2010-2011 San Juan Alamo PSJA Audit Final

PHARR-SAN JUAN-ALAMO
INDEPENDENT SCHOOL DISTRICT

ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED AUGUST 31, 2011
This Page Le Intenonally Blank
Introductory Section
Pharr-San Juan-Alamo Independent School District

Annual Financial Report
For The Year Ended August 31, 2011
TABLE OF CONTENTS
Page
Exhibit
INTRODUCTORY SECTION
List of Principal Officials........................................................................................................
Certificate of Board................................................................................................................
1
2
FINANCIAL SECTION
Independent Auditor's Report on Financial Statements........................................................
Management's Discussion and Analysis (Required Supplementary Information).................
3
5
Basic Financial Statements

Government-wide Financial Statements:
Statement of Net Assets.............................................................................................
Statement of Activities................................................................................................
Fund Financial Statements:
Balance Sheet - Governmental Funds........................................................................
Reconciliation of the Governmental Funds
Balance Sheet to the Statement of Net Assets......................................................
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Governmental Funds..................................................................
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities..................
Statement of Net Assets - Internal Service Funds......................................................
Statement of Revenues, Expenses, and Changes in
Fund Net Assets - Internal Service Funds.............................................................
Statement of Cash Flows - Proprietary Funds............................................................
Statement of Fiduciary Net Assets - Fiduciary Funds.................................................
Notes to the Financial Statements ..................................................................................
13
14
A-1
B-1
15
C-1
17
C-1R
18
C-2
20
21
C-3
D-1
22
23
24
25
D-2
D-3
E-1
40
G-1
42
H-1
43
H-2
44
H-3
53
H-4
Required Supplementary Information:

Budgetary Comparison Schedules:
General Fund..............................................................................................................
Combining Statements as Supplementary Information:
Combining Balance Sheet - All Nonmajor Governmental Funds.....................................
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances - All Nonmajor Governmental Funds..................................................
Special Revenue Funds:
Combining Balance Sheet - Nonmajor Special Revenue Funds................................
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Nonmajor Special Revenue Funds.........................................
Permanent Funds:

Annual Financial Report
For The Year Ended August 31, 2011
TABLE OF CONTENTS
Page
Combining Balance Sheet - Nonmajor Permanent Funds..........................................
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Nonmajor Permanent Funds...................................................
Exhibit
61
H-5
63
H-6
65
H-7
67
69
H-8
H-9
71
73
J-1
J-2
74
J-3
Internal Service Funds:

Combining Statement of Net Assets...........................................................................
Combining Statement of Revenues, Expenses and Changes
in Fund Net Assets................................................................................................
Combining Statement of Cash Flows..........................................................................
OTHER SUPPLEMENTARY INFORMATION SECTION
Schedule of Delinquent Taxes Receivable............................................................................
Indirect Cost Computation Schedule ....................................................................................
Budgetary Comparison Schedules Required by the Texas Education Agency:
Interest & Bonded.......................................................................................................
Report on Internal Control over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards.......................................................
Report on Compliance with Requirements That Could Have a Direct and
Material Effect on each Major Program and on Internal Control over
Compliance In Accordance With OMB Circular A-133.....................................................
Schedule of Findings and Questioned Costs .......................................................................
Summary Schedule of Prior Audit Findings...........................................................................
Corrective Action Plan...........................................................................................................
Schedule of Expenditures of Federal Awards ......................................................................
Notes to the Schedule of Expenditures of Federal Awards...................................................
Schedule of Required Responses to Selected School First Indicators.................................
75
77
79
81
82
83
85
86
K-1
K-2
PHARR-SAN JUAN-ALAMO INDEPENDENT SCHOOL DISTRICT

LIST OF PRINCIPAL OFFICIALS
AUGUST 31, 2011
November 2010 - November 2011

Elected Officials
Name
Mr. Reymundo Gonzalez
Office
President
Mr. Bobby Rodriguez
Vice-President
Mr. Ben Garza, Jr.
Secretary-Treasurer
Mr. Ronnie Cantu
Assistant Secretary-Treasurer
Mrs. Ramona Barron
Member
Mr. Pedro Garcia
Member
Mr. Gilbert Herrera
Member
November 2011 - November 2012

Elected Officials
Name
Mr. Ben Garza, Jr.
Office
President
Mr. Bobby Rodriguez
Vice-President
Mr. Ronnie Cantu
Secretary-Treasurer
Mr. Reymundo Gonzalez
Assistant Secretary-Treasurer
Mrs. Ramona Barron
Member
Mr. Pedro Garcia
Member
Mr. Gilbert Herrera
Member
Appointed Officials
Name
Dr. Daniel King
Position
Superintendent of Schools
CERTIFICATE OF BOARD

Name of School District
Hidalgo
County
108-909
Co.-Dist. Number
We, the undersigned, certify that the attached annual financial reports of the above named school district
were reviewed and (check one)
approved
disapproved for the year ended August 31, 2011,
at a meeting of the board of trustees of such school district on the
Signature of Board Secretary
day of
Signature of Board President
If the board of trustees disapproved of the auditor's report, the reason(s) for disapproving it is (are):
(attach list as necessary)
Financial Section
Management's Discussion and Analysis
MANAGEMENTS DISCUSSION AND ANALYSIS

This section of Pharr-San Juan-Alamo Independent School Districts annual financial report presents our discussion and
analysis of the Districts financial performance during the fiscal year ended August 31, 2011. Please read it in
conjunction with the Districts financial statements, which follow this section.
FINANCIAL HIGHLIGHTS
The Districts total combined net assets were $310,775,928 for fiscal year ending August 31, 2011.
During the year, the Districts expenses were $17,568,426 less than the $216,243,889 generated in taxes and
other revenues for governmental activities. The net change in general fund balance was $4,704,886. A portion
of the increase is due to the district utilizing part of the Education Jobs Fund Grant from the state.
The general fund reported an unassigned fund balance this year of $39,027,027.
OVERVIEW OF THE FINANCIAL STATEMENTS

This annual report consists of three partsmanagements discussion and
analysis (this section), the basic financial statements, and required
supplementary information. The basic financial statements include two
kinds of statements that present different views of the District:
The first two statements are government-wide financial statements

that provide both long-term and short-term information about the
Districts overall financial status.
The remaining statements are fund financial statements that focus

on individual parts of the government, reporting the Districts
operations in more detail than the government-wide statements.
The governmental funds statements tell how general government

services were financed in the short term as well as what remains for
future spending.
Proprietary fund statements offer short and long-term financial

information about the activities the government operates like
businesses, such as food service.
Fiduciary fund statements provide information about the financial

relationships in which the District acts solely as a trustee or agent
for the benefit of others, to whom the resources in question belong.
Figure A-1F, Required Components of the

Districts Annual Financial Report
The financial statements also include notes that explain some of the
information in the financial statements and provide more detailed data. The statements are followed by a section of
required supplementary information that further explains and supports the information in the financial statements.
Figure A-1 shows how the required parts of this annual report are arranged and related to one another.
Figure A-2. Major Features of the Districts Government-wide and Fund Financial Statements
Figure A-2 summarizes the major

features of the Districts financial
statements, including the portion of
the District government they cover
and the types of information they
contain.
The remainder of this
overview section of managements
discussion and analysis explains the
structure and contents of each of the
statements.
Government-wide Statements
The government-wide statements
report information about the District
as a whole using accounting methods
similar to those used by privatesector companies. The statement of
net assets includes all of the
governments assets and liabilities.
All of the current years revenues
and expenses are accounted for in
the statement of activities regardless
of when cash is received or paid.
Type of Statements
Government-wide
Governmental Funds
The activities of the district
that are not proprietary or
(except fiduciary funds)
and the Agency's component fiduciary
units
Entire Agencys government
Scope
Fund Statements
Proprietary Funds
Activities the district
operates similar to private
businesses: self insurance
Fiduciary Funds
Instances in which the
district is the trustee or
agent for someone else's
resources
Statement of net assets
Balance sheet
Statement of net assets
Required financial
statements
Statement of activities
Statement of revenues,
expenditures & changes
in fund balances
Statement of revenues,
expenses and changes in
fund net assets
Accounting basis
and measurement
focus
Accrual accounting and

economic resources focus
Modified accrual
accounting and current
financial resources focus
Only assets expected to
be used up and liabilities
that come due during the
year or soon thereafter;
no capital assets included


All assets and liabilities,

both financial and capital,
and short-term and longterm
Revenues for which cash

is received during or soon
after the end of the year;
expenditures when goods
or services have been
received and payment is
due during the year or
soon thereafter
All revenues and expenses

during year, regardless of
when cash is received or
paid

both short-term and longterm; the Agency's funds do
not currently contain
capital assets, although
they can
All revenues and
expenses during year,
regardless of when cash
is received or paid
Statement of fiduciary
net assets
Statement of changes
in fiduciary net assets
Statement of cash flows
Type of
asset/liability
information
Type of
inflow/outflow
information

both financial and capital,
short-term and long-term
All revenues and

expenses during year,
regardless of when cash
is received or paid
The two government-wide statements report the Districts net assets and how they have changed. Net assetsthe
difference between the Districts assets and liabilitiesis one way to measure the Districts financial health or position.
Over time, increases or decreases in the Districts net assets are an indicator of whether its financial health is
improving or deteriorating, respectively.
The government-wide financial statements of the District include the Governmental activities. Most of the Districts
basic services are included here, such as instruction, curriculum and staff development, school district administrative
support services and general administration. Grants and charges for services finance most of these activities.
Fund Financial Statements
The fund financial statements provide more detailed information about the Districts most significant fundsnot the
District as a whole. Funds are accounting devices that the District uses to keep track of specific sources of funding and
spending for particular purposes.
Some funds are required by State law and by bond covenants.
The Board of Trustees establishes other funds to control and manage money for particular purposes or to show
that it is properly using certain grants and local sources.
The District has the following kinds of funds:
Governmental fundsMost of the Districts basic services are included in governmental funds, which focus on
(1) how cash and other financial assets that can readily be converted to cash flow in and out and (2) the balances
left at year-end that are available for spending. Consequently, the governmental fund statements provide a
detailed short-term view that helps you determine whether there are more or fewer financial resources that can
be spent in the near future to finance the Districts programs. Because this information does not encompass the
additional long-term focus of the government-wide statements, we provide additional information at the bottom
of the governmental funds statement, or on the subsequent page, that explain the relationship (or differences)
between them.
Proprietary fundsServices for which the District charges customers a fee are generally reported in proprietary
funds. Proprietary funds, like the government-wide statements, provide both long-term and short-term financial
information.
6
We use internal service funds to report activities that provide supplies and services for the Districts other
programs and activities such as the districts Self Insurance Funds and the Print Shop.
Fiduciary fundsThe District is the trustee, or fiduciary, for certain funds. It is also responsible for other assets
thatbecause of a trust arrangementcan be used only for the trust beneficiaries. The District is responsible
for ensuring that the assets reported in these funds are used for their intended purposes. All of the Districts
fiduciary activities are reported in a separate statement of fiduciary net assets and a statement of changes in
fiduciary net assets. We exclude these activities from the Districts government-wide financial statements
because the District cannot use these assets to finance its operations. Student activity funds are included here.
The Governmental Accounting Standard Board (GASB) released Statement 54 Fund Balance Reporting and
Governmental Fund type Definitions on March 11, 2009, which is effective for fiscal year ending August 31, 2011.
This new statement is intended to improve the usefulness of the amount reported in fund balance by providing more
structured classification.
Previously fund balance was classified as reserved or unreserved. GASB 54 will change how fund balance is
reported. The hierarchy of five possible classifications is as follows:
Nonspendable Fund Balance

Restricted Fund Balance
Committed Fund Balance
Assigned Fund Balance
Unassigned Fund Balance
The five classifications of fund balance of the governmental types are defined as follows:
1.
Nonspendable fund balance shall mean the portion of the gross fund balance that is not expendable (such as
inventories) or is legally earmarked for a specific use.
Examples of nonspendable fund balance reserves for which fund balance shall not be available for general
operating expenditures include:
Inventories
Prepaid items
Deferred expenditures
Long-term receivables
Outstanding encumbrances
2.
Restricted fund balance shall include amounts constrained to a specific purpose by the provider, such as a
grantor.
Examples of restricted fund balances include:
Child nutrition program
Technology program
Construction Program
Resources from TEA for specific programs
3.
Committed fund balance shall mean that portion of the fund balance that is constrained to a specific purpose by
the Board or Superintendent.
Examples include:
Potential litigation, claims, and judgments
Construction
Capital expenditures for equipment
Student activity funds
4.
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 Superintendent. In current
practice such plans or intent may change and may never be budgeted, or may result in expenditures in future
periods of time.
Examples include:
Program Start-Up Costs
Other Legal Uses
7
5.
Unassigned fund balance shall include amounts available for any legal purpose. This portion fo the total fund
balance in the general fund is available to finance operating expenditures. The unassigned fund balance shall
be the difference between the total fund balance and the total of the nonspendable fund balance, restricted fund
balance, committed fund balance and assigned fund balance.
The introduction of GASB 54 has created changes in the districts Fund Balances classifications beginning with the
2010-11 fiscal year.
FINANCIAL ANALYSIS OF THE DISTRICT AS A WHOLE
Net assets. The Districts combined net assets were $310,775,928 on August 31, 2011. (See Table A-1).
Table A-1 Pharr-San Juan-Alamo Independent School District
Governmental
Governmental
Activities 2010
Activities 2011
Current Assets:
Cash and cash equivalents
$
244,964,368
$
331,437,116
Current Investments
150,302
150,906
Property taxes receivable(net of allowance)
9,220,836
9,059,856
Due from other governments
24,258,687
31,096,657
Accrued Interest
417,708
112,723
Other receivables (Net)
1,501,650
1,656,507
Inventories
1,996,622
1,949,229
Deferred Expenses
11,501
Total Current Assets
282,510,173
375,474,495
Noncurrent Assets:
Capitalized Bond and Other Debt Issuance Costs
4,379,191
5,090,275
Land
15,576,565
15,576,565
Building, net
224,930,606
219,356,221
Furniture and equipment, net
13,272,196
11,593,649
Capital Leases (Net)
0
499,590
Constrution in progress
96,731,714
160,045,292
Infrastructure (Net)
3,912,392
3,169,627
Total Noncurrent Assets
358,802,664
415,331,219
641,312,837
790,805,714
Total Assets
Current Liabilities:
Accounts Payable
8,200,484
16,959,562
Short Term Debt Payable
1,775,000
Interest Payable
1,181,653
1,508,068
Accrued Liabilities
16,482,198
14,315,978
Due to other governments
2,441,010
5,476,012
Due to student groups
405,477
392,865
Deferred revenue
1,038,221
2,766,044
Total Current Liabilities
29,749,043
43,193,529
Long-Term Liabilities:
Due with in a year
9,131,064
11,202,061
Due in more than one year
309,403,460
425,634,196
348,283,567
480,029,786
Total Liabilities
Net Assets:
Invested in Capital Assets, Net of Related Debt
161,754,248
83,977,537
Restricted for State and Federal Programs
731,803
2,576,949
Restricted for Debt Service
37,190,182
24,623,529
Restricted for Capital Projects
0
120,287,817
Other Purposes
35,466,557
59,385,462
Unrestricted Net Assets
57,886,480
19,924,634
$
293,029,270
$
310,775,928
Total Net Assets
Changes in net assets. Th

he Districts tottal revenues were
w
$216,243,8889. A signifiicant portion, ((77%), of the D
Districts reven
nue
comes from grants and con
ntributions (Seee Figure A-3.).
The total cost of all prograams and servicces was $322,2
240,928; of thhese costs 80.3% are for instrruction and instructional relaated
services and student services.
ntal Activities
Governmen
Invesstment earningss continued to decrease due to the decrease in interest ratees.
Propeerty taxes increeased due to in

ncrease in the debt service taax rate and an increase in vaalues. The tax rate for
2010--11 was 1.3592
2 and will remaain the same fo
or 2011-12. Thhe maintenancce and operatioons tax rate wass 1.04 in
2010--11 and will in
ncrease to 1.17 in 2011-12. The
T debt servicce tax rate wass .3192 in 20100-11 and will ddecrease
to .18
892 in 2011-12
2. This is the result
r
of the diistrict having a successful Taax Ratificationn Election in A
August of
2011. Balances in the
t debt servicee fund will con
ntinue to pay thhe debt servicee payments for 2011-12.
Figuree A-3 Distrrict Sources of Reveenue for F

