The results from third-party accounting firm Whitney Penn LLP, presented during the Nov. 3 board meeting, reflect the district's adherence to rigorous standards and financial transparency, Senior Auditor Lupe Garcia said.
The gist
For the 2024-25 school year, the district received more revenue than expected and spent less than initially planned, with a resulting fund balance of $211.8 million, a $300,000 decrease from the prior year.
The district’s general fund revenue totaled $834.5 million for FY 2024-25, which was $2.8 million greater than the budgeted revenue. The district received the most funds from local property taxes, totaling 48% of revenues.
Meanwhile, general fund expenditures totaled $837.3 million, which was $14.4 million less than budgeted. Of the total, Garcia said 62% was assigned to instruction and related services.
Garcia said FBISD continues to meet its board policy target of maintaining reserves equal to at least 25% of annual expenditures, equivalent to about 90 days of operating costs. The district has met or exceeded this goal in the past 10 years, with the exception of the 2020-21 school year.
In September, the board approved a 7-cent one-year tax increase for the 2025-26 school year to fund staff salaries and maintain the 90-day reserve, which would have otherwise not been possible without a deficit.
Something to note
When comparing the district’s assets and liabilities, there is a negative balance of $332.1 million due to the pension funds and employment benefits, including health care for retirees, Garcia said.
He said the comparison is prepared once a year solely for the Annual Comprehensive Financial Report and is used only for audits, not for daily financial decisions or budgeting.
As of June 30, FBISD reported $2.6 billion in total assets, including $508.9 million in cash and investments and $1.8 billion in capital assets such as land, buildings and equipment.
Total liabilities were reported at $2.9 billion, primarily composed of $2 billion in long-term bonds payable and $471 million in pension and retiree health care obligations related to the district’s participation in the Texas Retirement System.
Another thing
In addition to receiving a clean opinion on its financial statements, FBISD’s Government Auditing Standards report—commonly known as the “Yellow Book” report—contained no significant deficiencies, material weaknesses or instances of noncompliance, Garcia said.
The district also passed its federal single audit, which reviews major federally funded programs for compliance. This year’s audit examined three key programs: the Special Education Cluster; Title II, Part A; and the Emergency Connectivity Fund. Garcia said auditors reported no questioned costs or compliance issues across these areas.
The Debt Service Fund, used to pay bond principal and interest, ended with $166.7 million, reflecting higher-than-expected property tax collections and lower expenditures, Garcia said.
Moving forward
Due to a federal delay in issuing the 2025 compliance supplement, the final single audit report is projected to be issued in either December or January, Garcia said. The board will need to approve its issuance when it is finalized.
