FINANCIAL POLICIES AND PROCEDURES COMMITTEE MINUTES
June 22, 2012
Meeting held:
Jefferson County Education Center; Basil T Knight Center, Mesa 51 School District; Swink 33 School District; Centennial BOCES, Greeley; San Luis Valley BOCES, Alamosa
Members Present
Marita Vogrin, Academy 20 Denise Pearson, Kiowa C-2
Phil Onofrio, Eagle County Re-50 Dave Montoya, Poudre R1
Kathleen Askelson, Jefferson County R-1 Bill Sutter, Boulder Valley RE-2
Brad Arnold, Cherry Creek 5 Steven Clawson, Denver 1
Kim Krause, Akron R-1 Terry Buswell, Centennial BOCES
Diane Raine, Mesa County Valley 51 Dale Mellor, Steamboat Springs RE-2
Terry Kimber, Delta 50J Karin Slater, Montrose County Re-1J
Mike Thomas, Fowler R4J Velva Addington, Swink 33
Karen Andrews, Dolores Re-4A Melissa Brunner, Montezuma-Cortez Re-1J
Amy Lyons, Bayfield 10JT-R Paula Sublett, San Juan BOCES
Ex-Officio Members Present
Leanne Emm, CDE Wendi Chapin, CDE
Terry Christensen, CDE Kirk Weber, CDE
Adam Williams, CDE Kathleen Sullivan, CASB
Crystal Dorsey, State Auditor’s Office Wendy Swanhorst, CSCPA
Alternates Present
Jane Schein, St Vrain Valley RE-1J Anthony Whiteley, St. Vrain Valley Re-1J
Shae Martinez, Mapleton 1 Donna Villamor, Littleton 6
Guests Present
Rick Howell, Pueblo City Schools Jack Bay, Douglas County Re-1
Sue McKnight, Brighton 27J Suzi DeYoung, Brighton 27J
Kristine Githara, Cherry Creek 5 David Brungardt, Valley Re-1
Buddy Lambrecht, Canon City Re-1 Lynne Winchell, Adams 14
George Hansen, Adams 14 Loretta Mann, Adams 14
Manuel Rodriquez, Trinidad 1 Suzanne Collins, Denver County 1
Molly Janzen, Poudre R-1 Sherry Dennis Murphy, Yuma 1
Stan Rodriquez, Adams-Arapahoe 28J Sharon Thompson, Holyoke Re-1J
Mimi Livermore, Adams 12 Shelley Becker, Adams 12
Dana Thomson, Harrison 2 Deb County, Valley Re-1
Laurie Darnell, Sheridan 2 Lisa Anderson, Jefferson County R-1
Brian Lund, Estes Park R-3 Richard Luna, CSI
Tim Unrein, Eaton Re-2 Luke Gonzales, Thompson R-2J
Cheryl Brewster, Weld Re-1 Jan Brummond, Platte Valley Re-7
Wendy Buhrdorf, Delta County 50(J) Wendy Winfrey, Ouray R-1
Barb Hazelton, Mesa County Valley 51 Nancy Paregien, Mesa County Valley 51
Doug Shawcroft, Mesa County Valley 51 Susan Doudy, Mancos Re-6
Laine Gibson, Durango 9-R Janell Wood, Archuleta County 50JT
Don Trujillo, Pueblo 70 Patty Venem, Rocky Ford R-2
Robin R. Valle, San Luis Valley BOCES Cindy Squires, San Luis Valley BOCES
Patty Walker, San Luis Valley BOCES Katherine Bacus, CDE
Andrea Perras, GOAL Academy Cheryl Wallace, Rubin Brown, LLP
Julia Stone, Rubin Brown, LLP Bryon Manning, Griego Professional Svcs.
Members and Alternates Absent
Carole Herman, Liberty J-4 Brenda Johnson, Weld Re-8
Linda Rau, Plateau Valley 51 Rhonda Bohlander, Crowley County Re-1J
Cassie Walgren, CSI Eileen Johnston, James Irwin Charter
MINUTES
FINANCIAL POLICIES AND PROCEDURES COMMITTEE
June 22, 2012
I. Call to Order and Introductions
Wendi Chapin called the meeting to order at 9:30 am. Those in attendance were asked to introduce themselves and their district.
II. Presentation of Agenda
Wendi presented the agenda with amendments. Bill Sutter made a motion to approve the agenda. Kim Krause 2nd the motion. Motion carried.
