Mesquite ISD posts an A on School FIRST report; officials detail financial position

Mesquite Independent School District officials told trustees on Oct. 6 that the district earned an "A" (94 of 100) on the Texas Education Agency's School FIRST financial accountability rating for fiscal year 2024.

Mr. Prado introduced the financial presentation and said the district met all four critical indicators and ceiling indicators that affect the maximum possible score. Presenters reported a positive net position of roughly $603.5 million and said the district's fund balance as of June 30, 2024, covered about 110 days of operations.

District staff noted that some short-term liquidity calculations used in indicators exclude longer-term investments; presenters said about $39.3 million in long-term investments could be liquidated if necessary but are not included in certain formulae because they mature beyond a one-year horizon.

The School FIRST system evaluates 21 indicators covering reporting timeliness, audit opinions, debt compliance, payroll liabilities and a range of fiscal ratios. The district met indicator thresholds for administrative-cost ratios and other measures, and staff said revenues exceeded expenditures by approximately $6.6 million in the reviewed year.

Presenters directed trustees to the required public disclosures, including a link to the superintendent's employment contract and the School FIRST materials supplied by the TEA. The public hearing on the district's 2025 financial management report was opened and closed with no public comment.

Trustees asked clarifying questions about liquidity measures and were told that long-term investments are excluded from the specific current-asset calculations but would be available if the district needed cash.

The district posted the report to comply with the Texas Administrative Code and to fulfill transparency requirements for school financial reporting.