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School Financial Integrity Rating System of TexasRating System of Texas Annual Financial Management Report

Conroe Independent School District’s FIRST Rating

Darrin Rice Executive Director of FinanceDarrin Rice, Executive Director of Finance

Primary Goal/DevelopmentPrimary Goal/Development The Texas Administrative Code (TAC), Title

19 § 109 1001 states that the purpose of the19, § 109.1001, states that the purpose of the financial accountability rating system is to ensure that school districts will be held accountable for the quality of their financial management practices and achieve improved performance in the management of theirperformance in the management of their financial resources.

Primary Goal/Development (cont.)y p ( ) The School FIRST rating is based upon an

analysis of staff and student data reported for h 2012 2013 h l d b d dthe 2012-2013 school year, and budgetary and

actual financial data for the fiscal year ended August 31, 2013.August 31, 2013.

The School First accountability rating system assigns one of four financial accountability ratings to Texas school districts.

1. Superior Achievement2 Ab S d d A hi2. Above-Standard Achievement3. Standard Achievement4 S b t d d A hi t4. Substandard Achievement

Conroe Independent School Di i ’ FIRST R iDistrict’s FIRST Rating

Conroe Independent School District received a rating of “Superior Achievement”.

The Superior Achievement rating is the ’ i i i fstate’s highest, demonstrating the quality of

Conroe ISD’s financial management and reporting systemreporting system.

How Ratings are AssessedHow Ratings are Assessed The School FIRST rating system rated Texas g y

districts based on their answers to 20 separate questions.

Each question was designed to assess the quality of the financial management of the district’s resources.

Questions/Explanations and Conroe ISD’ AISD’s Answers.

1. Was total Fund Balance less Nonspendable pand Restricted 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 your district has a positiveg y pamount of fund balance cash (savings) that is not designated or reserved for a specific purpose. In other words, “Does your district have funds set aside for a y f frainy day?”Conroe’s answer – Yes $98,977,901


2. Was the Total Unrestricted Net Asset2. Was the Total Unrestricted Net Asset Balance in the Governmental Activities Column in the Statement of Net Assets Greater than Zero? Conroe’s answer - Yes $56,775,021

Questions/Explanations and Conroe ISD’ A ( t )ISD’s Answers (cont.)

3. Were there No disclosures in the Annual 3. Were there No disclosures in the Annual Financial Report and/or other sources of information concerning default on bonded indebtedness obligations.This indicator seeks to make certain that your district has paid your bills/obligations on bonds issued to pay for school construction, etc.Conroe’s answer – Yes


4. Was the Annual Financial Report filed pwithin one month after the January 28th

deadline for the district’s Fiscal Year end date August 31?A simple indicator. Was your Annual Financial R fil d b h d dli ?Report filed by the deadline?Conroe’s answer – Yes, January 23


5. Was there an Unqualified Opinion in the 5. Was there an Unqualified Opinion in the Annual Financial Report?A “qualification” on your financial reportA qualification on your financial report means that you need to correct some of your reporting or financial controls. A district’s goal, therefore, is to receive an “unqualified opinion” on its Annual Financial Report.Conroe’s answer – Yes


6. Did the Annual Financial Report NOT pdisclose any instance(s) of material weakness in internal controls?A clean audit of your Annual Financial Report would state that your district has no material

k i i l lweaknesses in internal controls.Conroe’s answer – Yes


7.Was the Three- Year average percent of Total Tax Collections (including Delinquent) greater than 98%?C ’ Y 99 76%Conroe’s answer – Yes 99.76%

8 Did Th C i f PEIMS DATA t 8. Did The Comparison of PEIMS DATA to Like Information in Annual Financial Report Result In An Aggregate Variance of LessResult In An Aggregate Variance of Less than 3 Percent of Expenditures Per Fund Type?Conroe’s Answer - Yes , 0%


9. Were Debt Related Expenditures (Net Of p (IFA And/Or EDA Allotment) < $350.00 Per Student?

(If The District's Five-Year Percent Change In Students = Or > 7%, CISD 12.27%

Or If Property Taxes Collected Per Penny Of Tax Effort > $200,000 Per Student)?$2,197,797.38


