[0:02] Welcome to the Reagan Academy Board of Trustees meeting. Today is March 17, and the time is 1136.

[0:11] In attendance, our Joe Millward. Wrong Squad. And the Rogers. Joy Heron. Justin Riggs.

[0:24] Thank you.

[0:24] Well, we give the meeting with a prayer and then we'll have the pledge by Oste.

[0:30] We'll see how that works.

[0:34] Our father and heaven were great for this day and for the time that we have to take out

[0:39] of our day to think about things going on in a regimen.

[0:43] The SC2 bless the teachers of administration as they try to help each of the children grow

[0:52] develop and we pray for kids who attend school here that they can have clear

[0:59] minds and learn the things that they should. These lessons as we talk about the

[1:05] things happening in the school and we ask for this in the name of Jesus Christ

[1:17] of the United States of America and to the Republic for which it stands one nation under God

[1:25] indivisible with liberty and justice for all.

[1:31] I think it works better if the person online

[1:33] is leading it. It's more smooth than the other times. Thank you. Okay, we'll start with the approval of

[1:44] February minutes.

[2:32] Amber, would you change where it says CTE in those spots? I probably

[2:37] said that. It should be CCA. Oh CCA. Yeah,

[2:43] that's the College of Career Awareness.

[2:47] CCA, that was probably me. That's the nursing.

[2:52] They may have changed a lot. In the CTE

[2:55] program, they do some career awareness sometimes, yeah.

[5:34] Board training.

[5:40] So if you remember there's a couple of state auditor trainings for board members module one is one that we need to complete it's been we split it up in two sections.

[5:52] So just say this will be an annual type thing until further notice, but if it seems familiar, probably.

[6:02] in Utah State Board of Education's training on audit committees and school

[6:10] districts and

[6:11] charter schools together are referred to as local education agencies or LEAs.

[6:16] This series of training modules is designed specifically to help your LEA governing board

[6:22] establish its audit committee and, if applicable, its internal audit program.

[6:27] The training is also designed to help increase your understanding of audit committee responsibilities

[6:32] as outlined in Utah Law, which is technically referred to as Utah Code, and Borgool, which

[6:39] is technically referred to as Utah Administrative Code.

[6:42] Is this training really that important?

[6:45] Maybe that is a question for the school district in New York State that lost over $11 million

[6:50] in an investment, at least partly because their audit committee and audit functions were

[6:55] ineffective.

[6:56] This online training series and the associated informational materials are provided by the

[7:02] Utah State Board of Education, also known as U-S-B-E,

[7:06] as mandated by Board Rule R277-113-3.

[7:12] First, a word to the presiding officers of L-E-A government boards.

[7:16] You have the responsibility to ensure that all board and audit committee members

[7:21] complete the training modules that are applicable to them.

[7:24] The training must take place as part of the onboarding process for board members.

[7:28] So, every time new individuals join the board and when board members or committee members

[7:34] are asked to serve on the audit committee, we must complete the training.

[7:38] Residing officers must ensure that the training resources provided by the USBE are used

[7:44] and that the training follows training and certification requirements in Utah law.

[7:49] The training includes three modules.

[7:52] The first module is for all members of an LEA governing board.

[7:56] The second module is for board members and other individuals who are members of an OEA's audit committee.

[8:02] And the third module is for all audit committee members of OEA's with more than 10,000 students.

[8:09] All board members are welcome to complete all the training modules if they would like.

[8:14] However, you must add a minimum complete the training modules specific to your teachers.

[8:19] Marching one will provide knowledge and tools to help ensure the boards out of committee

[8:24] fulfills its role to help the LEA be accountable in the achievement of its objectives.

[8:30] Please know that in addition to this training series, there are many resources available to

[8:34] help you.

[8:36] For example, the USBE Internal Audit Department has developed several white papers and information

[8:42] documents.

[8:43] The Office of the State Auditor also has educational materials that are available.

[8:48] Further, an audit committee can contract with a consultant to assist with an audit.

[8:53] To ensure we are all starting on the same age as we begin the training, here are a few

[8:58] basic things to keep in mind.

[9:01] First, each local education agency, meaning every school district and charter school, must

[9:08] comply with the laws that are applicable to them.

[9:10] Second, from the phrases LEA administration or administration are used, it means an

[9:17] LEA superintendent or director, deputy or associate superintendent or director, a business

[9:23] administrator or manager, or another LEA educational administrator designated staff or a designated

[9:32] educational service provider.

