0012. Um, thank you Sherry for taking minutes this evening and I'm going to turn u we have a few things on the agenda so I'm going to turn it right over to Mike so we can uh get started. >> Thank you Luis. I appreciate it. I think they've um Ken, if you want to just um pull up the agenda really quick, just take a look at the items because I think we added some stuff on um to cover a few uh different topics today in addition to the financials, but um we could start here with the financials. Um excuse me, Angela, you want to take the financials? >> Sure. >> Great. Um so we're presenting the financials for the month ending March 20 uh 26. Our general fund expenditures for the month of uh March
002totaled 15.1 million. This is compared to 14.0 million for the same period in the prior year. This year we had one time spendown which was about 4.5 million. March expenses for payroll include two full pay periods. Um, general fund expenditures for the fiscal year-to- date total 108.1 million with an additional 60.3 million encumbered. The annual budget for the general fund is 172 million which leaves a fund balance of 3.5 million and this equates to 2.06 6 of the budget. As the year progresses, um we do anticipate additional items coming through that have not been encumbered and we will encumber them and it drives the balance down to a break even point. Um there are additional expenses such as I think it's graduation expenses that the district incurs and those are not encumbered and therefore will
003also drive the balance down. Um our benefits have a favorable balance. We received um the actual number is $1,586,79186 credit for the Sigma from Sigma for the annual pharmacy rebate. Um we outsource uh several professional services and these would include the nurses network, stepping stone, Kelly services, speech pathology group. So um these type of expenses are um partially offset by the um para and sped unfilled positions and benefits in this line. We also have received um three invoices from our RSM auditors uh for the year 2022, 2023 and 2024 audit and they totaled 435,000. Um we have other expenses. Um no um no that'll be later. We continue to work on entering the remainder of the year encumbrances, but I think at some point, Mike, you're going to be sending a letter out telling everybody
004to stop encumbering and whatever we have in the queue in the system. Um, we're going to review it and see what we're still going to put through. Correct. >> Right. Yeah. So we are um again we present our financial statements um as many companies do a month behind. So right now although we're in the well I'll say the end of April we're actually presenting the the prior month. So today the the look at the financials today is a little bit different than what we're seeing. This is more of a historical view. Um the the 2% that Angela pointed out these financials uh show us at a 2.6% 6% of of budget, meaning there's 2.6 uh 2.06% of the budget remaining. That's kind of the the target, right? And that's where the legislation surrounds uh we
005call it the 2% account. We'll talk a little bit more about that later, but once we hit that 2% account, which is uh just under um just about $2 million, they the sites are still going to enter their supplies. um it just goes under a higher level of uh scrutiny before it gets purchased uh before we actually push those through. Um and Angel, that's what you're talking about. I'll be sending a letter out to all of our administrators that >> may have some one-time expenses. Typically, um our educators will wait until the end of the year to try to pre purchase supplies for the following year. Um so I'm going to send that email out shortly and just let them know just get your final orders in. But as of uh right now, we're just
006keeping a very close eye on a on a daily basis of what that uh balance is. But um all looks very healthy right now. >> We also purchased some instructional improvements for the schools which is also one-time expenses. Um and they include like furniture and supplies, whiteboards, laser projectors. Okay. Okay. So here we're in the summary we're showing that salary and benefits are favorable. um for salaries we had budgeted uh in the general fund for the ARPA staff but the true um charges are going into the grant. So that's one of the reasons why we are favorable. We made some adjustments to benefits to be more in line with the actual expenses. Um again our professional services where um we have those specific items that um we are outsourcing because sometimes we can't get staff
007here to fulfill the positions. Um our other purchase services uh include pupil transportation. It also includes tuition. Uh we have our main bus contract for uh transportation has been encumbered but again the perdm items uh are not. So as those come in to be paid we encumber them at that time in order to um pay them with a purchase order. And we do have some vendors uh we have timing issues getting um invoices. Um, as an example, we can go online for um electric and gas and we can pull up our own invoices. We do not have to wait for them to come here um to sites and facilities or directly into um the main campus central office. So, as our new accounts payable person gets up to speed, maybe he'll be able to go
008online and print the invoices before we even get them for us to start getting them into the system. our other supplies. We have another supply line which because of the new uh building, DHS West, the school lunch program does not um pay for certain items for the new building. So, the general fund has picked up those items and these were non-budgeted items. And we have dues and fees staff development which includes the instructional improvements which I mentioned before which are one-time expenses for the schools that we have purchased. So under salaries um we have open unfilled positions. We also have the ARPA salaries that I mentioned that are budgeted here in the general fund but the expenses are in the grant. So these are reasons why we are favorable this year in these two categories
