Notes to capital project

Worksheet for Determining Preliminary Rating Under The Financial Integrity Rating System of Texas (2007-08 Rating Based on 2006-07 Data) Commissioner's Rules (Proposed Effective Date: August 13, 2006) By Omar Garcia, Director, Statewide Finance Initiative Region XIII Education Service Center Release 1.0 8/14/2006 The 77th Legislative Session directed the commissioner of education, in consultation of the Comptroller's office, to "...develop and implement a financial accountability rating system for school districts in this state." In response to this directive, the Texas Education Agency (TEA) developed the Financial Integrity Rating System of Texas (FIRST), which was fully implemented in the 2003-04 school year using 2002-03 data. This template was developed to allow districts to determine what their 2007-08 rating might be (using 2006-07 data) under the Commissioner's rules currently estimated to take effect August 13, 2006. This template is NOT intended to produce THE OFFICIAL rating, but should produce the same rating as THE OFFICIAL rating if the data that TEA will use and the data that are entered in the "Data Entry" section of this template are the same. Exception: For Indicator #7, the comparison of Schedule C-2 expenditures to like data reported to PEIMS is done in aggregate by fund on this template in order to keep from having multitudes of data entry cells. TEA will do the actual comparison by function by fund. If you have any questions on the use of this template, you can call me at 512-919-5349 or e-mail me at omar.garcia@esc13.txed.net. 3/26/2008 Financial Integrity Rating System of Texas Data Entry Requirements for Preliminary 2007-08 Rating District: Enter District Name Here Data for Indicator 1,21,22 1 22 22 22 2 2 8 8 8 8 8,13 8 12 12 12 12 12 12 12 12 13 10 10 10 10 13 13,14 14 13,14 13,14 13,14 14 14 13 14 13,14 13,14 13,14 14 14 13 14 13,14 13,14 13,14 14 14 13,14 13,14 13,14 15 15 15 15 15,16 16 16 16 16 16 17 17 18 10,19,20,24 19 20 23 23 22 22 17,23 24 Release 1.0 8/14/2006 Required Data Total Fund Balance, General Fund on 6/30/07 or 8/31/07 Total Reserved Fund Balance, General Fund on 6/30/07 or 8/31/07 Total Designated Fund Balance in the General Fund on 6/30/07 or 8/31/07 Total Unreserved, Undesignated Fund Balance, General Fund on 6/30/07 or 8/31/07 Total Unreserved, Undesignated Fund Balance, General Fund on 6/30/05 or 8/31/05 Total Net Asset Balance in the Governmental Activities column in Exhibit A -1 Accretion of Interest for Capital Appreciation Bonds 2004-05 Total Tax Collections (M&O + I&S + delinquent taxes) 2004-05 Total Tax Levy 2005-06 Total Tax Collections (M&O + I&S + delinquent taxes) 2005-06 Total Tax Levy 2006-07 Total Tax Collections (M&O + I&S + delinquent taxes) 2006-07 Total Tax Levy 2006-07 Total Expenditures, General Fund, Reported to PEIMS 2006-07 Total Expenditures, Special Revenue Fund, Reported to PEIMS 2006-07 Total Expenditures, Capital Projects Fund, Reported to PEIMS 2006-07 Total Expenditures, Debt Service Fund, Reported to PEIMS 2006-07 Total Expenditures, General Fund, Reported in Schedule C-2 2006-07 Total Expenditures, Special Revenue Fund, Reported in Schedule C-2 2006-07 Total Expenditures, Capital Projects Fund, Reported in Schedule C-2 2006-07 Total Expenditures, Debt Service Fund, Reported in Schedule C-2 2006-07 Total Tax Rate in Pennies (i.e., $1.50 tax rate = 150 pennies) 2006-07 Expenditures, General Fund - Function 71, excluding Object Codes 6524 and 6525 2006-07 Expenditures, Debt Service Fund - Function 71, excluding Object Codes 6524 and 6525 2006-07 EDA Allotment 2006-07 IFA Allotment 2002-03 Enrollment 2006-07 Expenditures, General Fund - Function 11, Object Codes 6112 - 6499 2006-07 Expenditures, General Fund - Function 12, Object Codes 6112 - 6499 2006-07 Expenditures, General Fund - Function 36, Object Codes 6112 - 6499 2006-07 