[9:35] Finally, just like there are professional standards that an educator must follow to maintain

[9:39] their license. There are professional standards that external and internal

[9:43] auditors must follow to maintain their licenses and certifications. As you

[9:49] know, once you are a member of a board who either volunteer for or are given

[9:53] committee assignments, alternatively you may be a community member who has been asked

[9:57] to serve on a committee with board members. One committee that every LEA

[10:01] governing board must have regardless of LEA size is an audit committee. This is

[10:06] required by law. In this module you will learn one, the purpose of the audit committee. Two,

[10:13] how to select audit committee numbers. Three, how to appoint an audit committee chair.

[10:19] Four, information about the audit committee that is required to be on the LEA website.

[10:25] And five, some suggestions about how to run audit committee meetings. The information

[10:31] including in this module is based on requirements in Utah law and board rule.

[10:35] The primary purposes of an audit committee are to provide oversight of audit processes,

[10:41] the internal control system, including risk management, compliance with laws and regulations,

[10:46] and other similar activities. Specific audit committee member responsibilities are covered in

[10:52] modules two and three, as noted module one covers some basics. The composition of an LEA audit committee

[10:58] is given a law, and it's based on the size of the entire board.

[11:02] If an LEA has seven or more members, then three members of the board must serve on the

[11:08] audit committee.

[11:09] If an LEA has six or fewer members, then two members of the board must serve on the audit

[11:14] committee.

[11:15] However, board members are not the only people that can serve on the audit committee.

[11:19] An LEA government board can determine to have community members serve on its audit committee

[11:24] as well.

[11:24] We recommend that if community members are included on an audit committee, the board

[11:29] consider individuals with audits, finance accounting, legal or compliance backgrounds.

[11:35] Individuals with these backgrounds generally have knowledge, skills and experience that

[11:39] will help the audit committee fulfill its responsibilities.

[11:42] The board should ensure community members do not have conflicts of interest or that any

[11:47] conflicts of interest are disclosed.

[11:49] We're going to look at guidelines on how many community members may serve on the audit committee.

[11:54] However, we recommend that community members not outnumber the board members on an audit committee.

[12:00] As board members have a fiduciary responsibility that includes a higher expectation of accountability from those they represent.

[12:07] The law also states that administrators or employees of the LEA must not be audit committee members.

[12:13] This means that you are superintendent, this is a administrator, director of finance or

[12:19] accounting, principal, a teacher, or any other LEA employee cannot be a member of the

[12:25] audit committee.

[12:26] The role that these individuals may have with the audit committee will be discussed later

[12:30] in this training.

[12:31] After every board has selected the board members and a community member if desired to serve

[12:37] on the audit committee, an audit committee chair may be selected from the members of the board

[12:42] on the committee. Generally, this is done in accordance with by-laws or policies of the board. However,

[12:49] in absence of a by-law or policy, a committee chair could be selected by committee members,

[12:54] board leadership, or the full board. We recommend audit committees have a committee chair to ensure

[12:59] effective facilitation of committees and to clearly identify a contact for audit committee

[13:06] communications with auditors and other entities.

[13:09] Length of term for committee members and the chair are generally included in policies

[13:14] outlining board number duties.

[13:16] In the absence of such policies, the governing board, board leadership, or the committee

[13:20] will determine the length of term.

[13:22] At the end of the term of service on the audit committee, the process starts again following

[13:27] the same steps previously outlined.

[13:29] Generally, there's no good to how many times a member may serve on the audit committee.

[13:34] With your audit committee chair and members in place as well as the determination on who will staff the committee, you are ready to do two things.

[13:42] One, update your website and two, start having meetings.

[13:47] The law requires the LEA governing board to maintain on its website the names of the governing board members who serve on the audit committee with the chair designated.

[13:54] Community members serving on the committee are not required to be listed on the website,

[13:59] so we recommend it.

[14:00] If the LEA is required to have an internal audit program in accordance if you tell

[14:04] us, the name and contact information of the internal audit director as well as the LEA's

[14:11] annual internal audit plan must also be on the website.

[14:14] The website should be updated with the information required to get the website changes to ensure

[14:19] transparency and accountability.

[14:20] The length, frequency, and structure of meetings are generally outlined in the policies followed by the board.

[14:27] In absence of a policy, meeting logistics may be determined by the LEA governing board, board leadership, the audit committee, or the committee chair.

[14:36] We recommend the audit committee meetings be held regularly.

[14:39] Board meetings follow requirements of the Open and Public meetings act when a quorum of board members is present.

[14:45] As a society in Utah law, because of the protected and confidential items discussed,

[14:51] the Audit Committee does not and should not have a quorum of board members in attendance.

