Okay. I'd like to call.
I'd like to call the February 20, seventh, 2023, Finance meeting to order, and announced that this meeting is being audio recorded and live, streamed.
We'll go around and do all roll, call, my name is Cathy Sicker.
I'm a board member and treasurer, and we'll go to my right.
Stacy Winslow, Superintendent Erica Schmidt Board.
Member Sheryl Purcell, business manager, Michelle, Aj.
Board, Secretary, Tonya, hey, John? Lindsey drew Board, member Mike Rizzo, Board, member.
Okay, thank you. And I see we have some citizen advisors. Josh.
Thank you.
Josh. Smith coming in online. Thanks.
Brian Ostella, citizen, Advisor.
Thank you very much. Okay. May I have a motion to approve the attached minutes?
From our last Finance committee meeting. So move like Brazil.
Second Lindsey Drew. Is there any discussion? All those in favor say, aye, all those opposed say no, hey?
The minutes are approved. There's no unfinished business, so we'll move on to new business.
We have the 2021, 22 review of the audited financial statements, and we have Boyer and Ritter here tonight to give us a presentation.
You wanna come on up to the microphone and introduce yourself.
Sure!
Hey! Good evening. Good afternoon, Matt Wilson. I work with Boy and Ritter.
I'm responsible for the conduct and oversight over your external financial statement.
Audit we're here tonight to kind of review the results of that.
There should be a Powerpoint. But I'll walk you through here this evening, and there is a copy in your packet.
That's what I'd handed out. The separate staple package just doesn't have the first or last page on it, because of all the color so.
Thank you.
The broader audience and for the board members.
While we're working on the Powerpoint here. Just want to kind of walk you through the why we do what we do, and some of the background around the audit process.
You know the first question we ask is, hey? Well, why?
Are we here? Why are we going through this process? Certainly understanding the stakeholders that are in play isn't important part.
First of all, you know, the district has 19 million dollars of you can advance that.
Then, for the district has about 19 million dollars of bonds outstanding.
So there's a bond rating agencies and bond holders.
I certainly have interest in the fiscal operations of the district.
The Federal Government registration.
Compliance audit, as well as a financial audit, because you've received significant Federal dollars last year.
You received over 5 million dollars so you can think about that in the context of your overall budget.
It's pretty big some, so certainly they have an interest in making sure that you guys are following the letter.
Of the law on the utilization and custody of those funds the funds are also required to be audited because of the because of Pde.
Department of Education. They require an audit to accompany your annual financial report, and finally, and just as importantly as you know, for you as the Board and the public frost as well.
You know it's a good good decision to go through and have a financial audit.
So what we do in terms of like the audit process, we look at your financial statements as prepared in the past, and your current financial information is being prepared on a daily basis.
Here at the district we go through, and I'm looking kind of just kind of ask the questions about, hey?
What could go wrong, knowing that your money, your management teams responsible for putting together the financial statements, you know, every day they're collecting cash receipts, paying payroll, making cash disbursements throughout the year.
So we have to sit here and say, Hey, we could go wrong in this financial reporting process.
And in the preparation of your overall financial statements, your financial statements are about 95 pages in length, so they're it's a pretty significant document, and we have to go through and say, what could go wrong?
We then turn around and try to look at our, you know, kind of form our audit based on that, trying to figure out where the biggest risk areas are.
But also understanding that even though it may not be a risky area, we still have to look at it.
Looking down over your balance sheet where you guys have significant funds. So we have to go down through and plan our audit, based on that as well as looking at compliance, issues around the audit.
The last piece that we go down through. Then do is we turn around and we're here tonight, and we're looking at the overall reporting as to how everything comes together and how you turn around and communicate with the public through your financial report you know what's included in the scope of
the audit. It's a stuff that first of all it's the fun. Level financial statements is what you're typically seeing on a routine monthly basis as the finance committee.
You're evaluating your general fund. Capital projects that service.
Looking at your some of your student activities funds, your trust in agency funds as well as your food service in Granada projects, that's all included in the scope.
And then one thing that you probably typically don't look at from a monthly financial reporting standpoint is what we call the government.
Wide financial statements, in the very front of this auto report we start looking at things like your capital assets and your calculating depreciation.
Something that's a little bit foreign to government accounting.
Look at your broader debt situation as well as any kind of you know pension, liabilities or other post employment, benefit, liabilities that would be like any kind of promises you made to your employees to pay for their dental and medical costs after they after they retire and
then also new this year, and is the finance, is the Latin kind of leases or leis relationships that you have.
The Government accounting Standards Board in the past, I would say 15 years has really been trying to push to make sure that all the local governments have all their liabilities put on their books and depending on the type of lease that you would have sometimes there's a least purchase like you guys
go through every year and you buy. I like your your ipads, you have your ipad.
