K. I will now call the special meeting of the History Park Board of Education to order on this October 30 at 05:30PM. Roll call, please. Becker? Here. Fortress? Crescent Fox? Yes. LaFondlewood? Here. Entertain? Here. Approval of the agenda. Motion to approve the agenda. I make a motion to approve the agenda as written. Second. Any discussion? Okay. Hearing no discussion, roll call. Borges? Yes. Becker? Yes. Fox? Yes. Laframblex? Yes. Yes. Motion carries. Public comments, 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. Amber? Hello. My name is David Hubbard. I was the audit partner and the audit partner in the audit this year. If you can roll to the next, to the next slide, please. He's gonna give you the We issued a modified opinion on our statement. We we audit and we re ended 06/30/2025 for the school district.
Our responsibility is to ex express an opinion on the financial statement that they are not materially misstated, and that's what we did. We are required to communicate, various items to you as part of the audit at the conclusion. So that's what we're gonna go through today, right here. And we've also issued that in a separate letter to the district as well, or to the board. The required communications, we go through, the accounting policies. So management is responsible for the selection of the, 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, 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, net pension and OPEB liabilities, and our depreciation and amortization expense. As part of our auto audit procedures, we evaluated the reasonableness of those estimates and found no issues with them at all. We did have a few, proposed entries.
We only had two that related, to some state aid and some reverse, reversing the pay pay accrual that we had to 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're 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.
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. Difficulties encountered dealing with management. They've been great. Thank you to to Crystal and Monica for getting us through the audit and getting it completed. Everyone was great, and we were able to get it done on time this year. So that was great. We'll now go through, some of the just highlights. Really gonna focus in on the general fund. So you can see here, this compares compares last year to this year. So we'll go over some high level, significant fluctuations that we had.
So cash was up this year. About 6,000,000 from the prior year. Really just kind of relates to timing and and our payments and whatnot. We did have to pay the $3,100,000 loan after year end. So that's also why we had some extra cash sitting in there. Our accounts receivable was pretty comparable year over year. And again, due 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 $3,100,000 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. It was just broken out as a It was netted. This year, we broke it out for a little bit different presentation. Accrued 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 1,600,000.0 related to the, the bus grant that we have that's sitting out there still. Our deferred inflows of resources are made up of our unavailable revenues related to grants. So this is basically revenue that we received outside of the sixty days.
So on our funds level, it's considered unavailable revenues. So it's reported like that. Question. What what about the bus grant? Just there's a there's a unearned revenue in that $2,500,000. 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 1,600,000.0 sitting there. Fund balance. So our unrestricted fund balance is up from the prior year. You know, we had 9,000,000 or 900,000 in total.
Fund balance this year is 1,200,000.0. So we did increase that, which is good. Our general fund revenues, you can kinda see just a comparison of where the revenues came from between local, state, federal, and our inter district sources, year over year. Again, pretty comparable over overall both of the years. But this just kind of shows you that breakout between the different pieces year over year. Our general fund expenditures, these also just kind of shows it based off of the different, buckets for instruction, support services, athletics, community service, debt service, payments to the sub
guarantee, 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, we just had a lot more in the prior year. Cost cutting, took place this year. As part of the required communications, we are to, look at the effectiveness of our internal controls in regards to the financial statements and the internal controls surrounding that. So part of that, we look at There's different categories of finding. We have our material weakness and we have our significant deficiencies.
Material weakness is really just a combination of deficiencies in internal control, whereas significant significant deficiency is maybe just one when it's less severe. This year, we did have a material weakness, which is related to the books and records for the for this fiscal year, including bank reconciliations were not reconciled timely, just for call resulting in some mere material adjustments throughout the course of the audit. But again, we made we made the audit. We made the deadline. So again, good good work to the team. Does anyone have any questions on anything that we kinda went through?
