001It is 6:30. A quorum of the board is present. This meeting has been duly called and the notice of the meeting has been posted in accordance with Texas Open Meetings Act, Texas Government Code 551. Will you stand and pray with us? >> [snorts] >> Heavenly Father, we thank you for this day. We thank you for who you are and uh we just pray right now that you'll be with us. God, I pray that you'd always lead and guide everything that we do, everything that we say and give us the wisdom that we need uh to lead this district well. We thank you for all of our students, all of our staff, all of our parents and families. God, we thank you for this community. Be with us. It's in Jesus' name. Amen. All right, and
002then the pledge. >> [snorts] >> I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. Honor the Texas flag. I pledge allegiance to thee, Texas, one state under God, one and indivisible. All right, I don't believe there's any public comment. All right, therefore we will move to public hearing. Uh the Texas Education Agency Financial Integrity Reporting System of Texas uh rating report uh and it is 6:31. Thank you. And so, you have in front of you the paper copy of the first report and then I also have it on the screen since this is a public forum and there is opportunity for the public to ask questions. Uh first off, if you'll just flip
003to the second page, the pages two through five detail the overall state of Texas ratings for the first report. And I guess let me back up. The first report, it is the Financial Integrity Rating System of Texas. So, it's basically rating every school district on how they steward their finances. And so, um as you can see on the cover page, we passed this year with an A, which is a superior achievement. Um and we our total score was a 96. Now, looking at the overall statistics for Texas, um I just kind of want to highlight that 85% of all districts in Texas received an A, superior achievement. There was only 1.77% of districts in Texas that got an F or a substandard achievement. So, that just tells me overall that Texas school districts are doing
004pretty well with their finances and handling the business that um they're given. And so, then if you'll go to page six, this is where it gets into Maypearl ISD's scores. And uh the way we're scored on this uh rating system is based on 21 indicator tests. Seven of these 21 tests are ceiling indicators and that means that if you fail to meet the criteria of um the ceiling indicator, there's a maximum number or a rating that you can achieve. Um and so, I'm proud to say that Maypearl passed all the ceiling indicators. And so, now I'm going to just go through and highlight some of the ceiling indicators and areas that we excelled in and then uh the two areas in which we lost a couple points in. And then um and then uh we'll
005look at the history and all that as well. So, now if you'll turn to page 13, and those numbers are on the bottom right corner, very small though. So, on page 13, looking at uh indicator test number two, um this is going to be talking about the AFR and the annual financial report that the auditors conduct and if there was an unmodified opinion. So, as you can probably recall from the last board meeting we had, the auditors came and presented the fiscal year 25 audit and he made a mention that there was an unmodified opinion and that's what you like to see. So, the same was true for our fiscal year 24 audit, which is what this TEA report rating is based on. So, that's where we kind of get into the weeds, but so
006this whole rating is based on finances from the fiscal year of 2023 to 2024. And so now, if you'll turn to page 15, uh this is indicator test number four, and this was a ceiling indicator. And so, it's the first ceiling indicator, and it's based on making timely payments to the TRS, TWC, IRS, and other government agencies. So, we did make all those timely payments, and so we passed this indicator test. And if you'll just flip over to the next page, 16, this is a ceiling indicator, and it checks to see if your total net position is greater than zero. So, as you can see, our net position, as you look at those tables down below, it is greater than zero, so it was true. And so, we passed that ceiling indicator. Then if you'll
007turn to page 18, I'm supposed to be also turning this page here. On page 18, this is indicator test number six. It's uh testing you on the change in your fund balance and making sure that it was less than a decrease of 25%. So, over a 3-year period, did your fund balance, you know, not decrease more than 25%? So, the, you know, calculations that they determine at the bottom here, over a 3-year period, our fund balance only decreased 1.47%, so we passed. Then if you'll turn to page 32, all right, so uh for indicator test number 16, this one is measuring whether the data you give TEA from your annual audit lines up with the data that's reported in the PEIMS submission. Um and so, it gives you the criteria down there on their formula.
