001Okay, I will now call the special meeting of the history park board of education to order on this October 30th at 5:30 p.m. I have roll call, please. >> Becker >> here. Fortress >> present. >> Fox >> here. >> Leaf >> here. >> Um approval of the agenda. Motion to approve the agenda. >> I make motion to approve the agenda as written. >> Second. >> Uh any discussion? Okay. Hearing no discussion. Uh Roa. >> Yes. Becker, >> yes. >> Fox, >> Yes. Motion carries. Um, public comments. Uh, seeing no one, I'm not going to read the public comment statement and we will move on to our new business with the audit. Hello everyone. My name is neighbor. Um I was the audit partner or I'm the audit partner on the audit this year. Um if
002you can roll to the next or the next slide please. He's going to give you the perfect Thank you so much. Um this All right. Perfect. I figured it out. Um okay. First of all, this is just the independent auditor's report. We issued an unmodified opinion on our statement. We audited period ended June 30th, 2025 for the school district. Our responsibility is to express an opinion on the financial statement that they are not materially misstated. And that's what we did. We are required to communicate um various items to you as part of the audit, the conclusion. So that's what we're going to go through today right here. And we've also issued that in a separate letter to the district as well or to the board. um the required communications we go through um the accounting
003policies. So management is responsible for the selection of the um accounting policies. The significant accounting policies are summarized in note one to the financial statements. They did not change year-over-year. There was one new effective um new accounting policy that was adopted this year that related to compensated absences and there was no material impact to the financial statements as a whole. significant accounting estimates estimates that our financial statements have relate to our um net pension and oped liabilities and our depreciation and amortization expense. As part of our audit audit procedures, we evaluated the reasonleness of those estimates and found no issues with them at all. We did have a few um proposed entries. We only had two that related um to some state aid and some reverse um reversing the pay pay acral that we had
004to true things up on the book. So nothing major there and they're proposed meaning we don't they weren't material enough to actually post them to the financial statement. We are not aware of any other we are not aware of the audited financial statements being included in any other documents. We did not have any disagreements with management through the course of our audit. We did not have to consult with any other independent auditors in our during our audit. Um and then we are not aware of any other annual reports or equivalent reports which will be prepared by the district that would be in relation to the audit. We didn't have any issues you know with management prior to the audit. We had no difficulties encountered dealing with management. Um they've been great. Thank you to to
005Crystal and Monica for getting us through the audit and getting it completed. Um everyone was great and we were able to get it done on time this year. So that was great. We'll now go through um some of the just highlights really going to focus in on the general fund. So you can see here um this compares compares last year to this year. So we'll go over some highlevel um significant fluctuations that we had. So cash was up this year um about 6 million from the prior year. Really just kind of relates to timing and and our payments and whatnot. Um we did have to pay the $3.1 million loan after year end. So that's also why we had some extra cash sitting in there. Um, our accounts receivable was pretty comparable year-over-year. And again,
006due to timing, our general fund liabilities, deferred inflows, and fund balance, we have a schedule here comparing prior year to the to the current year. The accounts payable is up this year and within that is that $3.1 million payable. So, that's most of that increase that you're seeing there. Due to other governmental units, this is broken out differently this year in history. Um, it was just broken out as a it was netted this year. We broke it out for a little bit different presentation. Acred payroll pretty comparable year-over-year. And then we have our unearned revenue which is comparable year-over-year. A big chunk of that unearned revenue is still that 1.6 million related to the um the bus grant that we have that's sitting out there. Still our deferred inflows of resources are made up of
007our unavailable revenues related to grants. So this is basically revenue that we received outside of the 60 days. So on our funds level, it's considered unavailable revenues. So it's recorded like that. >> Question. What about the bus grant? >> Um just there's a there's an unearned revenue in that $2.5 million. There's just a bus grant that that we have in there that's included in there. So that makes up a big number. So while you know there was some fluctuations within the account both years, we had that 1.6 6 million sitting there fund balance. So un our unrestricted fund balance is up from the prior year. Um you know we had 9 million or 900,000 in total. Fund balance this year is 1.2 million. So we did increase that which is good. Our general fund revenues
