(a)The following words and terms, when used in this
section, have the following meanings, unless the context clearly indicates
otherwise.
(1)Annual Financial Report (AFR)--The audited annual
report required by the Texas Education Code (TEC), §44.008, that
is due to the Texas Education Agency (TEA) by no later than 150 days
after the close of a school district's or an open-enrollment charter
school's fiscal year.
(2)Ceiling indicator--An upper limit
(the maximum score) at which a score from a standard limit of a specific
indicator will result regardless of overall points.
(3)[(2)] Debt--An amount of
money owed to a person, bank, company, or other organization.
(4)[(3)] Electronic submission--The
TEA electronic data feed format required for use by school districts,
open-enrollment charter schools, and regional education service centers
(ESCs).
(5)[(4)] Financial Integrity
Rating System of Texas (FIRST)--The financial accountability rating
system administered by the TEA in accordance with the TEC, §39.082
and §39.085. The system provides additional transparency to public
education finance and meaningful financial oversight and improvement
for school districts (School FIRST) and open-enrollment charter schools
and charter schools operated by a public institution of higher education
under TEC, Chapter 12, Subchapters D and E (Charter FIRST).
(6)[(5)] Fiscal year--The fiscal
year of a school district or an open-enrollment charter school, which
begins on July 1 or September 1 of each year, as determined by the
board of trustees of the district or the governing body of the charter
holder in accordance with the TEC, §44.0011.
(7)[(6)] Foundation School Program
(FSP)--The program established under the TEC, Chapters 41, 42, and
46, or any successor program of state-appropriated funding for school
districts in this state.
(8)Open-enrollment charter school--A
charter school authorized by the commissioner of education under TEC,
Chapter 12, Subchapter D.
(9)Public institution of higher education
(IHE)--A public college or university eligible to operate a school
district; an open-enrollment charter school; or a TEC, Chapter 12,
Subchapter E, charter school authorized by the commissioner.
[(7)Public Education Information
Management System (PEIMS)--The system that school districts and open-enrollment
charter schools use to load, validate, and submit their data to the
TEA.]
(10)[(8)] Summary of Finances
(SOF) report--The document of record for FSP allocations. An SOF report
is produced for each school district and open-enrollment charter school
by the TEA division responsible for state funding that describes the
school district's or open-enrollment charter school's funding elements
and FSP state aid.
(11)Texas Student Data System Public
Education Information Management System (TSDS PEIMS)--The system that
school districts and open-enrollment charter schools use to load,
validate, and submit their data to the TEA.
(12)[(9)] Warrant hold--The
process by which state payments issued to payees indebted to the state,
or payees with a tax delinquency, are held by the Texas Comptroller
of Public Accounts until the debt is satisfied in accordance with
the Texas Government Code, §403.055.
(b)The TEA will assign a financial accountability
rating to each school district, [and] open-enrollment
charter school, and charter school operated by a public IHE under
TEC, Chapter 12, Subchapters D and E, as required by the TEC,
§39.082.
(c)The commissioner [of education] will
evaluate the rating system every three years as required by the TEC,
§39.082, and may modify the system in order to improve the effectiveness
of the rating system. If the rating system has been modified, the
TEA will communicate changes to ratings criteria and their effective
dates to school districts, [and] open-enrollment
charter schools, and charter schools operated by public IHEs.
(d)The TEA will use the following sources of data
in calculating the financial accountability indicators for school
districts, [and] open-enrollment charter schools
, and charter schools operated by public IHEs:
(1)AFR. For each school district, [and]
open-enrollment charter school, and charter school operated by
a public IHE, the TEA will use audited financial data in the
district's or charter's AFR. The AFR, submitted as an electronic submission
through the TEA website, must include data required in the Financial
Accountability System Resource Guide (FASRG) adopted under §109.41
of this title (relating to Financial Accountability System Resource
Guide);
(2)TSDS PEIMS. The TEA will use TSDS PEIMS
data submitted by the school district, [or]
open-enrollment charter school, or charter school operated by
a public IHE in the calculation of the financial accountability
indicators.
(3)Warrant holds. The TEA will use warrant holds as
reported by the Texas Comptroller of Public Accounts in the calculation
of the financial accountability indicators.
(4)FSP. The TEA will use the average daily attendance
(ADA) information used for FSP funding purposes for the school district
, [or] open-enrollment charter school, or charter
school operated by a public IHE in the calculation of the financial
accountability indicators.
(e)The TEA will base the financial accountability
rating of a school district on its overall performance on the financial
measurements, ratios, and other indicators established by the commissioner,
as shown in the figures provided in this subsection. Financial accountability
ratings for a rating year are based on the data from the immediate
prior fiscal year.