You're really, just trying to. You're really just trying to acquire those assets and use a financing.
At least financing mechanism. And those have always been put on your books.
However, this year, with the least standard they've started to look at other types of leases and may make people basically record an additional liability.
So you know, one of the things I think you guys got tripped up in was the not tripped up in, but they you had to put on your books was like some of the entity-wide copier leases where in the past, you know, we used to disclose that as required by
the by governmental accounting. And then, with this change they make you put that on as though it's just a finance asset that you're purchasing doesn't make a significant impact overall.
But there is some movement or move moving around of the revenues and expenses in in your general fund.
Financial statements. So it's just something to kind of be aware of.
But it's not changing your world as you sit here and fund the operations of the school district that makes sense. So maybe advance the slide there. Good.
So talking quickly about the independent audit or auditors report most important part of what we're doing again, like the financial statements are 95 pages in length.
There's about 7 or 8 pages that are Boyer and Readers.
The rest is yours. Now we certainly help in the preparing and the compilation of some of the information that management gives us.
But what we do the first thing out of the gates is provide an opinion.
It's what all those key stakeholders are looking for to make sure you have a unmodified or what we call a clean opinion.
On your financial statements. And that's kind of what we issued in the report. We also talk about.
What's the basis for our opinions? What kind of roles do we follow as we're trying to formulate and come up with our opinion?
And it's the generally accepted auditing standards with with the follow, independence rules.
With regard to our clients. When we're issuing any kind of audit opinion or review opinion.
There's an emphasis of matter paragraph in this year's report.
We referenced. Gasb 87. That's a government accounting standards.
Board statement number 87. That's the leases, and you'll see.
You know we'll trip over the lease concept a couple times here this evening.
As we're going through this. But we do, because because, you know, you look at your statements a lot of times in a comparable way in relation to the past years.
The, 87 is a pretty significant change.
So. The one other thing that I would point out is that in the past you, when we, when we look at leases as you evaluate any potential further use of the building that we were attached to here, if you guys were to turn around and lease part of that building out that would
fall under this leasing standard, and really well would do is create a another, a big receivable on your books.
Hopefully, right if somebody would come out here and use that and sign on for a long term contract.
The end of the day. The cash flow is to the district is all gonna be the same as arranged under the lease, but there is a mechanism that they use to kind of pull it all onto your balance sheet so from an accounting standpoint it's very exciting stuff.
Not for all accounts. Standpoint. Not from all account standpoint. Yeah, this this was a really big one, and I know all school districts have sort of outsourced the calculations.
It's a pretty monstrous calculation and management of it. So there's some third party firms that are taking care of this for districts we've used, Boy and Ridder to do the calculation for us.
It's just something that's like I said, mandated.
But does not change our operations on a day to day basis whatsoever yeah, there's a couple of reclassifications in your profit, loss, and I'll point it out to you when we get into it.
A little bit more but and but what we ended up doing with our clients was first of all educate the clients on what qualifies and what should be included or not included, and that we use a third-party software that we work with our clients and give them access to so they
understand what the compilation of the numbers are that are going on.
Your financial statements, and really, if you're familiar with any kind of any kind of depreciation schedule where you're just writing something off over every year over the years or an amortization schedule, it's aside from evaluating the leases and what you're going
to include, it's not a lot more complicated than that.
So, but we spent a fair amount of time as a firm trying to prepare ourselves and get our clients ready for that back to the back to the audit opinion, you know.
Certainly we talk about at the end of this we talked about required supplementary information.
There's a lot of disclosures in the back related to your other post employment benefits and your retirement plans so we just kind of point that out, and our level of assurance that we're putting on that we're we're taking we're expressing an
opinion on all those statements that are included in there, so that we're just kind of pointing out that these are included in there and then.
The final one is the government auditing standards, part.
And that's like I mentioned before. You have over 5 million dollars in Federal Awards requirements required to do a compliance audit.
So we're so we're basically required to put in that main opinion that you have to consider those results as well.
So our next report is, the independent auditors report on internal controls, compliance and other matters.
So the you know I the first report that I talked about really had to do with how did you guys did you get a clean opinion or a clean bill of health on your on the numbers that are in this report the this report here kind.
Of takes a little bit different. Twist on it, and that it asks for us to make an evaluation and whether or not you guys have any material weaknesses or in significant deficiencies over your internal controls, you know problems.
That you may have in-house, that you know you might have got to the correct answer at the finish line here when it came to us expressing our opinion.
But how did you get there? There are significant audit adjustments required where there are problems along the way that would require us as auditors.
