agenda regular board meeting katy independent … 22, 2013... · 2013. 9. 5. · embroidery to...

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AGENDA

REGULAR BOARD MEETING KATY INDEPENDENT SCHOOL DISTRICT

BOARD OF TRUSTEES EDUCATION SUPPORT COMPLEX, BOARD ROOM

6301 S. STADIUM LANE, KATY, TEXAS JANUARY 22, 2013

CLOSED MEETING 6:00 P.M.OPEN MEETING

6:30 P.M.

I. Call to Order

Upon announcement by the presiding officer that a quorum is present, the meeting will be called to order. II. Closed Meeting

Closed meeting will be held for the purposes authorized by the Texas Open Meetings Act, Texas Government Code Section 551.001 et seq. concerning any and all purposes permitted by the Act, including but not limited to the following sections and purposes:

Texas Government Code Section

551.071 For the purpose of a private consultation with the Board's attorney on any or all subjects or matters authorized by law. 1. Consultation with an attorney on matters permitted by law.

551.074 For the purpose of considering the appointment, employment, evaluation, reassignment, duties, discipline or dismissal of a public officer or employee or to hear complaints or charges against a public officer or employee.

2. Consider Board approval of hiring and accepting resignations of professional contractual personnel.

3. Consider Board duties.

III. Reconvene from Closed Meeting

The Board will reconvene from Closed Meeting. The presiding officer will verify that the meeting has been duly called and notice of the meeting has been posted for the time and manner required by law.


IV. Pledge of Allegiance

Cayden Conrad 5th grader Kilpatrick Elementary

V. Recognitions

1. Katy High School Football – State Champions

2. National High School Coach of the Year

3. City of Katy Proclamation

4. West Memorial Jr. High Advanced Women’s Choir

5. Bear Creek Elementary

Board Agenda January 22, 2013

2

6. Mayde Creek Elementary Pep Squad

7. Morton Ranch HS Maverick Belles

8. Parent Support Group Leaders

9. Mayde Creek High School Fiddlers

10. Former Board Members

VI. Open Forum

VII. Consent Agenda

1. Consider Board approval of a proposal for promotional apparel.

2. Consider Board approval of a proposal for promotional items other than apparel.

3. Consider Board approval of the District Improvement Plan.

4. Consider Board approval of the Annual Financial Audit Report.

5. Consider Board approval of the January 2013 budget amendments.

6. Consider Board approval of the district’s December 2012 financial statements.

7. Consider Board approval of the district’s December 2012 check registers.

8. Consider Board approval of the district’s December 2012 tax report.

9. Consider Board approval of the minutes for the Board meetings held in December 2012.

VIII. Action

1. Consider Board approval of a Proclamation for National School Counselors Week.

2. Consider Board approval of a Proclamation for National PTA Founders Day.

3. Consider Board approval of the Trustee Election Orders.

4. Consider Board approval of naming High School 7.

IX. Information Items

1. Reports Donated Items for Katy Independent School District Quarterly Investment Report

2. Future Meetings Monday, February 18, 2013 – Board Work Study Monday, February 25, 2013 – Regular Board Meeting

X. Adjournment

Kab, lndepertdent Sdtoo! Di.ÿtricl Post Office Box 159 • Katy, Texas 77492-0159

TO:

FROM:

SUBJECT:

DATE:

Board of Trustees

Alton L. Frailey, Superintendent

Proposal for Promotional Apparel

January 22, 2013

The contract for Promotional Apparel will provide a list of vendors from whom theschools and departments can purchase textile items that range from special designembroidery to custom screen printing. A review of a sampling of 75 purchase ordersfrom 2011/2012 indicated the funding source for almost all of the purchases was activityfunds, and not the General Fund. The majority of purchases were for T-shirts, as wellas hoodies, wind suits, and shorts, for students, student clubs, and staff. Theevaluation criteria for the vendors submitting proposals included availability of discountpricing, past history with Katy ISD, and extent to which the products provided will meetthe needs of the department or school.

After review by the Purchasing Department, it was determined that all vendorssubmitting met the District's requirements to be a vendor to the District. However,those vendors which did not note up front that discount pricing was available to theDistrict were not scored as high as those that did. Additionally, this is a contract wherethe proximity of the vendor to the District's schools and departments can impact thepricing and delivery of such items. Therefore, all information presented to the schoolswill note whether or not the vendor is considered local.

The recommendation is to award to all vendors creating an approved vendor list fromwhich the schools can shop the items needed. All schools and departments will beencouraged to obtain competitive quotes from at least three vendors on the list, with atleast one of those a local vendor, and purchase from the one offering Best Value.

This is a one year contract with an option for two additional one-year renewals.

Impact Statement: The annual expenditure over the next twelve months is estimated tobe $664,000 with expenditures generated on an as-needed basis. District expenditureswill be funded from the General Operating Fund, Special Revenue Funds, or StudentActivity Funds.

Support of District Focus:

Safe and Orderly Working and Learning Environment, Effective and Efficient Operations

Proposal for Promotional ApparelJanuary 22, 2013

Page 2 of 2

It is recommended that the Board award the contract for Promotional Apparel to thefollowing vendors:

Accent Screen PrintingAd-Wear & Specialty ofTexas, Inc.

American PromoPrintThe Augusta GroupAuthenticPromotions.comBarcelona Sporting GoodsBest Embroidery Servicesof TexasBlue Moose TeesBrammer's AthleticWearhouseC & R Development

Empire PrintingEducational Products, Inc.

Fine Custom DesignFresh Prints of HoustonGandy InkGot 2 Bling ItGTM Sportswear

OSO PromotionsParamount Promotions

Houston Graduation CenterImpress Me! Artwear &PromotionsInkblots

Clever Items International PromotionalIdeasJ. Harding & Co.Kaeser & BlairLeonetti GraphicsLids Team SportsThe Main EventNeff Motivation, Inc.

Crestline SpecialtiesCustom Imprint AmericaCustom Sportswear Inc.Dostal's Corporate SolutionEagle Group SportswearEmbroidMe-Katy

Pepwear, LLCPony Xpress Printing LLCPositive PromotionsProject PromotionsThe Promo Dude

Promo Pros, Inc.

Promotional Edge

Purple Pear PromotionalProductsSchevett Marketing Plus

School Tee FactoryTees NowThe Texan GroupWorld of Promotions

Respectfully submitted,

Alton L. FraileySÿerintendent

G. E. McMeans, Jr.

Assistant Supt for Support Services

Regina M. StephensonDirector of Purchasing

?Tho ts J. GunnellChief Operations Officer

Bid Opening Date 11-27-2012

Vendor Name VIDPhone Sales Representative

Local Vendor

Custom Designs

Minimum Order

Required

Order Turnaround/L

ead TimeDiscount Shipping

Set-up Charges

Notes

Accent Screen Printing 134012 (713) 782-6683 Paula Sidler no yes no 5-7 days 20%orders under $1000

see notesArt time billed at $35/hr. for custom designs, Free shipping on orders >$1000. If set up charges apply, they will be stated in quote.

Ad-Wear & Specialty of Texas, Inc. 200051 (713) 953-9881 David Tanenbaum no yes yes 15-20 days 30% see notes yes

Set up fee: if a line item is less than $1,000 the set up fee will be added to the cost of the PO. If line item is > $1,000 no additional fees will be added. Shipping charges: If line item is less than $1,000 shipping will be added to PO. If greater than $1,000 no additional fees will be added. Minimum order: dependent on manufacturer. See specs in catalogs.

American PromoPrint 200059 (281) 238-5155 Tiffany Pace no yes yes 14 days 0%-10% yes yes Minimum requirements, discount, shipping, and set up charges dependent on order. Contact vendor for complete quote.

Augusta Group, The 143503 (281) 293-0995 Kathy Baker yes yes yes 10-12 days 10% yes yesCall vendor for complete quote. Shipping and set up charges vary per order. Higher minimum quantity and longer production time required on custom designs.

Authentic Promotions.com 143495 (800) 497-7765 Amy Warner no yes yes 15 days or less 20% 3% yes

Minimum orders: $250.00 or 24 total items per decoration. Call for quote on set up charges. Silk Screen imprint: an imprint fee will be based on quantity, color of item and how many imprint colors and/or locations. Embroidery is based on stitch count of logo and quantity being ordered.

Barcelona Sporting Goods 5150 (713) 464-8313 John Triska no yes no 3 weeks 0%-25% 3% no Call for pricing. Shipping: 3% of total order.

Best Embroidery Services of Texas (281) 392-7108 Roxanne Wanja yes yes no 2 weeks 15% no yes

Custom Designs: need camera ready art work. Set up charges: if artwork needs to be digitized Best only charges what they are charged to get the product to have a high class look. Call for pricing.

Blue Moose Tees 200062 (877) 566-6673 Customer Service no yes 12 items 7 days no no yesSet up Charges: $20.00 personalization set up fee; $2.00 per single digit number, $3.00 per double digit number; $3.00 per name.

Brammer's Athletic Wearhouse 125195 (281) 391-1441 Mike Hampton yes yes no 2-3 weeks 20%-40% no yesScreen print: new orders $18.00 per screen; re-order $10.00 per screen. Embroidery: new order (custom) varies by stitch count; re-order -no set up fee. Call Mike Hampton for pricing.

C & R Development 141522 (832) 444-7731 Raymond Johnson no yes $100 5-14 days no no yesCustom Designs: If art is not camera ready (unless it is text) charge is $20.00/hour; screen charge is $12.00 per screen; on orders of 50 or more the screen is free. Call for exact quote.

Clever Items (817) 691-7804 Chris McCall no yes no <30 days 35% no yes Call for set up charges and exact quote.

Crestline Specialties, Inc. 130264 (800) 221-7797 Catherine Proulx no yes yes varies 15% yes yes Call for exact quote on shipping, set up charges, and turnaround time.

Custom Imprint America 200065 (281) 394-7900 Vicki Hewitt yes yes no varies 5%-50% yes yes Discounts, shipping fee, and set up charges vary from product to product. Call for quote.

Custom Sportswear, Inc. 142069 (800) 697-0330 EXT 120 Ron Duzenski no yes no 10-15 days no no no All inclusive pricing: no additional artwork charges, no set up fees, no screen fees, no minimum orders.

Dostal's Corporate Solutions 137347 (281) 579-8834 Bill Dostal yes yes on some items

10 days 10% yes yes Set up charges range from $25-$40 on most items. Call for quote.

Eagle Group Sportswear (812) 378-4272 Todd Baker no yes no 15 days 30% 5% no Prices include a free website for easy ordering.

RFCP #1453 Promotional Apparel-Bid Tab


Local Vendor

Custom Designs

Minimum Order

Required

Order Turnaround/L


Set-up Charges

Notes

EmbroidMe - Katy 137989 (281) 693-0444 Kim Ayers yes yes no 2-3 weeks yes no yes

If screen printing or embroidering new/detailed design, there may be a set up fee. No minimums on embroidery orders. Screen printed, bling or tackle twill may have minimums. Discounts are offered on an order by order basis-dependent on quantity and complexity of order.

Empire Printing (281) 396-4161 Albert Roman yes yes no 5-10 days no no no Custom designs: varies; call for complete quote.

Educational Products, Inc. 107609 (832) 327-6314 Josh Jarman no yes 36 pcs 5-7 days 5% only if rush order

no

Pricing based upon the following: type of garment, # of imprint colors, color of garment, location of design, and quantity ordered. No charges for any set up, screen printing or delivery unless delivery is a RUSH it will be $50.00.

Fine Custom Design 204806 (713) 562-4293 Alejandro Garcia yes yes no 7-10 days 5% no no Call for exact quote.

Fresh Prints of Houston 200063 (281) 859-5761 Briana Yale no yes 25 pcs. 5-10 days no yes no

Shipping fee: Flat rate $25.00. Custom Designs: allow 2-3 additional days for design and revision. Most orders are turned around within 2-3 business days if they do not require custom designs. This speedy turnaround requires shirt sizes at time of order.

Gandy Ink 114572 (281) 304-6045 Darren Hornbeak no yes yes 3-7 days no no no

Minimum orders: 6 pcs on embroidery; 12 pcs on screen print. Allow 3 extra days for art approval. Pricing is net pricing with quantity price breaks. No extra charges for art, set up, digitizing, shipping, or extended sizes. On screen printed shirts 5 free shirts for every 50 ordered.

Got 2 Bling It (832) 687-7101 Chinetta Jackson no yes yes 30 days no no yes$50 one time set up fee for each custom design created. Minimum order: $200. Once order is custom designed the minimum order will not be required.

GTM Sportswear 126865 (800) 336-4486 Jessica Hess no yes no 10-13 days no yes no Upcharges apply on extended sizes. Call for quote. On orders $200 or more, shipping is free.

Houston Graduation Center 134848 (713) 864-6464 x108 David Dabney no yes no varies no 5% no Shipping fee: 5% or less. Turnaround ranges from 3 business days to 10 business days dependent on order. Call for quote.

Impress Me! Artwear & Promotions 142190 (713) 494-3458 Sherry Jones no yes no 7 days no yes yes Shipping fee: Flat rate $30.00. Call for exact quote.

Inkblots 150234 (713) 806-8885 T.J. Covino yes yes no 7-10 days yes no no Call for exact quote on discount, set up charges and turnaround time.

International Promotional Ideas 200102 (847) 439-6700 Jack Rosenfeld no yes $100 15 days 30% no no

J. Harding & Co. (713) 862-9855 Wendy Drouin no yes yes 2 weeks 10%-12% yes yesScreen printed apparel-set up fee waived for every 12 items ordered. Minimum requirements: Screen printed apparel - 12 pcs: Embroidered apparel-1 piece. Call for quote on shipping.

Kaeser & Blair (713) 417-0290 Marilyn Rawls yes yes $100 varies yes yes yes Call for quote on discounts, shipping, set up charges and turnaround time.

Leonetti Graphics 133227 (281) 499-4959 Donald Leonetti no yes 24 pcs. 10-14 days 20% see notes no Free shipping on orders >$250. Call for exact quote on orders.

Lids Team Sports 206029 (608) 790-7075 George Williams no yes yes 3 weeks yes no yes

Min. orders: embroidery 6 pcs; screen printing 12 pcs; tackle twill 24 pcs. Call for discounts. Set up charges: embroidery-one time digitization fee; tackle twill-call for set up fee; screen printing -no printing fees.

Main Event, The 200074 (281) 762-0854 Rosey Bartee no yes no 7 days 10% no yes

Set up charges: embroidery-one time $50 digitizing fee (no charge if design already on file and no changes to design); art fee-$25 with 2 free revisions; screen printing $15 for first 2 screen colors then $10 each additional color up to 7 screen colors. Call for exact quote on order.


Local Vendor

Custom Designs

Minimum Order

Required

Order Turnaround/L


Set-up Charges

Notes

Neff Motivation, Inc. 120333 (800) 232-6333 Louis Kleeman no yes $35 15-25 days 4% no yesSet up charges: no charge using Neff graphics; Neff rep has samples of Neff graphics for review. Custom graphics-contact sales rep for quote.

OSO Promotions 200084 (281) 645-6414 David Holle yes yes $150 varies no yes yes Call for exact quote on shipping, set up charges and turnaround time.

Paramount Promotions 137356 (281) 579-1442 Chandra Kerr yes yes no 2-3 weeks 20% no yes Set up charges vary by job. Call for quote.

Pepwear, LLC 150514 (877) 899-1919 Becky Seeton no yes yes 5 days no yes no

Custom designs: No copyrighted material without permission. Minimum orders: embroidery-1 piece; screen printing-12 pieces. No set up fee on screen-printing. Call for quote on shipping fees and set up charges on embroidery.

Pony Xpress Printing, LLC 200087 (469) 471-5541 Jerry Baxter no yes $150 7-10 days no yes yesDiscounts, shipping, and set up charges already included in pricing. Specialize in oversized fashion printing and in discharge water based printing found in fashion designs.

Positive Promotions 115640 (877) 258-1225 Michael Taxel no yes $100 varies 5% with exclusions

no yes

Free standard shipping. If express or rush shipments needed, additional charges will apply. Call for quote on set up charges and turnaround time. Discount cannot be combined with any other promotional, discounted or sale pricing or other special offers.

Project Promotions 200091 (281) 416-2049 Susan Steely no yes 12 pcs 10-12 days 3% yes yes Call for quote on shipping fees and set up charges.

Promo Dude, The 139629 (281) 829-2820 Jeanette Maurer yes yes yes 2-3 weeks see notes yes yes Call for quote on shipping, set up fees and discounts. Discounts offered dependent on order size.

Promo Pros, Inc. 138476 (281) 376-7677 Leslie Roark no yes varies 4-6 weeks no yes yesCall for quote on shipping fees and set up charges. All quotes are custom based on the requirements provided by the ordering school.

Promotional Edge 128153 (281) 578-6117 Carla Lehrmann yes yes $300 5-15 days no yes yes All fees are dependent on order. Call for shipping fees, set up charges, and turnaround times.

Purple Pear Promotional Products 204620 (832) 600-5646 Amber Cruickshank no yes yes 7-10 days no yes yes Call for quote on shipping fees, set up charges, and prices.

Schevett Marketing Plus (469) 400-3673 Angela Gettis no yes $300 2-3 weeks yes no yes Call for quote on discounts and set up charges. PREPAY ONLY at this time.

School Tee Factory (888) 301-3110 Ron Duzenski no yes no 5-10 days yes yes no Custom design is included in the price. Discounts are quantity based. Free shipping on orders >$1000. Call for quote on orders.

Tees Now (228) 249-2620 Wilson Watler yes yes no 5-20 days 10% $10 yes Discount 10% off catalog price. Call for complete quote.

Texan Group, The 139639 (512) 667-0622 Aaron or Angie Scott yes yes 12 pcs 5-10 days 25%-30% yes no Shipping included in garment pricing. Set up charges included in garment pricing.

World of Promotions (847) 439-7930 Layla Rosenfeld no yes varies 10-30 days 10% no yesCall for minimum order requirements-varies by product. Set up charges only on orders with two or more color imprints. Call for complete quote and turnaround time.

VendorPurchase

Price

Reputation of Vendor's

Goods and Services

Quality of the Vendor's

Goods and Services

Extent to which Goods and

Services Meet District's Needs

Past History with Katy

KISD

Past History with Entities

of Similar Size

Long-term Cost to the

District

Impact on District's Ability to Comply with HUB

Req's.

Parent Company or

Majority Owner in Texas

Total Score

Notes

20 PTS 10 PTS 20 PTS 10 PTS 20 PTS 10 PTS 10 PTS N/A 5 PTS

Accent Screen Printing 20 10 20 10 20 0 10 N/A 5 95Ad-Wear & Specialty of Texas, Inc.

20 10 20 10 20 0 10 N/A 5 95

American Promoprint 20 10 20 10 20 0 10 N/A 5 95

Augusta Group, The 20 10 20 10 20 0 10 N/A 5 95

Authentic Promotions.com 20 10 20 10 20 0 10 N/A 0 90

Barcelona Sporting Goods 20 10 20 10 20 0 10 N/A 5 95

Best Embroidery of Texas 20 10 20 10 0 10 10 N/A 5 85

Blue Moose Tees 10 10 20 10 20 0 10 N/A 5 85

Brammer's Athletic Wearhouse 20 10 20 10 20 0 10 N/A 5 95

C & R Development 10 10 20 10 20 0 10 N/A 5 85

Clever Items 20 10 20 10 0 10 10 N/A 5 85

Crestline Specialties, Inc. 20 10 20 10 20 0 10 N/A 0 90

Custom Imprint America 20 10 20 10 20 0 10 N/A 5 95

Custom Sportswear Inc. 10 10 20 10 0 10 10 N/A 5 75

Dostal's Corporate Solutions 20 10 20 10 20 0 10 N/A 5 95

Eagle Group Sportswear 20 10 20 10 0 10 10 N/A 0 80

EmbroidMe - Katy 20 10 20 10 20 0 10 N/A 5 95

Empire Printing 10 10 20 10 0 10 10 N/A 5 75

Educational Products, Inc. 20 10 20 10 20 0 10 N/A 5 95

Fine Custom Design 20 10 20 10 20 0 10 N/A 5 95

Fresh Prints of Houston 10 10 20 10 20 0 10 N/A 5 85

Gandy Ink 20 10 20 10 20 0 10 N/A 5 95 Pricing includes quantity breaks.

Got To Bling It 10 10 20 10 0 10 10 N/A 5 75

GTM Sportswear 10 10 20 10 20 0 10 N/A 0 80

Houston Graduation Center 10 10 20 10 20 0 10 N/A 5 85

Impress Me! Artwear & Promotions 10 10 20 10 20 0 10 N/A 5 85Inkblots 20 10 20 10 20 0 10 N/A 5 95International Promotional Ideas 20 10 20 10 20 0 10 N/A 0 90J. Harding & Co. 20 10 20 10 0 10 10 N/A 5 85Kaeser & Blair 20 10 20 10 0 10 10 N/A 5 85Leonetti Graphics 20 10 20 10 20 0 10 N/A 5 95Lids Team Sports 20 10 20 10 0 10 10 N/A 5 85

RFCP #1453 PROMOTIONAL APPAREL EVALUATION FORM

VendorPurchase

Price


Goods and Services


Goods and Services




KISD


of Similar Size


District


Req's.

Parent Company or


Total Score

Notes


RFCP #1453 PROMOTIONAL APPAREL EVALUATION FORM

Main Event, The 20 10 20 10 20 0 10 N/A 5 95Neff Motivation, Inc. 20 10 20 10 20 0 10 N/A 0 90OSO Promotions 10 10 20 10 20 0 10 N/A 5 85Paramount Promotions 20 10 20 10 20 0 10 N/A 5 95Pepwear LLC 10 10 20 10 20 0 10 N/A 5 85Pony Xpress Printing, LLC 20 10 20 10 20 0 10 N/A 5 95 Prices include discounts.

Positive Promotions 20 10 20 10 20 0 10 N/A 0 90Project Promotions 20 10 20 10 20 0 10 N/A 5 95

Promo Dude, The 20 10 20 10 20 0 10 N/A 5 95Discounts dependent on order size.

Promo Pros, Inc. 10 10 20 10 20 0 10 N/A 5 85Promotional Edge 10 10 20 10 20 0 10 N/A 5 85Purple Pear Promotional Products 10 10 20 10 0 10 10 N/A 5 75Schevett Marketing Plus 20 10 20 10 0 10 10 N/A 5 85School Tee Factory 20 10 20 10 0 10 10 N/A 0 80Tees Now 20 10 20 10 0 10 10 N/A 5 85Texan Group, The 20 10 20 10 20 0 10 N/A 5 95World of Promotions 20 10 20 10 0 10 10 N/A 0 80

Kill?, Independent ,qdit,ÿo] DistrictPost Office Box 159 • Katy, Texas 77492-0159

TO:

FROM:

SUBJECT:

DATE:

Board of Trustees


Proposal for Promotional Items Other Than Apparel

January 22, 2013

The contract for Promotional Items Other than Apparel will provide a list of vendors fromwhom the schools and departments can purchase such items. A review of a samplingof 75 purchase orders from 2011/2012 indicated the funding source for a majority of thepurchases was activity funds, and not the General Fund. Items purchased includedsuch things as parking stickers, imprinted pens, pencils and tumblers, spirit ribbons,decals, and awards. The evaluation criteria for the vendors submitting proposalsincluded availability of discount pricing, past history with Katy ISD, and extent to whichthe products provided will meet the needs of the department or school.

After review by the Purchasing Department, it was determined that all vendorssubmitting met the District's requirements to be a vendor to the District. However,those vendors which did not note up front that discount pricing was available to theDistrict were not scored as high as those that did. Additionally, this is a contract wherethe proximity of the vendor to the District's schools and departments can impact thepricing and delivery of such items. Therefore, all information presented to the schoolswill note whether or not the vendor is considere, d local.

The recommendation is to award to all vendors creating an approved vendor list fromwhich the schools can shop the items needed. All schools and departments will beencouraged to obtain competitive quotes from at least three vendors on the list, with atleast one of those a local vendor, and purchase from the one offering Best Value.

This is a one year contract with an option for two additional one-year renewals.

Impact Statement: The annual expenditure over the next twelve months is estimated tobe $188,417 with expenditures generated on an as-needed basis. District expenditureswill be funded from the General Operating Fund, Special Revenue Funds, or StudentActivity Funds.

k "k ÿ "k "k "k "k" *k "k ÿ

Support of District Focus:

Safe and Orderly Working and Learning Environment, Effective and Efficient Operations

Proposal for Promotional Items Other Than ApparelJanuary 22, 2013

Page 2 of 2

It is recommended that the Board award the contract for Promotional Items OtherThan Apparel to the following vendors:

Accent Screen Printing

Ad-Wear & Specialty ofTexas, Inc.

American PromoPrint, Inc.The Augusta GroupAuthenticPromotions.com

Dostal's CorporateSolutionsEducational Products, Inc.

OSO Promotions

EmbroidMeHouston Graduation CenterImpress Me! Artwear &PromotionsInkblotsInternational PromotionalIdeasJ. Harding & CompanyK & V Promotions

Paramount Promotions

Pepwear, LLCPheido AdvertisingPopular EmbroideryDesignsPositive PromotionsProject Promotions

Beehive SpecialtyBest Embroidery Servicesof TexasBlue Moose Tees The Promo DudeBrammer's Athletic Promo ProsWearhouseButler Business Products Kaeser & Blair Promotional EdgeCanada Mostin Trading Leonetti Graphics Purple Pear PromotionalCorp. ProductsClever Items The Main Event Really Good StuffCrestline Specialties, Inc. Neff Motivation, Inc. Schevett Marketing PlusCustom Imprint America Oriental Trading Company World Promotions


Alton L. Fraileyperintendent

G. E. McMeans, Jr.

Assistant Supt for Support Services

J. GunnellChief Operations Officer

Regina M. StephensonDirector of Purchasing

Bid Opening Date 11-27-2012

Vendor Name VID Phone Sales RepresentativeLocal

VendorCustom Designs

Minimum Order

Required

Order Turnaround/

Lead Time Discount ShippingSet-up

Charges Notes

Accent Screen Printing 134012 (713) 782-6683 Paula Sidler no yes no 5-7 days 20% yes yesArt time billed at $35/hr. for custom designs. If set up charges apply it will be stated in the quote. Call for shipping charges.

Ad-Wear & Specialty of Texas, Inc. 200051 (713) 953-9881 David Tanenbaum no yes yes 15-20 days 30% yes yes

If a line item is less than $1000 the set up fee will be added to the cost of the PO; If greater than $1000 then no additional set up fee will be added. Minimum order is per manufacturers specs in catalog. Shipping: If a line item is less than $1000 shipping will be added to the PO; if greater than $1000 no shipping fees will be added. Call for complete quote.

American PromoPrint, Inc. 200059 (281) 238-5155 Tiffany Pace no yes yes 14 days yes yes yesDiscount: dependent on items; up to 10%. Call for pricing, shipping, set up charges and any custom design requirements and any minimum order requirements.

Augusta Group, The 143503 (281) 293-0995 Kathy Baker yes yes yes 10-12 days 10% yes yesSet up charges are determined by number of colors/locations in screen-print and number of stitches in embroidery. Shipping charges will be included in quote. Call for complete quote.

Authentic Promotions.com 143495 (800) 497-7765 Amy Warner no yes yes 15 days or less

20% 3% yesPrice listed in catalogs include 1 color/1 location imprint. If printing multiple colors and/or locations a set up charge may apply. Call for complete quote.

Beehive Specialty (512) 912-7940 Nicky Whisonant no yes yes 5-7 days 10-15%5% to 15%

yes

Artwork fees range from $25-$45 per hour and are quoted on a project by project basis. Minimum orders: varies by items. Set up Charges: $45 per imprint color. No set up charge for exact reorders.

Best Embroidery Services of Texas (281) 392-7108 Roxanne Wanja yes yes yes 10-14 days yes yes yes Custom designs: need camera ready artwork. Call for discount, shipping fee, and set up charges.

Blue Moose Tees 200062 (877) 566-6673 Customer Service no yes 12 pcs. 7 days no no yesSet up charges: $20 personalization fee; $3 names, $2 single digit number; $3 double digit number. Call for discounts and shipping fees.

Brammer's Athletic Wearhouse 125195 (281) 391-1441 Mike Hampton yes yes no 2-3 weeks 20-40% no yesSet up charges: Screen print new order $18 per screen; reorder $10 per screen. Embroidery: new order (custom) varies by stitch count; reorder no set up fee.

Butler Business Products 9600 (713) 461-2938 Customer Service no no no 10-14 days 25% yes yes Call for quote on set up charges and shipping fee.

Canada Mostin Trading Corp. 200099 (416) 850-7860 Terrance Hu no yes $1,000 25-60 days 50% no yes Set up fees: $35 per logo. Custom designs: AI, EPS or PDF format artwork.

Clever Items 205611 (817) 691-7804 Chris McCall no yes no 30 days or less

35% no yes Call for set up charges.

Crestline Specialties, Inc. 130264 (800) 221-7797 Catherine Proulx no yes yes varies 15% yes yesCustom designs: extra time may be needed. Turnaround 3 days by Next Day Air to 28 days ground. Call for shipping fee and set up fees.

Custom Imprint America 200065 (281) 394-7900 Vicki Hewitt yes yes no varies 5-50% yes yes Discounts, shipping fees, and set up charges vary according to product. Call for complete quote and turnaround time.

Dostal's Corporate Solutions 137347 (281) 342-2112 Bill Dostal yes yes on some items

10 days-2 weeks

10% yes yes Minimum order on some items. Set up charges range from $25-$40 in most cases. Call for shipping charges.

Educational Products, Inc. 107609 (832) 327-6314 Josh Jarman no yes yes 3-4 weeks 5% no no Call for complete quote.

EmbroidMe 137989 (281) 693-0444 Kim Ayers yes yes yes 2-3 weeks no yes yes Call for quote on shipping, set up charges, and discounts.

Houston Graduation Center 134848 (713) 864-6464 x108

David Dabney no yes yes varies by product

10% 5% yes Call for quote on set up charges, shipping fee, and minimum order requirements.

Impress Me! Artwear & Promotions 142190 (713) 499-3458 Sherry Jones no yes no 7-14 days no yes yes Call for quote on shipping fees and set up charges.

RFP# 1454 Promotional Items Other Than Apparel-Bid Tab

Vendor Name VID Phone Sales RepresentativeLocal

VendorCustom Designs

Minimum Order

Required

Order Turnaround/

Lead Time Discount ShippingSet-up

Charges Notes

Inkblots 150234 (713) 806-8885 T J Covino yes yes no 7-10 days yes no no Call for exact quote. Shipping, set up charges, and discounts dependent on orders.

International Promotional Ideas 200102 (847) 439-6700 Jack Rosenfeld no yes $100 15 days 30% no no

J. Harding & Company (713) 862-9855 Wendy Drouin no yes yes 2-3 weeks 8% yes yes Call for quote on shipping fee, set up charges, and minimum requirements.

K & V Promotions 128594 (972) 406-1644 Barry Krause no yes $100 3 weeks no yes yes Call for quote on shipping fee and set up charges.

Kaeser & Blair (713) 417-0290 Marilyn Rawls yes yes $100 varies yes yes yes Call for complete quote on discount, shipping, set up and turnaround time.

Leonetti Graphics 133227 (827) 499-6750 Donald Leonetti no yes varies 10-14 days 20% see notes

noFree delivery on orders > $250. Call for shipping charges on all other orders. Minimum order requirements: varies by item; call for quote.

Main Event, The 200074 (281) 762-0854 Rosey Bartee no yes no 1 week 10% no yes

Set up charges: $50 digitizing fee (one time) per design for embroidery. Art fee: $25 with two free revisions. Screen Fees: $15 1st 2 screens then $10 for each additional screen up to 7 total.

Neff Motivation, Inc. 120333 (281) 631-0068 Louis Kleeman no yes $35 2-4 weeks 20% no yes Call Sales Rep. for quote on art/set up charges.

Oriental Trading Company 124326 (800) 228-2199 Customer Service no yes yes 10-30 days no yes yes

Set up charges vary with each custom imprint item. Set up charges range from $25-$50 or more. Custom designs: artist can set up production ready artwork; 1st hour free, each add 'l $50 per hour. Minimum order requirements vary by product. Call for complete quote.

OSO Promotions 200084 (281) 645-6414 David Holle yes yes $150 varies no yes yes Call for quote on shipping fees and set up charges.

Paramount Promotions 137356 (281) 579-1442 Chandra Kerr yes yes no 3-4 weeks 10%-20%

no yes Set up fees vary by product. Some items require minimum orders. Call for complete quote.

Pepwear, LLC 150514 (877) 899-1919 Becky Seeton no yes see notes 5-7 days no yes see notes

Minimum requirements: embroidery 1 piece; screen-print 12 pieces. No set up fee on screen-prints. DIG fees for custom embroidery. Call for complete quote.

Pheido Advertising 125276 (281) 550-8969 Richard Feiden no yes yes 2-3 weeks 5% yes yes Call for quote on shipping fee, set up charges, and minimum requirements.

Popular Embroidery Designs, Inc. (713) 920-1590 Victor Villarreal no yes no 7-10 days 25% yes yes Digitizing fees: $60 for left chest; $100 for full back. Call for quote on shipping fee and set up charges.

Positive Promotions 115640 (877) 258-1225 Michael Taxel no yes $100 varies 5% no yes

Free standard shipping. Express or rush shipments will incur a charge. Call for complete quote on set up fees, custom design requirements, and turnaround time. Discount cannot be combined with any other promotions, discounts, sales, or other special offers.

Project Promotions 200091 (281) 416-2049 Susan Steely no yes yes 3-15 days 3% yes yes Call for quote on shipping fee, set up charges, and minimum requirements.

Promo Dude, The 139629 (281) 829-2820 Jeanette Maurer yes yes yes 2-3 weeks no yes yes Call for complete quote on shipping, set up charges, and minimum requirements.

Promo Pros 138476 (281) 596-7583 Leslie Roark yes yes varies by item

4-6 weeks no yes yes Call for quote on shipping fee, set up charges, and minimum requirements.

Promotional Edge 128153 (281) 578-6117 Carla Lehrmann yes yes see notes 5-10 days no yes yes

Minimum requirements: $300 or minimum quantity as listed in catalog. All prices will be quoted prior to order and may be discounted from list price depending on decoration and quantity needed. Shipping fee and set up charges will also be quoted.

Purple Pear Promotional Products (832) 600-5646 Amber Cruickshank no yes yes 7-10 days no yes yes Call for complete quote on custom design fees, minimum order requirements, shipping, and set up charges.

Really Good Stuff 123939 (203) 261-1920 Kelly O'Connell no no $30 10-14 days 3%-15% yes no Call for quote on shipping fee and discount.

Schevett Marketing Plus (469) 400-3673 Angela Gettis no yes $300 2-3 weeks no yes yes Call for quote on shipping and set up charges if applicable. PREPAY ONLY at this time.

World of Promotions (847) 439-7930 Layla Rosenfeld no yes yes 10 to 30 days

10% no yes Set up charges: no charge for only one color imprint. $40 for each color over one. Call for minimum requirements.

VendorPurchase

Price


Goods and Services


Goods and Services




KISD


of Similar Size


District


Req's.

Parent Company or


Total Score

Notes


Accent Screen Printing 20 10 20 10 20 0 10 N/A 5 95

Ad-Wear & Specialty of Texas, Inc. 20 10 20 10 20 0 10 N/A 5 95

American PromoPrint, Inc. 20 10 20 10 20 0 10 N/A 5 95Augusta Group, The 20 10 20 10 20 0 10 N/A 5 95Authentic Promotions.com 20 10 20 10 20 0 10 N/A 0 90Beehive Specialty 20 10 20 10 0 10 10 N/A 5 85Best Embroidery Services of Texas 20 10 20 10 0 10 10 N/A 5 85Blue Moose Tees 10 10 20 10 20 0 10 N/A 5 85Brammer's Athletic Wearhouse 20 10 20 10 20 0 10 N/A 5 95Butler Business Products 20 10 20 10 20 0 10 N/A 5 95Canada Mostin Trading Corp. 20 10 20 10 0 10 10 N/A 0 80Clever Items 20 10 20 10 0 10 10 N/A 5 85Crestline Specialties, Inc. 20 10 20 10 20 0 10 N/A 0 90Custom Imprint America 20 10 20 10 20 0 10 N/A 5 95Dostal's Corporate Solutions 20 10 20 10 20 0 10 N/A 5 95Educational Products Inc. 20 10 20 10 20 0 10 N/A 5 95EmbroidMe 10 10 20 10 20 0 10 N/A 5 85Houston Graduation Center 20 10 20 10 20 0 10 N/A 5 95Impress Me! Artwear & Promotions 10 10 20 10 20 0 10 N/A 5 85Inkblots 20 10 20 10 20 0 10 N/A 5 95International Promotional Ideas 20 10 20 10 20 0 10 N/A 0 90J. Harding & Company 20 10 20 10 0 10 10 N/A 5 85K & V Promotions 10 10 20 10 0 10 10 N/A 5 75Kaeser & Blair 20 10 20 10 0 10 10 N/A 5 85Leonetti Graphics 20 10 20 10 20 0 10 N/A 5 95Main Event, The 20 10 20 10 20 0 10 N/A 5 95Neff Motivation, Inc. 20 10 20 10 20 0 10 N/A 0 90Oriental Trading Company 10 10 20 10 20 0 10 N/A 0 80OSO Promotions 10 10 20 10 20 0 10 N/A 5 85Paramount Promotions 20 10 20 10 20 0 10 N/A 5 95Pepwear LLC 10 10 20 10 20 0 10 N/A 5 85Pheido Advertising 20 10 20 10 20 0 10 N/A 5 95Popular Embroidery Designs 20 10 20 10 0 10 10 N/A 5 85Positive Promotions 20 10 20 10 20 0 10 N/A 0 90Project Promotions 20 10 20 10 20 0 10 N/A 5 95Promo Dude, The 10 10 20 10 20 0 10 N/A 5 85Promo Pros 10 10 20 10 20 0 10 N/A 5 85Promotional Edge 10 10 20 10 20 0 10 N/A 5 85Purple Pear Promotional Products 10 10 20 10 0 10 10 N/A 5 75

RFCP #1454 PROMOTIONAL ITEMS OTHER THAN APPAREL - EVALUATION FORM

VendorPurchase

Price


Goods and Services


Goods and Services




KISD


of Similar Size


District


Req's.

Parent Company or


Total Score

Notes


RFCP #1454 PROMOTIONAL ITEMS OTHER THAN APPAREL - EVALUATION FORM

Really Good Stuff 20 10 20 10 20 0 10 N/A 0 90Schevett Marketing Plus 10 10 20 10 0 10 10 N/A 5 75 Prepay Only.World of Promotions 20 10 20 10 0 10 10 N/A 0 80

Katy Independent ,ÿhool District Post Office Box 159 " Katy, Texas 77492-0159

TO:

FROM:

SUBJECT:

DATE:

Board of Trustees

Alton Frailey, Superintendent

2011-12 Annual Financial Audit Report

January 22, 2013

Section 44.008 of the Texas Education Code requires a school district to have anannual audit of its financial records. The audit is to be approved by the Board ofTrustees and filed with the Texas Education Agency within 150 days of the close of thefiscal year.

Representatives from the audit firm, Whitley Penn, LLP, will review the draft of the2011-12 financial audit with the Board at the January 14 work/study session. The finalofficial audit report will be presented to the Board for approval at the January 22meeting.

Impact Statement: Reports the financial condition of the District for the fiscal year2011-12 and includes an unqualified opinion by the District's financial auditors.

Support of District Focus: Effective and Efficient Operations

.k *k *k ÿk .k *k .k ,k -k -k -k -k

It is recommended: that the Board of Trustees approve the 2011-12 Annual FinancialAudit Report as presented.


Alton Frailey , .......... ,.

SuperintendentWilliam L. MooreChief Financial Officer

Post Office Box 159 Katy, Texas 77492-0159

TO: Board of Trustees

FROM: Bill Moore, Chief Financial Officer

SUBJECT: Financial Audit Report Drafts

DATE: January 11, 2013

Attached is a draft of the annual financial audit report for the 2011-12 fiscal year. The audit report has been combined with the Comprehensive Annual Financial Report (CAFR) that is submitted to the Association of School Business Officials International (ASBO) and the Government Finance Officers Association (GFOA) for certification and recognition. While the audit is complete, the report is still a draft and will be further reviewed for punctuation, grammar, formatting, etc. before final submission to the Texas Education Agency, ASBO and GFOA. Any changes evolving from Tuesday’s work/study session will also be incorporated. A final report will be presented for board approval at the January 22 board meeting. Due to the size of the report we have attempted to simplify your reading by identifying the major components of the report. The following are areas on which you may want to focus your attention: INTRODUCTORY SECTION

P. i-vii is an introductory transmittal letter that provides both financial and non-financial information about the District.

FINANCIAL SECTION

P. 1-2 is the auditor’s report which contains an unqualified clean opinion.

P. 3-13 is the Management’s Discussion and Analysis section. It provides a narrative analysis of key data presented in the financial statements.

P. 17 is the Statement of Net Position using the full accrual GASB No. 34 Government-wide format. These statements include all funds except fiduciary funds and report the District as a whole.

P. 20-21 is the traditional balance sheet by fund. Revenues and expenditures by fund are on P. 24-25. P. 31-72 are the notes to the financial statements and contain additional detail and explanations relative to the financial activity of the District.

of 2

P. 74-75 and P. 92-93 include budget and actual comparisons for revenues and expenditures for the General and Debt Service funds. P. 98-99 include the revenues and expenditures for the Capital Projects Fund. P. 114-123 include financial information related to the Special Revenue Funds (grants received by the District).

Although not a part of the annual financial audit, the Statistical Section on P.153-201 contains various financial data and historical comparisons with prior years. Also attached is a draft of the Single Audit Report which includes audit reports on the District’s internal controls and compliance with regulations associated with grants and other federal programs. The report is an unqualified clean opinion with no deficiencies in internal control and states that the District complied with all requirements outlined in the U.S. Office of Management and Budget Circular. Auditors from the firm Whitley Penn, LLP Certified Public Accounts will be at Monday’s work/study session to present the reports.

KATY INDEPENDENT SCHOOL DISTRICT

COMPREHENSIVE ANNUAL FINANCIAL REPORT

FOR THE YEAR ENDED AUGUST 31, 2012

PREPARED BY THE FINANCE DEPARTMENT

William L. Moore Chief Financial Officer

Christopher J. Smith

Business Manager

Coreen T. Miller Accounting Supervisor

Anne M. Faichtinger

Finance Officer

6301 S. Stadium Lane P.O. Box 159

Katy, Texas 77492-0159

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TABLE OF CONTENTS

Page Exhibit INTRODUCTORY SECTION Transmittal Letter i Certificate of Achievement viii Certificate of Excellence x Certificate of Board xii Principal Officials and Advisors xiii Administrative Organizational Chart xiv FINANCIAL SECTION Independent Auditors’ Report 1 Management’s Discussion and Analysis 3 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position 17 A-1 Statement of Activities 18 B-1 Fund Financial Statements: Balance Sheet – Governmental Funds 20 C-1 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 23 C-2 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 24 C-3 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities 26 C-4 Statement of Net Assets – Proprietary Funds – Internal Service Funds 27 D-1 Statement of Revenues, Expenses, and Changes in Fund Net Assets – Proprietary Fund Types – Internal Service Funds 28 D-2 Statement of Cash Flows – Proprietary Fund Types – Internal Service Funds 29 D-3 Statement of Fiduciary Assets and Liabilities – Agency Funds 30 E-1 Notes to Financial Statements 31

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Page Exhibit FINANCIAL SECTION (continued) Required Supplementary Information: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Original Budget, Amended Final, and Actual – General Fund 74 F-1 Notes to Required Supplementary Information 76 Other Supplementary Information: Comparative Statements, Combining Statements, and Budget Comparisons: General Fund: Comparative Balance Sheet – General Fund 82 G-1 Schedule of Revenues – Budget and Actual – General Fund 83 G-2 Schedule of Expenditures – Budget and Actual – General Fund 84 G-3 Debt Service Fund: Comparative Balance Sheet – Debt Service Fund 91 H-1 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Original Budget, Amended Final, and Actual – Debt Service Fund 92 H-2 Capital Projects Fund: Comparative Balance Sheet – Capital Projects Fund 96 I-1 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Capital Projects Fund 98 I-2 Nonmajor Governmental Funds: Combining Balance Sheet – Nonmajor Governmental Funds 106 J-1 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds 114 J-2 Schedule of Revenues, Expenditures, and Changes in Fund Balances Original Budget, Amended Final, and Actual – Nutrition and Food Service and Education Jobs Fund 122 J-3 Internal Service Funds: Combining Statement of Net Assets – Internal Service Funds 126 K-1 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets – Internal Service Funds 127 K-2 Combining Statement of Cash Flows – Internal Service Funds 128 K-3 Fiduciary Funds: Statement of Changes in Fiduciary Assets and Liabilities – Agency Funds 130 L-1 Schedule of Changes in Due to Student Groups – Agency Funds 131 L-2

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Page Exhibit FINANCIAL SECTION (continued) Other Supplementary Information: (continued) Capital Assets Used in the Operations of Governmental Funds: Comparative Schedule by Source 134 M-1 Schedule by Function and Activity 135 M-2 Schedule of Changes by Function and Activity 138 M-3 General Long-Term Debt on Governmental Funds: Bond Schedule 142 N-1 Compliance Schedules: Schedule of Delinquent Taxes Receivable 148 O-1 Schedule of Expenditures for Computation of Indirect Costs for 2013-2014 150 O-2 Schedule of Required Responses to Selected School FIRST Indicators 151 O-3 STATISTICAL SECTION (Unaudited) Financial Trends Information: Net Position by Component – Last Ten Fiscal Years 156 I Changes in Net Position – Last Ten Fiscal Years 158 II Fund Balances of Governmental Funds – Last Ten Fiscal Years 160 III Changes in Fund Balances – Last Ten Fiscal Years 162 IV Revenue Capacity Information: Assessed Value and Actual Value of Taxable Property – Last Ten Fiscal Years 165 V Property Tax Rates – Direct and Overlapping Governments – Last Ten Fiscal Years 166 VI Principal Taxpayers – Current Year and Nine Years Ago 170 VII Property Tax Levies and Collections – Last Ten Fiscal Years 171 VIII Debt Capacity Information: Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 174 IX Ratios of Net General Obligation Bonded Debt Outstanding – Last Ten Fiscal Years 175 X Direct and Overlapping Governmental Activities Debt 176 XI

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Page Exhibit STATISTICAL SECTION (Unaudited) (continued) Demographic and Economic Information: Demographic and Economic Statistics – Last Ten Fiscal Years 180 XII Principal Employers – Current Year and Nine Years Ago 181 XIII Operating Information: Full-Time Equivalent District Employees by Position – Last Ten Fiscal Years 184 XIV Operating Statistics – Last Ten Fiscal Years 186 XV Teacher Base Salaries – Last Ten Fiscal Years 188 XVI School Building Information – Last Ten Fiscal Years 190 XVII Fund Balance and Cash Flow Calculation Worksheet – General Fund 200 XVIII Katy ISD Map and Facility Locations 201

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INTRODUCTORY SECTION

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i

January 22, 2013 The Board of Trustees and Citizens Katy Independent School District 6301 South Stadium Lane P.O. Box 159 Katy, Texas 77492-0159 Dear Board Members and Citizens: The Comprehensive Annual Financial Report (CAFR) of the Katy Independent School District (the District) for the fiscal year ended August 31, 2012 is presented herein. The CAFR is management’s report of the financial operations of the District for the Board of Education (the Board), patrons, taxpayers, employees, grantor agencies, the Texas Education Agency (TEA), and other interested parties. The Government-wide Financial Statements in this report provide an overview of the District’s governmental activities, while detailed Fund Financial Statements describe specific activities of each fund group used in accounting for the District’s financial transactions. This report has been prepared by the District’s Finance Department in accordance with the accounting principles and reporting standards promulgated by the governmental Accounting Standards Board (GASB) and the official rules published by the Texas Education Agency. The CAFR is presented in three sections: Introductory, Financial, and Statistical. The Introductory Section includes this transmittal letter, a list of principal officials and advisors, and an organizational chart. The Financial Section includes the Independent Auditors’ Report, Management’s Discussion and Analysis (MD&A), basic financial statements, required supplementary information, and other supplementary information. The Statistical Section is designed to reflect social and economic data, financial and fiscal trends, and demographic information. District management assumes full responsibility for the completeness, fairness, and accuracy of the information contained in this report. We believe that the data presented is accurate in all material respects and is presented in a manner to fairly display the financial position of the District as measured by the financial activity of its various funds. We also believe that all necessary disclosures are included to enable the reader to gain full understanding of the District’s financial activities. The Texas Education Code Section 44.008 requires an annual audit of the accounts, financial records, and transactions of the District by independent certified public accountants selected by the Board. This requirement has been complied with, and the Independent auditors’ Report has been included in this report. The independent audit of the financial statements of the District was part of a broader, federally mandated “Single Audit” designed to meet the special needs of the federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the District’s internal controls and compliance with legal requirements, with special emphasis on internal controls and compliance with legal requirements involving the administration of federal awards. These reports are available in the District’s separately issued Single Audit Report. Generally Accepted Accounting Principles (GAAP) requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The District’s MD&A can be found immediately following the report of the independent auditors.

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ii

PROFILE OF THE DISTRICT The Katy Independent School District was established in 1919 and is governed by an elected Board of seven trustees. The District is a recognized political subdivision of the State of Texas and has the responsibility for and control over all activities related to public education within its 181 square mile boundary. Located approximately 28 miles west of downtown Houston, the District has a population of approximately 271,000 and extends beyond the City of Katy into Harris, Fort Bend, and Waller counties. The District and the City of Katy are governed independently, with each having individual taxing authority. The District is an independent entity and has no component units. Katy ISD has an enrollment of more than 62,110 students and is comprised of 53 campuses including 32 elementary schools, 12 junior high schools, 6 comprehensive high schools, a high school of choice, an alternative learning center, and a career and technology center. Katy ISD provides a learning environment that ensures quality education. Its balanced, dynamic curriculum and cooperative partnership with parents and community prepare students for the changes and challenges of the future and empowers them to pursue productive and fulfilling lives. The District is a partnership of teachers, parents, and the community. Because of this working alliance, each year Katy ISD students, staff, schools, and volunteers win numerous state and national awards. Attesting to the solid relationship between the District and the community, Katy ISD offers an award winning Partners in Education program, providing approximately one volunteer for every four children in the District. Volunteers donated more than 768,821 hours in 2011-12. In addition, Katy ISD is the first school district in the world to adopt a Junior Achievement (JA) “whole district” approach, providing JA curriculum at each grade level and at every campus. Katy ISD teachers have online access to a rigorous and relevant curriculum that is aligned to state and national standards. They collaboratively design instruction promoting meaningful learning experiences; encourage connections between and among the disciplines; and promote academic, emotional, physical, social and behavioral skills. Relevant tasks are developed to assess student learning through a variety of ways including formative, summative, authentic, formal, informal, and project-based. Students are encouraged to be actively involved in using evaluation criteria to self-monitor, self-reflect, and self-evaluate. Individual student data is used to inform and guide instruction. Student achievement on statewide tests consistently surpasses statewide achievement levels. Scores for the PSAT, SAT, and ACT rank above both state and national averages. Katy ISD students consistently win individual and team championships (state, national, and international) in academics, athletics, and fine arts. Several publications and services, including School Match, a nationwide service which assists families in matching schools with the needs of their families, consistently rank Katy ISD among the nation’s top school districts. Information on the district website provides parents and community members with the curriculum and other resources used in instruction. Campus and teacher websites offer pertinent communication to assist with the parent-teacher-student connection. The District is a leader among Texas public school districts in the integration of technology and education and maintains more than 27,000 centrally managed computers as well as mobile wireless labs at every campus. An IP based phone system provides each classroom with a phone and integration with various infrastructure applications including email. Katy ISD has implemented a number of web based applications allowing for aggregation of data, in-depth reporting, and remote access. Katy ISD is in its fourth year of a mobile learning program providing 2,300 Smartphones to fifth grade students at 18 elementary campuses and 1,200 Smartphones at three junior high campuses. The District is in the first year of implementing tablets into four elementary campuses with each starting with 100 devices to distribute in a variety of ways. In 2011-12 Katy ISD implemented a “bring your own device” program at every campus allowing students and teachers to bring their personal wireless devices to school and connect to the filtered, public Wi-Fi. Katy ISD continues to push the envelope in regards to preparing our students to learn, live and work in the information age.

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iii

Katy ISD is comprised of dedicated and aspiring professionals with a common goal “to do whatever it takes” for student success. The emphasis is on meeting the needs of students through engaging instruction, a supportive classroom environment, and a wide variety of extracurricular activities. ECONOMIC CONDITION AND OUTLOOK Local Economy The area’s economy is diverse with concentrations in healthcare, real estate, oil and gas, commercial building, retail trade, and service producing industries. Many employers recruit their professional workers from the west Houston area; therefore, local educational institutions are a key component to producing employees with high educational backgrounds. The greatest strength of the area’s economy is its human capital. Maintaining the competitive advantage of having well-educated and highly compensated workers requires a number of educational initiatives, including the public support of local schools as they enroll larger and more diverse student bodies and the access to higher education for residents by public schools and businesses working with local universities. When one factors in the reputation of Katy ISD’s educational programs as reflected by its academic achievements, the school district is expected to continue its strong growth and development. Amenities such as the school system, proximity to employment and activity centers, and an effective transportation system combine to attract new residents. Fueled by Houston’s robust energy and oil and gas sectors, several large projects are occurring, including the ongoing construction of several master planned residential developments, and the opening of facilities by Texas Medical Center staples like Texas Children’s, Methodist and Memorial Herman Hospitals. In addition, residents will have more mobility options with access to I-10 and the continued expansion of the Grand Parkway which will stretch across the northwest part of the district from I-10 to Highway 290. These projects continue to stimulate residential and commercial growth with hotels, restaurants and shopping centers leading the way. Growth According to American Schools and Universities Magazine, Katy ISD is the 67th largest school district in the nation and is the second fastest growing school district over the past 10 years and third fastest growing over the past 20 years of the 100 largest districts. With 2011-12 enrollments of 62,110 the District’s growth is showing no signs of stopping. The District’s latest demographic report predicts that with moderate growth projections, over 83,000 students will attend Katy ISD schools by the year 2020. There are many reasons for the District’s growth but a community survey revealed that the primary reason new residents move to the Katy area is because of its schools. It appears that the population of the District continues to grow and all indicators point to continued growth over the next decade. This growth makes it imperative for the District to continue to plan wisely for the future. A need for additional facilities continues to be a financial focal point of the District. A successful Bond election was held in the fall of 2010 providing $459 million for the construction, renovation and equipping of facilities and the purchase of land and buses. In August 2012, three new elementary schools and a new junior high school opened to support the rapid enrollment growth. A new high school and two comprehensive high school renovations are scheduled to be completed in the fall of 2013. The District is an active member of a coalition of fast-growing school districts that work with legislators to address problems, needs, and challenges specific to districts in a fast-growth environment. Facility funding, operating costs associated with additional facilities, tax rate limitations, and other problem areas experienced by growing districts are the focus of the coalition.

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iv

FINANCIAL INFORMATION Accounting Systems The Board of Trustees maintains a system of accounting controls designed to assist the administration in meeting its responsibility for accurately reporting the financial condition of the District. The system is designed to provide reasonable assurance that assets are safeguarded against loss, theft, or misuse so activities can be recorded and transacted by the administration for the preparation of the District’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the District’s comprehensive framework of internal controls has been designed to provide reasonable, rather than an absolute, assurance that the financial statements will be free from material misstatement. The cost of operating the District’s schools and the revenues to cover these costs are accounted for through the General Fund. Food service operations and special programs funded by local, state and federal government grants designed to accomplish a particular objective are accounted for in Special Revenue Funds. The District accounts for school construction financed by bond sales through a Capital Projects Fund. A specific portion of the tax rate is dedicated to payment of bond principal and interest. These transactions are recorded in the Debt Service Fund. The District has established Internal Service Funds to account for the transactions of its print shop operations, self-insured workers’ compensation, health insurance, and auto liability plans. With the exception of the auto liability, income is derived primarily from charges to governmental funds based on usage. Included in the CAFR as Agency Funds are financial schedules of student activity funds. Accounting for these funds is managed centrally by the Finance Department, using the same uniform accounting procedures and guidelines as the General Fund. The District’s accounting records are maintained on a modified accrual basis for governmental fund types and a full accrual basis for the proprietary fund types as prescribed by Texas Education Agency Financial Accountability System Resource Guide (Resource Guide). Additionally, the District has prepared the Government-wide Financial Statements on the full accrual basis as required by Governmental Accounting Standards Board Statement No. 34. Financial data is submitted by the District to the Texas Education Agency through the Public Education Information Management System (PEIMS). The data is then analyzed, reviewed and presented to the State Board of Education. Budgetary Process State law requires that every local education agency in Texas prepare and file an annual budget of anticipated revenues and expenditures with the Texas Education Agency. The budget itself is prepared utilizing a detailed line item approach for governmental fund types and is prepared in accordance with the budgeting requirements as outlined in the State Resource Guide. It is the intent of the District that the budgetary process results in the most effective mix of the educational and financial resources available while attaining the goals and objectives of the District. This includes the identification and prioritization of as many separate educational and education support components as reasonably possible. These components are initially identified and prioritized by the organizational manager most directly responsible and are later reviewed by principals, department heads, central administrators, a budget committee, and finally the Board of Trustees. This priority budgeting approach allows the District to establish layers of expenditures that can be matched to the anticipated revenues and desired levels of fund balances. The ultimate decision of the level of funding and components to be funded is the responsibility of the Board.

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v

The budget may be amended during the year to address unanticipated or changing needs of the District. Changes to functional expenditure categories, revenue objects, or other sources and uses accounts require Board approval. Significant Financial Activities Katy ISD is now in the second year of the State of Texas’s fiscal biennium and is still managing the effects of State’s budget shortfall. The regular session of the 82nd Texas Legislature focused on a $26.7 billion shortfall for the 2012-2013 Biennium. The regular legislative session ended without any major decisions being made on behalf of public education. However, the Governor called a special session with public education being the primary focus. Senate Bill 1 was passed reducing the state funding for public education $5.4 billion. On average, individual school districts’ funding was reduced approximately five to six percent each year of the biennium. The District’s total tax base grew over $900 million in 2011-12, an increase of 4.6%. The major growth continued to be residential with single-family residential values increasing 2.7%. Residential properties, including multi-family residences, comprised 66.6% of the total tax base, commercial property 27.0%, vacant land 6.1%, and minerals less than 1%. Property located in Katy ISD is appraised by three County Appraisal Districts (CAD’s). The District has an inter-local agreement with the City of Katy to participate in a Tax Increment Reinvestment Zone (TIRZ). Maintenance and Operation (M&O) taxes collected on real property located within the reinvestment zone are contributed to the TIRZ and used to service bonded debt on a multipurpose facility located with the zone. Tax contributions exceeding the annual debt requirements and related expenses are returned to the District to be used within the TIRZ at the discretion of the District. Technology is a high priority with expenditures focused on equipping new schools, the replacement of equipment in existing schools, and providing new and updated software. The technology strategic plan and long-range facility plan continue to be reviewed and modified as necessary to ensure continued support and integration of technology both at the campus and support facilities. State legislation passed in 2005 reduced the District’s M&O tax rate from $1.63 to $1.445 in 2006-07 and to $1.0866 in 2007-08. School Boards are given local discretion to increase the M&O tax rates by four cents without holding an election. The District’s 2011-12 M&O tax rate maintains the additional four cent increase originally adopted in 2006-07. The tax rates per $100 of assessed value at 100% of market value since the legislative change are as follows:

2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06

General Fund 1.1266$ 1.1266$ 1.1266$ 1.1266$ 1.1266$ 1.4850$ 1.6300$ Debt Service Fund 0.4000 0.4000 0.4000 0.4000 0.4000 0.3300 0.3700 Total 1.5266$ 1.5266$ 1.5266$ 1.5266$ 1.5266$ 1.8150$ 2.0000$

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CASH MANAGEMENT POLICIES AND PRACTICES It is the practice of the District to pursue an active cash management program which stresses safety of principal and interest while generating favorable rates of return. This program is maintained in such a fashion so as to provide a sufficient level of liquidity to support anticipated expenditures without subjecting the District to material, unfavorable fluctuations of market and interest rate risk. Direct purchases of U.S. Treasury or Agency securities are competitively bid and invested in accordance with statutory guidelines and local District policy. The District’s investments also include participation in local government investment pools. This provides liquidity and additional diversification of the investment portfolio. Furthermore, the District expedites the receipt of revenues via electronic transfer and the utilization of lockbox accounts and defers expenditures, when appropriate, to maintain maximum use of funds. The total amount of investment income earned by the District for the fiscal year ended August 31, 2012 was $1.2 million. RISK MANAGEMENT The objectives of the risk management program are to safeguard the assets of the District, minimize the financial effect of potential losses, and to provide a reasonable level of employee benefits at an affordable funding level. Through these processes, Risk Management will strive to provide a safe and orderly learning environment for students, employees and patrons. The District’s property and casualty insurance is provided by national commercial carriers. In addition, Workers’ Compensation risks are self-funding and include the purchase of an excess Workers’ Compensation policy for coverage related to excessive Workers’ Compensation claims. Various types of insurance coverages are made available to the employees. Similar to Workers’ Compensation, the District’s medical insurance program is self-funded and includes the purchase of stop loss insurance for excessive claims. Portions of the coverages available, such as medical and life insurance are partially paid by the District. Other available benefits offered to employees on a voluntary basis include dental, vision, supplemental cancer, disability insurance, personal legal, Section 125 flexible spending accounts for qualified medical and dependent care expenses, and group term life as well as dependent and supplemental life policies. AWARDS AND ACKNOWLEDGEMENTS Financial Reporting Awards Katy ISD was awarded the Texas Comptroller of Public Account’s Gold Leadership Award that spotlights local government financial transparency. The award recognizes districts that keep their books open to the public; provide clear, consistent pictures of spending; and shares information in a user-friendly format that lets taxpayers easily access additional information. For the tenth consecutive year, the District scored the highest possible rating of “Superior Achievement” for the Schools FIRST (Financial Integrity Rating System of Texas), a financial accountability system for Texas School Districts developed by the Texas Education Agency in response to Senate Bill 875 of the 76th Texas Legislature in 1999. The primary goal of Schools FIRST is to ensure quality performance in the management of school districts’ financial resources, a goal made more significant due to the complexity of accounting associated with the Texas school finance system. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the District for its CAFR for the fiscal year ended August 31, 2011 the twenty-ninth consecutive year that the District has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and

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efficiently organized Comprehensive Annual Financial Report. The report must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current Comprehensive Annual Financial Report continues to meet the requirements of the Certificate of Achievement program and are submitting it to the GFOA to determine its eligibility for certification. Additionally, the District was awarded the Certificate of Excellence in Financial Reporting by the Association of School Business Officials International (ASBO) for its Comprehensive Annual Financial Report for the year ended August 31, 2011. This award has also been received for twenty-nine consecutive years. We believe the Comprehensive Annual Financial Report for the year ended August 31, 2012 continues to conform to the standards for which this award was granted. Acknowledgements We appreciate the support of the Board, the residents of the District, and the business community, all who work cooperatively to ensure the best education for its students and the prudent development of the District. This cooperation is indicative of the strong support for the attainment of excellence in the District’s education programs. Also, we would like to express an appreciation to all employees in the District for their interest and support in planning and conducting the financial affairs of the District in a responsible and progressive manner. Finally, a special thanks to the Finance Department for its diligence and dedicated service in helping prepare this report on a timely basis. ____________________________________ __________________________________ Alton L. Frailey William L. Moore Superintendent Chief Financial Officer ____________________________________ __________________________________ Christopher J. Smith Coreen T. Miller Business Manager Accounting Supervisor ____________________________________ Anne M. Faichtinger Finance Officer

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CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING

The Government Finance Officers Associate of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Katy Independent School District, Texas for its Comprehensive Annual Financial Report for the fiscal year ended August 31, 2011. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. Such reports must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements. Receiving the award is recognition that a school system has met the highest standards of excellence in government accounting and financial reporting.

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CERTIFICATE OF EXCELLENCE IN

FINANCIAL REPORTING The Association of School Business Officials International (ASBO) awarded a Certificate of Excellence in Financial Reporting to Katy Independent School District for its Comprehensive Annual Financial Report for the fiscal year ended August 31, 2011. The Certificate of Excellence in Financial Reporting is an award of recognition granted by ASBO. The award certifies that the recipient school system has presented its Comprehensive Annual Financial Report to the ASBO Panel of Review for critical review and evaluation and that the report was judged to have complied with the principles and practices of financial reporting recognized by ASBO. Receiving the award is recognition that a school system has met the highest standards of excellence in school financial reporting.

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Katy Independent School District Harris 101-914Name of School District County County District

No.

We, the undersigned, certify that the attached annual financial reports of the above named school district

were reviewed and approved for the year ended August 31, 2012 at a meeting of the Board of Trustees of

such school district on the 22nd day of January 2013.

Signature of Board President

Certificate of Board

Signature of Board Vice President

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COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED AUGUST 31, 2012

PRINCIPAL OFFICIALS AND ADVISORS

Board of Trustees

Rebecca Fox .......................................................................................................................................... President Volunteer Joe M. Adams .............................................................................................................................. Vice President Business Owner Henry Dibrell ........................................................................................................................................ Secretary Business Executive Brian Michalsky ................................................................................................................................... Treasurer Business Executive Charles Griffin ....................................................................................................................... Sergeant-At-Arms Commercial Pilot Terry Huckaby ....................................................................................................................................... Member Educator Bill Proctor ............................................................................................................................................. Member Retiree

Administrative Staff Alton L. Frailey............................................................................................................................ Superintendent William L. Moore, CPA ................................................................................................. Chief Financial Officer Thomas Gunnell ........................................................................................................... Chief Operations Officer Christine Caskey, Ed.D. ................................................................................................ Chief Academic Officer Lenny J. Schad ........................................................................................................... Chief Information Officer

Accountants and Advisors Whitley Penn, L.L.P. ............................................................................................................................ Auditors Houston, Texas Andrews Kurth, L.L.P. ................................................................................................................. Bond Counsel Houston, Texas RBC Capital Markets ............................................................................................................ Financial Advisors Dallas, Texas

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Houston Offi ce

3411 Richmond Avenue

Suite 500

Houston, Texas 77046

713.621.1515 Main

whitleypenn.com

An IndependentMember of

Dallas Fort Worth Houston

1

REPORT OF INDEPENDENT AUDITORS To the Board of Trustees Katy Independent School District Katy, Texas We have audited the accompanying financial statements of the governmental activities, each major fund and the aggregate remaining fund information of Katy Independent School District (the “District”) as of and for the year ended August 31, 2012, which collectively comprise the District’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the District’s management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the District as of August 31, 2012, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated January 22, 2013, on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of law, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.

2

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information on pages 3 through 13 and 74 through 76 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of the financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s response to our inquiries, the basic financial statements, and other knowledge we obtained during the audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements as a whole. The introductory section; other supplementary information, which includes the comparative statements, combining statements and budgetary comparisons; capital assets used in the operations of governmental funds, general long-term debt on governmental funds and Texas Education Agency (TEA) compliance schedules; and the statistical section, as listed in the table of contents are presented for the purposes of additional analysis and are not a required part of the financial statements. The other supplementary information, which includes the comparative statements, combining statements and budgetary comparisons; capital assets used in the operations of governmental funds, general long-term debt on governmental funds and Texas Education Agency (TEA) compliance schedules as listed in the table of contents are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Houston, Texas January 22, 2013

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MANAGEMENT’S DISCUSSION AND ANALYSIS Our discussion and analysis of Katy Independent School District’s (the District) financial performance provides an overview of the District’s financial activities for the twelve months ended August 31, 2012. It should be read in conjunction with the information in the letter of transmittal and the District’s financial statements. FINANCIAL HIGHLIGHTS As stated in the Government-wide Financial Statements, the assets and deferred outflows of resources of the District exceeded the liabilities and deferred inflows of resources at August 31, 2012 by $188.5 million. Of this amount, $114.3 million is unrestricted. The $188.5 million of the District’s total net position represents an increase of $24.6 million from $163.9 million in fiscal year 2011. Total revenues decreased $7.8 million to $590.5 million in fiscal year 2012. The District’s Governmental Fund Financial Statements reported a combined ending fund balance in fiscal year 2012 of $268.7 million. The total fund balance for the General Fund was $126.9 million or 30.7% of the total General Fund expenditures of $413.6 million. The Debt Service Fund ended its year with a fund balance of $43.8 million which is to be used for the retirement of debt. The Capital Projects Fund ended the year with a fund balance of $85.5 million which is restricted for school district construction projects. All other Governmental Funds had fund balances totaling $12.5 million. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the District’s Basic Financial Statements. The District’s basic financial statements are comprised of three components: 1) Government-wide Financial Statements, 2) Fund Financial Statements, and 3) Notes to the Basic Financial Statements. This report also contains required supplementary information and other supplementary information in addition to the basic financial statements themselves, including schedules required by the Texas Education Agency (TEA). Government-wide Financial Statements All the District’s services are reported in the Government-wide Financial Statements, including instruction, student transportation, general administration, school leadership, facilities acquisition and construction, and child nutrition services. Property taxes, state aid, federal aid, and investment earnings finance most of the activities. Additionally, all capital and debt financing activities are reported here. Government-wide Financial Statements are designed to provide readers a broad overview of the District’s finances in a manner similar to a private-sector business. Statement of Net Position presents information on all of the District’s assets, liabilities and deferred outflows/inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. Statement of Activities presents information showing how the District’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event causing the change occurs, regardless of the timing of related cash flows. Therefore, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and unused leave retirement bonuses). The Government-wide Financial Statements distinguish functions of the District that are principally supported by taxes and revenues from other functions intended to recover all or a significant portion of their costs through user fees and charges.

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Government-wide Financial Statements can be found on pages 17-19. Fund Financial Statements The District uses fund accounting to track specific sources of funding and spending for particular purposes. A fund is an accounting device used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the District’s funds can be divided into three categories: Governmental Funds, Proprietary Funds, and Fiduciary Funds. The Fund Financial Statements provide more detailed information about the District’s most significant funds, not the District as a whole. Governmental Funds are used to account for essentially the same functions reported as government activities in the Government-wide Financial Statements. Most of the District’s activities 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 that are available for spending at year-end. Consequently, the Governmental Fund Statements provide a detailed short-term view that helps determine whether more or fewer financial resources can be spent in the near future to finance the District’s programs. Because this information does not encompass the additional long-term focus of the Government-wide Statements, additional information is provided in Figure A-1 to explain the relationship between them. The District maintains 36 governmental funds. Information is presented separately in the Governmental Fund Balance Sheet and in the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances for the General Fund, Debt Service Fund, and Capital Projects Fund which are considered to be major funds. Data from the other government funds are combined in a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in the financial statements. The District adopted an annual appropriated budget for the General Fund, Debt Service Fund, Food Service Fund, and Education Jobs Fund. A budgetary comparison schedule has been provided to demonstrate compliance with these budgets. The basic Governmental Fund Financial Statements can be found on pages 20-26 of this report. Proprietary Funds are used to account for operations that are financed similar to those found in the private sector. These funds provide both short-term and long-term financial information. There are two types of proprietary funds.

The first type is the Enterprise Fund, which is used to report the same functions presented as business type activities in the Government-wide Financial Statements. In the Enterprise Fund, the District charges outside customers a fee for services the District provides. The District has no business-type activities or enterprise funds. The second type is the Internal Service Fund, which is used to accumulate and allocate costs internally among the various functions. Internal Service Funds are used to support governmental activities such as the District’s Workers’ Compensation, Health Insurance, Auto Liability, and Print Shop funds. These four funds are combined into a single aggregated presentation in the Proprietary Fund Financial Statements found on pages 27-29 of this report.

Fiduciary Funds are used to account for assets held by the District in a trustee capacity or as an agent for individuals, private organizations, and other funds. The District is responsible for ensuring that the assets reported in these funds are used for their intended purposes. All of the District’s fiduciary activities are reported in a separate Statement of Net Assets and Statement of Revenues, Expenses, and Changes in Fund Net Assets. The Fiduciary Funds are excluded from the activities in the District’s Government-wide Financial Statements because the District cannot use these assets to finance its operations.

