 0.4 0.5 -13.2%Inventories - Supp. and materials 0.3 0.3 0.5 0.4 0.8 0.7 9.0%Prepaid Expenses 0.5 0.5 - - 0.5 0.5 0.0%

Total Current Assets: 137.5$ 127.0$ 4.3$ 3.1$ 141.8$ 130.2$ 8.9%

Noncurrent Assets:

Capital Assets 536.8$ 512.2$ 4.2$ 4.2$ 541.0$ 516.4$ 4.8%Less Accum. depreciation (198.5) (180.5) (3.9) (3.7) (202.4) (184.2) 9.9%Total Noncurrent Assets 338.3$ 331.7$ 0.3$ 0.5$ 338.6$ 332.2$ 1.9%

Restricted Assets 0.1$ 0.1$ -$ -$ 0.1$ 0.1$ 100.0%

Total Assets 475.8$ 458.8$ 4.7$ 3.6$ 480.5$ 462.4$ 3.9%

Current Liabilities: - A/P and accrued liabilities 3.8$ 4.3$ 0.4$ 0.1$ 4.2$ 4.5$ -5.5%Short-term Debt Payable - - 0.04 0.09 0.0 0.1 -53.7%P/R Deductions & W/holding 0.5 0.1 0.5 0.1 386.7%Accrued Wages Payable 12.3 10.2 0.3 0.2 12.5 10.5 20.0%Due to other Government 6.67 4.15 6.7 4.2 60.7%Due to student groups 0.03 0.02 - 0.0 -100.0%Accrued Expense 0.10 0.07 0.1 0.1 35.2%Unearned Revenues 0.4 0.4 0.12 0.10 0.5 0.5 17.3%Payable from Restricted Assets 0.1 0.5 0.1 0.5 -75.3%

Total Current Liabilities 23.9 19.7 0.9 0.5 24.7 20.3 21.9%

Non-Current Liabilities:Due Within One Year 20.5 20.2 20.5 20.2 1.2%Due in More Than One Year 269.0 286.2 0.1 0.1 269.1 286.3 -6.0%

Total Liabilities 313.3$ 326.2$ 0.9$ 0.6$ 314.3$ 326.8$ -3.8%

53.1$ 48.6$ 0.4$ 0.4$ 53.5$ 49.0$ 9.2% Restricted for:Restricted Federal & State Programs 0.4 0.4 0.4 0.4 6.6%

15.9 19.3 15.9 19.3 -18.0%13.0 23.4 13.0 23.4 -44.3%

Restricted for Other Purposes 0.8 1.6 0.8 1.6 100.0%79.2 39.4 3.4 2.6 82.6 42.0 96.8%

Total Net Assets 162.4$ 132.6$ 3.8$ 3.0$ 166.2$ 135.6$ 22.5%Unrestricted Net Assets

2011-20102011 2010 2011 2010

Restricted for Capital Projects

Net assets:

2011 2010

Invested in capital assets, Net Debt

Restricted for Debt Service Fund

Table A-1

Business-type Activities

Governmental Activities

Total

Changes in United Independent School District's Net Assets(In millions of dollars)

24


In 2011, the District’s total revenues increased by $17.4 million. A significant portion, 48.0% of the District’s revenue comes from State Aid Formula funding, 26.5% comes from property taxes, while another 22.6% is received from operating grants (Figure A-1). The total cost of all programs and services was $390.0 million; Over 82% of these costs are for instructional and student services (Table A-2).

The District took actions this year to compensate for increases in costs due to a growing student population.

The appropriation by the State of $11.7 million in State Fiscal Stabilization Funds (SFSF) depicted in the financial statements section under Fund 266, page 97.

An increase in restricted operating grants of $8.3 million of ARRA funds also assisted the District

with the additional costs associated with a growing student population of over 1,270 students from the prior year.

The District implemented a purchasing deadline to address savings in order to redirect

expenditures where necessary.

The primary reason for the increase in expenses for business-type activities was due to normal increases in salaries and wages as well as serving more student meals by Food Service Operations.

Table A-2 outlines the District’s changes in revenues and expenses.

State Aid48.0%

Property Taxes26.5%

Operating Grants22.6%

Other2.9%

Sources of Revenues for Fiscal Year 2011Figure A - 1

25


Total Percentage

Change

Program RevenuesCharges for service 1.7$ 1.6$ 3.1$ 3.1$ 4.8$ 4.7$ 1.9%

71.8 64.4 19.9 18.9 91.7 83.3 10.1%

General Revenues

Property Taxes 111.9 109.9 - - 111.9 109.9 1.8%State Aid - formula 201.8 194.0 - - 201.8 194.0 4.0%

3.3 2.3 - - 3.3 2.3 46.0%Investment Earnings 0.3 0.5 0.003 0.01 0.3 0.5 -48.7%Other 6.9 8.5 - - 6.9 8.5 -18.8%

Total Revenues 397.6$ 381.3$ 23.0$ 21.9$ 420.6$ 403.2$ 4.3%

211.0$ 219.3$ -$ -$ 211.0$ 219.3$ -3.7%7.2 5.9 - - 7.2 5.9 22.3%

1.5 1.9 - - 1.5 1.9 -20.1%Instructional Leadership 8.1 7.7 - - 8.1 7.7 4.7%School Leadership 23.8 20.8 - - 23.8 20.8 14.7%

13.4 13.4 - - 13.4 13.4 0.1%Social Work Services 2.0 1.9 - - 2.0 1.9 5.9%Health Services 3.9 3.9 - - 3.9 3.9 -1.7%Student transportation 15.5 14.3 - - 15.5 14.3 8.3%Food Services 1.1 1.4 22.1 21.1 23.2 22.5 3.3%Co/Extracurricular Activities 10.0 9.5 - - 10.0 9.5 5.0%General Administration 9.9 10.4 - - 9.9 10.4 -5.0%Plant Maintenance & Oper. 35.3 36.1 - - 35.3 36.1 -2.3%Security & Monitoring Svcs. 6.5 6.5 - - 6.5 6.5 0.0%Data Processing Services 2.8 2.6 - - 2.8 2.6 7.9%Community Services 0.6 0.6 - - 0.6 0.6 0.0%Debt Services 13.6 18.1 - - 13.6 18.1 -24.9%

0.1 0.2 - - 0.1 0.2 -66.7%1.5 1.4 - - 1.5 1.4 100.0%

Total Expenses 367.8$ 376.0$ 22.1$ 21.1$ 390.0$ 397.1$ -1.8%

Change in Net Assets 29.8$ 5.2$ 0.86$ 0.85$ 30.6$ 6.10$ N/A

Net Assets -- Beginning 132.6$ 127.4$ 2.9$ 2.1$ 135.5$ 129.5$ 4.7%Net Assets -- Ending 162.4$ 132.6$ 3.8$ 2.9$ 166.2$ 135.6$ 22.6%

Webb County Apopraisal District

InstructionInstructional Resources and Media

Curriculum Dev./Instructional Staff Dev.

Guidance/Counseling/Evaluation Srvs

Juvenile Justice Alt. Education Prg.

Grants and Contributions not Restricted

2011 2010 2011 2010

Operating Grants and Contributions

2011 2010 2011-2010

Table A-2



Total

Changes in United Independent School District's Revenues and Expenses(In millions of dollars)

26


Table A-3 presents the cost of each of the District’s largest functions, as well as, each function’s net cost (total cost less fees generated by the activities and intergovernmental aid). The net cost reflects funding by state revenues as well as local tax dollars.

FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS As the District completed the year, its governmental funds (as presented in the balance sheet on pages 36 and 37) reported a combined fund balance of $108.8 million, which is greater than last year’s total of $103.2 million. The main contributing factor for this increase was cost saving measures implemented by District’s Board of Trustees and Management which produced savings in excess of $14,870,000. Revenues from governmental fund types totaled $397.6 million an increase of $16.3 million over last year’s revenue. The majority of this increase comes from receiving $7,149,483 from the Education Jobs Fund and a Medicaid reimbursement of $2,078,020. The District’s business-type activities combined revenues increased to $23,001,380, by 9%, while expenses increased to $22,141,230, slightly over 5% from last year. General Fund Budgetary Highlights Over the course of the year, the Board of Trustees revised the District’s budget several times. These budget amendments fall into three categories:

The first category includes amendments and supplemental appropriations that were approved shortly after the beginning of the year and reflect the actual beginning balances (versus the amounts we estimated in August 2010). These amendments are not a part of the original budget adopted by the Board of Trustees before the beginning of the 10-11 Fiscal Year. These amendments included $4.6 million in outstanding encumbrances at the end of August 31, 2010.

The second category includes changes that the Board made during the fiscal year, one of which addressed the need to amend the District’s budget by $4.1 million for an equity transfer to the Debt Service Fund to cover bond payments. The Board also amended the budget for $10.9 million from Designated (now committed) Fund Balance to purchase or construct a warehouse, transportation compound, and land for future school sites. Another amendment allocated $3.3 million to purchase four additional parcels of land for future school sites. In addition, an amendment was made at the end of the year to add $16.9 million to state program budgeted

% Change % Change

Instruction & Instruction Related 219.8$ 227.1$ -3.2% 168.0$ 178.4$ -5.9%Instructional and School Leadership 31.9 28.5 12.0% 26.1 23.5 11.1%Plant Maintenance & Operations 35.3 36.1 -2.3% 33.4 34.5 -3.1%Debt Service - Interest & Fiscal Charges 13.6 18.1 -24.9% 11.9 16.5 -27.6%

20102010 2011

Table A-3

Total Cost of Services

Net Cost of Services

Net Cost of Selected District Functions(In millions of dollars)

2011-20102011 2011-2010

27


revenues and appropriated payroll expenditures to recognize the state’s contribution to the Teacher Retirement System of Texas (TRS) on-behalf of the District’s employees.

The third category involved amendments moving funds from programs that did not need all the

resources originally appropriated to them to programs with resource needs. Even with these adjustments, the General Fund actual expenditures were $39.8 million below the final budget amount. The most significant positive variances resulted from savings of approximately $14.9 million in budgeting for staff for full employment for positions that were vacant for some portion of the year, a land purchase budget of $9.5 million of which only $5.6 was spent, unspent funds of $5.9 million in outstanding encumbrances, and $14.4 million from capital acquisition funding and construction projects not completed by year end. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets At the end of 2011, the District had $338.7 million invested in a broad range of capital assets (net of depreciation), including land, equipment, buildings, and vehicles (Table A-4).

On November 22, 2003, the District’s constituents voted for a $142,000,000 bond issue. To date, all available bonds have been issued and spent. The District issued $17,440.000 in Qualified School Construction Bond (QSCB’s) in 2010 through the American Recovery and Reinvestment Act of 2009 for the renovation of various school facilities. The majority of the Construction in Progress from table A-4 is due to the unspent QSCB’s funding. More detailed information about the District’s capital assets is presented in Note F to the Financial Statements on page 67.

Total Percentage

Change

2011 2010 2011 2010 2011 2010 2011-2010

Land 35.6$ 30.0$ -$ -$ 35.6$ 30.0$ 18.7%Buildings 442.8 429.7 0.1 0.1 442.9 429.8 3.0%Vehicles 25.8 24.2 0.9 0.9 26.6 25.1 6.0%Furniture & Equipment 19.3 18.2 3.3 3.3 22.6 21.5 5.4%Other - C.I.P. 13.3 10.0 - - 13.3 10.0 32.5%Totals 536.8$ 512.2$ 4.3$ 4.2$ 541.1$ 516.4$ 4.8%

Total accumulated depreciation (198.5)$ (180.5)$ (3.9)$ (3.7)$ (202.4)$ (184.2)$ 9.9%Net capital assets 338.3$ 331.7$ 0.4$ 0.5$ 338.7$ 332.2$ 2.0%

Table A-4



Total

United Independent School District's Capital Assets(In millions of dollars)

28


Long Term Debt At the end of the year, the District had $288.3 million in bonds and notes outstanding as shown in Table A-5. The District’s current ratings for general obligation bonds are “AA-” by Fitch and “Aa2” with Moody’s, as well as, an “A+” with Standard & Poor’s. More detailed information about the District’s debt is presented in the Note G to the Financial Statements page 69.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES The District’s appointed officials considered many factors when setting the fiscal year 2012 budget and tax rates. One major factor is the District’s student population growth. The District’s 2011-2012 enrolment is expected to be 42,264, an increase of 1.5% from the previous year. The City of Laredo continues to experience moderate growth as it has had over the past couple of years. The 79th Legislature for the State of Texas passed HB1 which required all school districts to adopt an M&O tax rate at 66.67% of its 2005-2006 tax rate for the 2007-2008 fiscal year. As a result, United Independent School District’s M&O tax rate decreased from $1.379 to $0.92. However, HB1 gave authority to the Board of Trustees to increase this rate an additional $0.04 over a two year period with an additional $0.06 increase not to exceed the calculated rollback rate for 2007-2008, which allows UISD to have an M&O tax rate of $1.04. The Board elected to adopt the same tax rate of $1.19 for fiscal year 2010-2011, with a maintenance and operations tax rate to $1.04 and debt service tax rate of $0.15. In addition, HB1 guaranteed school districts would not lose revenue as a result of this tax rate reduction. In fact, United Independent School District was able to adopt a balanced budget for the General Fund for 2012. In order to keep the tax rate at the minimum necessary to meet debt service requirements for 2011-2012, the Board of Trustees is contemplating to transfer $3.3 million from the General Fund fund balance to Debt Service fund balance. The District is confident that this decision will not affect the level of required fund balance in neither the General Fund nor Debt Service Fund.

Total Percentage

Change

2011 2010 2011 2010 2011 2010 2011-2010

Bonds Payable 284.6$ 299.9$ -$ -$ 284.6$ 299.9$ -5.1%Notes and Leases Payable 3.6 5.2 0.05 0.1 3.7 5.3 -29.9%

Total bonds, notes and leases payable 288.3$ 305.1$ 0.05$ 0.1$ 288.3$ 305.2$ -5.5%

Table A-5

Business-type

Activities


Total

United Independent School District's Long Term Debt(In millions of dollars)

29


Increased wages and salaries caused virtually all of the increase in budgeted expenditures. In 2011, all major capital projects were completed. The QSCB’s funds will be used to complete the maintenance projects as listed in the capital improvement plan. The District will use the General Operating Fund to continue to meet any additional needs due to student growth (expected over 600 students). These indicators were taken into account when adopting the General Fund budget for 2011-2012. Amounts available for appropriation in the General Fund budget are $294.9 million. State revenues will increase as the student population increases. The District will use its revenues to finance programs we currently offer. Furthermore, the District will continue to pursue an instructional facilities needs assessment plan that will address the need for new instructional facilities throughout the District. If these estimates are realized, the District’s budgetary fund balance of the general fund is not expected to change by the close of 2011-2012. CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the money it receives. If you have questions about this report, or need additional financial information, contact the District’s Finance Division, at United Independent School District, 201 Lindenwood, Laredo, Texas 78045 or visit us at www.uisd.net.

30


Basic Financial Statements

31



32


EXHIBIT A-1UNITED INDEPENDENT SCHOOL DISTRICT

STATEMENT OF NET ASSETSAUGUST 31, 2011

1 2 3

Control

Data

CodesGovernmental

Activities Activities

Type

Business

Total

Primary Government

ASSETS3,047,920 105,692,435 108,740,355 Cash and Cash Equivalents $ $ $1110

- 7,000,000 7,000,000 Current Investments1120

- 7,887,875 7,887,875 Property Taxes Receivable (Delinquent)1220

- (2,149,280) (2,149,280)Allowance for Uncollectible Taxes1230

757,758 17,836,774 18,594,532 Due from Other Governments1240

- 105 105 Accrued Interest1250

(1,330)1,330 - Internal Balances1260

- 10,000 10,000 Due from Fiduciary Funds1267

34,447 362,363 396,810 Other Receivables, net1290

511,684 267,144 778,827 Inventories1300

- 540,699 540,699 Prepaid Expenses1410

Capital Assets:

- 35,625,932 35,625,932 Land1510

26,498 272,798,881 272,825,379 Buildings, Net1520

383,727 16,611,460 16,995,187 Furniture and Equipment, Net1530

- 13,268,609 13,268,609 Construction in Progress1580

- 50,000 50,000 Restricted Assets1800

Total Assets1000 475,804,326 4,760,704 480,565,030

LIABILITIES417,914 3,798,010 4,215,924 Accounts Payable2110

40,895 - 40,895 Short Term Debt Payable2120

- 477,195 477,195 Payroll Deductions & Withholdings2150

274,261 12,273,752 12,548,013 Accrued Wages Payable2160

- 6,671,839 6,671,839 Due to Other Governments2180

- 29,475 29,475 Due to Student Groups2190

- 101,102 101,102 Accrued Expenses2200

123,413 409,634 533,047 Unearned Revenues2300

- 119,377 119,377 Payable from Restricted Assets2400

Noncurrent Liabilities

- 20,463,587 20,463,587 Due Within One Year2501

50,199 269,004,833 269,055,031 Due in More Than One Year2502

Total Liabilities2000 313,348,804 906,682 314,255,486

NET ASSETS

362,526 53,135,091 53,497,617 Invested in Capital Assets, Net of Related Debt3200

Restricted for: - 385,718 385,718 Restricted for Federal and State Programs3820

- 15,869,821 15,869,821 Restricted for Debt Service3850

- 13,029,962 13,029,962 Restricted for Capital Projects3860

- 788,297 788,297 Restricted for Other Purposes3890

3,491,497 79,246,633 82,738,130 Unrestricted Net Assets3900

Total Net Assets3000 162,455,522 3,854,022 166,309,544 $ $ $

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

33


UNITED INDEPENDENT SCHOOL DISTRICTSTATEMENT OF ACTIVITIES


Control

Data

CodesExpenses Services

Charges for

Contributions

Grants and

Operating

Program Revenues

431

Primary Government:GOVERNMENTAL ACTIVITIES:

50 211,042,761 51,717,957 Instruction $ $ $11

- 7,224,018 1,946,549 Instructional Resources and Media Services12

- 1,530,017 1,611,391 Curriculum and Staff Development13

- 8,066,447 3,916,569 Instructional Leadership21

- 23,836,381 1,892,481 School Leadership23

- 13,434,198 2,538,377 Guidance, Counseling and Evaluation Services31

- 2,018,124 106,804 Social Work Services32

- 3,870,111 261,715 Health Services33

- 15,465,438 1,767,223 Student (Pupil) Transportation34

3,608 1,052,070 1,020,229 Food Services35

1,654,913 10,021,031 99,040 Extracurricular Activities36

- 9,917,718 440,818 General Administration41

- 35,292,525 1,847,115 Plant Maintenance and Operations51

- 6,479,893 322,960 Security and Monitoring Services52

- 2,822,259 172,309 Data Processing Services53

- 632,155 474,772 Community Services61

- 13,174,257 1,665,160 Debt Service - Interest on Long Term Debt72

- 440,118 - Debt Service - Bond Issuance Cost and Fees73

- 3 - Capital Outlay81

- 50,000 - Juvenile Justice Alternative Ed. Prg.95

- 1,462,974 - Webb County Appraisal District99

367,832,499 1,658,571 71,801,468 [TG] Total Governmental Activities:

BUSINESS-TYPE ACTIVITIES:3,123,567 22,141,230 19,875,091 Enterprise Fund - National School Breakfast&Lunch35

22,141,230 3,123,567 19,875,091 [TB] Total Business-Type Activities:

[TP] TOTAL PRIMARY GOVERNMENT: 389,973,729 4,782,138 91,676,559 $ $ $

DataControlCodes

General Revenues:Taxes:

Property Taxes, Levied for General PurposesM T

Property Taxes, Levied for Debt ServiceDT

State Aid - Formula GrantsSF

Grants and Contributions not RestrictedGC

Investment EarningsIE

Miscellaneous Local and Intermediate RevenueMI

Total General RevenuesTR

Net Assets--Beginning

Change in Net Assets

Net Assets--Ending

CN

NB

NE


34


EXHIBIT B-1

Net (Expense) Revenue and

Activities Activities

Business Type

Total

Governmental

Changes in Net Assets

6 7 8

Primary Government

- (159,324,754) (159,324,754)$ $ $

- (5,277,469) (5,277,469)

- 81,373 81,373

- (4,149,878) (4,149,878)

- (21,943,900) (21,943,900)

- (10,895,821) (10,895,821)

- (1,911,320) (1,911,320)

- (3,608,396) (3,608,396)

- (13,698,215) (13,698,215)

- (28,233) (28,233)

- (8,267,078) (8,267,078)

- (9,476,900) (9,476,900)

- (33,445,410) (33,445,410)

- (6,156,933) (6,156,933)

- (2,649,950) (2,649,950)

- (157,383) (157,383)

- (11,509,097) (11,509,097)

- (440,118) (440,118)

- (3) (3)

- (50,000) (50,000)

- (1,462,974) (1,462,974)

(294,372,460) - (294,372,460)

857,429 - 857,429

- 857,429 857,429

(294,372,460) 857,429 (293,515,031)

- 97,390,939 97,390,939

- 14,501,237 14,501,237

- 201,783,637 201,783,637

- 3,300,945 3,300,945

2,722 253,033 255,755

- 6,937,828 6,937,828

324,167,619 2,722 324,170,341

29,795,159

132,660,362

162,455,522 $

860,151

2,993,871

3,854,022 $

30,655,311

135,654,233

166,309,544 $

35


UNITED INDEPENDENT SCHOOL DISTRICT

BALANCE SHEET

GOVERNMENTAL FUNDS

AUGUST 31, 2011

Control

Data

Codes

General

Fund Fund

EducationJobs

40

Fund

Debt Service

5010

ASSETS - 101,120,055 3,395,478 Cash and Cash Equivalents $ $ $1110

- 5,000,000 2,000,000 Investments - Current1120

- 6,820,519 1,067,356 Property Taxes - Delinquent1220

- (1,827,113) (322,167)Allowance for Uncollectible Taxes1230

7,152,771 2,382,191 - Receivables from Other Governments1240

- - - Accrued Interest1250

- 14,391,382 - Due from Other Funds1260

- 362,363 - Other Receivables1290

- 267,144 - Inventories1300

- 540,699 - Deferred Expenditures1410

- - - Restricted Assets1800

Total Assets1000 129,057,239 7,152,771 6,140,669 $ $ $

LIABILITIES AND FUND BALANCES

Liabilities: - 3,415,081 - Accounts Payable $ $ $2110

- 477,195 - Payroll Deductions and Withholdings Payable2150

- 11,572,660 - Accrued Wages Payable2160

7,152,771 - - Due to Other Funds2170

- 6,098,023 552,607 Due to Other Governments2180

- - - Due to Student Groups2190

- 101,102 - Accrued Expenditures2200

- 4,610,969 644,347 Deferred Revenues2300

- 119,377 - Payable from Restricted Assets2400

Total Liabilities2000 26,394,407 7,152,771 1,196,954

Fund Balances:

Nonspendable Fund Balance: - 267,144 - Inventories3410

- 540,699 - Prepaid Items3430

Restricted Fund Balance: - 4,929,962 - Capital Acquisition and Contractural Obligation3470

- 10,926,106 4,943,715 Retirement of Long-Term Debt3480

Committed Fund Balance: - 6,100,000 - Construction3510

- 2,000,000 - Capital Expenditures3530

Assigned Fund Balance: - 125,000 - Self-Insurance3580

- - - Other Assigned Fund Balance3590

- 77,773,921 - Unassigned Fund Balance3600

Total Fund Balances3000 102,662,832 - 4,943,715

Total Liabilities and Fund Balances4000 129,057,239 7,152,771 6,140,669 $ $ $


36


EXHIBIT C-1

Other

Funds Funds

Governmental

Total

1,176,902 105,692,435 $ $ - 7,000,000 - 7,887,875 - (2,149,280)

8,301,811 17,836,774 105 105

22,825 14,414,207 - 362,363 - 267,144 - 540,699

50,000 50,000

9,551,643 151,902,322 $ $

382,929 3,798,010 $ $ - 477,195

701,092 12,273,752 7,250,106 14,402,877

21,209 6,671,839 29,475 29,475

- 101,102 117,816 5,373,132

- 119,377

8,502,627 43,246,760

- 267,144 - 540,699

- 4,929,962 - 15,869,821

- 6,100,000 - 2,000,000

- 125,000 1,049,015 1,049,015

- 77,773,921

1,049,015 108,655,562

9,551,643 151,902,322 $ $

37



38


EXHIBIT C-2UNITED INDEPENDENT SCHOOL DISTRICT

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

AUGUST 31, 2011

108,655,562 $Total Fund Balances - Governmental Funds

25,311,882 1 Capital assets used in governmental activities are not financial resources and therefore 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 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 $512,222,580 and the accumulated depreciation was $180,486,243. In

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 $512,222,580 and the accumulated depreciation was $180,486,243. In addition, long-term liabilities, including bonds payable, Public Property Finance Contractual Obligations (PPFCO's), leases and Loan Star proceeds totaled

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 $512,222,580 and the accumulated depreciation was $180,486,243. In addition, long-term liabilities, including bonds payable, Public Property Finance Contractual Obligations (PPFCO's), leases and Loan Star proceeds totaled $305,120,801 and other long-term liabilities of $1,303,654 are not due and payable in the

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 $512,222,580 and the accumulated depreciation was $180,486,243. In addition, long-term liabilities, including bonds payable, Public Property Finance Contractual Obligations (PPFCO's), leases and Loan Star proceeds totaled $305,120,801 and other long-term liabilities of $1,303,654 are not due and payable in the current period, and, therefore, are not reported as liabilities in the funds. The net effect

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 $512,222,580 and the accumulated depreciation was $180,486,243. In addition, long-term liabilities, including bonds payable, Public Property Finance Contractual Obligations (PPFCO's), leases and Loan Star proceeds totaled $305,120,801 and other long-term liabilities of $1,303,654 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-

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 $512,222,580 and the accumulated depreciation was $180,486,243. In addition, long-term liabilities, including bonds payable, Public Property Finance Contractual Obligations (PPFCO's), leases and Loan Star proceeds totaled $305,120,801 and other long-term liabilities of $1,303,654 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 assets.

41,531,532 2 Current year capital outlays of $24,700,014 ($20,832,731 from facilities acquisition and Current year capital outlays of $24,700,014 ($20,832,731 from facilities acquisition and construction, with the remaining $3,867,283 coming from the various other functions) Current year capital outlays of $24,700,014 ($20,832,731 from facilities acquisition and construction, with the remaining $3,867,283 coming from the various other functions) and long-term debt principal payments of $52,569,100, amotization of premiums in the

Current year capital outlays of $24,700,014 ($20,832,731 from facilities acquisition and construction, with the remaining $3,867,283 coming from the various other functions) and long-term debt principal payments of $52,569,100, amotization of premiums in the amount of $364,406, recognize the accounting loss on the refunding of $2,727,432 and reductions of $5,332,833of other liabilities are expenditures in the fund financial

Current year capital outlays of $24,700,014 ($20,832,731 from facilities acquisition and construction, with the remaining $3,867,283 coming from the various other functions) and long-term debt principal payments of $52,569,100, amotization of premiums in the amount of $364,406, recognize the accounting loss on the refunding of $2,727,432 and reductions of $5,332,833of other liabilities are expenditures in the fund financial statements, but they should be shown as increases in capital assets and reductions in

Current year capital outlays of $24,700,014 ($20,832,731 from facilities acquisition and construction, with the remaining $3,867,283 coming from the various other functions) and long-term debt principal payments of $52,569,100, amotization of premiums in the amount of $364,406, recognize the accounting loss on the refunding of $2,727,432 and reductions of $5,332,833of other liabilities 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 retirement of capital

Current year capital outlays of $24,700,014 ($20,832,731 from facilities acquisition and construction, with the remaining $3,867,283 coming from the various other functions) and long-term debt principal payments of $52,569,100, amotization of premiums in the amount of $364,406, recognize the accounting loss on the refunding of $2,727,432 and reductions of $5,332,833of other liabilities 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 retirement of capital assets of $124,517, and the issuance of Refunding Bonds in the amount of $34,000,000,

Current year capital outlays of $24,700,014 ($20,832,731 from facilities acquisition and construction, with the remaining $3,867,283 coming from the various other functions) and long-term debt principal payments of $52,569,100, amotization of premiums in the amount of $364,406, recognize the accounting loss on the refunding of $2,727,432 and reductions of $5,332,833of other liabilities 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 retirement of capital assets of $124,517, and the issuance of Refunding Bonds in the amount of $34,000,000, the premium on the refunding bonds of $4,339,921, the accretion on Capital

Current year capital outlays of $24,700,014 ($20,832,731 from facilities acquisition and construction, with the remaining $3,867,283 coming from the various other functions) and long-term debt principal payments of $52,569,100, amotization of premiums in the amount of $364,406, recognize the accounting loss on the refunding of $2,727,432 and reductions of $5,332,833of other liabilities 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 retirement of capital assets of $124,517, and the issuance of Refunding Bonds in the amount of $34,000,000, the premium on the refunding bonds of $4,339,921, the accretion on Capital Appreciation Bonds $2,047,579, and the accumulation of other benefits of $3,650,237 in

Current year capital outlays of $24,700,014 ($20,832,731 from facilities acquisition and construction, with the remaining $3,867,283 coming from the various other functions) and long-term debt principal payments of $52,569,100, amotization of premiums in the amount of $364,406, recognize the accounting loss on the refunding of $2,727,432 and reductions of $5,332,833of other liabilities 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 retirement of capital assets of $124,517, and the issuance of Refunding Bonds in the amount of $34,000,000, the premium on the refunding bonds of $4,339,921, the accretion on Capital Appreciation Bonds $2,047,579, and the accumulation of other benefits of $3,650,237 in the financial statements should be as decreases in capital assets and increases in long-

Current year capital outlays of $24,700,014 ($20,832,731 from facilities acquisition and construction, with the remaining $3,867,283 coming from the various other functions) and long-term debt principal payments of $52,569,100, amotization of premiums in the amount of $364,406, recognize the accounting loss on the refunding of $2,727,432 and reductions of $5,332,833of other liabilities 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 retirement of capital assets of $124,517, and the issuance of Refunding Bonds in the amount of $34,000,000, the premium on the refunding bonds of $4,339,921, the accretion on Capital Appreciation Bonds $2,047,579, and the accumulation of other benefits of $3,650,237 in the financial statements should be as decreases in capital assets and increases in long-term debt in the government-wide financial statements. The net effect of including the

Current year capital outlays of $24,700,014 ($20,832,731 from facilities acquisition and construction, with the remaining $3,867,283 coming from the various other functions) and long-term debt principal payments of $52,569,100, amotization of premiums in the amount of $364,406, recognize the accounting loss on the refunding of $2,727,432 and reductions of $5,332,833of other liabilities 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 retirement of capital assets of $124,517, and the issuance of Refunding Bonds in the amount of $34,000,000, the premium on the refunding bonds of $4,339,921, the accretion on Capital Appreciation Bonds $2,047,579, and the accumulation of other benefits of $3,650,237 in the financial statements should be as decreases in capital assets and increases in long-term debt in the government-wide financial statements. The net effect of including the 2011 capital outlays and debt principal payments is to increase (decrease) net assets.