We sit back, and for all the journal entries. With that we have to make sure the audit we have to evaluate. Hey!
Is this? Is there a systemic issue here with the school district that they really can't put together their own financial statements?
And they're requiring somebody else or some other act to make us get to a clean opinion.
And that's what this really is about. And we're pleased to report.
There are no significant deficiencies or material weaknesses at the Dairy Township School district for this year.
Can I see a quick question? Yes, this is Erica Schmidt.
What would be like a weakness, an example of one that you would see in here.
Well, so the best way to evaluate whether or not there are the best way to evaluate whether or not there are weaknesses is by looking at the journal entries or the process we follow to get to the final answer.
For example, we've gone into schools before we've been hired as auditors for school districts, and they have fallen behind in their cash.
Reconciliation, so the cache reconciliation are. They're not agreeing to the bank statement to your books or records.
And so, therefore, what is happening on a monthly basis where you guys are still having your board meetings.
So, and you're still getting some financial information. But the question is, how good is that financial information?
So, if you have and really, what we do is we go down through over your balance sheet, we look at your cash, we look at your receivables, whether it be taxes, receivables, or grant receivables, and we make sure that you are your financial staff, is reconciling
the information on a on a roof basis, so that you have the ability.
They have the ability to give you good information. So that's kind of our job, just raise our hand and say, you guys have a problem here, and that's what will be reported in here.
If they were problems, whether it be cash, reconciliation, or grant reconciliation.
So in grants, you know. You have to be careful with those, because you make it cash in, and you may record it as revenue.
But wow! Grants are really, as you guys learn from, like some of the esser funding, it's really expenditure.
So you could get this money in, and really what you should be recording is you receive your cash, and then you receive like.
It's almost like a liability until you spend that money.
You can't really recognize the revenue. So unless you have somebody in here, that's looking at that, you know, you can have some serious problems.
So does that make sense? Okay? Any other questions?
Alright! Can I jump in real quick on that? And that's where sometimes that year in, we'll say we have a lot of reconciling to do, only because some of some of the reconcillements, the cash reconciliations are some things that do happen on a monthly
basis, and then there's some of that governmental that with the contracts and the the receivables, you know, expense, and where you land at the end of the year a lot of that is typically a June thirtieth analysis.
So that's when we say we're getting ready for audit, and all those account analysis and and why the statements might look different from May 31 to the final June 30.
Only because there's a lot that goes through in June, and the summer until you figure out what goes back to the last year, as last year's revenue or expense, or is happening in the current year.
So there's there's a lot that goes on.
We were, you know. Make sure we're working with our auditors and and making sure everybody's happy with the reporting of that.
Yeah, but to go, and then to go back. I think a lot of times what we've seen.
We have seen in districts when they're not doing their reconciliations and they don't have a process throughout the year to keep up with things a lot of times.
It will happen because they, you know, they have staff turn over.
You know, you guys went through the staff turnover this past year.
So, you know, but that but sometimes that happens, and you people fall behind.
And that's just that's just life when you're light.
People. And you know you. But our job is to point it out.
Get it corrected. Move on so.
So the next the next slide talks about our compliance.
Opinion, as I mentioned before, you guys spent some of your users money this past year.
We're required to go through and issue a compliance opinion again, it's a unmodified opinion which basically states that you guys spent your money in accordance with you know, basically the rules in the guidance that Uncle Sam provided on how you're allowed to spend that those Funds
we talk about, you know, management's responsibility, and that really, in my mind is setting up the internal control processes for making sure that you guys stay compliant in my mind when you say, Well, what are the internal controls around computers?
It's understanding where things could go wrong to me. A big part of your Federal compliance is around, you know, budgeting how you're going to use your money, you know.
Looking at salaries and benefits for the various people that you were, you know, using.
You know the Federal dollars to pay for, and making sure those people are qualified and eligible.
But to me it's all about processes and systems inside the school district, and then you know, the ultimate answer is where they were.
They compliant. And you guys get a clean bill of health on on that as well.
So to take a quick look here, at the summary of the financial statements, it might be easier from a to be able to see if you look at this.
The handouts that were provided to you, but I did try to color code some of these, so you can see you know, kind of what we're looking at.
I wanted to provide, you know this is a general fund overview over the last, over the last 3 years, and then I also compared it, you know, budget to actual so first thing that I'll point out the second line down is the perpetual trust transfers.
And you'll see there that you know, if you look at the drawdown from the perpetual trust in 22.
That's, you know, significantly, more than had been drawn down in the past.
Typically in years, Prior is around that 1.6 1.7 ballpark last year, guys.
Budgeted for and drew down at a little bit higher rate.
Where you're at that 3 million dollar mark in Fy 22.
