Approved Minutes - Board Meeting 11/14/13

Board President Dotson opened the meeting, and the meeting was convened at 2:00 pm.

President Dotson was the conducting authority of the meeting.

Welcome by President Nick Dotson

Student & Staff Recognitions:

Work Session Meeting - FY2013 Audit & Audit Committee (3:00 pm)

• Mr. Todd Hess and Mr. Caleb Reese, who represent HintonBurdick CPAs & Advisors, presented to the Board and Audit Committee the results of the independent audit and required agreed upon procedures:

  • Financial audit

  • Auditor opinions

  • Review of key aspects of the District's Comprehensive Annual Financial Report (CAFR)

  • State & federal compliance

  • Adult education agreed upon procedures

  • Fall enrollment agreed upon procedures

  • Student membership agreed upon procedures

  • Key financial trends

  • Other recommendations from items detected in the audit--specifically with the Debt Service Fund and Student Activities Fund

  • The importance of preventing and training staff to prevent management override

• Mary Pearson (audit committee) reviewed the key elements of internal control with the audit committee and Board.

• Mitch Bealer (audit committee) recommended the Board give careful consideration to reviewing the Management Discussion & Analysis (MD&A) in the CAFR, pp20-31.

• Natalie Grange (USOE Internal Auditor) extended support and was complimentary towards the District having a functional audit committee. She also expressed support towards the District's oversight and awareness towards developing internal control and training staff.

• Risk Assessment: Mr. Burke asked Mr. Reese to summarize his conclusions regarding the highest risks in the District. Mr. Reese indicated their assessments have identified two high risks--1) school activity funds (school checking accounts), and 2) payroll. Both functions are considered by the auditors as high risks given past history and the inherent risks associated with these operations. Mr. Burke summarized the District administration's risk assessment. The District considers the following to be high risks: 1) school activity funds, 2) purchasing (given changes in state compliance), 3) budget risks associated with the Special Education, CTE, and Title I programs given known budget challenges and 4) the significant number of organizational changes occurring in the District.

• Mr. Burke and the auditors acknowledged the improvements being made by the district-wide staff with regards to internal control, policy and procedure development, and the commitment to maintain standards in the district. The payroll function in the district was recognized as having made significant improvements. The payroll function had no audit findings as compared to prior years. Mr. Burke also pointed out the improvements that have been made with school activity funds (school checking account management). Dr. Terry affirmed and stated his support for the improvements made throughout the District.

• Mr. Burke reviewed the District's action plans associated with the auditor's recommendations for control deficiencies detected during the audit. The action plans include 1) changing the budget estimation approach for the Debt Service Fund, and 2) continued monitoring, training, and oversight of school activity funds.

• Mr. Burke referred the Board and audit committee to the results of a recent Utah Retirement Systems compliance audit. As compared to the prior URS audit two years ago, significant improvements have been made with regards to accurate payments into the system for eligible employees and accuracy of records. However, the accounting staff is still working to resolve incomplete communications with URS regarding employee hires, terminations, and eligibility for several employees that date back to 2006.

• Mr. Burke affirmed the District's participation in the GFOA and ASBO certificate of excellence for financial reporting programs, and he pointed out the District is one of approximately 10 Districts (41 total) in Utah who participate in these high standards of excellence programs. He also recommended the Board review the student and school performance data in the CAFR beginning on p128. The purpose of the CAFR and financial operations is ultimately to achieve specific student achievement results.

• The Board was very complimentary to the staff for the improvements made, the management of the District's financial resources, and the standards being implemented within the District. The Board complimented Becky Parkinson, Bonnie Bairett, and Marjorie McWilliams for their commitment, dedication, and the improvements made.

• All audit reports and reports from audit work related to agreed upon procedures have been made available to the public and staff on the district's website and can be accessed through the Financial, Budget, & Audit Reports link.

• • Action Item: Board Adoption & Acceptance of Auditor Work

• • FY2013 Financial Audit

    • FY2013 Comprehensive Annual Financial Report (CAFR)

    • Federal Single Compliance

    • State Compliance

    • Auditor Findings & Recommendations

    • District Administration Response & Action Plans

  • Adult Education Agreed Upon Procedures

  • Fall Enrollment Agreed Upon Procedures

  • Student Membership Agreed Upon Procedures

Motion to Approve Made By: Kristina Brown

Motion Seconded By: Carolyn White

Board Vote: Unanimous

Regular Board Meeting - Discussion Items (4:36 pm)

• • Superintendent Report:

• Reported that Mr. Swapp and one of his classes (MHS) have been recognized as a finalist in a national Samsung Solve for Tomorrow contest for STEM education

• November 21st, Boarddoc training at 3pm (1 hour board training); board members should bring their Ipad

• November 26, Board visits to schools, meet at MHS @ 8:15 am

• • Business Administrator Report:

• • A copy of the Utah Code regarding the job duties of the Business Administrator was provided to the Board

  • Request for job evaluation in January

• Board Member Reports:

  • Board Member White:

    • Reported on the five-county meeting and discussions with legislators regarding changes with the State Board of Education

  • Board Member Carter:

    • Reported on LEPC discussions and school emergency preparedness meeting

  • Board Member Brown:

    • Asked the District to reconsider scheduling games on days close to holidays