comment card. So, our first item of business is the GRPS finance training regarding audits. I was going to say good afternoon. We thought since it's our audit season that that we'd spend some time and do some high level talking about audits. So, I'm
going to just jump right in. Um why do we do audits? It's um a state requirement that we must be audited at least annually. The audit the audits have to be performed by a certified public accountant. Um the information is
due to the state by November 1st and they have to be available to the public. So we do post them on our website under the transparency reporting. Um our audit timeline just um and I'm going to go kind of quick because I do know you've got the board work session
but if you've got questions you know to stop me but and we'll try to keep it quick and moving. So, um, so our audit timeline is usually in in July, the auditors are out for about a week. Um, and at that point they're trying to do some systems testing, some internal
control testing, looking at our processes, and they do that by, um, selecting samples and walking those through our system. At year end, they come back usually the day after Labor Day. And so, they'll be here next week to do some more. At that point, their
focus is more on testing of balances um and looking to see, you know, where is our revenue, where are our expenses and go down through the balance sheet, our assets and our liabilities and tying those out. Field work usually lasts about two
weeks. That's always my goal to get them in and out in two weeks. Um they also look we do implementing of new accounting standards. This year we do have at least one that we're implementing. It's uh gazby 101 for
compensated absences. So we're going to be doing some changing of what gets recorded and how it gets recorded in the statements. Um when they leave typically we've got that um like midepptember to midocctober
where they're we're wrapping up any open items they may have. Um they do have a multi-level review process as well. Um so that usually takes and that includes their professional standards review. So one thing with plant rand they are
experts in the in school district audits. They have several of their staff members across their practice that are on state committees and national committees as well. So um definitely feel like we get a sound advice when we
work with um plant moran. And then in October, they typically come to a board work session to present the audit to the board. Um, by November 1st, our results and it's the audit itself is due and to the state as well as what we call our
FID reporting. It's the financial information database that we have to update with SID with SEPY. So, the auditor process, they come in and they're looking for audit evidence about the amounts and disclosures in the financial statements. Can we verify what
those are? Um, like I mentioned, when they do the test of systems and processes, they're looking at our in internal control um and making sure that we've got um a fair presentation in the financial statements. They look for
appropriateness of our accounting policy and the reasonleness of any estimates that we're using and they basically the also the overall presentation in the financial statements. A lot of that is very prescribed by generally accepted
accounting principles. So um they will give usually three um basic audit documents. we get the report to to the board, our big financial statement, and our federal awards statement as
well. And they do do a I got that audit presentation that they typically do as well. So, those are our three big documents. So, I'm going to kind of go spend a little bit of time on them. Um the report to the board of education, um the big part of that one is it does have
some required um communications to the board in there as well. And if they were um the first letters are kind of boilerplate. Um but that's where if they had a significant
you know I think one of the if they had a disagreement with management about what's in the statements that would be where they would tell you as well if they have you know a problem with one of our estimates and we weren't able to resolve it. That's where you would see it as well. But um so the first part is
just kind of this required communications. We've always been very positive in those. Um, and then the second part that and like I said, Plant Maran are experts, but one of the things they like to do is like an additional service is
to offerformational items as well. So, there's usually about 10 pages of what's new in schools, what's trending, what's upcoming, um, as well. So, it's just kind of a goodformational item for you. usually pretty easy to read, but like I
said, they usually pack a lot in there. Um, the financial report. So, this is the big one, and it's it's our like 100 plus pages of information. It's got um we follow generally accepted
accounting principles as well as requirements and the state accounting manual. Um, one thing that we do do is provide as GRPS some additional information that's not necessarily required. Um, but we've always kind of done it, so we've continued to do it.
