Exhibit_4_Audited_Financial_Statements_8-31-25.pdf

Wylie Campus

Annual Comprehensive Financial Report

For the years ended August 31, 2025 and 2024 Collin County, Texas

Collin County

Community College District

Allen Celina Frisco

Farmersville McKinney

Plano Rockwall Wylie

Texas

Annual Comprehensive Financial Report

For Fiscal Years Ended

August 31, 2025 and 2024

Collin County, Texas

Prepared by:

Administrative Services

President’s Letter 1 Letter of Transmittal 3 GFOA Certificate of Achievement 12 Board of Trustees 13 Principal Officers and Staff 14 Organizational Chart 15

Report of Independent Certified Public Accountants 17

Management’s Discussion and Analysis 20

Basic Financial Statements 35

Statements of Net Position As of August 31, 2025 and 2024 Exhibit 1 36

Foundation Statements of Financial Position As of August 31, 2025 and 2024 Exhibit 1A 37

Statements of Revenues, Expenses and Changes in Net Position For the Years Ended August 31, 2025 and 2024 Exhibit 2 38

Foundation Statements of Activities For the Years Ended August 31, 2025 and 2024 Exhibit 2A 39

Statements of Cash Flows For the Years Ended August 31, 2025 and 2024 Exhibit 3 40

Notes to Basic Financial Statements 42

Schedule of the District’s Share of Net Pension Liability Schedule 1 104

Schedule of the District’s Contributions for Pensions Schedule 2 105

Schedule of the District’s Share of Net OPEB Liability Schedule 3 106

Schedule of the District’s Contributions for OPEB Schedule 4 107

Notes to Required Supplemental Information 108

Table Of Contents

Annual Comprehensive Financial Report

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT

Fiscal Years Ended August 31, 2025 and 2024

Financial Section

Required Supplemental Information i

Introductory Section

Schedule of Operating Revenues For the Year Ended August 31, 2025 Schedule A 110

Schedule of Operating Expenses by Object For the Year Ended August 31, 2025 Schedule B 111

Schedule of Non-Operating Revenues and Expenses For the Year Ended August 31, 2025 Schedule C 112

Schedule of Net Position by Source and Availability As of August 31, 2025 Schedule D 113

Statistical Section Categories 117

Net Position by Component Statistical Supplement 1 119

Revenues by Source Statistical Supplement 2 120

Program Expenses by Function Statistical Supplement 3 122

Tuition and Fees Statistical Supplement 4 124

Assessed Value and Taxable Assessed Value of Property Statistical Supplement 5 125

General Appropriations Act Before Contact Hour Adjustments Statistical Supplement 6a 126

State Appropriation per FTSE Statistical Supplement 6b 127

State Appropriation per Contact Hour Statistical Supplement 6c 128

State Appropriation Per Student Success Point – Annualized Statistical Supplement 6d 129

Student Success Points (SSP) Statistical Supplement 6e 130

Principal Taxpayers Statistical Supplement 7 132

Property Tax Levies and Collections Statistical Supplement 8 134

Ratios of Outstanding Debt Statistical Supplement 9 136

Legal Debt Margin Information Statistical Supplement 10 138

Pledged Revenue Coverage Statistical Supplement 11 139

Texas Higher Education Coordinating Board (THECB) Supplemental Schedules

Statistical Section (Unaudited) ii

Demographic and Economic Statistics Statistical Supplement 12 140

Principal Employers Statistical Supplement 13 141

Faculty, Staff, and Administrators Statistics Statistical Supplement 14 142

Enrollment Details Statistical Supplement 15 144

Student Profile Statistical Supplement 16 146

Transfers to Senior Institutions Statistical Supplement 17 148

Capital Asset Information Statistical Supplement 18 149

Independent Auditor's 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 151

Independent Auditor's Report on Compliance For Each Major Federal and State Program and on Internal Control Over Compliance Required by The Uniform Guidance and State of Texas Single Audit Circular 153

Schedule of Expenditures of Federal Awards Schedule E 158

Notes to Schedule of Expenditures of Federal Awards 160

Schedule of Expenditures of State Awards Schedule F 161

Notes to Schedule of Expenditures of State Awards 162

Schedule of Findings and Questioned Costs 163 iii

Single Audit Section

Statistical Section (Unaudited) cont.

In tr od uc to ry

Introductory

To the Board of Trustees:

I am pleased to present you with the Annual Compre-hensive Financial Report (ACFR) for Fiscal Year 2025.

This past year, the college celebrated a milestone — 40 years of student success! We commemorated the occasion with events throughout the district, including a special 40th anniversary concert featuring Texas country music legend Pat Green and his acoustic quartet.

I am proud to add that I have had the honor of serving our students and stakeholders alongside our amazing faculty and staff for the last decade. What a joy it has been! Collin College is a very special higher education institution.

With your sage counsel, leadership, and vision, we are continuing to grow and address our communities’ needs through our extensive Master and Strategic plans.

For the first time, this past May, the college held two commencement ceremonies to accommodate the increase in graduating students.

Collin College also added a new Bachelor of Applied Technology in Software Development degree. Today, students can choose from five bachelor’s degrees — all at the college’s tuition rates, the lowest in the state of Texas.

The college received several grants this year, including a $2.1 million grant to expand adult education, $1.3 million in Skills Development Fund grants, and a more than $400,000 National Science Foundation grant to develop robotic welding equipment.

