Board Meeting Dates

Additional Details

Finance Committee Meeting

AGENDA

The Finance Committee Meeting will begin at 7:45 a.m. or immediately following the Capital Outlay, Property, and Technology Committee meeting.

Tuesday, March 18, 2014

7:45 AM

DeLayo Martin Community Room, Alice and Bruce King Educational Complex, 6400 Uptown Blvd.NE

Albuquerque, New Mexico

Albuquerque Public Schools

Minutes of the Finance Committee

March 18, 2014

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A Finance Committee meeting of the Albuquerque Public Schools Board of Education was held on Tuesday, March 18, 2014, scheduled to begin at 7:45 a.m., in the Alice and Bruce King Educational Complex, John Milne Community Board Room, 6400 Uptown Blvd., NE.

1. I. Call to Order

Chairman Duran called the meeting to order at 8:37 a.m.

1. a. Roll Call

The following were in attendance:  Martin Esquivel, Kathy Korte (via telephone), Lorenzo Garcia, Analee Maestas, Steven Michael Quezada, David Peercy and Don Duran.

An amendment to the agenda was made to request hearing items 10, 11 and 12 before item 2.

Mr. Esquivel motioned for approval of moving items 10, 11 and 12 to be heard before item 2, with Dr. Maestas seconding the motion in the affirmative.  Motion carried.

b.    Adoption of the March 18, 2014, Agenda and Approval of the February 18, 2014, Minutes

Dr. Maestas motioned for approval of the agenda and minutes with Mr. Quezada seconding the motion in the affirmative.  Motion carried.

1. II. Consideration for Approval of Budget Adjustments for Grant Management
   1. a. 21^st Century, $16,216
   2. b. Section 1003g-SIG, $10, 542
   3. c. Title I Homeless, $10,000
   4. d. APS Homeless Project Tutors, $5,000
   5. e. STARBASE La Luz-Sandia Base, $1,250

Ms. Scott presented budget adjustments, which came in during the month of February.

Mr. Quezada motioned for approval of the Budget Adjustments for Grant Management (items a-e) with Dr. Maestas seconding the motion in the affirmative.  Motion carried.

1. III. Consideration for Approval of Grant Management Inter-Function Transfers for February 2014
2. IV. Consideration for Approval of Grant Management Intra-Function Transfers for February 2014

Ms. Scott presented items 3 and 4, inter- and intra-function transfers for the month of February.

Mr. Quezada motioned for items 3 and 4, with Dr. Peercy seconding the motion in the affirmative.  Motion carried.

1. V. Consideration for Approval of Communication Services RFP #14-042GR-SL
2. VI. Consideration for Approval of Musical Instruments and Equipment Bid #14-039GR-AM
3. VII. Consideration for Approval of Travel Services Bid #14-038RR-SL

Mr. Heckart presented items 5-7:

• The annual Communications Services RFP is done for the areas of data circuits, internet access, voice services and advanced voice services—all available for E-Rate reimbursement.
• The Musical Instruments and Equipment Bid is done for the Fine Arts department annually for all schools
• The Travel Services Bid is done out of the Finance department to help with reservations services and tickets.  This bid is done every four years.

Dr. Peercy motioned for approval of items 5-7, with Mr. Quezada seconding the motion in the affirmative.  Motion carried.

1. VIII. Consideration for Approval of Cash Disbursements for February 2014

Mr. Heckart presented the cash disbursement report for February.

Dr. Peercy motioned for approval of Cash Disbursements for February 2014, with Mr. Quezada seconding the motion in the affirmative.  Motion carried.

1. IX. Consideration for Approval of Budget Adjustment Increase for 2013-14 Student Transportation Service Final Allocation
   1. a. 2013-14 Final Allocation, $688,577

Dr. Winter presented a budget adjustment increase for the Student Transportation Services department for $688,577, which is very good news.  Last year’s final mileage rate was $2.24/mile.  With this adjustment, the mileage rate could be between $2.30-$2.35/mile—have not seen this rate in over five years.

Dr. Peercy motioned for approval of Budget Adjustment Increase for 2013-14 Student Transportation Service Final Allocation of $688,577, with Dr. Maestas seconding the motion in the affirmative.  Motion carried.

1. X. Consideration for Approval of Budget Adjustment for 21^st Century Public Academy
   1. a. Increase BAR #001-027-1314-0020-I
   2. b. Intra-function BAR #001-027-1314-0021-M
   3. c. Intra-Function BAR #001-027-1314-022-M
   4. d. Intra-Function BAR #001-027-1314-0023-M
   5. e. Decrease BAR #001-027-1314-0024-D

Ms. Coleman presented five budget adjustments for 21^st Century Public Academy:

• Fund 31700-SB-9 annual award of State matching funds for $5,329
• Fund 1400-Instructional Materials-monthly maintenance to adjust budget to reflect expenditures
• Fund 21000-Food Services-monthly maintenance-adjust budget to reflect expenditures
• Fund 21454-Teacher Training Title II-monthly maintenance to adjust budget to reflect expenditures
• Fund 11000-Operational-reduce SEG by ($55,000)/T&E-($10,000) and growth ($45,000)

1. XI. Consideration for Approval of 21^st Century Public Academy Cash Disbursements for February 2014

Ms. Coleman also presented the monthly cash disbursements for February 2014—payments and payroll totaling $132,000.