008you can kind of see just a comparison of where the revenues came from between local, state, federal and our inter interdist sources year-over-year. Um, again, pretty comparable over overall both of the years, but this just kind of shows you that breakdown between the different pieces year-over-year. Our general fund expenditures, these also just kind of shows it based off of the different um buckets for instruction, support services, athletics, community service, debt service, payments to the subgrarantee, and the capital outlay. So, you can see year-over-year they're pretty comparable. Our capital outlay is down this year because we had um we just had a lot more in the prior year. Cost cutting um took place this year. Um as part of the required communications we are to um look at the effectiveness of our internal controls in regards
009to the financial statements and the internal control surrounding that. Um so part of that we look at there's different categories of a finding. We have our material weakness and we have our significant deficiencies. A material weakness is really just a combination of deficiencies in internal control where a significant significant deficiency is maybe just one and it's less severe. This year we did have a material weakness which just related to the books and records for the for this fiscal year including bank reconciliations were not reconciled timely just rec resulting in some mir material adjustments throughout the course of the audit. Um, but again, we made we made the audit, we made the deadline. So, again, good good work to the team. Um, does anyone have any questions on anything that we kind of went through or
010any any questions you have on the statements that you had in front of you? Anybody have questions? Nobody I I >> No. Are you going over more? >> This was it. Yeah, this was just the general high level update. If you have some questions, I can go through it. >> I have some questions. I was reading over >> Yeah. >> the not this obviously cuz that's here. >> Mhm. >> Um fabulous that we added to our fund balance because that was a huge concern of mine. >> I wanted to know I wish I knew what page it was on. Um because is this the right page? >> What is it in regards to? We could >> Yep, I think it's the right page. So we we over spent by a million dollars. >> What do
011you look what page >> are you looking at the budget to actual comparison from the general fund? Maybe. >> I maybe. >> Okay. Do you want me to pop over there? Can I come over there? >> Uh you can. >> Okay. I don't even know if I'm looking at the right page, but um so I don't think I am looking at the right page because on the other page there was something else on the bottom. >> Oh, this is it. Transfers in and transfers out. Can you please explain to me what that is? >> So that's just really transfers from one fund to another of of sources. So you're just kind of moving sources from one one fun. So if we have a huge amount in community funds that we didn't use there, we put
012it in our general fund. Is that >> I don't know the specific amount. Can you speak a little? >> I'm just saying if that's what it means. So we can keep so much. We have to keep so much in special ed, but we have an overabundance so we can transfer it to the general fund to make. So that's where the because we overspent by a million. So that's where we made up the million and a half to give us the $300,000. um indirect cost from food service and the special ed fund, rent from the special ed fund, and then the transfer of the excess funds from special ed. >> Okay, that I just wanted to make sure I understood it correctly. >> Okay. Um and I think that one's okay. Anything else? So, just so
013I'm clear, we're only adding 247,000 to our fund balance, correct? >> I believe that sounds right. Are you looking at the the general fund? >> Yeah, P47. >> Mhm. So, your change in your fund balance that's that's on you can see it on the um the combined statement of activities. you'll see all the different funds and that change in fund balance is the the addition or subtraction to your fund balance at the end of the year. So that's really the net activity of all of your you know the net of your revenues coming in and your expenses coming out. >> Okay. Anybody else? So, do you look at our final budget versus actual and say, you know, listen, where is this money coming from? They're showing on their end of the budget, which should be
014fairly close >> Mhm. >> to the actual and say, okay, why is there $1.5 million off? Generally speaking, you know, we will will do general inquiries if it is a significant number based on our materiality levels. But I mean I think if you're looking are you looking at the the general fund? >> Yeah. Compared to the comparison, you know, I think I think our revenues were down. I'm going from memory here. I can open the statement, but um you know, our general revenues I think were down. Our expenses were down I believe as well. Um and I, you know, I don't know the specifics. We'd have to go line by line. I don't remember them all off the top of my head, but we do do just general inquiry analytics on that. Um it's not
015we're not really auditing whether or not you were over or under those particular items. We're doing our audit procedures in other areas through testing of our your our net position and various testing of our our expenses that we do throughout the file. That kind of makes sense. Yeah. But in in my eyes, your final budget should be really super close to your actual numbers. I would, you know, I mean, that's again that's where you guys are the ones that are amending and setting the budget. Um, I think that is a is a recommendation and a goal, right? You're you're striving to accurately budget for the year. Um, I think our budget looks a lot better than it did last year, the fun the findings and where we ended up. Um, but I think that is
