Agenda and Notes - November 16, 2017

State College Area School District

OUR MISSION:  To prepare students for lifelong success through excellence in education.

November 16, 2017 Board Finance and Audit Committee Meeting
11:30 a.m.  - Meeting Room A, Panorama Village Building
240 Villa Crest Drive
State College, PA  16801


I.     Call to Order

II.    2016-17 Audited Financial Statements (attachment)

III.   Donation Report (attachment)

IV.    Budget Development 2018-2019 (attachment)

V.      Future Meeting Agenda Items

VI.     Public Comment

VII.   Adjournment


Board Finance and Audit Committee Meeting Notes                      
November 16, 2017 - 11:30 a.m. - Meeting Room A
Panorama Village Administrative Center
240 Villa Crest Drive
State College, PA  16801

I.     Call to Order
Mr. Fozard called the meeting of the Board Finance and Audit Committee to order at 11:35 a.m. and turned the meeting over to Mr. Brown and Ms. Watson.

Committee Members: Amy Bader, Amber Concepcion, Dan Duffy, Scott Fozard
Others:  Rick Bair, Dave Bracken, Randy Brown, Marie Caster, Bob O’Donnell,
Donna Reinhardt, John Taylor, Donna Watson, Laurel Zydney

A copy of all materials distributed to board members for discussion is included with the official notes, unless otherwise indicated.

II.    2016-17 Audited Financial Statements
Mr. Brown introduced Rick Bair and John Taylor of Baker Tilly, who would review the 2016-17 Audited Financial Statements.  Mr. Taylor briefly outlined the major areas of the audit he would review with the Committee, including board communications. He stated a formal letter will be issued to the Board, reporting on the audit, the responsibilities of the district and the auditors, and opinion. They look at internal controls (for which there were no opinions issued) compliance of major federal programs, accounting procedures and policies. Mr. Taylor mentioned various GASB statements reviewed for application and compliance.  He was pleased to report there were no difficulties with the audit, no disagreements with management, no findings, and no uncorrected audit adjustments. The audited major federal program (Food Service) resulted in a clean opinion.

The Management Discussion and Analysis (MD&A) shows the financial position has improved by about $9 million this past year, with a strong $57 million available for ongoing district activities. There are new GASB statements taking effect next year which will change reporting procedures and work is already being done to be ready.

Mr. Fozard asked District staff to leave the room in order to have a private conversation with the auditors. When staff returned, he complimented the Finance team for all the quality work done for the district.

III.   Donation Report
Mr. Brown reviewed the donations report to be presented to the board at their next meeting. He stated it is not a lot of money this time, and donations come from various sources, and plans to make this report a routine board approval on a quarterly basis. Board members asked if the report would come to Committee first and does it need to be more than quarterly.  Discussion resulted in agreement to bring a draft quarterly report to Committee, however Committee agreed the report could go on the board agenda if no Committee meeting is scheduled prior. The Committee discussed the need for additional explanation for designated donations. A decision was made to add an additional footnote. Board member suggested tiers, i.e., less than $500, $501-$1,000, etc. and should names be listed or not. Discussion resulted in the decision to sort the report alphabetically by donor within each fund.

IV.    Budget Development 2018-2019
Mr. Brown stated this is a continuation of previous conversations and reviewed a calendar of upcoming presentations. He stated the Finance Team of Ms. Watson, Ms. Reinhardt, Mr. Bracken and himself, spend many hours together working on the budget. Board members requested a placeholder on the calendar next year for extracurriculars. Board member suggested adding things to the bottom of the calendar, i.e., 2019 review coming up, and whether it is an annual or other rotation.

V.     Future Meetings
Next meeting December 14
December - review January borrowing
Debt Service Schedule explanation
Budget Development - Opt Out Resolution
MOU with Foundation

VI.    Public Comment
There was no public comment.

VII.   Adjournment
Mr. Fozard adjourned the Board Finance and Audit Committee meeting at 12:24 p.m.

Submitted by,

Marie Caster
Acting Board Secretary