Alice ISD earns ‘Superior’ financial rating; board reviews disclosures

Alice Independent School District reported a “Superior” rating under the Financial Integrity Rating System of Texas (FIRST) for the fiscal year covered by the Texas Education Agency’s 2024 rating, district Chief Financial Officer Troy Villan told the board during a public hearing. Villan said the district’s numerical score was 98 out of 100 and that the district met the required critical, state and competency indicators used by the rating system.

The rating, Villan said, covers district financial activity for the 2022–23 fiscal year and is issued by the Texas Education Agency’s FIRST framework. Villan described the FIRST framework as containing 21 scored indicators (five “critical” indicators that will cause a district to fail the FIRST rating if not met, nine state indicators, six financial competency indicators and five ceiling indicators used to cap scores when certain criteria are not met). Villan said the district met the five critical indicators and received high scores on most measures presented.

Villan reviewed specific indicator outcomes the district received as presented to the board, including on timely filing of the annual financial report (AFR), receipt of an unmodified auditor’s opinion, payment compliance for benefits and payroll-related obligations, and measures of short-term liquidity, long-term liabilities and general-fund solvency. He also summarized results of financial-competency checks such as data-file submission, variance testing of PEIMS/AFR data, and independent auditor findings related to internal controls; those checks were reported as passing in the presentation.

Villan also presented routine public disclosures the district is required to make. As of Aug. 31, 2023, he reported reimbursements received by the superintendent and board members (items shown in the presentation as: superintendent $4,996.13; several trustees listed with reimbursements ranging from about $2,162.79 to $5,085.13). He said outstanding compensation or fees received by the superintendent for outside consulting were zero and that gifts and business-transactions disclosures for executive officers and board members were zero.

The public-hearing presentation included a note that required financial information has been posted to the district website in accordance with Texas law and agency guidance. Villan invited questions; none were raised during the hearing.

Why it matters: FIRST scores are used by the Texas Education Agency to evaluate school-district financial management and reporting and can affect public confidence and oversight. The board received the report at a public hearing; no policy votes were taken as part of the FIRST presentation.

Details and context: The FIRST framework places particular weight on the five critical indicators (compliance with reporting deadlines, auditor opinion, timely remittance of payroll-related withholdings and other items). Villan’s presentation listed indicator-level results and noted the district posted required financial materials on its website as required by statute and TEA guidance.

Provenance: Excerpts of Villan’s presentation and the item’s supporting slides were presented during the public hearing portion of the meeting and are on the public record.