So, um, the sections in there, there's a section that starts with management discussion and analysis. So, that's just kind of a narrative of what the overall statements are. Um, one thing, there are district-wide
statements and that lumps all of our fund level statements together. Um, those are to me kind of confusing, but they're required under the generally accepted accounting principles. The fund level statements, those are ones that we
typically focus more on. So that's got your general fund, your capital project funds, your special revenue funds, and that's the way we look at it monthly. That's the way we talk about it when we talk about general fund um fund balance
etc. the notes. Again, that's another rather lengthy section of the statements. Um, but it does re report out a lot of good information about how we do our accounting, what it is. Um, and going through that, there's some
required supplementary information. Most of that is based off of our pension plans. So, that one is another one that sometimes it's a little hard to read, but it's the required information um about our Meipsters retirement plan. And the other supplementary information
that's more I want to say discretionary additional information that we've always provided. Um, one thing to note this year, we I am going to have plant actually prepare the statements this year. Um, we've been one of the few districts
that actually prepare our own statements for many years. Back when I was the auditor here, GRPS still prepared their own statements. So, when I came back, moved here, I still just kept preparing our own statements. Um, but we're trying
to achieve more efficiencies both on our side and on plant sides for the audit. So, um, they approached me last year and said, "Randic, we really like to do your statements. you're about the only I think we're the only school district that they work with that does our own statements and it's just harder for them
to get through the review process and we're losing a couple staff members out of the business office. So it's just kind of like okay maybe this is the time to work smarter not harder. Um so that's what we're going to do. So it's likely will look a little different but all the
required information will still be there. So, not that we're trying to significantly change anything, but they said, you know, like where we call it note A, it might they might call it note one. So, things like that may change a little bit.
Um, on the federal awards, districts that expend more than 750,000 are required to have what's a single audit. Um, so obviously we spend we get more than 750,000 in federal awards. Um again that
report letter has um a series of report letters in that document. Um the next section is a detail of federal awards that listed out by um categories and then there's a schedule of finding and question cost and I'm going to talk about a little bit more of that in a
second. Um the audit data itself basically the statements are GRPS. That's why you know historically I said we've always prepared them. There are statements. Um the only thing that's really there that
the auditors do is offer their opinion. So there are four types of opinions you can get. Unmodified, qualified, adverse or disclaimer of opinion. Um we've always had an unmodified. So that's the highest level of assurance that they'll give on a statement. So even though it's
kind of almost maybe unmodified sounds a little strange but it is the highest level. So uh we went back the five years but I can say as long as I've been here and even when I was the auditor it's always been unmodified for GRPS.
Um this is going now to the the schedule of findings and questions cost and again we pulled five years of them to show you what it's there. So this is kind of the cliffnotes version of the single audit. So on the top they give you, you know,
what kind of opinion did they issue on the financial statements? And you'll see the unmodified. Um they'll look and say on internal control, were there any material weaknesses or significant deficiencies or non-compliance? And we've got out on fiscal year 20 all of
them are now. Same thing with federal awards and your major programs. Um all of them are no. They identify um the when they do their single audit testing they look at the expenditures
and they kind of rotate through a cycle. There's a certain dollar threshold that they have to test. So they pick what they call major programs to hit that dollar threshold. So each year they'll show like this year it was the child nut n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n nutrition cluster and the special ed
cluster that they did most of their testing on. Um and then they ask you know is does the audit qualify as a lowrisk audit audit and yes we do and then that's where they would list out their findings if they had
them. So fiscical year 20 no findings no questions costs there. fiscal year 21. Same thing. And you'll see there in the middle that they tested different um grant programs. How do they deter Is it R it's just random selection? How do they determine
they kind of try to rotate through? Okay. Um and that's why, you know, it's like we kind of can start to predict which ones they're going to do. Um but they do have to hit that dollar threshold. So like this year they were planning on I don't title one and one of our other
grant programs but then when they're starting to see some of our expenditure numbers and they're like no I think we need to add title two as well. So this year they're going to be testing three programs again. Um when we had the COVID funding those because they were new
rapidly changing all of that they those years they did test heavily on the um SR funding. Um, same thing for fiscal year 22 and 23. This is when you'll see we had
uh they were testing food service and there's one that they called a significant deficiency and and I'm going to flip over here to where they wrote up the finding. So, you'll see a lot of conditions there. Um but what it was is
we were providing food service to the nonGRPS sites. Um as some of those sites did not qualify for we still had to take the free and reduced lunch applications. So, we collected, I believe it says 53 manual applications and there was a
problem with one of them and what it was is the top part didn't agree with the bottom part and we didn't catch it and we offered that child the reduced lunch price and they should not have been received the reduced lunch price. So it
was one of those I mean it is what it is but it was to me you know I I struggled with them calling a significant deficiency but that's what it was. We put in um one thing when you do receive an audit finding you have to put a corrective action plan in place. So food service
put another review in place on those um free and reduced lunch applications. So even when there's just for my understanding even when there that's identified the opinion can still come out as unmodified. Yep. Okay. Okay. What does the opinion then
represent if that is in our in all material respects our financial statements are fairly presented. Okay. Okay. They're just identifying hey you missed something. Yep. Okay. Thank you.
