Jan 10th, 2013
Board of Trustees Work Session
Monday, September 17, 2012
Dale R. Fair Babson Park Elementary
Those Present: Chairwoman Cassandra Denmark, Dr. Terry Fasel, Co-Chair Keith Wadsworth, Betty Wojcik, Cheryl Garnett, Kristine Shollenberger, Pat Cain, Danny Gill
Staff Present: Superintendent Jesse Jackson , Brian Fisher, Kenneth Henson, Anuj Serran, Gail Quam, Damien Moses, Barbara Jones, Jennifer Barrow, Julio Acevedo, Angela Heyward, Frances McMichael, Marie Cherrington-Gray, Donna Dunson
Others Present: Mary Cannady, Phil Attinger
I. CALL TO ORDER Jesse Jackson, Superintendent
The meeting was called to order at 3:47pm.
II. FINANCIAL REPORT Brian Fisher, CFO
A. Audit Presentation: 2011-2012 BKHM, P.A. Tarsha Jacobs, Nancy DiSalvo, Kurt Kuehnhackl
CFO Brian Fisher introduced the auditors. Auditor Nancy DiSalvo addressed the board: Ms. DiSalvo advised she was going to address the Consolidated Audit of the LWCS Inc. and not the Central Office. The LWCS Inc. meets the Federal Program for audit. Communication from the audit is required from the auditors to the Governance Board. We completed the school audits on September 13, 2012.
The audit was unqualified – clean opinions. OMB Circular 113.
No new accounting policies this year. Estimates in the accounting process. Past events – allowance for uncollectible receivables – Federal Program Receivables. Amounts determined fully collectible. Recorded absence estimates received were reasonable. No sensitive disclosures. No difficulties with management. Audit adjustments – CFO Brian Fisher has these, he’ll pass them out and these need to be a permanent part of our records. Additional Controlled Deficiency Report (pg. 4) – Report to the Board – Reconciling Capital Assets. This is for Board use – not to be used by outside parties. Principal Quam asked about compensated absences. Auditor Jacobs advised these were immaterial adjustments. Schedule of Findings (pg. 40) Requirement of Federal Programs – this is the meat of the audit. No non-compliance found; Federal Awards had no deficiencies. This was the first consolidated audit for the LWCS Inc.
#1 Finding: Financial Statement Preparation (Pg. 41)
Company’s Operating Account – bank account reconciliation not being performed timely. Auditors informed – not enough personnel resources in the Finance Department to reconcile the accounts. Trustee Fasel asked – what’s timely? Auditor DiSalvo advised the 15 of the next month.
#2 Finding: Federal Awards – Food Program
Annual applications submitted based on family size and income. Auditors pulled 40 applications and found 5 students with no eligibility documents. The documents could not be provided; no internal audit review process during the year.
CFO Fisher response will include this information. Trustee Wojcik asked if the sampling was a bigger problem or will it be taken care of the 2nd year? CFO Fisher advised we did not perform an internal audit for this year; however we will do it for next year.
Summary of Audit: Assets 11.5M and Liabilities $8M. We purchased buses and also the Central Office staff building which has our net asset at $3.5M. Total Revenues $29M and all schools has $30.9M in expenses. Trustee Cain commented he does not recall any negative numbers throughout the year. I missed a few meetings but he does not recall any negative numbers. CFO Fisher advised – these numbers were part of the adopted budget and revised budget presented during the year. Auditor DiSalvo – Budgeted deficit of $1.6M for the year. Principal Henson: On the Fund Balance you have to run your budget in the negative to access the dollars. Trustee Cain asked if these negative numbers showed up later in the year. CFO Fisher advised – yes, that is correct. Superintendent Jackson: In the current fiscal year we had to hire more teachers because of the increase in enrollment. We had an increase in insurance 16% to 17% due to the relief we got last year.
Disclosure from Bank of the Ozarks – end of the year. Loan covenants not met on the Bok Academy loan.
Covenants not in compliance. CFO Fisher advised he contacted the bank at the end of August to inform the bank and seek the next steps to get this corrected. Debt Service Ratio – minimum 1 to 1.
1. This is negative for the year – informed the bank.
2. Company debt $500,000+ – this was not disclosed to the bank.
3. Capital Asset purchase cannot be more than $500,000. This requires written consent from the bank.
CFO Fisher advised he was made contact with the bank and is in the process of obtaining a waiver from the bank.