Or any any questions you have on the statements that you have in front of you? Anybody have questions? Nobody? I I can't hear you. Now are you going over more? This is 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, because that's here. Mhmm. Fabulous that we added to our fund balance because that Yeah. Was a huge concern of mine. Mhmm. I wanted to know I wish I knew what page it was on, because is
this the right page? What is it in regards to? Like, I can't Yep. I can't get this right page. So we we overspend $5,000,000. What What do you look what page are you looking at? Budget to the actual comparison for the gentleman, maybe? I maybe. Okay. Do you want me to pop over there? Can I come over there and see if you can? Okay. I don't even know if I'm looking at the right page. Okay. But, so and 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 font to another of of sources. So you're just kinda moving sources from one one fund to So if we have a huge amount in community funds that we didn't use there, we put it in our general fund. Is that I don't know the specifics. I just want to make sure that you're not gonna speak a little I'm just seeing 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 overspend by a million, so that's where we
made up the million and a half to give us the greater than dollars. Yes. And, 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. On the 7%. Okay. That I just wanted to make sure I understood it correctly. Okay. I don't think that one's okay. Anything else? So just so I'm fair, we're only adding 247,000 to our fund balance. Correct?
I believe that sounds right. You're looking above the general fund? Yeah. P 47. Mhmm. So your change in your fund balance that's at the time, you can see it on the, the combined statement 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. K. 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 fairly close Mhmm. To the actual and say, okay, why is there $1,500,000 off? Generally speaking, you know, we will do general increase if it is a significant number based on our materiality levels. But, I mean, I think if you're looking if you're 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, you know, our our general revenues, I think, were down.
Our expenses were down, I believe, as well. 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. It's not we'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 kinda 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. I think that is a is a recommendation and a goal. Right? You're you're striving to accurately budget for the year. I think our budget looks a lot better than it did last year, the fund the findings and where we ended up. But I think that is a goal and and and something that can be approved upon, you know, through the next year. I'd like to speak to that too, but we need to remember, and I the community need to remember that our business department did not receive Jason's services sheets and
funds to go on where things were making up until the May timeline. So making some adjustments is gonna 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, and try to get it ready. I really believe that we're gonna have a whole different situation this year.
Well, I sure hope so. But my again, my concern is then, what was the delay in getting them that information? You guys had a 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? Well, if there was a deficiency I'm not sure how we can look into it. The Word of Education did a investigation and the attorney from took the computer. What I'm saying is they should be those kind of should be shared on a locked It was. Drive. I have it. There 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, because right now, we're emailing back and forth different versions of files, and it's just a recipe for disaster. So we are trying to get to a shared, drive for that. In addition, it also has to do with the processes as we're, refining, you know, the procedures and how we obtain this report and, get this information whether it's to
the auditors or internal. Because a lot of that stuff wasn't documented either. So that also, unfortunately, imposed a little bit on how you would get the information as 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, whatnot versus somebody that company, you know, fairly fresh and still getting acclimated to the system and whatnot. Kinda pulled that up too. So we are in the midst of as we're going through, like, hey. Go to a, b, c, d, get c. I also believe 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 gonna 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. Mhmm. It talks about, the school district should implement various IT environmental controls Mhmm. Yep. Which is including, data is not transferred and stored up-site, repair a formal disaster recovery plan that identifies critical processes.
So Yes. So we do a high level, IT assessment. We have an IT firm that actually recurring, recommendations that we had last year from our initial assessments that we did. So, yes, those recommendations were there. I so recommendation regarding or a finding regarding the issue of Jason's computer and that stuff, that was not for the auditor or anything. Right. No. I'm just Just wanna be there. I'm just thinking going forward. Yeah. Absolutely. So, you know For sure. And I just wanna confirm those aren't material weaknesses or findings.
Those are just recommendations. No. I I understand that. High level of work. I understand that's not it. And and you have to remember me working in the IT department. The mail is backed up with Google, self sufficient. So we don't have any need to back that up. The, finance system, 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, that is I'm most certainly backed up not
only in their premise, but off-site somewhere. The only thing oh, and then all of the testing programs and all the stuff that doctor Dilmidge 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 because you're talking, you know, thousands of millions of dollars that to set that up. But the only thing that I'm concerned about 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. 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. So I was gonna say 2324, the auditors recommended that, well, materials couldn't get to them in time. Now 2425, materials couldn't get to them in time. And so 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've got enough material to be able to do what you did. Mhmm. But there's still more findings possibly out there with the computer not being, available.
