Port Neches-Groves ISD...NDE (Non-Destructive Examination) of welds: Liquid Penetrant Testing (LP...

Port Neches-Groves ISD Regular Meeting Monday, January 14, 2013 7:00 PM

Closed Session

If, during the course of the meeting, discussion of any item on the agenda should be held in closed meeting, the Board will conduct a closed meeting in

accordance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Before any closed meeting is convened, the presiding officer will

publicly identify the section or sections of the Act authorizing the closed meeting. All final votes, actions, or decisions will be taken in open meeting.

Port Neches-Groves Independent School District

Meeting of Board of Trustees January 14, 2013 7:00 PM West Groves Education Center

The subjects to be discussed or considered or upon which any formal action may be taken are as listed below. Items do not have to be

taken in the order shown on this meeting notice. Items on the consent agenda will be enacted with one motion. There will be no separate

discussion of consent items unless a Board member so requests, in which event the item will be removed from the consent agenda and

considered as an item on the regular agenda.

1. Recognition of Board of Trustees: TASB School Board Recognition Month

2. Opening

A. Call to Order and Establishment of Quorum 3

B. Prayer and Pledges

C. Patron Presentations 4

3. Consent Agenda

A. Consider Approval of December 2012 Minutes 5

B. Consider Approval of Disbursements 31

C. Consider Approval of Resolution to Suspend Portions of EIA(LOCAL) for the 2012–13

School Year Only

52

D. Consider Approval of Lone Star Investment Pool Quarterly Report Ending November 2012 54

E. Consider Approval of Insurance Renewal with TASB Risk Management Fund for Equipment

Breakdown, General Liability, School Professional Legal Liability, Automobile Coverage and

Crime Coverage for a one year period beginning March 30, 2013

57

F. Consider Approval of Personnel Recommendations 64

4. Regular Agenda

A. Consider Approval of Annual Financial Report for 2011-12 65

B. Discuss the Deployment or Specific Occasions for Implementation of Security Personnel or

Devices

123

C. Consider Approval of the Deployment or Specific Occasions for Implementation of Security

Personnel or Devices

124

D. Consider Approval to Pursue Proposals for Demolition of Bank Building 125

E. Report: Budget - Bond, General Fund, Tax Report 126

F. Consider Approval of Transactions that Cost $25,000 or More 135

G. Board Member Requests for Future Agenda Items 140

H. Adjournment

To Call Meeting to Order I call this meeting of the Port Neches-Groves Independent School District to order. Let the record show that a quorum of board members is present, that this meeting has been duly called, and that notice of this meeting has been posted in accordance with the Texas Open Meetings Act, Texas Government Code Chapter 551.

3

PORT NECHES-GROVES INDEPENDENT SCHOOL DISTRICT

BOARD DOCUMENT

AGENDA ITEM: Paton Presentations You have five minutes to make your comments to the Board. The Board Secretary will keep your time and will indicate how much time you have left and when your time is up. Please be aware that the Board will not entertain comments on individual personnel or students during patron presentations. In addition, the Board is not allowed to discuss or comment on issues brought up in open forum presentations.

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Minutes of Regular Meeting The Board of Trustees Port Neches-Groves ISD

A regular meeting of the Board of Trustees of Port Neches-Groves ISD was held December 10, 2012, beginning at 7:00 p.m. in the West Groves Education Center, 5840 W. Jefferson, Groves.

Present: Rusty Brittain, Darren McCutcheon, Melanie Miller, Lana Parker, Eric Sullivan, Jim

Walters Absent: Rodney Balsamo

1. Opening

A. Call to Order Vice President Walters called the meeting to order at 7:03 p.m.

B. Prayer & Pledges

Vice President Walters led the prayer and pledges.

C. Patron Presentations

None

2. Consent Agenda

A. Minutes Approval of November 2012 Board meeting minutes.

B. Disbursements Approval of disbursements for period of November 1, 2012, through November 30, 2012

C. Board Member Cont. Ed.

Approval of board member continuing education report.

Board Member

Level I Orientation

to the TX Ed. Code (for new

members)

Level II Team of 8

Level III Cont. Ed. Based on

Needs Assessment

*Total Training

Hours Received

Balsamo, Rodney NA 3 0 3 Brittain, Rusty NA 3 0 3 McCutcheon, Darren NA 0 0 0 Miller, Melanie NA 3 12.25 15.25 Parker, Lana NA 3 8 11 Sullivan, Eric 2 3 12.5 17.5 Walters, Jim NA 3 0 3

*Hours Required: Experienced board members – off year requirement = 8, legislative year = 10 New Board Members = 16. Members have until next election to complete training.

D. $25,000 Purchase Orders

There were none.

E. Personnel Approval of the following personnel recommendation for the 2012-13 school year:

Position/Campus Applicant Replacing Counselor – Port Neches-Groves High School

Clifford Carlin Donna DeRon

Motion by Miller, seconded by McCutcheon, for approval of the consent action agenda. (Motion passed 6-0)

5

December 10, 2012 Page 2 of 2

4. Regular Agenda

Votes

A. Amend Bus Purchase Order

Motion by Miller, seconded by Parker, to amend purchase requisition 9371213028 as shown below:

Description/Price (without belts) & Intended Use

*Capacity Amended Price to Include Seat Belts

Thomas School Bus 2 @ $95,676 This bus will be used during the school day for regular routes and extra-curricular trips.

72

**3-Point Lap Shoulder Belts: $102,697

Thomas School Bus 2 @ $99,837 Includes 12 seats with integrated seats designed for Pre-K students. The seat belt system pulls out from the seat for small students. This enables the bus to serve multiple campuses. The other 10 seats are regular seats. Adding lap belts is not an option when integrated seats are ordered

71

**3-Point Lap Shoulder Belts: $103,901

4-2 Against: Brittain,

McCutcheon

B. Property Insurance

Motion by Miller, seconded by Parker, approval of the renewal with Frost Insurance Company to provide property insurance coverage for PNGISD for one year beginning March 30, 2013 at a cost of $1,260,938.52. (proposals attached)

6-0

C. Report: Career & Tech. Ed.

Dr. Brenda Duhon used a PowerPoint to provide an overview of Career & Technical Education programs. (PowerPoint attached) This report was in response to the following 2012-13 goal: The Superintendent shall provide leadership to campus principals in an effort to uphold the high academic standards of PNGISD. Career and Tech course offerings will be maximized to the greatest extent possible, including courses that may be substituted for the 4th year math and science requirements. Viability of local facilities and the ability to work with other ISD’s and/or higher education will also be explored. Evidence of Attainment: Board will receive a report documenting course options for 4th year Math and Science students at the December Board Meeting, along with all certificate offerings in CTE compared to the previous year. PEIMS reports will be given at the beginning of each semester showing two year trends in student enrollment in CTE courses.

NA

D. Budget reports Cheryl Hernandez reviewed the following reports: (reports attached) - Bond expenditures - Bond Investment Report on the 2007, 2008, & 2009 Issues (all interest

earnings to date are allocated to projects at this time) - Income Summary – General Fund and Tax Office Report.

NA

E. Future Agenda Items

There were none. NA

F. Adjournment At 7:47 p.m. Vice President Walters adjourned the meeting. NA Attachments: Insurance Proposals, CTE Report, Budget Reports

______________________________ __________________________________ Rodney Balsamo, President Melanie Miller, Secretary

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12/5/2012

1

Port Neches-Groves High SchoolReport to the BoardDecember 10 2012December 10, 2012

2010-2011 2011-2012 2012-20132092 2421 24622092 2421 2462

Increase = 41Increase 41

PEIMS Comparison Document

15

12/5/2012

2

Instructional Practices in Education and Training replaces “Peerand Training replaces Peer Tutoring”

Currently, Anatomy & Physiology is the CTE course offered as a 4th-year science option.y p

Statistics & Risk Management was offered as a 4th-year math course option. Not enough students signed up to make the class

Statistics & Risk Management will replace “Survey of Math” next year as the 4th mathSurvey of Math next year as the 4th math credit.

16

12/5/2012

3

Dual Credit Courses with LITSemester Course Course Name # StudentsFall 2012 HART 1401 Principles of Refrigeration 8Spring 2013 HART 1407 Residential Air Conditioning 8Fall 2012 CJSA 1322 Intro to Criminal Justice 18Fall 2012 CJSA 1342 Criminal Investigation 74Spring 2013 CJSA 1325 Criminology 15Spring 2013 HMSY 1338 Homeland Security Emergency

Communications Management20

Articulated Credit Courses with LIT2012-2013 AUMT 1301

AUMT 1305Intro & Theory/Automotive Tech. Intro to Automotive Technology

1814

CTE Certifications 2011-2012Cosmetology, Operator License 1Cosmetology, Operator License 1Nurse Aide, Registered 18Cosmetology Shampoo Permits 0EPA Refrigerant 11OSHA Safety Card 11CPR/First Aid 57American Welding Society (AWS) ShieldedAmerican Welding Society (AWS) Shielded Metal Arc 2*

Microsoft Office Specialist (Word) 8*

*New certifications 2011-2012

17

12/5/2012

4

2011-2012AWS Welding Shielded Metal ArcAWS Welding—Shielded Metal Arc

Microsoft Office Specialist (Word)

2012-2013Microsoft Office Specialist (Excel)Microsoft Office Specialist (Excel)OSHA Basic Safety

Ashland & PN-GISD Partnership

18

12/5/2012

5

Donated $10,000 in the form of educational grants to the Port Neches campuses! (To be announced January, 2013)

Donated 20” and 4” pipe to the welding department ($3,000)

NDE (Non-Destructive Examination) of welds: Liquid Penetrant Testing (LP Testing) is utilized throughout the industry as an initial test of the 1st pass of a weld. Ashland has offered LP testing for our students’ welds.

Ashland will pay for radiography (x-ray) service then furnish x-rays and associated documentation for review of student’s welding skills. This testing is part of a welder’s certification as well as a process used to gensure the mechanical integrity of pressure retaining systems in plants and other industrial applications.

An Ashland designer/draftsman has prepared a set of 12 fabrication drawings for loading dock handrails needed at their plant. Ashland’s designer/draftsman and the Maintenance Director will meet with Mr. Brown g /before moving forward. The tentative plan is to allow the students to tour the plant and show them the handrails after Ashland Mechanics install them.

19

12/5/2012

6

Presented Hazard Recognition Plus (HRP) training to 130 CTE HVAC, electrical, welding, and auto shop students. HRP is a simple, systematic thought process that improves their

ability to recognize, eliminate, control, and protect themselves from hazards…ALL Ashland employees receive this training.

Basic Premise: Safety is more than a set of rules to be followed, but rather a process of thinking through and identifying safety hazards both in the work environment and in our homes.

Supplying the students who attended the HRP training with pp y g gsafety glasses (150 pair) and ear plugs (300 pair) for the students to use at school or at home.

I am working with Ashland and Decision Point, Inc., to develop a HRP training model for other high schools across the nation.

Future Plans◦ Ashland HVAC Tech to meet with our students and

discuss Industrial HVAC Refrigeration.◦ Ashland Instrument and Electrical Foreman to meet with

our electrical students and discuss the electrical trade.

SEP Grant Application AssistanceWith th i t f A hl d b itt d SEP*◦ With the assistance of Ashland, we submitted a SEP* application for 5 white-fleet vehicles totaling $200,000.

◦ *Supplemental Environmental Project (Texas Commission on Environmental Quality)

20

12/5/2012

7

Implemented a Safety Training Plan:CareerSafe Basic Training/Certification for the following classes: Small

Engine Technology Computer Maintenance Elec TechnicianEngine Technology, Computer Maintenance, Elec. Technician, Cosmetology, Marketing Dynamics, and BCEP. (2012-2013 = 165 students)

Continue the OSHA 10-Hour General Industry Training for students in HVAC but will expand the training/certification to our auto shop and welding student.

Computer lab added to PNMS CTE Robotics teams added (Huntsman support) PN-GHS students working with IEC Simulations owned

by Gary Cliett to film FCCLA competition video training segments.

•CTE website highlights CTE activities.

•CTE semester newsletters continue to be published and posted on the CTE website.

•Participation in PNCAP (Port Neches Community Action yAdvisory Panel)

• Participation in the Sabine Neches CAP

21

School Budgeted

Approved Increase

(Decrease)

Allocated to Prog Mgr

FeesAdjusted Budget

November Expenditures

Total Expenditures Encumbered

Remaining Balance

PNGHS 46,042,203.00$ 291,128.85$ (1,446,738.00)$ 44,886,593.85$ -$ 44,809,893.85$ 76,700.00$ -$

Stadium 10,206,567.00 880,396.90 (387,747.00) 10,699,216.90 - 10,699,216.90 - -

GMS 28,712,929.00 214,810.68 (962,088.00) 27,965,651.68 - 27,963,776.68 1,875.00 -

PNMS 28,155,303.00 (403,924.30) (915,836.00) 26,835,542.70 11,934.03 26,818,992.70 16,550.00 -

GE 972,116.00 438,503.77 (33,693.00) 1,376,926.77 - 1,343,042.74 33,884.03 -

PNE 816,805.00 (36,614.71) (19,084.00) 761,106.29 - 727,222.26 33,884.03 -

RE 831,526.00 344,047.92 (28,192.00) 1,147,381.92 - 1,123,803.73 23,578.19 -

TE 767,390.00 386,217.60 (31,257.00) 1,122,350.60 - 1,122,350.60 - -

VBE 898,253.00 175,961.54 (29,021.00) 1,045,193.54 - 1,045,193.54 - -

WE 1,076,854.00 (165,396.86) (17,968.00) 893,489.14 23,956.28 893,489.14 - -

WGEC 901,250.00 (607,923.46) (10,624.00) 282,702.54 - 282,702.54 - -

AEC 34,544.00 34,544.00 - 34,544.00 - -

Buses 2,703,171.00 - 2,703,171.00 52,702.00 1,686,191.00 391,026.00 625,954.00

Prg Mgr - - 3,882,248.00 3,882,248.00 - 3,882,248.00 - -

Unalloc 915,633.00 125,385.12 1,041,018.12 - 26,025.85 193,800.00 821,192.27

TOTAL 123,000,000.00$ 1,677,137.05$ -$ 124,677,137.05$ 88,592.31$ 122,458,693.53$ 771,297.25$ 1,447,146.27$

Port Neches-Groves Independent School DistrictBond Balances

November 30, 2012

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Total amount received on June 11, 2009 45,700,000.00$

Interest Earnings - Unallocated to Projects 119,328.83 Deposit for CD Maturing 11,888,450.09

Expenditures/Vendor Payments 43,506,722.59 Withdrawal to Purchase CD's 12,000,000.00

Investment Balance 2,201,056.33$

Lone Star Investment Pool

BOND INVESTMENT REPORT

2009 Issue


November 30, 2012

23


BOARD DOCUMENT

MEETING DATE: January 14, 2013

AGENDA ITEM: Consider Approval of Disbursements

The monthly list of bills paid for the period December 1, 2012, to December 31, 2012, is

detailed in the attachment. If members of the Board have questions regarding any of the

disbursements, we would request that they contact our office prior to the Board meeting

and list the check number and the payee for the item in question. We will pull the

voucher and supporting documentation to give a detailed answer to any questions during

the public Board meeting.

Recommendation: It is recommended that the Board of Trustees of the Port Neches-

Groves Independent School District approve the disbursements for

the period December 1, 2012, to December 31, 2012.

Resource Personnel: Cheryl Hernandez, Business Manager

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3frdtl01.p PORT NECHES-GROVES ISD 9:46 AM 01/10/13 05.12.10.00.00-10.2-010073 MONTHLY CASH DISB -General Fund (Dates: 12/01/12 - 12/31/12) PAGE: 1

