Finance staff sets audit and budget calendar; members raise state budget impasse and solvency concerns

Finance staff on Sept. 11 presented April and May treasurer's reports, an audit schedule for the 2024–25 year and a tentative budget calendar, and said the district will file its annual final financial report on Nov. 30. "We're scheduled to have our audit from October 27 to November 7," Miss Young, a finance staff member, said. "...And then, November 30, we will file our annual final financial report." She told the committee the auditors normally deliver a final report in mid-December and that staff expect to present audit findings to the full board in January or February depending on meeting dates. Miss Young also presented a tentative budget calendar and said the current projected Act 1 index is 3.5 percent. "So typically, in the fall, if the board agrees that they're not going to raise higher than that, then we would do an Act 1 resolution," she said, explaining how the resolution could eliminate a later step in the budget process. She also noted that PFM will present a bond parameters resolution at the next board meeting. Board members used the finance update to ask about the district's ability to withstand delays in state aid resulting from a state budget impasse. "Where do we stand as far as our ... Solvency?" asked Mister Lyons. Miss Young replied: "At the last meeting, we talked about approximately about a 7 month [runway] before we would start to get really concerned. So we are in September. So we're 3 months in." She said staff hoped for positive movement at the state level in the next month or two and that she would keep the board informed if an urgent issue emerged. Staff also noted a change to the financial system and said they are working to produce updated reports from the new system. A board member asked whether associated organizations without taxing authority, such as the intermediate unit (IU) and the tech school, were exposed; staff replied they did not have that information at the meeting and recommended directing those questions to the organizations themselves. No formal budget or bond actions were taken at the committee meeting; the items were presented for information and scheduling. Staff will return with the regular audit presentation and proposed budget calendar dates for board consideration.