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HomeMy WebLinkAboutSouth Texas College - Public Financial ReportPOPULARANNUAL Financial Report FISCAL YEAR ENDED AUGUST 31, 2021 Letter from the President . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Board of Trustees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Organizational Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Mission, Vision, & Core Values . . . . . . . . . . . . . . . . . . . . . . . . . 3 District Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 The District's Initiatives and Achievements . . . . . . . . . . . . . . . 4 Financial Highlights and Net Position . . . . . . . . . . . . . . . . . . . 5 Statements of Net Position (All Funds) . . . . . . . . . . . . . . . . . . 5 Statements of Revenues, Expenses, and Changes in Net Position (All Funds) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 District’s Operations Excluding Impact of GASB Statement 68 (Pension) and GASB Statement 75 (OPEB) . . . . . . . . . . . . . . . . 7 Net Position Excluding Impact of GASB 68 (Pension) and GASB 75 (OPEB) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 GASB 68 & GASB 75 Impact on Unrestricted Fund Balance . . . 8 Fund Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 District's Expenditures by Fund . . . . . . . . . . . . . . . . . . . . . . . . . 9 Unrestricted Fund Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Tuition and Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Property Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Property Tax Rates for a Typical Homeowner in the South Texas College District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 State Appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 How is the District Spending the Money? . . . . . . . . . . . . . . . . . 13 District Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Capital Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Debt Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 TABLE OF CONTENTS 1 | South Texas College District, Popular Annual Financial Report (2021) I am excited to present South Texas College District’s Popular Annual Financial Report (PAFR) for the fiscal year ended August 31, 2021.The financial information within this report is derived in large part from the District’s independently audited financial statements of our 2021 Annual Comprehensive Financial Report (ACFR), which is prepared in conformance with Generally Accepted Accounting Principles (GAAP) . The PAFR presents highlights of the District’s financial results for the past fiscal year and is designed to be transparent and easily understandable for individuals who are not finance or accounting professionals . Within this report, you will find an analysis of where the District’s financial resources come from and where the dollars are spent in a format that is easy to understand . This is the second time South Texas College District has prepared the PAFR . The PAFR is not a required document, however, it is considered a best practice by the Government Finance Officers Association (GFOA), and we are proud to present one . Thank you for taking the time to read this report . Respectfully, Ricardo J. Solis, Ph.D. President LETTER FROM THE PRESIDENT South Texas College District, Popular Annual Financial Report (2021) | 2 BOARD OF TRUSTEES ORGANIZATIONAL CHART Rose Benavidez President of Starr County Industrial Foundation Chair Vice Chair Dr. Alejo Salinas, Jr. Retired Superintendent, Superintendent Emeritus, Hidalgo ISD Member Paul R. Rodriguez CEO of Valley Land Title Co . Member Rene Guajardo Student Services Director, Crystal City ISD Member Gary Gurwitz Managing Partner, Atlas, Hall & Rodriguez, L .L .P ., McAllen Member Danny Guzman Right-of-Way Agent, Hidalgo County Precinct #1 Secretary Victoria Cantú CEO of Children’s Education Station, LLC Board of Trustees President Continuing Education, Workforce Training and Economic Development Information Services, Planning, Performance and Strategic Initiatives Executive Vice President for Educational Programming and Student Achievement Student Affairs and Enrollment Management Academic Affairs Finance and Administrative Services Regional Center for Public Safety Excellence Resource Development, Management and Compliance Public Relations and Marketing 3 | South Texas College District, Popular Annual Financial Report (2021) MISSION, VISION, AND CORE VALUES Vision Statement Mission Statement Core Values South Texas College will be a global model in educational innovation serving as a catalyst to drive regional prosperity, economic development, and the social mobility of