Then you move down to your Federal revenues, and again you're gonna look there and you're gonna see your Federal revenues at 3.2 million dollars.
Or 3,000,002 56, 1 86.
And you look at that number in relation to the past, and you're gonna see that number was well used to be well below we used to be below a 1 million dollars in 2020, and then a climb in 21, and then it's you know, moving through it 3.2 million dollars.
And 22, and that's really as you're moving through and utilizing.
You know your Covid relief money. So if I imagine you know in, I'm sure the Administration has a better handle on what that looks like as they move through the Covid money.
And what's the what the normal situation is?
Gonna be as you guys move down the road here.
The the final piece that I'm gonna point out here because you're gonna see here that your extended term financing you had budgeted $35,000, and for the Fy 22 and the actual was a gross up of 6 603,000
dollars. So you ask well, again, how did that get? So why is that so different?
Again. This goes back to the leases, and so what would typically happen is under the government accounting rules.
If you guys enter into a lease, or one of the capital leases, for you know, for for your ipads typically, you're just gonna like, look at.
And probably start budgeting for the payment of that and you're gonna do it in the various instructional, you know.
Support services, etc., and your functional expenses under the government accounting rules.
They're required to you're required to recognize the borrowing, so to speak.
And then the capital outlay for the full amount. So let's just pretend for a second that if you had, you know, $500,000 cat, you know, ipad leaves in the Fy 22 well, there's gonna be $500,000 on that extended term financing
line, and then I'm gonna have another $500,000 down in the call it instructional Category.
So it's a bit of a gross up when you look at it.
Budget to actual. You know, it can be a little bit misleading, but at the end of the day your you know the payments that you make out at the end of the day are, you know, still the same, and are still being recorded in here.
So I think, at the end of the day net, you're still in a good spot.
It just kind of looks a little funny when you compare that to what you had originally budgeted.
Same thing down below. Then if you get down to the debt service, and that's deiso called the Dsf.
Transfers the Debt Service fund transfers, you know.
I combine, what you pay out of the general fund versus what you pay out of the Debt service fund.
But you budgeted 4,001,004, 10, and then you know, in your final statements it says 4.4 million dollars again, that has more to do with the payment of your debt service, plus additional debt service requirements for under the leasing standards requirements for under the leasing standard so that's why.
that's there. I point this out to Sheryl. It's going to take a year or so to get all the budgets to.
It's going to take a year or so to off with where things are supposed to be paid out of and record.
Ultimately get recorded for the bean calendars.
You know you wouldn't have been able to do this if you wind back. You think about.
When this budget was prepared. How long ago that was, and what everybody went through and implementing this standard, this past fall kind of a tall task, so to speak, I don't have any other comments here.
But I think the big picture here is at the end of the day you had a positive change and fund balance of 2.2 point 9 million dollars last year in the general fund.
If we move forward to the the next slide, we look at the if we look at the Food Service fund and the thing that's going to jump out at you right away is the dramatic change in the State and Federal revenues.
I know Cheryl and the management team have been talking to you guys about the influx of Federal money and the impact of that.
But every single school district that I've evaluated this year has made money, whereas in the past almost nobody made money and it really has it just to do with the with with the grand revenues.
But you can see there you have 2 million dollars in State and Federal funds coming in versus about $500,000, $600,000. In the past.
So that makes a big difference. And then you also have on top of that, you've you've transferred in some of the some funds from the general fund.
This past year. So that's something, you know, with the where you sit and where you budget going forward it's something you have to look at in relation to how much money does the cafeteria fund that need given the bigger influx of Federal dollars.
But if you look at it at the end of the day, if you have a positive change in that position of $630,000, maybe you didn't.
Don't need to. Maybe you can take a year off or dial it back for a year just to suggest, and I, Cheryl, I talked about this it's just something to kind of keep your eye on in terms of where you're needs are in your general fund.
Budget. Sure you, yeah. And that'll that'll be part of the the budgetary conversation.
So out of that 303,000 that was moved so 150 of it was the planned, the plan transfer, and then the rest of that is the director of food services, salary and benefits had been paid out of general fund.
But technically, they really should be replicated in the Food Service Fund so in by moving all of those over there, and to make sure he was covered, at least in the 2122 school year.
That was one of the board approved transfers that we moved enough money over there as well to cover that expense, so he had revenue and expense that offset each other in 2122.
I do think, going forward. Then we take a look at this.
We see where the dollars are. We see the participation. And you know how everything is going.
Make sure. We hey, get the salary benefits where they belong.
And then how does General Fund want to? Maybe that 150 that's we still have that 50,000 that's in there for 2223.
Do we just move that 1 50 and say that covers your salary benefits and then see how they do with everything else.