COMME CHECK CHECK

VENDOR NUMBER DATE AMOUNT

4IMPRINT, INC. 66140 12/14/2012 385.28

Totals for GENOP 385.28

Totals for 4IMPRINT, INC. 385.28

A & H DATA MANAGEMENT 66141 12/14/2012 195.00


Totals for A & H DATA MANAGEMENT 195.00

ABBO, JOEL 66010 12/07/2012 103.00


Totals for ABBO, JOEL 103.00

ABEL, PATRICK 66244 12/19/2012 294.00


Totals for ABEL, PATRICK 294.00

ABSHERE, NORMAN JR 66258 12/19/2012 112.00


Totals for ABSHERE, NORMAN JR 112.00

ABSHIRE, CODY 66011 12/07/2012 332.50


Totals for ABSHIRE, CODY 332.50

ACCENT SERVICES, INC. 66142 12/14/2012 160.00


Totals for ACCENT SERVICES, INC. 160.00

ACE GLASS & MIRROR INC 66012 12/07/2012 52.50


Totals for ACE GLASS & MIRROR INC 52.50

ACE IMAGEWEAR 66013 12/07/2012 94.47


66261 12/21/2012 192.10


Totals for ACE IMAGEWEAR 286.57

ACME ARCHITECTURAL HARDWARE 66143 12/14/2012 70.43


66322 12/21/2012 45.96


Totals for ACME ARCHITECTURAL HARDWARE 116.39

ADVANCED GRAPHICS 66144 12/14/2012 687.00


Totals for ADVANCED GRAPHICS 687.00

ALAMO GLASS OF PORT ARTHUR 66014 12/07/2012 2,206.64

Totals for GENOP 2,206.64

Totals for ALAMO GLASS OF PORT ARTHUR 2,206.64

ALIBRIS, INC. 66015 12/07/2012 64.94


66145 12/14/2012 199.33


Totals for ALIBRIS, INC. 264.27

ALL PHASE ELECTRIC SUPPLY CO. 66016 12/07/2012 201.91


66146 12/14/2012 227.45


Totals for ALL PHASE ELECTRIC SUPPLY CO. 429.36

ALLIED WASTE SERVICES #862 66017 12/07/2012 389.85


66147 12/14/2012 395.70


66323 12/21/2012 634.27 Totals for GENOP 634.27

32


COMME CHECK CHECK


Totals for ALLIED WASTE SERVICES #862 1,419.82

AMAZON.COM 66018 12/07/2012 369.14


66262 12/21/2012 44.97


66324 12/21/2012 77.97


Totals for AMAZON.COM 492.08

AMERICAN EXPRESS 66006 12/05/2012 3,124.36


Totals for AMERICAN EXPRESS 3,124.36

AMERICAN PIZZA PARTNERS, L.P. 66019 12/07/2012 563.00


Totals for AMERICAN PIZZA PARTNERS, L.P. 563.00

ARNOLD, ROBERT 66020 12/07/2012 700.00


Totals for ARNOLD, ROBERT 700.00

AT&T 66021 12/07/2012 11,718.79


Totals for AT&T 11,718.79

ATHLETIC FIELD SPECIALISTS, LLC 66148 12/14/2012 13,700.00


Totals for ATHLETIC FIELD SPECIALISTS, L 13,700.00

AUFFURTH, PAULA 66022 12/07/2012 350.00


66263 12/21/2012 300.00


Totals for AUFFURTH, PAULA 650.00

AUTOMATED LOGIC - HOUSTON 66149 12/14/2012 301.38


Totals for AUTOMATED LOGIC - HOUSTON 301.38

BAKER DISTRIBUTING CO. 66023 12/07/2012 3,037.46


66150 12/14/2012 64.91


Totals for BAKER DISTRIBUTING CO. 3,102.37

BAKER, HAROLD 66024 12/07/2012 162.14


Totals for BAKER, HAROLD 162.14

BARBERS HILL HIGH SCHOOL SOFTBALL 66245 12/19/2012 250.00


Totals for BARBERS HILL HIGH SCHOOL SOFT 250.00

BARNETT FENCE COMPANY 66151 12/14/2012 3,930.00


Totals for BARNETT FENCE COMPANY 3,930.00

BATES, AIMEE 66007 12/05/2012 60.06


Totals for BATES, AIMEE 60.06

BAYES ACHIEVEMENT CNTR 66025 12/07/2012 17,188.58


Totals for BAYES ACHIEVEMENT CNTR 17,188.58

BEAN, CHRIS 66259 12/19/2012 112.00


Totals for BEAN, CHRIS 112.00

BEAUTY BASICS 66026 12/07/2012 185.00 Totals for GENOP 185.00

33


COMME CHECK CHECK


BEAUTY BASICS 66264 12/21/2012 88.35


Totals for BEAUTY BASICS 273.35

BILL CLARK PEST CONTROL 66152 12/14/2012 325.00


Totals for BILL CLARK PEST CONTROL 325.00

BLICK ART MATERIALS 66027 12/07/2012 1,397.62


Totals for BLICK ART MATERIALS 1,397.62

BLUE BELL CREAMERIES, IN 66028 12/07/2012 3,108.15


Totals for BLUE BELL CREAMERIES, IN 3,108.15

BMI EDUCATIONAL SERVICES 66029 12/07/2012 67.85


Totals for BMI EDUCATIONAL SERVICES 67.85

BORDEN DAIRY 66030 12/07/2012 18,359.08


Totals for BORDEN DAIRY 18,359.08

BRENHAM H.S. MEN'S SOCCER 66246 12/19/2012 295.00


Totals for BRENHAM H.S. MEN'S SOCCER 295.00

BREVELL, MARK 66257 12/19/2012 406.00


Totals for BREVELL, MARK 406.00

BRIDGE CITY ATHLETIC BOOSTER CLUB 66031 12/07/2012 225.00


Totals for BRIDGE CITY ATHLETIC BOOSTER 225.00

BSN SPORTS INC. 66032 12/07/2012 570.14


66265 12/21/2012 1,555.90


Totals for BSN SPORTS INC. 2,126.04

BUCHANAN, BROOK 66247 12/19/2012 236.00


Totals for BUCHANAN, BROOK 236.00

BURKE, SABRINA 66033 12/07/2012 89.41


66153 12/14/2012 83.30


Totals for BURKE, SABRINA 172.71

C & H DISTRIBUTORS, LLC 66034 12/07/2012 551.83


Totals for C & H DISTRIBUTORS, LLC 551.83

CANON FINANCIAL SERVICES, INC. 66266 12/21/2012 601.62


Totals for CANON FINANCIAL SERVICES, INC 601.62

CARDIAC SCIENCE CORP. 66154 12/14/2012 1,508.88


Totals for CARDIAC SCIENCE CORP. 1,508.88

CARTER'S EDUCATIONAL TRA 66155 12/14/2012 5,893.25


66267 12/21/2012 2,310.00


Totals for CARTER'S EDUCATIONAL TRA 8,203.25

CARY, JOE 66248 12/19/2012 366.30 Totals for GENOP 366.30

34


COMME CHECK CHECK


Totals for CARY, JOE 366.30

CDW COMPUTER CENTERS INC 66035 12/07/2012 1,035.20


66156 12/14/2012 416.01


66268 12/21/2012 564.01


66325 12/21/2012 316.72


Totals for CDW COMPUTER CENTERS INC 2,331.94

CENAGE LEARNING 66157 12/14/2012 1,178.10


Totals for CENAGE LEARNING 1,178.10

CERTIFIED LABS 66036 12/07/2012 193.25


Totals for CERTIFIED LABS 193.25

CHILD1ST PUBLICATIONS, LLC 66037 12/07/2012 196.79


Totals for CHILD1ST PUBLICATIONS, LLC 196.79

CLASSIC FORMS AND PRODUCTS, INC. 66158 12/14/2012 1,252.10


Totals for CLASSIC FORMS AND PRODUCTS, I 1,252.10

CMS IP TECHNOLOGIES 66269 12/21/2012 2,960.00


Totals for CMS IP TECHNOLOGIES 2,960.00

COASTAL WELDING SUPPLY, 66159 12/14/2012 472.50


66270 12/21/2012 1,556.00


Totals for COASTAL WELDING SUPPLY, 2,028.50

COBURN PORT ARTHUR 66038 12/07/2012 319.42


66160 12/14/2012 383.88


66326 12/21/2012 398.84


Totals for COBURN PORT ARTHUR 1,102.14

COCA-COLA ENTERPRISES 66161 12/14/2012 720.00


Totals for COCA-COLA ENTERPRISES 720.00

COMMERCIAL FILTRATION MEDIAS INC 66039 12/07/2012 2,593.25


Totals for COMMERCIAL FILTRATION MEDIAS 2,593.25

COMPLETE ATHLETE 66040 12/07/2012 527.00


66162 12/14/2012 2,372.24


66271 12/21/2012 9,233.88


Totals for COMPLETE ATHLETE 12,133.12

CONTRAX FURNISHINGS, LLC 66041 12/07/2012 702.00


Totals for CONTRAX FURNISHINGS, LLC 702.00

COOLEY, JEFFREY 66163 12/14/2012 69.00

Totals for GENOP 69.00 Totals for COOLEY, JEFFREY 69.00

35


COMME CHECK CHECK


CORMIER, CELESTE 66249 12/19/2012 136.00


Totals for CORMIER, CELESTE 136.00

CYNMAR CORP. 66164 12/14/2012 226.30


66327 12/21/2012 35.29


Totals for CYNMAR CORP. 261.59

D LOWE'S TOOLS 66272 12/21/2012 1,409.40


Totals for D LOWE'S TOOLS 1,409.40

DEES, JOHNNY 66042 12/07/2012 163.25


Totals for DEES, JOHNNY 163.25

DEFENSE FINANCE AND ACCOUNTING SVC (DFAS) COL 66165 12/14/2012 5,932.75


Totals for DEFENSE FINANCE AND ACCOUNTIN 5,932.75

DELANEY EDUCATIONAL ENTERPRISES LLC 66043 12/07/2012 1,149.71


Totals for DELANEY EDUCATIONAL ENTERPRIS 1,149.71

DELL CORP. 66044 12/07/2012 10,770.25


66166 12/14/2012 705.23


66273 12/21/2012 136.79


Totals for DELL CORP. 11,612.27

DISNEY EDUCATIONAL PRODU 66045 12/07/2012 1,524.00


Totals for DISNEY EDUCATIONAL PRODU 1,524.00

DOWNS, SHEREE 66250 12/19/2012 171.50


Totals for DOWNS, SHEREE 171.50

DRAGO SUPPLY COMPANY 66046 12/07/2012 729.61


Totals for DRAGO SUPPLY COMPANY 729.61

EAN HOLDINGS LLC 66047 12/07/2012 920.95


66167 12/14/2012 553.45


66328 12/21/2012 336.00


Totals for EAN HOLDINGS LLC 1,810.40

ECS LEARNING SYSTEMS 66274 12/21/2012 84.98


Totals for ECS LEARNING SYSTEMS 84.98

ENTERGY 66168 12/14/2012 50,960.30


66329 12/21/2012 23,212.10


Totals for ENTERGY 74,172.40

ERIC ARMEN INC 66048 12/07/2012 541.17


Totals for ERIC ARMEN INC 541.17

ETA 66049 12/07/2012 31.96 Totals for GENOP 31.96

36


COMME CHECK CHECK


ETA 66169 12/14/2012 33.48


Totals for ETA 65.44

EVANS, PAUL 66050 12/07/2012 110.00


66275 12/21/2012 110.00


Totals for EVANS, PAUL 220.00

F & F SPORTS SHOP, INC. 66051 12/07/2012 3,338.45


Totals for F & F SPORTS SHOP, INC. 3,338.45

FARRELL, DONNA M., LSSP 66052 12/07/2012 1,990.17


66170 12/14/2012 3,123.47


66276 12/21/2012 2,141.10


Totals for FARRELL, DONNA M., LSSP 7,254.74

FARRIS, GLENN 66277 12/21/2012 185.00


Totals for FARRIS, GLENN 185.00

FASTENAL COMPANY 66171 12/14/2012 16.31


Totals for FASTENAL COMPANY 16.31

FIRST CALL 66054 12/07/2012 1,985.27


66173 12/14/2012 543.94


Totals for FIRST CALL 2,529.21

FLATT STATIONERS INC 66278 12/21/2012 2,895.00


Totals for FLATT STATIONERS INC 2,895.00

FLOWERS BAKING COMPANY OF HOUSTON 66174 12/14/2012 2,523.84


Totals for FLOWERS BAKING COMPANY OF HOU 2,523.84

FOURNET, JESSE 66330 12/21/2012 140.00


Totals for FOURNET, JESSE 140.00

FRANKLIN, BYRON 66175 12/14/2012 60.00


Totals for FRANKLIN, BYRON 60.00

FRED MILLER'S 66055 12/07/2012 47.40


66176 12/14/2012 493.90


66279 12/21/2012 132.95


Totals for FRED MILLER'S 674.25

G-BLAST SERVICE & SUPPLY INC. 66280 12/21/2012 405.00


Totals for G-BLAST SERVICE & SUPPLY INC. 405.00

GALLIER, SAM III 66177 12/14/2012 60.00


Totals for GALLIER, SAM III 60.00

GEORGE JO ANN 66178 12/14/2012 250.00 Totals for GENOP 250.00

37


COMME CHECK CHECK


Totals for GEORGE JO ANN 250.00

GNISEC 66056 12/07/2012 172.50


Totals for GNISEC 172.50

GONZALES, MIKE 66179 12/14/2012 201.52


Totals for GONZALES, MIKE 201.52

GOPHER 66057 12/07/2012 181.55


66180 12/14/2012 176.79


66281 12/21/2012 982.80


Totals for GOPHER 1,341.14

GRAINGER 66058 12/07/2012 55.83


66181 12/14/2012 37.86


Totals for GRAINGER 93.69

GRIZZLY IMPORTS INC. 66059 12/07/2012 124.25


Totals for GRIZZLY IMPORTS INC. 124.25

GROVES ELEMENTARY SCHOOL 66182 12/14/2012 280.00


Totals for GROVES ELEMENTARY SCHOOL 280.00

GROVES, CITY OF 66282 12/21/2012 2,569.25


Totals for GROVES, CITY OF 2,569.25

GUARDIAN FORCE SECURITY 66060 12/07/2012 1,031.00


66183 12/14/2012 149.00


Totals for GUARDIAN FORCE SECURITY 1,180.00

HERNANDEZ OFFICE SUPPLY, INC. 66062 12/07/2012 778.12


66184 12/14/2012 1,520.61


66283 12/21/2012 108.37


Totals for HERNANDEZ OFFICE SUPPLY, INC. 2,407.10

HERNANDEZ, CHERYL 66008 12/05/2012 95.68


66061 12/07/2012 46.07


Totals for HERNANDEZ, CHERYL 141.75

HIGHSMITH 66063 12/07/2012 134.86


Totals for HIGHSMITH 134.86

HOPKINS, DARREN 66284 12/21/2012 146.10


Totals for HOPKINS, DARREN 146.10

HOUGHTON MIFFLIN COMPANY 66185 12/14/2012 429.08


Totals for HOUGHTON MIFFLIN COMPANY 429.08

HUMBLE I S D ATHLETICS 66251 12/19/2012 175.00 Totals for GENOP 175.00

38


COMME CHECK CHECK


Totals for HUMBLE I S D ATHLETICS 175.00

HUMBLE, SEAN 66064 12/07/2012 88.30


Totals for HUMBLE, SEAN 88.30

INTERNATIONAL TRUCKS OF HOUSTON 66187 12/14/2012 2,772.62


Totals for INTERNATIONAL TRUCKS OF HOUST 2,772.62

INTERQUEST GROUP INC 66186 12/14/2012 440.00


Totals for INTERQUEST GROUP INC 440.00

INTERSTATE BATTERY OF BEAUMONT - PORT ARTHUR 66285 12/21/2012 170.90


Totals for INTERSTATE BATTERY OF BEAUMON 170.90

INTERSTATE BILLING SERVICE, INC 66188 12/14/2012 931.83


Totals for INTERSTATE BILLING SERVICE, I 931.83

ISI COMMERCIAL REFRIGERA 66065 12/07/2012 4,400.19


Totals for ISI COMMERCIAL REFRIGERA 4,400.19

J K CHEVROLET 66287 12/21/2012 2,811.81


Totals for J K CHEVROLET 2,811.81

JAGUAR EDUCATIONAL SOMERSET MEDIA 66066 12/07/2012 322.59


Totals for JAGUAR EDUCATIONAL SOMERSET M 322.59

JANPAK INC. 66067 12/07/2012 4,507.04


66286 12/21/2012 564.28


66331 12/21/2012 1,798.54


Totals for JANPAK INC. 6,869.86

JANPAK SUPPLY SOLUTIONS 66068 12/07/2012 4,318.06


Totals for JANPAK SUPPLY SOLUTIONS 4,318.06

JASON'S DELI 66069 12/07/2012 527.20


Totals for JASON'S DELI 527.20

JEFFERSON COUNTY APPRAISAL DISTRICT 66070 12/07/2012 99,628.18


Totals for JEFFERSON COUNTY APPRAISAL DI 99,628.18

JERSEY VILLAGE HIGH SCHOOL 66252 12/19/2012 150.00


Totals for JERSEY VILLAGE HIGH SCHOOL 150.00

JOHN DEERE LANDSCAPES, INC. 66189 12/14/2012 272.00


Totals for JOHN DEERE LANDSCAPES, INC. 272.00

JONES, JON 66190 12/14/2012 110.00


66288 12/21/2012 85.00


Totals for JONES, JON 195.00

KEEL, ROBERT 66071 12/07/2012 93.85


Totals for KEEL, ROBERT 93.85 KELLY, JANICE 66289 12/21/2012 1,830.00

39


COMME CHECK CHECK



Totals for KELLY, JANICE 1,830.00

KEYES, RICKY JR 66191 12/14/2012 30.57


Totals for KEYES, RICKY JR 30.57

KIMBALL MIDWEST 66192 12/14/2012 309.00


Totals for KIMBALL MIDWEST 309.00

KNIGHT, ANDY 66290 12/21/2012 75.00


Totals for KNIGHT, ANDY 75.00

KOMMERCIAL KITCHENS 66193 12/14/2012 4,374.90


Totals for KOMMERCIAL KITCHENS 4,374.90

LAING, ERIC 66009 12/05/2012 86.00


Totals for LAING, ERIC 86.00

LAKESHORE 66194 12/14/2012 38.39


Totals for LAKESHORE 38.39

LAKESHORE LEARNING 66072 12/07/2012 280.37


66195 12/14/2012 68.88


66291 12/21/2012 366.89


66332 12/21/2012 150.00


Totals for LAKESHORE LEARNING 866.14

LANDRY, KLINT 66073 12/07/2012 280.00


66292 12/21/2012 840.00


Totals for LANDRY, KLINT 1,120.00

LONE STAR LEARNING 66074 12/07/2012 134.39


66293 12/21/2012 120.95


Totals for LONE STAR LEARNING 255.34

LOWE'S 66075 12/07/2012 377.61


Totals for LOWE'S 377.61

MACKIN BOOK COMPANY 66076 12/07/2012 24.98


66294 12/21/2012 1,228.80


Totals for MACKIN BOOK COMPANY 1,253.78

MALDONADO, PHILLIP 66196 12/14/2012 45.00


Totals for MALDONADO, PHILLIP 45.00

MANNING'S SCHOOL SUPPLY 66078 12/07/2012 1,072.21


66197 12/14/2012 270.73


66295 12/21/2012 71.70 Totals for GENOP 71.70

40


COMME CHECK CHECK


Totals for MANNING'S SCHOOL SUPPLY 1,414.64

MARKET BASKET #17 66079 12/07/2012 130.44


66137 12/07/2012 746.58


66198 12/14/2012 24.95


Totals for MARKET BASKET #17 901.97

MCCOWN PAINT & SUPPLY OF 66080 12/07/2012 374.14


Totals for MCCOWN PAINT & SUPPLY OF 374.14

MCGRAW-HILL 66081 12/07/2012 1,769.63


Totals for MCGRAW-HILL 1,769.63

MIDAMERICA BOOKS 66082 12/07/2012 869.39


Totals for MIDAMERICA BOOKS 869.39

MILLER, TRAVIS 66083 12/07/2012 220.00


Totals for MILLER, TRAVIS 220.00

MILLS, DARLENE 66253 12/19/2012 832.64


Totals for MILLS, DARLENE 832.64

MONUMENT CONSTRUCTORS 66084 12/07/2012 310.00


Totals for MONUMENT CONSTRUCTORS 310.00

MOTION INDUSTRIES 66085 12/07/2012 180.97


Totals for MOTION INDUSTRIES 180.97

MRC ENTERPRISES 66199 12/14/2012 80.00


Totals for MRC ENTERPRISES 80.00

MUSIC IN MOTION 66086 12/07/2012 165.00


Totals for MUSIC IN MOTION 165.00

NATIONAL GEOGRAPHIC SCHOOL PUBLISHING 66200 12/14/2012 319.54


Totals for NATIONAL GEOGRAPHIC SCHOOL PU 319.54

NCS PEARSON, INC. 66201 12/14/2012 2,398.47


66296 12/21/2012 4,111.07


Totals for NCS PEARSON, INC. 6,509.54

NICHOLS, CLINT 66087 12/07/2012 560.00


Totals for NICHOLS, CLINT 560.00

OCCUPATIONAL MEDICAL CARE 66202 12/14/2012 89.00


Totals for OCCUPATIONAL MEDICAL CARE 89.00

OCE 66088 12/07/2012 11,354.48


Totals for OCE 11,354.48

OCE IMAGISTICS INC 66203 12/14/2012 3,750.00


Totals for OCE IMAGISTICS INC 3,750.00 OLEKSY, AMBER 66297 12/21/2012 83.00

41


COMME CHECK CHECK



Totals for OLEKSY, AMBER 83.00

OMNIGRAPHICS, INC. 66298 12/21/2012 63.55


Totals for OMNIGRAPHICS, INC. 63.55

ORIENTAL TRADING CO., INC 66089 12/07/2012 33.94


Totals for ORIENTAL TRADING CO., INC 33.94

PARS 66299 12/21/2012 306.02


Totals for PARS 306.02

PAXTON/PATTERSON 66090 12/07/2012 532.94


66204 12/14/2012 373.02


Totals for PAXTON/PATTERSON 905.96

PCI EDUCATIONAL PUBLISH 66091 12/07/2012 1,043.23


66205 12/14/2012 749.78

12/14/2012 0.00


Totals for PCI EDUCATIONAL PUBLISH 1,793.01

PDQ FASPRINT CENTER 66092 12/07/2012 77.00


Totals for PDQ FASPRINT CENTER 77.00

PEDIATRIC REHAB. OF TEXAS, INC. 66300 12/21/2012 28,687.50


Totals for PEDIATRIC REHAB. OF TEXAS, IN 28,687.50

PENN STATE INDUSTRIES 66093 12/07/2012 45.90


Totals for PENN STATE INDUSTRIES 45.90

PEPSI-COLA BOTTLING 66094 12/07/2012 2,979.00


Totals for PEPSI-COLA BOTTLING 2,979.00

PERMA-BOUND 66095 12/07/2012 85.79


Totals for PERMA-BOUND 85.79

PIONEER MFG 66206 12/14/2012 3,990.00


Totals for PIONEER MFG 3,990.00

PITNEY BOWES INC. 66301 12/21/2012 222.00


Totals for PITNEY BOWES INC. 222.00

PITSCO 66096 12/07/2012 1,010.85


Totals for PITSCO 1,010.85

PLAYWELL GROUP 66097 12/07/2012 1,027.47


66207 12/14/2012 15,483.87


Totals for PLAYWELL GROUP 16,511.34

PORT ARTHUR NEWS 66302 12/21/2012 83.44


Totals for PORT ARTHUR NEWS 83.44

PORT ARTHUR, CITY OF 66098 12/07/2012 1,164.71 Totals for GENOP 1,164.71

42


COMME CHECK CHECK


Totals for PORT ARTHUR, CITY OF 1,164.71

PORT NECHES CHAMBER/COMM 66208 12/14/2012 50.00


Totals for PORT NECHES CHAMBER/COMM 50.00

PORT NECHES, CITY OF 66099 12/07/2012 2,717.41


66209 12/14/2012 1,295.97


66303 12/21/2012 411.33


Totals for PORT NECHES, CITY OF 4,424.71

POSITIVE PROMOTIONS 66100 12/07/2012 139.95


