[00:00:01]
THE PRESENTATION AND THE QUESTIONS ASKED. THANK YOU. THANK YOU SERGEANT. THE TIME IS
[1. Call to Order]
5:01 P.M. AND THIS MEETING IS HEREBY CALLED TO ORDER. WE HAVE THE PRESENCE OF A QUORUM ATTENDING IN PERSON. AND NOTICE OF THIS MEETING HAS BEEN POSTED ONLINE AND AT THE FORT BEND ISD ADMINISTRATION BUILDING FOR AT LEAST THREE BUSINESS DAYS. WE HAVE NO SPEAKERS SIGNED UP FOR[3.A. 2024-2025 FIRST Rating]
PUBLIC COMMENT FOR THIS PORTION OF OUR MEETINGS THIS EVENING. AND THE ONLY ITEM ON OUR AGENDA IS THE 20 2425 FIRST RATING PRESENTATION. WE'LL TURN IT OVER TO YOU, DOCTOR SMITH. YES, MA'AM. THANK YOU, MADAM PRESIDENT. GOOD EVENING EVERYONE. AS INDICATED, WE ARE REVIEWING THE FIRST REPORT. I WILL TURN IT OVER TO BRIAN. GWEN. AND THEN HE'S GOING TO TURN IT OVER TO MISS KELLY SLACK. AND SHE'LL BE PRESENTING THE PRESENTATION TONIGHT. AND THANK YOU, DOCTOR SMITH. AS HE MENTIONED THIS EVENING, WE ARE PRESENTING POSITIVE FINANCIAL MANAGEMENT NEWS FOR THE DISTRICT. MISS KELLY IS OUR EXECUTIVE DIRECTOR OF FINANCE WILL PRESENT THAT. AND AS SHE MAKES HER WAY UP, I JUST WANT TO POINT OUT, MADAM PRESIDENT, TONIGHT IS CYBER MONDAY, AND WE'RE SITTING HERE MISSING DEALS. WE'RE MISSING DEALS. SO JUST WANT EVERYONE TO BE AWARE OF THAT AS WE GO THROUGH THIS. GOOD AFTERNOON, MADAM PRESIDENT.BOARD MEMBERS AND DOCTOR SMITH, I'M GLAD TO PRESENT THE FIRST READING THIS EVENING. I'LL PROVIDE AN OVERVIEW OF FIRST AND THEN DISCUSS THE DISTRICT'S PERFORMANCE, AND THEN REVIEW OTHER REQUIRED DISCLOSURES AS PART OF FIRST. FIRST IS AN ACRONYM THAT STANDS FOR THE FINANCIAL INTEGRITY RATING SYSTEM OF TEXAS, AND IT WAS DEVELOPED BY TI TO MEASURE THE FINANCIAL STRENGTH OF SCHOOL DISTRICTS. THE RESULTS OF FIRST SPEAK TO THE QUALITY PERFORMANCE IN MANAGING AND ALLOCATING THE DISTRICT'S RESOURCES. THE COMMISSIONERS DEVELOPED 21 INDICATORS THAT ARE SCORED IN THE MATRIX. ON THE SLIDE SHOWS THAT IF A DISTRICT RECEIVES 90 TO 100 POINTS, THE DISTRICT WOULD EARN A SUPERIOR OR A RATING. WE'RE REVIEWING THE 2425 FIRST RATING, BUT THAT RATING IS USED USING 2324 FINANCIAL INFORMATION, SO IT LAGS A YEAR. SO THE ANNUAL REPORT THAT YOU APPROVED LAST MONTH WILL NOT BE USED UNTIL NEXT YEAR'S FIRST RATING. THERE ARE DIFFERENT TYPES OF INDICATORS. SOME ARE CONSIDERED CRITICAL. AND IF THE DISTRICT DOES NOT RECEIVE POSITIVE RESPONSES, THE DISTRICT WOULD FAIL FIRST. SOME INDICATORS ARE CONSIDERED SEALING INDICATORS, AND THAT COULD LIMIT A DISTRICT'S MAXIMUM SCORE IT COULD RECEIVE ON