[14:56] If there is capacity for a non-audit committee board...

[15:00] Member to attend, without invoking open and public meetings act, the board should have a policy procedure to handle the situation. Best practice for meetings is to establish an agenda. Who prepares the agenda? The audit committee chair ordered as a committee may establish the agenda. The audit committee chair may also prepare or direct others to prepare materials, distribute materials, present materials, and track action.

[15:27] If LEU staff are designated to help, the audit committee chair should consider which materials

[15:33] and discussions staff can help with that will not impact the committee's ability to fulfill

[15:39] their responsibilities.

[15:40] We will provide additional information on this later.

[15:44] The board's internal auditor is applicable may act as staff to the committee, meaning that

[15:49] they will work with the committee chair to establish and distribute the agenda, prepare materials,

[15:54] materials and track actions. The board's internal auditor is not a voting member of the committee

[16:00] and the board's internal auditor must not be supervised by and does not report to LEA

[16:06] administration. We recommend the policies followed by the audit committee include that audit

[16:11] committee meetings include consideration of three specific segments of the meeting. You may

[16:16] not need each segment for each meeting, but when developing the agenda, you should consider

[16:21] is that segment of the meeting is necessary.

[16:24] The three segments are segment one, committee numbers only,

[16:29] segment two, committee numbers with the internal audit

[16:33] director only, is lookable.

[16:36] Segment three, committee numbers, internal audit director,

[16:39] and invited guests.

[16:41] Let's talk about each segment, recognizing

[16:43] that there may be other segments that the committee may

[16:46] wish to include as well.

[16:48] For example, you may want to have a segment with committee

[16:51] members and the external auditor only in attendance. The committee members only

[16:56] segment other moving gives the committee the opportunity to speak candidly on

[17:00] issues without administration or an auditor present. It is also an opportunity

[17:05] for the committee to discuss the performance of the internal auditor and or

[17:09] internal audit function applicable. This time could be used to address any

[17:13] unanswered questions and to bring the group into agreement on the topics of

[17:17] and upcoming discussion. The audit committee chair should carefully consider if it is appropriate

[17:22] for the board's internal auditor or LEA staff to prepare the agenda or material for the segment

[17:28] of the meeting. The next portion of the meeting is the committee members with the internal audit

[17:33] director-only segment. Recall that the segment will only be applicable if the LEA is required by

[17:40] law to have an internal audit director, or if the LEA has chosen as a best practice

[17:46] to hire an internal audit director.

[17:48] The time with the internal audit director

[17:51] allows for open discussion on risks and internal audits

[17:54] without the individuals or SDs being audited present.

[17:58] This portion of the meeting is crucial,

[17:59] especially when matters of fraud, waste, abuse,

[18:03] and noncompliance come to the attention

[18:05] of the internal audit director or committee.

[18:07] This time also allows the internal audit director

[18:10] and opportunity to speak directly

[18:11] with their supervising body.

[18:13] The director may discuss their performance, the performance of internal audit staff and the department,

[18:20] compliance with audit incentives or other items not relevant to LEA administration.

[18:25] The portion of the meeting that allows for invited guests is the committee members, internal audit director, and invited guests segment.

[18:34] This is when the superintendent, business administrator, legal counsel, or any designated employee may attend the meeting.

[18:40] They attend to collaborate and provide information as well as answer any questions the committee may have.

[18:47] Once in place and fulfill their purposes guests, the community chair will determine if they should be excused from meeting.

[18:53] This will help to ensure effective use of their time, as well as ensuring that protected or confidential matters are being shared only as needed.

[19:02] At this point, you may be asking just how important this information really is and if it will really make a difference.

[19:07] It would have made a big difference to a school district in New York in the late 1990s and

[19:13] early 2000s, which is when one of the largest embezzlements in public education occurred.

[19:18] For context, in 2004, Roslyn Union Free School District had an enrollment of 3,300 students

[19:25] in five schools.

[19:26] The workforce included approximately 610 employees, and its operating expenditures were approximately

[19:33] monthly $70 million from the period of 1996 to 2004 over $11 million were used for personal

[19:42] expenses. The audit stated that this apparent misappropriation was able to occur because the

[19:48] top level managers in the district could override the system. The board had to abdicate in its

[19:54] oversight hold and essentially did not monitor the district's financial operations.

[20:02] And then

[20:03] You may be asking, did Roslyn School District have an audit committee?

[20:08] Yes, it did, but it wasn't functioning effectively.