those we serve . South Texas College is a public institution of higher education that provides educational opportunities through excellence in teaching and learning, workforce development, cultural enrichment, community service, and regional and global collaborations . DISTRICT INFORMATION The District was created on September 1, 1993, by Texas Senate Bill 251 to serve Hidalgo and Starr counties . The District is accredited by the Commission on Colleges of the Southern Association of Colleges and Schools to award baccalaureate and associate degrees . Student Success: We are committed to the personal, academic, and career goals of each student . Excellence: We are committed to excellence and innovation in teaching, learning, and services . Opportunity: We are committed to providing access and support for students to achieve their academic and career goals . Community: We are committed to equitable results through inclusion, diversity, collaboration, and engagement . Integrity: We are committed to being respectful, professional, honest, accountable, and transparent . South Texas College District, Popular Annual Financial Report (2021) | 4 THE DISTRICT'S INITIATIVES AND ACHIEVEMENTS The District’s innovative endeavors and dedication to excellence have paved the way to praise and acclaim . The District has received numerous awards from national, state, and local bodies that recognize its leadership among the community colleges in the State of Texas and the nation . Some of the initiatives and achievements of the past year include: The Government Finance Officers Association (GFOA) of the United States and Canada awarded a Certificate of Achievement for Excellence in Financial Reporting to the District for its Comprehensive Annual Financial Report for the fiscal year ended August 31, 2020 . This is the eighteenth consecutive year that the District has achieved this prestigious award . The Government Treasurers’ Organization of Texas (GTOT) presented the Certificate of Distinction to the District for its Investment Policy for the seventh straight time . The Certificate was issued for the District’s success in developing an investment policy that meets the requirements of the Public Funds Investment Act and the standards for prudent public investing established by the GTOT, and is effective for a two-year period ending August 31, 2022 . The District has earned the three Texas Comptroller of Public Accounts’ Transparency Stars Program Awards . These awards recognize local governments that have achieved excellence in transparency for different areas that include: • Traditional Finance Transparency Star • Economic Development Transparency Star • Debt Obligation Transparency Star The District is among the most innovative online schools for students seeking associate degrees . Named among the ‘30 most innovative online colleges’ in the nation, according to Online Schools Center (OSC), the website is an online resource geared towards students who are seeking an online option for college apart from traditional brick and mortar institutions . The variety of associate degrees makes the District an excellent transfer school and a top- rated college for military personnel whether they are veterans or on active duty, according to OSC . Ranked number 1 in Texas as the 2021 Best Online Community College by Premium Schools . Ranked 1st in the nation as the most affordable Associate Degree in Nursing program for 2021 by NursingSchoolHub . 5 | South Texas College District, Popular Annual Financial Report (2021) FINANCIAL HIGHLIGHTS AND NET POSITION What is net position? It is the difference between (a) assets and deferred outflows of resources and (b) liabilities and deferred inflows of resources . The Statements of Net Position is a ‘point in time’ financial statement and provides the reader with a snapshot of the District’s assets, deferred outflows of resources, liabilities and deferred inflows of resources at the end of the fiscal year . Asset - is a resource with economic value that the District owns or controls . Liability - is the District’s legal financial debt or obligation that arises during the course of business operation . STATEMENTS OF NET POSITION (ALL FUNDS)For Fiscal Year Ended August 31, 2021 (in millions) Statement of Net Position (in millions) Assets Current Assets $ 126 .7 Noncurrent Assets 541 .2 Total Assets $ 667.9 Deferred Outflow of Resources $ 110.9 Liabilities Current Liabilities $ 38 .1 Noncurrent Liabilities 304 .5 Total Liabilities $ 342.6 Deferred Inflow of resources $ 44.6 Net Position Net Investment in Capital Assets $ 205 .2 Restricted 22 .1 Unrestricted 164 .3 Total Net