016a goal and and and something that can be improved upon, you know, through the next year. >> I'd like to speak to that too. We need to remember and I the community needs to remember that our business department did not receive Jason Zern's sheets and funds to go on where things were making up until the May timeline. So making some adjustments is going to be much easier next year when they have everything. But they didn't they were not able to access files, historical files to help facilitate what went into that originally or from Matt. So unfortunately, I think circumstances of last year left our newly formed business office to struggle and um and try to get it ready. I really believe that we're going to have a whole different situation this year. >> Well, I
017sure hope so, but my again my concern is then what was the delay in getting them that information? uh you guys had the computer with the attorney and that all of his files are on a HP computer and none of them was available to the business office. >> So you're telling me he had nothing saved to the cloud? >> They don't save to the cloud. They save it to their computer. So no, there were no files from Jason. They were with the attorney all the way until I returned. >> That's concerning. That should be looked into. >> Is that was that in this report too that that was a deficiency that we should be looking at our technologies? Yeah, >> there was no deficiencies. >> I'm not sure how we can look into it. The
018board of education did a investigation and the attorney firm took the computer. >> What I'm saying is they should be those kind of should be shared on a locked >> drive. That was a recommendation of the audit team last year. And actually my first week with the district, I asked Brad about how is there not like a network drive that Crystal and I can share files. They have it set up and on my computer, but only on my computer. So it still doesn't help for file sharing. So we've been pushing to get that and that will make things considerably better >> for sure. >> Um because right now we're emailing back and forth different versions of files and it's just a recipe for disaster. Absolutely. >> We are trying to get to a shared um
019drive for that. >> In addition, it also has to do with the processes as we're um refining, you know, the procedures and how we obtain this report and um get this information whether it's to the auditors or internal um a lot of that stuff wasn't documented either. So that also unfortunately helps a little bit on how you would get the information and for both. you know, once you have seasoned people, they usually just work through it and know what, you know, exactly what they need to do and whatnot versus somebody that comes in, you know, fairly fresh and they'll get acclimated to the system and whatnot kind of pull that up, too. So, we are in the midst of as we're going through like, hey, you get to go to ABC D. >> I also
020believe that part of the work with Terry Les was to run some reports out of the system and familiarize with some things that maybe we hadn't been using before. She helped guide some of that direction. >> Yes. So, I'm sorry. >> No, I was going to call on you because I knew you weren't finished. And then I have a question. >> As a part of the audit communication letter, I'm looking at attachment A. >> It talks about uh the school district should implement various IT environmental controls. >> Mhm. >> Uh which is including uh uh data is not transferred and stored off site a formal disaster recovery plan that identifies critical processes. So, >> yes. So we do a high level um IT assessment. We have an IT firm that actually comes in and they
021look at those types of things. Those are the same recurring uh recommendations that we had last year from our initial assessment that we did. So yes, that those recommendations were there. I the recommendation regarding or a finding regarding the issue of Jason's computer and that stuff that was not part of the audit or anything. >> Right. I'm just right there. >> I'm just thinking going forward. So, you know, >> for sure. >> And I just want to confirm those aren't material weaknesses or findings. Those are just recommendations. >> No, I I understand recommendations. >> I understand that's not >> and and you have to remember me working in the IT department. Um the mail is backed up with Google self-sufficient. Um so we don't have any need to back that up. the uh finance system
022um that we're using to make our checks is backed up with open schools. They actually have a backup vault that they have and it's also on another machine in another city somewhere. And then also the student information system um that is most certainly backed up not only in their premise but offsite somewhere. Um, the only thing Oh, and then all of the testing programs and all the stuff that Dr. Dillage is, you know, involved with, I'm sure those are backed up with the companies with separate vaults and separate things. So, we set this up as a district so we wouldn't have to spend all that extra money on backing up all that equipment cuz you're talking, you know, thousands of millions of dollars that to set that up. But the only thing that I concerned
023about and that I think that the technology department needs to work on is for these two wonderful ladies here. They need to have some kind of cloud backup for their computers and their system. That's what they're talking about. So that to me is like the priority should happen in the next month to get some kind of cloud system so that you can back up and and be secure and safe. Um that's that's the only thing I'm thinking. I don't know if that helps my input. That's all. >> Isn't there something there too about backup? Is that what the IT risk is? >> Yes. >> Yeah. Um so obviously say 23 24 the auditors recommended that uh well materials couldn't get to them in time and now 2425 materials couldn't get to them in time and
