financial management report financial integrity rating system of texas 2010 school first rating...

Financial Management Report

Financial Integrity Rating System of Texas

2010 School FIRST Rating

WYLIE INDEPENDENT SCHOOL DISTRICT

Rating: Superior Achievement


2010 School FIRST Rating

WYLIE INDEPENDENT SCHOOL DISTRICT

This is the eighth year of School FIRST (Financial

Integrity Rating System of Texas), a financial

accountability system for Texas school districts

developed by the Texas Education Agency. Wylie

ISD received the highest possible rating all eight

years.


Financial Accountability Rating System

Wylie ISD

The primary goal of School FIRST is to achieve

quality performance in the management of

school districts’ financial resources, a goal

made more significant due to the complexity of

accounting associated with Texas’ school

finance system.


GOAL OF SCHOOL FIRST Wylie ISD

RATINGS

School FIRST ratings:Superior Achievement

Above-Standard Achievement

Standard Achievement

Substandard Achievement

Additional rating:Suspended – Data Quality


Wylie ISD

BASIS OF RATINGS

Based Upon 22 Indicators (previously 24)

Ratings Function of Aggregate Number of Points and Answers to Critical Indicators

Five Point Scale for Most Indicators with Calculated Values

Some Indicators Remain Pass/Fail


Wylie ISD

OVERVIEW OF BASE INDICATORS

The 22 indicators are questions grouped as follows:

Indicators 1-7 Critical Indicators

Indicators 8-12 Fiscal Responsibility

Indicators 13-15 Budgeting

Indicators 16-18 Personnel

Indicators 19-22 Cash Management


Wylie ISD

DETERMINATION OF RATING

A. Did the district answer No to indicators 1, 2, 3,Or 4? Or did the district answer No to both 5 and 6? If answered No to either, the district’s rating Is Substandard Achievement.

B. Determine rating by applicable range for summation of the indicator scores (Indicators 7 – 22).

Superior Achievement 72-80 and Yes to indicator 7

Above Standard Achievement 64-71 or ≥ 72 and No to indicator 7

Standard Achievement 56-63

Substandard Achievement < 56 Or No To One Default Indicator

Wylie ISD score: 75


Wylie ISD

Indicator #1

Fund balance less reserved fund balance was $11,692,657 as of June 30, 2009.


Was 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 the district has a positive amount of fund balance cash (savings) that is not designated or “reserved” for a specific purpose. In other words, “Does the district have funds set aside for a rainy day?”

Data Supporting Indicator

StatusYes

Wylie ISD

Indicator #2

The District’s five year percentage change was 44.5%.


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 10% more)

This indicator simply asks, “Did the district’s total assets exceed the total amount of liabilities (according to the very first financial statement in the annual audit report)?” Fortunately this indicator recognizes that high-growth districts incur large amounts of debt to fund construction, and that total debt may exceed the total amount of assets under certain scenarios.


StatusYes

Wylie ISD

Indicator #3

There were no disclosures concerning default on bonded indebtedness obligations in the Annual Report and/or other sources of information.


Were there NO disclosures in the Annual Report and/or other sources of information concerning default on bonded indebtedness obligations?

This indicator seeks to make certain that the district has paid our bills/obligations on bonds issued to pay for school construction, etc.


StatusYes

Wylie ISD

Indicator #4

The Annual Financial Report was filed on October 30, 2009.


Was the Annual Financial Report filed within one month after the November 27 or January 28 deadline depending upon the district’s Fiscal Year end date (June 30 or August 31)?

A simple indicator. Was the Annual Financial Report filed by the deadline?


StatusYes

Wylie ISD

Indicator #5

There was an unqualified opinion in the Annual Financial Report.


Was there an Unqualified Opinion in the Annual Financial Report?

A “qualification” on the financial report means that we need to correct some of our reporting or financial controls. A district’s goal, therefore, is to receive an “unqualified opinion” on its Annual Financial Report. This is a simple “Yes” or “No” indicator.