Totals for POSITIVE PROMOTIONS 139.95

PRICE, MIKE 66210 12/14/2012 100.00


Totals for PRICE, MIKE 100.00

PRO-ED 66101 12/07/2012 173.80


Totals for PRO-ED 173.80

QUILL CORPORATION 66102 12/07/2012 359.07


Totals for QUILL CORPORATION 359.07

RAVEY, ELDRIDGE 66304 12/21/2012 71.04


Totals for RAVEY, ELDRIDGE 71.04

REALLY GOOD STUFF 66211 12/14/2012 154.54


Totals for REALLY GOOD STUFF 154.54

RECTOR, RANDY 66103 12/07/2012 118.85


Totals for RECTOR, RANDY 118.85

REGION 5 ESC 66104 12/07/2012 32,320.00


66212 12/14/2012 740.00


66305 12/21/2012 50.00


Totals for REGION 5 ESC 33,110.00

REYNOLDS, GUY 66306 12/21/2012 560.00


Totals for REYNOLDS, GUY 560.00

RIDDELL/ALL AMERICAN 66333 12/21/2012 283.41


Totals for RIDDELL/ALL AMERICAN 283.41

RILEY, ROBERT 66213 12/14/2012 560.00


Totals for RILEY, ROBERT 560.00

RITTER LUMBER COMPANY 66106 12/07/2012 559.65


66214 12/14/2012 507.19


66334 12/21/2012 228.68


Totals for RITTER LUMBER COMPANY 1,295.52 ROESSLER EQUIPMENT CO 66107 12/07/2012 950.00

43


COMME CHECK CHECK



Totals for ROESSLER EQUIPMENT CO 950.00

ROSETTA STONE LTD. 66307 12/21/2012 6,540.00


Totals for ROSETTA STONE LTD. 6,540.00

RUBEN, RHONDA 66215 12/14/2012 52.20


Totals for RUBEN, RHONDA 52.20

SAMARITAN'S COUNSELING CENTER 66108 12/07/2012 1,666.00


Totals for SAMARITAN'S COUNSELING CENTER 1,666.00

SANITARY SUPPLY COMPANY, 66109 12/07/2012 2,260.07


66335 12/21/2012 1,180.65


Totals for SANITARY SUPPLY COMPANY, 3,440.72

SAXET MARKETING INC 66110 12/07/2012 175.00


Totals for SAXET MARKETING INC 175.00

SCHOOL NURSE SUPPLY INC 66112 12/07/2012 422.86


66216 12/14/2012 228.72


Totals for SCHOOL NURSE SUPPLY INC 651.58

SCHOOL SPECIALTY INC 66111 12/07/2012 306.96


66308 12/21/2012 79.03


Totals for SCHOOL SPECIALTY INC 385.99

SEBCO BOOKS 66217 12/14/2012 510.78


Totals for SEBCO BOOKS 510.78

SETZER HARDWARE 66113 12/07/2012 311.09


Totals for SETZER HARDWARE 311.09

SHERWIN WILLIAMS CO 66114 12/07/2012 650.34


66218 12/14/2012 509.54


Totals for SHERWIN WILLIAMS CO 1,159.88

SIGNATURE GROUP 66219 12/14/2012 1,500.00


Totals for SIGNATURE GROUP 1,500.00

SMART APPLE MEDIA 66115 12/07/2012 519.99


Totals for SMART APPLE MEDIA 519.99

SMART'S TRUCK & TRAILER 66220 12/14/2012 217.27


66309 12/21/2012 396.71


Totals for SMART'S TRUCK & TRAILER 613.98

SMITH, BRYDEN 66221 12/14/2012 133.30


Totals for SMITH, BRYDEN 133.30

SMITH, HEITH 66222 12/14/2012 280.00 Totals for GENOP 280.00

44


COMME CHECK CHECK


Totals for SMITH, HEITH 280.00

SMITH, JEFFERY 66260 12/19/2012 112.00


Totals for SMITH, JEFFERY 112.00

SMOOTS, ASHLEY 66223 12/14/2012 37.22


Totals for SMOOTS, ASHLEY 37.22

SNA 66224 12/14/2012 133.00


Totals for SNA 133.00

SOCIAL STUDIES SCHOOL SE 66336 12/21/2012 28.95


Totals for SOCIAL STUDIES SCHOOL SE 28.95

SONNIER, TAMMIE 66116 12/07/2012 40.51


Totals for SONNIER, TAMMIE 40.51

SOUTHERN TIRE MART, LLC 66225 12/14/2012 7,555.80


Totals for SOUTHERN TIRE MART, LLC 7,555.80

SPIDLE & SPIDLE INC. 66310 12/21/2012 11,194.03


Totals for SPIDLE & SPIDLE INC. 11,194.03

STAR GRAPHICS (100270) 66311 12/21/2012 616.00


Totals for STAR GRAPHICS (100270) 616.00

STERICYCLE, INC. 66117 12/07/2012 176.31


Totals for STERICYCLE, INC. 176.31

SULPHUR HIGH SCHOOL 66139 12/12/2012 150.00


Totals for SULPHUR HIGH SCHOOL 150.00

SWICEGOOD MUSIC COMPANY 66227 12/14/2012 2,591.70


66312 12/21/2012 235.00


Totals for SWICEGOOD MUSIC COMPANY 2,826.70

SYSCO FOOD SERV. HOUSTON 66228 12/14/2012 69,668.78


Totals for SYSCO FOOD SERV. HOUSTON 69,668.78

T.M.E.A. 66124 12/07/2012 102.00


Totals for T.M.E.A. 102.00

TASBO 66118 12/07/2012 1,920.00


Totals for TASBO 1,920.00

TATE, TRAY 66119 12/07/2012 113.29


Totals for TATE, TRAY 113.29

TCASE 66229 12/14/2012 20.00


Totals for TCASE 20.00

TCEA 66230 12/14/2012 200.00


Totals for TCEA 200.00

TEACHER'S DISCOVERY 66231 12/14/2012 118.63 Totals for GENOP 118.63

45


COMME CHECK CHECK


Totals for TEACHER'S DISCOVERY 118.63

TEMPLIN, DUSTIN 66254 12/19/2012 117.00


Totals for TEMPLIN, DUSTIN 117.00

TEPSA 66120 12/07/2012 315.00


Totals for TEPSA 315.00

TEXAS DEPT OF PUBLIC SAFETY 66121 12/07/2012 74.00


Totals for TEXAS DEPT OF PUBLIC SAFETY 74.00

TEXAS GAS SERVICE 66232 12/14/2012 2,034.53


66314 12/21/2012 6,418.75


Totals for TEXAS GAS SERVICE 8,453.28

TEXAS LETTER JACKETS 66315 12/21/2012 800.00


Totals for TEXAS LETTER JACKETS 800.00

TEXAS SUPERIOR 66233 12/14/2012 926.40


Totals for TEXAS SUPERIOR 926.40

THE LETCO GROUP, LLC 66122 12/07/2012 2,975.00


Totals for THE LETCO GROUP, LLC 2,975.00

THE LITTLETON GROUP 66316 12/21/2012 352.00


Totals for THE LITTLETON GROUP 352.00

THE SOCCER CORNER 66317 12/21/2012 5,058.25


Totals for THE SOCCER CORNER 5,058.25

TIME WARNER COMM 66337 12/21/2012 2,395.00


Totals for TIME WARNER COMM 2,395.00

TITAN SUPPORT SYSTEMS 66123 12/07/2012 796.30


Totals for TITAN SUPPORT SYSTEMS 796.30

TOTE UNLIMITED 66234 12/14/2012 605.09


Totals for TOTE UNLIMITED 605.09

TRI CITY COFFEE SERVICE COMPANY 66125 12/07/2012 64.55


66235 12/14/2012 95.65


66318 12/21/2012 65.40


Totals for TRI CITY COFFEE SERVICE COMPA 225.60

U-HAUL CORPORATION 66126 12/07/2012 103.24


Totals for U-HAUL CORPORATION 103.24

UNIVERSITY INTERSCHOLAST LEAGUE 66127 12/07/2012 119.25


Totals for UNIVERSITY INTERSCHOLAST LEAG 119.25

VERIZON WIRELESS 66128 12/07/2012 496.81


Totals for VERIZON WIRELESS 496.81 WAL-MART COMMUNITY 66138 12/07/2012 689.55

46


COMME CHECK CHECK



Totals for WAL-MART COMMUNITY 689.55

WALKER SCALE & EQUIP CO 66236 12/14/2012 158.05


Totals for WALKER SCALE & EQUIP CO 158.05

WARREN EQUIPMENT CO. 66129 12/07/2012 1,238.26


Totals for WARREN EQUIPMENT CO. 1,238.26

WASSER, DANA 66319 12/21/2012 62.50


Totals for WASSER, DANA 62.50

WELLS, ALEX 66237 12/14/2012 22.74


66255 12/19/2012 1,052.00


Totals for WELLS, ALEX 1,074.74

WES VICE HARDWARE & SUPPLY, INC. 66130 12/07/2012 166.80


66238 12/14/2012 82.83


Totals for WES VICE HARDWARE & SUPPLY, I 249.63

WEST BROOK HIGH SCHOOL 66320 12/21/2012 200.00


Totals for WEST BROOK HIGH SCHOOL 200.00

WEST DAVIS AND COMPANY, LLP 66239 12/14/2012 2,750.00


Totals for WEST DAVIS AND COMPANY, LLP 2,750.00

WEST END HARDWARE CO. 66131 12/07/2012 12.22


66240 12/14/2012 36.58


66338 12/21/2012 26.02


Totals for WEST END HARDWARE CO. 74.82

WILLIAM V. MACGILL & CO. 66241 12/14/2012 0.00

12/14/2012 101.06


Totals for WILLIAM V. MACGILL & CO. 101.06

WILSON, ROBIN 66256 12/19/2012 136.00


Totals for WILSON, ROBIN 136.00

WININGER, JESSICA 66132 12/07/2012 2,380.00


66242 12/14/2012 1,216.25


66321 12/21/2012 726.25


Totals for WININGER, JESSICA 4,322.50

WOLFE, CHRISTIE 66133 12/07/2012 262.50


Totals for WOLFE, CHRISTIE 262.50

WOODWORKERS PARADISE 66134 12/07/2012 489.82


66243 12/14/2012 58.92

Totals for GENOP 58.92 Totals for WOODWORKERS PARADISE 548.74

47


COMME CHECK CHECK


WORTH HYDROCHEM OF THE G 66135 12/07/2012 1,053.00


Totals for WORTH HYDROCHEM OF THE G 1,053.00

YOUNGS 66136 12/07/2012 83.48


Totals for YOUNGS 83.48

Totals for checks 673,015.21

48


F U N D S U M M A R Y

FUND DESCRIPTION BALANCE SHEET REVENUE EXPENSE TOTAL

199 GENERAL FUND 0.00 0.00 493,540.04 493,540.04

224 IDEA- PART B-FORMULA 0.00 0.00 45,876.08 45,876.08

240 FOOD SERVICE FUND 0.00 0.00 114,567.92 114,567.92

244 VOC. ED.-BASIC GRANT 0.00 0.00 10,356.75 10,356.75

263 Title III - Language Inst LEP 0.00 0.00 7,454.54 7,454.54

499 LOCAL GRANTS 0.00 0.00 867.88 867.88

753 WORKER'S COMP. INSURANCE FUND 0.00 0.00 352.00 352.00

*** Fund Summary Totals *** 0.00 0.00 673,015.21 673,015.21 ************************ End of report ************************

49

3frdtl01.p PORT NECHES-GROVES ISD 9:47 AM 01/10/13 05.12.10.00.00-10.2-010073 MONTHLY CASH DISB -bond (Dates: 12/01/12 - 12/31/12) PAGE: 1

COMME CHECK CHECK


Totals for 0.00

Totals for 0.00

Totals for checks 0.00

50

3frdtl01.p PORT NECHES-GROVES ISD 9:47 AM 01/10/13 05.12.10.00.00-10.2-010073 MONTHLY CASH DISB -bond (Dates: 12/01/12 - 12/31/12) PAGE: 2

F U N D S U M M A R Y

FUND DESCRIPTION BALANCE SHEET REVENUE EXPENSE TOTAL

*** Fund Summary Totals *** 0.00 0.00 0.00 0.00 ************************ End of report ************************

51


BOARD DOCUMENT


AGENDA ITEM: Consider Approval of Resolution to Suspend Portions of

EIA(LOCAL) for the 2012-13 School Year Only

On November 30, 2012, Commissioner of Education Michael L. Williams announced

that, for the 2012–13 school year, districts may defer implementation of the statutory

provision that requires performance on an end-of-course (EOC) assessment to count as 15

percent of a student’s final course grade. This is the second year that the statutory

requirement has been deferred. Commissioner Robert Scott implemented a similar

deferral option for the 2011–12 school year and the corresponding resolution was

approved by the PNGISD Board of Trustees at the Jan. 9, 2012 board meeting.

Districts that decide to defer the 15 percent provision may do so only for the 2012–13

school year. At this point, the requirement in Education Code 39.023(c) for districts to

have local board policy stating that an EOC assessment score counts as 15 percent of the

final course grade is still in place for the 2013–14 school year. However, given the

number of legislators that have indicated a desire to change the current statutory

provisions on EOC assessments, a legislative change seems likely during the 83rd

Legislative Session and could affect whether districts are required to count EOC

assessments as 15 percent of a student’s grade for future years.

The recommended resolution is attached.

Recommendation: It is recommended that the Board of Trustees approve the

Resolution to Suspend Portions of EIA(LOCAL) for the 2012–13

School Year Only

Resource Personnel: Dr. Brenda Duhon, Asst. Supt. for Curriculum,

Instruction/Technology

52

Resolution of the Port Neches-Groves ISD Board of Trustees to Suspend Portions of EIA(LOCAL) For the 2012–13 School Year Only

WHEREAS, section 39.023(c) of the Texas Education Code requires a school district to adopt a policy that requires a student’s performance on an end-of-course (EOC) assessment instrument to account for 15 percent of a student’s final grade for the course.

WHEREAS, Port Neches-Groves ISD local policy EIA(LOCAL) includes provisions on EOC assessments to satisfy this statutory requirement and address other provisions related to how the district will implement this statutory requirement.

WHEREAS, the Commissioner of Education has given school districts the ability to defer implementation for the 2012–13 school year of the statutory provision that requires performance on an EOC assessment to count as 15 percent of a student’s final course grade.

NOW THEREFORE BE IT RESOLVED that the Board of Trustees of Port Neches-Groves ISD shall suspend for the remainder of the 2012–13 school year portions of the following code:

EIA(LOCAL), at END-OF-COURSE ASSESSMENTS, requiring a student’s performance on an EOC assessment to count for 15 percent of a student’s final grade for the course and addressing other related provisions regarding the 15 percent provision.

Adopted this 14th day of January, 2013, by the Board of Trustees.

______________________________ President

______________________________ Secretary

53

Port Neches-Groves Independent School District Board Document


AGENDA ITEM: Consider Approval of Quarterly Investment Report Ending November

2012

Section 2256.023 of the Public Funds Investment Act, as amended during the 74th

Legislature,

requires the investment officer to prepare and submit to the governing body of the entity, not less

than quarterly, a written report of investment transactions for all funds covered by the Act for the

preceding quarter.

Investment Officers:

Recommendation: It is recommended that the Board of Trustees of the Port Neches-Groves

Independent School District approve the Quarterly Investment Report

Ending November 2012


54

QUARTERLY INVESTMENT REPORT FOR THE QUARTER ENDED NOVEMBER 30, 2012 Investment Program

The legal requirements and local authority for investment of district funds are detailed in Board Policy CDA (Legal) and CDA (Local) as adopted by the Board of Trustees. The investments utilized by Port Neches-Groves ISD for the Quarter Ended November 30, 2012 included Lone Star Investment Pool, TexSTAR and Certificates of Deposit.

Investment Position at November 30, 2012

Book Value Market Value Lone Star Investment Pool $7,581,639.37 $7,582,428.76

TexSTAR 8,549,660.54 8,549,660.54

Certificates of Deposit

4,018,776.72 4,018,776.72

Total $20,150,076.63 $20,150,866.02

Investment Activity

A summary of activity is listed below:

Schedule of Transactions by Fund Group Investments in Lone Star Investment Pool

Quarter Ended November 30, 2012

Carrying Carrying Amount Additions Deductions Amount

9/1/12 9/1-11/30 9/1-11/30 11/30/12 General Fund $ 6,224,435.57 $6,092,693.64 $8,528,860.88 $3,788,268.33

Debt Service Fund 1,174,706.81 191,156.55

-0- 1,365,863.36

Capital Projects Fund – 98

226,365.50

85.85 -0- 226,451.35

Capital Projects Fund – Series 2009

2,727,445.36

915.62 527,304.65 2,201,056.33

Total Lone Star Investment Pool $10,352,953.24 $6,284,851.66 $9,056,165.53 $7,581,639.37

55

QUARTERLY INVESTMENT REPORT FOR THE QUARTER ENDED NOVEMBER 30, 2012

Investments in TexSTAR Quarter Ended November 30, 2012

Carrying Carrying Amount Additions Deductions Amount

9/1/12 9/1-11/30 9/1-11/30 11/30/12 General Fund $ 8,546,079.48

$3,581.06 $ -0- $8,549,660.54

Total TexSTAR $ 8,546,079.48 $3,581.06 $ -0- $8,549,660.54

Certificates of Deposit Quarter Ended November 30, 2012

Accrued Carrying Interest Purchase

Interest

Amount Rate Date 11/30/12 General Fund – 12 mo. CD $1,016,239.59

.249%

04/30/2012

$ 1,490.53

General Fund – 12 mo. CD

3,002,537.13 .310% 07/24/2012 3,289.63

Total $4,018,776.72 $4,780.16

56


BOARD DOCUMENT


AGENDA ITEM: Consider Approval of Insurance Renewal with TASB Risk

Management Fund for Equipment Breakdown, General Liability,

School Professional Legal Liability, Automobile Coverage and

Crime Coverage for a one year period beginning March 30, 2013

The district will receive a renewal credit from TASB of $6,205.00 due to our excellent loss

experience during the previous coverage year. The rates proposed this year reflect no increase in

costs from what the district paid TASB last year.

The total premium to TASB will be $55,841. Attached is a copy of the renewal.

Recommendation: It is recommended that the Port Neches-Groves ISD Board of Trustees

approve the renewal with TASB Risk Management Fund to provide

equipment breakdown, general liability, school professional legal liability,

automobile coverage, and crime coverage for PN-GISD for one year

beginning March 30, 2013.


57

January 2, 2013 Mrs. Cheryl Hernandez Port Neches-Groves ISD 620 Avenue C Port Neches, TX 77651-3030 Dear Mrs. Hernandez: The TASB Risk Management Fund (Fund) is pleased to present a renewal proposal for your continued participation in the Fund's Auto and Liability programs for 2013-14. The attached renewal reflects the Fund’s Board of Trustees commitment to continued outstanding service delivery, cost savings and budget stability to Fund members. Consistent with those goals, your renewal reflects no increase in cost for 2013-14. The Fund remains committed to using its financial strength to provide savings, stability and service to its members. We call this “The Four S” difference between the Fund and other risk management providers. This year, recognizing that many Fund members are experiencing reductions in staffing, the Fund is adding another “S”—simplicity. We are focusing on finding ways to make your interactions with the Fund easier. Toward that end, in addition to holding rates at 2011-12 levels, the Fund is implementing the following service and coverage enhancements with your 2013-14 renewal: · A simplified, universal Interlocal Participation Agreement (IPA) which will allow

members to execute only one IPA, instead of a separate IPA for each line of coverage. Since you participate in another Fund program (i.e. workers’ compensation or unemployment compensation) with a renewal date of September 1, 2012, or later, you received the new IPA with that renewal. You have already executed the new IPA; you do not need to sign one again.