024so it's still the same person that's not here anymore that his computer wasn't timely that we could get stuff. So, I think we need obviously you got enough material to be able to do what you did, >> but there's still more findings possibly out there with the computer not being uh available. >> I don't think there's more from our perspective. Yes, that's a general recommendation. And I think that they should be backed up when we're talking about the the the issues and the findings that we had last year, you know, that related to not getting schedules, getting multiple trial balances, multiple journal entries, not getting into the schedules, you know, and we pushed the fieldwork back probably five times, right? So, we didn't issue this report until the end of January. this year. Yes, the
025state of Michigan recommends that our bank statements or bank reconciliations are prepared timely, which is I think was I think it's 30 days after year your end. Um, in addition to that, you know, we there were schedules that we didn't receive on the first day of fieldwork, right? But it was a totally different magnitude of of a of a audit process this year, right? We were able to get it done, but we were, you know, we were up to the wire. We were working really hard to get journal entries in and make sure we were good and we finished up all of our schedules and stuff. So, it still was it didn't happen. It's still considered a material weakness because we didn't show up day one with everything ticked and tied and perfect and here's
026all your schedules, right? That's that's what we need. You know, we can't have a bunch of journal entries a after the fact. But I will say that Monica and Crystal, you know, they've worked really hard to get where we are today. And the fact that we issued the financial statement in time, I think really does truly speak to the effort because I believe she I don't remember the exact timing, but I you know, you came in in the spring time, you know, we were she was ready for us for for our audit planning. I think we did that in July. It was that request list was filled. We were out here. We had our planning done. And I there's just a lot of learning and whether or not they had the files, that's a whole
027other, you know, learning hurdle. But there's new processes they were trying to get in place. there's you know whenever you have turnover in a new system it takes time so that I believe is the attributing factor to that material finding again next year you know we'll have to just we'll have to see and if things are you know in a better order and we get things more timely and we start field work then it's a different story so that's how that would eventually go away >> and I would say it's a material weakness it's not a finding and then I think number two we're grateful that the board of education at the last meeting approved an accounts payable person or not accounts payable but a uh position so that that was the recommendation of Terry
028again that we add another person to help make sure that those accounts are reconciled in a timely manner. So fortunately that position will be hired hopefully in the next month and that should make a difference as we're moving forward. >> Okay, everybody good? >> There's one actually one additional thing I'd like to point out. Um the financial statements today do not include the single audit and that is because the final compliance supplement has not been issued. So as soon as that is issued, we have 30 days to issue the single audit to the financial statements. So I want you to aware that we did do most of the majority of the work. I want to say we're like 80% there. So, um, my goal is to over the next week, week or two, we wrap
029everything up with that and then as soon as that compliance template comes out, we're just going to make sure that there's no changes or significant items with the the the new ver the final version and then we'll be able to issue that. So, we do have once it's finally issued, we have 30 days. So, there'll be no issue with meeting that as well. But, I wanted you aware that it's not included in the packet you have today. >> Just want to be clear, this does not mean >> Yes. Right. >> Yes. >> Go ahead. >> We'll get a copy of that when it's completed. >> Yes, absolutely. >> Thank you. >> It'll also be on our on our transparency page for the community as well as well as these things will be uploaded into the
030board packet after this meeting. >> Okay. All good. >> All right. Thanks, Amber. >> Perfect. >> Thank you, Amber. We do need to approve the audit. >> I know. Yeah. >> Okay. Oh, we need a motion to approve the audit, but I'm just thanking you and Okay. >> Um, I need a motion to approve the audit. >> I make a motion to approve the audit. >> Support. >> Motion by Heidi and support by name to approve the audit. Any more any other discussion? All right. Roll call, please. >> Yes. Motion carries. Thank you again. >> Thank you. >> Have a good night. >> Thank you. >> Okay. So that's we have >> Can I um ask if we can make another motion to um ask the board to direct the um district to um do
031the cyber security risk assessment and to set up cloud-based backup? >> You're making a motion to do I'm asking you if I'm allowed if I can. Yes. Since it wasn't on >> No idea. >> Okay. Well, I will >> Mr. Patterson, can she make the motion to do the IT backup and um cyber security? >> It should be up ahead of time >> because we approved this agenda already. >> Correct. >> Okay. Can that be on the next agenda on May November 17th >> on the >> but I do believe we can make an emotion at any meeting. Correct. >> Generally you >> and that is this is part of the audit review. So why wouldn't I be able to make that? >> We we should provide public notice for an opportunity if it was
