001I'll call this meeting to order, please. We stand for the pledge of allegiance. Pledge >> allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. >> Thank you all very much. Please be seated. Our first meeting this evening is the meeting for the board of finance and let the record reflect that all board members are present. Um the uh previous officers last year was President Kerr and Secretary Demos. Um, so continuing my uh duties until replaced, I will ask for an election for president. A >> nomination. >> Okay, first and a second. Any other nominations? Hearing none. All those in favor say I. >> I oppose. Motion carries. I'll continue. Um, now election of the secretary.
002Do I have a nomination? Nominate Larry Deos as secretary. >> I'll second. >> Moved and seconded. Any other nominations? Hearing none. All those in favor say I. >> I. Opposed. Motion carries. So the officers this year are President Dana Kerr and Secretary Larry Deas. Uh next on the agenda is designation of depositories and we'll see Dr. Sanders for that. >> Yeah. The board every year is required to uh designate the financial financial institutions that we use uh for uh our general business uh banking uh the uh funds that we receive for capital projects for uh construction pro projects the bonds and uh interestbearing accounts. So we would like to continue to use People's State Bank, Old National and Trust Indiana on the designation of depositories. >> Make a motion to accept people Nashville and the
003trust as our depositories. >> Second move and seconded. Any discussion? >> All those in favor say I. >> I. Oppos? Motion carries. Thank you. Now, we have anformational item. It's the report of the previous year's investments and financial report. So, we'll look to Debbie Tape for that. >> [snorts] >> So, I show that um with the records that I gave you um the interest that we earned in 2025 um was $617,940.75. Um that is based off of our bond proceeds, different things that we deposit. And basically the goal is always to earn as much interest as we can. So I always any unused funds at the moment I transfer over to Trust Indiana which gives us a higher interest yield and basically gives us a lot of extra money that we can use for different
004projects, different items within different projects. The majority of the funds go into the education fund, but I do have different accounts for some of the bond accounts. So that money goes directly back into those bonds to use as extras um for any supplies, furniture, anything that's just extra that's needed. So try to keep those separate just to give those accounts some extra things and incentives. Um the charts that I provided for you is from this um it's from in.gov gov and it's the DAB report which just shows us different um information over the past several years um of where our school has been. Um it shows really a steady um base with our student count. We've had some ups and downs, but it's stayed pretty steady over the last 10 years. Um also like on
005the fund report it basically shows like our increase in funding. So you see like around I think it was 2019 and on where the increase started to happen. That's also because the increase of interest rates and also some of the bond proceeds [snorts] that we've received. Um again with those bond proceeds I try to get as much interest as possible. So that adds to our fund balances. Um on any deficits or any negative amounts that are there, those are basically from um any federal funds or grants that are reimbursible. So those will always be negative um because we have to spend the money first and then we get reimbursed. But it's always approved. So we always make sure we're approved to spend the money before we go into the deficit. But it is a normal
006process that we've done with these grants. Um, and then, yep, I think that's all I have on that. >> Yeah. Do you have any questions? >> Any questions for Debbie? >> Oh, yeah. >> Okay. Paul, >> we might get out to cash [clears throat] flows. Uh this is something we do usually during the normal meeting, but since this ties into your money and and the finances of the corporation, and this reflects the entire 2025, now we're finished with it. Now you get to take a good look at, as an example, the education fund started with almost $5 million, 4.95. It ended the year with 4.3 4.2 4.3 million. So it shows a deficit spending of 700,000. That's not uh too abnormal, but it's abnormal enough to track it real close in 2026. We don't want
007that to become a trend. So you still have a healthy cash balance at the end of the year in that fund, but it has dropped. So we'll keep an eye on that. The operations fund started with about 2.7 million and it ended with a little over three million. So that's good. And as I've said before, this is the fund that the state is after. Uh this is the fund that's set to lose 900,000 next year. Uh this year, as a matter of fact, 2026. I have trouble getting from one year to the next, right? >> But in 2026, you're going to take that hit. They made up the deficit in the budget by using your cash. So what's going to happen is your cash balance is going to drop in the operations fund even though
008you see the budget stay level. So we'll keep an eye on that too. But it did go up actually in cash this year which is a good thing. Now, we're starting to look at at, okay, transfer amount and things like that and how do we level these two funds out and how do we tackle this $900,000 deficit? And that's going to be a challenge, but that is something that I'm sure by now you're aware of and we are certainly aware of it and we'll keep a good eye on it. >> Yes. in the between both funds, we're down $350,000. >> So, another $900,000 next year, that's now 1.2 million. >> Yeah. Um $900,000 is no small number, >> right? No. >> So, we're going to have to watch that. >> Paul, what the legislature did
009did not that did not affect the education fund because it that negative the deficit of 700,000 concerns me on the education fund. Is that because we brought in less or is that because of the legislative action? >> No, I think it's probably >> we due to hiring and and what's happened. Correct. I think the state has been true to what they say you're going to get in the education fund. But in the second year of your of the the appropriation process they go through, you always get less money than the first year. So now we're kind of in that second year. We don't expect as much. So, we're going to have to watch our expenses, but I think you're going to see that education fund deficit continue. We just don't want it to be 700,000