And then last year's we're back to um everything is is fine through there and they did because we had the finding in the food service program the year before they did go back through and do the additional testing on that program last
year as well. So, okay, that's all I had on the audit, a high level audit just to kind of get you thinking about what you're going to start to see in the next few weeks, months. Well, and it is good to see that we are
doing very well in this area with all of these unmodified and actually showing this one area where we needed to do some corrective action that was fairly simple and direct. So, that's good news. Um, any other questions or comments for Miss uh, Cribs?
Yeah, just some a really couple simple ones just to make sure I understand. I tried to do a lot of this ahead of time, but some I wasn't sure about. We qualify as low risk because we've had approved audits in the past. Is that correct? Yes. Okay. I was trying to figure out what
that's the threshold and all of the testing and and all of that. Um, I'm not actually as sure about that. That might be a good question. um when Plantaran's here. Okay. I can have them ask answer what a lower strategy. Okay. And then the additional
information that we provide both Grand Rapids and Plantaran is who's the audience for that? What is it helpful or why is it provided? Um for me it's like we only we again we've got major funds
and non- major funds. A lot of our other funds qualify as non- major. we'd only have to show them all lumped together. And I've always said, well, to me, it's important information to show food service, separate from Houseman Field,
separate from grasp and all of those details. Debt funds we could lump all together. And again, I for me, it was just I think that's good information to have with all the debt funds separately. Um, capital projects the same way. So, it's just kind of like that additional.
Um the other part where we probably show more information is on the detail of general fund breaking it into the three components with general operating grants and athletics. So again that's what like what the way we look at our monthly financial statements. So I wanted to
keep our annual statements the same way. Okay. And things like athletics we have money coming in from the grar bids um public school foundation. Is is that still accounted for in an audit like this or is that separate because Okay. because it actually comes in and is spent through us. It's audited as well. Correct.
Thank you question. Anything else? Okay. All right. So, next we have our finance action items and there is the purchasing agenda. Are there any questions specific to the purchasing agenda for this
evening? And then I see Richard has his hand up. So, I'll go this way and then we'll go from there. Uh, for support materials and services item four, so that's the lockout company. Is that a completely grant-f funed item? Is that any of out of our general fund at all?
Um, it's completely the grant, the section 31A. Okay. What is that? What does that grant entail? I'm not It's the um one for school mental health and school security. Yeah. So, when it first started, it was two separate grants and then they merged them off into the 31A.