FIRST, DEPENDING ON HOW THAT SCORE FOR THAT SEALING INDICATOR WAS ARRIVED. AND I'LL POINT OUT THOSE TYPES OF INDICATORS AS WE GO THROUGH THE DISTRICT'S PERFORMANCE. OTHER INDICATORS COULD EARN A MAXIMUM OF 5 OR 10 POINTS, DEPENDING ON THE INDICATOR. I'M PLEASED TO REPORT THAT THE DISTRICT RECEIVED A SCORE OF 98 POINTS FOR THE FIRST RATING. IT EARNED IT A SUPERIOR OR A RATING THAT'S THE HIGHEST RATING THAT CAN BE ACHIEVED. THE EDUCATION CODE DOES REQUIRE THE PUBLIC HEARING, AND IT DOES REQUIRE US TO GO THROUGH ALL OF THOSE INDICATORS. AND SO I'LL WALK YOU THROUGH THE DISTRICT'S PERFORMANCE. THE FIRST FOUR INDICATORS ARE ALL CRITICAL INDICATORS, AND THE DISTRICT RECEIVED POSITIVE RESPONSES FOR EACH OF THOSE INDICATORS. THEY REVIEW THE DISTRICT RECEIVING AN UNMODIFIED OR CLEAN OPINION ON THE ANNUAL FINANCIAL REPORT, FILING THAT REPORT TO TO ON A TIMELY BASIS AND MAKING TIMELY PAYMENTS. THESE NEXT SET OF INDICATORS IF YOU SEE THE INDICATOR NUMBER IN BOLD RED ON THE LEFT, THAT INDICATES THAT IT IS A SEALING INDICATOR. SO INDICATORS FIVE AND SIX ARE SEALING INDICATORS AND COULD BE RECEIVING A POSITIVE OR NEGATIVE RESPONSE. AND THE DISTRICT RECEIVED POSITIVE RESPONSES FOR THOSE TWO INDICATORS. FOR INDICATOR FIVE AND THE NET POSITION BEING GREATER THAN ZERO, THE 2324 ANNUAL REPORT DID HAVE A NEGATIVE NET POSITION, BUT FOR THIS INDICATOR, T ALLOWS THE DISTRICT TO ADD BACK THE PENSION AND OTHER POST-EMPLOYMENT BENEFITS LIABILITY AMOUNTS WHEN CALCULATING THAT INDICATOR. AND ONCE THAT WAS DONE, THE DISTRICT HAD A POSITIVE NET POSITION FOR INDICATOR SIX. IT LOOKS AT THE CHANGE IN ASSIGNED AND UNASSIGNED FUND BALANCE OVER A THREE YEAR PERIOD. AND YOU RECALL WHEN WE WERE REVIEWING THE ANNUAL REPORT LAST MONTH, THAT THE UNASSIGNED FUND BALANCE IS WHERE THE DISTRICT TRIES TO MAINTAIN TWO MONTHS OF FUND BALANCE, AND THEN THE ASSIGNED FUND BALANCE IS WHERE WE USUALLY RESERVE THE OUTSTANDING PURCHASE ORDERS AT YEAR END THAT ARE NOT RECEIVED. THAT COULD ROLL INTO THE NEXT FISCAL YEAR. AS A MATTER OF FACT, IN THE AGENDA ITEM LATER THIS EVENING, WE'LL HAVE A BUDGET AMENDMENT IN ORDER TO PROVIDE BUDGET FOR THOSE PURCHASE ORDERS THAT ROLLED FROM LAST YEAR TO THIS YEAR AND
[00:05:03]