009in this category of all the um salaries once added together it was 7 million in total. Yes. 7.1. And then we have benefits. Um Mike has been very aggressively going through the benefits to make sure that we're not as over as we have been in the past. Um we are recording the monthly charges of the invoices uh funds that come out. So we're we're doing that on a monthly basis. Um if we go down to professional services, we have a technology service line which is 5.0. This is where the one time 4.5 million sits of technology items that have been purchased for the one-time um expenditures this year. We go to the next page. Our property services, we're checking into the rental um for its service and we raised to get those bills out and
010get those checks um recorded in this line. other purchase services, the tuition and transportation. We have a lot of different tuition line items and we are we know we're over in transportation, but next year um we were trying to uh create the budget so it comes in a little closer that we're not as over. And we have tuition sped that is over. Hold on. Yes. Private that's 1 point um 4 million those together. Yeah. So um these places that we are sending the students to um tuition has uh increased services for them. um it's getting a little out of whack. So hopefully in the next couple of years that um we'll be uh well the state can streamline it and say this is the minimum you can charge and you shouldn't go over. But with
011all the different types of um children and services they need, we have to sometimes outsource it somewhere else. Then we have supplies in the supply line. Supplies also includes um utilities. So we have um our electric that is over and that's really due to DHS West um delivery charges for 12 months. And then we have renegotiated propane and fuel. Um we're sharing uh the vendor with the city and um they were able to renegotiate a little bit less than what we are spending now. Um and hopefully, you know, we can get it to go down all the time, but we're keeping a watchful eye on that and gasoline. Um the enrollment impact and equipment. We have budgeted for magnet school in here and Mike has eliminated it from the 27 budget because we have some
012grants that cover magnet school um expenses. So we've taken it out of here out of the general fund for next year. and the dues fees and staff development. This is where the instructional improvements lie. And these are also again the one-time uh expenditures that we've uh purchased for next school year. So if we go to the next set of report, these are just comparing one month activity to another. So you're able to see how much we're spending each month in J in July and August because not everybody is in uh is working. Um and we're getting the invoices in slowly for the new fiscal year. Um you will not see a lot of um spending, but as we go along, we have months where um I think it was November the total. Um can we
013go to the next page, please? all the way down to the bottom. Oh, no. I'm sorry. October. >> October, we have three pay periods. Most of the pay periods we have are two, but there's October and I believe I know May is another month. We have three. >> Yes. So, in March, we were actually doing some catch up on some invoices as they were coming in, trying to make sure that by the end of the year, we have as many paid as possible so we can also as we move along close the purchase orders so they're not outstanding and we don't have big incumbrances toward the end of the year. And then the last page is the grants. Do we have any questions? Uh so far moving through this, Louisa, I don't know if there's
014a um an attachment in this uh agenda of those onetime items I shared with you. I have them um ready to be pulled up when we get there, but I'm not I'm not sure if it's in here just to discuss what those one-time items are that we've been speaking about for the last couple months. >> Yep. And before we get that, can you just explain a little bit um especially for some of us that don't know about the um the credit from Sigma for the pharma and how that works and why we why we get that? >> Yeah, sure. So, our um sign contract when our employees go to the pharmacy to get uh prescriptions, they are paying full price for the um uh for the the drug and then we get a credit um
015based upon that since we we're the ones paying the actual claims. In previous years, I think it was two years ago, the number was um much smaller was maybe 800,000. our third party administrator Gallagher renegotiated us for get to get a 100% of that pharmacy rebate. So last year we saw it shot up from 8 million up to o over a million. Um and again this year and then next year they're projecting it to be about uh 2.8. Um that's something that we we think eventually they're going to try to get away from. So insurance companies instead of giving us the rebate are going to the the employees will realize the rebate at the cash register. Um we're still about two or three years I think away from that because the infrastructure that's needed uh
