Finance and Planning Committee Meeting Minutes ~ September 3, 2024

DOWNLOAD MINUTES HERE 

 

RUTLAND CITY PUBLIC SCHOOLS

Board of School Commissioners– FINANCE/PLANNING COMMITTEE

September 3, 2024

Committee Members Present:	Also Present:
Marybeth Lennox-Levins, Chair	Superintendent Bill Olsen
Sara Atkins-Doenges	Assistant Superintendent Bianca McKeen
Justine Franko	CFO Ted Plemenos
Heather Hauke	Controller Tim Smith
Cathy Solsaa
Other Board Members Present:
Marisa Neary

Chair Lennox-Levins called the meeting to order at  6:11pm. 

 

Roll Call – All Committee Members were present. Also present:  Commissioner Neary, Bill Olsen, Bianca McKeen, Ted Plemenos and Tim Smith.

 

Approval of the Agenda – Motion by Hauke/Franko to approve the agenda as written. Motion carried.

 

Public Input – There was no public input.

 

Controller Tim Smith and CFO Ted Plemenos provided updates for the committee. The presentation documents are attached.

 

FY 2024 Financial Close and Audit Status –  Mr. Smith noted catch up required due to turnover in the Business Office. He stated that audits are now current and reviewed FY24 audit expectations, highlighting the schedule, addressing past findings, and a goal for no repeat findings and a clean opinion.

 

Mr. Smith commented on transferring year end data from the old accounting system to the new system (ERP Pro) which requires manual input. Four payroll runs have been completing since implementing the new system with no significant issues. Mr. Smith credited Cathy Koponen and Stacie Eaton for their work related to employee training and fielding phone calls and questions.

 

Mr. Smith noted the newly automatic accrual of payroll and benefit liabilities, a systematic approach, which is much less labor intensive. Mr. Smith provided remarks regarding the streamlined and automated procurement process which is paperless and utilizes 3 way matching to expedite paying bills. Mr. Plemenos advised that the level of risk is low due to the bulk of transactions being less than $200. Mr. Smith advised of an automated ordering process that is in place for highly utilized vendors, e.g. Amazon. He gave accolades to Accounting Manager Tracy Smith for managing the migration and training staff.

 

Representatives from the Business Office will attend an in-person training to be held in Bethel, by Tyler Technologies. Best practice and efficiency will be topics at the training.

 

All ARP ESSER funds are required to be obligated by September 30, 2024, followed by a 90-day period for liquidation (all goods must be received and paid for during that period.) Mr. Smith noted that the HVAC 3b project may potentially take longer than 90 days and advised that Mr. Bliss applied for a liquidation extension.

 

Mr. Smith highlighted the new budgeting module included with ERP Pro, noting that the new software will reduce errors and provide a better method for sharing information with administrators.

Annual Budget Assumptions and Outlook for FY 2026 – Mr. Plemenos recognized Mr. Smith for his leadership role in the system migration and noted that over 260 hours have been completed, with at the entire Business Office Leadership Team, participating in at least ½ of all of the training hours.

 

Mr. Plemenos reviewed the FY26 Budget, noting that it would be another challenging year. Key messages included: focus on sources of funding and tax impact, unknown factors, labor negotiations (REA still to be completed), and the basis for budget development being the delivery of educational services outlined in our strategic plan.

 

Mr. Plemenos commented on inflation rates and the impact on budget.

 

Mr. Plemenos reviewed the RCPS Homestead Tax Rates FY18 – FY25 and the annual draw on the education fund. He emphasized the importance of focusing on the managing costs and how they are funded. He provided an explanation of CLA (Common Level of Appraisal) and illustration (Page 4 B) of the CLA’s impact on budget. Neither the Board or the District have no control over the CLA.

 

Mr. Plemenos reviewed budgeting principals and demonstrated the average cost per student (long term weighted average daily membership) for discussion. RCPS cost per student is lower than the State average, even with high rates of poverty and trauma in our student population.

 

Preliminary estimates of cost decreases were presented, including:  no need for turf replacement, staff mix, and other areas of impact.

 

Preliminary estimates of cost increases were presented, including:  salary increases (contracted), inflation, special education Census Block Grant funding and health insurance cost.

 

Mr. Plemenos noted that the Administration is working hard to find efficiencies. Staffing has remained flat despite that it accounts for 80% of our total expenses.

 

The budget timeline was presented and the Committee was advised that more budget reviews can be scheduled if there is a need.

 

Mr. Plemenos concluded that the District has been cautious and focusing on budgets for several years ahead. A question and answer guide will be updated for Board Members.

 

Next Meeting Date – October 1, 2024 – 6:00 pm – 7:00 pm.

 

Motion by Franko/Hauke to adjourn at 7:12 pm.  Motion carried.

 

Respectfully submitted,

Betty A. Kapitan, Recording Secretary