I mean, it's just company, part of the conversation as we wind up 2223, and budget for 2324.
Yeah, as as I look at the as I look at the fund here and the Food Service Fund at the end of 22, you had a pause.
You had a negative fund balance there, or a negative, you know, basically had a deficit there of 1.1 million dollars.
But a lot of that. Actually, all of that was attributable to your net pension liability which you're gonna be contributing to forever.
So it's not. That's not money you need to have now.
Awesome consideration. Taking a look at the next slide.
Here. I just kind of gave you a bird's eye view of the Capital projects fun over the last few years.
This year, you know, you're the last 5 years you've been anywhere from Zoom to 6 million dollars.
Right now. You're at 6.6, you know, trying to set money aside for a rainy day for known projects that you're gonna have.
You know this is this year, this past year you're transferred in a 1 million dollars.
So certainly know the rating agencies always like to see people having fair amount of money in their capital project funds to help pay for things, and then moving over here to the next one, which is the fun balance and the restrictions when your fund balances as of June 22 just wanted to point out so if
you look down in the bottom right hand side for the 2022 number.
You have 63 million dollars versus 68 million dollars last year.
Now, yeah, if you the lion share, that is that perpetual trust.
Milton, Hershey, trust that you have. There, that's 45 million dollars, and you can see how that number went down pretty dramatically.
This past, you know, between 21 and 22. It went from 54 million to 45 million, you know.
There's a little bit that was you pulling down a little bit more money, but there's a lot of it.
It's just market issues and Cheryl mentioned that you guys had have heard some information on that recently from some presentations from them.
So, but wanted to point that out, and then, reviewing over where where else your money is?
You know. Certainly we just talked about the so you have the permanent fund.
You have your student sponsored activity, funds.
Those are monies that are restricted. You can't use them as those are the kids.
Money. Then you have the capital projects, money that you've set aside, and that is legally restricted for use on capital projects.
You can't use it for anything else, and then you get over into your general fund, and you have non-spendable fund balance.
That's you know, inventory and prepaid things.
You've already spent cash out for that, so you can't turn around.
Spend that again, but then you get down to what the school district has committed, what the Board has set aside for particular items, including health care or health benefits, retirement stabilization, and capital planning 3 million bucks.
There is a new item this year, and then you're on assigned fun.
Balance is 5 million dollars. So you know, and the health benefits jumps out of me.
And you guys have do a lot of, do you have basically have self insurance.
So it doesn't take a bad year. Couple of sick employees to unfortunately burn through, burn through that.
So, but I like the I like the move to put the capitals budget right there in terms of the capital planning.
I thought that was a good move. It still gives the board flexibility to utilize those funds that they really feel.
It's important to use it for potentially something else.
But once you transfer it to the Capital Projects Fund, or sorry the Capital Reserve Fund it's really hard to kind of move it back it's very, very restricted in terms of what you can use it for.
So anyway, it's my comments. There.
Any questions on the fund. Balance, I think this is of anything.
This is probably the most relevant sitting here in February, as you guys are going through budget and everything else.
Terms of looking forward, but this kind of gives you the big picture overview and in terms of where your funds are at and what you have available to you is resources this Lindsey drew.
I just have a question regarding, and I know it's not in the slides, but the proprietary fund balances which I know food services is one of them.
The Granada Building, one being the other. How are those fund balances?
Accounted for, like as far as what use could be? We've had conversations, I think, each year cause that's really when we get a look at what that Granada Fund balance looks like.
And the we've had the least buy out for a number of years.
We no longer have that, you know, for the next audit, but that balance and total asset has been, you know, kind of continuing to climb over the years and looks like it's about close to one and a half 1 million dollars at this point in time is that restricted funds that
would not be able to be moved into other capital planning or capital reserve if needed.
It's a reasonable question, I think so. I guess what it all comes down to is we'll the direct answer.
Is that what is under this project fund is updated, you know. So you know.
But you look at the Food Service Fund, certainly that's underwater.
I'd never move money out of there, never! Because I think you get into it because there's a lot of Federal money that goes into there, so I would never move money out of there.
But that's not what you're asking. You're asking about the Granada Fund, and as at the end of the as a June of 22, they had basically 1.5 4 million dollars of capital at I'm sorry I'm cash and basically interfund receivables.
in there, and to me it's a function of what are you gonna do with the other half of this building, because these leases are, I believe, up.
So what are you gonna do with it? And does that dovetail into some kind of capital project improvement that you're gonna do?
But those dollars are not part of any of the fund balances of the general fund balance is that something that is separate that's what I just wanted to make sure that wasn't, you know, like an uncommitted fund down, you know, part of one of those numbers.
It's something that is separate, and it has its own.