Fiscal Yearr
Inves
stment
2
2011
Other
O
Misc
Earnnings
1%
Items
1%
Propeerty Taxes
21%
Grantss and
Contrib
butions
77%
%
Table A-2
Changes in thee District's Net A
Assets
Governmenttal
Activities 2010
Pro
ogram Revenuees:
Ch
harges for servicces
Op
perating grants and
a contributions
Caapital Grants and
d Contributions
Prroperty taxes
Grrants and contrib
butions not restriicted
In
nvestment Earnin
ngs
Miscellaneous
M
rev
venue
Total Revenues
894,7555
103,600,7888
11,824,7666
45,942,3552
166,592,2661
1,788,9779
Governmental
Activvities 2011
$
809,434
107,225,638
15,530,393
47,192,689
167,215,720
1,254,979
1,228,6111
580,501
331,872,5112
338,809,354
Program Expenses:
11 Instruction
12 Instructional resources media services
13 Curriculum dev. and instructional staff dev.
21 Instructional leadership
23 School leadership
31 Guidance, counseling, and evaluation services
32 Social work services
33 Health services
34 Transportation
35 Food services
36 Curricular/Extracurricular activities
41 General administration
51 Plant maintenance and operations
52 Security and monitoring
53 Data processing services
61 Community services
72 Debt Service
73 Bond Issuance Cost and Fees
81 Facilities acquisition and construction
93 Payments Related to Shared Services Arrangements
95 Payments to JJAEP
99 Other Intergovernmental Charges
173,106,190
6,767,316
7,060,956
5,545,614
14,908,851
10,938,910
2,694,458
2,978,459
5,364,620
18,796,715
7,664,174
177,583
27,962,828
3,757,881
1,825,041
2,164,815
14,834,091
(31,420)
1,664,270
272,533
35,748
561,982
Total Expenditures
172,917,132
6,472,880
8,550,558
6,003,620
15,314,330
10,967,257
2,682,610
3,188,935
5,640,638
18,690,366
8,255,877
6,983,821
28,571,878
3,511,651
1,386,650
2,189,052
18,668,409
(111,766)
1,415,168
335,586
5,762
600,514
309,051,615
$
Increase (Decrease) in Net Assets
322,240,928
$
22,820,897
17,568,426
Table A-3 presents the cost of each of the Districts largest functions.
The cost of all governmental activities this year was $198,675,462. Those who directly benefited from program
activities paid some of the cost. Other programs and services activities were paid by grants contributions.
Table A-3
Cost of Selected District's Functions
Total Cost of
Services 2010
Instruction
Plant, Maintenance & Operations
Food Service
School Leadership
173,106,190
27,962,828
18,796,715
14,908,851
Total Cost of
Services 2011
$
172,917,132
28,571,878
18,690,366
15,314,330
%
Chage
-0.1%
2.2%
-0.6%
2.7%
FINANCIAL ANALYSIS OF THE DISTRICTS FUNDS

Revenues from governmental fund types totaled $339,958,264. The increase in local revenues is a result of increased
property values. The increase in state revenues is a result of increased state aid. In addition SHARS revenue increased.
Another increase in the federal program revenues was in part due to the ARRA grants. These grants were awarded for
two years beginning with the fiscal year 2009-10. The remaining balance available for the 2010-11 fiscal year was
more than the amount utilized for the 2009-10 fiscal year.
The General Fund is the chief operating fund of the district. As of August 31, 2011, the fund balance of the general
fund was $96,020,764. The unassigned balance of $39,027,028 or 40.6% of this total amount is available for spending
at the governments discretion. Of the current ending fund balances, the following categories are recorded and primary
used noted in accordance with implementing GASB No. 54:
$1,958,482 is recorded as nonspendable for inventories and deferred expenditures;

10
$17,725,684 is recorded as Restricted; $1,822,128 in Food Service and $10,132,960 for the State Science Lab
Grant; and $5,770,596 in other State programs;
$16,500,00 is recorded as committed for Construction;
$6,000,000 is recorded as committed for capital expenditures for equipment for new schools;
$12,934,570 is recorded as committed for sick leave payoff;
$1,875,000 is recorded as assigned for E-Rate and other items;
$39,027,028 is the remaining fund balance and is recorded as unassigned.
General Fund Budgetary Highlights

Over the course of the year, the District revised its budget several times. In addition, the school board approved several
increases in appropriations to prevent budget overruns. The budget was also amended to provide furniture and
equipment for a new middle school, a new elementary school and additional furniture and equipment for year two of the
new high school. With these adjustments, actual expenditures were below final budget amounts.
CAPITAL ASSETS
At the end of fiscal year 2011, the District had invested $353,071,700 in a broad range of capital assets, including land,
equipment, buildings, and vehicles. (See Table A-4.)
Table A-4
Governmental
Activities 2010
Capital Assets:
Land
Buildings & Improvements
Furniture & Equipment
Vehicles
Library Books
Capital Leases
Construction in Progress
Infrastructure
$ 15,576,565
285,262,525
25,273,886
12,101,016
96,731,714
14,181,940
Governmental
Activities 2011
$
15,576,565
285,478,098
26,912,554
12,056,965
3,904
499,590
160,045,293
14,248,590
Total Capital Assets at Historical Cos
449,127,646
514,821,559
Less: Accumulated Depreciation
(95,042,783)
(104,580,614)
Net of Capital Assets
$ 354,084,863
410,240,945
More detailed information about the Districts capital assets is presented in the notes to the financial statements.
LONG TERM OBLIGATION ACTIVITY
Table A-5
Long-term obligations include debt and other long-term liabilities. Changes in long-term obligations for the period
ending August 31, 2011, are as follows:
Governmental Activities
General Obligation Bonds
Accretion
Construction Notes Payable
Capital Leases (Restated)
Sick Leave
Subtotal
Premium & Discount
Total Governmental Activities
Beginning Balance
$287,480,000
$ 1,391,101
$
$ 413,327
$ 16,585,213
$305,869,641
$ 12,631,098
$318,500,739
Increases
$104,475,000
$ 269,378
$ 26,755,000
$
$
$131,499,378
$ 4,379,690
$135,879,068
Decreases
$10,980,000
$ 300,000
$
$ 218,151
$ 3,650,643
$15,148,794
$ 619,755
$15,768,549
11
Ending Balance
$380,975,000
$ 1,360,479
$ 26,755,000
$
195,176
$ 12,934,570
$ 422,220,225
$ 16,391,033
$ 438,611,258
Amt Due in
One Year
$11,050,000
$
$ 1,775,000
$ 152,061
$
$ 12,977,061
$ 626,070
$ 13,603,131
Rating
AAA
ECONOMIC FACTORS AND NEXT YEARS BUDGETS AND RATES

Appraised value used for the 2012 budget preparation is up only $10.4 million, or .03% from $3.447 billion.
The Districts 2012 refined average daily attendance is expected to be 28,520. No growth was projected.
These indicators were taken into account when adopting the general fund budget for 2012. Amounts available for
appropriation in the general fund budget are $297 million. This represents an increase over the original 2011 budget of
$283 million due to the district having a successful Tax Ratification Election. Property values continue to rise, but at a
slower pace. State revenues will increase when the student population grows but will otherwise remain constant due to
state funding formulas. The district is already examining the budget for 2013 to take into account the states continuing
fiscal concerns.
Expenditures are budgeted to rise to $294 million in the general fund. The largest increments are increased staffing,
teacher salary schedule adjustments, and a purchase of buses. These competitive salary schedule adjustments allowed
the District to open the 2012 school year with few teacher vacancies. Increased wage and cost of living adjustments
were not made to this years salary schedules. The District has continued our highly successful College, Career and
Technology Academy and added a fourth year to Thomas Jefferson T-Stem Early College High School. In addition,
Audie Murphy Middle School and Marcia Garza Elementary were opened in August of 2011. Southwest High School
added sophomores for 2012. Opening these schools continues to reduce overcrowding in our middle schools, balance
our elementary schools and align our schools vertically.
If these estimates are realized, the Districts budgetary general funds fund balance is not expected to change
appreciably by the close of 2012.
CONTACTING THE DISTRICTS FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, customers, and investors and creditors with a general overview
of the Districts finances and to demonstrate the Districts accountability for the money it receives. If you have
questions about this report or need additional financial information, contact the Districts Business Office.
12
Basic Financial Statements
EXHIBIT A-1

STATEMENT OF NET ASSETS
AUGUST 31, 2011
1
Data
Control
Codes
1110
1120
1225
1240
1250
1290
1300
1410
1420
1510
1520
1530
1540
1550
1580
1590
1000
2110
2120
2140
2165
2180
2190
2300
2501
2502
2000
3200
3820
3850
3860
3890
3900
3000
Governmental
Activities
ASSETS:
Cash and Cash Equivalents
Current Investments
Property Taxes Receivable (Net)
Due from Other Governments
Accrued Interest
Other Receivables (Net)
Inventories
Deferred Expenses
Capitalized Bond and Other Debt Issuance Costs
Capital Assets:
Land
Buildings and Improvements, Net
Furniture and Equipment, Net
District Defined Fixed Assets, Net
Capital Lease Assets, Net
Construction in Progress
Infrastructure, Net
Total Assets
331,437,116
150,906
9,059,856
31,096,659
112,723
1,656,505
1,949,229
11,501
5,090,275
15,576,565
219,356,221
11,589,745
3,904
499,590
160,045,292
3,169,627
790,805,714
LIABILITIES:
Accounts Payable
Short-Term Debt Payable
Interest Payable
Accrued Liabilities
Due to Other Governments
Due to Student Groups
Unearned Revenue
Noncurrent Liabilities:
Due Within One Year
Due in More Than One Year
Total Liabilities
16,959,562
1,775,000
1,508,068
14,315,978
5,476,012
392,865
2,766,044
11,202,061
425,634,196
480,029,786
NET ASSETS
Invested in Capital Assets, Net of Related Debt
Restricted For:
State and Federal Programs
Debt Service
Capital Projects
Other Purposes
Unrestricted
Total Net Assets
83,977,537
The accompanying notes are an integral part of this statement.
13
2,576,949
24,623,529
120,287,817
59,385,462
19,924,634
310,775,928
EXHIBIT B-1

STATEMENT OF ACTIVITIES
Data
Control
Codes Functions/Programs
Governmental Activities:
11
Instruction
$
12
Instructional Resources and Media Services
13
Curriculum and Staff Development
21
Instructional Leadership
23
School Leadership
31
Guidance, Counseling, & Evaluation Services
32
Social Work Services
33
Health Services
34
Student Transportation
35
Food Service
36
Cocurricular/Extracurricular Activities
41
General Administration
51
Plant Maintenance and Operations
52
Security and Monitoring Services
53
Data Processing Services
61
Community Services
72
Interest on Long-term Debt
73
Bond Issuance Costs and Fees
81
Capital Outlay
93
Payments Related to Shared Services Arrangements
95
Payments to Juvenile Justice Alternative Ed. Progra
99
Other Intergovernmental Charges
TG
Total Governmental Activities
TP
Total Primary Government
$
MT
DT
IE
GC
MI
TR
CN
NB
PA
NE
Charges for
Services
Expenses
172,917,132 $
6,472,880
8,550,558
6,003,620
15,314,330
10,967,257
2,682,610
3,188,935
5,640,638
18,690,366
8,255,877
6,983,821
28,571,878
3,511,651
1,386,650
2,189,052
18,668,409
(111,766)
1,415,168
335,586
5,762
600,514
322,240,928
322,240,928 $
52,912
1,850
2,291
1,332
5,230
957
140
555
3,211
329,636
363,178
3,862
26,052
16,910
780
150
7
--28
3
349
809,434
809,434
Program Revenues
Operating
Capital
Grants and
Grants and
Contributions
Contributions
$
51,245,888
3,309,284
5,155,065
2,598,018
5,602,239
7,737,499
2,118,463
1,992,539
153,946
17,224,998
488,412
335,328
1,244,280
170,897
57,626
1,787,351
4,899,048
-1,040,000
59,618
49
5,089
107,225,638
$ 107,225,638
191,452
412
46,072
8,805
7,799
7,448
31
123
714
32
395
859
3,557
400
173
33
15,262,003
--6
1
77
15,530,393
15,530,393
General Revenues:
Property Taxes, Levied for General Purposes
Property Taxes, Levied for Debt Service
Investment Earnings
Grants and Contributions Not Restricted to Specific Programs
Miscellaneous
Total General Revenues
Change in Net Assets
Net Assets - Beginning
Prior Period Adjustment
Net Assets - Beginning, as Restated
Net Assets - Ending
14
Net (Expense)
Revenue and
Changes in
Net Assets
Governmental
Activities
$
(121,426,880)
(3,161,334)
(3,347,130)
(3,395,465)
(9,699,062)
(3,221,353)
(563,976)
(1,195,718)
(5,482,767)
(1,135,700)
(7,403,892)
(6,643,772)
(27,297,989)
(3,323,444)
(1,328,071)
(401,518)
1,492,649
111,766
(375,168)
(275,934)
(5,709)
(594,999)
(198,675,463)
(198,675,463)
36,179,484
11,013,205
1,254,979
167,215,720
580,501
216,243,889
17,568,426
293,029,270
178,232
293,207,502
310,775,928

BALANCE SHEET - GOVERNMENTAL FUNDS
AUGUST 31, 2011
10
Data
Control
Codes
General
Fund
1110
1120
1225
1240
1250
1260
1290
1300
1410
1000
ASSETS:
Current Investments
Taxes Receivable, Net
Accrued Interest
Due from Other Funds
Other Receivables
Inventories
Deferred Expenditures
Total Assets
2110
2150
2160
2170
2180
2190
2300
2000
LIABILITIES:
Accounts Payable
Payroll Deductions & Withholdings
Accrued Wages Payable
Due to Other Funds
Deferred Revenue
Total Liabilities
3410
3450
3480
3490
3510
3530
3545
3590
3600
3000
4000
50
Debt
Service
Fund
FUND BALANCES:
Nonspendable Fund Balances:
Inventories
Restricted Fund Balances:
Federal/State Funds Grant Restrictions
Retirement of Long-Term Debt
Other Restrictions of Fund Balance
Committed Fund Balances:
Construction
Capital Expenditures for Equipment
Other Committed Fund Balance
Assigned Fund Balances:
Other Assigned Fund Balance
Unassigned
Total Fund Balances
114,852,237
8,906
7,444,576
6,758,123
78,220
5,381,588
1,341,961
1,946,984
11,501
137,824,096
6,289,416
1,266,997
10,052,410
9,164,598
5,364,974
-9,664,937
41,803,332
1,958,482
-13,715,794
--
16,500,000
6,000,000
12,934,570
----
1,875,000
39,027,028
96,020,764
$
15
137,824,096
---27,240,940
--1,615,281
28,856,221
--
17,725,684
---
Total Liabilities and Fund Balances
10,815,292
-1,615,280
-8,487
30,132,956
---42,572,015
--13,715,794
$
42,572,015
EXHIBIT C-1
60
Construction
Fund
$
202,622,005
----23,666,261
13,536
--226,301,802
8,802,391
--22,667,828
242
--31,470,461
--
1,471,105
(237)
2,990,106
369,698
110,796
392,865
545,682
5,880,015
16,500,000
6,000,000
12,934,570
--265,392
$
6,145,407
16
16,562,912
1,266,760
13,042,516
59,443,064
5,476,012
392,865
11,825,900
108,010,029
17,980,402
13,715,794
194,842,015
----
--194,831,341
309,566,890
8,906
9,059,856
31,096,657
86,818
59,604,247
1,461,461
1,946,984
11,501
412,843,320
1,958,482
254,718
-10,674
----
226,301,802
(18,722,644)
--24,338,534
111
423,442
105,964
--6,145,407
--
--194,831,341
98
Total
Governmental
Funds
Other
Governmental
Funds
1,875,000
39,027,028
304,833,291
$
412,843,320
EXHIBIT C-1R