Position - End of Year $ 391.6 $198 .7 $205 .6 $206 .8 $205 .2 $205 .2 $19 .4 $19 .1 $20 .3 $21 .2 $22 .1 $178 .3 $161 .7 $150 .9 $150 .9 $164 .3 $- $50 .0 $100 .0 $150 .0 $200 .0 $250 .0 $300 .0 $350 .0 $400 .0 $450 .0 2018 2019 2019 2020 2021 Net investment in capital assets Restricted Unrestricted Net position - is either the accumulated resources invested in plant and equipment or resources available with or without restrictions . Deferred outflow of resources - is a consumption of net position that is applicable to a future reporting period . Deferred inflow of resources - is an acquisition of net position that is applicable to a future reporting period . Reflected in the Statement of Net Position are current and non-current items: • Current items - are assets and liabilities to be satisfied or liquidated within one year . • Non-current items - are assets and liabilities to be liquidated or satisfied beyond one year . Net Investement in Capital Assets Restricted Unrestricted $198 .7 $205 .6 $206 .8 $205 .2 $205 .2 $22 .1$21 .2$20 .3$19 .1$19 .4 $178 .3 $161 .7 $150 .9 $150 .9 $164 .3 South Texas College District, Popular Annual Financial Report (2021) | 6 STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION (ALL FUNDS) For Fiscal Year Ended August 31, 2021 (in millions) The Statement of Revenues, Expenses and Changes in Net Position present the District’s results of operations for the fiscal year . This statement focuses on the revenues brought in by the College generated primarily by property taxes, state allocations, tuition and fees, and state and federal grants . It compares the revenue brought in during the fiscal year to the cost of the District’s activi- ties . The summarized information is presented to enhance the reader’s understanding of the finan- cial results of the various District services provided to students and the public . Revenue Sources Non-Operating Revenues Ad-valorem Taxes $ 73 .2 State Appropriations 55 .4 Federal Grants 78 .4 Investment Income 2 .1 Other Non-Operating Revenues 0 .5 Total Non-Operating Revenues $ 209.6 Total Revenues $251.2 Operating Revenues Net Tuition and Fees $ 21 .1 Grants and Contracts 19 .3 Other Operating Revenue 1 .2 Total Operating Revenues $ 41.6 Net Position Increase/ (Decrease) in Net Position $14 .3 Net Position at Beginning of Year 377 .3 Net Position at End of Year $ 391.6 Non-Operating Expenses Non-Capital Construction Costs $0 .7 Interest on Capital Related Debt 4 .6 Other Non-Operating Expenses 1 .0 Total Non-Operating Expenses $6.3 Total Expenses $237.0 Capital Contribution $0.1 Operating Expenses Instruction $ 87 .6 Public Service 1 .6 Academic Support 22 .4 Student Services 13 .7 Institutional Support 33 .2 Operation and Maintenance of Plant 20 .8 Scholarships Expense 37 .8 Auxiliary Enterprises 1 .7 Depreciation Expenses 11 .9 Total Operating Expenses $230.7 0% 5% 10% 15% 20% 25% 30% 35% 2019 2020 2021 30 %31 % 29 % 29 % 29 % 26 % 22 % 22 % 10 % 10 % 9% 8%8%8% 3%3% 2% 21 % 7 | South Texas College District, Popular Annual Financial Report (2021) DISTRICT’S OPERATIONS Excluding Impact of GASB Statement 68 (pension) and GASB Statement 75 (OPEB) The District participates in a cost-sharing multiple-employer defined benefit pension plan that has a special funding situation . The plan is administered by the Teacher Retirement System of Texas (TRS) and was impacted by the implementation of GASB Statement No 68, Accounting and Financial Reporting for Pensions, in fiscal year 2015 . GASB Statement No 68 (GASB 68) revised and established new financial reporting requirements for most state and local governments that provide their employees with pension benefits . The District also participates in a cost-sharing, multiple-employer, other post-employment benefit (OPEB) plan with a special funding situation . The Texas Employees Group Benefits Program (GBP) is administered by Employees Retirement System of Texas (ERS) and was impacted by the implementation of GASB Statement No 75, Accounting and Financial Reporting for Post-employment Benefits Other Than Pensions (OPEB), in fiscal year 2018 . GASB Statement No 75 (GASB 75) revised and established new accounting and financial reporting requirements for OPEB plans . In fiscal year 2018, ERS utilized an allocation methodology based on employer contributions related to retirees . In fiscal year 2019, ERS changed the allocation methodology by basing it on employer contributions for retirees and active employees . The change in allocation methodology had a significant adverse financial effect on the District . The District’s net position at August 31, 2021 was $391 .6 million compared