Santa Fe ISD's board was told the district earned a 92 out of 100 on the Texas School FIRST financial integrity rating, a score officials said qualifies as an A, or "superior achievement." Alex Sanchez, who led the presentation, said the district passed all five critical indicators required by the system and improved from a 79 (a C) the previous year.

"Santa Fe ISD passed all those critical indicators, and we actually scored a 92 out of a 100 points, which earned us a rating of A or superior achievement," Sanchez said. He told trustees most deductions were tied to solvency indicators that evaluate fund balance, operating cash reserves and assets versus liabilities.

The board also reviewed the district's external audit for fiscal 2024-25. Sanchez said Mason Associates provided a nonmodified opinion and that the audit contained no material misstatements or technical findings this year. He said the audit report will be finalized as a booklet for trustees and the public.

Sanchez described recent cash-flow actions: the district used a $2.2 million line of credit to bridge timing differences caused by changes to homestead exemptions and state payment schedules. He said the $2.2 million increased the reported fund balance on paper but will be repaid, and estimated the district's fund balance at roughly $15.9 million (about 3.7 months of operating expenses), noting the number was an estimate to be finalized in the audit booklet.

"This year our auditors provided a nonmodified opinion," Sanchez said. "We had no findings whatsoever on the financial statements." After discussion, a trustee moved to approve the 2024-25 audit; the motion passed unanimously.

Trustees asked for and received clarifying information about the composition of fund balance and how maintenance tax notes and the line of credit affected reported reserves. Sanchez said the district plans to pay down the line of credit in the coming months and will provide exact numbers when the finalized audit booklet is available.

The board did not take further financial action at the meeting beyond approving the audit; Sanchez said he will return with the completed audit booklet and any follow-up information trustees request.