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
AUGUST 31, 2011
Total fund balances - governmental funds balance sheet
304,833,291
Amounts reported for governmental activities in the Statement of Net Assets

("SNA") are different because:
Capital assets used in governmental activities are not reported in the funds.
Property taxes receivable unavailable to pay for current period expenditures are deferred in the funds.
The assets and liabilities of internal service funds are included in governmental activities in the SNA.
Payables for bond principal which are not due in the current period are not reported in the funds.
Payables for capital leases which are not due in the current period are not reported in the funds.
Payables for bond interest which are not due in the current period are not reported in the funds.
Payables for notes which are not due in the current period are not reported in the funds.
Payables for compensated absences which are not due in the current period are not reported in the funds.
Other long-term assets are not available to pay for current period expenditures and are deferred in the funds.
Net assets of governmental activities - Statement of Net Assets
410,231,938
9,059,856
21,679,893
(380,975,000)
(195,176)
(2,868,547)
(26,755,000)
(12,934,569)
(11,300,758)
$
17
310,775,928

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS
10
Data
Control
Codes
50
Debt
Service
Fund
General
Fund
REVENUES:
5700 Local and Intermediate Sources
5800 State Program Revenues
5900 Federal Program Revenues
5020
Total Revenues
38,394,296
177,961,468
22,154,495
238,510,259
11,175,176
20,135,502
-31,310,678
EXPENDITURES:
Current:
Instruction
School Leadership
Health Services
Food Service
Community Services
Principal on Long-term Debt
Capital Outlay
Payments to Shared Service Arrangements
Payments to Juvenile Justice Altermative
Education Programs
Total Expenditures
131,280,998
3,595,684
3,666,529
3,673,602
9,873,683
3,680,631
525,319
1,230,962
5,515,517
18,278,012
8,117,020
6,730,928
27,745,485
3,374,843
1,372,231
362,783
51,347
14,491
-3,731,572
326,650
----------------10,980,000
18,348,977
35,630
---
5,609
584,525
233,738,421
--29,364,607
1100 Excess (Deficiency) of Revenues Over (Under)

1100
Expenditures
4,771,838
1,946,071
Other Financing Sources and (Uses):

7911
Capital-Related Debt Issued (Regular Bonds)
7915
Transfers In
7916
Premium or Discount on Issuance of Bonds
8911
Transfers Out
7080 Total Other Financing Sources and (Uses)
1200 Net Change in Fund Balances
-28,181,926
-(28,248,878)
(66,952)
4,704,886
66,951
2,013,022
91,292,814
23,064
91,315,878
96,020,764
11,702,772
-11,702,772
13,715,794
0011
0012
0013
0021
0023
0031
0032
0033
0034
0035
0036
0041
0051
0052
0053
0061
0071
0072
0073
0081
0093
0095
0095
0099
6030
0100 Fund Balances - Beginning

1300 Prior Period Adjustment
Fund Balances - Beginning, as Restated
3000 Fund Balances - Ending
18
-66,951
---
EXHIBIT C-2
60
Construction
Fund
$
437,041
--437,041
98
Total
Governmental
Funds
Other
Governmental
Funds
$
248,391
8,584,631
60,867,264
69,700,286
50,254,904
206,681,601
83,021,759
339,958,264
------------------1,183,443
59,897,386
--
41,400,974
3,106,679
4,674,773
2,170,155
5,032,861
7,017,058
2,085,859
1,873,059
---7,180
179,720
80,567
-1,773,884
166,803
9,148
----
172,681,972
6,702,363
8,341,302
5,843,757
14,906,544
10,697,689
2,611,178
3,104,021
5,515,517
18,278,012
8,117,020
6,738,108
27,925,205
3,455,410
1,372,231
2,136,667
11,198,150
18,372,616
1,219,073
63,628,958
326,650
--61,080,829
--69,578,720
5,609
584,525
393,762,577
(60,643,788)
121,566
(53,804,313)
131,230,000
-4,379,690
-135,609,690
74,965,902
-----121,566
131,230,000
28,248,877
4,379,690
(28,248,878)
135,609,689
81,805,376
119,865,439
-119,865,439
194,831,341
143,826
-143,826
265,392
223,004,851
23,064
223,027,915
304,833,291
19
EXHIBIT C-3

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
Net change in fund balances - total governmental funds
81,805,263
Amounts reported for governmental activities in the Statement of Activities

("SOA") are different because:
Capital outlays are not reported as expenses in the SOA.
The depreciation of capital assets used in governmental activities is not reported in the funds.
All proceeds from the sale of capital assets are reported in the funds but not in the SOA.
Certain property tax revenues are deferred in the funds. This is the change in these amounts this year.
Repayment of bond principal is an expenditure in the funds but is not an expense in the SOA.
Repayment of capital lease principal is an expenditure in the funds but is not an expense in the SOA.
Bond issuance costs and similar items are amortized in the SOA but not in the funds.
The accretion of interest on capital appreciation bonds is not reported in the funds.
(Increase) decrease in accrued interest from beginning of period to end of period.
The net revenue (expense) of internal service funds is reported with governmental activities.
Compensated absences are reported as the amount earned in the SOA but as the amount paid in the funds.
Proceeds of bonds do not provide revenue in the SOA, but are reported as current resources in the funds.
Rounding difference
Change in net assets of governmental activities - Statement of Activities
20
65,624,783
(9,940,763)
12,071
(160,981)
10,980,000
218,151
(3,792,966)
774,737
(326,415)
(46,211)
3,650,643
(131,230,000)
2
$
17,568,313
EXHIBIT D-1

STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
AUGUST 31, 2011
Data
Control
Codes
1110
1120
1250
1260
1290
1310
Internal
Service
Funds
ASSETS:
Current Assets:
Investments
Receivables:
Accrued Interest
Other Receivables (net)
Inventories, at Cost
25,905
11,763
195,044
2,245
22,247,183
Noncurrent Assets:
Capital Assets:
1530
Furniture and Equipment
1570
Accumulated Depreciation
1000
Total Assets
2110
2160
2170
2000
21,870,226
142,000
LIABILITIES:
Accounts Payable
Due to Other Funds
Total Liabilities
NET ASSETS:
3800 Restricted Net Assets
3000
Total Net Assets
21
89,059
(80,053)
9,006
22,256,189
396,650
6,702
172,944
576,296
576,296
223,135
21,679,893
EXHIBIT D-2

STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN FUND NET ASSETS - INTERNAL SERVICE FUNDS
Data
Control
Codes
Internal
Service
Funds
OPERATING REVENUES:
5020
Total Revenues
6100
6200
6300
6400
6030
1300
OPERATING EXPENSES:
Payroll Costs
Professional and Contracted Services
Supplies and Materials
Other Operating Costs
Total Expenses
25,136,558
25,136,558
209,692
24,863,741
109,327
9
25,182,769
(46,211)
0100 Total Net Assets - Beginning

Total Net Assets - Beginning, as Restated
3300 Total Net Assets - Ending
22
21,731,654
(5,550)
21,726,104
21,679,893
EXHIBIT D-3

STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Internal
Service
Funds
Cash Flows from Operating Activities:
Cash Received from Customers
Cash Receipts (Payments) for Quasi-external
Operating Transactions with Other Funds
Cash Payments to Employees for Services
Cash Payments to Other Suppliers for Goods and Services
Cash Payments for Grants to Other Organizations
Other Operating Cash Receipts (Payments)
Net Cash Provided (Used) by Operating Activities
-25,203,045
(203,111)
(24,936,251)
--63,683
Cash Flows from Non-capital Financing Activities:

Proceeds (Payments) from (for) Borrowings
Transfers From (To) Other Funds
Net Cash Provided (Used) by Non-capital Financing Activities
-504,879
504,879
Cash Flows from Capital and Related Financing Activities:

Contributed Capital
Net Cash Provided (Used) for Capital & Related Financing Activities
---
Cash Flows from Investing Activities:

Purchase of Fixed Assets
Net Cash Provided (Used) for Investing Activities
---
Net Increase (Decrease) in Cash and Cash Equivalents

Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Reconciliation of Operating Income to Net Cash

Provided by Operating Activities:
Operating Income (Loss)
Adjustments to Reconcile Operating Income to Net Cash
Provided by Operating Activities
Depreciation
Change in Assets and Liabilities:
Decrease (Increase) in Receivables
Increase (Decrease) in Accounts Payable
Increase (Decrease) in Payroll Deductions
Increase (Decrease) in Accrued Wages Payable
Increase (Decrease) in Due to Other Governments
Increase (Decrease) in Unearned Revenue
Total Adjustments
568,562
21,301,664
21,870,226
(46,211)
-66,488
36,826
--
23
6,580
--109,894
63,683
EXHIBIT E-1

STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
AUGUST 31, 2011
Agency
Fund
Data
Control
Codes
Student
Activity
ASSETS:
1110 Cash and Cash Equivalents
1000
Total Assets
LIABILITIES:
2190
2000
Total Liabilities
3000
NET ASSETS
Total Net Assets
$
$
2,037,846
2,037,846
2,037,846
2,037,846
24
--

NOTES TO THE FINANCIAL STATEMENTS
A.
Summary of Significant Accounting Policies

The basic financial statements of Pharr-San Juan-Alamo Independent School District (the "District") have been prepared
in conformity with accounting principles generally accepted in the United States of America ("GAAP") applicable to
governmental units in conjunction with the Texas Education Agency's Financial Accountability System Resource Guide
("Resource Guide"). The Governmental Accounting Standards Board ("GASB") is the accepted standard setting body for
establishing governmental accounting and financial reporting principles.
1.
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 District. The Board is elected by the
public and has the exclusive power and duty to govern and oversee the management of the public schools of the
District. All powers and duties not specifically delegated by statute to the Texas Education Agency ("TEA") or to the
State Board of Education are reserved for the Board, and the TEA may not substitute its judgment for the lawful
exercise of those powers and duties by the Board. The District receives funding from local, state and federal
government sources and must comply with the requirements of those funding entities. However, the District is not
included in any other governmental "reporting entity" as defined by the GASB in its Statement No. 14, "The Financial
Reporting Entity," as revised by GASB Statement No.39, and there are no component units included within the reporting
entity.
2.
Basis of Presentation, Basis of Accounting

a.
Basis of Presentation
Government-wide Financial Statements: The statement of net assets and the statement of activities include
the financial activities of the overall government, except for fiduciary activities. Eliminations have been
made to minimize the double-counting of internal activities. Governmental activities generally are financed
through taxes, intergovernmental revenues, and other nonexchange transactions.
The statement of activities presents a comparison between direct expenses and program revenues for each
function of the District's governmental activities. Direct expenses are those that are specifically associated
with a program or function and, therefore, are clearly identifiable to a particular function. The District does
not allocate indirect expenses in the statement of activities. Program revenues include (a) fees, fines, and
charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions
that are restricted to meeting the operational or capital requirements of a particular program. Revenues that
are not classified as program revenues, including all taxes, are presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about the District's funds, with
separate statements presented for each fund category. The emphasis of fund financial statements is on major
governmental funds, each displayed in a separate column. All remaining governmental funds are
aggregated and reported as nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions
associated with the principal activity of the fund. Exchange transactions are those in which each party receives
and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings,
result from nonexchange transactions or ancillary activities.
The District reports the following major governmental funds:
General Fund: This is the District's primary operating fund. It accounts for all financial resources of the
District except those required to be accounted for in another fund.
In addition, the District reports the following fund types:
Internal Service Funds: These funds are used to account for revenues and expenses related to services provided
to parties inside the District. These funds facilitate distribution of support costs to the users of support
services on a cost-reimbursement basis. Because the principal users of the internal services are the
25

District's governmental activities, this fund type is included in the "Governmental Activities" column of the
government-wide financial statements.
Agency Funds: These funds are used to report student activity funds and other resources held in a purely custodial
capacity (assets equal liabilities). Agency funds typically involve only the receipt, temporary investment, and
remittance of fiduciary resources to individuals, private organizations, or other governments.
Fiduciary funds are reported in the fiduciary fund financial statements. However, because their assets are held in
a trustee or agent capacity and are therefore not available to support District programs, these funds are not
included in the government-wide statements.
b.
Measurement Focus, Basis of Accounting

Government-wide, Proprietary, and Fiduciary Fund Financial Statements: These financial statements are
reported using the economic resources measurement focus. The government-wide and proprietary fund
financial statements are reported using the accrual basis of accounting. Revenues are recorded when earned
and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take
place. Nonexchange transactions, in which the District gives (or receives) value without directly receiving (or
giving) equal value in exchange, include property taxes, grants, entitlements, and donations. On an accrual
basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue
from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements
have been satisfied.
Governmental Fund Financial Statements: Governmental funds are reported using the current financial
resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are
recognized when measurable and available. The District considers all revenues reported in the governmental
funds to be available if the revenues are collected within sixty days after year-end. Revenues from local
sources consist primarily of property taxes. Property tax revenues and revenues received from the State are
recognized under the susceptible-to-accrual concept. Miscellaneous revenues are recorded as revenue when
received in cash because they are generally not measurable until actually received. Investment earnings are
recorded as earned, since they are both measurable and available. Expenditures are recorded when the
related fund liability is incurred, except for principal and interest on general long-term debt, claims and
judgments, and compensated absences, which are recognized as expenditures to the extent they have
matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of
general long-term debt and acquisitions under capital leases are reported as other financing sources.
When the District incurs an expenditure or expense for which both restricted and unrestricted resources may
be used, it is the District's policy to use restricted resources first, then unrestricted resources.
Under GASB Statement No. 20, "Accounting and Financial Reporting for Proprietary Funds and Other
Governmental Entities That Use Proprietary Fund Accounting," all proprietary funds will continue to follow
Financial Accounting Standards Board ("FASB") standards issued on or before November 30, 1989. However,
from that date forward, proprietary funds will have the option of either 1) choosing not to apply future FASB
standards (including amendments of earlier pronouncements), or 2) continuing to follow new FASB
pronouncements unless they conflict with GASB guidance. The District has chosen to apply future FASB
standards.
3.
Financial Statement Amounts

a.

