1. NOTICE OF PUBLIC MEETING TO DISCUSS LA VERNIA ISD’S State Financial Accountability Rating La Vernia ISD will hold a public meeting at 6:30 p.m. October 19, 2009 in the La Vernia Primary Cafeteria 369 FM 1346 S La Vernia, TX 78121 The purpose of this meeting Is to discuss La Vernia ISD’s rating on the state’s financial accountability system

3. FIRST Financial Integrity Rating System of Texas Public Hearing October 19, 2009

4. Financial Accountability Rating System of Texas, a financial accountability system for Texas school districts developed by the Texas Education Agency in response to SB 875 of the 76 th Texas Legislature in 1999, SB 218 of the 77 th Texas Legislature in 2001, and

5.  During the 79 th Texas Legislature in 2006, HB 1 changes addressed:  Accreditation of school districts  Sanctions and Interventions for school districts, charter schools and campus  Required TEA to adopt rules to implement the changes

6.  Effective January 2008 in 19 TAC (Texas Administrative Code) Chapter 97, Planning and Accountability, Subchapter EE, Accreditation Status, Standards, and Sanctions

7. 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.

8.  Assess The Quality Of Financial Management  Publicly Report This Assessment  Assure The Maximum Allocation Possible For Direct Instructional Purpose  Implement a Rating System That Fairly and Equitably Evaluates The Quality Of Management Decisions

9.  Use Data Currently Being Reported And Available From:  Annual Financial Audit Reports Filed By School Districts  Public Education Information Management System (PEIMS)

10.  Based upon 24 Indicators  Based upon points earned and answers to critical indicators  Failing to pass one or more critical indicators will result in automatic substandard rating  Fiscal Efficiencies  Academic Performance

11.  Superior Achievement  Above Standard Achievement  Standard Achievement  Substandard Achievement  Suspended Due to Data Quality

12. Did the District answer “No” to Indicators 1, 2, 3 or 4? Did the District answer “No” to Both Indicators 5 and 6? If so, The District’s Rating is Substandard Achievement. Determine Rating by applicable range for summation of the indicator scores (Indicators 7-24) Superior AchievementScore 75-85 and Yes to Indicator 7 Above Standard Achievement Score 65-74 or >= 75 and No to Indicator 7 Standard AchievementScore 55-64 Substandard AchievementScore <55 or “No” to one default Indicator

13. StatusCount% Total Passed1,01798.64% Failed131.26% Error10.10% Total1,031100.00

14. RatingsCount% TotalEnrollment% Total Enrollment Superior Achievement 90776.97%4,324,39594.80% Above Standard Achievement 1009.70%213,0184.67% Standard Achievement 100.97%8650.02% Substandard Achievement 130.97%15,0400.33% Suspended Due to Data Quality 10.10%8,3690.18%

15. YearRating 2001-2002Superior Achievement 2002-2003Superior Achievement 2003-2004Superior Achievement 2004-2005Superior Achievement 2005-2006Superior Achievement 2006-2007Superior Achievement

16. Status: Passed Rating: SUPERIOR ACHIEVEMENT District Score: 85

17. Superintendent’s Employment Contract Attached to Schools FIRST Financial Management Report

18. Total reimbursements received by the Superintendent and each Board Member including transactions resulting from the use of school district’s credit card for meals, lodging, transportation, fuel and other items (registration fees).

19. Descripti on of Reimburs ement Superinte ndent Harvey Board Member Schier Board Member Gimbel Board Member Quarles Board Member Watson Board Member Brooks Board Member Bilicek Board Member Jendrusch Meals$259.43$70.02$81.23$42.26$24.09$13.91$111.46$41.94 Lodging$1159.52$389.13 $428.55$364.68 Transport ation $20$89.76$196$180 $260.15$180 Motor Fuel $75.65$89.20 Other$1366$592.85 $682.85$427.85 $752.85$427.85 Total$2804.95$1217.41$1063.21$1349.66$996.62$986.44$1578.34$1014.47

20. Outside Compensation and/or Fees Received by the Superintendent for Professional Consulting and/or Other Personal Services in Fiscal Year 2008. None to report.

