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Buckeye Valley Board approves $129,659 transfer to severance fund, adopts temporary year‑end appropriations
Summary
The Buckeye Valley Board of Education approved temporary fiscal-year documents and a $129,659 transfer from the general fund to a severance liability fund to cover potential retiree payouts, after a staff explanation and brief questions about accounting treatment.
The Buckeye Valley Board of Education approved temporary year‑end financial documents and a $129,659 transfer from the general fund into a district severance liability fund during its June meeting.
A district finance staff member told the board the temporary appropriations and updated estimated resources provide authority from July through September while the board finalizes fiscal 2026 appropriations. The staff member said the transfer moves money into a segregated fund that the district maintains in case multiple employees retire at once.
The staff member described the severance fund as a multi‑year practice. "About probably about 5 or 6 years ago, I created a severance liability fund," the staff member said. "When my books get audited every year… they tell me that if, potentially, if everyone that could retire does retire this year, this is what you'd be paying out in severance. So I create a separate fund, and every year I transfer the difference from what's in the fund to what needs to be in the fund." The staff member added the money in the fund is available when retiring employees are due severance payments.
Board members asked whether the segregated severance money counts toward the district's cash balance. The staff member replied that the funds are transferred out of the general fund and therefore do not count toward the general fund cash balance.
A motion to approve the transfer of $129,659 from the general fund to the severance fund passed on a roll call vote. Board members recorded as voting in the affirmative included Elgwene, Vicky, Jeffrey, Deborah and Scott. The district approved the temporary appropriations for the start of the fiscal year to allow time for final appropriations later this summer.
The board approved the item as part of routine year‑end financial housekeeping; the staff member said the practice of maintaining and adjusting the severance liability fund occurs annually as part of the district's audited accounting process.
The board proceeded to other consent agenda items and then adjourned the meeting.