For purposes of the statement of cash flows, highly liquid investments are considered to be cash equivalents if they
have a maturity of three months or less when purchased.
b.
Property Taxes
Property taxes are levied by October 1 on the assessed value listed as of the prior January 1 for all real and
business personal property 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,
26

penalties, and interest ultimately imposed. Property tax revenues are considered available (1) when
they become due or past due and receivable within the current period and (2) when they are expected to be
collected during a 60-day period after the close of the fiscal year.
Allowances for uncollectible tax receivables within the General and Debt Service Funds are based upon
historical experience in collecting property taxes. Uncollectible personal property taxes are periodically
reviewed and written off, but the District is prohibited from writing off real property taxes without specific
statutory authority from the Texas Legislature.
c.
Inventories and Prepaid Items

Inventories of supplies on the balance sheet are stated at weighted average cost, while inventories of food
commodities are recorded at market values supplied by the Texas Department of Human Services. Inventory
items are recorded as expenditures when they are consumed. Supplies are used for almost all functions of
activity, while food commodities are used only in the food service program. Although commodities are received
at no cost, their fair market value is supplied by the Texas Department of Human Services and recorded as
inventory and deferred revenue when received. When requisitioned, inventory and deferred revenue are
relieved, expenditures are charged, and revenue is recognized for an equal amount. Inventories also include
plant maintenance and operation supplies as well as instructional supplies.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid
items.
d.
Capital Assets
Purchased or constructed capital assets are reported at cost or estimated historical cost. Donated fixed assets
are recorded at their estimated fair value at the date of the donation. The cost of normal maintenance and repairs
that do not add to the value of the asset or materially extend assets' lives are not capitalized. A capitalization
threshold of $5,000 is used.
Capital assets are being depreciated using the straight-line method over the following estimated useful lives:
Asset Class
Infrastructure
Buildings
Building Improvements
Vehicles
Office Equipment
Computer Equipment
e.
Estimated
Useful Lives
30
50
20
2-15
3-15
3-15
Receivable and Payable Balances

The District believes that sufficient detail of receivable and payable balances is provided in the financial
statements to avoid the obscuring of significant components by aggregation. Therefore, no disclosure is provided
which disaggregates those balances.
There are no significant receivables which are not scheduled for collection within one year of year end.
f.
Compensated Absences
On retirement or certain employees, the District pays any accrued sick leave in a lump case payment to such
employee.
Interfund Activity
Interfund activity results from loans, services provided, reimbursements or transfers between funds. Loans are
reported as interfund receivables and payables as appropriate and are subject to elimination upon
consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues and
expenditures or expenses. Reimbursements occur when one fund incurs a cost, charges the appropriate
benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated
as transfers. Transfers In and Transfers Out are netted and presented as a single "Transfers" line on the
27

government-wide statement of activities. Similarly, interfund receivables and payables are netted and
presented as a single "Internal Balances" line of the government-wide statement of net assets.
h.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires the use of management's estimates.
i.
Data Control Codes

Data Control Codes appear in the rows and above the columns of certain financial statements. The TEA requires
the display of these codes in the financial statements filed with TEA in order to insure accuracy in building a
statewide database for policy development and funding plans.
j.
The District has adopted GASB 54 as part of its 2010-11 fiscal year reporting. Implementation of GASB 54 is
required for all districts for the fiscal year ending in 2011. The intention of the GASB is to provide a more
structured classification of fund balance and to improve the usefulness of fund balance reporting to the
users of the District's financial statements. The reporting standard establishes a hierarchy for fund balance
classifications and the constraints imposed on teh sues of those resources. GASB 54 provides for two major
types of fund balances which are non-spendable and spendable.
Non-spendable fund balances are balances that cannot be spent becasue they are not expected to be
converted to cash or they are legally or contractually required to remain intact. Examples of this classification
are prepaid items, inventories, and principal (corpus) of an endowment fund. The District has inventories that
are considered non-spendable. The District does not have any prepaid items or non-spendable funds related
to endowments.
In addition to the non-spendable fund balance, GASB 54 has provided a hierarchy of spendable fund
balances, based on a hierarchy of spending constraints.
- Restricted: Fund balances that are constrained by external parties, constitutional provisions, or
enabling legislation.
- Committed: Fund balances that contain self-imposed constraints of the government from its highest
level of decision making authority. The responsibility to commit funds rests with the Board of Trustees.
Committed amounts cannot be used for any other purpose unless the governing board removes those
constraints by taking the same type of formal action.
- Assigned: Fund balances that contain self-imposed constraints of the government to be used for a
particular purpose. The responsibility to assign funds rests with the Superintendent.
- Unassigned: Fund balance of the general fund that is not constrained for any particular purpose.
When an expenditure is incurred for a purpose for which both restricted and unrestricted fund balance is
available, the District consideres restricted funds to have been spent first. When an expenditures is incurred
for which committed, assigned, or unassigned fund balance are available, the District considers amounts to
have been spent first out of commited funds, then assigned funds, and finally unassigned funds.
B.
Compliance and Accountability

1.
Finance-Related Legal and Contractual Provisions

In accordance with GASB Statement No. 38, "Certain Financial Statement Note Disclosures," violations of financerelated legal and contractual provisions, if any, are reported below, along with actions taken to address such violations:
Violation
None reported
2.
Action Taken
Not applicable
Deficit Fund Balance or Fund Net Assets of Individual Funds
28

Following are funds having deficit fund balances or fund net assets at year end, if any, along with remarks which address
such deficits:
Fund Name
752 Print Shop Fund
C.
Deficit Amount
20,870
Remarks
This deficit has been reserved in the fund balance
of the General Fund.
Deposits and Investments

The District's funds are required to be deposited and invested under the terms of a depository contract. The depository
bank deposits for safekeeping and trust 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.
1.
Cash Deposits:
At August 31, 2011, the carrying amount of the District's deposits (cash, certificates of deposit, and interest-bearing
savings accounts included in temporary investments) was $ 331,437,116 and the bank balance was $ 333,516,174.
The District's cash deposits at August 31, 2011 and during the year ended August 31, 2011, were entirely covered
by FDIC insurance or by pledged collateral held by the District's agent bank in the District's name.
In addition, the following is disclosed regarding coverage of combined balances on the date of highest deposit:
2.
a.
Depository: BBVA Compass
b.
The market value of securities pledged as of the date of the highest combined balance on deposit was
$267,747,697.
c.
The highest combined balances of cash, savings and time deposit accounts amounted to $249,128,618 and
occurred during the month of July, 2011.
d.
Total amount of FDIC coverage at the time of the largest combined balance was $250,000.
Investments:
The District is required by Government Code Chapter 2256, The Public Funds Investment Act, to adopt, implement,
and publicize an investment policy. That policy must address the following areas: (1) safety of principal and
liquidity, (2) portfolio diversification, (3) allowable investments, (4) acceptable risk levels, (5) expected rates of
return, (6) maximum allowable stated maturity of portfolio investments, (7) maximum average dollar-weighted
maturity allowed based on the stated maturity date for the portfolio, (8) investment staff quality and capabilities,
and (9) bid solicitation preferences for certificates of deposit.
The Public Funds Investment Act ("Act") requires an annual audit of investment practices. Audit procedures in this
area conducted as a part of the audit of the basic financial statements disclosed that in the areas of investment
practices, management reports and establishment of appropriate policies, the District adhered to the requirements
of the Act. Additionally, investment practices of the District were in accordance with local policies.
The Act determines the types of investments which are allowable for the District. These include, with certain
restrictions, 1) obligations of the U.S. Treasury, U.S. agencies, and the State of Texas, 2) certificates of deposit, 3)
certain municipal securities, 4) securities lending program, 5) repurchase agreements, 6) bankers acceptances, 7)
mutual funds, 8) investment pools, 9) guaranteed investment contracts, and 10) commercial paper.
The District's investments at August 31, 2011 are shown below.
29

Investment or Investment Type

Texpool
Texas Term
Certificates of Deposit
Money Market
Total Investments
3.
Fair Value
111,999,915 $
23,985
69,110,149
149,576,053
330,710,102 $
Cost
111,999,915
23,985
69,110,149
149,576,053
330,710,102
Terms
Maturity
0-3 Months
0-3 Months
0-10 Months
0-3 Months
Percent
of Portfolio
33.866%
0.007%
20.898%
45.229%
100.00%
Analysis of Specific Deposit and Investment Risks

GASB Statement No. 40 requires a determination as to whether the District was exposed to the following specific
investment risks at year end and if so, the reporting of certain related disclosures:
a.
Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The ratings
of securities by nationally recognized rating agencies are designed to give an indication of credit risk. At year end,
the District was not significantly exposed to credit risk.
b.
Custodial Credit Risk

Deposits are exposed to custodial credit risk if they are not covered by depository insurance and the
deposits are uncollateralized, collateralized with securities held by the pledging financial institution, or
collateralized with securities held by the pledging financial institution's trust department or agent but not in the
District's name.
Investment securities are exposed to custodial credit risk if the securities are uninsured, are not registered in
the name of the government, and are held by either the counterparty or the counterparty's trust department
or agent but not in the District's name.
At year end, the District was not exposed to custodial credit risk.
c.
Concentration of Credit Risk

This risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. At year
end, the District was not exposed to concentration of credit risk.
d.
Interest Rate Risk

This is the risk that changes in interest rates will adversely affect the fair value of an investment. At year end,
the District was not exposed to interest rate risk.
e.
Foreign Currency Risk

This is the risk that exchange rates will adversely affect the fair value of an investment. At year end, the
District was not exposed to foreign currency risk.
Investment Accounting Policy

The District's general policy is to report money market investments and short-term participating interest-earning
investment contracts at amortized cost and to report nonparticipating interest-earning investment contracts using a
cost-based measure. However, if the fair value of an investment is significantly affected by the impairment of the credit
standing of the issuer or by other factors, it is reported at fair value. All other investments are reported at fair value unless a
legal contract exists which guarantees a higher value. The term "short-term" refers to investments which have a remaining
term of one year or less at time of purchase. The term "nonparticipating" means that the investment's value does not vary
with market interest rate changes. Nonnegotiable certificates of deposit are examples of nonparticipating interest-earning
investment contracts.
Public Funds Investment Pools
Public funds investment pools in Texas ("Pools") are established under the authority of the Interlocal Cooperation Act,
Chapter 79 of the Texas Government Code, and are subject to the provisions of the Public Funds Investment Act (the "Act"),
Chapter 2256 of the Texas Government Code. In addition to other provisions of the Act designed to promote liquidity and
safety of principal, the Act 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
30

rating of no lower than AAA or AAA-m or an equivalent rating by at least one nationally recognized rating service; and 3)
maintain the market value of its underlying investment portfolio within one half of one percent of the value of its shares.
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 they are 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.
Capital Assets
Capital asset activity for the year ended August 31, 2011, was as follows:
Governmental activities:
Capital assets not being depreciated:
Land
Construction in progress
Total capital assets not being depreciated
Restated
Beginning
Balances
$
Capital assets being depreciated:

Land Improvements
Buildings
Buildings and improvements
Vehicles
Lease Equipment
Library Books
Total capital assets being depreciated
Less accumulated depreciation for:
Land Improvements
Buildings
Buildings and improvements
Vehicles
Total accumulated depreciation
Total capital assets being depreciated, net
Governmental activities capital assets, net
$
15,576,565 $
96,716,264
112,292,829
14,181,940
198,693,655
86,568,870
25,273,886
12,101,016
499,590
-337,318,957
(10,269,548)
(46,391,130)
(13,940,789)
(17,030,235)
(7,411,081)
(95,042,783)
242,276,174
354,569,003 $
Depreciation was charged to functions as follows:

Instruction
School Leadership
Health Services
Food Services
Extracurricular Activities
4,723,921
183,351
228,186
159,863
407,786
292,648
71,432
84,914
150,884
501,662
222,051
184,329
763,927
94,527
31
Increases
-$
63,611,252
63,611,252
66,650
-215,573
1,942,527
67,092
-3,904
2,295,746
(809,415)
(3,995,586)
(1,794,371)
(2,445,202)
(896,188)
(9,940,762)
(7,645,016)
55,966,236 $
Decreases
Ending
Balances
-$
282,223
282,223
15,576,565
160,045,293
175,621,858
---303,859
111,143
--415,002
14,248,590
198,693,655
86,784,443
26,912,554
12,056,965
499,590
3,904
339,199,701
---(291,788)
(111,143)
(402,931)
12,071
294,294 $
(11,078,963)
(50,386,716)
(15,735,160)
(19,183,649)
(8,196,126)
(104,580,614)
234,619,087
410,240,945

Community Services
Facilities Acquisition and Construction
Payments Related to Shared Service Arrangements
Other Intergavernmental
$
E.
37,539
58,451
1,750,213
8,936
15,990
9,940,763
Interfund Balances and Activities

The balances result from a routine lag between the dates that transactions such as year-end payroll accruals, worker's
compensation adjustments and other year-end accruals in the accounting system and payments between the funds are
made. All amounts are scheduled to be repaid within one year.
1.
Due To and From Other Funds

Fund
General Fund:
General Fund
Debt Service Fund
Capital Projects Fund
Internal Service Fund
Permanent Fund
Total General Fund
Special Revenue Fund:
Special Revenue Fund
Permanent Fund
Total Special Revenue Fund
Receivable
$
2,560 $
3,939,683
22,062
261
1,229,908
5,194,474
Payable
2,560
6,728,407
985,861
-230,022
7,946,850
162,480
189
1,275
163,944
162,480
3,741
41,873
208,094
Debt Service Fund:

General Fund
Debt Service Fund
Permanent Fund
Total Debt Service Fund
6,728,407
23,300,958
103,591
30,132,956
3,939,683
23,300,958
300
27,240,941
Capital Projects Fund:

General Fund
Permanent Fund
Total Capital Projects Fund
985,861
22,644,738
-35,662
23,666,261
22,062
22,644,738
36
992
22,667,828
Internal Service Fund:

General Fund
Permanent Fund
Total Internal Service Fund
Permanent Fund
General Fund
Debt Service Fund
Permanent Fund
Total Permanent Fund
--
261
189
3,741
36
7,984
11,761
-172,494
172,944
230,022
41,873
300
992
172,494
930
446,611
1,229,908
1,275
103,591
35,662
7,984
930
1,379,350
32

Total
2.
59,616,007 $
59,616,007
Transfers To and From Other Funds

Transfers to and from other funds at August 31, 2011, consisted of the following:
Transfers FromTransfers To
Amount
General fund General Fund
28,181,926
General fund Debt Service Funds
66,951
Total
F.
Reason
To account for administrative costs allocated to
general fund from other state programs.
Relates to initial payment on QSCB bond.
28,248,877
Long-Term Obligations
The District has entered into a continuing disclosure undertaking to provide Annual Reports and Material Event Notices
to the State Information Depository of Texas, which is the Municipal Advisory Council. This information is required under
SEC Rule 15c2-12 to enable investors to analyze the financial condition and operations of the District.
Unlimited Tax Building Bonds (UTBB)

Description
UTBB, Series 2006
UTBB, Series 2007
UTBB, Series 2007
UTBB, Series 2007/ Accretion
UTBB, Series 2008
Total Bonds Payable
Original
Issue
10/26/06
07/15/07
07/15/07
07/15/07
09/08/08
Final
Maturity
08/01/36
02/01/37
02/02/37
08/01/18
02/01/38
Interest paid on bonded indebtness during the current year was

