SISD’s financial report accepted
San Jacinto News Times - December 2007

SHEPHERD – An annual audit of the Shepherd Independent School District was approved by board members Monday night.
The audit was conducted by Hereford, Lynch, Sellars and Kirkham, of Cleveland, and gives an overview of the district’s financial statements for the fiscal year ended Aug. 31, 2007.
Highlighting the report, accountants said the assets of the district exceeded its liabilities at the close of the most recent fiscal year by $15.5 million (net assets). Of this amount, $5.4 million (unrestricted net assets) may be used to meet the district’s ongoing obligations to students and creditors.
According to the report, the district’s total net assets decreased by $59,781.
As of the close of the current fiscal year, the district’s governmental funds reported combined ending fund balances of $18.6 million, an increase of $13.3 million in comparison with the prior year.
At the end of the current fiscal year, unreserved fund balance for the general fund was $1.1 million or nine percent of the total general fund expenditures.
The district’s total bonded debt increased by $13.2 million primarily due to the addition of new bonds, according to the report.
The district’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements and 3) notes to the financial statements.
The largest portion of the district’s net assets $10 million (64 percent) reflects its investment in capital assets such as capitalized bond and other debt issue costs, land, infrastructure, buildings and improvements, furniture and equipment, construction in progress, less any related debt used to acquire those assets that are still outstanding.
Net assets of $132,115 are restricted for state and federal programs, debt service and scholarships. The remaining balance of unrestricted net assets ($5.4 million) may be used to meet the district’s ongoing obligations to students and creditors.
The district is able to report positive balances in all three categories of net assets.
The district’s revenues are generated primarily from two sources. Grants and contributions (program and general revenues totaling $11.6 million) represent 75 percent of total revenues and property taxes ($3 million) represent 20 percent of total revenues. The remaining five percent is generated from investment earnings, charges for services and miscellaneous revenues. Revenues increased primarily due to the increase in grants and property taxes.
The primary functional expense of the district is instruction ($8.4 million) which represents 54 percent of total expenses. Plant maintenance and operations ($1.5 million) represents 10 percent of total expenses. The remaining functional categories of expenses are individually less than seven percent of total expenditures.
Expenditures increased primarily in instruction, plant maintenance and operations and security and monitoring services, according to the report.
As of the end of the current fiscal year, the district’s governmental funds reported combined ending fund balances of $18.6 million an increase of $13.3 million in comparison with the prior year.
The general fund is the chief operating fund of the district. At the end of the current fiscal year, unreserved fund balance of the general fund was $1.1 million while total fund balance reached $5.1 million. Unreserved fund balance represents nine percent of total general fund expenditures, while total fund balance represents 42 percent of that same amount.
The fund balance of the district’s general fund decreased by $51,814 during the current fiscal year.
The decrease in fund balance was due to an increase in total expenditures while revenues remained similar to the prior year.
The fund balance of the district’s capital projects fund increased by $13.3 million during the current fiscal year. The increase in fund balance was due to an increase in capital related debt issued (regular bonds).
Major capital asset events during the current fiscal year included the purchase of two vehicles; the purchase of a John Deere mower; the purchase of one bus and the purchase of Parrish House.
In other business, board members approved a resolution appointing board member Susan Bailes to the San Jacinto County Appraisal District Board.
The January board meeting date was changed from Jan. 21 to Jan. 14.