MINUTES

BOARD OF TRUSTEES MEETING

ANDERSON SCHOOL DISTRICT NUMBER FIVE

Anderson, South Carolina

 

December 14, 2010

6:30 P.M.

 

 

The Board of Trustees of Anderson County School District Number Five met in the Offices of the Board this date with the following members present:Mr. David Alewine, Mr. Charles Lee Anderson, Mr. Rick Bradshaw, Mr. Al Norris, Mr. Dickie Smith, and Dr. Paul A. Talmadge.Absent were Mrs. Ann Huitt, Mrs. Margaret Mack and Mr. Paul Zugg.

 

 

NOTICE TO MEDIA

 

In accordance with the S. C. Code of Laws, 1976, Section 30-4-80(d), as amended, the following have been notified of the time, date, place and agenda of this meeting:The Anderson Independent-Mail, Greenville News, The Anderson Journal, WYFF, WSPA, Paul Brown, and FOX 21.

 

 

CALL TO ORDER & INVOCATION

 

Mr. Norris called the meeting to order at 6:31 p.m., and Dr. Talmadge gave the invocation.

 

 

APPROVAL OF AGENDA

 

Mr. Norris requested that a Personnel Matter be added to the agenda in Executive Session.

 

Mr. Bradshaw made a motion the Board approve the agenda with the addition noted. Mr. Alewine seconded the motion, which carried unanimously.

 

 

APPROVAL OF MINUTES

 

Dr. Talmadge made a motion the Board approve the minutes of the November 18, 2010 Regular Board Meeting as submitted. Mr. Anderson seconded the motion, which carried unanimously.

 

 

OPPORTUNITY FOR CITIZENS TO ADDRESS THE BOARD

 

No one signed up to address the Board.

 

 

FINANCIAL SERVICES & OPERATIONS REPORT

 

Financial Reports Mr. Brooks presented the monthly Financial Statement and the Pupil Activity Report for the month of November 2010 as information.

 

Construction Update In a PowerPoint presentation, Mr. Colman gave an update on the Robert Anderson & Glenview Middle School Construction projects; and the Concord, Centerville, Whitehall, New Prospect, Homeland Park, Varennes, Nevitt Forest, and Southwood Renovations & Additions projects. He also distributed a Building Program Update Report. Mr. Colman showed aerial views of the North Pointe site package project.

Financial & Procurement Audit Reports for FY 09-10 In a PowerPoint presentation, Mr. Ken Meadows of Greene, Finney & Horton, LLP gave an overview of the Financial Audit for the year ended June 30, 2010. He reported that the financial condition of the district is reasonable at year end; major fund balances (i.e., General, Special Revenue, Debt Service, etc.) all increased; and the district has done a good job managing finances in a difficult economy and in response to state cuts. He reported that the district received Government Finance Officers Association (GFOA) and Association of School Business Officials (ASBO) Awards for Excellence in Financial Reporting for 11 and nine years in a row, respectively. He stated that the district is responsible for financial statements. The auditor is responsible for opinion-reasonable assurance that financial statements are materially correct. Mr. Meadows reported that the district received an unqualified opinion, which is the best opinion the school district can receive.

 

Next, Mr. Meadows reported that the districts General Fund balance increased by approximately $1.9 million. The unreserved fund balance increased to approximately 10% of 2010 actual expenditures and budgeted expenditures. The increase of the unreserved fund balance was primarily due to (1) higher than anticipated delinquent tax collections, (2) transfers from the Food Service Fund for indirect costs, (3) fringe benefits for food service employees being paid from the Food Service Fund instead of the General Fund, and (4) a focused effort on cost containment. Major reasons for maintaining a healthy fund balance include cash flow through December, potential for lower interest rates for debt issuances, emergencies/unanticipated events, savings for major planned expenditures, and the loss of AARA (stimulus) funding in fiscal year 2012.

 

The General Fund revenues decreased by approximately $2.9 million primarily due to state budget cuts of approximately $4.5 million. This was offset by local tax revenues increasing by approximately $1.6 million due to higher delinquent collections and increased millage. Compared to budget, district revenues were approximately $0.5 million under budget primarily due to lower than budgeted local current tax revenue.

 

The General Fund expenditures decreased by approximately $5.4 million. Decreases were primarily due to budget cuts that eliminated positions and reduced 12-month employee contract days. Also, expenditures were moved to Special Revenue Funds because of ARRA. Compared to budget, district expenditures were approximately $1.6 million under budget primarily due to allocating fringe benefit costs to the Food Service Fund and overall cost containment.

