Financial Integrity Rating System of Texas (FIRST) Report For

2014-2015

Fiscal Year Ending 2014Central Administration at Nellie Schunior

Staff Development CenterNovember 09, 2015

5:30pm1

Senate Bill No. 875, 76TH Legislature – 1999

Senate Bill No. 218, 77TH Legislature – 2001

Developed by Commissioner together with Comptroller of Public Accounts

Proposal presented to Legislature December 2000

Merging of Financial Integrity Rating System of Texas (FIRST) and Financial Solvency - 2015

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Facilitate Effective and Efficient Use of Resources

Strengthen Fiscal Accountability

Use of currently collected data ◦ Annual Audit Report

◦ PEIMS Student Financial

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Provide Analysis Tool for School Officials

Increase the Proportion of Resources Used in Direct Instructional Activities

Increase Efficient Use of Resources in School Support Activities

Identify and Recognize Outstanding Performance

Increase Financial Well-Being of Public Schools

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How the new system will be an improvement◦ Several new indicators are more easily recognized

and interpreted by both the public and the finance industry.

◦ Several new indicators have a wider sliding scale range to allow a high, medium, or low points award for those indicators (from 0 to 10 points).

◦ The superior rating has a higher standard, allowing the highest performers to be recognized.

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Pass◦ From 16 to 30 points, with no critical fail indicator

(Indicators 1-4).◦ This score indicates that the district or charter meets the

minimum passing standard for financial integrity.

Substandard Achievement◦ From 0 to 15 points or fail a critical indicator. ◦ Substandard Data Quality because the Annaul Financial

Report and data feed (or Charter School Data Template) was not turned in on time and/or was not complete for FIRST analysis.

The ratings and indicators for the first year is different than following years to allow a transition period.

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The La JoyaThe La Joya

Independent School Independent School District District

Earned a Earned a

““PASSPASS ” ”

Rating for 2014-2015Rating for 2014-2015 (Fiscal Year Ending 2014)(Fiscal Year Ending 2014)

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1. Was The Complete Annual Financial Report And Data Submitted To The TEA Within 30 Days Of The November 27 Or January 28 Deadline Depending On The School

District’s Fiscal Year End Date Of June 30 Or August 31, Respectively?

Due Date = Feb 28, 2015La Joya ISD Filed Jan 23, 2015

(4)

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2. Was There An Unmodified Opinion In The Annual Financial Report On The Financial Statements As A Whole?

La Joya ISD’s Audit Report = Unmodified Opinion

(5)9

3. Was The School District In Compliance With The Payment Terms Of All Debt Agreements At Fiscal Year End?

No Default On Bond Indebtedness-The District made All of their Bond Payments

On Time.

(3) 10

4. Was The Total Unrestricted Net Asset Balance (Net Of The Accretion Of Interest For Capital Appreciation Bonds) In The Governmental Activities Column In The Statement Of Net Assets Greater Than Zero? (If The School District’s Change Of Students In Membership Over 5 Years Was 10 Percent Or More, Then The School District Passes This Indicator.)

Net Asset Balance = $113,163,157(2) 11

5. Was The School District’s Administrative Cost Ratio Equal To Or Less Than The

Threshold Ratio?

Standard = <= 8.55 La Joya ISD = 7.06

(15)12

6. Did the comparison of Public Education Information Management System (PEIMS) Data To Like Information In The School District’s Annual Financial Report Result In A Total Variance Of Less Than 3 Percent Of All Expenditures By Function?

La Joya ISD Variance = .0%

(8)13

7. Did The External Independent Auditor Report That The Annual Financial Report Was Free Of Any Instance(s) Of Material Weaknesses In Internal Controls Over Financial Reporting And Compliance For Local, State, Or Federal Funds?

La Joya ISD’s Audit Report = No Material Weakness

(6) 14

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2013-2014 2014-2015Number * INDICATOR DESCRIPTION Score Score

1 Was The Total Fund Balance Less Nonspendable and Restricted Fund Balance Greater Than Zero In The General Fund?

Yes N/A

2 (4) Was the total unrestricted net asset balance (Net of the accretion of interest for capital appreciation bonds) in the governmental activities column in the Statement of Net Assets greater than zero? (If the school district’s change of students in membership over 5 years was 10 percent or more, then the school district passes this indicator.)

Yes Yes

3 (3) Was the school district in compliance with the payment terms of all debt agreements at fiscal year end?

Yes Yes

4 (1) Was The Complete Annual Financial Report And Data Submitted To The TEA Within 30 Days Of The November 27 Or January 28 Deadline Depending On The School District’s Fiscal Year End Date Of June 30 Or August 31, Respectively?

Yes Yes

5 (2) Was there an unmodified opinion in the AFR on the financial statements as a whole?

Yes Yes

6 (7) Did the external independent auditor report that the AFR was free of any instance(s) of material weaknesses in internal controls over financial reporting and compliance for local, state, or federal funds?

Yes 10

7 Was The Three-Year Average Percent Of Total Tax Collections (Including Delinquent) Greater Than 98%?

5 N/A

8 (6) Did the comparison of Public Education Information Management System (PEIMS) data to like information in the school district’s AFR result in a total variance of less than 3 percent of all expenditures by function?

