On June 22, 2016, the Texas Education Agency announced proposed changes to the Financial Accountability Rating System. The proposed changes are to clarify certain financial accountability rating indicators and add a new “No Rating” category for certain school districts that receive territory from an annexation order under the Texas Education Code (TEC), §13.054, or consolidation under the TEC, Chapter 41, Subchapter H. The public comment period on the proposed changes begins June 24, 2016 and ends July 25, 2016.
Changes to clarify indicators include:
- “Indicator 5 would be revised to show the operation of adding variable F for pension expense and net pension liability (NPL) instead of subtracting the variable from the calculation.
- Indicators 6, 9, and 10 would be revised to remove the pension expense and NPL variables from the calculation since the amounts for pension expense and NPL are not applicable to the indicator calculations.
- Indicator 10 would be revised to add variable E (function code 81 - capital outlay) in order to make the indicator more uniform for all districts.”
The proposed changes would be effective for the 2015-16 rating year and subsequent years.
To access the proposed amendment to the Commissioner’s Rules concerning the Financial Accountability Rating System click on the link below.
http://tea.texas.gov/About_TEA/Laws_and_Rules/Commissioner_Rules_(TAC)/Proposed/16_06_Proposed_Amendment_to_19_TAC_%C2%A7109_1001/