Week+4+Part+1-EDLD+5342


 * __Week 4 Part 1-EDLD 5342__**

The three most important components of FIRST, Financial Integrity Rating System of Texas, in my opinion are the following: its purpose, its reporting system, and its requirements of school boards to be involved and hold a public meeting so that the community can become aware of the school district’s financial management system. Because the most important function of schools is to educate students, the purpose of FIRST is to ensure that districts are working effectively and efficiently; managing resources responsibly so that allocation to instructional practices are kept as focus. The purpose of the rating system is to remain in compliant with Texas Education Code (TEC), Chapter 39, Subchapter D, which establishes that every public school district and charter school must be financially accountable. The titles of ratings are Superior Achievement, Above Standard, Standard, and Substandard. While reviewing chapter 109 of the Texas Administrative Code concerning the provisions for FIRST, we found that the requirements for the ratings have changed slightly since 2002. The Commissioner of Education at that time added additional factors to the indicators that were already part of the system. There are indicators that each district or charter school must comply, and a score is given.

Additions from Jeff (Great job Scott) //& Rob// The three most important components of FIRST, Financial Integrity Rating System of Texas, in my opinion are the following: its purpose, its reporting system, and its requirements of school boards to be involved and hold a public meeting so that the community can become aware of the school district’s financial management system. Because the most important function of schools is to educate students, the purpose of FIRST is to ensure that districts are working effectively and efficiently; managing resources responsibly so that allocation to instructional practices are kept as focus. The purpose of the rating system is to remain in compliant with Texas Education Code (TEC), Chapter 39, Subchapter D, which establishes that every public school district and charter school must be financially accountable. The titles of ratings are Superior Achievement, Above Standard, Standard, and Substandard. **When this rating system is used in conjunction with the AEIS, we can get a great picture of the district and its ability to provide the best education for the value of their money. Dr. Stephens made it clear that, as a Superintendent must monitor both accountability systems so that any concerns can be met, and that all adjustments can be implemented to better the district.** //**The transparency of the comprehensive instrument (and its components) helps ensure accountability in both the local management of funding, and the decision-making process itself. This will both encourage and ensure that funding is maximized for instructional purposes.**// While reviewing chapter 109 of the Texas Administrative Code concerning the provisions for FIRST, we found that the requirements for the ratings have changed slightly since 2002. The Commissioner of Education at that time added additional factors to the indicators that were already part of the system. There are indicators that each district or charter school must comply, and a score is given.

From Rob:

My district landed at the very top of the Above-Standard Achievement category. If I read the report correctly, we were actually hit in the fund balance category. We received no points whatsoever, thus keeping us from the Superior Rating. Believe it or not, we got hit for having too much money in the fund. This is certainly far more enviable than the opposite, but an issue that has to be monitored none-the-less. Below are my components.

Three most important components of the Financial Integrity Rating System of Texas:

//Justification//: It provides a measureable instrument through which a district can measure its “financial health” based on components the State of Texas sets forth.
 * **Accountability**- ensures that districts have a valid, objective system to measure financial compliance and efficiency.

//Justification//: The system is designed to both encourage and ensure that districts are maximizing funding for **instructional purposes**.
 * **Monitoring**- it develops an instrument with measureable components and weighs them in order to paint an overall financial picture while setting out specific objectives that districts can work on to improve their ratings.

//Justification:// Helps ensure accountability in both the local management of funds, as well as accountability in the decision-making process as to how funds are actually spent.
 * **Disclosure**- It sets forth a **transparent** accountability rating that is accessible to the public. This allows stakeholders to view financial ratings in easy to understand “layman’s terms.

From Shirley Hitt: Great info from all of you. I added a little more info to what I had posted earlier: FIRST is a financial rating system used in Texas school districts, and the primary goal of Schools FIRST is "to achieve quality performance in the management of school districts' financial resources, a goal made more significant due to the complexity of accounting associated with Texas' school finance system." It's a guide/set of criteria for districts to use to stay in compliance with state standards and to develop sound financial management processes and practices for the district. The Financial Accountability Rating System is put in place to encourage districts to funnel a maximum amount of their revenues to direct instructional purposes. The system also focuses on the local control/management of the district budget as well as the local decision-making processes in place with regards to the budget and how funds are allocated.

The most important components of the FIRST system in my opinion are 1) financial management practices of a district, 2) local decision making processes, and 3) disclosures of specific information. It's important to know the accountability system you are using (just as it is important to know our campus/district accountability system (AEIS) so that we can develop and implement action plans); with the FIRST system, you know what your district should be striving for, when/why/how to make adjustments, to be in a constant state of evaluation (monitor), and to be ready and able to present and discuss/explain/justify the financial standing of the district. It's a great "check-and-balance" system for school districts to use year round.

At each monthly Board meeting, our CFO reports and presents budget updates. These reports have been presented to the supt prior to the Board meetings. This allows the supt to know where we stand financially at regular "small intervals" of time throughout the year. It also allows the supt to be able to answer any questions the Board has about the budget throughout the year. Additionally, this practice allows the supt and CFO to know very quickly if we are having problems in the budget; they can find solutions quickly and move forward. It wouldn't be very prudent to wait until budget problems built up over a period of months before the supt was aware. That would be much more difficult to overcome. Regular monitoring of the budget and meeting with the CFO is critical to the budget/financial processes of any district.