Victoria Independent School District reported a “Superior” rating under the Texas Education Agency’s School FIRST (Financial Integrity Rating System of Texas) assessment for the 2023-24 fiscal year, Chief Financial Officer Michelle Yates told the board.

Yates said the district passed all four critical FIRST indicators required for a superior rating, including timely submission of required financial reports, an unmodified external auditor's opinion, compliance with debt agreements and timely payments to government agencies. "The School FIRST stands for Financial Integrity Rating System of Texas," Yates said while summarizing the program’s role in measuring financial management and solvency.

Yates told trustees that the district met solvency thresholds used by the program: total net position was positive, the district maintained at least the required days of fund balance (the presentation referenced a 75-day fund-balance threshold) and met cash-on-hand expectations (the presentation noted a 90-day cash-on-hand indicator for emergencies). She also reviewed other indicators tracked by FIRST including administrative cost ratio and students-to-staff ratios.

On the administrative cost ratio, Yates said the district narrowly missed full points on a single indicator by "three thousandths of a point," noting it cost the district two points on that specific measure but did not change the overall Superior rating. She said the district’s score historically has been high; at one point the district had "an A plus with a 98," and this rating continues years of superior FIRST performance.

Yates walked trustees through the types of expenses that are coded to administrative functions — items such as legal services, financial audits, election expenses and required public notices — to explain why that indicator can vary without indicating poor practice. She also noted that one FIRST indicator (budget-to-actual revenue variance) had not been assessed in recent years.

Board members thanked Yates for the detailed explanation; no public questions were raised after the presentation. The district’s packet and the CFO’s slides provide the specific indicator calculations and other supporting detail, Yates said.

Trustees were reminded that the FIRST rating is based on financial data and reporting for the 2023-24 school year and that administrative and operational decisions across many departments can affect the district’s FIRST score in future years.

The presentation and discussion were given in open session; board members did not take a separate action beyond receiving the report.