I don't think there's more. From our perspective, yes. As a general recommendation, 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, we pushed the field work back probably five times. Right? So we didn't issue this report until the January. This year, yes. The state of Michigan recommends that our bank statements or bank reconciliations are prepared timely,
which is, I think, with I think it's thirty days after your, year end. In addition to that, you know, we there were schedules that we didn't receive on the first day of field work. Right? But it was a totally different magnitude of of of the 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 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 all your schedules.
Right? That's that's what we need. You know, we can't have a bunch of journal entries 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 on time, I think, really does truly speak to the effort. Because I believe she I don't remember the exact timing, but I think, you know, you came in in the spring of 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 have the files, that's a whole other, 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 build work, then it's a different story. So that's how that would eventually go away. And I think 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, position. So that that was the recommendation of Terry again, that we add another person to help make sure that those accounts are reconciled in a timely manner. So Mhmm. 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. 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 thirty days to issue the single audit to the financial statements. So I want you aware that we did do most of majority of the work. I wanna say we're like 80% there. So, my goal is to over the next week, week or two, we wrap everything up with that. And then as soon as that compliance template comes out, we're just gonna make sure that there's no changes or significant items with the the the new the final version, and then we'll be able to issue that. So we do have once it's finally issued, we have thirty 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 to make it clear, this does not mean you do not submit all the other ones. Yes. Yes. So this is So we go ahead. 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 board packet after this meeting. K. All good? Alright. Thanks, Amber. Perfect. Thank you, Jennifer. I'm not here. Okay. Oh, we need the motion to approve the audit.
But I'm just thanking you and Okay. I need a motion to approve the audit. I make a motion to approve the audit. Support. Motion by Heidi and support by Nate to approve the audit. Any more any other discussion? Alright. Roll call, please. Yes. Becker? Yes. Fox? Yes. Reprovets? Yes. Yes. Yes. Motion carries. Thank you again. Thank you. Have a good night. Thank you. Okay. So next we have President, can I, ask if we can make another motion to, ask the board to direct the, district to, do the cybersecurity 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 an unusual idea. Okay. Well, I will Do mister Patterson, could she make the motion to do the IT backup and, cybersecurity? It should be going to stop ahead of time. Because we approved this agenda already. Correct. Okay. Can that be on the next agenda on May November 17? 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 If it was an 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 of 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. The risk assessment is the audit. You can get Yeah. And I'd like to bring that to you. And then I believe that something was purchased.
I just wanna make sure before we ask for something else to be purchased, and we'll bring that information to you at the Committee of the Whole and then for what you'd like to move forward. So we'll discuss it there and then what we would like to move forward to the, because I believe there's various ways we can do a cyber, assessment. And as a matter of fact, we do some of those, and I'd like to get different organizations and those costs too. Thank you. Also with the cloud based storage. Yeah. We have I I believe, 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 net cloud.
Just on the agenda to discuss it. Committee of the homeless and I. Thank you. Okay. Budget. Okay. My turn. Alright. Let me flip that. Okay. So just a couple notes about budget before we get, into the details. It's important to remember that this budget represents our spending projections based on what is known as of right now. 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. While the 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 to deliver it or we don't know the exact impact to us yet. So we've only put in known changes in this amendment. There's still a lot of uncertainty with the federal budget since, federal government's on shutdown. We don't expect that to have significant changes on our budget, but it is still an unknown. Also the budget amendment does not represent our actual fall student counts.
They're still working on getting that number. So, hopefully then we'll see a pickup with that in our next amendment but, that's not been updated. So, some some summary items, based on revenues. The foundation allowance increased from $6,908 per pupil to $10,050. Can I can I get you just to correct that verbally again? I just think there was a flip of the 9 and the 6. 9,608. You said 6,000. Oh. Yeah. Okay. I was like, okay.
That That was a big jump. You guys have not received that PowerPoint. It'll be ported it was just completed. Okay. So with the correct numbers, we received $442 increase per pupil. Using our blended state aid enrollment that was on our October state aid note, with the per pupil increase, that amounts to $1,280,000 increase. And then this just talks a little bit about the FTEs that we use, which came again from the state aid report. Some state categoricals that were eliminated were, totaled about a million dollars and that was
two of the MPSR's lines. There were MPSR's adjustments on other categorical lines, but some of them have an offset or we don't know exactly what the adjustment will be. So, we've just adjusted for these at this time. Categorical increases, we didn't expect to see increases on state aid. There was a 25% increase in the '31 a at risk funding. We increased our budget by, the 25%. I don't know that everybody's gonna get an across the board 25% increase, but we've
made that assumption. The federal funding, we've, left in the title grants and idea. We think that those will continue. And then ESSER, we had a lot of ESSER money over the last couple of 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, Robert Stone Revenue? What was the pupil count that was used? You said you didn't change it. So yeah. It's 2,905.75. So they that came from the state aid report.