(18,006,952)3 The 2011 depreciation expense of $18,115,963 net of adjustments/disposals of $109,012 The 2011 depreciation expense of $18,115,963 net of adjustments/disposals of $109,012 increases accumulated depreciation. The net effect of the current year's depreciation The 2011 depreciation expense of $18,115,963 net of adjustments/disposals of $109,012 increases accumulated depreciation. The net effect of the current year's depreciation is to decrease net assets.

4,963,498 4 Various other reclassifications and eliminations are necessary to convert from the Various other reclassifications and eliminations are necessary to convert from the modified accrual basis of accounting to accrual basis of accounting. These include Various other reclassifications and eliminations are necessary to convert from the modified accrual basis of accounting to accrual basis of accounting. These include recognizing deferred revenue as revenue, eliminating interfund transactions,

Various other reclassifications and eliminations are necessary to convert from the modified accrual basis of accounting to accrual basis of accounting. These include recognizing deferred revenue as revenue, eliminating interfund transactions, reclassifying tehproceeds of bond sales as an increase in bonds payable, and recognizing the liabilities associated with maturing long-term debt and interest. The net

Various other reclassifications and eliminations are necessary to convert from the modified accrual basis of accounting to accrual basis of accounting. These include recognizing deferred revenue as revenue, eliminating interfund transactions, reclassifying tehproceeds of bond sales as an increase in bonds payable, and recognizing the liabilities associated with maturing long-term debt and interest. The net effect of these reclassifications and recognitions is to increase (decrease) net assets.

162,455,522 $19 Net Assets of Governmental Activities


39



STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

GOVERNMENTAL FUNDS


Control

Data

Codes Fund

General

10

Fund

EducationJobs

40

Fund

Debt Service

50

REVENUES:101,183,414 - 14,671,534 Total Local and Intermediate Sources $ $ $5700209,032,956 - 7,705,463 State Program Revenues5800

3,803,632 7,355,778 - Federal Program Revenues5900

Total Revenues5020 314,020,002 7,355,778 22,376,997

EXPENDITURES:Current:

162,113,095 7,149,483 - Instruction00115,344,419 - - Instructional Resources and Media Services0012

302,859 - - Curriculum and Instructional Staff Development00134,559,000 - - Instructional Leadership0021

19,540,683 - - School Leadership002311,609,104 - - Guidance, Counseling and Evaluation Services00312,018,202 - - Social Work Services00323,811,303 - - Health Services0033

13,530,201 110,127 - Student (Pupil) Transportation0034 - - - Food Services0035

8,663,627 - - Extracurricular Activities00369,350,938 - - General Administration0041

33,778,773 88,417 - Facilities Maintenance and Operations00516,316,816 7,751 - Security and Monitoring Services00522,643,690 - - Data Processing Services0053

168,129 - - Community Services0061

Debt Service:1,723,958 - 15,715,000 Principal on Long Term Debt0071

895,297 - 10,437,138 Interest on Long Term Debt00722,640 - 437,479 Bond Issuance Cost and Fees0073

Capital Outlay:16,035,535 - - Facilities Acquisition and Construction0081

Intergovernmental:50,000 - - Payments to Juvenile Justice Alternative Ed. Prg.0095

1,462,974 - - Other Intergovernmental Charges0099

Total Expenditures6030 303,921,242 7,355,778 26,589,616

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

10,098,760 - (4,212,619)

OTHER FINANCING SOURCES (USES): - - 34,000,000 Refunding Bonds Issued7901

100,000 - 4,150,000 Transfers In7915 - - 4,339,921 Premium or Discount on Issuance of Bonds7916

(4,150,000) - - Transfers Out (Use)8911 - - (37,907,432)Payment to Bond Refunding Escrow Agent (Use)8949

Total Other Financing Sources (Uses) 7080 (4,050,000) - 4,582,489

1200 Net Change in Fund Balances 6,048,760 - 369,869

0100 Fund Balance - September 1 (Beginning) 96,614,072 - 4,573,846

3000 Fund Balance - August 31 (Ending) $ 102,662,832 $ - $ 4,943,715


40


EXHIBIT C-3

Other

Funds Funds

Governmental

Total

119,925,130 4,070,182 $ $220,687,654 3,949,236 56,198,396 45,038,986

53,058,404 396,811,180

201,340,969 32,078,391 7,108,524 1,764,105 1,531,043 1,228,184 8,065,085 3,506,085

23,465,277 3,924,594 13,431,311 1,822,207 2,018,202 - 3,874,130 62,827

14,672,833 1,032,505 516,208 516,208

8,731,691 68,064 9,408,153 57,215

34,728,560 861,370 6,327,823 3,256 2,715,166 71,476

632,213 464,084

19,074,614 1,635,656 11,361,938 29,504

440,118 -

20,832,735 4,797,200

50,000 - 1,462,974 -

53,922,931 391,789,568

(864,528) 5,021,612

34,000,000 - 4,250,000 - 4,339,921 -

(4,262,882)(112,882)(37,907,432) -

(112,882) 419,607

(977,410) 5,441,219

2,026,425 103,214,343

$ 1,049,015 $ 108,655,562

41



42



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


5,441,219 $Total Net Change in Fund Balances - Governmental Funds

41,531,532 Current year capital outlays of $24,700,014 ($20,832,731 from facilities acquisition and Current year capital outlays of $24,700,014 ($20,832,731 from facilities acquisition and construction, with the remaining $3,867,283 coming from the various other functions) and Current year capital outlays of $24,700,014 ($20,832,731 from facilities acquisition and construction, with the remaining $3,867,283 coming from the various other functions) and long-term debt principal payments of $52,569,100, amortizations of premiums in the

Current year capital outlays of $24,700,014 ($20,832,731 from facilities acquisition and construction, with the remaining $3,867,283 coming from the various other functions) and long-term debt principal payments of $52,569,100, amortizations of premiums in the amount of $364,406, recognizing the accounting loss of $2,727,432 and the reductions of $5,332,833 of other liabilities are expenditures in the fund financial statements, but they

Current year capital outlays of $24,700,014 ($20,832,731 from facilities acquisition and construction, with the remaining $3,867,283 coming from the various other functions) and long-term debt principal payments of $52,569,100, amortizations of premiums in the amount of $364,406, recognizing the accounting loss of $2,727,432 and the reductions of $5,332,833 of other liabilities 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

Current year capital outlays of $24,700,014 ($20,832,731 from facilities acquisition and construction, with the remaining $3,867,283 coming from the various other functions) and long-term debt principal payments of $52,569,100, amortizations of premiums in the amount of $364,406, recognizing the accounting loss of $2,727,432 and the reductions of $5,332,833 of other liabilities 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 retirement of capital assets of $124,517, and

Current year capital outlays of $24,700,014 ($20,832,731 from facilities acquisition and construction, with the remaining $3,867,283 coming from the various other functions) and long-term debt principal payments of $52,569,100, amortizations of premiums in the amount of $364,406, recognizing the accounting loss of $2,727,432 and the reductions of $5,332,833 of other liabilities 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 retirement of capital assets of $124,517, and the issuance of Refunding Bonds in the amount of $34,000,000, the premium on the

Current year capital outlays of $24,700,014 ($20,832,731 from facilities acquisition and construction, with the remaining $3,867,283 coming from the various other functions) and long-term debt principal payments of $52,569,100, amortizations of premiums in the amount of $364,406, recognizing the accounting loss of $2,727,432 and the reductions of $5,332,833 of other liabilities 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 retirement of capital assets of $124,517, and the issuance of Refunding Bonds in the amount of $34,000,000, the premium on the refunding bonds of $4,339,921, the accretion on Capital Appreciation Bonds$2,047,579,

Current year capital outlays of $24,700,014 ($20,832,731 from facilities acquisition and construction, with the remaining $3,867,283 coming from the various other functions) and long-term debt principal payments of $52,569,100, amortizations of premiums in the amount of $364,406, recognizing the accounting loss of $2,727,432 and the reductions of $5,332,833 of other liabilities 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 retirement of capital assets of $124,517, and the issuance of Refunding Bonds in the amount of $34,000,000, the premium on the refunding bonds of $4,339,921, the accretion on Capital Appreciation Bonds$2,047,579, and the accumulation of other benefits of $3,650,237 in the financial statements should be

Current year capital outlays of $24,700,014 ($20,832,731 from facilities acquisition and construction, with the remaining $3,867,283 coming from the various other functions) and long-term debt principal payments of $52,569,100, amortizations of premiums in the amount of $364,406, recognizing the accounting loss of $2,727,432 and the reductions of $5,332,833 of other liabilities 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 retirement of capital assets of $124,517, and the issuance of Refunding Bonds in the amount of $34,000,000, the premium on the refunding bonds of $4,339,921, the accretion on Capital Appreciation Bonds$2,047,579, and the accumulation of other benefits of $3,650,237 in the financial statements should beas decreases in capital assets and increases in long-term debt in the government-wide

Current year capital outlays of $24,700,014 ($20,832,731 from facilities acquisition and construction, with the remaining $3,867,283 coming from the various other functions) and long-term debt principal payments of $52,569,100, amortizations of premiums in the amount of $364,406, recognizing the accounting loss of $2,727,432 and the reductions of $5,332,833 of other liabilities 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 retirement of capital assets of $124,517, and the issuance of Refunding Bonds in the amount of $34,000,000, the premium on the refunding bonds of $4,339,921, the accretion on Capital Appreciation Bonds$2,047,579, and the accumulation of other benefits of $3,650,237 in the financial statements should beas decreases in capital assets and increases in long-term debt in the government-wide financial statements. The net effect of including the 2011 capital outlays and debt

Current year capital outlays of $24,700,014 ($20,832,731 from facilities acquisition and construction, with the remaining $3,867,283 coming from the various other functions) and long-term debt principal payments of $52,569,100, amortizations of premiums in the amount of $364,406, recognizing the accounting loss of $2,727,432 and the reductions of $5,332,833 of other liabilities 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 retirement of capital assets of $124,517, and the issuance of Refunding Bonds in the amount of $34,000,000, the premium on the refunding bonds of $4,339,921, the accretion on Capital Appreciation Bonds$2,047,579, and the accumulation of other benefits of $3,650,237 in the financial statements should beas decreases in capital assets and increases in long-term debt in the government-wide financial statements. The net effect of including the 2011 capital outlays and debt principal payments is to increase (decrease) net assets.

(18,006,952)Depreciation is not recognized as an expense in governmental funds since it does not 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 not recognized as an expense in governmental funds since it does not require the use of current financial resources. The net effect of the current year's depreciation is to decrease net assets.

829,359 Various other reclassifications and eliminations are necessary to convert from the Various other reclassifications and eliminations are necessary to convert from the modified accrual basis of accounting to accrual basis of accounting. These include Various other reclassifications and eliminations are necessary to convert from the modified accrual basis of accounting to accrual basis of accounting. These include recognizing deferred revenue as revenue, adjusting current year revenue to show the

Various other reclassifications and eliminations are necessary to convert from the modified accrual basis of accounting to accrual basis of accounting. These include recognizing deferred revenue 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

Various other reclassifications and eliminations are necessary to convert from the modified accrual basis of accounting to accrual basis of accounting. These include recognizing deferred revenue 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

Various other reclassifications and eliminations are necessary to convert from the modified accrual basis of accounting to accrual basis of accounting. These include recognizing deferred revenue 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 assets.

29,795,157 $ Change in Net Assets of Governmental Activities


43



STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL - GENERAL FUND


Control

Data

CodesOriginal Final

(GAAP BASIS)

(Negative)

Positive or

Final BudgetVariance WithActual Amounts

Budgeted Amounts

REVENUES:101,113,554 100,919,921 101,183,414 69,860 Total Local and Intermediate Sources $ $ $ $5700

207,549,417 202,566,212 209,032,956 1,483,539 State Program Revenues5800

970,000 970,000 3,803,632 2,833,632 Federal Program Revenues5900

Total Revenues5020 304,456,133 309,632,971 314,020,002 4,387,031

EXPENDITURES:

Current:174,980,070 172,791,954 162,113,095 12,866,975 Instruction0011

5,502,405 5,187,315 5,344,419 157,986 Instructional Resources and Media Services0012

743,184 708,344 302,859 440,325 Curriculum and Instructional Staff Development0013

4,960,436 4,898,576 4,559,000 401,436 Instructional Leadership0021

20,265,138 19,416,818 19,540,683 724,455 School Leadership0023

12,098,697 11,298,563 11,609,104 489,593 Guidance, Counseling and Evaluation Services0031

2,310,673 2,195,103 2,018,202 292,471 Social Work Services0032

4,070,293 3,772,273 3,811,303 258,990 Health Services0033

14,219,859 13,021,014 13,530,201 689,658 Student (Pupil) Transportation0034

9,678,268 9,504,361 8,663,627 1,014,641 Extracurricular Activities0036

10,171,019 9,610,091 9,350,938 820,081 General Administration0041

39,912,155 37,498,623 33,778,773 6,133,382 Facilities Maintenance and Operations0051

6,760,969 6,380,846 6,316,816 444,153 Security and Monitoring Services0052

2,937,289 2,519,213 2,643,690 293,599 Data Processing Services0053

189,428 171,138 168,129 21,299 Community Services0061

Debt Service:1,828,604 2,428,604 1,723,958 104,646 Principal on Long Term Debt0071

895,297 895,297 895,297 - Interest on Long Term Debt0072

8,000 8,000 2,640 5,361 Bond Issuance Cost and Fees0073

Capital Outlay:30,465,492 500,000 16,035,535 14,429,957 Facilities Acquisition and Construction0081

Intergovernmental:300,000 300,000 50,000 250,000 Payments to Juvenile Justice Alternative Ed. Prg.0095

1,463,000 1,450,000 1,462,974 26 Other Intergovernmental Charges0099

Total Expenditures6030 304,556,133 343,760,276 303,921,242 39,839,034


(100,000) (34,127,305) 10,098,760 44,226,065

OTHER FINANCING SOURCES (USES): 100,000 100,000 100,000 - Transfers In7915

(4,150,000) - (4,150,000) - Transfers Out (Use)8911

Total Other Financing Sources (Uses) 7080 100,000 (4,050,000) (4,050,000) -

1200 Net Change in Fund Balances - (38,177,305) 6,048,760 44,226,065

0100 Fund Balance - September 1 (Beginning) 96,614,072 96,614,072 96,614,072 -

3000 Fund Balance - August 31 (Ending) $ 96,614,072 $ 58,436,767 $ 102,662,832 $ 44,226,065


44


EXHIBIT D-1UNITED INDEPENDENT SCHOOL DISTRICT

STATEMENT OF NET ASSETSPROPRIETARY FUNDS

AUGUST 31, 2011

70

Food Service

Fund

Business-Type

Activities

ASSETS

Current Assets:

3,047,920 Cash and Cash Equivalents $757,758 Due from Other Governments21,645 Due from Other Funds34,447 Other Receivables

511,684 Inventories

4,373,453 Total Current Assets

Noncurrent Assets:Capital Assets:

69,800 Buildings and Improvements(43,302)Depreciation on Buildings

4,218,294 Furniture and Equipment(3,834,567)Depreciation on Furniture and Equipment

410,225 Total Noncurrent Assets

Total Assets 4,783,678

LIABILITIESCurrent Liabilities:

417,914 Accounts Payable40,895 Short Term Debt Payable

274,261 Accrued Wages Payable22,975 Due to Other Funds

123,413 Unearned Revenues

879,458 Total Current Liabilities

Noncurrent Liabilities:

31,800 Loans Payable - Due in More than One Year18,399 Other Long-Term Debt - Due in More than One Year

50,199 Total Noncurrent Liabilities

Total Liabilities 929,656

NET ASSETS

362,526 Investments in Capital Assets, Net of Debt3,491,497 Unrestricted Net Assets

Total Net Assets 3,854,022 $


45



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

PROPRIETARY FUNDS


70

Food Service

Fund

Business-Type

Activities

OPERATING REVENUES:

2,479,559 Local and Intermediate Sources $644,009 State Program Revenues

Total Operating Revenues 3,123,567

OPERATING EXPENSES:

10,517,750 Payroll Costs

372,459 Professional and Contracted Services

11,076,552 Supplies and Materials

33,321 Other Operating Costs141,148 Depreciation Expense

Total Operating Expenses 22,141,230

Operating Income (Loss) (19,017,662)

NONOPERATING REVENUES (EXPENSES):

6,027,692 National School Breakfast Program

12,566,303 National School Lunch Program

1,281,096 Donated Commodities (USDA)

2,722 Earnings from Temporary Deposits & Investments

Total Nonoperating Revenues (Expenses) 19,877,813

Change in Net Assets

Total Net Assets - September 1 (Beginning)

Total Net Assets - August 31 (Ending)

860,151

2,993,871

$ 3,854,022


46


EXHIBIT D-3 (Cont'd)UNITED INDEPENDENT SCHOOL DISTRICT

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED AUGUST 31, 2011PROPRIETARY FUNDS

70

Food Service

Fund

Business-Type

Activities

Cash Flows from Operating Activities:

2,447,386 Cash Received from User Charges $

671,741 Cash Received from State(10,472,863)Cash Payments to Employees for Services

(372,459)Cash Payments for Contracted Services(9,569,546)Cash Payments for Suppliers

(33,321)Cash Payments for Other Operating Expenses

(17,329,062)Net Cash Used for OperatingActivities

Cash Flows from Non-Capital Financing Activities:

(45,410)Increase(decrease) in Short-term Loans18,593,995 Federal Grants

18,548,585 Net Cash Provided by Non-CapitalFinancing Activities

Cash Flows from Capital & Related Financing Activities:

(134,671)Acquisition of Capital Assets50,199 Long Term Loan & Other Debt

(84,472)Net Cash Provided by (Used for) Capital &Related Financing Activities

Cash Flows from Investing Activities:

2,722 Interest and Dividends on Investments

Net Increase in Cash and Cash Equivalents 1,137,773

Cash and Cash Equivalents at Beginning of the Year: 1,910,147

Cash and Cash Equivalents at the End of the Year: 3,047,920 $


47



STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED AUGUST 31, 2011PROPRIETARY FUNDS

70

Food Service

Fund

Business-Type

Activities

Operating Income (Loss):$

Reconciliation of Operating Income (Loss) to Net Cash

Used for Operating Activities:(19,017,662)

to Net Cash Used for Operating Activities:Adjustments to Reconcile Operating Income

141,148 Depreciation1,281,096 Commodity Expense - USDA Various Food Products

Assets and Liabilities:Effect of Increases and Decreases in Current

(8,708)Decrease (increase) in Receivables(78,291)Decrease (increase) in Inventories(23,465)Decrease (increase) in Due From Other304,201 Increase (decrease) in Accounts Payable24,637 Increase (decrease) in Accrued Wages Payable20,250 Increase (decrease) in Due To Other27,732 Increase (decrease) in Unearned Revenue

Net Cash Used for OperatingActivities (17,329,062)$

Noncash Investing, Capital and Financing Activities:

1,281,096 Commodity Expense - USDA Various Food Products


48


EXHIBIT E-1UNITED INDEPENDENT SCHOOL DISTRICTSTATEMENT OF FIDUCIARY NET ASSETS

FIDUCIARY FUNDSAUGUST 31, 2011

Agency

Fund

ASSETS

1,511,872 Cash and Cash Equivalents $

168 Other Receivables

Total Assets 1,512,040 $

LIABILITIES

10,000 Due to Other Funds $

1,502,040 Due to Student Groups

Total Liabilities 1,512,040 $


49



50


Notes to Financial Statements

51



52


UNITED INDEPENDENT SCHOOL DISTRICT Laredo, Texas


A. REPORTING ENTITY

The Board of School Trustees (Board), a seven member group, has governance responsibilities over all activities related to public elementary and secondary education within the jurisdiction of the United Independent School District (District), Laredo, Texas. Because members of the Board of Trustees are elected by the public; have the authority to make decisions, appoint administrators and managers, and significantly influence operations; and have the primary accountability for fiscal matters; the District is not included in any other governmental "reporting entity" as defined by Governmental Accounting Standards Board (GASB), Statement No. 14, “The Financial Reporting Entity” and Statement Number 39, “Determining Whether Certain Organizations Are Component Units.” There are no component units included within the reporting entity.

Since the District receives funding from local, state, and federal government sources, it must comply with the requirements of the entities providing those funds.

B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

United Independent School District (District) is a public educational agency operating under applicable laws and regulations of the State of Texas. It is governed by a seven member Board of Trustees (Board) elected by registered voters of the District. The District prepares its basic financial statements in conformity with generally accepted accounting principles promulgated by the Governmental Accounting Standards Board and other authoritative sources identified in Statement on Auditing Standards No. 69 of the American Institute of Certified Public Accountants; and it complies with the requirements of the appropriate version of Texas Education Agency’s Financial Accountability System Resource Guide (Resource Guide) and the requirements of contracts and grants of agencies from which it receives funds.

1. Government-Wide and Fund Financial Statements

The Statement of Net Assets and the Statement of Activities are government-wide financial statements. They report information on all of the United Independent School District nonfiduciary activities. The Interfund services provided and used are not eliminated in the process of consolidation. Governmental activities include programs supported primarily by taxes, State foundation funds, grants and other intergovernmental revenues. Business-type activities include operations that rely to a significant extent on fees and charges for support.

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B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the District’s Governmental Activities. The “charges for services” column includes payments made by parties that purchase, use, or directly benefit from goods or services provided by a given function or segment of the District. Examples include tuition paid by students not residing in the District, school lunch charges, etc. The “grants and contributions” column includes amounts paid by organizations outside the District to help meet the operational or capital requirements of a given function. Examples include grants under the Elementary and Secondary Education Act. If revenue is not program revenue, it is general revenue which is used to support all of the District’s functions. Taxes are always general revenues. Direct expenses are those that are specifically associated with a program or function. Indirect costs expenditures are determined by applying approved indirect cost rates to actual applicable expenditures of federally funded grant programs. Interfund activities between governmental funds appear as due to/due froms on the Governmental Fund Balance Sheet and Proprietary Fund Statement of Net Assets and as other resources and other uses on the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balance. All interfund transactions between governmental funds are eliminated on the government-wide statements. Interfund activities between governmental funds and fiduciary funds remain as due to/due froms on the government-wide Statement of Activities.

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

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

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

The government-wide financial statements use the economic resources measurement focus and the accrual basis of accounting, as do the proprietary fund. The fiduciary funds have no measurement focus. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

54





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

The modified accrual basis of accounting recognizes revenues in the accounting period in which they become both measurable and available, and it recognizes expenditures in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest and principal on long-term debt, which is recognized when due. The expenditures related to certain compensated absences and claims and judgments are recognized when amounts are due and payable. The District considers all revenues available if they are collectible within 60 days after year end. The compensated absences are reported in governmental funds only if they matured.

Revenues from local sources consist primarily of property taxes. Property tax revenues and revenues received from the State are recognized under the susceptible to accrual concept. Miscellaneous revenues are recorded as revenue when received in cash because they are generally not measurable until actually received. Investment earnings are recorded as earned, since they are both measurable and available.

Grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant. Accordingly, when such funds are received, they are recorded as 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 are accounted for on a flow of economic resources measurement focus and utilize the accrual basis of accounting. The Fiduciary Funds 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 Assets. The fund equity is segregated into invested in capital assets net of related debt, restricted net assets, and unrestricted net assets.

55




B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 3. Fund Accounting

a. Major Governmental Funds

General Fund

The General Fund is the District's operating fund and is used to account for all financial transactions except those required to be accounted for in another fund. This is a budgeted fund and any fund balances are considered as resources available for current operations. General Fund primary revenue sources include local property taxes and state funding. The District's General Fund includes state distributed federal funds and direct federal funds not required to be included in the Special Revenue Funds.

Debt Service Fund

The Debt Service Fund accounts for the accumulation of resources for, and the payment of bonded debt principal and interest. The primary revenue source is local property taxes levied specifically for debt service. The fund balance of this fund represents amounts that will be used for retirement of bonds and payment of interest in the future. The Debt Service Fund is a budgeted fund.

Major Special Revenue Fund

The Education Jobs Fund (Ed Jobs) program is a new Federal program that provides $10 billion in assistance to States to save or create education jobs for the 2010-2011 School Year. Jobs funded under this program include those that provide educational and related services for early childhood, elementary, and secondary education. The District received $7,152,771 from the Ed Jobs Program.

b. Major Proprietary Funds

Enterprise Fund

The Enterprise Fund is used to account for the District’s Food Service operations. The Food Services fund is a budgeted fund and is the District’s only Enterprise Fund. An Enterprise Fund is used since the District’s intent is for the Food Service Fund to be self-sustaining. Students are charged for meals to supplement the National School Lunch Program reimbursements.

56





c. Non-Major Governmental Funds

Special Revenue Funds

The Special Revenue Funds are used to account for the majority of federal and state funded grants. These grants are awarded to the District with the purpose of accomplishing specific educational tasks. Funds are used primarily for a math and reading improvement program for the educationally deprived, a special education program involving learning disabilities and the physically handicapped, a vocational education program, and a drug education program. Budgets for these funds are adopted on a project basis rather than on an annual basis.

Capital Projects Funds

The Capital Projects Fund was established to account for the proceeds from the

sales of bonds including earnings on investments of the fund. Proceeds are used for acquiring school sites, constructing and equipping new school facilities, and renovating existing facilities. Budgets for these funds are adopted on a project basis rather than on an annual basis.

Permanent Funds The Permanent Funds should be used “to report resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the reporting government’s programs, that is, for the benefit of the government or its citizenry.” The District received a charitable donation in the amount of $50,000 that is to be invested in a certificate of deposit with the interest proceeds used each year to fund two annual scholarships starting in 2010.

d. Fiduciary Funds

Agency Fund

The Agency Fund is used to account for assets held by the District as an agent for individuals, private organizations, other governmental units, and/or other funds. These include Clearing Funds and Student Activity Funds. Student Activity Funds are monies collected principally through fund-raising efforts of the individual schools or school-sponsored groups (student activity funds).

4. Other Accounting Policies

For purposes of the statement of cash flows for proprietary and similar fund-types, the District considers highly liquid investments to be cash equivalents if they have a maturity of three months or less when purchased.

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5. Budgets

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

Prior to August 20 of the preceding fiscal year, the District prepares a budget

for the next succeeding fiscal year beginning September 1. The operating budget includes proposed expenditures and the means of financing them.

A meeting of the Board is then called for the purpose of adopting the proposed

budget after ten days’ public notice of the meeting has been given.

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

The legal level of budgetary control is at the major functional expenditure level by fund type. Each budget is controlled by the budget coordinator. Annual budgets are adopted for the General Fund, Food Service Fund, and Debt Service on a basis consistent with generally accepted accounting principles. Budgets for the Special Revenue funds as well as the Capital Projects funds are adopted on a project basis rather than on an annual basis. Appropriations in these funds remain open as carryover to succeeding years until related expenditures are made or until they are modified or cancelled. All budget appropriations lapse at year end.

Once a budget is approved, it may be amended by management without Board approval within a major functional expenditure category and can be amended at the function and fund level only by approval of a majority of the members of the Board. Amendments at the function and fund level are presented to the Board at its regular meetings. Such amendments are made before the fact, are reflected in the official minutes of the Board and are made before the fiscal year end as required by law. The budget amounts included in this report reflect various amendments made by management or adopted by the Board throughout the year through the final amended budget. The original budget was adopted by the Board on August 26, 2010. The General and Debt Service Fund Budgets are prepared on the modified accrual basis and the Food Service Fund budget is prepared on the accrual basis of accounting.

6. Inventories

Inventories of supplies on the balance sheet are stated at cost, determined on the weighted average method. Inventories are maintained on a perpetual inventory system and adjusted at year end to physical count balances, if necessary. Inventory in governmental funds consist of expendable goods held for consumption. Reported inventories in these funds are equally offset by a fund balance reserve. Expenditures are recorded when individual inventory items are requisitioned or consumed.

58




B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Inventory reported in the Enterprise fund consists of food service fund supplies. Inventory is stated at cost, determined on the weighted average method, except for food commodities which are recorded at market values supplied by the Texas Department of Human Services. Commodities inventory at year end is offset by unearned revenue, since revenue is recognized as inventory is used.

7. Fund Balance

Reserved fund balance indicates that portion of fund balance which has been legally segregated for specific purposes. The unreserved fund balance represents that portion of the fund balance that is available for budgeting in future periods.

8. Accumulated Unpaid Compensatory Leave

Accumulated compensatory leave and sick leave that is expected to be liquidated with expendable available resources is reported as an expenditure and a liability in the Governmental Funds only if they have matured.

9. Accounting System

In accordance with Texas Education Code, Chapter 44, subchapter A, the District has adopted and installed an accounting system which meets at least the minimum requirements prescribed by the State Board of Education and approved by the State Auditor. Data Control codes refer to the account code structure prescribed by the TEA in the Resource Guide.

10. Foundation School Program Revenue

The State of Texas provides funding to Districts through the Foundation School Program based on instructional days, average daily attendance by fiscal year, and other factors. The academic year for the District typically begins several weeks before the beginning of the fiscal year (September 1). During this period expenditures are incurred that relate directly to revenues received in the subsequent fiscal year. In the current year, the District accrued Foundation School revenues to match August days of instruction expenditures.

11. Eliminations

Eliminating entries have not been made in the basic financial statements for transactions between or within fund types.

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B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 12. Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires the District’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses/expenditures during the reported period. Actual results could differ from those estimates.

13. Cash and Cash Equivalents

For the statement of cash flows, cash and cash equivalents consists of cash in banks, investment pool deposits, and securities with maturities of less than three months from the date of purchase.

14. Depreciation

Capital assets, which include land, buildings, furniture and equipment, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the District as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

The capital assets of the District are depreciated using the straight line method over the following estimated useful lives:

Capital Assets Years

Buildings 30Computer Equipment 5-7Land Improvements 11-60Office Equipment 7-10Outdoor Equipment/Portables 9-15Vehicles 5-10

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C. DEPOSITS AND INVESTMENTS

Legal and Contractual Provisions Governing Deposits and Investments

The Public Funds Investment Act (the “PFIA”), 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 be written, primarily emphasize safety of principal and liquidity, and address investment diversification, yield, maturity and the quality and capability of investment management. That policy must include: (1) a list of authorized investments, (2) the maximum allowable stated maturity of any individual investment, (3) for pooled fund groups, the maximum dollar-weighted average sated final maturity, (4) methods to monitor market price of investments, (5) a requirement that all transactions, with limited exceptions, settle on a delivery versus payment basis. Investment policies may provide bid solicitation preferences for certificates of deposit. As an integral part of its investment policy, the District shall also adopt a separate investment strategy for each of the funds or fund groups under its control.