[20:11] As we continue this training, and in the next modules as well,

[20:15] we'll provide some additional information about what happened in the Roslyn School District,

[20:19] and how it could have been prevented, or at least identified earlier,

[20:23] by implementing the concepts of this training.

[20:26] The information on Roslyn comes from two audit reports from the office of the New York State

[20:31] First, anatomy of a scandal January 1, 1996 to June 14, 2004, and second, independent audit services July 1, 2001 to June 30, 2003.

[20:45] As you learned in the introduction to this module, as a board member, you have been tasked with governing your LEA.

[20:53] An important tool to help with governance is assuring services.

[20:56] These services are intended to provide assurance or give confidence to you, federal and state and local policy makers, taxpayers and others, about LEA finances, compliance systems, operations and performance.

[21:12] In 2020, the Utah Office of the State Auditor released a statement in its fraud-risk assessment implementation guide that it regularly receives complaints of fraud or abuse by local government officials.

[21:23] and the level of public concern is significant.

[21:27] To address these and similar concerns, various laws and rules have been passed that require

[21:32] assurance services, including external audits, internal audits, and monitoring.

[21:38] To fulfill your governance rule, you will need to understand the different types of assurance services.

[21:43] Before we get to those details though, there are a few basic things to know.

[21:47] First, it is common for all assurance services to be referred to as an audit.

[21:51] While the generic term audit may be somewhat accurate for these services, audit is a technical

[21:56] term that denotes independence, opportunity, and quality things we'll discuss later.

[22:02] To avoid confusion and to avoid a false sense of confidence, the term audit should not be

[22:07] used in reference to all assurance services.

[22:11] Assurance services include external and internal audits as well as monitoring compliance and

[22:17] risk management functions. Understanding the assurance each of these services provides

[22:22] is critical to ensuring the LEA will be able to achieve its objectives. Let's talk

[22:29] about some of these assurance services. An external audience and appraisal activity established

[22:34] under the direction of an individual or entity outside of the LEA to examine and evaluate

[22:41] the adequacy and effectiveness of the LEA. On an annual basis there are at least three

[22:47] external audits that generally are required for LEAs. The first is the financial statement audit

[22:53] which accompanies the annual comprehensive financial report or ACFR. The next is the

[22:59] single audit which is the federal compliance audit and last is the state compliance audit which is

[23:05] Similar to the single audit, but on a state level, an LEA government

[23:09] board is responsible to select an independent auditor or a CPA firm to complete

[23:15] these audits. Additional external audits may be done from time to time by

[23:19] other entities such as the USBE internal audit department, Office of the State

[23:24] Auditor, Office of the Legislative Auditor General, and US Department of

[23:29] Education. Independent auditors are required to follow professional auditing

[23:33] standards. We'll talk more about this later. For now, let's focus on the insurance that

[23:38] is provided by external audits.

[23:42] Okay, that's 1740.

[23:48] And we have an audit committee,

[23:51] Astia, and me, and we both have backgrounds in accounting and finance. Any questions on

[24:00] the training or things that were required to do?

[24:07] It's an external auditor, a squire, a zoo, and the music, so that's not the same thing.

[24:12] Not raw, that's what I mean.

[24:14] I would go background and buy a ship, and a ship would go down the roadway.

[24:20] Make sure your name's same, because I'm the idiot.

[24:25] We'll have good extinguished, we'll hold you slightly out.

[24:29] It's not raw and squire, it's a squire company, an LLC.

[24:33] Do you have any connection to the aims of those littered intentions?

[24:37] I was wondering, do we have it on the website?

[24:42] Who is on the audit committee?

[24:43] It should be.

[24:45] I mean, maybe to check, I didn't see it on the board member's site,

[24:52] with all the minutes, so if it's somewhere else,

[24:55] we're probably covered by it.

[24:58] Otherwise, that would be an action item.

[25:00] I

[25:04] thought it said it under a SQL board where the search is.

[25:07] Oh, there it is.

[25:10] Oh, there it is.

[25:10] And in your data on it, financial committee member, yeah.

[25:15] And then, yeah, in that case, we need, and it's next part of names.

[25:21] We need to designate who the chair person is of the committee.

[25:26] Yeah.

[25:26] That was the other thing that they mentioned.