And that's the one last year where it was drastically cut and then reinstated. So that's right. Okay. Um I feel like I have more questions around this, but they're not necessarily finance related. I just um I Yeah. So
I'll I'll save it for now, but I was just curious to know if that was totally grant funded or if that was coming out of uh general funds. Grant funed. All right. Yep. I have a handful of questions. I did email them and that's what I was gonna say. You did. Okay. Um,
do I ask them or do you want to answer? That's what I was gonna say. I say if you want to go ahead and ask and I've got some colleagues here to the ones that I can't answer. So, great. Thank you. Uh, okay. General fund. Um, just kind of wanting to understand uh how we do we usually
outsource for quite uh for the for the dancing class. Um, the dance instruction at quite we've used PT arts. I had my staff go back and it because I'm like we've used that company for the curriculum and the dance curriculum for a number of years since 2009.
Okay. Wow. Um is when we started using them. So they're very familiar with our curriculum and what we are hoping to accomplish. So thank you. And then the relationship with John Ball Zoo the classes in at the
zoo and then they're also offering additional like curriculum offerings they're doing with some of their programming. So we do lease classroom space in one of their um buildings um and some office space and ancillary space as well. So like um when the kids
have their band they go up to one of the bigger rooms and and things like that. So um so that's um the ongoing lease for that and then this year um after 50ome years they are going to charge us a little bit for programming that the for the staff time that the zoo staff puts
into working with our students. So after 50 years and the charge was there, I thought it was, you know, a pretty reasonable amount that they're asking for. So um just a note on this one is we are still actually negotiating an update
to the contract for it. So this right now is a roll forward of the existing contract, but it I just want to pray, you know, preface that if it comes back later, it's because we've come to a mutual agreement on the lease space and what that might change. So,
so just to make sure I heard you, Miss Cribs, this is the first time that they're um charging us for the curriculum for the programming piece. Yep. Their their staff time. Uh and then um for Panorama
uh just wanting to understand one how the data is made available to staff um how do they access that? for that I'm going to ask to join me and and definitely thank you for the question and so we worked with our
student data systems um our SDS um department and there's nightly uploads and so what happens is um so if staff change or leave um there's uploads and then through their email they get access to the platform. If there's ever
someone that kind of says, "I didn't get it, didn't receive it," we can manually um overwrite it and put their name in as well. And so there's trainings um that are offered um once once um the the data is available in the fall and the spring. What kind of data are we as being
captured from that? And so really think of two big categories. So think of first of of seal surveys um first and then this the first category scholar competency and well-being and then scholar supports and environments and then things around that
you think of positive feelings, challenging feelings, sense of belonging, self efficacy are the first category and then school climate and engagement is the second category. That's very helpful. Were you gonna ask a question about
that? I saw you. Oh, yeah. Unless Are you still talking about Panorama? Feel free. Keep going. Okay, great. Uh, my bond question. Thanks, Mr. Atkins. Uh, bond question. Um, we went from 2 million, this is for number two, C2, we
went from 2 million to 33 million. Um, I think the big my big question around that was the followup of like how does this play into the bigger budget because we approved the budget and now we're that's a big range to go through and so how does that big amount or shift uh
I was going to say I do have Mr. Smart here but I'm going to try it um a little bit. So when we start planning out a bond project we start with okay let's get that construction manager on on board. So that was the initial. Now that we've gone out and done the additional
bids of all the subcontractors and all the rest of it, that's what we're getting. But I'll let Mr. Smart give you a better explanation than my cliffnotes version. Good afternoon everyone. And that was perfect. So the the original uh approved amount was just to retain the
professional services of a construction manager. Once the project is developed and uh uh we go out for bids and uh we receive those numbers then we adjust the CN the con construction manager's uh purchase order to reflect the guarantee
maximum price and that's what this is and um can I share this and just a little side note uh I wanted to uh share because I know uh Trusty Milton um Um there were some things that
initially we thought that we couldn't have. I want to I'm very pleased to say that we got them. We have uh now some uh uh collaboration or flexible uh teaching spaces within the building. Uh and uh and I'm pleased to also say that we are about $2.1
million below budget. Um so and that also includes I'll spend it for you. I'm sure you will. Show me the plans. A and that also includes a a healthy owner control contingency of about three and 3 $3.2
million. Um which if we don't have to use it, it'll come back to the district and we'll be able to do other projects. So that's exciting news. That is very exciting. Thanks, Mr. Smart. Um so I think just kind of going back to the second part of my question.