to $377 .3 million at August 31, 2020, an increase of $14 .3 million . The financial statements include the impact of GASB Statement 68 and GASB Statement 75, and even though they are required entries by GASB, the District does not deem that the result with these entries appropriately reflects the District’s operations throughout the years, as the liabilities are allocated to the District based on the discretion of ERS and TRS (allocation methods have changed in the past), and are not part of the District’s day-to-day operations . The liabilities also reflect a long-term liability that may or may not be due . Disregarding the effect of the ERS OPEB liability and the TRS pension liability, the District’s net position increased by $42 .3 million resulting from excess revenues over expenses . Of the $42 .3 million increase in net position, the unrestricted net position increased by $41 .4 million, net investment in capital assets stayed flat, and expendable net position increased by $0 .9 million . South Texas College District, Popular Annual Financial Report (2021) | 8 $95 .2 $93 .3 $104 .4 $63 .1 $90 .2 $118 .2 $- $50 .0 $100 .0 $150 .0 $200 .0 $250 .0 2019 2020 2021 Unrestricted Fund Balance GASB 68 and GASB 75 Impact $95 .2 $93 .3 $104 .4 $63 .1 $90 .2 $118 .2 $- $50 .0 $100 .0 $150 .0 $200 .0 $250 .0 2019 2020 2021 Unrestricted Fund Balance GASB 68 and GASB 75 Impact For Fiscal Year Ended August 31 (in millions) The District’s net effect of GASB 68 and GASB 75 for fiscal years 2019, 2020 and 2021 have been $21 .7 million, $27 .1 million, and $28 .0 million of net expense . The graph presents the impact that GASB 68 and GASB 75 have had on the cumulative unrestricted fund balance for the past three years . GASB 68 & GASB 75 Impact on Unrestricted Fund Balance Net Position Excluding Impact of GASB 68 (Pension) and GASB 75 (OPEB) 2020 2021 Operating Revenues $ 44 .6 $ 41 .6 Operating Expenses 201 .8 201 .3 Operating Loss $ (157.2)$ (159.7) Non-Operating Revenues and Expenses 183 .6 201 .9 Capital Contributions - 0 .1 Increase in Net Position $ 26.4 $ 42.3 Net position - Beginning of Year $ 441.1 $ 467.5 Net Position - End of Year $ 467.5 $ 509.8 For Fiscal Year Ended August 31 (in millions) 9 | South Texas College District, Popular Annual Financial Report (2021) FUND EXPENDITURES A fund is a set of accounts that are segregated to identify the transactions associated with a specific activity conducted by the District . Unrestricted Fund – accounts for economic resources of the District which are expendable for the purpose of performing the primary missions of the institution such as instruction, research, and public service, and which are not restricted by external sources or designated by the governing board other than operating expenditures . Restricted Fund – accounts for activities that have restrictions pertaining to their use by external parties, such as grants, contracts, donors, or legislation . Auxiliary Fund – accounts for transactions of self-supporting activities . The fund exists to provide goods or services to students, faculty, staff, other institutional departments, or incidentally to the general public, for which a fee is charged that is intended to recover associated costs . Plant Fund: Unexpended – Construction Fund- accounts for resources to be used for plant construction or acquisition . Renewals and Replacements Fund- accounts for resources to be used for renewing and replacing facilities on existing College capital assets . Retirement of Indebtedness Fund- accounts for funds held in reserve for paying principal and interest on debt, as well as related costs in accordance with bond indentures . District's Expenditures by Fund 0 .0% 10 .0% 20 .0% 30 .0% 40 .0% 50 .0% 60 .0% 70 .0% Unrestricted Restricted Auxiliary Plant 2019 2020 2021 70% 60% 50% 40% 30% 20% 10% 0% 61 % 29 % 37 % 33 % 1%1%1%5%5%5% 57 % 65 % South Texas College District, Popular Annual Financial Report (2021) | 10 Unrestricted Fund Activity Tuition and Fees Student tuition and fees are the primary operating source of revenues for the District, and makes up about 29% of the District’s unrestricted revenue stream . The District is committed to providing access and support for students to achieve their academic and career goals, as described in the Core Values of South Texas College . This is accomplished by keeping tuition cost low without lowering the quality of instruction . The District’s in-district tuition rate of $77 per semester credit hour in fiscal year 2021 remains among the most competitive in the state . The table to the right shows a summary of the tuition and mandatory fee rates per