Forest Hills board votes to close dormant scholarship accounts and transfer funds to Education Foundation of Forest Grove

The Forest Hills School District Board of Directors on April 8 approved a motion to close a series of long-dormant scholarship bank accounts and transfer the balances to the Education Foundation of Forest Grove for future management and investment.

District finance staff presented the item as a response to repeated audit findings showing multiple inactive accounts. Director Kluge, director of finance and operations, told the board the district has about 15 separate accounts—savings accounts and certificates of deposit—created more than a decade ago with little or no recent activity. Kluge said the district has not been issuing new scholarships from those accounts in recent years and now partners with the Education Foundation for scholarship administration.

The board approved a motion “to close associated bank accounts and CDs and release the described scholarship funds to the Education Foundation of Forest Grove for future management and investment.” The motion passed on a voice vote; board members present voted in the affirmative and the motion carried.

Board members and staff said the transfer will allow the foundation to invest the funds and administer scholarships on an ongoing basis, rather than leaving small, inactive accounts in the district’s books. No dollar totals for the combined accounts were provided during the meeting.

The vote followed district staff recommendations intended to address an outstanding audit comment about inactive accounts. The board did not direct additional follow-up beyond approving the transfer; staff said the foundation would manage scholarship distribution going forward.

The board moved on to other agenda items after the motion passed.