A few additional highlights this year include: The College Tour Collin College episode premiering and streaming on Amazon Prime; industry, business, and community leaders convening at the third annual Collin Leadership Policy Summit; the Marty Berryman

Tennis Center dedication; sophomore basketball player Alisha Nunley being named to the National Junior College Athletics Association Division I Women’s Basketball All-America First Team, and the college offering its first-ever golf team as well as a new volleyball team.

Our university partnerships are thriving. The Texas A&M Engineering Academy at Collin College experienced an epic inaugural cohort of 96 students, and the Collin College Academic Alliance added new Texas State University teacher preparation degrees.

Additional new partnerships are already in the works, and I look forward to sharing them in the future.

Whether students choose an online experience through our iCollin Virtual Campus or enroll in courses at one of our 10 beautiful campuses throughout Collin County, they will receive a great education at a remarkable value — a precious benefit that is especially prized in this time of escalating costs.

With a myriad of events such as honoring fallen first responders with a memorial that includes a piece of the World Trade Center, art exhibitions in Plano and Wylie, fine arts performances, Rockin’ the Ridge in Frisco, trunk-or-treat, Wild West in the Park Chili Cook-off in McKinney, the Celina Carnival, Blooming Harvest and Movie Night on the Lawn in Farmersville, a car meet and open house in Allen, and so much more, Collin College is a hub for our students and communities to gather for meaningful experiences.

Together, we are not only building the best community college in Texas but working to build the best community college in the nation.

Here’s to the next 40 years of growth and success!

Sincerely, H. Neil Matkin, Ed.D.

District President Collin College

Office of the President

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December 9, 2025

To: Dr. H. Neil Matkin, District President Members of the Board of Trustees, and The Citizens of Collin County Community College District

The following Annual Comprehensive Financial Report (ACFR) of the Collin County Community College District d/b/a Collin College (the “District”) for the fiscal years ended August 31, 2025, and 2024 is respectfully submitted for your review. This report provides detailed information regarding the financial condition and performance of the District.

Responsibility for the accuracy, completeness, and fairness of the presentation, including all disclosures, rests with the District. To the best of our knowledge, the enclosed information is accurate in all material respects and is presented in a manner intended to fairly reflect the District’s financial position and results of operations. All disclosures necessary to enable readers to gain a full understanding of the District’s financial activities have been included.

The District is a special-purpose government engaged solely in business-type activity (BTA). Adhering to the Governmental Accounting Standards Board (GASB) Statements 34 and 35, this financial reporting presentation combines all fund groups into a single column. It resembles the format of the corporate presentation, thus facilitating comparison.

State statutes require an annual audit by independent certified public accountants. The District's Board of Trustees selected the accounting firm of Whitley Penn, LLP. In addition to meeting the requirements outlined in state statutes, the audit meets the U.S. Office of Management and Budget (OMB) 2 Code of Federal Regulations (CFR) 200, Audits of States, Local Governments, and Non-Profit Organizations, and the State of Texas Single Audit Circular. Information related to the single audit, including the schedule of federal expenditures of awards, the schedule of state expenditures of awards, and the auditor’s reports on compliance and internal controls, is included in this report's single audit section.

As a recipient of federal, state, and local financial funds, the District is responsible for providing an adequate internal control structure to ensure compliance with applicable laws and regulations related to those award programs. This internal control structure is subject to periodic review or evaluation by management and the District's independent auditors. As a part of the District's single audit, tests determine the effectiveness of the internal control structure, including that portion related to significant federal and state financial award programs. It also determines that the District has complied with significant applicable laws and regulations.

The Administrative Services division establishes and maintains an internal control structure to protect the District's assets from loss, theft, or misuse. They are responsible for ensuring that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles (GAAP). The internal control structure provides reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that 1) the cost of a control should not exceed the benefits likely to be derived, and 2) the valuation of costs and benefits requires estimates and judgments by management.

A narrative introduction, overview, and analysis accompany the basic financial statements in Management's Discussion and Analysis (MD&A), providing information on the District's financial activity and position. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. In addition to the transmittal letter and the MD&A, the Annual Comprehensive Financial Report (ACFR) consists of the following:

Basic Financial Statements Required Supplemental Information Texas Higher Education Coordinating Board (THECB) Supplemental Schedules Statistical Section (Unaudited) Single Audit Section

As demonstrated by the statements and schedules included in the financial section of this report, the District continues to meet its responsibility for sound financial management.

PROFILE OF THE DISTRICT

District Structure and Governance The District was established as a public community college in an election held in Collin County, Texas, on April 6, 1985. It operates as a community college district under the Constitution of the State of Texas and the Texas Education Code. Governance of the District is vested in a nine-member Board of Trustees (“the Board”). Trustees serve without compensation and are elected at large by the voters of Collin County to six-year terms. The Board meets at least ten times each year, and all meetings are open to the public.

The Board manages and governs the District, providing policy direction, establishing institutional goals, setting and collecting tuition and fees, and exercising fiduciary responsibility over the District’s financial resources. The Board also appoints and evaluates the District President. In addition, the Board is responsible for the levy, assessment, and collection of taxes; the issuance of bonds; the adoption of the annual budget; and the oversight of the annual audit. The Board further establishes campus admission standards consistent with the District’s role and mission.

