2. • 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.
2 Financial Integrity Rating
System of Texas

3. • 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 Financial Integrity Rating
System of Texas

4. 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)
4 Financial Integrity Rating
System of Texas

5. 1. Was the total fund balance less reserved fund
balance greater than zero in the general fund?
Yes
Total Fund Balance $9,628,234
Less Reserves (152,121)
$9,476,113
5 Financial Integrity Rating
System of Texas

6. 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
Total Unrestricted Net Assets $10,744,757
Plus: Accretion of Interest for CAB’s 280,215
$11,024,972
6 Financial Integrity Rating
System of Texas

7. 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
7 Financial Integrity Rating
System of Texas

8. 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 Financial Integrity Rating
System of Texas

9. 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%
9 Financial Integrity Rating
System of Texas

10. 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 Financial Integrity Rating
System of Texas

11. 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
11 Financial Integrity Rating
System of Texas

12. 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
12 Financial Integrity Rating
System of Texas

13. 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
15 Financial Integrity Rating
System of Texas

14. 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
16 Financial Integrity Rating
System of Texas

15. 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
17 Financial Integrity Rating
System of Texas

16. 15.Was the administrative cost ratio less than the threshold
ratio?
Yes – 5 points
District State Standard
0.1009 < 0.125
18 Financial Integrity Rating
System of Texas

17. 16. Was the ratio of students 17. Was the ratio of students
to teachers within the to total staff within the
ranges shown below ranges shown below
according to District size? according to District size?
Yes – 3 points Yes – 2 points
12.6018 (107% of 13.5) 6.2387 (112% of 7.0)
# of Students Low High # of Students Low High
<500 7.0 22 <500 5.0 14
500 - 999 10.0 22 500 - 999 5.8 14
1000 - 4999 11.5 22 1000 - 4999 6.3 14
5000 - 9999 13.0 22 5000 - 9999 6.8 14
=>10,000 13.5 22 =>10,000 7.0 14
19 Financial Integrity Rating
System of Texas

18. 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%)
21 Financial Integrity Rating
System of Texas

19. 19. Was the aggregate total of cash and investments in
the General Fund more than $0?
Yes – 5 points
Cash + Investments = $12,075,580
21 Financial Integrity Rating
System of Texas

20. 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%
22 Financial Integrity Rating
System of Texas

21. Scored 60 out of 70
possible points!
ABOVE STANDARD ACHIEVEMENT
23 Financial Integrity Rating
System of Texas

22. 26