001Good evening. The time is now 5:40. Um, today's Monday, December 15th, 2025. This is a public hearing for the Alice ISD board of trustees to be held in the Alys administration building boardroom number two, Texas 332. This meeting is now called to order and we will establish a quorum. Present at this meeting is Dr. Fino, myself, Jennifer Ba, Mr. Herman Ariano. Absent is Mr. Cedro Samura. Present is Mr. Adrian Pñena. Present is Miss Deba. Present is Mr. Cody Reed and Mr. Lee. So, a form has been established in accordance with the Texas Open Me section 551.443 of the Texas Government Code. On to item number three, the pledge to the United flag. flag to the flag of America and to the republic for which it stands. One nation under God, indivisible and justice for all
002the flag to the Texas one state one and indivisible. to item number four, public comment. At this time, did anybody sign up for the public comment for this public hearing? Thank you. On to item number five, the public hearing 5A, the financial integrity rating systems of Texas. Dr. >> Yes. Good afternoon, members of the audience. This evening, we will have Melissa Sanchez present the first report. We are required by the Texas Education Agency to provide the school board um information on the report as far as our financial status. She has posted in accordance with law in the last couple of weeks in our local newspaper announcing our public hearing. >> Good evening members of the audience, members of the board, Dr. We're here because of the the public hearing is to go over our 2025
003first ratings. The first rating measures the quality of a school district's financial management and reporting. The ratings issued in 2025 covers the school year 2023 2024 financial data. LSISD received the highest rating of superior with a letter grade of A and American score of 96. The first report is consider it's consistent and consists of 21 indicators. These indicators review the audit results, cash flow, debt levels, budgeting and financial stability. Of these 21 indicators, four are critical, meaning if you don't pass any of these four, you automatically get a failing first rate. There are 10 solveny indicators, seven financial competency indicators, and within those 21 indicators, there's six that have ceilings. So, if you don't meet the ceilings, they have maximum uh scores you can. And it's the letter grading is if you have an A,
004it's between 90 and 100 points. A B is between 80 and 89. A C is 70 to 79. in and if there's anything under 7. So the four critical indicators are shown here. We did pass all of them. Uh the first one was was the financial report submitted to TDA within 30 days of the November 27th or January 28th deadline which we did submit it on 123 2025. So we passed. Was there an unmodified opinion in the AFR on the financial statements as a whole? Yes, we did receive an unmodified opinion which basically is a clean audit with no material issues. Was the school district in compliance with payment terms of off debt agreements at fiscal year end? So, did we pay all our bills or obligations on time? And yes, we did. And four
005is did the school district make timely payments to TRS, Texas Workforce Commission, Internal Revenue Service, and other governmental agencies? And yes, we did. so that we hold on to our solveny indicators which measure the district's ability to pay its bills and meet financial obligations. Number five, was the total position in government governmental activities column in the statement of net position greater than zero hours? What? So we passed. Was the average change in assigned and unassigned fund balance over two years less than 25% decrease or did the current year assigned and unassigned fund balance exceed 75 days operational expenditures and we did pass this our decrease was only 0.25%. Number seven, was the number of days of cash on hand and current investments in the general fund for the school district sufficient to cover operating expenditures
006excluding facilities acquisition and construction. So we did have more than 75 days. We had 165 days of cash on hand. So we got the full 10 points. Number eight, was the measure of current assets to current liabilities ratio for the school district sufficient to cover short-term debts? We got all 10 points there. Number nine, did the school district's general fund revenues exceed or equal or exceed expenditures excluding facilities acquisition and construction? So basically, did we spend more than we earned? And no, we didn't. We earned more than we spent. So we got all 10 points there. Number 10 was not being evaluated, so we automatically got the 10 points. Um, number 11, was a ratio of long-term liabilities to total assets for the school district sufficient to support long-term solveny. And we got all 10
007points there. It's basically asking, it's the same thing as if your mortgage exceeds your actual market value of your home. And so we have a 4445 which anything less than a one would get you the is what you want. So you got 10 points there. What is the correlation between future debt requirements and the district's assessed property values. This is where we got only eight points not the full 10 because we are a little bit above the four which is required for the 10 points. We were at 4.686 or 4.6068. 6068. And so this basically is like how much debt do we have and can our tax base cover that debt. So this really depends on things outside of this district's control like the property values, the growth or you know homestead exemption, all that
008kind of stuff has an impact on this stuff. U number 13. Was the school district's administrative cost ratio equal to or less than the threshold ratio? Here we also 10 I mean eight out of the 10 points or eight out of eight. >> We got eight out of 10 >> cuz our our uh ratio was 12.66% and we needed to not be below 11.51. So we were over that. So we we only got points 14. Did the district not have a 15% decline in students to staff ratio over 30 years? If the student enroll did not decrease, the school district will automatically pass this indicator. And yes, we only had a decline of 15%. 0.15, so not even 15, not even close to 1%. Um, number 15, these are your financial competators. Number 15 is
009was the schools the school district's ADA within the allotted range of the district's bannual pupil projections submitted to TEA and yes they were within that we had projected 3,920 and we actually had 3,92 so we got all five points there. That one only had five points not 10. Um, number 16. Did the comparison of public education information management system or teens data to like information in the school district's AFR result in a total variance of less than 3% of all expenditures? We had no um differences between the data and teens and our audit. So, we we passed that. Number 17. Did the external independent auditor report that the AFR was free of any instances of material weaknesses and internal controls over financial reporting and compliance for local, state, and federal funds? We passed that indicator
010as well. Did the external independent auditor indicate the AFR was free of any instances of material non-compliance for grants, contracts, and laws related to local, state, and federal funds? We got all 10 points there. Number 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 law and laws and rules that were in effect at the school districts this school year end. And yes, we did. So, we got all five points for that one. Number 20. board members discuss the district property values at a board meeting within 120 days before the district adopted its budget. Yes, we did. So, we passed that. And 21, did the school district receive an adjusted repayment schedule for more than
011one fiscal year for over an overallocation of FSP funds because of financial hardship? And no, we didn't. So a no means pass that indicator. And so those were the 21 indicators as you have to have some disclosures as well as those indicators out there. So one of them is a superintendent contract and that can be found on the outside city website that's available to for anybody to view. Uh, another disclosure is the reimbursements received by the superintendent and board members and these are all the amounts that were reimbursed to any board members for travel to conferences. Um, another disclosure is outside compensation and or fees received by the superintendent for professional consulting and or other services and we didn't have anything so that is zero. um gifts received by executive officers and board members and
012first degree related to any fairly so nothing to report on this one and any business transactions between school district and board members and again there was nothing today so report and that is the end of that if y'all have any questions you can ask me now you do have a book and it has detailed information on how all the indicators are measured in the back calculations. Anyone interested? So, does anybody have any questions? Thank you very much. And commendations. I believed has had an A rating for the last 10 years. So, board members and the CFO's office, the business office, thank you for your work. Thank you. Thank you. Thank you. On to item number five. Ajourn. The time is now 5:52 p.m. and still Monday, December 15, 205. We need a snowy first.