Accreditation and Academic Programs The District is accredited by the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) to award associate and baccalaureate degrees. The District may also offer additional credentials, including certificates and diplomas, at approved degree levels. In June 2021, Governor Greg Abbott signed House Bill 3348, authorizing the District to offer up to five baccalaureate degrees. As of the Fall 2025 semester, the District offers five baccalaureate programs: the Bachelor of Science in Nursing (launched in 2020), the Bachelor of Applied

Technology in Cybersecurity (launched in 2020), the Bachelor of Applied Science in Construction Management (launched in 2022), the Bachelor of Applied Science in Clinical Operations Management (launched in 2024), and the Bachelor of Applied Technology in Software Development (launched in 2025).

To maintain accreditation by SACSCOC, the District must undergo a comprehensive compliance review every ten years. This process involves extensive self-study demonstrating compliance with the Principles of Accreditation established by SACSCOC. The District completed its most recent review during the 2024–2025 academic year, and on June 12, 2025, the SACSCOC Board of Trustees voted to reaffirm the District’s accreditation.

Mission and Community Focus The District’s mission is to provide students with a community-centered institution committed to developing skills, strengthening character, and challenging the intellect. The student body is composed of residents of Collin County as well as individuals from surrounding communities.

The District strives to offer affordable, small, and personalized classes supported by an award-winning faculty in a safe and welcoming environment, enabling students to fulfill their potential and achieve their educational goals. The District promotes lifelong learning and provides opportunities for residents to continue their education regardless of schedule, time, or distance constraints. The District remains committed to meeting the community’s workforce needs by expanding educational opportunities and developing a well-prepared professional workforce. It provides training for the county’s essential service roles, including police officers, firefighters, emergency medical technicians, nurses, dental hygienists, and respiratory therapists.

Service Area and Demographics The official service area of the District, as defined by the Texas Legislature, includes all of Collin and Rockwall counties, the portions of Denton County located within the cities of Frisco and The Colony, and the areas of Denton County encompassed by the Celina and Prosper independent school districts.

The District is located in Collin County, within the Dallas metropolitan area of North Central Texas, covering 886 square miles. Collin County remains one of the fastest-growing counties in the United States, according to the U.S. Census Bureau, with a population growth rate of 17.7% from 2020 to 2024. The county’s population was 1,066,467 in 2020 and is estimated to be 1,254,658 as of 2024.

Component Units The Collin County Community College District Foundation, Inc. (“Foundation”) is discretely presented in the District’s financial statements as a component unit through the inclusion of the Foundation’s statements and footnotes. The Foundation, a nonprofit organization established in 1987, exists to maintain, develop, expand, and enhance the District’s facilities and services, as well as to provide broader educational opportunities for its students, staff, and faculty.

0.92M 0.94M 0.97M 1.01M 1.04M 1.07M 1.11M 1.16M 1.20M 1.25M

3.46%

3.20%

3.01%

3.42% 2.89%

3.03%

4.52%

3.98%

3.14%

4.96%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Population Growth Rate

Inter-local Agreements and Partnerships The District’s numerous partnerships with local cities, schools, and organizations demonstrate its commitment to providing programs and services that benefit the community. These collaborative agreements are designed to be both efficient and cost-effective. A selection of recent inter-local agreements and partnerships includes:

Collin College Academic Alliance: In collaboration with Texas State University and the University of Texas at Dallas, the District established the Collin College Academic Alliance at the Collin College Technical Campus in Allen. This program allows students to co-enroll at Collin College and a partner university, enabling them to earn an associate degree while simultaneously pursuing a bachelor’s degree from Texas State University or the University of Texas at Dallas without leaving Collin County.

Texas A&M Engineering Academy: Also housed at the Technical Campus in Allen, this program, in partnership with Texas A&M University’s College of Engineering, allows students to pursue an engineering degree while co-enrolling at both institutions. Students can complete their first two years of engineering coursework at Collin College, reducing costs before transitioning to Texas A&M University.

Economic Development Grant: In June 2024, the U.S. Department of Commerce – Economic Development Administration awarded the District a $2.0 million grant, with the District pledging $500,000 in matching funds. The grant supports construction at the Plano Campus to expand healthcare programs, including Licensed Vocational Nurse (LVN), Certified Nurse’s Aide (CNA), Patient Care Technician (PCT), Electrocardiograph Technician (EKG), and Phlebotomy Technician (PLT). This expansion is expected to prepare hundreds of students for careers in healthcare and stimulate economic growth in North Texas, particularly in rural counties.

Adult Education and Literacy Grant: The Texas Workforce Commission awarded the District a $2.1 million Adult Education and Literacy Service Provider grant in July 2024, covering the 2024–2025 period. The grant supports educational opportunities for individuals facing employment barriers, preparing them for in-demand careers across various sectors.

Collin County Detention Facility Partnership: Through an Adult Education and Literacy grant from the Texas Workforce Commission, Collin College partners with the local jail to offer life skills and educational courses to more than 100 inmates. Courses, taught by Collin College faculty, are designed for younger or first-time offenders and focus on personal growth, academic readiness, and reentry preparation, providing meaningful second chances for participants.

