[B. CALL TO ORDER]
[00:00:04]
GOOD EVENING. IT IS 5:30 ON THURSDAY, OCTOBER THE 19TH, 2023.
I HEREBY CALL THE ROUND ROCK INDEPENDENT SCHOOL DISTRICT BOARD OF TRUSTEES PUBLIC HEARING ON ROUND ROCK ISD'S 2022-2023 SCHOOL FINANCIAL INTEGRITY RATING SYSTEM OF TEXAS, ALSO CALLED THE FIRST RATING TO ORDER TONIGHT IN ATTENDANCE, WE HAVE TRUSTEE ZARATE, WEIR, LANDRUM, HARRISON AND MARKHUM.
TRUSTEES BONE AND WESTON ARE ABSENT.
SO WE'LL BE SWITCHING IN BETWEEN SO.
ALL RIGHT. READY? ALL RIGHT. WE DO NOT HAVE ANY PUBLIC SPEAKERS FOR TONIGHT'S PUBLIC HEARING, SO I WILL TURN IT OVER TO DR.
[E. PUBLIC HEARING: 2022-2023 SCHOOL FINANCIAL INTEGRITY RATING SYSTEM OF TEXAS (FIRST) RATING]
AZAIEZ TO INTRODUCE ITEM E1 PUBLIC HEARING ON THE 2022-2023 SCHOOL FINANCIAL INTEGRITY RATING SYSTEM OF TEXAS.GOOD EVENING, PRESIDENT LANDRUM, BOARD MEMBERS AND COMMUNITY MEMBERS AND STAFF.
SO IT'S THAT TIME OF THE YEAR.
SO WE RECEIVED OUR FIRST THE RATING FOR THE FIRST.
AS YOU KNOW, WE RECEIVED THAT ONCE A YEAR AND WE RECEIVE THAT BASED ON TEA REQUIREMENTS.
AND SO IT'S OUR HONOR TO SHARE WITH YOU THAT WE AGAIN, OUR DISTRICT RECEIVED AN A THIS YEAR.
AND WITH US IS OUR CFO DENNIS COVINGTON.
MR. COVINGTON WILL BE TAKING YOU OVER ALL THE ALL THE I GUESS THE RATINGS.
THANK YOU. GOOD EVENING, PRESIDENT LANDRUM AND BOARD OF TRUSTEES AND SUPERINTENDENT, AS YOU SAID TONIGHT, WE'RE HERE TO PRESENT THE RESULTS OF THE 22-23 FIRST REPORT ON FINANCIAL MANAGEMENT BASED ON THE 21-22 FINANCIALS.
THE RATING IS BASED ON STAFF, STUDENT AND FINANCIAL DATA REPORTED TO TEA FOR THE FISCAL YEAR PRIOR TO THE RATING, SO THE 22-23 RATING IS BASED ON THE 21-22 FISCAL YEAR DATA.
DISTRICTS ARE RATED ON INDICATORS OUTLINED BY THE RULE OF COMMISSIONER ON EDUCATION.
THE SCORING SYSTEM IS BROKEN OUT INTO THREE MAJOR INDICATORS.
CRITICAL INDICATORS ARE THOSE THAT ARE PASS OR FAIL, YES OR NO INDICATORS.
SECTION A DEALS WITH THE CRITICAL INDICATORS.
THESE ARE THE PASS OR FAIL, YES OR NO.
IF THE DISTRICT WOULD FAIL OR RECEIVE A NO ON ANY OF THE CATEGORIES 1-4, THE DISTRICT WOULD AUTOMATICALLY RECEIVE AN L FOR SUBSTANDARD ACHIEVEMENT. SECTION B IS THE REMAINING OF THE INDICATORS, WHICH ARE INDICATORS 5-20, AND THAT'S DETERMINED BY RATING BY APPLICABLE NUMBER OF POINTS.
AND AS DR. AZAIEZ SAID, WE RECEIVED A A BECAUSE WE RECEIVED 98 OF THE 100 POINTS.
IF A SCHOOL WAS TO RECEIVE A 70, IT WOULD RECEIVE AN F RATING FOR SUBSTANDARD ACHIEVEMENT.
SO LET'S GO THROUGH THE INDICATORS.
[INAUDIBLE] WAS SUBMITTED TO TEA BY THE DEADLINE.
