Forney, Texas – Standard & Poor's (S&P) upgraded the Forney Independent School District's financial rating from a BBB+ to an A- on Wednesday, December 18, 2013, based on the district's improving general fund balances and good liquidity, according to S&P's credit analyst Omar Tabani.
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S&P lowered Forney ISD's A+ rating on December 16, 2011, to its previous rating of BBB+ after the district received approximately $13.6 million in overfunding from the Texas Education Agency which it was obligated to repay.
“The movement back into the 'A' category is a direct reflection of the Board of Trustees' effort after encountering some very difficult financial circumstances,” said Michael Holland, Forney ISD Superintendent of Schools. “The new rating will significantly impact the interest payments the district will pay in the future, thus potentially saving the district thousands of dollars.”
In October of 2013, the Forney ISD was presented with an “unmodified opinion letter” by the district's new external audit firm and district officials also reported the district's first positive fund balance since 2011.
“In two short years the Board of Trustees have improved the district's financial position from a negative $9 million to a positive $1.3 million,” Holland noted in an Forney ISD press release. “That's a substantial improvement which had a major impact on the district's rating by Standard and Poor's.”
In the December 18 release from S&P, Tabani also states the district's strengths include general fund balances which have improved since 2011 with projections for continued improvements over the near term, good liquidity despite low general fund balances, and a deep and diverse economy resulting in healthy enrollment growth.
“The remarkable financial turnaround for the district was accomplished despite well over $4 million less in state aid due to funding cuts from the 2011 Texas Legislative session,” said Lucas Janda, Forney ISD's Chief Financial Officer. “To improve to a positive fund balance and to receive an upgrade on the district credit rating in two short years is a direct reflection of the dedication and determination by the Board of Trustees to make Forney ISD the best district it can be for the students, staff, and the community.”
Standard and Poor's also identified the financial outlook for Forney ISD as “stable‟ and stated the district could see a raise in the rating beyond the two-year outlook with a demonstration of a multi-year trend of maintaining very strong finances.
“The movement back into the 'A' category is a direct reflection of the Board of Trustees' effort after encountering some very difficult financial circumstances,” said Michael Holland, Forney ISD Superintendent of Schools. “The new rating will significantly impact the interest payments the district will pay in the future, thus potentially saving the district thousands of dollars.”
In October of 2013, the Forney ISD was presented with an “unmodified opinion letter” by the district's new external audit firm and district officials also reported the district's first positive fund balance since 2011.
“In two short years the Board of Trustees have improved the district's financial position from a negative $9 million to a positive $1.3 million,” Holland noted in an Forney ISD press release. “That's a substantial improvement which had a major impact on the district's rating by Standard and Poor's.”
In the December 18 release from S&P, Tabani also states the district's strengths include general fund balances which have improved since 2011 with projections for continued improvements over the near term, good liquidity despite low general fund balances, and a deep and diverse economy resulting in healthy enrollment growth.
“The remarkable financial turnaround for the district was accomplished despite well over $4 million less in state aid due to funding cuts from the 2011 Texas Legislative session,” said Lucas Janda, Forney ISD's Chief Financial Officer. “To improve to a positive fund balance and to receive an upgrade on the district credit rating in two short years is a direct reflection of the dedication and determination by the Board of Trustees to make Forney ISD the best district it can be for the students, staff, and the community.”
Standard and Poor's also identified the financial outlook for Forney ISD as “stable‟ and stated the district could see a raise in the rating beyond the two-year outlook with a demonstration of a multi-year trend of maintaining very strong finances.