Yes, thank you. 1,000,003, 92, and we do have discretionary use of those funds.
Alright, got a little long winded there on you. It's so.
It's unique. Yes, it is so. Excuse me.
So that's I was. That is, not represented on any of these.
Yeah, correct. So what I was showing you what I was showing you there earlier, the fund balance restrictions that is not anywhere in those numbers.
Erica.
And it's been separate because of the agreement because of the lease agreement and the expenses, and the way that was reconciled in the past, because, like for the Penn State health when they were leasing, they had their rent expense, and then their rent, and half of that
rent would go to room one but all of the expenses were in a separate space there, and that would be reconciled each year.
But there was carry over, so that if there needed to be some larger investment, and so that's kind of one of those things that we've watched that bounce there over the years, and as we as a board look to what to do with that space, going into the future, now that the receivable is not
going to be there. That's additional funds.
Thank you. Yeah, that is all been converted, I think at this point to cash. Is that right, Cheryl?
Or something pretty close to it, well, it ended at the end of October, so we still have the the finalization.
But yeah, it's okay. And so, Erica, just so you.
And there's the proposal in my proprietary funds.
It means it's a a business type entity. So it's looked at that like food service as a business type.
This because it's a leasing rental.
It's a business. So it's just. It's accounted for separately from the funds that we're just looked at.
Again. This is a just, a quick burden's eye view of your open-source fund balances, excluding the proprietary phones over basically a 5 year period of time.
Ranging from 59 million dollars to 63 million dollars.
So but went up certainly in 2021, you know.
Not a ton of movement in largely up in that non-spendable category which is largely the the trust.
So just couple of other things that I would point out to you and your review of the financial statements some of the things that we have in the in the financial statements for your you know kind of for your review, and for you to kind of like get a get a context for everything that's going on yeah.
we always point out the deposits and investments.
Where does this school district have their money? You know what kind of security is around that is it inappropriately collateralized that kind of thing. And that's that's all.
In the financial statements, and there are no issues there. Collateralization and making sure you guys are using appropriate investments is something that we do as part of our audit, making sure their funds are in the right places.
There's a note in there on the beneficial interest and the perpetual trust.
The Hershey trust, I would say, you know, in terms of looking down through things here, you know.
Certainly the long term obligations that includes some of the descriptions of the leases, things that you would see the first time, and then getting down and note 14.
We talk I do talk about, you know, risk management. We talk about.
You know the self insurance here at the district for for the medical.
So we point out some some information there and then. Finally, on pages 78. And I'm sorry.
87 and 88. We have your schedule expecting of Federal wards.
Kind of details out by Grant program. Where you where you spent, where you spent your money and what Federal wards you utilized and what was available to you in terms of they kind of to wrap the audit up.
There's there's 2 documents that you would have received.
One was the big audit letter, the other one would have been the required communication letter or board oversight letter pointed out some significant points of interest in the audit.
The the one thing I would point out to the second bullet point we talk about, you know, adjustments that are made in the auto process you know, there were some things you know, as we were going through the audit, there were adjustments that were being made but again. That all kind.
Of falls into our evaluation of whether or not the district had material weaknesses, and it's financial reporting, and whether or not we had any issues that we have to communicate from our professional standpoint, so as we go through and make our evaluation, the comment that we put
out there is that there are some adjustments made throughout the continent throughout the conduct of the audit, but none of those, in our in our opinion, you know, basically impact that you guys are seeing on a monthly basis a lot of the basic blocking and tackling around you guys getting information and the recording and the
reconciliation of accounts is intact, and that we didn't have any issues or had can have concerns about that.
So that's an important point in my mind as well.
Some of the other items listed here. There was no disagreements with management, and there weren't any real difficulties, you know, in difficulties.
Encounter during the audit. Certainly, you know, this year took some more time from from from a lease standpoint as well as from a staff.
Turnover standpoint. But that's kind of there's an element of that that's to be expected.
So, but beyond that I'll entertain any questions anybody may have.
Any questions or any questions from online.
Alright. Thank you very much, Mr. Welderson, I will say I know it's posted the Pdf.
If anyone would like a hard copy. I do a few bound copies.
If anyone's so inclined, just saying, Thank you, Mississippi. Since the approval of the audit is on the Board meeting agenda public meeting agenda tonight, do we need to make a recommendation like I don't think we've ever done that before in finance? Have we?
Okay, I thought the Finance Committee meets the recommendation to okay.
I don't know I don't remember doing that.
Okay, do you remember specifically as doing that? I thought so, when we moved to the presentation to the Finance Committee just for the go ahead and make a motion.
I would just make a motion that the Finance Committee recommend approval of the audit.
