Sherman ISD Building Bearcats Magazine November 2017 | Page 12

8 TH CONSECUTIVE FINANCIAL
MANAGEMENT AWARD
For the eighth consecutive year, Sherman ISD has
earned the top rating available on the state’s financial
accountability system, the School Financial Integrity
Rating System of Texas (FIRST).
“We are continuing to be fiscally responsible and
manage our funds in a conservative manner, while
still meeting the needs of the district,” Assistant
Superintendent Dr. Tyson Bennett said. “We handle
our finances in a way that ensures as much money
as possible goes to the classroom – to academics.”
The FIRST rating examines several financial
indicators, including administrative cost expenditures;
the accuracy of a district’s financial information
submitted, any financial vulnerabilities or material
weaknesses in internal controls as determined by
an external auditor; and the district’s ability to pay
back debt, among others.
This year, the benchmark was raised – from 80 to 90
points required to earn the top rating, but that didn’t
phase the Sherman ISD Finance Department, who
once again hit the maximum points available.
“We increased 18 points to a total of 98 points,”
Bennett said. “We earned maximum points for our
low administrative cost ratio, low student to staff
ratios, and strong debt management practices.
SISD’s administrative cost ratio has remained low at
.07 percent – well below the state’s recommended
.1250 percent, and the district has continued to
aggressively pay down debt and monitor financial
practices.
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“Each year, we have outside, independent auditors that
look at our finances and each year, they are no material
weaknesses, not only in our handling of finances, but
also in our internal controls,” Bennett said. “Our audits
show over and over that we are spending money in
appropriate ways.”
The district has a general fund budget of $65 million. Of
that, about 85 percent is spent on staffing.
Created by the 77th Texas Legislature in 2001, the FIRST
rating is designed to encourage public schools to better
manage their financial resources to provide the maximum
allocation possible for direct instructional purposes.
The 2016-2017
ratings are based
on annual financial
reports provided
to TEA by districts
and charters from
the 2015-2016 fiscal
year.  The financial
accountability
system requires
TEA to review the
audited financial
reports from all
districts and charters. All school districts and charters are
required to report information and financial accountability
ratings to parents and taxpayers.  In addition, school
districts and charters must hold a public discussion or
hearing regarding its financial report.