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The basic Fiduciary Fund Financial Statements can be found on page 30 of this report. Notes to the Financial Statements The notes provide additional information essential to a complete understanding of the data provided in the Government-wide and Fund Financial Statements. The notes can be found on pages 31-72 of this report. Required Supplementary Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information that further explains and supports the information in the financial statements. The required supplementary information relates to comparison of the original adopted budget, the final amended budget, and the actual expenditures for the fiscal year. This is required supplementary information for the General Fund and any major special revenue funds. The District did not have any major special revenue funds; therefore, only the General Fund is presented as required supplementary information. Required Supplementary Information can be found on pages 74-76 of this report. Other Supplementary Information Other Supplementary Information provides additional analysis and is not a required part of the basic financial statements. Other supplementary information includes comparative information on selected funds and additional detail of the General Fund’s revenues and expenditures. It also contains the combining statements referred to earlier in connection with non-major governmental funds and certain compliance schedules required by state regulatory agencies. The Other Supplementary Information can be found on pages 82-151 of this report. The remainder of this overview section of the Management’s Discussion and Analysis explains the structure and contents of each of the statements. Figure A-1 summarizes the major features of the District’s financial statements, including the portion of the District covered and the types of information contained.

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Figure A-1. Major Features of the District’s Government-wide and Fund Financial Statement

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

ScopeEntire District's government (except fiduciary funds)

The activities of the District that are not proprietary or fiduciary

Actvities the District operates similar to private business

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

Statement of net position Balance sheet Statement of net assetsStatement of fiduciary net assets

Statement of revenues, expenses, and changes in fund net assets

Statement of cash flows

Accounting basis and measurement focus

Accrual accounting and economic resources focus

Modified accrual accounting and current financial resources focus

Accrual accounting and economic resources focus

Accrual accounting and economic resouces focus

Type of asset/liability information

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

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

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

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

Type of inflow/outflow information

All revenues and expenses during year, regardless of when cash is received or paid

Revenues for which cash is received during or soon after the end of the year; expenditures when goods or services have been received and payment is due during the year or soon thereafter



Funds Statements

Required financial statements

Statement of activities

Statement of revenues, expenditures, and changes in fund balances

Statement of changes in fiduciary net assets

GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net position can serve as a useful indicator of the District’s financial position. The District’s total net position increased to $188.5 million at August 31, 2012. At the end of the current fiscal year, 60.7% of the District’s net position is unrestricted and are resources available to fund the District’s programs in the following year. An additional $18.0 million, or 9.6% of the District’s net position, reflect its investment in capital assets (e.g. land, building and improvements, and furniture and equipment) less any related debt used to acquire those assets still outstanding. These assets are not available for future spending. The remaining balance of net position represents resources subject to external restrictions on how they may be use. The District’s net position increased $24.6 million during the current fiscal year. The changes in net position are illustrated in Table I.

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2012 2011 Change

Current and Other Assets 364,216,012$ 356,319,605$ 7,896,407$ Capital Assets 1,146,351,169 996,752,631 149,598,538Total Assets 1,510,567,181 1,353,072,236 157,494,945Total Deferred Outflows of Resources 43,651,540 31,698,963 11,952,577

Long-Term Liabilities 1,298,010,648 1,102,737,366 195,273,282Other Liabilities 65,090,040 86,450,432 (21,360,392)Total Liabilities 1,363,100,688 1,189,187,798 173,912,890Total Deferred Inflows of Resources 2,596,012 31,698,963 (29,102,951)

Net Position:Net Investment in

Capital Assets 17,995,023 21,482,594 (3,487,571)Restricted 56,177,142 53,397,875 2,779,267Unrestricted 114,349,856 89,003,969 25,345,887

Total Net Position 188,522,021$ 163,884,438$ 24,637,583$

Governmental Activities

Net Position SummaryTable I

Governmental Activities The net position of the District’s Governmental Activities increased by $24.6 million. This increase is evidence that the overall financial condition of the District continues to be strong. The total cost of all Governmental Activities for the fiscal year ended August 31, 2012 was $565.9 million. Funding for these Governmental Activities is by specific program revenue or through general revenues such as property taxes and investment earnings. The following is a summary of the governmental activities:

The total revenues of all governmental activities were $590.5 million. The amount paid by the District’s taxpayers for these activities through property taxes was $315.1 million or 53.4%.

The District’s tax rate of $1.5266 per $100 of assessed value was unchanged from the previous fiscal year. With a 4.6% increase in total assessed valuation, maintaining the tax rate increased the District’s tax revenues $12.7 million in 2012.

The cost of all governmental activities as $565.9 million, a decrease of $7.8 million from fiscal year 2011. Despite an increase of 1,626 students, expenses decreased in most functions because of reduced staffing and other budget reductions made necessary by the State’s reduction in funding public education.

The amount paid by those directly benefiting from programs was $19.6 million which was $61,898 less than the prior year.

The amount paid by grants and contributions was $80.0 million which was a 14.0% less than the $93.0 million in 2011.

The cost of governmental activities not directly funded by program revenue was $466.3 million, which was $24.6 million less than general revenues of $490.9 million. Of the $490.9 million in general revenues, 64.2% was funded by property taxes and 35.4% was from state aid not restricted to specific programs.

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2012 2011 Change Change %Revenues:

Program Revenues:Charges for Services 19,588,686$ 19,650,584$ (61,898)$ (0.31) %Operating Grants and Contributions 79,989,475 92,971,578 (12,982,103) (13.96)

General Revenues: Property Taxes 315,100,360 302,377,165 12,723,195 4.21 State Revenues 173,734,050 181,203,466 (7,469,416) (4.12) Other 2,098,889 2,058,769 40,120 1.95

Total Revenues 590,511,460 598,261,562 (7,750,102) (1.30)

Expenses:Instruction 311,062,572 321,361,278 (10,298,706) (3.20) Instructional Resources and Media Services 8,525,841 8,694,209 (168,368) (1.94) Curriculum and Staff Development 6,942,069 8,323,619 (1,381,550) (16.60) Instructional Leadership 3,798,441 4,078,594 (280,153) (6.87) School Leadership 28,339,372 29,459,540 (1,120,168) (3.80) Guidance, Counseling and Evaluation 19,103,538 19,932,124 (828,586) (4.16) Health Services 4,932,619 5,410,272 (477,653) (8.83) Student Transportation 16,917,348 16,776,762 140,586 0.84 Food Services 26,234,107 25,802,502 431,605 1.67 Cocurricular/Extracurricular Activities 11,808,768 12,465,039 (656,271) (5.26) General Administration 9,799,768 10,142,271 (342,503) (3.38) Plant Maintenance and Operations 45,314,890 48,326,942 (3,012,052) (6.23) Security and Monitoring 4,893,473 5,162,174 (268,701) (5.21) Data Processing Services 11,368,931 11,894,172 (525,241) (4.42) Community Services 1,278,824 1,159,882 118,942 10.25

50,383,193 41,206,516 9,176,677 22.27 Facilities Acquisition and Construction 2,103,510 623,871 1,479,639 237.17 Payments to Shared Services Arrangements 232,862 300,087 (67,225) (22.40) Payments to JJAEP 32,924 47,890 (14,966) (31.25) Payments to Tax Increment Reinvestment Zone 452,731 306,098 146,633 47.90 Payments to Appraisal District 2,348,096 2,242,299 105,797 4.72

Total Expenses 565,873,877 573,716,141 (7,842,264) (1.37)

Increase (Decrease) in Net Position 24,637,583 24,545,421 92,162 0.38

Beginning Net Position 163,884,438 139,339,017 24,545,421 17.62

Ending Net Position 188,522,021$ 163,884,438$ 24,637,583$ 15.03 %

Interest and Issuance Costs on Long-Term Debt


Changes in Net PositionTable II

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Figure A-2 Revenues by Source – Governmental Activities

53.4%

29.4%

13.5%3.3%

0.4%

Property Taxes

State Aid Formula

Operating Grants & Contributions

Charges for Services

Other

Figure A-3 Program Expenses by Major Function – Governmental Activities

In Millions

$326.5

$32.1

$79.0

$9.8

$61.6

$6.5

$50.4

$0

$50

$100

$150

$200

$250

$300

$350Instruction & InstructionalRelated

Instructional & SchoolLeadership

Support Services - Student

Administrative Support Services

Support Services - Non-Student

Ancillary Services

Debt Service

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FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS Governmental Funds The District’s accounting records for general governmental operations are maintained on a modified accrual basis as prescribed by the Financial Accountability System Resource Guide, Texas Education Agency, with the revenues being recorded when available and measurable to finance expenditures of the fiscal period. Expenditures are recorded when services or goods are received and the fund liabilities are incurred. The general governmental operations include the following major funds: General, Debt Service, and Capital Projects. Revenues from all Governmental Funds totaled $586.8 million for the fiscal year ended August 31, 2012, a reduction of 2.5% from the prior fiscal year. Local revenues, including property taxes, continued to be the largest source of revenue received by the District and increased $10.9 million over fiscal year 2011. The reduction in State revenues of $11.1 million or 5.2% from fiscal year 2011 was primarily a result of the state budget reductions, despite the increase in enrollment. Federal revenues decreased $14.5 million or 33.4%. This decrease in Federal revenues was primarily a result of the loss of Title I, Title II, IDEA B and State Fiscal Stabilization Funds (SFSF) all of which were part of the American Recovery and Reinvestment Act of 2009 (ARRA). Expenditures for governmental operations totaled $758.3 million during fiscal year 2012, an increase of 11.6% from fiscal year 2011. This increase was a result of the increased expenditures for capital projects of $105.6 million. The Governmental Funds reported a combined fund balance of $268.7 million, a reduction of $14.6 million from the combined fund balances for 2011. Changes to the combined fund balances include a $27.6 million increase in the General Fund, an increase in the Debt Service Fund of $3.8 million, a reduction in the Capital Projects fund of $44.8 million and a decrease of $1.2 million in the Other Governmental Funds. Out of the combined fund balances, $85.8 million constitutes unassigned fund balances. Of the remainder of the fund balance, $1.5 million is nonspendable, $138.8 million is restricted for items such as debt service, food services, and capital projects, $7.8 million is committed to self-funded insurance and campus activity funds, and $34.9 million is assigned for the opening of new schools, land purchases, employer mandate provisions of the Patient Protection and Affordable Care Act, and future technology needs. The General Fund is the primary operating fund of the District. The most significant factor contributing to the increase of fund balance was the under spending of payroll and related costs combined with campus and departments under spending their budgets. At the end of the current fiscal year, the General Fund’s fund balance was $126.9 million. Unassigned fund balance represents 20.7% of the total General Fund expenditures, and total fund balance represents 30.7%. The Debt Service Fund ended the year with a fund balance of $43.8 million, all of which was restricted for the payment of debt service. The district makes semi-annual debt service payments in February and August of each year. Debt service payments including bond fees for the year ended August 31, 2012 were $88.4 million. The Capital Projects Fund ended the year with a fund balance of $85.5 million which is a decrease of $44.8 million over 2011. This reduction in fund balance was due to construction expenditures associated with ongoing construction projects. The entire fund balance is restricted for future construction.

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Proprietary Funds The District maintains four internal service funds. Information is presented separately in the Proprietary Funds Combining Statement of Net Assets and in the Proprietary Funds Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets for the Health Insurance, Workers’ Compensation, Auto Liability, and Print Shop Funds. Net assets in these funds as of August 31, 2012 were $6.8 million. Of this amount, $0.9 million was for Health Insurance, $3.6 million was for Workers’ Compensation, $2.3 million for the Print Shop, and the Auto Liability Fund had no net assets. Net assets for the fiscal year decreased $1.4 million. GENERAL FUND BUDGETARY HIGHLIGHTS Over the course of the year, the District revised its budget several times. Revisions to the revenue budget were necessary due to changes in estimates for local and state revenue based on updated information relating to tax collections, earnings on investments, student attendance and rental income. Revisions to the expenditure budget were necessary to reflect the utilization of Education Jobs Funding, actual expenditures associated with staffing, fluctuation in spending needs, and various other unforeseen occurrences.

The District’s major budget amendments presented to the Board of Trustees throughout the year are summarized as follows:

The total General Fund revenue budget was decreased by $9.0 million.

The local revenue budget increased by $0.4 million. Current and delinquent property tax collections increased $1.1 million and associated penalty and interest increased $0.4 million. This $1.5 million increase was partially offset by a $1.1 million reduction in budgeted ticket sales, facility rental income, interest earnings, and other miscellaneous revenues.

The state revenue budget decreased $1.3 million primarily due to state revenue offset caused by increases in local property tax revenues due to increased property values and the increase in property tax collections. In addition, TRS On-Behalf revenues were revised to reflect amounts based on actual payroll costs.

Federal revenue decreased by $8.2 million, including $9.3 million to recognize the reclassification of Education Jobs Fund to the Special Revenue Fund. There were also increases of $0.8 million to recognize indirect costs associated with the Food Service Fund, $0.2 million in additional SHARS revenues, and $0.1 million in other federal revenues.

Although the district increased the expenditure budget throughout the year for various items, the expenditure budget was reduced by $18.2 million. Included in the decrease was $9.6 million due to the reclassification of the Education Jobs Fund to the Special Revenue Fund and $8.6 million to reflect payroll vacancies, turnover in positions, and general underspending in contracted services, supplies, travel and other operating costs, and capital outlay.

After revenue and expenditure budgets were adjusted as described above, the District’s actual General Fund amounts differed from the final budget as reported in the budgetary comparison on pages 72-75 of this report. This difference is primarily due to the following factors:

Final revenues realized were under budgeted levels by $0.9 million. Revenues from local sources exceeded the budget by $0.3 million while revenues from state sources were under budget by $0.2 million. Federal Revenues were under the budget by $1.0 million due to eRate revenues not received until after fiscal year end.

Expenditures were $11.0 million less than final budgeted amounts. Remaining unspent were payroll and related costs of $8.3 million, supplies of $0.9 million, contracted services of $0.6 million, other operating expenditures of $0.6 million and capital of $0.6 million.

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CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets The District has invested $1.15 billion, net of depreciation, in a broad range of capital assets, including land, equipment, buildings, and vehicles. This amount represents a net increase (including additions, deductions and depreciation) of $149.6 million from the prior year.

2012 2011 Change PercentageLand 71,402,749$ 70,658,230$ 744,519$ 1.05 %Land Improvements 29,066,219 29,562,447 (496,228) (1.68) Buildings and Improvements 846,342,136 755,443,152 90,898,984 12.03 Furniture and Equipment 67,968,059 60,366,792 7,601,267 12.59 Vehicles 21,438,112 19,247,346 2,190,766 11.38 Construction in Progress 89,672,665 40,505,653 49,167,012 121.38 Assets Under Capital Lease 20,461,229 20,969,011 (507,782) (2.42)

Total Capital Assets, Net of Depreciation 1,146,351,169$ 996,752,631$ 149,598,538$ 15.01 %


Capital Assets (net of depreciation)Table III

The increase in capital assets net of depreciation was due mainly to construction in progress as a result of the bond election passed in November 2010. In addition, the acquisition and improvements to land combined with the addition of furniture, equipment and vehicles all led to the increase in capital assets. More detailed information about the District’s capital assets is presented in Note 8 to the financial statements. Debt Administration At the end of the fiscal year the District had total debt outstanding of $1.3 billion as illustrated in Table IV. This amount consists primarily of general obligation bonds backed by the full faith of the State of Texas’s Permanent School Fund. The District’s debt includes capital appreciation bonds which accrete interest until their maturity date. Total accreted interest on these capital appreciation bonds totaled $9.4 million at the end of the fiscal year. Included in the outstanding debt of the District for financial reporting purposes is the Capital Lease for the multi-purpose complex constructed for the District by the Katy Development Authority through a Tax Increment Reinvestment Zone (TIRZ). The $17.4 million capital lease will be paid from property taxes collected through the TIRZ. The District’s bonds are rated AAA by Standard & Poor’s (S&P) and Aaa by Moody’s Investor Service (Moody’s) based on the guarantee of the Permanent School Fund of the State of Texas. The District’s underlying ratings are AA by Standard & Poor’s and Aa2 by Moody’s Investor Service. More detailed information about the District’s debt is presented in Notes 9 and 10 to the financial statements.

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2012 2011 Change

General Obligation Bonds 1,165,099,961$ 1,077,256,097$ 87,843,864$ Accreted Interest on Capital

Appreciation Bonds 9,409,109 9,711,419 (302,310)Capital Leases 17,360,000 19,645,000 (2,285,000)Compensated Absences 19,516,454 18,503,226 1,013,228Imputed Borrowing 43,651,540 43,651,540Premium on Bonds Issued 34,552,367 14,690,362 19,862,005Deferral on Bond Refunding 8,421,217 (480,632) 8,901,849

Total Outstanding Debt 1,298,010,648$ 1,139,325,472$ 158,685,176$

Table IVOutstanding Debt


ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES As part of the budget development process the District’s management has taken into consideration all the factors that drive school district budgets: enrollments, property values, state funding, facility needs and the local economy. The State’s reduction to public education reduced the District’s state funding for 2012-13 by approximately $15 million or 3.5% under what it would have received under old law. However, this reduction is substantially less than the District faced in 2011-12. Fortunately in 2012-13 the District moves away from being a “Target Revenue” to a “Formula” District, enabling the District to benefit from growth in property values and the resulting increased tax revenues. The District has maintained reductions in its expenditure budget to offset the state’s reduction to public education. Although growth has slowed slightly, Katy ISD continues to be one of the fastest growing school districts in the Houston metropolitan area, growing at an average of 5.2% from 2003 to 2012 with the 2012-13 enrollment projected to be 64,059 students. The District has also experienced significant growth in property values over the past ten years with assessed values increasing at an average of 9.9% annually. Unemployment continues to remain low in all geographical areas of the District. All of these factors were considered when adopting the 2012-13 budget. With a total tax rate of $1.5266, the District estimates budgeted revenues of $583.1 million and appropriations of $577.4 million, of which $467.3 million of revenues and $457.6 million of expenditures are in the General Fund. There are no major initiatives or new programs included in the 2012-13 budget. CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the District’s finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Chief Financial Officer, Katy I.S.D., 6301 South Stadium Lane, P.O. Box 159, Katy, Texas 77492.

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BASIC FINANCIAL STATEMENTS

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KATY INDEPENDENT SCHOOL DISTRICTSTATEMENT OF NET POSITION Exhibit A-1AUGUST 31, 2012

Data Primary GovernmentControl Governmental Codes Activities

ASSETS1110 Cash and Investments 330,448,154$ 1110 Property Taxes Receivable 12,659,1391230 Allowance for Uncollectible Taxes (2,789,320)1240 Due from Other Governments 7,791,6861290 Other Receivables (net) 1,187,9791300 Inventories, at cost 1,332,7211410 Deferred Expenses 343,4101420 Capital Bond and Other Debt Issuance Costs 10,646,231

Capital Assets not Being Depreciated:1510 Land 71,402,7491580 Construction in Progress 89,672,665

Capital Assets, net of Accumulated Depreciation:1511 Land Improvements, net of Accumulated Depreciation 29,066,2191520 Buildings and Improvements, net of Accumulated Depreciation 846,342,1361530 Furniture and Equipment, net of Accumulated Depreciation 67,968,0591540 Vehicles, net of Accumulated Depreciation 21,438,1121550 Assets Under Capital Lease, net of Accumulated Depreciation 20,461,2291990 Interest Rate Swaps 2,596,0121000 Total Assets 1,510,567,181

DEFERRED OUTFLOWS OF RESOURCES1990 Deferred Amount on Refunding 43,651,5401000 Total Deferred Outflows of Resources 43,651,540

LIABILITIES 2110 Accounts Payable 36,919,3612140 Interest Payable 2,593,3712150 Payroll Deductions and Withholdings 637,2302160 Accrued Wages Payable 5,479,3482180 Due to Other Governments 17,709,6082200 Accrued Expenses 1,540,3222300 Unearned Revenue 210,800

Noncurrent Liabilities:2501 Compensated Absences Due within One Year 570,0122501 Bonds and Debt Due within One Year 35,255,0002501 Capital Lease Due within One Year 1,115,0002501 Imputed Borrowing Due within One Year 2,600,5832502 Bonds and Debt Due in More than One Year 1,172,818,5452502 Capital Lease Due in More than One Year 16,245,0002502 Compensated Absences Due in More than One Year 18,946,4422502 Imputed Borrowing Due in More than One Year 41,050,9572590 Accreted Interest on Capital Appreciation Bonds 9,409,1092000 Total Liabilities 1,363,100,688

DEFERRED INFLOWS OF RESOURCES2502 Deferred Inflows: Interest Rate Swap 2,596,012

Total Deferred Inflows of Resources 2,596,012

NET POSITION3200 Net Investment in Capital Assets 17,995,023

Restricted for:3840 Food Service 5,833,9053850 Debt Service 43,645,8503890 Tax Increment Zone 3,779,0403870 Campus Activities 2,807,3083890 Medicaid Administrative Claiming 111,0393900 Unrestricted 114,349,8563000 Total Net Position 188,522,021$

See Notes to Financial Statements

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KATY INDEPENDENT SCHOOL DISTRICTSTATEMENT OF ACTIVITIESFOR THE YEAR ENDED AUGUST 31, 2012

Data Program RevenuesControl Charges for Operating GrantsCodes Functions/Programs Expenses Services and Contributions

Governmental Activities:0011 Instruction 311,062,572$ 907,065$ 40,389,183$ 0012 Instructional Resources and Media Services 8,525,841 4,429 990,2330013 Curriculum and Staff Development 6,942,069 4,689 2,712,3630021 Instructional Leadership 3,798,441 1,155 543,9750023 School Leadership 28,339,372 3,868 1,907,0450031 Guidance, Counseling, and Evaluation Services 19,103,538 5,503 2,928,2630033 Health Services 4,932,619 649 2,354,5130034 Student Transportation 16,917,348 60,940 570,2110035 Food Services 26,234,107 10,456,147 11,739,9080036 Cocurricular/Extracurricular Activities 11,808,768 1,952,969 1,050,7830041 General Administration 9,799,768 231,540 637,3660051 Plant Maintenance and Operations 45,314,890 2,426,812 4,275,6720052 Security and Monitoring Services 4,893,473 14,413 253,4530053 Data Processing Services 11,368,931 43,465 340,9460061 Community Services 1,278,824 149,276 800,2760071 Interest on Long-Term Debt 45,525,829 7,877,7110073 Bond Issuance Costs and Fees 4,857,3640081 Facilities Acquisition and Construction 2,103,510 3,325,766 384,7120093 Payments Related to Shared Services Arrangements 232,862 232,8620095 32,924 0097 Payments to Tax Increment Reinvestment Zone 452,731 0099 Payments to Appraisal Districts 2,348,096TG Total Governmental Activities 565,873,877 19,588,686 79,989,475TP TOTAL PRIMARY GOVERNMENT 565,873,877$ 19,588,686$ 79,989,475$

Data Control Codes

General Revenues:MT Property Taxes, Levied for General PurposesDT Property Taxes, Levied for Debt ServiceSF State Aid - Formula Grants UnrestrictedIE Investment EarningsMI Miscellaneous TG Total General Revenues CN Change in Net PositionNB Net Position - BeginningNE Net Position - Ending

See Notes to Financial Statements.

Payments to Juvenile Justice Alternative Education Programs

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Exhibit B-1

Net (Expense)Revenue and

Changes in Net Position


(269,766,324)$ (7,531,179) (4,225,017) (3,253,311)

(26,428,459) (16,169,772)

(2,577,457) (16,286,197)

(4,038,052) (8,805,016) (8,930,862)

(38,612,406) (4,625,607)

(10,984,520) (329,272)

(37,648,118) (4,857,364) 1,606,968

(32,924)

(452,731) (2,348,096)

(466,295,716)(466,295,716)

232,528,59482,571,766

173,734,0501,152,421

946,468490,933,29924,637,583

163,884,438188,522,021$

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KATY INDEPENDENT SCHOOL DISTRICTBALANCE SHEETGOVERNMENTAL FUNDSAUGUST 31, 2012

DataControlCodes General Debt Service Fund

ASSETS1110 Cash and Investments 152,359,584$ 44,573,042$

Receivables:1220 Property Taxes-Delinquent 9,692,828 2,966,3111230 Allowance for Uncollectible Taxes (2,156,407) (632,913)1240 Due from Other Governments 68,1681250 Accrued Interest 7,5721260 Due from Other Funds 3,717,795 222,2611290 Other Receivables 818,7791300 Inventories, at cost 1,005,3861410 Deferred Expenditures 231,458

1000 Total Assets 165,737,591$ 47,136,273$

LIABILITIESCurrent Liabilities:

2110 Accounts Payable 8,001,239$ 51,329$ 2140 Interest Payable 79,3472150 Payroll Withholding Payable 637,2292160 Accrued Wages Payable 5,182,4972170 Due to Other Funds2180 Due to Other Governments 16,863,885 845,7232200 Accrued Expenditures 409,5772300 Deferred Revenues 7,736,982 2,333,3982000 Total Liabilities 38,831,409 3,309,797

FUND BALANCESFund Balances:

3410/30 Nonspendable 1,236,8443450-90 Restricted 43,826,4763510-45 Committed 5,000,0003550-90 Assigned 34,873,093

3600 Unassigned 85,796,2453000 Total Fund Balances 126,906,182 43,826,476

4000 Total Liabilities and Fund Balances 165,737,591$ 47,136,273$


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Exhibit C-1

Captial Projects Other TotalFund Governmental Funds Governmental Funds

109,292,744$ 13,521,399$ 319,746,769$

12,659,139(2,789,320)

292,700 4,269,789 4,630,6577,572

3,373,007 7,313,063346,853 1,165,632239,268 1,244,654

70,793 302,251

109,585,444$ 21,821,109$ 344,280,417$

24,044,243$ 1,792,246$ 33,889,057$ 79,347

637,22913,552 283,298 5,479,34769,669 7,204,034 7,273,703

17,709,608409,577

10,239 10,080,61924,127,464 9,289,817 75,558,487

239,268 1,476,11285,457,980 9,484,716 138,769,172

2,807,308 7,807,30834,873,09385,796,245

85,457,980 12,531,292 268,721,930

109,585,444$ 21,821,109$ 344,280,417$

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RECONCILIATION OF THE GOVERNMENTAL FUNDS Exhibit C-2BALANCE SHEET TO THE STATEMENT OF NET POSITIONAUGUST 31, 2012

Total Fund Balances - Governmental Funds (from Exhibit C-1) 268,721,930$

Amounts reported for governmental activities in the Statement of Net Position aredifferent because:

Capital assets used in governmental activities are not financial resources and thereforeare not reported as assets in governmental funds. 1,146,351,169

Revenues in the Statement of Activities that do not provide current financial resourcesare not reported as revenues in the funds. 3,162,831

Deferred revenue on property taxes receivable and penalty and interest on delinquenttaxes have been levied or assessed and are due this year but are not available soonenough to pay for current period's expenditures and are deferred and added back toFund Balances for Statement of Net Position. 9,869,819

Internal Service Funds are used by the District's management to charge the costs ofthe various insurance programs and printing operations to the individual funds. Theassets and liabilities of the Internal Service Fund are included in the Government-wideStatement of Net Position. 6,233,596

Long-term liabilities, including bonds payable, are not due and payable in the currentperiod, and therefore are not reported as liabilities in the funds. Long-term liabilities atyear end consist of: Bonds payable and premiums - net of refunding losses (1,208,073,545) Capital Lease (17,360,000) Compensated Absences - Long-term Portion (19,106,877) Accreted Interest on Capital Appreciation Bonds (9,409,109) Interest Payable (2,514,024)

Assets in Statement of Net Position not in Fund Financials: Unamortized issuance cost on bonds 10,646,231

Net Position of Governmental Activities 188,522,021$


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KATY INDEPENDENT SCHOOL DISTRICTSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESGOVERNMENTAL FUNDSYEAR ENDED AUGUST 31, 2012

DataControlCodes General Debt Service Fund

REVENUES5700 Local, Intermediate, and Out-of-State 238,968,668$ 82,719,642$ 5800 State Program Revenues 194,328,921 4,639,7295900 Federal Program Revenues 6,154,9325020 Total Revenues 439,452,521 87,359,371

EXPENDITURESCurrent:

0011 Instruction 260,023,2200012 Instructional Resources and Media Services 5,832,2800013 Curriculum and Staff Development 4,394,3350021 Instructional Leadership 3,391,1650023 School Leadership 26,016,2760031 Guidance, Counseling, and Evaluation Services 16,203,9400033 Health Services 3,887,4080034 Student Transportation 13,967,2560035 Food Services0036 Cocurricular/Extracurricular Activities 8,536,3570041 General Administration 9,144,8470051 Plant Maintenance and Operations 42,811,5050052 Security and Monitoring Services 4,826,9340053 Data Processing Services 7,436,6160061 Community Services 472,376

Debt Service:0071 Principal on Long-Term Debt 35,181,1360072 Interest on Long-Term Debt 50,163,3260073 Bond Issuance Costs and Fees 3,060,6060081 Capital Outlay-Facilities Acquisition and Construction 1,847,534

Intergovernmental Charges: 0093 Payments Related to Shared Service Arrangements0095 Payments to J.J.A.E.P. 32,9240097 Payments to Tax Increment Reinvestment Zone 2,435,8190099 Other Intergovernmental Charges 2,348,0966030 Total Expenditures 413,608,888 88,405,068

1100 Excess (Deficiency) of Revenues Over (Under) Expenditures 25,843,633 (1,045,697)

OTHER FINANCING SOURCES/(USES)7901 Refunding Bonds Issued 167,785,0007911 Capital-Related Debt Issued (Regular Bonds)7912 Sale of Real and Personal Property 4,235,9477915 Transfers In 468,281 3,613,4337916 Premium on Issuance of Bonds 7,502,4047919 Extraordinary Item-Insurance Proceeds 312,7878911 Transfers Out (3,237,982)8940 Payment to Bond Refunding Escrow Agent (174,020,686)

7080 Total Other Financing Sources/(Uses) 1,779,033 4,880,151

1200 Net Change in Fund Balances 27,622,666 3,834,454

100 Fund Balance - September 1 (Beginning) 99,283,516 39,992,022

3000 Fund Balance - August 31 (Ending) 126,906,182$ 43,826,476$


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Exhibit C-3

Capital Projects Other Governmental Total GovernmentalFund Funds Funds

375,777$ 18,648,299$ 340,712,386$ 3,649,681 202,618,331

37,274,367 43,429,299375,777 59,572,347 586,760,016

25,907,629 285,930,849691,932 6,524,212

2,504,424 6,898,759345,483 3,736,648445,872 26,462,148

2,032,995 18,236,935272,507 4,159,915

5,042 13,972,29823,048,070 23,048,070

640,063 9,176,420935 9,145,782

89,841 42,901,34620,123 4,847,057

7,436,616828,158 1,300,534

35,181,13650,163,326

1,182,418 4,243,024194,811,495 3,255,713 199,914,742

232,862 232,86232,924

2,435,8192,348,096

195,993,913 60,321,649 758,329,518

(195,618,136) (749,302) (171,569,502)

167,785,000129,370,000 129,370,000

23,424 4,259,3714,081,714

21,812,418 29,314,822312,787

(375,451) (468,281) (4,081,714)(174,020,686)

150,806,967 (444,857) 157,021,294

(44,811,169) (1,194,159) (14,548,208)

130,269,149 13,725,451 283,270,138

85,457,980$ 12,531,292$ 268,721,930$

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KATY INDEPENDENT SCHOOL DISTRICTRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES

Exhibit C-4

FOR THE YEAR ENDED AUGUST 31, 2012

Net Change in Fund Balances - Total Governmental Funds (from Exhibit C-3) (14,548,208)$

Amounts reported for governmental activities in the Statement of Activities (Exhibit B-1) are different because:

Internal Service Funds are used by management to charge the cost of various insuranceprograms and printing operations to individual funds. The net activity of the InternalService Funds is included in the entity-wide statements. (1,388,670)

Governmental funds report capital outlays as expenditures. However, in the Statementof Activities, the costs of those assets are allocated over their estimated useful lives asdepreciation expense. 200,034,542

Depreciation is not recognized as an expense in governmental funds, since it does notrequire the use of current financial resources. The net effect of the current year'sdepreciation is to decrease net assets. (41,581,371)

Repayment of bond and capital lease principal is recorded as an expenditure in thegovernmental funds, but the repayment reduces long-term liabilities in the Statement ofNet Position. 36,026,136

Issuance of long-term debt, plus premiums and interest, less issuance cost is recordedas current financial resources in governmental funds and is shown as an increase inlong-term debt in the government-wide statements. (149,085,534)

Interest expense on capital appreciation bonds are retired in the current year for fundbased financial statements, but were accrued in previous years for entity-wide 302,310

Interest accrual on capital appreciation bonds and interest accruals through year end onbonds are not recorded in the Fund Financial Statements but are accrued in the entitywide statements. 7,587

Loss on disposal of assets not fully depreciated is not recorded in the Fund FinancialStatements but is included in the entity-wide statements. (8,931,434)

Property taxes and penalty and interest receivable at year end will not be collected forseveral months after the District's fiscal year ends, so they are not considered availablerevenues and are deferred in the governmental funds financial statements. Deferred taxrevenues are adjusted and are recorded as revenues and beginning net assets for theGovernment-wide Statements. The amount of change in the current year Statement ofActivities due to deferred taxes are added back to the fund basis financials for theGovernment-wide Statement of Activities. 240,707

Amortization of bond issuance costs, deferred losses on refunding issues, and bondpremiums are recorded in the Government-wide Statement of Activities. 1,485,943

Revenues that are earned but do not provide current financial resources are recorded inthe Statement of Activities but are not in the Fund Financial Statements 3,162,831

Increase in long-term compensated absence liability is included in the entity-widestatements. (1,087,256)

Change in Net Assets of Governmental Activities (see Exhibit B-1) 24,637,583$


27

KATY INDEPENDENT SCHOOL DISTRICTSTATEMENT OF NET ASSETS Exhibit D-1

PROPRIETARY FUNDSINTERNAL SERVICE FUNDSAUGUST 31, 2012

DataControl GovernmentalCodes Activities

ASSETSCurrent Assets:

1110 Cash and Cash Equivalents 10,701,384$ 1290 Other Receivables 14,7751300 Inventories 88,0661410 Deferred Expenses 39,360

Total Current Assets 10,843,585

Noncurrent Assets:Capital Assets:

1520 Building and Improvements 2,5161540 Furniture and Equipment 1,751,4791573 Accumulated Depreciation (1,193,273)

Total Non Current 560,722

1000 Total Assets 11,404,307


2110 Accounts Payable 3,030,3072170 Due to Other Funds 39,3602200 Accrued Expenses 1,540,322

2000 Total Liabilities 4,609,989

NET ASSETS3200 Invested in Capital Assets 560,7223900 Unrestricted Net Assets 6,233,5963000 Total Net Assets 6,794,318$


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KATY INDEPENDENT SCHOOL DISTRICTSTATEMENT OF REVENUES, EXPENSES, AND CHANGES IN Exhibit D-2FUND NET ASSETSPROPRIETARY FUND TYPESINTERNAL SERVICE FUNDSFOR THE YEAR ENDED AUGUST 31, 2012

DataControl GovernmentalCodes Activities

OPERATING REVENUES5754 Charges for Services 39,031,273$ 5020 Total Operating Revenues 39,031,273

OPERATING EXPENSES6100 Salary and Benefits 42,9256200 Administrator Fees 7,602,9046200 Insurance Premiums 111,5516200 Claims Expenses 31,129,0936200 Repair and Maintenance Expense 21,7836200 Equipment Rental 110,8806300 Supplies 1,514,3996400 Miscellaneous Operating Expenses 1286400 Depreciation 160,2116030 Total Operating Expenses 40,693,874

1300 Operating Income (Loss) (1,662,601)

NONOPERATING REVENUES5742 Investment Income 36,920

Total Nonoperating Revenue 36,920

Income (Loss) before Contributions and Transfers (1,625,681)

7900 Capital Contributions - Capital Assets 237,0111300 Change in Net Assets (1,388,670)

0100 Total Net Assets September 1 (Beginning) 8,182,988

3000 Total Net Assets August 31 (Ending) 6,794,318$


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KATY INDEPENDENT SCHOOL DISTRICTSTATEMENT OF CASH FLOWS Exhibit D-3PROPRIETARY FUND TYPES INTERNAL SERVICE FUNDSFOR THE YEAR ENDED AUGUST 31, 2012

GovernmentalActivities

CASH FLOWS FROM OPERATING ACTIVITIES Cash Receipts from Internal Services Provided 38,213,541$ Cash Payments to Suppliers (1,707,736) Cash Payments to Pay Claims (31,243,919) Cash Payments to Contract Adminstrators (7,566,997) Cash Payments to Employees (42,925)

Net Cash (Used) by Operating Activities (2,348,036)

CASH FLOWS FROM INVESTING ACTIVITIES Interest Received 36,920

Net Cash Provided by Investing Activities 36,920

Net (Decrease) in Cash and Cash Equivalents (2,311,116)Cash and Cash Equivalents at Beginning of Year 13,012,500

Cash and Cash Equivalents at End of Year 10,701,384$

RECONCILIATION OF OPERATING (LOSS) TO NET CASH (USED) BY OPERATING ACTIVITIESOperating Income (Loss) (1,662,601)$ Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities Depreciation 160,211Change in Assets and Liabilities: Decrease in Receivables 698 (Increase) in Inventories (846) Increase in Accounts Payable 1,074,242 (Decrease) in Interfund Payables (818,429) (Decrease) in Accrued Expenses (1,101,311)

Net Cash (Used) by Operating Activities (2,348,036)$

Noncash Investing, Capital, and Financing ActivitiesContributions of Capital Assets from Government 237,011$ Capital Assets Retired (4,848)$


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KATY INDEPENDENT SCHOOL DISTRICTSTATEMENT OF FIDUCIARY ASSETS AND LIABILITIES Exhibit E-1AGENCY FUNDSAUGUST 31, 2012

DataControlCodes Agency Funds

ASSETS1110 Cash and Investments 4,320,070$

1000 Total Assets 4,320,070$

LIABILITIES2110 Accounts Payable 258,475$ 2160 Accrued Wages 1,2762190 Due to Student Groups 4,060,319

2000 Total Liabilities 4,320,070$


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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Katy Independent School District (the District) was formed in February 1919 by a special act of the

Texas State Legislature. The District is an independent public educational agency operating under applicable laws and regulations of the State of Texas. A seven member Board of Trustees elected to staggered three-year terms by the District’s residents autonomously governs the District. The District prepares its Basic Financial Statements in conformity with Generally Accepted Accounting Principles (GAAP) promulgated by the Governmental Accounting Standards Board (GASB) and other authoritative sources identified in Statement on Auditing Standards No. 69 of the American Institute of Certified Public Accountants; and it complies with the requirements of the appropriate version of the Texas Education Agency’s Financial Accountability System Resource Guide (the “Resource Guide” or “FASRG”) and the requirements of contracts and grants of agencies from which it received funds.

The District prepared these financial statements in accordance with GASB Statement No. 34, “Basic

Financial Statements and Management’s Discussion and Analysis for State and Local Governments”, GASB Statement No. 37, “Basic Financial Statements and Management’s Discussion and Analysis for State and Local Governments: Omnibus” which provides additional guidance for the implementation of GASB Statement No. 34, and GASB Statement No. 38 “Certain Financial Statement Disclosures” which changes note disclosure requirements for governmental entities.

GASB Statement No. 34 established a financial reporting model for state and local governments that

included the addition of management’s Discussion and Analysis, Government-wide Financial Statements, Required Supplementary Information, and the elimination of the effects of internal service activities and the use of account groups to the already required fund Financial Statements and notes.

The following is a summary of the most significant accounting policies:

A. Reporting Entity The District is considered an independent entity for financial reporting purposes and is considered a primary government. As required by Generally Accepted Accounting Principles, these basic financial statements have been prepared based on considerations regarding the potential for inclusion of other entities, organizations, or functions as part of the District’s financial reporting entity. Based on these considerations, the District’s Basic Financial Statements do not include any other entities. Additionally, as the District is considered a primary government for financial reporting purposes, its activities are not considered a part of any other governmental or other type of reporting entity. Considerations regarding the potential for inclusion of other entities, organizations, or functions in the District’s financial reporting entity are based on criteria prescribed by Generally Accepted Accounting Principles. These same criteria are evaluated in considering whether the District is a part of any other governmental or other type of reporting entity. The overriding elements associated with prescribed criteria considered in determining that the District’s financial reporting entity status is that of a primary government are: that it has a separately elected governing body; it is legally separate; and it is fiscally independent of other state and local governments. Additionally prescribed criteria under Generally Accepted Accounting Principles include considerations pertaining to organizations for which the primary government is financially accountable; and considerations pertaining to other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete.

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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

A. Reporting Entity (continued) The Board of Trustees (the Board) is elected by the public and has the primary accountability for fiscal matters. Therefore, the District is a financial reporting entity as defined by the Governmental Accounting Standards Board (GASB) in its Statement No. 14, “The Financial Reporting Entity.” The District has also implemented GASB Statement No. 39, “Determining Whether Certain Organizations are Component Units”. The District receives support from various PTO, PTA, and Booster club organizations. None of these organizations meet the criteria specified by GASB 39 to be included in the District’s Financial Statements. Therefore, there are no component units included with the reporting entity.

B. Government-wide and Fund Financial Statements

The Statement of Net Position and the Statement of Activities are Government-wide Financial Statements. They report information on all of the Katy Independent School District operating activities and activities other than the District’s fiduciary (agency type) activities. For the most part, the effect of interfund activities has been removed from these statements. Governmental activities include programs supported primarily by taxes, state foundation funds, grants and other intergovernmental revenues. The District has no business-type activities that rely to a significant extent on fees and charges for support. The Statement of Activities demonstrates how other people or entities that participate in programs the District operates have shared in the payment of the direct costs. The “charges for services” column includes payments made by parties that purchase, use, or directly benefit from goods or services provided by a given function or segment of the District. Examples include school lunch charges, community education tuition, summer school tuition, etc. The “grants and contributions” column includes amounts paid by organizations outside the District to help meet the operational or capital requirements of a given function. Examples include grants under the Elementary and Secondary Education Act. If a revenue is not a program revenue, it is a general revenue used to support all of the District’s functions. Property taxes are always general revenues. Interfund activities between governmental funds and between governmental funds and proprietary funds appear as due to/due from on the Governmental Fund Balance Sheet and Proprietary Fund Statement of Net Assets and as other resources and other uses on the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balance and on the Proprietary Fund Statement of Revenues, Expenses and Changes in Fund Net Assets. In the Government-wide statements, eliminations have been made to minimize double-counting of internal activities. Interfund balances between governmental funds and also between governmental funds and internal service funds are eliminated on the Government-wide Statement of Net Position. Since the internal service funds support the District’s activities, the financial activities of these funds are presented in the governmental activities column in the Government-wide Statement of Activities as a direct expense in the proper functional category. In the Government-wide Statement of Activities, the net activities of the Internal Service such as Health Insurance, Workers’ Compensation, Print Shop, and Auto Liability have been allocated to the appropriate functional expense in order to present a more accurate and complete picture of the direct expenses of the functions. The District has no interfund services provided and used between functions that would be program revenue which would not be eliminated in the process of consolidation. Interfund activities between governmental and fiduciary funds remain as due to/due from on the Government-wide Statement of Activities.

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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) B. Government-wide and Fund Financial Statements (continued)

The Fund Financial Statements provide reports on the financial condition and results of operations for three fund categories – governmental, proprietary, and fiduciary. Since the resources in the fiduciary funds cannot be used for district operations, they are not included in the Government-wide Statements. The District considers some governmental funds as major and reports their financial condition and results of operations in a separate column. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. All other revenues and expenses are non-operating.

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

The Government-wide Financial Statements use the economic resources measurement focus and the accrual basis of accounting, as do the Proprietary Fund and Fiduciary Fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental Fund Financial Statements use the current financial resources measurement focus and the modified accrual basis of accounting. With this measurement focus, only current assets, current liabilities and fund balances are included on the balance sheet. Operating statements of these funds present net increases and decreases in current assets (i.e., revenues and other financing sources and expenditures and other financing uses). The modified accrual basis of accounting recognizes revenues in the accounting period in which they become both measurable and available and recognizes expenditures in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest and principal on long-term debt, which is recognized when due. The expenditures related to certain compensated absences and claims and judgments are recognized when the obligations are expected to be liquidated with expendable available financial resources. The District considers all revenues available if they are collectible within 60 days after year-end. Revenues from local sources consist primarily of property taxes. Property tax revenues and revenues received from the State are recognized under the susceptible-to-accrual concept. Miscellaneous revenues are recorded as revenue when received in cash because they are generally not measurable until actually received. Investment earnings are recorded as earned, since they are both measurable and available. Grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant. Accordingly, when such funds are received, they are recorded as deferred revenues until related and authorized expenditures have been made. If balances have not been expended by the end of the project period, grantors may require the District to refund all or part of the unused amount.

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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued)

The Proprietary Fund Types and Fiduciary Funds are accounted for on a flow of economic resources measurement focus and utilize the accrual basis of accounting. This basis of accounting recognizes revenues in the accounting period in which they are earned and become measurable and expenses in the accounting period in which they are incurred and become measurable. The Agency Funds apply the accrual basis of accounting but do not have a measurement focus. All assets and all liabilities associated with the operation of these funds are included on the Statement of Net Assets. The fund equity is segregated into invested in capital assets net of related debt, restricted net assets, and unrestricted net assets.

D. Fund Accounting

The accounts of the District are organized on the basis of funds in accordance with the provisions of the Resource Guide. Each fund is considered to be a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts, which comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses. For financial statement presentation, the District’s Fund Financial Statements provide more detailed information about the District’s most significant funds, not the District as a whole. The funds shown on the Fund Financial Statements are considered major funds because of the size and activity of the funds in relation to all of the funds. The District reports the following major Governmental Funds: 1. General Fund

The General Fund is the government’s primary operating fund. It is used to account for all financial transactions not properly included in other funds. The principal sources of revenues include local property taxes, state funding under the Foundation School Program, interest earnings on fund investments, federal source revenues for indirect costs reimbursed by the programs accounted for in the Special Revenue Fund, and revenues received for School Health and Related Services. Expenditures include all costs associated with the daily operations of the District except for food service, debt service, capital projects, and specific programs funded by the federal or state government.

2. Debt Service Fund

The Debt Service Fund is used to account for the payment of interest and principal on all bonds of the District. The primary sources of revenue for debt service are local property taxes, state existing debt and instructional facilities allotments, and interest earnings on investments.

3. Capital Projects Fund

The Capital Projects fund is used to account for the proceeds of the District’s bond sales and revenues whose expenditures are restricted to the construction and acquisition of major capital facilities.

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D. Fund Accounting (continued) The District also reports the following non-major Governmental Fund type under Other Governmental Funds: 4. Special Revenue Fund

The Special Revenue Fund is used to account for all financial resources restricted to, or designated for, specific purposes by a grantor. Specifically, this type of fund is used to account for funds that are used for the District’s food service program, including local and federal revenue sources, for federally financed programs (grants) where unused balances are returned to the grantor at the close of specified project periods and other revenue specific programs. Project accounting is employed to maintain integrity for the various sources of funds. Resources accounted for in these funds are awarded to the District for the purpose of accomplishing specific educational tasks as defined by grantors in contracts or other agreements.

Additionally, the District reports the following Proprietary Fund:

5. Internal Service Fund

The Internal Service Fund is used to account for revenues and expenses related to services provided to organizations inside the District on a cost reimbursement basis. The following Internal Service Funds are used by the District:

The Workers’ Compensation Fund is used to account for the operations of the District’s workers’ compensation insurance plan, which is supported principally by employer contributions. Expenses include plan benefit payments to insured employees for claims and premium charges. Estimated amounts due for claims incurred but not reported at year-end are included as fund liabilities.

Similar to the Workers’ Compensation Fund, the Health Insurance Fund is used to account for the District’s health insurance plan, which is supported by both district and employee contributions. Expenses include plan benefit payments to health care providers for claims incurred. Estimated amounts due for claims incurred but not reported at year-end are included as fund liabilities.

The Auto Liability Fund is used to account for the District’s automobile insurance plan which is entirely supported by district contributions. Expenses include payments for automotive claims for both district and non-district vehicles.

The Print Shop Fund is used to account for the District’s internal printing operations. All costs and expenses of operating the print shop are accounted for in the fund. Users of the printing services are charged fees based on amounts estimated to cover the cost of operations.

Additionally, the District reports the following Fiduciary Funds:

6. Agency Funds

The Agency Funds are used to account for activities of student groups. These funds have no equity; assets are equal to liabilities and do not include revenues and expenditures for general operations of the District. The Agency Fund accounts for resources held in a custodial capacity by the District, and consist of funds that are property of students and others and cannot be used by the District in operations.

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E. Other Accounting Policies – Assets, Liabilities, and Net Assets or Equity 1. Cash and Cash Equivalents

The District’s cash and cash equivalents are considered to be cash on hand, demand deposits, certificates of deposit, balances in privately managed public funds investment pools (TexPool and Lone Star), and short-term investments with original maturities of three months or less from the date of acquisition. For the purpose of the statement of cash flows, the Proprietary Fund Types consider temporary investments, with maturity of three months or less when purchased, to be cash equivalents.

2. Investments

Investments consist of deposits with TexPool and Lone Star, local government investment pools. The District’s investments are carried at fair value based on quoted market prices at August 31, 2012 in accordance with Generally Accepted Accounting Principles. Investments having a maturity of three months or less when purchased are reported as cash and cash equivalents.

3. Short-Term Interfund Receivables/Payables

During the course of operations, transactions occur between individual funds for specified purposes. These receivables and payables are classified as due from other funds or due to other funds on the combined balance sheet.

4. Inventories and Prepaid Items

Inventories consisting of supplies and materials are stated at cost (average cost method) and include consumable custodial, maintenance, transportation, instructional, food consumables and office supplies. Inventories of governmental funds are recorded as expenditures when the supplies and materials are used or consumed (consumption method) rather than when purchased. Inventories of food commodities are recorded as revenues at fair market value supplied by the Texas Department of Human Services on the date received, and are recorded as expenditures when the commodities are consumed. A portion of fund balance is classified as non-spendable to reflect minimum inventory quantities considered necessary for the District’s continuing operations.

Certain payments to vendors reflect costs application to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.

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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) E. Other Accounting Policies – Assets, Liabilities, and Net Assets or Equity (continued)

5. Capital Assets

Capital assets, which include land, buildings, furniture and equipment, are reported in the applicable governmental column in the Government-wide Financial Statements. Primarily, capital assets are defined by the District as assets with an initial cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Costs of the facilities Acquisition and Construction Function that relate to overall planning of District facilities, managing overall District assets and overall construction projects are treated as period costs and are not capitalized unless related to specific assets. Donated capital assets are recorded at estimated fair market value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

When assets are retired or otherwise disposed of, the related costs or other recorded amounts are removed.

Buildings, furniture, and equipment of the District are depreciated using the straight line method over the following estimated useful lives:

Assets Years Buildings 50 Temporary Buildings 25 Building Improvements 20 Furniture & Fixtures 20 Vehicles 15 Buses 15 Equipment 10 Office Equipment 6 Computer Equipment 6

Land and construction in progress are not depreciated

6. Deferred Outflows/Inflows of Resources In addition to assets, the Statement of Net Position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, Deferred Outflows of Resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The District has one item that qualifies for reporting in this category. It is related to the hedging derivative instruments associated with the Series 2012-C Bonds and the refunding of the Series 2004-C Bonds. The deferred amount on refunding related to the Series 2004-C Bonds is reported in the Government-wide Statement of Net Position in this category and will be amortized over the life of the debt.

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6. Deferred Outflows/Inflows of Resources (continued)

In addition to liabilities, the Statement of Net Position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, Deferred Inflows of Resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow or resource (revenue) until that time. The District has one item that qualifies for reporting in this category. The imputed at-the-market swaps associated with the Series 2012-C Bonds are reported as a deferred inflow of resources at market value.

7. Long-Term Obligations

In the Government-wide Financial Statements and in the Proprietary Fund types in the Fund Financial Statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or Proprietary Fund type Statement of Net Assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. Accretion of interest on the capital appreciation bonds is recorded at the accreted value through the end of the fiscal year.

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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) E. Other Accounting Policies – Assets, Liabilities, and Net Assets or Equity (continued) 7. Long-Term Obligations (continued)

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

8. Transactions Between Funds

Transactions between funds that would be treated as revenues, expenditures or expenses if they involved organizations external to the District are accounted for as revenues, expenditures or expenses in the applicable funds.

Transactions which constitute reimbursements of a fund for expenditures or expenses initially made from that fund, which are properly attributable to another fund, are recorded as expenditures or expenses in the reimbursing fund and as reductions of the expenditures or expenses in the fund that is reimbursed.

Other legally authorized transfers are included in the results of operations of the governmental funds.

9. Compensated Absences – Accumulated Vacation Pay and Sick Leave

The District has a vacation pay policy for twelve-month employees whereby eligible employees shall receive vacation of one to fifteen days dependent upon the number of years of service. Employees become eligible for vacation days after six months of employment. All vacation days are forfeited if not taken by December 31 of the calendar year; therefore, the liability for unused vacation days at August 31, 2012 is not material to the financial statements.

The District pays a portion of accrued sick leave to employees who retire with five or more years of continuous employment in the District and whose retirement can be verified by the Teachers Retirement System. The compensated absences are normally paid through the General Fund when the amounts are due. Payment is limited to the current salary rate for one-half of the locally accumulated sick leave days up to a maximum of 90 accumulated days.

10. Fund Equity

Beginning with fiscal year 2011, the District implemented GASB Statement No. 54 “Fund Balance Reporting and Governmental Fund Type Definitions”. This statement provides more clearly defined fund balance categories to make the nature and extent of the constraints placed on a government’s fund balance more transparent. The following classifications describe the relative strength of the spending constraints: a. Non-spendable Fund Balance

Non-spendable fund balance represents amounts that are not in spendable form or are required to be maintained intact. As such, the inventory and prepaid items have been properly classified in the Governmental Funds Balance Sheet (Exhibit C-1)

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b. Restricted Fund Balance

Restricted fund balance consists of amounts that can be spent only for specific purposes because of local, state or federal laws, or externally imposed conditions by grantors or creditors. The Fund balance for the Child Nutrition Fund and other grant funds are classified as restricted

c. Committed Fund Balance

Committed fund balances are amounts constrained to specific purposes by the District itself, using its highest decision making authority (the Board of Trustees). To be reported as committed, amounts cannot be used for any other purpose unless the District takes the same highest level of action to remove or change the constraint. The General Fund has committed $5,000,000 for self-insurance purposes. The District has committed the fund balance in the Campus Activity Fund for uses benefitting the respective campuses where the funds were raised.

d. Assigned Fund Balance

Assigned fund balance is the amount the District intends to use for a specific purpose. Intent can be expressed by the District or by an official or body to which the Board of Trustees delegates the authority. The District has assigned fund balances in the General Fund in the amount of $34,873,093 and is detailed in Note 12.

e. Unassigned Fund Balance

Amounts that are available for any purpose are considered unassigned fund balance. Positive numbers can only be reported in the general fund.

The District establishes (and modifies or rescinds) fund balance commitments and assignments by passage of resolution. A fund balance commitment is further indicated in the budget document as a commitment or assignment of the fund. Per the local policy, assigned fund balance amounts are established by the Superintendent or his designee.

11. Use of Estimates

The presentation of financial statements, in conformity with Generally Accepted Accounting Principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.

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12. Data Control Codes The Data Control Codes refer to the account code structure prescribed by TEA in the Financial Accountability System Resource Guide. The Texas Education Agency requires school districts to display these codes in the financial statements filed with the Agency in order to insure accuracy in building a statewide database for policy development and funding plans.

13. Use of Funds

When both restricted and unrestricted resources are available for use, it is the District’s policy to use restricted resources first, then unrestricted as they are needed. Additionally, the District would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund balance when expenditures are made. The District does not have a formal minimum fund balance policy.

NOTE 2 – RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS

A. Explanation of Certain Differences between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position Exhibit C-2 provides the reconciliation between the fund balance for total governmental funds on the governmental fund balance sheet and the net assets for governmental activities as reported in the Government-wide Statement of Net Position. Major elements of that reconciliation include capital assets which are not financial resources and are therefore not reported in governmental funds, long-term liabilities, including bonds payable, which are not due and payable in the current period and are not reported as liabilities in the Fund Financial Statements, and property taxes receivable which are included as deferred in the Fund Financial Statements are adjusted based on when the tax levy was made and for uncollectible amounts.

B. Explanation of Certain Differences between the Governmental Fund Statement of Revenues,

Expenditures and Changes in Fund Balances and the Government-wide Statement of Activities Exhibit C-4 provides a reconciliation between the net changes in fund balance as shown on the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the changes in net assets of governmental activities as reported on the Government-wide Statement of Activities. One element of that reconciliation explains that current year capital outlays and debt principal payments are expenditures in the Fund Financial Statements, but should be shown as increases in capital assets and decreases in long-term debt in the Government-wide Statements. This adjustment affects both the net asset balance and the change in net assets. The debt payments on retirement of debt are recorded as expenditures for Fund Basis Financial Statements but are recorded as a reduction of debt in the Government-wide Financial Statements. The capital asset additions are expenditures in the Fund Basis Financial Statements but are capitalized in the Government-wide Financial Statements. The Fund Basis Financial Statements do not include the current depreciation expense. Another element of the reconciliation on Exhibit C-4 is described as various other reclassifications and eliminations necessary to convert from the modified accrual basis of accounting to the accrual basis of accounting. As indicated above, if new debt is issued, it is treated as a source of revenue on the Fund Basis Financial Statements, while in the Government-wide Financial Statements; the amount is recorded as a liability. Property taxes are adjusted for the accrual basis and the deferred revenues are adjusted based on prior year levies and current year uncollectible amounts.

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NOTE 3 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY

A. Budgetary Data The Board of Trustees adopts an appropriated budget for the General Fund, Debt Service Fund, and Special Revenue Fund. The Food Service and Education Jobs Funds are included in the Special Revenue Fund. Budgets are prepared using the same method of accounting as for financial reporting. The District is required to present the adopted and final amended budgeted revenues and expenditures for the General Fund and each major special revenue fund. The Food Service Fund and Education Jobs Fund are not major funds. The General Fund budget report appears in the required supplementary information section where the District compares the final amended budget to actual revenues and expenditures. Per regulatory requirements, the Debt Service Fund and the Food Service Fund are required to be reported with the original budget, amended budget and actual. Additionally, the District has chosen to present this schedule for the Education Jobs Fund as well. These statements are included in the Other Supplementary Information of the Comprehensive Annual Financial Report in Exhibits H-2 and J-3. The Capital Projects Fund budget is prepared on a project basis based on the proceeds available from bond issues and planned expenditures outlined in applicable bond ordinances. Capital Projects Fund equity, which represents unexpended appropriations, is re-appropriated in the subsequent fiscal year’s budget until available funds for acquisition and construction of facilities have been utilized. Each major construction contract is approved based on the existing availability of bond proceeds and/or approved but unissued bonds. The non-budgeted Special Revenue funds (primarily federal, state, and local grant programs) utilize a managerial type financial plan approved at the fund level by the Board of Trustees upon acceptance of the grants. These grants are subject to state imposed project length budgets and monitored through submission of reimbursement reports to the state. The following procedures are followed in establishing the budgetary data reflected in the Fund Financial Statements: 1. Prior to August 20, the District prepares a budget for the next succeeding fiscal year beginning

September 1. The operating budget includes proposed expenditures and the means of financing them.

2. A meeting of the Board is then called for the purpose of adopting the proposed budget. At least ten

days public notice of the meeting must be given.

3. Prior to September 1, the budget is legally enacted through passage of a resolution by the Board. Once a budget is approved, it can only be amended at the function and fund level by approval of a majority of the members of the Board. Amendments are presented to the Board at its regular meetings. Each amendment must have Board approval. As required by law, such amendments are made before the fact, are reflected in the official minutes of the Board, and are not made after fiscal year end. Because the District has a policy of careful budgetary control, several amendments were necessary during the year.

4. Each budget is controlled by the budget coordinator at the revenue and expenditure function/object

level. Budgeted amounts are amended by the Board. All budget appropriations lapse at year end.

5. During the fiscal year ended August 31, 2012 the District did not have any expenditures over appropriations in major funds.

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NOTE 3 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY

A. Budgetary Data (continued)

6. A reconciliation of fund balances for both appropriated budget and non-appropriated budget Special Revenue Funds is as follows:

All Special Unbudgeted BudgetedRevenue Special SpecialFunds Revenue Funds Revenue Funds

Revenues 59,572,347$ 25,316,149$ 34,256,198$ Expenditures 60,321,649 24,442,141 35,879,508Revenues Over (Under) Expenditures (749,302) 874,008 (1,623,310)Other Sources (Uses) (444,857) (468,281) 23,424Fund Balance Beginning 13,725,451 6,291,660 7,433,791

Fund Balance Ending 12,531,292$ 6,697,387$ 5,833,905$

7. During the fiscal year the operating budget must be amended by the Board for changes to function appropriation amounts. All supplemental appropriations must be within limits of available revenues and fund equity.

The following table summarizes changes to the originally adopted budget for all budgeted funds:

Appropriations as of Supplemental Appropriations as ofSeptember 1, 2011 Appropriations August 31, 2012

Fund (Original Budget) and Revisions (Amended Budget)

General Fund 442,797,518$ (18,167,836)$ 424,629,682$ Special Revenue Funds 24,717,916 12,288,424 37,006,340Debt Service Fund 88,700,000 339,059 89,039,059

Total all Budgeted Funds 556,215,434$ (5,540,353)$ 550,675,081$

B. Encumbrances Encumbrance accounting, under which purchase orders, contracts, and other commitments are recorded in order to reserve that portion of the applicable appropriation, is used in all governmental funds. Encumbrances outstanding at year-end are commitments that do not constitute expenditures or liabilities, but are reported as assignments of fund balances. Since appropriations lapse at the end of each fiscal year, outstanding encumbrances are appropriately provided for in the subsequent fiscal year’s budget to provide for the liquidation of the prior commitments.

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NOTE 4 – DEPOSITS (CASH) AND INVESTMENTS

A. Deposits (Cash) Deposits and investment transactions of the District are regulated by State statutes of the Texas Education Code and other regulations regarding security for District funds in depository institutions. In accordance with applicable statutes, the District has a depository contract with an area bank (depository) providing for interest rates to be earned on deposited funds and for banking charges the District incurs as a result of banking services received. All depository contracts have a term of two years, commencing with the start of every odd-numbered fiscal year. However, the contract can be extended for two additional two year periods should the depository and the District agree to the extension. Depository contracts are awarded on the basis of competitive proposals received from area banks and can be awarded to more than one bank if the bids received are relatively equal.

The District may place funds with the depository in interest and non-interest bearing accounts. Statutes and the depository contract require that all funds in the depository institution be fully secured by federal depository insurance or a combination of federal depository insurance and acceptable collateral securities and/or an acceptable surety bond. The collateral securities must be delivered to the District or placed with an independent third party custodian or trustee institution. In accordance with State statutes pertaining to lawful collateralization of District deposits, safekeeping receipts are issued in the name of the depository with proper identification that the collateral securities are pledged by the depository to secure funds of the District. Acceptable collateral securities include direct obligations of the United States of America (U.S.), bonds of any agency of the U.S., bonds of the State of Texas or of any county, school district, city, or town of the State of Texas that have been rated A or better and other securities as authorized by Chapter 2257 Collateral for Public Funds of the Government Code and Chapter 2256 Public Fund Investment Act. The District may approve all collateral securities prior to their being pledged. The depository can release or replace collateral securities pledged to secure District funds only upon obtaining the written approval of the District. All demand and time deposits in the depository bank were entirely covered by federal depository insurance and by acceptable collateral securities pledged in the District’s name by Prosperity Bank and held in safekeeping by Federal Home Loan Bank of Dallas at year-end in accordance with provisions of the depository contract. At August 31, 2012 the carrying amount of the District’s deposits was $212,761,801. As of August 31, 2012 the deposits and amount of pledged collateral and FDIC coverage was as follows:

Carrying Amount Pledged Collateral Availableof Combined and Surety FDIC

Financial Institution Deposit Bond Coverage Month

Prosperity Bank 212,761,801$ 255,282,692$ 500,000$ August 31, 2012

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NOTE 4 – DEPOSITS (CASH) AND INVESTMENTS (continued)

B. Investments The Board of Trustees of the District has adopted a written investment policy (the “Investment Policy”) regarding the investment of the funds as defined in the Public Funds Investment Act of 1995 (Chapter 2256, Texas Government Code). The Public Funds Investment Act requires an annual audit of investment practices. Audit procedures in this area, conducted as part of the audit, disclosed that in the area of investment practices, management reports, and establishment of appropriate policies, the District was in substantial compliance with the requirements of the Act. Additionally, the investments and investment practices of the District are in compliance with the Trustees’ investment policies. The District’s Investment Policy emphasizes safety of principal and liquidity, addresses investment diversification, yield, and maturity and addresses the quality and capability of investment personnel. The Investment Policy includes a list of authorized investment instruments, a maximum allowable stated maturity of any individual investment and the maximum average dollar weighted maturity allowed for fund groups.

The District is authorized to invest in the following investment instruments: 1. Obligations of, or guaranteed by, the U.S. Government and its agencies and instrumentalities as

permitted by Government Code 2256.009. This excludes collateralized mortgage obligations. Maximum maturity shall be three years.

2. Certificates of deposit and share certificates as permitted by Government Code 2256.010. 3. Fully Collateralized repurchase agreements permitted by Government Code 2256.011. 4. A1/P1 Commercial paper as defined by Government Code 2256.013 and not to exceed 60 days to

maturity. 5. No-load money market mutual funds as permitted by Government Code 2256.014. 6. Constant dollar public funds investment pools as permitted by Government Codes 2256.016 –

2256.019. A summary of the District’s cash and investments at August 31, 2012 is shown below.

Cash

on Bank Investment Hand Deposits Pools Total

General 34,225$ 128,144,922$ 24,180,437$ 152,359,584$ Debt Service 23,972,214 20,600,828 44,573,042Capital Projects 48,934,938 60,357,806 109,292,744Special Revenue Funds 100 447,279 13,074,020 13,521,399

Total Governmental Funds 34,325 201,499,353 118,213,091 319,746,769

Internal Service Fund 6,944,262 3,757,122 10,701,384

Total Governmental Activities 34,325 208,443,615 121,970,213 330,448,153

Fiduciary Funds Trust and Agency 4,318,186 1,884 4,320,070

Total 34,325$ 212,761,801$ 121,972,097$ 334,768,223$

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NOTE 4 – DEPOSITS (CASH) AND INVESTMENTS (continued) B. Investments (continued)

The District generally holds all securities to maturity. The District did not purchase any derivative investment products during the current year nor participate in any reverse repurchase agreements or security lending agreements during the fiscal year 2012. The following table includes the portfolio balances, credit rating, and weighted average maturity of the portfolio balance by investment type of the District as of August 31, 2012:

Fair WeightedRating Value Avg. Maturity

Lone Star - Public Funds Investment Pool AAAm 30,196,197$ 45 daysTexPool - Public Funds Investment Pool AAAm 91,775,900 38 days

Total Investments and Cash Equivalent 121,972,097$

As of August 31, 2012, the District’s investments included TexPool and Lone Star Public Funds Investment Pools. The investment pools investments are not evidenced by securities that exist in physical or book entry form and, accordingly, do not have custodial risk. Investment Pool policies require that local government deposits be used to purchase investments authorized by the Public Fund Investment Act of 1987, as amended. The Texas State Comptroller of Public Accounts has oversight responsibility for TexPool. The value of District portions in TexPool and Lone Star are the same as the value of the Shares. These external pooled funds operate in a manner consistent with the SEC’s Rule 2a7 of the Investment Company Act of 1940. The external pooled funds are amortized cost rather than market value to report net assets to compute share price, such funds have daily liquidity. Although TexPool and Lone Star have weighted average maturities greater than one, the District considers its holdings in these funds to have a one day weighted average maturity. Credit Risk Related to Investments Credit risk is the risk that another party to a deposit or investment transaction will not fulfill its obligations. This is not to be confused with market risk, which is the risk that the market value of an investment, collateral protecting a deposit, or securities underlying a repurchase agreement, will decline. Market risk is not depicted in this note. In compliance with GASB 40, local policy also addresses credit risk by monitoring investment diversification through specific identification disclosure and weighted average maturity disclosure. As of August 31, 2012, TexPool and Lone Star represented 27.4% and 9.0%, respectively, of the General Fund, Debt Service Fund, Capital Projects Fund, Special Revenue Fund, Internal Service Fund and Fiduciary Fund investments and are rated AAAm by Standard and Poor’s. Interest Rate Risk As a means of minimizing risk of loss due to interest rate fluctuations, the District’s Investment Policy requires that investment maturities in the General Fund, Debt Service Fund, Capital Projects Fund, and Special Revenue Fund will not exceed the lesser of a dollar weighted average maturity of 365 day or the anticipated cash flow requirements of the fund. The District’s Investment Policy also limits that no investment shall have a maturity greater than three years from the date of purchase.

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NOTE 4 – DEPOSITS (CASH) AND INVESTMENTS (continued) B. Investments (continued)

As of August 31, 2012, 36.4% of the entire portfolio was invested in AAAm rated public investment pools. The dollar weighted average maturity for all securities was one day, which is less than the threshold of 180 days.

Custodial Credit Risk The District’s agent holds the securities in the General Fund, Debt Service Fund, Capital Projects Fund,

and Special Revenue Fund in the District’s name; therefore, the District is not exposed to custodial credit risk. Custodial credit risk for investments is the risk that, in event of the failure of the counterparty (e.g. broker dealer) to a transaction, a government will not be able to recover the value of its investments or collateral securities that are in the possession of another party. The District’s policy requires that a third party custodian or a bank trust department hold all securities owned by, or pledged as collateral to the District.

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NOTE 5 – PROPERTY TAXES The current assessment ratio of the District is 100% of market valuation of all property within the

District’s boundaries. The local maintenance and debt service tax rates for the 2011-12 school year were $1.1266 and $.40 respectively per $100 of assessed valuation. The 2011-12 assessed valuation was $20,727,521,751 and resulted in a final adjusted tax levy of $312,869,011.

Property taxes are levied by October 1 on the assessed value listed the prior January 1 for all real and business personal property located in the District 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 31 of each year, a lien attaches to the property to secure the payment of all taxes, penalties, and interest ultimately imposed. Local taxes assessed on valuations made as of January 1 each year are recorded in the District’s Financial Statements net of the related allowance for uncollectible taxes. The resulting net taxes receivable is stated at the amount estimated to be collectible based upon the District’s collection experience. Uncollectible taxes are periodically reviewed and written off by the District, as provided by specific statutory authority from the State Legislature. Net property taxes receivable at August 31, 2012 consisted of the following:

General Debt ServiceFund Fund Total

Property Taxes Receivable-Current Year Levy 1,927,401$ 684,325$ 2,611,726$ Property Taxes Receivable-Prior Years' Levies 4,318,625 1,323,005 5,641,630 Total Property Taxes Receivable 6,246,026 2,007,330 8,253,356Penalty and Interest on Delinquent Property Taxes 3,446,802 958,981 4,405,783

Total Property Taxes and Penalty and Interest 9,692,828 2,966,311 12,659,139Less Allowance for Uncollectible Taxes 2,156,407 632,913 2,789,320

Net Property Taxes Receivable 7,536,421$ 2,333,398$ 9,869,819$

Appraisal District The Texas Legislature in 1979 adopted a comprehensive Property Tax Code which established an

appraisal district and an appraisal review board in each county in the State of Texas. The District has property in Harris, Fort Bend, and Waller Counties. Beginning January 1, 2008 the District contracted with each county for the appraisal of property for all taxing units in the county’s boundaries, including the District. The District paid Harris County Appraisal District, Fort Bend County Appraisal District, and Waller Country Appraisal District $1,506,622, $695,795 and $145,679 respectively in fiscal 2012 for appraising property.

