Rating Worksheet Calculations
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Indicator
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Calculation Defined
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Data Source(s)
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CRITICAL INDICATORS
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1
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Was The Total Fund Balance Less Reserved Fund Balance Greater Than Zero In The General Fund? (At Fiscal Year End)
(School districts must legally have a fund balance to ensure adequate funding for operations. This indicator is designed to ensure that the district has a positive amount of fund balance (savings) that is not designated or "reserved" for a specific purpose.)
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Calculation ==>
A > 0
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Where A = [Aggregate of Unreserved, Designated Fund Balance and Unreserved Undesignated Fund Balance in General Fund at June 30 or August 31, depending on Fiscal Year End]
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2
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Was the Total Unrestricted Net Asset Balance (Net of Accretion of Interest on Capital Appreciation Bonds) In the Governmental Activities Column in the Statement of Net Assets Greater than Zero? (If the District's Five-Year Percent Change in Students was a 10% Increase or more, then answer Yes)
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Calculation ==>
A + B > 0
or
((C - D) / D) X 100 > 10%
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Where A = [Total Unreserved Net Asset Balance in the Governmental Activities Column in Exhibit A-1, Statement of Net Assets in the Annual Financial Report]
B = [Accretion of Interest for Capital Appreciation Bonds]
C = [Number of Students In Year 5 From Base Year]
D = [Number Of Students In Base Year]
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3
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Were There No Disclosures In The Annual Financial Report And/Or Other Sources Of Information Concerning Default On Bonded Indebtedness Obligations?
(This indicator seeks to verify that the district has paid its bills/obligations on bonds issued to pay for school construction, etc.)
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No calculation involved
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Annual Financial Report, Schedule L-1, "Required Responses to Selected School First Indicators - electronic only"
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4
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Was The Annual Financial Report Filed Within One Month After November 27th or January 28th Deadline Depending Upon The District's Fiscal Year End Date (June 30th or August 31st)?
(Did the district file on time?)
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[Date Received] <= [Due Date]
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[Date Received]=
Stamped Received Date of Annual Financial Report at TEA
[Due Date]=
Fiscal Year End date (in FIRST) + Submission Deadline in Days After Fiscal Year End (in FIRST)
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5
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Was There An Unqualified Opinion in Annual Financial Report?
(Did the district receive a clean audit? A "qualification" on the financial report means that the district needs to correct some of its reporting or financial controls. A district's goal is to receive an "unqualified opinion" on its financial report.)
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No calculation involved
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Annual Financial Report, Schedule L-1, "Required Responses to Selected School First Indicators - electronic only"
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6
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Did The Annual Financial Report Not Disclose Any Instance(s) Of Material Weaknesses In Internal Controls?
(A clean audit of the district's financial report would state that the district has no material weaknesses in internal controls. Any internal weaknesses create a risk that the district may not be able to properly account for its use of public funds, and should be immediately addressed.)
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No calculation involved
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Annual Financial Report, Schedule L-1, "Required Responses to Selected School First Indicators - electronic only"
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FISCAL RESPONSIBILITY INDICATORS
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7
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Did the District's Academic Rating Exceed Academically Unacceptable?
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No calculation involved
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This data will be downloaded from AEIS.
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8
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Was The Three Year Average Percent Of Total Tax Collections (Including Delinquent) Greater Than 98%?
(This indicator measures the district's success in collecting the taxes owed to it by the community's businesses and homeowners, placing a 98% minimum collections standard. The district must collect 98% or more of its taxes, including any delinquent taxes owed from past years.)
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((A / B) X 100)
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Where A = [Tax Collections for three years]
B = [Tax Levy for three years] Reported in Exhibit J-1 Schedule of delinquent taxes receivable in the Annual Fiscal Report
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9
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Did The Comparisons Of PEIMS Data To Like Information In Annual Financial Report Result In An Aggregate Variance Of Less Than 3 Percent Of Expenditures Per Fund Type (Data Quality Measure)?
(This indicator measures the quality of data reported to PEIMS and in the district's financial report to make certain that the data reported in each case matches. If the difference in numbers reported in any fund type is more than 3%, the district fails this measure.)