Since we received the full. Is there a second second? Is there any discussion?
Okay. All those in favor say, aye, aye, all those opposed say, no, okay.
The audit is approved to the full board.
Hey? Thank you very much.
Can we get assigned copy? Mister Welderson?
All right. We'll move on to the 2023 24 budget update, Mrs.
Purcell.
Alright!
Just wanted to touch quickly. I know we had talked that the and I've got a calendar here we'll talk about a little bit.
Just wanted to bring forward, because what I'd like to do this year and I know it's hard to look but do you have a copy in your in your packet?
All the departments turned their budgets into to Mrs.
White myself by February third couple got some delays, extensions. But that's okay.
We have everything now. So this is what we're working from.
So this is our starting point. So this, these are the requests. Budget.
So what they all the administrators have done is gone through their budget areas met with their staff gone through, you know.
Their job is to kind of let the request that are coming to them for their budget area, and then bring forward what they would like to see in their budgets for the next school year the 2324 school year the message to them was try and stay flat, so or if there are increases bring them
to budget meetings when we have them, just to make sure that we're fully prepared to understand anything that's being asked for in a budget that wasn't really expected.
Now surprisingly enough, there was this, there's some that are that are significantly up.
There's some that are actually significantly down. I look at like transportation, but we know actually, I think that is the byproduct of going to the outsourcing away from the Iu to the the contract that we approved this past summer.
So as we meet with Steve, so in my mind, as I look at this, I try and think about things or conversations just like I get an idea.
Now they do provide us with binder books, with all the backup as to what they're asking.
So in preparation for all the meetings, sit and go through and see kind of where we're at year to date.
Look at some of the details, to see what might be driving those those areas of change and like this is just a high level total.
We'll we drill down into all the detail, of course, but as we go forward with finance, what I anticipate doing just to make sure that we're all of our bases are covered in that the board understands where we start and the iterations along the way, so if we start with
this requested, as we have the conversations, and we're able to find tune either up or down, then we can identify what those changes are in bring those back and just have the conversations with the board like.
Hey! This is where we started but these are the, you know.
This is what we talked about, whether, whatever it you know, whatever it is like.
I know there's, you know. Why is, you know, I know, in buildings of grounds we're seeing a significant increase, as everybody is in utilities which I'm guessing that's part of the number.
But just you know that we can really, you know, are we at?
And then our job, as we sit from our lens with business office, is to say, did those numbers make sense and is it what we really want to bring forward to the board for approval?
So there's a we have all the meeting scheduled.
We had, I think Dr. Winslow shared that we had the elementary budget meeting Friday.
So that was the kick off of the Budget meeting season, which was always a nice place to start, because they're so well prepared and thorough and we'll go from there.
So if you go onto the calendar, I added, I know we had talked about this previously.
The Budget Calendar, but just to add a couple things just to kinda let, as we're thinking, it's specifically to finance committee meetings.
So what's going to happen now? March seventh.
Usually the, and I don't know if it's with governors typically the Governor's budget address is in February.
His budget address will be March seventh, Miss Whiten and I are going to our Pasco Conference the week of March thirteenth.
To March fourteenth, that Tuesday afternoon. They're having a pre-conference session that Pasco will really roll out the budget, and they'll boil it down.
For what does it mean for school districts? And that's what we want to get at our allocations and what does it mean for schools, and how believable is it?
So there's really not been chatter as to what to expect as we've talked, there's a significant increase in 2223.
I would expect, as we look at revenues, my expectation going into it to see a flat funding.
But we'll find out more in March. So following that.
So when we come back. March 20, seventh, what I would like, or what I will be bringing back to finance, and that at March 20, seventh.
That's not a quarterly meeting. It's nothing.
So we can devote that whole meeting to to budget.
And really it's time on the numbers which is where we need to spend that meeting.
So at that point we could start really looking at the revenues.
We'll have a salary and benefit. We will be meeting with Aia or consultants the middle of March.
Actually, they're fine tuning their projections on where we are with healthcare, you know.
Then we'll come back to the any kind of revised budget department budgets rather.
So from. Is there any questions on where we go from here, or anything specific to the budget process that anybody wants to ask?
Or to request. We look at or request. We bring back information on.
Oh, this is Kathy Ticker. So I'm just thinking that in a month that we come back and we talk about the budget for the entire Finance committee meeting that you'll have a better idea of the departments.
This look at their first request. And then we'll also have to talk about future planning project, planning all in one right at that meeting in March, so we can.
We should. Yes, okay, at least time that time. Have a tie into that.
So we kind of know what our budget looks like, and then to understand the impact of any future plans.
Yeah. Because then from there we go, we. So we have the whole month of April.
So that'll be coming out of finance in March.
