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School board approves permanent cash transfers; finance staff report $361,000 reverted to state for unspent grant funds
Summary
Central Consolidated Schools approved a permanent cash transfer form required by the Public Education Department; staff reported $361,000 in unspent Family Income Index grant money will revert to the state, prompting board discussion about oversight and year-round grant management.
The Central Consolidated Schools Board approved a permanent cash transfer form required by the New Mexico Public Education Department (PED) that moves funds between operating and grant accounts as part of year-end financial cleanup.
Dominic Cetaney, the district's director of finance, described the form and said one line item in particular would revert unspent money back to the state: "we are transferring $361,000 back to the state," he said, referring to a Family Income Index grant. Board members pressed staff on why so much money went unspent and on changes to prevent future reversion.
Why it matters: When grant funds are "use or lose" within the fiscal year, failing to spend them can mean the district returns money that could have funded services or materials. The amount cited by staff triggered concern from board members about grant oversight, planning and coordination between finance and program coordinators.
Details and board discussion: Cetaney said many of the transfers reflect general ledger cleanup and that some smaller lines show cents and dollar-and-cent amounts (for example, $7.55 and $3.97 appeared on transfers). He explained that the Family Income Index funds are specific to certain schools and cannot be carried forward this year; next year the district will receive that funding centrally and will plan district-wide spending. Board members asked whether the grants carry usage parameters and whether the district has sufficient grant-management processes. Cetaney said there are parameters from the state and pledged the finance department would meet quarterly with grant coordinators to monitor budgets and reduce year-end reversion.
Action taken: The board moved, seconded and approved the permanent cash transfer form. During discussion several board members urged improved oversight and encouraged staff to provide detailed follow-up on unspent grant balances.
Clarifying details reported in the meeting: the Family Income Index grant reversion of $361,000 was singled out by staff as a significant unspent amount; other small line items on the permanent cash transfer form included examples of $7.55 and $3.97; staff said some transfers represent overspending of grants covered by operating funds and, conversely, some grant excesses are moved back into operations or to other grants to provide budget authority.
Key quote: "We are transferring $361,000 back to the state," Dominic Cetaney said.
Follow-up requested by board members included a more detailed breakdown of what was spent or left at the school level and a commitment from finance to implement regular meetings with grant coordinators to prevent future reversion of funds.