Expenditures, General Fund - Function 93, Object Codes 6112 - 6499 2006-07 Expenditures, General Fund - Function 95, Object Codes 6112 - 6499 2006-07 Expenditures, General Fund - Function 31, Object Codes 6112 - 6499 2006-07 Expenditures, General Fund - Function 33, Object Codes 6112 - 6499 2006-07 Expenditures, Sp Rev Fund (exclude SSA Fund Codes) - Function 11, Obj Codes 6112 - 6499 2006-07 Expenditures, Sp Rev Fund (exclude SSA Fund Codes) - Function 12, Obj Codes 6112 - 6499 2006-07 Expenditures, Sp Rev Fund (exclude SSA Fund Codes) - Function 36, Obj Codes 6112 - 6499 2006-07 Expenditures, Sp Rev Fund (exclude SSA Fund Codes) - Function 93, Obj Codes 6112 - 6499 2006-07 Expenditures, Sp Rev Fund (exclude SSA Fund Codes) - Function 95, Obj Codes 6112 - 6499 2006-07 Expenditures, Sp Rev Fund (exclude SSA Fund Codes) - Function 31, Obj Codes 6112 - 6499 2006-07 Expenditures, Sp Rev Fund (exclude SSA Fund Codes) - Function 33, Obj Codes 6112 - 6499 2006-07 Expenditures, Capital Projects Fund - Function 11, Object Codes 6112 - 6499 2006-07 Expenditures, Capital Projects Fund - Function 12, Object Codes 6112 - 6499 2006-07 Expenditures, Capital Projects Fund - Function 36, Object Codes 6112 - 6499 2006-07 Expenditures, Capital Projects Fund - Function 93, Object Codes 6112 - 6499 2006-07 Expenditures, Capital Projects Fund - Function 95, Object Codes 6112 - 6499 2006-07 Expenditures, Capital Projects Fund - Function 31, Object Codes 6112 - 6499 2006-07 Expenditures, Capital Projects Fund - Function 33, Object Codes 6112 - 6499 2006-07 Exp, Gen Op Fund - Functions 11 - 61, and 93 and 95, Obj Codes 6112 - 6499 (see Data Source) 2006-07 Exp, Sp Rev Fund - Functions 11 - 61, and 93 and 95, Obj Codes 6112 - 6499 (see Data Source) 2006-07 Exp, Fund 701 - Functions 11 - 61, and 93 and 95, Obj Codes 6112 - 6499 (see Data Source) 2006-07 Total Budgeted Expenditures, General Fund 2006-07 Total Budgeted Other Uses, General Fund 2006-07 Total Budgeted Revenues, General Fund 2006-07 Total Budgeted Other Resources, General Fund Fund Balance, General Fund as of 7/1/06 or 9/1/06 Fund Balance, Capital Projects Fund as of 7/1/06 or 9/1/06 2006-07 Expenditures, General Fund - Function 81 2006-07 Expenditures, Capital Projects Fund - Function 81 2006-07 Other Resources for Real Property Financing, General Fund 2006-07 Other Resources for Real Property Financing, Capital Projects Fund Deferred Revenues, General Fund as of 6/30/07 or 8/31/07 Net Delinquent Taxes Receivable as of 6/30/07 or 8/31/07 2006-07 Administrative Cost Ratio 2006-07 Enrollment 2006-07 Teacher FTEs 2006-07 Total Staff 2006-07 Total Amount Needed to Cover Cash Flow Deficit in General Fund 2006-07 Estimate of One Month's Cash Disbursement During Regular Session (9/1 - 5/31) 2006-07 Total Actual Revenues, General Fund 2006-07 Total Expenditures, General Fund, Functions 11-61, Object Codes 6100 - 6400 Cash and Investments, General Fund 2006-07 Investment Earnings, All Funds Except Debt Service and Capital Projects Fund ANSWER THE FOLLOWING QUESTIONS: Questions Requiring Response Were there no disclosures in the Annual Financial Report and/or other sources of information concerning default on bonded indebtedness obligations? Was the Annual Financial Report filed within one month after November 27th or January 28th deadline depending upon the district's fiscal year end date (June 30th or August 31st)? Was there an unqualified opinion in the Annual Financial Report? Did the Annual Financial Report not disclose any instance(s) of material weaknesses in internal controls? Did the district's academic rating exceed Academically Unacceptable? Was there no disclosure in the Annual Audit Report of material noncompliance? Did the district have full accreditation status in relation to financial management practices? Did district qualify for the sparsity adjustment? Entry 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0000 