[00:00:03]
[B. CALL TO ORDER]
INTEGRITY RATING SYSTEM OF TEXAS MEETING OR PUBLIC HEARING TO ORDER.LET'S STAND FOR THE PLEDGE. I PLEDGE ALLEGIANCE TO THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS. ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.
HONOR THE TEXAS FLAG. TEXAS. ONE STATE UNDER GOD.
INDIVISIBLE. BEFORE WE GET STARTED, I WANTED TO THANK THE WALSH MIDDLE SCHOOL BAND FOR PERFORMING FOR US BEFORE OUR MEETING. IT WAS AN AMAZING PERFORMANCE.
THEY ARE UNDER THE DIRECTION OF JENNIFER BERGERON AND STONE WANG.
AND WE DO HAVE A QUORUM PRESENT. ALL TRUSTEES ARE IN ATTENDANCE, WITH THE EXCEPTION OF PRESIDENT MARKUM, WHO WILL BE HERE LATER THIS EVENING. AND I DON'T THINK WE HAVE ANY PUBLIC COMMENT YET.
OKAY, SO NO PUBLIC COMMENT. SO WE WILL GO TO ITEM E.1, OUR PUBLIC HEARING.
[E. DISCUSSION ITEM]
DOCTOR AZAIEZ. THANK YOU. GOOD EVENING EVERYONE.GOOD EVENING EVERYONE. IT'S THAT TIME OF YEAR WHERE WE DO OUR ANNUAL PUBLIC HEARING REGARDING OUR FINANCIAL INTEGRITY RATING SYSTEM THAT THE STATE GIVES EVERY SCHOOL DISTRICT AN ANNUAL BASE.
SO WITHOUT ANY DELAY, I'M GOING TO LET OUR CFO, CEO DENNIS.
MR. COVINGTON TAKE US THROUGH THE PRESENTATION.
GOOD EVENING, MADAM CHAIR, BOARD MEMBERS AND SUPERINTENDENT, WE ARE HERE TODAY TO REVIEW THE FINANCIAL INTEGRITY RATING SYSTEM OF TEXAS, ALSO KNOWN AS THE FIRST REPORT FOR THE 2425 YEAR, BASED ON THE 23-24 FINANCIALS.
THE FIRST RATING SYSTEM WAS ADOPTED BY THE LEGISLATURE TO ACHIEVE THE PRIMARY GOAL OF QUALITY, PERFORMANCE AND THE MANAGEMENT OF SCHOOL DISTRICTS. FINANCIAL RESOURCES.
DISTRICTS ARE RATED ON INDICATORS OUTLINED BY RULES SET BY THE COMMISSIONER OF EDUCATION.
THERE ARE A NUMBER OF INDICATORS UNDER EACH OF THOSE CRITICAL INDICATORS.
HAS A FINAL RATING DETERMINED FOR THE CRITICAL INDICATORS.
IF A DISTRICT FAILS ANY OF THESE FOUR, THEY RECEIVE AN F RATING, REGARDLESS OF THE NUMERIC SCORE THAT'S OUTLINED IN ITEM A, AND ITEM B IS THE DETERMINATION OF THE RATINGS BY NUMBERS, WITH A BEING A SCORE OF 90 TO 100 AND THE F BEING 70 AND BELOW. SO HOW DID ROUND ROCK ISD PERFORM FINANCIALLY? IN INDICATOR 1, WAS THE ANNUAL FINANCIAL REPORT, FILED WITHIN 30 DAYS AFTER THE TEA SET DEADLINE OF NOVEMBER 27TH? WE FILED OUR REPORT TO TEA BY THE DEADLINE IT WAS DUE 12/27, TEA RECEIVED IT ON NOVEMBER 22ND.
AS A RESULT, WE PASSED. INDICATOR 2, WAS THERE AN UNMODIFIED OPINION IN THE ANNUAL FINANCIAL REPORT ON THE FINANCIAL STATEMENTS AS A WHOLE? ROUND ROCK ISD RECEIVED AN UNMODIFIED OR CLEAN OPINION ON THE AUDIT.
AS A RESULT, WE PASSED. INDICATOR 3, WAS A SCHOOL DISTRICT IN COMPLIANCE WITH THE PAYMENT TERMS OF ALL DEBT AGREEMENTS AT THE FISCAL YEAR END? YES WE WERE.