 

Next, Mr. Meadows reported that the district received approximately $15.2 million in Special Projects funds (i.e., Title I, IDEA, grants, etc.) with approximately $1.5 in carryover funds and approximately $2.9 million in Education Improvement Act funds with approximately $3.5 million in carryover funds. He further stated that the district is constrained by federal and state requirements to use these funds only as allowed by the applicable compliance regulations. Other funds included Debt Service (approximately $3.2 million fund balance), Capital Projects (approximately $95.9 million fund balance), and Food Service (approximately $1.9 million fund balance), of which $1.6 million is unrestricted.

 

Under GASB 34 auditors review the overall financial condition of the district (i.e., general fund, food service, capital projects, special revenue funds, etc.). He reported that the districts assets total approximately $256 million and liabilities total approximately $167 million. Revenues total approximately $115 million and expenses total approximately $108 million.

 

After the audit for year ending June 30, 2010, Mr. Meadows reported the following subsequent events: (1) the issuance of a Tax Anticipation Note totaling approximately $8 million and (2) contracts awarded for Southwood and North Pointe totaling approximately $7 million.

 

Next, Mr. Meadows stated that because the district receives a significant amount of federal revenue, auditors are required to do a single audit to make sure that the district is in compliance with federal requirements. There were no reportable findings. He also stated that a management letter was issued as a required communication from the auditor to the Board recommending that the district continue to improve cash control at the school level.

 

Mr. Meadows highlighted other items noted in the financial statements. The district had approximately $26 million in capital related expenditures during fiscal year 2010; the districts short-term borrowings for fiscal year 2010 were approximately $9 million for Tax Anticipation Notes; the district issued $63 million in General Obligation Bonds.

 

In conclusion, Mr. Meadows stated that the district had good management of finances and response to the state revenue cuts. He encouraged the district to continue to watch the General Fund cash flow and fund balance during these difficult financial times.

 

Mr. Meadows discussed the Procurement Audit Report for year ended June 30, 2010. He stated that the auditors reviewed minority business plans and reports; new construction bid files; all sole source, emergency, and trade-in sale procurement transactions; and numerous purchase orders. There were no reportable findings.

 

In conclusion, Mr. Meadows stated that the overall opinion on the Procurement Audit is an unqualified opinion, which is the best opinion the school district can receive.

 

North Pointe Elementary School Building Package Bid Award Mr. Brooks stated that bids were received on December 9, 2010 for the North Pointe Elementary School Building Package. He distributed a bid tabulation sheet and summary sheet showing the bid vs. budget analysis. Mr. Brooks reported that the low bidder was Matrix Construction Company (including add Alternates #2-#6) for total of approximately $16,259,300. As compared to budget, when you consider the early site package, the building package and the recommended alternates, the total is approximately $161,113 over budget. The administration recommended the board approve the bid from Matrix Construction Company, subject to satisfying the bid protest period and providing that all of the requirements of the District Procurement Code are met.

 

Mr. Anderson made a motion the Board approve the bid from Matrix Construction Company (including add Alternates #2-#6) for a total of $16,259,300, subject to satisfying the bid protest period and providing that all of the requirements of the District Procurement Code are met. Mr. Alewine seconded the motion, which carried unanimously.

 

 

INSTRUCTIONAL SERVICES REPORT

 

District Improvement Plan Mrs. Kim Morgan stated that as a part of the NCLB Act, all subgroups with more than 40 students are required to make AYP based on PASS, HSAP, and End-of-Course tests. She reported that Anderson School District Five is required by federal NCLB guidelines to submit a needs assessment and recommendation to the South Carolina Office of Federal and State Accountability as a result of the district receiving a district improvement rating of Corrective Action for the 2010-2011 school year. The corrective action recommendations were presented to the Board for approval.

 

Mr. Smith made a motion the Board approve the District Improvement Plan as presented. Mr. Anderson seconded the motion, which carried unanimously.

 

 

 

 

BOARD ITEMS

 

Advocacy Mr. Norris stated that several Board Members have expressed an interest in establishing a board committee for SCSBA Advocacy. The committee would be education advocates to discuss legislative education issues with the local Legislative Delegation and other municipalities. Mr. Norris then distributed a copy of the SCSBA advocacy minutes from Duane Cooper. Since committees are appointed in January, Mr. Norris recommended appointing the advocacy committee at that time.

 

Dr. Talmadge stated that he highly endorses the advocacy committee. Mr. Bradshaw stated that he endorses the advocacy committee and recommends putting it in place immediately.