016with the insurance company and all theies isn't in place yet. Um but we do anticipate that going away and it's um I I will be happy when it goes away because it's something that's put into the budget as an estimate. We rely on the third uh third third party actuaries to give us that estimate. But uh this year, you know, it was a it was on a weekly basis. I was emailing Gallagher, what's the number? What's the number? When's it coming? Because we don't have the exact number and we don't have the exact day. And my fear was that we would get a a majority of it at the end of the year when it was too late to spend causing a surplus. Um so this from my understanding from Gallagher this second payment um
017which which totaled the 1.5 there was uh about 1.1 in December and then about 400,000 um this last month uh should be it for for this year. >> Great. Any other questions on any of this so far from committee members, non-committee members? >> Uh Mike. Yeah, Sean. >> Yeah. Quick. Um, after what you just said to Luis, um, when when Angela said you're going to be aggressive with the benefits reporting, is that what she was talking about or what what does that exactly mean? >> Yeah. So, the way that Sigma works for us is we get hit with two different types of expense from them. Uh, on a monthly basis, they send us an invoice. Um and that's to cover the administrative fees uh the stop loss and uh as I say it's we pay
018them we pay Sigma for the privilege of being Sigma and adjudicating our claims for us. Um that comes on a a monthly basis it's uh somewhat the administrative fee is somewhat based on uh headcount. So while I know approximately what it is I don't know the exact amount. So, what I do is on a separate spreadsheet, um, every time we pay that invoice, I'll enter that amount and I kind of annualize it out as we go to project out for the rest of the year. Um, the second portion, um, is the actual claims that are, uh, entered in. Since we're self-funded, we pay 100% of the of the claim. And what Sigma does is through uh a third-party bank, it's a city bank, they go in and they debit our accounts on a weekly basis
019for whatever the amount was for the actual expense. Um and I said, like I said, it's on a weekly basis. So, I go in on a weekly basis to the bank and I take that amount and put that into the spreadsheet. And in a similar manner, I'll take all of the amounts that we've paid so far and annualize them out. And then when I put those two numbers together, I kind of get what I think is going to be the projection based upon actuals for this year. And then when I have that call once a month with the third party from Gallagher, they give me their number of what they think it's going to be. And um this year, every month, we've we've been very close. So I'm very comfortable that the number that they
020think we're going to end up with um is the number that that I agree with. Um and I do that year-over-year. So, I could see seasonality. Um, you'll see the actual claims uh jump around from month to month. So, as the the new plan begins in September, um you'll see that um the the claims are a little bit lower because the deductibles haven't been met. And then once folks start meeting their deductibles, they're more likely to go to the the physician to to seek treatment. So, you'll see our weekly expenses jump up. So, I'm able to track not only for this calendar year, but year-over-year and look at seasonality. Um, and then based upon that information, if that wasn't quite enough, our system when we run payroll puts a number into our benefits line in
021our financials, and it's it's something of a placeholder. It's what they what the the best guess is of what the insurance is going to be, but it doesn't reflect the actual number that they're debiting from our account and charging us through AP. So, I'll take that number and then Angela will go into the spreadsheet, back out the placeholder on a monthly basis, and put in the actuals. And that's important because in previous years before I started, they waited until either the end of the year, if they did it at all. And if you're dealing with a placeholder for 11 months and your actuals are different than the placeholder you have, you're not going to find out until July when you go to close the books. So to alleviate that, I update the spreadsheet every week
022and Angela does a journal entry every month. And then we verify what we're doing kind of a sanity check with Gallagher that that third party. Does that make sense? >> Thank you. because I wanted to know if that was different than your predecessors and I think the council's going to be very happy. So, thank you. >> Yep. >> Any other questions? >> Um I know I asked this before um but going self-funded um that is the best um way forward for us as far as benefits. costwise >> that that's what the um third party um has suggested. The other options are um to one which I've asked them to do um is put us to market. Um so Sigma like I said they they adjudicate our claims. Our claims are what they are. Um but
023there may be some savings if another company other than Sigma were to um were to be the one adjudicating the claims. So, if they take our actual claims data, they can send us out to market and have any other insurance companies bid um and then we can take a look at what the what the other bids are. Um the the other option is um the the state plan, which I don't I don't know too many um districts that that are on, but it does exist. Um, and what I would ask is that when that third party that we're paying to do this uh bidding for us, so to speak to include in that analysis what it would look like in in the event that we did decide to go uh with the state plan and