IT WAS DUE ON 12/27 TEA RECEIVED IT ON 11/18.
WAS THERE AN UNMODIFIED OPINION IN THE ANNUAL FINANCIAL REPORT ON THE FINANCIAL STATEMENTS AS A WHOLE? ROUND ROCK RECEIVED AN UNMODIFIED OR CLEAN OPINION.
[00:05:01]
INDICATOR FOUR, DID THE DISTRICT MAKE TIMELY PAYMENTS TO THE TEACHER RETIREMENT SYSTEM, THE TEXAS WORKFORCE COMMISSION AND INTERNAL REVENUE SERVICE, AND OTHER GOVERNMENT AGENCIES. ALL REPORTS WERE SUBMITTED TIMELY TO THE GOVERNMENTAL ENTITIES.THIS INDICATOR IS NOT BEING SCORED.
AND BACK THEN IT WAS A YES FOR THE DISTRICT, BUT IT IS NO LONGER BEING SCORED.
OR DID THE CURRENT YEARS ASSIGNED AND UNASSIGNED FUND BALANCE EXCEED 75 DAYS OF OPERATIONAL EXPENDITURES? SO WE LOOKED AT THE ASSIGNED AND UNASSIGNED FUND BALANCE, AND THE TOTAL WAS [INAUDIBLE] $166.8 MILLION.
AND OUR 75 DAYS OF OPERATING EXPENSES IS $101.7 MILLION.
SO OUR ASSIGNED AND UNASSIGNED FUND BALANCE EXCEEDED THE 75 DAYS.
SOME MIGHT ASK WHAT IS THE ASSIGNED AND UNASSIGNED FUND BALANCE? ASSIGNED MEANS THAT THOSE DOLLARS ARE COMMITTED FOR A SPECIFIC PURPOSE.
AND LAST YEAR, AND THIS YEAR, $23 MILLION OF THE $166 IS ASSIGNED AND $143 IS UNASSIGNED.
UNASSIGNED MEANS THERE IS NO DESIGNATED PURPOSE FOR THE MONEY.
SO AS A RESULT, WE PASSED INDICATOR SIX.
INDICATOR SEVEN WAS THE NUMBER OF DAYS OF CASH ON HAND AND CURRENT INVESTMENTS IN THE GENERAL FUND FOR THE SCHOOL DISTRICT SUFFICIENT TO COVER OPERATING EXPENDITURES, EXCLUDING FACILITIES, ACQUISITION AND CONSTRUCTION.
OUR CASH AND EQUIVALENTS WAS A $244.6 MILLION.
CURRENT INVESTMENTS $20 MILLION.
TOTAL EXPENDITURES WAS $499 MILLION, AND THE FACILITY ACQUISITION CONSTRUCTION WAS $4.4 MILLION.
AND SO THE NUMBER OF DAYS THAT WE HAD CASH ON HAND WAS 195.
CURRENT ASSETS WERE $632.6 MILLION AND THE CURRENT LIABILITIES, THIS WAS THE $234.2 WITH THE RATIO OF 2.7, AND THAT RATIO EARNED US EIGHT OF THE TEN POINTS.
DID THE SCHOOL DISTRICT GENERAL FUND REVENUE EQUAL OR EXCEED EXPENDITURES? IF NOT, WHAT THE SCHOOL DISTRICT NUMBER OF DAYS OF CASH ON HAND GREATER THAN OR EQUAL TO 60 DAYS.
AS A RESULT, THE DISTRICT RECEIVED TEN OF THE TEN POINTS.
THIS INDICATOR WAS NOT SCORED FOR THIS YEAR, AND IT HAS NOT BEEN SCORED SINCE THE 2020 -2021 REPORT, AND IT MEASURED THE BUDGET REVENUE COMPARED TO THE ACTUAL REVENUE AND BACK IN 2020-21 THE DISTRICT DID RECEIVE TEN OF THE TEN RESPECTIVE POINTS.
AND AS A RESULT, WE RECEIVE TEN OF THE TEN POINTS.
WAS THE DEBT PER $100 OF ASSESSED PROPERTY VALUE RATIO, SUFFICIENT TO SUPPORT FUTURE DEBT REPAYMENT.
SO THE FORMULA TO CALCULATE THIS IS SORT OF CUMBERSOME.
SO YOU TAKE THE TOTAL LOCAL AND IMMEDIATE SOURCES OF REVENUE.