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NOTE 6 – AMOUNTS DUE TO/FROM OTHER FUNDS AND INTERFUND TRANSFERS Amounts Due To/From Other Funds at August 31, 2012 include the following:

Interfund InterfundReceivables Payables

General Fund 3,717,795$ $ Debt Service Fund 222,261Capital Projects Fund 69,669Other Governmental Funds Special Revenue Funds:

McKinney-Vento Homeless Education 24,285ESEA, Title I, Part A 540,623IDEA-Part B, Formula 1,106,955IDEA-Part B, Preschool 25,192Nutrition and Food Services 3,110,948Voc. Ed.-Basic Grant 33,064ESEA, Title II, Part A 391,403ESEA, Title III, Part A 513,980Medicaid Administrative Claiming 48,979Education Jobs Fund 613,119Early Childhood Intervention 241,583SSA, IDEA-Part B, Discretionary 17,674SSA, IDEA-Part B, Deaf 561SSA, IDEA-Part B, Preschool Deaf 6,367SSA, IDEA-Part C, Early Intervention 271Non-Educational Community Support 3,307Advanced Placement Incentives 9,609Instructional Materials Allotment 248,220Read to Succeed License Plate Program 103State Funded Special Revenue 41,647SSA, Regional Deaf Cooperative 58,303SSA, Deaf Local Share 6,238Campus Activity Funds 3,066,096Locally Funded Special Revenue 233Tax Increment Reinvestment Zone 468,281 Total Special Revenue Funds/Other Gov. Funds 3,373,007 7,204,034Total Governmental Funds 7,313,063 7,273,703

Internal Service Fund 39,360

Total - All Funds 7,313,063$ 7,313,063$

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NOTE 6 – AMOUNTS DUE TO/FROM OTHER FUNDS AND INTERFUND TRANSFERS (continued) The District had not cleared the interfund payables and receivables at year end. Most of the amounts

represent short-term borrowings between funds for operating expense payments. Transfers between funds in fiscal year 2012 are as follows:

Transfers TransfersIn Out

Governmental Funds:General Fund 468,281$ 3,237,982$ Debt Service Fund 3,613,433Capital Projects Fund 375,451Other Governmental Funds:

Special Revenue Funds:Tax Increment Reinvestment Zone 468,281

Total Special Revenue Funds 468,281

Total Governmental Funds 4,081,714$ 4,081,714$

Transfers are used to: 1) move interest revenues from the Capital Projects Fund where they are collected to the Debt Service Fund for payment of principal and interest, 2) move Tax Increment Reinvestment Zone Funds to the General Fund to cover net operating costs of the Leonard Merrell Center and 3) move the federal subsidy payment on the Build America Bonds from the General Fund to the Debt Service Fund for payment of principal and interest.

NOTE 7 – AMOUNTS DUE FROM AND TO OTHER GOVERNMENTS Receivables Due from Other Governments at August 31, 2012 consisted of the following:

OtherGeneral Capital Projects Governmental

Fund Fund Funds TotalDue from State Agencies: State Grant Expenditure Reimbursement $ $ 120,224$ 120,224$ State Retirement System Overpayment 68,168 68,168Due from Federal Agencies: Federal Grant Expenditure Reimbursement 4,140,321 4,140,321Due from Local Agencies: Local Grant Expenditure Reimbursement 9,244 9,244 Katy Development Authority Reimbursement 292,700 292,700

Total Due from Other Governments 68,168$ 292,700$ 4,269,789$ 4,630,657$

Payables Due to Other Governments at August 31, 2012 consisted of the following:

General Debt ServiceFund Fund Total

Due to State Agencies: State Summary of Finances 14,428,066$ 845,723$ 15,273,789$ Due to Local Agencies: Katy Development Authority 2,435,819 2,435,819

16,863,885$ 845,723$ 17,709,608$

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NOTE 8 – CAPITAL ASSETS

Prior to GASB Statement No. 34, the District was not required to calculate depreciation expense on capital assets. In accordance with the implementation of GASB Statement No. 34, capital assets have been adjusted to reflect historical cost for the purpose of calculating depreciation. Capital asset activity for the governmental activities of the District for the year ended August 31, 2012 is as follows:

Balance Additions Retirements BalanceSeptember 1, 2011 and Transfers and Transfers August 31, 2012

Governmental ActivitiesCapital Assets not being Depreciated:

Land 70,658,230$ 1,220,284$ (475,765)$ 71,402,749$ Construction in Progress 40,505,653 89,672,665 (40,505,653) 89,672,665Total Capital Assets, not being

Depreciated 111,163,883 90,892,949 (40,981,418) 161,075,414Capital Assets being Depreciated:

Land Improvements 49,437,573 1,659,496 (50) 51,097,019Buildings and Improvements 999,482,152 75,848,758 39,126,247 1,114,457,157Furniture and Equipment 132,551,810 22,794,891 (9,936,616) 145,410,085Capital Leases 24,033,197 7,088 (860) 24,039,425Vehicles 37,871,170 4,619,557 (966,193) 41,524,534Total Capital Assets, being

Depreciated at Historical Cost 1,243,375,902 104,929,790 28,222,528 1,376,528,220

Less: Accumulated Depreciation for:Land Improvements (19,875,126) (2,155,674) (22,030,800)Buildings and Improvements (244,039,000) (24,106,944) 30,923 (268,115,021)Furniture and Equipment (72,185,018) (12,422,126) 7,165,118 (77,442,026)Capital Leases (3,064,186) (514,870) 860 (3,578,196)Vehicles (18,623,824) (2,381,757) 919,159 (20,086,422)

Total Accumulated Depreciation (357,787,154) (41,581,371) 8,116,060 (391,252,465)

Governmental Activities Capital Assets, Net 996,752,631$ 154,241,368$ (4,642,830)$ 1,146,351,169$

Capital Leases included in the above schedule consist of the following major classes:

Balance Additions Retirements BalanceSeptember 1, 2011 and Transfers and Transfers August 31, 2012

Capital Lease AssetsLand Improvements 163,506$ $ $ 163,506$ Buildings and Improvements 23,218,103 23,218,103Furniture and Equipment 651,588 7,088 (860) 657,816

Total Capital Lease Assets 24,033,197 7,088 (860) 24,039,425

Less: Accumulated Depreciation for:Land Improvements (1,525) (300) (1,825)Buildings and Improvements (2,815,431) (473,935) (3,289,366)Furniture and Equipment (247,230) (40,635) 860 (287,005)

Total Accumulated Depreciation (3,064,186) (514,870) 860 (3,578,196)

Capital Leases, Net 20,969,011$ (507,782)$ $ 20,461,229$

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NOTE 8 – CAPITAL ASSETS (continued) Depreciation expense of the governmental activities was charged to functions/programs as follows:

Instruction 21,905,511$ Instructional Resources and Media Services 1,766,640 Curriculum and Instructional Staff Development 11,829 Instructional Administration 31,620 School Administration 1,518,099 Guidance and Counseling Services 689,229 Health Services 670,867 Student Transportation 3,197,301 Food Service 3,047,331 Cocurricular/Extracurricular Activities 2,361,304 General Administration 568,506 Plant Maintenance and Operations 2,173,681 Security and Monitoring Services 113,704 Data Processing Services 3,517,278 Capital Facilities 8,471Total Depreciation Expense Governmental Activities 41,581,371$

Construction in progress and remaining commitments under related construction contracts at August 31,

2012 are as follows:

Construction in Progress:

Contract Other ConstructionProject Expenditures Project Costs in Progress

High School #7 56,710,989$ 1,852,432$ 58,563,421$ Katy High West Campus Replacement 11,977,616 533,966 12,511,582Taylor High Renovation 17,962,696 556,719 18,519,415High School Performing Arts Center Renovations 76,125 2,122 78,247

86,727,426$ 2,945,239$ 89,672,665$

Contract and related commitments:

Authorized Contract RemainingProject Contract Expenditures Commitment

High School #7 82,979,197$ 56,710,989$ 26,268,208$ Katy High West Campus Replacement 24,922,511 11,977,616 12,944,895Taylor High Renovation 33,750,670 17,962,696 15,787,974High School Performing Arts Center Renovations 105,000 76,125 28,875

141,757,378$ 86,727,426$ 55,029,952$

As explained in Note 3, encumbrance accounting is utilized to assure effective budgetary control. As of August 31, 2012 the General Fund had $671,077, the Capital Projects Fund had $71,275,524 and Other Governmental Funds had $489,738 in outstanding encumbrances.

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NOTE 9 – LONG-TERM DEBT General Obligation Bonds General long-term debt of the District consists of General Obligation Bonds which provide funds to

construct, acquire, and equip school buildings and purchase necessary sites for school buildings. Certain outstanding bonds may be redeemed at their par value prior to their normal maturity dates in accordance with the terms of the related bond orders. The District has never defaulted on any principal or interest payment.

In November 2010 voters authorized $459,795,000 of General Obligation Bonds. The District has

$109,795,000 of remaining authorized but unissued bonds at August 31, 2012. General long-term debt consists of bonds payable and accretion of capital appreciation bonds. Bonds are

payable solely from revenues of the Debt Service Fund which consists primarily of property taxes collected by the District, state existing debt and instructional facilities allotments, and investment income. The capital lease is paid from General Fund property tax revenues generated within the Tax Increment Reinvestment Zone.

Changes in Long-Term Debt A summary of long-term debt transactions of the District for the year ended August 31, 2012 is as follows:

Balance at Balance at Due September 1, August 31, Within

2011 Additions Retirements 2012 One YearGeneral Obligation Bonds 1,077,256,097$ 297,155,000$ 209,311,136$ 1,165,099,961$ 35,255,000$ Accreted Interest on Capital Appreciation Bonds 9,711,419 451,554 753,864 9,409,109Imputed Borrowing 43,969,389 317,849 43,651,540 2,600,583Deferred Amounts: Bond Issuance Premiums 14,690,362 21,812,418 1,950,413 34,552,367 Bond Refundings (480,632) 9,051,718 149,869 8,421,217 Total Bonds Payable 1,101,177,246 372,440,079 212,483,131 1,261,134,194 37,855,583

Capital Leases 19,645,000 2,285,000 17,360,000 1,115,000

Compensated Absences 18,503,226 1,551,684 538,456 19,516,454 570,012

Total 1,139,325,472$ 373,991,763$ 215,306,587$ 1,298,010,648$ 39,540,595$

The District is in compliance with all significant bond and note limitations and restrictions.

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NOTE 9 – LONG-TERM DEBT (continued) Outstanding bonded debt at August 31, 2012 consisted of the following:

Interest Debt Issue Description Rate Matures Outstanding

25,000,000$ Series 1996-A Limited Tax School Building Bonds 4.75-6.40 % 2017 3,100,000$

64,674,958 Series 2003-A Unlimited Tax School Building Bonds 2.00-5.00 2013 8,065,000

6,029,997 Series 2004-B Limited Tax Refunding Bonds 2.00-4.00 2020 480,001

23,055,000 Series 2005-A Unlimited Tax Refunding Bonds 3.00-5.25 2032 21,765,000

29,685,000 Series 2005-B Unlimited Tax Refunding Bonds 3.00-5.25 2032 26,625,000

29,995,000 Series 2006 Unlimited Tax School Building Bonds 4.00-5.00 2036 27,975,000

65,000,000 Series 2007-A Unlimited Tax School Building Bonds 4.25-5.00 2037 59,810,000

167,944,959 Series 2007-B Unlimited Tax Refunding Bonds 4.00-5.00 2035 164,579,960

61,395,000 Series 2007-C Limited Tax Refunding Bonds 4.00-5.63 2027 55,905,000

80,000,000 Series 2007-D Unlimited Tax School Building Bonds 4.25-5.63 2037 56,800,000


38,235,000 Series 2008-B Limited Tax Refunding Bonds 3.75-4.38 2024 33,745,000

97,700,000 Series 2008-C Unlimited Tax School Building Bonds 2.75-5.00 2038 84,940,000

24,315,000 Series 2009 Unlimited Tax School Building Bonds 2.00-5.00 2038 22,660,000


11,625,000 Series 2010-B Limited Tax Refunding Bonds 3.00-5.00 2027 10,050,000

41,470,000 Series 2010-C Unlimited Tax School Building Bonds 4.00-5.00 2021 36,190,000

155,000,000 Series 2010-D Unlimited Tax School Building Bonds 4.50-5.30 2041 155,000,000

6,220,000 Series 2010-E Limited Tax Refunding Bonds 2.00-4.00 2017 4,720,000

147,680,000 4.00-5.00 2042 147,680,000

34,475,000 Series 2012-B Variable Rate Unlimited Tax Refunding Bonds 4.00-5.00 2031 34,475,000

115,000,000 Series 2012-C Variable Rate Unlimited Tax Refunding Bonds 4.00-5.00 2036 115,000,000

1,165,099,961

(35,255,000)43,651,54034,552,367

8,421,217

1,216,470,085$Total Bonded Debt Long-Term

Total Bonded Debt

Series 2012-A Unlimited Tax School Building & Refunding Bonds

Less Amounts Due Within One Year

Plus Unamortized PremiumsPlus Unamortized Refundings

Plus Unamortized Imputed Borrowing

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NOTE 9 – LONG-TERM DEBT (continued) Annual requirements to amortize all bonded long-term debt outstanding (including accretion) as of August

31, 2012 are as follows:

FiscalYear Principal Interest Totals2013 35,255,000$ 55,593,306$ 90,848,306$ 2014 34,902,444 55,636,909 90,539,3532015 36,831,822 53,557,147 90,388,9692016 40,571,333 52,588,901 93,160,2342017 39,537,539 51,882,069 91,419,6082018 41,486,823 50,461,065 91,947,8882019 46,395,000 45,558,482 91,953,4822020 47,510,000 43,371,479 90,881,4792021 49,700,000 41,037,393 90,737,3932022 50,570,000 38,679,851 89,249,8512023 51,940,000 36,289,528 88,229,5282024 53,825,000 33,794,505 87,619,5052025 53,045,000 31,232,380 84,277,3802026 54,855,000 28,616,096 83,471,0962027 52,950,000 25,954,522 78,904,5222028 55,330,000 23,274,488 78,604,4882029 49,310,000 20,670,909 69,980,9092030 48,385,000 18,257,887 66,642,8872031 45,820,000 15,924,711 61,744,7112032 40,900,000 13,775,144 54,675,1442033 32,675,000 11,918,541 44,593,5412034 35,225,000 10,175,908 45,400,9082035 36,920,000 8,322,946 45,242,9462036 37,130,000 6,431,247 43,561,2472037 24,860,000 4,579,479 29,439,4792038 19,165,000 3,384,884 22,549,8842039 14,020,000 2,443,360 16,463,3602040 14,660,000 1,612,302 16,272,3022041 15,065,000 750,296 15,815,2962042 6,260,000 156,500 6,416,500

1,165,099,961 785,932,235 1,951,032,196

35,255,000 55,593,306 90,848,306Long Term Debt 1,129,844,961$ 730,338,929$ 1,860,183,890$ Less: Current Portion

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NOTE 9 – LONG-TERM DEBT (continued) Interest Rate Swap Agreements Variable Interest Rate Bonds Synthetic Fixed Rate Swaps

On July 28, 2004 as a means to reduce its borrowing cost in comparison to the issuance of traditional fixed rate bonds, the District entered into two identical pay fixed/receive variable rate swap agreements on the District’s $115,000,000 Variable Rate Unlimited Tax School Building Bonds, Series 2004-C (“2004-C Bonds”). The swap agreements and the bonds were issued at the same time. The swap agreements are with JP Morgan Chase Bank, N.A. and Bank of America, N.A., each in an original notional amount of $57,500,000 in order to synthetically fix the interest obligations on the variable interest bonds. On July 17, 2012 the District refunded the 2004-C Bonds with the $115,000,000 Variable Rate Unlimited Tax Refunding Bonds, Series 2012-C (“2012-C Bonds”) in order to mitigate bank risk while increasing the effectiveness of the hedging derivative.

Objective

The objective of the swaps is to hedge against the potential of rising interest rates in conjunction with the District’s $115,000,000 outstanding variable rate debt. The interest rate swaps were effective hedges as of the prior reporting period with each swap’s cumulative change in fair value recorded in deferred outflows on the Statement of Net Position. The refunding of the 2004-C Bonds is considered a termination event as described in Governmental Accounting Standards Board (GASB) Statement 53. As of the refunding date the swaps are considered to be off-market, consisting of an imputed at-the-market swap and an imputed borrowing. The fair values of the derivative instruments outstanding at August 31, 2012 and the changes in fair values for the year then ended are as follows:

Fair Value at August 31, 2012Governmental Activities Classification Amount

Cash Flow Hedge:Pay fixed interest rate swap Asset: Interest Rate Swaps $2,596,012

Liability: Imputed Borrowing 43,651,540Negative Fair Value $41,055,528

Changes in Fair Value

Governmental Activities Classification AmountCash Flow Hedge:

Pay fixed interest rate swap Deferred Amount on Refunding $12,270,426Deferred Inflows: Interest Rate Swap (2,596,012)

Terms The swaps notional amounts total $115,000,000, the principal amount of the associated 2012-C Bonds.

The District’s swap agreements contain scheduled reductions to outstanding notional amounts that follow anticipated payments of principal of the 2012-C Bonds in varying amounts during the years 2019 to 2036. Under the terms of the swaps, the District will pay a fixed rate of 3.92% and receive a floating rate equal to 67% of the one-month London Interbank Offered Rate (LIBOR) Index. All agreements were effective July 28, 2004, the date of issuance of the 2004-C Bonds. The termination date is August 15, 2036.

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NOTE 9 – LONG-TERM DEBT (continued) Interest Rate Swap Agreements (continued) For the fiscal year ending August 31, 2012 the effective rate of the bonds associated with the swaps is as

follows:

RatePaid

Terms (Received)

Fixed rate paid for swaps 3.920 %Variable rate payment received from counterparties LIBOR x 67% (0.167)Net rate paid/(received) for swaps 3.753Average variable rate paid on bonds associated with swaps 0.285Remarketing & liquidity fees 0.492Effective rate of bonds associated with swaps 4.530 %

In contrast, the fixed rate the District would have paid on General Obligation Bonds at a comparable maturity on the same original sale date in 2004 would have been 5.15%. The savings in interest expenditures realized by participating in the swap agreement is $14,703,290 as compared to costs the District would have incurred if the debt had been issued as traditional fixed rate bonds at the time of original issuance.

Fair Value

Because LIBOR interest rates have declined since inception of the swaps, the swaps had a negative fair value of $41,055,528 on August 31, 2012. This value was calculated using the zero-coupon method. This method calculates the future net settlement payments required by the swap, assuming that the current forward rates implied by the yield curve correctly anticipate future spot interest rates.

Credit Risk As of August 31, 2012, the District was not exposed to credit risk because the swaps had a negative fair

value. However, should interest rates increase and the fair value of the swaps become positive, the District would be exposed to credit risk on the swaps in the amount of its fair value.

Basis Risk

The 2012-C Bonds were issued as Floating Rate Notes. During the initial three-year rate period, the interest rate on the hedged bonds is indexed to 67% of one-month LIBOR with monthly rate resets plus a constant of 65 basis points. The reference rate on the floating leg of each hedging derivative is also 67% of one-month LIBOR with weekly rate resets. Because the variable amount the District is paying and receiving are both based on the same index, the District is not exposed to basis risk.

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NOTE 9 – LONG-TERM DEBT (continued) Interest Rate Swap Agreements (continued)

Interest Rate Risk Interest payments on the hedged variable-rate debt are expected to increase (decrease) as LIBOR rates increase (decrease). Because the variable amount the District is paying and receiving are both based on 67% of one-month LIBOR, the District’s exposure to interest rate risk is mitigated. Termination Risk The District has the unilateral right to voluntarily terminate the swap agreements at any time over their term at the then prevailing market value. A counterparty may only terminate a swap if the District fails to perform under the terms of the contract. The District’s options are to terminate with the swap providers at an agreed market value, assign the Swap to a third party based on bids or quotes, or enter into an off-setting swap transaction. If the swap should be terminated, the associated variable-rate bonds would no longer carry synthetic fixed interest rates. Also, if at the time of the termination the swap has a negative fair value, the District would be liable to the counterparty for a payment equal to the swap’s fair value. The negative fair value of the swap agreements does not expose the District to a loss because it is unlikely the District would exercise its termination rights when the fair value is negative. However, should interest rates change and the fair value of the swap agreements become positive, the District would receive payment of the fair value if the agreements were terminated.

The swap agreements are subject to termination in the event of default or if the ratings assigned to either the District’s or the counterparty’s unenhanced long-term debt obligations are withdrawn or reduced to BBB- by S&P or Baa3 by Moody’s. At August 31, 2012, the credit rating assigned to JP Morgan Chase Bank, N.A. is A+ by S&P and Aa3 by Moody’s, while the credit rating assigned to Bank of America, N.A. is A by S&P and A3 by Moody’s.

Remarketing and Rollover Risk The 2012-C Bonds will bear interest initially at the rate of 67% of one-month LIBOR plus 65 basis

points from July 17, 2012 through and including August 14, 2015. The bonds do not require a liquidity agent or a remarketing agent for that time period and therefore the District is not exposed to remarketing risk during the initial rate period.

Thereafter, the bonds will bear interest at a LIBOR rate determined by a remarketing agent to be

selected by the District before the end of the initial rate period. In the event the remarketing agent at the conversion date cannot remarket the bonds, the District does not have any obligation to purchase the bonds at that time. In this event, the bonds that have been unsuccessfully remarketed will bear interest at a rate of eight percent.

The District’s 2012-C Bonds and swaps have matching notional maturity dates of August 15, 2036;

therefore, the District is not exposed to rollover risk at this time.

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NOTE 9 – LONG-TERM DEBT (continued) Interest Rate Swap Agreements (continued)

Swap Payments and Associated Debt

As of August 31, 2012 the following are debt service requirements assuming current interest rates during the initial rate period, and rates returning to pre-refunding rates thereafter.

Fiscal Year

Ending Principal Interest* Total2013 $ 5,463,651$ 5,463,651$ 2014 5,255,500 5,255,500 2015 5,255,500 5,255,500 2016 5,511,920 5,511,920 2017 5,506,655 5,506,655

2018-36 115,000,000 65,430,335 180,430,335

Total 115,000,000$ 92,423,561$ 207,423,561$

*Initial rate period (July 17, 2012 through August 14, 2015) budgeted at 4.57%. Assumes 3.92% synthetic fixed rate and .65% constant. Variable rate payments and receipts negate as they are based on the same index and percentage.

Thereafter (August 15, 2015 through August 15, 2036) budgeted at 4.795%. Assumes 3.92% synthetic fixed rate, .40% liquidity fees, .35% budgeted reserve, and .125% remarketing fees.

Accreted Interest on Premium Compound Interest Bonds A portion of the Series 1992, 2005, and 2007 refunding bonds are capital appreciation bonds. These

obligations have a principal value of $304,928 and a maturity value of $11,425,000. The interest on these obligations will be paid upon maturity in the fiscal years ending August 31, 2014 through August 31, 2018. The accreted value of these bonds at August 31, 2012 is $9,714,037 including accreted interest on these bonds of $9,409,109, which is reflected in the accompanying general long-term debt accounts.

Current Year Refundings In June 2012 the District issued Series 2012-A Bonds in the amount of $147,680,000 including $18,310,000

in Unlimited Tax Refunding Bonds. The refunding bonds have an average interest rate of 3.04% and were issued to refund outstanding Series 2003-A and 2004-A Unlimited Tax School Building Bonds with an average interest rate of 4.55%. The proceeds were deposited in an irrevocable trust with an escrow agent to provide for future debt service payments on the outstanding bonds. As a result $21,330,000 of the Series 2003-A and 2004-A Bonds are considered to be defeased and the liability for those bonds has been removed from the long-term debt of the District. This refunding reduced the District’s total debt service payment by $3,611,647 for an economic gain of $2,787,832 (difference between the present values of the debt service payments on the old and new debt).

In July 2012 the District issued $34,475,000 of Series 2012-B Variable Rate Unlimited Tax Refunding

Bonds. The refunding bonds have an average interest rate of 5.00% on the 2028 term bond and 1.60% on the 2031 term bond during the initial rate period through August 14, 2017 and a budgeted average interest rate of 5.00% thereafter. These bonds were issued to refund outstanding Series 2000 Unlimited Tax Variable Rate Bonds with an average interest rate of 6.00%. The proceeds were deposited in an irrevocable trust with an escrow

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NOTE 9 – LONG-TERM DEBT (continued) Current Year Refundings (continued) agent to provide for future debt service payments on the outstanding bonds. As a result $37,800,000 of the

Series 2000 Bonds are considered to be defeased and the liability for those bonds has been removed from the long-term debt of the District. This refunding reduced the District’s total debt service payment by $14,510,902 for an economic gain of $12,562,302 (difference between the present values of the debt service payments on the old and new debt).

Also in July 2012 the District issued $115,000,000 of Series 2012-C Variable Rate Unlimited Tax Refunding

Bonds. The refunding bonds have an average interest rate of 4.57% during the initial rate period through August 14, 2012 and a budgeted average interest rate of 4.795% thereafter. These bonds were issued to refund outstanding Series 2004-C Unlimited Tax Variable Rate Bonds with an average interest rate of 4.795%. The proceeds were deposited into an irrevocable trust with an escrow agent to provide for future debt service payments on the outstanding bonds. As a result $115,000,000 of the Series 2004-C Bonds are considered defeased and the liability for those bonds has been removed from the long-term debt of the District. The refunding reduced the District’s total debt service payment by $1,037,483 for an economic gain of $1,027,671 (difference between the present values of the debt service payments on the old and new debt).

Prior Year Advanced Refunding of General Long-Term Debt In prior years the District defeased certain outstanding School Building and Refunding Bonds by placing the

proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the respective trust account assets and the liability for the defeased bonds are not included in the District’s Financial Statements. At August 31, 2012 approximately $242.4 million previously refunded bonds outstanding are considered defeased.

Build America Bonds In February 2009, as part of the American Recovery and Reinvestment Act of 2009, Congress added

Sections 54AA and 6431 to the Internal Revenue Code of 1986, which permit state and local governments to obtain certain tax advantages when issuing taxable obligations that meet certain requirements of the Code and the related Treasury regulations. Such obligations are referred to as Build America Bonds (BABs).

In December 2010, the District issued Series 2010-D Bonds in the amount of $155,000,000 under the BABs

program. Under this program, the District receives semi-annual subsidies equal to 35% of the interest it pays on the bonds. The subsidy payments received by the District will not be pledged as security for the payment of the Series 2010-D Bonds and no holder of the Series 2010-D Bonds will be entitled to a tax credit or any subsidy payment with respect to the Series 2010-D Bonds. The District intends to use the subsidy payments for any lawful purpose, which may include payment of principal and interest on the Series 2010-D Bonds. In the fiscal year ended August 31, 2012 the District received $3,237,982 in such subsidies. The amount received was recorded as federal revenue in the General Fund and, at the discretion of the District, was transferred to the Debt Service Fund.

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NOTE 10 – COMMITMENT TO FINANCE MULTI-PURPOSE COMPLEX THROUGH PARTICIPATION IN TAX INCREMENT REINVESTMENT ZONE AGREEMENTS Under a series of agreements, the District agreed to provide funding to finance $25,590,000 of tax-exempt

bonds issued in September 2002 by the Katy Development Authority (KDA). The Bonds are legally described as The Katy Development Authority Tax Increment Contract Revenue Bonds (Katy ISD Contract), Series 2002. The Bonds were issued pursuant to the terms and conditions of a Bond Resolution approved by the KDA Board. The issuance of the bonds was approved by the Zone Board and the City Council of the City of Katy (City). In June 2012 the KDA refunded the $18,800,000 outstanding Series 2002 Bonds by issuing Series 2012 Refunding Bonds in the amount of $17,360,000.

Capital Lease Arrangement The arrangements under the series of agreements constitute a capital lease arrangement for the District in

constructing a multi-purpose complex and this arrangement is not altered by the refunding. The District recorded a capital lease obligation and a related asset in the approximate amount of the original bonds. Total assets under capital lease at August 31, 2012 were $24,039.425. Of that amount $23,218,103 is classified as Buildings and Improvements, $657,816 is Furniture and Equipment and $163,506 is Land Improvements.

The bond proceeds were used to construct a multi-purpose complex for large District functions. It is also

available for rent by outside entities. Although the KDA legally owns the multi-purpose center, the agreements provide that the District lease, construct, and control the use of this facility during the life of the bonds issued to construct it. Ownership of the multi-purpose complex will revert to the District once the bonds are retired. District collected tax increments from the General Fund will be used to pay the debt during this term through a lease arrangement between the District and the KDA. No rent paid to the District for use of the multi-purpose complex will be pledged as security for the bonds. Bond proceeds and interest earnings not yet disbursed for construction are shown as a receivable from other governments in the Capital Projects Fund at August 31, 2012.

Pursuant to an Amended and Restated Interlocal Agreement between the City and the District (the Interlocal

Agreement), the District has agreed to pay to the City for deposit to a special account of the Tax Increment Fund established for the Zone (the Tax Increment Fund) certain of its tax collections resulting from its taxation of the increase, if any, in the appraised value of real property located in the Zone since the designated base year of 1997 (the District Tax Increments). The City, the KDA, and the Zone have entered into an agreement (the Tri-Party Agreement) which sets forth, among other things, the agreement of the City on behalf of itself and the Zone, to pay to the KDA the District Tax Increments. Once debt service on the bonds for the current bond year has been deposited and the applicable fees have been paid, the District may use any surplus as specified in the Interlocal Agreement.

The KDA has pledged to the payment of the bonds all of its rights to the District Tax Increments and all of

its rights in the project and project site.

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NOTE 10 – COMMITMENT TO FINANCE MULTI-PURPOSE COMPLEX THROUGH PARTICIPATION IN TAX INCREMENT REINVESTMENT ZONE AGREEMENTS (continued) Capital Lease Arrangement (continued) Significant aspects of the bonds/capital lease obligation of the District are shown below:

Maturity DateSerially, Interest

Amount Interest Beginning/ Payment CallableSeries Outstanding Rates Ending Dates Dates

2012 17,360,000$ 2.88% 5/15/13 to May 15/ 2017*5/15/25 November 15 2020**

*Bonds maturing on or after May 15, 2017 through May 15, 2020 are subject to redemption at a price of 102% of par value plus unpaid accrued interest from the most recent interest payment date to the date fixed for redemption.

**Bonds maturing on or after May 15, 2021 are subject to redemption in whole, or from time to time in part, at the option of KDA prior to their maturity dates on May 15, 2020 or on any date thereafter at a price of par value plus unpaid accrued interest from the most recent interest payment date to the date fixed for redemption.

The debt service requirements on the bonds/capital lease obligation of the District are as follows:

Fiscal Year Ended Annual

August 31, Principal Interest Debt Service2013 1,115,000$ 452,749$ 1,567,749$ 2014 1,150,000 467,856 1,617,8562015 1,185,000 434,736 1,619,7362016 1,220,000 400,608 1,620,6082017 1,255,000 365,472 1,620,4722018 1,290,000 329,328 1,619,3282019 1,325,000 292,176 1,617,1762020 1,365,000 254,016 1,619,0162021 1,405,000 214,704 1,619,7042022 1,445,000 174,240 1,619,2402023 1,490,000 132,624 1,622,6242024 1,535,000 89,712 1,624,7122025 1,580,000 45,504 1,625,504

Total 17,360,000 3,653,725 21,013,725Less: Current Portion 1,115,000 452,749 1,567,749Long Term Lease 16,245,000$ 3,200,976$ 19,445,976$

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NOTE 10 – COMMITMENT TO FINANCE MULTI-PURPOSE COMPLEX THROUGH PARTICIPATION IN TAX INCREMENT REINVESTMENT ZONE AGREEMENTS (continued) Capital Lease Arrangement (continued) The average annual calendar debt service on the bonds is $1,616,440 through maturity. The maximum

annual calendar debt service on the bonds is $1,625,504 through maturity. Through the fiscal year ended August 31, 2012, the District has paid $29,066,793 in collected tax increments

and state revenues to the KDA. The District will pay additional tax increments of $1,683,555 collected in fiscal 2011-12 and state revenues of $752,264 to the KDA in fiscal 2012-13, and these amounts have been included as a liability in these financial statements. The District estimates that it will collect an additional $2,693,784 in tax increments and state revenues in fiscal 2012-13 to be paid to the KDA in the 2013-14 fiscal year. The tax increment base value is $4,397,510 and the certified taxable value in the Zone for the 2012 tax year is $165,262,840. The District has received $7,047,082 in tax collections in excess of bond payment requirements and related expenses. These proceeds have been placed in a special revenue fund to be used within the TIRZ at the discretion of the District.

Other Significant Information

The KDA, a public not-for-profit local government corporation, was authorized to be established by the City

of Katy, Texas in 1998, to aid, assist, and act on behalf of the City in the performance of the City’s governmental functions and to provide a means of financing certain project costs in connection with Reinvestment Zone Number One, City of Katy, Texas (the Zone). The KDA is governed by a board of directors (the Board), whose voting members are appointed by the City. KDA is the administrator of the Zone. The KDA is considered a discretely presented component unit of the City in accordance with accounting principles generally accepted in the United States of America applicable to state and local governments.

The Zone was created by the City Council of the City, pursuant to the provisions of the Tax Increment

Financing Act, Chapter 311, Texas Tax Code (the TIF Act), to facilitate development of the land within the boundaries of the Zone, consisting of land located entirely within the City and Fort Bend County (the County). The majority of the Zone, consisting of 479 acres, is bounded by Interstate 10 on the north, Pin Oak Village and Falcon Point on the south, Katy Fort Bend Road on the east, and Pin Oak Road on the west. An interchange on Interstate provides direct access to the Zone. The remainder of the property in the Zone is located north of Interstate 10 and is owned by the District.

The ordinance of the City establishing the Zone also established a board of directors of the Zone (the Zone

Board). The Board of Directors of the Zone consists of nine persons: five appointed by the City, one appointed by the County, one appointed by the District, one appointed by the state senator in whose district the Zone is located, and one appointed by the state representative in whose district the Zone is located.

As required under the TIF Act, the Zone Board adopted, and the City Council of the City approved, a Project

Plan and Reinvestment Zone Financing Plan, which has been amended (as amended, the Plan). The Plan sets out the public improvements needed to develop or induce development within the Zone (the Public Improvements). The cost of the Public Improvements, the cost of creation of the Zone, and related organizational costs (the Project Costs) constitute eligible project costs under the TIF Act, which may be financed with proceeds of the bonds.

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NOTE 11 – DEFERRED REVENUES Governmental funds report deferred revenue in connection with receivables for revenues that are not

considered to be available to liquidate liabilities in the current period. Government funds also defer revenue recognition in connection with resources that have been received but not yet earned. At the end of the current fiscal year, the various components of deferred revenue and unearned revenue at August 31, 2012 reported in the governmental funds were as follows:

Unavailable Unearned

Net Property Taxes Receivable (General Fund) 7,536,421$ $ Net Property Taxes Receivable (Debt Service Fund) 2,333,398Proceeds-Expenditure Driven State Grants (Special Revenue Fund) 10,239Revenues Received Prior to Meeting all Expenditure Requirements (General Fund) 200,561

Total 9,880,058$ 200,561$

NOTE 12 – FUND EQUITY Nonspendable, Restricted, Committed and Assigned Fund Balance A summary of nonspendable, restricted, committed and assigned fund balance at August 31, 2012 is as

follows:

Capital OtherFund Balances: General Debt Service Projects Governmental

Nonspendable: Inventory 1,005,386$ $ $ 239,268$ Prepaid Items 231,458 Total Nonspendable 1,236,844$ $ $ 239,268$ Restricted for: Long-Term Debt $ 43,826,476$ $ $ Capital Acquisitions and Contracts 85,457,980 Food Services 5,594,637 Tax Increment Zone 3,779,040 Health Services 111,039 Total Restricted $ 43,826,476$ 85,457,980$ 9,484,716$ Committed to: Self Funded Insurance 5,000,000$ $ $ $ Campus Activity Funds 2,807,308 Total Committed 5,000,000$ $ $ 2,807,308$ Assigned to: Future Technology Retrofits 14,350,000$ $ $ $ Opening Additional Schools 7,913,350 Patient Protection and Affordable Care Act 6,300,000 Future Land Purchase 5,000,000 Capital Expenditures for Equipment 638,666 Other Assignments-Encumbrances 671,077 Total Assigned 34,873,093$ $ $ $

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NOTE 13 – REVENUES FROM LOCAL AND INTERMEDIATE SOURCES During the current year, revenues from local and intermediate sources consisted of the following:

Capital OtherGeneral Debt Service Projects Governmental Total

Property Taxes 230,844,411$ 81,929,558$ $ $ 312,773,969$ Penalties, Interest, and Other Tax Related Income 1,574,863 510,822 2,085,685Summer School, Tuition and Fees 1,357,487 1,357,487Investment Income 517,358 218,258 375,777 22,848 1,134,241Food Sales 13,674,370 13,674,370Cocurricular Student Activities 1,320,056 1,320,056Facility Rental 2,144,053 2,144,053Other 1,210,440 61,004 4,951,081 6,222,525

Total 238,968,668$ 82,719,642$ 375,777$ 18,648,299$ 340,712,386$

NOTE 14 – GENERAL FUND FEDERAL PROGRAM REVENUES For purposes of regulatory requirements of the Texas Education Agency, a summary of federal program

revenues received in the General Fund for the year ended August 31, 2012 follows:

CFDAProgram or Source Number Amount

Naval Junior Reserve Officers Training Program n/a 70,511$ SHARS 93.778 1,854,340E-Rate School and Libraries Universal Support n/a (7,629)Build America Bonds Subsidy n/a 3,237,982Indirect Costs National School Breakfast Program 10.553 136,656 National School Lunch Program 10.553 634,638 ESEA Title I, Part A - Improving Basic Programs 84.010A 57,745 IDEA Part B - Formula 84.027A 72,087 IDEA Part B - Preschool 84.173A 1,251 Carl D. Perkins, Title I, Part C 84.048A 4,967 ESEA Title II, Part A - Teacher & Principal 84.367A 5,479 ESEA Title III, Part A 84.365 36,409 ARRA Title II, Part D 84.386A 256 ARRA IDEA Part B - Formula 84.391A 28,962 ARRA IDEA Part B - Preschool 84.392A 653 ARRA Title I, Part A 84.389A 9,247 Early Childhood Intervention Various 11,025 IDEA Part B - Deaf 84.027 343 IDEA Part B - Preschool Deaf 84.173 10

Total 6,154,932$

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NOTE 15 – RETIREMENT PLAN Retirement Plan Plan Description The Teacher Retirement System of Texas (TRS) is a multiple-employer Public Employee Retirement

System (PERS). It is a cost-sharing PERS with one exception, all risks and costs are not shared by the employer but are the liability of the State of Texas. By statute, the State of Texas contributes to the retirement system an amount equal to the current authorized rate times the aggregate annual compensation of all members of the retirement system during that fiscal year. The payroll for District employees covered by the system for the fiscal year ended August 31, 2012 was approximately $328 million. The District’s total payroll was approximately $337 million.

For members of the retirement system entitled to the state’s statutory minimum salary for certain school

personnel, the District pays the state’s contribution on the portion of the member’s salary that exceeds the statutory minimum.

Types of Employees Covered All employees of public, state-supported educational institutions in Texas who are employed for one-

half or more of the standard workload and who are not exempted from membership under Texas Government Code are covered by the plan.

Benefit Provisions The Teacher Retirement System of Texas administers retirement and disability annuities and death and

survivor benefits to employees and beneficiaries of employees of the public school system of Texas. It operates primarily under the provisions of Texas Constitution Article XVI, Section 67 and Texas Government Code, Title 8, Subtitle C. The system also administers proportional retirement benefits and service credit transfers under Texas Government Code, Title 8, Chapter 803 and Chapter 805, respectively.

Service Retirement 1. Normal Age 65 with 5 years of service Age 60 with 20 years of service (members on or after 9/01/07) Any combination of age plus years of service which equals 80 2. Reduced Age 55 with at least 5 years of service Any age below 50 (age 60 if member on or after 9/01/07) with 30 years of service Age plus years of service total 80 and less than age 60 (members on or after 9/01/07) A member is fully vested after five years of creditable service and entitled to any benefit for which

eligibility requirements have been met.

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NOTE 15 – RETIREMENT PLAN (continued) Retirement Plan (continued) Funding Policy State law provides a state contribution rate of 6.0% for fiscal year 2012 and 6.644% for fiscal years 2011

and 2010. State law further provides a member contribution rate of 6.4% for fiscal years 2012, 2011, and 2010. In certain instances, the reporting district is required to make all or a portion of the state’s 6.0% contribution.

Contribution requirements are not actuarially determined but are legally established each biennium

pursuant to the following state funding policy: (1) The state constitution requires the legislature to establish a member contribution rate of not less than 6.0% of the member’s annual compensation and a state contribution rate of not less than 6.0% of the member’s annual compensation and not more than 10% of the aggregate annual compensation of all members of the system during the fiscal year. (2) A state statute prohibits benefit improvements or contribution reductions if, as a result of the particular actions, the time required to amortize TRS’s unfunded actuarial liabilities would be increased to a period that exceeds 31 years or if the amortization period exceeds 31 years , the period would be increased by such action.

Contributions Required and Made Employees are required by state statute to pay 6.4% of their eligible gross earnings to TRS for

retirement benefits. The State of Texas contributed 6.0% of all employees’ eligible gross earnings toward retirement benefits for fiscal year 2012 and 6.644% for fiscal years 2011 and 2010, except for those District employees subject to statutory minimum requirements and those employees being paid from and participating in federally funded programs. The statutory minimum requirements are based on the State of Texas teacher schedule and then adjusted, based on local tax rates. For employees funded by federal programs, the federal programs are required to contribute 6.0% for fiscal year 2012 and 6.644% for fiscal years 2011 and 2010.

Contributions made by the state, District, and employees, and the District’s annual covered payroll for

the fiscal years are as follows:

State TRS District Percentage of District'sPension Contribuitons Required Total Payroll Employees' Annual

Fiscal Made on Behalf Contributions Contributed Contributions CoveredYear of the District to TRS By District to TRS Payroll

2010 16,808,021$ 4,397,046$ 1.32% 21,243,892$ 331,937,388$ 2011 18,891,747 4,731,099 1.33 22,752,573 355,508,5882012 15,916,845 3,783,874 1.15 21,014,124 328,345,312

The contributions made by the state on behalf of the District have been recorded in the financial

statements of the District as both state revenue and payroll expenditures. These contributions are the legal responsibility of the state.

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NOTE 15 – RETIREMENT PLAN (continued) Retirement Plan (continued) Contributions Required and Made (continued) TRS issues a publicly available financial report that includes financial statements and required

supplementary information for the defined benefit pension plan. That report may be obtained by writing to the TRS Communications Department, 1000 Red River Street, Austin, Texas 78701, by calling the TRS Communications Department at 1-800-223-8778, or by downloading the report from the TRS internet website, www.trs.state.tx.us, under the TRS Publications heading.

Retiree Health Plan Plan Description The District contributes to the Texas Public School Retired Employees Group Insurance Program (TRS-

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

Funding Policy Contribution requirements are not actuarially determined but are legally established each biennium by

the Texas Legislature. Texas Insurance Code, Sections 1575.202, 203, and 204 establish state, active employee, and public school contributions, respectively. The State of Texas and active public school employee contribution rates were 1.0% and 0.65% of public school payroll, respectively, with school districts contributing a percentage of payroll set at 0.55% for fiscal years 2012, 2011, and 2010. 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.

Contributions made by the state, District, and active employees for the years ended August 31, 2012,

2011, and 2010 to TRS-Care are as follows:

State TRS-Care District ActiveContribuitons Required Employees'

Fiscal Made on Behalf Contributions ContributionsYear of the District to TRS-Care to TRS-Care

2010 3,160,388$ 1,945,170$ 2,157,610$ 2011 3,376,823 2,090,397 2,310,8232012 3,132,700 1,920,613 2,134,245

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NOTE 15 – RETIREMENT PLAN (continued) Retiree Health Plan (continued) Medicare Part D The Medicare Prescription Drug, Improvement, and Modernization Act of 2003, 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, 2012, 2011, and 2010, the subsidy payments received by TRS-Care on-behalf of the District were $727,912, $913,527, and $825,114, respectively. The contributions made on behalf of the District have been recorded in the financial statements of the District as both revenue and payroll expenditure.

Early Retiree Reinsurance Program The Early Retiree Reinsurance Program (ERRP) is a provision of the Patient Protection and Affordable

Care Act (PPACA) and provides reimbursement to plan sponsors for a portion of the cost of providing health benefits to retirees between the ages of 55-64 and their covered dependents regardless of age. An “early retiree” is defined as a plan participant aged 55-64 who is not eligible for Medicare and is not covered by an active employee of the plan sponsor. TRS has been certified for this program and received subsidy payments of $802,644 in 2012 on behalf of the District. This contribution made on behalf of the District has been recorded in the financial statements of the District as both revenue and payroll expenditure.

Compensated Absences The District pays one-half of the locally accumulated sick leave days up to a maximum of 90

accumulated days to employees who retire with five or more years of continuous employment in the District and who retire from the state Teacher Retirement System. The majority of the payments are administered through Public Agency Retirement Services (PARS). During 2012, $538,456 was disbursed to 48 members. No assets are being held or accumulated for future distribution. The District has accrued $19,516,454 in the Government-wide Financial Statements to pay for compensated absences.

NOTE 16 – RISK MANAGEMENT The District is exposed to various risks related to torts: theft of, damage to and destruction of assets, errors

and omissions, natural disasters, health and welfare of employees for which the District carries commercial insurance or through self-insurance. No settlements have exceeded insurance coverage in the last three years.

Property, Casualty, General Liability and Professional Liability and Unemployment The District purchases commercial insurance for property loss with limits of $750 million, $50 million for

named windstorms. The policy covers up to $25 million per year for flood losses. In addition, the policy covers $1 million for the one property currently in a flood plain. The District purchases an additional $.5 million building and $.5 million contents in flood protection for this facility. Casualty risks are insured with limits of $1 million per occurrence and $3 million aggregate for commercial general liability and a $.5 million combined single limit automobile policy. Professional liability risks are insured with limits of $1 million. Within these policy limits, the District’s exposure is limited to deductibles.

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NOTE 16 – RISK MANAGEMENT (continued) Property, Casualty, General Liability and Professional Liability and Unemployment (continued) In addition to purchasing commercial insurance for property, casualty, and liability risks, the District is a

member of the Texas Association of School Boards Property/Casualty Joint Account, a public entity risk pool. The District uses the risk pool for its unemployment insurance coverage. The District’s participation in the risk pool is limited to payment premiums for its unemployment coverage. The risk pool is fully funded through annual premiums, and excess loss policies are purchased by the pool as considered necessary. Settled claims have not exceeded insurance coverage in any of the previous three fiscal years.

There has not been any significant reduction in insurance coverage from that of the previous year. Health Insurance Effective January 1, 2004, the District established a self-insurance program for health insurance coverage.

Contributions are paid from all governmental funds to the Health Insurance Internal Service Fund from which all claims and administrative expenses are paid. Claims administration and consulting services are provided to the District through a third party administrator. The District maintains both aggregate and individual stop loss coverage. Individual stop loss coverage is for catastrophic losses exceeding $600,000 per claim. The District is also insured for covered medical claims paid and incurred during the plan year by Aetna under an annual aggregate insurance contract. The coverage provides that the insurer will pay such claims that exceed the annual aggregate attachment point that is determined by a monthly amount per covered employee based on the tier of coverage in which they are enrolled.

An accrual for incurred but not reported claims in the amount of $0.8 million has been recorded in the fund

as of August 31, 2012. Claims payable, including an estimate of claims incurred but not reported, was actuarially determined based on an estimate of the remaining liability of known claims.

At August 31, 2012, the fund had net assets of $915,019. Because of past history and the method of

calculation, the District considers all claims to be current liabilities. Changes in incurred but not paid claims liability for the fiscal years ended August 31, 2012 and 2011 are as follows:

2012 2011

Beginning Accrual 1,889,246$ 3,428,749$ Current Estimates 29,112,458 29,782,709Payments for Claims (30,239,425) (31,322,212)

Ending Accrual 762,279$ 1,889,246$

Health Insurance

Workers’ Compensation The District established a limited risk management program for Workers’ Compensation in 1992 by setting

up the Workers’ Compensation Internal Service Fund to account for its insured and self-insured risk of loss. The Internal Service Fund charges the General Fund and Special Revenue Funds on the basis of payroll

incurred by each fund in order to provide for Workers’ Compensation claims of District employees. The ending retained earnings balance in the Internal Service Fund has been accumulated by the District’s management to reserve for losses which may be incurred under its self-insured plan. The Internal Service Fund services all claims for risk of loss to which the District is exposed.

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NOTE 16 – RISK MANAGEMENT (continued) Workers’ Compensation (continued) Workers’ Compensation liabilities are reported when it is probable that a loss has occurred and the amount

of that loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but were not reported until after August 31, 2012. Because of past history, the District considers all claims to be current liabilities. Because actual claims liabilities depend on such complex factors as inflation, changes in legal requirements and impairment benefits, the process used in computing claims liability results in an estimate. Claims liabilities are re-evaluated periodically to take into consideration recently settled claims, the frequency of claims, and other economic and social factors.

Claims liability activity for 2012 compared to 2011 are as follows:

2012 2011

Beginning Accrual 752,387$ 755,324$ Current Estimates 906,702 1,011,723Payments for Claims (881,046) (1,014,660)

Ending Accrual 778,043$ 752,387$

Workers' Compensation

At August 31, 2012, the District had $4.8 million in cash available for payment of Workers’ Compensation

claims. The District has also purchased an excess Workers’ Compensation policy for coverage relating to excessive Workers’ Compensation claims. The District has a $450,000 Self-Insured Retention (SIR) per any one occurrence. The policy has an obligation to pay all costs required by the Texas Workers’ Compensation Act in excess of the District’s SIR for each workers’ compensation occurrence.

NOTE 17 – ARBITRAGE In accordance with the provisions of Section 148(f) of the Internal Revenue Code of 1986, as amended,

bonds must satisfy certain arbitrage rebate requirements. Positive arbitrage is the excess of 1) the amount earned on investments purchased with bond proceeds over 2) the amount that such investments would have earned had such investments been invested at a rate equal to the yield on the bond issue. In order to comply with the arbitrage rebate requirements, positive arbitrage must be paid to the U.S. Treasury at the end of each five year anniversary date of the bond issue. The District has not recorded a liability for arbitrage as of August 31, 2012. In management’s opinion, the arbitrage liability, if any, would be immaterial to the financial statements as of August 31, 2012.

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NOTE 18 – JOINT VENTURE SHARED SERVICE ARRANGEMENTS The District is the fiscal agent for a Shared Service Arrangement (SSA) which provides services for deaf

students of the District, Bellville ISD, Brazos ISD, Royal ISD and Sealy ISD. All services are provided by the fiscal agent, and funds are received directly by the fiscal agent from the granting agency. According to guidance provided in TEA’s Resource Guide, the District has accounted for the fiscal agent’s activities of the SSA in the appropriate Special Revenue Funds and has accounted for these funds using Model 2 in the SSA section of the Resource Guide. Expenditures as of August 31, 2012 of the SSA are summarized below:

Katy ISD Bellville ISD Brazos ISD Royal ISD Sealy ISD

IDEA-B Discretionary, Deaf 43,995$ 1,158$ 579$ 1,737$ 2,894$ IDEA-B Deaf 15,668 412 206 619 1,031IDEA-B Preschool, Deaf 7,455 196 98 294 491IDEA-C Early Intervention 1,859 49 25 73 122Regional Day School For the Deaf 478,981 12,605 6,302 18,907 31,512Local Share, Deaf 149,598 3,937 1,968 5,905 9,842

697,556$ 18,357$ 9,178$ 27,535$ 45,892$

The District also participates in a Shared Service Arrangement for deaf education services with seven other

school districts. Approximately 4% of the students served by the Shared Service Arrangement are attributable to the District. The District does not account for revenues or expenditures of this program and does not disclose them in these financial statements. The District neither has a joint ownership interest in capital assets purchased by the fiscal agent, Cypress-Fairbanks ISD, nor does the District have a net equity interest in the fiscal agent.

The fiscal agent is neither accumulating significant financial resources nor fiscal contingencies that would

give rise to a future additional benefit or burden to Katy ISD. The fiscal agent manager is responsible for all financial activities of the Shared Services Arrangement. Presented below are the revenues and expenditures as of August 31, 2012 attributable to the District’s participation.

Revenues: Local Revenue 87,461$ State Revenue 62,594

Total Revenues 150,055$

Expenditures: Payroll Costs 146,792$ Contract Services 2,906 Supplies and Materials 4 Other Operating Expenditures 353

Total Expenditures 150,055$

NOTE 19 – LITIGATION AND CONTINGENCIES From time to time, the District is a defendant in legal proceedings relating to its operations as a school

district. In the best judgment of the District’s management, the outcome of any present legal proceedings will not have any adverse material effect on the accompanying financial statements.

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REQUIRED SUPPLEMENTARY INFORMATION

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KATY INDEPENDENT SCHOOL DISTRICTSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESORIGINAL BUDGET, AMENDED FINAL, AND ACTUAL - GENERAL FUNDYEAR ENDED AUGUST 31, 2012with comparative actual balances for the Year Ended August 31, 2011

Data Control

Codes Original Final Actual

REVENUES5700 Local, Intermediate, and Out-of-State 238,313,829$ 238,698,049$ 238,968,668$ 5800 State Program Revenues 195,803,842 194,550,153 194,328,9215900 Federal Program Revenues 15,315,081 7,153,184 6,154,9325020 Total Revenues 449,432,752 440,401,386 439,452,521

EXPENDITURESCurrent:

0011 Instruction 285,113,363 266,123,517 260,023,2200012 Instructional Resources and Media Services 5,953,883 5,885,165 5,832,2800013 Curriculum and Staff Development 4,751,541 4,576,158 4,394,3350021 Instructional Leadership 3,650,765 3,510,157 3,391,1650023 School Leadership 26,765,692 26,360,076 26,016,2760031 Guidance, Counseling, and Evaluation Services 16,618,763 16,370,314 16,203,9400033 Health Services 4,165,855 4,068,758 3,887,4080034 Student Transportation 14,350,640 14,621,228 13,967,2560036 Cocurricular/Extracurricular Activities 9,088,162 8,870,753 8,536,3570041 General Administration 10,199,207 9,873,090 9,144,8470051 Plant Maintenance and Operations 43,969,490 44,178,389 42,811,5050052 Security and Monitoring Services 4,929,011 4,991,861 4,826,9340053 Data Processing Services 7,404,161 7,898,992 7,436,6160061 Community Services 561,899 532,672 472,3760081 Capital Outlay: Facilities Acquisition and Construction 275,046 1,860,812 1,847,5340095 Payments to Juvenile Justice Alternative Education

Programs 138,740 82,740 32,9240097 Payments to Tax Increment Reinvestment Zone 2,361,300 2,450,000 2,435,8190099 Other Intergovernmental Charges 2,500,000 2,375,000 2,348,0966030 Total Expenditures 442,797,518 424,629,682 413,608,888

1100 Excess (Deficiency) of Revenues Over Expenditures 6,635,234 15,771,704 25,843,633

3000 OTHER FINANCING SOURCES (USES)7912 Sales of Real and Personal Property 4,192,917 4,235,9477915 Transfers In 500,000 510,000 468,2817919 Extraordinary Item 312,787 312,7878911 Transfers Out (3,237,982) (3,237,982) (3,237,982)7080 Total Other Financing Sources (Uses) (2,737,982) 1,777,722 1,779,0331200 Net Change in Fund Balances 3,897,252 17,549,426 27,622,666

0100 Fund Balances - Beginning 99,283,516 99,283,516 99,283,516

3000 Fund Balances - Ending 103,180,768$ 116,832,942$ 126,906,182$

2012

Budgeted Amounts

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Exhibit F-1

2011

Variance with Final Budget Actual

Positive (Negative) Amounts

270,619$ 229,809,094$ (221,232) 204,405,555(998,252) 5,530,703(948,865) 439,745,352

6,100,297 266,299,10452,885 6,175,879

181,823 4,924,088118,992 3,611,969343,800 27,573,777166,374 17,175,212181,350 4,523,163653,972 13,587,801334,396 9,319,467728,243 9,555,612

1,366,884 42,947,309164,927 5,128,868462,376 8,203,034

60,296 412,77513,278 727,011

49,816 47,89014,181 2,290,43626,904 2,242,299

11,020,794 424,745,694

10,071,929 14,999,658

43,030 24,362(41,719) 567,930

(2,032,733)1,311 (1,440,441)

10,073,240 13,559,217

85,724,299

10,073,240$ 99,283,516$

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NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

For the Year Ended August 31, 2012

Budgets and Budgetary Accounting Each school district in Texas is required by law to prepare annually a budget of anticipated revenues and expenditures for the General Fund, the Child Nutrition Fund and the Debt Service Fund for the fiscal year beginning September 1. The Texas Education Code requires the budget to be prepared not later than August 20 and adopted by August 31 of each year. The Budgets are prepared on a basis of accounting that is used for reporting in accordance with Generally Accepted Accounting Principles. The District annually adopts legally authorized appropriated budgets for the General, Debt Service, and certain Special Revenue funds. The District’s administration performs budget reviews during the year by which budget requirements are re-evaluated and revisions recommended to the Board. The Board may approve amendments to the budget, which are required when a change is made to any one of the functional expenditure categories or revenue object accounts defined by the TEA. Expenditures may not legally exceed budgeted appropriations, as amended, at the function level by fund. Unexpended appropriations lapse at year-end. The following procedures were followed in establishing the budgetary data reflected in the Fund Financial Statements:

1. Prior to August 20 the District prepares a budget for the next succeeding fiscal year beginning September 1. The operating budget includes proposed expenditures and the means of financing them.

2. A meeting of the Board is then called for the purpose of adopting the proposed budget. At least ten

days public notice of the meeting must be given. 3. Prior to September 1, the budget is legally enacted through passage of a resolution by the Board. Once

a budget is approved, it can only be amended at the function and fund level by approval of a majority of the members of the Board. Amendments are presented to the Board at its regular meetings. Each amendment must have Board approval. As required by law, such amendments are made before the fact, are reflected in the official minutes of the Board, and are not made after fiscal year end. Because the District has a policy of careful budgetary control, several amendments were necessary during the year.

4. Each budget is controlled by the budget coordinator at the revenue and expenditure function/object

level. Budgeted amounts are amended by the Board. All budget appropriations lapse at year end.

During the fiscal year ended August 31, 2012 the District did not have any expenditures over appropriations on all required legally adopted budgets.

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OTHER SUPPLEMENTARY INFORMATION

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COMPARATIVE STATEMENTS, COMBINING STATEMENTS AND BUDGET COMPARISONS

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GENERAL FUND

The General Fund is used to account for all financial transactions not properly included in other funds. The principal sources of revenues include local property taxes, state reimbursement for professional salaries and other operating expenditures, and earnings on investments. Expenditures include all costs associated with the daily operations of the schools.

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KATY INDEPENDENT SCHOOL DISTRICTCOMPARATIVE BALANCE SHEET Exhibit G-1GENERAL FUNDAUGUST 31, 2012 and 2011

DataControl August 31, August 31,Codes 2012 2011

ASSETS1110 Cash and Temporary Investments at Fair Value 152,359,584$ 97,467,350$

Receivables:1220 Property Taxes - Delinquent 9,692,828 9,631,4861230 Allowance for Uncollectible Taxes (Credit) (2,156,407) (2,204,385)1240 Due from Other Governments 68,168 158,9671260 Due from Other Funds 3,717,795 23,211,6881290 Other Receivables 818,779 1,282,6021300 Inventories, at Cost 1,005,386 892,5571410 Prepaid Expenditures 231,458 528,510

1000 Total Assets 165,737,591$ 130,968,775$


2110 Accounts Payable 8,001,239$ 8,755,640$ 2150 Payroll Withholding Payable 637,229 668,5222160 Accrued Wages Payable 5,182,497 6,092,5242180 Due to Other Governments 16,863,885 8,037,4152200 Accrued Expenditures 409,577 483,6052300 Deferred Revenues 7,736,982 7,647,553

2000 Total Liabilities 38,831,409 31,685,259

FUND BALANCEFund Balances:

3410/30 Nonspendable 1,236,844 1,421,0673540 Committed 5,000,000 5,000,0003580 Assigned 34,873,093 8,940,3583600 Unassigned 85,796,245 83,922,0913000 Total Fund Balance 126,906,182 99,283,516

4000 Total Liabilities and Fund Balances 165,737,591$ 130,968,775$

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KATY INDEPENDENT SCHOOL DISTRICTSCHEDULE OF REVENUES - BUDGET AND ACTUAL Exhibit G-2GENERAL FUNDYEAR ENDED AUGUST 31, 2012with comparative actual balances for the year ended August 31, 2011

2011 (1)

VariancePositive

Budget Actual (Negative) Actual

Local Sources Real and Personal Property Taxes 230,838,524$ 230,735,719$ (102,805)$ 222,461,917$ Taxes Collected on Tax Increment Zone 1,683,555 1,683,555 1,583,071 Tuition and Fees from Patrons 1,347,750 1,357,487 9,737 1,508,774 Investment Income 555,000 517,358 (37,642) 374,806 Rental Income 1,928,000 2,144,053 216,053 1,670,034 Donations 20,969 25,223 4,254 21,986 Athletics 1,337,178 1,320,056 (17,122) 1,483,573 Other 987,073 1,185,217 198,144 704,933

Revenues - Local Sources 238,698,049 238,968,668 270,619 229,809,094

State Sources Per Capita and Foundation 173,961,234 173,733,371 (227,863) 181,138,640 TRS On-Behalf Benefit 20,588,919 20,580,101 (8,818) 23,182,097 Other State Revenue 15,449 15,449 84,818 Revenues - State Sources 194,550,153 194,328,921 (221,232) 204,405,555

Federal Sources Indirect Costs - Federal Grants 990,236 999,728 9,492 204,375 Federal Grants 1,062,966 62,882 (1,000,084) 1,012,872 SHARS 1,862,000 1,854,340 (7,660) 2,280,723 Build America Bonds Subsidy 3,237,982 3,237,982 2,032,733 Revenues - Federal Sources 7,153,184 6,154,932 (998,252) 5,530,703

Total Revenues 440,401,386$ 439,452,521$ (948,865)$ 439,745,352$

(1) State revenues reduced for State Fiscal Stabilization Funds recorded in Special Revenue Fund.

2012

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KATY INDEPENDENT SCHOOL DISTRICTSCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL Exhibit G-3GENERAL FUND Page 1 of 4YEAR ENDED AUGUST 31, 2012with comparative actual balances for the year ended August 31, 2011

2011 (2)

VariancePositive

Function Budget Actual (Negative) Actual

Instruction and Instruction-Related Services Instruction 6100 Payroll Costs 255,030,734$ 249,511,690$ 5,519,044$ 258,488,039$ 6200 Purchased and Contracted Services 725,955 628,975 96,980 352,494 6300 Supplies and Materials 9,589,755 9,187,760 401,995 6,951,761 6400 Other Operating Expenditures 391,101 311,170 79,931 429,763 6600 Capital Outlay 385,972 383,625 2,347 77,047 Total Instruction 266,123,517 260,023,220 6,100,297 266,299,104

Instructional Resources and Media Services 6100 Payroll Costs 5,135,740 5,095,422 40,318 5,441,470 6200 Purchased and Contracted Services 7,381 6,796 585 7,519 6300 Supplies and Materials 734,541 724,269 10,272 716,232 6400 Other Operating Expenditures 7,503 5,793 1,710 7,442 6600 Capital Outlay 3,216 Total Instructional Resources/Media Svc. 5,885,165 5,832,280 52,885 6,175,879

Curriculum and Instructional Staff Development 6100 Payroll Costs 3,733,992 3,614,277 119,715 4,126,467 6200 Purchased and Contracted Services 109,306 91,288 18,018 81,837 6300 Supplies and Materials 272,488 309,650 (37,162) 311,949 6400 Other Operating Expenditures 460,372 379,120 81,252 403,835 Total Curriculum/Instr. Staff Development 4,576,158 4,394,335 181,823 4,924,088

Total Instruction and Instruction-Related Services 276,584,840 270,249,835 6,335,005 277,399,071

Instruction and School Leadership Instructional Administration 6100 Payroll Costs 3,307,697 3,198,940 108,757 3,403,138 6200 Purchased and Contracted Services 52,037 58,039 (6,002) 51,990 6300 Supplies and Materials 94,387 86,976 7,411 86,735 6400 Other Operating Expenditures 56,036 47,210 8,826 70,106 Total Instructional Administration 3,510,157 3,391,165 118,992 3,611,969

School Administration 6100 Payroll Costs 25,667,362 25,372,744 294,618 26,980,850 6200 Purchased and Contracted Services 10,026 9,988 38 8,214 6300 Supplies and Materials 463,181 452,114 11,067 396,025 6400 Other Operating Expenditures 219,507 181,430 38,077 188,688 Total School Administration 26,360,076 26,016,276 343,800 27,573,777

2012 (1)

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2011 (2)

VariancePositive


Support Services - Student (Pupil) Guidance and Counseling Services 6100 Payroll Costs 15,444,648$ 15,288,445$ 156,203$ 16,207,523$ 6200 Purchased and Contracted Services 197,516 177,084 20,432 252,397 6300 Supplies and Materials 662,132 683,864 (21,732) 658,323 6400 Other Operating Expenditures 66,018 54,547 11,471 56,969 Total Guidance and Counseling Services 16,370,314 16,203,940 166,374 17,175,212

Health Services 6100 Payroll Costs 3,953,110 3,779,521 173,589 4,415,419 6200 Purchased and Contracted Services 1,800 3,360 (1,560) 5,088 6300 Supplies and Materials 98,612 92,264 6,348 90,769 6400 Other Operating Expenditures 15,236 12,263 2,973 11,887 Total Health Services 4,068,758 3,887,408 181,350 4,523,163

Student (Pupil) Transportation 6100 Payroll Costs 10,842,433 10,341,706 500,727 10,882,110 6200 Purchased and Contracted Services 159,000 164,785 (5,785) 155,544 6300 Supplies and Materials 2,725,477 2,567,682 157,795 2,368,462 6400 Other Operating Expenditures 181,933 182,001 (68) 181,685 6600 Capital Outlay 712,385 711,082 1,303 Total Student (Pupil) Transportation 14,621,228 13,967,256 653,972 13,587,801

Cocurricular/Extracurricular Activities 6100 Payroll Costs 5,790,171 5,682,057 108,114 6,085,014 6200 Purchased and Contracted Services 618,401 558,852 59,549 626,280 6300 Supplies and Materials 1,164,139 1,122,616 41,523 1,284,844 6400 Other Operating Expenditures 1,298,042 1,172,832 125,210 1,291,464 6600 Capital Outlay 31,865 Total Cocurricular/Extracurricular Activities 8,870,753 8,536,357 334,396 9,319,467

Total Support Services - Student (Pupil) 43,931,053 42,594,961 1,336,092 44,605,643

2012 (1)

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2011 (2)

VariancePositive

Budget Actual (Negative) ActualAdministrative Support Services General Administration 6100 Payroll Costs 7,129,464$ 6,847,192$ 282,272$ 7,290,443$ 6200 Purchased and Contracted Services 1,492,436 1,260,400 232,036 1,120,847 6300 Supplies and Materials 370,773 270,273 100,500 355,572 6400 Other Operating Expenditures 850,840 739,100 111,740 788,750 6600 Capital Outlay 29,577 27,882 1,695Total Administrative Support Services 9,873,090 9,144,847 728,243 9,555,612

Support Services - Nonstudent Based Plant Maintenance and Operations 6100 Payroll Costs 20,092,729 19,543,038 549,691 21,660,932 6200 Purchased and Contracted Services 19,066,087 19,016,428 49,659 16,876,442 6300 Supplies and Materials 2,985,817 2,952,480 33,337 3,227,059 6400 Other Operating Expenditures 1,253,799 1,132,593 121,206 1,126,797 6600 Capital Outlay 779,957 166,966 612,991 56,079 Total Plant Maintenance and Operations 44,178,389 42,811,505 1,366,884 42,947,309

Security and Monitoring Services 6100 Payroll Costs 4,565,661 4,431,121 134,540 4,544,924 6200 Purchased and Contracted Services 97,590 93,921 3,669 99,756 6300 Supplies and Materials 167,097 145,284 21,813 191,171 6400 Other Operating Expenditures 47,601 42,696 4,905 38,444 6600 Capital Outlay 113,912 113,912 254,573 Total Security and Monitoring Services 4,991,861 4,826,934 164,927 5,128,868

Data Processing Services 6100 Payroll Costs 5,993,647 5,717,344 276,303 6,608,005 6200 Purchased and Contracted Services 147,530 94,330 53,200 217,061 6300 Supplies and Materials 1,627,451 1,525,025 102,426 1,276,087 6400 Other Operating Expenditures 92,364 84,277 8,087 81,834 6600 Capital Outlay 38,000 15,640 22,360 20,047 Total Data Processing Services 7,898,992 7,436,616 462,376 8,203,034Total Support Services - Nonstudent Based 57,069,242 55,075,055 1,994,187 56,279,211

Ancillary Services Community Services 6100 Payroll Costs 360,178 337,678 22,500 319,068 6200 Purchased and Contracted Services 70,500 54,436 16,064 52,943 6300 Supplies and Materials 96,544 74,156 22,388 35,493 6400 Other Operating Expenditures 5,450 6,106 (656) 5,271Total Ancillary Services 532,672 472,376 60,296 412,775

2012 (1)

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87


2011 (2)

VariancePositive


Capital Outlay Facilities Acquisition and Construction 6100 Payroll Costs 607,418$ 594,074$ 13,344$ 598,635$ 6300 Supplies and Materials 3,658 3,186 472 1,931 6400 Other Operating Expenditures 4,660 2,923 1,737 4,831 6600 Capital Outlay 1,245,076 1,247,351 (2,275) 121,614Total Capital Outlay 1,860,812 1,847,534 13,278 727,011

Intergovernmental Charges Payments to Juvenile Justice Alternative Education Program 6200 Purchased and Contracted Services 82,740 32,924 49,816 47,890

Payments to Tax Increment Reinvestment Zone 6400 Other Operating Expenditures 2,450,000 2,435,819 14,181 2,290,436

Other Intergovernmental Charges 6200 Purchased and Contracted Services 2,375,000 2,348,096 26,904 2,242,299Total Intergovernmental Charges 4,907,740 4,816,839 90,901 4,580,625

6030 Total Expenditures 424,629,682$ 413,608,888$ 11,020,794$ 424,745,694$

(1) Expenditures reduced for Education Jobs Fund recorded in Special Revenue Fund.(2) Expenditures reduced for State Fiscal Stabilization Funds recorded in Special Revenue Fund.

2012 (1)

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DEBT SERVICE FUND The Debt Service Fund is used to account for revenues from debt service taxes and earnings on investments which are used for payment of interest and principal on the District’s bonded indebtedness.

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KATY INDEPENDENT SCHOOL DISTRICTCOMPARATIVE BALANCE SHEET Exhibit H-1DEBT SERVICE FUNDAUGUST 31, 2012 and 2011

DataControl August 31, August 31, Codes 2012 2011

ASSETS1110 Cash and Investments at Fair Value 44,573,042$ 41,089,970$

Receivables:1220 Property Taxes-Delinquent 2,966,311 2,826,9961230 Allowance for Uncollectible Taxes (Credit) (632,913) (624,984)1250 Accrued Interest 7,572 7,1601260 Due from Other Funds 222,261 255,731

1000 Total Assets 47,136,273$ 43,554,873$


2110 Accounts Payable 51,329$ 218,958$ 2140 Interest Payable Current 79,347 27,7972180 Due to Other Governments 845,723 1,114,084

2300 Deferred Revenues 2,333,398 2,202,012

2000 Total Liabilities 3,309,797 3,562,851

FUND BALANCERestricted For:

3480 Retirement of Long-term Debt 43,826,476 39,992,022

3000 Total Fund Balance 43,826,476 39,992,022

4000 Total Liabilities and Fund Balance 47,136,273$ 43,554,873$

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FUND BALANCE-ORIGINAL BUDGET, AMENDED FINAL, AND ACTUAL-DEBT SERVICE FUNDYEAR ENDED AUGUST 31, 2012with comparative actual balances for the year ended August 31, 2011

DataControlCodes Original Final Actual

REVENUES5700 Local, Intermediate, and Out-of-State 82,255,549$ 82,680,478$ 82,719,642$ 5800 State Program Revenues 4,329,808 4,639,979 4,639,729

5020 Total Revenues 86,585,357 87,320,457 87,359,371

EXPENDITURESDebt Service

0071 Principal on Long-Term Debt 35,181,136 35,181,136 35,181,1360072 Interest on Long-Term Debt 52,606,067 50,371,334 50,163,3260073 Bond Issuance Costs and Fees 912,797 3,486,589 3,060,606

6030 Total Expenditures 88,700,000 89,039,059 88,405,0681100 Excess (Deficiency) of Revenues Over (Under)

Expenditures (2,114,643) (1,718,602) (1,045,697)

OTHER FINANCING SOURCES (USES)7901 Refunding Bonds Issued 167,785,000 167,785,0007915 Transfers In 3,477,982 3,538,823 3,613,4337916 Premium on Issuance of Bonds 7,502,404 7,502,4048940 Payment to Bond Refunding Escrow Agent (174,020,686) (174,020,686)

7080 Total Other Financing Sources and Uses 3,477,982 4,805,541 4,880,151

1200 Net Change in Fund Balance 1,363,339 3,086,939 3,834,454

0100 Fund Balances - Beginning 39,992,022 39,992,022 39,992,022

3000 Fund Balances - Ending 41,355,361$ 43,078,961$ 43,826,476$

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

2012

Budgeted Amounts

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Exhibit H-2

2011

Variance with Final Budget Actual

Positive (Negative) Amounts

39,164$ 80,534,856$ (250) 4,982,064

38,914 85,516,920

33,038,949208,008 57,116,297425,983 1,452,652

633,991 91,607,898

672,905 (6,090,978)

6,220,00074,610 2,193,443

298,647(6,607,541)

74,610 2,104,549

747,515 (3,986,429)

43,978,451

747,515$ 39,992,022$

DRAFT

94


DRAFT

95

CAPITAL PROJECTS FUND The Capital Projects Fund is used to account for proceeds from the sale of general obligation bonds and the expenditures of these funds for the construction and equipping of new school facilities, to purchase school sites, and the renovation or repair of present facilities.