032an emergency situation. >> Well, they are the public was notified that we're reviewing the audit. This is a finding on the audit. >> It's not a finding. It's a recommendation. It's a recommendation. >> I would love to be able to bring that to you to the committee the whole so that when you're asking for an audit that we get cost for that and bring that forward to the group so that we're not just >> it's not an audit, it's a risk assessment. >> Uh the risk assessment is an >> you can get and I'd like to bring that to you and then I believe that something was purchased. I just want to make sure before we ask for something else to be purchased and we'll bring that information to you at the committee the whole
033and then for what you'd like to move forward. So, we'll discuss it there and then what you would like to move forward to the um because I believe there's various ways we can do a cyber uh assessment and as a matter of we do some of those and I'd like to get different organizations in those costs too. >> Thank you. >> Also with the cloud-based storage. >> Yeah, we have I I believe um I'd like to get the recommendation on whether we need cloud or local storage here. I believe it's set up to be local, not cloud. just on the agenda to discuss it. Committee of the whole is fine. Thank you. >> Okay. Audget. >> Okay. My turn. >> All right. Um see if I can work that. Okay. Um so just a couple
034notes about budget before we get um into the details. Um it's important to remember that this budget represents our spending projections based on what is known as of right now. Um certainly things will occur during the year that we wouldn't have foreseen or know of but this is all based on what we know of right now. Um while the f the state funding has been decided specific impacts of some of some of their funding changes are still unknown to the district. they passed a lot of funding laws and don't really know how they'll deliver it or we don't know the exact impact to us yet. So, we've only put in known changes in this amendment. Um there's still a lot of uncertainty with the federal budget since um federal government's on shutdown. We don't expect
035that to have significant changes on our budget, but it is still an unknown. Um, also the budget amendment does not represent our actual fall student counts. Um, they're still working on getting that number. So, um, hopefully then we'll see a pickup with that in our next amendment, but um, that's not been updated. Um, so, uh, some s summary items, uh, based on revenues, the foundation allowance increased from $6,98 per pupil to $10,50. >> Can I Can I get you just to correct that verbally again? I just think there was a flip of the nine and the six. $9,68. You said 6,000. >> Oh, okay. I was like, "Okay, >> that was a big jump." >> You guys have not received that PowerPoint. It'll be reported. It was just completed. >> Um, okay. So, with the
036correct numbers, we received $442 increase per pupil. Um, using our blended state aid enrollment that was on our October state aid note. Um, with the per pupil increase, that amounts to $1.28 million increase. Um and then this just talks a little bit about the FTEES that we used which came again from the state aid report. Um some state categoricals that were eliminated were um totaled about a million dollars and that was two of the Mipers lines. There were Mipers's adjustments on other categorical lines um but some of them have an offset or we don't know exactly what the adjustment will be. So um we've just adjusted for these at this time. um categorical increases. We didn't expect to see increases on state aid. Um there was a 25% increase in the 31A at risk funding.
037We in increased our budget by um uh the 25% I don't know that everybody's going to get an across the board 25% increase, but we made that assumption. the federal funding we've um left in the title grants and IDEA. We think that those will continue. Um and then ESSER, we had a lot of ESSER money over the last couple years that was concluded last year. So there's no additional ESSER funds in the budget. >> Real quick, sorry. Last year is in 2425. >> Yes. >> Okay. Can I ask a question revenue? What was the pupil count that was used? Um, >> you said you didn't change it. So, >> uh, yeah, it's 2,95.75. Um, so they that came from the state aid report. So, I don't know if that's it's probably not really the fall
038count, but I don't know exactly what time period that >> that's that's 10% of the uh last winter and last fall, right? That or the >> 10% of February. Yeah. February 2024. And so that's last year's count is what was used. >> That's what the state aid will do until the audit is complete and then they will make an adjustment, financial adjustment for us. But we will also share this presentation that has that FTE for you. Uh this is just a a chart showing the change in foundation allowance. So um the last two years it was 9,68 and so we see that that increase for this year. Um this is our enrollment trends and I don't have anything in for 26 because we don't have those numbers yet. So uh we'll get you that updated
039once we have those numbers. Um okay so now into the fund. Um revenue, we really looked at everything. We looked at taxes, grants, um local or state funding. Um we had a little bit of carryover grant funding and um I believe Amber spoke a little bit about that. Um one of our our pleasant surprises, um the state increased uh the foundation allowance from MVCA to match our foundation allowance. Um, so they also had budgeted to have 400 more pupils this year. Um, but we get 3% of their state aid funding. So when they they got their increase in foundation, um, that was a a a little bump for us as well. >> And that's reflected in this. >> Yes. >> Okay. >> Yep. Um, overall there's not as much of a change as I was