Statutes authorize the District to invest in (1) obligations of the U.S. Treasury or its agencies, and instrumentalities, and the State of Texas or its agencies and instrumentalities; (2) insured or collateralized certificates of deposit, (3) certain municipal securities, (4) certain commercial paper securities, (5) repurchase agreements, (6) certain bankers acceptances, (7) money market mutual funds and certain mutual bond funds, (8) investment pools, (9) and collateralized guaranteed investment contracts.

The PFIA also requires the District to have independent auditors perform test procedures related to investment practices as provided by the PFIA. The District is in substantial compliance with the requirements of the PFIA and with local policies.

Policies Governing Deposits and Investments

In compliance with the PFIA, the District has adopted an investment policy. That policy addresses the following risks:

Disclosures Related to Custodial Credit Risk

Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The PFIA, the District’s investment policy, and Government Code Chapter 2257 (the “Public Funds Collateral Act”) contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments.

61




C. DEPOSITS AND INVESTMENTS (Continued) The District’s policy requires:

1. Insurance or collateralization of all bank deposits 2. Third party safekeeping of all collateral securities 3. Monthly monitoring of collateral security market values 4. Minimum collateral security market values of 110% of non insured deposits 5. District authorization prior to any collateral security release or substitution and 6. Delivery versus payment for settlement of all investment security transactions

Custodial Credit Risk – Deposits: The District’s bank account and certificate of deposit funds are required to be deposited and invested under the terms of a depository contract. The depository bank places for safekeeping with the District’s agent bank approved pledged securities 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.

Custodial Credit Risk – Investments: All District investment security transactions are settled using the delivery versus payment method between the counterparty and the District’s safekeeping agent. The District’s safekeeping agent holds all investment securities until maturity or liquidation by the District.

Bank Deposits

At August 31, 2011, the District’s bank deposits (cash and interest-bearing accounts) were $17,261,459. The carrying amount of the District’s deposits and investments is as follows:

Cash in Bank or On Hand-Cash Equivalents 9,926,921$ Investment Pools 98,813,434

Sub-Total 108,740,355

Certificate of Deposit 50,000

Total Cash and Cash Equivalents 108,790,355$ A Certificate of Deposit for $50,000 is recorded in the Statement of Net Assets as Restricted Assets. The District’s cash deposits at August 31, 2011 were under collateralized on November 5, 2010, November 6, 2010 and November 7, 2010. All other days were covered by the FDIC insurance and by pledged collateral held by the District’s agent in the District’s name.

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C. DEPOSITS AND INVESTMENTS (Continued)

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

a. Depository: Wells Fargo Bank

b. The market value of securities pledged as of the date of the highest combined balance on

deposit was $91,234,943.

c. The largest combined balances of cash, savings, and time deposit accounts amount to $90,984,943 and occurred on January 26, 2011.

d. Total amount of FDIC coverage at the time of the largest combined balance was $250,000.

Disclosures Relating to Interest Rate Risk

Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The District manages its exposure to interest rate risk through its investment policy and incorporated investment strategies by maintaining sufficient balances in highly liquid investments (e.g. investment pools), purchasing investments timed to or shorter than specific cash flow requirements and limiting the stated final maturity of all investments.

Information about the sensitivity of the fair values of the District’s investments to market interest rate fluctuations is provided by the following table that shows the specific investments and their maturity:

Investment Type

FairValue

WeightedAverage

Maturity (Days)

Certificate of Deposit (Compass Bank) 50,000$ 100

Wells Fargo 7,000,000 1

Lone Star Investment Pool (non 2a-7 like pool) 37,741,221 1

MBIA - CLASS Investment Pool (2a-7 like pool) 7,001,947 1

Texas Term (2a-7 like pool) 42,822,947 1

TexSTAR (2a-7 like pool) 4,247,319 1

Total Fair Value 98,863,434$

Portfolio Weighted Average Maturity 1

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C. DEPOSITS AND INVESTMENTS (Continued) Disclosure Relating to Credit Risk

Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the District’s investment policy and the PFIA and the actual rating as of year end for each investment.

DescriptionMinimum

Legal Rating Amount Rating %

Certificate of Deposit (Compass Bank) N/A 50,000$ N/A 0.05%Wells Fargo N/A 7,000,000 N/A 7.08%Lone Star Investment Pool (non 2a-7 like pool) AAAm 37,741,221 AAAm 38.18%MBIA - CLASS Investment Pool (2a-7 like pool) AAA V1+ 7,001,947 AAA/V1+ 7.08%Texas Term (2a-7 like pool) AAAf 42,822,947 AAAf 43.32%TexSTAR AAAm 4,247,319 AAAm 4.30%

98,863,434$ 100.00% Concentration Risk

The investment policy of the District contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the PFIA. There are investments that represent 5% or more of total District investments. The investment pools utilized by the District restrict concentration risk by adopting investment policies requiring diversification as to maturity and issuer. The investment policy requires diversification of investment security maturities based on the cash flow requirements of the District. Foreign Currency Risk

The District has no exposure to foreign currency risk.

Public Funds Investment Pools

Public funds investment pools in Texas (“Pools”) are established under the authority of the Inter-local Cooperation Act, Chapter 79 of the Texas Government Code and are subject to the provisions of the PFIA. In addition to other provisions of the PFIA designed to promote liquidity and safety of principal, the PFIA requires Pools to: (1) have an advisory board composed of participants in the pool and other persons who do not have a business relationship with the pool and are qualified to advise the pool; (2) maintain a continuous rating of no lower than AAA or AAA-m or an equivalent rating by at least one nationally recognized rating service; and (3) if functioning as a money market mutual fund, maintain the market value of its underlying investment portfolio within one half of one percent of the value of its shares.

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C. DEPOSITS AND INVESTMENTS (Continued)

The District’s investments in Pools are reported at an amount determined by the fair value per share of the pool’s underlying portfolio, unless the pool is 2a7-like, in which case the fair value is reported at share value. A 2a7-like pool is one which is not registered with the Securities and Exchange Commission (“SEC”) as an investment company, but nevertheless has a policy that it will, and does, operate in a manner consistent with the SEC’s Rule 2a7 of the Investment Company Act of 1940.

D. PROPERTY TAXES

Property taxes are levied by October 1, on the basis of assessed value as of January 1, in conformity with Subtitle E, Texas Property Tax Code. Taxes are due on receipt of the tax bill and are delinquent if not paid before February 1 of the year following the year in which imposed. On January 1 of each year, a tax lien attaches to property to secure the payment of all taxes, penalties, and interest ultimately imposed. Property tax revenues are considered available when they become due or past due and receivable within the current period.

The District’s assessed valuation of taxable property totaled $12,999,916,734 as of January 1, 2010 and represented 100% of appraised value. The total taxable value on such properties after lawful exemptions was $10,327,855,914. The tax rate for the 2010 roll was $1.19486 for $100 assessed valuation; it was designated as $1.040000 for the general fund and $0.15486 for the debt service fund. As taxes are collected they are recognized as realized revenue. Remaining taxes receivables are recorded as unearned revenue. Delinquent taxes are prorated between maintenance and debt service based on rates adopted for the year of levy. Allowances for uncollectible tax receivables within the general and debt service funds are based on historical experience in collecting property taxes. Uncollectible personal property taxes are periodically reviewed and written off, but the District is prohibited from writing off real property taxes without specific statutory authority from the Texas Legislature.

E. INTERFUND RECEIVABLES AND PAYABLES

The District has numerous transactions between funds which involve receipts and disbursements by one fund for amounts for another fund. Those transactions which require one fund to reimburse another are classified in the balance sheets of the various funds as “due to/from other funds,” as appropriate. Transactions that would be treated as revenues, expenditures, or expenses if they involved organizations external to the District, are accounted for as revenues, expenditures or expenses in the funds involved.

The Interfund balances between funds result mainly from federal and state grants that operate on a reimbursement basis. Interfund balances occur when one fund pays or receives resources for another fund. The Interfund between the General Fund and the Non Major Funds are specifically due to Accounts Payable invoices that were dated and merchandise/supplies received before August 31, 2011.

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E. INTERFUND RECEIVABLES AND PAYABLES (Continued) The Inter-fund Balance between Enterprise Fund and Non Major Fund is due to the Summer Feeding Program accounts payable invoices that were dated and merchandise/supplies received before August 31, 2011. Inter-fund balances at August 31, 2011, consisted of the following individual fund receivables and payables:

Due From Other Funds

Due To OtherFunds

General Fund Non Major Fund 14,381,232$ -$ Enterprise Fund 150 - Fiduciary Fund 10,000 - Total General Fund 14,391,382 -

Major Special Revenue Fund General Fund - 7,152,771 Total Major Special Rev Fund - 7,152,771

Non Major Fund General Fund - 7,228,461 Enterprise Fund 22,825 21,645 Total Non Major Fund 22,825 7,250,106

Enterprise Fund General Fund - 150 Non Major Fund 21,645 22,825 Total Enterprise Fund 21,645 22,975

Fiduciary Fund General Fund - 10,000

Total Fiduciary Fund - 10,000

14,435,852$ 14,435,852$

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F. CAPITAL ASSET ACTIVITY

Beginning Adjustments/ Ending

Governmental Activities Balance Additions Retirements Balance

Capital assets, not being depreciated:

Land 30,019,994$ 5,605,938$ -$ 35,625,932$

Construction in Progress 10,014,419 16,259,714 13,005,524 13,268,609

Total capital assets, not being depreciated 40,034,414 21,865,653 13,005,524 48,894,541

Capital assets, being depreciated:

Buildings 429,722,991 13,005,524 (102,690) 442,831,205

Furniture & Equipment 18,221,586 1,289,329 198,309 19,312,606

Vehicles 24,243,589 1,545,032 28,897 25,759,724

Total capital assets being depreciated 472,188,166 15,839,885 124,516 487,903,535

Less Accumulated Depreciation for:

Buildings 156,124,024 13,908,300 - 170,032,324

Furniture & Equipment 10,506,433 2,002,292 16,563 12,492,162

Vehicles 13,855,785 2,205,372 92,449 15,968,708

Total Accumulated Depreciation 180,486,243 18,115,963 109,012 198,493,194

Total capital assets, being depreciated, net 291,701,923 (2,276,078) 15,504 289,410,341

Governmental Activities Capital Assets, Net 331,736,337$ 19,589,575$ 13,021,029$ 338,304,882$

The negative amount of ($102,690) under the Adustments/Retirements column represents net adjustments.

Capital assets, being depreciated:

Buildings 69,800$ -$ -$ 69,800$

Furniture & Equipment 3,261,626 66,062 - 3,327,688

Vehicles 890,607 - - 890,607

Total capital assets being depreciated 4,222,032 66,062 - 4,288,094

Less Accumulated Depreciation for:

Buildings 35,546 7,756 - 43,302

Furniture & Equipment 2,912,935 91,523 - 3,004,458

Vehicles 788,241 41,869 - 830,110

Total Accumulated Depreciation 3,736,722 141,148 - 3,877,869

Total capital assets, being depreciated, net 485,311 (75,085) - 410,225

Business-Type Activities Capital Assets, Net 485,311$ (75,085)$ -$ 410,225$

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F. CAPITAL ASSET ACTIVITY (Continued) Depreciation expense was charged to functions/programs of the primary government as follows:

Depreciation Expense was charged to governmental functions as follows: AdditionsAdjustments/Retirements

DepreciationExpense

Instruction 11,205,918$ 67,431$ 11,138,487$ Instruction Resources & Media Services 483,778 2,911 480,867 Instructional Leadership 39,355 237 39,118 School Leadership 377,520 2,272 375,248 Guidance,Counseling and Evaluation Svcs 4,712 28 4,684 Health Services 179 1 178 Student (Pupil) Transportation 1,897,782 11,420 1,886,362 Food Services 539,262 3,245 536,017 Cocurricular/Extracurricular Activities 1,307,102 7,866 1,299,236 General Administration 518,355 3,119 515,236 Plant Maintenance and Operations 1,423,770 8,567 1,415,203 Security and Monitoring Services 168,549 1,014 167,535 Data Processing Services 149,682 901 148,781

Total Depreciation Expense for Governmental Functions 18,115,963$ 109,012$ 18,006,951$

Depreciation Expense was charged to Business-Type Activities as follows:Business-Type Activities 141,148$ -$ 141,148$

Total Depreciation Expense for Business-Type Activities 141,148$ -$ 141,148$

Depreciation Expense is the total accumulated depreciation less any adjustments/retirements.

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G. LONG-TERM DEBT

1. Bonded Debt Payable The bonds are supported by a pledge of the District's full faith and credit. The bond indentures require a levy and collection of taxes without limitation as to rate or amount on all property subject to taxation by the District sufficient in amount to pay the principal and interest on such bonds as they become due. The indentures also require that a debt service fund be created and administered by the District solely for the purpose of paying principal and interest when due.

Date Interest Amount

of Rate Original Outstanding Outstanding Maturity

Issue Payable Issue 09/01/10 Increases Decreases 8/31/2011 Date


School Building Unlimited Tax Bonds

12/15/93 4.00-7.00% $ 26,000,000 $ 1,830,000 $ - $ 1,830,000.00 $ - 2014

07/01/99 5.00-6.75% 25,850,000 4,310,000 - 1,005,000.00 3,305,000 2025

09/01/00 5.12-7.50% 37,500,000 6,915,000 - 5,605,000.00 1,310,000 2026

07/01/01 4.70-6.00% 19,880,000 16,330,000 - 14,255,000.00 2,075,000 2027

03/25/04 1.51-4.09% 50,064,951 29,250,000 - 5,570,000.00 23,680,000 2017

04/15/04 2.00-4.75% 74,999,926 67,020,000 - 17,040,000.00 49,980,000 2034

03/08/05 2.50-5.00% 45,394,989 40,520,000 - 2,575,000.00 37,945,000 2025

07/15/05 3.32-4.85% 66,869,580 64,316,886 667,781.25 2,095,000.00 62,889,667 2035

11/21/06 4.00% 7,934,996 8,466,655 36,300.70 65,000.00 8,437,956 2026

05/22/08 2.85% 4,295,000 2,640,000 - 855,000.00 1,785,000 2013

08/25/11 3.00-5.00% 34,000,000 - 34,000,000.00 - 34,000,000 2027

Premium Capital Appreciation Bonds

05/15/98 5.175-5.30% 11,567,783 25,202,587 1,343,497.00 - 26,546,084 2023

Public Property Finance Contractual Obligations

04/01/02 3.40-5.00% 2,560,000 390,000 - 190,000.00 200,000 2012

11/01/02 3.25-3.70% 2,770,000 630,000 - 310,000.00 320,000 2012

08/15/04 3.00-3.70% 3,861,000 1,711,400 - 404,100.00 1,307,300 2014

06/21/05 3.00-4.00% 4,705,000 2,945,000 - 545,000.00 2,400,000 2015

11/21/08 5.49% 7,350,000 7,255,000 - 225,000.00 7,030,000 2024

01/13/10 1.64% 17,440,000 17,440,000 - - 17,440,000 2025

Total Governmental Activities $ 297,172,528 36,047,578.95 52,569,100.00 280,651,007

Business-Type Activities

Public Property Finance Contractual Obligations

08/15/04 3.00-3.70% $ 159,000 $ 63,600 - 15,900.00 47,700 2014

Total Business-Type Activities 63,600 - 15,900.00 47,700

TOTAL BONDED DEBT PAYABLE $ 297,236,128 $ 36,047,578.95 $ 52,585,000.00 $ 280,698,707

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G. LONG-TERM DEBT (Continued) Annual debt service requirements to maturity for general obligation bonds are as follows for Governmental Activities and Business-Type Activities:

TOTALPRINCIPAL INTEREST REQUIREMENTS

18,024,100$ 10,509,238$ 28,533,338$ 18,699,100 9,810,507 28,509,607 18,759,100 9,055,750 27,814,850 17,260,000 8,523,155 25,783,155 15,270,174 8,061,745 23,331,919 67,740,578 34,273,545 102,014,123 61,067,956 22,075,577 83,143,532 35,240,000 11,241,369 46,481,369 28,590,000 2,953,256 31,543,256

280,651,007 116,504,142 397,155,149

TOTAL

PRINCIPAL INTEREST REQUIREMENTS

15,900 - 15,900 15,900 - 15,900 15,900 - 15,900

Total Business-Type Activities 47,700 - 47,700

280,698,707$ 116,504,142$ 397,202,849$

201220132014

2017-2021

FISCAL YEARENDED AUGUST 31,

2022-20262027-20312031-2035

Business-Type Activities


Total Activities

Total Governmental Activities

FISCAL YEARENDED AUGUST 31,

201420152016

20122013

Capital Appreciation Bonds

The total accretion of discount on capital appreciation bonds as August 31, 2011 was $17,331,648. Accretion for this Fiscal Year was $2,047,578 less payments of $425,096 for a net increase of $1,622,481 leaving a balance of $18,954,129 as of August 31, 2011.

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G. LONG-TERM DEBT (Continued) Refunding Bonds On August 25, 2011, the District issued $34,000,000 of Unlimited Tax Refunding Bonds, Series 2011, to be used to refund certain of the District’s currently outstanding bonds. The interest rates on the Tax Refunding Bonds range from 3.00% to 5.00% and the final maturity is on August 15, 2027. Debt service payments are scheduled semiannually beginning February 15, 2012. The net present value is $2,411,369. The percentage savings of refunded bonds was 6.85%. The refunding transaction resulted in an economic loss of $2,727,432.

Defeased Bonds Outstanding

The District defeased outstanding general obligation bonds through the Refunding General Obligation Series by placing the proceeds of the new bonds in irrevocable trust to provide for the future debt service payment on the old bonds. Accordingly, the trust account assets and defeased bonds are not included in the District’s financial statements. At August 31, 2011, $25,168,841 of the bonds defeased is outstanding. 2. Long-term Debt

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

Beginning Ending Due Within Due in MoreBalance Additions Reductions Balance One Year Than One Year

Governmental Activities:Bonds Payable:

General Obligation Bonds $ 266,801,128 $ 36,047,579 $ 50,895,000 $ 251,953,707 $ 16,290,000 $ 235,663,707Premium on Issuance of Debt 2,745,799 4,339,921 3,091,838 3,993,882 364,406 3,629,477 Public Property Finance Contractual Obligations 30,371,400 - 1,674,100 28,697,300 1,750,000 26,947,300

Total Bonds Payable 299,918,327 40,387,500 55,660,938 284,644,889 18,404,406 266,240,483

Accrued Sick Leave 522,824 36,509 65,475 493,857 148,157 345,700 Compensatory Leave 137,167 3,161,091 3,200,975 97,283 97,283 - Arbitrage Rebates - - - - - - Workers Compensation Claims Payable 125,000 17,285 17,285 125,000 37,500 87,500 Vacation Benefits Payable 518,663 435,353 492,730 461,286 461,286 - LoanStar Loans Payable 138,624 - 138,624 - - - Leases Payable 5,063,850 - 1,417,745 3,646,105 1,314,955 2,331,150

Other Long Term Liabilities 6,506,128 3,650,237 5,332,834 4,823,531 2,059,181 2,764,350 Total Governmental Activities

Long Term Liabilities $ 306,424,455 $ 44,037,737 $ 60,993,772 $ 289,468,420 $ 20,463,587 $ 269,004,833

Business-Type ActivitiesBonds Payable:

Public Property Finance Contractual Obligations $ 63,600 $ - $ 15,900 $ 47,700 $ 15,900 $ 31,800 Total Bonds Payable 63,600 - 15,900 47,700 15,900 31,800

Other LiabilitiesAccrued Sick Leave 28,334 2,865 8,190 23,009 6,903 16,106 Compensatory Leave 1,537 40,096 38,357 3,275 983 2,293 Vacation Benefits Payable 61,444 14,038 58,371 17,110 17,110 -

Other Liabilities 91,314 56,999 104,919 43,394 24,995 18,399 Total Business-Type Activities

Long Term Liabilities $ 154,914 $ 56,999 $ 120,819 $ 91,094 $ 40,895 $ 50,199

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G. LONG-TERM DEBT (Continued)

The General Operating Fund, Special Revenue Funds, and Enterprise Funds are used to liquidate the liability for compensated absences, accrued sick leave and workers compensation. Governmental Activities liquidates an estimated average of 70%, and Business Type Activities an estimated average of 70%.

Accrued Sick Leave

Beginning in January 1998, the District established a new sick leave policy. Employees will be reimbursed at the rate of $30 per day for all unused state and local sick leave accumulated by an employee upon his election of a retirement option with the Texas Teacher Retirement system, if the retiree has worked with the District a minimum of five years. Employees are reimbursed for all unused sick leave to a maximum of 80 days. Compensatory Leave

The District compensates overtime for non-exempt employees. Employees can accumulate up to 240 hours of compensatory time under the Fair Labor Standards Act (FLSA). The District’s local policy does not allow employees to accumulate compensatory time beyond 60 hours per year.

Arbitrage Rebate

The Tax Reform Act of 1986 enacted section 148(f) of the Internal Revenue Code, relating to arbitrage rebate requirements, which generally provides that in order for interest on any issue of obligation to be excluded from gross income (i.e., tax-exempt) the issuer must rebate to the United States the sum of (1) the excess of the amount earned on all "nonpurpose investments" acquired with "gross proceeds" of the issue over the amount which would have been earned if such investments had been invested at a yield equal to the yield on the issue, and (2) the earnings on such excess earnings. As of August 31, 2011, the District had no arbitrage rebate liability. Vacation Benefits Payable

After a full year of service to the District, all full-time hourly/auxiliary employees in positions normally requiring 12 months (at least 240 days) of service shall earn ten vacation days each year.

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G. LONG-TERM DEBT (Continued)

Workers Compensation Claims Payable

As of September 1, 1995, the District ended its workers compensation self-insurance plan. The claims liability reported in the Governmental Fund of $125,000 reported at August 31, 2011 represents the estimated liability outstanding for claims incurred on or before September 1, 1995. The liability is based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can reasonably be estimated. After September 1, 1995, the District’s workers compensation plan is handled by commercial insurance. The District retains no risk. For the past three years, there has been no settlement of claims that exceeds our insurance coverage.

The District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the District carries commercial insurance.

H. CONTINGENCIES AND COMMITMENTS

Legal Proceedings

The District is a defendant in several lawsuits for claims filed against it. In the best judgment of the District's management in consultation with legal counsel, the accompanying financial statements will not be affected materially by the outcome of any of these proceedings and therefore no loss contingency has been recorded.

Capital Leases

The District has entered into lease agreements for financing the acquisition of computers and computer related equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments. The District entered into an agreement for the lease of computers and computer related equipment from HP Financial Services on July 9, 2009, this lease agreement is a three year lease.

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H. CONTINGENCIES AND COMMITMENTS (Continued)

The future minimum lease obligations and the net present value of these minimum lease payments as of August 31, 2011 are as follows:

Year Ending August 31, Total Requirements

2012 1,447,247$ 2013 1,229,3362014 1,229,336

Total Minimum Rentals 3,905,919

Less: Amount representing Interest (259,814)

Present Value Minimum Lease Payments 3,646,105$

I. DEFERRED/UNEARNED REVENUES

As of August 31, 2011, deferred and unearned revenue was made up of the following in the Fund Financial Statements:

General Fund Property Taxes $ 4,319,150 Advanced Taxes 291,819 Total General Fund 4,610,969

Special Revenue Fund Grant Revenues 117,816

Debt Service Property Taxes 644,347

Enterprise Fund USDA Commodities 123,413

Total $ 5,496,545

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J. DEFINED BENEFIT PENSION PLAN

Plan Description

The District contributes to the Teacher Retirement System of Texas (TRS), a public employee, cost-sharing multiple employer defined benefit pension plan. TRS administers retirement system and disability annuities, and death and survivor benefits to employees and beneficiaries of employees of the public school systems of Texas. It operates primarily under the provisions of the Texas Constitution, Article XVI, Sec. 67, and Texas Government Code, Title 8, Subtitle C. TRS also administers proportional retirement benefits and service credit transfer under Texas Government Code, Title 8, Chapter 803 and 805, respectively. TRS issues a publicly available financial report that includes financial statements and required supplementary information for the defined benefit pension plan. That report may be obtained by writing to the TRS Communications Department, 1000 Red River Street, Austin, Texas 78701, by calling the TRS Communications Department at 1-800-223-8778, or by downloading the report from the TRS internet website, www.trs.state.tx.us, under the TRS Publications heading. Funding Policy

Since Fiscal Year 1998, State Law requires a state contribution rate of not less than 6.0% of gross earnings and .50% to a retirement health insurance plan. The District provides the contributions for salaries paid from federal and state grants and for salaries made above the statutory minimum. The employee's contribution rate is 6.4% of gross earnings and .65% to the retirement health insurance plan. Contribution requirements are not actuarially determined but are legally established each biennium pursuant to the following state funding policy: (1) The state constitution requires the legislature to establish a member contribution rate of not less than 6.0% of the member’s annual compensation and a state contribution rate of less than 6.0% and not more than 10.0% of the aggregate annual compensation of all members of the system during that fiscal year; (2) A state statute prohibits benefit improvements or contribution reductions if, as a result of a particular action, the time required to amortize TRS’s unfunded actuarial liabilities would be increased to a period that exceeds 31 years, or, if the amortization period already exceeds 31 years, the period would be increased by such action. State, District, and employee contribution information for the last three (3) years were as follows:

Fiscal Year

On Behalf - StateRetirement

Contribution

On Behalf - StateMedicare

Part D

District Annual Required

Contributions (ARC)

Percentage of ARC

ContributedEmployee

Contributions

2009 14,182,024$ 563,931$ 1,794,276$ 100% 14,733,525$ 2010 14,926,873$ 650,452$ 1,881,517$ 100% 15,416,863$ 2011 14,799,598$ 662,811$ 1,717,238$ 100% 15,343,616$

The On behalf State Contributions were recognized as revenues and expenses by the District. The District contributes to the Texas Public School Retired Employee Group Insurance Program (Medicare Part D), a cost-sharing multiple-employer defined benefit postemployment health care plan administered by TRS.

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K. HEALTH CARE COVERAGE

During the year ended, August 31, 2011 employees of the United Independent School District were covered by a health insurance plan (the plan). The District is not exposed to losses. The District paid premiums of $310.05 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 a licensed insurer. The plan was authorized by Section 21.922, Texas Education Code and was documented by contractual agreement. The contract between the District and the licensed insurer is renewable annually and terms of coverage and premium costs are included in the contractual provisions. Insurance settlements have not exceeded coverage in the last three years.

L. OTHER FINANCING SOURCES AND (USES)

Transfers of funds occur within the governmental funds of the District for accounting purposes.

The District’s Other Financing Sources, (Uses) and Transfers Out comprised of the following:

GeneralFund

Debt ServiceFund

OtherFunds

Issuance of Refunding Bonds $ - $ 34,000,000 $ -

Transfer In from Other Funds 100,000 4,150,000 -

Premium on Issuance of Bonds - 4,339,921 -

Transfer Out to Other Funds (4,150,000) - (112,882)

Payment to Refunded Bonds Escrow Agent - (37,907,432) -

$ (4,050,000) $ 4,582,489 $ (112,882)

A transfer from Special Revenue Fund 481 (Coca-Cola Fund) into the General Operating Fund is to cover a portion of Maintenance Tax Note payments that were issued by the District to purchase school buses. The Coca-Cola Fund committed $100,000 a year for ten years through the year 2012. A transfer from General Operating Fund into Debt Service Fund was used to pay for bond indebtedness for the Fiscal Year 2011. On August 25, 2011, the District issued $34,000,000 of Unlimited Tax Refunding Bonds, Series 2011, to be used to refund certain of the District’s currently outstanding bonds. The refunding transaction resulted in an economic loss of $2,727,432. An equity transfer was processed to Alexander High School Magnet Program for the amount of $12,882 for the Lamar Bruni Vergara Trust and UTSA Health Science grant program.

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M. GENERAL FUND FEDERAL SOURCE REVENUES

Program SourceCFDA

Number Total Grant

or Entitlement

Indirect Costs:

State Fiscal Stabilization Fund (SFSF) 84.394 $ 145,770

ESEA Title I, Part A - Basic 84.010A 237,216

ESEA Title I, School Improvement Program (JBA) 84.010A 381

ESEA Title I, School Improvement Program (GMS) 84.010A 71

ESEA Title I, Part C - Education of Migratory 84.011A 6,868

IDEA Part B, Formula 84.027A 99,666

IDEA Part B, Preschool 84.027A 473

Gear-Up Project - LBJHS 84.334A 2,428 Title III, LEP Immigrant 84.365A 39,274 ESEA Title I, Part A - Teacher & Principal Training 84.367A 27,871

Title I, Part D - Subpart 2 ARRA/Stimulus 84.386A 133 Title II, Part D Technology-ARRA/Stimulus 84.386A 592

Title I, Part A - ARRA/Stimulus 84.389A 56,345 Title I, School Improvement Prog-ARRA/Stimulus (JBA) 84.389A 3

Title I, School Improvement Prog-ARRA/Stimulus (GMS) 84.389A 16

IDEA Part B Formula-ARRA/Stimulus 84.391A 16,619

IDEA Part B Preschool-ARRA/Stimulus 84.392A 1,117

ESEA Title IV, Safe and Drug Free Schools 84.186A 444

Total Indirect Costs $ 635,287

Medicaid Reimbursements 2,807,258

Medicaid Administration Claim (MAC) Reimbursements 93.778 138,025

ROTC Reimbursements 12.113 223,061

Total $ 3,803,631

Indirect cost revenues was determined by applying approved indirect cost rates to actual applicable expenditures of federally funded grant programs. For Fiscal Year 2010/2011, the District operated with a 2.018% indirect cost rate.

N. MAINTENANCE OF EFFORT

United I.S.D. paid health care premiums as follows:

A) Total Annual Premiums for Health Care 2010-2011 20,297,330$

B) Subtract any non-medical expenditures: Life Insurance (122,257)

C) 2010-2011 Maintenance of Effort 20,175,073$

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O. DUE TO AND FROM OTHER GOVERNMENTS AND AGENCIES Amounts Due To and From Other Governments and Agencies are as follows:

Due To Due FromGeneral Fund Texas Department of Human Services -$ 2,282,673$ Texas Education Agency 6,098,023 - Federal Agencies - 99,518 Total General Fund 6,098,023 2,382,191

Major Special Revenue Funds Education Jobs Fund - 7,152,771 Total Major Special Revenue Funds - 7,152,771

Special Revenue Fund Texas Education Agency: ESEA Title IV, Part A, Safe/Drug Free Sch & Comm 4,346 ESEA Title I, Part A Improving Basic Program 2,760,644 ESEA Title I Part C, Migrant 39,528 ESEA Title I, Part B, Even Start Family Literacy Prog 1,302 IDEA B Formula 507,276 Summer School Feeding Program 110,507 Vocational Tech Prep Mini Grants 21,070 Carl D. Perkins Basic Grant - Career & Tech 23,621 ESEA Title II Part A, Teacher/Principal Training/Rec. 140,338 Title III, Part A, LEP 405,743 Project Gear UP State Partnership 54,537 Non Education Comm. Based Fund 5,599 Pregnancy, Education & Parenting Program 23,262 Student Success Initiative Grant 176,683 State Technology Allotment 21,209 - Texas Fitness Now Grant 17,398 U. S. Department of Education: - Stabilization Funds, ARRA Funds 3,155,974 Title II, Part D, Technology ARRA/Stimulus 2,822 IDEA B Formula ARRA/Formula 612,359 IDEA B Formula ARRA/Preschool 21,976 Title I, Part A, ARRA/Stimulus Funds 216,826 Total Special Revenue Funds 21,209 8,301,811

Debt Service Fund 552,607 -

Enterprise Fund Texas Education Agency: National School Breakfast/Lunch Program - 757,758

Total Due To/From Other Governments and Agencies 6,671,839$ 18,594,532$

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P. EDUCATIONAL SERVICE CONTRACT The District has an educational service contract with the Regional Day School Program for the Deaf (RDSPD) which provides for the efficient delivery of legally required special education and related services to eligible students who are deaf or hard of hearing within the boundaries of ESC, Region One. The District has contracted with Laredo Independent School District (LISD) to provide services through the RDSPD. The following is a summary of payments made to LISD:

Invoice No. Amount1 93,333$ 2 89,532

Total Paid 182,866$

Q. COMPLIANCE VIOLATION

The District is not aware of any compliance violations.