 

Dr. Talmadge suggested that the district invite Duane Cooper of the SCSBA to assist in training the Board in advocacy. Mr. Alewine agreed that the district should invite Duane Cooper because of his experience and expertise in working with school boards across the state.

 

Mr. Bradshaw made a motion the Board approve establishing a Board Advocacy Committee. Dr. Talmadge seconded the motion, which carried unanimously.

 

Retreat Mr. Norris stated that the Board has not had a retreat in several years. He further stated that things to discuss at a retreat could include: results of the Board self-evaluation, issues in the near future that we will face as a Board, long-range goals, etc. He then asked if there was an interest in having a Board retreat.

 

It was by board consensus that Board officers, along with the Administration, plan a Board retreat.

 

New Board Orientation Mr. Norris stated that an orientation needs to be scheduled for new Board Members. He suggested that the new board orientation be scheduled in early January. By consensus, the New Board Orientation was scheduled for January 6, 2010 at 6:30 p.m.

 

 

REZONING PARAMETERS

 

In a PowerPoint presentation, Mrs. Bagley reviewed the combined and prioritized results from the three community meetings held in three different locations. She reviewed write-in parameters from the three community meetings. Mrs. Bagley then asked the Board for their input in prioritizing the parameters.

 

Mr. Smith suggested that the list of parameters be sent home with every student then returned to their respective school so that all parents can have input on prioritizing the parameters. Mrs. Bagley stated that the district is prepared to have the list of parameters sent home. She then distributed copies of a sample letter to parents. Mrs. Bagley then requested a special board meeting to review the parameters.

 

Mr. Bradshaw made a motion the Board approve the list of parameters as presented. Dr. Talmadge seconded the motion. The motion failed with two in favor (Bradshaw, Talmadge) and four opposed (Alewine, Anderson, Norris, and Smith).

 

Mr. Smith made a motion the Board approve the list of parameters be sent home with students on January 4, 2011 and returned back to the schools by January 7, 2011. Mr. Alewine seconded the motion. The motion passed with five in favor and one abstention (Bradshaw).

 

After further discussion, the Special Board Meeting was scheduled for January 10, 2011 at 6:30 p.m. and the New Board Orientation was re-scheduled for that same date immediately following the Special Board Meeting.

 

 

SUPERINTENDENTS REPORT

 

Art Strategic Plan Mrs. Bagley recognized Calhoun Assistant Principal Jaime Smith to present the Art Strategic Plan. Mr. Smith stated that as an arts school, Calhoun is re-applying for an Arts in Basic Curriculum (ABC) five-year grant provided by the SC Arts Commission. In order to receive the grant, schools are required to have an approved strategic plan based on the arts. Mr. Smith then presented for Board approval the ABC Strategic Plan 2010 Overview.

 

After some discussion, Mr. Norris made the motion the Board approve the Art Strategic Plan as presented. Dr. Talmadge seconded the motion, which carried unanimously.

 

After further thought and by Board consensus, the Special Board Meeting was scheduled for January 11, 2010 at 6:30 p.m. with the New Board Orientation immediately following, and the Regular January Board Meeting was rescheduled for January 25, 2010 at 6:30 p.m.

 

Finally, Mrs. Bagley presented as information to extend the instructional day at the elementary level. She stated that principals will survey parents to see if there is parental support for extending the day.

 

 

RECESS

 

Mr. Smith made a motion the Board recess for ten minutes, then reconvene in Executive Session to discuss a Personnel Matter. Mr. Anderson seconded the motion, which carried unanimously.

 

 

(8:50 P.M.)

 

 

OPEN SESSION FOLLOWING EXECUTIVE SESSION

 

Dr. Talmadge made a motion the Board reconvene in Open Session. Mr. Bradshaw seconded the motion, which carried unanimously.

 

Mr. Norris reported that no action was taken in Executive Session; however, action is required on the Personnel Matter.

 

Dr. Talmadge made a motion the Board accept the Administrations recommendation concerning the Personnel Matter. Mr. Bradshaw seconded the motion, which carried unanimously.

 

 

ADJOURNMENT

 

There being no further business, Mr. Norris made a motion the Board adjourn. Dr. Talmadge seconded the motion, which carried unanimously.

 

 

(9:15 P.M.)

 

 

 


CHAIRMAN SECRETARY

 

 

 

 

 


DATE DATE

 

 

 

 


Recording Secretary

As Approved By Superintendent