Budget and Financial Controls Under the direction of the Chief Financial Officer, Administrative Services oversees the District’s budgetary controls. These controls ensure compliance with all legal requirements set forth in the annual budget approved by the Board of Trustees. The annual budget encompasses the activities of the unrestricted, auxiliary, restricted, building, bond, and debt service funds. The District also maintains an encumbrance accounting system that includes full-time payroll costs to support budgetary control. Salary encumbrances lapse at year-end, while certain encumbrances for outstanding purchase orders at year-end are carried forward as part of the subsequent year’s budget.

Economic Conditions and Workforce Development During fiscal year 2025, the District continued to experience enrollment growth, a strong local economy, and increasing workforce demands in key industries. Credit enrollment increased 4.7% in the fall and 6.9% in the spring compared to the prior academic year. Collin County’s population and labor force continue to grow, supporting the District’s mission of providing accessible, high-quality education and workforce training in fields such as technology, health care, automotive, construction, HVAC, and welding.

Collin County’s major industries include finance, retail, computer technology, insurance, education, manufacturing, telecommunications, health care, and food services. A well-educated workforce is essential for attracting new businesses and sustaining economic growth, while the availability of workforce training is a key factor in supporting a growing economy. The District regularly consults with local employers to assess workforce needs and develops programs to address those needs. Combined with the area’s accessible workforce training, desirable location, high-quality school districts, abundant family entertainment options, including shopping, fine arts, professional sports, and amusement parks and a wealth of well-trained individuals, the District is confident that Collin County will continue to experience sustained economic prosperity.

The District has participated in a property tax abatement with Texas Instruments since 2014. This abatement was established to encourage significant capital investment and to promote job creation within the region’s technology sector. The District anticipates that the long-term benefits of this agreement will exceed the temporary reduction in property tax revenues. Economic activity generated by this investment supports broader regional prosperity, which has historically contributed to enrollment stability, the expansion of academic and workforce programs, and the advancement of the District’s mission.

According to the U.S. Bureau of Labor Statistics, Collin County’s civilian labor force was 690,212 as of August 2025, reflecting an increase from the prior year. The county’s unemployment rate for the same period was 4.3%, compared to 4.1% for the State of Texas and 4.3% nationally.

Community colleges play a critical role in the State of Texas’s workforce and economic development. Economic growth depends on the availability of a well-trained and educated workforce. As technological advancements, automation, and increased productivity reshape the economy, the demand for certain physical jobs declines, creating greater pressure on workers to acquire new skills.

According to the Texas Higher Education Coordinating Board, enrollment in Texas public community colleges totaled 715,133 students in the fall of 2024, compared to 689,784 students at Texas public universities and 16,427 students at Texas State Technical Colleges.

Data Source: Collin College Student Information System

Long-Term Financial Planning The development of the Master and Strategic Plan is a collaborative process that has guided the District’s critical decision-making for the past seven years. Known as Destination 2030, the Master Plan provides a comprehensive outlook for all college facilities and programming, while the accompanying Strategic Goals establish objectives and stretch targets for future initiatives.

Together, these plans create a seven-year roadmap for the District.

In August 2023, the Board of Trustees adopted the 2023–2030 Master and Strategic Plan, which includes the following:

Master Plan Priorities:

1. Ensure maximum utilization of college facilities, programs, and resources.

2. Expand college programs and facilities to accommodate growth and meet employment needs across the service area.

3. Enhance the college’s university partnerships through comprehensive pathways that enrich the student experience and support student completion, with a focus on Collin College students.

4. Implement planned and new components of the college’s comprehensive safety and emergency management plan.

5. Streamline programs and systems by implementing efficient business processes that improve outcomes for students and employees.

Strategic Plan Goals:

1. Realign student completion and performance metrics to meet or exceed state and regional accreditation thresholds and goals.

2. Develop and implement strategies to become a national exemplar in program and student outcomes.

3. Create and implement comprehensive pathways to enrich student experience and support student completions.

4. Implement strategies to be recognized as an employer of choice to attract and retain top talent.

5. Expand educational access through a systemic approach with external partners and stakeholders.

6. Expand baccalaureate degree options.

Financial Policies The District’s investment policy, as required by statute, is reviewed and updated annually. The Board of Trustees approved the policy in June 2025. The policy is designed to ensure the safety of principal, maintain liquidity to meet all operating requirements, and achieve a reasonable market yield over budgetary and economic cycles. All bank deposits were either insured by federal depository insurance or fully collateralized throughout the year.

Effective in fiscal year 2025, Board policy requires the District maintain a minimum fund balance equal to 15% of the total current year unrestricted fund budgeted expenses. In prior fiscal years, policy required the District maintain a minimum fund balance of 25% of educational expenses adjusted for reserves and allocations. In addition, the Board continues to maintain designations totaling $24.75 million for stabilization of maintenance and operations if ad valorem tax revenues were to decline based on fluctuations in appraised values.

AWARDS AND ACKNOWLEDGEMENTS

Awards

The Government Finance Officers Association (GFOA) awarded the District a Certificate of Achievement for Excellence in Financial Reporting for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended August 31, 2024. This marks the 28th consecutive year the District has received this prestigious recognition. To qualify for the award, a government must publish an ACFR that is easily readable, efficiently organized, and meets both generally accepted accounting principles and applicable legal requirements.

The Certificate of Achievement is valid for one year. The District believes that the current ACFR continues to meet the program’s high standards and has submitted it to the GFOA for consideration for another certificate.

