Lancaster ISD scores 88 on state financial rating; conservator and legal costs cited as point drivers

The public hearing on Lancaster Independent School District—s Financial Integrity Rating System of Texas report opened at 5:32 p.m., where finance staff told trustees the district scored 88 out of a possible 100 points on the FIRST rating for the 2022-23 audited year, a B-grade the presenter called "above standard."

Dana Shaw Moseley, Lancaster ISD finance staff, told the board the rating is based on the 2022-23 audited financial statements and that the district "passed on indicators 1 through 6, 16, 17, 20 and 21." She said Lancaster had 238 days of cash on hand in the general fund at fiscal year end and reported a total net position in governmental activities of $20,203,855.

The rating framework, Moseley explained, covers compliance, liquidity and solvency measures and compares district audited results to 19 indicators. Moseley said Lancaster received full points on several liquidity and compliance indicators and scored 4 out of 10 on a category driven in part by expenditures recorded in function 41, which she attributed to an on-staff conservator, a leadership coach for the board and legal fees. "We have a conservator on staff... and also, we have legal fees for the board that have drove the cost up, and then it lowers the value of the points that we can get," Moseley said, adding the conservator payment for the prior year was "roughly $14,000" and a legal-fees invoice was about "$47,003.51."

Trustees asked for clarifications during the public hearing. Trustee Cluis asked about Indicator 8, which measures current assets against current liabilities; Moseley said the district fell slightly short of the top score in the mathematical calculation for the account balances on the year-end books but emphasized that the shortfall was a function of timing on the ledger rather than a lack of cash. Trustee Whitfield pressed on data sources and whether the figures presented to trustees match the audited record; Moseley replied the FIRST score is produced by the Texas Education Agency from the district—s annual audit and annual financial report and she noted the 2022-23 audit is closed and those are audited numbers.

Conservator Doctor Francois, addressing the board later in the meeting, reiterated the district should move to complete required governance training quickly and observed that the conservator role itself is included in administrative costs that can affect FIRST indicators. "I do want Lancaster to be fiscally responsible," Francois said, and urged trustees to finish outstanding items so the district could reduce administrative fees reflected in future FIRST reports.

Moseley said Lancaster posted the required disclosures for superintendent and board reimbursements and reported no outside compensation, no gifts over $250, and no business transactions between board members and the district for fiscal year 2022-23. The public hearing closed at 5:52 p.m. with no public speakers addressing the FIRST report.

Why this matters: The FIRST rating is the state—s standardized financial accountability metric for school districts; scores influence public transparency and can affect community confidence and long-term fiscal planning. Lancaster—s 88/100 places it in the state—s "above standard" band but staff told trustees certain administrative costs contributed to point loss in one indicator and could affect future ratings if not addressed.

The district scheduled no formal action on the FIRST report at the hearing; Moseley said the report and supporting disclosures will remain available to the public.