LA JOYA ISD Financial Integrity Rating System of

LA JOYA ISD Financial Integrity Rating System of Texas (FIRST) Report For 2014 -2015 Fiscal Year Ending 2014 Central Administration at Nellie Schunior Staff Development Center November 09, 2015 5: 30 pm 1

Financial Accountability Rating System History Senate Bill No. 875, 76 TH Legislature – 1999 Senate Bill No. 218, 77 TH 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 2

Goals of FIRST Facilitate Effective and Efficient Use of Resources Strengthen Fiscal Accountability Use of currently collected data ◦ Annual Audit Report ◦ PEIMS Student Financial 3

Objectives of FIRST 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 4

Merging of Financial Integrity Rating System of Texas (FIRST) and Financial Solvency 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. 5

HOW RATINGS ARE ASSESSED 2014 -2015 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. 6

The La Joya Independent School District Earned a “PASS ” Rating for 2014 -2015 (Fiscal Year Ending 2014) 7

HOW RATINGS ARE ASSESSED 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 = La Joya ISD Feb 28, 2015 Filed Jan 23, 2015 (4) 8

HOW RATINGS ARE ASSESSED 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

HOW RATINGS ARE ASSESSED 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

HOW RATINGS ARE ASSESSED 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

HOW RATINGS ARE ASSESSED 5. Was The School District’s Administrative Cost Ratio Equal To Or Less Than The Threshold Ratio? Standard La Joya ISD = = <= 8. 55 7. 06 (15) 12

HOW RATINGS ARE ASSESSED 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

HOW RATINGS ARE ASSESSED 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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LA JOYA ISD OTHER REQUIRED DISCLOSURES 17

DISCLOSURE #1 Superintendent’s Contract (Included in FIRST Integrity Rating System of Texas Report) 18

DISCLOSURE #2 Reimbursements Received by Superintendent and Board Members 19

LA JOYA I. S. D. Disclosure #2 Reimbursements Received Year Ending August 31, 2014 Description of Reimbursements For the Twelve-Month Period Ended August 31, 2014 Meals Lodging Transportation Motor Fuel Other Total 330. 64 1, 486. 20 1, 389. 00 1, 868. 99 2, 962. 03 8, 036. 86 40. 00 90. 46 - 144. 64 160. 00 435. 10 - - - 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 65. 00 175. 75 117. 52 143. 60 310. 00 811. 87 589. 00 3, 975. 46 1, 148. 00 622. 87 1, 955. 00 8, 290. 33 - - - 27. 12 Dr. Alda T. Benavides Esperanza "Espie" Ochoa Johnn Valente Alaniz Jesus “Chuy” Avendaño Oscar “Coach” Salinas Juan “JJ” Pena Jr. 20

DISCLOSURE #3 Outside Compensation/Fees Received by Superintendent 21

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 - $ - 22

DISCLOSURE #4 Gifts Received by the Superintendent and Board Members 23

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. - 24

DISCLOSURE #5 Business Transactions Between School District and Board Members 25

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. - 26

LA JOYA I. S. D. QUESTIONS 27