Augusta Public Schools

Finance Committee Minutes

January 9, 2012 at 6:30 p.m.

Superintendent’s Conference Room

Committee Members Present: Chair Jane Dennison

Member – Kimberly Martin

Board Members Present: Nancy Bernier, Susan Campbell, Willie Emerson, Betty Jo Libby, Larry Ringrose, Debi Towle and Katie Vose

Administrators Present: Dr. Cornelia Brown, Superintendent

Karla Miller, Business Manager

Scott Phair, CATC Director

Sarah Platt, Director of School Nutrition

John Pucciarelli, Director of Buildings and Grounds

1.  Audit Presentation

Mr. Hank Farrah of Runyon Kersteen Ouellette provided an overview of the FY 2011 School Audit report and management letter to the committee. Mr. Farrah highlighted the school’s accounting system deficiency and noted that the school began reconciling with the City’s accounting system in March, 2011 and that the school is in the process of converting the accounting software system from Tyler Technologies ADS System to Tyler Technologies Munis software system as a department of the city. Mr. Farrah discussed that testing during the audit found excess cash in Federal Funds; this finding will go away as the State has implemented a “Reimbursement System” for Federal Funds. Other testing findings included missing backup and/or proper approval for activity funds, credit cards and petty cash accounts expenditures. Steps have been made to correct these findings. Mr. Farrah discussed graphs on the general fund balance sheet and revenues and expenditures.

2.  School Nutrition Catering

Mrs. Miller informed the committee that when she began invoicing for catering events during the absence of a School Nutrition director, she noticed that the invoices included a 50% profit margin. After a conversation with Dr. Brown the profit margin was reduced to 20%. Once there is a clearer picture of nutrition finances in conjunction with staffing at 100%, the profit margin may be adjusted.

Questions were asked of Mrs. Platt on the congestion at the high school with the opening of the additional food window. Mrs. Platt responded that the new setup is working well; they are offering salad options as well as pre-made sandwich options at the window. Also noted by committee members were that the expanded hours of the cafeteria are working out well for the Middle School students. Mr. Anastasio will check into the implementation of a snack opportunity for the Middle School students.

3.  Safety Committee – Workers’ Compensation Modification Rate

Mrs. Miller reported to the committee that the workers’ compensation modification rate for 2012 is 1.45% with an increase of approximately $12,000.

4.  CATC Cooperative Agreement – Funding Formula

CTE funding conversations are being held around the State. Mrs. Miller had conversations with Maine DOE. There may be legislation concerning CTE funding. The bill would be to regulate how tuition changes from State allocation and tuition revenue to just State allocation. If a bill is passed this session, the transition could begin next year. Mrs. Miller’s proposal is that for this year and next year all tuition is assessment based for MDOE reporting, then the following year, it would be all State allocation to Augusta School Department. Mr. Phair described this as an opportunity for all students to be able to attend CATC and to fill up the classrooms. Questions asked included, “is this a revenue maker for Augusta?” and Mrs. Campbell responded that it was not, it would increase student participation. Also asked was what if CTE funding were cut and the response was that we would need to cut programs.

CATC Funding will be continued to the next Finance Agenda of February 6th.

5.  Update:

·  Chelsea Tuition Contract – Mrs. Miller informed the committee of her conversation with Mr. Potter, Superintendent of RSU 12, and that his district is formulating a way to have equity among the tuition students of the different towns in RSU 12. Mrs. Campbell shared that Augusta should offer a contract for other towns as well as Chelsea.

·  Revolution Energy – Revolution Energy is a green company that has an RFP from the city. At the next finance meeting they will present two projects to the committee on boilers at the Cony/CATC campus and Solar Hot Air on the CATC building.

6.  Financial Statements

Financial Statements Attached

7.  The committee adjourned at 7:44 p.m.