024kind of do an applesto apples uh comparison so that we could review it in finance committee and and kind of um draw some conclusions from that. >> When was the last time we went out to bid for the insurance? >> Not since I've been here. >> Yeah. open a while. >> We're We're due. I I want to say the when I asked them about it uh the month before last about going to bid, I want to say they they said it's just over five years, so it's it's time. >> Yeah. Okay. So, is that something we're looking at doing sometime? Yeah, I I told them that that's uh come the next renewal period. I I want um an analysis done to look at one put us out to market to see if um anyone can
025can beat Sigma for those administrative claims. Again, we are self-funded. We pay for what we use. So, that number is not going to change, but the administrative fee and the stop-loss fee that that might be um an option for us. Louisa, just the in the superintendent circles, it's a it's a it's a torturous uh conversation every year because, you know, if you're cruising along and you're h and you're self-funded and you're having a good claims year, >> that's great. And then it, you know, the problems come in when you have a really high cost claim year and then you start considering other options. you convert to those options and then then before you know it, you're completely um beholdened to whatever rate increase that they decide and there's no, you know, it's not based on
026your usage per se or or your your profile. It's based on um whatever the market is bearing and and the cost. So, it's tough. >> Insurance Yeah, that's a weird insurance is a tough tough game. >> Yeah. the the the tricky part for us too is any any you know self-managed plan is a lot more work on our on our end to you know to to keep up with the es and flows of that and you you know you hope that you've got a good projection um and then you know we've had some volatility so that has played into to things um but you know it hasn't been horrible compared to what what I'm hearing my superintendent colleagues have talked about in terms of some of their experiences with other companies and and their renewal
027rates that were through the roof. So, you know, this year, you know, we did reduce the headcount so that offset, you know, considerable rate increases. So, you know, next year it's definitely, you know, I'm definitely concerned once once we stabilize like what that percentage is going to look like. Um, people have been bouncing in and out of the state plan as well. Um, that also fluctuates pretty greatly, too. So, it's a tough it's a tough nugget. >> Thank you. Okay, I don't think we have any other questions, so if you want to move on. >> Okay, Ken, can you pull up the um agenda for this evening? So, I can see what the second item is. I don't have it open in front of me. >> Did we want to talk about the onetime expenditures
028or did we want to just >> I think that's one of the items on the I'm trying to pull it up now. >> Wasn't sure if we added that as part of the financial report or just um as a separate item. Okay, I'll just share my screen then um and show you what we have Everyone see that? I know it's kind of small. >> So, in the in the financial package for the last couple months, we've been talking about one-time spending and um I wanted to put some context behind what that spending is. Um, one of the things that we tried to do is um t take into account things that might be needed for next year since next year is going to be so sparse. Um, and we did have um um a a
029small over uh a small surplus this year going into to the midyear um to start using that um as a way of kind of um keeping the the next year's ask responsible, trying to keep it at that um amount that we did. There were I want to say three main areas that that we attacked. One was the uh IT infrastructure. Um that IT team is overseen by um Gina Jasmine and she kind of took uh all of her purchases and put them in a list for us with the amount and kind of an explanation. Some of it uh the explanation is a little bit techy. I'm not sure I understand all of it. Um but this is the first uh group and I tried to um organize them so that the bigger items are uh
030up top. But um needless to say a lot of these uh IT items that we were spending on had to do with rewiring and access points and increasing the uh the network the the availability and speed of the network. So um I can I can publish this. I should have probably had this published with the uh financial package, but you'll see the that here there's a list of uh several items totaling 4 and a.5 uh million almost 4.6 million and in the financials the the question will be well I see that we're over uh 6 million what's the difference? So, I just put a footnote down here on row 20. Um, and there are other expenditures in that 53,000 series of accounts. Um, but they're relating to Kelly Services, uh, the Stepping Stones Group and
031Nurses Network. Um, just really briefly, nursing network. We have a set of nurses for our various locations, and it's it's kind of hard to fill some of those positions. So we use an outside agency to help uh backfill so that there is uh nursing services available. The stepping stones group is uh for special education. So again those uh pair of professionals in the special education area that can't be filled or having a hard time filling them or backfilling positions, we reach out to a third party. That's a stepping stones group. And then Kelly Services, you'll hear us talk about it. Uh so Kelly Services is our um a third party company that we use to uh for substitutes. So if there are call call outs in the morning for either um teachers or par educators,