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KATY INDEPENDENT SCHOOL DISTRICTCOMPARATIVE BALANCE SHEETCAPITAL PROJECTS FUNDAUGUST 31, 2012 and 2011

Katy DevelopmentKaty Independent Authority

Data School District Multi-PurposeControl Capital Projects Complex for the Codes Fund District

ASSETS1110 Cash and Investments at Fair Value 109,292,744$ $

Receivables:1240 Due from Other Governments 292,7001290 Other Receivables

1000 Total Assets 109,292,744$ 292,700$


2110 Accounts Payable 24,044,243$ $ 2160 Accrued Wages Payable 13,5522170 Due to Other Funds 69,6692180 Due to Other Governments

2000 Total Liabilities 24,127,464

FUND BALANCERestricted For:

3470 Capital Acquisitions and Contracts 85,165,280 292,7003000 Total Fund Balance 85,165,280 292,700

4000 Total Liabilities and Fund Balance 109,292,744$ 292,700$

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Exhibit I-1

August 31, August 31, 2012 2011

109,292,744$ 160,727,023$

292,700 292,37463,378

109,585,444$ 161,082,775$

24,044,243$ 15,781,713$ 13,55269,669 15,031,877

36

24,127,464 30,813,626

85,457,980 130,269,14985,457,980 130,269,149

109,585,444$ 161,082,775$

Total

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98

KATY INDEPENDENT SCHOOL DISTRICTSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCECAPITAL PROJECTS FUNDYEAR ENDED AUGUST 31, 2012 and 2011

Katy DevelopmentKaty Independent Authority

Data Control Codes

School District Capital Projects

Fund

Multi-purpose Complex for the

District

REVENUES5700 Local, Intermediate, and Out-of-State 375,451$ 326$

5020 Total Revenues 375,451 326

EXPENDITURES0034 Student Transportation

Vehicles Total Student Transportation

0081 Facilities Acquisition and Construction:Land and Improvements 2,225,362Building and Improvements 165,639,860Furniture and Equipment 26,946,273

194,811,495

Total Capital Outlay 194,811,495

0073 Bond Issuance Cost and Other Fees 1,182,418

6030 Total Expenditures 195,993,9131100 Excess (Deficiency) of Revenues Over (Under)

Expenditures (195,618,462) 326

OTHER FINANCING SOURCES (USES)7911 Capital Related Debt Issued 129,370,0007916 Premium on Issuance of Bonds 21,812,4188911 Transfers Out (375,451)

7080 Total Other Financing Sources (Uses) 150,806,967

1200 Net Change in Fund Balance (44,811,495) 326

0100 Fund Balances - Beginning 129,976,775 292,374

3000 Fund Balances - Ending 85,165,280$ 292,700$

Total Facilities Acquisition and Construction

DRAFT

99

Exhibit I-2

August 31, 2012

August 31, 2011

375,777$ 161,148$

375,777 161,148

1,378,6891,378,689

2,225,362 13,208,575165,639,860 52,155,86226,946,273 22,001,907

194,811,495 87,366,344

194,811,495 88,745,033

1,182,418 1,601,235

195,993,913 90,346,268

(195,618,136) (90,185,120)

129,370,000 196,470,00021,812,418 5,131,235

(375,451) (160,710)

150,806,967 201,440,525

(44,811,169) 111,255,405

130,269,149 19,013,744

85,457,980$ 130,269,149$

Total

DRAFT

100


DRAFT

101

NONMAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for financial resources restricted to or designated for specific purposes by a grantor. Specifically, this type of fund is used to account for the District’s Food Service program, including local and federal revenue sources for state and federally financed programs (grants) where unused balances are returned to the grantor at the close of specified project periods, and other revenue specific programs.

DRAFT

102

Special Revenue Fund Program Descriptions

Texas McKinney–Vento Program 1 – Funds are for the purpose of identifying children and youth in homeless situations, and developing and implementing educational and related services in order to help them enroll, attend, and succeed in school. Elementary and Secondary Education Act (ESEA) Title I, Part A – Improving Basic Programs - Funds are used on identified campuses to enable schools to provide opportunities for children served to acquire the knowledge and skills contained in the challenging State content standards and to meet the challenging State performance standards developed for all children. Individuals with Disabilities Education Act (IDEA), Part B – Formula - Funds are used to operate educational programs for children with disabilities. This fund also includes capacity building and improvement (sliver) subgrants. Individuals with Disabilities Education Act (IDEA), Part B - Preschool - Funds are used for preschool children with disabilities. Nutrition and Food Services - Funds are used to account for allowable expenditures, as determined under the National School Lunch Act, for the operation and improvement of the Child Nutrition Programs. Vocational Education, Carl Perkins Basic Grant - Funds are used to provide instruction related to career and technology education and to develop new and/or improve career and technology education programs for paid and unpaid employment. Elementary and Secondary Education Act (ESEA) Title II, Part A - Teacher and Principal Training and Recruiting – Funds are used to increase student academic achievement through improving teacher and principal quality and increasing the number of highly qualified teachers in classrooms and highly qualified principals and assistant principals in schools. Elementary and Secondary Education Act (ESEA) Title III, Part A – LEP and Immigrant - Funds are used to improve the education of limited English proficient children by assisting the children to learn English and meet challenging State academic content and student academic achievement standards. Medicaid Administrative Claiming Program – Funds are used for reimbursement of eligible administrative costs for activities attributed to the implementation of the Medicaid state plan. ARRA, Title II, Part D – Funds are used for the implementation and support of a comprehensive system that effectively uses technology in elementary and secondary schools to improve student academic achievement. ARRA, Individuals with Disabilities Education Act (IDEA), Part B, Formula – Funds are used to ensure that children with disabilities have access to a free appropriate public education to meet each child’s unique needs and prepare each child for further education, employment, and independent living.

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103

Special Revenue Fund Program Descriptions (continued)

ARRA, Individuals with Disabilities Education Act (IDEA), Part B, Preschool – Funds are used to ensure that children ages three through five with disabilities have access to a free appropriate public education to meet each child’s unique needs and prepare each child for further education, employment, and independent living. ARRA, Elementary and Secondary Education Act (ESEA) Title I, Part A – Funds are used on identified campuses to help improve teaching and learning for students most at risk of failing to meet state academic achievement standards. Education Jobs Fund – Funds are used to save or create jobs. Jobs funded under this program are exclusively for school-level employees that provide educational and related services for early childhood, elementary, and secondary education. Summer School Program for LEP Students in Kindergarten and First Grade – Funds are used for reimbursement of summer school costs for Limited English Proficient Students in Kindergarten and First Grade. Early Childhood Intervention - Funds are used to identify and provide needed intervention services for children from birth to age 3 who are developmentally delayed or appear to be at risk for developmental delay. Individuals with Disabilities Education Act (IDEA), Part B-Discretionary Deaf, SSA - Funds are used to support an education service center basic special education component and also targeted support to LEAs, Regional Day School Programs for the Deaf, private residential placements, priority projects, and other emerging needs. Individuals with Disabilities Education Act (IDEA), Part B-Formula Deaf, SSA - Funds are used to operate educational programs for children with disabilities. This fund also includes capacity building and improvement (sliver) subgrants. Individuals with Disabilities Education Act (IDEA), Part B-Preschool Deaf, SSA - Funds are used for preschool children who are hearing impaired. Individuals with Disabilities Education Act (IDEA), Part C, Early Intervention, SSA - Funds are used to assist local Regional Day School for the Deaf programs and the Texas School for the Deaf in providing direct services to hearing impaired infants to toddlers ages birth through two years of age. The program also provides supplemental and appropriate services to eligible students that are provided by a certified and trained teacher.

State Visually Handicapped - Funds are used to provide educational assistance to visually impaired students. Non-Educational Community-Based Support Services - Funds are used for the provision of non-educational community-based support services to students with disabilities who would remain or have to be placed in residential facilities for educational reasons without the provision of these services. The support services may include transportation, respite for the parents, case management, social work, in-home family support and other items.

DRAFT

104

Special Revenue Fund Program Descriptions (continued) Texas Successful Schools Program - Funds are used for general student purposes except athletics. Awards are given to individual campuses and are based on student achievement and student achievement gains. Advanced Placement Incentive - Funds are awarded to specific campuses based on student scores on Advanced Placement examinations and are to be used for enhancement of academic programs at awarded campuses. Instructional Materials Allotment - Funds are used to provide instructional materials awarded under the textbook allotment. Technology Allotment - Funds are used to provide a technology infrastructure in the district. Read-To-Succeed License Plate Program - Funds are awarded to specific campuses based on the sale of specialty license plates and are to be used to pay for educational materials for the school library. State Funded Special Revenue Funds – Accounts for state funded special revenue that has not been specified above. Regional Day School for the Deaf, SSA - Funds are used for staff and activities of the Regional Day School Program for the Deaf (RDSPD). Local Share Regional Day School for the Deaf, SSA - Funds are used to account for excess costs of services provided to hearing impaired students ages birth through twenty-one. Campus Activity Funds - Funds are used for activities benefiting students and staff. Locally Funded Special Revenue – Locally funded special revenue funds not specified above. Tax Increment Reinvestment Zone - Funds are used to account for tax increment revenues, in excess of bond payments, restricted for expenditures within the reinvestment zone. DRAFT

105


DRAFT

106

KATY INDEPENDENT SCHOOL DISTRICTCOMBINING BALANCE SHEETNONMAJOR GOVERNMENTAL FUNDSAUGUST 31, 2012

206 211 224Data McKinney- ESEA IDEA

Control Vento Title I Part BCodes Homeless Ed. Part A Formula

ASSETS1110 Cash and Cash Equivalents $ $ $

Receivables:1240 Due from Other Governments 24,455 713,027 1,336,8781260 Due from Other Funds1290 Other Receivables1300 Inventories, at Cost1410 Deferred Expenditures1000 Total Assets 24,455$ 713,027$ 1,336,878$


2110 Accounts Payable 170$ 142,894$ 127,150$ 2160 Accrued Wages Payable 29,510 102,7732170 Due to Other Funds 24,285 540,623 1,106,9552180 Due to Other Governments2300 Deferred Revenues2000 Total Liabilities 24,455 713,027 1,336,878


3410/20 Nonspendable3450 Restricted for Food Service Operations3490 Restricted for Tax Increment Zone3490 Restricted for Health Services 3545 Committed for Campus Activity Funds3000 Total Fund Balances

4000 Total Liabilities and Fund Balances 24,455$ 713,027$ 1,336,878$

DRAFT

107

Exhibit J-1Page 1 of 4

225 240 244 255 263 272IDEA Nutrition Voc. Ed. ESEA ESEA MedicaidPart B and Basic Title II Title III Administrative

Preschool Food Services Grant Part A Part A Claiming

$ 9,274,078$ $ $ $ $

26,576 244,891 33,064 438,332 555,754 64,08248,979

154,149 612239,268

4,13126,576$ 9,912,386$ 33,064$ 438,332$ 560,497$ 113,061$

653$ 909,267$ $ 46,779$ 25,138$ $ 731 58,266 150 21,379 2,022

25,192 3,110,948 33,064 391,403 513,980

26,576 4,078,481 33,064 438,332 560,497 2,022

239,2685,594,637

111,039

5,833,905 111,039

26,576$ 9,912,386$ 33,064$ 438,332$ 560,497$ 113,061$

DRAFT

108


279 283 284Data ARRA ARRA ARRA

Control Title II IDEA B IDEA BCodes Part D Formula Preschool


Receivables:1240 Due from Other Governments1260 Due from Other Funds1290 Other Receivables1300 Inventories, at Cost1410 Deferred Expenditures1000 Total Assets $ $ $


2110 Accounts Payable $ $ $ 2160 Accrued Wages Payable2170 Due to Other Funds2180 Due to Other Governments2300 Deferred Revenues2000 Total Liabilities



Total Liabilities and Fund Balances $ $ $

DRAFT

109


285 287 289 289 315 316ARRA Education Early SSA SSATitle I Jobs Summer Childhood IDEA B IDEA BPart A Fund School LEP Intervention Discretionary Deaf

$ $ $ $ $ $

664,524 1,857 23,181 6,245

191,859

66,662 $ 664,524$ $ 260,378$ 23,181$ 6,245$

$ $ $ 14,553$ 5,270$ 5,684$ 51,405 4,242 237

613,119 241,583 17,674 561

664,524 260,378 23,181 6,245

$ 664,524$ $ 260,378$ 23,181$ 6,245$

DRAFT

110


317 340 385Data SSA SSA State

Control IDEA B IDEA C Early VisuallyCodes Preschool Deaf Intervention Handicapped


Receivables:1240 Due from Other Governments 7,834 2711260 Due from Other Funds1290 Other Receivables1300 Inventories, at Cost1410 Deferred Expenditures1000 Total Assets 7,834$ 271$ $


2110 Accounts Payable 1,467$ $ $ 2160 Accrued Wages Payable2170 Due to Other Funds 6,367 2712180 Due to Other Governments2300 Deferred Revenues2000 Total Liabilities 7,834 271



Total Liabilities and Fund Balances 7,834$ 271$ $

DRAFT

111


392 393 397 410 411 427Non-Ed Texas Advanced Instructional Read to Succeed

Community Successful Placement Materials Technology LicenseSupport Schools Incentive Allotment Allotment Plate Program

$ $ $ $ $ $

3,3079,609 248,220 103

3,307$ $ 9,609$ 248,220$ $ 103$

$ $ $ 247,693$ $ $

3,307

9,609 527 1033,307 9,609 248,220 103

3,307$ $ 9,609$ 248,220$ $ 103$

DRAFT

112


429 435 455Data State SSA SSA

Control Funded Regional Deaf DeafCodes Special Revenue CO-OP Local Share


Receivables:1240 Due from Other Governments 48,539 67,728 9,2441260 Due from Other Funds1290 Other Receivables1300 Inventories, at Cost1410 Deferred Expenditures1000 Total Assets 48,539$ 67,728$ 9,244$


2110 Accounts Payable 6,892$ 1,140$ 1,718$ 2160 Accrued Wages Payable 8,285 1,2882170 Due to Other Funds 41,647 58,303 6,2382180 Due to Other Governments2300 Deferred Revenues2000 Total Liabilities 48,539 67,728 9,244



Total Liabilities and Fund Balances 48,539$ 67,728$ 9,244$

DRAFT

113


461 480 495 NonmajorCampus Locally Tax Increment Special NonmajorActivity Funded Reinvestment Revenue GovernmentalFunds Special Revenue Zone Funds Funds

$ $ 4,247,321$ 13,521,399$ 13,521,399$

4,269,789 4,269,7893,066,096 3,373,007 3,373,007

233 346,853 346,853239,268 239,268

70,793 70,7933,066,096$ 233$ 4,247,321$ 21,821,109$ 21,821,109$

255,778$ $ $ 1,792,246$ 1,792,246$ 3,010 283,298 283,298

233 468,281 7,204,034 7,204,034

10,239 10,239258,788 233 468,281 9,289,817 9,289,817

239,268 239,2685,594,637 5,594,637

3,779,040 3,779,040 3,779,040111,039 111,039

2,807,308 2,807,308 2,807,3082,807,308 3,779,040 12,531,292 12,531,292

3,066,096$ 233$ 4,247,321$ 21,821,109$ 21,821,109$

Totals August 31, 2012

DRAFT

114

KATY INDEPENDENT SCHOOL DISTRICTCOMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGESIN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDSYEAR ENDED AUGUST 31, 2012

206 211 224Data McKinney- ESEA IDEA

Control Vento Title I Part BCodes Homeless Ed. Part A Formula

REVENUES5700 Local, Intermediate, and Out-of-State $ $ $ 5800 State Program Revenues5900 Federal Program Revenues 39,390 4,078,678 5,893,3305020 Total Revenues 39,390 4,078,678 5,893,330

EXPENDITURES0011 Instructional Leadership 35,540 3,619,027 4,026,6940012 Instructional Resources and Media Services0013 Curriculum and Instructional Staff Development 924 221,105 80,9500021 Instructional Leadership 37,480 2,7670023 School Leadership 11,852 1,3650031 Guidance and Counseling Services 1,516,3250033 Health Services 32,3670034 Student Transportation0035 Food Services0036 Cocurricular/Extracurricular Activities0041 General Administration0051 Plant Maintenance and Operations0052 Security and Monitoring Services0061 Community Services 2,926 189,2140081 Capital Outlay0093 Payments to Fiscal Agents 232,8626030 Total Expenditures 39,390 4,078,678 5,893,330

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

7912 Sale of Real and Personal Property8911 Transfers Out1200 Net Change in Fund Balance

0100 Fund Balance - September 1 (Beginning)3000 Fund Balance - August 31 (Ending) $ $ $

DRAFT

115


225 240 244 255 263 272IDEA Nutrition Voc. Ed. ESEA ESEA MedicaidPart B and Basic Title II Title III Administrative

Preschool Food Services Grant Part A Part A Claiming

$ 13,792,496$ $ $ $ $ 157,347

107,049 10,693,140 338,429 834,495 2,588,315 95,261107,049 24,642,983 338,429 834,495 2,588,315 95,261

106,944 171,360 75,083 1,566,905162

105 167,069 738,597 739,716

19,678 10,00040

85,601

23,048,070

935

271,6943,218,223

107,049 26,266,293 338,429 834,495 2,588,315 85,601

(1,623,310) 9,660

23,424

(1,599,886) 9,660

7,433,791 101,379 $ 5,833,905$ $ $ $ 111,039$

DRAFT

116


279 283 284Data ARRA ARRA ARRA

Control Title II IDEA B IDEA BCodes Part D Formula Preschool

REVENUES5700 Local, Intermediate, and Out-of-State $ $ $ 5800 State Program Revenues5900 Federal Program Revenues 12,500 1,200,356 106,4185020 Total Revenues 12,500 1,200,356 106,418

EXPENDITURES0011 Instructional Leadership 957,713 106,3900012 Instructional Resources and Media Services0013 Curriculum and Instructional Staff Development 12,500 121,084 210021 Instructional Leadership 8,8870023 School Leadership0031 Guidance and Counseling Services 112,6720033 Health Services0034 Student Transportation0035 Food Services0036 Cocurricular/Extracurricular Activities0041 General Administration0051 Plant Maintenance and Operations0052 Security and Monitoring Services0061 Community Services 70081 Capital Outlay0093 Payments to Fiscal Agents6030 Total Expenditures 12,500 1,200,356 106,418




DRAFT

117


285 287 289 289 315 316ARRA Education Early SSA SSATitle I Jobs Summer Childhood IDEA B IDEA BPart A Fund School LEP Intervention Discretionary Deaf

$ $ $ 192,237$ $ $ 471,042

268,914 9,613,215 68,807 1,257,109 50,363 17,936268,914 9,613,215 68,807 1,920,388 50,363 17,936

250 9,256,772 68,807 1,549,762 39,943 10,740

875 97 3,403293,809

356,443 3,931 15867,655 10,323 3,635

268,664 4,356

268,914 9,613,215 68,807 1,920,388 50,363 17,936

$ $ $ $ $ $

DRAFT

118


317 340 385Data SSA SSA State

Control IDEA B IDEA C Early VisuallyCodes Preschoo Deaf Intervention Handicapped

REVENUES5700 Local, Intermediate, and Out-of-State $ $ $ 5800 State Program Revenues 20,0005900 Federal Program Revenues 8,534 2,1285020 Total Revenues 8,534 2,128 20,000

EXPENDITURES0011 Instructional Leadership 4,492 2,128 20,0000012 Instructional Resources and Media Services0013 Curriculum and Instructional Staff Development 9500021 Instructional Leadership0023 School Leadership0031 Guidance and Counseling Services 5490033 Health Services 2,5430034 Student Transportation0035 Food Services0036 Cocurricular/Extracurricular Activities0041 General Administration0051 Plant Maintenance and Operations0052 Security and Monitoring Services0061 Community Services0081 Capital Outlay0093 Payments to Fiscal Agents6030 Total Expenditures 8,534 2,128 20,000




DRAFT

119


392 393 397 410 411 427Non-Ed Texas Advanced Instructional Read to Succeed

Community Successful Placement Materials Technology LicenseSupport Schools Incentive Allotment Allotment Plate Program

$ $ $ $ $ $ 87,294 2,317 59,262 2,174,019 34,231 269

87,294 2,317 59,262 2,174,019 34,231 269

2,143 57,220 1,910,252 34,231174 269

2,042 263,767

87,294

87,294 2,317 59,262 2,174,019 34,231 269

$ $ $ $ $ $

DRAFT

120


429 435 455Data State SSA SSA

Control Funded Regional Deaf DeafCodes Special Revenue CO-OP Local Share

REVENUES5700 Local, Intermediate, and Out-of-State $ $ 171,250$ 5800 State Program Revenues 95,593 548,3075900 Federal Program Revenues5020 Total Revenues 95,593 548,307 171,250

EXPENDITURES0011 Instructional Leadership 29,299 512,555 97,7550012 Instructional Resources and Media Services0013 Curriculum and Instructional Staff Development 1,896 1,2000021 Instructional Leadership 2,5300023 School Leadership0031 Guidance and Counseling Services 33,6660033 Health Services 190 69,7650034 Student Transportation0035 Food Services0036 Cocurricular/Extracurricular Activities0041 General Administration0051 Plant Maintenance and Operations 62,2580052 Security and Monitoring Services 4,0360061 Community Services0081 Capital Outlay0093 Payments to Fiscal Agents6030 Total Expenditures 95,593 548,307 171,250




DRAFT

121


461 480 495Campus Locally Tax Increment NonmajorActivity Funded Reinvestment Special GovernmentalFunds Special Revenue Zone Revenue Funds Funds

3,864,848$ 3,361$ 624,107$ 18,648,299$ 18,648,299$ 3,649,681 3,649,681

37,274,367 37,274,3673,864,848 3,361 624,107 59,572,347 59,572,347

1,644,263 1,361 25,907,629 25,907,629689,327 2,000 691,932 691,932148,123 2,504,424 2,504,424

10 345,483 345,483402,977 445,872 445,872

9,211 2,032,995 2,032,995428 272,507 272,507

5,042 5,042 5,04223,048,070 23,048,070

640,063 640,063 640,063935 935

27,583 89,841 89,84116,087 20,123 20,123

4,003 828,158 828,15837,490 3,255,713 3,255,713

232,862 232,8623,624,607 3,361 60,321,649 60,321,649

240,241 624,107 (749,302) (749,302)

23,424 23,424(468,281) (468,281) (468,281)

240,241 155,826 (1,194,159) (1,194,159)

2,567,067 3,623,214 13,725,451 13,725,4512,807,308$ $ 3,779,040$ 12,531,292$ 12,531,292$

Totals August 31, 2012

DRAFT

122

KATY INDEPENDENT SCHOOL DISTRICTSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESORIGINAL BUDGET, AMENDED FINAL, AND ACTUAL - NUTRITION AND FOOD SERVICE AND EDUCATION JOBS FUNDYEAR ENDED AUGUST 31, 2012with comparative actual balances for the year ended August 31, 2011

Data

Variance with Final

BudgetControl Codes Original Final

Actual Amounts

Positive (Negative)

2011 Actuals

REVENUES5700 Local, Intermediate, and Out-of-State 14,682,860$ 14,254,965$ 13,792,496$ (462,469)$ 14,387,392$ 5800 State Program Revenues 150,000 157,347 157,347 149,6765900 Federal Program Revenues 12,124,740 11,234,264 10,693,140 (541,124) 11,182,893

5020 Total Revenues 26,957,600 25,646,576 24,642,983 (1,003,593) 25,719,961

EXPENDITURES0011 Instruction

Payroll Costs Total Instruction

0031 Guidance and Counseling Services Payroll Costs Total Guidance and Counseling

0035 Food Services Payroll Costs 8,566,359 8,078,801 7,834,579 244,222 8,231,734 Professional and Contracted Services 58,000 113,246 122,945 (9,699) 61,058 Supplies and Materials 15,495,258 15,268,001 14,789,424 478,577 14,439,552 Other Operating Expenses 13,000 16,261 16,897 (636) 8,013 Capital Outlay 50,000 553,001 284,225 268,776 Total Food Service 24,182,617 24,029,310 23,048,070 981,240 22,740,357

0051 Plant Maintenance & Operations Payroll Costs 105,299 179,927 Professional and Contracted Services 430,000 443,833 Supplies and Materials 101,876 Total Plant Maint. & Operations 535,299 725,636

0081 Capital Outlay Capital Outlay 3,363,815 3,218,223 145,592 Total Capital Outlay 3,363,815 3,218,223 145,592

6030 Total Expenditures 24,717,916 27,393,125 26,266,293 1,126,832 23,465,993

1100 Excess (Deficiency) of Revenues Over (Under) Expenditures 2,239,684 (1,746,549) (1,623,310) 123,239 2,253,968

7912 Sale of Real and Personal Property 14,980 23,424 8,444 23,403

1200 Net Change in Fund Balance 2,239,684 (1,731,569) (1,599,886) 131,683 2,277,371

0100 Fund Balance - September 1 (Beginning) 7,433,791 7,433,791 7,433,791 5,156,420

3000 Fund Balance - August 31 (Ending) 9,673,475$ 5,702,222$ 5,833,905$ 131,683$ 7,433,791$

2012NUTRITION AND FOOD SERVICE

Budgeted Amounts

DRAFT

123

Exhibit J-3

Variance with Final

Budget

Original Final Actual

AmountsPositive

(Negative)2011

Actuals

$ $ $ $ $

9,613,215 9,613,215

9,613,215 9,613,215

9,256,772 9,256,7729,256,772 9,256,772

356,443 356,443356,443 356,443

9,613,215 9,613,215

$ $ $ $ $

2012

Budgeted Amounts

EDUCATION JOBS FUND

DRAFT

124


DRAFT

125

INTERNAL SERVICE FUNDS The Internal Service Funds are used to account for revenues and expenses related to services provided to organizations inside the District on a cost reimbursement basis.

DRAFT

126

KATY INDEPENDENT SCHOOL DISTRICTCOMBINING STATEMENT OF NET ASSETS Exhibit K-1INTERNAL SERVICE FUNDSAUGUST 31, 2012

Data TotalControl Health Workers' Auto Print InternalCodes Insurance Compensation Liability Shop Service Funds

ASSETSCurrent Assets:

1110 Cash and Cash Equivalents 4,052,953$ 4,809,490$ $ 1,838,941$ 10,701,384$ 1290 Other Receivables 14,775 14,7751300 Inventories 88,066 88,0661410 Deferred Expenses 39,360 39,360

Total Current Assets 4,067,728 4,809,490 39,360 1,927,007 10,843,585

Noncurrent Assets:Capital Assets:

1520 Building and Improvements 2,516 2,5161540 Furniture and Equipment 1,999 1,749,480 1,751,4791573 Accumulated Depreciation (1,999) (1,191,274) (1,193,273)

Total Non Current 560,722 560,722

1000 Total Assets 4,067,728 4,809,490 39,360 2,487,729 11,404,307


2110 Accounts Payable 2,390,430 420,953 218,924 3,030,3072170 Due to Other Funds 39,360 39,3602200 Accrued Expenses 762,279 778,043 1,540,3222000 Total Liabilities 3,152,709 1,198,996 39,360 218,924 4,609,989

NET ASSETS3200 Investment in Capital Assets 560,722 560,7223900 Unrestricted Net Assets 915,019 3,610,494 1,708,083 6,233,5963000 Total Net Assets 915,019$ 3,610,494$ $ 2,268,805$ 6,794,318$


DRAFT

127

KATY INDEPENDENT SCHOOL DISTRICTCOMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN Exhibit K-2FUND NET ASSETSINTERNAL SERVICE FUNDSFOR THE YEAR ENDED AUGUST 31, 2012

Data TotalControl Health Workers' Auto Print InternalCodes Insurance Compensation Liability Shop Service Funds

OPERATING REVENUES5754 Charges for Services 34,805,577$ 799,984$ 233,143$ 3,192,569$ 39,031,273$

5020 Total Operating Revenues 34,805,577 799,984 233,143 3,192,569 39,031,273

OPERATING EXPENSES6100 Salary and Benefits 42,925 42,9256200 Administrator Fees 6,071,150 101,052 39,360 1,391,342 7,602,9046200 Insurance Premiums 41,216 70,335 111,5516200 Claims Expense 30,081,099 924,546 123,448 31,129,0936200 Repair and Maintenance 21,783 21,7836200 Equipment Rental 110,880 110,8806300 Supplies 1,514,399 1,514,3996400 Miscellaneous Operating Expenses 128 1286400 Depreciation 256 159,955 160,2116030 Total Operating Expenses 36,195,558 1,066,814 233,143 3,198,359 40,693,874

1300 Operating Income (Loss) (1,389,981) (266,830) (5,790) (1,662,601)

NONOPERATING REVENUES (EXPENSES)5742 Investment Income 8,586 22,544 5,790 36,920

Total Nonoperating Revenue (Expense) 8,586 22,544 5,790 36,920

Income (Loss) before Contributions & Transfers (1,381,395) (244,286) (1,625,681)7900 Capital Contributions 237,011 237,011

1300 Change in Net Assets (1,381,395) (244,286) 237,011 (1,388,670)0100 Total Net Assets September 1 (Beginning) 2,296,414 3,854,780 2,031,794 8,182,988

3000 Total Net Assets August 31 (Ending) 915,019$ 3,610,494$ $ 2,268,805$ 6,794,318$


DRAFT

128

KATY INDEPENDENT SCHOOL DISTRICTCOMBINING STATEMENT OF CASH FLOWS Exhibit K-3INTERNAL SERVICE FUNDSFOR THE YEAR ENDED AUGUST 31, 2012

TotalHealth Workers' Auto Print Internal

Insurance Compensation Liability Shop Service Funds

CASH FLOWS FROM OPERATING ACTIVITIES Cash Receipts from Internal Services Provided 33,987,846$ 799,984$ 233,143$ 3,192,568$ 38,213,541$ Cash Payments to Suppliers (128) (70,335) (1,637,273) (1,707,736) Cash Payments to Pay Claims (30,239,425) (881,046) (123,448) (31,243,919) Cash Payments to Contract Administrators (5,859,284) (144,348) (39,360) (1,524,005) (7,566,997) Cash Payments to Employees (42,925) (42,925)

Net Cash Provided (Used) by Operating Activities (2,153,916) (225,410) 31,290 (2,348,036)

CASH FLOWS FROM INVESTING ACTIVITIES Interest Received 8,586 22,544 5,790 36,920

Net Cash Provided by Investing Activities 8,586 22,544 5,790 36,920

Net Increase (Decrease) in Cash and Cash Equivalents (2,145,330) (202,866) 37,080 (2,311,116)Cash and Cash Equivalents at Beginning of Year 6,198,283 5,012,356 1,801,861 13,012,500

Cash and Cash Equivalents at End of Year 4,052,953$ 4,809,490$ $ 1,838,941$ 10,701,384$

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIESOperating Income (Loss) (1,389,981)$ (266,830)$ $ (5,790)$ (1,662,601)$ Adjustments to Reconcile Operating Income to Net CashProvided by Operating Activities: Depreciation 256 159,955 160,211 (Increase) in Inventories (846) (846) Decrease in Receivables 698 698 Increase (Decrease) in Accounts Payable 1,180,507 15,764 (122,029) 1,074,242 (Decrease) in Interfund Payables (818,429) (818,429) Increase (Decrease) in Accrued Expenses (1,126,967) 25,656 (1,101,311)

Net Cash Provided (Used) by Operating Activities (2,153,916)$ (225,410)$ $ 31,290$ (2,348,036)$

Noncash Investing, Capital,and Financing Activities

Contributions of Capital Assets from Government 237,011$ 237,011$ Capital Assets Retired (4,848)$ (4,848)$


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FIDUCIARY FUNDS

Agency Fund The Agency Fund is used to account for assets held by the District as an agent for employees and various student groups throughout the District.

Student Activity Fund The Agency Fund is used to account for assets held for various student groups throughout the District.

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KATY INDEPENDENT SCHOOL DISTRICTSTATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES Exhibit L-1AGENCY FUNDSYEAR ENDED AUGUST 31, 2012

Balance BalanceSeptember 1, August 31,

2011 Additions Deductions 2012

STUDENT ACTIVITIES

ASSETSCash 4,001,657$ 495,668$ 177,255$ 4,320,070$ Due From Other Funds 7,761,118 7,761,118Sundry Receivables 3,547 3,547

Total Assets 4,005,204$ 8,256,786$ 7,941,920$ 4,320,070$

LIABILITIESAccounts Payable 216,365$ 7,184,065$ 7,141,955$ 258,475$ Accrued Wages 2,391 1,276 2,391 1,276Due to Student Groups 3,760,627 7,824,427 7,524,735 4,060,319Deferred Revenue 25,821 25,821

Total Liabilities 4,005,204$ 15,009,768$ 14,694,902$ 4,320,070$

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KATY INDEPENDENT SCHOOL DISTRICTSCHEDULE OF CHANGES IN DUE TO STUDENT GROUPS Exhibit L-2AGENCY FUNDS Page 1 of 2YEAR ENDED AUGUST 31, 2012


School / Activity 2011 Additions Deductions 2012

Student Activities

Due to Student GroupsHigh Schools:

Katy 169,040$ 209,879$ 214,481$ 164,438$ Taylor 413,882 674,282 703,551 384,613Mayde Creek 162,386 266,573 295,272 133,687Cinco Ranch 434,785 668,973 686,250 417,508Morton Ranch 105,701 424,277 442,949 87,029Seven Lakes 324,386 926,412 809,533 441,265Raines 658 73 585Opportunity Awareness Center 61 61

24,688 82,996 79,030 28,654

Junior High Schools:Katy 78,318 106,782 92,701 92,399West Memorial 34,179 101,100 89,915 45,364Mayde Creek 1,944 64,824 64,372 2,396Memorial Parkway 89,987 94,410 96,338 88,059McDonald 48,460 52,942 58,356 43,046Beck 101,959 213,966 216,519 99,406McMeans 139,134 141,032 151,286 128,880Cinco Ranch 77,814 239,806 224,930 92,690Morton Ranch 55,270 47,707 63,401 39,576Beckendorff 112,913 362,572 358,514 116,971Cardiff 25,793 82,247 90,177 17,863Wood Creek 39,536 307,982 291,201 56,317Seven Lakes 24,590 11,841 12,749

Elementary Schools:Wolfe 2,005 1,846 2,954 897Katy 10,328 11,685 4,852 17,161West Memorial 6,870 13,130 11,951 8,049Memorial Parkway 4,894 9,244 10,154 3,984Hutsell 3,537 7,917 8,407 3,047Bear Creek 3,791 17,524 18,618 2,697Cimarron 8,700 21,592 22,839 7,453Winborn 14,784 12,867 11,346 16,305Nottingham Country 4,657 20,054 18,694 6,017Sundown 5,630 6,166 8,153 3,643Mayde Creek 2,530 7,647 6,065 4,112

Miller Career & Technology Center

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KATY INDEPENDENT SCHOOL DISTRICTSCHEDULE OF CHANGES IN DUE TO STUDENT GROUPS Exhibit L-2AGENCY FUNDS Page 2 of 2YEAR ENDED AUGUST 31, 2012


School / Activity 2011 Additions Deductions 2012

Elementary Schools: (continued)Pattison 7,520$ 22,562$ 25,735$ 4,347$ Golbow 5,289 25,519 25,943 4,865Fielder 11,565 30,530 31,689 10,406Hayes 10,689 17,221 17,783 10,127McRoberts 5,745 16,713 10,354 12,104Alexander 298 12,032 9,078 3,252Williams 19,882 32,644 32,728 19,798Creech 12,369 11,801 9,117 15,053King 5,016 14,267 5,750 13,533Schmalz 11,549 16,843 23,529 4,863Kilpatrick 21,829 41,153 38,583 24,399Rylander 7,666 16,236 14,552 9,350Exley 25,869 47,691 35,646 37,914Rhoads 52,268 24,477 58,178 18,567Franz 8,152 8,025 7,148 9,029Griffin 15,816 34,849 25,840 24,825Stephens 7,030 19,491 18,612 7,909Woodcreek 6,872 46,861 47,770 5,963Morton Ranch 1,050 13,149 11,916 2,283Holland 11,287 26,345 25,957 11,675Stanley 5,523 31,219 29,225 7,517Wilson 526 201 325Wolman 1,551 81 1,470Shafer 501 501 Total All Schools 2,761,185 5,735,949 5,670,138 2,826,996

Non-School ActivitiesAthletics 61,649 185,714 70,806 176,557Central Administration 269,821 189,705 145,037 314,489Vocational Administration 234,879 1,383,712 1,370,081 248,510Music Department 329,001 220,093 221,327 327,767Other 104,092 109,254 47,346 166,000

Total Non-School Activities 999,442 2,088,478 1,854,597 1,233,323

Total Due to Student Groups 3,760,627$ 7,824,427$ 7,524,735$ 4,060,319$

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CAPITAL ASSETS USED IN THE

OPERATIONS OF GOVERNMENTAL FUNDS

Capital assets purchased or constructed by the District are shown at original cost. Donated assets are valued at the fair market value on the date donated. Costs incurred for the purchase or construction of general capital assets are recorded as expenditures in the General Fund, Special Revenue Fund, and Capital Projects Fund and are capitalized as capital assets used in the operations of Governmental Funds. The capital assets consist principally of school buildings and related equipment.

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KATY INDEPENDENT SCHOOL DISTRICTCAPITAL ASSETS USED IN THE OPERATIONS OF GOVERNMENTAL FUNDS Exhibit M-1COMPARATIVE SCHEDULE BY SOURCEAS OF AUGUST 31, 2012 and 2011

2012 2011Governmental Fund Capital Assets

Land 71,402,749$ 70,658,230$ Land Improvements 51,097,019 49,437,573 Buildings and Improvements 1,114,454,641 999,479,636 Furniture and Equipment 143,658,606 131,034,965 Capital Leases 24,039,425 24,033,197 Vehicles 41,524,534 37,871,170 Construction in Progress 89,672,665 40,505,653

Total Governmental Fund Capital Assets 1,535,849,639$ 1,353,020,424$

Investment in Governmental Funds Capital Assets by Source

Investment in property acquired prior to September 1, 1977 16,243,454$ 16,243,454$ Investment in property acquired after September 1, 1977 from: General Fund 25,043,877 22,610,022 Special Revenue Fund 17,367,721 13,090,734 Capital Projects Fund 1,477,120,405 1,301,030,990 Agency Fund 74,182 45,224

Total Governmental Fund Capital Assets 1,535,849,639$ 1,353,020,424$

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KATY INDEPENDENT SCHOOL DISTRICTCAPITAL ASSETS USED IN THE OPERATIONS OF GOVERNMENTAL FUNDS Exhibit M-2SCHEDULE BY FUNCTION AND ACTIVITY Page 1 of 3AS OF AUGUST 31, 2012

Furniture,Land & Buildings & Construction- Equipment &

Improvements Improvements In-Progress Vehicles Total

Instructional and Related

High Schools:Katy 5,864,910$ 52,174,498$ 12,531,143$ 3,897,681$ 74,468,232$ Taylor 8,005,389 51,537,037 18,538,977 3,416,776 81,498,179Mayde Creek 3,992,042 67,598,619 19,562 4,389,483 75,999,706Cinco Ranch 11,703,233 59,400,770 19,562 6,587,307 77,710,872Morton Ranch 5,678,586 72,594,659 6,253,336 84,526,581Seven Lakes 7,344,963 63,454,420 6,696,618 77,496,001High School #7 2,097,244 58,563,421 60,660,665High School #8 5,773,343 5,773,343

Total 50,459,710 366,760,003 89,672,665 31,241,201 538,133,579

Junior High Schools:Katy 537,312 12,580,950 1,512,197 14,630,459West Memorial 357,779 24,591,678 1,327,765 26,277,222Mayde Creek 868,845 27,561,389 1,767,568 30,197,802Memorial Parkway 1,435,575 11,466,949 1,253,816 14,156,340McDonald 873,276 10,223,778 1,682,717 12,779,771Beck 841,191 11,102,047 1,673,594 13,616,832McMeans 1,308,285 14,260,850 1,823,897 17,393,032Cinco Ranch 252,412 15,012,544 1,962,433 17,227,389Morton Ranch 342,232 18,946,869 1,973,724 21,262,825Beckendorff 1,905,834 17,048,828 2,030,913 20,985,575Cardiff 2,336,559 25,010,125 2,151,772 29,498,456Wood Creek 1,824,346 25,749,749 2,170,264 29,744,359Seven Lakes 169,816 23,731,495 1,621,831 25,523,142 Total 13,053,462 237,287,251 22,952,491 273,293,204

Elementary Schools:Wolfe 313,237 15,808,347 971,822 17,093,406Katy 101,312 7,068,613 700,817 7,870,742West Memorial 148,165 12,027,531 1,035,675 13,211,371Memorial Parkway 276,282 7,994,722 914,368 9,185,372Hutsell 252,286 10,548,849 1,152,927 11,954,062

Location

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Elementary Schools (continued):Bear Creek 365,064$ 10,640,927$ $ 830,822$ 11,836,813$ Cimarron 407,222 8,238,352 780,253 9,425,827Winborn 591,044 12,203,380 707,047 13,501,471Nottingham Country 230,385 13,162,667 956,164 14,349,216Sundown 359,378 14,184,757 899,925 15,444,060Mayde Creek 166,813 14,457,150 836,992 15,460,955Pattison 668,799 8,870,501 810,951 10,350,251Golbow 420,767 6,219,491 800,454 7,440,712Fielder 224,442 7,795,416 735,059 8,754,917Hayes 220,014 6,868,414 914,760 8,003,188McRoberts 271,007 6,614,330 1,209,123 8,094,460Alexander 385,202 7,950,478 1,156,212 9,491,892Williams 558,436 8,470,549 1,175,743 10,204,728Creech 582,664 8,749,890 1,115,143 10,447,697King 507,762 10,451,465 1,264,290 12,223,517Schmalz 972,173 10,297,717 1,323,341 12,593,231Kilpatrick 1,295,400 10,438,185 1,106,035 12,839,620Rylander 1,237,535 11,564,560 1,262,576 14,064,671Exley 474,901 10,238,594 1,193,456 11,906,951Rhoads 921,263 10,345,078 1,407,795 12,674,136Franz 718,949 10,388,962 1,394,308 12,502,219Griffin 732,447 11,592,645 1,319,741 13,644,833Stephens 1,798,548 13,785,316 1,418,342 17,002,206Wood Creek 776,568 13,880,640 1,425,373 16,082,581Morton Ranch 1,125,834 15,428,109 1,393,944 17,947,887Holland 1,092,367 14,296,770 1,201,763 16,590,900Stanley 947,839 16,610,871 1,358,837 18,917,547Wilson 1,469,943 14,284,905 1,291,401 17,046,249Wolman 816,214 14,164,530 1,270,205 16,250,949Shafer 1,337,070 13,733,407 1,357,318 16,427,795

22,767,332 389,376,118 38,692,982 450,836,432

Location

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Instructional Leadership Administration Annex 3,191,471$ 1,376,638$ $ 891,449$ 5,459,558$

Transportation Transportation Centers 2,110,292 15,013,822 42,131,910 59,256,024

Rhodes Stadium 3,563,297 8,035,850 820,988 12,420,135 Rodeo Arena 7,968 1,477,114 20,661 1,505,743 Multi-Purpose Center 155,538 21,740,989 637,155 22,533,682 Total Cocurricular/Extracurricular 3,726,803 31,253,953 1,478,804 36,459,560

Administration Administration Building 2,280,040 22,808,331 40,130,300 65,218,671

Maintenance and Operations Support Services Complex 191,702 29,093,708 1,649,154 30,934,564

Other Alternative Learning Ctr/Raines 405,862 19,582,364 1,686,017 21,674,243 Miller Career & Technology Center 357,384 20,371,202 1,873,582 22,602,168 Outdoor Learning Center 449,352 508,991 21,420 979,763 Land Sites 23,581,764 23,581,764 Other 88,100 4,240,363 3,091,646 7,420,109 Total Other 24,882,462 44,702,920 6,672,665 76,258,047

Total Capital Assets 122,663,274$ 1,137,672,744$ 89,672,665$ 185,840,956$ 1,535,849,639$

Location

Cocurricular/Extracurricular Activities

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KATY INDEPENDENT SCHOOL DISTRICTCAPITAL ASSETS USED IN THE OPERATIONS OF GOVERNMENTAL FUNDS Exhibit M-3SCHEDULE OF CHANGES BY FUNCTION AND ACTIVITY Page 1 of 3YEAR ENDED AUGUST 31, 2012

Governmental GovernmentalFunds Capital Assets Funds Capital Assets

September 1, Net Retirements August 31,2011 Additions & Transfers 2012

Instructional and Related

High Schools:Katy 62,880,301$ 12,940,629$ 1,352,698$ 74,468,232$ Taylor 63,805,480 17,928,356 235,657 81,498,179Mayde Creek 74,523,439 1,731,865 255,598 75,999,706Cinco Ranch 77,544,920 355,699 189,747 77,710,872Morton Ranch 84,815,628 385,101 674,148 84,526,581Seven Lakes 77,058,282 1,672,978 1,235,259 77,496,001High School #7 14,568,329 46,568,101 475,765 60,660,665High School #8 5,769,009 4,334 5,773,343

Total High School 460,965,388 81,587,063 4,418,872 538,133,579

Junior High SchoolsKaty 14,465,938 192,692 28,171 14,630,459West Memorial 10,763,641 15,567,929 54,348 26,277,222Mayde Creek 15,960,323 14,306,527 69,048 30,197,802Memorial Parkway 14,005,303 236,585 85,548 14,156,340McDonald 12,524,930 623,116 368,275 12,779,771Beck 13,245,765 436,879 65,812 13,616,832McMeans 17,020,597 420,276 47,841 17,393,032Cinco Ranch 17,113,218 585,429 471,258 17,227,389Morton Ranch 21,305,503 35,268 77,946 21,262,825Beckendorff 20,932,676 78,757 25,858 20,985,575Cardiff 29,470,132 62,947 34,623 29,498,456Wood Creek 29,722,922 66,503 45,066 29,744,359Seven Lakes 10,328,014 15,195,913 785 25,523,142

Total Junior High 226,858,962 47,808,821 1,374,579 273,293,204

Elementary SchoolsWolfe 4,453,814 13,377,283 737,691 17,093,406Katy 7,688,841 214,451 32,550 7,870,742West Memorial 13,092,586 364,968 246,183 13,211,371Memorial Parkway 9,084,610 144,843 44,081 9,185,372Hutsell 11,406,518 603,551 56,007 11,954,062Bear Creek 11,395,465 767,573 326,225 11,836,813Cimarron 9,452,022 71,380 97,575 9,425,827Winborn 13,519,500 37,224 55,253 13,501,471

Location

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KATY INDEPENDENT SCHOOL DISTRICT Exhibit M-3CAPITAL ASSETS USED IN THE OPERATIONS OF GOVERNMENTAL FUNDS Page 2 of 3SCHEDULE OF CHANGES BY FUNCTION AND ACTIVITYYEAR ENDED AUGUST 31, 2012



Elementary Schools (continued):Nottingham Country 14,238,457$ 417,148$ 306,389$ 14,349,216$ Sundown 15,514,371 9,309 79,620 15,444,060Mayde Creek 15,448,873 35,773 23,691 15,460,955Pattison 10,176,648 210,773 37,170 10,350,251Golbow 7,399,115 67,723 26,126 7,440,712Fielder 8,551,855 232,488 29,426 8,754,917Hayes 7,878,553 157,776 33,141 8,003,188McRoberts 8,064,080 101,706 71,326 8,094,460Alexander 9,450,596 87,729 46,433 9,491,892Williams 10,081,585 149,355 26,212 10,204,728Creech 10,152,490 356,492 61,285 10,447,697King 11,980,614 563,889 320,986 12,223,517Schmalz 12,496,298 474,067 377,134 12,593,231Kilpatrick 12,868,064 37,856 66,300 12,839,620Rylander 14,028,686 60,149 24,164 14,064,671Exley 11,961,326 17,074 71,449 11,906,951Rhoads 12,733,018 28,047 86,929 12,674,136Franz 12,528,919 32,668 59,368 12,502,219Griffin 14,260,492 13,168 628,827 13,644,833Stephens 17,107,299 25,288 130,381 17,002,206Woodcreek 16,144,341 22,559 84,319 16,082,581Morton Ranch 17,958,726 9,796 20,635 17,947,887Holland 16,621,018 23,323 53,441 16,590,900Stanley 18,895,516 52,184 30,153 18,917,547Wilson 6,180,647 10,866,387 785 17,046,249Wolman 5,176,913 11,074,821 785 16,250,949Shafer 5,009,744 11,418,886 835 16,427,795 Total Elementary 403,001,600 52,127,707 4,292,875 450,836,432

Instructional Leadership

Administration Annex 5,368,593 134,551 43,586 5,459,558

Transportation

Transportation Centers 55,297,360 4,939,231 980,567 59,256,024

Cocurricular/Extracurricular Activities

Rhodes Stadium 12,388,828 31,307 12,420,135Rodeo Arena 1,505,743 1,505,743Multi-Purpose Center 22,527,454 7,088 860 22,533,682

Total Cocurricular/Extracurricular 36,422,025 38,395 860 36,459,560

Location

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KATY INDEPENDENT SCHOOL DISTRICT Exhibit M-3CAPITAL ASSETS USED IN THE OPERATIONS OF GOVERNMENTAL FUNDS Page 3 of 3SCHEDULE OF CHANGES BY FUNCTION AND ACTIVITYYEAR ENDED AUGUST 31, 2012



Administration

Administration Building 61,855,656$ 4,701,472$ 1,338,457$ 65,218,671$

Maintenance and Operations

Support Services Complex 30,755,852 250,532 71,820 30,934,564

OtherAlternative Learning Center 21,010,690 701,542 37,989 21,674,243Miller Career Center 22,585,946 69,341 53,119 22,602,168Outdoor Learning Center 970,434 9,329 979,763Land Sites 22,307,997 1,273,767 23,581,764Other 5,619,921 1,946,354 146,166 7,420,109

Total Other 72,494,988 4,000,333 237,274 76,258,047

Total Capital Assets 1,353,020,424$ 195,588,105$ 12,758,890$ 1,535,849,639$

Location

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GENERAL LONG-TERM DEBT ON

GOVERNMENTAL FUNDS The purpose of the Long-Term Debt Accounts is to record and present the liability of the District for long-term debt until the debt is retired. The long-term debt of the District consists of bonds issued for the purposes of constructing and equipping new facilities, renovation of existing facilities, and obligations related to compensated absences.

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KATY INDEPENDENT SCHOOL DISTRICTBOND SCHEDULEFISCAL YEAR ENDED AUGUST 31, 2012

Interest Amounts Amounts Issued RetiredDate of Rate Original Outstanding Current CurrentIssue Description Payable Issue 09/01/11 Year Year

08-15-92 Series 1992 Limited 5.40% 12,349,639$ 66,136$ $ 66,136$ Tax Refunding Bonds 6.40%

12-03-96 Series 1996-A 4.75% 25,000,000 3,100,000Limited Tax School Building 6.40%Bonds

11-08-00 Series 2000 Variable Rate 2.08% 50,000,000 37,800,000 37,800,000Unlimited Tax School 3.97%Building Bonds

11-01-02 Series 2002 Limited Tax 2.50% 13,449,981 1,495,000 1,495,000Refunding Bonds 3.00%

11-01-02 Series 2002-A Unlimited Tax 2.50% 159,360,000 4,490,000 4,490,000School Building Bonds 5.25%



05-25-04 Series 2004-B Limited Tax 2.00% 6,029,997 820,001 340,000Refunding Bonds 4.00%

07-28-04 Series 2004-C Unlimited Tax 3.92% 115,000,000 115,000,000 115,000,000School Building Bonds

02-23-05 Series 2005-A Unlimited Tax 3.00% 23,055,000 21,950,000 185,000Refunding Bonds 5.25%

02-23-05 Series 2005-B Unlimited Tax 3.00% 29,685,000 27,100,000 475,000Refunding Bonds 5.25%

09-28-06 Series 2006 Unlimited Tax 4.00% 29,995,000 27,975,000School Building Bonds 5.00%

03-21-07 Series 2007-A Unlimited Tax 4.25% 65,000,000 59,810,000School Building Bonds 5.00%

04-24-07 Series 2007-B Unlimited Tax 4.00% 167,944,959 165,159,960 580,000Refunding Bonds 5.00%

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Exhibit N-1Page 1 of 2

Amounts Interest Requirements 09/01/14Outstanding Current Year Ending 8/31/13 Year Ending 8/31/14 To Maturity

08/31/12 Year Principal Interest Principal Interest Interest

$ 753,864$ $ $ $ $ $

3,100,000 198,400 198,400 198,400 496,000

68,877

29,900

117,862

8,065,000 1,011,553 8,065,000 201,625

59,000

480,001 27,240 20,440 60,000 19,240 56,837

4,185,878

21,765,000 1,074,194 190,000 1,067,631 195,000 1,060,772 15,420,151

26,625,000 1,307,362 495,000 1,290,387 500,000 1,272,662 12,973,137

27,975,000 1,321,875 1,321,875 1,321,874 23,988,687

59,810,000 2,671,131 2,671,131 2,671,131 33,380,966

164,579,960 7,559,325 605,000 7,532,600 97,444 9,405,031 91,085,072

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144

KATY INDEPENDENT SCHOOL DISTRICTBOND SCHEDULEFISCAL YEAR ENDED AUGUST 31, 2012

Interest Amounts Amounts Issued RetiredDate of Rate Original Outstanding Current CurrentIssue Description Payable Issue 09/01/11 Year Year

04-24-07 Series 2007-C Limited Tax 4.00% 61,395,000$ 59,425,000$ $ 3,520,000$ Refunding Bonds 5.63%

09-24-07 Series 2007-D Unlimited Tax 4.25% 80,000,000 60,375,000 3,575,000School Building Bonds 5.63%


01-14-08 Series 2008-B Limited Tax 3.75% 38,235,000 34,540,000 795,000Refunding Bonds 4.38%

06-11-08 Series 2008-C Unlimited Tax 2.75% 97,700,000 87,600,000 2,660,000School Building Bonds 5.00%

03-12-09 Series 2009 Unlimited Tax 2.00% 24,315,000 23,165,000 505,000Refunding Bonds 5.00%


04-08-10 Series 2010-B Limited Tax 3.00% 11,625,000 11,460,000 1,410,000Refunding Bonds 5.00%

12-29-10 Series 2010-C Unlimited Tax 4.00% 41,470,000 41,470,000 5,280,000School Building Bonds 5.00%

12-29-10 Series 2010-D Unlimited Tax 4.50% 155,000,000 155,000,000School Building Bonds 5.30%Build America Bonds

12-29-10 Series 2010-E Limited Tax 2.00% 6,220,000 6,220,000 1,500,000Refunding Bonds 5.00%

06-19-12 Series 2012-A Unlimited Tax 4.00% 147,680,000 147,680,000School Building and 5.00%Refunding Bonds

07-17-12 Series 2012-B Variable Rate 4.00% 34,475,000 34,475,000Unlimited Tax School 5.00%Buildling and Refunding Bonds

07-17-12 Series 2012-C Variable Rate 4.50% 115,000,000 115,000,000Unlimited Tax 5.30%Refunding Bonds

1000 Totals 1,703,509,534$ 1,077,256,097$ 297,155,000$ 209,311,136$

6594-Other Debt Service Expense 803,513$

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Exhibit N-1Page 2 of 2

Amounts Interest Requirements 09/01/14Outstanding Current Year Ending 8/31/13 Year Ending 8/31/14 To Maturity

08/31/12 Year Principal Interest Principal Interest Interest

55,905,000$ 2,893,475$ 1,280,000$ 2,791,075$ 3,675,000$ 2,655,716$ 11,928,528$

56,800,000 2,825,550 1,505,000 2,717,600 1,475,000 2,654,275 27,136,347

27,895,000 1,105,863 2,975,000 1,042,769 2,705,000 936,269 2,659,725

33,745,000 1,347,663 3,295,000 1,270,975 2,975,000 1,153,413 3,444,152

84,940,000 4,066,002 2,505,000 3,988,527 2,780,000 3,906,472 49,071,266

22,660,000 1,027,513 560,000 1,011,538 525,000 997,888 14,599,705

67,640,000 3,191,700 5,460,000 3,074,500 11,795,000 2,670,425 9,738,925

10,050,000 439,000 2,510,000 360,600 1,135,000 293,375 1,454,675

36,190,000 1,887,000 5,235,000 1,624,125 5,500,000 1,355,750 3,506,775

155,000,000 9,251,378 9,251,378 9,251,378 163,549,468

4,720,000 167,537 575,000 131,787 1,485,000 96,338 78,094

147,680,000 1,116,772 7,179,250 7,179,250 106,898,975

34,475,000 1,381,442 1,281,750 21,530,125

115,000,000 457,412 5,463,651 5,255,500 81,704,410

1,165,099,961$ 50,163,326$ 35,255,000$ 55,593,306$ 34,902,444$ 55,636,909$ 674,702,020$

Note: The amounts in the interest columns include accreted interest on the capital appreciation bonds.

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COMPLIANCE SCHEDULES

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148

KATY INDEPENDENT SCHOOL DISTRICTSCHEDULE OF DELINQUENT TAXES RECEIVABLEFISCAL YEAR ENDED AUGUST 31, 2012

Assessed/Appraised BeginningFiscal Value For School BalanceYear Maintenance Debt Service Total Tax Purposes September 1

2003 Various Various Various Various 991,256$ and prior

2004 1.6000$ 0.3700$ 1.9700$ 10,817,988,156$ 329,775

2005 1.6300 0.3700 2.0000 11,730,058,506 388,550

2006 1.6300 0.3700 2.0000 12,688,512,035 415,519

2007 1.4850 0.3300 1.8150 14,003,603,902 454,963

2008 1.1266 0.4000 1.5266 16,171,736,868 583,589

2009 1.1266 0.4000 1.5266 18,673,124,451 851,562

2010 1.1266 0.4000 1.5266 19,517,648,879 1,239,157

2011 1.1266 0.4000 1.5266 19,819,925,666 2,774,987

2012 1.1266 0.4000 1.5266 20,727,521,751

1000 Totals 8,029,358$

9000 - Portion of Row 1000 for Taxes Paidinto Tax Increment Zone Under Chapter 311, Tax Code 149,436,760$ $

Note: Tax rates are per $100 valuation.

Tax Rates

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149

Exhibit O-1

Current Maintenance Interest and Entire EndingYear's and Operations Sinking Fund Total Year's Balance

Total Levy Collections Collections Collections Adjustments August 31

$ 27,222$ 6,283$ 33,505$ (468,881)$ 488,870$

8,855 2,048 10,903 (5,697) 313,175

13,530 3,071 16,601 (4,057) 367,892

37,977 8,621 46,598 11,718 380,639

156,686 34,819 191,505 159,669 423,127

229,617 81,526 311,143 305,491 577,937

290,417 103,113 393,530 300,338 758,370

395,567 140,446 536,013 235,476 938,620

720,922 255,964 976,886 (405,101) 1,393,000

312,869,011 228,963,618 81,293,667 310,257,285 2,611,726

312,869,011$ 230,844,411$ 81,929,558$ 312,773,969$ 128,956$ 8,253,356$

1,683,555$ 1,683,555$ $ 1,683,555$ $ $

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150

KATY INDEPENDENT SCHOOL DISTRICTSCHEDULE OF EXPENDITURES FOR COMPUTATIONS OF INDIRECT COST FOR 2013-2014 Exhibit O-2GENERAL AND SPECIAL REVENUE FUNDSYEAR ENDED AUGUST 31, 2012

Function 41 and Related Function 53-General Administration , 99 Appraisal District Cost1 2 3 4 5 6 7

(702) (703) (701) (750) (720) (Other)

Account Account School Tax Supt's Indirect DirectNumber Name Board Collection Office Cost Cost Miscellaneous Total

611X-6146 Payroll Costs 69,310$ 354,893$ 337,457$ 6,085,532$ $ $ 6,847,192$

6149

Fringe Benefits (Unused Leave for Separating Employees in Function 41 and Related 53)

6149

Fringe Benefits (Unused Leave for Separating Employees in all Functions except Function 41 and Related 53)

6211 Legal Services 692,145 692,1456212 Audit Services 84,500 84,500

6213

Tax Appraisal and Collection (Appraisal District Costs only from Function 99) 2,348,096 2,348,096

6214 Lobbying621X Other Professional Services 3,093 9,071 1,676 180,198 194,0386220 Tuition and Transfer Payments6230 Education Service Centers6240 Maintenance and Repairs 13,397 13,3976250 Utilities6260 Rentals 10,825 10,8256290 Miscellaneous Contracted Services 143,220 40,000 82,275 265,4956320 Textbooks and Reading 30 2,353 10,048 12,4316330 Testing Materials63XX Other Supplies and Materials 893 34,679 2,342 220,862 258,7766410 Travel, Subsistence, Stipends 17,791 357 13,236 68,495 99,8796420 Insurance and Bonding Costs 346,718 346,7186430 Election Costs 98,026 98,0266490 Miscellaneous Operating 15,596 748 43,721 134,413 194,4786500 Debt Service6600 Capital Outlay 27,882 27,8826000 Total 1,040,104$ 2,747,844$ 440,785$ 7,223,866$ 13,397$ 27,882$ 11,493,878$

Total expenditures for General and Special Revenue Funds 473,930,537$

LESS: Deductions of unallowable Costs

Total Capital Outlay (6600) 10 6,943,445Total Debt & Lease (6500) 11Plant Maintenance (Function 51, 6100-6400) 12 42,734,381Food (Function 35, 6341 and 6499) 13 12,290,321Stipends (6413) 14Column 4 (above) - Total Indirect Cost 7,223,866

Subtotal 69,192,013Net Allowed Direct Cost 404,738,524$

Total Cost of Buildings Before Depreciation 15 1,114,457,157$ Historical Cost of Buildings Over 50 Years Old 16 810,467$ Amount of Federal Money in Building Cost (Net of Above) 17 $ Total Cost of Furniture & Equipment Before Depreciation 18 186,934,619$ Historical Cost of Furniture & Equipment Over 16 Years Old 19 5,954,614$ Amount of Federal Money in Furniture & Equipment (Net of Above) 20 17,367,721$

(8) Note A - No Function 53 expenditures are included in this report on administrative costs. $2,348,096 in Function 99 expenditures for appraisal district costs are included in the report in administrative costs.

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151

KATY INDEPENDENT SCHOOL DISTRICT Exhibit O-3SCHEDULE OF REQUIRED RESPONSES TO SELECTED L1 WorksheetSCHOOL FIRST INDICATORSYEAR ENDED AUGUST 31, 2012

SF2Where there any disclosures in the Annual Financial Report and/or other sources of information concerning default on bonded indebtedness obligations? No

SF4Did the district receive a clean audit? - Was there an unqualified opinion in the Annual Financial Report? Yes

SF5Did the Annual Financial Report disclose any instances of material weaknesses in internal controls? No

SF9 Was there any disclosure in the Annual Financial Report of material noncompliance? No

SF10Total accumulated accretion on capital appreciation bonds included in government-wide financial statements at fiscal year-end 9,409,109$

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STATISTICAL SECTION (UNAUDITED)

The statistical section of the Katy Independent School District’s Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the District’s economic condition and overall financial health. To assist financial statement users, the information contained within this section is categorized as follows: Financial Trends Information These schedules contain trend information to show how the District’s financial performance

and position have changed over time. Revenue Capacity Information These schedules contain information to help assess the factors affecting the District’s most

significant local revenue source, the property tax. Debt Capacity Information These schedules present information to help assess the affordability of the District’s current

debt burden and its ability to issue additional debt in the future. Demographic and Economic Information These schedules provide demographic and economic indicators to help in understanding the

environment in which the District operates and to facilitate in comparisons over time. Operating Information These schedules provide information about the District’s operations and resources to assist in

using the financial statement information to better understand and assess the District’s economic condition.

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FINANCIAL TRENDS INFORMATION These schedules contain trend information to assist users in understanding how the District’s financial position has changed over time.

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KATY INDEPENDENT SCHOOL DISTRICTNET POSITION BY COMPONENTLAST TEN FISCAL YEARS(accrual basis of accounting)

2003 2004 2005 2006

Governmental Activities: Net Investment in Capital Assets 34,182,483$ 29,058,657$ 27,463,891$ 24,997,611$ Restricted 27,168,123 32,258,699 31,626,616 32,500,836 Unrestricted 31,441,249 21,894,511 19,073,280 23,325,590 Total Governmental Activities Net Position 92,791,855$ 83,211,867$ 78,163,787$ 80,824,037$

Business-type Activities: Net Investment in Capital Assets Restricted UnrestrictedTotal Business-type Activities Net Position $ $ $ $

Primary Government: Net Investment in Capital Assets 34,182,483$ 29,058,657$ 27,463,891$ 24,997,611$ Restricted 27,168,123 32,258,699 31,626,616 32,500,836 Unrestricted 31,441,249 21,894,511 19,073,280 23,325,590 Total Primary Government Net Position 92,791,855$ 83,211,867$ 78,163,787$ 80,824,037$

Source: District Financial Statements

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157

Exhibit I

2007 2008 2009 2010 2011 2012

20,411,149$ 23,580,292$ 20,218,827$ 8,212,302$ 21,482,594$ 17,995,023$ 38,775,885 39,551,272 45,930,809 55,025,421 53,397,875 56,177,142 44,163,519 54,974,366 70,842,091 76,101,294 89,003,969 114,349,856

103,350,553$ 118,105,930$ 136,991,727$ 139,339,017$ 163,884,438$ 188,522,021$

$ $ $ $ $ $

20,411,149$ 23,580,292$ 20,218,827$ 8,212,302$ 21,482,594$ 17,995,023$ 38,775,885 39,551,272 45,930,809 55,025,421 53,397,875 56,177,142 44,163,519 54,974,366 70,842,091 76,101,294 89,003,969 114,349,856

103,350,553$ 118,105,930$ 136,991,727$ 139,339,017$ 163,884,438$ 188,522,021$

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KATY INDEPENDENT SCHOOL DISTRICTCHANGES IN NET POSITIONLAST TEN FISCAL YEARS(accrual basis of accounting)

Expenses 2003 2004 2005 2006 Governmental Activities: Instruction 176,122,467$ 190,642,259$ 199,736,287$ 221,648,273$ Instructional Resources and Media Services 4,460,071 5,160,756 5,606,088 5,787,639 Curriculum and Instructional Staff Development 4,487,688 4,660,034 5,493,203 6,658,297 Instructional Leadership 3,316,718 3,042,934 2,762,674 3,161,367 School Leadership 15,886,458 18,895,920 19,857,658 20,575,869 Guidance, Counseling, and Evaluation Services 11,131,436 12,298,300 12,949,023 13,037,708 Social Work Services 96,064 105,340 66,285 60,253 Health Services 2,527,144 2,929,451 3,450,632 3,713,445 Student Transportation 8,615,856 10,202,993 10,717,877 12,058,695 Food Services 12,512,889 13,479,137 15,521,553 17,211,008 Cocurricular/Extracurricular Activities 4,964,783 5,865,535 6,363,179 7,695,834 General Administration 7,607,189 7,382,986 8,207,955 8,578,280 Plant Maintenance and Operations 24,230,707 28,487,575 32,440,001 35,695,475 Security and Monitoring Services 2,416,444 2,931,282 3,176,345 3,703,420 Data Processing Services 2,366,959 6,979,195 7,310,229 7,928,236 Community Services 795,238 937,873 989,942 1,165,140 Interest on Long-term Debt 33,371,074 35,709,269 39,079,447 38,845,376 Bond Issuance Costs and Fees 80,570 184,200 1,027,060 792,223 Facilities Acquisition and Construction 1,196,004 2,052,446 2,321,283 1,117,766 Payments Related to Shared Service Arrangements 158,616 151,175 192,823 257,893 Payments to Juvenile Justice Alternative Ed. Prog. 60,900 32,101 15,408 17,409 Payments to Tax Increment Reinvestment Zone 369,700 604,804 683,219 712,987 Payments to Appraisal DistrictsTotal Primary Government Expenses 316,774,975 352,735,565 377,968,171 410,422,593

Program Revenues Governmental Activities: Charges for Services Instruction 876,608 1,014,411 1,016,392 1,036,035 Food Services 7,937,777 8,513,645 9,182,558 9,751,677 Cocurricular/Extracurricular Activities 547,668 653,492 692,431 745,497 Plant Maintenance and Operations 284,212 458,187 512,962 1,154,693 Community Services 430,104 461,260 436,276 425,448 Facilities Acquisition and Construction Other Activities 252,196 237,830 257,370 529,342 Operating Grants and Contributions 30,033,096 28,883,019 45,851,257 57,260,855 Total Primary Government Program Revenues 40,361,661 40,221,844 57,949,246 70,903,547

Net (Expense)/RevenueTotal Primary Government Net Expense (276,413,314)$ (312,513,721)$ (320,018,925)$ (339,519,046)$

General Revenues and Other Changes in Net Position Governmental Activities: Property Taxes, Levied for General Purposes 155,819,443$ 171,611,930$ 188,508,552$ 204,609,341$ Property Taxes, Levied for Debt Service 33,099,347 39,460,323 43,186,971 46,597,555 State Aid - Formula Grants 82,715,317 88,227,999 75,728,794 80,619,011 Investment Earnings 3,522,301 2,613,507 6,289,107 9,573,370 Miscellaneous 4,938,955 1,019,974 1,257,421 780,019 Total Primary Government General Revenues 280,095,363 302,933,733 314,970,845 342,179,296

Change in Net PositionTotal Primary Government 3,682,049$ (9,579,988)$ (5,048,080)$ 2,660,250$


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159

Exhibit II

2007 2008 2009 2010 2011 2012

235,089,402$ 268,533,006$ 291,929,894$ 318,792,587$ 321,361,278$ 311,062,572$ 5,894,688 6,672,377 7,931,519 8,776,073 8,694,209 8,525,841 7,551,674 7,157,010 7,050,425 7,910,924 8,323,619 6,942,069 3,529,192 3,757,887 3,881,692 3,925,420 4,078,594 3,798,441

23,492,823 25,360,780 27,312,712 28,700,116 29,459,540 28,339,372 15,335,023 16,855,291 17,815,255 19,331,101 19,932,124 19,103,538

3,890,489 4,303,590 4,589,089 5,374,766 5,410,272 4,932,619 13,123,010 15,233,885 12,883,372 15,870,638 16,776,762 16,917,348 18,156,902 21,354,474 23,056,332 25,659,045 25,802,502 26,234,107

8,142,192 9,928,317 9,968,040 10,309,076 12,465,039 11,808,768 9,426,367 8,472,898 9,213,660 9,536,158 10,142,271 9,799,768

38,456,713 43,420,624 46,881,345 47,824,859 48,326,942 45,314,890 4,117,254 4,215,405 4,710,876 5,114,765 5,162,174 4,893,473

10,703,118 11,422,292 11,041,079 11,759,319 11,894,172 11,368,931 1,258,994 1,329,072 1,209,595 1,205,834 1,159,882 1,278,824

38,070,152 40,795,508 43,947,372 45,691,858 40,902,519 45,525,829 713,967 785,918 958,143 955,270 303,997 4,857,364

1,137,675 1,540,284 1,162,184 1,845,948 623,871 2,103,510 324,704 359,539 448,412 305,166 300,087 232,862

72,534 66,347 76,926 69,917 47,890 32,924 889,382 955,208 1,072,644 510,997 306,098 452,731

1,652,904 2,019,174 2,134,824 2,242,299 2,348,096 439,376,255 494,172,616 529,159,740 571,604,661 573,716,141 565,873,877

1,079,165 1,055,369 1,044,537 1,065,708 1,043,362 907,065 10,457,908 12,340,206 12,792,926 13,032,422 14,375,772 10,456,147

818,778 1,014,173 1,480,755 1,765,252 2,023,554 1,952,969 1,163,221 1,389,066 1,613,579 1,729,204 1,876,929 2,426,812

456,521 457,242 482,679 200,650 174,218 149,276 3,325,766

523,222 559,189 244,137 593,306 156,749 370,651 57,195,921 63,253,951 69,097,773 84,775,106 92,971,578 79,989,475 71,694,736 80,069,196 86,756,386 103,161,648 112,622,162 99,578,161

(367,681,519)$ (414,103,420)$ (442,403,354)$ (468,443,013)$ (461,093,979)$ (466,295,716)$

207,061,154$ 179,739,418$ 209,445,201$ 219,043,580$ 223,109,407$ 232,528,594$ 46,065,028 63,556,260 74,282,810 77,572,287 79,267,758 82,571,766

123,643,052 174,912,493 171,839,753 166,306,187 181,203,466 173,734,050 12,554,200 9,548,757 2,484,905 6,792,995 1,275,513 1,152,421

884,601 1,101,869 1,110,668 1,075,254 783,256 946,468 390,208,035 428,858,797 459,163,337 470,790,303 485,639,400 490,933,299

22,526,516$ 14,755,377$ 16,759,983$ 2,347,290$ 24,545,421$ 24,637,583$

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FUND BALANCES OF GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS(modified accrual basis of accounting)

Fiscal Year Ended 08/31: 2003 2004 2005 2006

General Fund

Non-spendable 1,842,796$ 1,202,349$ 1,105,561$ 1,363,980$ Committed 5,200,000 4,400,000 6,100,000 4,200,000 Assigned 13,212,625 4,188,413 1,622,383 3,089,885 Unassigned 24,032,290 33,731,432 38,441,226 39,188,541 Total General Fund 44,287,711$ 43,522,194$ 47,269,170$ 47,842,406$

All Other Governmental Funds

Non-spendable 203,856$ 134,944$ 101,225$ 180,427$ Restricted (1) 185,138,977 174,591,227 103,013,750 68,158,526 CommittedTotal All Other Governmental Funds 185,342,833$ 174,726,171$ 103,114,975$ 68,338,953$

(1) Changes in Restricted Fund Balances due to the timing of annual bond sales and related construction expenditures.