R. UNEMPLOYMENT COMPENSATION POOL

During the year ended August 31, 2011, United ISD 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 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. The Fund engages the services of an independent auditor to conduct a financial audit after the close of each plan 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 statements as of August 31, 2011, are available at the TASB offices and have been filed with the Texas Department of Insurance in Austin.

S. FUND BALANCE

The District recognizes the importance of maintaining its financial integrity; therefore, it has developed this policy to support its mission and its goals and objectives. The five classifications of fund balance of the governmental types are Non-spendable, Restricted, Committed, Assigned, and Unassigned.

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S. FUND BALANCE (Continued) Committed fund balance shall mean that portion of the fund balance that is constrained to a specific purpose by the Board. The Board’s commitment may be modified or rescinded by a majority vote in a scheduled meeting. Board commitments cannot exceed the amount of fund balance that is greater than the sum of non-spendable and restricted fund balances since that practice would commit funds that the District does not have. Board commitments must occur before the end of the reporting period with amounts to be determined subsequently. Assigned fund balance shall mean that portion of the fund balance that is spendable or available for appropriation but has been tentatively earmarked for some specific purpose by the Board, the Superintendent, or Superintendent’s designee. The Board delegates by formal action in a scheduled meeting specific persons or groups to assign certain fund balances. The Board may modify or rescind its delegation of authority by the same action. The authority to make assignments shall be in effect until modified or rescinded by the Board by majority vote in a scheduled meeting. The order of spending and availability shall be to reduce funds from the listed areas in the following order: restricted, committed, assigned, and unassigned. The fund balance policy can be found in CE Local. The District manages several Special Revenue Funds of which the following have a fund balance at August 31, 2011: State Technology Allotment – to account on a project basis for funds awarded to school

districts to purchase technological software or equipment that contributes to student learning, or to pay for training for educational personnel involved in the use of these materials. The State will not continue to fund this program in the future. The fund balance of $385,719 will be used to pay for a lease payment and will be fully consumed in Fiscal Year 2012.

Campus Activity Fund – to account on a project basis for transactions related to a principal’s

activity fund and the monies generated are not subject to recall by the school district’s board of trustees into the General Fund. The fund balance of $608,222 is fully controlled by the various campuses.

Migrant Program Grant – to account on a project basis to design, operate and support programs

that help migrant students overcome the challenges of a high level of mobility, cultural and language barriers, social isolation, and other difficulties associated with a migratory lifestyle, in order to succeed in school and to successfully transition to post-secondary education or employment. The fund balance of $3,100 will be used to cover expenses for migrant students and scholarships.

Permanent Trust Fund – to account on a project basis for a charitable donation in the amount of $50,000 that is to be invested in a certificate of deposit with the interest proceeds used each year to fund two annual scholarships starting in 2010. The fund balance is $51,974 of which $1,974 will be used for scholarships.

The District’s other Special Revenue Funds can be located on page 88.

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T. OUTSTANDING ENCUMBRANCES

As of August 31, 2011, the District had outstanding encumbrances of $7,243,666 and the following is a listing of the outstanding encumbrances by function: By Function Amount11 Instructional 638,570$ 13 Library/ Media Services 6,752 21 Instructional Leadership 1,250 23 School Leadership 8,076 33 Health Services 2,643 34 Student Transportation 75,028 36 Co/Extra Curricular 98,392 41 General Administration 324,483 51 Facilities Maintenance & Operations 1,408,853 52 Security & Monitoring Services 52,731 53 Data Processing Services 16,767 81 Facilities Acquisition & Construction 4,610,121

7,243,666$

81



82


Non Major Funds

83


SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for resources restricted to, or designated for, specific purposes by a grantor. Federal financial assistance often is accounted for in a Special Revenue Fund. In most Special Revenue Funds, unused balances are recorded as deferred revenue and carried forward to the succeeding fiscal year, provided the amounts carried forward are returned to the grantor at the close of specified project periods. The District budgets for Special Revenue Funds and uses project accounting for them in order to maintain integrity for the various sources of funds. Included in the District’s Special Revenue Funds are: 204 ESEA, Title IV, Part A, Safe and Drug Free Schools and Communities Act – to account on a project basis for funds granted as a result of the Improving Americas School Act of 1994. These funds are to be used to develop age-appropriate comprehensive violence and drug/alcohol education prevention programs. 211 ESEA, Title I, Part A, Improving Basic Programs – to account on a project basis for funds allocated for programs to local educational agencies which enable schools to provide opportunities for children served to acquire the knowledge and skills contained in the challenging State content standards and the State performance standards developed for all children. 212 ESEA, Title I, Part C, Education of Migratory Children – to account on a project basis for funds allocated for programs benefiting children of migrant agriculture or agriculture-related workers and children of migrant fishermen. 213 ESEA, Title I, Part B, Even Start Family Literacy – to account on a project basis for funds granted for programs to help parents become full partners in their children’s education, help children reach their full potential as learners, and provide literacy training for their parents by integrating adult education and early childhood education into a unified family-centered program. 224 IDEA Part B, Formula – to account on a project basis for funds granted to operate educational programs for handicapped children with disabilities. This fund classification includes building and improvement (sliver) subgrants. 225 IDEA Part B, Preschool – to account on a project basis for funds granted for preschool children with disabilities. 242 Summer Feeding Program, Department of Human Services (DHS) – to account on a project basis for funds received from the Department of Human Services that are awarded for meals provided to the community based on the average number of daily participants. This fund should be used regardless of whether a school district’s National School Breakfast and Lunch Program is accounted for in the General Fund, a Special Revenue Fund or an Enterprise Fund.

84


243 Vocational Education Tech-Prep Program – to account on a project basis for funds granted to provide a combined secondary and post-secondary program of technical skills in the areas of engineering, science, mechanical, industrial or practical arts or trades, agriculture, health and business. 244 Vocational Ed. Basic Grant (Carl D. Perkins Basic Grant for CATE) – to account on a project basis for funds to provide career and technology education to develop new and/or improve career and technology education programs for paid and unpaid unemployment, with full participation of individuals who are members of special populations, at a limited number of campuses (sites) or with respect to a limited number of program areas. 255 ESEA, Title II, Part A, Teacher/Principal Training and Recruiting– to account on a project basis for funds to be used to provide assistance to LEA’s to (1) increase student academic achievement through improving teacher and principal quality and increasing the number of highly qualified teachers in classrooms and highly qualified principals and assistant principals in schools, and (2) hold local education agencies and schools accountable for improving student academic achievement. 263 Title III, Part A, LEP- to account on a project basis for funds granted to improve the education of limited English proficient children, by assisting the children to learn English and meet challenging State academic content and student academic achievement standards. 266 ARRA Title XIV, State Fiscal Stabilization Fund - This fund classification is to be used to account, on a project basis, for funds granted to improve basic programs authorized by the ESEA of 1965, as amended by the NCLB Act of 2001, IDEA, the Adult and Family Literacy Act, the Carl D. Perkins Act of 2006, or for the modernization, renovation, and repairs that are consistent with a recognized green building rating system. This grant is funded by the American Recovery and Reinvestment Act (ARRA) of 2009, Title XIV. 274 GEAR UP - This fund classification is used to account, on a project basis, for funds granted to school districts received through ESC. These funds enable students to take advantage of the state’s new scholarship program for economically disadvantaged students. 279 Title II, Part D ARRA – Enhancing Education through Technology - This fund classification is used to account, on a project basis, for funds granted for the implementation and support of a comprehensive system that effectively uses technology in elementary and secondary schools to improve student academic achievement 283 IDEA, Part B Formula ARRA – to account, on a project basis, for funds granted to operate educational programs for children with disabilities. 284 IDEA, Part B Preschool ARRA – to account, on a project basis, for funds granted for preschool children with disabilities. 285 ARRA Title I, Part A, Improving Basic Programs - This fund classification is to be used to account, on a project basis, for funds allocated to local educational agencies to enable schools

85


to provide opportunities for children served to acquire the knowledge and skills contained in the challenging State content standards and to meet the challenging State performance standards developed for all children. This grant is funded by the American Recovery and Reinvestment Act (ARRA) of 2009, Title VIII. *This fund code is also used for ARRA Title I, Part D, Subpart 2. 287 Education Jobs Fund - to account on a project basis for funds granted for school level employee compensation and benefits and other expenses, such as support services, necessary to retain existing school level employees, recall or rehire former school level employees, or hire new school level employees. 287 Secure Our Schools COPS Grant - to account on a project basis for funds granted for campuses to assist with the purchase and development of school safety resources based upon a comprehensive approach to preventing school violence and individualized to the needs of the schools. This funding will allow recipients the opportunity to establish and enhance a variety of school safety equipment and/or programs to encourage the continuation and enhancement of school safety efforts meant to prevent school violence within their communities. 288 ARRA, Equipment Assistance Grant - to account on a project basis for funds granted to improve the infrastructure in the NSLP. The award may be used to purchase new equipment, renovate existing equipment or replace existing equipment. 289 Other Federal Special Revenue Funds (Child Care Development Fund)- to account for funds granted by the Texas Workforce Commission to provide for the expansion and improvement of the Pregnancy, Education, and Parenting Program. 392 Non-Educational Community Based Program – to account on a project basis for the provision of non- educational community-based support services to students with disabilities who would remain or have to be placed in residential facilities for educational reasons without the provision of these services. The support services may include transportation, respite for the parents, case management, social work, in-home family support and other items. 394 Pregnancy, Education, and Parenting Program – to account on a project basis for funds granted to provide pregnant and parenting students the services needed to keep them in school until completion. 397 Advanced Placement Incentive Program – to account on a project basis for funds awarded to school districts under the Texas Advanced Placement Award Incentive Program. 404 Student Success Initiative (Accelerated Reading/Math Instruction Program) – to account on a project basis for funds granted to provide intensive, targeted early intervention programs for students at every campus who have been identified as at-risk with reading/math difficulties, including dyslexia. 411 State Technology Allotment - to account on a project basis for funds awarded to school districts to purchase technological software or equipment that contributes to student learning, or to pay for training for educational personnel involved in the use of these materials.

86


414 Texas ASAP – to account on a project basis for funds granted to implement intensive after-school and summer programs designed to increase 10th and 11th grade student achievement as measured by the science portions of the TAKS tests. The intent is to provide direct and indirect (support) services to student sin Grades 9 through 12 using intervention programs that target students attending high schools with low student performance on the science TAKS tests. 415 Pre-kindergarten and Kindergarten Grant Program – to account on a project basis for funds granted to implement or expand kindergarten or pre-kindergarten programs not required under section 29.153 of the Texas Education Code. 422 Matching Fund for Library Purchases (Read to Succeed Program) – to account on a project basis for funds awarded to districts to help generate money for public school libraries and strengthen the campus reading program. Funds are generated through the sale of specialty license plates. 424 Texas Fitness Now Grant – to account on a project basis for funds awarded for the support of in-school physical education and fitness programs for students in grades 6,7, and / or 8. The grant places specific emphasis on the importance of physical education and fitness as the foundation for a life of healthy choices for the purpose of reducing childhood obesity and Type II diabetes. 461 Campus Activity Fund – to account for transactions related to a principal’s activity fund and the monies generated are not subject to recall by the school district’s board of trustees into the General Fund. 481 Coca-Cola Fund – to account for funds awarded to the school district for an exclusivity contract with the Coca Cola Bottling Company. 483 Community Partnership Activity – to account for funds donated from the community to assist students of the school district in continuing their education. 484 Migrant Program Grant – to account for on a project basis to design, operate and support programs that help migrant students overcome the challenges of a high level of mobility, cultural and language barriers, social isolation, and other difficulties associated with a migratory lifestyle, in order to succeed in school and to successfully transition to postsecondary education or employment. 488 Lamar Bruni Vergara Trust - to account for funds awarded to the school district to provide critical elements in education such as information access, communication and collaboration, multi-sensory experiences, and up-to-date equipment. 497 UTSA Health Science Grant – to account for funds awarded to the school district from The University of Texas Health Science Center at San Antonio for the implementation and teaching of Community Emergency Response Team (CERT) course.

87



COMBINING BALANCE SHEETNONMAJOR GOVERNMENTAL FUNDS

AUGUST 31, 2011

Control

Data

Codes

ESEA Title IV

Safe & Drug

Free Schools Basic Program

Improving

ESEA I, A

Migrant

Part C

ESEA Title I

Even Start

Part B

ESEA Title I

204 211 212 213

ASSETS

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

2,760,644 4,346 39,528 1,302 Receivables from Other Governments1240

- - - - Accrued Interest1250

- - - - Due from Other Funds1260

- - - - Restricted Assets1800

Total Assets1000 4,346 2,760,644 39,528 1,302 $ $ $ $


Liabilities:

41,321 798 3,357 - Accounts Payable $ $ $ $2110

454,817 - - - Accrued Wages Payable2160

2,264,506 3,548 36,171 1,302 Due to Other Funds2170

- - - - Due to Other Governments2180

- - - - Due to Student Groups2190

- - - - Deferred Revenues2300

Total Liabilities2000 4,346 2,760,644 39,528 1,302

Fund Balances:

Assigned Fund Balance:

- - - - Other Assigned Fund Balance3590

Total Fund Balances3000 - - - -

4000 Total Liabilities and Fund Balances 4,346 2,760,644 39,528 1,302 $ $ $ $

88


EXHIBIT H-1 (Cont'd)

IDEA - Part B

Formula Preschool

IDEA - Part B

Program

Feeding

Summer

Preparation

Technical -

Career and Career and

Technical -

Basic Grant

ESEA II,A

Training and

Recruiting

Title XIV

ARRA State

Stabilization

Title III, A

English Lang.

Acquisition

224 225 242 243 244 255 263 266

- - - - - 235 - - $ $ $ $ $ $ $ $

23,621 21,070 140,338 507,276 - 110,507 405,743 3,155,974

- - - - - - - -

- - - - - 22,825 - -

- - - - - - - -

507,276 - 133,567 21,070 23,621 140,338 405,743 3,155,974 $ $ $ $ $ $ $ $

- - - 4,674 - - 2,119 - $ $ $ $ $ $ $ $

- - 62,088 131,256 - - 35,871 -

23,621 21,070 78,250 371,346 - 133,567 367,753 3,155,974

- - - - - - - -

- - - - - - - -

- - - - - - - -

507,276 - 133,567 21,070 23,621 140,338 405,743 3,155,974

- - - - - - - -

- - - - - - - -

507,276 - 133,567 21,070 23,621 140,338 405,743 3,155,974 $ $ $ $ $ $ $ $

89




AUGUST 31, 2011

Control

Data

Codes

GEAR UP

Technology

ARRA - Ed.

Title II, D

Formula

ARRA

IDEA, Pt. B

Preschool

ARRA

IDEA, Pt. B

274 279 283 284

ASSETS


2,822 54,537 612,359 21,976 Receivables from Other Governments1240




Total Assets1000 54,537 2,822 612,359 21,976 $ $ $ $


Liabilities:

- - 316,257 - Accounts Payable $ $ $ $2110

- - 17,060 - Accrued Wages Payable2160

2,822 54,537 279,042 21,976 Due to Other Funds2170




Total Liabilities2000 54,537 2,822 612,359 21,976

Fund Balances:




4000 Total Liabilities and Fund Balances 54,537 2,822 612,359 21,976 $ $ $ $

90



ESEA I,A

Improving

Grant

Assistance

Equipment

Revenue Funds

Special

Other Federal

Based Support

Community

Non-Ed. Life

Skills

Program

Advanced

Placement

Incentives

Technology

Allotment

Student

Success

Initiative

285 288 289 392 394 397 404 411

Basic Program

62,460 - 42,468 - 21,645 - - 406,928 $ $ $ $ $ $ $ $

23,262 5,599 - 216,826 - - 176,683 -

- - - - - - - -

- - - - - - - -

- - - - - - - -

216,826 21,645 - 5,599 85,722 42,468 176,683 406,928 $ $ $ $ $ $ $ $

10,374 960 - 2,397 - - - - $ $ $ $ $ $ $ $

- - - - - - - -

- 4,639 - 214,429 21,645 - 176,683 -

- - - - - - - 21,209

- - - - - - - -

75,348 - 42,468 - - - - -

216,826 21,645 - 5,599 85,722 42,468 176,683 21,209

- - - - - - - 385,719

- - - - - - - 385,719

216,826 21,645 - 5,599 85,722 42,468 176,683 406,928 $ $ $ $ $ $ $ $

91




AUGUST 31, 2011

Control

Data

Codes

Texas

Reading

Initiative Grants

and Pre-K

Kindergarten

Purchases

for Library

Matching Fund

Pilot Prog.

Leadership

School

414 415 422 424

ASSETS


- - - 17,398 Receivables from Other Governments1240




Total Assets1000 - - - 17,398 $ $ $ $


Liabilities:

- - - 173 Accounts Payable $ $ $ $2110

- - - - Accrued Wages Payable2160

- - - 17,225 Due to Other Funds2170




Total Liabilities2000 - - - 17,398

Fund Balances:




4000 Total Liabilities and Fund Balances - - - 17,398 $ $ $ $

92



Campus

Activity Fund

Coca-Cola

Activity

Partnerships

Community

Grant

Program

Migrant Lamar-Bruni

Vergara

Grant

UTSA Health

Science

Grant

Capital

Projects Fund

Interest 2003

Nonmajor

Special

Revenue Funds

461 481 483 484 488 497 Total 601

Funds

- 3,600 - 608,222 - 29,475 1,175,033 - $ $ $ $ $ $ $ $

- - - - - - 8,301,811 -

- - - - - - - -

- - - - - - 22,825 -

- - - - - - - -

608,222 - 29,475 3,600 - - 9,499,669 - $ $ $ $ $ $ $ $

- 500 - - - - 382,929 - $ $ $ $ $ $ $ $

- - - - - - 701,092 -

- - - - - - 7,250,106 -

- - - - - - 21,209 -

- - - - - 29,475 29,475 -

- - - - - - 117,816 -

- - 29,475 500 - - 8,502,628 -

- 3,100 - 608,222 - - 997,041 -

608,222 - - 3,100 - - 997,041 -

608,222 - 29,475 3,600 - - 9,499,669 - $ $ $ $ $ $ $ $

93




AUGUST 31, 2011

Control

Data

Codes

Capital

Projects

LBJ Repairs Fund 2001

Projects

Capital

Fund 2004

Projects

Capital

Fund 2005

Projects

Capital

602 617 618 619

ASSETS


- - - - Receivables from Other Governments1240




Total Assets1000 - - - - $ $ $ $


Liabilities:

- - - - Accounts Payable $ $ $ $2110

- - - - Accrued Wages Payable2160

- - - - Due to Other Funds2170




Total Liabilities2000 - - - -

Fund Balances:




4000 Total Liabilities and Fund Balances - - - - $ $ $ $

94


EXHIBIT H-1

Nonmajor

Capital

Fund

Trust

Permanent

Funds

Governmental

Nonmajor

Total 472 Total

Project Funds

- 1,869 1,176,902 $ $ $

- - 8,301,811

- 105 105

- - 22,825

- 50,000 50,000

- 51,974 9,551,643 $ $ $

- - 382,929 $ $ $

- - 701,092

- - 7,250,106

- - 21,209

- - 29,475

- - 117,816

- - 8,502,628

- 51,974 1,049,015

- 51,974 1,049,015

- 51,974 9,551,643 $ $ $

95



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


Control

Data

Codes

ESEA Title IV

Safe & Drug

Free Schools Basic Program

Improving

ESEA I, A

Migrant

Part C

ESEA Title I

Even Start

Part B

ESEA Title I

204 211 212 213

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

12,554,042 42,034 349,685 125,211 Federal Program Revenues5900

Total Revenues5020 42,034 12,554,042 349,685 125,211

EXPENDITURES:

Current:8,008,773 - 128,908 47,315 Instruction00111,094,476 - - - Instructional Resources and Media Services0012

774,979 - 1,566 - Curriculum and Instructional Staff Development00132,260,851 - 86,741 29,873 Instructional Leadership0021

(244) - - - School Leadership0023153,373 42,034 42,050 64 Guidance, Counseling and Evaluation Services0031

703 - - - Health Services00333,580 - - 27,862 Student (Pupil) Transportation0034

- - - - Food Services0035 - - - - Extracurricular Activities0036 - - - - General Administration0041

300 - 1,850 497 Facilities Maintenance and Operations0051 - - - - Security and Monitoring Services0052

71,476 - - - Data Processing Services0053185,775 - 88,569 19,600 Community Services0061

Debt Service: - - - - Principal on Long Term Debt0071 - - - - Interest on Long Term Debt0072

Capital Outlay: - - - - Facilities Acquisition and Construction0081

Total Expenditures6030 42,034 12,554,042 349,685 125,211


- - - -

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

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

1200 Net Change in Fund Balance - - - -

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

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

96



IDEA - Part B

Formula Preschool

IDEA - Part B

ProgramFeeding

Summer

Preparation

Technical -

Career and

224 225 242 243 266

Title XIV

ARRA State

Stabilization

263

Title III, A

English Lang.

Acquisition

255

ESEA II,A

Training and

Recruiting

244

Career and

Technical -

Basic Grant

- - 3,609 - - - - - $ $ $ $ $ $ $ $ - - - - - - - -

58,863 6,981,277 448,073 21,070 11,765,222 1,986,345 1,379,582 478,595

6,981,277 58,863 451,681 21,070 11,765,222 1,986,345 1,379,582 478,595

58,863 3,893,079 - 21,070 9,092,898 1,493,100 1,315,545 465,828 - - - - 526,560 14,775 - - - 22,033 - - - 24,806 6,822 8,350 - 478,610 - - 43,907 453,139 - 4,417 - 192,034 - - 530,709 - - - - 1,457,491 - - - - - -

- 10,798 - - 3,905 - - - - 891,914 - - 109,149 - - - - - 451,681 - - - - - - 10,380 - - - - - - - - - - - - 57,215 - - - - - 858,093 - - - - - - - - - - - - - - - - - - - - 24,939 - - - 525 - -

- - - - 600,000 - - - - - - - - - - -

- - - - - - - -

6,981,277 58,863 451,681 21,070 11,765,222 1,986,345 1,379,582 478,595

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

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

97





Control

Data

Codes

GEAR UP

Technology

ARRA - Ed.

Title II, D

Formula

ARRA

IDEA, Pt. B

Preschool

ARRA

IDEA, Pt. B

274 279 283 284

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

56,703 172,109 4,719,550 202,068 Federal Program Revenues5900

Total Revenues5020 172,109 56,703 4,719,550 202,068

EXPENDITURES:

Current:22,869 21,952 1,158,220 202,068 Instruction0011

- - - - Instructional Resources and Media Services001233,834 28,516 122,724 - Curriculum and Instructional Staff Development0013

- - - - Instructional Leadership0021 - - - - School Leadership0023 - 120,000 - - Guidance, Counseling and Evaluation Services0031 - - - - Health Services0033 - - - - Student (Pupil) Transportation0034 - - - - Food Services0035 - - - - Extracurricular Activities0036 - - - - General Administration0041 - - - - Facilities Maintenance and Operations0051 - - 3,141 - Security and Monitoring Services0052 - - - - Data Processing Services0053 - 1,641 - - Community Services0061


Capital Outlay: - - 3,435,465 - Facilities Acquisition and Construction0081

Total Expenditures6030 172,109 56,703 4,719,550 202,068


- - - -



1200 Net Change in Fund Balance - - - -

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

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

98



ESEA I,A

Improving

Basic Program Grant

Assistance

Equipment

Revenue Funds

Special

Other Federal

Based Support

Community

Non-Ed.

285 288 289 392 411

Technology

Allotment

404

Student

Success

Initiative

397

Advanced

Placement

Incentives

394

Life

Skills

Program

- - - - - - - 3,363 $ $ $ $ $ $ $ $ - - - 7,822 1,142,818 626,910 36,153 104,706

64,527 3,568,493 65,537 - - - - -

3,568,493 64,527 65,537 7,822 1,142,818 626,910 36,153 108,069

- 2,998,612 65,537 7,822 53,591 625,042 32,133 3,757 - 39,183 - - - - - - - 198,666 - - - 1,868 4,019 - - 148,548 - - - - - - - 99,015 - - - - - - - - - - - - - -

- 47,421 - - - - - - - - - - - - - -

64,527 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 37,048 - - - - - 104,312

- - - - 1,035,656 - - - - - - - 29,504 - - -

- - - - - - - -

3,568,493 64,527 65,537 7,822 1,118,751 626,910 36,153 108,069

- - - - - - - 24,067

- - - - - - - -

- - - - - - - -

- - - - - - - 24,067

- - - - - - - 361,651

385,719 $ - $ - $ - $ - $ - $ - $ - $

99





Control

Data

Codes

Texas

Reading

Initiative Grants

and Pre-K

Kindergarten

Purchases

for Library

Matching Fund

Pilot Prog.

Leadership

School

414 415 422 424

REVENUES: - - - - Total Local and Intermediate Sources5700 $ $ $ $

1,920,600 9,000 22 101,205 State Program Revenues5800 - - - - Federal Program Revenues5900

Total Revenues5020 9,000 1,920,600 22 101,205

EXPENDITURES:

Current:1,920,600 9,000 - 101,205 Instruction0011

- - 22 - Instructional Resources and Media Services0012 - - - - Curriculum and Instructional Staff Development0013 - - - - Instructional Leadership0021 - - - - School Leadership0023 - - - - Guidance, Counseling and Evaluation Services0031 - - - - Health Services0033 - - - - Student (Pupil) Transportation0034 - - - - Food Services0035 - - - - Extracurricular Activities0036 - - - - General Administration0041 - - - - Facilities Maintenance and Operations0051 - - - - Security and Monitoring Services0052 - - - - Data Processing Services0053 - - - - Community Services0061


Capital Outlay: - - - - Facilities Acquisition and Construction0081

Total Expenditures6030 9,000 1,920,600 22 101,205


- - - -



1200 Net Change in Fund Balance

0100 Fund Balance - September 1 (Beginning)

3000 Fund Balance - August 31 (Ending)

- - - -

-

- $

-

$ -

-

$ -

-

$ -

100



Campus

Activity

Funds

Fund

Coca-Cola

Activity

Partnerships

Community

Grant

Program

Migrant

461 481 483 484 601

Capital

Projects Fund

Interest 2003

Total

Nonmajor

Special

Revenue Funds

497

UTSA Health

Science

Grant

488

Lamar-Bruni

Vergara

Grant

- 4,030,899 - 13,399 1,196 4,068,270 - 17,000 $ $ $ $ $ $ $ $ - - - - - 3,949,236 - - - - - - - 45,038,986 - -

4,030,899 - - 13,399 1,196 53,056,491 - 17,000

- 304,238 - 11,525 - 32,078,391 - 14,839 - 89,089 - - - 1,764,105 - - - - - - - 1,228,184 - - - - - - - 3,506,085 - - - 3,103,080 - - - 3,924,594 - - - 7,195 - - - 1,822,207 - -

- - - - - 62,827 - - - - - - - 1,032,505 - - - - - - - 516,208 - - - 57,684 - - - 68,064 - - - - - - - 57,215 - - - 629 - - - 861,370 - - - 115 - - - 3,256 - - - - - - - 71,476 - - - 177 - 1,498 - 464,084 - -

- - - - - 1,635,656 - - - - - - - 29,504 - -

- - - - - 3,435,465 - -

3,562,208 - - 13,024 - 52,561,197 - 14,839

468,690 - - 376 2,161 - 495,295 1,196

(100,000) - - - - (112,882)(3,002)(9,880)

- (100,000) - - - (112,882)(3,002)(9,880)

468,690 (100,000) - 376 (7,719) (3,002) 382,413 1,196

139,532 100,000 - 2,725 7,719 3,002 614,629 (1,196)

$ - $ 997,041 $ - $ - $ 3,100 $ - $ - $ 608,222

101





Control

Data

Codes

Capital

Projects

LBJ Repairs Fund 2001

Projects

Capital

Fund 2004

Projects

Capital

Fund 2005

Projects

Capital

602 617 618 619

REVENUES:4 410 - - Total Local and Intermediate Sources5700 $ $ $ $ - - - - State Program Revenues5800 - - - - Federal Program Revenues5900

Total Revenues5020 410 4 - -

EXPENDITURES:

Current: - - - - Instruction0011 - - - - Instructional Resources and Media Services0012 - - - - Curriculum and Instructional Staff Development0013 - - - - Instructional Leadership0021 - - - - School Leadership0023 - - - - Guidance, Counseling and Evaluation Services0031 - - - - Health Services0033 - - - - Student (Pupil) Transportation0034 - - - - Food Services0035 - - - - Extracurricular Activities0036 - - - - General Administration0041 - - - - Facilities Maintenance and Operations0051 - - - - Security and Monitoring Services0052 - - - - Data Processing Services0053 - - - - Community Services0061


Capital Outlay: - 293,480 992,229 76,025 Facilities Acquisition and Construction0081

Total Expenditures6030 293,480 - 992,229 76,025

1100 Excess (Deficiency) of Revenues Over (Under) (293,071) 4 (992,229) (76,025) ExpendituresOTHER FINANCING SOURCES (USES):

- - - - Transfers Out (Use)8911


1200 Net Change in Fund Balance

0100 Fund Balance - September 1 (Beginning)

3000 Fund Balance - August 31 (Ending)

(293,071) 4 (992,229) (76,025)

293,071

$ -

(4)

$ -

992,229

$ -

76,025

$ -

102


EXHIBIT H-2

Nonmajor

Capital

Project Funds Fund

Trust

Permanent

Funds

Governmental

Nonmajor

Total 472 Total

303 1,610 4,070,182 $ $ $ - - 3,949,236 - - 45,038,986

1,610 303 53,058,404

- - 32,078,391 - - 1,764,105 - - 1,228,184 - - 3,506,085 - - 3,924,594 - - 1,822,207

- - 62,827 - - 1,032,505 - - 516,208 - - 68,064 - - 57,215 - - 861,370 - - 3,256 - - 71,476 - - 464,084

- - 1,635,656 - - 29,504

- 1,361,735 4,797,200

1,361,735 - 53,922,931

(1,360,125) 303 (864,528)

- - (112,882)

- - (112,882)

(1,360,125) 303 (977,410)

1,360,125

- $

51,672

$ 51,974

2,026,425

$ 1,049,015

103


UNITED INDEPENDENT SCHOOL DISTRICT STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND FOR THE FISCAL YEAR ENDED AUGUST 31, 2011

The accompanying notes are an integral part of this statement.