Acknowledgments This report was prepared through the efficient and dedicated efforts of the Administrative Services staff. We also extend our appreciation to Whitley Penn, LLP, for their assistance and timely completion of the audit. Special recognition is due to the District’s Board of Trustees and Leadership for their commitment to the responsible planning and management of the District’s operations.

Respectfully submitted, Melissa Irby, CPA Barbara Johnston, CPA Chief Financial Officer Deputy Chief Financial Officer

Shandin Havens, CPA Associate Vice President, Controller

Government Finance Officers Association

Certificate of Achievement for Excellence in Financial Reporting

Presented to

Collin County Community College District Texas

For its Annual Comprehensive

Financial Report For the Fiscal Year Ended

August 31, 2024

Executive Director/CEO

Board of Trustees

Jay Saad Chair, Place 2 Plano, Texas

Term 2023- 2029

Dr. Raj Menon Vice Chair, Place 5

Plano, Texas Term 2025-2031

Dr. J. Robert (Bob) Collins Secretary, Place 8 Farmersville, Texas Term 2021-2027

Andrew (Andy) Hardin Treasurer, Place 9

Frisco, Texas Term 2021-2027

Justin Adcock Member, Place 6, Plano, Texas Term 2025-2031

Cathie Alexander Member, Place 3

Term 2023- 2029

Jim Orr

Secretary, Place 7 Lucas, Texas

Term 2021- 2027

Vacant Member, Place 1

Collin County Term 2026-2027

Staci Weaver Member, Place 4

Term 2025-2031

Principal Officers and Staff

Administrative Officers

Neil Matkin, Ed. D. District President

Bill King, Ph. D. Executive Vice President

Jay Corwin, Ph. D.

Senior Vice President of Student and Community Engagement

Melissa Irby, CPA Chief Financial Officer

Abe Johnson, Ed. D. Senior Vice President Campus Operations

Mary McClure

Chief of Staff

Todd Horkman Chief Innovation Officer

Monica Velazquez, J.D. General Counsel

Kristy Horkman Executive Assistant, District President

Financial Staff

Barbara Johnston, CPA Deputy Chief Financial Officer

Shandin Havens, CPA Associate Vice President, Controller

Christi Drilling Executive Director of Accounting

Krystal Fair Director of Accounting

Collin County Community College District Organizational Chart

Board of Trustees

President

Citizens

Executive Vice President

President’s Cabinet Leadership Team

Senior Vice President Student and Community

Engagement

Chief Financial Officer

General Counsel

Chief Human

Resources Officer

Senior Vice President Campus

Operations

VP

Facilities &

Construction

VP Student & Enrollment Services

VP

Institutional

Research

Chief of Police

VP

Academic

Affairs

Executive Director

Collin College Foundation

Campus Provost

Technical

Campus Provost Wylie

Campus Provost Plano

Campus Provost iCollin

Campus Provost Frisco

Campus Provost

McKinney

Chief Information

Chief of Staff

VP

Academic

Operations

Chief Innovation

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Fi na nc ia l

Financial

COLLIN COUNTY COMMUNITY COLLEGE DISTRICT

Management’s Discussion and Analysis (unaudited) For the Years Ended August 31, 2025 and 2024

INTRODUCTION

Collin County Community College District (“the District”), founded in 1985, is proud to present its financial statements for the years ended August 31, 2025 and 2024, which are prepared in accordance accounting principles generally accepted by the Governmental Accounting Standards Board (GASB) and comply with the reporting requirements as set by the Texas Higher Education Coordinating Board (THECB). The annual report consists of three basic financial statements: the Statements of Net Position, the Statements of Revenues, Expenses, and Changes in Net Position, and the Statements of Cash Flows. This analysis reviews the District’s financial activity during the fiscal years ended August 31, 2025, 2024, and 2023 and is based on currently known facts, decisions, and conditions having an impact on financial activities and other key financial data. It should be read in conjunction with the transmittal letter, the basic financial statements, and the notes to the financial statements. Responsibility for the completeness and fairness of the information in this section rests with the District’s management.

In accordance with GASB Statement No. 61 The Financial Reporting Entity: Omnibus-An Amendment of GASB Statements No. 14 and No. 34, the District included financial statements for its discrete component unit, Collin County Community College Foundation (“the Foundation”), within the annual report. The Foundation’s financial statements for the years ending August 31, 2025 and 2024 are presented on separate pages behind the District’s basic financial statements.

The Foundation’s notes to the financial statements are included in Note 19 of the annual report.

2025 FINANCIAL HIGHLIGHTS

Financial highlights for the year ended August 31, 2025 include:

The District issued revenue bonds, which resulted in bonds payable increasing approximately $160.2 million or 31.3% and other non-operating expenses increasing approximately $445 thousand or 694.2% as compared to fiscal year 2024. The proceeds received were held primarily in investments by the District, resulting in investment balances increasing approximately $128.3 million or 54.5%.

During fiscal year 2025, major construction and renovation projects were underway impacting the District’s Courtyard Center, Collin Higher Education Center, Plano Campus as well as a new Frisco Campus Health Science Building, Wylie Campus CTE Building, and Districtwide security enhancements. As a result, net capital assets increased approximately $43.8 million or 5.3% as compared to fiscal year 2024. Additionally, significant amounts were owed to suppliers for construction-related expenses incurred near the District’s fiscal year-end which resulted in accounts payable and accrued liabilities having increased approximately $18.7 million or 136.2% as compared to fiscal year 2024.