032Kelly services will jump in there. Um and those three combined that overage is about $2 million. So when you add that 2 million back to the 4.6 we see here, that's the number in the financial statements that you'll see. um the the $6 million number and then I will talk about the other two, but I didn't know if we wanted to stop here or if anyone had any any questions on this portion. >> Any questions on any of these items? >> I'll just say that the Well, actually, go ahead. The members can speak. I I jumped in too quickly, but um just just in general, the the elementary um network was so dilapidated um and inefficient and slow and um you know get the fact that we had moved into a onetoone um you know
033computing you know across the district for the most part um and with the number of things that we have running on our networks postcoid um things just you know they were not able to keep up. So having the upgrade and having the wiring um you know really was a a really welcomed um update to our infrastructure and it's not one of those fancy things that you can see you know it's not one of those shiny objects that you walk into a school but I can tell you when when you have a reliable internet network system um that reduces teacher frustration, administrator frustration, student frustration when they're testing um it's it's a big deal. So, we're very thankful for that. >> Um, the next uh section is the 57,000. There was uh about million and a
034half overage there. And these are just I picked four items. Um, these really the the person to speak to these would be Mike Celig. um he really has his thumb on the pulse here, but these are just related to um certain projects that we have um with Garland uh BMP who we use for most of most of our construction uh projects. Um the the big one there you'll see uh BMP for 250,000 is for uh adult education. >> Um and then the 58,000 account dues and fees and staff development. This is really more about um the um instructional supplies. Uh school specialty was uh one of the larger ones where we got some much needed chair uh furniture tables, chairs, um some um hex tables, you'll see, and um kidney shaped tables, which I found
035out what that was this year. Um the other big one was Lakeshore Learning. um Broadview Middle School Library uh went had a reh redesign proposal and after that was uh Robert Lord again chairs and tables uh cafeteria tables and um I think the last one um maybe Carrie you know the William um Ori um >> that's the bogan system >> well the bogan system is a communication system so that's our PA those are our PA systems which are very sensitive and when they don't work, it's a huge safety issue. So, we did I do believe that that was one of the upgrades um to that system um because that is a big safety issue. And just a mention about the furniture um you know there are many teachers uh desks and student desk teacher desks
036in particular who have the name of a teacher you know for a few generations ago um and those desks and and chairs are still in service. So, um, we did put out to the principles that if you had any furniture needs that this, you know, this was a a good opportunity to to make you put your needs in the table and if we can do it and we did get some some wonderful requests across the system. So, anybody who needed, you know, they had broken chair, their table, their desk drawers were no longer closing, um, you know, we definitely offered the upgrade and so we replaced some teacher desks, a lot of student desks, broken cafeteria furniture that's been on hold for a bit. So um you know it was it was quite a welcome
037um you know response. Um additionally also in here as well um you know we did do we we did you know offer some more transportation for some of our students to say to do the afterchool program so they can receive tutoring. So we were able to use it very effectively very wisely. Any any questions on any of these committee members, board members? >> No. >> And can I ask about the PA system? >> Sure. Go ahead, Wanita. >> Thank you. Um, so Cara, was that throughout the district or were there specific schools where uh the PA system was an upgrade? That was a specific school. There was a couple there was a um there were some bogan systems where they were able to just fix them and then one needed to be upgraded. So I'd
038have to go back and just double check with Mike and uh Rich which one it was that they actually replaced because that's the one that that PO speaks to. >> Thank you. >> Of course. Anybody else? I don't see any other hands. Okay. All right. Moving on. >> Second item on the agenda. Um Luis, I believe you just wanted to speak about the um budget, city council budget, the ad hoc meeting that we had on the 16th. >> Yeah, I I want to just I just want to say I'm so pleased with how everything went that night and just congratulations to the team uh for presenting such a a great budget. It was I've I've heard nothing but positive feedback even that night, but also after that evening um on everything. So, congratulations to all
039of your all of you uh for a job well done. >> Thank you. >> Yes. >> And thank you to the board members and all my board members that showed up that night. I mean, it it's even though we can't speak, our our presence is important because it's it's it's supporting our budget. It's supporting our superintendent. It's supporting our district. So, and that was noted too. people, you know, they they know we're all there. So, appreciate all of you. Thank you. >> Go ahead, Cara. I don't know if you want to add to that. >> No, no, I absolutely appreciated the support. It is it is a good feeling to know that sitting behind me and and Mike in that were our board members in support um who were there even just to, you know,