Dr. Maestas motioned for approval of items 10 and 11, with Dr. Peercy seconding the motion in the affirmative.  Motion carried.

1. XII. Presentation of 21^st Century Public Academy Financial Reports as of March 4, 2014

Ms. Coleman presented the updated expenditure report:

• Fund 11000-General shows a ($117,442.36) balance (will be adding ($55,000) deficit once approved)

Mr. Moya added that the school is looking at a ($170,000) deficit.

• The District has been cautiously optimistic throughout the entire process hoping that the tide would turn on the deficit, which has not materialized (such as growth, unit value).
• Mr. Moya and Ms. Coleman have been working on projections, which look like a 3-5 year engagement with this school to get them back in the black.  After a year in, based on current projections, another two years at the current rate will get the deficit down to zero.
• Turning over the checkbook with a zero balance does not resonate well—would like to make sure they have some money in the bank—have basically no agility or liquidity,
• APS would continue to pay for the business management function of the school, which is currently being done.
• Five years would put them back in the black at the current rate of expenditures.
• As 2015 budget is being built, the principal and governing council will be asked to carefully scrutinize all of those expenditures—to minimize amount of time APS spends at the school—minimize our engagement with respect to their finances.

Dr. Duran expressed his concern regarding APS taking over a school’s finances for 3-5 years--the governing council’s authority is diminished, and puts APS in a position of running a school for 4-5 years.  At some point the governing council will have to decide how much authority they are willing to give up and how long APS is willing to take over a school.  Ms. Virginia Trujillo, President of 21^st Century Public Academy Governing Board, responded by saying that they are very pleased with and thankful for APS helping with the financial issues of the school—welcomes the expertise.  Mr. Tolley added that the charter renewal would be due the fall of 2015 to be effective in 2016.  Mr. Moya added that the enterprise fund to provide business management services is now available to be contracted to charter schools.

1. XIII. Consideration for Approval of Statement of Equipment Taken out of Service January 1-31, 2014

Ms. Coleman presented the reports for equipment taken out of service for January—asking for approval to dispose of these items.

Dr. Maestas motioned for approval of Statement of Equipment Taken out of Service January 1-31, 2014, with Mr. Quezada seconding the motion in the affirmative.  Motion carried.

1. XIV. Consideration for Approval of Operational Inter-Function Transfers for February
2. XV. Consideration for Approval of Operational Intra-Function Transfers for February

Mr. Hendrickson presented the routine inter- and intra-function transfers for the month of February.

Dr. Maestas motioned for approval of items 14 and 15, with Mr. Quezada seconding the motion in the affirmative.  Motion carried.

1. XVI. Presentation of Proof of Concept-Non-Compliant Activity Fund Audits

Mr. Moya presented the Proof of Concept-Non-Compliant Activity Fund Audits in response to the number and nature of activity findings:

• Even though activity funds are basically controlled by the schools, the APS administration and Finance division has no control over the activity funds.  We are still tainted with the same brush when activity funds are not managed correctly.
• 30 schools with activity funds have manual ledgers—no automated software
• Require schools with manual ledgers to immediately purchase software for $180 or bring activity funds onto Lawson
• Any school or department currently rated non-compliant, and next consecutive audit is rated non-compliant, or last two out of three audits are rated non-compliant will have school’s activity funds transferred to Lawson and will be directly supervised by the Finance department.
• Those schools would still be required to receipt and deposit activity funds—would still receive an audit for those functions
• If certain conditions are met, the activity funds would be returned to the school

Dr. Peercy asked how this relates to booster club funds—any relationship with policies we have been trying to address.  Mr. Moya responded that the administrative response to audit findings to the activity funds does not relate to booster club findings.  This proof of concept was developed with Ms. Koshmider and her staff—does not involve booster clubs at all.   This administrative response does not require a change to the policy—will require a change to the procedural directive.  Dr. Peercy stated that procedural directive changes are brought to the Policy Committee for review.

1. XVII. Presentation of FY15 Strategic Budget Look Ahead

Mr. Hendrickson began presentation by addressing:

• Waiting for the new unit value—will tell us a lot about where we stand in terms of revenues
• 120 day enrollment numbers have come through—seeing improvement in special education numbers—on enrollment the degradation not as bad as we thought it would be.
• At risk units increased—good news is more funding available, bad news is more poverty
• Hopeful to get shortfall to a manageable range of $5M

Mr. Moya:

• Possibility of legal action with respect to the veto of $15.2M for at risk funding—recommendation is that we cut losses and move forward.

1. XVIII. Future Agenda Items/Requests

1. XIX. Adjournment

Chairman Duran adjourned the Finance Committee meeting at 9:18 a.m.  The next Finance Committee meeting will be held on Tuesday, April 22, 2014.