ALTO, Texas (TXAN 24) — In the wake of our initial report detailing fiscal issues within Alto ISD, controversy deepened when the Alto School Board convened a meeting and brought in an auditor—Molly Adele—in an apparent effort to discredit our news coverage.
Now, new information from the Texas Education Agency (TEA) backs up our original findings.
In an email dated February 18, 2025, Paul Moreno, Assistant Director of TEA’s Financial Compliance Division, clarified key points from Alto ISD’s fiscal year 2024 annual financial report.
“The information you provided on page 10 is part of the Management’s Discussion and Analysis of Alto ISD’s fiscal year 2024 annual financial report and should be read alongside the district’s financial statements, which begin on page 13,” Moreno stated in his response to Tony Sevilla.
Moreno further explained that the district’s financial details are outlined in the government-wide statement—specifically in the B-1 Statement of Activities (pages 14-15)—which shows that Alto ISD recorded higher expenses than revenues for the fiscal year running from September 1, 2023, to August 31, 2024.
“The governmental fund statements provide a short-term view for the year compared to the long-term focus of the government-wide statements,” he noted.
He also highlighted a critical figure from the report:
“The Fund Financial Statement: Statement of Revenues, Expenditures, and Changes in Fund Balance on page 18 shows a negative of $1,126,016 for the year for the Total Governmental Funds.”
Additional details on the distinction between fund and government-wide statements can be found on page 19.
The report further revealed that the district’s fund balance fell from a beginning balance of $4,280,144 to $3,154,128 by the end of the year.
This detailed clarification from TEA not only reinforces the fiscal discrepancies reported but also counters attempts by the Alto School Board—where auditor Molly Adele was brought in during a recent meeting—to undermine our coverage.
“Hope this answers your question,” Moreno concluded in his email, providing a clear confirmation of the financial challenges facing Alto ISD.
The backing from TEA’s Financial Compliance Division now lends significant weight to TXAN 24 News’ original reporting on the matter. As community members and stakeholders await further review of the district’s financial management practices, these revelations underscore the importance of transparent fiscal oversight in local education.
For more updates on this developing story and additional insights into Alto ISD’s financial health, stay tuned to TXAN 24 News.
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