Balance Net BalanceAugust 31, Additions Deductions Increase August 31,

2010 (Decrease) 2011

Student Funds by CampusASSETSCash and Cash Equivalents

United High School 175,714$ 941,279$ 915,318$ 25,961$ 201,675$ United High School 9th Grade Campus 4,486 116,921 100,685 16,235 20,721 United South High School 100,991 534,828 525,668 9,161 110,152 J.B. Alexander High School 189,008 684,673 656,229 28,444 217,452 S.T.E.P. ACADEMY - - - - - L.B.J. High School 58,907 386,123 360,467 25,656 84,563 United Middle School 35,690 115,891 111,449 4,442 40,132 United South Middle School 26,300 116,277 115,461 817 27,117 Salvador Garcia Middle School 6,947 81,336 77,552 3,783 10,730 Washington Middle School 19,218 129,179 115,187 13,993 33,211 Clark Middle School 49,552 176,747 192,022 (15,275) 34,277 Los Obispos Middle School 17,281 82,935 76,763 6,172 23,452 Trautmann Middle School 93,271 238,406 261,450 (23,043) 70,227 Trautmann Middle 6th Grade Campus 11,653 43,418 39,717 3,701 15,354 Gonzalez Middle School 20,887 103,174 80,605 22,569 43,456

Lamar Bruni Vergara Middle School 13,717 71,213 64,356 6,857 20,573 Nye Elementary School 45,467 90,306 108,407 (18,100) 27,367 Clark Elementary School 9,355 1,675 2,737 (1,063) 8,292 Salinas Elementary School 16,214 61,601 61,317 284 16,498 Newman Elementary School 7,356 285 285 - 7,356 Trautmann Elementary School 4,213 85,033 76,733 8,300 12,513 Perez Elementary School 8,781 16,721 17,247 (525) 8,256 Finley Elementary School 9,637 39,487 29,664 9,823 19,460 United DD Hachar Elementary School 5,355 15,044 18,741 (3,698) 1,658 Gutierrez Elementary School 10,743 88,992 74,638 14,353 25,096 Ruiz Elementary School 15,771 56,027 50,785 5,241 21,013 Matias De Llano Elementary School 18,045 77,252 69,893 7,359 25,404 Kazen Elementary School 2,379 36,566 38,104 (1,539) 840 Juarez-Lincoln Elementary School 9,269 10,032 11,934 (1,902) 7,367 Prada Elementary School 8,690 25,094 24,440 655 9,345 Borchers Elementary School 8,300 68,636 49,552 19,084 27,385 Kennedy-Zapata Elementary School 4,678 21,767 20,952 815 5,493 Col. Santos Benavides Elementary School 79,330 136,508 151,815 (15,307) 64,023 Roosevelt Elementary School 12,283 33,892 34,278 (386) 11,897 Sen. Judith Zaffirini Elementary School 36,727 44,038 40,564 3,475 40,202 Dr. Henry Cuellar Elementary School 13,899 7,943 7,125 817 14,716 Muller Elementary School 28,351 25,547 32,271 (6,724) 21,627 Arndt Elementary School 20,997 36,978 37,060 (82) 20,915 Bonnie Garcia Elementary 21,449 60,446 58,327 2,119 23,569 Centeno Elementary 29,536 289 289 - 29,536 Malakoff Elementary 16,017 1,620 167 1,453 17,470 Fasken Elementary 30,213 104,258 98,383 5,874 36,087 Killam Elementary 14,746 38,398 35,603 2,795 17,541 Special Student Activities 39,947 183,639 185,732 (2,093) 37,855 Total Cash and Cash Equivalents 1,351,371 5,190,473 5,029,972 160,501 1,511,872

Other Receivables - 168 - 168 168 TOTAL ASSETS 1,351,371$ 5,190,641$ 5,029,972$ 160,669$ 1,512,040$

LIABILITIESDue to General Fund -$ 10,000$ -$ 10,000$ 10,000$ Due to Student Groups 1,311,424 4,997,002 4,844,240 152,762 1,464,186 Due to Special Activities 39,947 183,639 185,732 (2,093) 37,855

TOTAL LIABILITIES 1,351,371$ 5,190,641$ 5,029,972$ 160,669$ 1,512,040$

104


EXHIBIT J-4UNITED INDEPENDENT SCHOOL DISTRICT

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL - CHILD NUTRITION PROGRAM


Control

Data

CodesOriginal Final

(GAAP BASIS)

(Negative)

Positive or


Budgeted Amounts

REVENUES:2,545,736 2,542,267 2,479,559 (66,177)Total Local and Intermediate Sources $ $ $ $5700

753,100 130,000 644,009 (109,091)State Program Revenues5800

Total Revenues5020 2,672,267 3,298,836 3,123,568 (175,268)

EXPENDITURES:23,099,894 22,476,794 21,976,906 1,122,988 Food Services0035

342,951 324,883 164,323 178,628 Plant Maintenance and Operations0051

Debt Service:16,000 16,000 - 16,000 Debt Service - Principal on Long Term Debt0071

Total Expenditures6030 22,817,677 23,458,845 22,141,229 1,317,616


(20,145,410) (20,160,009) (19,017,661) 1,142,348

OTHER FINANCING SOURCES (USES): 5,931,041 5,931,041 6,027,692 96,651 National School Breakfast Program7952

12,710,900 12,710,900 12,566,303 (144,597)National School Lunch Program7953

1,500,000 1,500,000 1,281,096 (218,904)Donated Commodities (USDA)7954

3,469 3,469 2,722 (747)Investment Income7955

Total Other Financing Sources (Uses) 7080 20,145,410 20,145,410 19,877,813 (267,597)

1200 Change in Net Assets - (14,599) 860,152 874,751

0100 Total Net Assets - September 1 (Beginning) 2,993,871 2,993,871 2,993,871 -

3000 Total Net Assets - August 31 (Ending) $ 2,993,871 $ 2,979,272 $ 3,854,023 $ 874,751

105



SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL - DEBT SERVICE FUND


Control

Data

CodesOriginal Final

(GAAP BASIS)

(Negative)

Positive or


Budgeted Amounts

REVENUES:14,763,415 14,763,415 14,671,534 (91,881)Total Local and Intermediate Sources $ $ $ $5700

7,254,458 7,254,458 7,705,463 451,005 State Program Revenues5800

Total Revenues5020 22,017,873 22,017,873 22,376,997 359,124

EXPENDITURES:

Debt Service:15,715,000 15,715,000 15,715,000 - Principal on Long Term Debt0071

10,437,138 10,437,138 10,437,138 - Interest on Long Term Debt0072

448,000 5,000 437,479 10,521 Bond Issuance Cost and Fees0073

Total Expenditures6030 26,157,138 26,600,138 26,589,616 10,522


(4,139,265) (4,582,265) (4,212,619) 369,646

OTHER FINANCING SOURCES (USES): 34,000,000 - 34,000,000 - Refunding Bonds Issued7901

4,150,000 - 4,150,000 - Transfers In7915

4,339,921 - 4,339,921 - Premium or Discount on Issuance of Bonds7916

(37,907,432) - (37,907,432) - Payment to Bond Refunding Escrow Agent (Use)8949

Total Other Financing Sources (Uses) 7080 - 4,582,489 4,582,489 -

1200 Net Change in Fund Balances (4,139,265) 224 369,869 369,646

0100 Fund Balance - September 1 (Beginning) 4,573,846 4,573,846 4,573,846 -

3000 Fund Balance - August 31 (Ending) $ 434,581 $ 4,574,069 $ 4,943,715 $ 369,646

106


Texas Education Agency:

Required Schedules

107



108



SCHEDULE OF DELINQUENT TAXES RECEIVABLE

FISCAL YEAR ENDED AUGUST 31, 2011

Last 10 Years Ended

August 31

Tax Rates

Debt ServiceMaintenance Tax Purposes

Value for School

Assessed/Appraised

(1) (2) (3)

VariousVarious 10,875,893,335 and prior years2002 $

0.1493011.327570 4,533,311,327 2003

0.1469381.329933 4,892,183,079 2004

0.1469261.379945 5,227,345,817 2005

0.2269261.379945 6,264,666,797 2006

0.2107581.263597 7,682,484,544 2007

0.1548601.030009 8,090,923,934 2008

0.1548601.040000 9,051,070,951 2009

0.1548601.040000 9,292,978,346 2010

0.1548601.040000 9,407,610,071 (School year under audit)2011

1000 TOTALS

Column 10 + 20 - 31 - 32 + 40 equals column 50

Column 3 - Assessed/Appraised Value for School Tax Purpose:


Column 3 - Assessed/Appraised Value for School Tax Purpose: Net appraised value after deductions of all exemptions and reductions allowed





Column 20 - Current Year's Levy: Calculated by multiplying tax rate(s) times applicable Assessed/Appraised Value(s)







Column 31 and 32 - Maintenance Collections and Debt Service Collections:




Column 31 and 32 - Maintenance Collections and Debt Service Collections: Total collections net of column 40, not including penalties and interest





Column 40 - Entire Year's Adjustments:





Column 40 - Entire Year's Adjustments: Adjustments include corrections for errors in taxes assessed and taxes lost to freeze











Column 50 - Ending Balance 8/31/2011:






Column 50 - Ending Balance 8/31/2011: Total agrees with Exhibit A-1, Statement of Net Assets, Code 1220 - Property Taxes Receivable (Delinquent)

109


EXHIBIT J-1

9/1/2010

Balance

Beginning

Total Levy

Year's

Current

(20)(10) (50)

Ending

Balance

8/31/2011

(40)

Entire

Year's

Adjustments

(31)

Maintenance

Collections

(32)

Debt Service

Collections

- 552,229 6,439 (43,529)$ $ $ $ $ 500,222 $ 2,038

- 142,837 4,039 (7,761) 130,590 447

- 177,029 8,885 (7,561) 159,615 969

- 226,159 28,115 (9,558) 185,521 2,965

- 336,315 31,284 (17,724) 282,267 5,040

- 457,944 72,076 (21,009) 352,807 12,053

- 534,526 124,223 (30,895) 360,888 18,520

- 1,440,542 405,581 (162,011) 812,575 60,375

- 3,937,673 1,381,893 (743,994) 1,606,823 204,963

112,407,770 - 94,605,530 (218,291) 3,496,565 14,087,383

$ 7,887,875 $ (1,262,334)$ 96,668,064 $ 112,407,770 $ 7,805,255 $ 14,394,751

110



SCHEDULE OF EXPENDITURES FOR COMPUTATIONS OF INDIRECT COST FOR 2012-2013GENERAL AND SPECIAL REVENUE FUNDS

AUGUST 31, 2011

FUNCTION 41 AND RELATED FUNCTION 53 - GENERAL ADMINISTRATION, 99 - APPRAISAL DISTRICT COST

Account

Number Board

School

(702)

Collections

Tax

(703)

Office

Supt's

(701)

21 3 4

(750)

Indirect

Cost

5

(720)

Direct

Cost

6

(other)

Miscellaneous

7

Total

Account

Name

379,9363,194 470,231 5,748,901 1,364,522 - 7,966,784$ $ $ $ $ $ $PAYROLL COSTS611X-6146

-- - - - - -Leave for Separating

Employees in Fn 41 & 53

6149

-- - - - - -Leave - Separating Employees

not in 41 & 53

6149

-628,903 - - - - 628,903Legal Services6211

-- - 35,000 - - 35,000Audit Services6212

1,462,974- - - - - 1,462,974Tax Appraisal/Collection -

Appraisal in Fn 99

6213

-- - 17,052 - - 17,052Other Professional Services621X

-- - - - - -Tuition and Transfer Payments6220

-- - - - - -Education Service Centers6230

-- - - 304,301 - 304,301Contr. Maint. and Repair6240

-- - - - - -Utilities6250

1,061- 6,061 37,652 91,490 - 136,264Rentals6260

11,36620,417 - 139,500 218,383 - 389,666Miscellaneous Contr.6290

-- - 1,679 248 - 1,927Textbooks and Reading6320

-- - - - - -Testing Materials6330

30,51812,133 6,839 121,373 169,836 - 340,699Other Supplies Materials63XX

2,37110,094 3,612 59,692 13,962 - 89,731Travel, Subsistence, Stipends6410

-- - - - - -Ins. and Bonding Costs6420

-12,186 - - - - 12,186Election Costs6430

42020,622 29,896 389,636 510 - 441,084Miscellaneous Operating6490

-- - - - - -Debt Service6500

-- - - - 107,205 107,205Capital Outlay6600

$TOTAL6000 707,549 1,888,646 516,639 6,550,485 2,163,253 107,205 11,933,776$ $ $ $ $ $

Total expenditures/expenses for General and Special Revenue Funds: and Enterprise 385,979,447

LESS: Deductions of Unallowable Costs

Total Capital Outlay (6600) 28,700,813(10)

Total Debt & Lease(6500)

Plant Maintenance (Function 51, 6100-6400)

Food (Function 35, 6341 and 6499)

Stipends (6413)

Column 4 (above) - Total Indirect Cost

SubTotal:

Net Allowed Direct Cost

Total Cost of Buildings before Depreciation (1520)

Historical Cost of Building over 50 years old

Amount of Federal Money in Building Cost (Net of #16)

Total Cost of Furniture & Equipment before Depreciation (1530 & 1540)

(8) NOTE A:

4,287,054(11)

(12) 33,405,958

(13) 8,535,883

(14) 10,380

6,550,485

81,490,572

304,488,874

442,831,206(15)

(16) 396,568

(17) -

(18) 45,072,330

$1,062,649 in Function 53 expenditures are included in this report on administrative costs.

$

$

$

$

$

$

$

(9)

Historical Cost of Furniture & Equipment over 16 years old (19) $ 426,387

Amount of Federal Money in Furniture & Equipment (Net of #19) (20) $ 7,148,565

FISCAL YEAR

CUMULATIVE

$1,462,974 in Function 99 expenditures for appraisal district costs are included in this report on administrative costs.

111



FUND BALANCE AND CASH FLOW CALCULATION WORKSHEET

GENERAL FUND AS OF AUGUST 31, 2011

UNAUDITED

Total General Fund Balance as of 8/31/11 (Exhibit C-1 object 3000 for the General Fund Only)

102,662,832 1 $

Total Non-Spendable Fund Balance (from Exhibit C-1 - for the General Fund Only)

2 807,843 $

Total Restricted Fund Balance (from Exhibit C-1 - for the General Fund Only)

3 15,856,068

Total Committed Fund Balance (from Exhibit C-1 - for the General Fund Only)

4 8,100,000

Total Assigned Fund Balance (from Exhibit C-1 - for the General Fund Only)

5 125,000

6 Estimated amount needed to cover fall cash flow deficits in the General Fund (Net of borrowed funds and funds representing deferred revenues.)

-

7 Estimate of two month's average cash disbursements during the fiscal year. 49,150,609

8

13Excess (Deficit) Unassigned Fund Balance (Line 1 minus Line 13)

24,801,418

United Independent School District Board Policy CA(Local) states the General Fund's Unassigned Fund Balance shall maintain a balance of one month's projected expenditures. The 2011-2012 Adopted Budget of $294,903,656 calculates to one month's projected expenditures of $24,575,305. In addition, UISD received $7,152,771 from the Education Jobs Fund, which will be used to meet expected State revenue shortfalls in fiscal year 2012-2013.

Explanation of need for and/or projected use of net positive Unassigned General Fund Fund Balance:

$

12

9

10

11

Estimate of delayed payments from state sources (58xx). -

Estimate of underpayment from state sources equal to variance between Legislative Payment Estimate (LPE) and District Planning Estimate (DPE) or District's calculated earned state aid amount.

-

Estimate of delayed payments from federal sources (59xx) 3,821,894

Estimate of expenditures to be reimbursed to General Fund from Capital Projects Fund (uses of General Fund cash after bond referendum and prior to issuance of bonds)

-

Optimum Fund Balance and Cash Flow (Lines 2+3+4+5+6+7+8+9+10+11) 77,861,414

112


Capital Assets Used in the Operation of Governmental Funds

113



114


2011 2010

Governmental Funds Capital Assets:Land 35,625,932$ 30,019,994$ Buildings 442,831,205 429,722,991 Improvements other than buildings - - Machinery and equipment 45,072,330 42,465,175 Construction in progress 13,268,609 10,014,419

Total governmental funds capital assets 536,798,076$ 512,222,579$

Investments in governmental funds capital assets by source:

General Fund (1) 78,018,326$ 59,793,509$ Special Revenue Fund 16,767,565 11,614,340 Capital Projects Fund 440,220,410 438,938,185 Donations 1,791,775 1,876,545

Total governmental funds capital assets 536,798,076$ 512,222,579$

Notes: (1) Detailed data is not available for prior years.

(2) This schedule presents only the capital assets related to governmental funds. Accordingly, the capital assets reported in the Enterprise Fund (Food Services) are excluded from the above amounts.


CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS(2)

INVESTMENT IN GOVERNMENTAL FUNDS CAPITAL ASSETS BY SOURCEAUGUST 31, 2011

115


IMPROVEMENTSOTHER THAN MACHINERY & CONSTR.

FUNCTION AND ACTIVITY LAND BUILDINGS BUILDINGS EQUIPMENT (2) IN PROGRESS TOTAL

INSTRUCTION-11United High School 981,669$ 7,855,000$ 36,709$ 1,142,495$ -$ 10,015,873$ New United High School 3,790,112 40,021,388 - 234,647 - 44,046,147 United High 9th Grade - 2,013,001 - - 497,435 2,510,436 United South High School 150,000 18,406,130 19,515 384,865 - 18,960,511 John B Alexander High School 1,068,929 14,354,327 6,234 283,604 - 15,713,093 Alternative Education Program - - - 6,091 - 6,091 JBA Magnet School - 1,718,116 - 19,238 - 1,737,354 United South Magnet School - - - 14,323 - 14,323 United Magnet School - - - 66,510 - 66,510 LBJ High School 1,844,981 16,275,977 772,132 577,491 - 19,470,581 United Middle School 250,000 5,166,477 9,507 214,193 - 5,640,177 United South Middle School 463,584 4,248,992 - 85,913 - 4,798,490 Salvador Garcia Middle School 527,849 4,470,604 - 59,548 - 5,058,001 Washington Middle School 894,343 4,435,861 - 209,140 - 5,539,344 Clark Middle School 150,000 6,441,893 - 175,291 - 6,767,184 Los Obispos Middle School 574,490 4,345,118 - 60,057 - 4,979,665 Trautmann Middle School 1,000,000 4,907,093 - 115,259 - 6,022,352 Antonio Gonzalez Middle School 7,778 5,330,052 6,348 111,494 - 5,455,672 Lamar Bruni Vergara Middle School 1,033,581 9,497,415 - 309,943 - 10,840,939 Nye Elementary School 175,000 10,778,870 - 51,281 - 11,005,151 Clark Elementary School 150,000 1,879,208 - 23,866 - 2,053,073 Salinas Elementary School 150,000 2,430,409 - 91,063 - 2,671,471 Newman Elementary School 100,000 2,721,047 680 26,259 - 2,847,986 Trautmann Elementary School 400,000 4,167,822 3,336 156,300 - 4,727,458 Perez Elementary School 150,000 3,865,746 16,428 23,866 - 4,056,039 Finley Elementary School 220,000 3,302,692 - 208,003 - 3,730,695 D D Hachar Elementary School 220,000 3,676,920 43,724 16,555 - 3,957,199 Amparo Gutierrez Elementary School 550,000 2,773,149 39,617 20,341 - 3,383,107 Alicia Ruiz Elementary School 150,000 2,939,952 - 25,906 - 3,115,858 Matias De Llano Jr Elementary School 200,000 1,771,097 - 192,338 - 2,163,435 Kazen Elementary School 320,000 1,624,236 - 16,824 - 1,961,060 Juarez Lincoln Elmentary School 52,862 2,269,827 6,300 17,757 - 2,346,745 Prada Elementary School 142,300 4,218,480 - 29,431 - 4,390,212 Borchers Elementary School 575,867 5,952,772 14,800 257,415 - 6,800,854 Kennedy-Zapata Elementary School 231,480 3,191,944 11,750 35,190 - 3,470,365 Col Santos Benavides School 250,000 10,066,858 - 59,617 - 10,376,475 Roosevelet Elementary School 150,000 5,076,541 15,750 6,619 - 5,248,910 Zaffirini Elementary School 372,202 4,949,943 - 317,187 - 5,639,332 Cuellar Elementary School 444,875 4,687,594 924 15,776 - 5,149,168 Muller Elementary School 404,419 4,669,876 1,274 37,117 - 5,112,686 Arndt Elementary School 447,950 4,965,171 - 38,141 - 5,451,261 R Centeno Elementary School 617,095 7,144,412 - 5,565 - 7,767,072 Bonnie Lopez Garcia Elementary School 506,822 7,113,304 - 226,320 - 7,846,446 Malakoff Elementary School 137,863 7,185,281 - 76,699 - 7,399,844 Fasken Elementary School Elementary 853,277 6,975,040 - 858,464 - 8,686,782 Hachar Property Elementary 192,458 - - - - 192,458 Killam Property 56,704 7,269,956 38,430 34,917 - 7,400,008 Dillworth Property - 4,000 - - - 4,000 Director Of Special Population - - - 13,540 - 13,540 Special Education - - - 2,173,885 - 2,173,885 Career & Technology - - - 7,985 - 7,985 Even Start Program - - - - - - Asst Supt Instruction - - - 101,398 - 101,398 Federal Programs - - - 7,161 - 7,161 Technology Department - - - 433,031 - 433,031 Music Department - - 22,291 21,900 - 44,191 District Wide Administration 4,145,044 98,678 23,755 1,058,957 25,632 5,352,066

TOTAL 25,103,536$ 277,258,271$ 1,089,504$ 10,756,774$ 523,067$ 314,731,153$

INSTRUCTIONAL RESOURCES & MEDIA-12United High School -$ 882,275$ -$ 55,082$ -$ 937,357$ United South High School - 495,065 - 63,687 10,173 568,926 John B Alexander High School - 541,878 - 25,982 - 567,860 LBJ High School - 647,332 - 69,307 - 716,639 United Middle School - 256,086 - 31,881 - 287,967

UNITED INDEPENDENT SCHOOL DISTRICTCAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS

SCHEDULE BY FUNCTION AND ACTIVITYFOR THE FISCAL YEAR ENDED AUGUST 31, 2011

116






United South Middle School -$ 189,529$ -$ 15,073$ -$ 204,602$ Salvador Garcia Middle School - 589,159 - - - 589,159 Washington Middle School - 605,824 - 20,581 - 626,405 Clark Middle School - 748,944 - 12,942 - 761,886 Los Obispos Middle School - 592,553 - - - 592,553 Trautmann Middle School - 574,890 - 27,528 - 602,418 Antonio Gonzalez Middle School - 761,436 - 54,296 - 815,732 Lamar Bruni Vergada Middle School - - - 7,777 - 7,777 Nye Elementary School - 296,217 - - - 296,217 Clark Elementary School - 68,735 - - - 68,735 Salinas Elementary School - 111,680 - 21,696 - 133,376 Newman Elementary School - 159,041 - - - 159,041 Trautmann Elementary School - 73,422 - 14,506 - 87,927 Perez Elementary School - 255,543 - - - 255,543 Finley Elementary School - 221,256 - - - 221,256 D D Hachar Elementary School - 276,494 - - - 276,494 Amparo Gutierrez Elementary School - 246,746 - - - 246,746 Alicia Ruiz Elementary School - 258,487 - - - 258,487 Matias De Llano Jr Elementary School - 268,101 - - - 268,101 Kazen Elementary School - 228,467 - - - 228,467 Juarez-Lincoln Elementary School - 274,145 - - - 274,145 Prada Elementary School - 255,222 - - - 255,222 Charles Borchers Elementary School - 602,812 - 44,160 - 646,972 Kennedy-Zapata Elementary School - 332,050 - - - 332,050 Col Santos Benavides Elem School - 175,651 - 8,718 - 184,369 Roosevelt Elementary School - 309,166 - - - 309,166 Zaffirini Elementary School - 373,811 - 17,555 - 391,366 Cuellar Elementary School - 352,958 - 9,972 - 362,930 Muller Elementary School - 352,826 - 19,573 - 372,399 Arndt Elementary School - 374,977 - 22,383 - 397,360 Bonnie Garcia Elementary School - - - 63,638 - 63,638 R. Centeno Elementary School - - - 10,047 - 10,047 Malakoff Elementary School - - - 34,803 - 34,803 Fasken Elementary School - - - 34,357 - 34,357 Killam Elementary School - - - 18,159 - 18,159 Instructional Television - 769,158 - - 41,824 810,982

TOTAL -$ 13,521,937$ -$ 703,702$ 51,997$ 14,277,636$

INSTRUCTIONAL LEADERSHIP-21Pep Program -$ -$ -$ 120,438$ -$ 120,438$ School Support Orange Team - 197,990 - 5,000 - 202,990 Instructional Accountability - - - 64,486 - 64,486 Fine Arts Department - - - 17,276 - 17,276 Technology Department - - - 52,282 - 52,282 Asst Supt Instruction - - - 39,504 - 39,504 State Compensatory Program - - - 36,000 - 36,000

TOTAL -$ 197,990$ -$ 334,986$ -$ 532,976$

SCHOOL ADMINISTRATION-23United High School -$ 542,938$ -$ -$ -$ 542,938$ United South High School - 660,087 - - - 660,087 John B Alexander High School - 650,254 - - - 650,254 Alternative Education Program - - - 9,962 - 9,962 JBA Magnet School - 149,401 - 47,656 - 197,057 LBJ High School - 863,110 - - - 863,110 United Middle School - 448,151 - - - 448,151 United South Middle School - 236,912 - - - 236,912 Salvador Garcia Middle School - 412,411 - - - 412,411 Washington Middle School - 424,077 - - - 424,077 Clark Middle School - 299,577 - - - 299,577 Los Obispos Middle School - 414,787 - - - 414,787 Trautmann Middle School - 402,423 - - - 402,423 Antonio Gonzalez Middle School - 380,718 - - - 380,718 Nye Elementary School - 13,133 - - - 13,133 Clark Elementary School - 154,653 - - - 154,653

117






Salinas Elementary School -$ 47,863$ -$ -$ -$ 47,863$ Newman Elementary School - 95,425 - - - 95,425 Trautmann Elementary School - 97,896 - - - 97,896 Perez Elementary School - 127,772 - - - 127,772 Finley Elementary School - 147,504 - - - 147,504 D D Hachar Elementary School - 230,412 - - - 230,412 A. Gutierrez Elementary School - 317,245 - - - 317,245 Alicia Ruiz Elementary School - 295,414 - - - 295,414 De Llano Jr Elementary School - 268,101 - - - 268,101 Kazen Elementary School - 228,467 - - - 228,467 Juarez-Lincoln Elemntary School - 274,145 - - - 274,145 Prada Elementary School - 218,762 - - - 218,762 Charles Borchers Elementary School - 452,109 - - - 452,109 Kennedy-Zapata Elementary School - 332,050 - - - 332,050 Col Santos Elementary School - 245,911 - - - 245,911 Roosevelt Elementary School - 309,166 - - - 309,166 Zaffirini Elementary School - 436,113 - - - 436,113 Cuellar Elementary School - 411,784 - - - 411,784 Muller Elementary School - 411,631 - - - 411,631 Arndt Elementary School - 437,474 - - - 437,474

TOTAL -$ 11,437,875$ -$ 57,618$ -$ 11,495,493$

HEALTH SERVICES-33Health Services -$ -$ -$ 6,000$ -$ 6,000$

- - - - - - TOTAL -$ -$ -$ 6,000$ -$ 6,000$

STUDENT TRANSPORTATION-34Transportation Dept -$ 2,227,812$ 156,948$ 19,938,996$ 19,297$ 22,343,054$ Energy/Environmental Management - - - 26,885 - 26,885 Special Education Department - - - 891,914 - 891,914 PEP Program - - - 59,461 - 59,461

TOTAL -$ 2,227,812$ 156,948$ 20,917,256$ 19,297$ 23,321,313$

FOOD SERVICES-35John B Alexander High School -$ -$ -$ 5,825$ -$ 5,825$ Trautmann Middle School - - - 9,047 - 9,047 Salinas Elementary School - - - 6,667 - 6,667 Kennedy-Zapata Elementary School - 341,275 - - - 341,275 Col Santos Elementary School - 281,041 - - - 281,041 Roosevelt Elementary School - 340,194 - - - 340,194 Zaffirini Elementary School - 436,113 - - - 436,113 Cuellar Elementary School - 411,784 - - - 411,784 Muller Elemetnary School - 411,631 - - - 411,631 Arndt Elementary School - 437,474 - - - 437,474 Food Service - - - 5,777 - 5,777

TOTAL -$ 2,659,511$ -$ 27,316$ -$ 2,686,827$

COCURRICULAR/EXTRACURRICULUM-36United High School -$ 1,553,261$ 196,447$ 28,894$ -$ 1,778,603$ United South High School - 1,581,797 364,617 - - 1,946,414 John B Alexander High School - 1,618,299 - 5,372 - 1,623,671 LBJ High School - 2,157,774 9,931 - - 2,167,705 United Middle School - 53,640 394,511 6,700 - 454,851 United South Middle School - 331,676 - - - 331,676 Salvador Garcia Middle School - 353,495 13,006 - - 366,501 Washington Middle School - 363,495 - - - 363,495 Clark Middle School - 311,568 - - - 311,568 Los Obispos Middle School - 355,532 - - - 355,532 Trautmann Middle School - 344,934 - - - 344,934 Antonio Gonzalez Middle School - 456,862 - 22,588 - 479,450 After School Program - - - 97,836 - 97,836 Fine Arts Department 1,006,577 12,856,366 76,243 66,059 7,799 14,013,043 Athletics Department 1,007,030 11,341,915 706,688 109,130 - 13,164,763

