Brownsville Independent School District August 31, 2004

1
Brownsville Independent School DistrictAugust
31, 2004

• Presentation on the Texas Education Agency
• School FIRST
• Financial
• Integrity
• Rating
• System of
• Texas

2
School FIRST Background

• Senate Bill 218 of the 77th Legislature (2001)
  authorized the implementation of a financial
  accountability rating system.
• Rating is for BISDs fiscal year ended August
  31, 2004.
• The Texas Education Agency rated every school
  district on twenty-one indicators.
• Official results were released Friday, August 5,
  2005.

3
Brownsville Independent School District

• The Brownsville Independent School District
  earned a
• Superior Achievement
• rating.

4
School FIRST Rating System

• Rating is determined by the number of indicators
  answered NO.

5
Default Indicators

• Did the District answer NO to indicators 1, 2, or
  3?
• Did the District answer NO to both indicators 4
  and 5?
• If answered NO to either, the Districts rating
  is Substandard Achievement.

6
Indicator 1

• Was The Total Fund Balance Less Reserved Fund
  Balance Greater Than Zero In The General Fund?
• School Districts must legally have a fund balance
  to ensure adequate funding for operations. This
  indicator is designed to ensure that your school
  district has a positive amount of fund balance
  cash (savings) that is not designated or
  reserved for a specific purpose. In other
  words, Does your district have funds set aside
  for a rainy day?
• Brownsville ISDs undesignated fund balance at
  August 31, 2004 was 109,906,976. The previous
  years undesignated fund balance was 71,802,448.

7
Indicator 2

• Were There No Disclosures In The Annual Financial
  Report
• And/Or Other Sources Of Information Concerning
  Default On Bonded Indebtedness?
• This indicator seeks to make certain that your
  district has paid its bills/obligations on bonds
  issued to pay for construction, etc.
• Brownsville ISD has not had any instance of
  default on bonded debtedness obligations.

8
Indicator 3

• Was The Annual Financial Report Filed Within One
  Month After November
• 27th or January 28th Deadline Depending On The
  Districts Fiscal Year End Date (June 30th or
  August 31st)?
• A simple indicator. Was the districts Annual
  Financial Report filed by the deadline?
• The Brownsville ISD Annual Financial and
  Compliance Report was submitted before the TEA
  deadline of January 28, 2005.

9
Indicator 4

• Was There An Unqualified Opinion In The Annual
  Financial Report?
• A qualification on the districts financial
  report means that the district needs to correct
  some of its reporting or financial controls. A
  districts goal, therefore, is to receive an
  unqualified opinion on Annual Financial Report.
  This is simple Yes or No indicator.
• The Brownsville ISD has received an unqualified
  opinion on its Annual Financial and Compliance
  Report for the fiscal year ended August 31, 2004.

10
Indicator 5

• Did The Annual Financial Report Not Disclose Any
  Instance(s) Of Material Weaknesses In Internal
  Controls?
• A clean audit of the districts Annual Financial
  Report would state that the district has no
  material weaknesses in internal controls. Any
  internal weaknesses create a risk of your
  district not being able to properly account for
  its use of public funds, and should be
  immediately addressed
• No material weaknesses in internal controls were
  disclosed in the Brownsville ISDs Annual
  Financial and Compliance Report.

11
Indicator 6

• Was The Percent Of Total Tax Collections
  (Including Delinquent) Greater Than 96?
• This indicator measures the districts success in
  collecting the taxes owed by the districts
  community's businesses and homeowners, placing a
  96 percent minimum collections standard. The
  district must collect 96 percent or more of its
  taxes, including any delinquent taxes owed from
  past years.
• The Brownsville ISDs tax collection rate at
  August 31, 2004 was 98.32. The tax collection
  rate for the previous year was 97.65.