StatusYes

Wylie ISD

Indicator #6

The Annual Financial Report did NOT disclose any instances of material weakness in internal controls.


Did the Annual Financial Report NOT disclose any instance(s) of material weakness in internal controls?

A clean audit of the Annual Financial Report would state that our district has no material weaknesses in internal controls. Any internal weaknesses create a risk of our District not being able to properly account for its use of public funds, and should be immediately addressed.


StatusYes

Wylie ISD

Indicator #7

The District did not receive an Academically Unacceptable rating.


Did the district’s academic rating exceed academically unacceptable?

This indicator simply asks whether the district’s accreditation status is in good standing.


Points5

Wylie ISD

Indicator #8

The three-year average tax collection rate (including delinquent taxes) was 99.71%.


Was the three-year average percent of total tax collections (including delinquent) greater than 98 percent?

This indicator measures the district’s success in collecting the taxes owed to us by our community’s businesses and homeowners, placing a 98 percent minimum collections standard. We must collect more than 98 percent of our taxes, including any delinquent taxes owed from past years. A district earns up to five points under this indicator based upon its relative performance.


Points5

Wylie ISD

Indicator 9

The aggregate variance between PEIMS data and information in the Annual Financial Report was 0.0001519%.


Did the comparison of PEIMS data to like information in the Annual Financial Report result in an aggregate variance of less than 3 percent of expenditures per fund type (Data Quality Measure)?

This indicator measures the quality of data reported to PEIMS and in our 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 3 percent, our district “fails” this measure.


Points5

Wylie ISD

Indicator #10

Debt related expenditures (net of IFA and EDA allotments) for the fiscal year ended June 30, 2009 were $923 per student. However, our five-year percent change in students was greater than 7 percent (44.5%), and one penny of tax effort was more than $200,000 ($308,587) for the year ended June 30, 2009.


Were Debt-Related Expenditures (net of IFA and/or EDA allotment) less than$250 per student? (If the district’s five-year percent change in students was a 7 percent increase or more, or if property taxes collected per penny of tax effort were more than $200,000, then answer this indicator YES.)

This indicator shows the Legislature’s intent for school districts to spend money on education, rather than fancy buildings, by limiting the amount of money district’s can spend on debt to $250 per student. Fortunately, the Legislature did allow for fast-growth schools to exceed this cap. A district earns up to five points under this indicator based upon its relative performance.


Points5

Wylie ISD

Indicator #11

Wylie ISD is required to spend at least 85% of the bilingual education allotment. These expenditures were less than the required amount by $59,698. The expenditures will be closely monitored to spend the underexpended amount within the next two fiscal years in addition to the required expenditures.


Was there NO disclosure in the Annual Audit Report of Material Noncompliance?

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.


Points0

Wylie ISD

Indicator #12

The district has full accreditation status in relation to financial management practices.


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 our district due to financial issues such as fraud or having a negative fund balance? If not, we pass this indicator.


Points5

Wylie ISD

Indicator #13

Budgeted Expenditures and Other Uses were $9,016,890 less than Total Revenues, Other Resources and Fund Balance for the year ended June 30, 2009.


Was the aggregate of Budgeted Expenditures and Other Uses LESS THAN the aggregate of Total Revenues, Other Resources and Fund Balance inGeneral Fund?

Did we overspend our budget? Our district will receive a negative rating on this measure if our total expenditures and other uses for the fiscal year exceeded our total funds available.


Points5

Wylie ISD

Indicator #14

As of June 30, 2009, the fund balance in the General Fund and the Capital Projects Fund was $11,692,657 and $17,050,731, respectively.


If the district’s Aggregate Fund Balance in the General Fund and Capital Projects Fund was LESS THAN zero, were construction projects adequately financed? (Were construction projects adequately financed or adjusted by change orders or other legal means to avoid creating or adding to the fund balance deficit situation?)

Did we over-spend on school buildings or other capital projects? This indicator measures our district’s ability to construct facilities without damaging our Fund Balance.