semester credit hour (excluding the registration fee) . Per Credit Hour Rate Revenue sources The District has a diversified revenue structure with the main sources of unrestricted revenue deriving from student tuition and fees, property taxes, and state appropriations . $- $10 $20 $30 $40 $50 $60 $70 $80 $90 2019 2020 2021 2022 In district Tuition Mandatory Fees (Excluding Registration Fee) $7 0 $7 7 $7 7 $7 7 $4 6 $4 6 $4 9 $4 9 0% 5% 10% 15% 20% 25% 30% 35% 40% 2019 2020 2021 Unrestricted Revenue 35 % 35 % 31 % 31 % 31 % 29 % 29 % 3%3%3%3% 10 % 1% 28 % 28 % Prop e r t y T a x e s 11 | South Texas College District, Popular Annual Financial Report (2021) Property taxes continue to be among the District’s primary non-operating revenue sources, and accounted for 31% of the District’s total unrestricted funding sources for fiscal year 2021 . The taxes are used to pay for operating costs and general obligation debt services . For fiscal year 2021 (2020 Levy), the District’s property tax rate for a typical homeowner was $0 .1715 per $100 of the property’s assessed value—making up about 6 percent of the homeowner’s total property tax bill . PROPERTY TAXES Property Tax Distribution for a Typical Homeowner in the South Texas College District Property Tax Revenue Type (in millions) $33 .2 $32 .4 $34 .0 $44 .0 $46 .8 $48 .8 $48 .9 $53 .9 $56 .1 $59 .4 $12 .3 $12 .0 $12 .3 $14 .1 $15 .0 $15 .7 $15 .7 $14 .7 $13 .6 $13 .8 $- $10 .0 $20 .0 $30 .0 $40 .0 $50 .0 $60 .0 $70 .0 $80 .0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Operation & Maintance of Plant Debt Service Hidalgo County Starr County Drainage 4% Other Special Districts 4% Other Special Districts 9% STC 6% STC 6% County Hidalgo 21% City 23%City 19% School Districts 40%School Districts 47% CountyStarr 19% South Texas College District, Popular Annual Financial Report (2021) | 12 State appropriations account for 29% of the District’s unrestricted funding source . The State of Texas appropriates funds to state agencies and institutions of higher education via funding formulas and the non-formula biennial General Appropriations Act . The District receives funding for core operations, student success, contact hour funding, and for offering the Bachelor’s degrees . The District received additional state appropriations in fiscal years 2020 and 2021 in education and general state support as a result of increased state appropriation for student success points and contact hours . The District also received additional state appropriation related to increased semester credit hours for the District’s Bachelor programs . Below is a ten-year history of the District’s state appropriations revenues: STATE APPROPRIATIONS State Appropriations (in millions) $31 .8 $33 .5 $35 .3 $35 .3 $37 .6 $36 .7 $39 .2 $39 .2 $40 .9 $40 .9 $0 .4 $0 .4 $0 .6 $0 .6 $0 .8 $0 .8 $1 .1 $1 .1 $1 .3 $1 .3 $- $5 .0 $10 .0 $15 .0 $20 .0 $25 .0 $30 .0 $35 .0 $40 .0 $45 .0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Education & General State Support Education & General State Support Bachelor's Degrees 13 | South Texas College District, Popular Annual Financial Report (2021) Instruction– Activities dealing directly with student learning, such as faculty salary and benefits, equipment, materials and supplies for the classrooms . Public Service– Activities established primarily to provide non-instructional services for the benefit of individuals and groups that are external to the District . Academic Support– Activities designed to provide support services for the District’s primary mission of instruction and public service . Includes the centers for learning excellence, distance learning, high school programs and services, and professional development . DISTRICT FUNCTIONS HOW IS THE DISTRICT SPENDING THE MONEY? Total for Fiscal Year Ended August 31, Unrestricted Expenses by Function Student Services– Activities that provide assistance in the areas of admissions, counseling, financial aid, and student records . Institutional Support– Expenditures for day to day operational and administrative activities that benefit the entire institution . Examples are financial and administrative services, information services, and public relations . Operation and Maintenance of Plant– Maintenance, repairs, and minor construction of building costs that are necessary to keep the facilities open and ready for use for students, faculty, and staff . 