040hoping to see in our revenues, but we took out a million dollars from Mipers's uh categoricals. Um, but we had a few things that carried over from 2425 that we've included. So, our budget increased the revenue by 532,000. Um, so the pieces that carried over, it's it's revenue that we should have received or recorded in last fiscal year, but we did not receive it in time to be allowed to count that. So instead of it being in the ending fund balance for 25, it's just going to be part of our activity for 26. the uh one of the pieces for that was our community center grant. Um we had it we paid bills over the summer and they the auditors said we had to charge those back to last fiscal year but we could not
041get the revenue that matched with that within the 60-day period. So in this year we'll have that revenue but we have no expenses associated with it. um same there was a small amount of old um reimbursement we were able to get from the um DFC grant um but that will show in this year and then the center program we had to leave the 7% fund balance um and this is a little bit more than 7% but we'll be able to transfer all of that into general fund this year um so while we were hoping we would have ended with a 1.9 million fund balance um we really ended up with 1.2, but some of these pieces were factored in when we thought it would be 1.9. So really counting our fund balance and then these
042three items that carried over, that puts it us at about 2.5 million. Um this is just a chart showing our our fund balance um year-over-year. You can see we went up some from 24. I have sorry to keep interrupting you. So the the two So is that on the bottom of this page three in this report you gave us where it says excess deficit 1 million30. Is that what you were just explaining? >> Um yes. We'll get back to where we see that number again. >> Okay. >> Mhm. Monica, do can you send this to us? Can you email this to us? >> Yeah, I said earlier we will get that to you and then also post it for the community >> the but this presentation here. >> Yes, we did not. It was just
043finished so we did not get that for you but traditionally we put it up in right after but we will send it to you in the morning. >> We had major system issues with uploading the budget so it it really delayed us putting this together. Um but we'll get we'll make sure everybody gets that. >> Okay. Um with the expenses, so we reviewed all the employee positions um in the district and took actual incurred costs to date and added in projected remaining costs um which included the fringes. Um added new hires were uh taken into consideration including the um new accounting position um review. We also review current contracts, liability for liability insurance, workers comp, copier and other known contract changes. Um, which some of that was was already talked about in previous meetings and
044then in the um proposed budget I believe as well. So, as you can see in the original proposed budget of 2526, we um estimated a negative two u million uh deficit. Again, as we explained in previous meetings that that was just essentially a rollover budget um with all the uh estimated changes that we've had now, estimated expenses, um we are looking at expenses at 2.2 or I'm sorry, uh estimated fund balance at 2.2. 2, which is about 3.84%. Again, this is not um reflective of all revenues that um we could potentially get this year. And of course, you know, through the regular budget updates and the amendment, you guys get more information as it as it comes. [Music] Um, as Monica had already stated that, you know, it's important to remember that the bud budget
045represents, you know, spending projections. Um, and based off of what's known for right now. Um, and again, as I've said and Monica has said, while state funding has been decided, um, specific impacts of some funding changes are still unknown to the district and to others. uh federal funding is still up in the air bringing uncertainty and uh vitality to the budget. So as uh we continue, we'll be more diligent than ever in what we are spending. Um whether it's you know costs and supplies and uh as you guys know the uh cuts that we've already made that was you know we try to do furthest from children. Um, and as we continue to look over that class sizes and whatnot and see what else we can cut, um, that's with the reason, you know, we'll
046continue to, um, make those, uh, recommendations or evaluate. Um, again, we'll monitor grant expenditures, ensure dollars committed are expended and reimbured timely, so within the actual fiscal year and not um, the following fiscal year, so it can be recognized in the current um, correct year. And then um any consideration should be given before making large unbudgeted purchases as negotiations with all union groups is beginning. Um and that's also we also and I'm sorry I didn't say this beforehand. We also did take into consideration um a percentage rate in our expenses for the uh secretaries and the GSRP associate or teachers. Um and we just projected as 3% increase. Um so and you of course those changes be made once we actually go through the full negotiations and come to um an agreement with the contract.
047You have any questions questions? I do. Um I'm looking over this and the transfers in have increased by a million dollars. Where is that coming from? Um, a majority of that will be the 722 I think it was um of the money coming from uh the special ed fund. Was that on one of those slides that you showed? >> It was really hard to see those slides. >> I'm sorry. It was here. I'll go back. Yeah, it's right there. I can't zoom in, but uh $722,859. >> Okay. And the 400 is that 400,000. >> Yeah. 460. >> The community school grant >> that we've already expensed, but we didn't recognize the revenue. >> We have recognized the revenue, but it's recognized in 2526, right? Right. >> Which is this budget we're talking about. >> Correct.