AND AS A RESULT, WE PASSED. INDICATOR 4, DID THE DISTRICT MAKE TIMELY PAYMENTS TO THE TEACHERS RETIREMENT SYSTEM (TRS), TEXAS WORKFORCE COMMISSION (TWC), INTERNAL REVENUE SERVICE AND OTHER GOVERNMENT AGENCIES? ALL REPORTS WERE SUBMITTED TIMELY TO ALL GOVERNMENT ENTITIES.
SO NOW WE WILL MOVE ON TO THE NUMERIC INDICATORS TO SEE HOW WE SCORE.
INDICATOR 5, IS THE FIRST OF THE SOLVENCY INDICATORS.
IT READS, WAS A TOTAL NET POSITION IN GOVERNMENT ACTIVITIES COLUMN IN THE STATEMENT OF NET POSITION (NET OF ACCRETION AND INTEREST FOR CAPITAL APPRECIATION BONDS, NET PENSION LIABILITY AND OTHER POST-EMPLOYMENT BENEFITS) GREATER THAN ZERO? AS YOU CAN SEE BELOW WITH THE FORMULAS AND THE DOLLARS AMOUNT FOR EACH OF THOSE CATEGORIES, WE HAVE A POSITIVE $353 MILLION. SO WE PASSED.
[00:05:02]
INDICATOR 6, WAS THE AVERAGE CHANGE IN ASSIGNED AND UNASSIGNED FUND BALANCE OVER THREE YEARS LESS THAN A 25% DECREASE? OUR AVERAGE CHANGE IN UNASSIGNED FUND BALANCE OVER THREE YEARS WAS 23.7, WHICH IS LESS THAN THE 25.THEREFORE WE PASSED. INDICATOR 7, WAS THE NUMBER OF DAYS OF CASH ON HAND AND CURRENT INVESTMENTS IN THE GENERAL FUND FOR THE SCHOOL DISTRICT SUFFICIENT TO COVER OPERATING EXPENSES EXPENDITURES (EXCLUDING FACILITIES, ACQUISITION AND CONSTRUCTION FOR 90 DAYS)? YOU SEE, BY THE FORMULA, CASH EQUIVALENTS WAS 126.8 MILLION.
TOTAL EXPENDITURES 502 MILLION, MINUS THE FACILITY ACQUISITION.
THEREFORE, WE RECEIVE 10 OF 10 POINTS. INDICATOR 8, WAS THE MEASURE OF CURRENT ASSETS TO CURRENT LIABILITIES RATIO FOR THE SCHOOL DISTRICT SUFFICIENT TO COVER SHORT-TERM DEBT? OUR CURRENT ASSETS TO CURRENT LIABILITIES, AS YOU CAN SEE, WAS A 2.23.
SO THE 2.23 IS LESS THAN 2.5 BUT GREATER THAN 2.
THEREFORE WE GET 6 OF THE 10 POINTS. INDICATOR 9.
DID THE SCHOOL DISTRICT'S GENERAL FUND REVENUES EQUAL OR EXCEED EXPENDITURES? IF NOT, WAS THE SCHOOL DISTRICT'S NUMBER OF DAYS ON CASH ON HAND GREATER THAN OR EQUAL TO 60 DAYS? AS YOU CAN SEE, OUR GENERAL FUND DID NOT EXCEED OUR EXPENDITURES.
SO WE HAVE TO MOVE ON TO THE NEXT CALCULATION WHERE OUR CASH EQUIVALENTS DIVIDED BY OUR TOTAL EXPENDITURES, LESS ACQUISITION. OUR TOTAL CASH ON HAND WAS 92, WHICH EXCEEDS THE 60 DAYS REQUIRED.
WE RECEIVED THE 10 OF THE 10 POINTS. INDICATOR 10 WAS NOT SCORED THIS YEAR BY TEA.
INDICATOR 11, WAS THE RATIO OF LONG TERM LIABILITIES TO TOTAL ASSETS FOR THE SCHOOL DISTRICT SUFFICIENT TO SUPPORT LONG TERM SOLVENCY? (IF THE SCHOOL DISTRICT'S INCREASE OF STUDENTS AND MEMBERSHIP OVER FIVE YEARS WAS 7% OR MORE, THEN THE SCHOOL DISTRICT AUTOMATICALLY PASSES THIS INDICATOR).
COMPARED TO TOTAL ASSETS RATIO IS 57.9%, WHICH IS LESS THAN THE 0.6 TO 60%.