GASB Statement No. 68 Accounting and Financial Reporting for Pensions and GASB Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits other than Pensions reduced the District’s net position by $16.0 million or 93.9% as compared to fiscal year 2024. Additionally, net pension and OPEB liabilities decreased by $8.0 million or 5.1% as compared to fiscal year 2024.

Effective for the Fall 2024 academic period, the Board of Trustees approved an increase in tuition rates of 8.1% to 8.7%, depending on residency status. Additionally, credit hours increased approximately 8.3% over the 2023-24 academic year. As a result, net tuition and fees increased $6.9 million or 14.8% as compared to fiscal year 2024. However, this increase in revenues was fully offset by an increase in operating expenses. Scholarship expenses were the largest contributor, having increased $8.3 million or 34.6% as compared to fiscal year 2024, which was primarily attributed to the federal Pell grant.

The District has maintained a total tax rate of $0.08122 for fiscal year 2025. Net assessed value increased from $260.8 billion in fiscal year 2024 to $288.9 billion in fiscal year 2025, resulting in an increase of $16.4 million or 10.4% in ad-valorem tax revenues collected as compared to the prior year.

Non-operating federal grant and contracts increased $8.5 million or 23.7% as compared to fiscal year 2024, primarily resulting from increased funding from the federal Pell grant program of $8.2 million during fiscal year 2025.

2024 FINANCIAL HIGHLIGHTS

Financial highlights for the year ended August 31, 2024 include:

Texas Legislature passed House Bill 8 in 2023, which established an outcomes-based formula for funding based primarily on specific outcomes that are aligned with the State’s higher education strategic plan as well as regional and State workforce needs. Revenues from state appropriations, not including on-behalf benefits, were $51.5 million and $44.6 million for the years ended August 31, 2024 and 2023, respectively, which is an increase of $6.9 million.

The District has maintained a total tax rate of $0.08122 for fiscal year 2024. Net assessed value increased from $223.9 billion in fiscal year 2023 to $260.8 billion in fiscal year 2024 resulting in an increase of $4.0 million in ad-valorem tax revenues collected compared to the prior year.

The Board of Trustees passed a resolution increasing homestead exemptions for taxpayers over the age of 65 from $30,000 to $100,000, for disabled taxpayers from $20,000 to $100,000, and an increase in the percentage of a residence homestead exemption to the greater of $5,000 or 20% of the appraised value compared to $5,000 or 1% of the appraised value. As a result of this change, exemptions increased 89.4%, from $49.1 billion in fiscal year 2023 to $93.1 billion to fiscal year 2024.

Investment income has increased throughout the previous three years, from $11 thousand in fiscal year 2022, to $16.9 million and $22.3 million in fiscal years 2023 and 2024, respectively. The interest rate increases for fiscal years 2023 and 2024 have allowed the District to increase investment income earnings in addition to utilizing laddering investment strategies to manage cashflow.

GASB Statement No. 68 Accounting and Financial Reporting for Pensions and GASB Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits other than Pensions reduced the District’s net position by $17.8 million. The Net Pension and OPEB Liabilities increased by $4.9 million from fiscal year 2023 to 2024.

STATEMENT OF NET POSITION

The Statement of Net Position presents financial position of the District of the end of each fiscal year. It is a point-in-time financial statement with a purpose of giving readers a snapshot of the fiscal condition of the District. The statement includes assets owned by the District, all liabilities owed by the District to others, the deferred outflows and inflows, and the resulting net position.

Assets and liabilities are presented in order of their liquidity with noncurrent defined as greater than one year. Net position is divided into three major categories.

Net investment in capital assets includes in land, buildings and improvements, and equipment owned, and lease and SBITA assets, net of related debt.

Restricted net position includes the net position with external limitations on the way in which they may be used, and are not accessible for general use.

Unrestricted net position includes the net position that is available to be used for any lawful purpose of the District at the direction of the Board of Trustees.

Table/Graph 1 is a condensed summary for the years ended August 31, 2025, 2024, and 2023.

Total assets of the District remained consistent in 2024 and 2023. As shown in Table/Graph 2, there was an overall increase in current assets and noncurrent assets in 2025 primarily due to the receipt of bond proceeds of $185 million during 2025. The bond proceeds are being held in restricted cash, which increased $32.7 million or 78.0% in 2025, as well as both short- and long-term restricted investments, which increased $129.7 million or 2616.5% in 2025.

The proceeds are being used to fund capital projects, including major construction and renovation projects underway throughout the District. Additionally, accounts receivable increased $7.9 million or 36.7% and $4.6 million or 27% in fiscal years 2025 and 2024, respectively. This continued increase is due to higher tuition rates, growing enrollment, and lower internal collections on outstanding student and sponsor receivables. The decrease in collections is primarily the result of implementing a new district-wide ERP system for credit students and new software for non-credit students. See Note 3 (Authorized Investments), Note 4 (Deposits and Investments), and Note 15 (Disaggregation of Receivables and Payables Balances) for additional information.