008Our number, our numerical difference, it was so minuscule that they basically said it was zero. Um difference between what was reported from our audit and the PEIMS submission. And so, it's less than the um acceptable level of variance of 3%, so that was a pass as well. All right. Then we just flip over to the next page, uh 33. This uh indicator is um testing us on if the auditors found any instances of material weakness. Uh so, in the finance world for school districts, the word material weakness and our findings is a dirty word. Uh we did not have any findings on the fiscal year 24 audit, so this one was passed. And then if you'll turn to page 36, all right. This is indicator number 20. This is a ceiling indicator that asks if
009um we brought the board information concerning the local, state, or federal funding before adopting the budget. And so, of course you know, we always typically bring the board at least two budget workshops in the summer and compensation packages and things like that, so this was a past indicator. Then if you flip to the next page, 37, the final ceiling indicator has to do with the financial hardship repayment plans to the state. We have not had to pay back any funding for 2023-2024, so this was passed. And then now, if you'll actually go back in your booklet to page 26, so 26 is indicator number 12. Page 26 is on indicator number 12. This is the um indicator which we lost two points, so there's a total possible points of 10, we got eight. And so,
010it has to do with our comparison of future debt to our assessed property value. And this is um you know, what we were talking about, the only way we could really make up these two points would be to significantly reduce our debt or to significantly increase our property value. So, this one is essentially out of our control unless something drastic were to happen. And then if you just flip over to page 27, yeah, yeah. What is the optimal ratio that they want there? Do you know? So, I don't see it correlating. And their formulas, I mean, they kind of make no rhyme or reason to me. Um but their determination of the points down below is they want you to have greater than or less than four. Mathematical breakdown of their formula there that's relating
011to all those numbers. Okay. I was doing some of the math like just to see like what it would take to get us into that 10-point range. >> Right. And I mean, we would need to reduce our long-term liabilities by, I would say, um 12 mil or yeah, 12 million. Or we would need to have a major gain in assessed property value of like 250 th- or 250 million dollars. So. Yeah. Proprietary formula and Right. Okay. Yeah. And then on this next page, on 27, uh this is a indicator in which it's testing your um ratio between the districts' administrative costs to their ADA. And so, this is where we um lost two possible points, so we got eight out of 10. Um on that little table, if you look at the top heading, the
012eight-point mark, and then that 1,000 to 4,999 ADA size, that's where we meet. So, we are our value of administrative cost to our ADA is .1197. And so, we were off just by .0046. Yeah, so close to getting that 10 points. What we have done though, uh to kind of help um mitigate that in the future, so this was 2 years ago, right? So, you know, based on last year's audit and what we'll hopefully see in the next first rating, is that um we're reducing those administrative costs, things that are uh expenditures related to the general administration office and payroll for um the general admin uh function. So. That's where we lost two points there, so our total score ended up being a 96 out of 100. And so, that still gives us that A
013superior achievement. And so now, if you'll turn back to page 10, page 10 is just a first rating history for the district, and it we go back all the way to 2005-2006. And you can see the long history of superior achievements there. Uh the one recent year of 2022-2023 where we did dip down into the meets standard achievement. Um but other than that, we have been superior achievement for a long running line. And that meets standard, there was an extenuating circumstance that year, if I remember correctly. >> Yeah, the that year was um there was an oversight with uh not making a budget amendment in the child nutrition fund. >> Right. Um we had the revenue to cover the expenditures, it just wasn't administratively made in a board meeting. And so, they dinged us on
014that in the audit that year. >> It was one of those ceiling deals, right? Where we could only >> it was a ceiling indicator, yeah. So, it was 10 or zero? Is that what that means? Yeah, so that that was like you either get all the points for that indicator or you don't, and if you don't, they give you a highest score you can achieve, no matter what the rest of your scores look like. And so, that year we um I think it the ceiling indicator for it was 79, and so that's what we had to have on our fine or our first report for 2022-2023. The next page, on page 11, These are some regulatory items that we have to discuss. Um so, the superintendent's contract, um since we're kind of in limbo right
015now, um we still have the former superintendent's contract on Maypearl ISD website under the financial transparency page. Um and then for the 12-month period ending in August 31st, 2024, we're um you know, making mention of all the reimbursements made to superintendent and board members. The only uh board member is listed there, Trish Ickerd, in which the district reimbursed her total of $1,579. But, I know with that circumstance, that was a lot of that was a SLI conference in which she had actually gotten SLI and TASB conference that she had gotten a um what do you call it? Uh kind of like a scholarship or like a she got some money that was reimbursable to the district for that. So, she paid it up front, the district reimbursed her, but then the district got a check
016back from TASB. And then the rest of that, there was no board members that had any gifts received. Um and there was no business transactions between school district and board members. And so, that pretty much concludes the report. Um are there any questions from you? And this is all um this is a report that TEA mandates districts go over in a public forum with the public just so that way we're being fully transparent with, you know, how they view our finances. All right. So, I guess what were the couple of changes that we can make on the administrative, that one that was an eight? So, there was um you know, some expenditure items mainly in payroll that we were able to reclassify um out of the administrative function code because it dealt more with curriculum.
017And so, we put it instead of being in a 41 administrative function, we put that into a 21 curriculum function. Yeah. Cool. Anything else? Good. Thanks, Josh. Any other public comment around the public hearing of the first report? Okay, good deal. Uh we have nothing for our closed meeting. Uh we have no actions to take today. So, there's no dissent, then we will adjourn at 6:47. Thank you.