0 0 0 0 0 0 0 0 0 Enter Y or N 3 4 5 6 7 11 12 18 Financial Integrity Rating System of Texas (FIRST) -- Preliminary Rating for School Year 2007-2008 Using Data for Fiscal Year Ended August 31, 2007 District: Enter District Name Here # 1 Indicators Critical Indicators Was the total fund balance less reserved fund balance greater than zero in the General Fund? Was the Total Unreserved 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 district's five-year percent change in students was a 10% increase or more, then the answer is 'yes') Were there no disclosures in the Annual Financial Report and/or other sources of information concerning default on bonded indebtedness obligations? Was the Annual Financial Report filed within one month after November 27th or January 28th deadline depending upon the district's fiscal year end date (June 30th or August 31st)? Was there an unqualified opinion in the Annual Financial Report? Did the Annual Financial Report not disclose any instance(s) of material weaknesses in internal controls? Fiscal Responsibility and Academic Performance Did the district's academic rating exceed Academically Unacceptable? Was the three-year average percent of total tax collections (including delinquent) greater than 98%? Did the comparison of PEIMS data to like information in Annual Financial Report result in an aggregate variance of less than 3 percent of expenditures per Fund Type (data quality measure)? Were debt related expenditures (net of IFA and/or EDA allotment) less than $250.00 per student? (if the district's five-year percent change in students was a 7% increase or more, or if property taxes collected per penny of tax effort were more than $200,000, then the district 0 Y or N Answer N Result 0 Release 1.0 8/14/2006 2 N 0 3 0 N/A 4 0 0 N/A 5 6 0 0 0 0 N/A N/A 7 0 0 N/A Points Awarded 0 8 #DIV/0! #DIV/0! #DIV/0! #DIV/0! 9 Y N/A 5 10 #DIV/0! #DIV/0! #DIV/0! #DIV/0! Financial Integrity Rating System of Texas (FIRST) -- Preliminary Rating for School Year 2007-2008 Using Data for Fiscal Year Ended August 31, 2007 District: Enter District Name Here # receives 5 points) 11 Was there no disclosure in the Annual Audit Report of material noncompliance? Did the district have full accreditation status in relation to financial management practices? (e.g., no master or monitor assigned) Budgeting Was the percent of operating expenditures expended for instruction more than or equal to 65%? (Functions 11, 36, 93, and 95) (phased in over three years: 55% for 2006-07; 60% for 2007-08; and 65% for 2008-09) Was the percent of operating expenditures expended for instruction more than or equal to 65%? (Functions 11, 12, 31, 33, 36, 93, and 95) Was the aggregate of budgeted expenditures and other uses less than the aggregate of budgeted total revenues, other resources and fund balance in General Fund? If the district's aggregate fund balance in the General Fund and Capital Projects Fund was less than the zero, were construction projects adequately financed? (were construction projects adequately financed or adjusted by change orders of other legal means to avoid creating or adding to the fund balance deficit situation?) Was 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, then the district receives 5 points) Personnel Was the administrative cost ratio less than the threshold ratio? (see ranges below) Was the ratio of students to teachers within the ranges shown below according to district size? (see ranges below) #DIV/0! Y 0 0 N/A Indicators Y or N Answer Result Release 1.0 8/14/2006 0 12 0 0 N/A 0 13 #DIV/0! #DIV/0! #DIV/0! #DIV/0! 14 #DIV/0! #DIV/0! #DIV/0! #DIV/0! 