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(A / B) X 100
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Where A = [Absolute value of all differences in expenditures in Exhibit C-2 Statement of Revenues, Expenditures, and Changes in Fund Balance and PEIMS]
B = [Sum of expenditures in PEIMS per fund type presented in Exhibit C-2]
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10
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Were Debt-Related Expenditures (Net Of IFA And/Or EDA Allotment) Less Than $250.00 Per Student? (If The District's Five-Year Percent Change In Students Was A 7% Increase Or More, Or If Property Taxes Collected Per Penny Of Tax Effort Were More Than $200,000, Then Answer This Indicator Yes.)
(This indicator shows the legislature's intent for school districts to spend money on education rather than on expensive buildings by limiting the amount of money districts can spend on debt to $250 per student. The indicator allows fast-growth schools to exceed this cap.)
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((A - C) / B)
or
((B - D)/D) X 100 > 7% or E / F > $200,000
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Where A = [Function 71 Expenditures Report in the Debt Service and General Funds (Excluding Expenditure Object codes 6524 and 6525)]
B = [Number of students in year 5 from Base Year]
C = [IFA + EDA Allotments]
D = [Number of students in Base Year]
E = [Total Tax Collections]
F = [Total Tax Rate in pennies]
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11
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Was There No Disclosure In The Annual Audit Report Of Material Noncompliance?
(NO disclosure means that the financial report includes no indication that the district failed to comply with laws, rules, or regulations for a government entity.)
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No calculation involved
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Annual Financial Report, Schedule L-1, "Required Responses to Selected School First Indicators - electronic only"
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12
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Did The District Have Full Accreditation Status In Relation To Financial Management Practices (e.g., No Conservator Or Monitor Assigned)?
(Did the district maintain control of its own financial management by avoiding financial issues such as fraud and having a negative fund balance?)
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No calculation involved
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TEA Governance
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BUDGETING INDICATORS
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13
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Was The Percent Of Operating Expenditures Expended For Instruction Greater Than or Equal To 65%?
(Have the kids come first? This indicator measures the district's ability to focus the majority of its funding to pay directly for student instruction. Only items such as salaries of classroom teachers and classroom supplies qualify as "Instruction" expenditures in this calculation (Function 11).)
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((A / B) X 100)
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Where A = Expenditures in General Fund, Special Revenue, and Capital Project Funds (Excluding SSA Fund Codes) in Functions 11, 36, 93, 95 and Object Codes 6112-6499
B = Expenditures in General Fund, Special Revenue Fund and Enterprise Fund 701 (Child Nutrition Program),(Excluding SSA Fund Codes), and Capital Project Fund, Functions 11 through 61 and 93 and 95;Object Codes 6112 through 6499
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14
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Was The Percent Of Operating Expenditures Expended For Instruction More Than 65%?
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((A / B) X 100)
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Where A = Expenditures in General Fund, Special Revenue, and Capital Project Funds (Excluding SSA Fund Codes) in Functions 11, 12, 31, 33 36, 93, 95 and Object Codes 6112-6499
B = Expenditures in General Fund, Special Revenue Fund and Enterprise Fund 701 (Child Nutrition Program) (Excluding SSA Fund Codes), and Capital Project Fund, Functions 11 through 61 and 93 and 95; Object Codes 6112 through 6499
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15
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Was The Aggregate Of Budgeted Expenditures And Other Uses Less Than The Aggregate Of Total Revenues, Other Resources, and Fund Balance in General Fund?
(Did the district operate within its means, and avoid overspending its budget? A district receives a negative rating on this measure if its total expenditures and other uses for the fiscal year exceeded its total funds available.)
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(A + B) - (C + D + E) < 0
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Where A = Budgeted appropriations in General Fund
B = Budgeted Other Uses in the General Fund
C = Budgeted revenues in General Fund
D = Budgeted other resources in the General fund
E = Fund balance in General Fund at July 1 or September 1, depending on fiscal year end
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16
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If The District's Aggregate Fund Balance In The General Fund And Capital Projects Fund Was Less Than Zero, Were Construction Projects Adequately Financed? (Were Construction Projects Adequately Financed Or Adjusted By Change Orders Or Other Legal Means To Avoid Creating Or Adding To The Fund Balance Deficit Situation?)
(Did the district avoid over-spending on school buildings or other capital projects? This indicator measures the district's ability to construct facilities without damaging its fund balance.)
