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West Oso ISD receives 84 on Texas FIRST; auditors flag low cash reserves
Summary
At a first public hearing on the Financial Integrity Rating System of Texas, district staff reported an overall score of 84 — an “above standard” result — while noting weak cash-on-hand and liquidity ratios that kept the district from a higher rating.
West Oso Independent School District reported an 84 rating Friday in the Financial Integrity Rating System of Texas hearing, a score classified as “above standard.” Ms. Mendez, a district staff member presenting the report, told trustees the district met most FIRST indicators but scored poorly on cash-on-hand and current-asset liquidity measures.
The FIRST rating, established by Senate Bill 875 (1999), uses about 20 fiscal indicators to evaluate school financial health. "The district received an unmodified opinion," Ms. Mendez said, referring to the external audit, and noted the district submitted its annual financial report on time. "However," she added, "the TA expects you to have 90 days of current cash or investments and we didn't. We had a month and a half of current cash and investments." The district was scored 4 out of 10 on the cash-in-hand indicator and 2 out of 10 on current assets-to-liabilities (ratio reported as 1.3382; a ratio of 3.0 would have earned full points).
Why it matters: FIRST ratings influence public transparency and can affect community confidence and future fiscal planning. The district's score rose from 72 last year to 84 this year, but the shortfall in liquid reserves and lower liquidity ratios were called out repeatedly in the presentation. Ms. Mendez also walked the board through other indicators the district passed, including timely payments to TRS, TWC and IRS, an unmodified audit opinion, and long-term liabilities-to-assets measures. She said the general fund revenues exceeded expenditures for the year, which contributed to a positive fund balance change.
District staff provided several numerical details: the district received 4/10 on the cash-in-hand measure (about 1.5 months of cash and investments), 2/10 for current assets-to-liabilities (ratio 1.3382), 10/10 for revenue exceeding expenditures, and 10/10 for long-term liabilities to assets. Ms. Mendez noted the district’s overall FIRST score of 84 compared with 72 the prior year and pointed trustees to additional disclosure tables (superintendent and board travel/other compensation) filed with the FIRST report.
Trustees asked clarifying questions during the presentation. Board member Gutierrez asked for definition of the Foundation School Program; Ms. Mendez replied, "That's the money that we received from the state." No formal board action was taken at the hearing; Ms. Mendez concluded by offering copies of the report for public viewing in the hallway and asking for questions.
The district presentation also included historical FIRST reporting charts and an explanation that the FIRST report is retrospective — for example, the January 2024 filing covers the 2021–22 fiscal year. Ms. Mendez invited trustees and the public to review the audit and contract documents posted with the report.
Trustees plan to use the audit and FIRST details in budget discussions and long-term planning to address the liquidity shortfalls noted in the hearing.