040nod their head and and offer that acknowledgement. It it was felt. It was felt by by everyone. Um, and I just think it it represents a new era and and I'm I'm I was hap happy during the board uh presentations with the budget, with the questions and the thoughtfulness. Um, and then even more so with just the show of support. It means a lot. >> Awesome. Thank you. Does anybody else have anything to say? I know there was a few of us that were there. Comments about the evening or anything you want to add? No. Okay, we move on. >> Um, if it's okay, I just wanted to give a a quick update. Um, we are currently underway with the fiscal year 25 uh financial audit. Um, just a little bit of background there. So,
041the city uh produces an annual report. Uh, we call it the CAFER, the compre comprehensive annual financial report and in that uh the school rolls up into that. So the whole audit is an audit of the city's caffer, but we are a big portion of that. Um, we kicked that off a while ago. There are, I would say, three or four segments of that. There's the state and federal single audit, which looks at our state and federal gr uh grant funding. Um, those are tested um pretty pretty heavily. Um and then in addition the regular uh financial statements uh are broken down kind of into uh two sections. The first part is the fieldwork I'm sorry the first part is the planning part. Uh that's when the auditors will come and ask for a lot
042of documentations about policies and procedures. They'll ask me to walk them through the accounts payable procedures, the payroll procedures, bank reconciliations, all all things of that nature. And then they will move on to the fieldwork. which is where they start asking for things. They'll ask for payroll registers, the union contracts, things of that nature. Um Angela has been doing a phenomenal job fulfilling um most of those requests. Um we're we're probably about halfway um through the audit. I I don't know the exact uh end date as of yet. Um they are testing he more heavily now than they ever have before. So we are relying on our partners at CLA Clifton Larson Allen to provide some additional audit support um as well as just maintaining a very close contact with the city. Um that being
043said, we have a standing meeting every week with the audit team uh who is at RSM and that is uh the city joins us on that and we go through the open items list uh and they'll assign priorities um and and kind of clarify just in case we have any questions. some of the stuff is um kind of confusing. So, if we have any questions, we can ask them. And then we roll out of that meeting right into another meeting with CLA. Um and CLA, for those of you who don't know, is our they're an audit or accounting firm as well. Um I guess the competitors of RSM, you can say um but the city retained them to act as kind of our big brother and kind of help us out with some of the
044more uh difficult things. So, we have a meeting with them um as well once per week uh with the city um Angela, myself and Wanita to go over if we need any help with anything or we don't understand anything. Um and that's kind of what helps what has been helping push all of these audits through in such a short period of time. I we've been in perpetual audit season since I've been here, but I think we've gotten three three done in the two years. Um so, we are marching along. I I don't have an end date unfortunately, but um we we are marching along and it's uh looking looking promising so far. No, nothing's surprising so far. >> Um any questions, board members, committee members? >> You say we're catching up. Will you be able
045to breathe in a year or two? Yeah, I I think it'll be much less than that. Um the idea was to get this audit done um and then roll into the the 2026 audit and that one would be started and finished on time. So we'll be on a regular audit schedule uh after this fiscal year 25 audit. Um we go through a tremendous amount of audits on top of this. Uh this year we were audited by Medicaid for our special education program. Uh we get workers comp audits. Um we get uh union uh benefit audits. I mean we're we're constantly facing one audit or another. But as far as the big financial one after this one is done, we should be in a regular cycle. I think you're muted, Sean. >> Anybody else with any
046questions? No. >> Okay, >> I did get an update on uh the bogan system and that the upgrade was for Danbury High School. >> Thank you. >> You're welcome. >> That was quick. >> The last item we have on here, um so um a while back in 24 they have introduced legislation that allows the districts to keep um up to but not over 2% of the prior year's budget should they have a surplus. Um and no surprise to anybody, we have had a surplus in the last few years. Um and so the way that most people are handling it is they're opening up a separate account, a separate bank account. Um I've uh already gone through the finance committee and board a while ago to open up that account. So there is currently an account
047at Union Savings Bank sitting um unfunded um and it is waiting for um the transfer of this 2%. In order for that to happen, the uh board has to um make a motion and approve uh me actually moving those funds from the the account that they're sitting in now uh to this 2% account. So in uh in an effort to get this in front of the board as a whole, we put this on the agenda uh for a motion for the committee to to uh move it forward to the full board. >> Perfect. Thank and this will take care of which to which years are we talking about? >> Um it would be so start in 24 but it's of the previous year's budget. So it would be three years um >> Three years worth.