So I don't know if that's it's probably not really the fall count, but I don't know exactly what time period that That's that's 10% of the, last winter and last fall. Right? That or the It's 10% of by the way. Yeah. I'm I'm 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'll make an adjustment financial adjustment for us. But we will also share this presentation that has that FTE for you.
This is just a a chart showing the change in foundation allowance. So, the last two years, it was 9,608. And so we see that that increase for this year. This is our enrollment trends, and I don't have anything in for '26 because we don't have those numbers yet. So, we'll get you that updated once we have those numbers. Okay. So now into the fund. Revenue, we really looked at everything. We looked at taxes, grants, local or state funding.
We had a little bit of carryover grant funding and, I believe Amber spoke a little bit about that. One of our our pleasant surprises, the state increased, the foundation allowance from NBCA to match our foundation allowance. So they also had budgeted to have 400 more pupils this year. But we get 3% of their state aid funding. So when they they got their increase in foundation, that was a a a little
bump for us as well. And that's reflective in this? Yes. Okay. Yep. Overall, there's not as much of a change as I was hoping to see in our revenues, but we took out a million dollars from MPSR's categoricals. But we had a few things that carried over from 2425 that we've included. So our budget increased the revenue by 532,000. 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, one of the pieces for that was our community center grant. 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 get the revenue that matched with that within the sixty day period. So in this year, we'll have that revenue, but we have no expenses associated with
it. Say there is a small amount of old, reimbursement we were able to get from the, DFC grant, but that will show in this year. And then the center program, we had to leave the 7% fund balance, and this is a little bit more than 7%, but we'll be able to transfer all of that into general fund this year. So while we were hoping we would have ended with a 1,900,000.0 fund balance, 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 three items that carried over, that puts us at about 2 and a half million. This is just a chart showing our our fund balance, 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, 1,000,030. Is that what you were just explaining? Yes. We'll get back to where we see that number again.
Okay. Mhmm. Monica, do you can you send this to us? Can you email this to us? Like I said earlier, we will get that to you and then also post it for the community. The this presentation here? Yes. We did not it was just finished, 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 in putting this together. But we'll get we'll just make sure everybody gets that. Okay. With the expenses, so we reviewed all the employee positions, in the district and took
actual incurred costs to date and added in projected remaining costs, which included the fringes. Added new hires were, taken into consideration including the, new accounting position. Review. We also review current contracts liability for liability insurance, workers comp, copier than other known contract changes, which some of that was was already talked about in previous meetings and then and the, proposed budget, I believe as well. So as you can see in the original proposed budget of 2526, we, estimated a
negative 2, million, deficit. Again, as we explained in previous meeting, he said that was just essentially a rollover budget. With all the, estimated changes that we've had now, estimated expenses, We are looking at expenses at 2.2 or I'm sorry, estimated fund balance of 2.2, which is about 3.84%. Again, this is not, reflective of all revenues that, we could potentially get this year. And, of course, you know, through the regular budget updates in the amendment, we get
more information as it as it comes. As Monica had already stated that, you know, it's important to remember that the budget budget represents, you know, spending projections, and based off of what's known right now. And again, as I've said and Monica has said, while state funding has been decided, specific impacts of some funding changes are still known to the district and to others. Federal funding is still up in the air bringing uncertainty and, fatality to the budget. So as, we continue, we'll be more diligent than ever in what we are spending,
whether it's, you know, cost and supplies and, as you guys know, the, cuts that we've already made that was, you know, try to do the furthest from children. And as we continue to look over that class sizes and whatnot and see what else we can cut, that's what the reason, you know, we'll continue to, make those, recommendations or evaluate. Again, we'll monitor grant expenditures to ensure dollars committed are expended and reimbursed timely. So within the actual fiscal year and not, the following fiscal year. So that way it can be recognized in the current, correct year.