· Fixed costs for property and auto coverage with no audit adjustments for mid-year changes to property values or vehicle ownership. Liability coverage will continue to be at a fixed cost, as it has been in the past. The Fund will no longer invoice you during the year for increases in property values, purchases or additions to property or purchases of additional vehicles. You will continue to have the option of submitting an exposure self-audit after the end of the participation period, if you believe your exposures have changed enough to warrant a contribution adjustment. At that time, the Fund will recalculate the contribution due and either send you an invoice for the additional contribution due, or issue a refund. In the meantime, you can rest assured that your cost for the coverage provided by the Fund is fixed for the 2013-14 participation period.

· Coverage documents have been placed online for easy access when you need them. · Fewer and simplified forms and expanded online self-service capabilities to allow you

to handle many Fund transactions at your convenience.

58

Mrs. Cheryl Hernandez January 2, 2013 Page 2 ________________________

To accept the attached renewal proposal for continued participation in the Fund’s Auto and Liability program, please take the following steps:

· Execute the attached Coverage and Contribution Summary. Send the executed document by email to [email protected] or by regular mail to: P.O. Box 301, Austin, Texas 78767-0301 at least 30 days prior to the renewal date to ensure there is no interruption in coverage.

· If you are purchasing Auto Coverage, your ID cards will be mailed upon receipt of your signed renewal documents.

We are pleased that the Fund is in a position to continue to provide budgetary relief and stability to Fund members for the second year of the biennium. I will be contacting you in the coming days to schedule a time to go over your renewal proposal and answer any questions you might have. Thank you for your membership in the TASB Risk Management Fund. We look forward to another successful year!

Sincerely,

Rosa Brown Sr. Risk Management Consultant Risk Management Services Texas Association of School Boards, Inc.

59

www.tasbrmf.org 800-482-7276

Page 1 of 4

Port Neches-Groves ISD November 28, 2012

Auto, Liability, Property CCS 2013-14

TASB Risk Management Fund Auto, Liability, & Property

Contribution & Coverage Summary (CCS)

Port Neches-Groves ISD

Participation Period: March 30, 2013 12:01 A.M. to March 30, 2014 12:01 A.M. EQUIPMENT BREAKDOWN

Deductible Per Occurrence

Annual Contribution

$100,000,000 Limit

$1,000

$13,418

LIABILITY


Annual Contribution

General Liability

Including Personal Injury and Liability coverage for items considered Mobile Equipment $1,000,000 Per Occurrence Limit Employee Benefits Liability ($100,000 Per Occurrence Limit)

School Professional Legal Liability

$1,000,000 Per Occurrence Limit/ $1,000,000 Annual Aggregate

Increase Sublimits to Sexual Misconduct Claims Endorsement

$1,000,000 Per Occurrence Limit/ $1,000,000 Annual Aggregate

$1,000 $10,000 $10,000

$2,854 $9,317 $960

AUTO COVERAGE

Fleet Liability

$1,000,000 Combined Single Limit

Deductible Per Occurrence $250

Annual Contribution $21,591

60


Page 2 of 4



AUTO COVERAGE

Physical Damage- Actual Cash Value

Private Passenger

Comprehensive

Collision

All Other Vehicles (Buses, Trucks, Trailers, and Vans)

Comprehensive

Collision

Deductible Per Vehicle $2,500 $2,500 $2,500 $2,500

Annual Contribution $42 $132 $10,626 $1,848

CRIME


Annual Contribution

$100,000 Limit

$250

$1,258

TOTAL CONTRIBUTION MEMBERS’ EQUITY CREDIT TOTAL BALANCE DUE

$62,046 $(6,205) $55,841

This is not an invoice. An invoice will be emailed to the program coordinator and payable within 30 days of receipt.

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Page 3 of 4



CONDITIONS

Claims Reporting: Fund Member will provide to the Fund timely notice of all claims as required in the Interlocal Participation Agreement.

Coverage: Coverage terms and limits provided are as set out in this CCS and the Fund’s Coverage Document for this participation period. Payment: The Fund Member agrees to pay contributions based on a plan developed by the Fund. All contributions are payable upon receipt of an invoice from the Fund. Prior Acts: Fund Member certifies that all known or reported acts that are reasonably believed may result in a legal claim against the Member, have been fully disclosed. Additionally, Fund Member acknowledges that this coverage excludes any claims arising from such known or reported acts. This Agreement does not void coverage afforded to Fund Member under any previous Fund Agreement. Statement of Values: Fund Member has provided the Fund with the most current and accurate statement of values for all applicable property, including a complete and accurate listing of vehicles owned by the Fund Member. Fund Member agrees to allow Fund to conduct property appraisals of the Fund Member’s property on a periodic basis and agrees to accept values provided by the Fund. Salvage: The Fund will have the right, in its sole discretion, to exercise rights of salvage to any damaged property paid for or replaced under the terms of this Agreement.

Termination: This CCS may be terminated by either party with termination to be effective on any successive renewal date by giving written notice to the other party no later than 30 days prior to automatic renewal in accordance with Section 4(a) of the Interlocal Participation Agreement.

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Page 4 of 4



Coordinator: The Fund Member is required to designate a Program Coordinator (Coordinator) with express authority to represent and bind the Fund Member in all program matters. If a Coordinator’s name and contact information is not provided below, the currently designated Coordinator and contact information will remain in effect.

______________________________________ _____ ____________________________________________ Name of Coordinator Coordinator title ______________________________________ _____ ___________ ______________________________ Coordinator address City, state, and zip _______________________________________ _________ _____________________________________ Coordinator phone Coordinator fax E-mail address Fund Member: I certify that this information is correct. I affirm that I am duly authorized to sign this Contribution & Coverage Summary. Furthermore, I certify that I have read and agree to this Contribution & Coverage Summary and the Interlocal Participation Agreement. ______________________________________ _________________________________________________ Authorized signature Date ______________________________________ _________________________________________________ Printed name Title TASB Risk Management Fund: ______________________________________ _________________________________________________ James B. Crow, Secretary Date

63


BOARD DOCUMENT


AGENDA ITEM: Consider Approval of Personnel Recommendations

EMPLOYMENTS:

The following individual(s) fulfill the requirements for employment by local policy and TEA

standards and are recommended for employment for the second semester only of the 2012-2013

school year.

Position/Campus Applicant Replacing Teacher- First Grade – Van

Buren Elementary School

Sandra Jordan Tracey Sparks

The following individual(s) fulfill the requirements for employment by local policy and TEA

standards and are recommended for employment for the 2012-2013 school year.

Position/Campus Applicant Replacing Teacher- English – Port

Neches-Groves High School

Lauren Melancon Danyale Gilchrist

RECOMMENDATION: It is recommended the Board of Trustees approve the above personnel

recommendations for the 2012-13 school year.

Resource Personnel: Mike Gonzales, Assistant Superintendent for Administrative Services

64


Board Document


AGENDA ITEM: Consider Approval of Annual Financial Report for 2011-2012 by

Independent Auditor

The audit firm of West Davis & Co. has conducted the annual audit of the district’s financial

records. A representative from the firm will be present at the meeting to discuss the audit report.

Recommendation: It is recommended that the Board of Trustees of the Port Neches-Groves

Independent School District approve the Audit Report for the 2011-12

fiscal year and pay the agreed audit fee of $15,950.


65

West, Davis & Company a l imi ted l iabi l i t y par tnersh ip

11824 Jol lyvi l le Road, Suite 100 Austin, Texas 78759 Telephone 512.340.0222 Facsimile 512.340.0333 www .westdavis .com

January 8, 2013 Board of Trustees Port Neches-Groves Independent School District Port Neches, Texas We have audited the August 31, 2012, financial statements of the Port Neches-Groves Independent School District (the District) and have issued our report thereon dated January 8, 2013. Professional standards require that we provide you with the following information related to our audit. We will be pleased to discuss the contents of this letter or any related questions of the Board of Trustees at your convenience. This information is intended solely for the use of the District and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which is a matter of public record. RESPONSIBILITY OF INDEPENDENT ACCOUNTANTS Our responsibility under auditing standards generally accepted in the United States of America is to express an opinion on the financial statements of the District based on our audit. In carrying out this responsibility, we assessed the risk that the financial statements may contain a material misstatement, either intentional or unintentional, and designed and conducted an audit to provide reasonable, but not absolute, assurance of detecting misstatements that are material to the financial statements. We have completed the audit of the District's financial statements in accordance with generally accepted auditing standards. 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 grants, 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. Also, in accordance with OMB Circular A-133, we examined, on a test basis, evidence about the District’s compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement applicable to each of its major federal programs for the purpose of expressing an opinion on the District’s compliance with those requirements. While our audit provides a reasonable basis for our opinion, it does not provide a legal determination on the District’s compliance with those requirements. REPORT ISSUED ON 2012 AUDIT We have issued our report, dated January 8, 2013, on the August 31, 2012, financial statements of the District. Our report is unqualified as to scope and accounting.

66

To the Board of Trustees of the Port Neches-Groves Independent School District Page 2

INTERNAL ACCOUNTING CONTROL We considered the internal control structure in order to gain a basic understanding of the internal control policies and procedures in order to design an effective and efficient audit approach, not for the purpose of providing assurance on the internal control structure. We also considered internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our 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. We have no comments regarding internal control or accounting procedures. MANAGEMENT COOPERATION We were given full access to accounting records, supporting documents and other information, which we requested. ACCOUNTING PRINCIPLES Management employed appropriate accounting principles as described in Note A to the financial statements and made all required disclosures in the financial statements. We noted no transactions entered into by the District during the year that were both significant and unusual, and of which, under professional standards, we are required to inform you, or transactions for which there is a lack of authoritative guidance or consensus. MANAGEMENT JUDGMENTS AND ACCOUNTING ESTIMATES Significant judgments or estimates included in the financial statements are estimates of asset useful lives, depreciation expense, uncollectible receivables, certain liabilities including accrued expenses, claims and judgments. SIGNIFICANT AUDIT ADJUSTMENTS We made one significant adjustment to record food received under the Commodities Food Program in the amount of $125,922. In addition, we made certain government-wide adjustments noted in the reconciliations in schedules C-1R and C-3. There were no uncorrected misstatements at August 31, 2012. MAJOR ISSUES DISCUSSED WITH MANAGEMENT PRIOR TO RETENTION There were no major issues discussed with management prior to our retention regarding the application of accounting principles and auditing standards.

67

CERTIFICATE OF BOARD

Port Neches-Groves Independent School District Jefferson 123-908

Name of School District County Co.-Dist. Number

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

were reviewed and (check one) approved disapproved for the year ended August 31, 2012,

at a meeting of the board of trustees of such school district on the day of , .

Signature of Board Secretary Signature of Board President

If the board of trustees disapproved of the auditors' report, the reason(s) for disapproving it is (are):

(attach list as necessary)

1

69

PORT NECHES-GROVES INDEPENDENTSCHOOL DISTRICT

ANNUAL FINANCIAL REPORT

FOR THE YEAR ENDED AUGUST 31, 2012

70


Annual Financial Report

For The Year Ended August 31, 2012

TABLE OF CONTENTS

Page Exhibit

INTRODUCTORY SECTION

Certificate of Board......................................................................................................................................................1

FINANCIAL SECTION

Independent Auditor's Report on Financial Statements.........................................................................................................................2

Management's Discussion and Analysis (Required Supplementary Information)............................................................................................................4

Basic Financial Statements

Government-wide Financial Statements:

Statement of Net Assets.......................................................................................................................10 A-1

Statement of Activities...........................................................................................................................11 B-1

Fund Financial Statements:

Balance Sheet - Governmental Funds.............................................................................................12 C-1

Reconciliation of the Governmental Funds

Balance Sheet to the Statement of Net Assets........................................................................................................................13 C-1R

Statement of Revenues, Expenditures, and Changes in

Fund Balances - Governmental Funds......................................................................................................14 C-2

Reconciliation of the Statement of Revenues, Expenditures, and Changes in

Fund Balances of Governmental Funds to the Statement of Activities...........................15 C-3Statement of Net Assets - Internal Service Fund.......................................................................16 D-1

Statement of Revenues, Expenses, and Changes in

Fund Net Assets - Internal Service Fund.....................................................................................17 D-2

Statement of Cash Flows - Proprietary Funds.............................................................................................18 D-3

Statement of Fiduciary Net Assets - Fiduciary Funds..........................................................................19 E-1

Statement of Changes in Fiduciary Net Assets - Fiduciary Funds................................................20 E-2

Notes to the Financial Statements ..............................................................................................................21

Required Supplementary Information:

Budgetary Comparison Schedules:

General Fund........................................................................................................................................................................................................33 G-1

OTHER SUPPLEMENTARY INFORMATION SECTION

Schedule of Delinquent Taxes Receivable.............................................................................................................34 J-1

Indirect Cost Computation Schedule .........................................................................................................36 J-2

Budgetary Comparison Schedules Required by the Texas Education Agency:

National School Breakfast and Lunch Program......................................................... 37 J-3

Debt Service Fund........................................................................................................................................................................................................38 J-4

Report on Internal Control over Financial Reporting and on Compliance andOther Matters Based on an Audit of Financial Statements Performed

in Accordance with Government Auditing Standards.......................................................................39

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.............................................................................................41

Schedule of Findings and Questioned Costs .......................................................................................................................................43

Schedule of Expenditures of Federal Awards ..................................................................................................................44 K-1

Notes to the Schedule of Expenditures of Federal Awards...................................................................................45

Schedule of Required Responses to Selected School First Indicators.............................................................................................................46 K-2

71

Introductory Section

72

CERTIFICATE OF BOARD

Port Neches-Groves Independent School District Jefferson 123-908

Name of School District County Co.-Dist. Number

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

were reviewed and (check one) approved disapproved for the year ended August 31, 2012,

at a meeting of the board of trustees of such school district on the day of , .

Signature of Board Secretary Signature of Board President

If the board of trustees disapproved of the auditors' report, the reason(s) for disapproving it is (are):

(attach list as necessary)

1

73

Financial Section

74

West, Davis & Company, LLP

11824 Jollyville Road, Suite 100

Austin, Texas 78759

Independent Auditor's Report on Financial Statements

Board of Trustees


Port Neches, Texas

Members of the Board of Trustees:

We have audited the accompanying financial statements of the governmental activities, each major fund, and

the aggregate remaining fund information of Port Neches-Groves Independent School 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 Port Neches-Groves Independent

School 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 includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial

statements. An audit also includes 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 respectivefinancial position of the governmental activities, each major fund, and the aggregate remaining fund information

of Port Neches-Groves Independent School 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 8,

2013, on our consideration of Port Neches-Groves Independent School District's internal control over financial

reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grantagreements 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.

The Management's Discussion and Analysis and the budgetary comparison information identified as Required

Supplementary Information in the table of contents are not a required part of the basic financial statements butare supplementary information required by accounting principles generally accepted in the United States of

America. We have applied certain limited procedures, which consisted principally of inquiries of management

regarding the methods of measurement and presentation of the required supplementary information. However,

we did not audit the information and express no opinion on it.

Our audit was performed for the purpose of forming opinions on the financial statements which collectively

comprise the Port Neches-Groves Independent School District's basic financial statements. The accompanying

2

75

4


MANAGEMENT'S DISCUSSION AND ANALYSIS MANAGEMENT'S DISCUSSION AND ANALYSIS In this section of the Annual Financial and Compliance Report, we, the managers of Port Neches-Groves Independent School District (the District), discuss and analyze the District's financial performance for the fiscal year ended August 31, 2012. Please read it in conjunction with the independent auditors' report on page 2, and the District's Basic Financial Statements, which begin on page 10. All amounts, unless otherwise indicated, are expressed in thousands of dollars. USING THIS ANNUAL REPORT This annual report consists of a series of financial statements. The government-wide financial statements include the Statement of Net Assets and the Statement of Activities (on pages 10 and 11). These provide information about the activities of the District as a whole and present a longer-term view of the District's property and debt obligations and other financial matters. They reflect the flow of total economic resources in a manner similar to the financial reports of a business enterprise. Fund financial statements (starting on page 12) report the District's operations in more detail than the government-wide statements by providing information about the District's most significant funds. For governmental activities, these statements tell how services were financed in the short term as well as what resources remain for future spending. They reflect the flow of current financial resources, and supply the basis for tax levies and the appropriations budget. The remaining statements, fiduciary statements, provide financial information about activities for which the District acts solely as a trustee or agent for the benefit of those outside of the district. The notes to the financial statements (starting on page 23) provide narrative explanations or additional data needed for full disclosure in the government-wide statements or the fund financial statements. The sections labeled TEA Required Schedules and Federal Awards Section contain data used by monitoring or regulatory agencies for assurance that the District is using funds supplied in compliance with the terms of grants. Reporting the District as a Whole The Statement of Net Assets and the Statement of Activities The analysis of the District's overall financial condition and operations begins on page 10. Its primary purpose is to show whether the District is better off or worse off as a result of the year's activities. The Statement of Net Assets includes all the District's assets and liabilities at the end of the year while the Statement of Activities includes all the revenues and expenses generated by the District's operations during the year. These apply the accrual basis of accounting which is the basis used by private sector companies.

77

5

All of the current year's revenues and expenses are taken into account regardless of when cash is received or paid. The District's revenues are divided into those provided by outside parties who share the costs of some programs, such as grants provided by the U.S. Department of Education to assist children with disabilities of from disadvantaged backgrounds (program revenues), and revenues provided by the taxpayers or by TEA in equalization funding processes (general revenues). All the District's assets are reported whether they serve the current year or future years. Liabilities are considered regardless of whether they must be paid in the current or future years. These two statements report the District's net assets and changes in them. The District's net assets (the difference between assets and liabilities) provide one measure of the District's financial health, or financial position. Over time, increases or decreases in the District's net assets are one indicator of whether its financial health is improving or deteriorating. To fully assess the overall health of the District, however, you should consider nonfinancial factors as well, such as changes in the District's average daily attendance or its property tax base and the condition of the District's facilities. In the Statement of Net Assets and the Statement of Activities, we classify the District’s activities as Governmental activities:

Governmental activities–Most of the District's basic services are reported here, including the instruction, counseling, co-curricular activities, food services, transportation, maintenance, community services, and general administration. Property taxes, tuition, fees, and state and federal grants finance most of these activities.

Reporting the District's Most Significant Funds Fund Financial Statements The fund financial statements begin on page 12 and provide detailed information about the most significant funds–not the District as a whole. Laws and contracts require the District to establish some funds, such as grants received under the No Child Left Behind Act from the U.S. Department of Education. The District's administration establishes many other funds to help it control and manage money for particular purposes (like campus activities). The District's two kinds of funds–governmental and proprietary–use different accounting approaches.

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

Proprietary funds–The District reports the activities for which it charges users (whether outside

customers or other units of the District) in proprietary funds using the same accounting methods employed in the Statement of Net Assets and the Statement of Activities. The internal service funds report activities that provide supplies and services for the District's other programs and activities–such as the District's self-insurance programs. The District, at present, maintains one internal service fund, the Workers’ Compensation Insurance Fund.

78

6

The District as Trustee Reporting the District's Fiduciary Responsibilities The District is the trustee, or fiduciary, for money raised by student activities and scholarship programs. All of the District's fiduciary activities are reported in separate Statements of Fiduciary Net Assets and Changes in Fiduciary Net Assets on pages 21 and 22. We exclude these resources from the District's other financial statements because the District cannot use these assets to finance its operations. The District is only responsible for ensuring that the assets reported in these funds are used for their intended purposes. GOVERNMENT-WIDE FINANCIAL ANALYSIS Our analysis focuses on the net assets (Table I) and changes in net assets (Table II) of the District’s governmental and business-type activities. Net assets of the District's governmental activities increased from $35.5 million to $38.4 million. Unrestricted net assets – the part of net assets that can be used to finance day-to-day operations without constraints established by debt covenants, enabling legislation, or other legal requirements – were $20.7 million at August 31, 2012. This decrease in governmental net assets was the result of depreciation expense.