DIVIDE IT BY YOUR TOTAL REVENUE MULTIPLIED BY YOUR LONG TERM LIABILITIES TIMES 100 DIVIDED BY YOUR ASSESSED PROPERTY VALUE TO GET THE RATIO OF 2.05, OUR 2.05 RATIO MEETS THE REQUIREMENT OF LESS THAN FOUR FOR MAXIMUM REPORTS OF TEN OF TEN.
OUR DISTRICT ADMINISTRATIVE COSTS RATIO IS 0.0558.
DISTRICT ADMINISTRATIVE RATIO WAS SIGNIFICANTLY BELOW THE THRESHOLD RATIO OF 0.855 FOR A ADA OF 10,000 STUDENTS OR MORE, RESULT TEN OF TEN POINTS. INDICATOR 14.
THIS INDICATOR HAS NOT BEEN SCORED THIS YEAR.
THIS IS THE FIRST YEAR THAT IT WAS NOT WAS SCORED.
[00:10:08]
INDICATOR 15.THIS ONE ALSO HAS NOT BEEN SCORED SINCE THE 2021 REPORT, AND IT MEASURED THE ACTUAL ADA TO THE BIENNIAL PROJECTED ADA, AND THE LAST TIME IT WAS SCORED, THE DISTRICT RECEIVED FIVE OF THE FIVE POINTS.
INDICATOR 16 DID THE COMPARISON OF PUBLIC EDUCATION INFORMATION MANAGEMENT SYSTEM PEIMS DATA TO LIKE INFORMATION IN THE SCHOOL DISTRICTS AFR RESULT IN A TOTAL VARIANCE OF LESS THAN 3% OF ALL EXPENDITURES BY FUNCTION.
AND AS YOU CAN SEE, BASED ON THE FORMULA OF THE SUM OF THE DIFFERENCE AND DIVIDED BY ALL EXPENDITURES, THE RATIO IS 0.0033, AND IT MEETS THE REQUIREMENT OF LESS THAN 0.03 TO PASS THIS TEST RESULT, THE DISTRICT PASSED.
INDICATOR 17 DID THE EXTERNAL INDEPENDENT AUDITOR REPORT THE AFR WAS FREE OF ANY INSTANCES OF MATERIAL WEAKNESSES IN INTERNAL CONTROLS OVER FINANCIAL REPORTING AND COMPLIANCE FOR LOCAL, STATE OR FEDERAL FUNDS.
THERE WERE NO MATERIAL WEAKNESSES REPORTED AND AS A RESULT, DISTRICT PASSED.
DID THE EXTERNAL INDEPENDENT AUDITOR INDICATE THE AFR WAS FREE OF ANY INSTANCES OF MATERIAL NONCOMPLIANCE FOR GRANTS, CONTRACTS, AND LAWS RELATED TO LOCAL, STATE, OR FEDERAL FUNDS.
NO INSTANCES OF MATERIAL NONCOMPLIANCE WERE REPORTED.
AS A RESULT, THE DISTRICT RECEIVED TEN OF TEN POINTS.
DID THE SCHOOL DISTRICT POST THE REQUIRED FINANCIAL INFORMATION ON ITS WEBSITE IN ACCORDANCE WITH GOVERNMENTAL CODE, LOCAL GOVERNMENT CODE, TEXAS EDUCATION CODE, TEXAS ADMINISTRATIVE CODE, AND OTHER STATUTES, LAWS AND RULES THAT WERE IN EFFECT AT THE SCHOOL DISTRICT'S FISCAL YEAR END.
AND INDICATOR 20, DID SCHOOL BOARD MEMBERS DISCUSS THE DISTRICT'S PROPERTY VALUES AT A BOARD MEETING WITHIN 120 DAYS BEFORE THE DISTRICT ADOPTED THIS BUDGET? AND THE BOARD DISCUSSED THE DISTRICT PROPERTY VALUE AT A BOARD MEETING WITHIN THOSE 120 DAYS BEFORE THE DISTRICT ADOPTED THIS BUDGET, AND AS A RESULT, THE DISTRICT PASSED.
IN ADDITION TO THE FIRST REPORT, THERE ARE SOME ADDITIONAL REPORTING REQUIREMENTS.
