Schools First Financial Reports

Financial Integrity Rating

System of Texas

• Originated by SB218 of the 77th Texas

Legislature in 2001.

Amended in 2007 and 2009

• Expands the public education accountability

system in Texas to the Financial Services.

• Primary goal to improve management of

school district’s financial resources.

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System of Texas

• Assess the quality of financial

management in Texas public schools.

• Fairly evaluate the quality of financial

management decisions.

• Openly report results to the general

public.

3


System of Texas

Scores based on summation of points on

20 indicators: Maximum of 70 points:

Superior Achievement 64-70

Above Standard Achievement 58-63

Standard Achievement 52-57

Substandard Achievement <52

(No points awarded on questions 1-6)

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System of Texas

1. Was the total fund balance less reserved fund balance greater than zero in the general fund?

Yes

5

Total Fund Balance $9,628,234

Less Reserves (152,121)

$9,476,113


System of Texas

2. Was the total unrestricted net asset balance (net of accretion of interest on capital appreciation bonds) in the governmental activities column in the Statement of Net Assets greater than Zero? (If the District’s 5 year % change in students was more than 10%, then answer is “YES”.)

Yes

6

Total Unrestricted Net Assets $10,744,757

Plus: Accretion of Interest for CAB’s 280,215

$11,024,972


System of Texas

3. Were there NO disclosures in the annual financial report

and/or other sources of information concerning default

on bonded indebtedness obligations?

Yes

4. Was the annual financial report filed within one month

after the November 27th or January 28th deadline

depending upon the district’s Fiscal Year end date (June

30th or August 31st)?

Yes Due 12/28/11

Filed 12/01/11

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System of Texas

5. Was there an unqualified opinion on annual financial

report?

Yes

6. Did the annual financial report not disclose any

instances(s) of material weaknesses in Internal

Controls?

Yes

8


System of Texas

7. Was the three-year average percent of total tax

collections (including delinquent) greater than 98%

Yes - 5 points

3-Year Total Tax Collections $201,993,459

3-Year Total Tax Levy 201,680,655

-----------------

Percent Collected Equals 100.16%

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System of Texas

8. Did the comparisons of PEIMS data to like information

in annual financial report result in an aggregate

variance of less than 3 percent of expenditures per

fund type (Data Quality Measure)?

Yes – 5 points

Sum of Differences $ 37

Total Entries $124,177,565

0.000% < 3.00%

10


System of Texas

9. Were debt related expenditures (net of IFA and/or EDA

allotment) less than $350 per student? (If the District’s

five-year percent change in students = or > 7%, or if

property taxes collected per penny of tax effort >

$200,000, then answer this indicator “YES”)?

Yes – 5 points

$1,306 is not < $350

however

9.5% change in students is > 7%

and

$530,395 > $200,000 of tax effort

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System of Texas

10. Was there no disclosure in the annual audit report of

material noncompliance?

Yes – 5 points

11. Did the District have full accreditation status in relation

to financial management practices? (e.g.: No conservator

or monitor assigned.)

Yes – 5 points

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System of Texas

12. Was the aggregate of budgeted expenditures and other

uses less than the aggregate of total revenues, other

resources and fund balance in general fund?

Yes – 5 points

Budgeted Revenues $86,183,693

+ Budgeted Other Resources 0

+ Beginning Fund Balance 13,068,708

- Budgeted Appropriations (86,183,708)

- Budgeted Other Uses 0

$13,068,693

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System of Texas

13. If the District’s aggregate fund balance in the General

Fund and Capital Projects Fund was less than zero,

were construction projects adequately financed? (to

avoid creating or adding to a fund balance deficit

situation)

Yes – 5 points

Fund Balance in General Fund $9,628,234

+ Fund Balance in Capital Projects 86,977,694

$96,605,928

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System of Texas

14. Was the ratio of cash and investments to deferred

revenues (excluding amount equal to net delinquent

taxes receivables) the General Fund = or > 1:1? (If

deferred revenues < Net delinquent taxes receivable,

then answer this indicator “Yes”.)

Yes – 5 points

Deferred Revenue in Gen. Fund $1,133,047

Less Property Tax Rec. Net of Uncollectible $1,811,671

($678,624)

Cash and Investments in Gen Fund $12,075,580

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System of Texas

15.Was the administrative cost ratio less than the threshold

ratio?

Yes – 5 points

District State Standard

0.1009 < 0.125

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System of Texas

12.6018 (107% of 13.5)

16. Was the ratio of students

to teachers within the

ranges shown below

according to District size?

Yes – 3 points

# of Students Low High

<500 7.0 22

500 - 999 10.0 22

1000 - 4999 11.5 22

5000 - 9999 13.0 22

=>10,000 13.5 22

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17. Was the ratio of students

to total staff within the

ranges shown below

according to District size?

Yes – 2 points

6.2387 (112% of 7.0)

# of Students Low High

<500 5.0 14

500 - 999 5.8 14

1000 - 4999 6.3 14

5000 - 9999 6.8 14

=>10,000 7.0 14


System of Texas

18. Was The Decrease In Undesignated Unreserved

Fund Balance < 20% Over Two Fiscal Years?(If Total

Revenues > Operating Expenditures In The General

Fund, Then District Receives 5 Points)

No – 0 points

Undesignated Fund Balance at year end $9,476,113

Undesignated Fund Balance-2 yrs prior $16,155,882

Percentage Increase(Decrease) (41.35%)

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System of Texas

19. Was the aggregate total of cash and investments in

the General Fund more than $0?

Yes – 5 points

Cash + Investments = $12,075,580

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System of Texas

20. Were Investment Earnings In All Funds (Excluding Debt

Service Fund and Capital Projects Fund) Meet or

Exceed the 3-Month Treasury Bill Rate?

Yes – 5 points

Cash & Investment Earnings

Current Fiscal Year 13,456,988

Prior Fiscal Year 15,335,526

Investment Earnings 0.3899% or $56,134

3-Month Treasury Bill Rate 0.0950%

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System of Texas

Scored 60 out of 70

possible points!

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ABOVE STANDARD ACHIEVEMENT

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Education

Schools First Financial Reports