[25:28] So yeah, it looks like we're covered on identifying who's on the audit committee as the treasurer

[25:37] Osteon and you want to take the

[25:40] Responsibility chairperson

[25:42] Okay, so maybe we

[25:46] So let's let's add that to the that web page

[25:50] That she's the chairperson for that

[25:53] Then I think we'll be covered

[25:56] Yeah, and I think in general

[25:58] things have been going just fine like how the extra lot has happened and I feel

[26:06] like we have a pretty good handle on it. We talked to our auditor last year as they

[26:11] did go over a lot of policies so they didn't have a definitive answer but this

[26:20] year's audit they made so we always run into the problem of an internal audit

[26:25] director who's not an employee but with our situation like so they looked at

[26:32] this and left it as that but maybe in the future we may have to have you know

[26:40] yeah but we obviously have to look at the school so so we're a little we're a

[26:44] little strapped a little bit because you can't have three more you can't have

[26:48] three members because that's a quorum so you do have to have somebody and so most

[26:54] Most schools have, you know, the director or business administrator, but so they, they, we looked at this page and updated a few things with the audit, but that was sort of a question that was for the time being was kind of left. So we'll have to maybe get more advice as those roll through. So we're just kind of set up a little different.

[27:18] But yeah, if they do, I like that as an issue.

[27:21] Maybe we can look into just hiring and accounting firm

[27:25] to do that function for us.

[27:28] We already have an extra lot here, but yeah.

[27:32] That was the only other thing I can think about as far as that.

[27:40] OK, thank you.

[27:42] And we'll move on to the school fee draft.

[27:47] Okay so last board meeting in February we reviewed this we had no public

[27:54] comment so this is the second opportunity for public to make any comments again

[28:02] I don't see anyone here I haven't gotten any emails or anything to report as

[28:05] well because obviously somebody could reach out that way so as far as we know for

[28:10] For the public, they're good with this as far as we've heard.

[28:15] There were no changes from the previous board meeting.

[28:19] So it is as it was in its first draft or opportunity.

[28:25] So if

[28:28] there's just general questions about the whole thing, we can answer those.

[28:32] But essentially, according

[28:39] to the law, we can approve this now that we're in the meeting.

[28:43] we don't have to wait for next month we can approve it once we've given

[28:47] an opportunity to review it a second time.

[28:52] Then I just move that we approve the school fee schedule is presented.

[28:58] I'll second out.

[28:59] Colin favorite.

[29:00] Bye.

[29:02] Motion carries 5-0.

[29:11] I can move on to reviewing the school board terms.

[29:18] So it's on the government calendar, but because we had some vacating due to not

[29:24] having kids at the school, I think we're okay for this year, but it just was on the calendar,

[29:30] so we just needed to make sure, because sometimes two-year terms are up. But I think everybody,

[29:36] we just want to kind of check to make sure we didn't need to reappoint anyone, which may be the case.

[29:45] And I guess we should look and just make sure we're a little staggered. That's I'm not sure that we're

[29:50] Yeah, we may have got this all kind of helpful to be staggered instead of an all-exas on this one

[30:23] So,

[30:28] yeah, we may

[30:37] need

[30:42] to do, well, probably not enjoy it because she was appointed, but her term would be running right now, right? So, we're all these running right now, right?

[30:57] So like in May or June, we may want to, as I put, May or June, we may need to just re-appoint

[31:05] and extend the two-year term for these three.

[31:10] So that's where I was kind of maybe thinking, because Amber and Ron were good, yeah.

[31:18] Your term will go to the 2027 basically.

[31:21] so it looks like April here so we may we may want to put that in I mean in

[31:27] jane for April just just to reappoint those

[31:35] three members I

[31:39] think joy was on

[31:40] that

[31:42] all as well

[31:43] four years

[31:44] all right sounds good we don't have any public here for public comment so we'll move

[31:57] to Director Report on EL3C Financial Planning and Budgeting.

[32:03] Okay, we are getting to that time of year.

[32:06] It seems crazy, but so the fiscal year winds down June 30.

[32:11] So really, you know, starting April, May, June,

[32:16] we really start to fire up these things.

[32:19] So financial planning and budgeting is EL3C.

[32:24] I'll just read this one because it's short, but some of them are long, but the CEO shall

[32:28] not make plans at risk incurring those situations or conditions described as unacceptable

[32:33] in board policy, financial conditions, and activities to omit credible projection of revenues

[32:39] and expenses, separation of capital and operating, operational items, cash flow, and disclosure

[32:45] of planning assumptions, and three provide less for board progatives during the year than

[32:51] set forth in the cost of government policy. I interpret EL3C to mean that I

[32:58] successfully create and balance an annual budget that I update and amend the

[33:03] budget with Board approval that I have prepared the budget in a timely manner to

[33:08] meet deadlines and acceptable time frames for optimal planning and approval and

[33:12] that I maintain financial positions and priorities that are set forth by the board.

