CASTLEBERRY ISD scores 74 on TEA School FIRST; CFO flags solvency as main concern
Summary
William Wooten, chief financial officer for CASTLEBERRY INDEPENDENT SCHOOL DISTRICT, told the board the district scored 74 on the Texas Education Agency's School FIRST financial accountability rating, a 20-point drop driven largely by solvency measures.
William Wooten, chief financial officer for CASTLEBERRY INDEPENDENT SCHOOL DISTRICT, told the board the district's School FIRST financial accountability score for 2024'5 is 74 out of 100, a decline from 94 the previous year.
Wooten said the rating is based on audited financial data for 2023'4 and that the district passed all critical compliance indicators but lost points on solvency measures. "Out of a possible 100 points, we scored 74, which results in a C," he said.
The nut graf: the decline reflects short-term cash and liquidity pressures captured by three solvency indicators (days cash on hand; current assets to current liabilities; and whether general fund revenues met or exceeded expenditures). That solvency drop, Wooten said, accounted for nearly all of the 20-point decline in the overall School FIRST score.
Wooten gave specific causes and numbers: the district reported 38 days of cash on hand at the June 30 audit date (earning 2 of 10 points on that indicator), a current-assets-to-liabilities ratio of about 1.86, and a general fund that spent more than it collected for two consecutive audited years. "General fund cash fell from $10,900,000 to $6,100,000," he said, summarizing the auditor's finding of a $4,800,000 drop in one year; he added that general fund spending exceeded budgeted amounts by roughly $3.6 million (2022'3) and $4.8 million (2023'4) based on audited results.
Wooten described contributing items the auditors identified: about $666,000 in ESSER-related salary adjustments that were ultimately recorded to the general fund and timing differences from federal grant reimbursements that left cash outflows recorded before reimbursements were received. He emphasized that School FIRST looks at a single-day snapshot (June 30) and so timing of drawdowns and reimbursements affects the solvency indicators.
On next steps, Wooten described a mix of immediate and multiyear actions intended to rebuild reserves and improve liquidity. Near-term "quick wins" proposed for fiscal 2026 include establishing a minimum fund-balance target (proposed: 45 days in year 1, 55 days in year 2, 65 days in year 3), continuing routine financial briefings to the board, tightening expenditure controls and discouraging nonessential spending, and a 10% reduction applied to payroll budget lines used in the 2025'6 budget. "We believe the 45 days is achievable," he said.
Longer-term steps Wooten described include better cash and liquidity management, review of payroll and vendor payment cycles, contract reviews (to be conducted with the superintendent and staff in the following 45 days) and maintaining a 3'5 year financial-forecast model tied to enrollment and property-value assumptions. He also said district leadership has met recently with the district auditor and will continue six-week finance review meetings with the superintendent.
Board discussion after the presentation produced no formal motions or votes on the financial report itself; Wooten's presentation was received for discussion. No board member challenged the auditor's numbers during the public hearing; the board did not adopt any new policy or binding financial instruction during the presentation.
Ending: Wooten closed by returning the public hearing to the vice president and noting staff will continue to report progress on solvency items at future board meetings.