III. Approval of Minutes
Kathleen Askelson made a motion to approve the minutes from the May 11, 2012 meeting. Marita Vogrin 2nd the motion. Motion carried.
IV. June Economic Forecast
Both the Legislative Council Staff and the Governor’s Office of State Planning and Budgeting (OSPB) have presented their June 2012 Economic Forecasts to the Joint Budget Committee. Both forecasts continued to be more optimistic than the March outlook, and each cited additional revenues coming in to the General Fund to end the 2011-12 fiscal year above what was projected. These additional revenues are due to increased individual and corporate income tax with most of it being generated through capital gains taxes. Director Sobanet from the OSPB indicated that the capital gains were most likely a result of the increase in stock markets. He also indicated that this increase could potentially be one time in nature since the markets would have to increase significantly to generate additional capital gains.
Under current law, these additional revenues have allowed for excess reserves to be transferred to the State Education Fund (SEF) for 2011-12 and 2012-13. We will be working with OSPB over the next few months to develop the Governor’s Budget Proposal for 2013-14.
Each forecast cites continued slow growth and momentum gains in the labor force, housing and other sectors in the economy in Colorado. However, at the national and global level there are signs of slowing which could affect Colorado’s slow recovery. Consumers and business remain cautious as uncertainty with the European fiscal crisis, the slowing global economy and US federal fiscal policy weighs on spending decisions.
Links to both forecasts are below:
OSPB June 2012 Forecast Legislative Council June 2012 Forecast
V. Financial Transparency – Review of Requirements
Terry Christensen reviewed the final requirements for compliance with the Financial Transparency Act. Commencing July 1, 2012 investment performance reports or statements must be posted. Terry Buswell asked if a consolidated report compiled for the board outlining each of the investments funds would be sufficient. Kathleen Askelson stated that Jefferson County puts a page in their quarterly report with all of their investments with ratings and rates of returns. This eliminates the need to post multiple pages from individual statements. Denise Pearson stated that for small districts they generally have only one or two investment accounts such as COLOTRUST. It was the understanding of the Department that the statements from COLOTRUST and C-SAFE have been created to meet the transparency requirement. Leanne reminded districts to make sure that any account numbers have been removed or blacked-out before posting statements online.
Terry also reported that Crystal Dorsey from the Office of the State Auditor provided information on recognition three school districts received for their financial transparency. The Sunshine Review, a national nonprofit organization dedicated to government transparency, released the winners of it’s third annual Sunny Award. The award recognizes governments that are doing an exemplary job at proactively disclosing information to taxpayers. Denver County, Jefferson County and Mesa County Valley school districts received the award.
VI. Financial Policy and Procedures Handbook
Kirk Weber reported that he is still working on handbook updates and they will be presented at the October meeting. He asked if anyone has any items that need addressed/updated to please let him know so they can be incorporated in the current updates.
VII. Chart of Accounts Proposed Changes
Wendi Chapin and Adam Williams presented the changes to the Chart of Accounts (COA) as proposed by the subcommittee and input from contractors to the Department to align the Financial December ADE submission with proposed changes to align with the Department’s new Data Pipeline. The Data Pipeline is part of the State Longitudinal Data System (SLDS) conversion process CDE is currently undergoing to condense data collections from 16 to 7. Since some of these changes will be mandated from within we felt it was imperative to be proactive and combine the two. Adam stated that the Financial December ADE submission will not change from its current structure of a flat file submittal. One change to the file structure is that all files will be 44 bytes in length. Currently there are 44 and 39 byte file lengths. Any changes implemented will be effective for the FY12-13 COA and FY12-13 Financial December ADE submission.
Wendi and Adam walked through the proposed changes by account filed comparing the sub-committee recommendation against the Data Pipeline alignment. There was lengthy discussion regarding how to capture set-aside grant funding. The proposal to use the SRE codes was not well received. Leanne suggested going back to the Federal program administrators and ask if they could live with the current reporting for one more year, leave the SRE account as it is, then beginning FY13-14 use the proposed Reporting Enhancement Code to report grant set-aside. The group expressed exploring having the program code expanded to capture set-aside. Another new element that was recommended by internal contractors is an “as of date”. This could be beneficial to collect preliminary ADE data for year-end grant reporting, which is due before ADE audited financial data is due. Leanne clarified that the Department was not looking for any type of monthly or quarterly reporting but a way to possibly be more efficient in how data is collected. There was a question if during the ADE submission process; there could possibly be created dropdown menu for fields that are the same throughout the entire data file like “Administrative Unit Code “or “As of Date”. After further discussion by the group the consensus was to have the sub-committee meet to review the proposal changes and bring back a recommendation at the October meeting.