10. Was there NO disclosure in the Annual10. Was there NO disclosure in the Annual Audit Report of Material Noncompliance?No disclosure means the Annual Audit report pincludes no disclosure indicating that the school district failed to comply with laws, rules, and regulations for a government entity.Conroe’s answer – Yes


11. Did the district have full accreditation11. Did the district have full accreditation status in relation to financial management practices?Did TEA take control of your district due to financial issues such as fraud or having a negative fund balance? If not, you pass this indicator.C ’Conroe’s answer – Yes


12. Was the aggregate of Budgeted Expenditures and Other Uses LESS THAN the aggregate of Total Revenue, Other resources and Fund Balance in Generalresources and Fund Balance in General Fund?Your district will receive a negative rating on g gthis measure if your total expenditures and other uses for the fiscal year exceeded your total funds availableavailable.Conroe’s answer – Yes


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?construction projects adequately financed?This indicator measures your district’s ability to construct facilities without damaging your Fund f g g yBalance.Conroe’s answer – Yes, Conroe’s aggregate f d b l $130 836 174fund balance was $130,836,174


14. Was the ratio of Cash and Investments to Deferred Revenues in the General Fund greater than or equal to 1:1?This indicator measures whether or not your district has sufficient cash and investments to b l f d b l i h TEAbalance fund balance monies such as TEA overpayments (deferred revenues).C ’ YConroe’s answer – Yes


15. Was the Administrative Cost Ratio less15. 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 p p g f gTexas school districts can spend on administration. Did you stay within the cap for districts of your size?

Conroe’s answer Yes the acceptableConroe s answer – Yes, the acceptable administrative cost ratio is .1105 and Conroe’s ratio .0364.


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

R f ti f di t i t ith t d tRange for ratio for districts with student population =>10,000 Low 13.5 High 22

Conroe’s answer – Yes, 16.7


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

Range for ratio for districts with student population =>10,000 Low 7.0 High 14.

Conroe’s ans er Yes 8 69Conroe’s answer – Yes, 8.69


18. Was the decrease in Undesignated Fund gBalance less than 20 percent over two Fiscal Years?Are you “feeding off of your Fund Balance” to pay for salaries or other district operating

?expenses?Conroe’s answer – Yes


19. Was the Aggregate Total Cash and Investments in the General Fund more than $0?Does Conroe ISD have cash in the bank, and/or investments?investments?Conroe’s answer – Yes, $113,797,587

20. Were Investment Earnings in all funds g(excluding Debt Service and Capital Projects Fund) Meet or Exceed the 3-Month Treasury Bill Rate?Rate?Conroe’s answer – Yes

School First Annual Financial Management ReportSchool FIRST Annual Financial Management Report CONROE INDEPENDENT SCHOOL DISTRICT

Reimbursements Received by the Superintendent and Board Members

For the Twelve-Month PeriodEnded August 31, 2013

Superintendent Board Board Board Board Board Board BoardMember 1 Member 2 Member 3 Member 4 Member 5 Member 6 Member 7Member 1 Member 2 Member 3 Member 4 Member 5 Member 6 Member 7Mel Brown Ray Sanders C.J. Haynes Datren Williams Scott Kidd John Husbands Jessica Powell

Meals 185.99$ -$ -$ -$ -$ -$ -$ -$ Lodging 361.70 - - - - - - - Transportation 855.75 - - - - - - - Motor Fuel - - - - - - - - Other - - - - - - - - Total $1 403 44 $0 00 $0 00 $0 00 $0 00 $0 00 $0 00 $0 00

Description of Reimbursements Dr. Don Stockton

Total $1,403.44 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

All “reimbursements” expenses, regardless of the manner of payment, including direct pay, credit card, cash, and purchase order are to be reported. Items to be reported per category include:

Lodging - Hotel charges.

Meals – Meals consumed out of town, and in-district meals at area restaurants (outside of board meetings, excludes catered board meeting meals).

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.