THE OUTSIDE COMPENSATION RECEIVED BY THE SUPERINTENDENT FOR THE 21-22 SCHOOL YEAR, THE SUPERINTENDENT DID NOT RECEIVE PAYMENT OF FOR CONSULTING OR OTHER PERSONAL SERVICES, AND SUPERINTENDENT AND BOARD GIFTS.
THE SUPERINTENDENT AND BOARD MEMBERS DID NOT RECEIVE ANY GIFTS WITH ECONOMIC VALUE OF $250 OR MORE.
THIS CHART SHOWS THE BOARD AND THE SUPERINTENDENTS TRAVEL.
AND AS YOU CAN SEE BY EACH PERSON'S NAME, YOU LIST THE HOTEL MILEAGE, PARKING, TRANSPORTATION, FLIGHT REGISTRATION, MEALS, OTHER GIFTS, REIMBURSEMENTS FOR A TOTAL AND AS A TOTAL BOARD MEMBERS AND THE SUPERINTENDENT, AS FAR AS TRAVEL, SPENT $28.7 THOUSAND.
AND IF YOU WERE TO CLICK ON THAT LINK, IT WILL TAKE YOU TO THE SUPERINTENDENTS CURRENT CONTRACT.
MADAM CHAIR, THAT IS A 22-23 FINANCIAL INTEGRITY RATING SYSTEM OF TEXAS ANNUAL FINANCIAL MANAGEMENT REPORT BASED ON THE 2021-22 FINANCIALS.
AND THE SCHOOL DISTRICT IS PROUD TO SAY WE RECEIVED AN A FOR SUPERIOR.
ANY QUESTIONS? WONDERFUL. I HAVE A LIGHT ON FROM TRUSTEE WEIR.
I WAS JUST WONDERING, MR. COVINGTON ON 16, 17 AND 18 AFR IF YOU COULD JUST LET EVERYONE KNOW WHAT THAT ACRONYM STANDS FOR.
THAT'S THE ANNUAL FINANCIAL REPORT THAT THE OUTSIDE AUDITOR COMES IN AND DO EVERY YEAR.
I DON'T HAVE ANY OTHER LIGHTS ON, BUT I DO HAVE ONE QUESTION MYSELF.
DO PRIVATE SCHOOLS HAVE TO GO THROUGH THIS FIRST RATING PROCESS? NO, NO THEY DON'T.
WHAT KIND OF CHARTERS DON'T EITHER.
WHAT KIND OF TRANSPARENCY DO THEY HAVE FOR THEIR FINANCES?
[00:15:03]
THAT I DON'T KNOW.THEY'RE NOT SUBJECT TO THE SAME [INAUDIBLE] SAME AS WE ARE AS A PUBLIC SCHOOL.
ALL RIGHT. THANK YOU VERY MUCH.
I DON'T HAVE ANY OTHER LIGHTS ON.
I DO HAVE ONE ADDITIONAL PUBLIC SPEAKER.
AS A REMINDER, IN PUBLIC HEARINGS, YOU CAN SIGN UP ANY TIME THAT THE PUBLIC HEARING IS GOING ON.
SO I WILL READ OUR PUBLIC HEARING SCRIPT.
THE BOARD REQUESTS THAT COMMENTS, WHETHER POSITIVE OR NEGATIVE, BE COURTEOUS AND RESPECTFUL.
AS A SECOND REMINDER, THE BOARD ADOPTED AN ANTI HATE RESOLUTION ON JANUARY 20TH, 2022, WHERE THE BOARD REAFFIRMED ITS COMMITMENT TO THE WELL-BEING AND SAFETY OF ALL PEOPLE, REGARDLESS OF RACE, COLOR, NATIONAL ORIGIN, RELIGION, SEX, GENDER IDENTITY, GENDER EXPRESSION, SEXUAL ORIENTATION, DISABILITY, AGE, OR POLITICAL BELIEFS, AND STANDS AGAINST SPEECH THAT INCITES HATRED AND VIOLENCE TOWARDS ANY PERSON.
PLEASE NOTE THAT WHILE THE PUBLIC DOES HAVE THE RIGHT TO SPEAK, THAT RIGHT IS NOT UNLIMITED.
PER TEXAS PENAL CODE 38.13, 42.01, 42.02 AND 42.05, AND TEXAS EDUCATION CODE 37.105.