$
Outstanding
Balance
Issued
Accretion
Description
09/01/2010
Current
Current
UTBB, Series 2006
152,185,000
--UTBB, Series 2007
29,810,000
--UTBB, Series 2007
4,515,000
--1,391,101
-269,378
UTBB, Series 2007/ Accr
UTBB, Series 2008
100,970,000
--UTBB, Series 2010
-104,475,000
-Subtota 288,871,101
104,475,000
269,378
Premium & Discount
12,631,098
4,379,690
-Total Bonds Payable
$301,502,199 $ 108,854,690 $
538,756 $
Cost of Issuance
(4,379,191)
Construction Notes
-1.
Long-Term Obligation Activity
(1,183,443)
26,755,000
---
Original
Issue
167,040,000
29,810,000
5,190,000
724,972
104,725,000
365,489,972 $
Outstanding
Balance
09/01/2010
152,185,000
29,810,000
4,515,000
1,391,101
100,970,000
288,871,101
Retired
Current
6,470,000
-585,000
300,000
1,760,000
2,165,000
11,280,000
619,755
11,899,755 $
Outstanding
Balance
08/31/2011
145,715,000
29,810,000
3,930,000
1,360,479
99,210,000
102,310,000
382,335,479
16,391,033
398,726,512 $
Amounts
Due Within
One Year
6,800,000
-585,000
-1,820,000
1,845,000
11,050,000
626,070
11,676,070
(472,359)
--
(5,090,275)
26,755,000
Coupon
Rate %
5.00-5.125%
4.55-5.500%
4.55-5.500%
4.55-5.500%
3.50-5.000%
18,000,828
(478,100)
1,775,000
Long-term obligations include debt and other long-term liabilities. Changes in long-term obligations for the year ended
August 31, 2011, are as follows:
Amount
Beginning
Ending
Due Within
Balance
Increases
Decreases
Balance
One Year
General Obligation Bonds
$ 287,480,000 $ 104,475,000 $
10,980,000 $ 380,975,000 $
11,050,000
Accretion
1,391,101
269,378
300,000
1,360,479
--
33

Construction Notes Payable
Capital Leases (Restated)
Sick and Vacation Leave
Subtotal
Premium & Discount
Total Governmental Activities $
-413,327
16,585,213
305,869,641
12,631,098
318,500,739 $
26,755,000
--131,499,378
4,379,690
135,879,068 $
-218,151
3,650,643
15,148,794
619,755
15,768,549 $
26,755,000
195,176
12,934,570
422,220,225
16,391,033
438,611,258 $
1,775,000
152,061
-12,977,061
626,070
13,603,131
Accretion
300,000
300,000
320,000
320,000
320,000
715,000
----2,275,000 $
Total
29,446,813
29,456,988
29,459,763
29,472,913
29,474,013
131,787,854
123,614,972
106,591,817
105,005,101
40,585,975
654,896,209
Net
Interest
109,016
109,016
109,016
109,016
109,016
534,443
394,839
1,474,362 $
Total
Debt Service
1,884,016
1,884,016
1,884,016
1,884,016
1,884,016
9,409,443
9,399,839
28,229,362
* Other long-term liabilities

The funds typically used to liquidate other long-term liabilities in the past are as follows:
Liability
Compensated absences
Claims and judgments
2.
Activity Type
Governmental
Governmental
Fund
General
General
Debt Service Requirements

Debt service requirements on long-term debt at August 31, 2011, are as follows:
Year Ending
Principal
August 31,
CIB
CAB
Interest
2012
10,465,000
585,000
18,096,813
2013
10,950,000
585,000
17,621,988
2014
11,455,000
565,000
17,119,763
2015
12,005,000
565,000
16,582,913
2016
12,590,000
565,000
15,999,013
2017-2021
58,605,000
1,065,000
71,402,854
2022-2026
68,445,000
-55,169,972
2027-2031
68,550,000
-38,041,817
2032-2036
85,975,000
-19,030,101
2037-2040
38,005,000
-2,580,975
Subtotal
$ 377,045,000 $
3,930,000 $ 271,646,209 $
CIB
CAB
Current Accretion
Total Bonds Payable $
Year Ending
August 31,
2012
2013
2014
2015
2016
2017-2021
2022-2026
$
377,045,000
3,930,000
1,360,479
382,335,479
Notes
Principal
1,775,000
1,775,000
1,775,000
1,775,000
1,775,000
8,875,000
9,005,000
26,755,000 $
Interest
1,545,760
1,545,760
1,545,760
1,545,760
1,545,760
7,268,426
2,812,554
17,809,780 $
QSCB
Subsidy
(1,436,744)
(1,436,744)
(1,436,744)
(1,436,744)
(1,436,744)
(6,733,983)
(2,417,715)
(16,335,418) $
Commitments under capitalized lease agreements for facilities and equipment provide for minimum future lease
payments as of August 31, 2011, as follows:
Year Ending
August 31,
2012
2013
2014
Total
$
Principal
Interest
152,061
11,599
40,757
610
2,358
50
195,176 $
12,259 $
34

Principal
Interest
-------$
--
Total
163,660
41,367
2,408
207,435

The effective interest rate on capital leases is 5.500%.
G.
Risk Management
The District is exposed to various risks of loss related to torts, theft, damage or destruction of assets, errors and omissions,
injuries to employees, and natural disasters. During fiscal year 2011, the District purchased commercial insurance to
cover general liabilities. There were no significant reductions in coverage in the past fiscal year and there were no
settlements exceeding insurance coverage for each of the past three fiscal years.
H.
Pension Plan
1.
Plan Description
The District contributes to the Teacher Retirement System of Texas (the "System"), a public employee retirement
system. It is a cost-sharing, multiple-employer defined benefit pension plan with one exception: all risks and costs
are not shared by the District, but are the liability of the State of Texas. The System provides service retirement and
disability retirement benefits, and death benefits to plan members and beneficiaries. The System operates primarily
under the provisions of the Texas Constitution and Texas Government Code, Title 8, Subtitle C. The Texas
legislature has the authority to establish or amend benefit provisions. The System issues a publicly available
financial report that includes financial statements and required supplementary information for the District. That
report may be obtained by writing the Teacher Retirement System of Texas, 1000 Red River Street, Austin, TX
78701-2698 or by calling (800) 223-8778.
2.
Funding Policy
Under provisions in State law, plan members are required to contribute 6.4% of their annual covered salary and the
State of Texas contributes an amount equal to 6.644% of the District's covered payroll. The District's employees'
contributions to the System for the years ending August 31, 2011, 2010 and 2009 were $11,549,279, $11,311,401
and $10,727,203, respectively, and were equal to the required contributions for each year. Other contributions
made from federal and private grants and from the District for salaries above the statutory minimum for the years
ending August 31, 2011, 2010 and 2009 were $3,685,956, $3,287,560 and $3,190,393, respectively, and were
equal to the required contributions for each year. The amount contributed by the State on behalf of the District was
$10,025,195 for the year ended August 31, 2011.
I.
Retiree Health Care Plan

1.
Plan Description
The District contributes to the Texas Public School Retired Employees Group Insurance Program (TRS-Care), a
cost-sharing multiple-employer defined benefit postemployment health care plan administered by the Teacher
Retirement System of Texas (TRS). TRS-Care Retired Plan provides health care coverage for certain persons (and
their dependents) who retired under the Teacher Retirement System of Texas. The statutory authority for the
program is Texas Insurance Code, Chapter 1575. Section 1575.052 grants the TRS Board of Trustees the authority
to establish and amend basic and optional group insurance coverage for participants. The TRS issues a publicly
available financial report that includes financial statements and required supplementary information for TRS-Care.
That report may be obtained by visiting the TRS web site at www.trs.state.tx.us, by writing to the
Communications Department of the Teacher Retirement System of Texas at 1000 Red River Street, Austin, Texas
78701, or by calling 1-800-223-8778.
2.
Funding Policy
Contribution requirements are not actuarially determined but are legally established each biennium by the Texas
Legislature. Texas Insurance Code, Sections 1575.202, 203, and 204 establish state, active employee, and public
school contributions, respectively. The State of Texas and active public school employee contribution rates were
35

1.0% and 0.65% of public school payroll, respectively, with school districts contributing a percentage of payroll set
at 0.55% for fiscal years 2011, 2010 and 2009. Per Texas Insurance Code, Chapter 1575, the public school
contribution may not be less than 0.25% or greater than 0.75% of the salary of each active employee of the public
school. For the years ended August 31, 2011, 2010, and 2009, the State's contributions to TRS-Care were
$1,554,352, $1,549,980, and $1,484,058, respectively, the active member contributions were $254,514, $213,377,
and $192,069, respectively, and the District's contributions were $994,718, $969,756, and $921,875, respectively,
which equaled the required contributions each year.
The Medicare Prescription Drug, Improvement, and Modernization Act of 2003, which was effective January 1,
2006, established prescription drug coverage for Medicare beneficiaries known as Medicare Part D. One of the
provisions of Medicare Part D allows for the Texas Public School Retired Employee Group Insurance Program
(TRS-Care) to receive retiree drug subsidy payments from the federal government to offset certain prescription drug
expenditures for eligible TRS-Care participants. For the fiscal years ended August 31, 2011, 2010, and 2009, the
subsidy payments received by TRS-Care on behalf of the District were $446,091, $465,351, and $411,084,
respectively.
J.
Employee Health Care Coverage

During the year ended August 31, 2011, employees of the District were covered by a health insurance plan (the Plan).
The District contributed $343 per month per employee to the Plan. Employees, at their option, authorized payroll
withholdings to pay contributions for dependents. All contributions were paid to a third party administrator, acting on
behalf of the self-funded pool. The Plan was authorized by Article 3.51-2, Texas Insurance Code and was documented
by contractual agreement.
The contract between the District and the third party administrator is renewable September 1, and terms of coverage and
contribution costs are included in the contractual provisions.
In accordance with state statute, the District was protected against unanticipated catastrophic individual or aggregate loss
by stop-loss coverage carried through Blue Cross Blue Shield, a commercial insurer licensed or eligible to do business in
Texas in accordance with the Texas Insurance Code. Stop-loss coverage was in effect for individual claims exceeding
$350,000 and for aggregate loss. Other Districts and/or their employees contributed to the self-insurance pool which was
operated under contractual provisions of Article 4413(32c), Interlocal Cooperation Act. According to the latest actuarial
opinion dated , the unfunded claim benefit obligation included no reported claims that were unpaid and no estimated
claims incurred, but not reported.
K.
Commitments and Contingencies

1.
2.
L.
Contingencies
The District participates in grant programs which are governed by various rules and regulations of the grantor
agencies. Costs charged to the respective grant programs are subject to audit and adjustment by the grantor
agencies; therefore, to the extent that the District has not complied with the rules and regulations governing the
grants, refunds of any money received may be required and the collectibility of any related receivable may be
impaired. In the opinion of the District, there are no significant contingent liabilities relating to compliance with
the rules and regulations governing the respective grants; therefore, no provision has been recorded in the
accompanying basic financial statements for such contingencies.
Litigation
The District is involved in various legal proceedings arising from its operations. The District believes that the
outcome of these proceedings , individually and in the aggregate will have no material effect on the District's
financial position.
Shared Services Arrangements

Shared Services Arrangement - Fiscal Agent
The District is the fiscal agent for a Shared Services Arrangement ("SSA") which provides services to the member districts
that enables students to apply classroom learning to real life experiences in Fund 311 Americorp. In addition to Pharr-San
Juan-Alamo Independent School District, other member districts include Donna ISD, Edcouch-Elsa ISD, Hidalgo ISD, La
36

Joya ISD, Mission CISD, and Valley View ISD.
Pharr-San Juan-Alamo Independent School District, acting as the fiscal agent, receives monies from the granting agencies and
administers the program. The fiscal agent is responsible for employment of personnel, budgeting, accounting and reporting.
According to guidance provided in Texas Education Agency's Resource Guide, Pharr-San Juan-Alamo Independent School
District has accounted for the activities of the SSA in the appropriate Special Revenue Fund. Additionally the SSA is accounted
for using the Accounting and Reporting Treatment Guidance section of the Resource Guide.
Expenditures allocated to the SSA members as of August 31, 2011 are summarized below:
Donna ISD
Edcouch Elsa ISD
Hidalgo ISD
Mission CISD
PSJA ISD
La Joya ISD
Valley View ISD
$
M.
69,855
45,381
25,286
75,488
370,681
26,960
111,107
724,757
Subsequent Events
For the purposes of reporting subsequent events, management has considered events occurring thru January 23, 2012,
the date the report was available to be issued, No subsequent events were noted.
N.
Accumulated Upaid Sick Leave

Reimbursement of leave upon retirement policy changed on September 1, 2010. Pharr-San Juan-Alamo I.S.D. DEC
(LOCAL) policy now reads as follows. Local leave accumulated prior to September 1, 2010, shall be reimbursed at the
employee's daily rate of pay as of the 2009-10 school year for 50 percent of the number of days accumulated. Local
leave accumulated after September 1, 2010, shall be reimbursed at the rate of $100 per day for professional employees
and $50 per day for paraprofessional/auxiliary employees.
On retirement of certain employees, the District pays any accrued sick leave and vacation leave in a lump sum cash
payment to such employee.
A summary of changes in the accumulated sick leave and vacation leave liability
follows:
Balance, August 31, 2010

Deduction for change in amount paid in leave benefit policy
Deductions - Payments to Participants
Balance, August 31, 2011
O.
Sick Leave
16,585,213
(2,412,741)
(1,237,902)
12,934,570
Net Increase (Decrease) in Net Assets

For the fiscal year ended August 31, 2011 the fund balance of $173,387 from Fund 428 High School Allotment
was reclassified from a State Special Revenue Fund to the General Fund 167 High School Allotment.
Prior Period Adjustments
Fund Level
General Fund to void stale checks and to resissue to state for escheat.
Permanent Fund to void stale checks and to resissue to state for escheat.
Internal Service Funds decrease in lease payable
Net Increase (Decrease) in Fund Balance
37
Governmental
Funds
$
23,064
144
(5,550)
17,658

Governmental
Activities
10,494
150,080
160,574
$
178,232
Government Wide Level

Decerease in leases payable obligation which increases net assets
Increase in fixed assets which increase net assets
Net Increase (Decrease) in Net Assets
Total Net Increase (Decrease) in Net Assets
P.
Fund Balance
Governmental Fund Balances for the district are classified in the following hierarchy:
Nonspendable
Nonspendable Amounts that cannot be spent because they are either not in a spendable form or are legally or
contractually required to be maintained intact.
Restricted
Amounts that can be spent only for specific purposes because of constraints imposed by external providers, or
imposed by constitutional provisions or enabling legislation. Federal Laws, Texas Statutes, and local ordinances
require that certain revenues be specifically designated for the purposes of food service, federal and state
programs, debt service, and capital projects.
Committed
Amounts that can only be used for specific purposes pursuant to approval by formal action by the board.
Assigned
For the General Fund, amounts that are appropriated by the Board or the Board designee that are to be sued for
specific purposes. For all other governmental funds, any remaining positive amounts not previously classified as
nonspendable, restricted or committed.
Unassigned fund balances are amounts that are available for any purpose; these amounts can be reported only in the
Districts General Fund. The unassigned amount as of August 31, 2011 is $39,027,028. The Districts unassigned fund
balance will be maintained to provide the District with sufficient working capital and a margin of safety to address local
emergencies without borrowing. In circumstances where expenditure is to be made for a purpose for which amounts are
available in multiple fund balance classifications, the order in which resources will be expended is as follows: restricted,
committed, assigned, and unassigned. The purpose of the Capital Projects Fund is to pay for voter approved capital
projects and the purpose of the Debt Service fund is to account for funds used to pay for the long and short term debt
obligations used to fund the Districts capital projects.
The Districts governmental fund balance designations can be identified as follows:
Fund Balance Description:

Nonspendable
Inventories
Restricted
Food Service
State Programs
Retirement of long-term debt
Capital Acquisition
Texas High School Project
Technology Allotment
Nonmajor Funds
General
Special
Revenue
Debt
Service
Capital
Projects
1,958,483
1,822,128
15,903,556
13,715,794
194,831,341
28,750
225,968
10,674
38

