Agenda and Notes - February 22, 2018

State College Area School District

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


February 22, 2018, Board Finance and Audit Committee Meeting
11:45 a.m. - Meeting Room A, Panorama Village Building
240 Villa Crest Drive
State College, PA  16801


Agenda

 

I.     Call to Order

II.    Fundraising - Memorial Field

III.   Debt Financing Calendar (attachment III)

IV.    Budget Development 2018-2019 Calendar (attachment IV)

V.     SCASD Education Foundation MOU (attachment V)

VI.    Future Meeting Agenda Items

VII.   Public Comment

VIII.  Adjournment


NOTES

Board Finance and Audit Committee Meeting Notes                         
February 22, 2018 - 11:45 a.m. - Meeting Room A                       
Panorama Village Administrative Center                   
240 Villa Crest Drive
State College, PA  16801

I.        Call to Order
Mr. Fozard began the Board Finance and Audit Committee meeting at 11:50 a.m. and turned the meeting over to Mr. Brown.

Present
Committee Members:  Amber Concepcion (by phone), Dan Duffy, Scott Fozard, Laurel Zydney
Others:  Dave Bracken, Randy Brown, Marie Caster, Bob O’Donnell (arrived 12:18), Donna Reinhardt, Donna Watson

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

II.       Fundraising - Memorial Field
Mr. Brown reported Paul Olivett is working with Ed Poprik and Chris Weakland on naming opportunities for specific larger items at Memorial Field, with the top 5 being plaza area, classroom alternate, concession stand, bleachers and press box. A brochure for conversations will be available in the next couple weeks. Mr. Olivett is also working with Dr. O’Donnell and Matt Lintal for a list of potential donors, booster clubs, and an action plan. Committee members discussed nature of naming related to advertising, contract with third party advertiser, board should review proposals as early as possible. Mr. Olivett is looking for parameters which create boundaries that also allow conversations with potential donors.

III.      Debt Financing Calendar
Mr. Brown reviewed a calendar showing the schedule for preparing for the bond issuance.  Results of the bond rating conversations will be available on the 23rd, and hopeful the rating will remain the same. He reported that Ms. Watson and her team spent a great deal of time preparing information and they had very positive conversations with the rating agencies. This is really important to the district and it is exciting when the ratings come in positive.  The financing costs include expenses for local advertising. Radio advertising will not be used as in the past after completing a cost benefit analysis. Mr. Brown will include any new information in the weekly update and also at the Board meeting Monday night.

IV.       Budget Development - 2018-19 Calendar
Mr. Brown reviewed the budget calendar with Board leadership earlier in the week. There were changes made based on time to complete, and also quality of development for presentation to board. Budget updates were added to the first meetings in March and April, in addition to the second monthly meetings.  A member expressed concern with the time available for board interaction and adjustments. Mr. Brown replied that there are four weeks available for adjustments between Preliminary and Final Budget adoption. A member asked if extended school day and paraprofessional costs are firm. Mr. Brown responded they are very confident the budget for paras and transportation is adequate for the extended school day.

V.        SCASD Education Foundation MOU
Mr. Brown and Ms. Watson conferred with Julius Green, Tax Specialist with the District’s auditing firm, Baker Tilly, and Rhonda Lord, legal counsel with Kegel, Kelin, Almy & Lord. In their experience with MOUs, IRS Forms 990 and 1023, Bylaws and MOU all tie together nicely.  Mr. Brown explained the situation with the District paying expenses of the Foundation. The IRS defines both as separate parties, both Lord and Green would prefer giving the funds to the Foundation but feel there is no problem as it is.

Mr. Brown reviewed the suggested changes listed on the cover page of the handout. Questions and comments from Committee members:
A-8 - Rewrite to add “students” after ...district educational programs....  
B-4 - First sentence change “shall” to “may”: The District may advance funds… Remove date references as the term of the agreement is referenced elsewhere in the agreement.
C-3 - Not comfortable with additional language; remove “to be” [raised]; consider wording “any funds obtained during the term of the agreement must be repaid to the district regardless of term of agreement;” remove “equal or exceed.”

A straw poll of the Committee to move forward with the MOU generated comments: a significant improvement, would like to see a report before approving, mostly comfortable, uncomfortable with evaluation of performance of Executive Director and how to evaluate that over time. Mr. Brown will send Chairperson an updated draft for sharing with SCASDEF.  The MOU will be on the next board agenda as an information item, will be presented to Foundation Board at their meeting on the 28th, and will go back to School Board in March for action.

VI.       Public Comment
There was no public comment.

VII.      Adjournment
The Board Finance and Audit Committee meeting adjourned at 12:51 p.m.

Submitted by,

 

Marie Caster
Acting Board Secretary