[33:17] I am in compliance with the L3C for the following reasons or evidence.

[33:23] I manage a general reserve account as well as a money market account, a technology repair

[33:28] and replacement account, a building repair and replacement account and a bond account.

[33:33] To bring security to our financial position, I use historical data and conservative estimates

[33:38] to ensure the stability of the school in regard to finance for the future.

[33:42] Two, I created a line item budget proposal in addition to the AFR, which was mentioned in our training today.

[33:49] That's the annual financial report budget that we monitor to credibly plan for each fiscal year.

[33:57] Three, I track and review expenditures in flexible spending categories monthly.

[34:03] I'll explain that maybe in more details we go through the budget.

[34:06] As is, I give a detailed report monthly to the board of all in the activity of the accounts

[34:13] managed.

[34:14] Five, I keep the board informed about the assumptions and predictions that are used

[34:18] in formulating the financial outlooks of the school.

[34:22] Six, I've completed external audits with Squire and reported to all departments.

[34:27] Seven, I've met the continuing disclosure required for the 2016 series bonds and I've met

[34:35] the requirements to keep our board rating by S&P at a stable level of BB plus. So that

[34:43] is my report and questions on that. As part of that, we were going to go through the

[34:54] budget to actual to kind of get a live demonstration of that process. So for those of you who are

[35:04] kind of new to this. I'll kind of try to explain it in best terms as possible. So the top

[35:11] part is income. These are the sources of our revenue. So the top part is all our federal

[35:19] money. So our total federal money that we expect to bring in is $367,000. We have brought

[35:28] in 151. Federal is mostly reimbursable things so we spend the money and then ask for reimbursement

[35:39] so we fully expect that by the end that's what we will bring in. So this is kind of what we've

[35:47] been able to reimburse. So we've only reimbursed of it less than half of what should be coming.

[35:53] The next

[35:54] part is local income so those are things kind of the school generates so those could be anything

[36:00] from selling a Reagan t-shirt to a ticket to the talent show, anything that we create

[36:06] revenue, lunches to adults. And so, this is what we expect to bring in. That number's

[36:14] kind of based on actually the numbers down here. So, this includes all of the fees if you

[36:21] will, but we just approve. So then the total for local is here. The biggest

[36:29] category and where the bulk of our budget comes from is our state. So you see

[36:34] we get some for kindergarten, K through 12. This is our WPU, our weighted pupil

[36:39] unit and things. Then the 31, 32, 33, 34, 35 and 38 are kind of special programs

[36:48] within that. So these would have some restrictions to them.

[36:54] They're provided for certain programs

[36:58] and not just general study. So all of those added together, our total state is $7.8 million.

[37:07] And if you add the federal and local into that, you get a total budget of $8.6 million.

[37:13] dollars. So those are kind of the things in. Then it starts with the expenses, which are much longer.

[37:26] So you'll see here, this is our mortgage payment, if you will, that comes out twice a year.

[37:35] So we're budgeted for 280. You can see it's going to be the same amount, but it's hard to predict exactly

[37:44] how much principal. So you can see we actually paid $290,000 in principal. We were expecting

[37:53] to pay $280,000 by the amateurized theme. But then you see here that we paid a little

[38:00] bit less in interest. So total is going to be about what we expected up here.

[38:06] The next is all the instructional things. So your teacher salary and benefits, substitutes,

[38:12] teacher aid, so people, and then broken down into the benefits here of social

[38:19] security, retirement, insurance,

[38:25] any services we need that affect instruction

[38:29] or all-in category 1,000. So supplies, textbooks, all of these things, total

[38:35] instruction is 4.8. So large part of our budget goes to people and instruction,

[38:41] where that's where it should be.

[38:44] So the next categories are support services.

[38:48] These are things that we may contract out

[38:52] for psychologists, occupations, therapists,

[38:58] speech, all of those things.

[39:02] And their salary's 22 is basically the library.

[39:06] It's a separate category from instruction.

[39:09] and so you'll see that and then 24 is all the admin, so principals, assistants,

[39:18] secretaries, all their salaries and benefits and then other services that we

[39:26] have to administer programs in the school.

[39:32] Also an administration is kind of

[39:34] bond, fidelity, insurance, phone, all of those types of things and then Central is basically

[39:45] Lana. Because we're an LEA and a school, this category would be filled up if you had

[39:52] a district office. This is where all the district office goes. Lana is really the only one that

[39:57] So it's considered a district type employee.