Points5

Wylie ISD

Indicator #15

The ratio of Cash and Investments to Deferred Revenues (excluding net Delinquent Taxes Receivable) was 116.9438 as of June 30, 2009.


Was the ratio of Cash and Investments to Deferred Revenues (excluding amount equal to net Delinquent Taxes Receivable) in the General Fund greater than or equal to 1:1? (If Deferred Revenues are less than Delinquent Taxes Receivable, then the district receives 5 points.)


Points5

This indicator measures whether or not our district has sufficient cash and investments to balance Fund Balance monies such as TEA overpayments (deferred revenues). In other words, our 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 we should not be spending “next year’s” monies this year. A district earns up to five points under this indicator based upon its relative performance.

Wylie ISD

Indicator #16

The standard for an administrative cost ratio in State Law for Wylie ISD is 11.05%. The actual administrative cost ratio for Wylie ISD is 5.94%


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 we exceed the cap for districts of our size?


Points5

Wylie ISD

Indicator #17

The ratio of students (11,305) to teachers (778) was 14.517, which is within the TEA recommended range.


Was the Ratio of Students to Teachers within the ranges shown below according to district size?

This indicator measures our pupil-teacher ratio to ensure that it is within TEArecommended ranges for district’s of our student population range. Districts with a student population greater than 10,000 should have no more than 22 students per teacher and no fewer that 13.5 students per teacher. A district earns up to five points under this indicator based upon its relative performance.


Points5

Wylie ISD

Indicator #18

The ratio of Students (11,305) to Total Staff (1,537) was 7.3532, which is within the TEA recommended range.


Was the Ratio of Students to Total Staff within the ranges shown below according to district size?

This indicator measures our pupil-staff ratio to ensure that it is within TEA-recommended ranges for district’s of our student population range. Districts with a student greater than 10,000 should have no more than 14 students per staff member and no fewer than 7 students per district employee. A district earns up to five points under this indicator based upon its relative performance.


Points5

Wylie ISD

Indicator #19

Total Fund Balance was 59.9298 percent of the Optimum Fund Balance calculated in the Annual Financial Report.


Was the Total Fund Balance in the General Fund more than 50 percent andless than 150 percent of Optimum according to the Fund Balance and Cash Flow Calculation Worksheet in the Annual Financial Report?

The district’s audit provides an optimum General Fund “Fund Balance” for the district. District’s should have no less than one-half and no more than one and one-half times this amount in Fund Balance, counting both reserved and unreserved fund balances. A district earns up to five points under this indicator based upon its relative performance.


Points5

Wylie ISD

Indicator #20

Total Revenues exceeded Operating Expenditures in the General Fund by $3,707,421 as of June 30, 2009.


Was the decrease in Undesignated Unreserved Fund Balance less than 20 percent over two Fiscal Years? (If 1.5 times Optimum Fund balance is less than total Fund Balance in General Fund or if Total Revenues exceeded Operating Expenditures in the General Fund, then the district receives 5 points.)

Are we “feeding off of our Fund Balance” to pay for salaries or other district operating expenses? This indicator notes rapid decreases in our undesignated Fund Balance (those dollars not designated as a “land fund” or “construction fund”) or emergency fund. A district earns up to five points under this indicator based upon its relative performance.


Points5

Wylie ISD

Indicator #21

The aggregate total of Cash and Investments in the General Fund was $19,654,516 as of June 30, 2009.


Was the Aggregate Total of Cash and Investments in the General Fund more than $0?

Does our district have cash in the bank, and/or investments?


Points5

Wylie ISD

Indicator #22

Investment earnings in all funds were $22 per student for the year ended June 30, 2009.


Were Investment Earnings in all funds (excluding Debt Service Fund and Capital Projects Fund) more than $20 per student?

Are we using our cash or reserve fund (Fund Balance) monies wisely? A district earns up to five points under this indicator based upon its relative performance.