Committed
Construction Projects
Equipment for New Schools
Sick Leave Pay-Off
16,500,000
6,000,000
12,934,570
Assigned
Q.
To Cover Print Shop Deficit

E-Rate
Total Nonspendable, Restricted, Committed,
and Assigned Governmental Fund Balances
20,870
1,854,130
$
Total Nonspendable, Restricted, Committed,

and Assigned Governmental Fund Balances
56,993,737 $
265,392 $
13,715,794 $
194,831,341
265,806,264
Excess of Expenditures over Appropriations

For the year ended August 31, 2011, the District exceeded its budget in two functional areas as depicted below:
General Fund:
Interest on Long Term Debt
148,086
14,391
It should be noted that the budget for debt principal, interest, and other debt service is aggregated in its budget
presentation, rather than delineated separately. Therefore, in actuality, the amount expended for principal, interest,
and other debt service was less than the total amount budgeted for principal, interest and other debt service for
the General Fund.
39
Required Supplementary Information

Required supplementary information includes financial information and disclosures required by the Governmental
Accounting Standards Board but not considered a part of the basic financial statements.
EXHIBIT G-1
Page 1 of 2
GENERAL FUND
BUDGETARY COMPARISON SCHEDULE
1
Data
Control
Codes
5700
5800
5900
5020
0011
0012
0013
Budgeted Amounts
Original
Final
REVENUES:
Local and Intermediate Sources
State Program Revenues
Federal Program Revenues
Total Revenues
EXPENDITURES:
Current:
Instruction & Instructional Related Services:
Instruction
Total Instruction & Instr. Related Services
38,831,693
173,483,828
18,564,612
230,880,133
38,081,494
177,816,273
20,450,182
236,347,949
Variance with
Final Budget
Positive
(Negative)
Actual
$
38,394,296
177,961,468
22,154,495
238,510,259
312,802
145,195
1,704,313
2,162,310
125,548,577
5,082,547
3,092,204
133,723,328
136,025,415
3,447,598
4,321,094
143,794,104
131,280,998
3,595,684
3,666,529
138,543,211
4,744,417
(148,086)
654,565
5,250,893
0021
0023
Instructional and School Leadership:

School Leadership
Total Instructional & School Leadership
3,653,907
12,444,390
16,098,297
3,932,157
10,898,891
14,831,048
3,673,602
9,873,683
13,547,285
258,555
1,025,208
1,283,763
0031
0032
0033
0034
0035
0036
Support Services - Student (Pupil):

Guidance, Counseling and Evaluation Services
Health Services
Student (Pupil) Transportation
Food Services
Total Support Services - Student (Pupil)
7,585,523
1,843,466
2,670,615
5,658,963
18,219,512
8,362,552
44,340,631
4,414,001
1,568,938
1,494,948
5,776,963
18,554,170
8,274,428
40,083,449
3,680,631
525,319
1,230,962
5,515,517
18,278,012
8,117,020
37,347,461
733,370
1,043,619
263,986
261,446
276,158
157,408
2,735,988
0041
Administrative Support Services:

Total Administrative Support Services
6,916,408
6,916,408
6,773,436
6,773,436
6,730,928
6,730,928
42,508
42,508
0051
0052
0053
Support Services - Nonstudent Based:

Total Support Services - Nonstudent Based
22,134,446
3,991,788
1,454,657
27,580,891
29,167,383
4,019,285
1,523,162
34,709,831
27,745,485
3,374,843
1,372,231
32,492,559
1,421,898
644,442
150,931
2,217,272
0061
Ancillary Services:
Community Services
Total Ancillary Services
327,750
327,750
455,997
455,997
362,783
362,783
93,214
93,214
0071
0072
Debt Service:
Principal on Long-Term Debt
Interest on Long-Term Debt
Total Debt Service
924,174
-924,174
917,457
100
917,557
51,347
14,491
65,838
866,110
(14,391)
851,719
0081
Capital Outlay:
Capital Outlay
Total Capital Outlay
13,054
13,054
3,759,973
3,759,973
3,731,572
3,731,572
40
28,401
28,401
EXHIBIT G-1
Page 2 of 2
GENERAL FUND
1
Data
Control
Codes
0093
0095
0095
0099
6030
Budgeted Amounts
Original
Final
Intergovernmental Charges:
Payments to Fiscal Agent/Member Dist.-SSA
Payments to Juvenile Justice Alternative
Education Programs
Total Intergovernmental Charges
Total Expenditures
1100
1100
Excess (Deficiency) of Revenues Over (Under)

Expenditures
7915
8911
7080
1200
Other Financing Sources (Uses):

Transfers In
Transfers Out
Total Other Financing Sources and (Uses)
Net Change in Fund Balance
0100
1300
0100
3000
Fund Balance - Beginning

Fund Balance - Beginning, as Restated
Fund Balance - Ending
Actual
333,600
366,382
326,650
39,732
110,000
512,000
955,600
110,000
592,000
1,068,382
5,609
584,525
916,784
104,391
7,475
151,598
230,880,133
246,393,777
233,738,421
12,655,356
--
(10,045,828)
4,771,838
14,817,666
38,262,680
(38,633,379)
(370,699)
(10,416,527)
28,181,926
(28,248,878)
(66,952)
4,704,886
(10,080,754)
10,384,501
303,747
15,121,413
91,292,814
23,064
91,315,878
96,020,764
---15,121,413
37,761,544
(37,761,544)
---
Variance with
Final Budget
Positive
(Negative)
-----
41
91,292,814
23,064
91,315,878
$ (10,416,526)
Combining Statements and Budget Comparisons

as Supplementary Information
This supplementary information includes financial statements and schedules not required by the Governmental Accounting
Standards Board, nor a part of the basic financial statements, but are presented for purposes of additional analysis.
EXHIBIT H-1

COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
AUGUST 31, 2011
Data
Control
Codes
Special
Revenue
Funds
1110
1240
1250
1260
1290
1000
ASSETS:
Accrued Interest
Other Receivables
Total Assets
2110
2150
2160
2170
2180
2190
2300
2000
LIABILITIES:
Accounts Payable
Due to Other Funds
Deferred Revenue
Total Liabilities
FUND BALANCES:
3450
3490
3000
Total Fund Balances
4000
(19,112,781)
24,338,534
-163,943
(341)
5,389,355
1,352,076
(237)
2,990,106
205,742
41,268
-545,682
5,134,637
Permanent
Funds
$
254,718
-254,718
$
5,389,355
42
Total
Nonmajor
Governmental
Funds (See
Exhibit C-1)
390,137
-111
259,499
106,305
756,052
119,029
--163,956
69,528
392,865
-745,378
--
756,052
1,471,105
(237)
2,990,106
369,698
110,796
392,865
545,682
5,880,015
254,718
10,674
265,392
10,674
10,674
$
(18,722,644)
24,338,534
111
423,442
105,964
6,145,407
6,145,407
EXHIBIT H-2

COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
Data
Control
Codes
Special
Revenue
Funds
REVENUES:
5020
Total Revenues
248,391
8,584,631
60,867,264
69,700,286
Total
Nonmajor
Governmental
Funds (See
Exhibit C-2)
Permanent
Funds
$
-----
248,391
8,584,631
60,867,264
69,700,286
EXPENDITURES:
Current:
Instruction
School Leadership
Health Services
Community Services
Total Expenditures
41,400,974
3,106,679
4,674,773
2,170,155
5,032,861
7,017,058
2,085,859
1,873,059
7,180
179,720
80,567
1,773,884
166,803
9,148
69,578,720
----------------
41,400,974
3,106,679
4,674,773
2,170,155
5,032,861
7,017,058
2,085,859
1,873,059
7,180
179,720
80,567
1,773,884
166,803
9,148
69,578,720

1100
Expenditures
121,566
121,566
---
121,566
121,566

133,152
-133,152
254,718
0011
0012
0013
0021
0023
0031
0032
0033
0041
0051
0052
0061
0071
0072
6030
43
10,530
144
10,674
10,674
143,682
144
143,826
265,392

NONMAJOR SPECIAL REVENUE FUNDS
AUGUST 31, 2011
211
ESEA Title I
Improving
Basic Programs
Data
Control
Codes
1110
1240
1260
1290
1000
ASSETS:
Other Receivables
Total Assets
2110
2150
2160
2170
2180
2300
2000
LIABILITIES:
Accounts Payable
Due to Other Funds
Deferred Revenue
Total Liabilities
FUND BALANCES:
3450
3000
Total Fund Balances
4000
(1,593,249)
2,786,129
162,515
61
1,355,456
269,633
-1,057,467
16,345
12,011
-1,355,456
212
ESEA
Title I, Part C
Migrant Children
$
--$
(814,135)
998,219
-42
184,126
36,773
-144,490
2,698
165
-184,126
222
National and
Community
Service Trust
$
44
184,126
---
IDEA-B
Formula
$
$
1,550
---1,550
---
1,355,456
(12,606)
14,156
--1,550
224
--$
(2,989,549)
3,502,185
--512,636
26,700
-470,376
6,745
7,897
918
512,636
--1,550
512,636
EXHIBIT H-3
Page 1 of 5
225
IDEA-B
Preschool Grant
$
244
Career and Tech
Basic
Grant
(4,973)
6,793
1,820
--$
---
(60,002)
65,108
-9
5,115
98
-1,768
52
4,661
52
304
---
-1,820
5,115
--$
255
ESEA Title II
Training &
Recruiting
--1,820
263
English Language
Acquisition and
Enhancement
(146,703)
261,047
--114,344
--112,735
1,609
--114,344
--5,115
114,344
45
265
21st Century
Community
Learning Centers
(298,596)
474,495
--175,899
49,877
-122,539
1,142
2,341
-175,899
175,899
22
-41,316
1,962
4
-43,304
--$
(298,609)
341,909
-4
43,304
--$
43,304

AUGUST 31, 2011
266
ARRA of 2009
Title XIV State
Fiscal Stabilization
Data
Control
Codes
1110
1240
1260
1290
1000
ASSETS:
Other Receivables
Total Assets
2110
2150
2160
2170
2180
2300
2000
LIABILITIES:
Accounts Payable
Due to Other Funds
Deferred Revenue
Total Liabilities
4,200
MAC
Program
GEAR UP
244,383
138,554
--382,937
13,040
-59,106
9,755
709
--369,188
382,937
--73,061
--$
274
--
FUND BALANCES:
3450
3000
Total Fund Balances
4000
(4,763,524)
4,836,585
--73,061
272
46
382,937
----
26
$
-6,149
--$
(26)
--
750
5,399
--73,061
(145,316)
151,645
-(180)
6,149
276
Title I SIP
Academy
Grant
---
--------
--6,149
--
EXHIBIT H-3
Page 2 of 5
279
Enhancing
Education through
Technology-ARRA
$
280
ESEA Texas
Migrant Interstate
Program
(11,999)
15,669
--3,670
---
(81,522)
86,030
--4,508
4,197
IDEA - Part B
Formula - ARRA
$
---
3,670
----
311
--3,670
4,508
--$
283
--3,670
(3,013,391)
3,709,167
--695,776
528,791
-166,985
---695,776
284
IDEA - Part B
Preschool - ARRA
$
--4,508
695,776
47
285
ESEA Title 1 Part
Improving Basic
Programs - ARRA
(92,943)
92,943
----
--------
--$
--
(868,647)
1,072,192
-168
203,713
129,135
-74,500
-78
-203,713
--$
203,713

AUGUST 31, 2011
286
Title I SIP
Academy Grant
ARRA
Data
Control
Codes
1110
1240
1260
1290
1000
ASSETS:
Other Receivables
Total Assets
2110
2150
2160
2170
2180
2300
2000
LIABILITIES:
Accounts Payable
Due to Other Funds
Deferred Revenue
Total Liabilities
FUND BALANCES:
3450
3000
Total Fund Balances
4000
(166,043)
397,981
--231,938
199,448
-32,127
363
--231,938
287
Education
Jobs
Fund
$
--$
(2,246,652)
2,246,652
----
--------
289
311
Rio Grande Valley
National and
Center for Teaching Community
and Leading Excelle Service Trust
$
48
--
-$
(445)
103,199
---
(223,647)
227,057
--3,410
3,248
---
58,838
311
156
6
--
---
231,938
17,114
86,530
44,050
103,199
--
---
---
103,199
3,410
3,410
EXHIBIT H-3
Page 3 of 5
385
Supplemental
Visually
Impaired
$
927
(927)
----
--------
394
Life
Skills
Program
$
--
1,055
43,199
43,199
469
$
-----
--$
(130,350)
130,468
--118
----
(62,347)
240,450
--178,103
20,145
(237)
87,937
659
118
--
40,849
149,353
118
--1,055
409
Texas High
School
Project
---
42,730
43,199
1,055
404
Student
Success
Initiative
----
------
--$
(16,928)
17,983
--1,055
397
Advanced
Placement
Incentives
--43,199
49
28,750
28,750
118
178,103

AUGUST 31, 2011
411
Data
Control
Codes
Technology
Allotment
1110
1240
1260
1290
1000
ASSETS:
Other Receivables
Total Assets
2110
2150
2160
2170
2180
2300
2000
LIABILITIES:
Accounts Payable
Due to Other Funds
Deferred Revenue
Total Liabilities
240,212
6,905
--247,117
1,025
6,905
156
13,063
225,968
225,968
50
2,500
2,500
2,500
21,149
247,117
2,500
------
--
415
Kindergarten and
Prekindergarten
Grants
----
--
FUND BALANCES:
3450
3000
Total Fund Balances
4000
414
Reading, Math
and Science
Initiative
--$
(835,748)
998,833
--163,085
605
--162,480
--163,085
--2,500
163,085
EXHIBIT H-3
Page 4 of 5
422
TX Math
Instructional
Coaches Pilot
(21,748)
21,748
----
--------
425
Teacher Induction
and Mentoring
Program
$
--$
--
(13,916)
13,867
49
---
--------
426
Texas Educator
Excellence
Award Program
$
--$
--
------
--------
429
State Funded
Special Revenue
Fund
$
--$
--
51
(790,663)
1,339,389
1,164
-549,890
9,613
-540,277
---549,890
480
AT&T
High School
Success
$
549,890
74,981
34,560
----40,421
74,981
--$
74,981
----
--$
74,981
EXHIBIT H-3
Page 5 of 5

AUGUST 31, 2011
482
School
Improvement
Facilitators
Data
Control
Codes
1110
1240
1260
1290
1000
ASSETS:
Other Receivables
Total Assets
2110
2150
2160
2170
2180
2300
2000
LIABILITIES:
Accounts Payable
Due to Other Funds
Deferred Revenue
Total Liabilities
---
484
TX High
School
Project
$
22,404
189
--
22,593
19,442
--26
--
-1,901
4,103
3,125
22,593
--$
--
2,150
52
FUND BALANCES:
3450
3000
Total Fund Balances
4000
(54,669)
58,772
--4,103
Total
Nonmajor
Special
Revenue
Funds (See
Exhibit H-1)
--4,103
52
(19,112,781)
24,338,534
163,943
(341)
5,389,355
1,352,076
(237)
2,990,106
205,742
41,268
545,682
5,134,637
254,718
254,718
22,593
5,389,355

211
ESEA Title I
Improving
Basic Programs
Data
Control
Codes
REVENUES:
5020
Total Revenues
0011
0012
0013
0021
0023
0031
0032
0033
0041
0051
0052
0061
0071
0072
6030
EXPENDITURES:
Current:
Instruction
School Leadership
Health Services
Community Services
Total Expenditures
12,123,238
265,333
985,117
480,396
-419,266
-7,155
-3,515
-1,437,238
--15,721,258