Source: District Financial StatementsDRAFT

161

Exhibit III

2007 2008 2009 2010 2011 2012

1,354,871$ 1,873,623$ 1,391,967$ 2,157,515$ 1,421,067$ 1,236,844$ 2,700,000 2,600,000 4,600,000 5,500,000 5,000,000 5,000,000 9,105,587 1,840,860 180,621 334,402 8,940,358 34,873,093

51,542,427 64,643,540 73,692,155 77,732,382 83,922,091 85,796,245 64,702,885$ 70,958,023$ 79,864,743$ 85,724,299$ 99,283,516$ 126,906,182$

191,582$ 132,669$ 179,606$ 251,330$ 218,906$ 239,268$ 101,056,547 91,648,933 79,766,603 71,624,798 181,202,286 138,769,172

2,352,818 2,565,430 2,807,308 101,248,129$ 91,781,602$ 79,946,209$ 74,228,946$ 183,986,622$ 141,815,748$

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162

KATY INDEPENDENT SCHOOL DISTRICTCHANGES IN FUND BALANCESGOVERNMENTAL FUNDSLAST TEN FISCAL YEARS(modified accrual basis of accounting)

2003 2004 2005 2006REVENUES Local, Intermediate, and Out-of-State 203,095,095$ 225,434,989$ 251,579,743$ 274,487,539$ State Programs 102,190,520 104,250,459 106,992,248 114,612,387 Federal Programs 10,298,972 12,563,189 14,183,010 22,662,809 Total Revenues 315,584,587 342,248,637 372,755,001 411,762,735

EXPENDITURES Current: Instruction 166,561,516 171,212,408 183,307,319 207,056,719 Instructional Resources and Media Services 3,710,457 3,874,739 4,332,612 4,577,636 Curriculum and Instructional Staff Development 4,472,197 4,464,563 5,496,733 6,668,900 Instructional Leadership 3,279,311 2,878,560 2,677,167 3,118,127 School Leadership 15,201,966 17,153,470 18,574,966 19,630,197 Guidance, Counseling, and Evaluation Services 10,825,772 11,447,352 12,360,173 12,623,208 Social Work Services 95,686 103,632 65,995 60,232 Health Services 2,240,886 2,410,384 2,962,348 3,262,193 Student Transportation 7,694,551 8,024,220 9,143,923 11,252,902 Food Services 11,293,492 11,327,681 13,182,893 15,023,843 Cocurricular/Extracurricular Activities 4,212,930 4,635,538 5,077,980 5,753,247 General Administration 7,346,313 6,960,872 7,373,660 7,918,102 Plant Maintenance and Operations 23,303,025 26,682,331 30,696,561 34,036,947 Security and Monitoring Services 2,375,727 2,811,394 3,102,896 3,743,425 Data Processing Services 2,062,328 5,619,515 5,156,563 4,840,349 Community Services 793,850 919,868 984,453 1,166,604 Debt Service: Principal on Long-term Debt 19,123,635 21,000,000 24,418,715 27,280,290 Interest on Long-term Debt 25,577,480 36,183,470 38,070,729 38,137,850 Bond Issuance Costs and Fees 2,379,339 1,229,078 796,239 549,710 Capital Outlay: Facilities Acquisition and Construction 148,320,124 156,135,935 71,549,002 36,334,257 Intergovernmental: Payments Related to Shared Service Arrangements 158,616 151,175 192,823 257,893 Payments to Juvenile Justice Alternative Education Programs 60,900 32,101 15,408 17,409 Payments to Tax Increment Reinvestment Zone 2,447,357 2,587,822 2,667,763 2,695,281 Payments to Appraisal Districts Total Expenditures 463,537,458 497,846,108 442,206,921 446,005,321

Excess (Deficiency) of Revenues Over (Under) Expenditures (147,952,871) (155,597,471) (69,451,920) (34,242,586) OTHER FINANCING SOURCES (USES)Refunding Bonds Issued 23,454,980 6,029,997 55,043,735 Issuance of Capital Related Debt (General Obligation Bonds) 224,034,958 144,090,000 Sale of Real and Personal Property 2,166 38,261 500,181 39,800 Proceeds from Capital Leases 25,590,000 Transfers In 2,495,350 1,923,662 3,076,491 3,306,741 Premium/Discount from Issuance of Bonds 13,005,604 2,544,413 2,193,487 Prepaid Interest on Bond Sales 1,660,551 Extraordinary ItemOther Resources 96,171 Transfers Out (2,495,350) (4,223,662) (3,076,491) (3,306,741) Payment to Bond Refunding Escrow Agent (24,159,471) (6,187,379) (56,149,703) Total Other Financing Sources (Uses) 263,684,959 144,215,292 1,587,700 39,800

Net Change in Fund Balances 115,732,088$ (11,382,179)$ (67,864,220)$ (34,202,786)$

Debt Service as a Percentage of Noncapital Expenditures (1) 14.17% 16.66% 16.82% 15.99%


(1) In calculating the ratio of total debt service expenditures to noncapital expenditures, governmental fund expenditures for the acquisition and construction of assets that are classified as capital assets for reporting in the government-wide financial statements are subtracted from the total governmental fund expenditures.

Total Expenditures 463,537,458$ 497,846,108$ 442,206,921$ 446,005,321$ Less: Capital Expenditures 147,999,721 154,600,784 70,725,762 36,910,199 Total Non-Capital Expenditures 315,537,737$ 343,245,324$ 371,481,159$ 409,095,122$

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163

Exhibit IV

2007 2008 2009 2010 2011 2012

280,831,045$ 270,977,481$ 303,580,951$ 327,094,361$ 329,823,325$ 340,712,386$ 162,763,562 216,105,399 210,251,108 196,102,519 213,715,690 202,618,331

17,436,262 21,393,828 26,219,083 49,137,229 57,953,778 43,429,299 461,030,869 508,476,708 540,051,142 572,334,109 601,492,793 586,760,016

219,194,081 251,354,793 269,537,620 291,917,938 301,529,674 285,930,849 4,617,025 5,273,769 5,757,651 6,747,428 6,942,900 6,524,212 7,482,979 7,143,582 6,864,451 7,845,233 8,324,803 6,898,759 3,442,456 3,711,127 3,770,034 3,843,553 4,057,656 3,736,648

22,300,714 24,160,937 25,462,905 26,716,508 27,969,423 26,462,148 14,803,455 16,343,264 17,069,072 18,445,897 19,276,983 18,236,935

3,389,637 3,772,423 4,058,489 4,591,317 4,746,316 4,159,915 11,338,150 16,293,597 13,486,474 12,530,374 17,673,359 13,972,298 15,971,493 19,675,576 20,578,180 22,196,554 22,740,357 23,048,070 6,304,803 7,898,546 7,302,397 7,709,668 9,969,462 9,176,420 8,788,291 7,803,126 8,531,368 8,816,940 9,556,448 9,145,782

37,308,819 41,647,853 45,135,795 45,736,061 46,003,543 42,901,346 4,193,896 4,094,284 4,571,848 4,957,056 5,309,484 4,847,057 7,316,165 7,824,710 7,308,873 7,676,070 8,203,034 7,436,616 1,256,604 1,330,580 1,205,533 1,207,373 1,160,407 1,300,534

23,996,448 33,424,703 30,310,140 32,443,017 33,038,949 35,181,136 41,562,419 44,944,261 50,352,037 47,218,663 57,116,297 50,163,326 2,980,150 2,226,613 812,816 2,628,369 3,053,887 4,243,024

70,036,213 188,034,286 40,056,710 16,170,704 88,182,312 199,914,742

324,704 359,540 448,412 305,166 300,087 232,862 72,534 66,347 76,926 69,917 47,890 32,924

2,871,182 2,938,733 3,054,869 2,493,628 2,290,436 2,435,819 1,652,904 2,019,174 2,134,824 2,242,299 2,348,096

509,552,218 691,975,554 567,771,774 574,402,258 679,736,006 758,329,518

(48,521,349) (183,498,846) (27,720,632) (2,068,149) (78,243,213) (171,569,502)

229,339,959 69,085,000 80,535,000 6,220,000 167,785,000 94,995,000 177,700,000 24,315,000 196,470,000 129,370,000

216,524 319,733 43,402 42,371 47,765 4,259,371

8,913,808 4,516,274 1,155,775 663,483 2,761,373 4,081,714 12,770,037 5,383,879 433,557 10,038,986 5,429,882 29,314,822

312,787 782,629

(9,014,739) (4,516,275) (1,155,775) (663,483) (2,761,373) (4,081,714) (239,712,215) (72,201,154) (90,611,898) (6,607,541) (174,020,686)

98,291,003 180,287,457 24,791,959 4,459 201,560,106 157,021,294

49,769,654$ (3,211,389)$ (2,928,673)$ (2,063,690)$ 123,316,893$ (14,548,208)$

14.91% 15.65% 15.33% 14.27% 15.38% 15.29%

509,552,218$ 691,975,554$ 567,771,774$ 574,402,258$ 679,736,006$ 758,329,518$ 69,961,671 191,177,412 41,572,647 16,035,610 93,728,031 200,034,542

439,590,547$ 500,798,142$ 526,199,127$ 558,366,648$ 586,007,975$ 558,294,976$

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REVENUE CAPACITY INFORMATION These schedules contain information to assist users in understanding and assessing the factors affecting the District’s ability to generate its own-source revenues.

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KATY INDEPENDENT SCHOOL DISTRICT Exhibit V

ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS

Total Total

Fiscal Year Real Property Personal Property Less: Assessed Direct

Ended 8/31: Value Value Exemptions Value Rate (1)

2003 9,852,002,492$ 956,156,220$ 937,237,088$ 9,870,921,624$ 1.9400$

2004 10,898,053,770 949,028,146 1,029,093,760 10,817,988,156 1.9700

2005 11,778,302,108 980,587,813 1,028,831,865 11,730,058,056 2.0000

2006 12,825,551,903 974,582,387 1,111,622,255 12,688,512,035 2.0000

2007 14,060,942,854 1,154,143,934 1,212,022,886 14,003,063,902 1.8150

2008 16,201,823,216 1,369,573,976 1,399,660,324 16,171,736,868 1.5266

2009 18,833,828,151 1,361,731,826 1,522,435,526 18,673,124,451 1.5266

2010 19,725,666,186 1,550,337,245 1,758,354,552 19,517,648,879 1.5266

2011 20,257,175,648 1,472,806,187 1,910,056,169 19,819,925,666 1.5266

2012 20,942,369,248 1,505,118,344 1,719,965,841 20,727,521,751 1.5266

(1) Tax Rates are per $100 of assessed value.

Source: County Appraisal Districts

Actual Value

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KATY INDEPENDENT SCHOOL DISTRICTPROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS(PER $100 OF ASSESSED VALUE)LAST TEN FISCAL YEARS

Taxing Authority 2003 2004 2005 2006

District Direct Rates: Maintenance & Operations $ 1.6000 $ 1.6000 $ 1.6300 $ 1.6300 Debt Service 0.3400 0.3700 0.3700 0.3700Total District Direct Rates $ 1.9400 $ 1.9700 $ 2.0000 $ 2.0000

Overlapping Rates:Addicks UD $ 0.6600 $ 0.6300 $ 0.6300 $ 0.6100Baker Road MUD 0.9700 0.9100 0.7700 0.6900Castlewood MUD 1.3500 1.3500 1.3500 1.1500Cimarron MUD 0.7000 0.7000 0.7000 0.6800Cinco MUD #1 1.0800 1.0200 1.0200 1.0000Cinco MUD #2 0.6800 0.6011 0.5800 0.5650Cinco MUD #3 0.7980 0.6200 0.5750 0.5400Cinco MUD #5 0.8600 0.7100 0.6500 0.5950Cinco MUD #6 0.7800 0.7200 0.6900 0.6400Cinco MUD #7 0.7250 0.7000 0.6650 0.6100Cinco MUD #8 0.9500 0.9400 0.9400 0.9100Cinco MUD #9 0.7600 0.7600 0.7600 0.7400Cinco MUD #10 1.0200 0.8700 0.7100 0.6700Cinco MUD #12 0.7800 0.6900 0.6400 0.5900Cinco MUD #14 1.0800 1.0200 1.0200 1.0000Cinco SW MUD #1 *N/A *N/A *N/A *N/ACinco SW MUD #2 *N/A *N/A *N/A *N/ACinco SW MUD #3 *N/A *N/A *N/A *N/ACinco SW MUD #4 *N/A *N/A *N/A *N/ACornerstone MUD 0.5300 0.5000 0.5000 0.4900Fort Bend Co. 0.5387 0.5237 0.5237 0.5167Fort Bend Co. LID #12 0.5000 0.5000 0.5000 0.5000Fort Bend Co. MUD #34 1.0700 1.0500 0.9500 0.8400Fort Bend Co. MUD #35 *N/A 1.2500 1.2500 1.2500Fort Bend Co. MUD #37 0.6300 0.6300 0.6300 0.6300Fort Bend Co. MUD #57 *N/A *N/A *N/A 1.5000Fort Bend Co. MUD #58 *N/A *N/A *N/A 1.5000Fort Bend Co. MUD #124 1.1500 1.2000 1.2000 1.1500Fort Bend Co. MUD #130 0.8000 0.8000 0.8000 0.8000Fort Bend Co. MUD #142 *N/A *N/A 1.3900 1.3900Fort Bend Co. MUD #151 *N/A *N/A *N/A 1.3000Fort Bend Co. MUD #171 *N/A *N/A *N/A *N/AFort Bend Co. MUD #185 *N/A *N/A *N/A *N/AFort Bend Co. MUD #199 *N/A *N/A *N/A *N/AFry Road MUD 0.6600 0.6200 0.6200 0.5600Grand Lakes MUD #1 1.2500 1.2500 1.2500 1.1500Grand Lakes MUD #2 1.2700 1.2200 1.1000 0.9700Grand Lakes MUD #4 0.9800 0.9000 0.8700 0.8200Grand Lakes WC & ID 0.2100 0.1700 0.1500 0.1050Green Trails MUD 0.4400 0.4400 0.4400 0.4400Harris Co. 0.3881 0.3880 0.3999 0.3999Harris Co. Dept. of Education 0.0063 0.0063 0.0063 0.0063Harris Co. Flood Contr. Dist. 0.0417 0.0417 0.0332 0.0332Harris Co. MUD #61 0.6650 0.6900 0.6900 0.6300Harris Co. MUD #62 0.6980 0.6700 0.6700 0.6600

*N/A Political entity not in existence or taxes not yet levied.


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Exhibit VIPage 1 of 2

2007 2008 2009 2010 2011 2012

$ 1.4850 $ 1.1266 $ 1.1266 $ 1.1266 $ 1.1266 $ 1.1266 0.3300 0.4000 0.4000 0.4000 0.4000 0.4000$ 1.8150 $ 1.5266 $ 1.5266 $ 1.5266 $ 1.5266 $ 1.5266

$ 0.6100 $ 0.6100 $ 0.6000 $ 0.6300 $ 0.6550 $ 0.6550 0.6800 0.6600 0.6300 0.5450 0.5650 0.5650 1.0900 0.9500 0.8900 0.8900 0.8700 0.8500 0.6400 0.6000 0.5800 0.5700 0.5700 0.5700 1.5000 0.8800 0.8800 0.6750 0.6450 0.5950 0.5500 0.5200 0.5000 0.4750 0.4750 0.4750 0.5200 0.5100 0.5100 0.4700 0.4700 0.4800 0.5900 0.5750 0.5750 0.5000 0.4950 0.4950 0.5900 0.5900 0.5900 0.4800 0.4800 0.4800 0.5900 0.5750 0.5750 0.5250 0.5200 0.4900 0.9000 0.8900 0.8900 0.8400 0.8500 0.5950 0.6750 0.6500 0.3700 0.6100 0.5950 0.5950 0.6600 0.6500 0.6500 0.6000 0.6100 0.5900 0.5600 0.5300 0.5300 0.4700 0.4300 0.4300 0.9000 0.7900 0.7900 0.6600 0.6350 0.5950

*N/A *N/A 1.5000 1.5000 1.5000 1.5000 1.5000 1.5000 1.5000 1.5000 1.5000 1.5000

*N/A *N/A 1.5000 1.5000 1.5000 1.5000*N/A *N/A 1.5000 1.5000 1.5000 1.5000

0.4900 0.4300 0.3800 0.3700 0.3700 0.3600 0.5167 0.5167 0.4998 0.4998 0.4998 0.4998 0.3500 0.2500 0.1900 0.1500 0.1400 0.1300 0.7500 0.7200 0.7100 0.7100 0.6900 0.6800 1.2000 1.0500 0.8900 0.7400 0.6900 0.6300 0.5900 0.5900 0.5900 0.5600 0.5200 0.5200 1.5000 1.5000 1.5000 1.5000 1.5000 1.4500 1.5000 1.5000 1.5000 1.5000 1.5000 1.5000 1.0900 0.9900 0.9200 0.9200 0.9200 0.9900 0.8000 0.7900 0.7700 0.7600 0.7600 0.7500 1.3900 1.3200 1.3200 1.3200 1.3200 1.3200 1.3000 1.3000 1.3000 1.3000 1.2700 1.2600

*N/A *N/A 1.2940 1.2940 1.2950 1.2950*N/A *N/A 1.2500 1.2500 1.2500 1.2500*N/A *N/A *N/A *N/A *N/A 0.6000

0.5400 0.5000 0.4650 0.4650 0.5000 0.5000 1.0300 0.7900 0.7900 0.6500 0.6300 0.5400 0.8600 0.7000 0.7000 0.4650 0.4550 0.4450 0.8200 0.8200 0.8200 0.7900 0.7900 0.7700 0.1000 0.0950 0.0950 0.0875 0.0825 0.0825 0.3500 0.2700 0.3000 0.3600 0.4400 0.4000 0.4024 0.3924 0.3892 0.3922 0.3881 0.3912 0.0063 0.0059 0.0058 0.0061 0.0066 0.0066 0.0324 0.0311 0.0309 0.0292 0.0292 0.0281 0.5900 0.5900 0.5900 0.5900 0.5900 0.5900 0.6100 0.6100 0.6200 0.6500 0.6500 0.6500

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KATY INDEPENDENT SCHOOL DISTRICTPROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS(PER $100 OF ASSESSED VALUE)LAST TEN FISCAL YEARS

Taxing Authority 2003 2004 2005 2006

Overlapping Rates:Harris Co. MUD #63 *N/A *N/A *N/A *N/AHarris Co. MUD #64 $ 0.7100 $ 0.7000 $ 0.7000 $ 0.7000Harris Co. MUD #65 0.8260 0.8260 0.8260 0.8260Harris Co. MUD #71 1.1780 1.1780 1.1700 1.1700Harris Co. MUD #81 0.5300 0.5000 0.4500 0.4000Harris Co. MUD #105 1.1000 1.1000 1.0500 1.0000Harris Co. MUD #216 1.2500 1.2500 1.2500 1.2500Harris Co. MUD #238 0.8350 0.8200 0.8100 0.7800Harris Co. MUD #287 *N/A *N/A *N/A *N/AHarris Co. MUD #345 0.4250 0.4000 0.3950 0.3950Harris Co. MUD #346 0.8300 0.8300 0.7100 0.5500Harris Co. MUD #432 *N/A *N/A *N/A *N/AHarris Co. UD #6 0.2500 0.2400 0.2400 0.2400Harris-Fort Bend Cos. MUD #1 1.1458 1.1000 1.0500 1.0000Harris-Fort Bend Cos. MUD #3 *N/A *N/A *N/A *N/AHarris-Fort Bend Cos. MUD #4 0.5000 0.6000 0.8700 0.9500Harris-Fort Bend Cos. MUD #5 1.0600 0.9700 0.9200 0.8600Houston, City of 0.6550 0.6550 0.6500 0.6475Interstate MUD 1.0200 0.9500 0.9300 0.7400Jackrabbit Road PUD 0.4400 0.4100 0.4100 0.4100Katy, City of 0.6147 0.6147 0.6147 0.6147Longhorn Town UD 0.8600 0.8500 0.8300 0.8100Mason Creek UD 0.3250 0.3250 0.3250 0.3250Mayde Creek MUD 0.9800 0.8200 0.8150 0.8000Memorial MUD 0.9300 0.8400 0.7800 0.7000Morton Road MUD 0.9700 0.8900 0.8400 0.8100Northwest Harris Co. MUD #12 1.1000 1.1000 1.0500 1.0000Nottingham Country MUD 0.5500 0.5300 0.5300 0.5300Port of Houston Authority 0.0199 0.0200 0.0167 0.0147Ricewood MUD 0.7600 0.6900 0.6750 0.6600Rolling Creek UD *N/A *N/A *N/A *N/AWaller County 0.6234 0.6562 0.6675 0.6999Waller County RID #1 *N/A *N/A *N/A *N/AWaller-Harris ESD 2000 *N/A *N/A 0.0975 0.1000West Harris Co. MUD #2 0.4000 0.3800 0.4000 0.4200West Harris Co. MUD #5 *N/A *N/A *N/A *N/AWest Harris Co. MUD #7 1.1700 1.1500 1.1300 1.0900West Harris Co. MUD #17 0.7700 0.7400 0.7400 0.7200Westlake MUD #1 0.6000 0.6000 0.6000 0.6000West Memorial MUD 0.2930 0.2930 0.2930 0.3000Weston MUD 0.8000 0.7500 0.7000 0.6400Westpark MUD 0.7500 0.6500 0.6200 0.6200Willow Creek Farms MUD *N/A *N/A *N/A *N/AWillow Fork DD 0.3500 0.3000 0.2700 0.2600Woodcreek Reserve MUD *N/A 0.6000 0.6000 0.6600

UD - Utility DistrictMUD - Municipal Utility DistrictPUD - Public Utility DistrictLID - Land Improvement DistrictRID - Road Improvement DistrictDD - Development DistrictESD - Emergency Services DistrictWC & ID - Water Control & Improvement District

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Exhibit VIPage 2 of 2

2007 2008 2009 2010 2011 2012

*N/A *N/A $ 0.8500 $ 0.8500 $ 0.8500 $ 0.8500$ 0.7000 $ 0.7000 0.7100 0.7100 0.7100 0.7100

0.8260 0.8260 0.8260 0.8260 0.8460 0.8960 1.1300 1.0900 1.0200 1.1000 1.1000 1.1000 0.3800 0.3700 0.3500 0.3500 0.3700 0.3700 0.9500 0.9300 0.9300 0.9300 0.9300 0.9300 1.2500 1.2500 1.2500 1.2200 1.1600 1.1000 0.7500 0.7300 0.7300 0.7200 0.7200 0.7150

*N/A 1.3500 1.3500 1.3500 1.3500 1.3500 0.3900 0.3700 0.3700 0.3700 0.3900 0.4200 0.5000 0.4900 0.4700 0.4400 0.4050 0.2800

*N/A *N/A *N/A *N/A 1.5000 1.5000 0.2400 0.2400 0.2400 0.2400 0.2400 0.2400 0.9500 0.8800 0.8000 0.7700 0.7500 0.7300

*N/A *N/A 1.2500 1.2500 1.2500 1.2400 0.9600 0.9600 0.9600 0.9600 0.9500 0.9500 0.8500 0.8200 0.7500 0.7500 0.7300 0.7100 0.6450 0.6438 0.6388 0.6388 0.6388 0.6388 0.6500 0.5500 0.4400 0.4350 0.4350 0.4250 0.3450 0.3450 0.3450 0.3450 0.3450 0.3450 0.6054 0.6054 0.5937 0.5937 0.5937 0.5937 0.7700 0.7000 0.7000 0.6700 0.6500 0.6500 0.3250 0.3240 0.3240 0.3240 0.3460 0.3460 0.7550 0.7550 0.7550 0.8370 0.8960 0.8960 0.6600 0.5800 0.5200 0.5400 0.5550 0.5500 0.8100 0.7900 0.7900 0.7900 0.8200 0.8400 0.9800 0.9600 0.9600 0.9600 1.0100 1.0600 0.5000 0.4300 0.4100 0.3950 0.3950 0.3950 0.0130 0.0144 0.0177 0.0164 0.0205 0.0186 0.6200 0.5600 0.5600 0.5600 0.5800 0.5800

*N/A *N/A *N/A 0.9900 0.9800 0.9700 0.6660 0.6288 0.6425 0.6246 0.6484 0.6598

*N/A *N/A 1.2500 1.2500 1.2500 1.2500 0.1000 0.0906 0.0930 0.0970 0.0944 0.0944 0.4200 0.4200 0.4200 0.4700 0.4600 0.5000 1.2000 1.2000 1.2000 1.2000 1.2000 1.2000 0.9900 0.9700 0.9300 0.9200 0.9000 0.9000 0.8200 0.8200 0.9300 0.9700 1.0100 1.2500 0.6000 0.6000 0.6000 0.6000 0.6000 0.6400 0.3200 0.3200 0.3200 0.3800 0.4500 0.4500 0.6200 0.6200 0.6200 0.6200 0.6200 0.6100 0.6500 0.6500 0.6500 0.4800 0.6500 0.7500

*N/A 1.2500 1.2500 1.2500 1.2500 1.2500 0.2400 0.2000 0.1900 0.1900 0.1900 0.1900 0.5100 0.6000 0.5100 0.5500 0.6000 0.6000

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KATY INDEPENDENT SCHOOL DISTRICT Exhibit VII

PRINCIPAL TAXPAYERS

CURRENT YEAR AND NINE YEARS AGO

2012 2003

Percentage of Percentage of

Assessed Total Assessed Assessed Total Assessed

Taxpayer Value (1) Rank Value (2) Value (1) Rank Value (3)

BP Amoco 384,651,333$ 1 1.85% 137,243,283$ 2 1.39%

Westlake Four Owner Corp 165,439,692 2 0.80 112,081,500 3 1.14

Shell Oil Co. 151,280,957 3 0.73 70,816,970 7 0.72

I-10 EC Corridor 123,181,427 4 0.59

Conoco Phillips Co. 118,890,439 5 0.57 90,291,490 4 0.91

Centerpoint Energy (4) 103,396,813 6 0.50

Katy Mills LP 103,247,113 7 0.50 163,442,250 1 1.66

Academy Ltd. 87,064,484 8 0.42 62,778,250 10 0.64

Wal-Mart 76,959,548 9 0.37

Sercel, Inc. 73,286,859 10 0.35

Albertson's 74,367,780 5 0.75

Reliant Energy (4) 71,702,490 6 0.73

ExxonMobil Corporation 68,022,410 8 0.69

Aquila Storage & Transport 64,113,600 9 0.65

TOTALS 1,387,398,665$ 6.69% 914,860,023$ 9.27%

(1) Assessed (taxable) value equals appraised value after exemptions.

(2) Total assessed value equals: 20,727,521,751$

(3) Total assessed value equals: 9,870,921,624$

(4) Centerpoint Energy was formerly Reliant Energy.


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KATY INDEPENDENT SCHOOL DISTRICT Exhibit VIIIPROPERTY TAX LEVIES AND COLLECTIONSLAST TEN FISCAL YEARS

Collected within theFiscal Year of the Levy Total Collections to Date

Collections Fiscal Year Adjusted Percentage in Subsequent PercentageEnded 8/31: Tax Levy Amount of Levy Years Amount of Levy

2003 187,557,969$ 184,422,965$ 98.33% 2,854,380$ 187,277,345$ 99.85%

2004 208,952,918 205,466,339 98.33 3,173,404 208,639,743 99.85

2005 231,263,763 227,014,603 98.16 3,881,268 230,895,871 99.84

2006 249,047,698 244,492,055 98.17 4,175,003 248,667,058 99.85

2007 250,563,007 246,717,803 98.47 3,422,077 250,139,880 99.83

2008 241,510,763 237,881,768 98.50 3,051,058 240,932,826 99.76

2009 282,427,908 276,744,032 97.99 4,925,506 281,669,538 99.73

2010 294,325,467 290,752,880 98.79 2,633,967 293,386,847 99.68

2011 298,536,338 296,166,452 99.21 976,886 297,143,338 99.53

2012 312,869,011 310,257,285 99.17 310,257,285 99.17DRAFT

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DEBT CAPACITY INFORMATION These schedules contain information to assist users in understanding and assessing the District’s debt burden and its ability to issue additional debt in the future.

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KATY INDEPENDENT SCHOOL DISTRICT Exhibit IXRATIOS OF OUTSTANDING DEBT BY TYPELAST TEN FISCAL YEARS

General Accretion on Total Ratio ofFiscal Year Obligation & Capital Capital Primary Debt to DebtEnded 8/31: Refunding Bonds Appreciation Bonds Leases Government Assessed Value (1) per ADA (2)

2003 671,548,405$ 32,389,404$ 25,190,000$ 729,127,809$ 7.39% 19,315$

2004 794,638,402 36,751,031 24,585,000 855,974,433 7.91 21,419

2005 770,219,688 39,709,448 23,960,000 833,889,136 7.11 19,697

2006 742,939,398 39,283,519 23,315,000 805,537,917 6.35 17,667

2007 811,472,908 39,442,081 22,645,000 873,559,989 6.24 18,033

2008 955,748,205 34,876,364 21,945,000 1,012,569,569 6.26 19,785

2009 949,753,065 27,568,558 21,215,000 998,536,623 5.35 18,614

2010 914,060,048 26,425,732 20,450,000 960,935,780 4.92 17,312

2011 1,077,256,097 9,711,419 19,645,000 1,106,612,516 5.58 19,186

2012 1,165,099,961 9,409,109 17,360,000 1,191,869,070 5.75 20,116

(1) See Exhibit V for assessed value data.(2) See Exhibit XV for student Average Daily Attendance (ADA) data.

Source: District Records

Governmental Actvities

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KATY INDEPENDENT SCHOOL DISTRICT Exhibit XRATIOS OF NET GENERAL OBLIGATION BONDED DEBT OUTSTANDINGLAST TEN FISCAL YEARS

Primary Ratio of NetGeneral Less Reserve Government Bonded

Fiscal Year Obligation for Retirement Net Bonded Debt to Net Bonded DebtEnded 8/31: Bonds of Bonded Debt Debt Assessed Value (1) per ADA (2)

2003 671,548,405$ 25,380,194$ 646,168,211$ 6.55% 17,117$

2004 794,638,402 28,679,465 765,958,937 7.08 19,166

2005 770,219,688 26,643,218 743,576,470 6.34 17,564

2006 742,939,398 25,987,669 716,951,729 5.65 15,724

2007 811,472,908 30,894,113 780,578,795 5.57 16,113

2008 955,748,205 31,341,477 924,406,728 5.72 18,062

2009 949,753,065 35,715,443 914,037,622 4.89 17,039

2010 914,060,048 43,788,671 870,271,377 4.46 15,678

2011 1,077,256,097 39,672,424 1,037,583,673 5.24 17,989

2012 1,165,099,961 43,645,850 1,121,454,111 5.41 18,927

(1) See Exhibit V for assessed value data.(2) See Exhibit XV for student Average Daily Attendance data.



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KATY INDEPENDENT SCHOOL DISTRICT DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT AUGUST 31, 2012

AmountPercent Overlapping

Taxing Authority Amount As Of Overlapping (1) Gross Debt

Direct:Katy Independent School District 1,234,842,654$ 8/31/2012 100.00% 1,234,842,654$

Overlapping:Addicks UD 12,745,000 10/31/2012 100.00 12,745,000 Baker Road MUD 4,250,000 10/31/2012 100.00 4,250,000 Castlewood MUD 8,720,000 10/31/2012 100.00 8,720,000 Cimarron MUD 27,150,000 10/31/2012 100.00 27,150,000 Cinco MUD #1 69,314,500 10/31/2012 100.00 69,314,500 Cinco MUD #2 12,184,100 10/31/2012 100.00 12,184,100 Cinco MUD #3 6,380,900 10/31/2012 100.00 6,380,900 Cinco MUD #5 8,105,900 10/31/2012 100.00 8,105,900 Cinco MUD #6 7,862,500 10/31/2012 100.00 7,862,500 Cinco MUD #7 13,275,200 10/31/2012 100.00 13,275,200 Cinco MUD #8 13,795,600 10/31/2012 100.00 13,795,600 Cinco MUD #9 8,209,400 10/31/2012 100.00 8,209,400 Cinco MUD #10 10,902,000 10/31/2012 100.00 10,902,000 Cinco MUD #12 5,870,400 10/31/2012 100.00 5,870,400 Cinco MUD #14 23,084,500 10/31/2012 100.00 23,084,500 Cinco Southwest MUD #2 88,879,600 10/31/2012 100.00 88,879,600 Cinco Southwest MUD #3 28,900,949 10/31/2012 100.00 28,900,949 Cinco Southwest MUD #4 67,169,451 10/31/2012 100.00 67,169,451 Cornerstone MUD 3,695,000 10/31/2012 100.00 3,695,000 Fort Bend Co. 485,890,000 10/31/2012 17.03 82,747,067 Fort Bend Co. LID #12 15,125,000 10/31/2012 6.40 968,000 Fort Bend Co. MUD #34 18,380,000 10/31/2012 100.00 18,380,000 Fort Bend Co. MUD #35 41,730,000 10/31/2012 100.00 41,730,000 Fort Bend Co. MUD #57 22,240,000 10/31/2012 100.00 22,240,000 Fort Bend Co. MUD #58 11,475,000 10/31/2012 100.00 11,475,000 Fort Bend Co. MUD #124 11,970,000 10/31/2012 100.00 11,970,000 Fort Bend Co. MUD #130 12,235,000 10/31/2012 100.00 12,235,000 Fort Bend Co. MUD #142 51,090,000 10/31/2012 52.64 26,893,776 Fort Bend Co. MUD #151 37,200,000 10/31/2012 26.17 9,735,240 Fort Bend Co. MUD #171 40,067,901 10/31/2012 100.00 40,067,901 Fort Bend Co. MUD #185 6,685,000 10/31/2012 100.00 6,685,000 Fort Bend Co. MUD #199 2,055,000 10/31/2012 100.00 2,055,000 Fry Road MUD 1,700,000 10/31/2012 100.00 1,700,000 Grand Lakes MUD #1 14,095,000 10/31/2012 100.00 14,095,000 Grand Lakes MUD #2 12,485,000 10/31/2012 100.00 12,485,000 Grand Lakes MUD #4 19,380,000 10/31/2012 100.00 19,380,000 Grand Lakes WC & ID 5,280,000 10/31/2012 100.00 5,280,000 Green Trails MUD 2,100,000 10/31/2012 100.00 2,100,000 Harris Co. 2,365,577,190 10/31/2012 3.91 92,494,068 Harris Co. Dept. of Education 7,795,000 10/31/2012 3.91 304,785 Harris Co. Flood Contr. Dist. 96,470,000 10/31/2012 3.91 3,771,977 Harris Co. MUD #61 4,650,000 10/31/2012 100.00 4,650,000 Harris Co. MUD #62 780,000 10/31/2012 100.00 780,000 Harris Co. MUD #63 12,215,000 10/31/2012 100.00 12,215,000 Harris Co. MUD #64 13,360,000 10/31/2012 100.00 13,360,000 Harris Co. MUD #65 15,520,000 10/31/2012 100.00 15,520,000 Harris Co. MUD #71 44,755,000 10/31/2012 100.00 44,755,000 Harris Co. MUD #81 8,815,000 10/31/2012 100.00 8,815,000 Harris Co. MUD #105 24,435,000 10/31/2012 4.60 1,124,010 Harris Co. MUD #216 8,145,000 10/31/2012 100.00 8,145,000 Harris Co. MUD #238 24,590,000 10/31/2012 100.00 24,590,000

Gross Debt Outstanding

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Exhibit XI

AmountPercent Overlapping

Taxing Authority Amount As Of Overlapping (1) Gross DebtOverlapping:Harris Co. MUD #287 5,980,000$ 10/31/2012 100.00% 5,980,000$ Harris Co. MUD #345 4,190,000 10/31/2012 100.00 4,190,000 Harris Co. MUD #432 1,800,000 10/31/2012 100.00 1,800,000 Harris Co. Toll Road 479,630,000 10/31/2012 3.91 18,753,533 Harris Co. UD #6 3,310,000 10/31/2012 100.00 3,310,000 Harris-Fort Bend Cos. MUD #1 15,225,000 10/31/2012 100.00 15,225,000 Harris-Fort Bend Cos. MUD #3 15,015,000 10/31/2012 100.00 15,015,000 Harris-Fort Bend Cos. MUD #4 15,905,000 10/31/2012 100.00 15,905,000 Harris-Fort Bend Cos. MUD #5 13,715,000 10/31/2012 100.00 13,715,000 Houston, City of 3,207,460,000 10/31/2012 1.47 47,149,662 Interstate MUD 12,315,000 10/31/2012 100.00 12,315,000 Katy, City of 10,615,000 10/31/2012 100.00 10,615,000 Longhorn Town UD 5,380,000 10/31/2012 100.00 5,380,000 Mason Creek UD 2,265,000 10/31/2012 100.00 2,265,000 Mayde Creek MUD 13,835,000 10/31/2012 100.00 13,835,000 Memorial MUD 11,115,000 10/31/2012 100.00 11,115,000 Morton Road MUD 7,165,000 10/31/2012 100.00 7,165,000 Northwest Harris Co. MUD #12 8,155,000 10/31/2012 0.55 44,853 Nottingham Country MUD 8,615,000 10/31/2012 100.00 8,615,000 Port of Houston Authority 731,969,397 10/31/2012 3.91 28,620,003 Ricewood MUD 7,940,000 10/31/2012 100.00 7,940,000 Rolling Creek UD 11,575,000 10/31/2012 13.97 1,617,028 Waller County 705,000 10/31/2012 12.56 88,548 West Harris Co. MUD #2 2,840,000 10/31/2012 100.00 2,840,000 West Harris Co. MUD #5 5,945,000 10/31/2012 100.00 5,945,000 West Harris Co. MUD #7 11,515,000 10/31/2012 100.00 11,515,000 West Harris Co. MUD #17 9,165,000 10/31/2012 100.00 9,165,000 Westlake MUD #1 5,650,000 10/31/2012 100.00 5,650,000 West Memorial MUD 4,495,000 10/31/2012 100.00 4,495,000 West Park MUD 15,555,000 10/31/2012 100.00 15,555,000 Weston MUD 16,190,000 10/31/2012 100.00 16,190,000 Willow Creek Farms MUD 5,270,000 10/31/2012 97.57 5,141,939 Willow Fork DD 30,625,000 10/31/2012 100.00 30,625,000 Woodcreek Reserve MUD 5,555,000 10/31/2012 100.00 5,555,000 Subtotal, Overlapping Debt 1,356,577,389

TOTAL DIRECT AND OVERLAPPING DEBT 2,591,420,043$

UD - Utility DistrictMUD - Municipal Utility DistrictPUD - Public Utility DistrictLID - Land Improvement DistrictDD - Development DistrictWC & ID - Water Control & Improvement District

(1) The percentage of overlapping debt is estimated using taxable assessed property values. Percentages were estimated bydetermining the portion of the overlapping taxing authority's taxable assessed value that is within the District's boundaries and dividing it by the overlapping taxing authority's total taxable assessed value.

Source: Texas Municipal Reports compiled and published by the Municipal Advisory Council of Texas

Gross Debt Outstanding

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DEMOGRAPHIC AND ECONOMIC INFORMATION These schedules contain information to assist users in understanding the socioeconomic environment in which the District operates and to provide information that facilitates comparisons of financial statement information over time and with other school districts.

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KATY INDEPENDENT SCHOOL DISTRICT Exhibit XIIDEMOGRAPHIC AND ECONOMIC STATISTICSLAST TEN FISCAL YEARS

Total AverageAssessed AssessedValue of Value Per Average

Fiscal Year Residential Residential Residential Daily UnemploymentEnded 08/31: Units (1) Units (1) Unit Attendance (2) Population (3) Rate (4)

2003 48,911 6,579,426,676$ 134,518$ 37,750 165,000 2.83%

2004 52,373 7,411,604,567 141,516 39,964 182,000 2.79

2005 54,713 8,169,441,828 149,314 42,336 196,000 2.78

2006 58,948 8,873,495,383 150,531 45,596 211,000 2.76

2007 63,687 9,658,273,966 151,652 48,443 225,000 2.79

2008 64,307 11,083,214,223 172,348 51,179 237,000 2.86

2009 67,095 11,964,914,716 178,328 53,644 252,000 2.95

2010 71,236 12,981,238,080 182,229 55,508 260,000 2.83

2011 73,679 13,660,293,039 185,403 57,679 268,000 4.80

2012 74,967 14,326,714,983 191,107 59,250 270,000 4.90

(1) Source: County Appraisal Districts. Includes Single Family Residential Units.(2) Source: District Records(3) Source: Municipal Advisory Council of Texas.(4) Source: Katy Area Economic Development Council and Katy Area Chamber of Commerce.

Due to the District's boundaries falling within three separate counties, total personal income data for geographic area is not available for the ten year period presented.

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KATY INDEPENDENT SCHOOL DISTRICT Exhibit XIII

PRINCIPAL EMPLOYERSCURRENT YEAR AND NINE YEARS AGO

2012 2003Percentage Percentage

of Total of TotalEmployer Employees Rank Employment (1) Employees Rank Employment (2)

Katy ISD 7,821 1 5.66% 5,306 1

BP Amoco 7,500 2 5.42 5,000 2

Mustang Engineering/Wood Group 3,500 3 2.53 2,000 4

Shell Oil 3,000 4 2.17 500 7

Academy Sports and Outdoors 2,500 5 1.81

ConocoPhillips 2,000 6 1.45 3,500 3

Foster Wheeler 1,200 7 0.87

Walmart 1,000 8 0.72

Sercel 700 9 0.51

Worley Parsons 700 10 0.51

ExxonMobil Corporation 1,400 5

Star Furniture 800 6

Albertson's 450 8

City of Katy 400 9

Memorial Hermann Katy Hospital 400 10

TOTALS 29,921 21.65% 19,756 n/a

(1) Total employment for 2012: 138,270(2) Total employment data not available for 2003.

Source: Katy Chamber of Commerce (2003) and Katy Area Economic Development Council (2012) through Info USA

and direct interviews.

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OPERATING INFORMATION These schedules contain information intended to provide contextual information about the District’s operations and resources to assist readers in using financial statement information to understand assess the District’s economic condition.

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KATY INDEPENDENT SCHOOL DISTRICTFULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY POSITIONLAST TEN FISCAL YEARS

POSITION: 2003 2004 2005 2006

Instruction 3,130.5 3,194.1 3,452.3 3,674.8 Instructional Resources and Media Services 71.2 78.0 77.0 88.0 Curriculum and Instructional Staff Developmen 44.2 37.0 51.2 62.9 Instructional Leadership 57.0 51.0 41.2 49.0 School Leadership 323.5 325.9 379.6 384.7 Guidance, Counseling, and Evaluation Services 160.8 168.5 186.0 199.4 Social Work Services 2.0 3.0 3.0 1.0 Health Services 44.9 47.8 53.9 64.9 Student Transportation 381.0 406.0 415.7 435.3 Food Services 348.0 364.0 388.0 411.0 Cocurricular/Extracurricular Activities 4.0 4.0 4.0 5.0 General Administration 116.0 92.0 90.0 107.0 Plant Maintenance and Operations 508.0 525.0 573.0 649.0 Security and Monitoring Services 68.8 63.0 73.0 76.0 Data Processing Services 38.0 64.0 75.0 72.0 Community Services 1.0 1.0 2.2 4.2 Facilities Acquisition and Construction 7.0 5.0 7.0 6.0

Total Employees 5,305.9 5,429.3 5,872.1 6,290.2

Source: District Records DRAFT

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Exhibit XIV

2007 2008 2009 2010 2011 2012

4,091.7 4,484.0 4,817.5 5,070.0 5,329.0 4,926.585.0 102.0 109.0 111.0 116.0 106.060.0 64.6 63.3 65.8 65.0 41.544.9 59.9 62.2 59.7 61.0 56.0

378.7 438.0 465.0 474.0 488.0 464.0203.0 243.5 265.0 268.5 286.5 261.5

1.0 0.0 0.0 0.0 0.0 0.068.9 81.0 90.0 97.0 108.0 104.0

453.4 476.7 533.0 527.0 485.0 490.0400.0 476.0 511.0 517.0 513.0 493.0

5.0 7.0 9.0 9.0 16.0 16.0110.7 104.5 109.4 103.4 112.4 100.4582.2 583.0 656.0 660.0 660.0 566.078.0 90.0 94.0 93.0 96.0 93.057.0 74.0 88.0 95.0 105.0 92.05.3 5.3 6.8 19.6 4.6 4.66.0 6.0 6.0 6.0 6.0 6.0

6,630.8 7,295.5 7,885.2 8,176.0 8,451.5 7,820.5

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KATY INDEPENDENT SCHOOL DISTRICTOPERATING STATISTICSLAST TEN FISCAL YEARS

Average CostFiscal Year Daily Operating Per PercentageEnded 8/31: Attendance Expenditures (1) ADA Change

2003 37,750 268,457,283$ 7,111$ 0.23%

2004 39,964 284,832,776 7,127 0.21

2005 42,336 308,195,476 7,280 2.14

2006 45,596 343,127,272 7,525 0.34

2007 48,443 371,051,530 7,660 1.78

2008 51,179 420,202,565 8,210 7.19

2009 53,644 444,724,134 8,290 0.97

2010 55,508 476,076,599 8,577 3.46

2011 57,679 492,798,842 8,544 (0.38)

2012 59,250 468,707,490 7,911 (7.41)

(1) Operating expenditures are total expenditures less debt service and capital outlay (to the extent capitalized for the government-wide statement of net assets) and expenditures for capitalized assets included within the functional expenditures categories.

Source: Academic Excellence Indicator System of Texas (AEIS) and District records.

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Exhibit XV

Percentage ofGovernment Cost Student to Students in

Wide Per Percentage Teaching Teacher Free/ReducedExpenses ADA Change Staff Ratio Lunch Program

316,774,975$ 8,391 $ 5.20% 2,692 14.02 15.00%

352,735,565 8,826 5.18 2,796 14.29 17.30

377,968,171 8,928 1.15 2,910 14.55 20.30

410,422,593 9,001 0.82 3,199 14.25 23.30

439,376,255 9,070 0.76 3,423 14.15 24.10

494,172,616 9,656 6.46 3,670 13.95 25.00

529,159,740 9,864 2.16 3,914 13.71 27.90

571,604,661 10,298 4.39 4,120 13.47 29.10

573,716,141 9,947 (3.41) 4,125 13.98 30.20

565,873,877 9,551 (3.98) 3,860 15.35 31.30

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KATY INDEPENDENT SCHOOL DISTRICT Exhibit XVITEACHER BASE SALARIESLAST TEN FISCAL YEARS

KISD Region IV StatewideFiscal Year Minimum Maximum Average Average Average

Ended 08/31: Salary (1) Salary (1) Salary (2) Salary (2) Salary (2)

2003 35,000$ 63,700$ 42,713$ 41,964$ 39,974$

2004 35,600 64,444 43,982 42,531 40,478

2005 36,500 65,237 43,733 43,107 41,011

2006 38,100 67,084 44,808 43,852 41,744

2007 41,000 69,584 47,646 46,675 44,897

2008 42,130 72,517 48,385 48,053 46,179

2009 43,300 71,624 49,263 49,186 47,159

2010 44,000 76,205 50,374 50,129 48,263

2011 45,000 77,073 50,799 50,616 48,638

2012 45,000 77,073 51,145 50,383 48,375

(1) Source: District records(2) Source: Academic Excellence Indicator System of Texas (AEIS).

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KATY INDEPENDENT SCHOOL DISTRICTSCHOOL BUILDING INFORMATIONLAST TEN FISCAL YEARS

Building: 2003 2004 2005 2006

HIGH SCHOOLSCinco Ranch (1999) Square Footage 581,934 581,934 581,934 581,934 Capacity 3,000 3,000 3,000 3,000 Enrollment 2,812 3,207 3,604 3,252 Katy (1947) Square Footage 589,196 589,196 589,196 589,196 Capacity 3,000 3,000 3,000 3,000 Enrollment 2,978 3,056 2,780 2,642 Mayde Creek (1984) Square Footage 581,821 581,821 581,821 581,821 Capacity 3,000 3,000 3,000 3,000 Enrollment 3,014 3,209 2,760 2,527 Morton Ranch (2004) Square Footage 482,996 482,996 Capacity 2,400 2,400 Enrollment 1,191 1,882 Raines (2008) Square Footage Capacity EnrollmentSeven Lakes (2005) Square Footage 599,005 Capacity 3,000 Enrollment 837 Taylor (1979) Square Footage 542,192 542,192 542,192 542,192 Capacity 3,000 3,000 3,000 3,000 Enrollment 2,521 2,605 2,769 2,748

JUNIOR HIGH SCHOOLSBeck (1996) Square Footage 129,328 137,569 137,569 137,569 Capacity 1,232 1,232 1,232 1,232 Enrollment 1,443 1,542 1,103 1,148 Beckendorff (2004) Square Footage 184,398 184,398 Capacity 1,403 1,403 Enrollment 707 986 Cardiff (2008) Square Footage Capacity EnrollmentCinco Ranch (2001) Square Footage 154,637 154,637 154,637 154,637 Capacity 1,400 1,400 1,400 1,400 Enrollment 1,027 1,103 1,013 1,096

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Exhibit XVIIPage 1 of 5

2007 2008 2009 2010 2011 2012

581,934 581,934 581,934 581,934 581,934 581,934 3,000 3,000 3,000 3,000 3,000 3,000 3,016 2,748 2,765 2,819 2,905 2,970

589,196 589,196 589,196 589,196 589,196 589,196 3,000 3,000 3,000 3,000 3,000 3,000 2,542 2,521 2,569 2,574 2,632 2,697

581,821 581,821 603,141 603,141 603,141 603,141 3,000 3,000 3,000 3,000 3,000 3,000 2,417 2,518 2,528 2,627 2,569 2,560

482,996 482,996 583,628 583,628 583,628 583,628 2,400 2,400 3,000 3,000 3,000 3,000 2,576 2,753 2,817 2,864 2,919 3,043

21,916 21,916 21,916 21,916 331 331 331 331 160 185 214 203

599,005 599,005 599,005 599,005 599,005 599,005 3,000 3,000 3,000 3,000 3,000 3,000 1,515 2,346 2,787 3,128 3,374 3,635

542,192 542,192 542,192 542,192 542,192 542,192 3,000 3,000 3,000 3,000 3,000 3,000 2,673 2,627 2,544 2,465 2,629 2,689

137,569 137,569 137,569 137,569 137,569 137,569 1,232 1,232 1,232 1,232 1,232 1,232 1,141 1,160 1,179 1,153 1,151 1,149

184,398 184,398 184,398 184,398 184,398 184,398 1,403 1,403 1,403 1,403 1,403 1,403 1,296 1,765 1,382 1,514 1,531 1,632

188,602 188,602 188,602 188,602 1,403 1,403 1,403 1,403 1,015 1,076 1,063 1,042

154,637 154,637 154,637 154,637 154,637 154,637 1,400 1,400 1,400 1,400 1,400 1,400 1,163 1,248 1,082 1,089 1,112 1,168

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Building: 2003 2004 2005 2006

JUNIOR HIGH SCHOOLS (cont.)Katy (1995) Square Footage 129,328 137,569 137,569 137,569 Capacity 1,231 1,231 1,231 1,231 Enrollment 1,460 1,119 1,104 1,155 Mayde Creek (1980) Square Footage 167,000 169,172 169,172 169,172 Capacity 1,414 1,414 1,414 1,414 Enrollment 1,380 1,229 1,276 1,355 McDonald (1991) Square Footage 129,328 137,569 137,569 137,569 Capacity 1,220 1,220 1,220 1,220 Enrollment 1,362 886 1,081 1,213 McMeans (2000) Square Footage 154,637 154,637 154,637 154,637 Capacity 1,400 1,400 1,400 1,400 Enrollment 1,127 1,125 1,195 1,169 Memorial Parkway (1982) Square Footage 148,627 148,627 148,627 148,627 Capacity 1,133 1,133 1,133 1,133 Enrollment 1,102 1,086 1,042 1,033 Morton Ranch (2003) Square Footage 180,290 180,290 180,290 Capacity 1,403 1,403 1,403 Enrollment 1,182 1,216 1,249 West Memorial (1976) Square Footage 159,000 163,906 163,906 163,906 Capacity 998 998 998 998 Enrollment 767 746 745 801 WoodCreek (2008) Square Footage Capacity Enrollment

ELEMENTARY SCHOOLSAlexander (1998) Square Footage 106,134 106,134 106,134 106,134 Capacity 935 935 935 935 Enrollment 1,036 1,079 862 993 Bear Creek (1978) Square Footage 101,269 101,269 101,269 101,269 Capacity 799 799 799 799 Enrollment 704 682 655 653 Cimarron (1980) Square Footage 93,823 93,823 93,823 93,823 Capacity 861 861 861 861 Enrollment 921 901 836 822

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2007 2008 2009 2010 2011 2012

137,569 137,569 137,569 137,569 137,569 137,569 1,231 1,231 1,231 1,231 1,231 1,231 1,228 1,224 1,243 1,218 1,231 1,315

169,172 169,172 169,172 169,172 169,172 169,172 1,414 1,414 1,414 1,414 1,414 1,414 1,387 1,386 1,078 1,118 1,164 1,158

137,569 137,569 137,569 137,569 137,569 137,569 1,220 1,220 1,220 1,220 1,220 1,220 1,299 1,275 871 906 958 943

154,637 154,637 154,637 154,637 154,637 154,637 1,400 1,400 1,400 1,400 1,400 1,400 1,209 1,218 1,212 1,220 1,168 1,177

148,627 148,627 148,627 148,627 148,627 148,6271,133 1,133 1,133 1,133 1,133 1,1331,022 963 975 965 936 925

180,290 180,290 180,290 180,290 180,290 180,2901,403 1,403 1,403 1,403 1,403 1,4031,248 1,316 1,296 1,245 1,254 1,215

163,906 163,906 163,906 163,906 163,906 163,906998 998 998 998 998 998775 794 777 800 788 780

188,602 188,602 188,602 188,6021,403 1,403 1,403 1,403

987 1,303 1,604 1,957

106,134 106,134 106,134 106,134 106,134 106,134 935 935 935 935 935 935

1,092 1,184 1,227 1,202 1,169 1,110

101,269 101,269 101,269 101,269 101,269 101,269 799 799 799 799 799 799 620 784 784 753 793 774

93,823 93,823 93,823 93,823 93,823 93,823 861 861 861 861 861 861 798 747 740 733 693 686

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Building: 2003 2004 2005 2006

ELEMENTARY SCHOOLS (cont.)Creech (2000) Square Footage 111,734 111,734 111,734 111,734 Capacity 935 935 935 935 Enrollment 1,073 1,110 882 918 Exley (2004) Square Footage 121,638 121,638 Capacity 1,030 1,030 Enrollment 891 979 Fielder (1993) Square Footage 106,117 106,117 106,117 106,117 Capacity 907 907 907 907 Enrollment 752 715 830 795 Franz (2004) Square Footage 121,638 121,638 Capacity 1,030 1,030 Enrollment 637 1,038 Golbow (1989) Square Footage 95,709 95,709 95,709 95,709 Capacity 867 867 867 867 Enrollment 1,177 1,266 790 858 Griffin (2006) Square Footage Capacity EnrollmentHayes (1995) Square Footage 106,117 106,117 106,117 106,117 Capacity 907 907 907 907 Enrollment 994 1,082 853 901 Holland (2008) Square Footage Capacity EnrollmentHutsell (1978) Square Footage 115,086 115,086 115,086 115,086 Capacity 983 983 983 983 Enrollment 849 854 859 867 Katy (1965) Square Footage 86,825 86,825 86,825 86,825 Capacity 643 643 643 643 Enrollment 722 689 521 564 Kilpatrick (2003) Square Footage 121,638 121,638 121,638 Capacity 1,030 1,030 1,030 Enrollment 689 1,032 1,557

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2007 2008 2009 2010 2011 2012

111,734 111,734 111,734 111,734 111,734 111,734 935 935 935 935 935 935 951 942 911 892 930 857

121,638 121,638 121,638 121,638 121,638 121,638 1,030 1,030 1,030 1,030 1,030 1,030 1,012 1,055 1,115 1,111 1,080 989

106,117 106,117 106,117 106,117 106,117 106,117 907 907 907 907 907 907 915 940 1,001 1,000 1,034 1,090

121,638 121,638 121,638 121,638 121,638 121,638 1,030 1,030 1,030 1,030 1,030 1,030 1,268 1,159 937 936 961 901

95,709 95,709 95,709 95,709 95,709 95,709 867 867 867 867 867 867 859 828 847 769 790 775

121,638 121,638 121,638 121,638 121,638 121,638 1,030 1,030 1,030 1,030 1,030 1,030

959 1,387 1,014 856 1,191 1,339

106,117 106,117 106,117 106,117 106,117 106,117 907 907 907 907 907 907 881 823 837 803 749 708

123,843 123,843 123,843 123,8431,030 1,030 1,030 1,030

881 981 1,021 1,051

115,086 115,086 115,086 115,086 115,086 115,086 983 983 983 983 983 983 839 811 775 759 781 790

86,825 86,825 86,825 86,825 86,825 86,825 643 643 643 643 643 643 640 638 601 576 563 571

121,638 121,638 121,638 121,638 121,638 121,638 1,030 1,030 1,030 1,030 1,030 1,030 1,199 1,078 1,146 1,240 1,301 1,334

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196


Building: 2003 2004 2005 2006

ELEMENTARY SCHOOLS (cont.)King (2001) Square Footage 121,164 121,164 121,164 121,164 Capacity 1,030 1,030 1,030 1,030 Enrollment 866 921 820 834 Mayde Creek (1983) Square Footage 95,709 95,709 95,709 95,709 Capacity 868 868 868 868 Enrollment 896 1,000 970 1,030 McRoberts (1997) Square Footage 106,134 106,134 106,134 106,134 Capacity 935 935 935 935 Enrollment 927 1,128 954 1,071 Memorial Parkway (1978) Square Footage 103,658 103,658 103,658 103,658 Capacity 742 742 742 742 Enrollment 621 571 550 592 Morton Ranch (2008) Square Footage Capacity EnrollmentNottingham Country (1981) Square Footage 101,427 101,427 101,427 101,427 Capacity 1,035 1,053 1,053 1,053 Enrollment 988 936 821 786 Pattison (1989) Square Footage 112,156 112,156 112,156 112,156 Capacity 1,052 1,052 1,052 1,052 Enrollment 915 939 889 862Rhoads (2004) Square Footage 121,638 121,638 Capacity 1,030 1,030 Enrollment 717 867Rylander (2004) Square Footage 121,638 121,638 Capacity 1,030 1,030 Enrollment 663 842Schmalz (2001) Square Footage 121,164 121,164 121,164 121,164 Capacity 1,030 1,030 1,030 1,030 Enrollment 1,019 1,078 977 1,076Stanley (2009) Square Footage Capacity EnrollmentStephens (2007) Square Footage Capacity Enrollment

DRAFT

197


2007 2008 2009 2010 2011 2012

121,164 121,164 121,164 121,164 121,164 121,164 1,030 1,030 1,030 1,030 1,030 1,030

914 980 866 885 943 1,087

95,709 95,709 112,913 112,913 112,913 112,913 868 868 968 968 968 968

1,036 769 784 865 843 820

106,134 106,134 106,134 106,134 106,134 106,134 935 935 935 935 935 935

1,248 951 975 844 887 859

103,658 103,658 103,658 103,658 103,658 103,658 742 742 742 742 742 742 701 756 749 751 773 804

123,843 123,843 123,843 123,8431,030 1,030 1,030 1,030

528 614 669 711

101,427 101,427 101,427 101,427 101,427 101,427 1,053 1,053 1,053 1,053 1,053 1,053

748 734 667 681 645 628

112,156 112,156 112,156 112,156 112,156 112,1561,052 1,052 1,052 1,052 1,052 1,052

863 822 813 826 871 831

121,638 121,638 121,638 121,638 121,638 121,6381,030 1,030 1,030 1,030 1,030 1,030

899 873 933 1,194 1,147 1,117

121,638 121,638 121,638 121,638 121,638 121,6381,030 1,030 1,030 1,030 1,030 1,0301,079 1,139 1,182 1,224 1,230 1,273

121,164 121,164 121,164 121,164 121,164 121,1641,030 1,030 1,030 1,030 1,030 1,0301,195 1,194 1,221 1,068 1,146 1,173

126,897 126,897 126,8971,030 1,030 1,030

897 1,191 1,539

123,249 123,249 123,249 123,249 123,2491,030 1,030 1,030 1,030 1,030

872 817 827 801 770

DRAFT

198


Building: 2003 2004 2005 2006

ELEMENTARY SCHOOLS (cont.)Sundown (1982) Square Footage 95,608 95,608 95,608 95,608 Capacity 868 868 868 868 Enrollment 918 914 945 777West Memorial (1974) Square Footage 89,742 89,742 89,742 89,742 Capacity 683 683 683 683 Enrollment 693 735 610 643Williams (2000) Square Footage 111,734 111,734 111,734 111,734 Capacity 935 935 935 935 Enrollment 1,145 1,060 991 993Winborn (1981) Square Footage 94,596 94,596 94,596 94,596 Capacity 848 848 848 848 Enrollment 851 849 848 935Wolfe (1968) Square Footage 73,219 73,219 73,219 73,219 Capacity 405 405 405 405 Enrollment 486 504 472 480WoodCreek (2007) Square Footage Capacity Enrollment

OTHER INSTRUCTIONAL FACILITIESMiller Career & Technology Center (1982) Square Footage 23,147 23,147 23,147 23,147 Capacity 160 160 160 160 Enrollment (1)Opportunity Awareness Center (1981) Square Footage 30,712 30,712 30,712 30,712 Capacity 150 150 150 150 Enrollment (2) 83 107

Portable Buildings (3) Number Utilized 156 148 157 183 Classrooms Provided 312 296 314 366


(1) Enrollment numbers included in home campus totals.(2) Enrollment numbers included in home campus totals from 2005-2012.(3) Used at schools where enrollment exceeded building capacity.

DRAFT

199


2007 2008 2009 2010 2011 2012

95,608 95,608 112,913 112,913 112,913 112,913868 868 968 968 968 968790 783 904 886 876 891

89,742 89,742 89,742 89,742 89,742 89,742683 683 683 683 683 683641 667 705 757 758 778

111,734 111,734 111,734 111,734 111,734 111,734935 935 935 935 935 935987 978 954 912 832 801

94,596 94,596 94,596 94,596 94,596 94,596848 848 848 848 848 848906 890 843 818 831 795

73,219 73,219 73,219 73,219 73,219 73,219405 405 405 405 405 405411 407 436 402 410 399

123,249 123,249 123,249 123,249 123,2491,030 1,030 1,030 1,030 1,030

741 1,053 1,082 1,373 1,601

23,147 23,147 132,951 132,951 132,951 132,951 160 160 907 907 907 907

30,712 30,712 87,015 87,015 87,015 87,015 150 150 677 677 677 677

208 219 219 227 241 270 416 349 360 396 404 459

DRAFT

200

KATY INDEPENDENT SCHOOL DISTRICT Exhibit XVIIIFUND BALANCE AND CASH FLOW CALCULATION WORKSHEETGENERAL FUNDAUGUST 31, 2012(Unaudited)

DataControlCode Explanation Amount

1 Total General Fund Balance 8/31/12 (Exhibit C-1 object 3000 for the General Fund Only) 126,906,182$

2 Total Non-Spendable Fund Balance (from Exhibit C-1 - total of object341X-344X for the General Fund only) 1,236,844

3 Total Restricted Fund Balance (from Exhibit C-1 - total of object345X-349X for the General Fund only)

4 Total Committed Fund Balance (from Exhibit C-1 - total of object351X-354X for the General Fund only) 5,000,000

5 Total Assigned Fund Balance (from Exhibit C-1 - total of object355X-359X for the General Fund only) 34,873,093

6 Estimated amount needed to cover fall cash flow deficits in General Fund (net of borrowed funds and funds representingdeferred revenues) 20,928,669

7 Estimate of two month's average cash disbursements during the fiscal year 76,264,203

8 Estimate of delayed payments from state sources (58XX)

9 Estimate of underpayment from state sources equal to variancebetween Legislative Payment Estimate (LPE) and District Planning Estimate (DPE) or District's calculated earned stateaid amount

10 Estimate of delayed payments from federal sources (59XX) 4,911,706

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

12 Optimum Fund Balance and Cash Flow (2 + 3 + 4 + 5 + 6 + 7 + 8 + 9+10+11) 143,214,515

13 Excess/(Deficit) Unassigned General Fund balance (1 - 12) (16,308,333)$

DRAFT

201

DRAFT


FEDERAL SINGLE AUDIT REPORT

For the Year Ended August 31, 2012

KATY INDEPENDENT SCHOOL DISTRICT FEDERAL SINGLE AUDIT REPORT TABLE OF CONTENTS Page Independent Auditors’ Report on Internal Control Over Financial Reporting and on

Compliance and Other Matters Based on an Audit of Financial Statements Performed In Accordance With Government Auditing Standards

1

Independent Auditors’ Report on Compliance with the 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

3

Schedule of Findings and Questioned Costs 5

Schedule of Expenditures of Federal Awards 7

Notes to Schedule of Expenditures of Federal Awards 10

1

INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Board of Trustees Katy Independent School District Katy, Texas We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Katy Independent School District’s (the “District”) as of and for the year ended August 31, 2012, which collectively comprise the District’s basic financial statements and have issued our report thereon dated January 22, 2013. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control over Financial Reporting Management of the District is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered the District’s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above.

Board of Trustees Katy Independent School District

2

Compliance and Other Matters As part of obtaining reasonable assurance about whether the District’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of the board of trustees, management, others within the organization, the Texas Education Agency and other applicable federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Houston, Texas January 22, 2013

3

INDEPENDENT AUDITORS’ 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

To the Board of Trustees Katy Independent School District Katy, Texas Compliance We have audited Katy Independent School District’s (the “District”) compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that could have a direct and material effect on each of the District’s major federal programs for the year ended August 31, 2012. The District’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the District’s management. Our responsibility is to express an opinion on the District’s compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the District’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the District’s compliance with those requirements. In our opinion, Katy Independent School District complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended August 31, 2012. Internal Control over Compliance Management of the District is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the District’s internal control over compliance with the requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the

Board of Trustees Katy Independent School District

4

purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. Schedule of Expenditures of Federal Awards We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the District as of and for the year ended August 31, 2012, and have issued our report thereon dated January 22, 2013 which contained an unqualified opinion on those financial statements. Our audit was conducted for the purpose of forming our opinions on the financial statements that collectively comprise the District’s financial statements. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain other procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Schedule of Expenditures of Federal Awards is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. This report is intended solely for the information and use of the board of trustees, management, others within the organization, the Texas Education Agency and other applicable federal awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Houston, Texas January 22, 2013

KATY INDEPENDENT SCHOOL DISTRICT SCHEDULE OF FINDINGS AND QUESTIONED COSTS For The Year Ended August 31, 2012

5

I. Summary of Auditors’ Results

Financial Statements Type of auditors’ report issued: Unqualified Internal control over financial reporting:

Material weakness(es) identified? No Significant deficiency (ies) identified that are not considered to be material weaknesses?

None reported

Noncompliance material to financial statements noted? No Federal Awards Internal control over major programs:

Material weakness(es) identified? No Significant deficiency (ies) identified that are not considered to be material weaknesses?

None reported

Type of auditors’ report issued on compliance with major programs: Unqualified

Any audit findings disclosed that are required to be reported in accordance with section 510(a) 2-7 Circular A-133?

No

Identification of major programs: Name of Federal Program or Cluster CFDA Numbers U.S. Department of Education

Title III, Part A – Language Enhancement and Academic Achievement, LEP

Special Education Cluster

IDEA, Part B – Formula IDEA, Part B - Preschool IDEA, Part B – Formula- LEA (ARRA) IDEA, Part B – Preschool – LEA (ARRA)

Education Jobs Fund

U.S. Department of Health and Human Services Temporary Assistance for Needy Families (TANF) Cluster

84.365A 84.027A 84.173A 84.391A 84.392A 84.410 93.558

1. Dollar Threshold Considered Between Type A and Type B Federal Programs

$1,146,890

2. Auditee qualified as low-risk auditee? Yes

KATY INDEPENDENT SCHOOL DISTRICT SCHEDULE OF FINDINGS AND QUESTIONED COSTS For The Year Ended August 31, 2012

6

II. Financial Statement Findings None III. Federal Award Findings and Questioned Costs None IV. Status Of Prior Year Findings #11-01 Child Nutrition service fund balance exceeded three months average operations.

Resolved. Currently the fund balance is incompliance.

V. Corrective Action Plan N/A

7

KATY INDEPENDENT SCHOOL DISTRICT Exhibit J-1SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Page 1 of 3FOR THE PERIOD ENDING AUGUST 31, 2012

(1) (2) (2A) (3)Federal Grantor/ Federal Pass-Through 11/12

Pass-Through CFDA Entity Identifying Federal Grantor/Program Title Number Number Expenditures

U.S. Department of Education

Passed Through State Department of Education:ESEA Title I Part A-Improving Basic Programs* 84.010A 11610101101914 45,628$ ESEA Title I Part A-Improving Basic Programs* 84.010A 12610101101914 3,930,352 ESEA Title I Part A-Improving Basic Programs* 84.010A 13610101101914 160,443 IDEA-Part B, Formula* 84.027A 116600011019146600 5,740 IDEA-Part B, Formula* 84.027A 126600011019146600 5,639,053 IDEA-Part B, Formula* 84.027A 136600011019146600 320,624 IDEA-B Preschool Grant* 84.173A 126610011019146610 106,851 IDEA-B Preschool Grant* 84.173A 136610011019146610 1,449 Carl Perkins Grant for Career and Technology 84.048A 12420006101914 314,144 Carl Perkins Grant for Career and Technology 84.048A 13420006101914 29,252 ESEA Title II, Part A-Teacher & Principal Training and Recruiting 84.367A 11694501101914 29,876 ESEA Title II, Part A-Teacher & Principal Training and Recruiting 84.367A 12694501101914 795,892 ESEA Title II, Part A-Teacher & Principal Training and Recruiting 84.367A 13694501101914 14,206 Title III, Part A- Lang. Enhancement & Academic Ach., LEP 84.365A 11671001101914 4,767 Title III, Part A- Lang. Enhancement & Academic Ach., LEP 84.365A 12671001101914 813,684 Title III, Part A- Lang. Enhancement & Academic Ach., LEP 84.365A 13671001101914 47,340 Title III,Part A-Lang. Enhancement & Academic Ach., Immigrant 84.365A 11671003101914 6,181 Title III,Part A-Lang. Enhancement & Academic Ach., Immigrant 84.365A 12671003101914 1,709,732 Title III,Part A-Lang. Enhancement & Academic Ach., Immigrant 84.365A 13671003101914 43,019 ARRA Title II, Part D, Technology 84.386A 10553001101914 12,756 ARRA IDEA-Part B, Formula-LEA* 84.391A 10554001101914 1,229,318 ARRA IDEA-Part B, Preschool-LEA* 84.392A 10555001101914 107,071 ARRA Title I, Part A, ARRA/Stimulus* 84.389A 10551001101914 278,161 Education Jobs Fund 84.410A 11550101101914 9,613,215 Summer School LEP 84.369A 69550902 68,807 IDEA-Part B, Discretionary-Shared Service Arrangement* 84.027A 126600021019146673 49,056 IDEA-Part B, Discretionary-Shared Service Arrangement* 84.027A 136600021019146673 1,307 IDEA-Part B, Formula Deaf-Shared Service Arrangement* 84.027A 116600011019146601 209 IDEA-Part B, Formula Deaf-Shared Service Arrangement* 84.027A 126600011019146601 18,070 IDEA-Part B, Preschool Deaf-Shared Service Arrangement* 84.173A 126610011019146611 8,544 IDEA-Part C, Early Intervention Deaf-Shared Service Arr. 84.181A 1203911011019143911 2,128

Total Passed Through State Department of Education 25,406,875

8




U.S. Department of Education (continued)

Passed through Texas Department of Assistive and Rehabilitative Services

Special Education Grants for Infants and Families with Disabilities (ECI) 84.181 53802C7031 667,550$ Special Education Grants to States (ECI)* 84.027 53802C7031 81,993

Total Passed through Texas Department of Assistive and Rehabilitative Services 749,543

Passed through Education Service Center Region 10:McKinney-Vento Homeless Education 84.196A 101914 39,390

Total Passed Through Education Service Center Region 10 39,390

Total U.S. Department of Education 26,195,808

U.S. Department of Health and Human Services

Passed through Texas Department of Assistive and Rehabilitative Services

Temporary Assistance for Needy Families (TANF) 93.558 53802C7031 201,998 Title XIX (Medicaid DRS) 93.778 53802C7031 201,663

Total Passed through Texas Department of Assistive and Rehabilitative Services 403,661

Passed through Texas Health and Human Services Commission:Title XIX (Medicaid DRS) 93.778 95,261

Total Passed Through Texas Health and Human Services Commission 95,261

Total U.S. Department of Health and Human Services 498,922

9




U.S. Department of Agriculture

Passed through Texas Department of Agriculture:Non-Cash Assistance:National School Lunch Program- USDA Donated Commodities* 10.555 71301001 1,525,582$

Total Passed Through Texas Department of Agriculture 1,525,582

Passed Through State Department of Education:Cash Assistance:National School Lunch Program * 10.555 71301001 8,176,673 School Breakfast Program* 10.553 71401001 1,760,680

Total Passed Through State Department of Education 9,937,353

Direct Program:Healthier US School Challenge 10.574 1,500

Total Direct Program 1,500

Total U.S. Department of Agriculture 11,464,435

U. S. Department of DefenseDirect Program:

Naval Junior Reserve Officers Training Program N/A 70,511 Total U.S. Department of Defense 70,511

TOTAL EXPENDITURE OF FEDERAL AWARDS 38,229,676$

* Clustered programs under OMB Circular A-133.See notes to Supplementary Schedule of Expenditures of Federal Awards.