THEREFORE, WE RECEIVE 10 OF THE 10 POINTS. INDICATOR 12, WAS THE DEBT PER $100 VALUE OF ASSETS PROPERTY VALUE RATIO SUFFICIENT TO SUPPORT FUTURE DEBT REPAYMENTS? SO AS YOU CAN SEE, THE TOTAL LOCAL AND INTERMEDIATE SOURCES DIVIDED BY TOTAL REVENUE TIMES LONG TERM LIABILITIES TIMES 100 AND DIVIDED BY THE ASSETS PROPERTY VALUE COMES TO THE $53.2 BILLION DOLLARS AND A RATIO OF 1.38.
REQUIREMENT OF LESS THAN FOUR GETS YOU THE MAXIMUM POINTS.
THEREFORE, WE RECEIVE 10 OF THE 10 POINTS. INDICATOR 13, WAS A SCHOOL DISTRICT ADMINISTRATIVE COSTS RATIO EQUAL TO OR LESS THAN THE THRESHOLD RATIO? A DISTRICT ADMINISTRATIVE COST RATIO WAS 0.0577.
ADA WAS 42,943, SO THE DISTRICT ADMINISTRATIVE COST RATIO WAS SIGNIFICANTLY BELOW THE THRESHOLD RATIO OF 0.0855 FOR ADA OF 10,000 OR MORE. THEREFORE, THE DISTRICT RECEIVED 10 OF THE 10 POINTS.
INDICATOR 14 AND THIS IS THE LAST AND FINAL THE SOLVENCY INDICATORS.
THE SCHOOL DISTRICT DID NOT HAVE A 15% DECLINE IN STUDENTS TO STAFF RATIO OVER THREE YEARS (TOTAL ENROLLMENT TO TOTAL STAFF)? SO OUR 23-24 TOTAL ENROLLMENT WAS 46,197. 22-23 FTE WAS 06,236. THE 21-22 TOTAL ENROLLMENT WAS 47,167.
AND 21-22 FTE STAFF WAS 6,406. DISTRICTS PERCENT CHANGE IN STUDENT STAFF RATIO INCREASED BY 0.62%, WHICH IS WELL BELOW THE THRESHOLD OF A DECREASE OF 15% OVER THREE YEARS.
AND FOR THIS REPORT AS LIKE LAST YEAR TEA DID NOT SCORE INDICATOR 15.
INDICATOR 16, DID A COMPARISON OF PUBLIC EDUCATION INFORMATION MANAGEMENT SYSTEM DATA TO LIKE INFORMATION IN SCHOOL DISTRICTS, ANNUAL FINANCIAL REPORT AND A TOTAL VARIANCE OF LESS THAN 3% OF ALL EXPENDITURES BY FUNCTION?
[00:10:05]
THE SUM OF THE DIFFERENCE WAS 454 DIVIDED BY ALL EXPENDITURES OF 502 MILLION.SO OUR RATIO WAS 0.0000903, WHICH MEETS THE REQUIREMENT OF LESS THAN 0.03.
SO WE PASS THIS TEST. INDICATOR 17, DID THE EXTERNAL INDEPENDENT AUDITOR REPORT THAT THE ANNUAL FINANCIAL REPORT WAS FREE OF ANY INSTANCES OF MATERIAL WEAKNESSES IN INTERNAL CONTROLS OVER FINANCIAL REPORTING AND COMPLIANCE FOR LOCAL, STATE AND FEDERAL FUNDS? THE AUDITOR REPORTED NO MATERIAL WEAKNESSES AND THEREFORE WE PASSED.
INDICATOR 18, DID THE EXTERNAL INDEPENDENT AUDITOR INDICATE THAT THE ANNUAL FINANCIAL REPORT WAS FREE OF ANY INSTANCES OF MATERIAL NONCOMPLIANCE FOR GRANTS, CONTRACTS AND LAWS RELATED TO LOCAL, STATE OR FEDERAL FUNDS? THE AUDITOR REPORTED NO INSTANCES OF MATERIAL NONCOMPLIANCE, AND THEREFORE WE RECEIVED 10 OF THE 10 POINTS.
INDICATOR 19, DID THE SCHOOL DISTRICT POST THE REQUIRED FINANCIAL INFORMATION ON ITS WEBSITE IN ACCORDANCE WITH GOVERNMENT 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? THE DISTRICT DID POST THE REQUIRED INFORMATION ON THE WEBSITE, AND WE RECEIVED 5 OF THE 5 POINTS.