Points5

Wylie ISD


Reporting requirements for the financial management report.

Per Title 19 Texas Administrative Code Chapter 109, Budgeting, Accounting, and Auditing, Subchapter AA, Commissioner’s Rules Concerning Financial Rating System, five (5) disclosures are presented in the School FIRST financial management report.

Wylie ISD

DISCLOSURES


The school district is to provide a copy of the superintendent’s employment contract that is effective on the date of the Schools FIRST hearing in calendar year 2010. In lieu of publication in the Schools FIRST financial management report, the school district may chose to publish the superintendent’s employment contract on the school district’s internet site. If published on the internet, the contract is to remain accessible for twelve months.

Wylie ISD

Disclosure #1

Superintendent’s Employment Contract

The superintendent’s contract is posted on the Wylie ISD internet site at www.wylieisd.net.


Wylie ISD

Disclosure #2

Reimbursements Received by the Superintendent and Board Members for Fiscal Year 2009

For the Twelve-Month PeriodEnded June 30, 2009

Board MembersSuperintendent Ralph Susan Ronni Stacie Sue Sam Barbara Lance

Description of Reimbursements Dr. John Fuller James Shuler Fetzer Gooch Nicklas Satterwhite Goss GoffMeals 561.79$ -$ -$ 62.65$ -$ -$ -$ -$ -$ Lodging 3,411.96 1,242.65 621.32 392.06 621.33 1,242.65 - - 1,058.44 Transportation 1,570.74 271.90 271.90 206.56 271.90 468.88 - - 271.90 Motor Fuel - - - - - - - - - Other 2,224.00 950.00 950.00 610.00 975.00 1,235.00 285.00 325.00 1,460.00 Total 7,768.49$ 2,464.55$ 1,843.22$ 1,271.27$ 1,868.23$ 2,946.53$ 285.00$ 325.00$ 2,790.34$

Note - The spirit of the rule is to capture all "reimbursements" for fiscal year 2009, regardless of the manner of payment, including direct pay, credit card, cash, and purchase order. Reimbursements to be reported per category include:Meals - Meals consumed off of the school district's premises, and in-district meals at area restaurants (excludes catered meals for board meetings).Lodging - Hotel charges.Transportation - Airfare, car rental (can include fuel on rental), taxis, mileage reimbursements, leased cars, parking and tolls.Motor fuel - Gasoline.Other - Registration fees, telephone/cell phone, internet service, fax machine, and other reimbursements (or on-behalf of) to the superintendent and board member not defined above.


Wylie ISD

Disclosure #3

Outside Compensation and/or Fees Received by the Superintendent for Professional Consulting and/or Other Personal Services

For the Twelve-Month PeriodEnded June 30, 2009Name(s) of Entity(ies) Amount Received

None None

Note - Compensation does not include business revenues generated from a family business (farming, ranching, etc.) that has norelation to school district business.


Wylie ISD

Disclosure #4

Gifts Received by the Executive Officer(s) and Board members (and First Degree Relatives, if any) in Fiscal Year 2009


Board MembersRalph Susan Ronni Stacie Sue Sam Barbara Lance James Shuler Fetzer Gooch Nicklas Satterwhite Goss Goff

Amounts -$ -$ -$ -$ -$ -$ -$ -$

Note - An executive officer is defined as the superintendent, unless the board of trustees or the district administration names additional staffunder this classification. Gifts received by first degree relatives, if any, will be reported under the applicable school official.


Wylie ISD

Disclosure #5

Business Transactions Between School District and Board Members for Fiscal Year 2009


Board MembersRalph Susan Ronni Stacie Sue Sam Barbara Lance James Shuler Fetzer Gooch Nicklas Satterwhite Goss Goff

Amounts -$ -$ -$ -$ -$ -$ -$ -$

Note - The summary amounts reported under this disclosure are not to duplicate the items reported in the summary schedule of reimbursements received by board members.

financial management report financial integrity rating system of texas 2010 school first rating...

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