CFO: Austin ISD earns 'superior achievement' FIRST score; missed one compliance indicator due to a late sales-tax payment

Katrina Montgomery, Austin ISD's chief financial officer, briefed trustees on the district's Financial Integrity Rating System of Texas (FIRST) results during a public hearing on Thursday. The district reported a score of 95 in the 2024'25 FIRST assessment, which Montgomery described as "superior achievement" and the highest score in five years.

Montgomery said the FIRST rating covers 21 indicators drawn from audited financial statements and other compliance measurements, and that the 2024'25 score is based on financial activity from July 2023 to June 2024. She highlighted improvements in several indicators, including the administrative-cost ratio, which fell to 0.0835 and compares favorably to the TEA threshold of 0.0855. Montgomery credited reductions in administrative staff and central coding practices for the improvement.

She said one compliance indicator moved from "passed" to "failed" between the 2023'24 and 2024'25 assessments after the district missed a sales-tax payment in November 2023 by one day. Montgomery told trustees the payment issue occurred once in November 2023 and has not recurred since.

Trustees asked for peer-comparison context; Montgomery said she would provide supplemental demographic and enrollment information about peer districts such as Cy-Fair and Northside to help interpret the charted comparisons.

Montgomery also noted the district's high bond ratings from Moody's, S&P and Fitch and said professional organizations had awarded the district certificates for financial reporting.