2012 2011

Current and other assets 31,516 34,727Capital assets 138,116 141,092

Total assets 169,632 175,819

Long-term liabilities 127,474 132,647Other liabilities 3,764 7,636

Total liabilities 131,238 140,283

Net assets:Invested in capital assets, net of related debt 15,612 15,862Restricted 2,120 1,607Unrestricted 20,662 18,067

Total net assets 38,394 35,536

Activities

Table I Port Neches-Groves Independent School District

NET ASSETSin thousands

Governmental

79

7

2012 2011

Revenues:Program revenues:

Charges for services 1,849 1,901Operating grants and contributions 3,780 6,865

General revenues: Maintenance and operations taxes 25,066 26,779

Debt service taxes 11,149 10,492State aid - formula grants 9,714 5,080Investment Earnings 53 79

Miscellaneous 4,215 2,042Total Revenues 55,826 53,238

Expenses:Instruction, curriculum and media services 26,643 27,955Instructional and school leadership 2,221 2,208Student support services 3,112 3,103Child nutrition 2,334 2,626Extracurricular activities 1,830 1,964General administration 1,069 1,209Plant maintenance and security 6,688 9,321Data processing services 1,060 701Debt services 5,680 5,856Recapture payments 1,928 1,899Other Intergovernmental charges 403 521

Total Expenses 52,968 57,363

Increase in net assets 2,858 (4,125)Net assets at Beginning 35,536 39,661Prior Period Adjustment - - Net Assets - Beginning, as Restated 35,536 39,661Net assets at Ending 38,394 35,536

Table II Port Neches-Groves Independent School District

CHANGES IN NET ASSETSin thousands

ActivitiesGovernmental

80

8

THE DISTRICT'S FUNDS As the District completed this annual period, its governmental funds (as presented in the balance sheet on page 12) reported a combined fund balance of $23.6 million, which is $0.3 million more than last year's total of $23.3 million. This was a result of some $2.2 million increase in general fund balance offset by $2.2 in expenditures of capital project funds plus and increase of $0.3 in debt service fund balance. Included in this year's total change in fund balance is a increase of $2.2 million in the District's General Fund. Total actual expenditures were $1.5 million less than budgeted. Several factors contributed to the savings. Over the course of the year, the Board of Trustees revised the District's General Fund budget. Recapture payments for student attendance credits were also less by $0.3 million. State revenues were $0.3 million more than budget. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets At the end of 2012, the District had $138.1 million invested in a broad range of capital assets, including facilities and equipment for instruction, transportation, athletics, administration, and maintenance. More detailed information about the District's capital assets is presented in Note D to the financial statements. Debt At year-end, the District had $123.1 million in bonds outstanding versus $128.3 million last year. More detailed information about the District's long-term liabilities is presented in Note F to the financial statements. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES The District’s Board of Trustees and Superintendent considered many factors when adopting the 2012-13 budget. These included the following:

The District’s enrollment is expected to increase slightly. The District’s student attendance rate is expected to remain stable or increase slightly. Legislative Mandates The Economy Federal Grants

General Fund revenues are budgeted to decrease 3.35% to $36.8 million. The largest decrease is attributable to a decrease in the amount of state aid the district is projecting to receive. General Fund expenditures are budgeted to decrease 3.35% to $36.8 million The largest decrease is attributable to the district not paying recapture to the state for the purchase of student attendance credits. The District has added no new major programs or initiatives to the 2012-13 budgets. During the budget process the district was able to absorb approximately 3 positions vacated by retiring personnel. Throughout the year, positions will continue to be reviewed and monitored and careful attention will be paid to the remaining budget as well. The district has completed three major construction projects funded with bond proceeds.

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Financial forecasts for the State of Texas have the state having a large shortfall. The Board of Trustees adopted a policy for maintaining at least three month’s operating expenditures in fund balance. Currently the district does have an excess of the three month’s operating expenditures. CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the District's finances and to show the District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact the District's Business Manager at the Port Neches-Groves Independent School District, 620 Avenue C, Port Neches, Texas 77651.

82

Basic Financial Statements

83

EXHIBIT A-1

PORT NECHES-GROVES INDEPENDENT SCHOOL DISTRICTSTATEMENT OF NET ASSETS

AUGUST 31, 2012

1

Data

Control Governmental

Codes Activities

ASSETS:

1110 Cash and Cash Equivalents $ 1,775,010

1120 Current Investments 24,946,208

1225 Property Taxes Receivable (Net) 840,125

1240 Due from Other Governments 2,201,477

1250 Accrued Interest 10,014

1290 Other Receivables (Net) 46,957

1300 Inventories 52,115

1410 Deferred Expenses 854,120

1420 Capitalized Bond and Other Debt Issuance Costs 771,555

1490 Other Current Assets 17,800

Capital Assets:

1510 Land 1,217,225

1520 Buildings and Improvements, Net 131,830,485

1530 Furniture and Equipment, Net 5,068,563

1000 Total Assets 169,631,654

LIABILITIES:

2110 Accounts Payable 817,597

2140 Interest Payable 241,905

2165 Accrued Liabilities 1,804,987

2180 Due to Other Governments 602,682

2300 Unearned Revenue 296,834

Noncurrent Liabilities:

2501 Due Within One Year 5,395,000

2502 Due in More Than One Year 122,078,699

2000 Total Liabilities 131,237,704

NET ASSETS

3200 Invested in Capital Assets, Net of Related Debt 15,611,782

Restricted For:

3820 Federal and State Programs 893,332

3850 Debt Service 1,226,586

3900 Unrestricted 20,662,250

3000 Total Net Assets $ 38,393,950

The accompanying notes are an integral part of this statement.

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84

EXHIBIT B-1

PORT NECHES-GROVES INDEPENDENT SCHOOL DISTRICTSTATEMENT OF ACTIVITIES


Net (Expense)

1 3 4 Revenue and

Changes in

Program Revenues Net Assets

Data Operating

Control Charges for Grants and Governmental

Codes Functions/Programs Expenses Services Contributions Activities

Governmental Activities:

11 Instruction $ 24,936,782 $ 53,930 $ 2,601,267 $ (22,281,585)

12 Instructional Resources and Media Services 737,663 -- 24,063 (713,600)

13 Curriculum and Staff Development 968,810 -- 105,902 (862,908)

23 School Leadership 2,221,182 -- -- (2,221,182)

31 Guidance, Counseling, & Evaluation Services 1,638,410 -- 6,389 (1,632,021)

33 Health Services 626,973 -- -- (626,973)

34 Student Transportation 846,691 -- -- (846,691)

35 Food Service 2,333,938 1,532,125 997,522 195,709

36 Cocurricular/Extracurricular Activities 1,830,144 256,216 12,534 (1,561,394)

41 General Administration 1,069,289 -- -- (1,069,289)

51 Plant Maintenance and Operations 6,603,713 6,517 12,262 (6,584,934)

52 Security and Monitoring Services 84,104 -- -- (84,104)

53 Data Processing Services 1,059,560 -- -- (1,059,560)

61 Community Services 19,598 -- 19,598 --

72 Interest on Long-term Debt 5,636,992 -- -- (5,636,992)

73 Bond Issuance Costs and Fees 42,548 -- -- (42,548)

91 Contracted Instructional Services between Schools 1,928,311 -- -- (1,928,311)

95 Payments to Juvenile Justice Alternative Ed. Programs 47,250 -- -- (47,250)

99 Other Intergovernmental Charges 336,234 -- -- (336,234)

TG Total Governmental Activities 52,968,192 1,848,788 3,779,537 (47,339,867)

TP Total Primary Government $ 52,968,192 $ 1,848,788 $ 3,779,537 (47,339,867)

General Revenues:

MT Property Taxes, Levied for General Purposes 25,066,270

DT Property Taxes, Levied for Debt Service 11,148,690

IE Investment Earnings 52,642

GC Grants and Contributions Not Restricted to Specific Programs 9,713,969

MI Miscellaneous 4,215,734

TR Total General Revenues 50,197,305

CN Change in Net Assets 2,857,438

NB Net Assets - Beginning 35,536,512

NE Net Assets - Ending $ 38,393,950


11

85

EXHIBIT C-1

PORT NECHES-GROVES INDEPENDENT SCHOOL DISTRICTBALANCE SHEET - GOVERNMENTAL FUNDS

AUGUST 31, 2012

10 50 98

Data Debt Other TotalControl General Service Governmental GovernmentalCodes Fund Fund Funds Funds

ASSETS:

1110 Cash and Cash Equivalents $ 2,500 $ 19,483 $ 1,082,972 $ 1,104,9551120 Current Investments 20,817,691 1,174,707 2,953,810 24,946,2081225 Taxes Receivable, Net 665,243 174,882 -- 840,125

1240 Due from Other Governments 1,919,362 -- 282,115 2,201,4771250 Accrued Interest 10,014 -- -- 10,0141260 Due from Other Funds 157,361 -- -- 157,3611290 Other Receivables 41,462 5,495 -- 46,957

1300 Inventories -- -- 52,115 52,1151410 Deferred Expenditures 854,120 -- -- 854,1201490 Other Current Assets -- -- 17,800 17,8001000 Total Assets $ 24,467,753 $ 1,374,567 $ 4,388,812 $ 30,231,132

LIABILITIES:

Current Liabilities:

2110 Accounts Payable $ 370,219 $ -- $ 447,378 $ 817,5972150 Payroll Deductions & Withholdings 4,453 -- -- 4,4532160 Accrued Wages Payable 1,529,384 -- 131,780 1,661,1642170 Due to Other Funds 2,224,711 -- 157,361 2,382,072

2180 Due to Other Governments 602,682 -- -- 602,6822200 Accrued Expenditures 112,208 -- -- 112,2082300 Deferred Revenue 850,843 163,691 83,680 1,098,214

2000 Total Liabilities 5,694,500 163,691 820,199 6,678,390

FUND BALANCES:

Nonspendable Fund Balances:

3410 Inventories -- -- 52,115 52,115Restricted Fund Balances:

3450 Federal/State Funds Grant Restrictions -- -- 893,332 893,3323470 Capital Acquisitions & Contractual Obligations -- -- 2,623,166 2,623,166

3480 Retirement of Long-Term Debt -- 1,210,876 -- 1,210,8763600 Unassigned 18,773,253 -- -- 18,773,2533000 Total Fund Balances 18,773,253 1,210,876 3,568,613 23,552,742

4000 Total Liabilities and Fund Balances $ 24,467,753 $ 1,374,567 $ 4,388,812 $ 30,231,132


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86

EXHIBIT C-1R

PORT NECHES-GROVES INDEPENDENT SCHOOL DISTRICTRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET ASSETS

AUGUST 31, 2012

Total fund balances - governmental funds balance sheet $ 23,552,742

Amounts reported for governmental activities in the Statement of Net Assets("SNA") are different because:

Capital assets used in governmental activities are not reported in the funds. 138,116,274Property taxes receivable unavailable to pay for current period expenditures are deferred in the funds. 801,380

The assets and liabilities of internal service funds are included in governmental activities in the SNA. 2,867,604

Payables for bond principal which are not due in the current period are not reported in the funds. (123,086,077)

The accumulated accretion of interest on capital appreciation bonds is not reported in the funds. (2,041,580)Payables for bond interest which are not due in the current period are not reported in the funds. (241,905)

Payables for compensated absences which are not due in the current period are not reported in the funds. (431,513)

The deferred gain/(loss) on the refunding of bonds is capitalized in the SNA but not in the funds. 56,700Bond premium is deferred in the SNA but not in the funds. (1,971,229)

Bond issuance costs and similar items are capitalized in the SNA but not in the funds. 771,555

Rounding difference (1)

Net assets of governmental activities - Statement of Net Assets $ 38,393,950


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87

EXHIBIT C-2

PORT NECHES-GROVES INDEPENDENT SCHOOL DISTRICTSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCES - GOVERNMENTAL FUNDS


10 50 98

Data Debt Other TotalControl General Service Governmental GovernmentalCodes Fund Fund Funds Funds

REVENUES:

5700 Local and Intermediate Sources $ 29,575,940 $ 11,137,100 $ 1,600,673 $ 42,313,7135800 State Program Revenues 9,137,421 -- 560,240 9,697,6615900 Federal Program Revenues 15,198 -- 3,734,131 3,749,329

5020 Total Revenues 38,728,559 11,137,100 5,895,044 55,760,703

EXPENDITURES:

Current:

0011 Instruction 19,362,582 -- 3,107,764 22,470,3460012 Instructional Resources and Media Services 623,628 -- 25,509 649,1370013 Curriculum and Staff Development 750,936 -- 105,902 856,8380023 School Leadership 1,942,905 -- -- 1,942,905

0031 Guidance, Counseling, & Evaluation Services 1,429,070 -- 6,389 1,435,4590033 Health Services 549,241 -- -- 549,2410034 Student Transportation 742,024 -- -- 742,024

0035 Food Service -- -- 2,381,338 2,381,3380036 Cocurricular/Extracurricular Activities 1,586,536 -- 12,534 1,599,0700041 General Administration 928,667 -- -- 928,6670051 Plant Maintenance and Operations 5,717,445 -- 12,262 5,729,707

0052 Security and Monitoring Services 70,628 -- -- 70,6280053 Data Processing Services 539,633 -- -- 539,6330061 Community Services -- -- 19,598 19,598

0071 Principal on Long-term Debt -- 5,240,000 -- 5,240,0000072 Interest on Long-term Debt -- 5,623,160 -- 5,623,1600073 Bond Issuance Costs and Fees -- 2,300 -- 2,3000081 Capital Outlay -- -- 2,401,931 2,401,931

0091 Contracted Instructional Services

0091 Between Public Schools 1,928,311 -- -- 1,928,3110095 Payments to Juvenile Justice Altermative

0095 Education Programs 47,250 -- -- 47,250

0099 Other Intergovernmental Charges 336,234 -- -- 336,2346030 Total Expenditures 36,555,090 10,865,460 8,073,227 55,493,777

1100 Excess (Deficiency) of Revenues Over (Under)1100 Expenditures 2,173,469 271,640 (2,178,183) 266,9261200 Net Change in Fund Balances 2,173,469 271,640 (2,178,183) 266,926

0100 Fund Balances - Beginning 16,599,784 939,236 5,746,796 23,285,8163000 Fund Balances - Ending $ 18,773,253 $ 1,210,876 $ 3,568,613 $ 23,552,742


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88

EXHIBIT C-3

PORT NECHES-GROVES INDEPENDENT SCHOOL DISTRICTRECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF ACTIVITIES


Net change in fund balances - total governmental funds $ 266,926

Amounts reported for governmental activities in the Statement of Activities

("SOA") are different because:

Capital outlays are not reported as expenses in the SOA. 2,017,804

The depreciation of capital assets used in governmental activities is not reported in the funds. (4,993,449)

Certain property tax revenues are deferred in the funds. This is the change in these amounts this year. 64,927

Repayment of bond principal is an expenditure in the funds but is not an expense in the SOA. 5,240,000

Bond issuance costs and similar items are amortized in the SOA but not in the funds. (32,148)

The accretion of interest on capital appreciation bonds is not reported in the funds. (137,331)

(Increase) decrease in accrued interest from beginning of period to end of period. 8,996

The net revenue (expense) of internal service funds is reported with governmental activities. 351,147

Compensated absences are reported as the amount earned in the SOA but as the amount paid in the funds. (35,838)

Bond premiums are reported in the funds but not in the SOA. 114,503

The deferred gain/(loss) on the refunding of bonds is amortized in the SOA but not in the funds. (8,100)

Rounding difference 1

Change in net assets of governmental activities - Statement of Activities $ 2,857,438


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EXHIBIT D-1

PORT NECHES-GROVES INDEPENDENT SCHOOL DISTRICTSTATEMENT OF NET ASSETS

INTERNAL SERVICE FUND

AUGUST 31, 2012

Nonmajor

Internal Service

Fund

Data Workers'

Control Compensation

Codes Insurance Fund

ASSETS:

Current Assets:

1110 Cash and Cash Equivalents $ 670,055

Receivables:

1260 Due from Other Funds 2,224,711

Total Current Assets 2,894,766

1000 Total Assets $ 2,894,766

LIABILITIES:

Current Liabilities:

2200 Accrued Expenditures/Expenses $ 27,162

Total Current Liabilities 27,162

2000 Total Liabilities 27,162

NET ASSETS:

3900 Unrestricted Net Assets 351,147

3000 Total Net Assets $ 2,867,604


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EXHIBIT D-2

PORT NECHES-GROVES INDEPENDENT SCHOOL DISTRICTSTATEMENT OF REVENUES, EXPENSES, AND CHANGES

IN FUND NET ASSETS - INTERNAL SERVICE FUND


Nonmajor

Internal Service

Fund

Data Workers'

Control Compensation

Codes Insurance Fund

OPERATING REVENUES:

5700 Local and Intermediate Sources $ 400,502

5020 Total Revenues 400,502

OPERATING EXPENSES:

6400 Other Operating Costs 49,355

6030 Total Expenses 49,355

1300 Change in Net Assets 351,147

0100 Total Net Assets - Beginning 2,516,457

3300 Total Net Assets - Ending $ 2,867,604


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EXHIBIT D-3

PORT NECHES-GROVES INDEPENDENT SCHOOL DISTRICTSTATEMENT OF CASH FLOWS

PROPRIETARY FUNDS


Nonmajor

Internal Service

Fund

Workers'

Compensation

Insurance Fund

Cash Flows from Operating Activities:

Cash Receipts (Payments) for Quasi-external $

Operating Transactions with Other Funds 69,166

Cash Payments to Suppliers for Services (61,125)

Net Cash Provided (Used) by Operating Activities 8,041

Net Increase (Decrease) in Cash and Cash Equivalents 8,041

Cash and Cash Equivalents at Beginning of Year 662,014

Cash and Cash Equivalents at End of Year $ 670,055

Reconciliation of Operating Income to Net Cash

Provided by Operating Activities:

Operating Income (Loss) $ 351,147

Adjustments to Reconcile Operating Income to Net Cash

Provided by Operating Activities

Depreciation --

Provision for Uncollectible Accounts --

Change in Assets and Liabilities:

Decrease (Increase) in Receivables (331,336)

Increase (Decrease) in Accounts Payable (5,524)

Increase (Decrease) in Accrued Expenses (6,246)

Total Adjustments (343,106)

Net Cash Provided (Used) by Operating Activities $ 8,041


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EXHIBIT E-1

PORT NECHES-GROVES INDEPENDENT SCHOOL DISTRICTSTATEMENT OF FIDUCIARY NET ASSETS

FIDUCIARY FUNDS

AUGUST 31, 2012

DataControlCodes Bequests

ASSETS:

1800 Restricted Assets $ 22,0251000 Total Assets $ 22,025

LIABILITIES:

2000 Total Liabilities --

NET ASSETS

3800 Held in Trust $ 22,0253000 Total Net Assets $ 22,025


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EXHIBIT E-2

PORT NECHES-GROVES INDEPENDENT SCHOOL DISTRICTSTATEMENT OF CHANGES IN FIDUCIARY NET ASSETS

FIDUCIARY FUNDS


Private-purpose

Trust

Fund

Bequests

Additions:

Bequests $ --

Total Additions --

Deductions:

Athletic Facilities Improvements 11,229

Total Deductions 11,229

Change in Net Assets (11,229)

Net Assets-Beginning of the Year 33,254

Net Assets-End of the Year $ 22,025


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NOTES TO THE FINANCIAL STATEMENTS


A. Summary of Significant Accounting Policies

The basic financial statements of Port Neches-Groves Independent School District (the "District") have been prepared

in conformity with accounting principles generally accepted in the United States of America ("GAAP") applicable to

governmental units in conjunction with the Texas Education Agency's Financial Accountability System Resource

Guide ("Resource Guide"). The Governmental Accounting Standards Board ("GASB") is the accepted standard setting

body for establishing governmental accounting and financial reporting principles.

