001Please join us. I aliance to the flag of the United States of America and to the republic for it stands. One nation indivisible with liberty and justice for all the >> here. here. >> Here, John here. >> Brad here. >> Excellent. Thank you. We have a motion to adopt the agenda. So, move to supported. Any discussion? All those in favor, please say I. We'll move on to our first presentation tonight with plant to talk about what a great job and his team always do. I'm assuming that's how it's always done. So, we'll find out. Welcome guys. >> So good evening. Appreciate the opportunity to be with you this evening. We are here to present the results of the audit. So just a couple reminders. The audit we're doing is for the year ended June 30,
0022025. So we're just 60 days past year end. one of the this is the first board presentation we're always doing every year >> still because >> still a clean record. >> Um so we're going to walk through at a high level the results of the audit. There are three documents in your board packet that we're going to just cover the board presentation but there are two official documents that are in your board packet that are the the actual audit. So we are doing an audit of your financial statements. you're responsible along with um management for the financial report. Our responsibility is to put an opinion on that audit or on those financial statements. We'll talk about what our audit opinion is and then we have our required communication to the board that we'll also cover
003at a high level. As we're going through it, if you have questions, please don't hesitate to interrupt us and hopefully between us and Rob, we can answer your questions. I'm going to turn over to Charlie. walk us through the graphs. Again, if you have questions, don't hesitate to interrupt. >> Thanks, Mike. >> So, we're going to start with the required communications under A260, which is kind of the guidelines for our audit. So, as you'll see, we've got four different kind of buckets here. So, the first piece is the plan scope and timing of the audit. What this really talks about is um we we completed the audit in accordance with the plan. We have that letter that was dated and sent out on July 10th. um you would have all received a copy of that
004letter. Um the second piece there included in that letter is it talks about our significant accounting policies. So in the financials, most of those are going to be covered in that no two section of the financial statements. You can see that second box down there talks about how there's been no transactions that have been recognized in a different period than the current period for auditing which is period ended June 302. And then the last piece there you'll see we had a new uh accounting standards update this year Gatsby 101 that dealt with compensated absences that was effective for the end of the year. Um again there's no significant impact on the audit but you will see that the audited financial statements. The third column there talks about significant accounting estimates. The big significant accounting estimate
005that is in these financial statements relates to the the Mipers pension and OPED. Um this year for the pension it went down from a liability last year of 58 million to 46 million this year. So about 20 20% decrease. And then if you remember last year, the OFAB liability actually flipped to an asset. So last year that asset was about a million dollars. This year that increased even more to about $8 million. And then lastly there, this is just saying that our disclosures are uh neutral, consistent, and clear with accounting standards. Staying within that same letter, this is some other matters in there. This basically states that we didn't have any difficult encountered throughout the audit. We didn't have any disagreements with Rob and his team. Uh there were no audit adjustments, no uncorrected adjustments,
006no material weaknesses and internal controls. So big props to Rob and his team there. Again, no significant issues or findings. We actually dated the management representation letter uh last week on September 4th. Um management didn't consult with any other independent accountants and there were no or legal acts. Last slide on these required communications. Uh you can see we we issued an unmodified or a clean opinion on the statements. Um as officer identified the financial statements are responsibility of you and management. We're really responsible for rendering that opinion on those audited financial statements. So, and then the last box there, our audit was completed in accordance with accounting standards that are generally accepted in the United States. Next, we're going to get into the general fund assets and liabilities. So, as you can see on the
007the left hand side there, we have assets of just under $14 million. Um, this is about $700,000 less than prior year. And the big uh the big swing there was the blue side there which is really made up of your state aid receivable for the months of July and August. Um so that's really what's driving the the decrease there. And then on the right hand side you can see the liabilities of about 4.6 million. This is about $400 or $400,000 less than prior year. And that's mainly driven by that darker blue section there of uneared revenue for revenue that you've received but uh services or goods haven't been received or services haven't been Next, we're going to talk about the general fund revenue and other financing sources. So, as you can see, 2025 on the