12
Indicator 7

• Did The Comparison Of PEIMS Data To Like
  Information In The Annual Financial Report Result
  In An Aggregate Variance Of Less Than 4 Percent
  Of Expenditures Per Fund Type (Data Quality
  Measure)?
• This indicator measures the quality of data
  reported to PEIMS and in the districts Annual
  Financial Report to make certain that the data
  reported in each case matches up. If the
  difference in numbers reported in any fund type
  is more than 4 percent, the district fails this
  measure.
• Brownville ISDs PEIMS data variance was 0.0002.
  TEA allows for a 4.0000 variance.

13
Indicator 8

• Were Debt Related Expenditures (Net Of IFA And/Or
  EDA) Five-Year Percent Change In Students Or 2,
  Or If Property Collected Per Penny Of Tax Effort
  100,000, Then Answer This Indicator YES)
• This indicator shows the legislatures intent for
  school districts to spend money on education,
  rather than fancy buildings, by limiting the
  amount of money districts can spend on debt to
  770 per student. Fortunately, the legislature
  did allow for fast growing school to exceed this
  cap.
• Brownsville ISDs debt expenditures (net of
  IFA/EDA allotments) per student were 151. Debt
  related expenditures per student for the previous
  year were 109.

14
Indicator 9

• Was There No Disclosure In The Annual Audit
  Report Of Material Noncompliance?
• A No disclosure means the Annual Audit Report
  includes no disclosure indicating that the school
  district failed to comply with laws, rules, and
  regulations for a government entity.
• The Brownsville ISD Annual Financial and
  Compliance Report at August 31, 2004 did not have
  any disclosure of material noncompliance.

15
Indicator 10

• Did The District Have Full Accreditation Status
  In Relation To Financial Management Practices?
  (e.g. No Master Or Monitor Assigned)
• Did TEA take over control of your district due t
  financial issues such as fraud or having a
  negative fund balance? If not, the district
  passed this indicator.
• The Brownsville ISD had full accreditation status
  at August 31, 2004.

16
Indicator 11

• Was The Percent Of Operating Expenditures
  Expended For Instruction Greater Than 54?
• This indicator shows the districts ability to
  focus the majority of its funding s that it
  directly pays for student instruction. Only
  items such as salaries for classroom teachers and
  classroom supplies qualify as instruction
  expenditures in this calculation (Function 11).
• For the year ended August 31, 2004, the
  Brownsville ISDs percentage of operating
  expenditures for instruction were 56.48. For FY
  02-03, the percentage was 56.33

17
Indicator 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?
• Did the district overspend its budget? The
  district will a receive a negative rating on this
  measure if its total expenditures and other uses
  for fiscal year exceeded its total funds
  available.
• Brownsville ISDs total revenues, other sources
  and fund balance in the general fund exceeded
  total expenditures and other uses by 95,387,143.
  
• The FY 02-03 amount was 93,464,795.

18
Indicator 13

• If The Districts 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 The
  Fund Balance Situation)
• Did the district overspend on school buildings or
  other capital projects? This indicator measures
  the districts ability to construct facilities
  without damaging its fund balance.
• Fund balance in the General Fund was 136,351,605
  and 14,659,545 in the Capital Project Funds.
  These amounts indicate that the District has not
  overspent on construction projects.

19
Indicator 14

• Was The Ratio Of Cash And Investments To Deferred
  Revenues (Excluding Amount Equal To Net
  Delinquent Taxes Receivable) In The General Fund
  Or 11? (If Deferred Revenues Delinquent Taxes Receivable, Then Answer This
  Indicator YES)
• This indicator measures whether or not the
  district has sufficient cash and investments to
  balance fund balance monies such as TEA
  overpayments (deferred revenues). In other
  words, the district should have fund balance
  monies of its own that are at least equal to
  those dollars that are there due to overpayments
  from TEA, and it should not be spending next
  years monies this year.
• Total cash and investments were 110,686,726
  while deferred revenues (excluding net delinquent
  taxes receivable) were 87,610, resulting a ratio
  of 1,2651.