So we're gonna if we're looking at the full landscape of our budget, so our budget is increasing now by 31,000 $ 31 million because of this particular Yeah. capital projects we don't budget as like in the um when you the board
adopts a budget. We don't have to approve a capital projects budget. Great. That's so we've got general fund, we've got debt, retirement and special revenue funds where you have to adopt one. What Mr. Smart's talking about is, you know, yes, we've got our bond money. We've planned out what our bond projects
are going to be. So, that's the budget he's referring to. So, that's where we'll adjust within that. Um, and each project does get a budget, but as we've gone through some of our other projects right now, we're still trying to work through. So, we I'm
just I know Mrs. Melon, you want to spend the money, but we're just kind of joking. I'm only joking. We all want to spend it. Well, we could spend it somewhere. I just don't quite know where yet. Yeah. And so, uh, as far as like with the bond projects, we get them and they come to us kind of a we we
previously approved this amount for this particular building and then as they actually go through and actually contract the work. That's how it comes back before us. And so, where there may have been an estimate at one point if they're coming in a little higher, it's still within the confines of that
original budget. It's not like it's something totally new. um because they're still in that 35,000 I'm excuse me $35 million that we put out there for this building. And so if it changes from
um third uh 30 million to 31 million, we're still under that 35 million that the board originally approved to build the school for. So that's kind of how it is. I um I hope that makes sense. So, as it comes to us on these bond projects,
remember that these um amounts have already been previously approved by the board for the work to begin. These are just the subcontracting that's taking place or the actual bringing on of the project managers that are already planned for in the budget for that building.
Budgeted, not allowed yet. So, we're allowing it today by voting. Well, to we will not today actually. Yes. Okay, that's helpful. Thank you, everybody. Okay, Liz Milton. Um, yeah, actually it was back about the panorama. Sorry, I didn't know you were moving on. Sorry.
Sorry, Mr. Atkins. Oh, it should be used. So, I'm just wondering a little bit about how we use that data, the panorama data. I know we've had it for a number of years, at least enough years that we know it pretty well. So, how are we using that data on a annual or even more than that
basis? A very good question. And so um one of the examples we can give is we had 39 schools that had what we call PBIS plus teams last year. And so um they used um the data to really inform next steps at
the building level. And and I think that had a a really a a strong um sense of when you look at our overall data um take it off of Panorama, there was a 17.2% 2% reduction in suspensions last year. And we think um it has a direct
connection to um like the have like a sense of belonging and things of that nature that's underlined in in the panorama survey um that's happening really at the building level. So the PBIS plus teams are using that data. Yeah, that's one example of how um I
think building based level teams. We have um a lot of departments and central office that use data um such as panoramas being one kind of one. We triangulate triangulate a lot of data as well to make sure um that you're defining one data source to make
informed decisions. But that's just one measure that we're using. We know if we create an environments when scholars want to be here. Um and also staff too because there's a staff survey as well. You create that environment, they're more likely to succeed. Yeah. I guess I'm wondering specifically
like have budgets been adjusted? Have personnel been adjusted based on that data? any macro things you can, you know, point out. And so it's hard to say from a from a budget perspective. What we can say is we know, um, the data allows you to
determine that what you need to focus on. And so, um, if you're if your culture climate, it gives you kind of distinct numbers. And then we, for example, we have either and then we tie it into either our minors or majors that we we look at data. We look at those
datas together to figure out next steps. Okay. So, um my um next is there because this is an action item. Is there a motion to approve? Excuse me. Is there a motion to approve the purchasing agenda?