[40:05] 26 is facility, so anything doing with the building, so as far as personnel and maintenance

[40:13] and then cost for electricity, taking out the garbage, cleaning services, repair and

[40:22] place, kind of maintenance of the building. What's that?

[40:28] I'm seeing that.

[40:29] And then some supplies, you have gas and toilet paper and all those things.

[40:36] And then the last category is 3,100. That's all our cafeteria.

[40:39] So personnel, cost of food, cost of equipment, then

[40:48] you get down to the end.

[40:49] And so what I do is this would be the original budget that I had in there and as the expenses

[41:00] go in time, you kind of get a percentage of where we're at.

[41:05] So what I'm looking at is for the most part, we're pretty on with like salaries for teachers

[41:14] and stuff.

[41:15] There is some variation because maybe we have more subs than we anticipated, maybe we have

[41:21] long-term sub. So I kind of watched these percentages. So right now we should be

[41:26] somewhere below 66.7 because we've had 16 out of 24 paydays, if you will. So those

[41:36] I monitor but not as much as, say, like, these supply material type things because

[41:46] these are ongoing costs that may not be anticipated.

[41:50] And so I watched those monthly spending ones

[41:53] just to make sure we're staying within those things.

[41:56] So some categories you might see over 100%.

[42:05] Like this one example, unemployment's really hard

[42:08] to like figure out how much I based it on what last year's

[42:11] was.

[42:11] So although that looks like we've gone double over our budget,

[42:15] it's only 25 bucks.

[42:16] So, you know, watching, watching those to make sure they're not that $100,000 categories

[42:21] or millions.

[42:24] So this is an example like we've kind of gone over in supplies and so I base this budget

[42:30] on kind of what we spent last year and so it costs it probably gone up a little bit but

[42:36] so we'll probably start not buying as much to other paper because we actually have been

[42:42] stocking up.

[42:45] So any questions about the budget?

[42:48] So what I will start doing now is now that we're getting close to the end of the year.

[42:58] So this is like a budget.

[42:59] You guys approve the budget, but there's forecasting that I'm doing as well.

[43:04] So I will start to go in, you know, starting really in earnest in April, May and June.

[43:10] And I'll start adjusting the forecasting of what the budget may look like.

[43:15] So for example, if I'm over a little bit in one category, I'm going to likely, for example, go down here.

[43:26] You'll see in this equipment, we've $6,700 is planned to spend on these, but we have spent none.

[43:36] So I will start to kind of adjust the budget to make, so if this were the last day I would

[43:45] basically make the budget 50,492 so that the budget reflects actual spending and but we're

[43:55] over $7,000 so that may, you know, the budget for those, these may turn out to be zero.

[44:02] So we may not have to spend any of those.

[44:04] So if I amend the budget to make that zero,

[44:08] we suddenly have $50,000 extra dollars.

[44:10] And so the main thing is to try to hit the number down here.

[44:17] So we're a little bit ahead of the spending that we thought.

[44:20] But again, we haven't brought in a lot of revenue as well.

[44:25] So those are kind of what I look at.

[44:27] So by the end of June, we'll have a new budget.

[44:32] will amend the budget to reflect you know kind of actual spending on that

[44:38] thing so from here on out about this point it's a good time to talk about that

[44:43] because when I do the budget to actual you may see some forecasting

[44:47] adjustments in those categories so if you were to look today and say hey 50,000

[44:54] was for equipment and next month you only see 20,000 dollars in there that's

[44:59] Copy because I know.

[45:00] We're going to make $20,000 but we're probably not going to go over there and I'm going to distribute it somewhere else.

[45:08] Any questions on that? That was a rough shot.

[45:15] So last year we had some interesting big things that are kind of one time things like the playground and the lighting.

[45:26] do we see any like the phase two of the lighting that we're going to finish up or are there

[45:36] things that I don't know about. We're kind of looking at those things now. There might be

[45:44] some painting, some flooring, upgrades, some strip and wax, but as of now we don't anticipate

[45:51] anticipate those big purchases. So it's where you'll see those is right here because they were

[45:58] finished after June 30th. They went on this year's budget. Yeah. So we were kind of fat last year

[46:05] if you will. So we might be a little skinny this year. But you can see I took the normal

[46:11] you know cost of repair maintenance and just added that. So like we may, you know, we may not get to

[46:18] this point. Yeah. So the major categories that typically are affected by the budget are these repair

[46:25] and maintenance and then kind of the equipment things. So we've kind of spent money when we've

[46:31] had money and we don't when we don't. And so but this year is a little thin just because we had

[46:37] that big plops too big yeah did we accomplish everything off of the lighting

[46:46] options that they wanted I think so yeah that's good I thought I thought there was

[46:54] the moving light things still I'm not sure they did the they did the

[47:09] So if there is something that they think hasn't been accomplished yet, should we get it paid for now and finish that project or should we project it on to next year's budget, budgeting wise.

