Once again, the McAllen Independent School District received a clean financial audit from its external auditor, Burton McCumber & Longoria, LLP. The firm presented its findings to the McAllen ISD Board of Trustees during its meeting on January 13.
The audit of the district’s finances from the 2024-25 school year found no material weaknesses, deficiencies or irregularities, confirming that McAllen ISD continues to meet required financial reporting standards and maintains strong internal controls.
The audit report indicated that the district's unassigned fund balance for the school year ending on June 30, 2025, grew by $12,672,256. This increased the unassigned fund balance from $93,073,671 the previous fiscal year to $105,745,927.
The state recommends maintaining 75 days of operating expenses in fund balance. As of June 30, 2025, McAllen ISD held approximately 152 days of such expenses, more than double the recommended amount. This supports strong cash flow, stability and long-term planning.
“A strong fund balance helps the district maintain stable operations without sudden cuts, protects classroom services during funding uncertainty and reduces financial risk,” McAllen ISD Superintendent, Dr. René Gutiérrez, said. “It also supports long-term planning and helps McAllen ISD respond to emergencies or unexpected cost increases without disruption to the education of our students. Our district remains committed to responsible stewardship, transparency, and long-term financial stability in service of students, staff, taxpayers and the McAllen community.”
Fund balance is not “extra money” to spend immediately—it acts like a personal savings account and is a key measure of financial stability that supports responsible planning and consistent operations. Fund balance is also not a long-term solution for ongoing costs, such as permanent staffing, without recurring revenue.
In furtherance of McAllen ISD’s efforts to be responsible with the public’s trust, last fall, the district adopted a total tax rate of 0.9322 for the 2025–26 tax year. This is a decrease of more than six cents (0.0644) from the 2024–25 total tax rate of 0.9966. McAllen ISD’s total tax rate of 0.9322 is the second lowest among school districts in Hidalgo County.
McAllen ISD has earned wide recognition in recent years for strong financial management, transparency, and operational excellence, including:
· The Texas Education Agency’s highest financial accountability rating through School FIRST, 22 times in 23 years, including 18 perfect scores, with four consecutive years through 2025
· McAllen ISD maintains strong credit ratings from both Moody’s (Aa2) and S&P Global Ratings (AA-), reflecting the district’s sound financial management and long-term stability
· Receiving Texas Comptroller Transparency Stars in Debt Obligations and Traditional Finances for exemplary efforts in financial transparency
· GFOA Certificate of Achievement for Excellence in Financial Reporting for its Annual Comprehensive Financial Report (ACFR), 15 consecutive fiscal years (2010–2024)
· Meritorious Budget Award (MBA) for the 2025–26 budget year, the district’s 11th consecutive year (2016–2026), recognized for excellence in budget presentation
· Achievement of Excellence in Procurement (AEP) earned 11 times in 13 fiscal years (2013–2018, 2020–2025) through the National Procurement Institute (US & Canada)
· TASBO Award of Merit for Purchasing Operations, earned 8 times, including 2025 and 2026
Together, these independent validations reflect McAllen ISD’s continued commitment to ensuring resources remain aligned to support students, staff and the community.