048Yes. And those are the numbers that we saw in the budget presentation. >> Okay. Any questions on this before we move? >> If there aren't any questions, I just wanted to mention one more thing. Um when when we open that account, um we created a policy, a board policy for the use of that fund uh those funds. So, it's not um it's not a a fund that Cara and I can dip into to cover operating expenses. Um all expenses have to be approved uh by the board before we actually use them. And there'll be tight controls and reporting around uh the balances in there uh the purchase orders that are going against those. Um so, I just wanted to mention that as well. >> Do do we have a dollar amount on that that goes
049in front of the board or is that any amount? Any amount. >> Any amount. Okay. >> I what I would do, Louise, is I wouldn't bother the the committee with $50 here and there. I would probably save them up and then do it all at once in kind of a a summary format. >> Okay, understood. Any questions on this before we move it? >> Kate, did you have a question? >> Um, I had I guess I had a couple questions. I just want to make sure I understand correctly. So, we're looking at transferring funds for 23 24 25 26. Correct. >> Um, it would it starts in 24, but the 24 number is 2% of the 23 budget. >> 23 24 budget. Okay. >> Okay. I just wanted to clarify that. Thank you very much.
050Um, and then um my other question is, and I'm apologize. I'm trying to pull up the um the policy online, but it's it's just not uh it's not pulling up for me. Sorry, let me see if I pull it up the other way here. There it is. Okay. Um we don't we don't have specific parameters on what those funds could be used for, but I guess what I would like to get a sense of is since they're one-time funds, right? These are these are overage funds from year to year. Um what do you foresee as the best way to use these funds and is the intention to kind of keep them as a rainy day until like we we come into that situation? >> I'm just looking for some admin like sense of what the
051administration is. >> Yeah, the the only thing I would caution against using it for um because it is a one-time uh funding source is any recurring expenses. So, I don't think that we should enter into anything recurring with a one-time funding stream. That's kind of how we wound up in many of these uh cliffs and and mini cliffs that we're in now. >> Yeah. And and we don't forget we have a separate fund for health care. So, there that is something separate. So, if we were to have a high claim year and needed to to dip in, that's exactly what that is for. um you know if we have any kind of emergencies across the year um you know I I think I've said it a couple times you know we are budgeting kind of
052on a razor's edge for next year and but yet still trying to continue to recruit but being realistic in our approach about our ability to to fulfill everything you know that we want to do. So, you know, if we do come closer, we go over, um, that is there as a backup, but we're going to try to, you know, um, be as conservative as possible and monitor very tightly across each month so that we don't have to. So, if that means we have to put little spending freezes in place from time to time, um, to do what we need to do to to balance, um, that's what we'll do. But, should we need it, we'd come back to the board and and we would have that discussion and and then that's what it would be
053there for. But I I would, you know, much rather leave it there for a true rainy day emergency um type situation. And you know, we could be heading into that, you know, or or not. You never know what what you depending on how things go with financing in the next couple of years with the state and title and the title grants. So the more that we don't have to touch it, the better. >> Okay. So, we're looking at maybe um expenses like uh capital expenses, unexpected capital expenses if we have an issue or something similar. >> That would that would be that would be most likely. But as Mike said, anything that's that's not reoccurring um and that is needed uh and critical can't do without and we run short in other places then yes.
054>> Thank you. Appreciate that. Sure. >> Any other questions? Anybody? No. Okay. Can I have someone make the motion for us, please? >> I'll make a motion that the finance committee recommend the board of education to approve the transfer of funds from prior years excess not to exceed 2% of the district's non-lapsing account. >> Motion made by Kate. Do I hear a second? Second by Sean. Thank you, Sean. Seconded by Sean. All in favor? I >> I >> Okay, motion passes. So, that will get moved to the full board for the next meeting. Try to get that in there. Okay. Awesome. >> Do you want a motion also for the finance report, the March finance report? >> Yes. Yes. Do you want to make that motion, Kate? >> Sure. Um, I'll make a motion that
055the finance committee recommend the March 2026 finance report to the full board for approval. Thank you. Motion made by Kate. Do I hear a second? >> Seconded by Sherry. All in favor? >> I. >> Okay. Motion passes. Thank you for that, Kate. That should probably be a standing motion on all of our agendas, I would think. So, we should just probably add >> Yeah. >> Yep. Perfect. Okay. Do we have anything else for tonight? Anything anybody wants to add? Questions, concerns about anything else? No. >> Okay. >> Do I do I have a motion to adjurnn? >> So, moved. >> Motion made by Kate. Do I hear a second? >> Seconded by Cindy. All in favor? I >> sorry we are ajourned.