1. 1 Brownsville Independent School District June 30, 2006 Presentation on the Texas Education Agency School FIRST F inancial F inancial I ntegrity I ntegrity R ating R ating S ystem of S ystem of T exas T exas

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3. 3 Table of Contents Page # FIRST Rating 5 FIRST Background 6 New FIRST Requirements 7 FIRST Rating System 8 FIRST Indicators #1 to #21 9 – 11 FIRST Ratios 12 Disclosures 13 - 30

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5. 5 The Brownsville Independent School District earned a “ Superior Achievement ” rating.

6. 6 School FIRST Background School FIRST Background  Senate Bill 218 of the 77 th Legislature (2001) authorized the implementation of a financial accountability rating system.  Rating is for BISD’s fiscal year ended June 30, 2006.  The Texas Education Agency rated every school district on twenty-one indicators.  Official results were released Friday, August 17, 2007.

7. 7 New FIRST Requirements Title 19 Texas Administrative code Chapter 109, Budgeting, Accounting, and Auditing Subchapter AA require the following: Prepare and distribute an annual financial management report Prepare and distribute an annual financial management report Disclose the current Superintendent’s Contract Disclose the current Superintendent’s Contract A summary schedule of total reimbursements received by the superintendent and each board member A summary schedule of total reimbursements received by the superintendent and each board member A summary schedule for the fiscal year of the dollar amount of outside compensation and/or fees received by the superintendent A summary schedule for the fiscal year of the dollar amount of outside compensation and/or fees received by the superintendent A summary schedule of the total dollar amount of gifts received by executive officers and board members A summary schedule of the total dollar amount of gifts received by executive officers and board members A summary schedule of total dollar amount of business transactions between board members and the school district A summary schedule of total dollar amount of business transactions between board members and the school district

8. 8 School FIRST Rating System School FIRST Rating System Rating is determined by the number of indicators answered “Failed”. Superior Achievement 0 - 2 Above Standard Achievement 3 - 4 Standard Achievement 5 - 6 Substandard Achievement 7+ or NO to one default indicator

9. 9 BROWNVILLE INDEPENDENT SCHOOL DISTRICT Financial Integrity Rating System of Texas (FIRST) For Fiscal Year Ended June 30, 2006 “Superior Rating” Indicator #Indicator DescriptionFY 04-05FY 05-06 1 Was The Total Fund Balance Less Reserved Fund Balance Greater Than Zero In The General Fund? Passed 2 Were There No Disclosures In The Annual Financial Report And/Or Other Sources Of Information Concerning Default On Bonded Indebtedness Obligations? Passed 3 Was the Annual Financial Report Filed Within One Month After November 27th Or January 28 th Depending Upon The District’s Fiscal Year End Date (June 30 th or August 31) Passed 4 Was There An Unqualified Opinion In The Annual Financial Report? Passed 5 Did The Annual Financial Report Not Disclose Any Instances(s) Of Material Weaknesses In Internal Controls? Passed 6 Was The Percent Of Total Tax Collections (Including Delinquent) Greater Than 96%? FailedPassed 7 Did The Comparisons Of PEIMS Data To Like Information In Annual Financial Report Result In An Aggregate Variance Of Less Than 4 Percent Of Expenditures Per Fund Type (Data Quality Measure)? Passed

10. 10 Indicator #Indicator DescriptionFY 04-05FY 05-06 8 Were Debt Related Expenditures (Net Of IFA And/Or EDA Allotment)< $770.00 Per Student? Passed 9 Was There No Disclosure In The Annual Financial Report Of Material Noncompliance? Passed 10 Did The District Have Full Accreditation Status In Relation To Financial Management Practices? Passed 11 Was The Percent Of Operating Expenditures Expended For Instruction More Than 54%? Passed 12 Was The Aggregate Of Budgeted Expenditures And Other Uses Less Than The Aggregate Of Total Revenues, Other Resources And Fund Balance In The General Fund? Passed 13 If The District’s Aggregate Fund Balance In The General Fund And Capital Projects Fund Was Less Than Zero, Were Construction Projects Adequately Financed? Passed 14 Was The Ratio Of Cash And Investments To Deferred Revenues In The General Fund = Or > 1:1? Passed BROWNVILLE INDEPENDENT SCHOOL DISTRICT Financial Integrity Rating System of Texas (FIRST) For Fiscal Year Ended June 30, 2006 “Superior Rating”

11. 11 Indicator #Indicator DescriptionFY 04-05FY 05-06 15 Was The Administrative Cost Ratio Less Than The Standard In State Law? Passed 16 Was The Ratio Of Students To Teachers Within The Ranges Shown Below According To District Size? Passed 17 Was The Ratio Of Students To Total Staff Within The Ranges Shown Below According To District Size? Passed 18 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 Finance Report? Failed 19 Was The Decrease In Undesignated Unreserved Fund Balance <20% Over Two Fiscal Years? Passed 20 Was The Aggregate Total Of Cash And Investments In The General Fund More Than $0? Passed 21 Were Investment Earnings In All Funds More Than $15 Per Student? Passed BROWNVILLE INDEPENDENT SCHOOL DISTRICT Financial Integrity Rating System of Texas (FIRST) For Fiscal Year Ended June 30, 2006 “Superior Rating”

12. 12 Indicator 16Ranges for Ratios Indicator 17Ranges for Ratios District Size - Number of Students Between LowHigh District Size - Number of Students Between LowHigh < 500722< 500414 500-9991022500-9995.514 1000-499911.5221000-4999614 5000-999913225000-99996.514 => 1000013.522=> 100006.614 Ratios for Indicators #16 and #17

13. 13 Disclosure #1 Current Superintendent’s Contract

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23. 23 Disclosure #2 Summary of Total Reimbursements received by Superintendent and Board Members

24. 24 Summary of Reimbursements/Expenditures for Superintendent and Board Members For the Twelve-month Period Ended June 30, 2006 Description Hector Gonzales Michael Zolkoski Pat Lehmann Eliceo Muñoz Enrique Escobedo Susan Galvan Rolando Aguilar Joe Colunga Herman Powers Lodging $ - $ 3,297 $ 2,587 $ 2,894 $ 1,508 $ 1,848 $ 2,054 $ 658 $ 1,858 Meals - 1,221 1,210 915 560 679 788 195 312 Motor Fuel - 46 - - - - 44 - - Other - 3,007 1,625 1,155 1,310 1,425 1,775 805 890 Transportation 375 3,899 1,645 2,868 1,710 1,406 1,998 319 1,027 Grand Total $ 375 $ 11,470 $ 7,067 $ 7,832 $ 5,088 $ 5,358 $ 6,659 $ 1,977 $ 4,087

25. 25 Disclosure #3 Summary Schedule of Outside Compensation Received by Superintendent

26. 26 Information Unavailable Superintendent at June 30, 2006 is no longer employed by the Brownsville Independent School District

27. 27 Disclosure #4 Summary Schedule of Gifts Received by Executive Officers and Board Members

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29. 29 Disclosure #5 Summary Schedule of Transactions Between Board Members and the District

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