21. Gifts received by the Executive Officers and Board Members of gifts that had an economic value of $250 or more in the aggregate in the fiscal year. None to report

22. Business transactions between School District and Board Members for Fiscal Year 2007 for 12-month period. None to report

23. Was the Total Fund Balance Less Reserved Fund Balance Greater Than Zero in the General Fund. Answer: Yes

24. Was the Total Unrestricted Net Asset Balance (Net of Accretion of Interest for Capital Appreciation Bonds) in the Governmental Activities Column in the Statement of Net Assets Greater than Zero? Answer: Yes

25. Were there NO disclosures in the Annual Financial Report and/or other sources of information concerning default on bonded indebtedness obligations? Answer: Yes

26. Was the Annual Financial Report filed within one month after the November 27 or January 28 deadline depending upon the district’s Fiscal Year end date (June 30 or August 31)? Answer: Yes

27. Was there an Unqualified Opinion in the Annual Financial Report? Answer: Yes

28. Did the Annual Financial Report NOT disclose any instance(s) of material weakness in internal controls? Answer: Yes

29. Did the District’s academic rating exceed academically unacceptable? Score: 5

30. Was the percent of total tax collections (including delinquent) greater than 98 percent? Score: 5

31. Did the comparison of PEIMS data to like information on the Annual Financial Report result in an aggregate variance of less than 3 percent of expenditures per fund type (Data Quality Measure)? Score: 5

32. Were the Debt-Related Expenditures (net of IFA and/or EDA allotment) less than $250 per student? (If the district’s 5 year percent change in students was a 7 percent increase or more, or if property taxes collected per penny of tax effort were more than $200,000, then the district receives 5 points.) Score: 5

33. Was there NO disclosure in the Annual Audit Report of Material Noncompliance? Score: 5

34. Did the district have full accreditation status in relation to financial management practices? (i.e.. No conservator or monitor assigned) Score: 5

35. Was the percent of operating expenditures expended for instruction more than or equal to 65%? (Functions 11, 36, 93 and 95) (Phased in over five years: 55% for 2006- 2007, 60% for 2007-2008, 65% for 2008- 2009) Score: 3

36. Was the percent of operating expenditures expended for instruction more than or equal to 65%? (Function 11, 12, 31, 33, 36, 93 and 95) Score: 3

37. Was the aggregate of Budgeted Expenditures and Other Uses LESS THAN the aggregate of Total Revenues, Other Resources and Fund Balance in General Fund? Score: 5

38. 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?) Score: 5

39. 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 the district receives 5 points) Score: 5

40. Was the Administrative Cost Ratio less than the standard in State Law? Score: 5

41. Was the Ratio of Students to Teachers within the ranges shown according to district size? Score: 5 District Size # Students LowHigh <500722 500-9991022 1,000-4,99911.522 5,000- 9,999 1322 => 10,00013.522

42. Was the Ratio of Students to Total Staff within the ranges shown below according to District size? Score: 5 District Size - # Students LowHigh < 500514 500 - 9995.814 1,000 – 4,999 6.314 5,000 – 9,999 6.814 => 10,0007.014

43. Was the Total Fund Balance in the General Fund more than 50 percent and less than 150 percent of Optimum according to the Fund Balance and Cash Flow Worksheet in the Annual Financial Report? Score: 5

44. Was the decrease in Undesignated Unreserved Fund Balance less than 20 percent over two Fiscal Years? (If 1.5 times Optimum Fund Balance is less than total Fund Balance in General Fund or if Total Revenue in the General Fund exceeded Operating Expenditures in the Fund, then the district receives 5 points) Score: 5

45. Was the Aggregate Total of Cash and Investments in the General Fund more than $0? Score: 5

46. Were Investment Earnings in all funds (excluding Debt Service Fund and Capital Projects Fund) more than $20 per student? Score: 4