010every year. We want to get it back to at least zero and zero, >> right? >> We make five million, we spend five million. That's okay. >> But you got to have a cash balance in this day and age. And and so we got into it this year, okay? >> And it's it's all about expenses. Not not a lack of revenue. >> Okay. [snorts] >> Any other questions? >> I just had a quick question on Debbie on that the bank bankto fund balance report of all our different funds. The ones that are in a rears right now the negative was that's because we're waiting for reimbursement. Is that correct? >> Yeah, that's correct. >> And how are we doing our reimburse like our one of them is a half million dollars from our placements, >>
011right? >> Are we getting >> so bas on that? >> Yeah. So basically, because we're allowed to request or spend the funds ahead of time, we will be in a deficit until we get the approval um from the grant funded person, the state or the federal to um request the [snorts] fund. So we can spend it and then we have to wait on a letter or reimbursement form to be able to actually request the fund. So, right now, um, in our special education account, we just requested those funds because we just got approval for that big grant to, um, request, it's like $300,000 that we're getting back. And then we have seek money which is being used, it's a a federally funded thing which is being used for students, student placement, housing. Okay. And we
012the whole process has been delayed and we've been waiting to [clears throat] get approval and we just got approval on that. So Noah Dixon and I are working on that to get that reimbursement done so we can get that 400,000 back in our bank. >> Should we I saw that the is the so the 494 that was in the or is that for both placements combined? >> Yeah. >> Will we get a 100% reimbursement or will we have to take care of part of that ourselves? That's I'm just kind of curious for nervousness here. We'll take care of part of that ourselves. It's roughly $30,000 per student that we um >> that we absorb >> absorb. Um but we did thankfully Noah did an amazing job on those applications. Um we received about $1.2 million.
013So we were approved for back on January 5th. Um so once we go through like Debbie described the whole rigomearo red tape of getting uh reimbursement, it'll be about 1.2. So, it'll take care of the 400 um thousand or so that we are in the red, plus take care of the rest of the invoices that we'll have coming in from those residential uh treatment centers for the two students we have out of state. >> And the rest will come from the the smart grant, right? We have some smart grant reimbursement coming back in too. >> That's going to be for a different account. Yes, correct. Um but yes, we have that coming in. Um title one um has finally been released. So, we're going to see our title 1A come in, which is a little
014over 300,000. Um, and our title two was just released today. So, >> okay, >> we're starting to finally see some headway with those federal um reimbursements coming in. So, we can start seeing those red accounts turn green on us. >> Yeah. And that'll help our funding and our interests that we're earning. So, once we get that, we're going to be able to earn a lot more interest on that money that's just been waiting on us. >> Yeah. Right. So, >> Okay. All right. Thank you. [snorts] I might add, if anybody ever asks you, why do you have such large cash balances, this is the game the feds play, >> right? >> You spend it, then they'll give it to you, but you have to have it to spend. And if you don't have cash balances,
015where do you get it? >> Yeah. So, >> that's a Well, that's one of my concerns is that we they kind of put us in a hole here. And I guess my other question is, are we I saw on this on the DWAP sheet that there was a negative on the federal funds. Are we are we going to possibly not get some of our federal reimbursement? >> We always get it. It's always >> We're always going to get Okay. >> Yeah, >> we're okay. Now, um there was some question early on on some of our uh title one smaller grants, not the large title one a grant, but some smaller. There was some question about whether or not those were going to be released. Um right, >> I think you guys probably remember that from
016two or three months ago. And thankfully that was released through the uh federal government and then trickled on down through the state. And I think that's why we're seeing the delay that we're seeing and all of these approvals coming through and and all of that happening. >> So yeah, just be patient and be thankful we have a cash balance. That's >> exactly right. >> offset the >> the slow reimbursement. Okay. >> Thanks. >> Any board member comments? [snorts] I'd just like to make one. Um, losing $900,000 out of the operations fund. When we just say that, you know, people at home, maybe um maybe some parents or community members may not understand what that means. What that means is your bus drivers who get the kids here safely. This is your bus monitors. This is
017your custodian staff. This is your maintenance staff. This is your IT staff. This is your kitchen staff to feed your kids. And when you take that money away from us, you know, what are we going to do? How are we going to cut expenses? What can we cut when we're already, you know, a tight ship? Uh so, uh it's a major concern. So, I encourage everyone to talk with the legislature and and tell them that this is bad for Indiana students and that they need to fund the schools appropriately. Um, you know, they may say they're giving a little bit more than education fund, but when you take a tremendous more away in the operations fund, it doesn't get you anywhere. So, uh, you know, we we ask that for, you know, the that you
018talk with your legislators, let them know what this is doing to the school systems and don't, you know, we we really really want a change. Um, to to to benefit public education and uh public education is the foundation of our state, our country, and we've got to keep supporting it. So um so hope hope that gets heard. Anything else? [snorts] >> Hearing nothing. >> Thank thank you. >> Time and work. >> Thank you. >> The finance meeting is now adjourned. >> [music]