(Restated) 2023 Current Year Prior Year Assets:

Current assets 491.6$ 340.1$ 323.4$ 44.5 % 5.2 % Capital assets 869.5 825.7 839.3 5.3 % (1.6)% Other noncurrent assets 119.2 94.7 97.6 25.9 % (3.0)%

Total assets 1,480.3$ 1,260.5$ 1,260.3$ 17.4 % 0.0 %

Deferred Outflows of Resources: 33.2 51.0 66.4 (34.9)% (23.2)%

Liabilities:

Current liabilities 105.2$ 78.1$ 72.5$ 34.7 % 7.7 % Noncurrent liabilities 801.3 656.0 678.0 22.1 % (3.2)%

Total liabilities 906.5$ 734.1$ 750.5$ 23.5 % (2.2)%

Deferred Inflow of Resources: 32.7 34.7 37.3 (5.8)% (7.0)%

Net position:

Net investment in capital assets 342.3$ 330.2$ 317.0$ 3.7 % 4.2 % Restricted - expendable 54.0 26.4 20.3 104.5 % 30.0 % Unrestricted 177.8 186.2 201.5 (4.5)% (7.6)%

Total net position 574.1$ 542.8$ 538.8$ 5.8 % 0.7 %

Table/Graph 1: Condensed Statements of Net Position (in Millions)

Fiscal Year Change

Due to rounding, certain totals in this schedule may not be precise.

$1,150.0

$1,200.0

$1,250.0

$1,300.0

$1,350.0

$1,400.0

$1,450.0

$1,500.0

2025 2024 2023

M il li on s

Fiscal Year

Table/Graph 2: Total Assets

Capital assets make up the most significant balance of total assets, at 58.7% of total assets for the current year, 65.5% and 66.6% of total assets for fiscal years 2024 and 2023, respectively.

Capital assets increased due to construction in progress increasing $66.1 million in the current year because of ongoing construction projects. This increase was partially offset by the increase in accumulated depreciation of $20.0 million in the current year. See Note 5 (Capital Assets) for additional information.

Deferred outflow of resources is a consumption of net assets by the District that is applicable to future reporting periods. Deferred outflows of resources have fluctuated significantly from fiscal years ending 2023 to the current fiscal year, especially those related to Other Post-Employment Benefits (OPEB) as shown in Table/Graph 3 below and in Table/Graph 1 above. Fluctuations in deferred outflows occur as a result of recognizing the differences in projected and actual investment earnings at the plan level. Deferred outflows represent the District’s proportionate share of pension and other post-employment benefits the District could make that will benefit employees in the future, but are not considered assets. See Note 10 (Employees’ Retirement Plan) and Note 14 (OPEB) for additional information.

Current liabilities primarily consist of accounts payable and accrued liabilities, unearned revenues, current portions of lease and SBITA liabilities, bonds payable, and OPEB liability. A liability is considered to be current if it is due within one year.

The increase in current liabilities of $27.2 million or 34.8% as compared to 2024 is driven by accounts payable and accrued liabilities including significant amounts owed to suppliers for construction-related expenses. The current portion of bonds payable also increased $6.4 million or 29.6% because of the 2024 Revenue Bond issuance. See Note 9 (Bonds Payable) for additional information. The change from 2023 to 2024 was primarily attributed to unearned revenue increasing $3.6 million or 12.2%.

Unearned revenue and the current portion of bonds payable made up more than 60.8%, 70.0%, and 69.0% of current liabilities for fiscal years 2025, 2024, and 2023, respectively. Unearned revenue primarily consists of student tuition and fees for future academic periods and represents a larger portion of current liabilities in the prior fiscal year due to an increase in tuition rates per credit hours for all residencies of approximately 8% beginning in the Fall 2024 academic period, or for fiscal year 2025. While there was no tuition rate increase for the Fall 2025 academic period, enrollment had increased approximately 6.0% as of fiscal year end. The percentage is skewed in fiscal year 2025 because of the significant increase in accounts payable and accrued liabilities resulting from significant amounts owed to suppliers for construction-related expenses;

this comprised 30.7% of current liabilities in 2025 when it comprised 17.5% and 19.6% of current liabilities in 2024 and 2023, respectively.

$31.4

$30.3

$17.4

$35.0

$20.7

$15.8

$- $15.0 $30.0 $45.0 $60.0 $75.0

Millions

Fi sc a l Y ea r

Table/Graph 3: Deferred Outflows - Pensions and OPEB

Deferred outflows related to pension Deferred outflows related to OPEB

The current portion of bonds payable increased $6.4 million or 29.6% in fiscal year 2025 as compared to fiscal year 2024. A $1.1 million or 5.5% increase occurred from fiscal year 2023 to 2024. See Note 8 (Long-Term Liabilities) and Note 9 (Bonds Payable) for additional information.

Noncurrent liabilities made 88.4%, 89.4%, and 90.3%, of total liabilities, in fiscal years 2025, 2024, and 2023, respectively. The primary components of noncurrent liabilities include net pension liability, net OPEB liability, and the noncurrent portion of bonds payable.

Total noncurrent liabilities increased $145.2 million or 22.1% in fiscal year 2025 after declining $22.0 million or 3.2% in fiscal year 2024. The increase in the current year is primarily attributed to the 2024 bond issuance. This increase is offset slightly due to the decreases in net pension liability and net OPEB liability in the current year. The net OPEB liability has decreased by $1.5 million or 1.6% and $3.5 million or 3.7% in fiscal years 2025 and 2024, respectively. Alternatively, the net pension liability decreased in fiscal year 2025 by $6.5 million or 9.9% after having increased $8.3 million or 14.5% in fiscal year 2024.