1. Reporting Entity

The Board of School Trustees ("Board"), a seven-member group, has governance responsibilities over all activities

related to public elementary and secondary education within the jurisdiction of the District. The Board is elected by the

public and has the exclusive power and duty to govern and oversee the management of the public schools of the

District. All powers and duties not specifically delegated by statute to the Texas Education Agency ("TEA") or to the

State Board of Education are reserved for the Board, and the TEA may not substitute its judgment for the lawful

exercise of those powers and duties by the Board. The District receives funding from local, state and federal

government sources and must comply with the requirements of those funding entities. However, the District is not

included in any other governmental "reporting entity" as defined by the GASB in its Statement No. 14, "The Financial

Reporting Entity," as revised by GASB Statement No.39, and there are no component units included within the reporting

entity.

2. Basis of Presentation, Basis of Accounting

a. Basis of Presentation

Government-wide Financial Statements: The statement of net assets and the statement of activities

include the financial activities of the overall government, except for fiduciary activities. Eliminations have

been made to minimize the double-counting of internal activities. Governmental activities generally are

financed through taxes, intergovernmental revenues, and other nonexchange transactions.

The statement of activities presents a comparison between direct expenses and program revenues for

each function of the District's governmental activities. Direct expenses are those that are specifically

associated with a program or function and, therefore, are clearly identifiable to a particular function. The

District does not allocate indirect expenses in the statement of activities. Program revenues include (a)

fees, fines, and charges paid by the recipients of goods or services offered by the programs and (b) grants

and contributions that are restricted to meeting the operational or capital requirements of a particular

program. Revenues that are not classified as program revenues, including all taxes, are presented as

general revenues.

Fund Financial Statements: The fund financial statements provide information about the District's funds,

with separate statements presented for each fund category. The emphasis of fund financial statements is

on major governmental funds, each displayed in a separate column. All remaining governmental funds

are aggregated and reported as nonmajor funds.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions

associated with the principal activity of the fund. Exchange transactions are those in which each party receives

and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings,

result from nonexchange transactions or ancillary activities.

The District reports the following major governmental funds:

General Fund: This is the District's primary operating fund. It accounts for all financial resources of the

District except those required to be accounted for in another fund.

Debt Service Fund: This fund accounts for the payment of bonded debt principal and interest payments

and the resultant property taxes.

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In addition, the District reports the following fund types:

Internal Service Funds: These funds are used to account for revenues and expenses related to services provided

to parties inside the District. These funds facilitate distribution of support costs to the users of support

services on a cost-reimbursement basis. Because the principal users of the internal services are the

District's governmental activities, this fund type is included in the "Governmental Activities" column of the

government-wide financial statements.

Private-Purpose Trust Funds: These funds are used to report trust arrangements under which principal and

income benefit individuals, private organizations, or other governments not reported in other fiduciary fund types.

Fiduciary funds are reported in the fiduciary fund financial statements. However, because their assets are held in

a trustee or agent capacity and are therefore not available to support District programs, these funds are not

included in the government-wide statements.

b. Measurement Focus, Basis of Accounting

Government-wide, Proprietary, and Fiduciary Fund Financial Statements: These financial statements are

reported using the economic resources measurement focus. The government-wide and proprietary fund

financial statements are reported using the accrual basis of accounting. Revenues are recorded when

earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash

flows take place. Nonexchange transactions, in which the District gives (or receives) value without directly

receiving (or giving) equal value in exchange, include property taxes, grants, entitlements, and

donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the

taxes are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year in

which all eligibility requirements have been satisfied.

Governmental Fund Financial Statements: Governmental funds are reported using the current financial

resources measurement focus and the modified accrual basis of accounting. Under this method, revenues

are recognized when measurable and available. The District considers all revenues reported in the

governmental funds to be available if the revenues are collected within sixty days after year-end.

Revenues from local sources consist primarily of property taxes. Property tax revenues and revenues

received from the State are recognized under the susceptible-to-accrual concept. Miscellaneous

revenues are recorded as revenue when received in cash because they are generally not measurable until

actually received. Investment earnings are recorded as earned, since they are both measurable and

available. Expenditures are recorded when the related fund liability is incurred, except for principal and

interest on general long-term debt, claims and judgments, and compensated absences, which are

recognized as expenditures to the extent they have matured. General capital asset acquisitions are

reported as expenditures in governmental funds. Proceeds of general long-term debt and acquisitions

under capital leases are reported as other financing sources.

When the District incurs an expenditure or expense for which both restricted and unrestricted resources may

be used, it is the District's policy to use restricted resources first, then unrestricted resources.

Under GASB Statement No. 20, "Accounting and Financial Reporting for Proprietary Funds and Other

Governmental Entities That Use Proprietary Fund Accounting," all proprietary funds will continue to

follow Financial Accounting Standards Board ("FASB") standards issued on or before November 30, 1989.

However, from that date forward, proprietary funds will have the option of either 1) choosing not to apply

future FASB standards (including amendments of earlier pronouncements), or 2) continuing to follow new

FASB pronouncements unless they conflict with GASB guidance. The District has chosen not to apply

future FASB standards.

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3. Financial Statement Amounts

a. Cash and Cash Equivalents

For purposes of the statement of cash flows, highly liquid investments are considered to be cash equivalents if they

have a maturity of three months or less when purchased.

b. Property Taxes

Property taxes are levied by October 1 on the assessed value listed as of the prior January 1 for all real

and business personal property in conformity with Subtitle E, Texas Property Tax Code. Taxes are due on

receipt of the tax bill and are delinquent if not paid before February 1 of the year following the year in

which imposed. On January 1 of each year, a tax lien attaches to property to secure the payment of all

taxes, penalties, and interest ultimately imposed. Property tax revenues are considered available

(1) when they become due or past due and receivable within the current period and (2) when they are

expected to be collected during a 60-day period after the close of the fiscal year.

Allowances for uncollectible tax receivables within the General and Debt Service Funds are based upon

historical experience in collecting property taxes. Uncollectible personal property taxes are periodically

reviewed and written off, but the District is prohibited from writing off real property taxes without specific

statutory authority from the Texas Legislature.

c. Inventories and Prepaid Items

The District records purchases of supplies as expenditures, utilizing the purchase method of accounting for

inventory in accordance with the Resource Guide.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid

items.

d. Capital Assets

Purchased or constructed capital assets are reported at cost or estimated historical cost. Donated fixed assets

are recorded at their estimated fair value at the date of the donation. The cost of normal maintenance and repairs

that do not add to the value of the asset or materially extend assets' lives are not capitalized. A capitalization

threshold of $5,000 is used.

Capital assets are being depreciated using the straight-line method over the following estimated useful lives:

Estimated

Asset Class Useful Lives

Infrastructure 30

Buildings 50

Building Improvements 20

Vehicles 2-15

Office Equipment 3-15

Computer Equipment 3-15

e. Receivable and Payable Balances

The District believes that sufficient detail of receivable and payable balances is provided in the financial

statements to avoid the obscuring of significant components by aggregation. Therefore, no disclosure is provided

which disaggregates those balances.

There are no significant receivables which are not scheduled for collection within one year of year end.

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f. Compensated Absences

On retirement of certain employees, the District pays any accrued local sick leave in a lump case payment

to such employee.

g Interfund Activity

Interfund activity results from loans, services provided, reimbursements or transfers between funds. Loans are

reported as interfund receivables and payables as appropriate and are subject to elimination upon consolidation.

Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures or

expenses. Reimbursements occur when one fund incurs a cost, charges the appropriate benefiting fund and

reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers In

and Transfers Out are netted and presented as a single "Transfers" line on the government-wide statement of

activities. Similarly, interfund receivables and payables are netted and presented as a single "Internal Balances"

line of the government-wide statement of net assets.

h. Use of Estimates

The preparation of financial statements in conformity with GAAP requires the use of management's estimates.

i. Data Control Codes

Data Control Codes appear in the rows and above the columns of certain financial statements. The TEA requires

the display of these codes in the financial statements filed with TEA in order to insure accuracy in building a

statewide database for policy development and funding plans.

j. Fund Balances - Governmental Funds

Fund balances of the governmental funds are classified as follows:

Nonspendable Fund Balance - represents amounts that cannot be spent because they are either not in

spendable form (such as inventory or prepaid insurance) or legally required to remain intact (such as notes

receivable or principal of a permanent fund).

Restricted Fund Balance - represents amounts that are constrained by external parties, constitutional

provisions or enabling legislation.

Committed Fund Balance - represents amounts that can only be used for a specific purpose because of a

formal action by the District's governing board. Committed amounts cannot be used for any other purpose

unless the governing board removes those constraints by taking the same type of formal action.

Committed fund balance amounts may be used for other purposes with appropriate due process by the

governing board. Commitments are typically done through adoption and amendment of the budget.

Committed fund balance amounts differ from restricted balances in that the constraints on their use do not

come from outside parties, constitutional provisions, or enabling legislation.

Assigned Fund Balance - represents amounts which the District intends to use for a specific purpose, but

that do not meet the criteria to be classified as restricted or committed. Intent may be stipulated by the

governing board or by an official or body to which the governing board delegates the authority. Specific

amounts that are not restricted or committed in a special revenue, capital projects, debt service or

permanent fund are assigned for purposes in accordance with the nature of their fund type or the fund's

primary purpose. Assignments within the general fund conveys that the intended use of those amounts is

for a specific purpose that is narrower than the general purposes of the District itself.

Unassigned Fund Balance - represents amounts which are unconstrained in that they may be spent for

any purpose. Only the general fund reports a positive unassigned fund balance. Other governmental

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funds might report a negative balance in this classification because of overspending for specific purposes

for which amounts had been restricted, committed or assigned.

When an expenditure is incurred for a purpose for which both restricted and unrestricted fund balance is

available, the District considers restricted funds to have been spent first. When an expenditure is incurred

for which committed, assigned, or unassigned fund balances are available, the District considers amounts

to have been spent first out of committed funds, then assigned funds, and finally unassigned funds.

B. Compliance and Accountability

1. Finance-Related Legal and Contractual Provisions

In accordance with GASB Statement No. 38, "Certain Financial Statement Note Disclosures," violations of finance-

related legal and contractual provisions, if any, are reported below, along with actions taken to address such violations:

Violation Action Taken

None reported Not applicable

2. Deficit Fund Balance or Fund Net Assets of Individual Funds

Following are funds having deficit fund balances or fund net assets at year end, if any, along with remarks which address

such deficits:

Deficit

Fund Name Amount Remarks

None reported Not applicable Not applicable

C. Deposits and Investments

The District's funds are required to be deposited and invested under the terms of a depository contract. The depository

bank deposits for safekeeping and trust with the District's agent bank approved pledged securities in an amount sufficient

to protect District funds on a day-to-day basis during the period of the contract. The pledge of approved securities is

waived only to the extent of the depository bank's dollar amount of Federal Deposit Insurance Corporation ("FDIC")

insurance.

1. Cash Deposits:

At August 31, 2012, the carrying amount of the District's deposits (cash, certificates of deposit, and

interest-bearing savings accounts included in temporary investments) was $1,775,010 and the bank balance was

$8,166,360. The District's cash deposits at August 31, 2012 and during the year ended August 31, 2012, were

entirely covered by FDIC insurance or by pledged collateral held by the District's agent bank in the District's

name.

2. Investments:

The District is required by Government Code Chapter 2256, The Public Funds Investment Act, to adopt,

implement, and publicize an investment policy. That policy must address the following areas: (1) safety of

principal and liquidity, (2) portfolio diversification, (3) allowable investments, (4) acceptable risk levels, (5)

expected rates of return, (6) maximum allowable stated maturity of portfolio investments, (7) maximum average

dollar-weighted maturity allowed based on the stated maturity date for the portfolio, (8) investment staff quality

and capabilities, and (9) bid solicitation preferences for certificates of deposit.

The Public Funds Investment Act ("Act") requires an annual audit of investment practices. Audit procedures in

this area conducted as a part of the audit of the basic financial statements disclosed that in the areas of

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investment practices, management reports and establishment of appropriate policies, the District adhered to the

requirements of the Act. Additionally, investment practices of the District were in accordance with local policies.

The Act determines the types of investments which are allowable for the District. These include, with certain

restrictions, 1) obligations of the U.S. Treasury, U.S. agencies, and the State of Texas, 2) certificates of deposit,

3) certain municipal securities, 4) securities lending program, 5) repurchase agreements, 6) bankers acceptances,

7) mutual funds, 8) investment pools, 9) guaranteed investment contracts, and 10) commercial paper.

The District's investments at August 31, 2012 are shown below.

Investment or Investment Type Maturity Ratings Fair Value Percentage

Lone Star Investment Pool-Govt. Overnight 34 days average AAA-m $ 10,352,953 41.50%

Texas Short Term Asset Reserve (TexSTAR)

Investment Pool 49 days average AAA-m 8,546,080 34.26%

Certificates of Deposit N/A N/A 6,047,175 24.24%

Total Investments $ 24,946,208 100.00%

3. Analysis of Specific Deposit and Investment Risks

GASB Statement No. 40 requires a determination as to whether the District was exposed to the following specific

investment risks at year end and if so, the reporting of certain related disclosures:

a. Credit Risk

Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The ratings

of securities by nationally recognized rating agencies are designed to give an indication of credit risk. At year end,

the District was not significantly exposed to credit risk.

b. Custodial Credit Risk

Deposits are exposed to custodial credit risk if they are not covered by depository insurance and the

deposits are uncollateralized, collateralized with securities held by the pledging financial institution, or

collateralized with securities held by the pledging financial institution's trust department or agent but not in the

District's name.

Investment securities are exposed to custodial credit risk if the securities are uninsured, are not registered in

the name of the government, and are held by either the counterparty or the counterparty's trust department

or agent but not in the District's name.

At year end, the District was not exposed to custodial credit risk.

c. Concentration of Credit Risk

This risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. At year

end, the District was not exposed to concentration of credit risk.

d. Interest Rate Risk

This is the risk that changes in interest rates will adversely affect the fair value of an investment. At year end,

the District was not exposed to interest rate risk.

e. Foreign Currency Risk

This is the risk that exchange rates will adversely affect the fair value of an investment. At year end, the

District was not exposed to foreign currency risk.

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Investment Accounting Policy

The District's general policy is to report money market investments and short-term participating interest-earning

investment contracts at amortized cost and to report nonparticipating interest-earning investment contracts using a

cost-based measure. However, if the fair value of an investment is significantly affected by the impairment of the credit

standing of the issuer or by other factors, it is reported at fair value. All other investments are reported at fair value unless a

legal contract exists which guarantees a higher value. The term "short-term" refers to investments which have a remaining

term of one year or less at time of purchase. The term "nonparticipating" means that the investment's value does not vary

with market interest rate changes. Nonnegotiable certificates of deposit are examples of nonparticipating interest-earning

investment contracts.

Public Funds Investment Pools

Public funds investment pools in Texas ("Pools") are established under the authority of the Interlocal Cooperation Act,

Chapter 79 of the Texas Government Code, and are subject to the provisions of the Public Funds Investment Act (the "Act"),

Chapter 2256 of the Texas Government Code. In addition to other provisions of the Act designed to promote liquidity and

safety of principal, the Act requires Pools to: 1) have an advisory board composed of participants in the pool and other

persons who do not have a business relationship with the pool and are qualified to advise the pool; 2) maintain a continuous

rating of no lower than AAA or AAA-m or an equivalent rating by at least one nationally recognized rating service; and 3)

maintain the market value of its underlying investment portfolio within one half of one percent of the value of its shares.

The District's investments in Pools are reported at an amount determined by the fair value per share of the pool's underlying

portfolio, unless the pool is 2a7-like, in which case they are reported at share value. A 2a7-like pool is one which is not

registered with the Securities and Exchange Commission ("SEC") as an investment company, but nevertheless has a policy

that it will, and does, operate in a manner consistent with the SEC's Rule 2a7 of the Investment Company Act of 1940.

D. Capital Assets

Capital asset activity for the year ended August 31, 2012, was as follows:

Beginning Ending

Balances Increases Decreases Balances

Governmental activities:

Capital assets not being depreciated:

Land $ 1,217,225 $ -- $ -- $ 1,217,225

Total capital assets not being depreciated 1,217,225 -- -- 1,217,225

Capital assets being depreciated:

Buildings and improvements 162,105,587 1,925,503 -- 164,031,090

Equipment 6,695,897 92,301 -- 6,788,198

Vehicles 3,926,979 -- -- 3,926,979

Total capital assets being depreciated 172,728,463 2,017,804 -- 174,746,267

Less accumulated depreciation for:

Buildings and improvements (28,418,962) (3,781,643) -- (32,200,605)

Equipment (2,436,682) (1,001,409) -- (3,438,091)

Vehicles (1,998,126) (210,397) -- (2,208,523)

Total accumulated depreciation (32,853,770) (4,993,449) -- (37,847,219)

Total capital assets being depreciated, net 139,874,693 (2,975,645) -- 136,899,048

Governmental activities capital assets, net $ 141,091,918 $ (2,975,645) $ -- $ 138,116,273

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Depreciation was charged to functions as follows:

Instruction $ 2,781,746

Instructional Resources and Media Services 88,526

Curriculum and Staff Development 111,972

School Leadership 278,277

Guidance, Counseling, & Evaluation Services 202,951

Health Services 77,732

Student Transportation 104,667

Extracurricular Activities 241,723

General Administration 140,622

Plant Maintenance and Operations 874,006

Security and Monitoring Services 13,476

Data Processing Services 77,751

$ 4,993,449

E. Interfund Balances and Activities

1. Due To and From Other Funds

Balances due to and due from other funds at August 31, 2012, consisted of the following:

Due To Fund Due From Fund Amount Purpose

Internal Service-Workers' Comp. General Fund $ 2,224,711 Short-term loans

Other Governmental Funds General Fund 157,361 Short-term loans

Total $ 2,382,072

All amounts due are scheduled to be repaid within one year.

2. Transfers To and From Other Funds

Transfers to and from other funds at August 31, 2012, consisted of the following:

Transfers From Transfers To Amount Reason

None None $ -- N/A

Total $ --

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F. Long-Term Obligations

The District has entered into a continuing disclosure undertaking to provide Annual Reports and Material Event Notices

to the State Information Depository of Texas, which is the Municipal Advisory Council. This information is required under

SEC Rule 15c2-12 to enable investors to analyze the financial condition and operations of the District.