And then, any consideration should be given before making large, unbudgeted purchases as negotiations with all union groups since the beginning. And that's also we also and I'm sorry. I didn't say this beforehand. We also did take into consideration, the percentage rates in our expenses for the, secretaries and the GSRP associated our teachers. And we just projected it as 3% increase. So and you of course, those changes will be made once we actually go through the full negotiations and come to, an agreement with the contract.
Do you have any questions? Questions? I do. I'm looking over this and the transfers in have increased by a million dollars. Where is that coming from? A majority of that will be the 722, I think it was, of the money coming from, the special ed fund. Was that on one of those slides that you showed? It was. It was really hard to see those slides. Yeah. I'm sorry. It was here a couple of minutes. Oh, wait.
Yeah. I passed that. It's right there. I can't zoom in. But, $722,859. Okay. And the 400 is that 400,000? Yeah. 460. The community school grant Mhmm. 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. Right. Which is this budget we're talking about. Correct. You're talking about the community center? Yes. Grant? Yes. Yes. So if you take that, that the $7.20
is it 22 and the 400, that's your, difference, right? So high compared to what the original budget was. More questions? Debbie? Of course. I have a question. Go ahead, Audrey. I'm sorry. Yeah. What is the decrease in other? What is what does that consist of? Because that's almost a million dollars too. What are we what are we cutting there that makes up that million dollars? I know one piece was, $300 transfer to the debt funds, that we don't have
that, budgeted this year. 300? 300,000 is roughly. So that's my question. I I don't remember offhand what the other difference was. So we could look into that and get back to you. Yeah. When you email if you had time tomorrow morning, we could email those. That'd be great. Thank you. My question is that we're not gonna have any debt service in rebar or money? No. That's our for our bond payments, and, I think we were just short on collections. It's 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? That is something that we're working with my left in in order to transfer the funds in and out. As we start making those transfers, we'll be able to give you, interest on the I think they're both. They're tied to expense. The interest expense for the student. I'm so sorry. What was the other That was already accounted for. But I think she's saying which line would that be in. I think I no. I believe it is other. I will get back to you.
You're built to do that. Yeah. My question. It 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 budget back to a negative 300. And then, the amendment shows so right now, we have 1,000,240? Yes. That was from the audit, what our, ending fund balance was for '25.
Okay. And you're expecting 2,000,270 by the '26? Yes. 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 on what those are as well. So currently, we have 1,240,000 in the fund balance currently. Correct? Correct. Okay. I just wanna be clear because As of June period. I'm pretty As of June period. Yes. But we have more than that in our fund balance right now. That's where we're going to be. Written and what's presented, and this is what goes on the transparency page.
Correct? Correct. Okay. Mhmm. 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 do a budget amendment so we would have some actual ending numbers from '24, '25. Once we file the bid, they will see and they'll get notice of our, budget amendment. So they'll see that, and then they will reach out. We should probably be back in the, just at risk monitoring.
With treasury. With treasury. And we had talked with both treasury and the state regarding that, which is why I believe I sent you long emails in my to kind of explain that that's why nothing we wouldn't do that until this is done if they were good with it. We now have thirty days to respond. I have a question. So just so I'm clear, you're gonna submit the audit to the fifth whatever then. Today or tomorrow or whatever. What's the timeline for you? Due by the third. So, technically, it's November 1, but since it falls on Saturday, it's by the third. So and that's already something that it's been working on.
It's just a few other corrections. Right. So that's what we voted on tonight. Right? That you're gonna send it? Yeah. We couldn't submit it without the auto being approved. Right. And then also, on top of that, you're gonna submit the amended budget to them also. So those two pieces are important to send to them by November then. If you approve the amended budget. If yeah. If we do. Yes. 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 is it going to both, or is it going to Treasury and they submit it to MDE?
Yes. We're gonna be doing all of the above. We have to reach out to treasury, once we do that, but also the internal systems will work and then also MDE. So it all kinda works within itself. We will, 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 out. And I just have one more question. So the sheets that we, received, the 1.8
increase I'm gonna I'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 sorry. Yes. Cuts that Of the cuts that we were making. We got Is that for the 2425 school year, or is it for the 2526 school year? 2526. '25.