TOTAL 2,013,607$ 33,680,614$ 1,761,443$ 336,579$ 7,799$ 37,800,041$

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GENERAL ADMINISTRATION-41Director Of Technology -$ -$ -$ 2,558,709$ -$ 2,558,709$ State & Federal Prgorams - - 110,797 13,909 - 124,706 District Wide Administration - 98,001 91,462 453,376 - 642,839 Accounting Department - - 9,470 8,735 - 18,205 Management Records Department - - - 136,024 - 136,024 Human Services Department - 5,990 29,774 395,036 - 430,800 Tax Office Department - - - 158,674 - 158,674 Purchasing Department - - - 16,595 - 16,595 Director Of Communication - - - 98,616 - 98,616 Planning Department - - - 19,821 - 19,821 Printing Department - - - 60,253 - 60,253 Food Service 15,818 - - 169,102 - 184,920 Support Services - - - 144,759 - 144,759 Fixed Assets Department - - - 34,086 - 34,086 Risk Management - - - 20,253 - 20,253

TOTAL 15,818$ 103,991$ 241,502$ 4,287,947$ -$ 4,649,259$

PLANT MAINTENACE & OPERATION-51LBJ High School -$ 4,000$ 2,114,539$ 145,943$ 312,799$ 2,577,281$ New United High School - 14,035,969 1,469,923 105,636 1,336,478 16,948,006 United High 9th Grade Campus - - 620,156 - 447,256 1,067,412 United South High School - 44,051 313,665 18,909 531,712 908,337 John B Alexander High School - - 1,728,451 58,090 270,246 2,056,787 Alterntative Education - - 14,317 9,107 17,826 41,250 United Middle School - - 190,729 6,699 814,264 1,011,692 United South Middle School - - 183,621 - 374,022 557,644 Salvador Garcia Middle School - - 75,545 17,390 23,642 116,577 Washington Middle School - - 54,582 56,803 232,681 344,066 Clark Middle School - - 12,513 - 831,199 843,712 Los Obispos Middle School - - 28,283 - 12,672 40,955 Trautman Middle School - - 194,539 - 769,942 964,481 Trautman Middle 6th Grade Campus - - 12,989 - 684,152 697,141 Antonio Gonzalez Middle School - 685,292 114,183 - 41,968 841,443 Lamar Bruni Vergara Middle School - 138,929 89,917 17,830 8,500 255,175 Nye Elementary School - 3,605 149,461 9,500 20,067 182,633 Clark Elementary School - - 58,714 52,780 1,610,466 1,721,960 Salinas Elementary School - - 108,743 52,500 789,704 950,947 Newman Elementary School - - 74,110 - 1,517,338 1,591,448 Trautman Elementary School - - 11,114 - 161,935 173,049 Perez Elementary School - - 192,188 61,080 301,344 554,613 Finley Elementary School - - 73,859 58,330 170,222 302,411 D D Hachar Elementary School - - 35,500 17,025 67,796 120,321 Amparo Gutierrez Elementary School - 29,204 148,033 8,686 56,300 242,223 Alicia Ruiz Elementary School - - 46,313 31,880 59,939 138,132 Matias De Llano Elementary School - - 99,464 - 3,333 102,797 Kazen Elementary School - - 262,717 17,575 10,473 290,765 Juarez-Lincoln Elementary School - - 212,336 5,025 10,852 228,213 Prada Elementary School - - 45,231 5,550 18,556 69,336 Borchers Elementary - - 24,950 - 4,595 29,545 Kennedy-Zapata Elementary School - - 83,682 5,025 41,561 130,269 Col. Santos Benavides Elemementary - 21,628 9,400 - 73,486 104,514 Rooselvelt Elementary School - - 93,502 - 26,932 120,434 Zaffirini Elementary School - - 66,116 - 31,012 97,128 Cuellar Elementary School - - - - 7,750 7,750 Muller Elementary School - - 20,915 5,025 20,691 46,631 Arndt Elementary School - - 54,652 44,000 77,591 176,243 Garcia Elementary School - - 59,792 180,642 - 240,434 Rodolfo Centeno Elementary School - - 9,400 25,308 7,263 41,971 Malakoff Elementary School - - 47,146 25,308 9,123 81,577 Fasken Elementary School - 4,000 49,953 - 15,222 69,175 Killam Elementary School - - 16,098 - 23,174 39,272 Director Of Technology - - 87,864 265,516 5,680 359,060 Special Education - - - - 128,919 128,919

119






Pep Program -$ -$ -$ -$ 41,000$ 41,000$ Career & Technology/UIL - 15,645 - - 146,163 161,808 Even Start Program - - - 6,150 8,000 14,150 Fine Arts Department - 793 9,403 36,824 945 47,965 Athletics Department - - 395,873 76,662 144,859 617,395 Accounting Department - - 4,423 - - 4,423 Instructional Accountability - - 78,415 - - 78,415 Discipline Management - - - 539 - 539 District Wide Administrators - 907,649 796,771 181,295 873,513 2,759,228 Human Resources Department - - 10,978 - - 10,978 Health Services - - 7,315 - - 7,315 Food Service Department - 3,448 14,397 - 4,692 22,537 Central Receiving Department - 9,679 17,694 345,121 - 372,494 Transportation Department - - 189,418 - 225,462 414,881 Police Department - - 67,440 - 4,382 71,822 Energy/Environment Management - - 24,480 103,399 - 127,879 Construction Management - - - 8,114 - - Facilities Department - - 138,862 3,682,389 11,749 3,833,000 Janitorial Department - - - 5,900 - 5,900

TOTAL -$ 15,903,891$ 11,114,671$ 5,753,555$ 13,441,450$ 46,213,568$

SECURITY AND MONITORING AT SCHOOLS-52United High School -$ -$ 63,508$ 109,167$ -$ 172,675$ United South High School - - 65,469 - - 65,469 John B Alexander High School - - 64,869 - - 64,869 Alternative Education Program - - 48,268 - - 48,268 LBJ High School - - 67,069 - - 67,069 Cherish Center - - - 12,300 - 12,300 Districtwide Administrators - - 72,920 - - 72,920 Police Department - - 16,849 885,665 - 902,514

TOTAL -$ -$ 398,952$ 1,007,132$ -$ 1,406,084$

DATA PROCESSING SERVICES-53Director Of Technology -$ 120,242$ -$ 287,198$ -$ 407,439$ United South High School - - - 108,627 - 108,627 United South Middle School - - - 53,544 - 53,544 Salvador Garcia Middle School - - - 53,544 - 53,544 Washington Middle School - - - 53,544 - 53,544 Los Obispos Middle School - - - 52,908 - 52,908 Gonzalez Middle School - - - 66,327 - 66,327 Lamar Bruni Vergara Middle School - - - 66,327 - 66,327 Clark Elementary School - - - 38,524 - 38,524 Salinas Elementary School - - - 38,524 - 38,524 Perez Elementary School - - - 38,524 - 38,524 Kennedy-Zapata Elementary School - - - 38,524 - 38,524 Roosevelt Elementary School - - - 38,524 - 38,524 Sen. Zaffirini Elementary School - - - 23,169 - 23,169 Muller Elementary School - - - 5,557 - 5,557 District Wide Administrators - - - 31,809 - 31,809

TOTAL -$ 120,242$ -$ 995,169$ -$ 1,115,411$

FACILITIES & ACQUISITIONS-81United High School 40,113$ 1,635,946$ 2,277,154$ 57,864$ 25,880$ 4,036,957$ United 9th Campus - - 64,059 - - - United South High School - 9,500 1,407,712 63,950 - 1,481,162 John B Alexander High School - 3,700 1,991,193 13,800 - 2,008,693 Alternative Education Progr - - 33,780 428,365 - 462,145 LBJ High School - - 223,440 27,021 - 250,462 United Middle School - (270) 197,744 111,179 396,579 705,232 United South Middle School - 5,000 512,036 - 904,337 1,421,373 Salvador Garcia Middle School - - 317,806 5,990 62,702 386,498 Washington Middle School - 55,954 57,234 - 67,905 181,093 Clark Middle School - - 130,434 7,623 1,106 139,163 Los Obispos Middle School - - 239,600 - 31,753 271,353 Trautmann Middle School - - - - 66,018 66,018

120






Antonio Gonzalez Middle School -$ -$ -$ 2,848$ -$ 2,848$ Nye Elementary School - - 370,070 14,100 - 384,170 Clark Elementary School - - 21,688 23,280 318,469 363,437 Salinas Elementary School - - 133,734 - 138,928 272,662 Newman Elementary School - 397,928 252,013 30,800 210,660 891,402 Trautmann Elementary School - 611,531 793,362 51,778 73,314 1,529,985 Perez Elementary School - 5,834 139,971 22,786 784,204 952,795 Finley Elementary School - - 120,648 - 941,693 1,062,341 D D Hachar Elementary School - - 504,481 - - 504,481 Amparo Gutierrez Elementary - - 172,801 - 80,407 253,208 Alicia Ruiz Elementary School - - 300,417 - 16,175 316,592 Matias De Llano Jr Elementary School - - 254,560 114,585 - 369,145 Kazen Elementary School - - 280,036 8,686 122,865 411,587 Juarez Elementary School - - 294,801 - 116,001 410,802 Prada Elementary School - - 193,924 - - 193,924 Borchers Elementary School - 527,461 12,631 225,200 - 765,292 Kennedy-Zapata Elementary School - - 296,150 14,100 130,040 440,290 Col Santos Benavides School - - 1,380,568 - 18,305 1,398,873 Roosevelt Elementary School - - 15,750 - - 15,750 Zaffirrini Elementary School - - 22,000 - - 22,000 Muller Elementary School - 28,110 99,183 - - 127,293 Arndt Elementary School - - 18,312 44,600 - 62,912 Bonnie Garcia Elementary School - - 101,968 - - 101,968 Rodolfo Centeno Elementary School - - - 12,000 - 12,000 Fasken Elementary School - - 268 - - 268 Pep Program - - - 61,836 - 61,836 Silver Team Education - 35,514 21,700 - - 57,214 Instructional Television - 222,270 - - - 222,270 Early Childhood Center - - - - 96,445 96,445 Cherish Center - 3,838,556 - - - 3,838,556 Director Of Technology - - - 207,280 - 207,280 Fine Arts Department - - 2,352 - - 2,352 Athletics Department - 609,536 138,857 32,257 - 780,650 Human Resources Department - 187,683 - - - 187,683 District Wide Administration 6,084,054 40,143,180 8,904,335 (1,836,483) (5,379,263) 47,915,823 Printing Department - 112,000 - - - 112,000 Shipping/Receiving Department - 9,679 - - - 9,679 Facilities Department 400,000 - - - - 400,000 Transportation Department - - 188,285 21,063 475 209,823 Superintendent 1,968,805 - - - - 1,968,805 Police Department - - 29,884 23,183 - 53,067 Internal Audit - - - 23,182 - 23,182 Spi Default - - - 37,045 - 37,045 Risk Management - - - 38,376 - 38,376

TOTAL 8,492,972$ 48,439,110$ 22,516,940$ (111,706)$ (775,003)$ 78,562,314$

FUND TYPE TOTALS 35,625,932$ 405,551,244$ 37,279,961$ 45,072,330$ 13,268,609$ 536,798,076$

121


BALANCE AT BALANCE ATLOCATION AND ACTIVITY 08/31/10 ADDITIONS DELETIONS 08/31/11

INSTRUCTION

Assets in Service (1) -$ -$ -$ -$ United High School 9,288,777 130,948 - 9,419,725 New United High School 44,759,132 - - 44,759,132 United 9th Grade Campus 2,013,001 - - 2,013,001 United South High School 18,955,389 18,528 - 18,973,917 John B Alexander High School 15,668,214 38,578 - 15,706,792 Alternative Education Program 6,091 - - 6,091 Magnet School For Health/Science 1,737,354 - - 1,737,354 Magnet School For Business 14,323 - - 14,323 Magnet School For Engineering 66,510 - - 66,510 Lyndon B Johnson High School 19,470,581 - - 19,470,581 United Middle School 5,640,177 - - 5,640,177 United South Middle School 4,792,534 - - 4,792,534 Clark Middle School 6,767,184 - - 6,767,184 Washington Middle School 5,539,344 - - 5,539,344 Salvador Garcia Middle School 5,064,620 - 6,619 5,058,002 Los Obispos Middle School 4,979,665 - - 4,979,665 Trautmann Middle School 6,022,352 - - 6,022,352 Gonzalez Middle School 5,455,672 - - 5,455,672 Lamar Bruni Vergara Middle School 10,857,286 - - 10,857,286 Nye Elementary 11,005,150 - - 11,005,150 Clark Elementary 2,053,073 - - 2,053,073 Salinas Elementary 2,665,906 5,565 - 2,671,471 Newman Elementary 2,847,986 - - 2,847,986 Trautmann Elementary 4,715,773 5,565 - 4,721,338 Perez Elementary 4,056,040 - - 4,056,040 Finley Elementary 3,725,130 5,565 - 3,730,695 United D D Hachar Elementary 3,937,327 - - 3,937,327 Gutierrez Elementary 3,383,107 - - 3,383,107 Ruiz Elementary 3,110,293 5,565 - 3,115,858 Matias De Llano Jr Elementary 2,157,870 5,565 - 2,163,435 Kazen Elementary 1,961,060 - - 1,961,060 Juarez-Lincoln Elementary 2,346,745 - - 2,346,745 Prada Elementary 4,384,647 5,565 - 4,390,212 Borchers Elementary 6,795,289 5,565 - 6,800,854 Kennedy-Zapata Elementary 3,459,041 11,324 - 3,470,365 Colonel Santos Benavides 10,376,475 - - 10,376,475 F D Roosevelt Elementary 5,248,910 - - 5,248,910 Judith Zaffirini Elementary 5,633,767 5,565 - 5,639,332 Henry Cuellar Elementary 5,149,168 - - 5,149,168 Muller Elementary 5,107,121 5,565 - 5,112,686 John W Arndt Elementary 5,445,696 5,565 - 5,451,261 Bonnie Garcia Elementary 7,840,881 5,565 - 7,846,446 Centeno Elementary - 5,565 - 5,565 Malakoff Elementary 7,394,279 5,565 - 7,399,844 Fasken Elementary 8,656,217 5,565 - 8,661,782


SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS FOR THE FISCAL YEAR ENDED AUGUST 31, 2011

122





Killam Elementary School 7,417,773$ 5,565$ -$ 7,423,338$ Career & Technology 7,985 - - 7,985 Director Of Technology 356,957 66,110 - 423,067 Special Education 2,137,454 36,431 - 2,173,885 Even Start Program 24,278 - 24,278 - Guidance/Testing 13,540 - - 13,540 Federal Programs 7,161 - - 7,161 Asst Supt Instruction 101,398 - - 101,398 Music Department 44,191 - - 44,191 District Wide Administrators 4,957,546 - - 4,957,546 Spi Default 196,458 - - 196,458 Centeno Elementary 6,380,808 - - 6,380,808

TOTAL 312,200,705$ 385,393$ 30,897$ 312,555,203$

INSTRUCTIONAL RESOURCE & MEDIAUnited High School 903,999$ 33,358$ -$ 937,357$ United South High School 495,065 63,687 - 558,752 John B Alexander High School 541,878 25,982 - 567,860 Lyndon B Johnson High School 676,020 40,619 - 716,639 United Middle School 256,086 31,881 - 287,967 United South Middle School 189,529 15,073 - 204,602 Salvador Garcia Middle School 589,159 - - 589,159 Washington Middle School 605,824 20,581 - 626,405 Clark Middle School 748,944 12,942 - 761,886 Los Obispos Middle School 592,553 - - 592,553 Trautmann Middle School 574,890 27,528 - 602,418 Antonio Gonzalez Middle School 805,257 10,475 - 815,732 Lamar Bruni Vergada Middle School - 7,777 - 7,777 Nye Elementary School 296,217 - - 296,217 Clark Elementary School 68,735 - - 68,735 Salinas Elementary School 111,680 21,696 - 133,376 Newman Elementary School 159,041 - - 159,041 Trautmann Elementary School 73,422 14,506 - 87,928 Perez Elementary School 255,543 - - 255,543 Finley Elementary School 221,256 - - 221,256 D D Hachar Elementary School 276,494 - - 276,494 A. Gutierrez Elementary School 246,746 - - 246,746 Alicia Ruiz Elementary School 258,487 - - 258,487 De Llano Jr Elementary School 268,101 - - 268,101 Kazen Elementary School 228,467 - - 228,467 Juarez-Lincoln Elem. School 274,145 - - 274,145 Prada Elementary School 255,222 - - 255,222 Charles Borchers Elementary School 646,972 - - 646,972 Kennedy-Zapata Elem. School 332,050 - - 332,050 Benavides Elementary School 175,651 8,718 - 184,369 Roosevelt Elementary School 309,166 - - 309,166 Zaffirini Elementary School 373,811 17,555 - 391,366

123





Cuellar Elementary School 352,958$ 9,972$ -$ 362,930$ Muller Elementary School 358,278 14,121 - 372,399 Arndt Elementary School 374,977 22,383 - 397,360 Garcia Elementary School 42,644 20,994 - 63,638 Centeno Elementary School 12,153 10,047 - 22,200 Malakoff Elementary School - 22,650 - 22,650 Fasken Elementary School 8,293 26,064 - 34,357 Killam Elementary School - 18,159 - 18,159 Instructional Television - 793,981 - 793,981

TOTAL 12,959,713$ 1,290,747$ -$ 14,250,460$

INSTRUCTIONAL LEADERSHIPCurriculum Department 12,146$ -$ -$ 12,146$ Information Technology - 52,282 - 52,282 Pep Program 120,438 - - 120,438 Fine Arts 17,276 - - 17,276 School Support Orange Team 202,990 - - 202,990 Federal Programs 47,711 - - 47,711 State Compensatory Program 36,000 - - 36,000 Instructional Television 5,295 - - 5,295 Instructional Accountability 52,340 - - 52,340 Asst Supt Instruction 39,504 - - 39,504

TOTAL 533,700$ 52,282$ -$ 585,982$

SCHOOL ADMINISTRATIONUnited High School 542,938$ -$ -$ 542,938$ United South High School 660,087 - - 660,087 John B Alexander High School 650,254 - - 650,254 Alternative Education Program 9,962 - - 9,962 JBA Magnet School 197,057 - - 197,057 Lyndon B Johnson High School 863,110 - - 863,110 United Middle School 448,151 - - 448,151 United South Middle School 236,912 - - 236,912 Salvador Garcia Middle School 412,411 - - 412,411 Washington Middle School 424,077 - - 424,077 Clark Middle School 299,577 - - 299,577 Los Obispos Middle School 414,787 - - 414,787 Trautmann Middle School 402,423 - - 402,423 Antonio Gonzalez Middle School 380,718 - - 380,718 Nye Elementary School 13,133 - - 13,133 Clark Elementary School 154,653 - - 154,653 Salinas Elementary School 47,863 - - 47,863 Newman Elementary School 95,425 - - 95,425 Trautmann Elementary School 97,896 - - 97,896 Perez Elementary School 127,772 - - 127,772 Finley Elementary School 147,504 - - 147,504 D D Hachar Elementary School 230,412 - - 230,412

124





Amparo Gutierrez Elementary School 317,245$ -$ -$ 317,245$ Alicia Ruiz Elementary School 295,414 - - 295,414 Matias De Llano Elementary School 268,101 - - 268,101 Kazen Elementary School 228,467 - - 228,467 Juarez-Lincoln Elementary School 274,145 - - 274,145 Prada Elementary School 218,762 - - 218,762 Charles Borchers Elementary School 452,109 - - 452,109 Kennedy-Zapata Elementary School 332,050 - - 332,050 Col Santos Benavides School 245,911 - - 245,911 Roosevelt Elementary School 309,166 - - 309,166 Zaffirini Elementary School 436,113 - - 436,113 Cuellar Elementary School 411,784 - - 411,784 Muller Elementary School 411,631 - - 411,631 Arndt Elementary School 437,474 - - 437,474

TOTAL 11,495,494$ -$ -$ 11,495,494$

HEALTH SERVICESHealth Services -$ 6,000$ -$ 6,000$

TOTAL -$ 6,000$ -$ 6,000$

STUDENT TRANSPORTATIONTransportation Department 21,475,276$ 653,119$ -$ 22,128,395$ Special Education 61,908 891,914 - 953,822 Pep Program 55,379 - - 55,379

TOTAL 21,592,563$ 1,545,033$ -$ 23,137,596$

FOOD SERVICESJohn B Alexander High School 5,825$ -$ -$ 5,825$ Kennedy-Zapata Elementary School 341,275 - - 341,275 Col Santos Elementary School 281,041 - - 281,041 Roosevelt Elementary School 340,194 - - 340,194 Zaffirini Elementary School 436,113 - - 436,113 Cuellar Elementary School 411,784 - - 411,784 Muller Elemetnary School 411,631 - - 411,631 Arndt Elementary School 437,474 - - 437,474

TOTAL 2,665,337$ -$ -$ 2,665,337$

COCURRICULAR/EXTRACURRICULARUnited High School 1,786,951$ -$ -$ 1,786,951$ United South High School 1,946,414 - - 1,946,414 John B Alexander High School 1,623,671 - - 1,623,671 Lyndon B Johnson High School 2,167,705 - - 2,167,705 United Middle School 454,851 - - 454,851 United South Middle School 331,676 - - 331,676 Salvador Garcia Middle School 366,501 - - 366,501 Washington Middle School 363,495 - - 363,495 Clark Middle School 311,568 - - 311,568

125





Los Obispos Middle School 355,532$ -$ -$ 355,532$ Trautmann Middle School 344,934 - - 344,934 Antonio Gonzalez Middle School 479,450 - - 479,450 After School Program 103,396 - - 103,396 Music Department 13,980,477 - - 13,980,477 Athletics Department 13,197,183 - - 13,197,183

TOTAL 37,813,804$ -$ -$ 37,813,804$

GENERAL ADMINISTRATIONFederal Programs 110,797$ -$ -$ 110,797$ Technology 2,541,420 9,636 - 2,551,056 Accounting 18,205 - - 18,205 Planning Department 19,821 - - 19,821 District Wide Administrators 300,023 - - 300,023 Records Management 46,682 - - 46,682 Human Resources 430,799 - - 430,799 Tax Office 217,436 30,580 - 248,016 Purchasing 16,595 - - 16,595 Communication 92,975 5,641 - 98,616 Printing Department 70,198 5,068 9,945 65,321 Food Service 184,920 - - 184,920 Fixed Assets Department 34,086 - - 34,086 Support Services 139,691 - - 139,691 Risk Management 36,497 - - 36,497

TOTAL 4,260,145$ 50,925$ 9,945$ 4,301,125$

PLANT MAINTENANCE & OPERATIONSLyndon B Johnson High School 1,873,112$ 108,350$ -$ 1,981,462$ United High School 15,260,564 269,178 - 15,529,742 United 9th Grade Campus 501,668 122,315 - 623,983 United South High School 325,034 131,262 - 456,296 John B Alexandher High School 1,986,575 62,382 - 2,048,957 Alternative Education School 23,424 - - 23,424 United Middle School 430,803 6,699 - 437,502 United South Middle School 124,076 60,619 - 184,695 Salvador Garcia Middle School 88,683 4,252 - 92,935 Clark Middle School 3,875 8,638 - 12,513 Washington Middle School 108,433 2,952 - 111,385 Los Obispos Middle School 28,283 - - 28,283 Trautmann Middle School 167,520 27,019 - 194,539 Trautmann 6th Grade Campus 5,807 7,182 - 12,989 Gonzalez Middle School 744,440 - - 744,440 Lamar Bruni Vergara Middle School 246,676 55,035 - 301,711 Nye Elementary School 153,066 19,175 - 172,241 Clark Elementary School 98,056 13,438 - 111,494 Salinas Elementary School 150,643 10,600 - 161,243 Newman Elementary School 68,389 5,720 - 74,109

126





Trautmann Elementary School 17,234$ -$ -$ 17,234$ Perez Elementary School 180,547 70,148 - 250,695 Finley Elementary School 122,198 9,991 - 132,189 D D Hachar Elementary School 40,525 - - 40,525 Amparo Gutierrez Elementary School 153,227 3,493 - 156,720 Alicia Ruiz Elementary School 78,193 - - 78,193 Matias De Llano Jr Elementary School 108,864 - - 108,864 Kazen Elementary School 295,529 - - 295,529 Juarez-Lincoln Elementary School 202,921 14,439 - 217,360 Prada Elementary School 44,805 5,976 - 50,781 Borchers Elementary School 24,950 - - 24,950 Kennedy-Zapata Elementary School 88,707 - - 88,707 Col Santos Benavides Elementary School 40,427 5,525 - 45,952 Roosevelt Elementary School 93,062 440 - 93,502 Zaffirini Elementary School 46,777 19,339 - 66,116 Muller Elementary School 25,275 665 - 25,940 Ardnt Elementary School 49,252 49,400 - 98,652 Bonnie Garcia Elementary 249,833 - - 249,833 Rodolfo Centeno Elementary 44,108 - - 44,108 Malakoff Elementary School 148,588 - - 148,588 Fasken Elementary School 140,666 - - 140,666 Killam Elementary School 16,098 4,000 - 20,098 Instructional Accountability 78,415 - - 78,415 Discipline Management 539 - - 539 Even Start Program 6,150 - - 6,150 Cherish Center - 21,705 - 21,705 Career & Techonology - 15,645 - 15,645 Director Of Technology 382,717 - - 382,717 Food Service Dept 14,397 - - 14,397 Central Receiving Department 337,914 - - 337,914 Fine Arts Department 15,213 2,732 - 17,945 Athletics Department 500,062 16,663 - 516,725 District Wide Administrators 1,880,225 94,978 - 1,975,203 Human Services Department 10,978 - - 10,978 Police Department 119,880 - - 119,880 Transportation Dept 39,314 150,105 - 189,419 Energy/Environment Management 51,175 - - 51,175 Construction Management 8,114 - - 8,114 Facilities Department 3,045,226 56,336 13,000 3,088,562 Janitorial Department 47,520 - - 47,520

TOTAL 31,138,753$ 1,456,396$ 13,000$ 32,582,148$

SECURITY AND MONITORING SERVICESUnited High School 172,675$ -$ -$ 172,675$ United South High School 65,469 - - 65,469 John B Alexander High School 64,869 - - 64,869 Lyndon B Johnson High School 67,069 - - 67,069

127





Alternative Edcuation Program 48,267$ -$ -$ 48,267$ District Wide Administrators 72,920 - - 72,920 Cherish Center - 12,300 - 12,300 Police Department 1,056,550 - 55,171 1,001,379

TOTAL 1,547,819$ 12,300$ 55,171$ 1,504,948$

DATA PROCESSING SERVICESDirector Of Technology 315,891$ 90,048$ -$ 405,939$ United South High School 108,628 - - 108,628 United South Middle School 53,544 - - 53,544 Salvador Garcia Middle School 53,544 - - 53,544 Washington Middle School 53,544 - - 53,544 Los Obispos Middle School 52,908 - - 52,908 Gonzalez Middle School 66,327 - - 66,327 Lamar Bruni Middle School 66,327 - - 66,327 Clark Elementary School 38,524 - - 38,524 Salinas Elementary School 38,524 - - 38,524 Perez Elementary School 38,524 - - 38,524 Kennedy-Zapata Elementary School 38,524 - - 38,524 Roosevelt Elementary School 38,524 - - 38,524 Sen Zaffirini Elementary School 23,168 - - 23,168 Muller Elementary School 5,557 - - 5,557 District Wide Administrators - 31,448 - 31,448

TOTAL 992,057$ 121,496$ -$ 1,113,554$

FACILITIES ACQUISITION & CONSTRUCTIONUnited High School 1,900,390$ 590,572$ -$ 2,490,962$ United 9th Grade Campus - 66,125 - 66,125 United South High School 1,439,195 43,253 - 1,482,448 John B Alexander High School 2,105,902 11,585 - 2,117,487 Alternative Education Program 462,145 - - 462,145 Lyndon B Johnson High School 1,792,567 184,556 - 1,977,123 United Middle School 380,649 129 - 380,778

United South Middle School 453,097 63,335 - 516,432 Salvador Garcia Middle School 336,802 - - 336,802 Washington Middle School 55,954 1,280 - 57,234 Clark Middle School 205,653 - - 205,653 Los Obispos Middle School 337,100 - - 337,100 Antonio Gonzalez Middle School 688,140 - - 688,140 Nye Elementary School 392,855 900 - 393,755 Clark Elementary School 97,134 - - 97,134 Salinas Elementary School 285,625 - - 285,625 Newman Elementary School 454,382 3,822 - 458,204 Trautmann Elementary School 1,038,785 - - 1,038,785 Perez Elementary School 176,076 - - 176,076 Finley Elementary School 125,696 - - 125,696 D D Hachar Elementary School 508,588 - - 508,588

128





A.Gutierrez Elementary School 172,518$ 283$ -$ 172,801$ Alicia Ruiz Elementary School 300,417 - - 300,417 Matias De Llano Elementary School 347,344 - - 347,344 Kazen Elementary School 288,721 - - 288,721 Juarez-Lincoln Elementary School 293,953 - - 293,953 Prada Elementary School 201,785 - - 201,785 Charles R Borchers Elementary School 1,305,384 - - 1,305,384 Kennedy-Zapata Elementary School 318,025 - - 318,025 Col Santos Benavides Elementary School 1,400,240 975 - 1,401,215 Roosevelt Elementary School 28,381 - - 28,381 Zaffirini Elementary School 63,296 - - 63,296 Cuellar Elementary School 924 - - 924 Muller Elementary School 99,183 - - 99,183 Arndt Elementary School 62,913 - - 62,913 Bonnie Garcia Elementary School 116,616 - - 116,616 Centeno Elementary School 12,000 - - 12,000 Malakoff Elementary School - 23,980 - 23,980 Killam Elementary School 5,034 268 - 5,302 Instructional Television - 222,270 - 222,270 Pep Program 61,836 - - 61,836 Director Of Technology 424,016 - - 424,016 Health Services 7,315 - - 7,315 Fine Arts Dept. - 2,352 - 2,352 Athletics Department 717,143 104,012 - 821,155 District Wide Administration 43,823,598 5,827,035 (5,403,508) 55,054,141 Human Resources Department 208,608 - - 208,608 Printing Department 112,000 - - 112,000 Transportation Department 1,182,505 142,660 - 1,325,165 Police Department 36,484 - - 36,484 Internal Audit 23,183 - - 23,183 Risk Management 23,182 - - 23,182 Spi Default 36,930 - - 36,930 Cherish Center - 3,816,851 - 3,816,851 Facilities Department 97,800 - - 97,800

TOTAL 65,008,074$ 11,106,241$ (5,403,508)$ 81,517,818$

CONSTRUCTION IN PROGRESS 10,014,420$ 8,633,453$ 5,379,263$ 13,268,610$

TOTALS 512,222,579$ 24,654,267$ 84,768$ 536,798,076$

129



130


Statistical Section

131



132


UNITED INDEPENDENT SCHOOL DISTRICT STATISTICAL SECTION

AUGUST 31, 2011

This part of the United Independent School District’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, and note disclosures says about the District’s overall financial health. Contents Page Financial Trends 134

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

Revenue Capacity 146 These schedules contain information to help the reader assess the District’s most significant local revenue sources.