Wendi then reviewed the changes to the FY12-13 COA that were made to bring it more in-line with the NCES Handbook. The majority of the changes were related to the use of technology and associated definitions. After discussion, Dave Montoya made a motion to table approval of the changes and continue to have the sub-committee review all proposed changes. Terry Kimber 2nd the motion. Motion carried.
VIII. HB12-1345 BOCES funding for assistance to local districts with the implementation of the State’s “Educational Priorities” – Grant Code 3119
Leanne reviewed the provision in HB12-1345 that approved $1.3M for BOCES to help districts with educational priorities. The BOCES’s will be required to submit plans to the Department detailing how they will assist participating school districts in implementing and meeting the State’s educational priorities. BOCES may enter into a memorandum of understanding with a non-member district and districts that belong to a BOCES that chooses not to submit a plan may submit a plan as a consortium or a newly formed BOCES.
The Department will distribute 45% of the funds to BOCES that submit plans, 45% based on the total number of school districts participating in the BOCES plan, and 10% based on the total number of students enrolled in school districts participating in the BOCES plan. Grant code 3119 will be used to track the use of these funds.
IX. Office of the State Auditor (OSA) – Crystal Dorsey
a. Fiscal Health Analysis and Legislative Audit Committee Hearing
Crystal first thanked everyone that responded with feedback on the initial data push. They are still in the process of drafting the report and currently there are six school districts that they have requested additional information from to include in the report.
The Fiscal Health Analysis will be presented to the Legislative Audit Committee (LAC) on August 27th. The hearing is currently scheduled for 1:30PM. The meeting is audio broadcast over the internet. Crystal will send out additional information on the meeting schedule and how to access the audio broadcast around the beginning of August. Once the report is released by LAC then it will be available on the OSA website.
X. FPP Membership
a. Election of New Members
Leanne sent out a call for membership and received a full slate of applicants. Phil Onofrio, representing the membership sub-committee, presented the committee’s recommendations for membership. Phil made a motion to approve the slate of members as presented by the committee. Mike Thomas 2nd the motion. The motion carried.
Members elected to a four year term are: Christy Hamrick – Garfield Re-2; Shae Martinez – Mapleton Public Schools; Donna Villamore – Littleton 6; Fran Christensen – Falcon 49; Kurt Shugars – Telluride R-1 and Chloe Flam – Northwest Colorado BOCES. Stacy Sondberg – Byers 32J was elected to fill the remaining two-year vacancy. Alternates elected to a one year term are Rose Belden – Garfield 16; Sharon Thompson – Holyoke Re-1J; Tony Whiteley – St. Vrain Valley Re-1J; Jack Bay – Douglas County Re-1 and Shelley Becker – Adams 12 Five Star
b. Retiring Member Recognition
Wendi thanked the retiring committee members for the four years of service they have committed to serving on the FPP committee. The retiring members were presented with a Certificate of Appreciation from the Department.
XI. Other Topics of Interest
a. Federal Sequestration
Leanne reported that information has been sent out regarding the potential impact on federal grant distributions due to sequestration that could possibly occur in January. The Department is advising districts to be proactive and conservative in FY12-13 Title application budget preparation.
b. SB12-051 – Contracts executed by Local Education Providers
A question was asked regarding the requirement to post contracts. The language in the original bill was removed and districts are not required to post contract information on their websites.
c. ADE Financial December Submission/New Edits
Adam Williams reviewed the four major new edits that will be added to the Financial December ADE collection. They involve an IDEA MOE edit, Flow-thru coding between BOCES and member districts edit, a SWAP edit, and an edit only allowing the use of one Federal grant code (no more 5XXX, 6XXX).
d. Future Meeting Dates
The meeting dates for next year have been set. They are Oct. 5, 2012, Feb. 8, 2013, May 10, 2013 and June 21, 2013.
e. GFOA Summer Workshop
Karin Slater reported that CGFOA has trainings sessions offered this summer and GFOA is also offering summer training sessions July 23-27 in Denver.
http://www.cgfoa.org/calendar.htm
http://www.gfoa.org/downloads/GFOAJuly2012Denvertrainingbrochure.pdf
There being no further business to come before the Committee, the meeting was adjourned.