15 N N/A 0 16 N N/A 0 17 0.00 0 18 N 0.0000 0 19 #DIV/0! #DIV/0! #DIV/0! Financial Integrity Rating System of Texas (FIRST) -- Preliminary Rating for School Year 2007-2008 Using Data for Fiscal Year Ended August 31, 2007 District: Enter District Name Here # 20 Indicators Was the ratio of students to total staff within the ranges shown below according to district size? (see ranges below) Cash Management Was the total fund balance in the General Fund more than 50% and less than 150% of optimum according to the fund balance and cash flow worksheet in the Annual Financial Report? Was the decrease in undesignated unreserved fund balance less than 20% over two fiscal years? (if 1.5 times optimum fund balance is less than total fund balance in General Fund or if total revenues exceeded operating expenditures in General Fund, then the district receives 5 points) Was the aggregate total of cash and investments in the General Fund more than $0. Were investment earnings in all funds (excluding Debt Service Fund and Capital Projects Fund) more than $20.00 per student? #DIV/0! Y or N Answer #DIV/0! #DIV/0! Result #DIV/0! Release 1.0 8/14/2006 #DIV/0! 21 #DIV/0! #DIV/0! 0 #DIV/0! 22 Y 0.00% 5 23 N 0 0 24 #DIV/0! #DIV/0! #DIV/0! Totals Points Awarded #DIV/0! Financial Integrity Rating System of Texas (FIRST) -- Preliminary Rating for School Year 2007-2008 Using Data for Fiscal Year Ended August 31, 2007 District: Enter District Name Here # Indicators Y or N Answer Result Release 1.0 8/14/2006 A. Determination of District Rating Did the district answer No to indicators 1, 2, 3, or 4, OR both 5 and 6 If the district answered no to either, the district's rating is Substandard Achievement Determine rating by applicable number of points Superior Achievement Above Standard Achievement Points >=75 AND Yes to Indicator 7 >=65 <75 OR >=75 AND No to Indicator 7 >=55 <65 <55 OR answered No to one default indicator RATING B. Standard Achievement Substandard Achievement (if less than 55 points, OR if the district answered No to indicators 1, 2, 3, or 4, OR both 5 and 6 #DIV/0! #DIV/0! Financial Integrity Rating System of Texas (FIRST) -- Preliminary Rating for School Year 2007-2008 Using Data for Fiscal Year Ended August 31, 2007 District: Enter District Name Here # Indicators Indicator 18 ADA Group 10,00 and Above 5,000 to 9,999 1,000 to 4,999 500 to 999 Less than 500 Sparse Y or N Answer Result Release 1.0 8/14/2006 Standard 0.1105 0.1250 0.1401 0.1561 0.2654 0.3614 <= The red font color under the 'Indicators' column highlights the change to the indicator that was made from last year's version. Determination of Points Points………………. 5 Y 4 3 2 1 0 N 7 8 > 98 #DIV/0! Y >95 =< 98 #DIV/0! >92 =< 95 #DIV/0! >89 =< 92 #DIV/0! >86 =< 89 #DIV/0! =< 86 #DIV/0! N 9 10 < $250 #DIV/0! =>$250 < $500 #DIV/0! =>$500 < $750 #DIV/0! =>$750 < $1,000 #DIV/0! =>$1,000 < $1,250 #DIV/0! => $1,250 #DIV/0! 11 Y N 12 Y N 13 => 55% #DIV/0! =>52% < 55% #DIV/0! =>50% < 52% #DIV/0! < 50% #DIV/0! 14 => 65% #DIV/0! Y =>62% < 65% #DIV/0! =>59% < 62% #DIV/0! < 59% #DIV/0! N 15 16 Y N 17 => 1.00 0 =>0.95 < 1.00 0 =>0.90 < 0.95 0 =>0.85 < 0.90 0 =>0.80 < 0.85 0 < 0.80 0 18 Y N 19 UL* <= 100% LL** => 100% >100% =<105% =>95% <100% >105% =<110% =>90% <95% >110% =<115% =>85% <90% >115% =<120% =>80% <85% > 120% < 80% 20 UL* <= 100% LL** => 100% >100% =<105% =>95% <100% >105% =<110% =>90% <95% >110% =<115% =>85% <90% >115% =<120% =>80% <85% > 120% < 80% 21 UL* < 150% >150% =<152.5% >152.5% =<155% >155% =<157.5% >157.5% =<160% LL** > 50% >47.5% =<50% >45% =<47.5% >42.5% =<45% >40% =<42.5% #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! < 20% 5 =>20% < 21% 0 =>21% < 22% 0 =>22% < 23% 0 =>23% < 24% 0 > 160% =< 40% #DIV/0! => 24% 0 22 23 Y N 24 > $20 #DIV/0! >$19 =< $20 #DIV/0! >$18 =< $19 #DIV/0! >$17 =< $18 #DIV/0! >$16 =< $17 #DIV/0! =< $16 #DIV/0! * UL = Upper Limit ** LL = Lower Limit District Size - Number of Students Between Indicator 19 500 1,000 5,000 => 10,000 Indicator 20 < 500 < 500 999 4,999 9,999 Ranges for Ratios Low High 7.0 10.0 11.5 13.0 13.5 5.0 22 22 22 22 22 14 500 1,000 5,000 => 10,000 999 4,999 9,999 5.8 6.3 6.8 7.0 14 14 14 14