KATY INDEPENDENT SCHOOL DISTRICT NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For The Year Ended August 31, 2012

10

Note 1 - Basis of Accounting The District accounts for all awards under federal programs in the General and Certain Special Revenue Funds in accordance with the Texas Education Agency's Financial Accountability System Resource Guide. These programs are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e. revenues and other financing sources) and decreases (i.e. expenditures and other financing uses) in net current assets. The modified accrual basis of accounting is used for these funds. This basis of accounting recognizes revenues in the accounting period in which they become susceptible to accrual, i.e., both measurable and available, and expenditures in the accounting period in which the liability is incurred, if measurable, except for certain compensated absences and claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and, accordingly, when such funds are received, they are recorded as deferred revenues until earned. Generally, unused balances are returned to the grantor at the close of specified project periods Note 2 - Basis of Presentation

The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the District under programs of the federal government for the year ended August 31, 2012. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Government, and Non-Profit Organizations. Because the schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net assets or cash flows of the District. Note 3 - Reconciliation to Basic Financial Statements The following is a reconciliation of expenditures of federal awards program per Exhibit J-1 Schedule of Expenditures of Federal Awards in this report and the expenditures reported on Exhibit C-3 of Katy Independent School District’s Comprehensive Annual Financial Report: Total Expenditures of Federal Awards per Scheduleof Expenditures of Federal Awards 38,229,676$ School Health and Related Service (SHARS) RevenueGeneral Fund 1,854,340 Early Childhood Intervention 109,962 Early Childhood Intervention 4,968 E-Rate Schools and Libraries Universal Service Support Mechanism (7,629) Build America Bonds Subsidy 3,237,982

5,199,623

Total Federal Revenues Exhibit C-3per the District's CAFR 43,429,299$

Post Office Box 159 . Katy, Texas 77492-0159

TO:

FROM:

SUBJECT:

DATE:

Board of Trustees


Board Approval of District Improvement Plan

January 22, 2013

Per TEC, Section 11.251, Katy ISD has created a proposed District Improvement Planthat includes components required by both state and federal law. The planningprocess has also included a comprehensive needs assessment (DINA), performanceobjectives and consultation with the Katy Improvement Council (KIC). The core (TrueNorth) areas addressed in the plan include: Student Growth and Success, Safe andOrderly Working and Learning Environment, Effective and Efficient Operations,Community Engagement and Organizational Improvement.

Impact Statement: Board approval of the proposed District Improvement Plan willprovide district and campus personnel with a common direction toward support of thecore areas.

Support of District Focus: 1) Student Growth and Success, 2) Safe and OrderlyWorking and Learning Environment, 3) Community Engagement, 4) Effective andEfficient Operations, and 5) Organizational Improvement.

It is recommended: that the Board of Trustees approve the District Improvement Planas presented.


Alton FraileySuperintendent

Christine Caskey,Chief Academic

Bonnie HollandAsst. Superintendent ofAdministration, Governanceand Legal Affairs

Freda Creech, Ed.D.Executive Director,School Improvement andStudent Support (SISS)

District Improvement Plan

2012-2013Katy ISD Mission Statement Katy Independent School District, the leader in educational excellence, together with family and community, provides unparalleled learning experiences designed to prepare and inspire each student to live an honorable, fulfilling life...to create the future.

Katy Independent School District

Alton Frailey Superintendent

Board of Trustees Rebecca Fox, President

Joe M. Adams, Vice President Henry Dibrell, Secretary

Brian Michalsky, Treasurer Charles Griffin, Sergeant-at-Arms

Bill Proctor, Ph.D., Member Terry Huckaby, Member

Prepared by:

Freda Corbell Creech, Ph.D. Bonnie Holland Executive Director Assistant Superintendent School Improvement and Student Support Governance and Legal Affairs

Kevin N. Stoerner Megan Evans Director Specialist Research, Assessment, and Accountability Accountability, Student Achievement, and Data Interpretation

TABLE OF CONTENTS

District Improvement Plan

2012 - 2013

Page

I. Introduction ……………………...…………..………..…………..………..…………..………..…………..…… 1

II. True North Focus for 2012 – 2013 ……………..…………..……………..………..………..………….. 2

III. District Improvement Plan Objectives .………………………….…………………………………...…………. 5

Katy Independent School District District Improvement Plan

2012 - 2013

Introduction

The Business of Katy ISD

Katy ISD is a flourishing suburban school district that encompasses 181 square miles in east Texas. Its eastern boundaries stretch to Houston's Energy Corridor approximately 16 miles west of downtown Houston and extend along Interstate 10 to a few miles west of the city of Katy. In the 2011-12 school year, student enrollment grew to more than 62,000 served by 53 schools - including six four-year high schools. Last rated as Recognized by the Texas Education Agency, Katy ISD offers an outstanding instructional program with facilities, equipment and materials that are among the best in the state.

District Improvement Plan (DIP) The Katy ISD District Improvement Plan (DIP) is designed to guide the District in addressing student learning and system needs. Additionally, Katy ISD’s District Improvement Plan (DIP) is designed to encompass federal, state, and locally required elements that are mandated for School Improvement planning. The True North Focus for the 2012-2013 school year guide the Katy ISD District Improvement Plan (DIP). To determine objectives, the District Improvement Plan (DIP) was informed by District data and the 2012 - 2013 Katy ISD District Improvement Needs Assessment (DINA). The objectives and strategies included in the 2012 - 2013 District Improvement Plan (DIP) were developed in collaboration with all District departments. District objectives include strategies for achievement, necessary resources, staff responsible, evidence of accomplishment, and timelines for implementation. The District Improvement Plan (DIP) is evaluated frequently to ensure District efforts result in intended improvement.

The District Improvement Plan (DIP) structures continuous improvement in the Katy Independent School District.

Katy Independent School District True North Focus

2012-2013

I. Student Growth and Success Focus: Each student will be provided engaging, relevant, and meaningful learning experiences which foster the acquisition of the KISD Instructional

Cornerstone Skills (collaboration, communication, creative thinking, critical thinking, information literacy, problem solving and social contribution) that lead to student success.

a. Develop and deliver a rigorous and relevant curriculum using strategies designed to engage students in meaningful learning experiences. b. Integrate the KISD Instructional Cornerstone Skills into all curriculum areas. c. Increase authentic classroom instruction by incorporating real world experiences. d. Design and implement balanced assessment systems which reflect student learning and mastery of the District’s curriculum. e. Provide professional learning opportunities focused on job-embedded experiences, student learning, and alignment to district and campus

needs assessments. f. Develop, implement, and enhance a standard continuum of instructional support services that are responsive to the needs of individual

students. g. Provide extracurricular programs which afford students the opportunity to experience the value of teamwork in accomplishing a common goal. h. Explore and implement emerging technologies which will enhance instruction. i. Expand online learning opportunities for students in order to extend instruction into the home and community.

II. Safe and Orderly Learning and Working Environment

Focus: A safe, orderly, and quality learning and working environment will be provided for students and staff.

a. Educate students and staff about the harmful effects of harassment and bullying, and implement best practices for prevention and intervention. b. Provide facilities that support and enhance instructional opportunities and effective district operations. c. Create and maintain an environment which supports positive physical, emotional, and social well-being for students and staff. d. Develop and practice an All-Hazards Emergency Plan at all facilities. e. Establish and implement standards for large events and spectator safety. f. Develop and begin implementing a comprehensive safety training program for all schools and departments. g. Work collaboratively with community first responders to improve safety throughout the District’s boundaries. h. Define and employ processes which promote a healthy climate and culture conducive to employee satisfaction and high performance. i. Disseminate and/or provide access to a Board-Approved Discipline Management Plan and Student Code of Conduct to all students and

personnel.

III. Community Engagement

Focus: Parents and community members are provided a variety of opportunities for active, collaborative involvement which support student success. a. Include parents, community, business, and industry representatives in planning and decision-making processes. b. Develop a communication plan for the District that will effectively utilize current resources while exploring new avenues for keeping the

District and community connected. c. Select Leadership Katy alumni to participate in a Community Roundtable facilitated by the Superintendent. d. Utilize a Community Bond Review Committee to review the status of the 2010 bond referendum. e. Identify resources, strategies, and unified messages that can be shared between the District’s marketing, PIE and communication offices. f. Redesign district and campus web pages to be more inviting, informational, and user-friendly. g. Create opportunities for district and campus–based personnel to proactively share information with the community regarding student and

programmatic successes. h. Provide RSS feeds to district information, news release alerts, etc. for subscription by students, parents, and community members.

IV. Effective and Efficient Operations

Focus: Resources are allocated in an efficient manner to facilitate quality learning experiences and a positive and effective work environment. a. Develop and implement a financial plan that makes effective use of available resources to attain the goals and objectives of the District. b. Actively recruit, support, develop, and retain highly qualified employees for all areas of the organization. c. Provide reliable and cost efficient technology solutions to enhance the quality of educational experiences. d. Support the integration of technology through district initiatives (i.e. mobile learning devices, Bring Your Own Device) to enhance student

learning. e. Review and update portraits of success for students, teachers, administrators, and support staff. f. Develop a transportation plan that makes efficient use of district resources while maintaining high levels of safety. g. Manage and support the transition to a new curriculum management system and design. h. Develop a process for ensuring that program changes which involve resources are fully vetted before being implemented. i. Explore the possibility of delaying the next facility referendum. j. Develop key performance indicators for each department/campus and a dashboard system to monitor them. k. Develop and maintain a staffing plan that utilizes data-driven decision-making to balance available budgetary resources with best practices and

district needs. l. Facilitate an effective process for identifying and training substitutes to ensure that campus and departmental needs are met. m. Use data from educational institutions and the private sector to maintain an efficient and competitive compensation plan. n. Implement a district video repository system for student or employee access. o. Implement a new Student Management System for improved efficiency of operation. p. Investigate options/issues associated with facility usage as a result of the planned opening of High School #7.

V. Organizational Improvement

Focus: Strategic data points and shared agreements are utilized to make decisions regarding planning, evaluation, and performance needs. a. Develop and implement strategies to maximize time management. b. Develop an organizational structure that supports and enhances collaboration and alignment between and among campuses, divisions,

departments, and various offices. c. Review and analyze meeting structures, schedules, and formats for improved efficiency. d. Implement a professional learning plan for assistant principals. e. Develop a professional development continuum for support staff. f. Develop a long-term plan for review and analysis of job descriptions and corresponding appraisal/evaluation instruments and processes. g. Expand opportunities for vertical alignment within high school feeder patterns (Areas 1, 2, 3). h. Develop and demonstrate high-value, lightweight, and repeatable processes for service delivery. i. Facilitate an efficient and effective recruiting program to employ quality teachers/administrators/other personnel needed to support district

goals and programs.

True North Focus: Student Growth and Success

Objectives Strategies Evidence of Accomplishment Timeline Person(s) Responsible Budget/Funds Source (EST.)

CURRICULUM:Ensure that the district provides a rigorous, relevant, and engaging curriculum that is aligned to state and national standards

Utilize concept-based curriculum design to create quality unit plans constructed with the Katy ISD design standards via online curriculum management system

Written Curriculum Unit Plans containing: TEKs ELPs College Board Advanced Placement Standards Technology StandardsTexas College Readiness Standards

July 1, 2012 -

August 31, 2013

Teaching & Learning Division

General Operating Funds (GOF)

Perkins Grant

$10,000 (LOTE)

Provide all teachers professional development to create and implement concept-based curriculum

Trainings Handouts Sign-in sheets Eduphoria LMS reports

September 2012

Teaching & Learning Division Instructional Coaches Campus Administrators

GOF Perkins Grant$10,000 (LOTE)

Integrate all Katy ISD Instructional Cornerstones into all curriculum areas and Unit Plans

Unit Plans August 2015 Teaching & Learning Division


Provide clarity through concise language, clearly articulated content, and aligned resources

Unit Plans that contain instructional guidance and content aligned resources

July 1, 2012 -

August 31, 2013



INSTRUCTION: Ensure that each student experiences engaging relevant and differentiated instruction that promotes academic, emotional, physical, social and behavioral skills

Provide learning opportunities that allow students to progress through the KISD Instructional Cornerstones Continuum

Performance tasksTraining Visuals posted Portrait of a Graduate Participation in extra curricular and co-curricular groups that promote Bring Your Own Device

July 1, 2012 -

August 31, 2013

Teachers

Instructional Coaches

Principals

Area Assistant Superintendents

Utilizing a campus-based, content-specific, instructional coaching model

District level instructional coaching Campus visits ICs providing job-embedded professional learning ICs leading, facilitating, and mentoring Teacher planning Ongoing Friday professional development sessions

July 1, 2012 -

August 31, 2013


Principals


GOF $50,000

Department of Curriculum and Instruction (Elementary and Secondary)


Explore and implement emerging technologies which enhance cognitive engagement and learning for all students (ELL, GT, CTE, SPED, Eco Dis, At-risk, Dyslexia, PreKindergarten, 504 and Pregnant/Parenting)

Technology resources

Use of web-based tool

Additional online learning opportunities

Expand Mobile Learning Device use

Provide training to increase the use of technology tools including probes

TI-Nspire

Sign-in sheets

Daily lesson plans

Learning Walks (campus walkthroughs)

Purchase Orders

Training

Reports

504 Accommodation Plans

July 1, 2012 -

August 31, 2013

Teachers


Principals

Instructional Technology Department


Assistant Superintendent for Administration, Governance, and Legal Affairs

GOF Title I, II, III (LEP & Immigrant)Perkins Grant State Compensatory Education $16,598 Student Success Initiative$122,494 Title III:LEP:Benchmark Universe: $45,000AtoZ $19,000ESLreadingsmart:$2,400Achieve 3000:$33,940Immigrant:$176,231Benchmark Universe:$45,000AtoZ:$19,000ESLreadingsmart:$2,400Achieve 3000:$33,940

Increase student engagement by developing and providing student work that is authentic, novel, varied, and allows for choice

Lesson plans

Observations

Walk-throughs

August 2012 -

June 2013

Teachers Instructional Coaches Campus Administrators Teaching & Learning Division

Design and deliver rigorous and differentiated learning experiences that require students to transfer and apply knowledge and skills to new experiences

Students apply knowledge to new learning experiences Use of performance tasks Creation of quality student products Open-ended investigations/problems College Entrance examsIncreased enrollment in advanced academics

July 1, 2012 -

August 31, 2013

Teachers Instructional Coaches Principals Teaching & Learning Division

GOF


Implement ESOL in-class support instructional model for identified students

AgendasESL Guidelines in EGRHSign-in sheetsTrainings

August 2012 -

June 2013

Department of Other Languages

Provide supplemental instructional support facilitators to identified campuses to increase performance of ELL students across the content areas

Calendars

Follow-up class write-ups

Sign-in sheets

July 1, 2012 -

August 31, 2013


GOFTitle III LEP $403,594

Title III Immigrant $275,489

Provide one-way and two-way dual language programs for identified students including transition to secondary plan

AgendasSign-in sheetsISIP dataCurriculumPlan

July 1, 2012 -

August 31, 2013


Campus sites

Title III LEP

Design and deliver instruction that challenges students to make connections between and among disciplines/content areas

Performance tasks that include interdisciplinary skills Integrated training for Instructional Coaches.

July 1, 2012 -

August 31, 2013

Teachers Instructional Coaches Curriculum & Instruction Department

GOF

ASSESSMENT:Design and develop relevant tasks to assess student learning using a variety (pre-assessment, formative, summative) of formats to inform/guide instruction and to measure desired learning outcomes

Design and implement balanced assessment systems to make informed instructional decisions

District level Benchmark Assessments

Teacher Created Assessments

Performance Tasks

Lesson plans

July 1, 2012 -

August 31, 2013

Teachers Instructional Coaches Principals Assessment Department Curriculum & Instruction Department

GOF $140,000

Provide training on writing quality assessments

Training

Sign-in sheets

Creation of quality assessments in a variety of formats and purposes

July 1, 2012 -

August 31, 2013

Teachers Instructional Coaches Principals Assessment Department Curriculum & Instruction Department

GOF

Title II

Design performance tasks that increase authentic classroom instruction by incorporating real-world experiences

Real-world performance tasks designed in Unit Plans

Lesson plans

July 1, 2012 -

August 31, 2013


GOF


Provide students with multiple and varied opportunities to demonstrate learning

Elementary and Secondary Grading and Reporting Handbook

Daily lesson plans

Online-gradebook

July 1, 2012 -

August 31, 2013

Teachers


Curriculum & Instruction Department

Actively involve students in using evaluation criteria to self-monitor, self-reflect, and self-evaluate

Reflection sheets from benchmark assessments

Rubrics

July 1, 2012 -

August 31, 2013


Use web-based data system (Aware) and student management system (eSchoolPlus) to disaggregate and analyze student assessment data to improve student achievement

Lesson plans

Data-conferences

Aware training to users

July 1, 2012 -

August 31, 2013

Teachers Instructional Coaches Curriculum & Instruction DepartmentAssessment Department

ASSESSMENT: Increase student performance on state assessments and other performance measures such as AP, and PSAT

Use student performance data from multiple sources to identify and provide all students with appropriate interventions

Student data reports

Intervention classroom rosters

Intervention lesson plans

Differentiated Instruction

July 1, 2012 -

August 31, 2013

Teachers


Assessment Department

Curriculum and Instruction Department

Campus Administrators

GOF

State Compensatory Education FTE's $13,677,416

Student Success Initiative $122,494

Analyze data to identify and address discrepancies to narrow achievement gaps

Action plans for targeted groups

RTI Intervention Plans

PGP

Reduction in achievement gaps

July 1, 2012 -

August 31, 2013

Teachers Instructional Coaches Assessment Department Curriculum and Instruction Department Campus Administrators Academic Achievement Specialists

State Compensatory Education FTE's $13,677,416


ASSESSMENT: Evaluate and review programs to ensure effectiveness

Develop district criteria for assessing the effectiveness of district programs and interventions

Formal and informal program reports Summary reports Walk-throughs Student data Anecdotal dataHanover Research

July 1, 2012 -

August 31, 2013


Principals


GOF


Conduct program reviews through external and internal processes including improvement efforts in DIP and CIP

Formal and informal program reports Summary reports Walk-throughs Student data Anecdotal data DIP and CIP

July 1, 2012 -

August 31, 2013


Principals


Title II

Student Success Initiative$13,010

PROFESSIONAL LEARNING:Provide professional learning opportunities focused on job-embedded experiences, student learning, and alignment to district and campus needs assessments

Train campus-based Instructional Coaches to provide job-embedded professional learning (IC meets with teachers during the school day) with follow-up in order to sustain and support initiatives

Trainings for and led by Instructional Coaches

July 1, 2012 -

August 31, 2013

Curriculum Coordinators

Directors of Curriculum

Executive Directors for Curriculum and Instruction

Chief Academic Officer

Utilize various delivery models (face-to-face, webinar, blended, etc.) for professional learning including sessions that assist teachers and paraprofessionals to attain proper certifications and highly qualified requirements

Various training sessions

Increase in highly qualified percentages

Sign-in sheets

July 1, 2012 -

August 31, 2013



GOF

Title I $938.00

Title II


Develop and provide professional learning opportunities and resources for campus administrators/teachers that focuses on curriculum, instruction, assessment, professional learning, and programmatic aspects (Dyslexia, LOTE, Fine Arts, CTE, SPED, ELLs, Dual Language, GT Programs, RTI, 504, etc.)

Training sessions including:

Principal Collaboratives

Leadership Team

AP Toolbox, etc.

Job-alikes

Sign-in sheets

July 1, 2012 -

August 31, 2013

Office of Professional Learning Instructional Technology Department Curriculum & Instruction Department Instructional Coaches Campus AdministratorsAssistant Superintendent for Administration, Governance, and Legal Affairs

GOF

Title II

Title III-LEPElem. $23,500Sec. $10,300

Title III-Immigrant Elem. $26,450 Sec. $12,800


Provide and support professional learning experiences that incorporate research-based strategies and best practices to include differentiated instruction and other district instructional initiatives such as GLAD, SIOP, CRISS, At-risk, SPED, ELLs, GT,etc.

Training sessions including:

DI modules

Sign-in sheets

Eduphoria

July 1, 2012 -

August 31, 2013

Office of Professional Learning



Campus Administrators

GOF

Title III-LEP Elem. $23,500 Sec. $10,300

Title III-Immigrant Elem. $26,450 Sec. $12,800


Develop and implement professional learning opportunities that support all aspects of leadership development to meet the learning challenges for each student as measured by improved student achievement

T & L Division Meetings

AP Toolbox sessions

Principal Collaboratives

Leadership Team Meetings

Summer Administrative Conference

Conference Attendance Documentation

July 1, 2012 -

August 31, 2013


GOF

Title I $143,264

Title II


Provide professional learning for LOTE teachers with a focus on developing communicative proficiency

Sign-in sheets Ongoing Director of Other Languages

LOTE Curriculum Specialist

GOF

SUPPORT SERVICES:Develop, implement and enhance a standard continuum of instructional support services that are responsive to the individual needs of students

Expand online learning opportunities and technology enhancements for all students to extend instruction into the home and community

Course catalog

KSAT offerings

Course enrollment

Student rosters

July 1, 2012 -

August 31, 2013



Instructional Technology

Title III LEP/Immigrant


State Compensatory Education $15,252


Support campuses in addressing the behavioral, social, and emotional needs of students

Support CHAMPS program for campus PASS teachers, elementary AB teachers and district behavior specialists

Decrease in number of student discipline placements

Special Education Performance-Based Monitoring Analysis System (PBMAS): Discipline indicators are "0"

Behavior Intervention Plans (504)

Executive Director of Special EducationDirector of Special Education Programs Director of Counseling and Psychological Services District Behavior SpecialistsAssistant Superintendent for Administration, Governance, and Legal Affairs

Special Education IDEA Funds $7500

Provide trainings for District counselors and psychologists that will include training to increase knowledge of behavioral, emotional, and social development of all students

Meeting agendas

Meeting registration

Director of Counseling and Psychological Services District Lead Counselors Community Service Providers Licensed Specialists in School Psychology Coordinator for Counseling & Psychological Services

Guidance and Counseling Funds

Psychological Services Funds

$9300 (special project funds)

Provide campus level training by counselors and LSSPS on addressing the emotional, behavioral, and social needs of students

Training agendas and handouts Decrease in number of student discipline placements PBMAS discipline indicators are "0"

Director of Counseling & Psychological Services District LSSPs Campus Counselors

Special Education IDEA Funds GOF Funds

Provide in-class guidance lessons to address student emotional and social needs

Guidance and counseling curriculum Campus Counselors GOF Funds Guidance and Counseling Funds

Expand and enhance career and technology programs district-wide to support student academic and career success

Secondary Course Catalog TrainingPurchase ordersSign-in sheets

July 1, 2012 -

August 31, 2013

Director of CTE GOF

Perkins Grant

Expand opportunities for CTE students to acquire training that leads to certifications enabling them to graduate with the skills needed for immediate employment

Revise and expand a variety of instructional options that include training and certifications so that students graduate with the skills needed for employment

Training schedule Certifications Internships Externships

CTE Staff CTE Budget

Carl Perkins Grant


Enhance career and education planning opportunities for students through career interest inventories

Student KUDER records

ACT data

Calendar of events

Counseling & CTE professional learning

College Ed

August 2012-

May 2013

Director of Counseling and Psychological ServicesDirector of CTEExecutive Director of Curriculum and InstructionSecondary CounselorsSecondary Administrators

GOFPerkins Grant

Design and implement appropriate, supplemental services/interventions to address identified students' needs, including Gifted and Talented, At-risk, homeless/migrant, LEP, Immigrant, KOLA, Extended Day, KSAT - Summer Term, Saturday Science Academy, etc.

Grades

State assessment results

Staffing plans

Agendas

Training

Attendance Records

Increased graduation and RHSP/DAP diploma rate

Time Records

July 1, 2012 -

August 31, 2013

Curriculum & Instruction Department Campus Administrators TeachersCounselors

GOFTitle I $40,000 Student Success Initiative $145,504 State Compensatory Education 160 FTE's $13,677,416 Title III Summer School-LEPElem. $31,634Sec. $3,000Immigrant-Elem. $50,000Sec. $10,000(elementary salaries, secondary scholarships, resources, transportation)Title III Saturday Science Academy-LEPSalaries: $10,400Materials: $2,050IMM Salaries:$3,000Materials: $409.Title III Extended DayLEP:Elem. $75,000Sec. $28,200Transportation: $12,613


Provide accelerated learning for secondary newcomers

Lesson plans

Student performance gains

Master schedules

Test results

August 2012-

May 2013


Newcomer Lead Teachers

Secondary Campus Centers-Staff

Title III ImmigrantSalaries:Professional: $241,761.33Paraprofessional: $77,043.72Transportation: $49,000

Continue to implement, evaluate and improve the district’s Response to Intervention (RTI) process as a means of identifying the behavioral and academic needs of student

Student KUDER records

ACT data

Calendar of events

Counseling & CTE professional learning

July 2012-

August 2013

Coordinator of Interventions Executive Directors of Curriculum and Instruction Program Specialists Program Coordinators Campus RTI Coordinators

GOF

COMPLIANCE:Coordinate the Federal, State and local programs, mandates, and initiatives with departments and campuses to increase family, student and community engagement, program effectiveness, and student performance

Conduct parent advisory councils for various groups, including: Title I, Title III, CTE, SPED, and ELLs

Agendas

Sign-in sheets

Certificates of accomplishments

Twice a year Teaching & Learning Division

GOF

Title I $117,250

Title III

Provide parent involvement and learning opportunities to support learning in the home, such as parent conferences, district meetings, book studies, computer and language classes for parents of ELLs, and Immigrants, etc.

Title I AgendasSign-in sheetsParent involvement planPurchase order documentation Certificate of accomplishment

Title III Parent Center rosters of adult ELLs, sign-in sheets, certificate of accomplishment for computer class, DPAC (District Parent Advisory Committee)

Title IJuly 2012

-August 2013

Title III August 2012

-May 2013



GOF

Title I $117,250

Title III LEP$189,938 forAdult ESL classes

Title III LEP $7,613Immigrant $3,263 forAdult computer classes


Utilize Federal Funds to support supplementary instructional activities to provide assistance to campuses and ensure effective program implementation and academic improvement

Budget Ledgers Campus Improvement Plan Standard Application System (SAS) Personnel Records Professional Development Documentation

July 1, 2012 -

August 31, 2013


Title I Staff

Title I $767,032Title IITitle III Immigrant $90,652 LEP $58,928 GOF Parent Center $3,500CTE

Provide training as required by law or local mandates to assist teachers and other personnel in meeting the needs of ELLs. Including: LPAC Training ELPS/TELPAS Foundational (Awareness) Training for content teachers LPAC Decision-Making Training TELPAS Verifier Training Online Training for TELPAS (course completion and collaboration)

Sign-in Sheets

Teacher TELPAS Certificate

April 2013 Department of Other Languages

GOF Special Projects

Provide ESL TExES training to increase the number of teachers who are ESL certified across the district

Sign-in Sheets August 2013 Department of Other Languages


Continue to provide a centralized screening process at the ELL District Testing Center to facilitate student placement

Testing Center logs

LPAC Records

eSchoolPlus reports

August 2012 -

May 2013

Director of Other Languages

Department staff


SubsElem. $17,947Sec. $6,638

ReimbursementElem. $12,222Sec. $13,422

Ensure that all intervention programs, including those designed to meet the needs of students (at-risk, economically disadvantaged, identified ELL, dyslexic, prekindergarten, and Pregnant/Parenting) are effectively implemented, documented, and evaluated for program effectiveness to ensure compliance with local, state, and federal guidelines

Rosters

Program evaluations

Student data reports

July 1, 2012 -

August 31, 2013


Campuses

GOF Title I $216,634Federal Funds State Compensatory Education $13,677,416 160 FTE's

Title IIIStudent Success Initiative $145,504


Ensure that as a component of the district’s RTI system, Personal Graduation Plans are developed and executed as required by the state

Personal Graduation Plan documentation housed in AWARE and eSchoolPlus

July 1, 2012 -

August 31, 2013

Coordinator of Interventions Program Specialists Campus Administrators Campus RTI Coordinators Executive Directors of Curriculum & Instruction

GOFFederal Funds



Ensure that at-risk, homeless/migrant students are identified and served in accordance with State and Federal guidelines

DIPCIPsHomeless/MigrantAt-risk Student Records housed in eSchoolPEIMS records

July 1, 2012 -

August 31, 2013

Coordinator of Interventions Program Specialists Campus Administrators Campus At-risk Coordinators Executive Directors of Curriculum & InstructionCounselors

Title I $40,000



Improve academic performance of all students (At-risk, Economically Disadvantaged, identified ELL, Dyslexic, Prekindergarten, and Pregnant/Parenting)

Student performance results

Enrollment in intervention courses

Intervention class rosters

July 1, 2012 -

August 31, 2013


GOF

State Compensatory Education$13,677,416 160 FTE's


COMMUNICATION AND COLLABORATION:Establish and maintain seamless and continuous collaborative communication and feedback with all stakeholders within the school community

Conduct meetings with community members and KISD staff to improve student success/program effectiveness

AgendasSign-in SheetsCertificates of Accomplishments from KICAdvanced Placement Vertical Teams SHACParent RoundtableAssessment CommitteeEmployee RoundtableCTE AdvisoryGT Parent AdvisoryDual Language Parent MeetingsELL Parent AdvisoryElementary Curriculum and Instruction Advisory Committee

July 1, 2012 -

August 31, 2013


Title III-LEP

Title III-LEP

Parent Center & Student Program Coordinator


Engage in collaboration and shared decision-making by participating in Teaching & Learning Division Meetings, Department Meetings, Office Meetings, as well as out-of-district meetings (surrounding districts, state committees, etc.)

Agendas

Sign-in Sheets

Handouts

Presentations

July 1, 2012 -

August 31, 2013


GOF

Schedule frequent opportunities for Campus and District Administrators to collaborate on instructional and educational issues

AgendasSign-in SheetsHandoutsPresentationsAP Toolbox SessionsPrincipal CollaborativesLeadership Team Meetings

July 1, 2012 -

August 31, 2013

Teaching & Learning Division; Campus Administrators

GOF

SCHOOL HEALTH: Develop plans that provide for coordinated school health

Establish a local school health advisory to assist the district in ensuring that local community values are reflected in the district's health education instruction

Agendas Sign-in Sheets for required meetings School Board Annual Presentation

July 1, 2012 -

August 31, 2013

Coordinator of Health PE and OLCExecutive Directors of Curriculum & Instruction

GOF

Provide training for administrative and instructional staff to ensure consistent implementation of district and campus coordinated school health initiatives

Training

Campus CATCH and Fitness Nights/Showcases

July 1, 2012 -

August 31, 2013


GOF

Coordinate a campus health advisory team to develop and support coordinated school health goals and objectives

Healthy snacks and lunches at schools July 1, 2012 -

August 31, 2013


GOF



Learn the details of the new state accountability system and provide informational training for district and campus personnel

Attend Accountability update meetings at Region IV to stay updated as the new system is developed

Create updated presentations for district leaders

When the new system is finalized, prepare trainings for a variety of groups, such as: district departments, principals, assistant and associate principals, instructional coaches, counselors

District and campus personnel will be trained on the new accountability system

Ongoing

Update meetings held periodically

throughout the school year

Trainings for final system to be completed

April/May

Accountability and Data Team: Coordinator and Specialist

Assessment Coordinator

Department of School Improvement and Student Support


Develop district reports to display state assessment data to help district and campus personnel make instructional decisions for continuous improvement

Stay updated on methods of reporting state assessment data for instructional decision-making

Communicate with stakeholders (campus and district) to determine data needs

Reports will exist for campuses and for the district that display state assessment results for the 2012-13 school year in a way that mirrors the new state accountability system

Ongoing

May/June, 2013, reports should exist that display Spring 2013

state assessment

results in a way that mirrors the

new state accountability

system

June/July 2013, more-specific reports will exist that

further display state

assessment data in a way that

mirrors the new state

accountability system

Accountability and Data Team

Work with district and campus personnel in understanding and analyzing assessment data

Attend meetings at the district level to communicate this service

Work with district departments on their various specific data-driven needs

Collaborate with campuses and ICs to have conversations about data-driven instructional decision making

Increased sophistication of conversations at all levels regarding data and instructional decisions

Ongoing Accountability and Data Team


Provide training for district and campus personnel in Eduphoria Aware

"As needed" training provided to all personnel

Communicate this service through digital media, including quick tips and how-tos

Increased knowledge of Eduphoria Aware as a tool for guiding for data-driven decisions

Eduphoria Training Rosters

Ongoing Coordinator of Accountability

Specialist for Accountability

Minimize state testing procedural incidents

Provide consistent and focused training sessions

Utilize state created web-based modules

Implement a test version check list for diagnosticians-include dates

Campuses correctly following procedures without compromising their autonomyCampuses understanding that by following procedures, Katy ISD will have more valid and reliable testing dataFewer testing incidents

August 2012 -

July 2013

Coordinator of State Assessment

Specialists for State Assessment

Increase data integrity on answer documents for state assessments

Conduct answer document coding training for campus testing coordinators for each state assessment administration

Valid and reliable testing information database for all KISD students due to diligence in coding

August 2012 -

July 2013



Create database for tracking assessment related activitiesIncident reportsTEA inquiryPearson inquiryScore code change requestsRescore requests

Work with KISD personnel to develop customized solutions

Develop question and answer document

Database/History

Record keeping

Maintain material ordering database

August 2012 -

July 2013



Increase communication to campus personnel about implementation of EOC assessments, standards, and regulations

Train all ESC departments

Train/support campus administrative teams to train campus staff

Communicate state changes using Principal Communications

Create a unified voice regarding state testing and graduation requirements

Increase the knowledge base of secondary employees to provide accurate information to stakeholders (students, parents, community)

August 2012 -

July 2013





Increase the number of high school graduates (and thereby LEP graduation and Completion Rates) as well as reduce the number of dropouts by accurate identification of individual and collective student needs

Personalize communication efforts with students, parents and staff in order to facilitate interventions and student re-engagement and success

Increase RHSP/DAP diploma rate for Title I students

Offer student services and support in an effort to provide ongoing dropout prevention, intervention and recovery strategies via: multi-faceted, personalized, and documented approaches/advocacy utilizing Student Data such as: grade level status/number of credits, reclassification/retention, dropout/leaver rosters, TAKS history, age, absenteeism, discipline, official At Risk identification, as well as staff, parent and/or student self referral

District and campus completion rates

District and campus dropout rates

Testing data

Daily email documentation of student served and services provided

2009 Designation by TEA of Best Practices

Student contact documentation

PBMAS Data

School Start Window

Daily

Monthly

Yearly

Dropout Prevention and Recovery Specialists and Facilitators

Appropriate District staff

Title I

GOF

Title I $40,000

Utilize Dropout Prevention and Recovery Facilitators (3) to provide staff to student support in identifying and addressing the needs of struggling students in order to assist their respective (MCHS, MRHS, KHS) campus in helping remove obstacles to student success


Email documentation of support services



School Start Window

Daily

Monthly

Yearly



Strive to create student connections which will serve to encourage, mentor and monitor high school students to successfully remain in school, return to school


Email documentation of support services



School Start Window

Daily

Monthly

Yearly




True North Focus: Safe and Orderly Working and Learning Environment


Provide articulated plan to address prevention, intervention, and postvention as it relates to suicide as mandated by HB 1386

Research plans provided by TEA in accordance with HB 1386

Written plan addressing strategy for providing training on suicide prevention to staff, parents, and students

Completion on or before

January 2013

Director of Counseling and Psychological services Coordinator of Counseling and Psychological Services

Department budget

Provide training to staff at campuses and facilities as requested

Revamp mandatory training on "Students in Distress"

Examine existing programs to determine an appropriate training program for staff per TEA suggested programs

Provide scripted training for counselors and LSSPs to use at their campuses

New product available for Mandatory Trainings in Fall 2013

Scripted training presented at campuses

Evaluation after presentation

July 2013

Spring 2013

Spring 2013

Director of Counseling and Psychological services Coordinator of Counseling and Psychological Services District Lead LSSPs District Lead Counselors

Department budget

Provide suicide prevention training for parents

Examine existing programs to determine an appropriate training program for parents per TEA suggested programs

Provide scripted training for use by counseling and LSSPs to provide training to parents

Acquired program presented to district committee for approval

June 2013 Director of Counseling and Psychological services Coordinator of Counseling and Psychological Services District Lead LSSPs District Lead Counselors

Department budget

Coordinate with other departments and groups providing suicide curriculum to students

Examine existing programs to determine an appropriate training program for students per TEA suggested programs

Research curriculum options with guidance from curriculum department

Acquired program presented to district committee for approval

June 2013 Director of Counseling and Psychological services Coordinator of Counseling and Psychological Services District Lead LSSPs District Lead Counselors School Health Advisory Council (SHAC)Secondary Curriculum Department

Department budget


True North Focus: Student Growth and Success, Safe and Orderly Working and Learning Environment


Create a caring climate throughout KISD for students and adults

Develop and implement a messaging campaign

Incorporate student ideas into initiatives via Caring Conversations, Student Leadership Groups etc.

Provide guidance activities on campuses

Provide interventions for targets, persons who bully, and bystanders on campuses per HB 1942

Solicit ideas from adult groups such as booster clubs, PTA/PTO, KIC etc. regarding increased awareness of and minimizing adult bullying

Decreased reports of bullying behavior on campuses Lists of ideas (data) from various groups for campaign Documentation/schedules of guidance lessons Documentation of activities throughout the year related to character ed lessons, anti-bullying, etc. Presence of and involvement of students in groups such as Rachel's Challenge, No Place for Hate, Not in My School, Teaching Tolerance activities etc.

Anti-bullying Executive Committee Counselors Principals LSSPs All KISD staff

GOF

Increase parent, student, staff and community awareness of anti-bullying initiatives

Share information on websites and at district meetings such as KIC, roundtables, PTO/PTA etc.

Provide presentations, trainings and resources for the campus, district and community to more effectively and efficiently address identified student safety areas, inclusive of other areas and as situations arise

Collaborate with OBHT internal and external resources related to these areas

Sign-in sheets

Websites

Anti-bullying week activities documented on campuses

Director of Counseling and Psychological Services



GOF


Adhere to federal and state requirements related to bullying and harassment

Transfer policy

Investigation protocol

Provide appropriate interventions

Train key administrators in how to conduct effective investigations

District transfers Documentation of investigation on KISD forms Notes from intervention contactsSign-in sheets

Eduphoria training rosters

Campus administrators Area Assistant Superintendents Asst. Superintendent for Governance and Legal Affairs Counselors/LSSPs/Student Support Specialist

GOF

True North Focus: Student Growth and Success, Safe and Orderly Working and Learning Environment, Organizational Improvement


Increase parent, student, staff, and community awareness and information availability of KISD safe schools initiatives focusing on intervention, prevention, and enforcement of the following:

Violence Prevention/Intervention Dating Violence Bullying/Cyber bullying Gang Harassment Suicide Abuse Danger of drug, alcohol, tobacco use/sexual abuse Prescription drug abuse Communication/Awareness/Support Improved parent/child communication Parent education on issues Conflict Resolution Student support through individual/ small group counseling

Provide presentations, trainings and resources to the campus, district, and community to more effectively and efficiently address identified student safety areas, inclusive of other areas and as situations arise

Collaborate with both internal and external resources related to these areas

District and campus calendar of events related to student, staff, parent, and community presentations

Sign-In Sheets

Quarterly (or as

scheduled) collaborative meetings with

responsible staff as

appropriate

KISD Police Liaisons Region IV Community Professionals LSSP/ Student Support Specialist District School Health Advisory Council (SHAC) Coordinator Campus Counselors Principals Executive Director for Campus Administrative Support Director of Counseling and Psychological Services Resource Speakers (Anti-Defamation League) District School Safety Liaison (SSL) Coordinator of Counseling and Psychological Services

GOF

Train Registrars and ADAs on Katy ISD policies and procedures for enrollment records communication (i.e. transcripts sent to colleges), credit evaluation and interpretation, and attendance procedures

Monitor campus procedures through campus visits

Adherence to KISD policies and procedures

Confirmation of campus supervisor and administrator

Coordinator for Counseling and Psychological Services

PEIMS

Technology



Increase understanding of revised expectations and requirements for high school graduation

Counselors continue to communicate revised graduation requirements to incoming freshmen

High school counselors will train junior high counselors, parents, students, and administrators on revised requirements

Training plan

Publication for students and parents

Course Catalog

Ongoing Director of Counseling & Psychological Services Coordinator for Counseling & Psychological Services Principals Counselors

Actively support consistent inclusion of drug awareness and healthy lifestyle behaviors that instructionally engage students through an articulated, aligned curriculum for K-8 and various related high school courses

Provide information and presentations to campuses that support use of KISD safe schools objectives, inclusive of the topics of bullying prevention, gang intervention, tobacco, drug, and alcohol abuse, and the use of SafetyNet program

Make group lessons available online in support of addressing issues on an individual and group basis

Objectives in Curriculum Management System

Reference in CIPs

Data collected related to SafetyNet

Dates published through DL

Sign-In sheets

Copies of advertisements

Lists of presentations

Executive Director for Campus Administrative Support


Curriculum Coordinators

Counselors

Teachers of related subjects and courses

GOF

Explore and develop other related/independent supporting components to address healthy lifestyle behaviors, such as:

Core EssentialsSecond StepDevelopmental Assets

Timeline

Progress Checks

Parent Website


Counselors

GOF

True North Focus: Student Growth and Success, Safe and Orderly Working and Learning Environment, Organizational Improvement


Utilize Curriculum Frameworks based on Beliefs, Guiding Principles and Instructional Practices beginning with the four core areas (math, science, language arts, and social studies) to enhance strategic and systematic decision-making

Analyze participation and passing rates of students with disabilities to improve interventions andprovide supplementary aides and supports to decrease participation rates in alternative assessments (STAAR-M, STAAR-Alt) and increase participation in general assessments (STAAR)

Special Education Performance-Based Monitoring Analysis System (PBMAS) Indicators 3, 4 State Performance Plan 3A, 3B, 3C

July 2012 -

June 2013

Executive Director of Special EducationDirector of Special Education-Compliance and AssessmentDirector of Special Education-ProgramsInstructional Officers

All students receiving interventions will demonstrate a minimum increase of 5% on their STAAR mathematics scale score

Develop a Student Learning Plan for identified students

Individual Education Plan (IEP) August 2012 -

July 2013

Executive Director of Special EducationDirector of Special Education-ProgramsInstructional Officers

Special education students will receive reading interventions leading to increased placement of students in the least restrictive environment (LRE)

Monitor and evaluate accelerated learning outcomes and programming for students with disabilities to improve reading skills

Read 180, I-Station data, Fast Forward Data, Reduction of students in reading resource placement, Increase in STAAR participation, Special Education Performance-Based Monitoring Analysis (PBMAS): Indicators 1, 2

August 2012 -

July 2013

Executive Director of Special EducationDirector of Special Education-ProgramsInstructional Officers for Elementary and Secondary Special Education

Provide specific, coordinated training for general and special education teachers to address identified areas of need as related to standards-based goals and objectives and appropriate accommodations

Training agendas

Registration

August 2012 -

July 2013

Executive Director of Special EducationDirector of Special Education-ProgramsInstructional Officers for Elementary and Secondary Special EducationProgram Specialists

Department of Special Education


Begin transition services no later than the first IEP to be in effect when the child turns 14, or younger if appropriate by the IEP team, and updated annually, thereafter the IEP must include:

Appropriate and measurable postsecondary goals based upon age appropriate transition assessment related to training, education, employment and where appropriate, independent living skills

The transition services (including course of study) need to assist the child in reaching those goals

Integrate transition activities in Individual Education Programs that lead to four-year completion rates for students with disabilities. Continue to provide training and technical assistance for secondary diagnostic specialists and team leaders regarding transition services

State Performance Plan: Indicator 13

Special Education Performance-Based Monitoring and Analysis System (PBMAS) Indicator 10, 11

Training

Sign-In Sheets

August 2012-July 2013

Executive Director of Special EducationDirector of Special Education-ProgramsDirector of Special Education-ComplianceInstructional Officer Speech/Related Services, Instructional Officer Secondary Special EducationLead Diagnosticians

IDEA-B Funds

Develop Individual Education Programs that a) include appropriate measurable postsecondary goals and b) are annually updated based on age-appropriate transition assessments/transition services including course of study that will reasonably enable the students to meet their post-secondary goals and annual IEP goals related to students' transition service needs

State Performance Plan: Indicator 13 August 2012-July 2013

Executive Director of Special EducationDirector of Special Education-ProgramsDirector of Special Education-ComplianceInstructional OfficerLead Diagnosticians

IDEA-B Funds

Develop behavior strategy training to campus personnel

Continue providing CHAMPS, Love and Logic and CPI

Training agendas

Registration

Eduphoria

Performance-Based Monitoring and Analysis System (PBMAS) Indicators 16, 17, 18

August 2012-July 2013

Director of Special Education-ProgramsDirector of Counseling and Psychological ServicesBehavior SpecialistsLSSPsCounselors

IDEA-B Funds, GOF


Conduct training with Special Education teachers on development of standards-based Individualized Education Programs

Provide training for interpreters for ARD meetings to assist in parents' understanding special education program development and processes

Aligned IEPs to Curriculum Management System

Students success on state assessments (STAAR; STAAR-M; STAAR Alt)

State Performance Plan Indicator 8

August 2012-

July 2013

Executive Director of Special Education, Special Education Director-Programs, Instructional Officers, Special Education Teachers

IDEA-B Funds

Improve evaluation processes to address needs of students with various cultures, socioeconomic statuses, linguistic skills and backgrounds

Provide assessment practices and processes to assist in the appropriate selection of culturally and linguistically competent test instruments to provide diagnostic recommendations reflecting understanding and sensitivity to cultural and language diversity factors

Provide training for interpreters to assist in assessment processes and to improve parent participation in the ARDdecision-making process

Disproportionality report PBMAS: Indicators 13, 14, 15

State Performance PlanIndicators 9, 10

July 2012-

May 2013

Executive Director of Special Education

Director of Special Education- Compliance

Instructional Officers for Special Education Programs

IDEA-B Funds

Complete Full and Individual Evaluation within the 90 day timeline as required under TEC 29.004(a) Special Education

Continue monitoring procedures to identify and address missed timelines

Review and modify arena assessment evaluations procedures to address compliance with mandated timelines

Initial timeline logs

Missed Timeline Justification Form


July 2012-

June 2013

Executive Director for Special Education, Director for Special Education, Instructional Officer for Speech Language & Other Related Services, Appraisal Specialist and Lead Diagnostician

Monitor timeline process with evaluation teams in the special education department

Develop program to assist district and campus personnel to track and monitor compliance with timelines

Initial timeline logs


July 2012-

June 2013

Director of Special Education-Compliance; Director of Counseling and Psychological Services, Instructional Officer for Speech Language & Related Services, LSSPs, Appraisal Specialists, Lead Diagnosticians


Monitor bilingual assessment procedures to decrease missed bilingual evaluations

Continue training for new assessment personnel in bilingual evaluation procedures

Training agendasSign-in SheetsProcedures for Evaluation of Bilingual StudentsInitial Time LogsMissed Timeline Justification FormState Performance Plan: Indicator 11

July 2012-

June 2013

Director for Special Education ComplianceDirector of Counseling and Psychological ServicesInstructional Officer for Speech/Language & Related ServicesAppraisal SpecialistLead Diagnosticians

Ensure children who are referred by Early Childhood Intervention (ECI) prior to age 3 and who are found eligible for Part B Preschool Program for Children with Disabilities (PPCD) services have IEPs developed and implemented by their 3rd birthdays

Make services available for eligible children on their 3rd birthday

Continue reviewing/revising procedures to facilitate implementation of services for those students not previously served by ECI and those children that have been served by ECI

Continue to provide training and technical assistance to appropriate new personnel concerning the referral process and evaluation timeline for the student group

Procedures for Evaluations of PPCD studentsInitial Timeline LogsMissed Timeline Justification FormTraining AgendasSign-In SheetsProcedures for Evaluation of Bilingual StudentsState Performance Plan: Indicators 11, 12

July 2012-

June 2013

Director for Special Education ComplianceInstructional Officer for Speech/Language & Related ServicesProgram Tyke Program SupervisorInstructional Officer for Elementary Education

IDEA-B Funds

True North Focus: Safe and Orderly Working and Learning Environment, Community Engagement, Organizational Improvement


Collaborate with community stakeholders and parents to improve services to students

Advisory committees will be established to share information and receive input on programs and services

Special Education Advisory Committee

Special Education Autism Advisory Committee

Special Education Advocacy Group Advisory Committee

Katy Improvement Council (KIC)

August 2012-

August 2013



Departmental Budgets

GOF


True North Focus: Student Growth and Success, Organizational Improvement


Improve, sustain, and support academic student performance for students with disabilities

Involve all special education teachers in curriculum training in their assigned content areas

Training descriptors

Training agendas

Training registration

August 2012-

July 2013

Director for Special Education-ProgramsSpecial Education Department PersonnelCurriculum Specialists

Special Education IDEA Funds, GOF

Provide technical assistance and training for teachers in developing Individual Education Plans (IEPs) that are aligned with each student's enrolled grade level curriculum

100% of students' IEPs reflect appropriate access to enrolled grade level curriculum

August 2012-

July 2013


IDEA-B Funds, GOF

Provide technical assistance and training to general education teachers to ensure the appropriate alignment of instruction to the students IEP

IEP progress reports

Grades

PBMAS/AEIS

August 2012-

July 2013


IDEA-B Funds, GOF

Utilize teacher competencies to provide training and technical assistance for the different special education programs that will ensure the quality instruction and eliminate variance across the districtReview and, if needed, revise teacher competencies to address current practices

Teacher competencies

Checklist for special education programs

August 2012-

July 2013


IDEA-B Funds, GOF

Provide professional learning opportunities for district and campus personnel to provide quality services and improve student performance

Provide training to administrators, general and special education teachers on research-based instructional practices and differentiated instructional strategies within Standards-Based Individual Education Programs (IEPs)

Training registration

Training evaluations

Student performance on statewide assessments

August 2012-

June 2013

Executive Director of Special EducationDirector of Special Education-ProgramsInstructional Officers of Elementary and Secondary Programs

IDEA Funds



Provide training for paraprofessionals on in-class support skills and instructional strategies

Training Registrations

Training Agendas

Training Evaluations

August 2012-

July 2013

Executive Director of Special EducationDirector of Special Education-ProgramsInstructional Officers of Elementary and Secondary Programs

IDEA Funds

Continue to provide trainings to teachers and paraprofessionals on providing services to low incidence students with disabilities (autism, LIFE skills, medically fragile, Visually Impaired, Auditorially Impaired, Adapted PE, Etc.)

Training Registrations

Training Agendas

Training Evaluations

August 2012-June 2013

Executive Director of Special Education, Director of Special Education-ProgramsInstructional Officers of Elementary and Secondary ProgramsInstructional Officer for AutismInstructional Officer for Auditory and Visually Impaired Students

IDEA Funds

Provide trainings to Speech Pathologists and Diagnostic Specialists on aligning assessment with instruction

Provide training and resources needed to enable designated 504 Coordinators to fulfill their campus responsibilities

Training RegistrationsTraining AgendasTraining EvaluationsSign-in sheetsHandbook for 504 CoordinatorsFormsJob-alikesEduphoria Rosters

August 2012-

June 2013

Executive Director for Special EducationDirector for Special Education-ComplianceInstructional Officer for Speech/Related ServicesAssistant Superintendent for Administration, Governance, and Legal Affairs

Provide quality training to district and campus personnel on special education legal and compliance issues to prevent special education complaints and due process hearings

Provide an Administrative Leadership training series on special education legal and compliance issues

Training descriptors and agendas

Training registrations

Number of complaints and due process hearings

August 2012-

June 2013


Director of Special Education-Compliance

IDEA Funds

Address special education compliance and legal issues presented by campus personnel

Meeting agendas

Meeting handouts

Number of complaints and due process hearings and participant evaluations

August 2012-

June 2013


Director of Special Education-Compliance

IDEA Funds

GOF

True North Focus: Student Growth and Success, Safe and Orderly Working and Learning Environment, Organizational Improvement, Effective and Efficient Operations

Objectives Strategies Evidence of Accomplishment Timeline Person(s) Responsible Budget/Funds Source (EST.)Performance of all demographic student groups will be at or above Federal and State accountability targets

Develop and provide professional learning opportunities and resources for campus administrators/teachers focused on content and strategy specific instruction incorporating the use of technology and manipulatives such as SMART Boards

Calendar of Events

Attendance Roster

Agendas

July 2012-

August 2013

Executive Director for Curriculum and InstructionCurriculum CoordinatorsEducational Technology SpecialistsInstructional Technology Coordinators

GOF

Performance will continue to improve for all student groups on TAKS/STAAR Science

Develop and provide professional learning and resources for campus administrators and teachers focused on content and strategy-specific instruction incorporating the use of technology and best practices

Agenda

Training materials

Calendar of events

Recommended trainings

August 2012-

May 2013

Instructional Technology Coordinators Curriculum Coordinators Elementary Campus Lead Teachers Program Facilitators

Increase high school graduation and completion rates (including RHSP/DAP graduation rates) by focusing efforts to reduce the dropout rate through identifying and servicing/supporting individual student needs

Make individual student contacts to encourage and support identified, secondary at-risk students to attend/remain and/or return to complete high school by:identifying barriers creating alternative learning environments that are engaging and supportive through such approaches as:

Project-based Learning at RHS

Katy On-Line Learning Academy (KOLA) Options

Katy Summer Academic Term (KSAT)

Pregnancy Education Program (PEP)

Community Education Options

Contact logsAssigned mentorsRHSGroup/individual counselingPEPGuidance lessonsKOLA Lab dataGeneration Tx WeekCommunity educationExtended School-Year ServicesDropout recovery recordsDistance learningPersonal Graduation Plans

Semester review of data/

enrollment options

August 2012-

July 2013

Dropout Prevention and Recovery SpecialistsCampus Dropout Facilitators (MCHS, MRHS, KHS)CounselorsContracted ServicesPrincipal/staff of RHS and other campus principalsCommunity Education CoordinatorKOLA Administrators/TeachersPEP CoordinatorsKSAT AdministratorsExecutive Director of Special Education

GOF

High School Allotment

State Compensatory Education Funds

Division of Technology


Place a counter on the webpage to monitor the number of hits

Counter in place August 2012-

July 2013

Technology Web Developers

Continue maintenance and refinement of MUNIS System

Implement MUNIS upgrades and specific Katy ISD enhancements

Functionality improvements

Specific Katy ISD enhancements

August 2012-

August 2013

August 2012 -

August 2013

HR Staff

Technology Department

District Budget

Increase parent, student, and staff awareness and information availability of District cyber bullying and digital responsibility initiatives

Provide informational packets to students and parents obtained from the Federal Government through StaySafeOnline.org

Display informational posters on District campuses

Increase student portal resources

Grade-specific lessons provided through the campus library

Information sent home to students

Outline of grade-specific lessons taught

Posters visible on campuses

Student portal access

Ongoing Director of Instructional Technology

Director of Customer Services

Library Media Specialists

Free Resource

GOF

Increase the safety and security of District technology devices and student-owned devices that utilize the District network by preventing the access of inappropriate or harmful materials, unauthorized access such as hacking or other unlawful activities, and unauthorized disclosure of personally identifiable information of minors

Continue to provide a firewall and internet filtering to ensure safety while accessing educational online resources

Reports generated of blocked websites and firewall configuration

Ongoing Director of Operations GOF

True North Focus: Community Engagement


Maintain and review annually the district-wide process and procedures for identifying LEP students

Provide PEIMS training to ADA clerks, registrars and ESOL/bilingual teachers to ensure accurate coding of LEP students

Agendas

Sign-in sheets

October 2012-

April 2013

Director of Other Languages

Parent Center and Student Program Coordinator

ESOL/Bilingual Student Data Analysts

Investigate, recommend and implement more efficient and cost effective means of meeting identified technology needs

Retrofit District computers in accordance with the industry standard 5-year retrofit cycle

Retrofits at eleven campuses August 2012-

July 2013

Chief Information Officer Year one portion of $11,325,000/$269,000,000 Bond

Retrofit District servers in accordance with the industry standard 4-year lifecycle

Improved system and performance reliability

August 2012-

July 2013

Director of Technology Operations

Year one portion of $1,500,000/$269,000,000 Bond

Improve local campus cabling to provide additional connectivity

Each campus cable plant adheres to the new District standard

August 2012-

July 2013

Director of Technology Operations

Year one portion of $2,517,000/$269,000,000 Bond

Enhance technology equipment to support campus-based curriculum

Install new equipment August 2012-July 2013

Chief Information Officer Portion of $3,000,000/$269,472,225 Bond

Provide campuses and teachers with multiple methods for communicating with parents

Review campus websites, automated call system and other electronic forms of communication

Provide parents access to online grades

Investigate additional features to enhance communication between the district and parents

Website functionality improvements

Systems and/or websites that are able to email or provide information to parents

Parent Information Center enhancements

August 2012-

July 2013

Director of Application Development

Implement new Student Management/Information System

Utilization of new SIS begins system-wide in 2012-2013

August 2012 -

July 2013

Enterprise Applications Sr. Project Manager

Division of Technology


Continue review of new financial system implementation

Adjustments made as needed per review August 2012-

July 2013


Maintain a scheduling management system to schedule, reserve, and maintain all KISD facilities

Continued review of contractually approved operational online application accessible for reservations and planning.

August 2012-

July 2013

Chief Information Officer


Continue development and implementation of new features and functionality for Campus Improvement Plans

CIP needs assessment August 2012-

July 2013

Director of Application Development

Review all requests for functionality changes as well as new enhancements with the Campus Support Analyst vendors, and Katy ISD management

New reporting features as requested August 2012-

July 2013

Enterprise Applications

Provide KISD staff with continued training on productivity skills and provide opportunities for MS Office Certifications

Monthly training reports

Logs of certifications obtained

August 2012-

July 2013

Director of Application Production and Support

Provide business process reengineering to address new requirements associated with automated systems and TEA policy changes (PEIMS)

Help to define new practices and policies for KISD staff to accommodate new regulations

Meetings with PEIMS team to assist with support questions

August 2012-

July 2013

Director of Application Production and Support

Investigate, recommend and implement improved district data access and growing functionality needs

Review and define scope for revised graduation planning system

Approval from stakeholder departments August 2012-

July 2013

Director of Application Production Support

Curriculum Management Team

Manager, Student Management Systems


Provide the technology needed to enhance campus safety and security

Maintain Raptor system at each campus Improved security and awareness

Logged time of people entering the building

August 2012-

July 2013

Chief Information Officer Portion of $147,000/$269,472,225 Bond

Implement and maintain the district standard closed-circuit TV system at needed campuses

Closed-circuit TV system at campuses August 2012-

July 2013

Chief Information Officer Portion of $6,572,000/$269,472,225 Bond

Provide District with total printing solutions including convenience copiers, print-on-demand and copy center services

Improve communications and provide training on order submission, turn-around time schedule and district timelines

Adherence to timelines August 2012-

July 2013

Director of Technology

Customer Services

Introduce the new Online Catalog in Digital StoreFront

Online catalog in operation August 2012-

July 2013


Customer Services

Reduce the amount of bulk printing produced at the Print Shop during the summer months by allowing campus personnel to select frequently produced forms and documents from the Digital StoreFront catalog and order supply on an as-needed basis

Reduction of bulk printing August 2012-

July 2013


Customer Services

True North Focus: Effective and Efficient Operations


Recruit, support, develop and retain highly qualified employees for all areas of the organization

Conduct Katy ISD Teacher Fair and Spring 2013 Katy ISD Transfer Fair

Out-of-District Recruiting - select recruiting sites based upon historical data of applicants interviewed and employed

Conduct Transportation and Food Service Job Fairs

Modified structure for Teacher Fair

Hold second District Transfer Fair to assist with new school opening

Scheduled recruiting trips

Hold trainings

Increased percentage of Highly Qualified teachers

Increased percentage of classes taught by the highly qualified teachers

Spring 2012 and

Spring 2013

HR Staff Assistant Superintendent for Human Resources

Department

Title II $6,000

Review and update portraits of success for students, teachers, administrators, and support staff

Collaborate with the various departments

As principal positions become vacant - receive input from campus to develop principal portrait

Meetings with Area Assistant Superintendents, Teaching & Learning staff members, as appropriate

Increased percentage of Title I classes taught by highly qualified teachers

Spring 2012

Ongoing

Assistant Superintendent for Human Resources


Teaching & Learning

HR Staff

Develop and maintain a staffing plan that utilizes data-driven decision-making to balance available budgetary resources with best practices and district needs

Review staffing ratios and guidelines for campus staffing

Create a task force

Hold annual meetings with campus Principals

Preview staffing plans/ratios

Assistant Superintendent for Human Resources HR Staff


Teaching & Learning

Department Heads

Department of Human Resources


Facilitate an effective process for identifying and training substitutes to ensure that campus and departmental needs are met

Conduct more Substitute Blitzes and trainings

Review and broaden advertisement for the need of substitutes

Review and analyze absence data by campus and district

Increased fill rate Spring 2013 -

Fall 2013

HR Staff

Use data from educational institutions and the private sector to maintain an efficient and competitive compensation plan

2013-2014 TASB Study Analysis of market value for identified benchmark positions

Recommendation of minimum and maximum pay groups and families

Analysis of recommendation of teacher salary

Analysis and recommendations for pay adjustments and cost estimates

Study approval, study begins, and implementation

Spring 2013 -

Summer 2013

Assistant Superintendent for Human Resources HR Staff

District & Departmental Budgets

True North Focus: Organizational Improvement


Implement a professional learning plan for assistant principals

Build Strong Schools Program for first year Assistant PrincipalsILD/PDAS Training for first year Assistant PrincipalsHR Boot Camp TrainingAP Toolbox Training

Completed training

Review evaluations from group

Monitor Assistant Principal completion of programs

Fall 2012, Spring 2013

Fall 2012, Spring 2013

October 2012

HR Administration &Assistant Superintendent for Human Resources

Region IV


Develop a professional development continuum for support staff

Boot Camp for auxiliary, transportation, food service, police department

Address Kronos Managers

Interview techniques

Completed trainings

Agenda

Evaluations

Spring 2013 -

Summer 2013

HR Administration

Develop a long-term plan for review and analysis of job descriptions and corresponding appraisal/evaluation instruments and processes

Summary process:2012-2013Contract review and revisionsJob description analysisClassification of positionsAppraisal/evaluation review and modification

Current job descriptions that reflect duties

Corresponding appropriate duties that evaluate essential functions of positions

Spring 2013 -

Summer 2013


HR Staff


Facilitate an efficient and effective recruiting program to employ quality teachers/administrators/other personnel needed to support district goals and programs

Conduct Katy ISD Teacher Fair and Spring 2013 Katy ISD Transfer Fair

Out-of-District Recruiting - select recruiting sites based upon historical number of applicants interviewed and employed

SHRM PHR/SPHR Certification Training for HR Administrators

Transportation, Food Service, Maintenance & Operations

In-basket activities for pre-screening activities

Modified structure for Teacher Fair

Hold second District Transfer Fair to assist with new school opening

Scheduled recruiting trips

SHRM Learning System for HR Personnel Training

Spring 2012

and

Spring 2013

HR Staff


HR Administration & Assistant Superintendent for Human Resources

Department

Department of Human Resources



Maintain State and National recognition for financial reporting, management, and accountability

Monitor and adjust financial practices for continued improvement and compliance with National and State accounting standards and guidelines

Recognition for financial excellence by ASBO International, the Government Finance Officers Association, Texas Education Agency and the Texas State Comptroller's Office

Fiscal Year 2013

Board and Superintendent

Chief Financial Officer

Finance Department

Campuses and Departments

Complete a successful transition of collecting property taxes to Fort Bend and Harris Counties

Ensure that all data collection, reporting, and communications are managed appropriately to ensure the proper reporting and recording of property tax revenues

Tax records transferred to counties, collections processed and remitted to the District and revenues and cash receipts appropriately recorded and reconciled

December 2012 Chief Financial Officer

Tax Assessor-Collector

Financial Department

Complete new Business Office Procedures Manuals to encompass new financial processes

Continue re-write of documentation to integrate new Munis finance system with District business practices

Completion of new and revised manuals including updated processes and procedures, including user friendly on-line access

February 2013 Financial Department

Utilize paperless technologies in an effort to maximize cost savings, improve customer service and protect the security of documents

Explore the utilization of electronic receipts and payment methods

Issue Requests for Qualifications and select vendors to enable the District to accept receipts through the District's website and expand the use of electronic payments

August 2013 Financial Department

Technology Department

Campuses and Departments

Implement a Chapter 313 application process

Utilize the District's financial consultants to complete and evaluate the process, including developing revenue loss protection plans, reporting requirements and tax credit payments

Chapter 313 process in place December 2012 Board and Superintendent

Chief Financial Officer

Financial Consultants

Department of Finance



Provide extracurricular programs which afford students the opportunity to experience the value of teamwork in accomplishing a common goal

Coaches practice plans

Practices

Quality reps/reteach

Review-video

Staff meetings

S/C Training

Classroom -goals and objectives

Group team building projects

Training for coaches, coaching school, clinics, books, video, HUDL, retreats

Evaluation of players and teams

Off-season testing

Detailed yearly plan

Goals and objectives

Daily

Weekly

Yearly

By Season

Fine Arts Department

Extracurricular Sponsors

CTE Department

Athletic Coaches and Coordinators

GOF

Activity/ Fundraisers

Booster Clubs

Division of Operations

True North Focus: Safe and Orderly Working and Learning Environment


Provide facilities that support and enhance instructional opportunities and effective district operations

Reach substantial completion of the construction phase for the Katy HS addition

Reach substantial completion of the construction phases for the Taylor HS addition and renovation project

Reach substantial completion of the construction for new high school #7

Complete warranty period of five new schools and two JH renovation projects

Reach substantial completion on the balance of major construction projects included in the 2010 Bond election

Successful opening

Warranty requests diminished

Projects substantially completed

Addition ready for occupancy August 2013

Substantial completion of primary work August 2013

New school ready for

occupancy August 2013

July 2013

Fall 2013

District Architect/Planner

Construction Project

Assistant Construction Project Manager

Approved Bond Funds

Reduce utility usage at District facilities Decrease in water, gas and electricity usage per sq. foot at District facilities

Improved energy audits

Summer 2013 Utility Conservation Manager, Utility Technician, campus staff, energy liaisons

GOF

Provide a single stream recycling program that is sustainable

Decrease in tipping fees for trash pick-up

Increase in rebates for campuses

Summer 2013 Recycle coordinator, District staff, students

Grant

Prepare facilities for a successful start of school

All buildings, portables and grounds ready for return of students and staff

Summer 2013 M & O Team GOF



Support after hours functions Rapid night crew response and emergency call response

On-time custodial set-up and clean-up

Grounds preparation

Summer 2013 Maintenance and Operations Team

G.O. F.