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If (C+D) < 0
then
(A - B - (C+D)) < 0
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Where A = Expenditures Function 81 in General Fund and Capital Projects fund
B = Other resources for real property financing in General Fund and Capital Projects fund
C = Fund balance in General fund at July 1 or September 1 depending on fiscal year end
D = Fund balance in Capital Projects fund at July 1 or September 1 depending on fiscal year end
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17
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Was The Ratio Of Cash And Investments To Deferred Revenues (Excluding Amount Equal To Net Delinquent Taxes Receivable) In The General Fund Greater Than Or Equal To 1:1? (If Deferred Revenues Are Less Than Net Delinquent Taxes Receivable, Then Answer This Indicator Yes.)
(This indicator measures whether the district has sufficient cash and investments to balance fund balance monies such as TEA over-payments (deferred revenues). In other words, the district should have fund balance monies of its own that are greater than or equal to those dollars that are there due to over-payments from the TEA, and the district should not be spending next year's money this year.)
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If B > 0
then
(A/B)
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Where A = Cash and Investments in General Fund
B = Deferred Revenue in General Fund - Property Tax Receivable Net of Uncollectible
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PERSONNEL INDICATORS
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18
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Was The Administrative Cost Ratio Less Than The Threshold Ratio? (See ranges below.)
(Did the district avoid being "top-heavy"? The TEA provides guidance on the percentage of the budget that districts can spend on administration. Did the district stay under the cap for districts of its size?)
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(A>B)
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Where A = Acceptable Administrative cost ratio
B = Administrative Cost ratio of the district
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19
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Was The Ratio Of Students To Teachers Within The Ranges Shown Below According To District Size? (see ranges below)
(Does the district have an acceptable number of teachers? This indicator measures the district's pupil-teacher ratio to ensure that it is within TEA-recommended ranges for districts with its student population range.)
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(A/B)
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Where A = Number of students
B = Number of teacher FTEs
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20
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Was The Ratio Of Students To Total Staff Within The Ranges Shown Below According To District Size? (see ranges below)
(Does the district have an acceptable number of staff? This indicator measures the district's pupil-staff ratio to ensure that it is within TEA-recommended ranges for districts with its student population range.)
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(A/B)
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Where A = Number of students
B = Total staff FTEs
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CASH MANAGEMENT INDICATORS
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21
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Was The Total Fund Balance In The General Fund More Than 50% And Less Than 150% of Optimum According To The Fund Balance and Cash Flow Calculation Worksheet in the Annual Financial Report?
(Does the district have an appropriate fund balance? Exhibit J-3 in the district's audit provides an optimum General Fund "Fund Balance" for the district. The district should have no less than one-half and no more than one and one-half times this amount in its fund balance, counting both reserved and unreserved fund balances.)
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A > (B X .5)
and
A < (B X 1.5)
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Where A = Total General Fund balance at June 30 or August 31, depending on fiscal year end
B = Line 10 in Exhibit J-3, Fund Balance and Cash Flow calculation worksheet in the Annual Financial Report
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22
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Was The Decrease In Undesignated Unreserved Fund Balance Less Than 20% Over Two Fiscal Years? (If 1.5 Times Optimum Fund Balance Is Less Than Total Fund Balance In General Fund Or If Total Revenues Exceeded Operating Expenditures In The General Fund, Then The District Receives 5 Points.)
(Is the district's fund balance stable? A district should NOT feed off of its fund balance to pay for salaries or other district operating expenses. This indicator notes rapid decreases in its undesignated fund balance (those dollars not designated for long-term uses, such as land purchase, construction funds, or emergency funds.)
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If (B – A) = > 0
or
((Optimum Fund Balance x 1.5) < Total Fund Balance in General Fund)
or
[C] X .80 < [D]
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Where A = Expenditures in General Fund in functions 11 through 61 and Expenditure Object Codes 6100 through 6400
B = Total revenues in General Fund
C = Undesignated, Unreserved Fund balance in General Fund at June 30 or August 31, depending on fiscal year end, two years prior
D = Undesignated, Unreserved fund balance in General Fund for the last fiscal year
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23
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Was The Aggregate Total Of Cash And Investments In The General Fund More Than $0?
(Does the district have cash in the bank and/or investments?)
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A > 0
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Where A = Cash and Investments in General Fund
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24
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Were Investment Earnings In All Funds More Than $20.00 Per Student?
(Is the district's money working for it? Is the district using its cash or reserve fund (fund balance) monies wisely?)
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A / B
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Where A = Investment earnings in all funds except Debt Service Fund and Capital Projects Fund
B = Number of students
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