Understanding+FIRST+(Financial+Integrity+Rating+System)

My superintendent was out of town, so I was able to interview our Deputy Superintendent, Julie Spears, about FIRST (Financial Integrity Rating System of Texas). Mrs. Spears has handled the finances for Dr. Hull for over the last 15 years at 4 different districts. Mrs. Spears and I discussed FIRST and the different components. After our discussion, we developed a top three according to her experience: (1) Administrative costs, (2) Fund balance, (3) Disclosure report – from audit.

The administrative costs are an important component, because this is an area that creates a lot of buzz in the community. How many administrative positions do we have? What are the salaries? Are any of these positions new? All of these questions generate conversations between all of the stakeholders of a school district. Many times this area leads to negative comments about the district and the spending of funds. The key is having data to support the number of administrative positions to teachers and students and maintaining a competitive salary scale with similar districts in your area. The second important component of FIRST is the district’s fund balance. A rule of thumb is a district should have 3 months district expenses saved in their fund balance in case something goes wrong with the funding that the district would be safe for at least three months. The fund balance also affects a district’s bond rating which is extremely important when wanting to have a bond election. The third top component of FIRST is the disclosure report after the district’s audit. If the disclosure report is clear, then the integrity of the district is not challenged, and stakeholder confidence in the district is not shaken. A negative disclosure statement creates uneasiness and a lack of trust among district stakeholders. Is my child’s best interests being looked after? Where is the money going? Can we trust our leadership? All of these negative comments and others are made if a disclosure statement comes back with discrepancies or questions.

FIRST is an outstanding accountability system that creates checks and balances to make sure that a school district is providing maximum money possible for instructional purposes. Group 3 lists administrative costs, fund balance, and disclosure reports as our top three components.