5 10

9 Were Debt Related Expenditures (Net Of IFA And/Or EDA Allotment) < $350.00 Per Student? (If The District's Five-Year Percent Change In Students = Or > 7%, Or If Property Taxes Collected Per Penny Of Tax Effort > $200,000 Per Student)

5 N/A

10 Was There No Disclosure In The Annual Audit Report Of Material Noncompliance?

5 N/A

11 Did The District Have Full Accreditation Status In Relation To Financial Management Practices? (e.g. No Conservator Or Monitor Assigned)

5 N/A

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?

5 N/A

LA JOYA INDEPENDENT SCHOOL DISTRICTFIRST REPORT

TWO YEAR COMPARISON

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2013-2014 2014-2015Number * INDICATOR DESCRIPTION Score Score

13 If The District's 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 Deficit Situation)

5 N/A

14 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 Net Delinquent Taxes Receivable)

5 N/A

15 (5) Was the school district’s administrative cost ratio equal to or less than the threshold ratio?

5 10

16 Was The Ratio Of Students To Teachers Within the Ranges Shown Below According To District Size?

5 N/A

17 Was The Ratio Of Students To Total Staff Within the Ranges Shown Below According To District Size?

5 N/A

18 Was The Decrease In Undesignated Unreserved Fund Balance < 20% Over Two Fiscal Years?(If Total Revenues > Operating Expenditures In The General Fund,Then District Receives 5 Points)

5 N/A

19 Was The Aggregate Total Of Cash And Investments In The General Fund More Than $0?

5 N/A

20 Were Investment Earnings In All Funds (Excluding Debt Service Fund and Capital Projects Fund) Meet or Exceed the 3-Month Treasury Bill Rate? 5 N/A

TOTAL SCORE 70 30

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?

(Where Applicable). If So, The District's Rating Is Substandard Achievement.

B.Determine Rating By Applicable Range For Summation Of The Indicator Scores (Indicators 7-20 for 2012-2013 and Indicators 5-7 in 2013-2014)Superior Achievement 64-70 N/A

Pass N/A 16-30

Above Standard Achievement 58-63 N/A

Standard Achievement 52-57 N/A

Substandard Achievement <52 <16

* Number in Parenthesis Identifies Indicator Number for 2014-2015

LA JOYA INDEPENDENT SCHOOL DISTRICTFIRST REPORT

TWO YEAR COMPARISON

OTHER REQUIRED DISCLOSURES

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Reimbursements Received by

Superintendent and Board Members

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LA JOYA I.S.D.

Disclosure #2

Reimbursements Received

Year Ending August 31, 2014

For the Twelve-Month Period Ended August 31, 2014

Description of Reimbursements

Meals Lodging Transportation Motor Fuel Other Total

Dr. Alda T. Benavides 330.64 1,486.20 1,389.00 1,868.99 2,962.03 8,036.86

Esperanza "Espie" Ochoa 40.00 90.46 - 144.64 160.00 435.10

Johnn Valente Alaniz - - - - - -

Joel Garcia 160.00 1,544.32 - 590.16 840.00 3,134.48

Juan Jose “JJ” Garza 629.00 4,090.46 1,148.00 839.83 2,160.00 8,867.29

Jesus “Chuy” Avendaño 65.00 175.75 117.52 143.60 310.00 811.87

Oscar “Coach” Salinas 589.00 3,975.46 1,148.00 622.87 1,955.00 8,290.33

Juan “JJ” Pena Jr. - - - 27.12 - 27.12

Outside Compensation/Fees

Received bySuperintendent

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LA JOYA I.S.D.

Disclosure #3

Outside Compensation

Year Ending August 31, 2014

Outside Compensation and/or Fees Received by the Superintendent

For the Twelve-Month Period

Ended August 31, 2014

Name of Entities  

 Dr. Alda T. Benavides -

   

   

   

   

   

Total $ -

Gifts Received by the Superintendent

andBoard Members

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LA JOYA I.S.D.

Disclosure #4

Gifts Received

Year Ending August 31, 2014

Gifts Received by Executive Officers and Board Members

Gifts that had an economic value of $250.00 dollars or more

For the Twelve-Month Period

Ended August 31, 2014

Name of Officer/Board Member Summary Amounts

Dr. Alda T. Benavides -

Esperanza "Espie" Ochoa -

Johnn Valente Alaniz -

Joel Garcia -

Juan Jose “JJ” Garza -

Jesus “Chuy” Avendano -

Oscar “ Coach” Salinas -

Juan “JJ” Pena Jr. -

Business Transactions Between

School District and

Board Members

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LA JOYA I.S.D.

Disclosure # 5

Business Transactions

Year Ending August 31, 2014

Business Transactions Between School District and Board Members

For the Twelve-Month Period

Ended August 31, 2014

Board Member Summary Amounts

Esperanza "Espie" Ochoa -

Johnn Valente Alaniz -

Joel Garcia -

Juan Jose “JJ” Garza -

Jesus “Chuy” Avendano -

Oscar “ Coach” Salinas -

Juan “JJ” Pena Jr. -

QUESTIONS

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