[47:25] that's hard to answer because I've not been approached by either of the teachers

[47:29] that were involved in getting the original bits to add anything to it so I

[47:33] couldn't really speak on that I don't know I haven't heard anything I haven't

[47:39] heard anything that nothing was okay but we both think we heard something about

[47:46] the moving lights yeah so maybe one of us should go ask Grendel if she wants

[47:50] you to talk to you about this that she should probably come up to you about this

[47:54] Probably as a board member know I think we'll need to approach me. Yes, that she needs to do this

[47:59] They approached me a couple of years ago with getting bids together for what

[48:07] For what we approved and they would need to go through that same process. Yeah, I'm not aware of any

[48:12] That's what I would like to be able to say is I don't know anything and if you need to do this

[48:16] You need to go through the same steps that you need to go through

[48:21] So

[48:21] So yeah, I mean, the things that I heard were like in passing at an event of, oh, I hope

[48:29] that we were able to add this part on later on, like conversations, not like someone approached

[48:35] me and said, hey, go pressure the board. That was not at all.

[48:38] No, no, those could be. I just, maybe they're shy because we just spend $140,000 on them.

[48:43] Maybe they're, but I have, I have not been approached at all about anything.

[48:49] I haven't I haven't heard any makes sense to me. They may be waiting for a couple of years knowing that that that I guess.

[48:59] But yeah, we would look at one of those things and just decide if it can be this year next year or four years away or whatever.

[49:05] Yeah, just like we did previously.

[49:09] Yeah, but the playground and the lighting were the only two really big school-wide things that

[49:16] I was aware of. I mean at some point we probably need a kindergarten playground upgrade, but that

[49:22] That cost as much smaller. Yeah, and that one doesn't get as big as abused. I mean, used well

[49:33] We're wearing out our snow machine that we bought

[49:41] I told you if we bought it, it would snow, so perfect.

[49:47] I think we've used it eight or nine times total, so it is brand new.

[49:52] It's like three years old, but it is brand new.

[49:54] It should last a long, long time.

[49:56] So I think we're trying to find ways.

[49:59] We may start offering rides around for kids at recess just to fire dogs.

[50:08] So yeah, there's a few things that we put these in here because if the budget does get to a certain spot and there's we have been kind of filling up on technology.

[50:19] We kind of have been filling up on items that we can buy and store so that if there is a thing here, then I will say with the budget, the legislative session just ended.

[50:31] We have seen record raises in educational spending.

[50:41] That will probably not be the case for the next few years.

[50:45] We're probably operating on maybe a 4% raise for the foreseeable future.

[50:50] And that is in statute that 4% is like the minimum.

[50:55] And I expect that will be.

[50:58] But we've run on that a lot before.

[51:03] you know but we had three years in a row with 8% to 11% so yeah the only other

[51:14] big purchase I'm aware of is buying a lot of weeds but I have not heard

[51:22] anything so but that would come out of a different account so at one point we

[51:30] talked about what the state was trying to decide there were rules for upgrading security

[51:36] included different types of windows and cameras and all those kinds of things.

[51:41] Yeah, so the states bought some of those things. The others we haven't heard definitively on

[51:48] what we're looking at buying. But some of those measures are 10 plus years to get into.

[51:54] Yeah, okay. We've been advised to just chill. Let them figure everything out

[52:00] buy what they finally decide and not buy early and have to change stuff so hopefully there's

[52:06] money for that. There was for the initial one so we'll see. I couldn't tell you what we're

[52:14] supposed to buy it. Well since they haven't decided yet.

[52:19] So any other questions? Is that kind of what you

[52:24] This is perfect. Thank you. I'll move that Justin's interpretation of EL-3C is reasonable.

[52:34] All in favor. Hi.

[52:37] Carious 5-0.

[52:41] And I'll also move that Justin's in compliance with EL-3C.

[52:48] I'll second that.

[52:49] All in favor?

[52:51] Aye.

[52:54] Motion carries 5-0.

[52:58] And we've come to the end of our agenda.

[53:02] So I will move that we adjourn the meeting.

[53:08] All in favor?

[53:09] Aye.

[53:10] Aye.

[53:12] Motion carries 5-0.

[53:16] 12-29.

[53:21] There you go.

Public Board Meeting

Transcript