Board Chair Denmark asked when was the bank contacted for a waiver?
CFO Fisher: The bank was contacted at the end of August and has not gotten back to us yet. Board Chair Denmark asked: What if we don’t get the waiver? CFO Fisher advised: We would be in default of our loan. Trustee Cain: Are we taking steps to meet the 1 to 1 covenant? CFO Fisher advised – yes we are.
Board Co-Chair Wadsworth thanked the auditors for their work with us.
B. Monthly Financials
CFO Fisher reviewed the monthly financials which were also distributed and discussed at the monthly Financial Committee meeting on Thursday, September 13, 2012.
The Balance Sheet decreased $140,000 and Accounts Payable $146,000. Central office expenditures are running above budget due to transportation repairs; technology equipment at the schools; also the initial expenditure for the floating classroom at Bok Academy. Trustee Fasel inquired if the floating classroom did not come out of the capital expenditures. Per CFO Fisher responded – it did,
however the pre-funding was needed to get the project started. Co-Chair Wadsworth asked if this was anticipated? CFO Fisher responded – yes because we had to take care of the insurance premium and binder payments. The funds were allocated but not reimbursed back to us yet. This also included Pre-K, K-Support, and B St.
Food Service: With 9 days of school so far, we see the Summer Program had a deficit in the numbers. Principal Henson advised the June/July deficit was about $4,000. We will do the food service community wide to avoid a deficit next year.
Superintendent Jackson: We anticipated the need due to the number of students on free/reduced meals. We have to ensure we take care of these students during the summer. Principal Henson: No food service complaints so far this year. Superintendent Jackson: There has been a visible difference with the food on site. Principal Henson: LWHS in the past has peaked at 450-500 meals. For this year they have peaked at 750 meals. They are opening a 2nd line at LWHS. Food service applications are still being completed. Superintendent Jackson: This is a monumental task and the schools are still working on this.
C. Personnel Changes
CFO Fisher distributed the personnel changes which had been discussed at the September 13, 2012 Finance Committee Meeting. Co-Chair Wadsworth asked about a new hire in the Finance area. CFO Fisher advised we have budgeted for this however the position has not been filled yet.
III. ATTORNEY’S REPORT Robin Gibson, General Counsel
A. Litigation Update
Nothing much on the legal front. General Counsel Gibson: Now that the audit is completed we will be able to compare our Federal Programs before we became our own LEA and after we became our own LEA. Now we will really to make comparisons.
IV. SUPERINTENDENT’S REPORT Jesse Jackson, Superintendent
A. MINUTES: August 20, 2012 BOARD OF TRUSTEES WORK SESSION AND MEETING MINUTES
Presented for review and approval at the September 17, 2012 Board of Trustees Meeting.
B. SES CONTRACT
Presented for review and approval at the September 17, 2012 Board of Trustees Meeting. Program Specialist Angela Heyward explained the SES (Supplemental Educational Services) to the Trustee Board. These services are provided for the students who has a Level I/II on Reading or Math on the FCAT. State Statutes advises what we’ll do as a provider for the students. $1,047 per student is the one time payout from the state – we do not attain any additional funds. We have 21 approved Providers. We are one of the provider (LWCS).
Chair Denmark asked if General Counsel Gibson reviewed and approved the SES Contract? General Counsel Gibson has reviewed and approved. Trustee Wojcik asked – does the LWCS receive money from the state? Program Specialist
Heyward explained…the Provider of choice which is chosen by the parent receives the $1,047 from the state per student.
C. MIGRANT PROGRAM – CELL PHONE APPROVAL
Presented for review and approval at the September 17, 2012 Board of Trustees Meeting.
Migrant Coordinator Julio Acevedo addressed the Trustee Board to explain the Migrant Program: This program assists students/families with high mobility that are in the citrus and agriculture industry. Julio meets with the students to determine if their family qualifies for this program. If they qualify they receive funding for 3 years. Superintendent Jackson: How many students did we start with? Julio responded – we started last year with 60 and we ended the year with 101. This is the beginning of the new school year and we started this year with 70 students. He assists with providing opportunities for tutoring, health and medical needs. He visits the families at labor camps, worksites, and at the schools.
