The ratings are based on financial data from fiscal year 2023-24, and were presented to the board of trustees at its Oct. 14 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.
FIRST “ensures financial accountability and transparency across Texas public schools,” according to a PISD 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, PISD did not receive full credit for the following:
- Indicator 4, which measured if the district made timely payments to the Teachers Retirement System, Texas Workforce Commission, IRS and other government agencies. Superintendent Larry Berger noted the indicator was passed, but due to processing issues with IRS payments, full credit was not received.
- Indicator 8 measures whether the ratio of current assets to current liabilities can cover short-term debt. PISD scored an 8/10.
“This achievement highlights our district’s ongoing commitment to responsible fiscal oversight,” Berger said in an Oct. 10 news release. “We are dedicated to ensuring that every dollar is spent wisely in support of our students, staff and community.”