1. Long-Term Obligation Activity

Long-term obligations include debt and other long-term liabilities. Changes in long-term obligations for the year ended

August 31, 2012, are as follows:

Amounts

Interest Beginning Ending Due Within

Series Rates Balance Increases Decreases Balance One Year

Governmental activities:

2005 3.875-4.50% $ 5,850,000 $ -- $ 1,000,000 $ 4,850,000 $ 1,000,000

2007 4.00-5.00% 18,328,539 -- 960,000 17,368,539 975,000

2008 3.75-5.00% 56,890,000 -- 1,455,000 55,435,000 1,530,000

2009 2.00-5.00% 43,447,538 -- 1,340,000 42,107,538 1,410,000

2010 2.004.25% 3,810,000 -- 485,000 3,325,000 480,000

128,326,077 -- 5,240,000 123,086,077 5,395,000

Accumulated Accretion-CAB's 1,904,249 137,331 -- 2,041,580 --

Compensated absences * 395,676 35,837 -- 431,513 --

Deferred Gain/(Loss) Refund (64,800) -- (8,100) (56,700) --

Premium on Bonds * 2,085,732 -- 114,503 1,971,229 --

Total governmental activities $ 132,646,934 $ 173,168 $ 5,346,403 $ 127,473,699 $ 5,395,000

* Other long-term liabilities

The funds typically used to liquidate other long-term liabilities in the past are as follows:

Liability Activity Type Fund

Compensated absences Governmental General Fund

2. Debt Service Requirements

Debt service requirements on long-term debt at August 31, 2012, are as follows:

Governmental Activities

Year Ending August 31, Principal Interest Total

2013 $ 5,395,000 $ 5,427,916 $ 10,822,916

2014 5,223,539 5,524,708 10,748,247

2015 5,610,000 5,043,841 10,653,841

2016 4,684,019 5,860,672 10,544,691

2017 4,723,519 5,741,647 10,465,166

2018-2022 23,740,000 20,147,476 43,887,476

2023-2027 28,000,000 14,516,513 42,516,513

2028-2032 35,580,000 7,094,953 42,674,953

2033-2037 10,130,000 406,250 10,536,250

Totals $ 123,086,077 $ 69,763,976 $ 192,850,053

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3. Advance Refunding of Debt

During 2010 the District issued $4.375 million in Unlimited Tax Refunding Bonds to refund a portion of the

District's Series 1998 bonds. The proceeds of the refunding bonds net of the related debt service costs of

amounted to $4.581 million and was deposited with an escrow agent to purchase direct obligations of the

United States. As a result of the refunding, the District decreased its aggregate debt service payment to maturity

by $0.26 million and realized a economic gain (difference between the present value of debt service payments

on the old debt and the new debt) of $0.23 million. GASB Statement No. 7, "Advance Refundings Resulting in

Defeasance of Debt," provides that refunded debt and assets placed in escrow for the payment of related debt

service be excluded from the financial statements. As of August 31, 2012, outstanding balances of bond issues

that have been refunded and defeased in-substance by placing existing assets and the proceeds of new bonds in

an irrevocable trust to provide for all future debt service payments are as follows.

Bond Issue Amount

Series 1998 $ 4,000,000

Total $ 4,000,000

G. Risk Management

The District is exposed to various risks of loss related to torts, theft, damage or destruction of assets, errors and

omissions, injuries to employees, and natural disasters. During fiscal year 2012, the District purchased commercial

insurance to cover general liabilities. There were no significant reductions in coverage in the past fiscal year and

there were no settlements exceeding insurance coverage for each of the past three fiscal years.

H. Pension Plan

1. Plan Description

The District contributes to the Teacher Retirement System of Texas (the "System"), a public employee retirement

system. It is a cost-sharing, multiple-employer defined benefit pension plan with one exception: all risks and costs

are not shared by the District, but are the liability of the State of Texas. The System provides service retirement and

disability retirement benefits, and death benefits to plan members and beneficiaries. The System operates primarily

under the provisions of the Texas Constitution and Texas Government Code, Title 8, Subtitle C. The Texas legislature

has the authority to establish or amend benefit provisions. The System issues a publicly available financial report that

includes financial statements and required supplementary information for the District. That report may be obtained

by writing the Teacher Retirement System of Texas, 1000 Red River Street, Austin, TX 78701-2698 or by calling (800)

223-8778.

2. Funding Policy

Under provisions in State law, plan members are required to contribute 6.4% of their annual covered salary and

the State of Texas contributes an amount equal to 6.58% of the District's covered payroll. The District's

employees' contributions to the System for the years ending August 31, 2012, 2011 and 2010 were $1,626,068,

$1,691,152 and $1,688,391, respectively, and were equal to the required contributions for each year. Other

contributions made from federal and private grants and from the District for salaries above the statutory minimum

for the years ending August 31, 2012, 2011 and 2010 were $230,231, $284,893 and $267,131, respectively,

and were equal to the required contributions for each year. The amount contributed by the State on behalf of

the District was $1,507,943 for the year ended August 31, 2012.

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I. Retiree Health Care Plan

1. Plan Description

The District contributes to the Texas Public School Retired Employees Group Insurance Program (TRS-Care), a

cost-sharing multiple-employer defined benefit postemployment health care plan administered by the Teacher

Retirement System of Texas (TRS). TRS-Care Retired Plan provides health care coverage for certain persons

(and their dependents) who retired under the Teacher Retirement System of Texas. The statutory authority for

the program is Texas Insurance Code, Chapter 1575. Section 1575.052 grants the TRS Board of Trustees the

authority to establish and amend basic and optional group insurance coverage for participants. The TRS issues

a publicly available financial report that includes financial statements and required supplementary information

for TRS-Care. That report may be obtained by visiting the TRS web site at www.trs.state.tx.us, by writing to

the Communications Department of the Teacher Retirement System of Texas at 1000 Red River Street, Austin,

Texas 78701, or by calling 1-800-223-8778.

2. Funding Policy

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

Texas Legislature. Texas Insurance Code, Sections 1575.202, 203, and 204 establish state, active employee,

and public school contributions, respectively. The State of Texas and active public school employee

contribution rates were 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. For the years ended August 31, 2012, 2011, and 2010, the State's

contributions to TRS-Care were $254,073, $264,243, and $263,811, respectively, the active member

contributions were $165,148, $171,758, and $171,477, respectively, and the District's contributions were

$139,740, $145,334, and $145,096, respectively, which equaled the required contributions each year.

The Medicare Prescription Drug, Improvement, and Modernization Act of 2003, which was effective January 1,

2006, estblished 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 $65,855, $71,243, and

$61,073, respectively.

3. Early Retiree Reinsurance Program (ERRP)

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 dependants 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.

This temporary program is available to help enmployers continue to provide coverage to early retirees. ERRP

reimbursement is available on a first come, first served basis for qualified employers that apply and become

certified for the program. TRS has been certified for this program and has received funds from the ERRP

program. For the fiscal year ended June 30, 2012, the amount received by TRS-CARE on behalf of the District

was $60,659.

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J. Employee Health Care Coverage

During the period ended August 31, 2012, employees of the District were covered by a state-wide plan, TRS Active

Care. The District paid premiums of $229 per month per employee to the Plan with the State providing an additional

$75. Employees, at their option may authorize payroll withholdings to pay premiums for dependent coverage. The

Teacher Retirement System of Texas (TRS) manages TRS Active Care. The Plan is administered by Blue Cross and

Blue Shield of Texas, and Scott and White HMO for the medical plan while Medco Health was assigned the

prescription drug plan.

The District's participation is renewable annually.

The latest financial information on the state-wide plan is avavailable from TRS (see note G1).

K. Commitments and Contingencies

1. Contingencies

The District participates in grant programs which are governed by various rules and regulations of the grantor

agencies. Costs charged to the respective grant programs are subject to audit and adjustment by the grantor

agencies; therefore, to the extent that the District has not complied with the rules and regulations governing the

grants, refunds of any money received may be required and the collectibility of any related receivable may be

impaired. In the opinion of the District, there are no significant contingent liabilities relating to compliance with

the rules and regulations governing the respective grants; therefore, no provision has been recorded in the

accompanying basic financial statements for such contingencies.

2. Litigation

No reportable litigation was pending against the District at August 31,2012.

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Required Supplementary Information

Required supplementary information includes financial information and disclosures required by the GovernmentalAccounting Standards Board but not considered a part of the basic financial statements.

107

PORT NECHES-GROVES INDEPENDENT SCHOOL DISTRICT EXHIBIT G-1

GENERAL FUND

BUDGETARY COMPARISON SCHEDULE


1 2 3 Variance with

Data Final Budget

Control Budgeted Amounts Positive

Codes Original Final Actual (Negative)

REVENUES:

5700 Local and Intermediate Sources $ 29,180,814 $ 29,222,674 $ 29,575,940 $ 353,266

5800 State Program Revenues 8,782,069 8,785,722 9,137,421 351,699

5900 Federal Program Revenues -- 15,198 15,198 --

5020 Total Revenues 37,962,883 38,023,594 38,728,559 704,965

EXPENDITURES:

Current:

Instruction & Instructional Related Services:

0011 Instruction 19,625,874 19,638,028 19,362,582 275,446

0012 Instructional Resources and Media Services 624,959 624,959 623,628 1,331

0013 Curriculum and Staff Development 819,365 790,480 750,936 39,544

Total Instruction & Instr. Related Services 21,070,198 21,053,467 20,737,146 316,321

Instructional and School Leadership:

0023 School Leadership 1,941,837 1,964,523 1,942,905 21,618

Total Instructional & School Leadership 1,941,837 1,964,523 1,942,905 21,618

Support Services - Student (Pupil):

0031 Guidance, Counseling and Evaluation Services 1,424,232 1,432,751 1,429,070 3,681

0033 Health Services 540,787 548,760 548,758 2

0034 Student (Pupil) Transportation 721,846 738,907 737,002 1,905

0036 Cocurricular/Extracurricular Activities 1,704,491 1,706,469 1,586,536 119,933

Total Support Services - Student (Pupil) 4,391,356 4,426,887 4,301,366 125,521

Administrative Support Services:

0041 General Administration 990,996 992,735 928,667 64,068

Total Administrative Support Services 990,996 992,735 928,667 64,068

Support Services - Nonstudent Based:

0051 Plant Maintenance and Operations 6,170,136 6,170,136 5,722,950 447,186

0052 Security and Monitoring Services 94,437 95,137 70,628 24,509

0053 Data Processing Services 532,108 548,894 539,633 9,261

Total Support Services - Nonstudent Based 6,796,681 6,814,167 6,333,211 480,956

Intergovernmental Charges:

0091 Contracted Instr. Services Between Public Schools 2,248,047 2,248,047 1,928,311 319,736

0095 Payments to Juvenile Justice Alternative

0095 Education Programs 47,250 47,250 47,250 --

0099 Other Intergovernmental Charges 476,518 476,518 336,234 140,284

Total Intergovernmental Charges 2,771,815 2,771,815 2,311,795 460,020

6030 Total Expenditures 37,962,883 38,023,594 36,555,090 1,468,504

1100 Excess (Deficiency) of Revenues Over (Under)

1100 Expenditures -- -- 2,173,469 2,173,469

1200 Net Change in Fund Balance -- -- 2,173,469 2,173,469

0100 Fund Balance - Beginning 16,599,784 16,599,784 16,599,784 --

3000 Fund Balance - Ending $ 16,599,784 $ 16,599,784 $ 18,773,253 $ 2,173,469

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Other Supplementary Information

This section includes financial information and disclosures not required by the Governmental Accounting Standards

Board and not considered a part of the basic financial statements. It may, however, include information which is

required by other entities.

109

PORT NECHES-GROVES INDEPENDENT SCHOOL DISTRICTSCHEDULE OF DELINQUENT TAXES RECEIVABLE


1 2 3

Assessed/Appraised

Year Ended Tax Rates Value For School

August 31 Maintenance Debt Service Tax Purposes

2003 and Prior Years $ Various $ Various $ Various

2004 1.50 .1333 2,594,166,526

2005 1.50 .1278 2,520,174,524

2006 1.50 .119 2,547,235,457

2007 1.37 .1083 2,786,936,542

2008 1.04 .1525 2,787,768,285

2009 1.04 .244 3,206,853,115

2010 1.04 .415 2,713,116,770

2011 1.04 .3965 2,602,981,065

2012 (School Year Under Audit) 1.04 .3965 2,509,824,504

1000 Totals

9000 - Portion of Row 1000 for Taxes Paid into Tax Increment Zone Under Chapter 311, Tax Code

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EXHIBIT J-1

10 20 31 32 40 50Beginning Current Entire Ending

Balance Year's Maintenance Debt Service Year's Balance

9/1/11 Total Levy Collections Collections Adjustments 8/31/12

$ 226,911 $ -- $ 1,279 $ 120 $ (8,924) $ 216,588

24,815 -- 509 45 (952) 23,309

30,287 -- 2,004 171 (949) 27,163

37,862 -- 1,654 131 (1,647) 34,430

43,869 -- 3,572 282 (727) 39,288

44,183 -- 10,256 1,504 (1,023) 31,400

85,441 -- 26,322 6,175 (1,233) 51,711

176,815 -- 49,278 19,661 (3,000) 104,876

337,285 -- 136,161 51,911 10,354 159,567

-- 36,053,629 24,680,505 11,018,349 (33,906) 320,869

$ 1,007,468 $ 36,053,629 $ 24,911,540 $ 11,098,349 $ (42,007) $ 1,009,201

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

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PORT NECHES-GROVES INDEPENDENT SCHOOL DISTRICT EXHIBIT J-2

SCHEDULE OF EXPENDITURES FOR COMPUTATION OF INDIRECT COST FOR 2013-2014

GENERAL AND SPECIAL REVENUE FUNDS


FUNCTION 41 - GENERAL ADMINISTRATION AND FUNCTION 99 - APPRAISAL DISTRICT COST

1 2 3 4 5 6 7

(702) (703) (701) (750) (720) (Other)

Account Account School Tax Supt's Indirect Direct

Number Name Board Collection Office Cost Cost Misc. Total

611X-6146 Payroll Costs $ -- $ -- $ 223,427 $ 269,159 $ 246,691 $ -- $ 739,277

Fringe Benefits (Unused Leave

for Separating Employees in

6149 Function 41 and Related 53) -- -- -- -- -- -- --

Fringe Benefits (Unused Leave

for Separating Employees in

all Functions except Function

6149 41 and Related 53) -- -- -- -- -- -- --

6211 Legal Services -- -- 12,789 -- -- -- 12,789

6212 Audit Services -- -- -- 15,950 -- -- 15,950

6213 Tax Appraisal and Collection -- 341,925 -- -- -- -- 341,925

621X Other Prof. Services -- -- 20,900 1,949 4,566 -- 27,415

6220 Tuition and Transfer Payments -- -- -- -- -- -- --

6230 Education Service Centers 1,500 -- 1,500 -- 638 -- 3,638

6240 Contr. Maint. and Repair -- -- -- -- -- -- --

6250 Utilities -- -- -- -- -- -- --

6260 Rentals -- -- 1,715 11,867 1,873 -- 15,455

6290 Miscellaneous Contr. -- -- -- -- -- -- --

6310 Operational Supplies, Materials -- -- -- -- -- -- --

6320 Textbooks and Reading -- -- -- -- -- -- --

6330 Testing Materials -- -- -- -- -- -- --

63XX Other Supplies, Materials 1,477 -- 2,035 16,328 8,073 -- 27,913

6410 Travel, Subsistence, Stipends 3,161 -- 5,818 6,165 3,315 -- 18,459

6420 Ins. and Bonding Costs -- -- -- 14,317 -- -- 14,317

6430 Election Costs 11,740 -- -- -- -- -- 11,740

6490 Miscellaneous Operating 11,995 -- 13,938 5,903 4,187 -- 36,023

6500 Debt Service -- -- -- -- -- -- --

6600 Capital Outlay -- -- -- -- -- -- --

Total $ 29,873 $ 341,925 $ 282,122 $ 341,638 $ 269,343 $ -- $ 1,264,901

Total Expenditures for General and Special Revenue Funds (9) $ 42,226,386

LESS: Deductions of Unallowable Costs

FISCAL YEAR

Total Capital Outlay (6600) (10) $ 402,127

Total Debt & Lease (6500) (11) $ --

Plant Maintenance (Function 51, 6100-6400) (12) $ 5,701,559

Food (Function 35, 6341 and 6499) (13) $ 1,048,052

Stipends (6413) (14) $ --

Column 4 (above) - Total Indirect Cost $ 341,638

Subtotal 7,493,376

Net Allowed Direct Cost $ 34,733,010

CUMULATIVE

Total Cost of Buildings Before Depreciation (1520) (15) $ 164,031,090

Historical Cost of Buildings over 50 years old (16) 17,089,462

Amount of Federal Money in Building Cost (Net of #16) (17) 2,354,385

Total Cost of Furniture & Equipment Before Depreciation (1530 & 1540) (18) 10,715,177

Historical Cost of Furniture & Equipment over 16 years old (19) 1,311,362

Amount of Federal Money in Furniture & Equipment (Net of #19) (20) $ 133,190

(8) Note A - No Function 53 expenditures and $336,234 in Function 99 expenditures are included in this report on administrative costs.

36

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NATIONAL SCHOOL BREAKFAST AND LUNCH PROGRAM



1 2 3Data Variance

Control Positive

Codes Budget Actual (Negative)

REVENUES:

5700 Local and Intermediate Sources $ 1,576,800 $ 1,547,258 $ (29,542)

5800 State Program Revenues 57,747 53,407 (4,340)

5900 Federal Program Revenues 1,006,500 997,522 (8,978)5020 Total Revenues 2,641,047 2,598,187 (42,860)

EXPENDITURES:

Current:

Support Services - Student (Pupil):

0035 Food Services 2,715,994 2,381,338 334,656

Total Support Services - Student (Pupil) 2,715,994 2,381,338 334,656

6030 Total Expenditures 2,715,994 2,381,338 334,656

1100 Excess (Deficiency) of Revenues Over (Under)

1100 Expenditures (74,947) 216,849 291,796

1200 Net Change in Fund Balance (74,947) 216,849 291,796

0100 Fund Balance - Beginning 728,598 728,598 --

3000 Fund Balance - Ending $ 653,651 $ 945,447 $ 291,796

37

113


DEBT SERVICE FUND



1 2 3Data Variance

Control Positive

Codes Budget Actual (Negative)

REVENUES:

5700 Local and Intermediate Sources $ 10,870,160 $ 11,137,100 $ 266,940

5020 Total Revenues 10,870,160 11,137,100 266,940

EXPENDITURES:

Debt Service:

0071 Principal on Long-Term Debt 5,240,000 5,240,000 --0072 Interest on Long-Term Debt 5,623,160 5,623,160 --

0073 Bond Issuance Costs and Fees 5,000 2,300 2,700

Total Debt Service 10,868,160 10,865,460 2,700

6030 Total Expenditures 10,868,160 10,865,460 2,700

1100 Excess (Deficiency) of Revenues Over (Under)1100 Expenditures 2,000 271,640 269,640

1200 Net Change in Fund Balance 2,000 271,640 269,640

0100 Fund Balance - Beginning 939,236 939,236 --

3000 Fund Balance - Ending $ 941,236 $ 1,210,876 $ 269,640

38

114



Austin, Texas 78759

Independent Auditors' Report

Report on Internal Control over Financial Reporting and on Compliance and

Other Matters Based on an Audit of Financial Statements Performed in

Accordance with Government Auditing Standards

Board of Trustees

Port Neches-Groves Independent School DistrictPort Neches, Texas


We have audited the financial statements of the governmental activities, each major fund, and the aggregate

remaining fund information of Port Neches-Groves Independent School District as of and for the year ended

August 31, 2012, which collectively comprise the Port Neches-Groves Independent School District's basic

financial statements and have issued our report thereon dated January 8, 2013. We conducted our audit in

accordance with auditing standards generally accepted in the United States of America and the standardsapplicable to financial audits contained in Government Auditing Standards, issued by the Comptroller

General of the United States.

Internal Control Over Financial Reporting

Management of Port Neches-Groves Independent School District is responsible for establishing and

maintaining effective internal control over financial reporting. In planning and performing our audit, we

considered Port Neches-Groves Independent School District's internal control over financial reporting as a

basis for designing our auditing procedures for the purpose of expressing our opinions on the financialstatements, but not for the purpose of expressing an opinion on the effectiveness of the Port

Neches-Groves Independent School District's internal control over financial reporting. Accordingly, we do not

express an opinion on the effectiveness of the Port Neches-Groves Independent School 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, ininternal 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.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Port Neches-Groves Independent School 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

39

115



Austin, Texas 78759

Independent Auditors' Report

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

Board of Trustees

Port Neches-Groves Independent School DistrictPort Neches, Texas


Compliance

We have audited Port Neches-Groves Independent School District's compliance with the types of compliance

requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and

material effect on each of Port Neches-Groves Independent School District's major federal programs for the

year ended August 31, 2012. Port Neches-Groves Independent School District's major federal programs areidentified 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 Port Neches-Groves Independent School District's

management. Our responsibility is to express an opinion on Port Neches-Groves Independent School

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 AuditingStandards, 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 Port

Neches-Groves Independent School District's compliance with those requirements and performing such other

procedures as we considered necessary in the circumstances. We believe that our audit provides a

reasonable basis for our opinion. Our audit does not provide a legal determination of Port Neches-GrovesIndependent School District's compliance with those requirements.