Moved support. All in favor, please say I. I. Any oppose? Same sign. All right. this will move forward to the full board. And then um are there any other reports or updates? I just want to give a couple um quick
little updates. Um school aid, there's been really no movement out of Lancing. Um at KSBL last week, the other business managers for the other local districts, we started um talking about what happens if there's not one by September 30th or
if they go into a state shutdown, what that means for us. Um, so one of the things we're looking as is at cash flow as a county and individual school districts. Each one's looking at their own. Fortunately, we have 100% property
tax collection in the summer. So that typically helps us with our cash flow. We're, you know, we've gotten a lot of property tax collections now. But if the state stays shut down for a longer period of time and we don't get like October state aid and if it really drags
on and we don't get November state aid, um we're just, you know, we're going to be monitoring cash flow for the next few months to make sure that we're still okay. Obviously, making payroll is always a priority. Um but we should be fine through at least the end of November. Um, but as a county, we did
ask the ISD to start working with Trun on contacting some local banks um, and potentially like get a pre-approval if one of the districts needs to, including us, needs to go and borrow money to how
could we shorten that process um, going forward. So, I'm hopeful it wouldn't drag on and that we that we'll be fine, but we'd rather have it in ready to go if we need it than to need it and then have to start the process.
Um, excuse me, Miss Crips, there's a question specifically to that issue. Yeah, just with um I mean, I hope folks in the community realize like we are spending fund balance dollars right now until we get state money. Um, and you know, thank you for everyone in your
office monitoring all this. I guess my question is as um we approach that October date, will well I mean actually now until then um will your office be keeping uh the board updated on like where we are financially um in a way
different than you would typically just as we're you know and it's just a a bit of a distinction using fund balance is different than our cash flow. Yeah. So right now with having a lot of summer property tax collections in
we are sitting on a very good cash position right now. Okay. So that's good enough. Okay. So cashwise we're doing good um for the next few months but and that's always been very helpful because state aid you know we our fiscal year started July 1st but we don't get our
first state aid payment until October 20th. Okay. So having that 100% summer tax collection has always been great. Um there are a large number of districts throughout the state that do have to borrow because of that gap in state aid collections. So we've never had to
borrow and I hope to keep it that way but just this is unusual times we're living in and just wanted to be ready in case something that's very help that was different than my understanding. So I appreciate that. Thank you. Anyone else have questions with regards to that? Okay, Miss Griff,
and just one other highlight I wanted to start to preview. Um, our 2016 bonds, we have some of them that will be callable in May. Um, so we have a potential to refund those um because of the interest rates are better than they were back
when we issued them. Um, so we've started having some um conversations with PFM, our financial adviser on bonds, about what that may look like. Um, right now it's trending that if we were able to refund those, it would be about a $5 million savings to our
taxpayers. So, obviously we're going to be pursuing that, watching it. Um, and just I kind of wanted to preview that for you now. Um, if we continue, you know, if and that's how I say hard to predict
times these days. um if everything stays constant, likely we'll need board action in October or November to go ahead and pursue this refunding that would likely take place in February or March. So, just wanted to get it on your radar. Um just knowing that it if we can save our
taxpayers money, we're going to do it. In summary, what is the I'm not actually familiar with bond refunds. So, in summary, like very briefly, what does that look like? What does that mean for It's kind of like refinancing your mortgage. Yep. So interest rates have dropped um and there's a certain time period where
you can't refund them and we've got some that are refundable in um May 1st. Okay. And you can do it within 60 or 90 days before that. So that's we're like okay with interest rates being lower it would be a good time to refund and get our
taxpayers some savings. So we'll be watching that working through what that looks like. Um all right. Thank you. That's good news right there given that we're all taxpayers. So, um, look forward to what that looks like.
Um, anything else? Nope, that's it. Okay, we have no policy. So, um, we'll give you back a few minutes before you go to your 5:30 meeting, colleagues. Good day, Alison.