20
Indicator 15

• Was The Administrative Cost Ratio Less Than The
  Standard In State Law?
• TEA and state law sets a cap on the percentage of
  their budget that Texas school districts can
  spend on administration. Did you exceed the cap
  for districts of the districts size?
• TEAs administrative cost ration is 11.05,
  whereas, the Brownsville ISDs administrative
  cost ratio was 7.53 at August 31, 2004.

21
Indicator 16

• Was The Ratio Of Students To Teachers Within The
  Ranges Shown Below According To District Size?
• This indicator measure your pupil-teacher ration
  to ensure that is within TEA recommended ranges
  for districts of the local districts size. For
  example, districts with a student population
  between 500 and 1,000 should have no more than 22
  students per teacher and no fewer than 10
  students per teacher.
• School districts comparable to Brownsville ISD
  should have no more than 22 students per teacher
  and no fewer than 13.5 students per teacher.
  Brownsville ISD student/teacher ratio was 15.213
  at August 31, 2004.

22
Indicator 17

• Was The Ratio Of Students To Total Staff Within
  The Ranges Shown Below According To District
  Size?
• This indicator measures your pupil-staff ration
  to ensure that it is within TEA recommended
  ranges for districts of the local districts
  student population. For example, districts with
  a student population between 500 and 1, 000
  should have no more than 14 students per staff
  member and no fewer than 5.5 students per
  district employee.
• School districts comparable to Brownsville ISD
  should have no less than 6.6 or no more than 14
  students per total staff. Brownsville ISD ratio
  of students per total staff was 6.794 at August
  31, 2004.

23
Indicator 18

• Was The Total Fund Balance In The General Fund
  More Than 50 And Less Than 150 Of Optimum
  According To The Fund Balance And Cash Flow
  Calculation Worksheet In The Annual Financial
  Report?
• Exhibit A in the districts Annual Financial
  Report provides an optimum General Fund fund
  balance . The district should have no less than
  one-half and no more than one and one-half this
  amount in the districts actual fund balance,
  counting both reserved and unreserved fund
  balances.
• Exhibit J-3 in the Districts Annual Financial
  and Compliance Report provides an optimum fund
  balance (64,035,672) for the General Fund. The
  District should no less than one-half and no more
  than one and one-half timed this amount in its
  General Fund fund balance. At August 31 2004,
  the District had 141.95 of the upper limit for
  the optimum fund balance.
• Optimum Fund Balance 0.5
  32,017,986
• Optimum Fund Balance 1.5
  96,053,508
• BISD General Fund fund balance 136,351,605

24
Indicator 19

• Was The Decrease In Undesignated Unreserved Fund
  Balance Times Optimum Fund Balance In General Fund Or If Total Revenues Operating
  Expenditures In The General Fund, Then Answer
  This Indicator YES)
• Is the district feeding off of the districts
  fund balance to pay for salaries or other
  district operating expenses? This indicator
  notes rapid decreases in a districts
  undesignated fund balance (those dollars not
  designated for future uses, such as purchase of
  land, construction, etc.).
• Brownsville ISDs General Fund total revenues
  exceeded total expenditures, resulting a Yes
  answer to this criteria.

25
Indicator 20

• Was The Aggregate Total Of Cash And Investments
  In The General Fund More Than 0?
• Does your district have cash in the bank and/or
  investments?
• This indicator simply confirms that the school
  district has cash in the bank or in investments.
  At August 31, 2004, the Brownsville ISD General
  Fund had 110,686,726 in cash and investments.

26
Indicator 21

• Were Investment Earnings In All Funds More Than
  15 Per Student?
• Is the district using its cash or fund balance
  wisely?
• This indicator verifies that the District is
  investing its money wisely and getting a good
  return on its investments. The investment
  earnings per student was 50.21 per student, well
  above the TEA standard of 15.00 per student.

27
School FIRST Rating System

• Indicator 16 Ratios

28
School FIRST Rating System

• Indicator 17 Ratios

29
Thank you!