Table/Graph 4 illustrates net pension liability and net OPEB liability since fiscal year 2018. While it’s significant to note the fluctuations resulting from OPEB and Pension because of its impact on liabilities, deferred inflows and outflows, and expenses, there is no cash impact on the District. The primary objective of these GASB statements is to improve accounting and financial reporting for OPEB and Pensions. See Note 10 (Employees’ Retirement Plan) and Note 14 (OPEB) for additional information.

Deferred inflows of resources are resources that represent an acquisition of net position related to future periods as required by GASB Statement No. 68, Accounting and Financial Reporting for Pensions, GASB Statement No. 75, Accounting and Financial Reporting for Post-Employment Benefits, Other than Pensions (OPEB) and GASB Statement No. 87 Leases. Statement No. 75 was issued to provide more transparent reporting of the liability and useful information about the liability and costs of post-employment benefits other than pensions. The District participates in a cost-sharing OPEB and has recorded a liability, equal to our proportionate share of the collective OPEB liability for all entities participating in the cost-sharing plan. OPEBs pertain to all post-employment healthcare benefits, death benefits, life insurance, disability and long-term care benefits. See Note 10 (Employees’ Retirement Plan) and Note 14 (OPEB) for additional information.

$31.3

$65.5

$82.4

$86.8

$116.7

$95.6 $92.3 $90.8

$19.7

$35.2 $36.6 $42.4

$23.5

$57.6 $65.9

$59.4

$40.0

$80.0

$120.0

$160.0

2018 2019 2020 2021 2022 2023 2024 2025

M il lio n s

Fiscal Year

Table/Graph 4: Pension and OPEB Liability

OPEB Pension

Deferred inflows related to leases represents future revenue the District is expected to receive for cell tower leases, and has remained steady. The deferred inflow is calculated as the lease receivable plus any payments made at or prior to the commencement of the lease term that relate to future periods. See Note 6 (Leases) for additional information.

Net position represents the District’s fund balance, some of which is restricted for certain uses and some of which is unrestricted. The District’s net position was $574.1 million, $542.8 million, and $538.8 million in 2025, 2024, and 2023, respectively. This resulted in increased net position of $31.4 million or 5.8% and $3.9 million or 0.7% in fiscal years 2025 and 2024, respectively.

While unrestricted net position tends to be most volatile year over year, there was a significant increase in restricted net position of $27.7 million or 104.6% in fiscal year 2025. This is primarily attributed to the issuance of revenue bonds during the fiscal year.

During fiscal year 2024, the Board of Trustees voted to undesignate the $30 million health care reserve accumulated over the years since 2007. The District budgets a transfer from unrestricted current funds to debt service to fund debt service payments. The transfers for the last three years from unrestricted current funds to debt service have been $23.7 million, $27.2 million, and $27.2 million for fiscal years 2025, 2024, and 2023, respectively. The District’s debt tax rate remained at $.00622/$100 of assessed value, but this was not sufficient to cover annual debt service requirements, thus requiring the transfer. See THECB Supplemental Schedule D for a breakdown of net position, and Note 2 (Summary of Significant Accounting Policies) for additional information.

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

The Statement of Revenues, Expenses, and Changes in Net Position presents the revenues earned and expenses incurred by the District, both operating and non-operating, and any other revenues, expenses, gains and losses received or spent by the District during the fiscal year. Operating expenses are those paid to acquire or produce the goods and services provided in return for the operating revenue and to carry out the District’s mission. Non-operating revenues include activities that have the characteristics of non-exchange transactions, such as state appropriations, ad-valorem taxes, and federal grants.

Table/Graph 5 is a condensed summary for the years ended August 31, 2025, 2024, and 2023.

The District’s primary sources for revenues are tuition and fees, state appropriations, and ad-valorem taxes. Operating revenues include tuition, while state appropriations and ad-valorem taxes are reported as non-operating revenues. State appropriations, and ad-valorem taxes, made up 64.0%, 65.2%, and 62.6% of total revenues for the fiscal years ended 2025, 2024, and 2023, respectively. As a result, the District’s operating loss of $271.5 million, $265.1 million and $238.9 million for fiscal years 2025, 2024, and 2023, respectively, is expected since significant revenues are reported as non-operating revenues. Additionally, depreciation on capital assets is reported as an operating expense, which contributes to the operating loss.

Operating revenues consists of tuition and fees (net of discounts), grants and contracts, auxiliary revenues, and other operating revenues. As shown in Table/Graph 5, total operating revenues increased $8.9 million or 15.5% in fiscal year 2025 due to the increase in tuition and fees (net of discounts). This increase is primarily attributed to increased tuition rates of 8.1% to 8.7%, depending on residency status effective Fall 2024. Additionally, enrollment increased approximately 8.6% over the fiscal year 2024 academic year. Total operating revenues decreased $18.5 million or 83.5% in fiscal year 2024 primarily due to federal revenues decreasing from $22.2 million to $3.7 million, which is specifically COVID-related grants that ended in fiscal year 2023.

(Restated) 2023 Current Year Prior Year Operating revenues:

Tuition and fees, net 53.4$ 46.5$ 45.6$ 14.8 % 2.0 % Grants and contracts 6.5 5.1 23.6 27.5 % (78.4)% Auxiliary enterprises 5.5 4.8 4.6 14.6 % 4.3 %…