The ratings are based on financial data from fiscal year 2023-24, and were presented to the board of trustees at its Oct. 13 meeting.
What you need to know
FIRST began after the 77th Texas Legislature passed Senate Bill 218, which required the Texas Education Agency to form a financial accountability rating system for school districts, and districts to prepare an annual financial management report.
The purpose of FIRST is to ensure districts are “held accountable for the quality of their financial management practices and achieve improved performance in the management of their financial resources,” according to an FISD presentation.
The rating is based on several factors, including:
- Financial solvency through assets and liabilities
- Budgetary practices
- Debt management
- Efficiency in managing public funds
The FIRST rating uses 21 indicators, according to district documents. These include whether the district submitted financial documents to the TEA within the required time frame, if the district complied with debt payments by the end of the fiscal year, if cash on hand was sufficient, and whether the current assets and liabilities ratio was sufficient to cover short-term debt.
Out of all indicators, FISD did not receive a 10/10 for the following:
- Indicator 8 measures whether the ratio of current assets to current liabilities can cover short-term debt. FISD scored an 8/10.
- Indicator 11 assesses whether the district’s financial structure is stable enough to handle its long-term obligations without jeopardizing its financial position. FISD scored a 4/10.
- Indicator 12 correlates future debt requirements with the district’s assessed property value. FISD scored an 8/10.
To view the full FIRST report, review prior reports or the district’s finances, visit FISD’s financial transparency page.