In our opinion, Port Neches-Groves 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 Port Neches-Groves Independent School District is responsible for establishing andmaintaining 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 Port

Neches-Groves Independent School 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 purpose of expressing an opinion on the

effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the

effectiveness of Port Neches-Groves Independent School District's internal control over compliance.

41

117


SCHEDULE OF FINDINGS AND QUESTIONED COSTS


A. Summary of Auditor's Results

1. Financial Statements

Type of auditor's report issued: Unqualified

Internal control over financial reporting:

One or more material weaknesses identified? Yes X No

One or more significant deficiencies identified that

are not considered to be material weaknesses? Yes X None Reported

Noncompliance material to financial statements noted? Yes X No

2. Federal Awards

Internal control over major programs:

One or more material weaknesses identified? Yes X No

One or more significant deficiencies identified that

are not considered to be material weaknesses? Yes X None Reported

Type of auditor's report issued on compliance for

major programs: Unqualified

Any audit findings disclosed that are required

to be reported in accordance with section 510(a) of OMB Circular A-133? Yes X No

Identification of major programs:

CFDA Number(s) Name of Federal Program or Cluster

84.410A Education Jobs Fund

10.550 Commodity Supplemental Food Program (Non-cash)

10.553 School Breakfast Program10.555 National School Lunch Program

Dollar threshold used to distinguish between

type A and type B programs: $300,000

Auditee qualified as low-risk auditee? X Yes No

B. Financial Statement FindingsNONE

C. Federal Award Findings and Questioned Costs

NONE

43

119

PORT NECHES-GROVES INDEPENDENT SCHOOL DISTRICT EXHIBIT K-1

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


(1) (2) (2A) (3)

Federal Grantor/ Federal Pass-Through

Pass-Through Grantor/ CFDA Entity Identifying Federal

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 11610101123908 $ 7,602

ESEA Title I Part A - Improving Basic Programs * 84.010A 12610101123908 505,511

Total CFDA Number 84.010A 513,113

IDEA-B Formula * 84.027A 116600011239086600 30,411

IDEA-B Formula * 84.027A 126600011239086600 923,609

IDEA-B Discretionary * 84.027A 126600021239086677 271,787

Total CFDA Number 84.027A 1,225,807

Career and Technical - Basic Grant 84.048A 12420006123908 38,157

IDEA-B Preschool * 84.173A 126610011239086610 30,193


Title III Part A English Language Acquisition and Language Enhancement 84.365A 112671001123908 1,248

Title III Part A English Language Acquisition and Language Enhancement 84.365A 1267100123908 25,670


ESEA Title II Part A - Teacher & Principal Training & Recruiting 84.367A 1169450112398 2,162

ESEA Title II Part A - Teacher & Principal Training & Recruiting 84.367A 12694501123908 165,449


Fund 2892 84.369A 69551102 1,110

ARRA - ESEA, Title I, Part A - Improving Basic Programs * 84.389A 10551001123908 155

ARRA - IDEA-Part B Formula * 84.391A 10554001123908 12,606

ARRA of 2009 Title XIV State Fiscal Stabilization Fund * 84.394A 11557001123908 12,262

Education Jobs Fund 84.410A 11550101123908 708,677

Total Passed Through State Department of Education 2,736,609

Total U. S. Department of Education 2,736,609

U. S. DEPARTMENT OF AGRICULTURE

Passed Through State Department of Education:

Commodity Supplemental Food Program (Non-cash) 10.550 123012A 125,922

School Breakfast Program * 10.553 71401101 158,990

National School Lunch Program * 10.555 71301101 712,611

Total Passed Through State Department of Education 997,523

Total U. S. Department of Agriculture $ 997,523

TOTAL EXPENDITURES OF FEDERAL AWARDS $ 3,734,132

* Indicates clustered program under OMB Circular A-133 Compliance Supplement

The accompanying notes are an integral part of this schedule.

44

120


NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


Basis of Presentation

The accompanying schedule of expenditures of federal awards includes the federal grant activity of Port

Neches-Groves Independent School District and is presented on the modified accrual basis of accounting.

The information in this schedule is presented in accordance with the requirements of OMB Circular A-133,

Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amountspresented in this schedule may differ from amounts presented in, or used in the preparation of, the general

purpose financial statements.

45

121

EXHIBIT K-2

PORT NECHES-GROVES INDEPENDENT SCHOOL DISTRICTSCHEDULE OF REQUIRED RESPONSES TO SELECTED SCHOOL FIRST INDICATORS

AS OF AUGUST 31, 2012

Data

Control

Codes Responses

SF2 Were there any disclosures in the Annual Financial Report and/or

other sources of information concerning default on bonded

indebtedness obligations? No

SF4 Did the district receive a clean audit? - Was there an unqualified

opinion in the Annual Financial Report? Yes

SF5 Did 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

SF10 What was the total accumulated accretion on capital appreciation

bonds included in the government-wide financial statements at

fiscal year-end? $ 2,041,580

46

122


Board Document


AGENDA ITEMS: Discuss the Deployment or Specific Occasions for Implementation of

Security Personnel or Devices

At this time the Board will adjourn into closed session pursuant

to Texas Government Code:

551.076 To consider the deployment, or specific occasions for

implementation, of security personnel or devices.

The time is __________.

123


Board Document


AGENDA ITEMS: Consider Approval of the Deployment or Specific Occasions for

Implementation of Security Personnel or Devices

Recommendation: It is recommended that the Board of Trustees consider the information

discussed in closed session and make a recommendation if appropriate.

Resource Personnel: Dr. Rodney Cavness, Superintendent

124


BOARD DOCUMENT


AGENDA ITEM: Consider Approval to Pursue Proposals for Demolition of Bank

Building

The District would like to obtain bids for demolition of the old bank building. The

bank’s deteriorating condition as well as safety concerns are the primary reasons for this

recommendation. If the Board would ever want to sell the property, a local realtor has

communicated that the property would be more valuable without the structure.

Recommendation: It is recommended that the Board approve pursuing proposals for

demolition of the bank building.


125

Port Neches-Groves Independent School District Board Document


AGENDA ITEM: Report: Budget - Bond, General Fund, Tax Report

The following reports are attached:

- Financial Reports on Bond Expenditures

- Bond Investment Report on the 2007, 2008, & 2009 Issues (all interest earnings to date

are allocated to projects at this time)

- Income Summary – General Fund

- Tax Office Report

Recommendation: No Recommendation. Report Only


126

School Budgeted

Approved Increase

(Decrease)

Allocated to Prog Mgr

FeesAdjusted Budget

December Expenditures

Total Expenditures Encumbered

Remaining Balance

PNGHS 46,042,203.00$ 291,128.85$ (1,446,738.00)$ 44,886,593.85$ -$ 44,809,893.85$ 76,700.00$ -$

Stadium 10,206,567.00 880,396.90 (387,747.00) 10,699,216.90 - 10,699,216.90 - -

GMS 28,712,929.00 214,810.68 (962,088.00) 27,965,651.68 - 27,963,776.68 1,875.00 -

PNMS 28,155,303.00 (403,924.30) (915,836.00) 26,835,542.70 - 26,818,992.70 16,550.00 -

GE 972,116.00 438,503.77 (33,693.00) 1,376,926.77 - 1,343,042.74 33,884.03 -

PNE 816,805.00 (36,614.71) (19,084.00) 761,106.29 - 727,222.26 33,884.03 -

RE 831,526.00 344,047.92 (28,192.00) 1,147,381.92 - 1,123,803.73 23,578.19 -

TE 767,390.00 386,217.60 (31,257.00) 1,122,350.60 - 1,122,350.60 - -

VBE 898,253.00 175,961.54 (29,021.00) 1,045,193.54 - 1,045,193.54 - -

WE 1,076,854.00 (165,396.86) (17,968.00) 893,489.14 - 893,489.14 - -

WGEC 901,250.00 (607,923.46) (10,624.00) 282,702.54 - 282,702.54 - -

AEC 34,544.00 34,544.00 - 34,544.00 - -

Buses 2,703,171.00 - 2,703,171.00 - 1,686,191.00 391,026.00 625,954.00

Prg Mgr - - 3,882,248.00 3,882,248.00 - 3,882,248.00 - -

Unalloc 915,633.00 125,385.12 1,041,018.12 178,495.43 204,521.28 15,800.00 820,696.84

TOTAL 123,000,000.00$ 1,677,137.05$ -$ 124,677,137.05$ 178,495.43$ 122,637,188.96$ 593,297.25$ 1,446,650.84$

Port Neches-Groves Independent School DistrictBond Balances

December 31, 2012

127

of 1

Total amount received on June 11, 2009 45,700,000.00$

Interest Earnings - Unallocated to Projects 119,595.17 Deposit for CD Maturing 11,888,450.09

Expenditures/Vendor Payments 43,667,418.02 Withdrawal to Purchase CD's 12,000,000.00

Investment Balance 2,040,627.24$

Lone Star Investment Pool

BOND INVESTMENT REPORT

2009 Issue


December 31, 2012

128

3frbud12.p PORT NECHES-GROVES ISD 8:38 AM 01/09/13 05.12.10.00.15-10.2-010134 Income Summary - General Fund (Date: 12/2012) PAGE: 1

2012-13 2012-13 Encumbered 2012-13 FYTD 2012-13

Fn Fn Revised Budget Year Activity Amount Unencumbered Bal FY %

00 LOCAL REVENUE 31,659,412.00 4,785,785.93 0.00 27,000,183.81 15.12

00 STATE REVENUE 5,125,457.00 2,846,750.55 0.00 2,278,706.45 55.54

00 36,784,869.00 7,632,536.48 0.00 29,278,890.26 20.75

11 INSTRUCTION 19,332,992.00 6,396,922.24 0.00 12,936,069.76 33.09

11 INSTRUCTION 358,585.00 187,409.01 60,606.98 110,569.01 69.17

11 INSTRUCTION 734,554.00 242,486.18 78,033.68 414,034.14 43.73

11 INSTRUCTION 11,850.00 1,777.64 0.00 10,072.36 15.00

11 INSTRUCTION 130,115.00 91,190.35 13,999.30 24,925.35 80.84

11 INSTRUCTION 20,568,096.00 6,919,785.42 152,639.96 13,495,670.62 34.39

12 INST. RESOURCES & MEDIA SVCS 590,201.00 197,053.19 0.00 393,147.81 33.39

12 INST. RESOURCES & MEDIA SVCS 46,330.00 21,735.37 8,299.84 16,294.79 64.83

12 INST. RESOURCES & MEDIA SVCS 150.00 0.00 0.00 150.00 0.00

12 INST. RESOURCES & MEDIA SVCS 636,681.00 218,788.56 8,299.84 409,592.60 35.67

13 CURRICULUM DEV.& INST.STF DEV 723,640.00 221,180.15 0.00 502,459.85 30.56

13 CURRICULUM DEV.& INST.STF DEV 49,925.00 28,985.99 3,508.70 17,430.31 65.09

13 CURRICULUM DEV.& INST.STF DEV 12,000.00 3,120.77 89.17 8,790.06 26.75



23 SCHOOL LEADERSHIPPAYROLL COST 1,902,273.00 636,463.48 0.00 1,265,809.52 33.46

23 SCHOOL LEADERSHIPCONTRACTED SE 28,000.00 8,768.36 9,222.84 10,008.80 64.25

23 SCHOOL LEADERSHIPSUPPLIES & MA 19,680.00 7,229.54 0.00 12,450.46 36.74

23 SCHOOL LEADERSHIPOTHER OPERATI 15,624.00 4,274.56 252.00 11,097.44 28.97

23 SCHOOL LEADERSHIP 1,965,577.00 656,735.94 9,474.84 1,299,366.22 33.89

31 GUIDANCE & COUNSELING 1,407,857.00 472,342.51 0.00 935,514.49 33.55

31 GUIDANCE & COUNSELING 22,750.00 3,577.90 1,152.82 18,019.28 20.79

31 GUIDANCE & COUNSELING 8,455.00 1,054.42 357.07 7,043.51 16.69

31 GUIDANCE & COUNSELING 5,505.00 866.00 143.00 4,496.00 18.33

31 GUIDANCE & COUNSELING 1,444,567.00 477,840.83 1,652.89 965,073.28 33.19

33 HEALTH SERVICES 525,394.00 177,084.89 0.00 348,309.11 33.71

33 HEALTH SERVICES 500.00 0.00 0.00 500.00 0.00

33 HEALTH SERVICES 18,450.00 5,677.85 461.04 12,311.11 33.27

33 HEALTH SERVICES 3,830.00 250.00 55.00 3,525.00 7.96

33 HEALTH SERVICES 548,174.00 183,012.74 516.04 364,645.22 33.48

34 PUPIL TRANSPORTATION 753,226.00 246,330.31 0.00 506,895.69 32.70

34 PUPIL TRANSPORTATION 10,200.00 987.04 602.08 8,610.88 15.58

34 PUPIL TRANSPORTATION 201,500.00 72,554.46 21,923.04 107,022.50 46.92

34 PUPIL TRANSPORTATION -186,600.00 -36,147.00 1,100.00 -151,553.00 18.78

34 PUPIL TRANSPORTATION 778,326.00 283,724.81 23,625.12 470,976.07 39.50

36 COCURR./EXTRACURR.ACTIVITIES 817,212.00 275,388.64 0.00 541,823.36 33.70

36 COCURR./EXTRACURR.ACTIVITIES 43,800.00 96.00 96.00 43,608.00 0.44

36 COCURR./EXTRACURR.ACTIVITIES 213,999.00 75,413.10 32,990.06 105,595.84 50.66

36 COCURR./EXTRACURR.ACTIVITIES 658,250.00 177,725.22 10,135.21 470,389.57 28.54

36 COCURR./EXTRACURR.ACTIVITIES 106,000.00 0.00 0.00 106,000.00 0.00

36 COCURR./EXTRACURR.ACTIVITIES 1,839,261.00 528,622.96 43,221.27 1,267,416.77 31.09

41 GENERAL ADMINISTRATION 671,788.00 215,066.27 0.00 456,721.73 32.01

41 GENERAL ADMINISTRATION 99,200.00 33,666.50 3,473.80 62,059.70 37.44

41 GENERAL ADMINISTRATION 30,000.00 5,160.68 564.16 24,275.16 19.08 41 GENERAL ADMINISTRATION 109,500.00 19,109.88 1,459.45 88,930.67 18.78

129

3frbud12.p PORT NECHES-GROVES ISD 8:38 AM 01/09/13 05.12.10.00.15-10.2-010134 Income Summary - General Fund (Date: 12/2012) PAGE: 2

2012-13 2012-13 Encumbered 2012-13 FYTD 2012-13

Fn Fn Revised Budget Year Activity Amount Unencumbered Bal FY %

41 GENERAL ADMINISTRATION 910,488.00 273,003.33 5,497.41 631,987.26 30.59

51 PLANT MAINTENANCE & OPERATIONS 2,643,740.00 794,712.54 0.00 1,849,027.46 30.06

51 PLANT MAINTENANCE & OPERATIONS 1,673,144.00 447,280.76 8,860.71 1,217,002.53 27.42

51 PLANT MAINTENANCE & OPERATIONS 496,600.00 143,421.17 53,181.06 299,997.77 39.90

51 PLANT MAINTENANCE & OPERATIONS 1,286,510.00 4,595.82 0.00 1,281,914.18 0.36

51 PLANT MAINTENANCE & OPERATIONS 59,976.00 34,976.00 24,999.00 1.00 100.00

51 PLANT MAINTENANCE & OPERATIONS 6,159,970.00 1,424,986.29 87,040.77 4,647,942.94 24.61

52 SECURITY & MONITORING SERVICES 15,641.00 5,720.23 0.00 9,920.77 36.57



52 SECURITY & MONITORING SERVICES 470.00 238.39 0.00 231.61 50.72


53 DATA PROCESSING SERVICES 373,802.00 127,192.75 0.00 246,609.25 34.03

53 DATA PROCESSING SERVICES 45,347.00 4,875.00 1,116.00 39,356.00 13.21


53 DATA PROCESSING SERVICES 500.00 0.00 0.00 500.00 0.00


53 DATA PROCESSING SERVICES 542,864.00 216,684.53 1,414.65 324,764.82 40.18

95 PYMTS.TO JJAEP PROGRAMS 33,120.00 31,500.00 0.00 1,620.00 95.11

95 PYMTS.TO JJAEP PROGRAMS 33,120.00 31,500.00 0.00 1,620.00 95.11

99 OPERATING TRANSFERS OUTCONTRAC 422,356.00 99,628.18 0.00 322,727.82 23.59

99 OPERATING TRANSFERS OUT 422,356.00 99,628.18 0.00 322,727.82 23.59

____________________________________________________________________________________________________________________________________

Grand Revenue Totals 36,784,869.00 7,632,536.48 0.00 29,278,890.26 20.75

Grand Expense Totals 36,822,041.00 11,630,550.11 342,994.01 24,848,496.88 32.53

Grand Totals 37,172.00 3,998,013.63 342,994.01 4,430,393.38 10,755.44

Loss Loss Loss Profit

Number of Accounts: 2091 ************************ End of report ************************

130


BOARD DOCUMENT


AGENDA ITEM: Consider Approval of Transactions that Cost $25,000 or More

According to CH(LOCAL) Purchasing and Acquisition:

The Board delegates to the Superintendent or designee the authority to make budgeted

purchases for goods or services. However, any single, budgeted purchase of goods or

services that costs $25,000 or more, regardless of whether the goods or services are

competitively purchased, shall require Board approval before a transaction may take

place.

Therefore, the following transaction(s) are submitted for the board’s approval (supporting

documentation attached):

Vendor Requisition

Initiated By:

Brief Description/Justification of Purchase Total Cost

Fruhauf Uniforms

Inc.

Alex Wells Requisition #0011213117(see attached)

Purchase new band uniforms (see attached quote

and graphic)

$92,455

Recommendation: It is recommended that the Port Neches-Groves ISD Board of

Trustees approve the above transaction.

Resource Personnel: Alex Wells, PN-G High School Band Director

Cheryl Hernandez, Business Manager

135

Wells

Port Neches - Groves High School1401 MerrimanPort Neches TX 77651

Invoice To

Port Neches - Groves High School1401 MerrimanPort Neches TX 77651

Ship To 11/30/2012Date

DescriptionQty. PriceExtendedAmount

250250250250250250

3

REGULAR BAND COATREGULAR BAND BIBBERREGULAR BAND SHAKOTUFTOTE W/LABEL12" FRENCH FOUNTAIN WHITE PLUME (REP)17 IN HANGER W/TROUSER BAR16" PLUME TOTES

$200.00$90.00$50.00

$9.00$18.00

$0.00$235.00

$50,000.00$22,500.00$12,500.00

$2,250.00$4,500.00

$0.00$705.00

Net 30Payment Terms

DestinationF.O.B.

Surface

Melinder,JimmieRepresentative

$92,455.00Subtotal

$0.00Discount

$0.00Tax

$92,455.00Total

After receipt of PO or Deposit, Measurements,Sample andSample Approval if needed.

Delivery Terms As Per Quote

Attention AlexAttention

Alex

P.O. No.

Ship Via

Band Director's Name Best Time to Call

School Phone No. School Fax No.

800 E. GILBERT, WICHITA, KS. 67211 (316)263-7500 (800)858-8050 / FAX (316)263-5550E-MAIL : [email protected] World Wide Web: http://www.fruhauf.com

JM12 / 00047Customer ID

Wells

727-7217409

Wells

527-5496409

1200047/112012Association #

SIGNATURE

137

Band

138

Drum

Major

139


Board Document

AGENDA ITEM: Board Member Requests for Future Agenda Items Board members will be given an opportunity to request items they would like considered for placement on a future board meeting agenda.

Resource Personnel: Board Members

140

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