Debt Capacity 152

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

Demographic and Economic Information 159

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

Operating Information 161

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

Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. Beginning in fiscal year 2002, the District implemented GASB Statement 34 which includes schedules presenting government-wide information.

133


Fiscal Year2002 2003 2004 2005

Governmental Activities Invested in capital assets, net of related costs 1,791,517$ 9,047,368$ 8,647,114$ 7,272,164$ Restricted 11,042,859 9,775,087 13,937,875 12,405,933 Unrestricted 21,500,549 24,833,467 27,102,491 29,016,661

Total Governmental activities net assets 34,334,925 43,655,922 49,687,480 48,694,758

Business-type activitiesInvested in capital assets, net of related debt 4,057,569 600,272 1,958,688 288,547 Restricted - - - - Unrestricted 1,406,464 1,358,416 366,659 3,156,961

Total business-type activities net assets 5,464,033 1,958,688 2,325,347 3,445,508

Primary governmentInvested in capital assets, net of related debt 5,849,086 9,647,640 10,605,802 7,560,711 Restricted 11,042,859 9,775,087 13,937,875 12,405,933 Unrestricted 22,907,013 26,191,883 27,469,150 32,173,622

Total primary government net assets 39,798,958$ 45,614,610$ 52,012,827$ 52,140,266$

SCHEDULE 1 UNITED INDEPENDENT SCHOOL DISTRICT

NET ASSETS BY COMPONENT LAST TEN FISCAL YEARS

(accrual basis of accounting)

Source: United ISD Division of Business and Finance

134


2006 2007 2008 2009 2010 2011

13,557,516$ 19,278,711$ 34,610,802$ 44,995,965$ 48,563,870$ 53,135,091$ 10,866,271 62,145,261 37,718,951 35,223,463 44,669,644 30,073,798 37,335,166 5,108,199 38,565,875 47,184,087 39,426,848 79,246,633

61,758,953 86,532,171 110,895,628 127,403,515 132,660,362 162,455,522

585,749 609,220 515,936 540,643 423,340 362,526 - - - - - -

2,838,779 2,253,812 1,775,621 1,597,839 2,570,530 3,491,497

3,424,528 2,863,032 2,291,557 2,138,482 2,993,871 3,854,022

14,143,265 19,887,931 35,126,738 45,536,608 48,987,211 53,497,617 10,866,271 62,145,261 37,718,951 35,223,463 44,669,644 30,073,798 40,173,945 7,362,011 40,341,496 48,781,926 41,997,378 82,738,130

65,183,481$ 89,395,203$ 113,187,185$ 129,541,997$ 135,654,233$ 166,309,544$

135


SCHEDULE 2

UNITED INDEPENDENT SCHOOL DISTRICT CHANGES IN NET ASSETS LAST TEN FISCAL YEARS



Fiscal YearExpenses 2002 2003 2004 2005Governmental Activities:

11 Instruction 109,759,661$ 123,160,948$ 129,132,416$ 147,801,038$ 12 Instructional Resources & Media Services 2,917,287 3,089,255 3,198,111 3,907,691 13 Curriculum & Instructional Staff Dev. 605,330 919,696 1,421,358 1,171,298 21 Instructional Leadership 3,739,522 4,085,646 3,417,415 3,762,930 23 School Leadership 13,377,452 13,422,248 14,743,488 15,335,768 31 Guidance, Counseling, & Eval. of Ser. 5,669,857 6,772,810 7,550,075 9,105,516 32 Social Work Services 513,034 535,943 627,437 819,298 33 Health Services 1,656,336 1,945,666 2,017,008 2,289,854 34 Student (Pupil) Transportation 5,046,438 6,266,821 7,018,878 9,239,058 35 Food Services 502,783 1,700,381 1,058,784 1,258,117 36 Cocurricuar/Extracurriuclar Activities 3,624,896 4,184,226 5,692,640 5,796,166 41 General Administration 7,321,542 7,873,577 8,516,321 8,947,100 51 Plant Maintenance & Operations 18,160,877 20,359,032 21,236,818 23,629,784 52 Security and Monitoring Services 2,039,484 2,319,032 2,923,656 3,465,452 53 Data Processing Services 1,669,868 1,880,317 3,395,417 2,782,634 61 Community Services 225,435 236,451 240,022 292,298 72 Debt Servcie - Interest on Long Term Debt 10,572,273 10,400,948 9,372,317 18,011,545 73 Debt Servcie - Bond Iss. Cost & Fees - 41,718 61,546 67,640 95 Juvenile Justice Alt. Education Program 60,652 110,861 179,242 161,365 99 Other Intergovernmental Charges - - - - Total governmental activities expenses 187,462,727 209,305,576 221,802,949 257,844,552

Business-type activities:35 Enter. Fund - Nat'l School Breakfast & Lunch 10,446,122 12,208,751 11,960,118 13,981,944 Total business-type activities expenses 10,446,122 12,208,751 11,960,118 13,981,944

Total primary government expenses 197,908,849$ 221,514,327$ 233,763,067$ 271,826,496$

Program RevenuesGovernmental Activities:Charges for services:

Instruction 6,104$ 5,256$ 11,423$ 10,827$ Instructional Leadership 603,741 - - - School Leadership 407,804 798,658 - - Food Services 4,516 4,266 - - Cocurricuar/Extracurriuclar Activities 132,367 830,815 952,156 1,025,022 Plant Maintenance & Operations - 9,972 20,296 25,219 Facilities Acquisition and Construction - 104,772 - -

Operating grants and contributions 23,872,180 32,018,365 32,818,297 37,824,238 Total governmental activities program revenues 25,026,712 33,772,104 33,802,172 38,885,306

Business-type activities:Charges for services:

Enter. Fund - National School Breakfast & Lunch 1,880,329 2,059,544 2,116,801 2,293,896 Operating grants and contributions 8,598,889 9,914,562 10,209,976 12,747,278

Total business-type activities revenues 10,479,218 11,974,106 12,326,777 15,041,174

Total primary government revenues 35,505,930$ 45,746,210$ 46,128,949$ 53,926,480$

Net (expense)/revenueGovernmental activities (162,436,015)$ (175,533,472)$ (188,000,777)$ (218,959,246)$ Business-type activities 33,096 (234,645) 366,659 1,059,230 Total primary government net expenses (162,402,919)$ (175,768,117)$ (187,634,118)$ (217,900,016)$

136


2006 2007 2008 2009 2010 2011

156,230,574$ 164,818,404$ 186,463,334$ 198,228,414$ 219,261,873$ 211,042,761$ 4,154,361 4,581,209 5,041,817 6,518,811 5,908,288 7,224,018 1,799,287 1,895,692 1,496,836 1,680,531 1,916,130 1,530,017 5,807,373 6,466,252 7,048,701 7,747,936 7,702,645 8,066,447

15,955,177 17,593,383 19,069,112 20,136,883 20,779,259 23,836,381 10,085,248 11,014,722 12,244,544 12,875,394 13,415,106 13,434,198 1,312,078 1,503,979 1,656,268 1,857,542 1,905,268 2,018,124 2,639,928 2,916,545 3,219,740 3,535,339 3,935,196 3,870,111 8,964,689 10,000,179 12,854,838 14,216,161 14,285,001 15,465,438 1,439,140 1,212,335 1,373,363 1,126,275 1,376,096 1,052,070 6,924,798 8,048,297 9,012,854 9,753,962 9,546,023 10,021,031 9,863,723 10,977,950 10,136,554 10,788,539 10,443,307 9,917,718

24,868,633 29,741,462 32,429,720 35,397,103 36,116,469 35,292,525 3,865,773 5,377,009 6,407,414 6,532,984 6,479,502 6,479,893 3,118,557 3,320,504 3,848,203 3,805,495 2,616,363 2,822,259

489,497 821,110 756,417 693,390 632,578 632,155 15,289,047 17,714,436 13,738,310 13,954,641 18,040,532 13,174,257

9,120 66,195 14,938 53,723 86,970 440,118 129,859 - 335,000 340,000 150,000 50,000

- - 1,336,878 1,367,196 1,445,218 1,462,974 272,946,862 298,069,663 328,484,841 350,610,319 376,041,824 367,832,495

16,156,554 18,199,632 19,784,330 20,113,821 21,084,421 22,141,230 16,156,554 18,199,632 19,784,330 20,113,821 21,084,421 22,141,230

289,103,416$ 316,269,295$ 348,269,171$ 370,724,140$ 397,126,245$ 389,973,725$

-$ -$ 1,128$ 1,420$ 15$ 50$ - - - - - - - - - - - -

7,413 7,115 6,862 951,911 7,795 3,608 1,000,971 1,234,669 1,366,313 502,887 1,606,887 1,654,913

29,024 41,821 - - - - - - - - - -

42,128,629 40,338,369 46,213,005 48,458,746 64,443,915 71,801,468 43,166,037 41,621,974 47,587,308 49,914,964 66,058,612 73,460,039

2,634,628 2,705,534 2,959,425 2,915,169 3,080,211 3,123,567 13,398,022 14,825,909 16,201,061 17,028,120 18,854,547 19,875,091 16,032,650 17,531,443 19,160,486 19,943,289 21,934,758 22,998,658

59,198,687$ 59,153,417$ 66,747,794$ 69,858,253$ 87,993,370$ 96,458,697$

(229,780,825)$ (256,447,689)$ (280,897,533)$ (300,695,355)$ (309,983,212)$ (294,372,456)$ (123,904) (668,189) (623,844) (170,532) 850,337 857,429

(229,904,729)$ (257,115,878)$ (281,521,377)$ (300,865,887)$ (309,132,875)$ (293,515,027)$

137


Fiscal Year2002 2003 2004 2005

Net (Expense)/RevenueGovernmental activities (162,436,015)$ (175,533,472)$ (188,000,777)$ (218,959,246)$ Business-type activities 33,096 (234,645) 366,659 1,059,230Total Primary Government net expense (162,402,919)$ (175,768,117)$ (187,634,118)$ (217,900,016)$

General Revenues and Other Changes in Net AssetsGovernmental activities:

Taxes:Property taxes levied for general purposes 49,590,687$ 59,908,148$ 65,119,961$ 76,364,781$ Property taxes levied for debt service 5,923,390 6,657,953 7,207,080 8,070,555

Unrestricted state aid - formula grants 94,307,976 102,849,078 118,969,220 127,591,735Unrestricted grants and contributions 12,320,603 10,728,052 912,954 804,201Investment Earnings 1,904,021 1,223,818 1,212,623 3,038,842Miscellaneous local & intermediate revenue 3,209,399 216,719 341,808 2,096,409Transfers In (Out) - 3,270,700 295,688 - Special Item - - - - Total governmental activities 167,256,076 184,854,468 194,059,334 217,966,523

Business-type activities:Investment Earnings - - - 60,934Transfers In (Out) - (3,270,700) - - Total business-type activities - (3,270,700) - 60,934

Total primary government 167,256,076$ 181,583,768$ 194,059,334$ 218,027,457$

Changes in Net AssetsGovernmental activities 4,820,061$ 9,320,996$ 6,058,557$ (992,723)$ Business-type activities 33,096 (3,505,345) 366,659 1,120,164Total primary government 4,853,157$ 5,815,651$ 6,425,216$ 127,441$


GENERAL REVENUES AND TOTAL CHANGE IN NET ASSETS LAST TEN FISCAL YEARS



138


2006 2007 2008 2009 2010 2011

(229,780,825)$ (256,447,689)$ (280,897,533)$ (300,695,355)$ (309,983,212)$ (294,372,456)$ (123,904) (668,189) (623,844) (170,532) 850,337 857,429

(229,904,729)$ (257,115,878)$ (281,521,377)$ (300,865,887)$ (309,132,875)$ (293,515,027)$

85,819,152$ 96,020,857$ 82,834,685$ 94,063,168$ 95,684,363$ 97,390,939$ 14,169,460 16,016,178 12,454,204 14,147,952 14,248,414 14,501,237

129,262,019 154,090,389 197,350,265 199,460,770 194,010,773 201,783,6372,398,018 3,695,823 695,642 2,890,363 2,260,041 3,300,9456,735,082 7,480,003 5,580,829 2,797,119 493,125 253,0344,461,286 1,980,407 6,345,363 3,843,870 8,543,343 6,937,825

- - - - - - - 8,214,979 - - - -

242,845,017 287,498,636 305,260,988 317,203,242 315,240,059 324,167,617

102,924 106,693 52,368 17,457 5,052 2,722- - - - - -

102,924 106,693 52,368 17,457 5,052 2,722

242,947,941$ 287,605,329$ 305,313,356$ 317,220,699$ 315,245,111$ 324,170,339$

13,064,192$ 31,050,947$ 24,363,456$ 16,507,887$ 5,256,847$ 29,795,161$ (20,980) (561,496) (571,476) (153,075) 855,389 860,151

13,043,212$ 30,489,451$ 23,791,980$ 16,354,812$ 6,112,236$ 30,655,312$

139



FUND BALANCES FOR GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS

(modified accrual basis of accounting)


Fiscal Year2001 2002 2003 2004 2005

General Fund Reserved 2,251,864$ -$ 2,115,685$ 4,799,762$ 7,278,059$ Unreserved 15,584,788 19,072,222 19,128,280 24,171,826 27,388,651

Total general fund 17,836,652$ 19,072,222$ 21,243,965$ 28,971,588$ 34,666,710$

All other governmental fundsReserved 35,694,168$ 7,544,398$ 8,516,085$ 21,752,306$ 35,962,914$ Unreserved, reported in: Special revenue funds 95,397 112,209 313,834 837,609 905,646 Capital projects funds - 3,386,252 945,168 42,361,284 60,316,597 Permanent Funds - - - - -

Total all other governmental funds 35,789,565$ 11,042,859$ 9,775,087$ 64,951,199$ 97,185,157$

140


2006 2007 2008 2009 2010 2011

5,268,244$ 11,619,289$ 14,262,118$ 17,463,242$ 30,295,665$ 24,888,911$

35,257,691 46,348,398 57,377,873 65,153,943 66,318,407 77,773,921

40,525,935$ 57,967,687$ 71,639,991$ 82,617,185$ 96,614,072$ 102,662,832$

70,487,433$ 49,401,928$ 22,867,979$ 7,918,620$ 5,640,921$ 5,992,730$

1,332,291 1,933,533 1,298,383 596,278 614,629 - 517,089 2,534,115 4,134,415 788,877 293,048 -

- - - 50,803 51,672 -

72,336,813$ 53,869,576$ 28,300,777$ 9,354,578$ 6,600,270$ 5,992,730$

141


SCHEDULE 5 UNITED INDEPENDENT SCHOOL DISTRICT GOVERNMENTAL FUNDS REVENUES, (1)

LAST TEN FISCAL YEARS (modified accrual basis of accounting)

Notes: (1) Revenues for all governmental fund types of the District are included. These consist of the General Fund, Special Revenue Funds, Debt Service Fund, and Capital Projects Fund. (2) Prior to fiscal year 1999, the Food Service Program was accounted for as a Special Revenue Fund. Beginning in fiscal year 1999, the Food Service Program is accounted for as a Proprietary Fund.


Fiscal YearSOURCE 2002 2003 2004 2005

REVENUE FROM LOCAL, INTERMEDIATEAND OUT-OF-STATE SOURCE:Local Real & Property Taxes 57,376,071$ 65,563,516$ 73,933,352$ 85,498,462$ Local Revenue 2,741,459 2,936,995 2,035,618 4,071,808 Co-Curricular, Enterprising Services or Activities 127,944 835,081 952,156 1,025,022 Other Revenue from Local Sources 354,597 608,346 741,423 785,712 Revenue from Intermediate Sources 531,037 124,502 49,668 19,056

Total Revenue from Local, Intermediate and Out of State Sources 61,131,108 70,068,440 77,712,217 91,400,060

REVENUE FROM STATE SOURCES:Per Capita and Foundation 96,235,158 105,465,988 110,254,821 119,622,300 Teacher Retirement System On-Behalf Payments (2) 6,451,598 6,677,796 6,786,685 7,120,508 Other State Programs 15,275,953 16,758,738 14,767,138 14,707,463 Other Governmental Agencies - - - -

Total Revenue from State Sources 117,962,710 128,902,522 131,808,644 141,450,271

REVENUE FROM FEDERAL SOURCES:Federally Distributed 2,999,745 2,743,252 2,657,763 2,044,539 Elementary and Secondary Education Act 5,203,326 6,060,810 9,233,383 13,727,268 Individuals with Disabilities Education Act 2,459,335 3,789,508 6,372,476 5,445,102 Vocational Education - Non Foundation 273,353 229,007 481,400 503,220 Other State Distributed Federal Programs 1,565,716 2,506,076 1,345,238 2,190,528

Total Revenue from Federal Sources 12,501,474 15,328,653 20,090,260 23,910,657

TOTAL 191,595,291$ 214,299,615$ 229,611,121$ 256,760,988$

142


2006 2007 2008 2009 2010 2011

104,705,900$ 117,324,638$ 97,226,229$ 108,390,743$ 111,686,016$ 113,419,922$ 6,176,767 7,647,948 11,080,119 3,798,177 1,285,878 4,730,682 1,000,971 794,523 174,600 249,712 322,710 772,789

771,079 130,964 865,945 2,174,576 2,361,591 1,001,735 - 43,863 6,862 - -

112,654,718 125,941,936 109,353,755 114,613,208 115,656,195 119,925,129

120,598,042 148,426,362 187,892,393 190,141,039 188,807,774 196,062,804 9,545,617 10,526,151 13,973,327 14,266,614 15,073,368 14,954,781

15,781,556 13,151,059 17,185,326 17,246,841 10,619,687 9,670,069 - - - - - -

145,925,215 172,103,572 219,051,046 221,654,494 214,500,829 220,687,654

4,127,684 5,678,376 4,560,468 6,018,491 22,946,242 28,418,061 14,224,247 12,100,745 12,483,281 13,326,967 13,252,179 16,436,899 5,086,614 5,637,314 5,567,915 5,563,501 5,923,186 7,040,139

464,388 469,700 503,108 556,152 599,761 499,665 3,226,417 1,038,277 1,201,917 3,690,275 3,492,532 3,803,632

27,129,351 24,924,411 24,316,689 29,155,386 46,213,900 56,198,396

285,709,284$ 322,969,920$ 352,721,490$ 365,423,088$ 376,370,924$ 396,811,179$

143


Fiscal Year2002 2003 2004 2005

RevenuesLocal and Intermediate Sources 61,131,105$ 70,068,440$ 77,712,217$ 91,400,060$ State Program Revenues 117,962,712 128,902,522 131,808,644 141,450,271 Federal Program Revenues 12,501,474 15,328,653 20,090,260 23,910,657

Total Revenues 191,595,291 214,299,615 229,611,121 256,760,988

ExpendituresInstruction 103,792,785 117,170,707 123,576,000 140,909,333 Instructional Resources and Media Services 2,574,318 2,783,047 2,795,874 3,397,713 Curriculum and Instructional Staff Development 605,330 919,684 1,421,344 1,171,211 Instructional Leadership 3,859,960 3,518,576 3,416,221 3,743,233 School Leadership 12,812,678 13,449,406 14,416,144 14,859,036 Guidance, Counseling and Evaluation Services 5,669,857 6,773,313 7,549,962 9,110,815 Social Work Services 513,034 535,985 627,437 818,439 Health Services 1,656,336 1,945,796 2,016,940 2,289,395 Student (Pupil) Transportation 5,255,822 8,930,188 6,412,522 9,162,360 Food Services 504,388 932,249 559,572 624,778 Co curricular/Extracurricular Activities 3,542,757 3,973,029 5,301,229 5,313,901 General Administration 7,246,834 7,821,226 8,450,323 8,798,410 Plant Maintenance and Operations 18,450,363 20,372,275 21,079,296 23,894,869 Security and Monitoring Services 2,094,195 2,327,041 2,963,384 3,367,308 Data Processing Services 1,669,868 1,910,406 3,443,425 2,799,262 Community Services 225,435 236,364 239,969 291,888 Debt Service

Principal 7,401,138 8,480,560 9,359,551 10,870,602 Interest 10,572,273 10,400,948 9,371,957 13,805,220 Bond Issuance Cost and Fees - 41,718 61,546 67,640

Capital Outlay 29,752,055 3,538,886 22,781,064 35,551,098 Juvenile Justice Alternative Education Program 60,652 110,861 179,242 161,365 Other Intergovernmental Charges - - - -

Total Expenditures 218,260,078 216,172,265 246,023,002 291,007,876

Excess of Revenues over (under) Expenditures (26,664,787) (1,872,650) (16,411,881) (34,246,888)

Other Financing SourcesProceeds from Capital Leases - - - - Refunding Bonds Issued - - - 45,394,989 Capital-related Debt Issued (Regular Bonds) - - 74,999,926 66,869,580 Non-Current Loans 3,153,650 2,789,122 4,020,000 4,705,000 Transfers In 500,000 450,000 100,000 2,640,000 Premium or Discount on Issuance of Bonds - - 266,474 3,982,950 Other Resources - - 22,273 - Transfers Out (Use) (500,000) (450,000) (100,000) (2,640,000) Payment to Bond Refunding Escrow Agent (Use) - - - (48,617,551) Other (Uses) - (12,500) - (159,000)

Total Other Financing Sources (Uses) 3,153,650 2,776,622 79,308,673 72,175,968

Special Items - - 6,942 -

Net Change in Fund Balance (23,511,137)$ 903,972$ 62,903,734$ 37,929,080$

Debt Service as a % of noncapital expenditures 9.5% 8.9% 8.4% 9.7%


CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS



144


2006 2007 2008 2009 2010 2011

112,654,718$ 125,941,936$ 109,353,755$ 114,613,208$ 115,656,195$ 119,925,129$ 145,925,215 172,103,572 219,051,046 221,654,494 214,500,829 220,687,654 27,129,351 24,924,411 24,316,689 29,155,386 46,213,900 56,198,396

285,709,284 322,969,919 352,721,490 365,423,088 376,370,924 396,811,179

148,952,053 158,629,476 177,987,977 189,310,311 208,996,062 201,340,969 3,681,830 4,107,625 4,585,406 6,089,378 5,527,233 7,108,524 1,809,501 1,895,697 1,496,840 1,708,719 1,916,025 1,531,043 5,852,143 6,500,092 7,041,016 7,720,401 7,748,570 8,065,085

15,507,455 17,218,423 18,687,415 19,768,658 20,397,796 23,465,277 10,080,340 11,026,728 12,239,683 12,870,610 13,407,047 13,431,311 1,312,067 1,504,195 1,656,303 1,857,507 1,904,948 2,018,202 2,639,914 2,916,702 3,219,802 3,535,272 3,935,076 3,874,130 9,032,644 11,735,726 13,950,938 14,889,458 13,063,490 14,672,833

920,571 689,014 855,615 825,563 835,813 516,208 5,746,774 6,828,637 7,830,243 8,546,936 8,319,054 8,731,691 9,220,650 10,712,382 9,561,912 10,257,701 10,012,412 9,408,153

25,427,716 30,258,734 32,664,527 35,169,398 37,404,942 34,728,560 3,811,804 5,467,541 6,392,764 6,605,368 6,535,366 6,327,823 3,089,468 3,292,207 3,949,277 4,144,167 3,021,417 2,715,166

489,487 821,168 756,444 693,337 632,488 632,213

12,991,919 14,299,062 16,130,031 18,312,531 18,779,807 19,074,614 13,467,706 12,833,610 14,610,492 12,047,568 11,787,501 11,361,938

9,120 66,195 14,938 53,723 86,970 440,119 30,525,384 31,433,874 29,217,824 25,259,116 11,312,047 20,832,731

129,859 - 335,000 340,000 150,000 50,000 - - 1,336,878 1,367,196 1,445,218 1,462,974

304,698,405 332,237,086 364,521,325 381,372,918 387,219,282 391,789,564

(18,989,121) (9,267,167) (11,799,835) (15,949,830) (10,848,358) 5,021,615

- - - 630,824 4,650,938 - - 7,934,996 4,295,000 - - 34,000,000 - - - - - - - - - 7,350,000 17,440,000 -

100,000 5,100,000 2,600,000 2,600,000 4,004,291 4,250,000 - 552,385 - - - 4,339,921 - - - - - -

(100,000) (5,100,000) (2,600,000) (2,600,000) (4,004,291) (4,262,882) - (8,460,678) (4,391,660) - - (37,907,432) - - - - - - - 26,703 (96,660) 7,980,824 22,090,938 419,607

- 8,214,979 - - - -

(18,989,121)$ (1,025,485)$ (11,896,495)$ (7,969,006)$ 11,242,580$ 5,441,222$

9.7% 9.0% 9.2% 8.7% 8.2% 8.3%

145



GENERAL GOVERNMENTAL LOCAL REVENUES BY SOURCE LAST TEN FISCAL YEARS



Fiscal Year2002 2003 2004 2005

Local RevenueWebb CED -$ (3,311)$ -$ -$ School Age Child Care 603,741 702,793 791,177 856,187 Property Taxes 57,375,980 65,571,770 73,944,650 85,508,944 Sale of Weighted Average - 603,089 405,938 662,299 Tuition and Fees 2,542 - - - County Available 354,597 132,649 155,949 - Facilities Rent 4,423 9,972 20,296 25,219 Gifts and Bequests 5,000 1,100 5,000 - Insurance Recovery 35,235 - - - Other Local Revenues 186,587 229,446 145,368 280,488 Athletic Activity 127,944 128,022 160,979 168,836 Summer Feeding Program 4,516 4,266 4,258 5,283 Preg., Educ. and Parenting Program 13,496 36,752 51,381 38,929 Communities in Schools 7,130 1,829 1,000 - Campus Activity Funds 407,804 532,773 440,231 505,569 Coca Cola Fund - 687,000 260,000 281,000 Parents as School Partners 486 - - - H2O Grant 15,947 19,730 - 1,119 Lamar Bruni Vergara Trust 69,483 72,760 60,582 9,308 Enlace Grant 12,174 9,210 3,117 7,396 Texas Music Project - - - 4,644 TAMIU-Colonias Program - - - 5,999 Interest-Investment 1,904,022 1,328,590 1,262,291 3,038,842 Teacher Migrant Program - - - -

Total Local Revenue 61,131,105$ 70,068,440$ 77,712,217$ 91,400,060$

146


2006 2007 2008 2009 2010 2011

-$ -$ -$ -$ -$ -$ 827,445 1,020,045 1,170,574 1,180,477 1,207,537 1,214,809

101,239,313 116,272,191 97,226,229 108,390,743 111,686,016 113,419,922 2,359,954 - 1,329,343 - - -

- - 1,128 1,420 15 50 270,573 - 1,247,458 701,683 547,598 361,641

29,025 41,821 21,139 17,080 76,640 86,792 - 9,359 171,065 50,000 - 30,399 - - 1,558,583 - - 220

271,805 120,681 865,945 154,348 385,621 4,201,342 173,526 214,624 174,600 249,712 322,710 353,312

7,413 7,115 6,862 7,531 7,795 3,609 46,491 36,748 - 34,138 5,188 -

- - - - - - 499,624 579,899 - 798,083 755,451 - 169,000 150,000 - 150,000 150,000 -

- - - - - - - 7,336 - - - -

11,216 - - 79,375 17,000 - - - - - - -

356 - - - - - - - - - - -

6,748,975 7,480,003 5,580,828 2,797,118 493,126 253,033 - 2,113 - 1,500 1,500 -

112,654,718$ 125,941,936$ 109,353,754$ 114,613,208$ 115,656,195$ 119,925,129$

147



ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS

Source: United ISD Tax Department

FiscalYear Less:

Ended Residential Commercial Personal Tax ExemptAugust 31 Property Property Property Real Property

2002 2,351,981,585$ 2,958,430,177$ 605,477,310$ 1,361,827,040$ 2003 2,582,630,505 3,118,808,063 629,209,780 1,454,840,643 2004 2,823,660,230 3,404,929,949 666,958,410 1,579,258,043 2005 3,290,911,503 4,057,880,715 671,269,010 1,700,958,006 2006 3,818,386,731 4,797,159,309 1,047,539,360 1,918,738,513 2007 4,329,303,998 4,777,147,891 1,144,268,656 2,075,467,294 2008 4,806,963,976 5,406,598,046 1,335,152,668 2,319,179,666 2009 4,938,237,218 5,577,215,940 1,362,375,747 2,482,383,928 2010 5,036,527,720 5,721,112,556 1,335,627,322 2,587,019,556 2011 5,011,370,512 6,466,883,775 1,521,662,447 2,672,060,820

Real Property

148


Total Total Estimated AssessedTaxable Direct Actual Value as aAssessed Tax Taxable Percentage of

Value Rate Value Actual Value4,554,062,032$ 1.477$ 6,227,251,655$ 73.13%4,875,807,705 1.477 6,663,840,366 73.17%5,316,290,546 1.527 7,258,472,199 73.24%6,319,103,222 1.607 8,442,169,714 74.85%7,744,346,887 1.474 10,171,668,842 76.14%8,175,253,251 1.185 10,790,232,153 75.77%9,229,535,024 1.185 12,156,541,779 75.92%9,395,444,977 1.195 12,502,977,795 75.15%9,506,248,042 1.195 12,729,755,366 74.68%

10,327,855,914 1.195 13,684,122,878 75.47%

149



PROPERTY TAX RATES DIRECT AND OVERLAPPING GOVERNMENTS

LAST TEN FISCAL YEARS

Source: Webb County Appraisal District

Fiscal Year

2002 2003 2004 2005 2006Direct Tax RateMaintenance and Operations 1.328$ 1.330$ 1.380$ 1.380$ 1.264$ Interest and Sinking 0.149 0.147 0.147 0.227 0.211 Total Direct Tax Rate 1.477$ 1.477$ 1.527$ 1.607$ 1.475$

Overlapping Tax RatesCity of Laredo 0.631$ 1.911$ 0.637$ 0.637$ 0.637$ Webb County & R&B 0.457 0.458 0.438 0.438 0.421 Laredo Community College 0.227 0.236 0.236 0.233 0.231 City of Rio Bravo 0.500 0.500 0.500 0.499 0.500 City of El Cenizo 0.500 0.500 0.500 0.500 0.500 Webb County Drainage District 0.110 0.109 0.106 0.106 0.092 Total Overlapping Tax Rates 2.425 3.714 2.417 2.413 2.381

Total Direct and OverlappingTax Rates 3.902$ 5.191$ 3.944$ 4.020$ 3.856$

150


2007 2008 2009 2010 2011

1.030$ 1.030$ 1.040$ 1.040$ 1.040$ 0.155 0.155 0.155 0.155 0.155 1.185$ 1.185$ 1.195$ 1.195$ 1.195$

0.634$ 0.637$ 0.637$ 0.637$ 0.637$ 0.420 0.420 0.420 0.420 0.420 0.222 0.221 0.227 0.238 0.259 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.079 0.066 0.064 0.064 0.064 2.355 2.344 2.348 2.359 2.380