1100
Expenditures
--15,721,258
15,721,258
212
ESEA
Title I, Part C
Migrant Children
$
53
---
IDEA-B
Formula
$
13,593
563
-----------14,156
---
---
--5,812,352
5,812,352
5,022,767
-180,489
41,942
-360,729
206,425
-------5,812,352
--
---
---
---
224
14,156
14,156
928,555
--283,740
-1,855,871
71,873
1,069
-790
-48,256
--3,190,154
---
--3,190,154
3,190,154
222
National and
Community
Service Trust
---
---
EXHIBIT H-4
Page 1 of 4
225
IDEA-B
Preschool Grant
$
---
244
Career and Tech
Basic
Grant
$
28,192
28,192
28,192
28,192
-----
129,476
-31,850
--71,586
------166,803
9,148
408,863
--------------
--408,863
408,863
255
ESEA Title II
Training &
Recruiting
---
1,742,002
-125,891
-----------1,867,893
---
--1,867,893
1,867,893
263
English Language
Acquisition and
Enhancement
---
54
1,037,390
-392,462
148,696
-----117
-9,780
--1,588,445
---
--1,588,445
1,588,445
265
21st Century
Community
Learning Centers
855,353
-540,770
124,119
------75,049
60,000
--1,655,291
---
---
--1,655,291
1,655,291
---
---

266
ARRA of 2009
Title XIV State
Fiscal Stabilization
Data
Control
Codes
5700
5800
5900
5020
REVENUES:
Federal Program Revenues
Total Revenues
0011
0012
0013
0021
0023
0031
0032
0033
0041
0051
0052
0061
0071
0072
6030
EXPENDITURES:
Current:
Instruction
School Leadership
Health Services
Community Services
Total Expenditures
795,193
2,147,693
--4,751,794
3,724,026
1,589,136
1,784,790
-71,525
----14,864,157

1100
Expenditures
--14,864,157
14,864,157
---
MAC
Program
GEAR UP
--143,265
143,265
--406,338
406,338
276
Title I SIP
Academy
Grant
$
73,256
--120,017
120,017
79,805
------143,265
800
--245,341
-----86,941
--406,338
--120,017
-----------120,017
---
---
---
--
63,460
--
55
274
------
---
272
---
---
---
EXHIBIT H-4
Page 2 of 4
279
Enhancing
Education through
Technology-ARRA
$
--198,159
198,159
280
ESEA Texas
Migrant Interstate
Program
$
--427,288
427,288
112,515
-85,644
-----------198,159
---418,521
-----8,767
----427,288
---
---
---
---
283
IDEA - Part B
Formula - ARRA
$
--5,070,001
5,070,001
284
IDEA - Part B
Preschool - ARRA
$
4,667,881
-324,406
--11,732
65,982
-------5,070,001
---
---
56
--120,806
120,806
285
ESEA Title 1 Part
Improving Basic
Programs - ARRA
$
--5,335,869
5,335,869
120,806
-------------120,806
4,061,660
517,264
665,949
5,017
8,301
20,359
-----57,319
--5,335,869
---
---
---
---

286
Title I SIP
Academy Grant
ARRA
Data
Control
Codes
REVENUES:
5020
Total Revenues
0011
0012
0013
0021
0023
0031
0032
0033
0041
0051
0052
0061
0071
0072
6030
EXPENDITURES:
Current:
Instruction
School Leadership
Health Services
Community Services
Total Expenditures
312,402
3,904
187,166
29,602
83,089
21
49,354
-650
-----666,188

1100
Expenditures
--666,188
666,188
287
Education
Jobs
Fund
1,981,340
1,054
--164,637
----94,103
5,518
---2,246,652
---
--2,246,652
2,246,652
289
311
Rio Grande Valley
National and
Center for Teaching Community
and Leading Excelle Service Trust
57
---
---
--724,758
724,758
---------146,989
525,816
--198,942
----------724,758
---
---
60,035
85,672
1,282
---
---
--146,989
146,989
---
---
EXHIBIT H-4
Page 3 of 4
394
Life
Skills
Program
$
--
397
Advanced
Placement
Incentives
$
--
80,984
-80,984
2,670
18,657
470
-----------
2,200
------------
62,327
80,984
2,670
---
---
---
-378,168
-378,168
409
Texas High
School
Project
$
275,246
-100,422
2,500
----------378,168
--
---
---
$
2,670
--
404
Student
Success
Initiative
-1,581,086
-1,581,086
---
58
Technology
Allotment
$
582,456
171,431
-------903
----754,790
28,750
28,750
92,816
92,816
-$
-847,606
-847,606
255,029
-815,316
109,616
17,363
237,354
103,089
-2,546
--12,023
--1,552,336
---
411
28,750
133,152
225,968

415
Kindergarten and
Prekindergarten
Grants
Data
Control
Codes
REVENUES:
5020
Total Revenues
0011
0012
0013
0021
0023
0031
0032
0033
0041
0051
0052
0061
0071
0072
6030
EXPENDITURES:
Current:
Instruction
School Leadership
Health Services
Community Services
Total Expenditures
2,775,841
--122,705
----1,993
-----2,900,539

1100
Expenditures
-2,900,539
-2,900,539
425
Teacher Induction
and Mentoring
Program
---
---
59
-109,827
-109,827
426
Texas Educator
Excellence
Award Program
$
-----
109,035
-792
-----------109,827
--------
---
---
---
----(240)
--240
---
EXHIBIT H-4
Page 4 of 4
429
State Funded
Special Revenue
Fund
$
-2,683,751
-2,683,751
480
AT&T
High School
Success
$
2,672,716
-9,044
-----1,991
-----2,683,751
---
---
137,613
--137,613
482
School
Improvement
Facilitators
$
--110,173
110,173
137,613
-------------137,613
---110,173
----------110,173
---
---
---
---
60
Total
Nonmajor
Special
Revenue
Funds (See
Exhibit H-2)
484
TX High
School
Project
$
110,778
--110,778
42,476
41,400,974
3,106,679
4,674,773
2,170,155
5,032,861
7,017,058
2,085,859
1,873,059
7,180
179,720
80,567
1,773,884
166,803
9,148
69,578,720
-45,840
8,514
6,635
7,313
--------110,778
---
---
248,391
8,584,631
60,867,264
69,700,286
121,566
121,566
133,152
254,718

NONMAJOR PERMANENT FUNDS
AUGUST 31, 2011
Data
Control
Codes
1110
1250
1260
1290
1000
ASSETS:
Accrued Interest
Other Receivables
Total Assets
2110
2170
2180
2190
2000
LIABILITIES:
Accounts Payable
Due to Other Funds
Total Liabilities
837
Escrow I
Escrow II
(57,135)
--59,817
2,682
--
61
41,270
49,715
47,195
----
--
8,445
---
68
546
FUND BALANCES:
3490
3000
Total Fund Balances
4000
836
614
47,195
2,068
2,068
2,520
2,520
2,682
49,715
EXHIBIT H-5
838
840
Trick
O-Treat
Scholarship
Escrow III
$
69,131
---$
69,131
---69,131
--$
15,658
354,038
111
258,749
6,150
619,048
750
(932)
15,476
15,176
15,176
2,703
163,888
68,982
377,689
613,262
300
300
5,786
5,786
--
69,131
69,131
Total
Nonmajor
Permanent
Funds (See
Exhibit H-1)
841
General
Agency
& Trust
----
15,476
62
619,048
390,137
111
259,499
106,305
756,052
119,029
163,956
69,528
392,865
745,378
10,674
10,674
$
756,052

NONMAJOR PERMANENT FUNDS
Data
Control
Codes
REVENUES:
5020
Total Revenues
6030
EXPENDITURES:
Total Expenditures

1100
Expenditures
63
836
837
Escrow I
Escrow II
--
--
--
--
--
-1,924
144
2,068
2,068
2,520
-$
2,520
2,520
EXHIBIT H-6
840
Trick
O-Treat
Scholarship
$
--
--
--
--
--
--
--
--
--
300
5,786
-$
Total
Nonmajor
Permanent
Funds (See
Exhibit H-2)
841
General
Agency
& Trust
-300
300
5,786
5,786
64
10,530
144
10,674
10,674

COMBINING STATEMENT OF NET ASSETS
AUGUST 31, 2011
752
Print
Shop
Fund
Data
Control
Codes
1110
1120
1250
1260
1290
1310
ASSETS:
Current Assets:
Investments
Receivables:
Accrued Interest
Other Receivables (net)
Inventories, at Cost
2000
Insurance
Fund
---
Noncurrent Assets:
Capital Assets:
1530
Furniture and Equipment
1570
Accumulated Depreciation
1000
Total Assets
2110
2160
2170
(20,365)
--
753
LIABILITIES:
Accounts Payable
Due to Other Funds
Total Liabilities
NET ASSETS:
3800 Restricted Net Assets
3000
Total Net Assets
65
18,563,103
--
22,976
2,245
4,856
25,905
78
140,880
-18,729,966
62,050
(62,049)
1
4,857
---18,729,966
18,767
6,702
258
25,727
25,727
22,490
(20,870)
376,079
-3,749
379,828
379,828
2,199,018
18,350,138
EXHIBIT H-7
771
772
Copier
Fund
Workmen's
Compensation
229,534
--
---
--
21,870,226
142,000
6,655
-236,189
-3,276,172
25,905
11,763
195,044
2,245
22,247,183
27,009
(18,004)
9,005
245,194
---3,276,172
89,059
(80,053)
9,006
22,256,189
1,189
11,685
24,533
--1,189
1,189
3,097,954
142,000
Total
Internal
Service
Funds (See
Exhibit D-1)
261,853
244,005
615
-168,937
169,552
169,552
7,538,593
3,106,620
66
396,650
6,702
172,944
576,296
576,296
10,021,954
21,679,893

COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN FUND NET ASSETS
752
Print
Shop
Fund
Data
Control
Codes
OPERATING REVENUES:
5020
Total Revenues
6100
6200
6300
6400
6030
1300
OPERATING EXPENSES:
Payroll Costs
Professional and Contracted Services
Supplies and Materials
Other Operating Costs
Total Expenses
505,806
505,806
753
Insurance
Fund
$
208,672
180,519
96,362
-485,553
-22,284,931
6,484
9
22,291,424
20,253
0100 Total Net Assets - Beginning

Total Net Assets - Beginning, as Restated
3300 Total Net Assets - Ending
67
(46,672)
5,549
(41,123)
(20,870)
22,050,608
22,050,608
(240,816)
18,590,954
-18,590,954
18,350,138
EXHIBIT H-8
771
772
Copier
Fund
Workmen's
Compensation
25,581
25,581
--
-34,326
(8,745)
1,020
2,367,862
2,584
-2,371,466
30,429
3,897
252,750
-252,750
244,005
2,554,563
2,554,563
Total
Internal
Service
Funds (See
Exhibit D-2)
209,692
24,863,741
109,327
9
25,182,769
183,097
2,923,523
-2,923,523
3,106,620
68
25,136,558
25,136,558
(46,211)
21,720,555
5,549
21,726,104
21,679,893

COMBINING STATEMENT OF CASH FLOWS
ALL INTERNAL SERVICE FUNDS
752
Print
Shop
Fund
Cash Flows from Operating Activities:
Cash Received from Customers
Cash Receipts (Payments) for Quasi-external
Operating Transactions with Other Funds
Cash Payments to Employees
Cash Payments to Suppliers for Goods and Services
Cash Payments for Grants to Other Organizations
Other Operating Cash Receipts (Payments)
Cash Flows from Investing Activities:

Interest and Dividends on Investments
Net Cash Provided (Used) for Investing Activities
Copier
Fund
--
-19,025
-(34,968)
--(15,943)
-12,151
---
(448)
12,151
--
---
---
---
--
--
--
---
---
---
20,253
(147,455)
18,710,558
18,563,103
(15,943)
245,477
229,534
(240,816)
(8,745)
---
69
Insurance
Fund
(448)
4,123
(24,488)
(20,365)
771
22,095,163
-(22,254,769)
--(159,606)
--
Cash Flows from Capital and Related Financing Activities:

Proceeds from Issuance of Long-term Debt
Contributed Capital
Net Cash Provided (Used) for Capital and
Related Financing Activities
Reconciliation of Operating Income to Net Cash

Provided by Operating Activities:
Operating Income (Loss)
Adjustments to Reconcile Operating Income to Net
Cash Provided by Operating Activities
Depreciation
Provision for Uncollectible Accounts
Change in Assets and Liabilities:
Decrease (Increase) in Receivables
Decrease (Increase) in Inventories
Increase (Decrease) in Accounts Payable
Increase (Decrease) in Payroll Deductions
Increase (Decrease) in Accrued Wages Payable
Increase (Decrease) in Unearned Revenue
Total Adjustments
483,223
(201,969)
(276,683)
--4,571
Cash Flows from Non-capital Financing Activities:

Proceeds (Payments) from (for) Borrowings
Transfers From (To) Other Funds
Net Cash Provided (Used) by Non-capital
Financing Activities
Net Increase (Decrease) in Cash and Cash Equivalents

Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
--
753
(22,582)
-198
-6,702
-(15,682)
4,571
---
--44,555
(6,556)
--
-36,655
(642)
---$
81,210
(159,606)
---$
(7,198)
(15,943)
EXHIBIT H-9
Total
Internal
Service
Funds (See
Exhibit D-3)
772
Workmen's
Compensation
$
--
2,605,634
(1,142)
(2,369,831)
--234,661
-25,203,045
(203,111)
(24,936,251)
--63,683
-493,176
-504,879
493,176
504,879
---
---
--
--
---
---
727,837
2,370,117
3,097,954
183,097
---
568,562
21,301,664
21,870,226
(46,211)
--51,071
66,488
--
-615
36,826
--
-(122)
-$
51,564
234,661
6,580
-109,894
63,683
70
Other Supplementary Information

This section includes financial information and disclosures not required by the Governmental Accounting Standards
Board and not considered a part of the basic financial statements. It may, however, include information which is
required by other entities.

