The Brownfield ISD School Board held a regularly scheduled meeting on Monday, December 16th, with the main topic being the Financial Integrity Rating System of Texas (FIRST). After the invocation, pledges, and a public comment period—which had no participants—the board commenced a public hearing on the FIRST rating.
BISD Superintendent Chris Smith presented the Board with information regarding the district’s FIRST rating, which is a 79, or a “C.” The last time the district received a “C” rating for its financial integrity was for the 2017-2018 school year, based on data from the 2016-2017 school year. Prior to this, BISD had received an “A” superior rating for five consecutive years. However, this time was different. (RELATED ARTICLE)
According to Smith, along with the current CFO of the district, Ronald Kuehler, the reason for BISD’s drop in rating from an “A” to a “C” was due to the failure to meet criterion #17: “Did the external independent auditor report that the AFR was free of any instance(s) of material weaknesses in internal controls over financial reporting and compliance for local, state, or federal funds, and free from substantial doubt about the school district’s ability to continue as a going concern?” Unfortunately, when the external independent auditor conducted the audit of BISD in January 2024, they discovered that the financial records had not been reconciled since December 2022.
In the BISD Board meeting that took place in January 2024, Kacey Gast from the accounting firm Bolinger, Segars, Gilbert & Moss, which served as the external independent auditor, informed the Board that, “When we arrived to conduct the audit, we realized on the very first day that the bank accounts had not been reconciled since December 2022. I don’t think this was a surprise to you; I believe it has been communicated to you. After discussing the situation with Mr. Smith (Superintendent of BISD), it was decided that they would seek help to reconcile the accounts so we could proceed with the audit.” (RELATED ARTICLE)
Gast continued, “Obviously, if the accounts aren’t reconciled, we can’t conduct our audit because cash affects everything. Once the reconciliations were completed, we were able to finish the audit. The district (BISD) did receive an unmodified opinion, or a ‘clean audit’ opinion, which is the best outcome possible. However, we did identify a material weakness regarding your bank reconciliation and bank processes.”
According to Gast, the recommendation for BISD is to implement procedures that ensure bank reconciliations are accurately prepared monthly and reviewed by an independent individual who is not involved in the preparation process. Smith is responsible for the “Corrective Action Plan,” which specifies that bank reconciliation procedures will be performed and approved by management on a monthly basis within the month following the statement period. Smith has already begun making significant improvements by closely collaboratiAndng with an external consultant and releasing the former CFO.
The external independent auditor is required by law to report any weaknesses, and failing to reconcile bank accounts constitutes a weakness. This issue caused delays in conducting an on-time and accurate clean audit. BISD has taken appropriate measures to rectify the situation, including releasing the former CFO. Gast also informed the Board that the reconciliation issue will impact the TEA Financial Integrity Rating System of Texas (FIRST) rating. This rating holds Texas public schools accountable for the quality of their financial management practices and encourages improvements. BISD earned an “A” on last year’s rating. However, according to Gast, the highest FIRST rating BISD can achieve in the next evaluation will be a “79” due to the material weakness identified.
Kuehler stated in the meeting, “This is the indicator (#17) that the district failed on… to automatically get a “C” and the maximum score would be a 79. If the district wouldve passed not had that, the sum score the district had is a 96. So the district in all essence without that indicator wouldve been a superior achievement.” Kuehler also mentioned that eventhough the FIRST rating on paper doesnt look good, “I still think the district is doing very very good.”
The Board then moved on to a safety inspection conducted on December 11th. According to Smith, the Regional Safety Team identified a door at Brownfield Middle School that did not latch as intended. As a result of this finding, the district has ordered replacement parts for the door, as noted in the report. In the meantime, the door has been hard locked and cannot be opened from the outside. Furthermore, all staff members have been reminded and trained to ensure that all doors close securely behind them at all times.
This issue was brought up during the school board meeting because the Texas Education Agency (TEA) requires that any identified issues be publicly reported to the board. A report will also be submitted to the School Safety Committee, as required by statute.
The Board proceeded to review the current enrollment numbers. As of December 16, 2024, there are 1,627 students enrolled in BISD. This reflects a decrease of 20 students compared to this time last year and a decline of 35 students from the same period in the 2021-2022 school year.
Colonial Heights has 120 students enrolled, down by 18 from the previous year. Oak Grove’s enrollment stands at 678 students, an increase of 13 students since last year. Brownfield Middle School has 327 students, which is 26 fewer than this time last year. The high school has seen a slight increase of 2 students, bringing its total to 463. Finally, the Brownfield Education Center has 39 students enrolled, which is an increase of 9 from last year.
The Board, once more will hear from CFO Kuehler, who will present an update on the district’s current finances. So far, $6,137,869.10 of the $33,482,209.00 budget has been spent, which accounts for 18% of the total and aligns with expectations. Additionally, there is a remaining balance of $17,130,143.70 in the bank accounts.
The final item on the agenda was the Board’s approval of two Requests for Quotes (RFQs) for child nutrition equipment for Colonial Heights, Oak Grove, and Middle School. The new equipment will include milk coolers, hot food service tables, heated proof cabinets, and open display merchandisers. Additionally, labor and freight costs will be included in the total price of $70,195.60. The funding for this project will come from a federal grant.