008left hand side there, 2024 on the right, you can see these are very similar. You know, there's only about a $50,000 increase from 24 to 25. Um, when we get into the the specific buckets, the local sources stayed about the same. the state sources went up slightly. Um the federal sources, you'll see that there's a bigger decrease there. So that's kind of that goldish color. And this is where I want to say that we since the the federal sources that are applicable for single audits were below the threshold of $750,000. We did not have to complete a single audit this year. So that was kind of a change from last year, the last couple years with some of those esser funds that were running through the previous years. >> Yeah. So the last er dollars
009that the district had to spend had to be spent by September 30th. So you the district after September 30th doesn't have any more of the coser dollars to spend and that is causing that decrease in federal dollars that those dollars have been pretty significant the last several years. Next, we're going to move on to general fund expenditures. And this is by by function code. You can see the the teal color there is uh all the instruction expenses expenditures. The dark blue is the support expenditures and the gold is is other. So our expenditures are up about 1.4 million which about 3 and a half% from last year. Um but overall you can see it's very similar year to year which is what you what you want. consistent uh year over year. So again, instruction from
010about 67% to 64% 28 to 30% for support and then about 5% for that other staying within the general fund expenditures. This is by object code. So you can see uh the lighter blue, the teal color there is all the salaries that are paid out. Um that was up about a million dollars from last year. The fringe is in the dark blue. That's down about 600,000 from last year. Supplies and other are up about 1.2 million and debt is down about 100,000. So as you can see again very similar year which is what we what we would expect and what we piece is comparison of instructional instructional expenditures as a percentage of operating expenses and this is as of uh June 30, 2024. So, keep in mind this is a one-year lag since this is
011uh driven from data that's put out by the state. That's how we can get some of these comparison numbers here. So, keep in mind this isn't this past June. This is the the June before. Um, as you can see, Dit is 71% of its operating expenditures are are spent on instructional expenditures. So, you can see this is higher than every other district that we have listed here and above the state average, which is about So, you know, this is this is something to be proud of that basically for every dollar that is spent 71 cents of that goes to construction. The next slide is talking about general fund balance as a percentage of total expenditures. So, as you can see last year um we were about 24%. Um you can see the breakout on assigned
012portion was about 17% uh signed which includes some carryover projects. It includes some student activities and also includes budgeted use of fund balance for next year that was about 6% and then the non-spendable which is like inventory and prepaid that makes up that bottom half% down there you can see it decrease slightly so it went down to about 22 and a half which is kind of to be expected uh with some of those er funds that are are going away would this trend to kind of be consistent across a lot of districts in Michigan with those extra funds ending in September. Um, and now schools are starting to eat into maybe some of that fund balance that was that was built up there and the the fund balance percentage going down was to be expected.
013That's in line with what the approved budget that the board approved. Um, there was an expectation that you were going to use part of your funds. You actually used less of your fund balance or had a bigger quote unquote loss this year. You had a smaller loss in general fund than what you had budgeted. And then our last slide here talks about fund balance to net position. So on the on the left hand side, these are all the various funds at the district and on the right side is the governmentwide. So um you can see we've added a couple funds down there, the debt service funds, the special revenue funds. I did want to point out on the 22 2023 and 2025 capital projects fund we do test those expenditures to make sure that they
014are in line with the bond language and there were no findings within that testing as well. So then on the right hand side you can see um the districtwide adds on things like debt uh capital assets the pension liability. So that's what's really driving some of the uh the orange bar there. But you can see in the teal bar that's about 27.5 million of capital assets. And then in the unrestricted piece showing a deficit of about 46 and a half, which again is mainly driven by that pension liability. And then there's about 10 million in restricted funds which make is made up of the OPED asset as well as some of the restricted bond earnings. >> Two questions. Um so going back to I think about expenditures. So the expenditures look like they've gone up.