SCHEDULE OF DELINQUENT TAXES RECEIVABLE
1
Year Ended
August 31
2002 and Prior Years
3
Assessed/Appraised
Value For School
Tax Purposes
Tax Rates
Maintenance
$
Various
Debt Service
$
Various
Various
2003
1.50
.1221
1,667,742,473
2004
1.50
.1115
1,923,357,139
2005
1.50
.1135
2,190,596,749
2006
1.50
.1134
2,371,994,976
2007
1.37
.149
2,628,903,008
2008
1.04
.1713
2,891,912,692
2009
1.04
.231
2,308,797,178
2010
1.04
.2613
3,460,753,968
2011 (School Year Under Audit)
1.04
.3192
3,428,758,885
1000 Totals
9000 - Portion of Row 1000 for Taxes Paid into Tax Increment Zone Under Chapter 311, Tax Code
71
EXHIBIT J-1
10
Beginning
Balance
9/1/10
$
1,414,630
20
Current
Year's
Total Levy
$
32
Maintenance
Collections
Debt Service
Collections
83,120
14,576
40
Entire
Year's
Adjustments
$
50
Ending
Balance
8/31/11
(32,582)
1,284,352
275,649
--
22,706
1,849
(4,887)
246,207
353,952
--
32,568
2,421
(5,312)
313,651
459,499
--
48,970
3,709
(8,339)
398,481
582,690
--
76,255
5,775
(44,352)
456,308
815,001
--
138,765
15,128
(95,747)
565,361
918,745
--
171,043
28,169
(14,890)
704,643
1,693,718
--
435,175
96,629
(37,667)
1,124,247
3,508,764
--
1,391,042
349,501
(129,774)
1,638,447
32,626,687
10,011,430
(139,789)
3,115,972
-$
--
31
10,022,649
--
45,893,878
$
$
45,893,878
--
$
$
35,026,331
--
10,529,187
--
(513,339)
9,847,670
--
--
Less: Allowance for Uncollectible Taxes

Total
72
787,814
9,059,856
EXHIBIT J-2
SCHEDULE OF EXPENDITURES FOR COMPUTATION OF INDIRECT COST FOR 2012-2013

GENERAL AND SPECIAL REVENUE FUNDS
FUNCTION 41 AND RELATED FUNCTION 53 - GENERAL ADMINISTRATION AND FUNCTION 99 - APPRAISAL DISTRICT COST
Account
Account
Number
Name
611X-6146 Payroll Costs
$
Fringe Benefits (Unused Leave
for Separating Employees in
6149
Function 41 and Related 53)
Fringe Benefits (Unused Leave
for Separating Employees in
all Functions except Function
6149
41 and Related 53)
6211
Legal Services
6212
Audit Services
6213
Tax Appraisal and Collection
621X
Other Prof. Services
6220
Tuition and Transfer Payments
6230
Education Service Centers
6240
Contr. Maint. and Repair
6250
Utilities
6260
Rentals
6290
Miscellaneous Contr.
6310
Operational Supplies, Materials
6320
Textbooks and Reading
6330
Testing Materials
63XX
Other Supplies, Materials
6410
Travel, Subsistence, Stipends
6420
Ins. and Bonding Costs
6430
Election Costs
6490
Miscellaneous Operating
6500
Debt Service
6600
Capital Outlay
Total
1
2
(702)
(703)
School
Tax
Board
Collection
39,892 $
-$
--
--
3
4
(701)
(750)
Supt's
Indirect
Office
Cost
559,568 $ 4,158,728 $
--
-320,995
-------2,811
712
---12,881
41,640
118,569
57,205
135,910
---
---584,525
------------------
-----
730,615 $
584,525 $
825
----5,027
406
-878
-16,432
22,708
--4,606
---
--
--44,084
-37,617
-43,679
--82,584
198,584
258
3,230
50
191,434
38,114
3,880
-93,053
---
610,450 $ 4,895,295 $
5
(720)
Direct
Cost
566,460 $
6
(Other)
Misc.
118,382 $
Total
5,443,030
--
--
--
-------
----------
664
863
28,200
-320,995
44,084
584,525
38,442
-43,779
135,632
-96,817
201,496
258
4,108
50
240,208
112,749
122,449
57,205
234,767
863
28,200
170,569 $
7,709,657
303,317,141
100
135,632
-(775)
1,635
---11,410
3,207
--534
---
7,170
159
---8,051
7,080
---
718,203 $
Total Expenditures for General and Special Revenue Funds
(9)
LESS: Deductions of Unallowable Costs

FISCAL YEAR
Total Capital Outlay (6600)
Total Debt & Lease (6500)
Plant Maintenance (Function 51, 6100-6400)
Food (Function 35, 6341 and 6499)
Stipends (6413)
Column 4 (above) - Total Indirect Cost
(10)
(11)
(12)
(13)
(14)
$
$
$
$
$
$
5,742,059
242,652
27,807,951
9,505,652
1,870
4,895,295
Subtotal
48,195,479
Net Allowed Direct Cost

CUMULATIVE
Total Cost of Buildings Before Depreciation (1520)
Historical Cost of Buildings over 50 years old
Amount of Federal Money in Building Cost (Net of #16)
Total Cost of Furniture & Equipment Before Depreciation (1530 & 1540)
Historical Cost of Furniture & Equipment over 16 years old
Amount of Federal Money in Furniture & Equipment (Net of #19)
(15)
(16)
(17)
(18)
(19)
(20)
255,121,662
285,478,098
--39,474,659
---
(8) Note A - $387,024 in Function 53 expenditures and $584,525 in Function 99 expenditures are included in this report on administrative costs.
73
EXHIBIT J-3
INTEREST & BONDED

1
Data
Control
Codes
5700
5800
5020
0071
0072
0073
6030
Budgeted Amounts
Original
Final
REVENUES:
Total Revenues
EXPENDITURES:
Debt Service:
Principal on Long-Term Debt
Interest on Long-Term Debt
Total Debt Service
Total Expenditures
7,518,434
15,976,673
23,495,107
10,908,800
20,151,159
31,059,959
Variance with
Final Budget
Positive
(Negative)
Actual
$
11,175,176
20,135,502
31,310,678
266,376
(15,657)
250,719
23,495,107
--23,495,107
10,980,000
18,351,374
40,200
29,371,574
10,980,000
18,348,977
35,630
29,364,607
--
23,495,107
29,371,574
29,364,607
6,967
2,397
4,570
6,967
1100
1100
Excess (Deficiency) of Revenues Over (Under)

Expenditures
--
1,688,385
1,946,071
257,686
7915
7080
1200
Other Financing Sources (Uses):

Transfers In
Total Other Financing Sources and (Uses)
Net Change in Fund Balance
----
67,000
67,000
1,755,385
66,951
66,951
2,013,022
(49)
(49)
257,637
0100
3000
Fund Balance - Beginning

Fund Balance - Ending
---
74
11,702,772
13,458,157
11,702,772
13,715,794
-257,637

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
A. Summary of Auditor's Results

1.
Financial Statements
Type of auditor's report issued:
Unqualified
Internal control over financial reporting:

One or more material weaknesses identified?
Yes
No
One or more significant deficiencies identified that

are not considered to be material weaknesses?
Yes
None Reported
Yes
No
One or more material weaknesses identified?
Yes
No
One or more significant deficiencies identified that

are not considered to be material weaknesses?
Yes
None Reported
No
Noncompliance material to financial

statements noted?
2.
Federal Awards
Internal control over major programs:
Type of auditor's report issued on compliance for

major programs:
Any audit findings disclosed that are required
to be reported in accordance with section 510(a)
of OMB Circular A-133?
Unqualified
Yes
Identification of major programs:

CFDA Number(s)
Name of Federal Program or Cluster
84.310A / 84.389A
Title I, Part A Cluster

Title I - School Improvement Programs
ESEA Title I Part A - Improving Basic Programs
84.377A / 84.388
School Improvement Grants Cluster

Title I - SIP Academy Grant
ARRA - Title I - SIP Academy Grant
84.027 / 84.173
84.931 / 84.392
Special Education Cluster (IDEA)

IDEA-B Formula
IDEA-B Preschool
ARRA - IDEA - Part B Formula
ARRA - IDEA - Part B Preschool
84.394A
ARRA of 2009 Title XIV State Fiscal Stabilization Fund
79

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
10.533 / 10.555
Child Nutrition Cluster

School Breakfast Program
National School Lunch Program
Dollar threshold used to distinguish between

type A and type B programs:
$2,163,482
Auditee qualified as low-risk auditee?
Yes
B. Financial Statement Findings

NONE
C. Federal Award Findings and Questioned Costs
NONE
80
No

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Finding/Recommendation
Current Status
81
Management's Explanation
If Not Implemented

CORRECTIVE ACTION PLAN
NONE
82
EXHIBIT K-1
Page 1 of 2
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

(1)
Federal Grantor/
Pass-Through Grantor/
Program Title
U. S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Passed Through State Department of Education:
Medicaid Administrative Claiming Program - MAC *
Total U. S. Department of Health and Human Services
(2)
(2A)
(3)
Federal
CFDA
Number
Pass-Through
Entity Identifying
Number
Federal
Expenditures
93.778
U. S. DEPARTMENT OF EDUCATION
Title I - School Improvement Programs *
ESEA Title I Part A - Improving Basic Programs *
Total CFDA Number 84.010A
84.010A
84.010A
84.010A
84.010A
ESEA Title I Part C - Education of Migratory Children

ESEA Title I Part C - Education of Migratory Children
Total CFDA Number 84.011
ESEA Texas Migrant Interstate Program
108,909
1610104108909002
0610101108909
1610101108909
2610101108909
84.011
84.011
1615001108909
2615001108909
84.011A
16150037110003
IDEA-B Formula *
IDEA-B Formula *
84.027
84.027
Impact Aid - P.L. 81.874 *
84.041
108-909
Career and Technical - Basic Grant

Career and Technical - Basic Grant
84.048
84.048
1420006108909
2420006108909
IDEA-B Preschool *
IDEA-B Preschool *
84.173
84.173
16610011089096610
26610011089096610
Title IV Part B21st Century Community Learning Centers

Title IV Part B21st Century Community Learning Centers
84.287
84.287
06950137110045
26950177110045
GEAR UP
84.334S
16600011089096600
26600011089096600
108,909
143,265
143,265
367,996
26,143
14,533,585
793,534
15,721,258
3,046,092
144,062
3,190,154
427,288
5,345,248
467,104
5,812,352
-391,768
17,095
408,863
26,424
1,768
28,192
1,612,181
43,110
1,655,291
406,338
Title III Part A English Language Acquisition and Language Enhance 84.365A
0671001108909
1671001108909
2671001108909
4,632
1,466,527
117,286
1,588,445
ESEA Title II Part A - Teacher & Principal Training & Recruiting

ESEA Title II Part A - Teacher & Principal Training & Recruiting
1694501108909
2694501108909
1,755,158
112,735
1,867,893
84.367A
84.367A
Title I SIP Academy Grant *
84.377
610701108909002
--
Title I SIP Academy Grant *
84.377A
0610701108909002
120,017
83
EXHIBIT K-1
Page 2 of 2
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

(1)
(2)
(2A)
(3)
Federal
CFDA
Number
Pass-Through
Entity Identifying
Number
Federal
Expenditures
ARRA - Title II Part D Subpart 1-Enhancing Education Through Tech 84.386

ARRA - Title II Part D Subpart 1-Enhancing Education Through Tech 84.386
0553001108909
553001108909
ARRA - Title I SIP Academy Grant *
84.388
5520017110053
ARRA - Title I SIP - PSJA Memorial *

ARRA - ESEA, Title I, Part A - Improving Basic Programs *
ARRA - ESEA, Title I, Part A - Improving Basic Programs *
84.389
84.389
84.389
0551004108909002
0551001108909
1551004108909002
147
5,220,294
115,428
5,335,869
ARRA - IDEA-Part B Formula *

ARRA - IDEA-Part B Formula *
84.391
84.391
0554001108909
554001108909
5,070,001
-5,070,001
ARRA - IDEA Part B, Preschool *

ARRA - IDEA Part B, Preschool *
84.392
84.392
0555001108909
555001108909
120,806
-120,806
ARRA of 2009 Title XIV State Fiscal Stabilization Fund *

ARRA of 2009 Title XIV State Fiscal Stabilization Fund *
84.394
84.394
0557001108909
1557001108909
71,525
14,792,632
14,864,157
84.396C
84.396C
U396C100748
U396C100748
84.410
1550101108909
12.00
108-909
188,283
188,283
10.553
10.555
10.565
108-909
108-909
108-909
5,138,876
10,759,528
1,142,110
17,040,513
17,040,513
Federal Grantor/
Pass-Through Grantor/
Program Title
Rio Grande Valley Center for Teaching and Leading Exce

Rio Grande Valley Center for Teaching and Leading Exce
Total CFDA Number 84.396C
Education Jobs Fund
Total Passed Through State Department of Education
Total U. S. Department of Education
U. S. DEPARTMENT OF DEFENSE
JROTC
Total U. S. Department of Defense
U. S. DEPARTMENT OF AGRICULTURE
School Breakfast Program *
National School Lunch Program *
Commodity Supplemental Food Program
Total U. S. Department of Agriculture
CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

National & Community Service Trust Act - Learn & Serve
94.004
SSA National and Community Service Trust Act - Learn & Serve Ame 94.006
Total Corporation for National and Community Service
TOTAL EXPENDITURES OF FEDERAL AWARDS
* Indicates clustered program under OMB Circular A-133 Compliance Supplement
The accompanying notes are an integral part of this schedule.
84
198,159
-198,159
666,188
125,921
21,068
146,989
2,246,652
59,874,912
59,874,912
09KSWTX001
06AFHTX0010068
14,156
724,758
738,914
738,914
77,985,887

NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Basis of Presentation
The accompanying schedule of expenditures of federal awards includes the federal grant activity of
Pharr-San Juan-Alamo Independent School District and is presented on the modified accrual basis of
accounting. The information in this schedule is presented in accordance with the requirements of OMB
Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Therefore,
some amounts presented in this schedule may differ from amounts presented in, or used in the preparation
of, the general purpose financial statements.
85
EXHIBIT K-2

SCHEDULE OF REQUIRED RESPONSES TO SELECTED SCHOOL FIRST INDICATORS
AS OF AUGUST 31, 2011
Data
Control
Codes
SF2
SF4
SF5
SF9
SF10
Responses
Were there any disclosures in the Annual Financial Report and/or
other sources of information concerning default on bonded
indebtedness obligations?
No
Did the district receive a clean audit? - Was there an unqualified

opinion in the Annual Financial Report?
Yes
Did the Annual Financial Report disclose any instances of material

weaknesses in internal controls?
No
Was there any disclosure in the Annual Financial Report of material

noncompliance?
No
What was the total accumulated accretion on capital appreciation

bonds included in the government-wide financial statements at
fiscal year-end?
86
1,360,479

2010-2011 San Juan Alamo PSJA Audit Final

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PHARR-SAN JUAN-ALAMO

INDEPENDENT SCHOOL DISTRICT

This Page Le Intenonally Blank

Pharr-San Juan-Alamo Independent School District

Basic Financial Statements

Required Supplementary Information:

Pharr-San Juan-Alamo Independent School District

Internal Service Funds:

PHARR-SAN JUAN-ALAMO INDEPENDENT SCHOOL DISTRICT

November 2010 - November 2011

Mr. Bobby Rodriguez

Mr. Ben Garza, Jr.

Mr. Ronnie Cantu

Mrs. Ramona Barron

Mr. Pedro Garcia

Mr. Gilbert Herrera

November 2011 - November 2012

Mr. Bobby Rodriguez

Mr. Ronnie Cantu

Mr. Reymundo Gonzalez

Mrs. Ramona Barron

Mr. Pedro Garcia

Mr. Gilbert Herrera

Pharr-San Juan-Alamo Independent School District

disapproved for the year ended August 31, 2011,

at a meeting of the board of trustees of such school district on the

Signature of Board Secretary

Signature of Board President

This Page Le Intenonally Blank

This Page Le Intenonally Blank

Management's Discussion and Analysis

MANAGEMENTS DISCUSSION AND ANALYSIS

OVERVIEW OF THE FINANCIAL STATEMENTS

The first two statements are government-wide financial statements

The remaining statements are fund financial statements that focus

The governmental funds statements tell how general government

Proprietary fund statements offer short and long-term financial

Fiduciary fund statements provide information about the financial

Figure A-1F, Required Components of the

Figure A-2 summarizes the major

Statement of net assets

Statement of net assets

Accrual accounting and

Accrual accounting and

Accrual accounting and

All assets and liabilities,

Revenues for which cash

All revenues and expenses

All assets and liabilities,

Statement of cash flows

All assets and liabilities,

All revenues and

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

The District has the following kinds of funds:

Nonspendable Fund Balance

Changes in net assets. Th

Invesstment earningss continued to decrease due to the decrease in interest ratees.

Propeerty taxes increeased due to in

Figuree A-3 Distrrict Sources of Reveenue for F

Increase (Decrease) in Net Assets

FINANCIAL ANALYSIS OF THE DISTRICTS FUNDS

$1,958,482 is recorded as nonspendable for inventories and deferred expenditures;

$16,500,00 is recorded as committed for Construction;

$12,934,570 is recorded as committed for sick leave payoff;