TO RELIEVE THAT ASSIGNED FUND BALANCE. FOR INDICATOR NUMBER SEVEN. THE DISTRICT RECEIVED THE MAXIMUM NUMBER OF POINTS FOR CASH ON HAND, AND FOR INDICATOR EIGHT, THE DISTRICT RECEIVED EIGHT OF TEN POINTS FOR THE CURRENT ASSET TO CURRENT LIABILITY RATIO. FOR INDICATORS NINE THROUGH 12, THE DISTRICT RECEIVED THE MAXIMUM NUMBER OF POINTS FOR EACH INDICATOR TO DIDN'T EVALUATE INDICATOR TEN. THAT COMPARES BUDGETED REVENUES TO ACTUAL REVENUES OVER A THREE YEAR PERIOD. THEY GAVE ALL DISTRICT THE MAXIMUM NUMBER OF SCORE FOR THAT INDICATOR. INDICATOR NINE LOOKS AT WHETHER THE GENERAL FUND REVENUES EXCEEDED OR AT LEAST EQUALED THE EXPENDITURES, AND THEN INDICATORS 11 AND 12 LOOK AT THE WHETHER TOTAL ASSETS WERE SUFFICIENT FOR LONG TERM SOLVENCY, AND WHETHER THE PROPERTY VALUES WERE SUFFICIENT TO MEET FUTURE DEBT PAYMENTS. THE DISTRICT RECEIVED THE MAXIMUM NUMBER OF POINTS FOR THE ADMINISTRATIVE COST RATIO FOR A DISTRICT OUR SIZE, THE THRESHOLD TO RECEIVE THE MAXIMUM NUMBER OF SCORES WAS 0.0855, AND THE DISTRICT'S RATIO WAS 0.0719, WHICH IS WELL BELOW THE THRESHOLD. IN THE WHITLEY PIN AUDIT PRESENTATION LAST MONTH, YOU MAY RECALL THAT THEY SHOWED A GRAPH THAT SHOWED GENERAL FUND EXPENDITURES AND THAT THE GENERAL ADMINISTRATIVE EXPENSES WERE 3% OF TOTAL GENERAL FUND EXPENSES. AND THAT WAS A ROUNDED NUMBER, AND IT WAS ACTUALLY 2.6%. AND SO THAT KIND OF GOES IN LINE WITH THIS ADMINISTRATIVE COST RATIO. AND THEN THE GIBSON COST SAVINGS AUDIT REVIEWED THE DISTRICT'S EXPENDITURES AND FOUND THAT WE WERE FAIRLY EFFICIENT IN THIS AREA TO THE ONE RECOMMENDATION THEY DID HAVE CENTERED AROUND THE MAXIMIZING THE INDIRECT COST RATE FROM THE CHILD NUTRITION FUND. AND WE DID IMPLEMENT THAT THAT INDIRECT COST RATIO FOR THE CHILD NUTRITION FUND. BUT IT DOESN'T REALLY IMPACT THE ADMINISTRATIVE COST RATIO. IT JUST MAXIMIZES THE AMOUNT OF REVENUE THAT WE WOULD RECEIVE IN GENERAL FUND. FOR INDICATOR 14, THE DISTRICT RECEIVED THE MAXIMUM NUMBER OF POINTS FOR NOT HAVING A 15% DECLINE IN STUDENT STAFF RATIO, AND THEN INDICATOR 15. WE RECEIVED THE MAXIMUM NUMBER OF POINTS, FIVE POINTS FOR THAT INDICATOR, AND THAT REVIEWS THE DISTRICT'S AVERAGE DAILY ATTENDANCE COMPARED TO WHAT WE WOULD HAVE SUBMITTED TO TO AT THE BEGINNING OF THE BIENNIUM BEFORE THE LEGISLATURE STARTED.EVERY TWO YEARS, WE HAVE TO SUBMIT A PROJECTED ADA NUMBER TO TO, AND THEN THEY MEASURE THAT AGAINST ACTUAL ADA. INDICATOR 16 IS A CEILING INDICATOR, AND THAT COMPARES THE ANNUAL FINANCIAL INFORMATION THAT'S SUBMITTED TO T THROUGH THE TEAMS OR WHAT WE CALL THE PUBLIC EDUCATION INFORMATION MANAGEMENT SYSTEM. AND THAT'S A DATA UPLOAD FROM OUR ERP SYSTEM AND COMPARES IT TO THE ANNUAL REPORT THAT'S FILED. AND USUALLY THERE'S VARIANCES BECAUSE THAT MANUAL UPLOAD HAS TO HAVE ALL THE AMOUNTS TO THE NEAREST DOLLAR.