Create and maintain an environment which supports positive physical, emotional, and social well-being for students and staff

Assess school physical environment for safety and security hazards or threats

Complete and present safety and security audits to the Board of Trustees

April 2014 Emergency Management Coordinator

Assess school emotional/social climate for threats to safety and security of students and staff

Complete and present safety and security audits to the Board of Trustees

April 2014 Emergency Management CoordinatorDirector of Counseling & Psychological Services

Develop and practice an All-Hazards Emergency Plan at all facilities

Finalize the campus emergency operations plans with current year updates

Post campus emergency plans with current year updates to a secure area of the District's PIER site

January 2013 Campus Safety Liaisons and Emergency Management Coordinator

Provide professional development to all departments on annex requirements

Review draft annex with departments

Finalize the departmental annexes to the District Emergency Operations Plan

Leadership Team presentation

Draft annex

Post departmental annexes with current year updates to the secure area of the District's PIER site

November 2012

April 2013

August 2013

Departmental Safety Liaison and Emergency Management Coordinator

Finalize the update to the District Emergency Operations Plan with current year data

Post the District's Emergency Operations Plan to the secure area of the PIER site

August 2013 Emergency Management Coordinator and Safety Task Force

Update, print and distribute new emergency response guides to schools and departments

Schools have new emergency response guides

December 2012 Emergency Management Coordinator and Safety Task Force

Conduct mandatory drills and exercises as outlined in the District's Emergency Operations Plan

Records of drills and exercises filed with the Office of Emergency Management

June 2013 Emergency Management Coordinator and Safety Task Force


Establish and implement standards for large events and spectator safety

Conduct review of best practices

Involve all Principals/APs in development of standards

Conduct table top exercise using process, framework, and checklist

Pilot at Rhodes Stadium/LMC

Analyze outcomes and update standards

Checklist

Tabletop scenario

Completed checklist

Updated/revised checklist

Key job descriptions

Pre-event summary sheets

Draft standards

Fall 2012

Fall 2012

Fall 2012

Spring 2013

Winter 2012

Winter 2012

Winter 2012

Chief Operations Officer

Emergency Management Coordinator

Executive Director of Athletics

General Manager of Special Events, Reservations, and Marketing

GOF

Develop and begin implementing a comprehensive safety training program for all schools and departments

Include a training plan and schedule in the District's Emergency Operations Plan

A training plan and schedule, including training for all personnel, is included in the emergency operations plan

November 2012

Emergency Management Coordinator and Safety Task Force

Offer continuous training in the National Incident Management System

Schedule at least one NIMS class each month throughout the year

July 2013 Emergency Management Coordinator

Offer position-specific training throughout the year

Schedule at least one training class each month

July 2013 Emergency Management Coordinator

Work collaboratively with community first responders to improve safety throughout the District’s boundaries

Meet monthly with the County and City Emergency Management Groups

Monthly meeting agendas August 2013 Emergency Management CoordinatorGeneral Manager of Special Events, Reservations, and Marketing

General Fund/Current Budget

Meet at least twice each year with the fire and emergency medical services that respond to Katy ISD schools

Meeting agendas August 2013 Emergency Management Coordinator


Meet monthly with the local law enforcement agency commanders and supervisors to share information about recent incidents and future events

Meeting agendas August 2013 Administration and Operations Bureau Commanders


Review and update the Memorandum of Understanding related to each law enforcement agency that has concurrent jurisdiction with Katy ISD

Memorandums of Understanding signed by the associated chief law enforcement executive

July 2013 Administration Bureau Commander



Meet with all the newly elected or appointed executives of law enforcement agencies that have concurrent jurisdiction with Katy ISD to establish an open line of communication

Meeting schedules

Agendas

July 2013 Chief of Police General Fund/Current Budget

Provide local law enforcement and emergency services agencies access to joint training and emergency response exercises conducted by Katy ISD Police Department

Training announcements

Class rosters

August 2013 Training Coordinator General Fund/Current Budget

Offer juvenile justice agencies an opportunity to enter into a Memorandum of Understanding that will allow the District to share student records in accordance with Senate Bill 1106

Signed MOUs on file

Letters to agencies

July 2012-

August 2013



Utilize a Community Bond Review Committee to review the status of the 2010 bond referendum

Review the financial status of voter-approved bond program through periodic financial reports

Monitor the progress of voter-approved capital projects through periodic staff presentations and reports

Review and respond to any proposed changes deemed necessary

Review and respond to any projects proposed to be added or deleted from the bond project list

Meeting schedule

CBRC reports

Projects approved for addition/deletion

Ongoing Chief Operations Officer




Develop a transportation plan that makes efficient use of district resources while maintaining high levels of safety

Analyze number of drivers available or projected for the school year

Match the number of routes for the anticipated number of drivers

Analyze and respond to results

Transportation service levels determined

Routes developed and optimized

Hazardous routes identified

Request for additional resources

Summer 2012

Summer 2012

July 2012

Ongoing

Assistant SuperintendentDirector of TransportationEmergency Management CoordinatorDistrict Transportation Router

GOF

Explore the possibility of delaying the next facility referendum

Analyze project savings

Develop a bridge plan for 2014, 2015 bonds

Update superintendent to receive guidance

Financial report showing project savings

Bridge plans

Presentations, feasibility study results

Fall 2012-

Summer 2013

Spring 2013

Summer 2013

Chief Operations OfficerChief Financial OfficerDistrict Architect/Planner

Investigate options/issues associated with facility usage as a result of the planned opening of HS7

Conduct a needs assessment

Develop alternatives

Present findings

Needs assessment report

List of alternatives

Report on findings

Spring 2013

Spring 2013

Spring 2013

Chief Operations OfficerDistrict Architect/PlannerExecutive Director of AthleticsCareer and Technical Education DirectorExecutive Director of Fine Arts




Review disciplinary records for patterns of removal from classroom instruction

Monitor discipline records for overuse of in-school or out-of-school suspensions

Discipline notifications to campuses and disciplinarians

Fall 2012

Spring 2013

Assistant Superintendent for Administration, Governance and Legal Affairs

Policy/Research Specialists

Examine discipline records to identify indications of disproportionality in the assignment of in-school or out-of-school suspension involving racial or ethnic groups or students with disabilities

Discipline notifications to campuses and disciplinarians

Discipline notices

Fall 2012

Spring 2013


Policy/Research Specialists

Utilize a committee to review applications for permissive placements at the District's discipline alternative education program to make certain that campus options have been exhausted

Application forms

Committee meeting summaries

Fall 2012

Spring 2013


Principal OAC

Office of Governance and Legal Affairs

True North Focus: Safe and Orderly Working Environment


Develop and publish a Board approved Discipline Management Plan and Student Code of Conduct

Involve administrative representatives from elementary and secondary campuses in the development of a proposed Discipline Management Plan

Calendar of Events

Meeting Agendas

Board approved Discipline Management Plan online

Spring 2013 Assistant Superintendent for Administration, Governance and Legal Affairs

Present the proposed Discipline Management Plan and Student Code of Conduct to the Katy Improvement Council (KIC) for review and comment

Calendar of Events

Meeting Agendas


Present a proposed Discipline Management Plan and Student Code of Conduct to the Board for approval

Calendar of Events

Meeting Agendas

Board Minutes


Provide the training and resources necessary to prepare new campus administrators to fulfill their responsibilities for student discipline

Provide training on legal requirements and local processes and procedures pertaining to student discipline

Calendar of Events

Sign-in sheets

Agendas

August 2012 Assistant Superintendent for Administration, Governance and Legal Affairs

Develop and disseminate an electronic Hearing Officers' Guide and discipline forms

August 2012 Assistant Superintendent for Administration, Governance and Legal Affairs

Department of Governance and Legal Affairs



Expand outreach to parents and community

Increase subscriptions to Katy ISD Update

Change frequency of Katy ISD Update from every two weeks to once a week

Increase utilization of Campus eNews for district information

Continue to seek ways to leverage social media tools

A greater number of parents and community members receive communication from the district

July 2012 -

June 2013

Communications Department

Department Budget

Increase community awareness of the various functions and people of the district

Produce each month a minimum of two feature stories – one focused on Curriculum & Instruction, and one on an operational function

Find human interest stories to tell about our people (staff and students)

Look for story opportunities to pitch to greater Houston media

Integrate video to enhance stories

18-20 feature stories written during the course of the year

3-5 story pitches made to greater Houston media

Video used in feature stories

July 2012 -

June 2013


Department Budget

Establish a Community Roundtable Create a synergy with other roundtable groups and Leadership Katy

Community Roundtable meets at least twice during 2012-13

July 2012 -

June 2013


Department Budget

Department of Communications


Expand use of Social Media Promote social media to increase use by parents/community

Bring campuses into the mix

Look at creating two-way communication on social media

Research use of Web 2.0 tools and how our department can leverage them (ongoing)

District has a wider variety of social media tools that allow for increased communication

More parents community members subscribe to and utilize social media to obtain district messages

July 2012 -

June 2013


Department Budget

Focus on internal communications Increase communications from superintendent to staff and community

Enhance/leverage KatyNet

Greater number of superintendent messages sent over last year

Improvements made to KatyNet that improve communication

July 2012 -

June 2013


Department Budget

Work with Marketing on branding and trademarks

Promote awareness of KISD and state initiatives to create an informed community

Guidelines established for school logos

Guidelines and timelines established for logos when opening new schools

Design and roll out Morton Ranch HS logo and Seven Lakes HS logo

July 2012 -

June 2013


Department Budget

Raise awareness of what Katy ISD is doing to address bullying issue

Create a communications campaign aimed at raising awareness of bullying

Create an anti-bullying theme for the year

Launched website for initiative

Feature and informational stories about bullying awareness in various KISD communications and campus eNews

July 2012 -

June 2013


Department Budget

Kickoff Katy ISD Education Foundation Establish a brand image for the foundation

Launch an awareness campaign for the newly formed foundation

Created Foundation logo and branding

Launched website

Created/printed collateral materials

Set up social media for communications: Facebook, Twitter, Linked In, etc.

July 2012 -

June 2013

Director of Community Partnerships

Assistant Director of Communications

Foundation Budget

Department Budget

District Improvement Needs Assessment

2012-2013

Katy ISD Mission Statement Katy Independent School District, the leader in educational excellence, together with family and community, provides unparalleled learning experiences designed to prepare and inspire each student to live an honorable, fulfilling life...to create the future.

Katy Independent School District

Alton Frailey Superintendent

Board of Trustees Rebecca Fox, President

Joe M. Adams, Vice President Henry Dibrell, Secretary

Brian Michalsky, Treasurer Charles Griffin, Sergeant-at-Arms

Bill Proctor, Ph.D., Member Terry Huckaby, Member

Prepared by: Freda Corbell Creech, Ph.D. Kevin N. Stoerner Executive Director Director School Improvement and Student Support Research, Assessment, and Accountability Edward Cunningham Megan Evans Coordinator Specialist Accountability, Student Achievement, and Data Interpretation Accountability, Student Achievement, and Data Interpretation

TABLE OF CONTENTS

District Improvement Needs Assessment 2012 - 2013

Page

I. Purpose of Needs Assessment………………………………………………..……………………...…………..… 1

II. True North Focus for the 2012 – 2013 Performance Year ………………………………………………………… 2

III. District Summary: Student Performance ….………………………………………………………………………. 7

IV. District Needs Assessment: Student Performance A. State/Federal Accountability ....……………….…………………………..…………………...…………. 29

B. Performance-Based Monitoring Analysis System ....……………….…………………………..………… 31 V. Glossary …………………………………………………………………………………………………………… 35

1

Learning from our practices is a key component of a district improvement needs assessment. Two aspects of the district needs assessment include: reflection on accomplishments and reflection on needs. A needs assessment provides the opportunity to examine educational outcomes of students and reflect upon the alignment of district support and services. In turn, this examination leads to the establishment of performance objectives and the development of strategies and activities aligned with these objectives. This examination promotes continuous monitoring of district actions. In the end, a needs assessment can aid a district in using its resources of time, people, finances, and technology more efficiently and effectively. The needs assessment provides a framework which:

• provides districts and schools with a clear view of their strengths, areas for improvement, challenges, and successes; • enables a systematic review of practices, processes, and systems within a school district; • assists district and school leadership in determining needs, examining their nature and causes, and setting priorities for future

action; • guides the development of a meaningful district or school plan and suggest benchmarks for evaluation; and • most importantly, it is a cornerstone of continuous improvement, ensuring the best possible outcomes for all students.

The True North 2011-2012 Performance Year marked the transition from the Texas Assessment of Knowledge and Skills (TAKS), to the State of Texas Assessments of Academic Readiness (STAAR) assessment program. Both systems are based on the Texas Essential Knowledge and Skills (TEKS). Standards for all grades and subjects for STAAR have not yet been established and are scheduled for release by the Texas Education Agency in the spring of 2013. During 2012-2013, KISD will utilize historical data related to the TEKS to determine areas of focus. In continuing the transition to the State of Texas Assessments of Academic Readiness (STAAR) system from the Texas Assessment of Knowledge and Skills (TAKS), the district needs assessment focuses upon the True North areas of Student Growth and Success and Organizational Development. For 2012-2013, needs assessment revisions will include alignment to STAAR system components that are available at the time of publication. Reflection occurs in conjunction with the 2012-2013 True North Focus.

Purpose of Needs Assessment

2

Katy Independent School District True North Focus

2012-2013

I. Student Growth and Success Focus: Each student will be provided engaging, relevant, and meaningful learning experiences which foster the acquisition of the KISD

Instructional Cornerstone Skills (collaboration, communication, creative thinking, critical thinking, information literacy, problem solving and social contribution) that lead to student success.

a. Develop and deliver a rigorous and relevant curriculum using strategies designed to engage students in meaningful learning

experiences. b. Integrate the KISD Instructional Cornerstone Skills into all curriculum areas. c. Increase authentic classroom instruction by incorporating real world experiences. d. Design and implement balanced assessment systems which reflect student learning and mastery of the District’s curriculum. e. Provide professional learning opportunities focused on job-embedded experiences, student learning, and alignment to district

and campus needs assessments. f. Develop, implement, and enhance a standard continuum of instructional support services that are responsive to the needs of

individual students. g. Provide extracurricular programs which afford students the opportunity to experience the value of teamwork in accomplishing

a common goal. h. Explore and implement emerging technologies which will enhance instruction. i. Expand online learning opportunities for students in order to extend instruction into the home and community.

II. Safe and Orderly Learning and Working Environment

Focus: A safe, orderly, and quality learning and working environment will be provided for students and staff.

a. Educate students and staff about the harmful effects of harassment and bullying, and implement best practices for prevention

and intervention. b. Provide facilities that support and enhance instructional opportunities and effective district operations. c. Create and maintain an environment which supports positive physical, emotional, and social well-being for students and staff. d. Develop and practice an All-Hazards Emergency Plan at all facilities. e. Establish and implement standards for large events and spectator safety. f. Develop and begin implementing a comprehensive safety training program for all schools and departments.

3

g. Work collaboratively with community first responders to improve safety throughout the District’s boundaries. h. Define and employ processes which promote a healthy climate and culture conducive to employee satisfaction and high

performance. i. Disseminate and/or provide access to a Board-Approved Discipline Management Plan and Student Code of Conduct to all

students and personnel.

III. Community Engagement

Focus: Parents and community members are provided a variety of opportunities for active, collaborative involvement which support student success. a. Include parents, community, business, and industry representatives in planning and decision-making processes. b. Develop a communication plan for the District that will effectively utilize current resources while exploring new avenues for

keeping the District and community connected. c. Select Leadership Katy alumni to participate in a Community Roundtable facilitated by the Superintendent. d. Utilize a Community Bond Review Committee to review the status of the 2010 bond referendum. e. Identify resources, strategies, and unified messages that can be shared between the District’s marketing, PIE and

communication offices. f. Redesign district and campus web pages to be more inviting, informational, and user-friendly. g. Create opportunities for district and campus–based personnel to proactively share information with the community regarding

student and programmatic successes. h. Provide RSS feeds to district information, news release alerts, etc. for subscription by students, parents, and community

members.

IV. Effective and Efficient Operations

Focus: Resources are allocated in an efficient manner to facilitate quality learning experiences and a positive and effective work environment. a. Develop and implement a financial plan that makes effective use of available resources to attain the goals and objectives of

the District. b. Actively recruit, support, develop, and retain highly qualified employees for all areas of the organization. c. Provide reliable and cost efficient technology solutions to enhance the quality of educational experiences. d. Support the integration of technology through district initiatives (i.e. mobile learning devices, Bring Your Own Device) to

enhance student learning.

4

e. Review and update portraits of success for students, teachers, administrators, and support staff. f. Develop a transportation plan that makes efficient use of district resources while maintaining high levels of safety. g. Manage and support the transition to a new curriculum management system and design. h. Develop a process for ensuring that program changes which involve resources are fully vetted before being implemented. i. Explore the possibility of delaying the next facility referendum. j. Develop key performance indicators for each department/campus and a dashboard system to monitor them. k. Develop and maintain a staffing plan that utilizes data-driven decision-making to balance available budgetary resources with

best practices and district needs. l. Facilitate an effective process for identifying and training substitutes to ensure that campus and departmental needs are met. m. Use data from educational institutions and the private sector to maintain an efficient and competitive compensation plan. n. Implement a district video repository system for student or employee access. o. Implement a new Student Management System for improved efficiency of operation. p. Investigate options/issues associated with facility usage as a result of the planned opening of High School #7.

V. Organizational Improvement

Focus: Strategic data points and shared agreements are utilized to make decisions regarding planning, evaluation, and performance needs. a. Develop and implement strategies to maximize time management. b. Develop an organizational structure that supports and enhances collaboration and alignment between and among campuses,

divisions, departments, and various offices. c. Review and analyze meeting structures, schedules, and formats for improved efficiency. d. Implement a professional learning plan for assistant principals. e. Develop a professional development continuum for support staff. f. Develop a long-term plan for review and analysis of job descriptions and corresponding appraisal/evaluation instruments and

processes. g. Expand opportunities for vertical alignment within high school feeder patterns (Areas 1, 2, 3). h. Develop and demonstrate high-value, lightweight, and repeatable processes for service delivery. i. Facilitate an efficient and effective recruiting program to employ quality teachers/administrators/other personnel needed to

support district goals and programs.

5

Student Performance

2012-2013

True North Focus: 2012-2013 performance Focus will align with new accountability provisions that will be released during spring 2013.

Overview: A Change in State Standards Beginning in 2011-2012 In 2010-2011, TAKS results were combined with TAKS-Modified and TAKS-Alternative and used to determine campus and district accountability ratings. Beginning in the 2011-2012 school year, the State of Texas Assessment of Academic Readiness (STAAR) replaced TAKS. STAAR is tested in the same grades and subjects, grades 3-8, as TAKS and there are now twelve STAAR End-of-Course (EOC) exams for core high school courses. The new assessment system includes Readiness, Supporting, and Process Standards. The State Accountability Standards of the Academic Excellence Indicator System (AEIS) in the past has included meeting state expectations for the Texas Assessment of Knowledge and Skills (TAKS), as well as meeting standards for Completion Rate and Drop-out Rate. No accountability ratings were issued for the 2011-2012 school year due to the development of the new state accountability system. The new state accountability system is scheduled to be implemented during the 2012-2013 school year Federal Adequate Yearly Progress (AYP) accountability standards will continue to increase yearly through 2014. In 2010-2011, the Federal standard for Reading was equal to the state standard for Recognized. In 2011-2012, the Federal standards for Reading and Mathematics were greater than the 2010-2011 state standards for Recognized.

DISTRICT NEEDS ASSESSMENT

6

District Profile

[adapted from 2008 Katy Area Chamber of Commerce Demographic Snapshot Report and PEIMS snapshot data for 2011-12]

District Area and Population The district size is approximately 181 square miles and the Katy area is projected to have over 257,000 residents by 2013. Estimated residents as of 2008 were 212,000. In 2012-2013, Katy ISD opened three new elementary schools and one junior high school.

Campuses

35 Elementary Schools* 13 Junior High Schools* 6 High Schools

(plus 2 alternative campuses and 1 career center)

57 Campuses

Student Profile Staff Statistics

Total Students 62,414 Total Staff 7,315 White 42.05% Teachers 3,860 Hispanic 34.56% Professional Support Personnel 583 African-American 9.49% Administrators 212 Asian and Pacific Islander 11.11% Support Staff 2,660 Native American 0.24% Teachers with Advanced Degrees 23.5% At-Risk 37.53% Average Years of Teaching Experience 11.8 Low Income 31.18% Average Experience in Katy ISD 7.2 Limited English Proficient 13.74% Percentage of Teachers with More Than 10 Years of Experience 47% In Special Education 8.22% Average 2011-12 Salary $51,144 In Career and Technology Education 15.79% Average Students per Teacher 16.2 In Bilingual/English as a Second Language 13.37% In Gifted/Talented 6.43% In Title I programs 30.68%

Katy ISD continues to grow in its diversity. In 2011-12, Katy’s minority student population increased to 57.95%. In 2011-12, minority staff increased by 3.1% to 33.8%

7

District Summary - Student Performance

[adapted from TEA Annual Attendance Rate Information and TEA Annual Dropout Rate Information]

Attendance and Dropout Rates in KISD are slightly better than both the Region and State.

Annual Attendance Rate 2010-2011 Note: This AEIS indicator is one year behind the AEIS report year.

Annual Dropout Rate 2010-2011 Note: This AEIS indicator is one year behind the AEIS report year.

The percent of student attendance was calculated for the entire year for grades 1 – 12. For Gold Performance Acknowledgement on 2010-2011 attendance rates, a school district must reach at least 96%.

The dropout rate is the number of dropouts summed across grades 7 and 8 in 2010-2011, divided by the number of students summed across grades 7 and 8. A district annual dropout rate of 1.6% or less is considered exemplary.

96.5% 95.8% 95.7%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

KISD REGION IV STATE

0.01%

0.30%

0.20%

0.00%

0.05%

0.10%

0.15%

0.20%

0.25%

0.30%

0.35%

KISD REGION IV STATE

8

District Summary – Student Performance

[adapted from 2010-11 Academic Excellence Indicator System Report (AEIS)]

Over the history of the TAKS assessment and accountablity system, the district steadily improved. The 2010-2011 school year marked the fourth consecutive year that Katy ISD achieved a Recognized rating.

2011 District Texas Assessment of Knowledge & Skills (TAKS) Results by Accountability Group Grades 3-11 Combined Total % of Students Meeting Standard

II - 5

Student GroupReading/

ELAWriting Math Science

Social Studies

All Students – English & Spanish

96% 97% 93% 92% 98%

African American

93% 97% 85% 84% 97%

Hispanic 94% 96% 89% 87% 97%

White 97% 98% 95% 96% 99%

Economically Disadvantaged

92% 95% 86% 84% 96%

All Students 43% 41%Economically Disadvantaged

28% 23%

Commended Accountability Indicators

EXEMPLARY ≥ 90% RECOGNIZED ≥ 80% ACCEPTABLE < 80%

EXEMPLARY ≥ 25% Commended

RECOGNIZED ≥ 15% Commended

ACCEPTABLE < 15% Commended

Historical Data

9

[adapted from DRAFT State of the District 2003-2004 Report, Academic Excellence Indicator System Report (AEIS

The Student Success Initiative (SSI) was suspended for 2011-2012 due to the transition to STAAR and the development of the new accountability system. Information below is carried over from the 2011-2012 District Improvement Needs Assessment. % of Katy ISD students in Grades 5 and 8 who met Texas Assessment of Knowledge and Skills (TAKS) standards for Student Success Initiative (SSI)*. Students in grades 5 and 8 who did not pass the Texas Assessment of Knowledge and Skills (TAKS) Reading test or who did not pass the TAKS Math test during the first administration are provided accelerated instruction in preparation for the second administration. Overall, KISD students performed significantly better than both Region IV and the State in having a lower % of students who have not met the Texas Assessment of Knowledge and Skills (TAKS) standard:

Students Requiring Accelerated Instruction (%)


Year Grade/Subject KISD Region State

2011

5 Reading 4% 13% 13% 8 Reading 5% 10% 11%

5 Math 5% 13% 14% 8 Math 10% 18% 20%

TAKS Cumulative % Met Standard (first and second administrations)


Year Grade/Subject KISD Region State

2011

5 Reading 99% 93% 93% 8 Reading 98% 95% 94%

5 Math 98% 93% 93% 8 Math 96% 90% 88%

*Beginning in the 2009-2010 school year, 3rd grade was eliminated from the Student Success Initiative (SSI).


Historical Data

10

District Summary – Student Growth & Success

Instructional Support Initiatives

Instructional Cornerstones As a cornerstone anchors a building; the KISD Cornerstone skills have been identified and developed with the purpose of designing and anchoring curriculum and instruction around meaningful experiences for students. All students should have multiple opportunities to experience each of the Cornerstone skills throughout their educational experience. Katy ISD Instructional Cornerstone Skills: Collaboration Communication Creative Thinking Critical Thinking Information Literacy Problem Solving Social Contribution The Instructional Coach Model In January 2009, the superintendent introduced the use of instructional coaches. This model, used to identify the learning needs of each child, was redesigned in 2011-2012 to more effectively individualize campus instructional support and professional learning specific to each campus’ needs. This change has resulted in more timely and direct campus support for teachers and students. Professional Learning In 2012-13, the district will begin the transition to Eduphoria’s Forethought curriculum management system. Forethought is aligned with Eduphoria’s Aware data analysis system which was implemented district-wide during 2011-12. In an effort to increase student access to and success in higher-level courses, professional development is offered to district staff that uses strategies that will enable students to successfully complete Pre-Advanced Placement (Pre-AP) and Advanced Placement (AP) coursework. Coupled with professional development, Katy ISD provides a variety of services that address the learning needs of special education students, Bilingual/English as a Second Language (ESL) students, Gifted Talented (GT) students, new immigrants, homeless and at-risk students. In addition, KISD provides opportunities for each campus’ teacher leaders, instructional coaches, principals, and district staff to collaborate on a variety of academic focus areas. Opportunities in Katy ISD for professional learning also include district staff from the Divisions of Human Resources, Finance, Technology, and Operations. The variety of offerings supports increasing the knowledge and skills of personnel across the district. 3Ds: Data, Digital Learner/Learning, Delivery of Instruction/Differentiated Instruction. In order to position the district for meeting the needs of its digital learners, professional learning has been focused on the “3 D’s—Data, Delivery (Differentiation), and Digital Learners.” Various workshops occur in coordination through the Divisions of Teaching and Learning and Technology. These workshops support ongoing professional learning.

11

District Summary – Student Growth & Success

Instructional Support Initiatives The Teaching and Learning Division’s goal is to provide data-informed leadership and support to schools with a unified voice through:

Assessment Support teachers in the collaborative design and development of relevant tasks to assess student learning that:

• Uses formative and summative formats to inform and guide instruction including pre-assessment.

• Provides students with multiple opportunities to demonstrate learning. • Includes assessments that are developed prior to instruction and

intended to align to KISD objectives. • Measures the desired learning outcome(s). • Consists of a variety of assessments (i.e., authentic, project-based,

formal/informal, teacher observations and/or cross-curricular assessments). • Allows students to be actively involved in using evaluation criteria

to self-monitor, self-reflect, and self-evaluate.

Professional Learning

Support and provide professional learning experiences that:

• Includes job-embedded learning experiences. • Focuses on improving student learning. • Addresses adult learning styles. • Includes feedback, sustained support and accountability. • Addresses identified individual/campus/program/district needs. • Incorporates research-based strategies and best practices that support

differentiated instruction.

Curriculum Ensure that every KISD teacher has a rigorous, relevant curriculum that:

• Aligns to state and national standards, including: o Texas Essential Knowledge and Skills (TEKS) o Texas College Readiness Standards o College Board Advanced Placement Standards o English Language Proficiency Standards (ELPS) o Technology Standards

• Provides clarity through concise language, clearly articulated content, and aligned resources.

Instruction Support teachers to ensure that every student experiences engaging, relevant, and differentiated instruction that:

• Fosters the KISD Cornerstones (creative thinking, critical thinking, collaboration, communication, problem solving, information literacy, and social contribution).

• Provides meaningful, rigorous, and relevant learning experiences. • Integrates technology to enhance student learning. • Encourages connections between and among disciplines/content areas. • Requires transfer and application of knowledge and skills to new experiences. • Promotes academic, emotional, physical, social, and behavioral skills. • Leads to deeper levels of understanding and encourages metacognition.

12

[adapted from Academic Excellence Indicator System Reports (AEIS) and PEIMS data for 2011-12]

Enrollment in Pre-Kindergarten classes supports student readiness transition from Pre-Kindergarten to Kindergarten. For 2011-12, Pre-Kindergarten classes were offered on 81%, or 26 of 32 elementary campuses. Katy ISD provides a quality, developmentally-appropriate learning environment for young children with parent involvement being a key component. Among other things, early intervention establishes:

• a strong academic foundation that sets the stage for life-long learning, • a foundation to build upon for collaboration, continuous communication, and efforts among educators, families, and the

community, and • a seamless transition from Pre-Kindergarten to Kindergarten.

Pre-Kindergarten Enrollment

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

974 1,116 1,156 1,295 1,312 1,390


13

[adapted from Academic Excellence Indicator System Reports (AEIS) and PEIMS data for 2010-12]

Minority student representation continues to increase in the KISD Gifted and Talented program. Each year, Katy ISD is slightly increasing its diverse demographic representation in the GT program. Continued increases in minority population in KISD indicate that this should remain an area of focus for the district.

NUMBER OF GT STUDENTS

School Year Total GT Count American Indian Asian African

American Hispanic White Hawaiian/ Pacific Islander Two or More

2011-12 4015 6 1317 76 552 1933 0 131

2010-11 3780 2 1171 72 506 1912 0 124

2009-10 3585 2 1042 80 348 2039 1 104 PERCENT OF GT POPULATION

School Year

American Indian Asian African


2011-12 .15% 32.8% 1.89% 13.75% 48.14% 0.0% 3.26%

2010-11 .05% 30.97% 1.9% 13.3% 50.6% 0.0% 3.28%

2009-10 .06% 29.06% 2.2% 9.7% 56.9% .03% 2.90% PERCENT OF TOTAL KATY ISD ENROLLMENT BY ETHNICITY

School Year

American Indian Asian African


2011-12 .24% 11.06% 9.49% 34.56% 42.05% .05% 2.55%

2010-11 .26% 10.6% 9.35% 34.26% 43.06% .03% 2.43%

2009-10 .30% 10.15% 9.13% 33.63% 44.39% .05% 2.36%


14


[adapted from The College Board AP scores data file and KISD student management system]

Advanced Placement (AP) Exam Participation and Performance In 2011-12, five of six Katy ISD high school campuses had an increase in the number of students participating in the exams. Four of six high schools reflect an increase in the number of exams administered. Additionally, for five of six campuses, the number of students receiving a 3+ score has increased. A student score of 3, 4, or 5 on an AP exam has the potential to earn college credit hours per university guidelines.

Campus #of AP Students % change from 2010-2011 # of Exams

%Change in exams from 2010-2011

# students with 3+

% change in # of students w/ 3+ from 2010-2011

% Exams with 3+

% change in exams w/ 3+

from 2010-2011 CRHS 750 5.1% 1996 4.2% 638 .4% 85.1 -4.0% THS 489 4.7% 1126 -.7% 403 -2.2% 82.4 -5.8% KHS 344 -7.3% 817 -5.1% 301 4.5% 87.5 5.5%

MCHS 269 27.5% 479 20% 156 31% 58.0 1.6% MRHS 423 3.9% 911 9.8% 328 10.8% 77.5 4.8% SLHS 1114 20.2% 2662 22.8% 988 19.6% 88.7 -.4%

DISTRICT 3389 9.7% 7991 9.6% 2814 9.4% 77.6% -.9%

15


[adapted from campus-reported National Merit® information and Katy ISD News Releases – 11/21/2008, 10/13/2009, 09/16/2010, and 09/14/11]

National Merit® Scholarship Semifinalists National Merit® Scholarship Semifinalists continue to be identified in Katy ISD. These students, selected for their performance on the Preliminary Scholastic Aptitude Test (PSAT) in comparison with other students in Texas high schools, have a chance to compete for National Merit® Scholarships and the National Merit® title.

Number of National Merit® Semi-Finalists per Campus

Campus 2009 2010 2011 2012

CRHS 21 17 13 22

KHS 1 3 4 2

MCHS 0 2 1 2

MRHS 0 1 0 0

SLHS 12 7 13 16

THS 13 10 9 9

District 47 40 40 51

16


[created using State Assessment Data Files]

The following is a series of State of Texas Assessments of Academic Readiness (STAAR) and Texas Assessment of Knowledge and Skills (TAKS) reports.

State of Texas Assessments of Academic Readiness (STAAR)

All Afr. Am. Hisp. Wht. Eco. Dis. Sp. Ed. LEPGrade 3 98% 96% 96% 99% 95% 91% 96%Grade 4 96% 93% 96% 98% 94% 89% 95%Grade 5 96% 92% 95% 98% 93% 90% 93%Grade 6 94% 90% 90% 96% 87% 85% 83%Grade 7 96% 95% 93% 97% 91% 85% 84%Grade 8 95% 93% 92% 97% 90% 82% 76%

All Afr. Am. Hisp. Wht. Eco. Dis. Sp. Ed. LEPGrade 3 95% 87% 93% 98% 90% 85% 94%Grade 4 97% 93% 97% 98% 95% 89% 97%Grade 5 96% 92% 95% 98% 93% 89% 94%Grade 6 92% 83% 87% 95% 82% 77% 83%Grade 7 93% 85% 89% 96% 86% 81% 82%Grade 8 85% 74% 79% 92% 75% 73% 66%

STAAR Reading 2012

Includes STAAR and STAAR M

Met TAKS Equivalency

STAAR Math 2012

Includes STAAR, STAAR L, and STAAR M


17




All Afr. Am. Hisp. Wht. Eco. Dis. Sp. Ed. LEPGrade 4 99% 99% 99% 99% 98% 93% 99%Grade 7 99% 99% 98% 99% 98% 96% 94%

All Afr. Am. Hisp. Wht. Eco. Dis. Sp. Ed. LEPGrade 5 96% 90% 95% 98% 93% 84% 92%Grade 8 91% 80% 84% 96% 81% 68% 68%

All Afr. Am. Hisp. Wht. Eco. Dis. Sp. Ed. LEPGrade 8 99% 99% 98% 99% 98% 96% 96%

STAAR Social Studies 2012Includes STAAR,

STAAR L, and STAAR M


STAAR Writing 2012

Includes STAAR and STAAR M


STAAR Science 2012

Includes STAAR, STAAR L, and STAAR M


18




STAAR EOC Spring 2012

Level II Satisfactory

Level III

Advanced Level II

Satisfactory Level

III Advanced


Level III

Advanced Level II

Satisfactory Level

III Advanced


Level III

Advanced Level II

Satisfactory Level

III Advanced


Level III

Advanced All African American Hispanic White Eco. Dis. Special Education LEP

JH Algebra I 99% 68% 99% 46% 99% 54% 100% 69% 98% 44% 100% 88% 98% 47% English I Reading 80% 11% 68% 6% 71% 6% 87% 12% 65% 3% 42% 4% 39% 1%

English I Writing 71% 7% 57% 2% 58% 3% 80% 7% 50% 1% 26% 1% 29% 1%

Algebra I 89% 13% 84% 8% 86% 11% 92% 15% 82% 8% 61% 4% 79% 12% Biology 95% 18% 93% 7% 91% 10% 97% 20% 89% 5% 74% 10% 75% 5% World

Geography 93% 30% 90% 14% 88% 20% 96% 36% 85% 13% 66% 10% 69% 8%

Geometry 100% 65% 100% 37% 100% 52% 100% 65% 100% 39% 100% 83% 100% 65%

World Geography 380 99% 64%Geometry 64 100% 65%

STAAR EOCSummer 2012

Original Credit Testers

# Testers Level IIIAdvanced

Level IISatisfactory

19



Texas Assessment of Knowledge and Skills (TAKS)

Met Standard

CommendedMet

StandardCommended

Met Standard

CommendedMet

StandardCommended

Met Standard

CommendedMet

StandardCommended

Met Standard

Commended

Grade 10ELA 96% 20% 94% 11% 94% 14% 97% 23% 91% 10% 82% 19% 79% 4%

Math 87% 29% 74% 11% 80% 18% 91% 33% 75% 12% 67% 10% 65% 10%Science 88% 30% 77% 11% 81% 17% 93% 38% 77% 11% 57% 10% 58% 8%

Social Studies 97% 58% 95% 36% 96% 45% 99% 67% 95% 36% 85% 20% 84% 18%Grade 11

ELA 97% 36% 93% 20% 96% 28% 98% 42% 94% 20% 79% 14% 75% 9%Math 96% 46% 90% 54% 95% 33% 98% 54% 93% 27% 76% 14% 84% 19%

Science 98% 41% 94% 18% 97% 28% 99% 49% 94% 21% 75% 12% 86% 15%Social Studies 99% 77% 98% 58% 99% 68% 100% 86% 98% 60% 92% 26% 95% 38%

Eco. Dis. Sp. Ed. LEP

TAKS2012

Includes TAKS, TAKS (Accomodated), TAKS-M, and TAKS LAT

(when applicable)All Afr. Am. Hisp. Wht.

20

[adapted from 2007-08, 2008-09, 2009-10, and 2010-11 Academic Excellence Indicator System Reports (AEIS)]

This chart illustrates KISD scores in comparison to Region IV and State scores. TAKS is a state-mandated, criterion-referenced test which measures student achievement in Reading at grades 3 through 9; English Language Arts (ELA) at grades 10 and 11; Writing at grades 4 and 7; Science at grades 5, 8, 10, and 11; and Social Studies at grades 8, 10, and 11. Passing rates, or “Met Standard” rates, are based on scale scores that vary from test to test. These scores (% of students passing) are from the Spring 2011 administration.

In Mathematics, Science, and All Tests, KISD students scored significantly above both the Region and State. In the other three areas, KISD is above both the Region and State. For Commended scores, KISD students performed significantly above both the Region and State, with gains from the previous year in

Science, Social Studies, and All Tests.

Note: TAKS-Modified (TAKS-M)

The TAKS-M assesses special education students in grades 3 – 11 who are receiving instruction in the (TEKS) but for whom TAKS is an inappropriate measure of their academic progress as determined by the Admission, Referral, Dismissal (ARD) process. Beginning in 2010-2011, TAKS-M was included with TAKS and TAKS Accommodated results to determine state accountability ratings.

Grade Subject KISD Region State

10-11 09-10 08-09 07-08 10-11 09-10 08-09 07-08 10-11 09-10 08-09 07-08 3 – 11 TAKS

Reading/ELA 96 96 96 96 90 91 91 91 90 90 91 91

Mathematics 93 92 91 90 86 85 83 81 84 84 82 80

Writing 97 98 97 97 93 95 94 93 92 93 93 93

Science 92 92 88 86 85 85 79 76 83 83 78 74

Social Studies 98 98 97 96 96 96 94 93 95 95 93 91

All Tests 88 88 86 85 78 78 76 73 76 77 74 72

3 - 11 COMMENDED

Reading/ELA 43 44 44 45 34 33 35 34 33 33 34 34

Mathematics 41 41 44 41 31 31 33 30 29 29 31 28

Writing 45 46 48 47 32 34 34 33 31 33 34 33

Science 44 40 39 34 32 3 27 24 3 28 26 22

Social Studies 66 64 61 54 50 50 46 39 47 47 44 36

All Tests 25 24 25 24 17 16 17 15 16 15 16 15

Texas Assessment of Knowledge & Skills (TAKS) Performance Comparison

District Summary – Student Performance Historical Data

21

Completion Rate/Student Rate* *Class of 2011 results are reported during the 2012 accountability cycle.

The current year completion rate (Class of 2011) looks at the group of students who were enrolled as 9th graders in the 2007-08 school year and follows through to their expected graduation as the Class of 2011.

Completion Rate KISD Region State Class of 2011

% Graduated (4 years) 93.1 85.4 85.9 % Received GED 0.6

Information not available at time of publication

1.1 % Continued HS 3.7 6.2 % Dropped Out (4 year) 2.5 6.8

Class of 2010 % Graduated (4 years) 93.0 83.2 84.3 % Received GED 0.2 0.9 1.3 % Continued HS 4.0 7.4 7.2 % Dropped Out (4 year) 2.7 8.5 7.3





[adapted from 2007-2008 and 2008-2009 Academic Excellence Indicator System Report (AEIS) and TEA Class of 2011 Four-Year Longitudinal Summary Report]

22

College Admissions Tests

College admissions tests are defined by the Enhanced Assessment Act of the American College Testing Program (ACT) and the Scholastic Assessment Test (SAT) of the College Board. The state has set criterion for student performance on these tests. The state criterion for student performance on the American College Testing (ACT) Composite is a 24 or an 1110 on the Scholastic Assessment Test (SAT) Total. The Assessment of the American College Testing (ACT) and Scholastic Assessment Test (SAT) are taken at the student’s option. The state standard in 2010-11 for earning a Gold Performance Acknowledgement included 70% of graduates taking either the American College Testing (ACT) or Scholastic Assessment Test (SAT) with 40% or more at or above the set criterion.

Scholastic Assessment Test (SAT)

The Scholastic Assessment Test I (SAT) measures developed verbal and mathematical reasoning abilities related to successful performance in college. Student performance is reported on a scale of 200 to 800 for each ability area. The scores for each test range from 1 to 36.

KISD Scholastic Assessment Test (SAT) scores over the past five years show that the number of students taking the test has increased by over 20% while performance continues to exceed the State. Averages for all tests combined and comparisons over five years are reported on the following page.

American College Test (ACT)

The Enhanced ACT of the American College Testing Program includes four curriculum-based tests that measure students’ educational development in English, Mathematics, Reading, and Science reasoning.

KISD American College Testing (ACT) scores over the past five years show that the number of students taking the test has increased by 40% while performance continues to exceed the State. Averages for all tests combined and comparisons over five years are reported on the following page.


[adapted from the 2011 Texas Education Agency Accountability Manual]

23


[adapted from The College Board and The Assessment of the American College Testing (ACT) information]

KATY ISD STATE NATIONAL KATY ISD STATE NATIONAL

SAT Critical Reading 520 474 496

SAT Math 548 499 514 ACT Composite 23.5 20.8 21.1

SAT Writing 509 461 488 Number Taking ACT 1,527 110,180 1,666,017

Number Taking SAT 2,933 172,802 1,664,479

















ACT Performance ResultsSAT Performance Results2

01

1-1

22

00

7-0

82

00

8-0

92

00

9-1

02

01

0-1

1

24


[adapted from Academic Excellence Indicator System Reports (AEIS)]

College-Ready Graduates In preparation for the postsecondary readiness measures of STAAR, AEIS has included a College-Readiness measure for graduating classes based on Exit TAKS indicators. To be considered college-ready as defined by the Academic Excellence Indicator System Reports (AEIS), a graduate must have met or exceeded the college-ready criteria on the TAKS exit-level test, or the SAT test, or the ACT test. These charts show that Katy ISD has consistently performed above the State and Region and has increased the percentage of students measured as “college-ready” over time

59% 62% 66% 60% 64% 67% 72% 74% 78%

0%

20%

40%

60%

80%

100%

Class of 2008 Class of 2009 Class of 2010

English Language Arts

State Region KISD

58% 60% 64% 60% 63% 67% 71% 75% 79%

0%

20%

40%

60%

80%

100%

Class of 2008 Class of 2009 Class of 2010

Mathematics

State Region KISD

Historical Data

25


[adapted from Texas Education Agency (TEA) website]

State Accountability Standards Federal (AYP) Standards State assessment standards for all subjects and all accountability groups:

2012 2013 2014

State Accountability System Currently in Development

Assessment Performance Rate

Reading/ELA – 93% Mathematics – 92%

Includes STAAR

STAAR-Modified scores included,

subject to 2% cap

STAAR-Alt scores included, subject to 1% cap

Assessment Performance Rate

Reading/ELA – 100% Mathematics – 100%

Includes STAAR

STAAR-Modified scores included,

subject to 2% cap

STAAR-Alt scores included, subject to 1% cap

Assessment Participation Rate 95.0%

Assessment Participation Rate 95.0%

Attendance Rate 90.0%

Attendance Rate 90.0%

26

25%

13

,440

28%

15

,650

30.2

%

18,2

92

75%

40

,322

72%

40

,541

69.8

%

42,2

80

0

10000

20000

30000

40000

50000

60000

2009 2010 2011

Student Demographics History:


Non-Economically Disadvantaged



[adapted from Academic Excellence Indicator System Report (AEIS)]

While Katy ISD is continuing to close the performance gap between economically disadvantaged students as compared to all students, the following graphics demonstrate a need to continue to target the district’s economically disadvantaged student population in order to address this disparity in performance.

90% 91%

93%

81% 82%

86% 86% 88%

92%

71%

74%

84%

70%

80%

90%

100%

2008-2009 2009-2010 2010-2011

Math and Science Performance History All Students/Economically Disadvantaged

Math All StudentsMet Standard

Math Economically DisadvantagedMet Standard

Science All StudentsMet Standard

Science Economically DisadvantagedMet Standard

M

M

S

S

MAJOR FINDINGS:

Economically Disadvantaged Math performance increased 5% from 2009.

Economically Disadvantaged Science performance increased 13% from 2009.

Historical Data

27


In 2010-2011, to be Recognized, all student groups and subject areas needed to be at or above an 80% passing rate. The following charts indicate which grade levels, subjects, and student groups need to be targeted by the district in order to maintain the Recognized standard. State Accountability student group % passing scores for grades 3-11 combined in Reading, Math, and Writing are shown below:

Grade LevelAll

StudentsAfr Amer. Hispanic White

Econ. Disadv

Grade 3 96% 90% 94% 98% 92%

Grade 4 96% 91% 95% 98% 93%

Grade 5 95% 90% 93% 97% 90%

Grade 6 91% 81% 87% 95% 82%

Grade 7 91% 78% 87% 95% 82%

Grade 8 91% 83% 86% 94% 83%

Grade 9 85% 72% 76% 91% 71%

Grade 10 84% 72% 78% 89% 75%

Grade 11 96% 92% 95% 97% 92%

Exemplary Recognized Acceptable

Mathematics2011 TAKS Results by Accountability Group

Grade Level All Students

Afr Amer. Hispanic WhiteEcon. Disadv

Grade 3 97% 92% 95% 98% 93%

Grade 4 96% 92% 95% 97% 92%

Grade 5 96% 94% 94% 98% 92%

Grade 6 92% 89% 87% 95% 84%

Grade 7 93% 89% 89% 97% 86%

Grade 8 95% 92% 92% 97% 89%

Grade 9 94% 91% 91% 97% 88%

Grade 10 96% 93% 94% 97% 93%

Grade 11 98% 97% 98% 99% 97%


Reading/ELA2011 TAKS Results by Accountability Group

Grade LevelAll


Econ. Disadv

Grade 4 97% 96% 96% 97% 94%

Grade 7 98% 97% 97% 99% 96%


Writing2011 TAKS Results by Accountability Group

Historical Data

28

District Summary - Student Performance In 2010-2011, to be Recognized, all student groups and subject areas needed to be at or above an 80% passing rate. The following charts indicate which grade levels, subjects, and student groups need to be targeted by the district in order to maintain the Recognized standard. State Accountability student group % passing scores for grades 3-11 combined in Science and Social Studies are shown below:

Grade LevelAll


Econ. Disadv

Grade 8 98% 96% 96% 99% 95%

Grade 10 97% 95% 96% 98% 95%

Grade 11 99% 99% 99% 99% 98%


Social Studies2011 TAKS Results by Accountability Group

Grade Level All Students

Afr Amer. Hispanic WhiteEcon. Disadv

Grade 5 94% 90% 90% 97% 88%

Grade 8 89% 79% 82% 95% 80%

Grade 10 89% 76% 83% 94% 78%

Grade 11 97% 93% 95% 98% 92%


Science2011 TAKS Results by Accountability Group

Historical Data

29

During 2011-2012, fifty Katy ISD campuses and the district were evaluated for AYP. Forty campuses earned the Meets AYP designation, while eight secondary campuses, two elementary campuses, and the district received the Missed AYP designation. Targeted district support is provided for these campuses and will continue should other campuses not meet AYP in the future. Because the new State of Texas Assessments of Academic Readiness (STAAR) assessment and accountability system was under development during the 2011-2012 school year, districts and campuses did not receive state accountability ratings for 2011-2012. Federal accountability, Adequate Yearly Progress (AYP), was evaluated for school districts and campuses during the 2011-2012 school year with performance standards continuing to increase for AYP through the 2013-2014 school year.

Through 2011-2012, various components used for determining state accountability ratings were also used in the calculation of AYP. In order to calculate AYP for 2011-2012, and since STAAR standard setting will not be finalized until early 2013, the Texas Education Agency (TEA) conducted a bridge study to tie individual student STAAR results to the Texas Assessment of Knowledge and Skills (TAKS). TAKS is the State’s previous assessment and accountability program. The results of the bridging process were used to determine district and campus AYP status for 2011-2012.

FEDERAL ACCOUNTABILITY (Adequate Yearly Progress – AYP)

30

[adapted from Texas Education Agency Secure Environment (TEASE) information]

Special Education State Performance Plan Indicators

• State Performance Plan Indicator 11 (Initial Referral Timelines) requires that 100% of children are evaluated within 90 days of receiving parental consent for initial evaluation. In the 2011-12 school year, Katy ISD demonstrated increased compliance in the 2011-12 school year by moving from 96.2% to 99.2%. Improvement is still needed and is an emphasis for 2012-13.

• State Performance Plan Indicator 12 (Early Childhood Transition) requires that 100% of children referred by Part C (ECI Program) prior to age 3, who are found eligible for Part B (School Based Special Education Services) have an Individual Education Plan (IEP) developed and implemented by their third birthday. In the 2011-12 school year, Katy ISD met the state compliance timeline requirement in the 2011-12 school year moving from 96.8% to 100%.

• State Performance Plan Indicator 13 (Post-Secondary Transition) requires schools to utilize at a rate of 100% the individualized education program to reasonably enable students to meet their post-secondary goals. On this indicator, Katy ISD met the state compliance requirements in the 2011-12 school year moving from 98.3% to 100%.


31

Performance Based Monitoring Analysis System (PBMAS) Summary

[adapted from the Texas Education Agency PBMAS 2012 Manual]

PBMAS is an automated data system that reports annually on the performance of school districts and charter schools in selected program areas (bilingual education/English as a second language, career and technical education, special education, and certain Title programs under the No Child Left Behind Act).

PBMAS indicators are assigned performance levels from 0-3. A performance level of 0 is assigned to indicators that have met the PBMAS standards. A performance level of 3 is the lowest designation, meaning the district was farthest from the 0 – Met Standard designation. For the purpose of this report, only indicators reflecting a change from 2010–2011 are included. Katy ISD earned the highest performance level of 0 for all other indicators. From 2009 through 2011, data was calculated using TAKS results. Due to the transition to STAAR, the 2011-2012 data for applicable indicators was calculated using STAAR and/or the STAAR - TAKS Bridge Study.


32



Bilingual Education (BE)/English as a Second Language (ESL)

In 2011-2012, Katy ISD was evaluated using twenty-one Bilingual Education (BE)/English as a Second Language (ESL) performance level indicators.

Indicator

2012 2011 2010 2009 PBMAS

Standard %

District Rate

%

District Performance

Level

PBMAS Standard

%

District Rate

%


Level

PBMAS Standard

%

District Rate

%


Level

PBMAS Standard

%

District Rate

%


Level BE Spanish STAAR Passing Rate at TAKS Equivalency – Mathematics

70.0 94.4 0 65.0 63.6 1 60.0 73.4 0 55.0 82.0 0

LEP Recommended High School Plan/Distinguished Achievement Plan (RHSP/DAP) Diploma Rate

70.0 69.6 0 w RI 70.0 52.2 1 70.0 57.9 1 70.0 61.4 0 with RI

LEP Graduation Rate 75.0 58.5 2 75.0 66.0 1 75.0 75.3 0 70.0 54.4 2

33



Special Education (SPED) In 2011-2012, Katy ISD was evaluated using twenty-four Special Education performance level indicators.

Indicator

2012 2011 2010 2009 PBMAS

Standard %

District Rate

%


Level

PBMAS Standard

%

District Rate

%


Level

PBMAS Standard

%

District Rate

%


Level

PBMAS Standard

%

District Rate

%


Level

SPED STAAR Participation Rate 50.0 43.8 1 50.0 41.1 1 50.0 42.0 1 50.0 45.1 1

SPED STAAR-M Participation Rate 20.0 or below 26.8 1 20.0

or below 29.6 1 20.0 or below 29.1 1 Report

Only 26.5 Report Only

SPED Less Restrictive Environment (Ages 3-5) 16.0 14.0 1 16.0 14.0 1 16.0 13.6 1 15.0 14.2 0 with RI

SPED Less Restrictive Environment (Ages 6-11) 40.0 40.6 0 40.0 40.6 0 40.0 39.1 1 40.0 41.8 0

SPED Less Restrictive Environment (Ages 12-21) 65.0 61.9 1 65.0 64.2 1 65.0 64.4 1 60.0 65.4 0

SPED African American (AA) Representation (difference between SPED AA and All AA)

1.0 3.7 1 1.0 3.5 1 1.0 or below 3.6 1 1.0

or below 3.6 1

SPED Hispanic (Hisp) Representation (difference between SPED and All)

1.0 1.4 1 1.0 1.3 0 with RI 1.0 -0.5 0 1.0 -1.9 0

SPED LEP Representation (difference between SPED LEP and All LEP)

1.0 or below 0.4 0 1.0

or below 1.1 1 1.0 or below 2.6 1 1.0

or below 3.3 1

SPED Discretionary Placements to ISS (difference between SPED and All)

10.0 or below 17.2 1 10.0

or below 15.8 1 10.0 or below 12.2 1 10.0

or below 12.8 1

SPED Discretionary Placements to OSS (difference between SPED and All)

6.0 or below 5.3 0 6.0

or below 7.2 1 6.0 or below 6.3 1 Report

Only 6.9 Report Only

SPED RHSP/DAP Diploma Rate 20.0 16.4 1 16.5 23.4 0 16.5 27.7 0 16.5 31.8 0

SPED Graduation Rate 75.0 73.9 1 75.0 76.8 0 75.0 76.2 0 70.0 76.5 0

34



Career and Technology Education (CTE)

In 2011-2012, Katy ISD was evaluated using twenty-one CTE performance level indicators, including two that were Report Only.

Indicator

2012 2011 2010 2009

PBMAS Standard

%

District Rate

%


Level

PBMAS Standard

%

District Rate

%


Level

PBMAS Standard

%

District Rate

%


Level

PBMAS Standard

%

District Rate

%


Level

CTE LEP TAKS Passing Rate – Reading/ELA

70.0 80.0 0 70.0 78.6 0 70.0 67.4 1 70.0 72.5 0

CTE LEP TAKS Passing Rate – Science

65.0 73.3 0 60.0 85.0 0 55.0 54.1 0 with RI 50.5 43.6 0 with RI

CTE SPED TAKS Passing Rate –Mathematics

70.0 79.6 0 65.0 70.4 0 60.0 57.0 0 with RI 55.0 62.0 0

No Child Left Behind (NCLB)

In 2011 -2012, KISD was evaluated using seven NCLB performance level indicators.

Indicator

2012 2011 2010 2009

PBMAS Standard

%

District Rate

%


Level

PBMAS Standard

%

District Rate

%


Level

PBMAS Standard

%

District Rate


Level

PBMAS Standard

%

District Rate

%


Level

Title I, Part A – RHSP/DAP Diploma Rate 70.0 46.8 3 70.0 52.2 NA 84.0

(SR) 71.4 Report Only

82.4 (SR) 56.30 Report

Only

35

Glossary

36

District Improvement Plan Glossary Listed below are commonly used initials/terms that may help with understanding the educational jargon used in the Katy Independent School District (KISD).

ACT American College Test A college entrance exam.

AEIS Academic Excellence Indicator System The “report card” issued by the state to district and individual schools that evaluates academic achievement, attendance, completion, and dropout rates, etc. The AEIS reports pull together a wide range of information on the performance of students in each school and district in Texas every year. These reports are posted online in the fall.

AP Advanced Placement 1. An exam given by the College Board for the opportunity to earn college credit. 2. An exam given by the school district for the opportunity to skip a level of a course and advance to a higher level.

ARD Admission, Review, and Dismissal Usually a committee; may also refer to the meeting itself. The committee reviews relevant data, determines eligibility, prescribes services, and writes the Individual Education Plan (IEP) for each student receiving special education services.

AYP Adequate Yearly Progress Adequate Yearly Progress (AYP) refers to the federally mandated accountability system required by the No Child Left Behind (NCLB) Act of 2001 and the Elementary and Secondary Education Act (ESEA). All public school districts, campuses and the state are evaluated annually for AYP.

CTE Career and Technology Education Formerly known as vocational education. Guides students towards informed career decisions throughout their public educational experience. Program areas offered are business, health science, technology, marketing, trade and industry, agriculture science, and family and consumer science.

CIP

Campus Improvement Plan The plan written with the Campus Improvement Team to address the key improvement priorities of the upcoming school year.

DIP District Improvement Plan The plan written with input from the District Improvement Team. It applies to the entire district, and each school’s Campus Improvement Plan (CIP) must address the district goals.

DIT District Improvement Team

37

The district level of the site-based management team. The team is charged with developing the District Improvement Plan and with reviewing district-wide waivers.

Dropout no initials A student who is absent without an approved excuse or documented transfer and who does not return to school by the fall of the following school year. A student who completes the school year but fails to reenroll the following year.

ELA ELL

English Language Arts The term used for TAKS testing in English at grades 10 and Exit. TAKS Reading is tested at grades 3 through 9. English Language Learner

ESOL English for Speakers of Other Languages Instruction in reading, writing, and speaking English for non-native speakers.

FTE Full-Time Equivalent staffing

GT

Gifted and Talented Provides a differentiated, enriched academic environment for students with advanced learning abilities, and uses instructional methods and materials designed to develop thinking processes that enhance independent study and personal effectiveness.

LRE

Least Restrictive Environment Term applicable to learning environment for Special Education students.

NCLB No Child Left Behind The No Child Left Behind Act of 2001, which was signed into law on June 8, 2002, significantly revised the Elementary and Secondary Act, previous education legislation. Four areas of focus include: Accountability for Student Achievement, Focus on What Works, Flexibility, and Parental Involvement.

PBMAS Performance Based Monitoring Analysis System PBMAS is an automated data system that reports annually on the performance of school districts and charter schools in selected program areas (bilingual education/English as a second language, career and technical education, special education, and certain Title programs under the No Child Left Behind Act).

PEIMS Public Education Information Management System A state-wide data gathering and analysis system that monitors student and school progress. This is the source of the Academic Excellence Indicator System (AEIS) report card.

38

PIE Partners in Education Parents, individuals, businesses, civic, and community organizations who support district and campus goals through their time and financial assistance.

PLC Professional Learning Community A strategy for substantive school improvement that builds the capacity of stakeholders to function as a collaborative learning community. The process is based on the shared mission, vision, guiding principles, goals, and actions of the district and focuses on collaboratively working for continuous improvement.

RtI SAP

Response to Intervention RtI may be described as a model addressing the needs of all students through a continuum of services which provide: (1) high-quality instruction and scientific, researched-based, tiered intervention strategies aligned with individual student need; (2) frequent monitoring of student progress to make results-based academic or behavioral decisions; (3) data-based school improvement; and (4) the application of student response data to important educational decisions (such as those regarding placement, intervention, curriculum, and instructional goals and methodologies). Student Assistance Program A Drug Free Schools program that provides support groups for secondary students.

SAT Scholastic Achievement Test A college entrance exam.

SCE

State Compensatory Education Increase the achievement of identified students in at-risk situations and reduce their dropout rate.

STAAR

State of Texas Assessments of Academic Readiness STAAR will replace the Texas Assessment of Knowledge and Skills (TAKS), which is the criterion-reference assessment program that has been in place since 2003. The STAAR name, pronounced the same as star, will be used for the 12 end-of-course assessments mandated by SB 1031 in 2007 and the new grade 3-8 assessments mandated by HB 3 in the 2009 legislative session.

STAAR Standards

The STAAR system will include Readiness, Supporting, and Process standards.

39

SSI

Student Success Initiative Enacted by the 76th Texas Legislature in 1999 and modified by the 81st Texas Legislature in 2009, the Student Success Initiative (SSI) grade advancement requirements apply to the TAKS Reading and Mathematics tests at grades 5 and 8. As specified by these requirements, a student may advance to the next grade level only by passing these tests or by unanimous decision of his or her grade placement committee that the student is likely to perform at grade level after additional instruction. Prior to 2009, grade 3 was an SSI grade, as well.

TAKS Texas Assessment of Knowledge and Skills Measures the statewide curriculum in reading at Grades 3-9; in writing at Grades 4 and 7; in English Language Arts at Grades 10 and 11; in mathematics at Grades 3-11; in science at Grades 5, 10, and 11; and social studies at Grades 8, 10, and 11. The Spanish TAKS is administered at Grades 3 through 5. (Prior to 2010, Spanish TAKS was offered through grade 6.) Satisfactory performance on the TAKS at Grade 11 is prerequisite to a high school diploma.

TAKS-M, TAKS-ALT

Texas Assessment of Knowledge and Skills-Modified, Texas Assessment of Knowledge and Skills-Alternative TAKS–M is an alternate assessment based on modified academic achievement standards designed for students in grades 3-11 receiving special education services and who are receiving instruction in the (TEKS) but for whom TAKS is an inappropriate measure of their academic progress as determined by the Admission, Referral, Dismissal (ARD) Process. TAKS–Alt is designed for the purpose of assessing students in grades 3–11 who have significant cognitive disabilities and are receiving special education services.

TEC Texas Education Code Provides access to current Texas statutes and is the state law governing education.

TEKS Texas Essential Knowledge and Skills The TEKS are the framework for Texas Assessment of Knowledge and Skills (TAKS) assessment objectives. A thorough understanding of the TEKS is essential for student success in the classroom, on the state assessment, and as reflected in the state accountability system.

Title Funds no initials The purpose of Title Funds is to ensure that all children, particularly low-achieving children in the highest-poverty schools, have a fair, equal, and significant opportunity to obtain a high-quality education and reach, at a minimum, proficiency on challenging State academic achievement standards and state academic assessments.

Post Office Box 159 " Katy, Texas 77492-0159

TO:

FROM:

SUBJECT:

DATE:

Board of Trustees


January 2013 Budget Amendments

January 22, 2013

The TEA Financial Accountability System Resource Guide requires Board approval for anychange to a revenue object or a function expenditure category. The attached proposedamended budget and the individual amendments reflect these changes.

Impact Statement: General Fund expenditures increase $17,699 due to a fiscal year-endtiming difference caused by delivery delays of a technology vehicle, $6,050 for Jazz Band andHonor Choir travel to the Texas Music Educators Association conference, and $436,062 formaintenance equipment repairs and custodial supplies related to square footage added in2012/13. The remaining budget amendments are direct offsets between functions• Approval ofthese amendments will result in a $459,811 decrease in fund balance.


It is recommended: that the Board approve the District's January 2013 budget amendmentsas presented.



William L. MooreChief Financial Officer

Christophÿ ,r J. SÿithBusiness Manager

S°

Budget and Treasury Coordinator

Summary of Changes

In Revenues, Expenditures and Fund Balance

2012-2013 Budget

January, 2013

Revenues

Per December Revised Budget 583,107,706$

Proposed Revenue Budget 583,107,706$

Expenditures

Per December Revised Budget 578,764,436$ For Technology Vehicle 17,699For Jazz Band and Honor Choir travel to TMEA 6,050For contacted maintenance repair and custodial supplies 436,062

Proposed Expenditure Budget 579,224,247$

Net Change in Fund Balance (459,811)$

2 REV EXP 1/10/2013

3_TEA 0113 1/10/2013 1:34 PM

Katy Independent School District2012 - 2013 Amended Budget

January, 2013Proposed

Special Debt January RevisedGeneral Revenue Service Amended December

Fund Fund Fund Budget Budget

BUDGETED FUND BALANCE AT SEPTEMBER 1, 2012 $116,832,942 $5,702,222 $43,078,961 $165,614,125 $165,614,125

REVENUES:

5700 Property Taxes and Other Local Revenues 250,518,586 14,487,820 86,861,854 351,868,260 351,868,2605800 State Program Revenues 207,136,589 158,570 2,670,826 209,965,985 209,965,9855900 Federal Program Revenues 9,701,893 11,571,568 21,273,461 21,273,461

Total Revenues 467,357,068 26,217,958 89,532,680 583,107,706 583,107,706

EXPENDITURES:

11 Instruction 292,589,987 292,589,987 292,556,54712 Instructional Resources and Media Services 6,193,739 6,193,739 6,193,73913 Curriculum and Instructional Staff Development 5,355,794 5,355,794 5,353,54421 Instructional Leadership 3,812,920 3,812,920 3,873,71023 School Leadership 27,532,037 27,532,037 27,532,03731 Guidance, Counseling, Evaluation Services 18,252,725 18,252,725 18,252,72533 Health Services 4,560,362 4,560,362 4,560,36234 Student Transportation 15,544,267 15,544,267 15,545,76735 Food Services 27,585,646 27,585,646 27,585,64636 Cocurricular/Extracurricular Activities 9,042,966 9,042,966 9,038,47841 General Administration 10,033,425 10,033,425 10,033,42551 Plant Maintenance and Operations 44,558,932 44,558,932 44,122,87052 Security and Monitoring Services 5,546,810 5,546,810 5,539,64853 Data Processing Services 8,914,546 8,914,546 8,896,84761 Community Services 609,082 609,082 609,08271 Debt Service 91,165,000 91,165,000 91,165,00081 Facilities Acquisition and Construction 1,565,558 1,000,000 2,565,558 2,544,55895 Payments to Juvenile Justice Education Programs 135,965 135,965 135,96597 Payments to Tax Increment Fund 2,724,486 2,724,486 2,724,48699 Intergovernmental Charges 2,500,000 2,500,000 2,500,000

Total Expenditures 459,473,601 28,585,646 91,165,000 579,224,247 578,764,436

OTHER FINANCING SOURCES (USES):

Operating Transfers In (Out) (4,237,982) 3,482,982 (755,000) ($755,000)Other Sources (Uses) 0 0

EXCESS (DEFICIENCY) OF REVENUES 3,645,485 (2,367,688) 1,850,662 3,128,459 3,879,270

BUDGETED FUND BALANCE AT AUGUST 31, 2013 $120,478,427 $3,334,534 $44,929,623 $168,742,584 $169,493,395


Function and Object Code Descriptions

2012 - 2013

Function Description

11 Instruction12 Instructional Resources and Media Services13 Curriculum and Instructional Staff Development21 Instructional Leadership23 School Leadership31 Guidance, Counseling, Evaluation Services33 Health Services34 Student (Pupil) Transportation35 Food Services36 Cocurricular/Extracurricular Activities41 General Administration51 Plant Maintenance and Operations52 Security and Monitoring Services53 Data Processing Services61 Community Services71 Debt Service81 Facilities Acquisition and Construction93 Payments to Fiscal Agent/Member Districts of Shared Service Arrangements95 Payments to Juvenile Justice Alternative Education Programs97 Payments to Tax Increment Fund99 Intergovernmental

Object Description

Revenues

5700 Property Taxes and Other Local Revenues5800 State Program Revenues5900 Federal Program Revenues

Expenditures

6100 Payroll Costs6200 Purchased & Contracted Services6300 Supplies & Materials6400 Other Operating Expenses6500 Debt Payments6600 Capital Outlay

Other Sources/Uses

7000 Other Sources8000 Other Uses

MUNIS Budget Amendment ReportJanuary Budget Amendments

Seq # Fund Func ObjCampus

or Dept

Prgrm

IntentResp

General Ledger

Account Description

Increase

Amount

Decrease

AmountIssuing Campus or Department Cabinet Approval

1 192 11 6399 106 11 106 GENERAL SUPPLIES $6,160 Cummings, Kenneth, E - 12/06/2012 Kelley, Joe, K

2 192 11 6399 107 24 107 GENERAL SUPPLIES $4,500 12/06/2012

3 192 11 6399 108 32 108 GENERAL SUPPLIES $380

4 192 11 6399 111 11 111 GENERAL SUPPLIES $2,500

5 192 11 6639 045 11 045 EQUIPMENT OVER $5000 $12,300

6 192 11 6329 109 24 109 OTHER READING MATLS $1,700


8 192 81 6625 045 99 045 BUILDING IMPROV. $9,000




1 199 11 6399 002 11 002 GENERAL SUPPLIES $750 Kendler, David, R - 12/05/2012 Menius, Linda, R

2 199 13 6414 002 11 002 EMPLYE-REGISTRATION $300 12/05/2012

3 199 13 6415 002 11 002 EMPLYE-ROOM/BOARD $300

4 199 13 6416 002 11 002 EMPLYE-MILEAGE $150

1 199 52 6127 961 91 936 EXTRA DUTY PARAPROF $1,562 Stevens, Charles, I - 12/07/2012 Decker, Deborah, M

2 199 36 6416 936 91 936 EMPLYE-MILEAGE $1,562 01/10/2013

1 199 52 6127 052 99 052 EXTRA DUTY PARAPROF $1,800 Finnesand, Kerri, A - 12/21/2012 Kelley, Joe, K

2 199 52 6127 052 99 052 EXTRA DUTY PARAPROF $1,800 12/21/2012


1 192 53 6631 975 99 975 VEHICLES OVER $5000 $17,699 Owens, Lonnie - 12/11/2012 Schad, Lenny, J

12/14/2012

TIMING DIFFERENCE FOR VEHICLE BUDGETED TO 2011-2012 BUT NOT RECEIVED PRIOR TO 8-31-12 PER PO# 1229989

Amendment 5 : Journal No. - 41500

800

333

800

TRANSFER FUNDS FOR SECURITY GUARDS FOR EXTRA CURRICULAR ACTIVITIES AT WCJH.

TRANSFERRING FUNDS TO COVER THE COST OF ADDITIONAL SECURITY AT RHODES STADIUM FOOTBALL GAMES.


332


310

300

201

201

TRANSFER TAYLOR HIGH SCHOOL ART BUDGET FUNDS FROM EMPLOYEE REGISTRATION, TRAVEL, AND MILEAGE TO SUPPLIES


201

201

443

800

TRANSFER FUNDS FROM AREA ASSISTANT SUPERINTENDENT ACCOUNT TO SPECIFIED SCHOOLS TO ADDRESS NEEDS NOT INCLUDED IN THEIR CAMPUS BUDGET.

800

800

439

800

800

800

800

800

800

Sub

Obj


1/10/2013 2:10:53 PM Page 1 of 2

1 192 81 6625 120 99 120 BUILDING IMPROV. $12,000 Wilhelm, Tammi, R - 12/13/2012 Paetow, Patricia, E


1 192 11 6117 005 11 005 EXTRA DUTY PROFESSIONAL $2,000 Steele, Cazilda, C - 12/13/2012 Menius, Linda, R

2 192 52 6127 005 99 005 EXTRA DUTY PARAPROF $2,000 12/13/2012

1 199 36 6412 875 99 875 TRAVEL-STUDENT $6,050 Bryant, Robert, V - 12/17/2012 Caskey, Christine

12/17/2012

1 199 51 6249 951 99 951 EQUIPMENT REPAIR-BUILDINGS $143,414 Mcdonald, Kathryn, A - 12/18/2012 Gunnell, Thomas, J

2 199 51 6319 951 99 951 CUSTODIAL DUST MOPS & SUPPLIES $162,224 12/18/2012


1 199 13 6121 851 22 851 OVERTIME PAY $3,000 Caskey, Christine - 12/21/2012 Caskey, Christine


3 199 21 6497 851 22 851 FEES $1,000

1 199 34 6121 934 99 934 OVERTIME PAY $1,500 Anders, Alan, W - 12/18/2012 Gunnell, Thomas, J

2 199 11 6121 934 23 934 OVERTIME PAY $1,500 12/20/2012


856

855

TO TRANSFER BUS MECHANICS OVERTIME TO BUS ATTENDANTS OVERTIME.

458

TO PROVIDE OVERTIME FOR THE LIVESTOCK SHOW IN FEBRUARY.


800

458

155

187

TO PROVIDE FUNDING FOR CONTRACTED REPAIRS AND SUPPLIES FOR ADDITIONAL SQUARE FEET ADDED IN 2012/2013.

TO PROVIDE FUNDING FOR KATY JAZZ BAND AND STEPHENS AND GRIFFIN ELEMENTARY HONOR CHOIR TRAVEL TO TMEA CONFERENCE.


196


202


600

600

TRANSFER FUNDS FOR SECURITY TO WORK DETENTION

800

TRANSFER FUNDS FROM AREA ASSISTANT SUPERINTENDENT ACCOUNT TO SPECIFIED SCHOOL TO ADDRESS NEEDS NOT INCLUDED IN THEIR CAMPUS BUDGET.


800

1/10/2013 2:10:53 PM Page 2 of 2


TO:

FROM:

SUBJECT:

DATE:

Board of Trustees


December 2012 Financial Statements

January 22, 2013

Attached are the District's financial statements for the period ending December 31, 2012 foryour approval.

Impact Statement: The statements include revenues, expenditures, and changes in fundbalance for all budgeted funds and an analysis of expenditures by function and object. Thestatements reflect revenues of $232,613,938 and expenditures of $159,272,356 for the fourmonths ending December 31, 2012.

The District's investments include $71,591,096 in the Texas Local Government InvestmentPool, $30,211,414 in the Lone Star Investment Pool, $150,097,379 in Bank StrategicAccounts, and $71,488,522 in Interest Bearing Bank Checking Accounts for a total of$323,388,411 as of December 31, 2012.