If these students has a qualifying move we get the funding to assist the student/s. Julio further explained how he uses the M6 – National Data Base which synchronize with Genesis which assists with finding the families and student information. Interim Principal Barrow advised this is a lot of work and we get a smaller dollar amount from the state. Julio works very well with these students. Principal Quam advised: Julio has been a great advocate for the students. Superintendent Jackson: We will see these students when the tests scores comes out. We need to do as much as we can to assist them. Julio uses the cell phone to communicate with the students. The state has requested we obtain approval for the use of the cell phone for the Migrant Program.
D. PRINCIPALS’ UPDATES
Principal Kenneth Henson – Dale R. Fair Babson Park Elementary
All Pro Dads – tomorrow at 6:00pm. Bring your Parent to School Day – parents get the opportunity to do the same work as the students. Family Picnic Day – October 19th. Fall Carnival – October 20th. New I-Phone App for Babson Park Elementary is up and running and at your fingerprints.
Principal Donna Dunson – Lake Wales High School
Enrollment is now at 1299. No fights so far this year, the kids are awesome. IB Recruitment started earlier this year. The Highlander Farms has implemented a two year plan – they will then begin to sell at the Farmer’s Market. We are in the process of hiring 6 college students to be academic coaches to work with the high school students in math. Superintendent Jackson asked Principal Dunson how she was going to fund the math coaches; she advised it would be funded by private donors.
Principal Barbara Jones – Janie Howard Wilson Elementary
Enrollment is now 533 (43 more than last year). Data Day – Students of Promise – Discussed strengths and weaknesses; formed articulation groups; discussed expectations etc. We had guest artist last Friday discussing art with the 4th and 5th graders – Mrs. Windham was the donor that purchased the first piece of art for the school and we really appreciate her donation. We are also focused on STEM.
Principal Gail Quam –Polk Avenue Elementary
Dr. Culyar – proud of her school’s progress. Orally the students are doing great; they need to work on the comprehension portion. New staff is doing great. Leadership Growth has improved – last year we had 60 and this year Leadership has grown to 175 that will be participating. The Episcopal Church donated 20 backpacks for the students and we are very grateful. October 13th – Family Work Day. October 25th – Leadership Day.
Interim Principal Jennifer Barrow – Hillcrest Elementary
Day to Day was today. Our instructional Plan was a part of the walk through form. Teachers had great comraderie. Our Open House went well – Mr. Jackson stopped by. Principal Moses also attended and advised it was well attended, folks were standing outside. Science Family Night and Success Night is coming up. Etiquette training for all 5th graders during all lunch periods. Catillion is planned for the end of the year – Interim AP S. Padgett is in charge of this project. Would like to thank First Baptist for their assistance in tutoring Hillcrest students. Turkey Football Jamboree in November at Legion Field.
Principal Damien Moses – Bok Academy
Data Day at Bok was today – Angela & Gary visited our school. Mr. Jack Hollis representing the Defender’s of Crooked Lake stopped by the school last week with a $10,000 donation towards the floating classroom. We are very grateful to Jack and the Defenders of Crooked Lake. Mr. Robbie Cunningham (boat builder) is advising the boat will be ready in about two weeks or so. The Floating Classroom will be presented at the FL Charter Schools Conference. Our Saturday Night Football game had over 500 people at the game. The next game is Saturday at 6:00pm. We now have the Girls Scout STEM Program – we are the first to do this; we have about 75 girls participating once a week on Friday’s. Ropes Course / Zip Line – still 9:00am daily. This week the ARMY JROTC Nelson Castillo will be visiting our school. They have an excellent online program that prepares the students for the ACT and SAT. They also assisted Ridge Community and their scores have been pretty high. Trustee Fasel asked about Bok’s current enrollment number. Principal Moses advised the current enrollment is 555 and we continue to pull from our 250 waiting list.
E. NEXT M EETING DATES
The October Board Work Session and Board Meeting will be October 15, 2012 at Janie Howard Wilson Elementary. The Work Session will begin at 3:30 PM and the Board Meeting will begin at 5:00 PM or immediately following the Work Session.
V. OTHER BUSINESS FOR THE GOOD OF THE CAUSE
Meeting adjourned at 5:32pm.
Marie Cherrington-Gray, Corporate Secretary
Approved: Oct. 15, 2012