(1)The financial accountability rating indicators
for rating year 2014-2015 are based on fiscal year 2014 financial
data and are provided in the figure in this paragraph entitled "School
FIRST - Rating Worksheet Dated August 2015 for rating year 2014-2015."
Figure: 19 TAC §109.1001(e)(1) (No change.)
(2)The financial accountability rating indicators
for rating year 2015-2016 are based on fiscal year 2015 financial
data and are provided in the figure in this paragraph entitled "School
FIRST - Rating Worksheet Dated August 2015 for rating year 2015-2016."
Figure: 19 TAC §109.1001(e)(2) (No change.)
(3)The financial accountability rating indicators
for rating year 2016-2017 are based on fiscal year 2016 financial
data and are provided in the figure in this paragraph entitled "School
FIRST - Rating Worksheet Dated December 2016 for rating year 2016-2017."
[The financial accountability rating indicators for rating years
after 2016-2017 will use the same calculation and scoring method provided
in the figure in this paragraph.]
Attached Graphic
[Figure: 19 TAC §109.1001(e)(3)]
(4)The financial accountability rating
indicators for rating years 2017-2018, 2018-2019, and 2019-2020 are
based on financial data from fiscal years 2017, 2018, and 2019, respectively,
and are provided in the figure in this paragraph entitled "School
FIRST - Rating Worksheet Dated February 2018 for rating years 2017-2018
through 2019-2020." The financial accountability rating indicators
for rating years 2017-2018, 2018-2019, and 2019-2020 will use the
same calculations and scoring method provided in the figure in this
paragraph.
Attached Graphic
(5)The financial accountability rating
indicators for rating year 2020-2021 are based on fiscal year 2020
financial data and are provided in the figure in this paragraph entitled
"School FIRST - Rating Worksheet Dated February 2018 for rating year
2020-2021." The financial accountability rating indicators for rating
years after 2020-2021 will use the same calculations and scoring method
provided in the figure in this paragraph.
Attached Graphic
(6)[(4)] The specific calculations
and scoring methods used in the financial accountability rating worksheets
for school districts for rating years prior to 2014-2015 remain in
effect for all purposes with respect to those rating years.
(f)The TEA will base the financial accountability
rating of an open-enrollment charter school on its overall performance
on the financial measurements, ratios, and other indicators established
by the commissioner, as shown in the figures provided in this subsection.
Financial accountability ratings for a rating year are based on the
data from the immediate prior fiscal year.
(1)The financial accountability rating indicators
for rating year 2014-2015 are based on fiscal year 2014 financial
data and are provided in the figure in this paragraph entitled "Charter
FIRST - Rating Worksheet Dated August 2015 for rating year 2014-2015."
Figure: 19 TAC §109.1001(f)(1) (No change.)
(2)The financial accountability rating indicators
for rating year 2015-2016 are based on fiscal year 2015 financial
data and are provided in the figure in this paragraph entitled "Charter
FIRST - Rating Worksheet Dated August 2015 for rating year 2015-2016."
Figure: 19 TAC §109.1001(f)(2) (No change.)
(3)The financial accountability rating indicators
for rating year 2016-2017 are based on fiscal year 2016 financial
data and are provided in the figure in this paragraph entitled "Charter
FIRST - Rating Worksheet Dated August 2015 for rating year 2016-2017."
[The financial accountability rating indicators for rating years
after 2016-2017 will use the same calculation and scoring method provided
in the figure in this paragraph.]
Attached Graphic
[Figure: 19 TAC §109.1001(f)(3)]
(4)The financial accountability rating
indicators for rating years 2017-2018, 2018-2019, and 2019-2020 are
based on financial data from fiscal years 2017, 2018, and 2019, respectively,
and are provided in the figure in this paragraph entitled "Charter
FIRST - Rating Worksheet Dated February 2018 for rating year 2017-2018."
The financial accountability rating indicators for rating years 2017-2018,
2018-2019, and 2019-2020 will use the same calculations and scoring
method provided in the figure in this paragraph.
Attached Graphic
(5)The financial accountability rating
indicators for rating year 2020-2021 are based on fiscal year 2020
financial data and are provided in the figure in this paragraph entitled
"Charter FIRST - Rating Worksheet Dated February 2018 for rating year
2020-2021." The financial accountability rating indicators for rating
years after 2020-2021 will use the same calculations and scoring method
provided in the figure in this paragraph.
Attached Graphic
(6)[(4)] The specific calculations
and scoring methods used in the financial accountability rating worksheets
for open-enrollment charter schools for rating years prior to 2014-2015
remain in effect for all purposes with respect to those rating years.