It is recommended:Statements.

that the Board approve the District's December 2012 Financial


• / 4 m

t ÿ



KATY INDEPENDENT SCHOOL DISTRICTINTERIM STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND EQUITY

FOR THE FOUR MONTHS ENDED DECEMBER 31, 2012

Special Debt 2012-2013 %General Revenue Service Amended % Prior

Fund Funds Fund Total Budget To Date Year

BUDGETED FUND BALANCE AT SEPT. 1, 2012 $116,832,942 $5,702,222 $43,078,961 $165,614,125 $165,614,125

Codes

REVENUES:5700 Property Taxes and Other Local Revenues 92,245,508 5,680,000 31,985,297 129,910,805 351,868,260 37% 52%5800 State Program Revenues 94,969,031 0 3,560,066 98,529,097 209,965,985 47% 47%5900 Federal Program Revenues 1,026,286 3,147,750 0 4,174,036 21,273,461 20% 22%

Total Revenues 188,240,825 8,827,750 35,545,363 232,613,938 583,107,706

EXPENDITURES6100 Payroll Costs 132,024,318 3,451,991 0 135,476,309 408,515,928 33% 33%6200 Purchased and Contracted Services 7,900,804 34,224 0 7,935,028 25,670,420 31% 34%6300 Supplies and Materials 6,478,676 5,881,959 0 12,360,635 39,563,380 31% 30%6400 Other Operating Expenses 2,612,384 4,521 0 2,616,905 8,629,189 30% 30%6500 Debt Payments 0 0 197,173 197,173 91,165,000 0% 0%6600 Capital Outlay 684,320 1,986 0 686,306 5,220,519 13% 2%

Total Expenditures 149,700,502 9,374,681 197,173 159,272,356 578,764,436

TRANSFERS IN (OUT) 0 0 110,305 110,305 (755,000)OTHER SOURCES (USES) 11,667 11,667 0 23,334 0

EXCESS (DEFICIENCY) OF REVENUES 38,551,990 (535,264) 35,458,495 73,475,221 3,588,270

FUND BALANCE AT DECEMBER 31, 2012 $155,384,932 $5,166,958 $78,537,456 $239,089,346 $169,202,395

KATY INDEPENDENT SCHOOL DISTRICTINTERIM STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND EQUITY

FOR THE FOUR MONTHS ENDED DECEMBER 31, 2012

Special Debt 2012-2013 %General Revenue Service Amended % Prior

Fund Funds Fund Total Budget To Date Year

BUDGETED FUND BALANCE AT SEPT. 1, 2012 $116,832,942 $5,702,222 $43,078,961 $165,614,125 $165,614,125

Codes

REVENUES:5700 Property Taxes and Other Local Revenues 92,245,508 5,680,000 31,985,297 129,910,805 351,868,260 37% 52%5800 State Program Revenues 94,969,031 0 3,560,066 98,529,097 209,965,985 47% 47%5900 Federal Program Revenues 1,026,286 3,147,750 0 4,174,036 21,273,461 20% 22%

Total Revenues 188,240,825 8,827,750 35,545,363 232,613,938 583,107,706

EXPENDITURES: 11 Instruction 95,228,992 0 0 95,228,992 292,556,547 33% 33% 12 Instructional Resources and Media Services 2,055,885 0 0 2,055,885 6,193,739 33% 32% 13 Curriculum and Instructional Staff Development 1,504,661 0 0 1,504,661 5,353,544 28% 28% 21 Instructional Leadership 1,160,483 0 0 1,160,483 3,873,710 30% 32% 23 School Administration 9,003,981 0 0 9,003,981 27,532,037 33% 32% 31 Guidance and Counseling Services 5,955,907 0 0 5,955,907 18,252,725 33% 32% 33 Health Services 1,424,836 0 0 1,424,836 4,560,362 31% 34% 34 Student (Pupil) Transportation 5,181,206 0 0 5,181,206 15,545,767 33% 36% 35 Food Services 0 9,374,681 0 9,374,681 27,585,646 34% 36% 36 Cocurricular/Extracurricular Activities 2,998,680 0 0 2,998,680 9,038,478 33% 32% 41 General Administration 3,124,979 0 0 3,124,979 10,033,425 31% 34% 51 Plant Maintenance and Operations 16,034,328 0 0 16,034,328 44,122,870 36% 34% 52 Security and Monitoring Services 1,744,348 0 0 1,744,348 5,539,648 31% 33% 53 Data Processing Services 3,065,337 0 0 3,065,337 8,896,847 34% 37% 61 Community Services 162,331 0 0 162,331 609,082 27% 31% 71 Debt Service 0 0 197,173 197,173 91,165,000 0% 0% 81 Facilities Acquisition and Construction 248,519 0 0 248,519 2,544,558 10% 4% 95 Payments to Juvenile Justice Education Program 0 0 0 0 135,965 0% 0% 97 Payments to Tax Increment Fund 0 0 0 0 2,724,486 0% 0% 99 Other Intergovernmental Charges 806,029 0 0 806,029 2,500,000 32% 33%

Total Expenditures 149,700,502 9,374,681 197,173 159,272,356 578,764,436

TRANSFERS IN (OUT) 0 0 110,305 110,305 (755,000)OTHER SOURCES (USES) 11,667 11,667 0 23,334 0

EXCESS (DEFICIENCY) OF REVENUES 38,551,990 (535,264) 35,458,495 73,475,221 3,588,270

FUND BALANCE AT DECEMBER 31, 2012 $155,384,932 $5,166,958 $78,537,456 $239,089,346 $169,202,395

KATY INDEPENDENT SCHOOL DISTRICT EXPENDITURES BY FUNCTION/OBJECT 2012-2013 Year to Date % of

Amended Expenditures BudgetBudget 12/31/12 Expended

INSTRUCTIONAL & INSTRUCTIONAL RELATED SERVICES

11 - Instruction Payroll Costs $281,626,367 $92,509,409 32.8%Purchased and Contracted Services 1,028,794 114,459 11.1%Supplies and Materials 9,551,493 2,515,440 26.3%Other Operating Expenses 339,777 79,568 23.4%Capital Outlay 10,116 10,116 100.0%

Total Instruction 292,556,547 95,228,992 32.6%

12 - Instructional Resources and Media Services Payroll Costs 5,379,642 1,789,508 33.3%Purchased and Contracted Services 9,423 4,531 48.1%Supplies and Materials 795,219 261,053 32.8%Other Operating Expenses 9,455 793 8.4%Capital Outlay 0 0 0.0%

Total Instructional Resources and Media Services 6,193,739 2,055,885 33.2%

13 - Curriculum and Instructional Staff Development Payroll Costs 3,973,947 1,318,195 33.2%Purchased and Contracted Services 180,542 14,549 8.1%Supplies and Materials 498,314 45,605 9.2%Other Operating Expenses 700,741 126,312 18.0%Capital Outlay 0 0 0.0%

Total Curriculum and Instructional Staff Development 5,353,544 1,504,661 28.1%

Total Instruction and Instructional Related Services 304,103,830 98,789,538 32.5%

INSTRUCTIONAL AND SCHOOL LEADERSHIP

21 - Instructional Leadership Payroll Costs 3,431,423 1,120,429 32.7%Purchased and Contracted Services 110,723 9,831 8.9%Supplies and Materials 257,532 19,803 7.7%Other Operating Expenses 74,032 10,420 14.1%Capital Outlay 0 0 0.0%

Total Instructional Leadership 3,873,710 1,160,483 30.0%

23 - School Leadership Payroll Costs 26,775,787 8,828,758 33.0%Purchased and Contracted Services 13,774 4,276 31.0%Supplies and Materials 422,675 90,361 21.4%Other Operating Expenses 319,801 80,586 25.2%Capital Outlay 0 0 0.0%

Total School Leadership 27,532,037 9,003,981 32.7%

Total Instructional and School Leadership 31,405,747 10,164,464 32.4%



SUPPORT SERVICES - STUDENT (PUPIL)

31 - Guidance and Counseling Services Payroll Costs $16,992,387 $5,732,825 33.7%Purchased and Contracted Services 222,646 9,656 4.3%Supplies and Materials 938,475 190,047 20.3%Other Operating Expenses 99,217 23,379 23.6%Capital Outlay 0 0 0.0%

Total Guidance and Counseling Services 18,252,725 5,955,907 32.6%

33 - Health Services Payroll Costs 4,405,683 1,389,494 31.5%Purchased and Contracted Services 8,134 156 1.9%Supplies and Materials 119,051 32,511 27.3%Other Operating Expenses 27,494 2,675 9.7%Capital Outlay 0 0 0.0%

Total Health Services 4,560,362 1,424,836 31.2%

34 - Student (Pupil) Transportation Payroll Costs 11,469,004 4,213,882 36.7%Purchased and Contracted Services 164,150 39,813 24.3%Supplies and Materials 3,634,359 916,775 25.2%Other Operating Expenses 278,254 10,736 3.9%Capital Outlay 0 0 0.0%

Total Student (Pupil) Transportation 15,545,767 5,181,206 33.3%

35 - Food Services Payroll Costs 8,765,146 3,451,991 39.4%Purchased and Contracted Services 85,000 34,224 40.3%Supplies and Materials 16,120,500 5,881,959 36.5%Other Operating Expenses 15,000 4,521 30.1%Capital Outlay 2,600,000 1,986 0.1%

Total Food Services 27,585,646 9,374,681 34.0%

36 - Cocurricular / Extracurricular Activities Payroll Costs 5,784,595 1,861,127 32.2%Purchased and Contracted Services 722,813 218,005 30.2%Supplies and Materials 1,102,271 200,702 18.2%Other Operating Expenses 1,410,799 701,381 49.7%Capital Outlay 18,000 17,465 97.0%

Total Cocurricular/Extracurricular Activities 9,038,478 2,998,680 33.2%

Total Support Services - Student (Pupil) 74,982,978 24,935,310 33.3%

ADMINISTRATIVE SUPPORT SERVICES

41 - General Administration Payroll Costs 7,050,444 2,372,740 33.7%Purchased and Contracted Services 1,460,464 521,206 35.7%Supplies and Materials 561,751 67,668 12.0%Other Operating Expenses 960,766 163,365 17.0%Capital Outlay 0 0 0.0%

Total General Administration 10,033,425 3,124,979 31.1%

Total Administrative Support Services 10,033,425 3,124,979 31.1%



SUPPORT SERVICES - NONSTUDENT BASED

51 - Plant Maintenance and Operations Payroll Costs $20,691,250 $6,945,804 33.6%Purchased and Contracted Services 18,164,995 6,010,654 33.1%Supplies and Materials 3,210,239 1,109,766 34.6%Other Operating Expenses 1,476,441 1,388,946 94.1%Capital Outlay 579,945 579,158 99.9%

Total Plant Maintenance and Operations 44,122,870 16,034,328 36.3%

52 - Security and Monitoring Services Payroll Costs 5,021,958 1,604,154 31.9%Purchased and Contracted Services 179,977 58,180 32.3%Supplies and Materials 182,347 71,030 39.0%Other Operating Expenses 79,832 3,486 4.4%Capital Outlay 75,534 7,498 9.9%

Total Security and Monitoring Services 5,539,648 1,744,348 31.5%

53 - Data Processing Services Payroll Costs 6,094,387 2,020,266 33.1%Purchased and Contracted Services 592,606 71,499 12.1%Supplies and Materials 2,081,241 931,844 44.8%Other Operating Expenses 103,489 16,906 16.3%Capital Outlay 25,124 24,822 98.8%

Total Data Processing Services 8,896,847 3,065,337 34.5%

Total Support Services - Nonstudent Based 58,559,365 20,844,013 35.6%

ANCILLARY SERVICES

61 - Community Services Payroll Costs 448,877 117,411 26.2%Purchased and Contracted Services 90,414 17,960 19.9%Supplies and Materials 65,243 25,661 39.3%Other Operating Expenses 4,548 1,299 28.6%Capital Outlay 0 0 0.0%

Total Community Services 609,082 162,331 26.7%

Total Ancillary Services 609,082 162,331 26.7%

DEBT SERVICE

71 - Debt Service Debt Payments 91,165,000 197,173 0.2%

Total Debt Service 91,165,000 197,173 0.2%

Total Debt Service 91,165,000 197,173 0.2%



CAPITAL OUTLAY

81 - Facilities Acquisition and Construction

Payroll Costs $605,031 $200,316 33.1%Purchased and Contracted Services 0 0 0.0%Supplies and Materials 22,670 410 1.8%Other Operating Expenses 5,057 2,532 50.1%Debt Payments 0 0 0.0%Capital Outlay 1,911,800 45,261 2.4%

Total Facilities Acquisition and Construction 2,544,558 248,519 9.8%

Total Capital Outlay 2,544,558 248,519 9.8%

INTERGOVERNMENTAL CHARGES

95 - Payments to Juvenile Justice Education Programs Payroll Costs 0 0 0.0%Purchased and Contracted Services 135,965 0 0.0%Supplies and Materials 0 0 0.0%Other Operating Expenses 0 0 0.0%Capital Outlay 0 0 0.0%

Total Payments to Fiscal Agents/Members 135,965 0 0.0%

97 - Payments to Tax Increment Fund Payroll Costs 0 0 0.0%Purchased and Contracted Services 0 0 0.0%Supplies and Materials 0 0 0.0%Other Operating Expenses 2,724,486 0 0.0%Capital Outlay 0 0 0.0%

Total Payments to Fiscal Agents/Members 2,724,486 0 0.0%

99 - Other Intergovernmental Charges Payroll Costs 0 0 0.0%Purchased and Contracted Services 2,500,000 806,029 32.2%

Supplies and Materials 0 0 0.0%Other Operating Expenses 0 0 0.0%Capital Outlay 0 0 0.0%

Total Payments to Fiscal Agents/Members 2,500,000 806,029 32.2%

Total Intergovernmental Charges 5,360,451 806,029 15.0%

GRAND TOTAL EXPENDITURES $578,764,436 $159,272,356 27.5%


Less: 71 - Debt Service (91,165,000) (197,173) 0.2%97 - Payments to Tax Increment Fund (2,724,486) 0 0.0%

Adjusted Total Expenditures $484,874,950 $159,075,183 32.8%



EXPENDITURES BY OBJECT

Payroll Costs $408,515,928 $135,476,309 33.2%Purchased and Contracted Services 25,670,420 7,935,028 30.9%Supplies and Materials 39,563,380 12,360,635 31.2%Other Operating Expenses 8,629,189 2,616,905 30.3%Debt Service 91,165,000 197,173 0.2%Capital Outlay 5,220,519 686,306 13.1%


Post Office Box 159 • Katy, Texas 77492-0159

TO:

FROM:

SUBJECT:

DATE:

Board of Trustees


December 2012 Check Registers

January 22, 2013

Attached is a summary of the December 2012 check registers for your approval.

Impact Statement: Checks written in the General Fund totaled $5,119,712, Special RevenueFunds $2,479,732, Debt Service Fund $83,087, Construction Fund $7,628,436, InternalService Fund $754,616, and Agency Funds $614,399.


It is recommended:$16,679,982.

that the Board approve the December 2012 checks in the amount of




KATY INDEPENDENT SCHOOL DISTRICT CHECK REGISTERS SUMMARY

FOR THE MONTH ENDED DECEMBER, 2012

Total Checks Total Checksby Fund by Fund Group

GENERAL FUNDS $5,119,712

SPECIAL REVENUE FUNDS:

ESEA Title I Part A 117,391 IDEA Part B 214,572 Food Service (Nat. School ...) 1,389,965 Vocational Education - Carl Perkins Grant 27,462 Title II - Part A 9,613 Title III, Part A 59,916 Early Childhood Intervention 11,705 SSA-IDEA Part B 2,718 SSA-IDEA Part H 201 State Textbook Fund 309,670 SSA-Local Deaf Shortfall 822 Campus Wide Activity 335,697

Total Special Revenue Funds 2,479,732

DEBT SERVICE FUNDS 83,087

CONSTRUCTION FUNDS 7,628,436

INTERNAL SERVICE FUNDS 754,616

AGENCY FUNDS 614,399

TOTAL $16,679,982


TO:

FROM:

SUBJECT:

DATE:

Board of Trustees


December 2012 Tax Report

January 22, 2013

Attached is the Tax Assessor-Collector's certified tax report for the month ending December 31, 2012.This report provides information on the tax levy assessed, collections to date and balances yet to becollected through the most recent financial reporting period.


Impact Statement: Tax collections are the largest source of local revenues. A summary of the taxassessor-collectors report and amounts from the prior year are listed below. Due to the countiesreporting collections on a cash basis and prior years being reported on an accrual basis, amounts willnot be comparable on a monthly or a year-to-date basis until the next fiscal year.

Current Month Year-to-Date

Current CollectionsDelinquent CollectionsPenalty & Interest

$ 111,495,766 $ 119,648,375211,248 1,814,21846,816 376,254

Total Collections $ 111,753,830 $ 121,838,847

2011-12 2012-13Collection Rates:Current Year Taxes 52.67% 35.81%

Total Collections 53.12% 36.46%

It is recommended: that the Board of Trustees approve the December 2012 Tax Report.


j° -.ÿAlton Frailey ÿ- ....... )

SuperintendentWilliam L. MooreChief Financial Officer

TAX REPORT KA TY INDEPENDENT SCHOOL DISTRICT

DECEMBER 2012

2012/13 TAX LEVY $ 324,004,788.09

ADJUSTMENTS 10,136,016.62

ADJUSTED TAX LEVY 334,140,804.71

COLLECTIONS TO DATE ON CURRENT ROLL 119,648,375.34

BALANCE TO BE COLLECTED $ 214,492,429.37

PERCENTAGE COLLECTED OF CURRENT ROLL 35.81%

*********************************************************************************************'******************,***********************

CURRENT COLLECTIONS DELINQUENT TAXES PENALTY & INTEREST

COLLECTIONS TO DATE

PERCENTAGE OF COLLECTIONS 36.46%

$

$

119,648,375.34 1,814,217.89

376,254.02

121,838,847.25

*********************************************************************************************'******************,***********************

ORIGINAL ASSESSED VALUE $21,453,419,892

CURRENT ASSESSED VALUE $22,128,925,243

I CERTIFY THIS TO BE A TRUE AND CORRECT REPORT OF ACCOUNTS AND BALANCES AS OF DECEMBER 2012.

DAV~ TAX ASSESSOR-COLLECTOR KATY INDEPENDENT SCHOOL DISTRICT

DELINQUENT RECEIVABLE


DECEMBER 2012

Balance Delinquent Uncollected Prior Year Balance

Year Ending 09/01/12 Adjustments Collections Refunds 12/31/12

1992 and prior 40,383.77 (1,739.74) (61.41) 0.00 38,582.62 1993 10,342.54 (81.22) (296.10) 0.00 9,965.22 1994 11,354.03 (74.98) (364.51) 0.00 10,914.54 1995 10,107.09 (76.82) (332.21) 0.00 9,698.06 1996 10,984.11 (79.58) (404.92) 0.00 10,499.61 1997 11,539.74 (80.50) (364.53) 0.00 11,094.71 1998 12,397.37 (81.88) (253.31) 0.00 12,062.18 1999 17,780.52 (38.25) (198.57) 0.00 17,543.70 2000 21,597.80 (35.43) (50.85) 0.00 21,511.52 2001 27,228.60 (39.03) (56.03) 0.00 27,133.54 2002 34,530.85 1,601.47 (144.23) 0.00 35,988.09 2003 280,623.64 (71.78) (363.77) 0.00 280,188.09 2004 313,174.50 (1,288.97) (3,209.93) 0.00 308,675.60 2005 367,892.46 (1,285.80) (8.034.72) 0.00 358,571.94 2006 380,639.33 (450.92) (13,289.75) 0.00 366,898.66 2007 423,127.30 (916.57) (32,971.75) 0.00 389,238.98 2008 577,937.25 79,776.27 (125,449.73) 0.00 532,263.79 2009 758,369.51 138,175.38 (141,843.67) 0.00 754,701.22 2010 938,619.99 162,757.51 (189,750.32) 0.00 911,627.18 2011 1,393,000.19 150,405.71 (495,818.82) 0.00 1,047,587.08 2012 2,611,725.77 (92,279.44) (800,958.76) 0.00 1,718,487.57 Total $8,253,356.36 $434,095.43 ($1,814.217.89) $0.00 $6,873,233.90

Minutes of Board Work Study Meeting

Monday, December 10, 2012 Board of Trustees

Katy Independent School District A work study meeting of the Board of Trustees of the Katy Independent School District was held on Monday, December 10, 2012 in the Board Room of the Education Support Complex located at 6301 South Stadium Lane with the following Board members present: Joe Adams (absent from closed session), Henry Dibrell, Rebecca Fox, Charles Griffin, Terry Huckaby, Bryan Michalsky and Bill Proctor.

Others present: Alton Frailey, Bob Bryant, Preeti Burns, Rhonda Ward, Brian Malechuk, Bonnie Holland, Alton Frailey, Preeti Burns, Dr. Christine Caskey, Debbie Decker, Kim Guillaume, Tom Gunnell, Mark Hopkins, Joe Kelley, Kathy McDonald, Peter McElwain, Scooter McMeans, Fran McTigrit, Leah Marchione, Dr. Linda Menius, Bill Moore, Patti Paetow, Mike Robinson, Lenny Schad, Chris Smith, Steve Stanford, Regina Stephenson, Andrea Grooms, Maria Parrie and other interested patrons of the district. Call to Order At 5:31p.m., Board President Rebecca Fox opened the meeting. Closed Meeting Board President Rebecca Fox announced that the Board was convening in closed meeting as authorized by the Texas Open Meetings Act, Texas Government Code Section 551.001 et seq. concerning any or all purposes permitted by the Act including:



2. Consider Board duties

Reconvene from Closed Meeting Meeting called to order: The Board adjourned closed meeting and entered into open meeting at 6:43 p.m. Board President Rebecca Fox called the meeting to order.

Verification of compliance with Open Meetings Law: Superintendent Alton Frailey verified that the provisions of Section 551.001 et seq. of the Texas Government Code were met in accordance with the public notice of the meeting.

Hiring and accepting resignations of professional contractual personnel: Moved by Bryan Michalsky seconded by Terry Huckaby that the Board approves the personnel report as recommended by the Superintendent.

Motion passed by a 6 to 0 vote

Public Hearing Chapter 313 Application of Weatherford Artificial Lift Systems, Inc.: Bob Popinski of Moak Casey, presented. Consent Charter bus services: Regina Stephenson, Director of Purchasing, and Scooter McMeans, Assistant Superintendent for Support Services presented. It was recommended that the Board of Trustees award the contract for Charter Bus Services to J & J Tours and Charters, Evergreen Trails DBA Horizon Coach Lines, Kerrville Bus Lines Inc./Coach USA – Houston, Kerrville Bus Lines Inc./Coach USA – San Antonio, Sierra Stage Coaches DBA Sierra Trailways of Texas, Tour-rific of Texas, and Director’s Choice LLP DBA Director’s Choice Tour and Travel.

Emergency generator replacement at the Mayde Creek water plant: Regina Stephenson, Director of Purchasing, and Kathy McDonald, Director of Maintenance and Operations presented. It was recommended that the Board of Trustees award the contract for the Emergency Generator Replacement at the Mayde Creek Water Plant to C. F. McDonald Electric, Inc.

Board Minutes December 10, 2012

For videos of Board meetings, see www.katyisd.org Page 2

HVAC and refrigeration equipment, parts, supplies, and refrigerant gases: Regina Stephenson, Director of Purchasing, presented. It was recommended that the Board of Trustees award the contract for HVAC and Refrigeration Equipment, Parts, Supplies and Refrigerant Gases to:

AirGas Refrigerants, Inc. Johnson Supply Allison Enterprises, Inc. dba Kleen-Air Filter Service and Sales

Johnstone Supply

Baker Distributing Co. Southwest Texas Equipment Distributors Compressor Products of Houston The Compressor Company Dustless Air Filter Co. Inc. United Air Conditioning Supply

Preventive maintenance and repair service for emergency generators: Regina Stephenson, Director of Purchasing, presented. It was recommended that the Board of Trustees award the contract for Preventive Maintenance and Repair Service on Emergency Generators to Cummins Southern Plains and Waukesha Pearce Industries.

Specialty printing: Regina Stephenson, Director of Purchasing, presented. It was recommended that the Board of Trustees award the contract for Specialty Printing to Texas Education Agency Region IV Service Center, Houston ISD, Page International, and Tri-Star Web Graphics.

Discussion/Action Adopting the Findings concerning the Application for a Limitation on Appraised Value of Property for School District Maintenance and Operations Taxes from Weatherford Artificial Lift Systems, Inc., first qualifying year 2013: Bill Moore, Chief Financial Officer, presented. It was recommended that the Board of Trustees adopt the attached Findings as presented concerning the Application for a Limitation on Appraised Value of Property for School District Maintenance and Operations Taxes from Weatherford Artificial Lift Systems, Inc., first qualifying year 2013. The Board agreed to move this item to consent.

Agreement for a Limitation on Appraised Value of Property for School District Maintenance and Operations Taxes based on Application from Weatherford Artificial Lift Systems, Inc., first qualifying year 2013: Bill Moore, Chief Financial Officer, presented. It was recommended that the Board of Trustees approve the Agreement as presented for a Limitation on Appraised Value of Property for School District Maintenance and Operations Taxes based on Application from Weatherford Artificial Lift Systems, Inc., first qualifying year 2013. The Board agreed to move this item to consent.

Instructional Materials Selection Committee and Allotment Update: Christine Caskey, Chief Academic Officer, presented. It was recommended that the Board of Trustees approves the District Instructional Materials Selection Committees as presented. The Board agreed to move this item to consent.

Attendance Boundary Modification recommendation: Tom Gunnell, Chief Operations Officer, Peter McElwain, Director Architect/Planner, Scott Dunlap, Energy Management Coordinator/Demographer, and Pat Guseman of PASA, presented. It was recommended that the Board of Trustees approve the attendance boundary modification as presented at the November 19 Board Meeting.

Design services associated with Elementary Schools #36 and #37: Peter McElwain, Director Architect/Planner, presented. It was recommended that the Board of Trustees approve the retention of SBWV Architects for design services associated with the construction of Elementary Schools #36 and #37 for a fee of 3.5% and 3.0% respectively of the final construction cost and that funding be provided from 2010 Bond project under-expenditures. The Board agreed to move this item to consent.

Amendment of the existing Section 125 plan documents: Scooter McMeans, Assistant Superintendent for Support Services, and Mike Robinson, Director of Risk Management, presented. It was recommended that the Board of Trustees adopts the Resolution pertaining to the revision of the Section 125 Plan Documents and authorizes execution of the Amendment that modifies these plans.



Interlocal Agreement between Fry Road Municipal Utility District and Katy Independent School District: Kathy McDonald, Director of Maintenance and Operations, presented. It was recommended that the Board of Trustees approve the Interlocal Agreement between Fry Road Municipal Utility District and Katy ISD as presented, related to recreational facility improvements at Sundown Elementary. The Board agreed to move this item to consent.

2013-2014 Instructional Calendar: Bonnie Holland, Assistant Superintendent for Governance, Legal Affairs and Special Programs, presented. It was recommended that the Board of Trustees approve the 2013-14 Instructional Calendar as presented. The Board agreed to move this item to consent.

Calendar waivers related to the Instructional Calendar: Bonnie Holland, Assistant Superintendent for Governance, Legal Affairs and Special Programs, presented. It was recommended that the Board of Trustees approve the submission of calendar-related waivers as presented. The Board agreed to move this item to consent.

Board Policy Update 95 and local policy update: Bonnie Holland, Assistant Superintendent for Governance, Legal Affairs and Special Programs, presented. It was recommended that the Board of Trustees adopt the (LOCAL) policies in Update 95 and the Local Policy Update. The Board agreed to move this item to consent.

Budget amendments: Chris Smith, Business Manager, presented. It was recommended that the Board of Trustees approve the District’s December 2012 budget amendments. The Board agreed to move this item to consent.

Discussion Two year contracts: Bill Proctor, Trustee, presented.

Information Items Future Meetings: Mr. Frailey announced a Regular meeting on Monday, December 17, 2012. Adjournment Board President Rebecca Fox adjourned the meeting at 8:53 p.m. _________________________________ ______________________________ Rebecca Fox Henry Dibrell President, Board of Trustees Secretary, Board of Trustees Approved: January 22, 2013

Minutes of Regular Board Meeting

Monday, December 17, 2012 Board of Trustees

Katy Independent School District A regular meeting of the Board of Trustees of the Katy Independent School District was held on Monday, December 17, 2012 in the Board Room of the Education Support Complex located at 6301 South Stadium Lane with the following Board members present: Joe Adams, Henry Dibrell, Rebecca Fox, Charles Griffin, Terry Huckaby, Bryan Michalsky and Bill Proctor.

Others present: Alton Frailey, Mark Hopkins, Bob Bryant, Preeti Burns, Christine Caskey, Freda Creech, Kim Guillaume, Andrea Grooms, Tom Gunnell, Debbie Harris, Bonnie Holland, Mitzi Jones, Joe Kelley, Kim Lawson, Kathy McDonald, Peter McElwain, Scooter McMeans, Fran McTigrit, Brian Malechuk, Linda Menius, Bill Moore, Patti Paetow, Ben Rolens, Lenny Schad, Chris Smith, Steve Stanford, Regina Stephenson, Kevin Tabor, Maria Parrie and other interested patrons of the district.

Call to Order At 5:40 p.m., Board President Rebecca Fox opened the meeting. Closed Meeting Board President Rebecca Fox announced that the Board was convening in closed meeting as authorized by the Texas Open Meetings Act, Texas Government Code Section 551.001 et seq. concerning any or all purposes permitted by the Act including:

551.071 For the purpose of a private consultation with the Board's attorney on any or all subjects or matters authorized by law.

1. Consultation with an attorney on matters permitted by law.


2. Consider the Level III FNG appeal (FNG-13-002:011-A) regarding a student complaint from SLHS. (commenced 5:40 p.m., concluded 6:32 p.m.)

3. Consider the Level III FNG appeal (FNG-13-014-A) regarding a student complaint from SLHS. (commenced 6:34 p.m., concluded 7:08 p.m.)

4. Consider Board approval to give Notice of Proposed Non-renewal of an employee’s term contract at the end of contract term.

5. Consider Board approval of naming a principal for Morton Ranch High School.


7. Consider Board duties.

Reconvene from Closed Meeting Meeting called to order: The Board adjourned closed meeting and entered into open meeting at 7:39 p.m. Board President Rebecca Fox called the meeting to order.

Verification of compliance with Open Meetings Law: Superintendent Alton Frailey verified that the provisions of Section 551.001 et seq. of the Texas Government Code were met in accordance with the public notice of the meeting.

Level III FNG appeal (FNG-13-002:011-A) regarding a student complaint from SLHS: The Board has deferred action on this item until Monday, January 14, 2013.

Level III FNG appeal (FNG-13-014-A) regarding a student complaint from SLHS: Moved by Bryan Michalsky seconded by Henry Dibrell that the Board deny the Level III FNG Grievance (FNG-13-014-A), thereby upholding the decision of the Level I and Level II Hearing Officers.

Motion passed by a 7 to 0 vote Notice of Proposed Non-renewal of an employee’s term contract at the end of contract term: Moved by Bryan Michalsky seconded by Bill Proctor that the Board approves the recommendation of the Superintendent to propose the non-renewal of the employee, whose name is attached, and give notice to the employee, that it is



proposed that the employee’s term contract be non-renewed at the end of its term. It is further recommended that the Board authorize the Board President to notify the employee of this proposed action to non-renew the employee’s term contract at the conclusion of the 2012-2013 school year pursuant to Section 21.201-21.211 of the Texas Education Code.

Motion passed by a 7 to 0 vote Naming a principal for Morton Ranch High School: Moved by Terry Huckaby seconded by Charles Griffin that the Board approves the Superintendent’s recommendation and names Mr. Lee Crews for Principal of Morton Ranch High School.

Motion passed by a 7 to 0 vote Hiring and accepting resignations of professional contractual personnel: Moved by Joe Adams seconded by Henry Dibrell that the Board approves the personnel report as recommended by the Superintendent.

Motion passed by a 7 to 0 vote Pledge Noah Tumlinson, 5th grader at Nottingham Country Elementary, led the pledges.

Public Hearing Reporting Progress In Meeting Highly Qualified Teacher Requirements Of No Child Left Behind: Debbie Harris, Assistant Superintendent for Human Resources, presented. No speakers signed up. Recognitions Mitzi Jones was recognized as Texas Music Administrator of the Year.

Open Forum Rush Selden, community member, spoke regarding the attendance boundary modification.

Scott Callahan, community member, spoke regarding the attendance boundary modification.

Bryan Byrd, community member, spoke regarding the attendance boundary modification.

Hannah Purris, community member, spoke regarding the attendance boundary modification.

Janet Byrd, community member, spoke regarding the attendance boundary modification.

John McCauley, community member, spoke regarding the attendance boundary modification.

Mike Herfurth, community member, spoke regarding the attendance boundary modification.

Tori Kuykendall, community member, spoke regarding the attendance boundary modification.

Steve Smith, community member, spoke regarding the attendance boundary modification.

Pawan Gupta, community member, spoke regarding the attendance boundary modification.

Laura Lowe, community member, spoke regarding the attendance boundary modification.

Seth Sidhu, community member, spoke regarding the attendance boundary modification.

Vrishal Sawadi, community member, spoke regarding the attendance boundary modification.

Cliff Cornell, community member, spoke regarding the proposed 2013-2014 instructional calendar.

Krista Williams, community member, spoke regarding the attendance boundary modification.

Jill Rotta, community member, did not speak after all.

Kevin Snow, community member, spoke regarding the attendance boundary modification.

Consent Agenda Moved by Joe Adams seconded by Bill Proctor that the Board of Trustees approves the consent agenda as recommended in Items 1 through 18 with the exception of items 11 & 12. Motion passed by a 7 to 0 vote

1. Consider Board approval of a proposal for charter bus services.

2. Consider Board approval of a proposal for emergency generator replacement at the Mayde Creek water plant.



3. Consider Board approval of a proposal for HVAC and refrigeration equipment, parts, supplies, and refrigerant gases.

4. Consider Board approval of a proposal for preventive maintenance and repair service for emergency generators.

5. Consider Board approval of a proposal for specialty printing.

6. Consider Board approval of adopting the Findings concerning the Application for a Limitation on Appraised Value of Property for School District Maintenance and Operations Taxes from Weatherford Artificial Lift Systems, Inc., first qualifying year 2013.

7. Consider Board approval of the Agreement for a Limitation on Appraised Value of Property for School District Maintenance and Operations Taxes based on Application from Weatherford Artificial Lift Systems, Inc., first qualifying year 2013.

8. Consider Board approval of the Instructional Materials Selection Committee and Allotment Update.

9. Consider Board approval of design services associated with Elementary Schools #36 and #37.

10. Consider Board approval of the Interlocal Agreement between Fry Road Municipal Utility District and Katy Independent School District.

11. Consider Board approval of the 2013-2014 Instructional Calendar.

12. Consider Board approval of calendar waivers related to the Instructional Calendar.

13. Consider Board approval of Board Policy Update 95 and local policy update. Update 95

AB (LEGAL) District Name AB (LOCAL) District Name BBFA (EXHIBIT) Ethics CKA (LEGAL) Safety Program/Risk Management CR (LEGAL) Insurance and Annuities Management CRE (LEGAL) Insurance and Annuities Management CV (LEGAL) Facilities Construction DBD (EXHIBIT) Employment Requirements and Restrictions DCA (LEGAL) Employment Practices DF (EXHIBIT) Termination of Employment DFAB (EXHIBIT) Probationary Contracts DFAC (LEGAL) Probationary Contracts DFBB (LEGAL) Term Contracts DFBB (LOCAL) Term Contracts DFBB (EXHIBIT) Term Contracts DFE (LOCAL) Termination of Employment DFFA (EXHIBIT) Reduction in Force DGBA (LOCAL) Personnel-Management Relations DL (LEGAL) Work Load DMA (LEGAL) Professional Development EGA (LEGAL) Curriculum Development EHAA (LEGAL) Basic Instructional Program EHAC (LEGAL) Basic Instructional Program EHBAB (LEGAL) Special Education EHBE (LEGAL) Special Programs EIE (LEGAL) Academic Achievement EIE (LOCAL) Academic Achievement ElF (LEGAL) Academic Achievement FDA (LEGAL) Admissions FNC (LEGAL) Student Rights and Responsibilities FNF (LEGAL) Student Rights and Responsibilities FNG (LOCAL) Student Rights and Responsibilities GF (LOCAL) Public Complaints GKG (LEGAL) Community Relations



Local Updates GKA (LOCAL) Community Relations FDB (LOCAL) Admissions FNF (LOCAL) Student Rights and Responsibilities

14. Consider Board approval of the December 2012 budget amendments.

15. Consider Board approval of the district’s November 2012 financial statements.

16. Consider Board approval of the district’s November 2012 check registers.

17. Consider Board approval of the November 2012 tax report.

18. Consider Board approval of the minutes for the Board meetings held in November 2012.

Moved by Bill Proctor seconded by Terry Huckaby that the Board of Trustees approves the 2013-2014 Instructional Calendar and Calendar waivers related to the Instructional Calendar. Motion passed by a 7 to 0 vote

Action Attendance Boundary Modification: Tom Gunnell, Chief Operations Officer, presented. It was recommended that the Board of Trustees approve the attendance boundary modification as presented at the November 19 Board Meeting. Moved by Henry Dibrell seconded by Joe Adams. Motion passed by a 7 to 0 vote Amendment of the existing Section 125 plan documents: It was recommended that the Board of Trustees adopt the Resolution pertaining to the revision of the Section 125 Plan Documents and authorizes execution of the Amendment that modifies these plans. Moved by Joe Adams seconded by Bryan Michalsky. Motion passed by a 7 to 0 vote

Information Items Reports

Donated Items to Katy Independent School District Board Member training received to date

The Board adjourned to closed session for deliberation on the Level III FNG appeal (FNG-13-002:011-A) regarding a student complaint from SLHS and Level III FNG appeal (FNG-13-014-A) regarding a student complaint from SLHS. Reconvene from Closed Meeting Meeting called to order: The Board adjourned closed meeting and entered into open meeting at 10:45 p.m. Board President Rebecca Fox called the meeting to order.

Level III FNG appeal (FNG-13-002:011-A) regarding a student complaint from SLHS: The Board will consider action at the next regularly scheduled meeting, January 14, 2013.

Level III FNG appeal (FNG-13-014-A) regarding a student complaint from SLHS: Moved by Bryan Michalsky seconded by Henry Dibrell that the Board deny the Level III FNG Grievance (FNG-13-014-A), thereby upholding the decision of the Level I and Level II Hearing Officers.

Motion passed by a 7 to 0 vote Future Meetings: Mr. Frailey announced a Board Work Study on Monday, January 14, 2013 and a Regular meeting on Tuesday, January 22, 2013.



Adjournment Board President Rebecca Fox adjourned the meeting at 10:46 p.m. _________________________________ ______________________________ Rebecca Fox Henry Dibrell President, Board of Trustees Secretary, Board of Trustees Approved: January 22, 2013

PROCLAMATION of the

Board of Trustees

National School Counselor’s Week

Whereas, school counselors are employed in public and private schools to help students reach their full potential; and

Whereas, school counselors are actively committed to helping students explore their abilities, strengths, interests and talents as these traits relate to career awareness and development; and

Whereas, school counselors help parents focus on ways to further the educational, personal and social growth of their children; and

Whereas, school counselors work with teachers and other educators to help students explore their potential and set realistic goals for themselves; and

Whereas, school counselors seek to identify and utilize community resources that can enhance and complement comprehensive school counseling programs and help students become productive members of society; and

Whereas, comprehensive developmental school counseling programs are considered an integral part of the educational process that enables all students to achieve success in school; and

Therefore, the Katy ISD Board of Trustees do hereby proclaim February 4 – 8, 2013, as National School Counseling Week. Signed this 22 day of January, 2013. Rebecca Fox President, Katy ISD Board of Trustees

PROCLAMATION of the

Board of Trustees

National PTA Founders Day

Whereas, Parent-Teacher Associations (PTAs) create a bond between home and school, sharing the mission of student success; and

Whereas, PTAs are instrumental in helping local schools establish and accomplish meaningful goals that focus on the improvement of the overall campus; and

Whereas, the PTA provides valuable services to the school and community through volunteer activities that support instruction and promote parental involvement in their child’s education; and

Whereas, the Katy Council of PTAs has established themselves as respected advocates for children, families and public education in the greater Katy Area;

Therefore, The Katy ISD Board of Trustees, in observance of the National PTA’s founding 115 years ago, does hereby proclaim Monday, February 18, 2013 as National PTA Founder’s Day in Katy Independent School District. Signed this 22 day of January, 2013. Rebecca Fox President, Katy ISD Board of Trustees

Post Office Box 159 • Katy, Texas 77492-0159

TO:

FROM:

SUBJECT:

DATE:

Board of Trustees


Trustee Election Order

January 22, 2013

In May 2013, the terms of the following Board members will expire:

Position 1 - Currently held by Joe M. AdamsPosition 2 - Currently held by Rebecca Fox

Impact Statement: Under Chapter 3 of the Election Code, the Board of Trustees isresponsible for ordering an election to fill these positions. The attached election ordercontains all of the required elements as defined in the election code.

Support of District Focus: 3) Community Engagement and 4) Effective and EfficientOperations

"k "k "k ÿ "k ÿ "k "k "k "ÿ "k "k

It is recommended" that the Katy ISD Board of Trustees order and election to be heldon Saturday, May 11, 2013 to fill the following positions:

Position 1 - Currently held by Joe M. AdamsPosition 2 - Currently held by Rebecca Fox


Alton Frailey ÿ,Superintendent

Bonnie HollandAsst. Superintendent ofAdministration, Governanceand Legal Affairs

Katy Independent School District ORDER OF ELECTION

An election is hereby ordered to be held on Saturday, May 11, 2013, for the purpose of electing School Board Trustees to fill the following terms of office:

Position 1 3-year term currently held by Joe M. Adams Position 2 3-year term currently held by Rebecca Fox

Voting on Election Day will be held from 7:00 a.m. to 7:00 p.m. at 10 voting sites as indicated on Attachment A. Early voting by personal appearance will be conducted each weekday between the hours of 7:00 a.m. and 6:00 p.m. beginning on Monday, April 29, 2013, and ending on Tuesday, May 7, 2013, at the following four locations:

Katy ISD Education Support Complex 6301 S. Stadium Ln. Katy, TX 77494

Maurice Wolfe Elem. 502 Addicks-Howell Houston, TX 77079

Taylor High School 20700 Kingsland Blvd. Katy, TX 77450

Cinco Ranch High School 23440 Cinco Ranch Blvd. Katy, TX 77494

A special Saturday early voting by personal appearance will also be held at these same four locations on Saturday, May 4, 2013, from 7:00 a.m. to 6:00 p.m. Applications for ballot by mail shall be mailed to:

Bill Haskett, Early Voting Clerk Katy ISD, Education Support Complex 6301 South Stadium Lane Katy, Texas 77494

Applications for ballot by mail must be received no later than the close of business on Friday, May 3, 2013. Issued this the 22nd day of January, 2013. __________________________________ Rebecca Fox, President

Attachment A

Katy Independent School District May 11, 2013 School Board Election

List of Polling Places (Election Day)

KATY ISD VOTING

PRECINCT

COUNTY PRECINCT(S)

POLLING PLACE

1

Ft. Bend – 3006, 3038, 3142, 3143, 3144

Seven Lakes High School 9251 S. Fry Rd. Katy, Texas 77494

2

Ft. Bend - 3004, 3122, 3130, 3132, 3133

Cinco Ranch High School 23440 Cinco Ranch Blvd. Katy, Texas 77494

3

Ft. Bend - 3014

Harris – 639 Ward A Waller - 420

City of Katy Municipal Building 910 Avenue C Katy, Texas 77493

4 Harris County – 119, 149,

639 Ward B Waller – 418 & 419

Katy Municipal Court Building 5432 Franz Road Katy, Texas 77493

5 Harris – 362, 619, 644

Memorial Parkway Jr. High 21203 Highland Knolls Katy, Texas 77450

6 Harris – 400, 509, 522, 547, 751, 772, 993

Taylor High School 20700 Kingsland Blvd. Katy, Texas 77450

7 Harris - 95, 120, 283, 461, 711

Maurice Wolfe Elementary 502 Addicks - Howell Houston, Texas 77079

8 Harris - 305, 603, 618, 720,

813, 877 1005, 1061

Morton Ranch High School 21000 Franz Road Katy, Texas 77449

9 Harris – 463, 521, 589, 804 879, 992, 1006

Mayde Creek High School 19202 Groschke Road Houston, Texas 77084

10 Harris - 398, 517, 523, 621, 622, 771

Bear Creek Elementary 4815 Hickory Downs Houston, Texas 77084

Katy Independent School District 選舉命令

特頒此令於 2013 年 5 月 11 日，星期六舉行選舉，選出學校董事會董事，遞補以下職位的任期：

職位 1 目前由 Joe M. Adams 任職的 3 年任期職位職位2 目前由 Rebecca Fox 任職的 3 年任期職位

選舉日的投票時間為早上 7:00 點至晚上 7:00 點，於附件 A 所列 10 處投票所投票。可自 2013 年 4 月29 日，星期一開始至 2013 年 5 月 7 日，星期二為止的週間早上 7:00 點至下午 6:00 點，親臨以下四處地點，提早投票：





可於 2013 年 5 月4 日，星期六的早上 7:00 點至下午 6:00 點，親臨以上所列四處的相同地點，於星期六提早投票。要透過郵件申請選票，應將郵件寄至以下地址：


申請選票的郵件應於 2013 年 5 月 3 日，星期五下班前寄達。 2013 年 1 月 22 日頒布。 __________________________________ Rebecca Fox，主席

附件 A

Katy Independent School District 2013 年 5 月 13 日學校董事會選舉

投票地點清單（選舉日）

KATY ISD 投票專區

郡專區

投票地點

1

Ft. Bend –

3006 、30


2 Ft. Bend -

3004 、3


3 Ft. Bend - 3014

Harris – 639 Ward A Waller - 420


4 Harris County – 119 、149

639 Ward B Waller – 418 & 419


5 Harris – 362 、619、6


6 Harris – 400 、50 751 、772、993


7 Harris - 95 、120、2 461 、711


8 Harris - 305 、60

813 、877、1005、1061


9 Harris – 463 、521 879 、992、1006


10 Harris - 398 、517、 523 、621、62


Distrito Escolar Independiente de Katy

ORDEN DE ELECCIÓN Por medio del presente se ordena una elección para celebrarse el sábado 11 de mayo de 2013 con el propósito de elegir a Síndicos de la Junta Escolar para ocupar los siguientes términos de cargos:

Puesto 1 término de 3 años ocupado actualmente por Joe M. Adams Puesto 2 término de 3 años ocupado actualmente por Rebecca Fox

La votación el Día de la Elección será de 7:00 a.m. a 7:00 p.m. en 10 lugares de votación según se indica en el Anexo A. La votación anticipada en persona se llevará a cabo de lunes a viernes de 7:00 a.m. a 6:00 p.m. a partir del lunes 29 de abril hasta el martes 7 de mayo de 2013 en los siguientes cuatro lugares:





Una votación anticipada especial en sábado también se llevará a cabo en estos mismos cuatro lugares el sábado 4 de mayo de 2013 de 7:00 a.m. a 6:00 p.m. Las solicitudes de boletas para votar por correo se deben enviar a:


Las solicitudes de boletas para votar por correo se deben recibir a más tardar al cierre de oficinas del viernes 3 de mayo de 2013. Emitido este día 22 de enero de 2013. __________________________________ Rebecca Fox, Presidente

Anexo A

Distrito Escolar Independiente de Katy Elección de la Junta escolar, 11 de mayo de 2013

Lista de lugares de votación (Día de la Elección)

PRECINTO ELECTORAL DE

KATY ISD PRECINTO(S) DEL CONDADO LUGAR DE VOTACIÓN

1 Ft. Bend – 3006, 3038, 3142, 3143, 3144


2 Ft. Bend – 3004, 3122, 3130, 3132, 3133

Cinco Ranch High School

23440 Cinco Ranch Blvd. Katy, Texas 77494

3 Ft. Bend – 3014

Harris – 639 Ward A Waller – 420


4 Harris – 119, 149, 639 (Ward B) Waller – 418 & 419


5 Harris – 362, 619, 644

Memorial Parkway Junior High 21203 Highland Knolls Katy, Texas 77450

6 Harris – 400, 509, 522, 547, 751, 772, 993


7 Harris – 95, 120, 283, 461, 711

Maurice Wolfe Elementary 502 Addicks-Howell Rd. Houston, Texas 77079

8 Harris – 305, 603, 618, 720,

813, 877, 1005. 1061


9 Harris – 463, 521, 589, 804, 879, 992, 1006


10 Harris – 398, 517, 523, 621, 622, 771


hu Học Chánh Độc Lập Katy LỆNH BẦU CỬ

Theo đây, chúng tôi yêu cầu tổ chức một cuộc bầu cử vào thứ Bảy, 11 tháng Năm, 2013, để bầu chọn Ban Quản Trị Học Đường cho các vị trí sau đây:

Vị trí số 1 nhiệm kỳ 3 năm hiện do ông Joe M. Adams đảm trách Vị trí số 2 nhiệm kỳ 3 năm hiện do ông Rebecca Fox đảm trách

Thủ tục bỏ phiếu vào Ngày Bầu Cử sẽ diễn ra từ 7 giờ sáng tới 7 giờ tối tại 10 địa điểm bỏ phiếu như được trình bày trong Phụ Lục A. Thủ tục đích thân tới bỏ phiếu sớm sẽ được tiến hành vào mỗi ngày trong tuần từ 7 giờ sáng tới 6 giờ chiều, bắt đầu từ thứ hai, 29 tháng Tư, 2013, và kết thúc vào thứ Ba, 7 tháng Năm, 2013, tại bốn địa điểm sau đây:





Thủ tục đích thân tới bỏ phiếu sớm đặc biệt vào thứ Bảy cũng sẽ diễn ra tại bốn địa điểm sau đây vào thứ Bảy, 4 tháng Năm, 2013, từ 7 giờ sáng tới 6 giờ chiều. Đơn xin lá phiếu bầu qua thư xin gửi qua đường bưu điện tới:


Đơn xin lá phiếu bầu qua thư phải tới nơi trễ nhất là cuối giờ làm việc ngày thứ Sáu, 3 tháng Năm, 2013. Ban hành ngày 22 tháng một, 2013. __________________________________ Rebecca Fox, Chủ Tịch

Phụ Lục A

Khu Học Chánh Độc Lập Katy Cuộc Bầu Cử của Ban Quản Trị Học Đường 11 tháng Năm, 2013

Danh sách Các Địa Điểm Bỏ Phiếu (Ngày Bầu Cử) PHÂN KHU BẦU

CỬ CỦA KATY ISD

QUẬN CÁC PHÂN KHU BẦU CỬ

ĐỊA ĐIỂM BỎ PHIẾU

1 Ft. Bend – 3006, 3038, 3142, 3143, 3144

Seven Lakes High School 9251 South Fry Road Katy, Texas 77494

2 Ft. Bend - 3004, 3122, 3130,

3132, 3133


3

Ft. Bend - 3014

Harris – 639 Ward A Waller – 420


4

Harris – 119, 149,

639 Ward B Waller – 418 & 419

Katy Municipal Court Building 5432 Franz Rd. Katy, Texas 77493

5 Harris – 362, 619, 644


6 Harris – 400, 509, 522,

547, 751, 772


PHÂN KHU BẦU CỬ CỦA

KATY ISD

QUẬN CÁC PHÂN KHU BẦU CỬ

ĐỊA ĐIỂM BỎ PHIẾU

7 Harris – 95, 120, 283,

461, 711


8 Harris - 305, 603, 618, 720,

813, 877, 879 (W. of Fry Rd.)


9 Harris – 463, 521, 589, 804,

879 (E. of Fry Rd.)


10 Harris - 398, 517,

523, 621, 622, 771


To:

From:

Subject:

Date:

Board of Trustees


Report of Donated Items for the Katy Independent SchoolDistrict

January 22, 2013

Items and/or monies are periodically donated to the Katy Independent SchoolDistrict by various groups and/or individuals. In compliance with Board PolicyCDC (Local), the Superintendent, or his designee, shall evaluate all offers ofgifts to the District. Gifts accepted by the District are reported to the Boardduring regularly scheduled meetings. The attached listing of item, donor andestimated value is submitted for your review.


Alton L. FraileySuperintendent

Donations to the Katy Independent School District Approved: January 22, 2013

CAMPUS/

DEPT DESCRIPTION OF

DONATION DONOR PARTNERS

IN EDUCATION

REPORTED VALUE

2

RRE Cash donation to purchase smart boards

Rylander Elementary School PTA Katy, TX

$5,000.00

SE Cash donation Don McGill Toyota/Katy Katy, TX

$200.00

BDJH Cash donation to purchase athletic equipment

Mr. Todd Niebruegge Katy, TX

$100.00

BDJH Cash donation to purchase athletic equipment

BP Fabric of America Fund Houston, TX

yes $150.00

BDJH Cash donation for the Science Olympiad

Mr. Hong Chuan Li Katy, TX

$1,000.00

BDJH Cash donation for the Science Olympiad

Katy Orthodontics Katy, TX

$500.00

WCJH Cash donation for special education supplies

Frontier Title Company Katy, TX

$500.00

WMJH Cash donation to the Band Steadfast Construction Services Katy, TX

$100.00

MCHS Cash donation to the NJROTC

Mr. & Mrs. David O’Donnell Houston, TX

$250.00

MCHS Cash donation BP Fabric of America Fund Houston, TX

yes $300.00

Total Cash $8,100.00

Donations to the Katy Independent School District Approved: January 22, 2013

CAMPUS/

DEPT DESCRIPTION OF

DONATION DONOR PARTNERS

IN EDUCATION

REPORTED VALUE

3

Non—Cash Donations

Based on estimated values provided by the donors, the total for non-cash donations is:

$0

Grand Total (cash and noncash)

$8,100.00

Post Office Box 159 . Katy, Texas 77492-0159

TO:

FROM:

SUBJECT:

DATE:

Board of Trustees


Quarterly Investment Report

January 22, 2013

Attached for your review is the Investment Report for the quarter ended November 30, 2012.

The Public Funds Investment Act (the "Act") requires the reporting of this investmentinformation including the disclosure of market values for the beginning and ending of theperiod. The Act also requires this information to be submitted to the board not less thanquarterly. This report must be signed by the investment officers of the District and state thecompliance of the investment portfolio as it relates to our investment policy and the PublicFunds Investment Act.

In connection with these reporting requirements, it is our opinion that the investment portfolio isin compliance with the investment strategy expressed in our current investment policies andthe attached reports comply with those policies.



ChristopheJr SmithBusiness Manager

Sharri B utterfiel(:l"Budget and Treasury Coordinator

*

Quarter Quarter Quarter Quarter Period Period

Beginning Beginning Ending Ending Quarter Weighted Weighted

Book Market Book Market Balance Average Average

Value Value Value Value Change Maturity Yield

General Operating Fund $172,996,690 $172,996,690 $154,782,094 $154,782,094 -$18,214,596 1 0.424%Food Service Fund $9,273,978 $9,273,978 $7,987,498 $7,987,498 -$1,286,480 1 0.243%Debt Service Fund $44,573,042 $44,573,042 $45,897,846 $45,897,846 $1,324,804 1 0.376%Capital Projects Fund $109,292,744 $109,292,744 $87,259,818 $87,259,818 -$22,032,926 1 0.330%Internal Service Fund $4,052,953 $4,052,953 $4,293,326 $4,293,326 $240,373 1 0.224%Agency Fund $178,214 $178,214 $177,659 $177,659 -$555 1 0.497%

Total $340,367,621 $340,367,621 $300,398,241 $300,398,241 -$39,969,380 1 0.377%

Benchmark Yields:

3 mo T-Bill 0.092%6 mo T-Bill 0.143%District 0.377%

Total Interest: $283,330

* Weighted Average Maturity (WAM) calculated in days.


QUARTERLY STATEMENT OF MARKET VALUES OF INVESTMENT SECURITIES

SEPTEMBER 2012 - NOVEMBER 2012

*Beginning Beginning Ending Ending Change Weighted Weighted

Book Market Book Market Market Average Average

Value Value Value Value Value Maturity Yield

General Operating Fund $146,291,049 $146,291,049 $154,782,094 $154,782,094 $8,491,045 1 0.431%Food Service Fund $13,601,507 $13,601,507 $7,987,498 $7,987,498 -5,614,008 1 0.306%Debt Service Fund $44,870,038 $44,870,038 $45,897,846 $45,897,846 1,027,808 1 0.372%Capital Projects Fund $109,309,815 $109,309,815 $87,259,818 $87,259,818 -22,049,998 1 0.365%Internal Service Fund $5,169,411 $5,169,411 $4,293,326 $4,293,326 -876,085 1 0.281%Agency Fund $178,361 $178,361 $177,659 $177,659 -702 1 0.498%

Total $319,420,181 $319,420,181 $300,398,241 $300,398,241 -$19,021,941 1 0.397%

Benchmark Yields:

3 mo T-Bill 0.092% 6 mo T-Bill 0.143% District 0.397%

Total Earning: $89,965



MONTHLY STATEMENT OF MARKET VALUES OF INVESTMENT SECURITIES

NOVEMBER 2012

Period Beginning Period Ending GENERAL OPERATING FUND PORTFOLIO HOLDINGS November 2012

11/1/2012 11/30/2012 November, 2012

Trade DateSettlement

Date Security Rating Coupon Maturity Call Date Par CUSIPPurch Yield

Purch Price Orig Princ

Beginning Period Book Value

Beginning Market Value

Ending Period Book Value

Ending Market Price

Ending Market Value

Earned or

Accrued Interest

011/30/2012 TexPool AAAm (S&P) 0.156% 12/1/2012 n/a 9,466,954 n/a 0.156% 100 7,337,563 7,337,563 7,337,563 9,466,954 100.00 9,466,954 2,003.8711/30/2012 PB cash NR 0.400% 12/1/2012 n/a 19,146,144 n/a 0.400% 100 18,544,224 18,544,224 18,544,224 19,146,144 100.00 19,146,144 11,395.6711/30/2012 PB Strategic NR 0.500% 12/1/2012 n/a 110,151,310 n/a 0.500% 100 104,393,589 104,393,589 104,393,589 110,151,310 100.00 110,151,310 30,688.9411/30/2012 Lone Star AAAm (S&P) 0.153% 12/1/2012 n/a 16,017,686 n/a 0.153% 100 16,015,674 16,015,674 16,015,674 16,017,686 100.00 16,017,686 2,011.99

146,291,049 146,291,049 154,782,094 154,782,094

liquid 154,782,094 Treas Agency 0 8,491,0450-3 months 0 pools 25,484,640 13-6 months CDs 0 0.431%6-9 months PB cash 19,146,144 46,100.47

9-12 months PB strategic 110,151,310

Period Beginning Period Ending FOOD SERVICE FUND PORTFOLIO HOLDINGS November 2012

11/1/2012 11/30/2012 November, 2012


Date Security Coupon Maturity Call Date Par CUSIPPurch Yield





Ending Market Price

Ending Market Value

011/30/2012 TexPool AAAm (S&P) 0.156% 12/1/2012 n/a 3,074,338 n/a 0.156% 100 10,143,824 10,143,824 10,143,824 3,074,338 100.00 3,074,338 879.8811/30/2012 PB cash NR 0.400% 12/1/2012 n/a 4,913,160 n/a 0.400% 100 3,457,683 3,457,683 3,457,683 4,913,160 100.00 4,913,160 1,386.05

13,601,507 13,601,507 7,987,498 7,987,498

liquid 7,987,498 Treas Agency 0 (5,614,008)0-3 months 0 pools 3,074,338 13-6 months 0 money markets 0 0.306%

PB cash 4,913,160 2,265.93

PB strategic 0

Period Beginning Period Ending DEBT SERVICE FUND PORTFOLIO HOLDINGS November 2012

11/1/2012 11/30/2012 November, 2012







Ending Market Price

Ending Market Value

011/30/2012 TexPool AAAm (S&P) 0.156% 12/1/2012 n/a 2,693,604 n/a 0.156% 100 1,695,023 1,695,023 1,695,023 2,693,604 100.00 2,693,604 225.8111/30/2012 PB cash NR 0.400% 12/1/2012 n/a 174,019 n/a 0.400% 100 250,476 250,476 250,476 174,019 100.00 174,019 56.9711/30/2012 PB Strategic NR 0.500% 12/1/2012 n/a 28,840,260 n/a 0.500% 100 28,736,358 28,736,358 28,736,358 28,840,260 100.00 28,840,260 11,782.2311/30/2012 Lone Star AAAm (S&P) 0.153% 12/1/2012 n/a 14,189,963 n/a 0.153% 100 14,188,180 14,188,180 14,188,180 14,189,963 100.00 14,189,963 1,782.41

44,870,038 44,870,038 45,897,846 45,897,846

liquid 45,897,846 Treas Agency 0 1,027,8080-3 months 0 pools 16,883,567 13-6 months CD 0 0.372%6-9 months PB cash 174,019 13,847.42


Period Beginning Period Ending CAPITAL PROJECT FUND PORTFOLIO HOLDINGS November 2012

11/1/2012 11/30/2012 November, 2012







Ending Market Price

Ending Market Value

11/30/2012 TexPool AAAm (S&P) 0.156% 12/1/2012 n/a 34,317,024 n/a 0.156% 100 60,374,097 60,374,097 60,374,097 34,317,024 100.00 34,317,024 7,592.6311/30/2012 PB cash NR 0.400% 12/1/2012 n/a 1 n/a 0.400% 100 1 1 1 1 100.00 1 0.0011/30/2012 PB Series 10-D BABs CapNR 0.500% 12/1/2012 n/a 0 n/a 0.500% 100 1,374 1,374 1,374 0 100.00 0 0.4911/30/2012 PB Series 12A Cap NR 0.500% 12/1/2012 n/a 52,942,793 n/a 0.500% 100 48,934,343 48,934,343 48,934,343 52,942,793 100.00 52,942,793 19,385.06

109,309,815 109,309,815 87,259,818 87,259,818

liquid 87,259,818 Treas Agency 0 (22,049,998)0-3 months 0 pools 34,317,024 13-6 months money markets 0 0.365%

PB cash 1 26,978.18

PB strategic 52,942,793

Period Beginning Period Ending INTERNAL SERVICE FUND PORTFOLIO HOLDINGS November 2012

11/1/2012 11/30/2012 November, 2012







Ending Market Price

Ending Market Value

011/30/2012 TexPool AAAm (S&P) 0.156% 12/1/2012 n/a 2,094,497 n/a 0.156% 100 4,651,677 4,651,677 4,651,677 2,094,497 100.00 2,094,497 363.1511/30/2012 PB cash NR 0.400% 12/1/2012 n/a 2,198,828 n/a 0.400% 100 517,734 517,734 517,734 2,198,828 100.00 2,198,828 336.87

5,169,411 5,169,411 4,293,326 4,293,326

liquid 4,293,326 Treas Agency 0 (876,085)0-3 months 0 pools 2,094,497 13-6 months 0 money markets 0 0.281%

PB cash 2,198,828 700.02

PB strategic 0

Period Beginning Period Ending AGENCY FUND PORTFOLIO HOLDINGS November 2012

11/1/2012 11/30/2012 November, 2012







Ending Market Price

Ending Market Value

Earned or

Accrued Interest

n/a 011/30/2012 TexPool AAAm (S&P) 0.156% 12/1/2012 n/a 1,110 n/a 0.156% 100 1,884 1,884 1,884 1,110 100.00 1,110 0.27

7/20/2012 11/30/2012 PB Strategic NR 0.500% 12/1/2012 n/a 176,549 n/a 0.500% 100 176,477 176,477 176,477 176,549 100.00 176,549 72.33

178,361 178,361 177,659 177,659

Diversification by Maturity

liquid 177,659 Treas Agency 0 (702)0-3 months 0 pools 1,110 13-6 months money markets 0 0.498%

9-12 months CD 0 0.27

PB strategic 176,549

Diversification by Maturity Diversification by Market Sector


Diversification by Market Sector




liquid0-3 months3-6 months6-9 months9-12 months

TreasAgency

pools

CDs

PB cash

PBstrategic

liquid

0-3 months

3-6 months

TreasAgency

pools

moneymarkets

PB cash

PBstrategic


TreasAgency

pools

CD

PB cash

PBstrategic

liquid

0-3 months

3-6 months

TreasAgency

pools

moneymarkets

PB cash

PBstrategic

liquid

0-3 months

3-6 months

TreasAgencypools

moneymarketsCD

liquid

0-3 months

3-6 months

TreasAgency

pools

moneymarkets

PB cash

PBstrategic

1st Quarter Report excel12/6/2012 2:43 PM




General Operating Fund $159,362,686 $159,362,686 $146,291,049 $146,291,049 -$13,071,636 1 0.432%Food Service Fund $10,894,291 $10,894,291 $13,601,507 $13,601,507 2,707,216 1 0.225%Debt Service Fund $44,661,337 $44,661,337 $44,870,038 $44,870,038 208,701 1 0.376%Capital Projects Fund $109,320,596 $109,320,596 $109,309,815 $109,309,815 -10,781 1 0.315%Internal Service Fund $4,398,953 $4,398,953 $5,169,411 $5,169,411 770,458 1 0.189%Agency Fund $178,286 $178,286 $178,361 $178,361 75 1 0.496%

Total $328,816,148 $328,816,148 $319,420,181 $319,420,181 -$9,395,967 1 0.372%

Benchmark Yields:






OCTOBER 2012

Period Beginning Period Ending GENERAL OPERATING FUND PORTFOLIO HOLDINGS October 2012

10/1/2012 10/31/2012 October, 2012







Ending Market Price

Ending Market Value

Earned or

Accrued Interest


159,362,686 159,362,686 146,291,049 146,291,049

liquid 146,291,049 Treas Agency 0 (13,071,636)0-3 months 0 pools 23,353,237 13-6 months CDs 0 0.432%6-9 months PB cash 18,544,224 50,658.02


Period Beginning Period Ending FOOD SERVICE FUND PORTFOLIO HOLDINGS October 2012

10/1/2012 10/31/2012 October, 2012







Ending Market Price

Ending Market Value

010/31/2012 TexPool AAAm (S&P) 0.166% 11/1/2012 n/a 10,143,824 n/a 0.166% 100 9,072,743 9,072,743 9,072,743 10,143,824 100.00 10,143,824 1,385.4810/31/2012 PB cash NR 0.400% 11/1/2012 n/a 3,457,683 n/a 0.400% 100 1,821,547 1,821,547 1,821,547 3,457,683 100.00 3,457,683 885.59

10,894,291 10,894,291 13,601,507 13,601,507

liquid 13,601,507 Treas Agency 0 2,707,2160-3 months 0 pools 10,143,824 13-6 months 0 money markets 0 0.225%

PB cash 3,457,683 2,271.07

PB strategic 0

Period Beginning Period Ending DEBT SERVICE FUND PORTFOLIO HOLDINGS October 2012

10/1/2012 10/31/2012 October, 2012







Ending Market Price

Ending Market Value


44,661,337 44,661,337 44,870,038 44,870,038

liquid 44,870,038 Treas Agency 0 208,7010-3 months 0 pools 15,883,203 13-6 months CD 0 0.376%6-9 months PB cash 250,476 14,298.44


Period Beginning Period Ending CAPITAL PROJECT FUND PORTFOLIO HOLDINGS October 2012

10/1/2012 10/31/2012 October, 2012







Ending Market Price

Ending Market Value

10/31/2012 TexPool AAAm (S&P) 0.166% 11/1/2012 n/a 60,374,097 n/a 0.166% 100 60,365,603 60,365,603 60,365,603 60,374,097 100.00 60,374,097 8,494.2210/31/2012 PB cash NR 0.400% 11/1/2012 n/a 1 n/a 0.400% 100 0 0 0 1 100.00 1 0.4410/31/2012 PB Series 10-D BABs CapNR 0.500% 11/1/2012 n/a 1,374 n/a 0.500% 100 1,374 1,374 1,374 1,374 100.00 1,374 0.5810/31/2012 PB Series 12A Cap NR 0.500% 11/1/2012 n/a 48,934,343 n/a 0.500% 100 48,953,619 48,953,619 48,953,619 48,934,343 100.00 48,934,343 20,724.07

109,320,596 109,320,596 109,309,815 109,309,815

liquid 109,309,815 Treas Agency 0 (10,781)0-3 months 0 pools 60,374,097 13-6 months money markets 0 0.315%

PB cash 1 29,219.31


Period Beginning Period Ending INTERNAL SERVICE FUND PORTFOLIO HOLDINGS October 2012

10/1/2012 10/31/2012 October, 2012







Ending Market Price

Ending Market Value

010/31/2012 TexPool AAAm (S&P) 0.166% 11/1/2012 n/a 4,651,677 n/a 0.166% 100 3,614,757 3,614,757 3,614,757 4,651,677 100.00 4,651,677 367.5010/31/2012 PB cash NR 0.400% 11/1/2012 n/a 517,734 n/a 0.400% 100 784,196 784,196 784,196 517,734 100.00 517,734 301.15

4,398,953 4,398,953 5,169,411 5,169,411

liquid 5,169,411 Treas Agency 0 770,4580-3 months 0 pools 4,651,677 13-6 months 0 money markets 0 0.189%

PB cash 517,734 668.65

PB strategic 0

Period Beginning Period Ending AGENCY FUND PORTFOLIO HOLDINGS October 2012

10/1/2012 10/31/2012 October, 2012







Ending Market Price

Ending Market Value

Earned or

Accrued Interest



178,286 178,286 178,361 178,361


liquid 178,361 Treas Agency 0 750-3 months 0 pools 1,884 13-6 months money markets 0 0.496%

9-12 months CD 0 0.31









TreasAgency

pools

CDs

PB cash

PBstrategic

liquid

0-3 months

3-6 months

TreasAgency

pools

moneymarkets

PB cash

PBstrategic


TreasAgency

pools

CD

PB cash

PBstrategic

liquid

0-3 months

3-6 months

TreasAgency

pools

moneymarkets

PB cash

PBstrategic

liquid

0-3 months

3-6 months

TreasAgencypools

moneymarketsCD

liquid

0-3 months

3-6 months

TreasAgency

pools

moneymarkets

PB cash

PBstrategic





General Operating Fund $172,996,690 $172,996,690 $159,362,686 $159,362,686 -$13,634,005 1 0.408%Food Service Fund $9,273,978 $9,273,978 $10,894,291 $10,894,291 1,620,313 1 0.198%Debt Service Fund $44,573,042 $44,573,042 $44,661,337 $44,661,337 88,295 1 0.379%Capital Projects Fund $109,292,744 $109,292,744 $109,320,596 $109,320,596 27,852 1 0.311%Internal Service Fund $4,052,953 $4,052,953 $4,398,953 $4,398,953 346,000 1 0.200%Agency Fund $178,214 $178,214 $178,286 $178,286 73 1 0.496%

Total $340,367,621 $340,367,621 $328,816,148 $328,816,148 -$11,551,473 1 0.362%

Benchmark Yields:






SEPTEMBER 2012

Period Beginning Period Ending GENERAL OPERATING FUND PORTFOLIO HOLDINGS September 2012

9/1/2012 9/30/2012 September, 2012







Ending Market Price

Ending Market Value

Earned or

Accrued Interest


172,996,690 172,996,690 159,362,686 159,362,686

liquid 159,362,686 Treas Agency 0 (13,634,005)0-3 months 0 pools 40,159,193 13-6 months CDs 0 0.408%6-9 months PB cash 8,708,756 53,569.59


Period Beginning Period Ending FOOD SERVICE FUND PORTFOLIO HOLDINGS September 2012

9/1/2012 9/30/2012 September, 2012







Ending Market Price

Ending Market Value

09/30/2012 TexPool AAAm (S&P) 0.157% 10/1/2012 n/a 9,072,743 n/a 0.157% 100 8,826,700 8,826,700 8,826,700 9,072,743 100.00 9,072,743 1,152.689/30/2012 PB cash NR 0.400% 10/1/2012 n/a 1,821,547 n/a 0.400% 100 447,279 447,279 447,279 1,821,547 100.00 1,821,547 369.07

9,273,978 9,273,978 10,894,291 10,894,291

liquid 10,894,291 Treas Agency 0 1,620,3130-3 months 0 pools 9,072,743 13-6 months 0 money markets 0 0.198%

PB cash 1,821,547 1,521.75

PB strategic 0

Period Beginning Period Ending DEBT SERVICE FUND PORTFOLIO HOLDINGS September 2012

9/1/2012 9/30/2012 September, 2012







Ending Market Price

Ending Market Value


44,573,042 44,573,042 44,661,337 44,661,337

liquid 44,661,337 Treas Agency 0 88,2950-3 months 0 pools 15,618,527 13-6 months CD 0 0.379%6-9 months PB cash 68,719 12,553.56


Period Beginning Period Ending CAPITAL PROJECT FUND PORTFOLIO HOLDINGS September 2012

9/1/2012 9/30/2012 September, 2012







Ending Market Price

Ending Market Value

9/30/2012 TexPool AAAm (S&P) 0.157% 10/1/2012 n/a 60,365,603 n/a 0.157% 100 60,357,806 60,357,806 60,357,806 60,365,603 100.00 60,365,603 7,796.939/30/2012 PB cash NR 0.400% 10/1/2012 n/a 0 n/a 0.400% 100 0 0 0 0 100.00 0 0.009/30/2012 PB Series 10-D BABs CapNR 0.500% 10/1/2012 n/a 1,374 n/a 0.500% 100 1,373 1,373 1,373 1,374 100.00 1,374 0.569/30/2012 PB Series 12A Cap NR 0.500% 10/1/2012 n/a 48,953,619 n/a 0.500% 100 48,933,564 48,933,564 48,933,564 48,953,619 100.00 48,953,619 20,054.74

109,292,744 109,292,744 109,320,596 109,320,596

liquid 109,320,596 Treas Agency 0 27,8520-3 months 0 pools 60,365,603 13-6 months money markets 0 0.311%

PB cash 0 27,852.23


Period Beginning Period Ending INTERNAL SERVICE FUND PORTFOLIO HOLDINGS September 2012

9/1/2012 9/30/2012 September, 2012







Ending Market Price

Ending Market Value

09/30/2012 TexPool AAAm (S&P) 0.157% 10/1/2012 n/a 3,614,757 n/a 0.157% 100 3,757,122 3,757,122 3,757,122 3,614,757 100.00 3,614,757 354.019/30/2012 PB cash NR 0.400% 10/1/2012 n/a 784,196 n/a 0.400% 100 295,831 295,831 295,831 784,196 100.00 784,196 251.34

4,052,953 4,052,953 4,398,953 4,398,953

liquid 4,398,953 Treas Agency 0 346,0000-3 months 0 pools 3,614,757 13-6 months 0 money markets 0 0.200%

PB cash 784,196 605.35

PB strategic 0

Period Beginning Period Ending AGENCY FUND PORTFOLIO HOLDINGS September 2012

9/1/2012 9/30/2012 September, 2012







Ending Market Price

Ending Market Value

Earned or

Accrued Interest



178,214 178,214 178,286 178,286


liquid 178,286 Treas Agency 0 730-3 months 0 pools 1,884 13-6 months money markets 0 0.496%

9-12 months CD 0 0.30









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