048You're talking about the community center. >> Yes. Grant. >> Yes. So if you take that bed, the 720, is it 22 and the 400? That's your um difference, right? So high compared to what the original bud budget was. More questions. Of course I have a question. Go ahead. You're done. >> I'm sorry. Yeah. What is the decrease in other? What is What does that consist of? Cuz that's almost a million dollars, too. What are we What are we cutting there that makes up that million dollars? >> Um I know one piece was a $300 transfer to the debt funds um that we don't have that um budgeted this year. 300 >> 300,000 >> roughly. >> So that's my question. >> So I I I don't remember offhand what the other difference was. So we could
049look into that and get back to you. >> Yeah. When you email if you had time tomorrow morning, we can email those. >> That'd be great. Thank you. >> My question is that we're not going to have any debt service. Should we borrow more money? No, that's our for our bond payments and um I think we were just short on collections the one year. So they that was budgeted to have a transfer. >> Okay. Thank you. >> So where's the interest on the money that we're borrowing? Um that is something that we're working with my lab in order to transfer the funds in and out and as we start making those transfers we'll be able to give you um the interest on the >> I think they're about they're >> interest expense >> the interest
050expense for the state >> oh I'm so sorry other >> that was already accounted for um >> but I think you should say which line would that be in >> I think I no I believe it is other I We'll get back to you. >> You built it in that. Yeah. My question you built it is built in. Correct. Yes. >> And then on the fund balance, we submitted a a budget to the state that had a zero fund balance and this is a negative 333. >> We submitted it to the the budget be to a negative 300 >> and then um the amendment shows. So right now we have 1,240 Yes, that was from the audit what our um ending fund balance was for 25. >> Okay. And you're expecting 2,270 by the end
051of 26. >> Yes. >> Okay. >> We also talked about the other funds that we will when we do our two-month check, which we agreed to, we will give you an update of what those are as well. So currently we have 1,240,000 in a fund balance currently. Right. >> Correct. >> Okay. >> I just want to be clear because of June 30th. As of June 30th, we have more than that in our fund balance right now. >> That's this is what's written and what's presented and this is what goes on the transparency page. Correct. >> Correct. >> Okay. Anybody else? So we still have to because we're still under the 5% we still have to do something, don't we? >> Yes. So MDE recommended we wait until the audit was completed to do and then
052do a budget amendment so we would have some actual ending numbers from 2425. Once we file the bid, they will see and they'll get notice of our um budget amendment. So they'll see that and then they will reach out. We should probably be back in the um just at risk monitoring >> with treasury and we had talked with both treasury and the state regarding that which is why I believe I sent you long emails and my to kind of explain that that's why nothing you wouldn't do that until this is done and they were good with it. We now have 30 days to respond. >> I have a question. So, just so I'm clear, you're going to submit the audit to the fifth fifth whatever then. Um, today or tomorrow or whatever, what's the timeline?
053>> It's due by the 3rd. So, technically it's November 1st, but since it falls on Saturday, it's by the 3rd. So, and that's already something that's been working on. It's just a few other corrections as far as >> So, that's what we voted on tonight, right? That you're going to send out. >> Yeah. We couldn't submit it without >> the audit being approved. Correct. And then also on top of that, you're going to submit the amended budget >> to them also. So those two pieces are important to send to them by November >> if you approve the amended budget. >> If Yeah, if we do. >> Thank you. I just in my head I wanted to make sure I was clear. >> So is this going to MDE and they submit it to Treasury or
054is it going to both or is it going to Treasury and they submit it to MDE? Uh yes, we're going to be doing all of the above. We have to reach out to Treasury um once we do that, but also the internal systems will work and then also MDE. So it all kind of works within itself. We will um we will reach out in in my opinion I will reach out to both of them to kind of let them know what happened here and then as it works through the system they'll send us letters and you guys will get a copy of those letters too. I'll make sure you get them when it comes in. >> I just have one more question. So, the sheets that we um received the 1.8 increase I'm going to
055I'm money. Did that affect the actual from 2024 or did that affect the amended budget? We got a 1.2 sheet and a 1.8 sheet. I'm sorry. >> Cuts that I'm trying. >> Yes. Cuts that for the cuts that we're making. >> We got Is that for the 2425 school year or is it for the 25 26 20? >> Yeah. You uh the board of education did not do any cuts before June 30th last year. Um people held strong, didn't fill positions, but there were not uh in January they didn't sit down and say, "Okay, here's what's happening. we need to make cuts to change the budget direction. Um, all of those cuts were as we presented you the first budget for the 2526 school year. >> We we have additional pieces that we can do.
