School FIRST (Financial Integrity Rating System of Texas) reports public school district financial accountability ratings, as authorized by Senate Bill (SB) 218 of the 77th Legislature in 2001.
The primary goals of School FIRST are to:
Efficiently assess the quality of financial management in Texas public schools
Measure and report the extent to which financial resources in Texas public schools assure the maximum allocation possible for direct instructional purposes
Implement a rating system that fairly and equitably evaluates the quality of financial management decisions
Improve the management of school districts' financial resources
Increase financial accountability within Texas' public education system
Districts are rated on various performance metrics (called "indicators") relating to financial management. (To improve the effectiveness of the rating system, the indicators may change from year to year, and new indicators may be added.) These indicator ratings inform you of how well your district is doing financially, and where the district should focus efforts for improvement. In addition to a rating for each indicator, districts receive an overall "passed" or "failed" rating. Ratings are based on analysis of staff and student data for the school year, and on budgetary and actual financial data for the fiscal year. Two measurement vehicles, the Annual Financial Report (AFR) and the Public Education Information Management System (PEIMS), supply School FIRST with most of the measurement data from which the ratings are calculated.
Once the final ratings are released, districts are required to hold a public hearing to report their financial accountability rating to parents, taxpayers, and the media. For districts earning the top rating, School FIRST can be an opportunity to obtain positive media coverage and to enhance community support.
With the implementation of School FIRST, the Texas Education Agency has discontinued the distribution of paper reports. The preliminary and final reports are now posted only to the Texas Education Agency’s web site, where districts can print copies of all materials. For districts without means to acquire the information from the web, regional Education Service Centers (ESCs) can provide assistance.
District staff should carefully review the School FIRST rating and the data supporting the indicators, since final district ratings are openly reported to the general public, including taxpayers, parents, legislators, the media, etc. These ratings also become part of the criteria used to allocate Texas Education Agency (TEA) resources for monitoring and examining school districts. The ratings are also saved for historical purposes. If the district believes that its rating was based on a data error solely attributable to the TEA’s review of data for any of the indicators, the district may submit a written appeal with supporting evidence to the division of school financial audits. (Districts are allowed a period of time to appeal a preliminary report before the final report is released.)
If there were errors by the district in recording data or submitting data through the PEIMS or AUDIT system, these types of data errors do not constitute a valid basis for appeal. Final ratings will be released after the TEA’s review of preliminary rating appeals (if any).
The TEA gratefully acknowledges the generous assistance provided by many school and ESC officials during the development of School FIRST. The TEA also appreciates the assistance provided by the Comptroller’s office, the Texas Association of School Business Officials (TASBO), the Texas School Public Relations Association (TSPRA), and other professional associations.
This online help system is not formatted for printing. If you would like a printed copy of this documentation, please contact the TEA's School Financial Audits division. All of the information provided in this documentation is believed to be accurate and reliable; however, the TEA assumes no responsibility for any errors in or omissions from this information.
If you have questions about a district’s School FIRST rating, please contact the TEA's School Financial Audits division at (512) 463-9095 or schoolaudits@tea.state.tx.us.