0 .6 0 .5 0 .4 0 .3 0 .2 0 .1 0 50 % 17 % 12 % 12 % 8% 1% 49 % 19 % 12 % 11 % 8% 1% 50 % 18 % 12 % 12 % 7% 1% 0% 10% 20% 30% 40% 50% 60% Instruction Institutional Support Operation and Maintenance of Plant Academic Support Student Services Public Service Unrestricted Expenses by Function FY 2019 FY 2020 FY 2021 50 % 17 % 12 % 12 % 8% 1% 49 % 19 % 12 % 11 % 8% 1% 50 % 18 % 12 % 12 % 7% 1% 0% 10% 20% 30% 40% 50% 60% Instruction Institutional Support Operation and Maintenance of Plant Academic Support Student Services Public Service Unrestricted Expenses by Function FY 2019 FY 2020 FY 2021 13 | South Texas College District, Popular Annual Financial Report (2021) South Texas College District, Popular Annual Financial Report (2021) | 14 10% 76% 8% 1%0% 5% Land Buildings Land Improvements Library Books Other Furniture, Machinery and Equipment 10% 76% 8% 1%0% 5% Land Buildings Land Improvements Library Books Other Furniture, Machinery and Equipment August 31, 2021 Net Capital Assets (in millions) CAPITAL ASSETS Capital assets include property, plant, equipment, and infrastructure assets that have an initial unit cost greater than or equal to $5,000 and estimated useful lives of more than one (1) year . Net capital assets slightly decreased in fiscal year 2021, primarily due to an increase in accumulated depreciation . The increase in depreciation was related to new facilities, land improvement, and furniture and equipment added during fiscal year 2018 and 2019 that were funded by the District Limited Tax Bonds series 2014 and 2015 . The graph below summarizes the capital assets by category net of accumulated depreciation. Description August 31, 2020 Additions Retirements and Transfers August 31, 2021 Land $ 32 .5 $ - $- $ 32 .5 Collections 0 .1 0 .0 (0 .0) 0 .1 Construction in Progress 0 .9 2 .2 (2 .0) 1 .1 Buildings 311 .2 1 .2 - 312 .4 Land Improvements 46 .1 0 .8 (0 .1) 46 .9 Library Books 6 .6 0 .1 (0 .0) 6 .7 Furniture, Machinery, and Equipment 52 .5 1 .7 (2 .3) 51 .8 Less Accumulated Depreciation (112 .6) (11 .9) 2 .4 (122 .1) Total Net Capital Assets $ 337.3 $ (5.9)$(2.1)$ 329.3 Net Capital Assets $0 $50 $100 $150 $200 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Outstanding Principal Outstanding Interest 15 | South Texas College District, Popular Annual Financial Report (2021) DEBT STATUS District Outstanding Debt (in millions) The District currently has three series of limited tax bonds outstanding . These bonds are backed by the full confidence of the community college district and are paid with property taxes . The Series 2014 Limited Tax Bonds and Series 2015 Limited Tax Bonds were issued to address the facility requirements of the District due to the enrollment increase over the years . Series 2020 Limited Tax Bonds refinanced part of the Limited Ad Valorem Tax Bonds previously issued in 2014 . The district’s bond ratings on the outstanding bonds are AA by Standard & Poor’s Rating Services and Aa2 by Moody’s Investor Services . South Texas College District, Popular Annual Financial Report (2021) | 16 ACKNOWLEDGMENTS South Texas College District Finance and Administrative Services and Business Office Staff Mary Elizondo, Vice President for Finance and Administrative Services Myriam Lopez, Comptroller Katarina Bugariu, Associate Comptroller Nicole Perez, Budget Manager Alma Church, Accounting Group Manager Dalinda Gamboa, Accounting Group Manager Marittza Adame, Accounting Group Manager Vanessa Balderrama, Accounting Group Manager Esmer Ortegon, Accounting Group Supervisor Maricarmen Ramirez, Accounting Group Supervisor Soledad Ortiz, Accounting Group Supervisor Andrea Monasmith, Graphic Designer Michelle Grava, Graphic Designer, Academic Affairs Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to South Texas College for its Popular Annual Financial Report for the fiscal year ended August, 31, 2020 . The Award for Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular reports . In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creativity, presentation, understandability, and reader appeal . An Award for Outstanding Achievement in Popular Annual Financial Reporting is valid for a period of one year only . This is the first time the College has applied for and received the Popular Award . We believe our current report continues to conform to the Popular Annual Financial Reporting requirements, and we are submitting it to GFOA to determine its eligibility for another Award . This Popular Annual Financial Report (PAFR) is intended to provide selected financial information in a simplified and straightforward format . The PAFR is based upon the District’s Annual Comprehensive Financial Report (ACFR), which contains more detailed information on the District’s finances. The ACFR, PAFR, and other financial reports can be found on the District’s website at https://finance.southtexascollege.edu/businessoffice/ .