INDICATOR 20, DID THE SCHOOL BOARD MEMBERS DISCUSS THE DISTRICT'S PROPERTY VALUES AT A BOARD MEETING WITHIN 120 DAYS BEFORE THE DISTRICT ADOPTED THE BUDGET? THE BOARD DISCUSSED THE DISTRICT PROPERTY VALUE AT THE MAY BOARD MEETING, SO IT WAS WELL WITHIN THE 120 DAYS.
THEREFORE WE PASSED. AND THE LAST OF THE INDICATORS.
DID THE SCHOOL DISTRICT RECEIVE AN ADJUSTED REPAYMENT SCHEDULE FOR MORE THAN ONE FISCAL YEAR FOR AN OVERALLOCATION OF FOUNDATION SCHOOL PROGRAM (FSP) FUNDS BECAUSE OF A FINANCIAL HARDSHIP? WE DID NOT RECEIVE AN ADJUSTMENT REPAYMENT PLAN.
THEREFORE WE PASSED. SO THE TOTAL POINTS ALLOWED IS 100.
ROUND ROCK RECEIVED 96. SO OUR FINAL RATING AS IN PRIOR YEARS IS 80 FOR SUPERIOR ACHIEVEMENT.
SO OUTSIDE COMPENSATION RECEIVED BY THE SUPERINTENDENT.
IT'S ALSO REQUIRED TO POST REIMBURSEMENTS MADE TO EACH BOARD MEMBER FOR TRAVEL AND CONFERENCES.
AND AS YOU CAN SEE, WE TRACK HOTEL CHARGES, MILEAGE, PARKING, TRANSPORTATION, FLIGHT REGISTRATION, MEALS, OTHER GIFTS, AND TOTAL OTHER REIMBURSEMENTS AND PROVIDE A TOTAL FOR EACH BOARD MEMBER THAT SERVED DURING THAT SCHOOL YEAR, AND WE SPENT 26,500 FOR REIMBURSEMENT TO BOARD MEMBERS.
ALSO, WE'RE REQUIRED TO POST TO THE DISTRICT, HAD ANY BUSINESS TRANSACTION WITH BOARD MEMBERS.
AND AS YOU SEE ON THE SCREEN, THAT IS WHERE YOU CAN GO TO SEE THE CURRENT SUPERINTENDENT'S CONTRACT.
MADAM CHAIR, BOARD MEMBERS, THAT IS THE END OF THE FIRST REPORT AND I HOPE FOR QUESTIONS.
AND WE DON'T HAVE OUR BUTTONS TODAY. DOES ANYBODY HAVE ANY QUESTIONS FOR MISTER COVINGTON? TRUSTEE [INAUDIBLE]. I'M JUST WONDERING WHERE THE FOUR POINTS ARE WHEN WE'RE GOING TO GET THEM FOUR POINTS. TRUSTEE CUERO.
GOING BACK TO INDICATOR EIGHT, WHICH IS, I GUESS, THE FOUR POINTS THAT WE'RE MISSING.
WHAT IS THE MAX POINTS? CLOSER TO 2 OR 2.5? 3.
TO 3. OKAY. THREE. THANK YOU. TRUSTEE LANDRIEU I JUST WANTED TO SAY THANK YOU.
IN A WORLD WHERE BEING A CFO OF A SCHOOL DISTRICT IS NOT THE MOST DESIRABLE POSITION IN THE PLANET.
THANK YOU FOR ALL THE HARD WORK OF YOU AND YOUR TEAM FOR MANAGING OUR FINANCES AND FOR OBVIOUSLY THE 96, BUT JUST THANK YOU FOR ALL THAT YOUR TEAM DOES TO MANAGE OUR FINANCES ON A DAILY BASIS.
ALL RIGHT. I DON'T SEE ANY OTHER QUESTIONS. THANK YOU.
[00:15:02]
SO I NEED TO CHECK NO MORE PUBLIC SPEAKERS. ALL RIGHT.SO SEEING NOTHING ELSE ON THE AGENDA, WE, THE PUBLIC HEARING IS ADJOURNED AT 545.
AND WE WILL COME BACK AT SIX FOR OUR REGULAR MEETING.
* This transcript was compiled from uncorrected Closed Captioning.