Yeah. You, the the Board of Education did not do any cuts before June. People held strong and filled positions, but there were not, 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. All of those cuts whereas we presented you the first budget for the 2526 school year. We we have additional pieces that we can do. We just need to have a conver larger conversation. There's some positions that, you know, as things happen, we may not fill, but there's
also some classrooms that you've asked for me to bring you the class sizes, which we'll talk about in the tenth, that are, this these cuts have not gone without impact to individuals throughout the district. Can I ask my question now? Oh, I'm sorry. I thought that was That's okay. The so the 34,000,000 for the basic or the total instruction from the original budget down to the 32,000,000 is a decrease of about 1,900,000.0. 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 the items that directly impact students. Correct? Not good. No. It would have been in the can you say what lines you're looking at again? Because, you know, the t The first two lines. The first two lines. Basic programs and added needs? Yes. So basic programs dropped by two by 2,000,000.
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. We had several classrooms budgeted, many classrooms budgeted such as, we didn't have enough for three kindergartners at United Oaks. We didn't have enough for three classrooms, I think it was at United Oaks for first grade, but we 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, items that are in there as well. We can look at that closer and get, some specific things that changed in there.
Yeah. Beyond beyond what what we knew of. I would just remind everyone this is a work in progress and, we believe and have believed that sometimes salaries were duplicated throughout and so this has continued 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. Alright. All set. No more questions? Motion to, approve the amended number, budget number one. I I'm with 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. Please. The progress? Yes. Fortress? Yes. Becker? Yes. Parks? Yes. 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. Oh, there you go. State your name and address. You Please. 992 East Canyon, New York, Washington, Florida. Yeah. So I'm just gonna continue with my conversation.
It's neat to see the, you know, the audits come back. I think one of the things I was most interested in learning is how can we keep spending five hundred, you know, what is it, 500 ks in interest on the twelve 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 know, we should be not in this situation.
I don't know how anything could be. I'm so closely involved. Since '5 11/07/2019, I've received communication from the Hazel Park School District's attorney work product from Clark Hill. And, it says such that Jason Zernes testified that all of his, books were, up to date, and there is no any, you know, budget, like, that wasn't correct.
So I don't know. Was it my alerting you guys to to monitor 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 Moran, in this correspondence letter. I so I have a that's a discrepancy and it's incongruent. How do you just, like, not know I'm gonna follow-up on it? I mean, of course. So the the sum and 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 Moran 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, the superintendent.
I I hear congratulations are in order. There could be an engagement, with their children, which I understand is just recently hired by HR to possibly be here working in our district. And that seems that I'd like you to please investigate that that for an ethics breach because I think doctor Kruby is profiting from her organizational fraud. Time's up.
Thank you. Thank you. Okay. Board member and administration comments. I I'll go first. Okay. I wanna thank you, the whole business office, for working so hard. And, you can obviously, since our budget and audit is on time, it shows all the efforts 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. Yeah. I wanna echo that. I really appreciate the work that you guys are putting in. I know it's a lot, and, hopefully, we can get that person hired quickly to
help alleviate some of this stuff because, you know, clearly, that is necessary. Also, football team playoffs, excited about that. The play It's, going on right now, I believe. We're coming up soon and Saturday. So good to see everyone, moving forward and and having a good school year. Anyone else? Just like to add thank you ladies for all your hard work and dedication to get this done. On time, I know you are here a lot and it's greatly appreciated.
Thank you. Thank you. Can I see one more thing? I'm sorry. I just have to say I, at in terms of the day, 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 of them are 500 pages. Sorry. Just wanna say I'd rather appreciate that too because that was a lot. Sit. And I'd like to yeah. Go ahead. And the band. The band is gonna be at, Fort Field, Saturday. Yeah. I I do like to, if I may respond, I wanna declare to the public
since it's allowed to mention my daughter that my daughter is 18 years old. She's a singer ex 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. Mister Cox? Nothing. Are you good? I'm good. I'm good too. Next meeting is the tenth at 05:30. I thank you ladies. I didn't mean to overlook you. You are you are awesome. That's I'm a good person.
Awesome. Thank you. Thank you. I make a motion to adjourn. Support. All in favor? Aye. Aye.