(g)The TEA will base the financial
accountability rating of a charter school operated by a public IHE
on its overall performance on the financial measurements, ratios,
and other indicators established by the commissioner, as shown in
the figures provided in this subsection. Financial accountability
ratings for a rating year are based on the data from the immediate
prior fiscal year.
(1)The financial accountability rating indicators
for rating year 2016-2017 are based on fiscal year 2016 financial
data and are provided in the figure in this paragraph entitled "IHE
Charter FIRST - Rating Worksheet Dated February 2018 for rating years
2016-2017 through 2019-2020." The financial accountability rating
indicators for rating years 2016-2017 through 2019-2020 will use the
same calculations and scoring method provided in the figure in this
paragraph.
Attached Graphic
(2)The financial accountability rating indicators
for rating year 2020-2021 are based on fiscal year 2020 financial
data and are provided in the figure in this paragraph entitled "IHE
Charter FIRST - Rating Worksheet Dated February 2018 for rating year
2020-2021." The financial accountability rating indicators for rating
years after 2020-2021 will use the same calculations and scoring method
provided in the figure in this paragraph.
Attached Graphic
(h)[(g)] The types of financial
accountability ratings that school districts or open-enrollment charter
schools may receive for the rating year 2014-2015 are as follows.
(1)P for pass. This rating applies only to the financial
accountability rating for rating year 2014-2015 based on fiscal year
2014 financial data. In accordance with the procedures established
in this section, a school district or an open-enrollment charter school
will receive a P rating if it scores within the applicable range established
by the commissioner for a P rating.
(2)F for substandard achievement. This rating applies
to the financial accountability rating for rating year 2014-2015 based
on fiscal year 2014 financial data. In accordance with the procedures
established in this section, a school district or an open-enrollment
charter school will receive an F rating if it scores within the applicable
range established by the commissioner for an F rating.
(i)[(h)] The types of financial
accountability ratings that school districts or open-enrollment charter
schools may receive for the rating year 2015-2016 and all subsequent
rating years are as follows.
(1)A for superior achievement. Beginning with the
financial accountability rating for rating year 2015-2016 and all
subsequent rating years, in accordance with the procedures established
in this section, a school district or an open-enrollment charter school
will receive an A rating if it scores within the applicable range
established by the commissioner for an A rating.
(2)B for above standard achievement. Beginning with
the financial accountability rating for rating year 2015-2016 and
all subsequent rating years, in accordance with the procedures established
in this section, a school district or an open-enrollment charter school
will receive a B rating if it scores within the applicable range established
by the commissioner for a B rating.
(3)C for standard achievement. Beginning with the
financial accountability rating for rating year 2015-2016 and all
subsequent rating years, in accordance with the procedures established
in this section, a school district or an open-enrollment charter school
will receive a C rating if it scores within the applicable range established
by the commissioner for a C rating.
(4)F for substandard achievement. Beginning with the
financial accountability rating for rating year 2015-2016 and all
subsequent rating years, in accordance with the procedures established
in this section, a school district or an open-enrollment charter school
will receive an F rating if it scores within the applicable range
established by the commissioner for an F rating.
(5)No Rating. Beginning with the financial accountability
rating for rating year 2016-2017 and all subsequent rating years,
in accordance with the procedures established in this section, a school
district receiving territory due to an annexation order by the commissioner
under the TEC, §13.054, or consolidation under the TEC, Chapter
41, Subchapter H, will not receive a rating for two consecutive rating
years beginning with the rating year that is based on financial data
from the fiscal year in which the order of annexation becomes effective.
After the second rating year, the receiving district will be subject
to the financial accountability rating system established by the commissioner
in this section.
(j)The types of financial accountability
ratings that charter schools operated by public IHEs may receive for
the rating year 2016-2017 and all subsequent rating years are as follows.
(1)P for pass. Beginning with the financial accountability
rating for rating year 2016-2017 and all subsequent rating years,
in accordance with the procedures established in this section, a charter
school operated by a public IHE will receive a P rating if it scores
within the applicable range established by the commissioner for a
P rating.
(2)F for substandard achievement. Beginning with the
financial accountability rating for rating year 2016-2017 and all
subsequent rating years, in accordance with the procedures established
in this section, a charter school operated by a public IHE will receive
an F rating if it scores within the applicable range established by
the commissioner for an F rating.
(k)[(i)] The commissioner may
lower a financial accountability rating based on the findings of an
action conducted under the TEC, Chapter 39, or change a financial
accountability rating in cases of disaster, flood, extreme weather
conditions, fuel curtailment, or another calamity.
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