NO AUDIENCE MEMBER OR SPEAKER WILL BE PERMITTED TO ENGAGE IN ANY CONDUCT THAT IS DISRUPTIVE OR THREATENING TOWARD ANY SPEAKER OR OTHER PERSON, OR TO VIOLATE THE PRIVACY RIGHTS OF ANOTHER PERSON.
THE BOARD SHALL NOT TOLERATE DISRUPTION OF THE MEETING BY MEMBERS OF THE AUDIENCE.
IF, AFTER AT LEAST ONE INDIVIDUAL WARNING FROM THE PRESIDING OFFICER, AN INDIVIDUAL CONTINUES TO DISRUPT THE MEETING BY HIS OR HER WORDS OR ACTIONS, THE PRESIDING OFFICER WILL REQUEST ASSISTANCE FROM LAW ENFORCEMENT OFFICIALS TO HAVE THE INDIVIDUAL REMOVED FROM THE MEETING.
THEREFORE, BOARD MEMBERS MAY NOT DISCUSS THE COMMENTS OF THE SPEAKER.
SPEAKERS WILL BE GIVEN TWO MINUTES TO ADDRESS THE BOARD.
AND YOU DO LIVE IN THE DISTRICT.
HELLO BOARD MEMBERS. THANK YOU.
CONGRATULATIONS 19 OUT OF 20 YEARS A GOOD JOB ON THE FINANCES.
I APPRECIATE THE BOARD MEMBERS WHO ARE HERE.
CONSPICUOUSLY ABSENT BOARD MEMBERS WESTON, BONE WISH THEY WERE HERE TO HEAR THIS AS WELL.
THIS SYSTEM IS DESIGNED TO MAXIMIZE ALLOCATION POSSIBLE FOR DIRECT INSTRUCTIONAL PURPOSES.
WE HAVE HAD A RISING TIDE WITH PEOPLE MOVING INTO THE ROUND ROCK AREA.
I THINK IT SHOULD BE NOTED THAT THAT MAY CHANGE, BUT ALSO FEET MAY LEAVE.
SCHOOL VOUCHERS, WHICH ARE ON THE AGENDA IN THE LEGISLATURE MAY MEAN THAT DOLLARS LEAVE OUT OF HERE AND FOOTSTEPS OF STUDENTS LEAVE THE SCHOOL DISTRICT. THAT MEANS THAT IT WOULD BE UNWISE INVESTMENT TO HAVE CERTAIN SCHOOLS THAT ARE SITTING THERE VACANT IF A CERTAIN NUMBER OF STUDENTS LEAVE.
SO I THINK SCHOOL VOUCHERS ARE A CLEAR AND PRESENT DANGER TO OUR CURRENT ISD.
UNUSED BOOKS WOULD BE A WASTE.
AND BANNING BOOKS, I THINK, IS A VERY BAD THING.
AND HAVING BOOKS BANNED IN OUR SYSTEM WOULD BE A WASTE OF FINANCIAL RESOURCES.
THAT WOULD BE A WASTE, AND WE DON'T WANT TO WASTE OUR FINANCIAL RESOURCES.
SO NOT USING BOOKS THAT WE'VE ALREADY PURCHASED AND BANNING THEM, PUTTING THEM ON THE SHELF WHERE THEY ARE NOT ACCESSIBLE TO OUR STUDENTS TO LEARN WOULD BE A BAD IDEA AND A FINANCIAL WASTE UNDER THIS.
SO WE ALSO DO NOT WANT TO WASTE RESOURCES OF THE ISD ON LAWYERS IN FIGHTING AMONGST THE BOARD AND OTHER THINGS 30 SECONDS WASTE RESOURCES OF THE BOARD.
PLEASE, LET'S NOT HAVE INFIGHTING.
LET'S DO THE THINGS WE CAN DO FOR THE KIDS.
SHORT TERM DEBT EIGHT OUT OF TEN.
THAT'S A CONCERN IF WE LOSE KIDS TO THE VOUCHER SYSTEM.
OTHERWISE GREAT JOB AND THANK YOU ALL FOR BEING HERE.
DO WE HAVE ANY OTHER SPEAKERS? ALL RIGHT. THAT'S IT.
SEEING NOTHING ELSE ON THE AGENDA AND NO LIGHTS FROM ANY SPEAKERS.
IT IS 5:49 AND THIS MEETING IS ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.