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

For the Twelve-Month PeriodEnded August 31, 2013Name(s) of Entity(ies) Amount ReceivedN/A -$

Services

Total -$

Compensation does not include business revenues generated from a family business (farming, ranching, etc.) that has no relation to school district business.

School First Annual Financial Management Report

Gifts Received by Executive Officers and Board Members (and First Degree Relatives, if any) (gifts that had an economic value of $250 or more in the aggregate in the fiscal year)

For the Twelve-Month PeriodEnded August 31, 2013

Superintendent Board Board Board Board Board Board BoardMember 1 Member 2 Member 3 Member 4 Member 5 Member 6 Member 7Mel Brown Ray Sanders C.J. Haynes Datren Williams Scott Kidd John Husbands Jessica Powell

Total -$ -$ -$ -$ -$ -$ -$ -$

Note – An executive officer is defined as the superintendent, unless the board of trustees or the

Dr. Don Stockton

pdistrict administration names additional staff under this classification for local officials.

Business Transactions Between School District and Board Members

For the Twelve Month PeriodFor the Twelve-Month PeriodEnded August 31, 2013

Board Board Board Board Board Board BoardMember 1 Member 2 Member 3 Member 4 Member 5 Member 6 Member 7Mel Brown Ray Sanders C.J. HaynesDatren William Scott Kidd John Husbands Jessica Powell

Amounts -$ -$ -$ -$ -$ 906,750.00$ -$ Note - The summary amounts reported under this disclosure are not to duplicate the items disclosed in the summary schedule of reimbursements received by board members.

The above amount reflects normal business transactions between Conroe I.S.D. and the employers of Mr. Husbands (Soules Insurance). Mr. Husbands receives no commission from these revenues and his relationship predates his membership on the Board of Trustees

Summary Schedule of Data Submitted under the Financial Solvency Provisions of TEC §39.0822

General Fund - First-Quarter Expenditures By Object Code Report 2013-2014 first-quarter (first three months of fiscal year 2013-2014) GENERAL FUND expenditures by object code using whole numbers.

Payroll- Expenditures for payroll costs object codes 6110-6149 71,349,676.64$ Payroll pe d u es o pay o cos s objec codes 6 0 6 9 ,3 9,6 6 6$Contract Costs- Expenditures for services rendered by firms, individuals, and other organizations object code series 6200 9,034,058.32$

Supplies and Materials-object code series 6300 7,457,832.64$

Other Operating-object code series 6400 2,065,285.57$

Debt Service- Expenditures for debt service object code series 6500 -$ Capital Outlay- Expenditures for land, buildings, and equipment object code series 6600 780,803.78$

Expenditures for supplies and materials necessary to maintain and/or operate furniture, computers, equipment, vehicles, grounds, and facilitiesExpenditures for items other than payroll, professional and contracted services, supplies and materials, debt service, and capital outlay

Additional Financial Solvency Questions

1) Districts with a September 1- August 31 fiscal year: Within the last two years, did the school district Yes No

XX

XX

1) draw funds from a short-term financing note (term less than 12 months) between the months of September and December, inclusive, and2) for the prior fiscal year, have a total General Fund balance of less than 2 percent of total expenditures for General Fund function codes 11-61?

2) Has the school district declared financial exigency within the past two years? XX

3) Provide comments or explanations for student-to-staff ratios significantly (more than 15%) below the norm, rapid depletion of General Fund balances, or any significant discrepancies between actual budget figures and projected revenues and expenditures, or any other information that may be helpful in evaluating the school district's financial solvency.

Mean Enroll-to-Teacher Ratio School District Size8.39 7.13 Under 1009.48 8.06 100 to 249

10.73 9.12 250 to 49911.48 9.76 500 to 99912.45 10.58 1,000 to 1,59913.52 11.50 1,600 to 2,99914.29 12.15 3,000 to 4,999

85% of Mean Enroll-to-Teacher Ratio

, ,14.80 12.58 5,000 to 9,99914.88 12.65 10,000 to 24,99915.01 12.76 25,000 to 49,99915.06 12.80 50,000 and Over

4) How many superintendents has your school district had in the last five years? 1

5) How many business managers has your school district had in the last five years? 1

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