015I guess I'm wondering why they look like they've gone up so much. Some of that has to do with some of the onetime categorical we got. So if you recall, we had almost $400,000 in the textbook adoption. So we've had some of those onetime sources. So, not only the federal dollars that we've had in the past that kind of dried up for this year, um, but we've got, um, some of those one time things that are coming in and then just some of the regular increases and things that we have in the budget. We also had the bus purchase, if you recall, which was close to a million dollars. Um, so again, it's a one time thing that that drives those expendure cost up. >> Next question is more of a clarification liability. We can't
016really control. >> Correct. If we had 46 million, it's not like we want to make sure everybody know it's a state program. >> Other questions? >> Thank you. I just want to say thank you Rob as well. You know, I think we're all impressed obviously statess. >> Thank you. Thank you. Appreciate it. >> Can I just if I could just in closing, I want to I want to thank my team um as well. Mike and Charlie and his team. They came to us this year and they wanted to start our audit a little bit sooner which gave me a little bit of nervousness because we already go early. Um but I talked with Nicole and and our team and they were up for the challenge. So we we we started our audit I think the
01721st of July. So, three weeks from our close, um, we were we were ready for them to come in. And this year, we had a new accounting standard that was implemented that I think took more time than any of us imagined going into it. Uh, so there was a lot of conversation, a lot of discussion that we had to have. So for us to get through this um kind of unscathed um it's a testament to Nicole and the work that that everyone did um and a testament to really the expertise and the knowledge that that plant brings to the table that allowed us to come together really smoothly. So so thank you to everyone for making that happen. Thanks. All right, that's it for presentation tonight. We'll move on to public communication for items found
018on the agenda. Okay, we will close that portion of public communication and move on to the consent agenda. The recommendation by superintendent Kevin provided for the board of education to approve, adopt and accept the following items for immediate implementation and appropriate action is presented. The approval of minutes from the work session of August 25th, 2025. Treasurers report bills for payment for the month of August 2025. Treasures review and confirm the checks. in the purchase card for the month of August 25, 2024 2025 annual audit and an out of state overnight request high school to Washington DC. Any discussion? >> All those in favor please say I. Any oppose first is regarding the bond. A recommendation by superintendent Kevin Ro of education award for the 2021 building and site capital project to Clark construction for guaranteed
019maximum pricing for bid package of number 15 GMP amendment o first ECC renovations in the amount of 2312584 any discussion all those in favor please say I I post motion carries. Okay. Next we will move into pre-bond is the recommendation by superintendent Kevin provided that board of education award owner representation services contract to plant real point as presented. >> Is there a second? >> Okay. Any discussion? >> I have questions about just I want to be clear on apping here. It says pre-bond service proposals. Um were these is this something that goes out to bid? Do we get bids from other entities? >> So typically no. I mean typically unless you had had an issue with currently with that what they were currently charging was different what the industry average three companies that we've been
020working with. How many years over the last 15 years probably 12 GMDs that day is >> and is it standard that all schools have premed services provided in this management? >> Yes. Typically, you're going to have your architectural company typically does a lot of that, but the other two companies like our rep that question. I think maybe there was a time Rob, you might be able to answer this better that we didn't always have that, but I mean the math works in our favor to actually have that, right? I mean, from the cost savings and the project management standpoint, you actually save money doing it because I know that we did a pretty indepth look into that several years ago. >> Yes. Yeah. Even with some of the um negotiations, if you will, with our
021architect and our construction management firm with the billions of dollars of work that brand does. They're able to get good industry standards and norms to make sure that those ranges of cost are aligned with where they should be. Um and we've already realized some savings just from some of that industry expertise. So, yes, and I think more and more districts are are moving in that direction recognizing just the that these projects are from the pre cost together getting things through the state for approval all the way through contract management and construction has been very beneficial. >> Well, especially and I'm just playing devil's ad here if we didn't go with that. I mean, we're going to have we're going to go out for a large bond in 2026. I mean, how would you and your
022staff even handle something like that if we didn't have, you know, that outside help? >> Yeah, it would be almost impossible. We tried it once. Um, and to say it was challenging was an understatement. It's tough. It's hard. >> Any other discussion questions? All right. We'll vote on the first then. All those in favor, please say I. I. >> Any opposed? Cares. Move on to the next recommendation by superintendent Kevin Rovida to the board of education award construction management services to Clark Construction Company as presented to the motion support. Okay. Any discussion on this? >> Okay. All those in favor please say I. >> Any oppos? And finally the last one recommendation by superintendent Kevin for the board of education award architectural services contract to GM as presented motion and support. Any discussion on this
023one? >> All those in favor please say I. >> Any post? That is it for action items. We will move on to discussion items. I just want to give you a little background information. Kevin and I talked about this last week and I I agree with him. So, in accordance with board policy 7250, memorial stadium dedications, the superintendent recommends that the board of education form committee to review the current application submitted for consideration. Committee will be comprised of the following members. Uh is recommended to be comprised of the following members. High school principal, the athletic director, at least one member of the board of education, at least one community member, and at least one current or former coach. committee will review and submit an application evaluate in light of requirements and intent of policy 7250
