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Castleberry ISD scores 74 on School FIRST; CFO warns solvency drove drop
Summary
Castleberry ISD received a 74/100 (grade C) School FIRST financial rating driven by three solvency indicators — cash on hand, liquidity and general‑fund revenues vs. expenditures — district Chief Financial Officer William Wooten told the board. He outlined immediate reserve targets and operational steps to rebuild cushion.
William Wooten, the district's chief financial officer, told the board that Castleberry ISD scored 74 out of 100 on the state's School FIRST financial accountability system, a 20‑point decline from the prior year and a C rating.
"Out of a possible 100 points, we scored 74, which results in a C," Wooten said. He traced the drop primarily to three solvency indicators: cash on hand, current assets to current liabilities (liquidity), and whether general‑fund revenues equaled or exceeded expenditures. Wooten reported 38 days of cash on hand and said audited numbers show a decline in general‑fund cash from $10.9 million to $6.1 million — a $4.8 million drop tied to reimbursements, ESSER salary adjustments and timing of federal drawdowns as of the June 30 snapshot.
Wooten emphasized that the rating is based on lagging audited data and described the district as compliant on critical indicators and strong on financial‑competency measures. "We're really strong on the competency side, but we're going to work on the actual solvency," he said, noting the district received full marks on audit timeliness and other compliance checks.
To address the solvency shortfall, Wooten recommended immediate and multiyear steps: set a fund‑balance target (45 days in year 1, 55 in year 2, 65 in year 3), tighten nonessential spending, review payroll vendor payment cycles, and reexamine contracts for duplications within 45 days. He also said the general fund absorbed approximately $666,000 in ESSER salaries that were moved back to the general fund by auditors and that federal reimbursements delayed until after fiscal year‑end reduced available cash at the snapshot date.
The board did not take action on the rating itself; Wooten and the superintendent said they will continue regular scorecard reporting and nine‑week monitoring to track progress.
What happens next: the district will monitor cash and liquidity metrics on the superintendent scorecard and present updates to the board in regular intervals.