AND SO THERE'S ROUNDING DIFFERENCES. AND WE WERE WELL BELOW THAT 3% VARIANCE EARNING US A POSITIVE RESPONSE FOR THAT INDICATOR. INDICATOR 1718 AND 20 ARE CEILING INDICATORS. AND THE DISTRICT RECEIVED POSITIVE RESPONSES OR MAXIMUM POINTS FOR THOSE INDICATORS. THOSE INDICATORS REVIEW WHETHER THE ANNUAL AUDIT REPORT WAS FREE OF MATERIAL WEAKNESS FROM INTERNAL CONTROLS, FREE OF MATERIAL NONCOMPLIANCE WITH GRANTS AND CONTRACTS, AND WHETHER THE SCHOOL BOARD DISCUSSED PROPERTY VALUES BEFORE ADOPTING THE BUDGET INDICATOR 19, WE RECEIVED THE MAXIMUM NUMBER OF POINTS FOR THAT INDICATOR, FIVE FOR POSTING ALL REQUIRED FINANCIAL INFORMATION TO THE DISTRICT'S WEBSITE AS REQUIRED BY LAW. AND THEN THE LAST INDICATOR, INDICATOR 21. THE DISTRICT RECEIVED A POSITIVE RESPONSE FOR NOT HAVING AN ADJUSTED REPAYMENT PLAN WITH T FOR THE FOUNDATION SCHOOL PROGRAM. THAT'S THE MAIN STATE FUNDING PROGRAM THAT WE RECEIVE FUNDS FOR FROM THE DISTRICT. AS PART OF. FIRST, WE ARE REQUIRED TO REPORT REIMBURSEMENTS MADE TO THE SUPERINTENDENT AND TO ALL BOARD MEMBERS FOR THE FISCAL YEAR ENDING JUNE 30TH, 2024. THIS SLIDE SHOWS THOSE REIMBURSEMENTS AND THEY RELATE MAINLY TO TRAVEL, HOTEL TRANSPORTATION AND MEAL REIMBURSEMENTS. AND THERE WERE NO OTHER TRANSACTIONS TO REPORT FOR THE SUPERINTENDENT AND BOARD MEMBERS. AND WE WILL POST THIS PRESENTATION TO THE DISTRICT'S WEBSITE UNDER THE FINANCE UMBRELLA. LASTLY, WE ARE REQUIRED TO MAKE THE SUPERINTENDENT'S CONTRACT AVAILABLE, AND THAT CONTRACT IS AVAILABLE ON THE DISTRICT'S WEBSITE AT THIS URL. AND WITH THAT, I'D BE GLAD TO ANSWER ANY QUESTIONS ABOUT THE FIRST READING. THANK YOU. DO WE HAVE QUESTIONS OR COMMENTS FROM THE TRUSTEES? MISS HILLIKER, YOU ALL HEARD ME KIND OF YELL OUT EARLIER, BUT JUST
[00:10:09]
CONGRATULATIONS ON A JOB WELL DONE AND HAVING THAT RATING OF 98 THAT JUST SHOWS THAT WE ARE FISCAL RESPONSIBILITY HERE IN THE DISTRICT. AND SO I JUST WANT TO SAY THANK YOU. THANK YOU, MISS HILLIKER. ALL RIGHT. THANK YOU. DO WE HAVE ANY MEMBERS OF THE PUBLIC WHO WANT TO COMMENT FOLLOWING THE PRESENTATION? OKAY. HEARING NONE. MAY I HAVE A MOTION TO ADJOURN? I MOVE TO ADJOURN. SECOND. ALL RIGHT. THE TIME IS 5:12 P.M. AND WE ARE ADJOURNED.WE WILL BE BAC
* This transcript was compiled from uncorrected Closed Captioning.