056We just need to have a conver larger conversation. There's some positions that you know as things happen we may not fill. There's also some classrooms that you've asked for me to bring you the class sizes which we'll talk about on the 10th that are um this these cuts have not gone without impact to individuals throughout the district. Can I ask my question now? Oh, I'm sorry that was that's okay. Um the so the 34 million for the basic or the total instruction from the original budget down to the 32 million is a decrease of about 1.9 million. Were those the items that we saw on those sheets? I guess is my question. Yes. So even though we and those are to me that's those two items are the items that directly impact students. Correct. >>
057Not the >> No, it would have been in the Can you say what lines you're looking at again because you know the change line >> the first two lines >> basic programs and added needs. >> Yes. So basic programs dropped by two by two million. So I guess what is the basic programs and why did that drop so much? Well, some of it dropped because we didn't fill classrooms. Um we had several classrooms budgeted, many classrooms budgeted, such as uh we didn't have enough for three kindergarteners at United Oaks. uh we didn't have enough for three classrooms I think it was at United Oaks for first grade you were looking at fourth grade so we budgeted tightly and you've asked me to share that with you so that's some of that um items that are
058in there as well we can look at that closer and get um some specific things that changed in there >> be beyond what what we knew I would just remind everyone this is a work in progress and uh we believe and have believed that sometimes salaries were duplicated throughout and so this is continue as they're spending their time developing departmentalized budgets that will clear that out even more but that takes time to go into that process. >> Thanks Monica. All right set no more questions. Motion to uh approve the amended number budget number one. >> I I move the board of education approve the 2526 budget amendment number one as presented. Second. Motion by Debbie, second by Heidi to approve the budget amendment number one for 2526. Um roll call, please. >> Progress, >> yes.
059Forress, >> Yes. Motion carries. Brings us to the public comment section. Is there anyone wishing to speak for the second public comment? Limited to three minutes. [Music] There you go. [Music] Now state your name and address. >> 992 East 4830. Um yeah, so I'm just going to continue with my conversation. Um is neat to see the um you know the audits come back. Um, I think one of the things I was most interested in learning is how can we keep spending 500, you know, what is it 500k in interest on the 12-month loans that we keep borrowing to, you know, the rescue loans from I think that takes away from instruction and it's really sad because you you know we should be not in this situation. Um, I don't know how anything could be. I'm
060so closely involved. Since five um 117 of 2019, I've received communication from the Hazel Park School District's attorney work product from Clark Hill. And um it says such that Jason testified that all of his uh books were uh up to date and there was no any unethic you know budget like that wasn't correct. So I don't know was it my alerting you guys to to monitoring the budget through a formal request that and then you went off to have blaming everything on Jason when Clark Hill and Jason testified that they were in good standing with plant mor uh in this correspondence letter. I So I have that's a discrepancy and it's in congruent. How do you just like not know I'm going to follow up on it? I mean of course so the the sum
061and total of it was I you know requested a internal fraud you know investigation and I saw it as two-pronged ethics you know honesty all the timeliness of getting books in order audits it turned in on time suddenly plant man says we're out of compliance and we are not able to be able to be receive their services. So, what happened in between? And I still have a concern which I'll likely put in writing about breaches to the collective bargaining agreement with this inappropriate relationship between HR and uh the superintendent. I I hear congratulations are in order. there could be an engagement um with their children which I understand is just recently hired by HR to possibly be here working in our district and that seems to I'd like you to please investigate but that for
062an ethics breach because I think Dr. Krooppy is profiting from her organizational fraud. >> Time's up. Thank you. Thank you. >> Okay. Um, board member and administration comments. >> I I'll go first. >> Okay. >> I want to thank you the whole business office for working so hard and um you can obviously since our budget and audit is on time, it shows all the effort you put in. So, I really appreciate all that you have done and all the extras that you provide for my million questions. So, thank you. >> Um, yeah, I want to echo that. I really appreciate the work that you guys are putting in. I know it's a lot and uh hopefully we can get that person hired quickly to help alleviate some of this stuff cuz, you know, clearly that
063is necessary. Uh, also football team playoffs. Excited about that. the play um is uh going on right now I believe or coming up soon and Saturday. So good to see everyone uh moving forward and and having a good school year. >> Anyone else just like to add thank you ladies for all your hard work, dedication to get this done on time. I know you are here a lot and it's greatly appreciated. >> Thank you. Can I say one more thing? Sorry. I just want to say I um in Trevor City, I took a class on grant writing and it gave me a whole new appreciation for those of you who write grants for us because it was a lot. We didn't get past like the first page and she's the lady was saying how some
064of them are 500 pages. So I just want to say I really appreciate that too >> because that was a lot. >> And I'd like to Yeah. Go ahead. >> And the band the band is going to be at uh Ford Field. Uh >> yeah, >> Saturday. >> I do want to uh >> if I may respond, I want to be clear to the public since it's allowed to mention my daughter that my daughter is 18 years old. She's a senior uh senior in high school. She has no intention of marrying anyone, nor is she dating anyone. That's misinformation that's on the internet, and we should not be allowed to make comments about my children. It has nothing to do with my job performance. Mr. Cox, >> nothing. >> Are you good? >> I'm good,
065too. Next meeting is the 10th at 5:30. And thank you, ladies. I didn't mean to overlook you. You are You are awesome. That's >> a motion. Awesome. Thank you. >> I make a motion to adjourn. Support. All in favor? I I