024and provide a formal recommendation to the full board of education for further action. So just for does everybody know what stadium dedications are? >> Yeah. So Rob can actually probably help with this but essentially um I believe from what the policy had stated it's somebody has passed away policy pass but that had a significant impact on the district and the student population and so that policy kind of lines out what we should be looking at is or what things we should consider something of that magnitude. But I felt it was very important that um one of the pieces of that puzzle was um up to the board president. The board president could form a committee. I thought a committee would opport There's never really been a good process for going through how does someone get
025approved or how do they meet criteria. We were trying to outline something was a little more process which doesn't happen every year and we probably shouldn't res have a question about the um proposed composition of the committee. >> So, it includes the athletic director, but it also includes at least one current or former coach. >> Um, and there's obviously other other very very frequently. So, I mean, is there a reason that we're solely focused on athletics or could we have someone >> No, that was completely just a recommendation. We certainly could add other positions, other And it doesn't have to be just >> my recommendation would have your high school. >> Yeah. And we didn't want to until everybody felt comfortable what that process. So The floor is open for discussion feedbackcess. You can either
026email me or both of us. Especially for the community if we're interested in serving as board of education members like >> okay we'll close that discussion and we'll move on to another discussion about the MESB delegate assembly selection discussion and selection of the DIT public schools board of education to designate three representatives delegates selected by board of education across the state's positions on a widely a wide variety of issues affecting education uh this year it's taking place Thursday October 23rd So I know that's difficult typically as a member of board there unfortunately we usually get three is that correct delegates we still get three I am not going to be able to attend I have to be at the American Association conference in Washington DC time so we can take up to three people it's
027up to you if you have not been to delegate assembly before forb sorry it's usually a little closer but it's a good learning experience just to see how operating around the state type of resolutions that are brought to MASB for us to follow and abide by. So if anyone is interested, please let me know. Do we have a deadline? >> I believe that's October 4th. >> October is it just it begins at 7 p.m. and runs. >> It's usually about two to three hours depending on how things go. It ends that >> but it's it kicks off their annual conference. So if anybody's interested in conference. I think that's something that we can explore too, especially now reimburse. >> So I think there's an opportunity want to go extra time >> and attend sessions the
028next day after that. >> So we can get reimbursement >> I believe. So I think I don't know if it reimbures all fees but I do think it at least does registration and other things. I think that's still the case to the entire board just to confirm like what that would be covered. Thanks. Any other discussion discussion there? We will move on to public communications for items not found on the agenda packed house. Everybody's quiet. We will close public communications and move on to the superintendent. >> Yeah. So, thank you. Um, so the school year has definitely gotten off to a great start. So, super excited about that. There's a little bit more energy this week because homecoming is coming up. So, uh we have put some information out on the route as far as
029the parade and all that. Um so, we'll be putting another posting out I think on Thursday or Friday as well. Just so that that information is out there. As far as capturing kids hearts go, as I talked at our last meeting, you know, our administration team went through their training for two days and the teachers and support staff and our our principles another training for two days and then our process champion teams which are building level teams they'll go through a day of training here this next week so I just want to super excited watch uh as I've walked through buildings over the last couple weeks um staff are definitely engaging and bringing students at the door and those social contracts are getting approved moving forward so in class so that's to watch um seen
030a considerable effort across the district. So super appreciative to the teachers and just how they've grasped this and really taken this on. So thankful. >> Yeah. >> So right now we have it K through eight, but I know Mr. Don and his team have also taken some of those concepts already. So we're going to be looking at training for later down the road, but they've already kind of taken some of those concepts on their own as well. >> Absolutely. In fact, we will um we will be bringing in capturing kids at some point to bring to the board of that process as well. A lot of it obviously is around not only the effort to create a safe and supportive environment for all students, really just building that outstanding relationship If you continually all the
031research is indicating out there, the stronger our relationships are between our students and our staff, you know, the better opportunity students have to have success. So that's our goal, build strong relationships. Uh the other thing is I did send you some information about the state budget not being finished yet. There is a county letter that will be going out to all families. Really our our goal is just to encourage the legislators just to work together and to get the uh budget finalized so that we can move forward with schools. You know, we're fine, but we just want legislators to know that hey, we're ready for that state budget to be done. Um and I have confidence that they're going to do it. I talked to Senator Sing today. He was in good spirits and things
032are moving in the right direction. So, I think we're okay. Looking ahead, uh we have two student representatives Avery Benson and Cameron Windsor will be joining us next board meeting. just want to other than that I just want to thank board of education and our families and our community for all the support they provided us as school off to a great start questions or comments we move on to any announcements we'll entertain a motion to >> adjourn all those in favor Thank you.