We have the month of April. Then 2 have, you know, kind of come away from March with some recommendations of where we're going with our proposed proposed final budget, which will be presented in board, approved May eighth so by April 20 fourth we will have the
proposed the proposal Budget to talk about at the April finance.
Meeting, and then have that board approved in the first meeting in May.
And that's set by. That's just the proposed final in April.
Okay, we can still come out of March with some. I would think we would have some perliminary ideas of where we're heading with. You know what?
What that budget looks like. And we want to plan for future any kind of future projects.
What do we want that potential tax increase to look like at that time?
But and then we have April to talk about it, and then bring it forward in May, and then even from May to June, typically, there's not much changing from May to June, but we have that final month to talk about it okay, that sounds good does anyone have any more. Questions.
About the budget process I. This is Lindy true. I would just ask that when we kind of dive into that conversation, that there be, you know, some information behind what was requested, but not in what's coming forward.
So you know what the asks are, especially at the building levels.
And what's not doing there. I know that there's in the past we were in kind of different financial times.
There was usually a conversation around the staffing requests, and then what was brought forward as the recommendation.
The process has changed a bit over time, but you know, looking at like athletics on this preliminary showing of 45% increase, you know what is part of that.
And what is not coming forward in buildings. That was, you know, requested for other departments.
If this is coming forward right and I did, wanna be clear.
So anything like that. The direct budget are everything but salary and benefits.
So it's strictly what they're at the stuff they're asking for.
The objects 300 to 900 but it doesn't include any of the salary benefits.
But no, what I would like to do then. So if we start with requested in any plus minus change, and then we can talk to any significant plus-minus changes that we felt were significant that we, as the administrative team, and and that's why we are as an administrative team excuse me
like Dr. Winslow, and then Dr.
Schumann sitting in trying to sit on Omar the buildings, and you know, Dr.
Rice Snyder with more of the operations just that we have.
It's not my budget or Mrs. White's budget.
It's really the administrative team, so that we can step back.
And, as you know, look at some of this stuff and say, Okay, we're do.
We think we need to go with this, and then bring some of those conversations forward.
Thanks. I just think sometimes it's hard, because so many things are included in those building level budgets you know, when you look at art, music, education, all of the programs, you know, that happen inside of it.
And with athletics, being a standalone item, it's hard to reconcile at times you know, where we're providing additional, you know resources or where those requests are.
So!
I'll look at buildings, how we do. But we can take a look at the building across across the buildings. And what from now, you know, Ell, elementary middle school and high school is going into each of those programs programmatic areas anyway.
Okay, we have a few more minutes, and we have the 2 more agenda items.
So we can move on to the monthly apple 2223 general Fund revenue and expenses, and we have, so as.
Now that now that the audits behind getting this is why it's been working tirelessly to get us caught up with year to date, financials.
So we do have pretty much everything posted through. These are as of January 30.
First there will. There's still some things that need to be adjusted for like working with the Tax association, I did make some adjustments.
I have not moved monies yet from the Tax association to the school district, or to the townships still working through those final reconciliation pieces.
But I did, so. What's included in current real estate taxes and current occupation tax is year to date through December 30.
One, so at least put numbers in here to get us closer to in the ballpark of where we should be year to date.
So there's there's still some things that we're working through with the like, I said, with the wrapping up the tax association.
Just so everyone here does know that the Tax Association, officially employees last day will be Friday, and then after that, it's just it's all the clean up, all the there's there's still quite a bit to do.
But I think from a operational standpoint, where to get, we're in a good place that they can click section security at least for one of them.
I didn't. Wanna mention to you from. You'll see interest in. Come in here is up up.
We have been working with another institution, pizza, which is a Pennsylvania school district.
Liquid Asset Fund, which is one of the board approved institutions that we approved.
Probably back in August. So we have been working with them to get monies moved over there.
I think this is what got the last of the wisdom which that was the bank that we had the 4 million dollars sitting at that was sort of tied to the Tax association.
So have managed to untie it. And we've gotten those funds out which, at making it probably at least 4 and a half percent where we moved it to so very happy with that move. Yeah.
So we'll keep working on thank you for working on that.
That took about a year, I think. Oh, it's it's been!
It's been a challenge. But no, thank you. So we're we're in a good spot with that.
Are there any kind of question on contracts, either the either?
This tonight's contracts, or March thirteenth or the 2. The Rfp.
Or the bid documents. And you can see the Rfp.
And the bid. Documents are not public documents. You should see them on your on your side only until the Board approves them officially.
Tonight they will go published tomorrow.
Okay. Any other questions.
Alright. May I have a motion to adjourn the Finance Committee meeting at 60'clock?
Motion.