3.540$ 3.529$ 3.543$ 3.554$ 3.575$

151



PRINCIPAL PROPERTY TAXPAYERS AUGUST 31, 2011

Source: United ISD Tax Department

Percentage of Percentage ofTaxable Total Taxable Taxable Total Taxable

Assessed Assessed Assessed AssessedTaxpayer Value Rank Value Value Rank Value

Lewis Petro Properties Inc $ 299,347,230 1 2.90 % $ 41,367,940 6 0.91 %Rosetta Resources Inc 255,605,075 2 2.47 SM Energy Company 242,131,730 3 2.34 Chesapeake Operating Inc 108,193,630 4 1.05 Laredo WLE LP 97,603,700 5 0.95 AEP Electric Tranmission 94,518,690 6 0.92 ConocoPhillips Company 69,354,960 7 0.67 67,218,400 1 1.47Gates Mineral Company LTD 66,481,590 8 0.64 AEP Texas Central Company 59,405,580 9 0.58 42,043,250 4 0.92Mall Del Norte 51,752,510 10 0.50 27,063,580 9 0.59Calpine Natural Gas Co 56,302,980 2 1.23Columbus Energy LLC 43,302,110 3 0.95Chevron USA Inc 41,895,330 5 0.92Laredo Regional Medical Center 32,157,120 7 0.71Killam Ind Dev Partnership Ltd 29,362,100 8 0.64Webb County Correctional Center 22,058,370 10 0.48EOG Resources 29,362,100 11 0.47

$ 1,344,394,695 13.02 % $ 432,133,280 9.29 %

20022011

152



PROPERTY LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS

Note: (1) Data Not Available. Source: United ISD Tax Department

Total Tax CollectionsFiscal Year Levy for Subsequent

Ended Fiscal Year Amount % of Levy Years Amount % of Levy

2002 66,951,115$ 64,682,716$ 96.61 % 2,637,273$ 67,319,989$ 96.61 2003 72,251,331 69,769,598 96.57 2,426,654 72,196,252 96.57 2004 83,821,422 81,533,815 97.27 1,773,165 83,306,980 97.27 2005 100,476,271 97,731,992 97.27 2,527,712 100,259,704 97.27 2006 113,267,095 110,228,611 97.32 3,791,561 114,020,172 97.32 2007 95,866,850 92,907,052 96.91 3,225,314 96,132,367 96.91 2008 108,147,626 103,754,243 95.94 3,016,771 106,771,014 95.94 2009 111,038,081 106,384,678 95.81 3,545,312 109,929,990 95.81 2010 112,407,769 108,335,724 96.38 3,216,618 111,552,342 96.38 2011 (1) (1) (1) (1) (1) (1)

Fiscal Year of the Levy Total Collections to DateCollected within the

153


SCHEDULE 12 UNITED INDEPENDENT SCHOOL DISTRICT RATIOS OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS

Notes: Population and income data consists of metropolitan statistics for Webb County, where U.I.S.D. is located. (1) Demographic information used for these items is the latest available information (2011). Source: Texas Workforce Commission Website

Business Type ActivitiesGeneral Public Property Public Property Total

Fiscal Obligation Financial Contractual Financial Contractual PrimaryYear Bonds Obligations Obligations Government

2002 197,329,367$ 11,285,000$ -$ 208,614,367$ 2003 192,046,079 12,025,000 - 204,071,079 2004 261,050,016 13,826,000 159,000 275,035,016 2005 320,803,359 16,036,900 143,100 336,983,359 2006 312,636,614 13,652,800 127,200 326,416,614 2007 305,286,163 11,593,700 111,300 316,991,163 2008 292,881,412 9,449,600 95,400 302,426,412 2009 287,347,500 14,830,500 79,500 302,257,500 2010 266,801,127 30,371,400 63,600 297,236,127 2011 251,953,707 28,697,300 47,700 280,698,707


154


GO Estimated Tax Ratio of Percentage Bonds Actual Value Bonded Debtof Personal Per Taxable Per to Taxable

Income Capita Value Capita Value

6.08 % 983$ 6,227,251,655$ 31,011$ 3.17 %

5.62 929 6,663,840,366 32,228 2.887.09 1,227 7,258,472,199 34,129 3.607.82 1,466 8,442,169,714 38,583 3.807.11 1,390 10,171,668,842 45,233 3.076.39 1,332 10,790,232,153 47,080 2.835.61 1,265 12,156,541,779 52,519 2.415.61 1,213 12,502,977,795 52,768 2.305.52 1,126 12,729,755,366 53,725 2.104.99 (1) 1,044 (1) 13,684,122,878 56,678 (1) 1.84 (1)

155



LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS


Fiscal Year2002 2003 2004 2005

Debt Limit 455,477,282$ 487,580,771$ 529,468,377$ 631,910,322$

Total net debt applicable to limit 201,069,969 195,554,994 265,598,365 329,401,933

Legal debt margin 254,407,313$ 292,025,777$ 263,870,012$ 302,508,389$

Total net debt applicable to the limitas a percentage of debt limit 44.14% 40.11% 50.16% 52.13%

156


Fiscal Year2006 2007 2008 2009 2010 2011

927,495,893$ 1,025,072,055$ 1,154,871,469$ 1,187,782,891$ 1,209,326,760$ 1,299,991,673$

304,294,073 294,972,452 294,972,452 282,389,588 262,227,282 247,009,992

623,201,820$ 730,099,603$ 859,899,017$ 905,393,303$ 947,099,477$ 1,052,981,681$

32.81% 28.78% 25.54% 23.77% 21.68% 19.00%

Legal Debt Margin Calculation for Fiscal Year 2010

Assessed Value 10,327,855,914$ Add back: exempt real property 2,672,060,820 Total assessed value 12,999,916,734

Debt limit (10% of total assessed value) 1,299,991,673 Debt applicable to limit:

General obligation bonds 251,953,707 Less: Amount set aside for repayment of general obligation debt (4,943,715) Total net debt applicable to limit 247,009,992

Legal debt margin 1,052,981,681$

157



DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT AS OF AUGUST 31, 2011

Notes: (1) The percentage of overlapping debt applicable is estimated using taxable assessed property values.


EstimatedEstimated Share of

Debt Percentage OverlappingGovernmental Unit Outstanding Applicable (1) Debt

City of Laredo $ 193,993,899 77.40 % $ 150,151,278 County of Webb 45,285,000 69.07 31,278,350 Laredo Community College 100,381,943 77.91 78,207,572 City of Rio Bravo - 100.00 - City of El Cenizo - 100.00 -

Subtotal, overlapping debt 259,637,199

United Independent School District Debt 297,236,127

Total direct and overlapping debt $ 556,873,326

158



DEMOGRAPHIC AND ECONOMIC INFORMATION (1) LAST TEN FISCAL YEARS

AUGUST 31, 2011

Notes: (1) Data consists of metropolitan statistics for Webb County, where U.I.S.D. is located (2) Data was revised in 2004.

Source: Texas Workforce Commission – www.twc.state.tx.us

Per PercentageCapita Average Economically

Fiscal Personal Personal Unemployment Daily DisadvantagedYear Population Income Income Rate Attendance (1) Students (1)

2002 (2) 206,772 3,440,686,080$ 16,640$ 7.0% 29,096 75.7%

2003 (2) 212,675 3,628,235,500 17,060 7.3% 28,488 72.9%

2004 (2) 218,806 3,887,963,814 17,769 6.6% 29,922 73.4%

2005 224,874 4,991,824,120 22,198 5.0% 31,464 73.2%

2006 229,189 5,241,415,326 22,869 5.2% 33,167 74.1%

2007 231,470 4,958,914,000 21,424 4.2% 34,845 72.4%

2008 236,941 5,386,686,000 22,734 5.6% 37,712 71.4%

2009 233,152 4,350,833,750 18,661 9.1% 37,136 72.8%

2010 236,091 5,386,686,000 22,816 9.0% 37,811 75.2%

2011 250,304 5,624,141,000 22,469 8.2% 38,839 75.8%

159



PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO

Notes: (1) Data compiled by the Laredo Development Foundation on March, 2011

(2) Data compiled by the UISD Human Resources Department

Source: Laredo Development Foundation and United ISD Human Resources Department.

Percentage of Percentage ofTotal County Total County

Employer Employees Rank Employment Employees Rank Employment

United Independent School District(2) 6,179 1 22.2% 4,184 1 18.5%

Laredo Independent School District 4,500 2 16.1% 3,349 2 14.8%

City of Laredo 2,371 3 8.5% 2,080 3 9.2%

Laredo Sector Border Patrol 2,000 4 7.2% 1,129 7 5.0%

H.E.B. Grocery Company 1,626 5 5.8% 1,184 6 5.2%

Webb County 1,500 6 5.4% 1,270 5 5.6%

Laredo Medical Center (formerly Mercy Hospital) 1,300 7 4.7% 2,000 4 8.8%

McDonald's Restaurant 1,200 8 4.3% 1,113 8 4.9%

Texas A&M International University 1,215 9 4.4% 696 10 3.1%

Convergys 860 10 3.1% n/a - -

Wal-Mart (3 locations) 937 11 3.4% 520 14 2.3%

Laredo Community College 902 12 3.2% 991 9 -

Doctors Hospital of Laredo 811 13 2.9% 672 11 3.0%

International Bank of Commerce 661 14 2.4% 500 15 2.2%

Stripes (28 units) 337 15 1.2% n/a - -

Compass Bank (formerly LNB) 276 16 1.0% 555 13 2.5%

Target Greatland 221 17 0.8% n/a - -

Laredo Entertainment Center 293 18 1.1% n/a - -

Border Region MHMR 245 19 0.9% 325 18 1.4%

Falcon International Bank 292 20 1.0% n/a - -

Miracle Candle Company 168 - 0.6% 243 19 1.1%

APC Homemaker Service n/a - - 652 12 2.9%

U.S. Dept. of Treasury n/a - - 446 17 2.0%

Laredo Medical Group n/a - - 485 16 2.1%

Texas Mexican Railway Co. n/a - - 230 20 1.0%

20022011

160



FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS

Source: Texas Education Agency – Academic Excellence Indicator System Report & Standard Reports

Full-time Equivalent Employees as of August 31

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Teachers

Pre-K & Kindergarten 222 233 226 236 243 237 260 257 261 239Elementary 767 789 814 872 911 970 999 1,026 1,034 1,060Secondary 697 729 693 758 806 826 912 980 1,004 1,045Special Education 174 188 217 199 215 227 227 237 238 212All Level 6 4 3 2 1 4 4 1 1 0

Total Teachers 1,866 1,943 1,953 2,067 2,176 2,264 2,402 2,501 2,538 2,556

Support StaffSupervisors 0 0 0 7 24 30 49 47 38 33Counselors 63 68 69 78 83 87 94 93 91 98Educational Diagnosticians 16 22 24 29 33 32 25 26 25 25Librarians 31 34 32 34 38 39 40 41 42 42Nurses/Physicians 34 36 37 39 43 45 45 46 50 50Therapists 12 9 21 24 22 30 30 33 34 29Psychol/Assoc Psychol 0 0 0 0 1 0 1 2 4 3Other Support Staff 150 167 136 142 174 172 168 179 152 141

Total Support Staff 306 336 319 353 418 435 452 467 435 421

AdministratorsAdmin/Instr Officers 25 10 17 11 10 8 15 16 66 65Principals 36 36 36 40 39 40 40 41 41 41Assistant Principals 63 68 70 75 80 80 90 92 96 97Superintendent 1 1 1 1 1 1 1 1 1 1Asst Superintendents 2 2 2 2 2 1 6 6 5 5

Total Administrators 127 117 126 129 132 130 152 156 209 209

Educational Aides 513 560 577 535 538 625 757 718 752 747

Auxiliary Staff 1,383 1,469 1,639 1,833 1,897 1,981 1,873 2,139 2,149 2,185

TOTAL PERSONNEL 4,195 4,425 4,614 4,917 5,161 5,435 5,636 5,980 6,083 6,117

161



FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS

Source: Texas Education Agency – Academic Excellence Indicator System Report & Standard Reports

Percentageof StudentsReceiving

Cost # of Pupil- Free orFiscal Operating Per Percentage Teaching Teacher Reduced-PriceYear Enrollment Expenditures Pupil Change Staff Ratio Meals

2002 29,096 174,818,527$ 6,008$ 11.79% 1,866 15.6 75.48%2003 30,725 199,174,211 6,482 7.31% 1,943 15.8 72.71%2004 32,262 214,265,950 6,641 2.39% 1,953 16.5 73.29%2005 33,955 237,715,396 7,001 5.13% 2,067 16.4 73.10%2006 35,697 256,292,843 7,180 2.49% 2,176 16.4 74.08%2007 37,807 283,652,241 7,503 4.30% 2,264 16.7 72.25%2008 38,688 304,012,450 7,858 4.52% 2,402 16.1 71.30%2009 39,475 334,120,347 8,464 7.16% 2,501 15.8 72.84%2010 40,404 364,521,324 9,022 6.18% 2,538 15.9 72.84%2011 41,390 391,789,564 9,466 4.69% 2,556 16.2 75.75%

162



TEACHER BASE SALARIES LAST TEN FISCAL YEARS

Source: (1) United ISD Human Resources Department

(2) Texas Education Agency – Standard Reports

FiscalYear

0 YearsExperienceSalary (1)

32+ YearsExperienceSalary (1)

DistrictAverageSalary (2)

CountyAverageSalary (2)

StatewideAverageSalary (2)

2002 31,000$ 49,125$ 35,013$ 38,001$ 38,361$ 2003 32,500 50,475 37,235 38,631 39,974 2004 34,000 51,825 38,806 40,119 40,478 2005 36,000 54,075 40,871 41,800 41,011 2006 36,500 54,584 41,531 42,371 41,744 2007 39,500 57,204 44,209 45,164 44,897 2008 41,000 60,044 45,778 46,505 46,178 2009 42,000 61,044 47,291 47,938 47,158 2010 43,000 61,961 48,514 49,063 48,263 2011 42,500 61,461 49,097 49,378 48,639

163



MEASURES OF CAPACITY AUGUST 31, 2011

Source: United ISD Environmental Management Department

Total Max. Cap. Practical Square Based on Capacity Total

School Feet Sq. Feet Sq. Feet ClassroomsHigh Schools

United High School 232,686 8,726 5,817 155United South High School 311,147 11,668 7,779 127J.B. Alexander High School 302,713 11,352 7,568 123S.T.E.P. Academy 17,472 655 437 20L.B.J. High School 283,030 10,614 7,076 115

Total High Schools: 1,147,048 43,014 28,676 540

Middle SchoolsUnited Middle School 121,777 4,567 3,044 60United South Middle School 103,684 3,888 2,592 67Salvador Garcia Middle 92,100 3,454 2,303 45Washington Middle 108,036 4,051 2,701 65Clark Middle School 104,008 3,900 2,600 53Los Obispos Middle 96,708 3,627 2,418 51Trautmann Middle School 96,708 3,627 2,418 51Trautmann 6Th Grade 66,300 2,486 1,658 39Gonzalez Middle School 101,260 3,797 2,532 48Lamar-Bruni Vergara Middle 97,117 3,642 2,428 42

Total Middle Schools: 987,698 37,039 24,692 521

Elementary SchoolsNye Elementary 104,376 3,914 2,609 45Clark Elementary 74,418 2,791 1,860 45Salinas Elementary 77,308 2,899 1,933 68Newman Elementary 64,350 2,413 1,609 46Trautmann Elementary 74,499 2,794 1,862 52Perez Elementary 83,581 3,134 2,090 61Finley Elementary 70,828 2,656 1,771 44United D.D. Hachar Elementary 74,499 2,794 1,862 43Gutierrez Elementary 77,996 2,925 1,950 44Ruiz Elementary 82,001 3,075 2,050 54Matias De Llano, Jr. Elementary 74,416 2,791 1,860 50Kazen Elementary 75,161 2,819 1,879 44Juarez-Lincoln Elementary 72,856 2,732 1,821 40Prada Elementary 89,355 3,351 2,234 49Borchers Elementary 92,880 3,483 2,322 44Kennedy-Zapata Elementary 77,562 2,909 1,939 46Col. Santos Benavides Elementary 94,416 3,541 2,360 46Roosevelt Elementary 88,268 3,310 2,207 51Zaffirini Elementary 104,881 3,933 2,622 64Cuellar Elementary 98,161 3,681 2,454 56Muller Elementary 90,481 3,393 2,262 46Arndt Elementary 103,345 3,875 2,584 62Bonnie Garcia Elementary 105,168 3,944 2,629 60Rodolfo C. Centeno Elementary 92,880 3,483 2,322 44Malakoff Elementary 94,416 3,541 2,360 46Fasken Elementary 97,488 3,656 2,437 50Killam Elementary

Total Elementary Schools: 2,235,590 83,835 55,890 1,300

Total Campus: 4,370,336 163,888 109,258 2,361

164


Max. Cap. Practical AverageBased on Capacity Architect's Practical

Classrooms Classrooms Capacity Capacity

6,200 3,875 8,585 4,846 5,080 3,175 11,480 5,477 4,920 3,075 11,169 5,321

800 500 645 468 4,600 2,875 10,443 4,975

21,600 13,500 42,321 21,088

2,400 1,440 4,493 2,242 2,680 1,608 3,826 2,100 1,800 1,080 3,398 1,691 2,600 1,560 3,986 2,130 2,120 1,272 3,837 1,936 2,040 1,224 3,568 1,821 2,040 1,224 3,568 1,821 1,560 936 2,446 1,297 1,920 1,152 3,736 1,842 1,680 1,008 3,583 1,718

20,840 12,504 36,442 18,598

1,800 990 3,851 1,800 1,800 990 2,746 1,425 2,720 1,496 2,852 1,714 1,840 1,012 2,374 1,310 2,080 1,144 2,749 1,503 2,440 1,342 3,084 1,716 1,760 968 2,613 1,369 1,720 946 2,749 1,404 1,760 968 2,878 1,459 2,160 1,188 3,026 1,619 2,000 1,100 2,746 1,480 1,760 968 2,773 1,424 1,600 880 2,688 1,351 1,960 1,078 3,297 1,656 1,760 968 3,427 1,645 1,840 1,012 2,862 1,476 1,840 1,012 3,484 1,686 2,040 1,122 3,257 1,664 2,560 1,408 3,870 2,015 2,240 1,232 3,622 1,843 1,840 1,012 3,338 1,637 2,480 1,364 3,813 1,974 2,400 1,320 3,880 1,975 1,760 968 3,427 1,645 1,840 1,012 3,484 1,686 2,000 1,100 3,597 1,769

52,000 28,600 82,484 42,245

94,440 54,604 161,248 81,931

165



166


Federal Awards

167



168


169


170


171


172



SCHEDULE OF FINDINGS AND QUESTIONED COSTS

For the Year Ended August 31, 2011

SECTION I – SUMMARY OF AUDITORS’ RESULTS

Financial Statements Type of auditors’ report issued: Unqualified Internal control over financial reporting:

Material weakness(es) identified? _____Yes X No Significant deficiency(ies) identified not considered

to be material weaknesses? Yes X None Reported

Noncompliance material to financial statements noted? _____Yes X No

Federal Awards Internal control over major programs:

Material weakness(es) identified? _____Yes X No Significant deficiency(ies) identified not considered

to be material weaknesses? Yes X None Reported Type of auditors’ report issued on compliance for major

programs Unqualified Any audit findings disclosed that are required to be reported

accordance with Circular A-133, Section. 510(a)? Yes X No

Identification of Major Programs CFDA Number(s) Name of Federal Program or Cluster

84.010A 84.389A

84.394

84.010A 84.389

84.410A

ESEA Title I, Part A Cluster Title XIV ARRA Stabilization IDEA B – ARRA Cluster Education Jobs

Dollar threshold used to distinguish between Type A and Type B programs:

$2,168,177

Auditee qualified as low-risk auditee? X Yes No

173



SCHEDULE OF FINDINGS AND QUESTIONED COSTS


SECTION II – FINANCIAL STATEMENT FINDINGS Program Findings/Noncompliance None reported. SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS None reported.

174



SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS


None reported.

175


FEDERAL GANTOR/ Federal Pass-ThroughPASS-THROUGH GRANTOR/ CFDA Entity Indentifying FederalPROGRAM OR CLUSTER TITLE Number Number Expenditures

U.S. DEPARTMENT OF DEFENSEDirect Programs

ROTC 12.113 2011 223,061$ Total Direct Programs 223,061$

TOTAL DEPARTMENT OF DEFENSE 223,061$

U.S. DEPARTMENT OF EDUCATIONPassed Through Laredo Community College

Vocational Education - Technical Preparation 84.243A 111713 21,070$ Total Passed Through Laredo Community College 21,070$

Passed Through Region I Education Svce CenterGear Up Project 84.334A P334A050083-10 172,109$

Total Passed Through Region I Education Service Center 172,109$

Passed Through State Department of EducationESEA Title I Part A - Improving Basic Programs 84.010A 10610101240903 306$ ESEA Title I Part A - Improving Basic Programs 84.010A 11610101240903 11,775,140 ESEA Title I Part D - Subpart 2 Programs 84.010A 12610103240903 454,817 ESEA Title I Part A - School Improvement Program 84.010A 11610104240903001 57,282 ESEA Title I Part A - School Improvement Program 84.010A 10610104240903002 11,493 ESEA Title I Part A - School Improvement Program 84.010A 11610104240903002 58,969 ESEA Title I Part A - School Improvement Program 84.010A 11610104240903003 20,010 ESEA Title I Part A - School Improvement Program 84.010A 10610104240903009 5,363 ESEA Title I Part A - School Improvement Program 84.010A 11610104240903009 58,245 ESEA Titl I P t A S h l I t P 84 010A 10610104240903044 4 091

UNITED INDEPENDENT SCHOOL DISTRICTSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


EXHIBIT K-1

ESEA Title I Part A - School Improvement Program 84.010A 10610104240903044 4,091 ESEA Title I Part A - School Improvement Program 84.010A 11610104240903044 56,255 ESEA Title I Part A - School Improvement Program 84.010A 10610104240903047 5,658 ESEA Title I Part A - School Improvement Program 84.010A 11610104240903047 41,633 ESEA Title I Part A - School Improvement Program 84.010A 11610104240903053 4,781

Total CFDA Number 84.010A 12,554,043$

ESEA Title I, Part C-Migratory Children 84.011A 10615001240903 1,975$ ESEA Title I, Part C-Migratory Children 84.011A 11615001240903 347,709

Total CFDA Number 84.011A 349,684$

IDEA - Part B, Formula 84.027 106600012409036600 6,731$ IDEA - Part B, Formula 84.027 116600012409036600 6,843,290 IDEA - Part B, Formula 84.027 126600012409036600 131,256

Total CFDA Number 84.027 6,981,277$

Vocational Education - Basic Grant 84.048A 11420006240903 470,404$ Vocational Education - Basic Grant 84.048A 12420006240903 8,190

Total CFDA Number 84.048A 478,594$

IDEA - Part B, Preschool 84.173A 106610012409036610 58,863$ ESEA Title IV-Safe & Drug Free Schools 84.186A 11691001240903 42,034$ ESEA Title I Part B - Even Start Family Literacy 84.213C 11612007110409 125,211$

Title III, Part A-LEP / Immigrant 84.365A 11671001240903 1,950,474$ Title III, Part A-LEP / Immigrant 84.365A 12671001240903 35,871


ESEA Title II, Part A, Teacher & Principal Training 84.367A 10694501240903 4,081$ ESEA Title II, Part A, Teacher & Principal Training 84.367A 11694501240903 1,313,413 ESEA Title II, Part A, Teacher & Principal Training 84.367A 12694501240903 62,089


176


FEDERAL GANTOR/ Federal Pass-ThroughPASS-THROUGH GRANTOR/ CFDA Entity Indentifying FederalPROGRAM OR CLUSTER TITLE Number Number Expenditures

Summer School LEP, Rider16 84.369A 2011 65,537$ Title II, Part D, Technology ARRA/Stimulus 84.386A 10553001240903 56,703$

ESEA Title I Part A - ARRA/Stimulus 84.389A 10551001240903 3,512,452$ Title I, Part D, Subpart 2 ARRA/Stimulus 84.389A 10551003240903 46,660 Title I, SIP ARRA/Stimulus 84.389A 11551004240903000 337 Title I, SIP ARRA/Stimulus 84.389A 11551004240903000 204 Title I, SIP ARRA/Stimulus 84.389A 11551004240903000 7,583 Title I, SIP ARRA/Stimulus 84.389A 11551004240903000 82 Title I, SIP ARRA/Stimulus 84.389A 11551004240903000 317 Title I, SIP ARRA/Stimulus 84.389A 11551004240903000 857


IDEA-B Formula ARRA/Stimulus 84.391A 10554001240903 4,719,550$ IDEA-B Preschool ARRA/Stimulus 84.392A 10555001240903 202,068$ ARRA Title XIV State Fiscal Stabilization Funds Grant 84.394A 11557001240903 11,765,222$ ARRA Education Jobs Fund 84.410A 11550101240903 7,149,483$

Total Passed Through State Department of Education 51,482,690$

TOTAL DEPARTMENT OF EDUCATION 51,675,869$

U.S. DEPARTMENT OF JUSTICEPassed Through Dept. of Justice

COPS Secure Our Schools Grant TX294ZZ 2009CKWX0761 206,295$

UNITED INDEPENDENT SCHOOL DISTRICTSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


EXHIBIT K-1 Cont'd

COPS Secure Our Schools Grant TX294ZZ 2009CKWX0761 206,295$ Total Passed Through Dept. of Justice 206,295$

TOTAL DEPARTMENT OF JUSTICE 206,295$

U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICESDirect Programs

Summer Feeding Program* 10.559 N/A 451,681$ Total Direct Programs 451,681$

TOTAL DEPARTMENT OF HUMAN SERVICES 451,681$

U.S. DEPARTMENT OF AGRICULTUREPassed Through State Dept. of Education:

National Breakfast Program - Cash Assistance * 10.553 N/A 6,027,692$ National School Lunch Program - Cash Assistance * 10.555 N/A 12,566,303 Fresh Fruits and Vegetables Program - Cash Assistance * 10.582 N/A 64,527 USDA Donated Commodities - Non-Cash Assistance 10.655 N/A 1,281,096

Total Passed Through State Department of Education 19,939,618$ TOTAL DEPARTMENT OF AGRICULTURE 19,939,618$

TOTAL EXPENDITURES OF FEDERAL AWARDS 72,496,524$

* Clustered Programs as required by Compliance Supplement March, 2011.

177



NOTES ON ACCOUNTING POLICIES FOR FEDERAL AWARDS


1. The District utilizes the fund types specified in the Texas Education Agency Resource Guide.

Special Revenue Funds – are used to account for resources restricted to, or designated

for, specific purpose by a grantor. Federal and state financial assistance generally is accounted for in a special revenue fund. Generally, unused balances are returned to the grantor at the close of specified project periods.

Enterprise Funds – The Nutrition Cluster is accounted for in the Enterprise Fund. The

District’s management intends for the food service operation to be self-sustaining. No operating transfers are made from the General Fund.

2. The accounting and financial reporting treatment applied to a fund is determined by its

measurement focus. The Special Revenue Funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increase (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and accordingly, when such funds are received, they are recorded as deferred revenues until earned.

The Enterprise Fund is maintained on the accrual basis of accounting. Revenues are

recognized when earned, and expenses are recognized when incurred.

3. The period of availability for federal grants for the purpose of liquidation of outstanding obligations made on or before the ending date of the federal project period extended 30 days beyond the federal project period ending date, in accordance with provisions in Section H. Period of Availability of Federal Funds, Part 3, OMB Circular A-133 Compliance Supplement.

4. Expenditures for the Nutrition Cluster Program and the Summer Federal Program are

not specifically attributable to the federal revenues sources and are shown on this schedule in an amount equal to revenue for balancing purposes only.

178


SCHOOLS FIRST QUESTIONNAIRE

United Independent School District Fiscal Year 2011

Were there any disclosures in the Annual Financial Report and/or other sources of information concerning default on bonded indebtedness obligations?

NoSF2

Did the district receive a clean audit? - Was there an unqualified opinion in the Annual Financial Report?

YesSF4

Did the Annual Financial Report disclose any instances of material weaknesses in internal controls?

NoSF5

Was there any disclosure in the Annual Financial Report of material noncompliance? NoSF9

Total accumulated accretion on capital appreciation bonds included in government-wide financial statements at fiscal year end.

18,954,130SF10

November 30, 2011

Board of TrusteesUnited Independent School District

We have audited the financial statements of the United Independent School District, for the year ended ended August 31, 2011, and have issued our report thereon dated November 30, 2011. We considered the internal control structure to determine our auditing procedures for the purpose of expressing an opinion on the financial statements and not to provide assurance on the internal control structure.

However, during our audit we became aware of several matters that, while not involving material weaknesses in internal accounting control, are opportunities for strengthening internal controls and operating efficiency. The memorandum that accompanies this letter summarizes our comments and suggestions regarding those matters. This letter does not affect our report, dated November 30, 2011, on the financial statements of the United Independent School District.

We have already discussed many of these comments and suggestions with various District personnel, and we will be pleased to discuss them in further detail at your convenience, to perform any additional study of these matters, or to assist you in implementing the recommendations.

Yours truly,

PATTILLO, BROWN & HILL, L.L.P.

Carlos H. Cascos, CPA, CGFM

1


COMMENTS AND RECOMMENDATIONS

AUGUST 31, 2011

CURRENT YEAR COMMENTS

CREDIT CARD POLICY

Comment:

During our testing of credit card expenditures, we found that the District has no written policies regarding credit card usage.

Recommendation:

Written policies should be adopted and implemented to ensure that credit card usage is appropriate and that all expenditures incurred through the use of any District issued credit cards are in accordance with policies approved by the District.

2

PRIOR YEAR COMMENTS

COLLATERALIZATION

Comment:

While testing the District’s collateral position, we found that the District was under collateralized three out the 12 months for the fiscal year ended August 31, 2010.

Recommendation:

We recommend that the appropriate steps be taken to obtain the necessary pledged securities by the bank. Subsequent to a pledge agreement, we also recommend the District monitor all cash balances on a regular basis to verify that they are adequately collateralized.

Current Year Status:

There was an instance in which the District was under collateralized one day; however, a corrective plan has been implemented by the District.

PURCHASE ORDERS

Comment:

During our testing of the fixed assets additions, we found that the District did not issue a purchase order for the acquisition of land.

Recommendation:

We recommend the District adhere to its policies and procedures for the uses of purchase requisitions, purchase orders, and purchase order modifications. These procedures will help ensure that only proper and authorized expenditures are paid and that a proper audit trail is maintained.

Current Year Status:

The District implemented a corrective action plan as of December 5, 2010; however we found some instances prior to December 5, 2010.

**********************************

We appreciate the opportunity to be of service to the District. If you should have any questions or require further information, please do not hesitate to call.

United ISD 2011

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