Treasurer flags negative fund balances; board approves consolidated financial report

Missus Luca, the district treasurer, presented a consolidated financial report and told the Maple Heights City Schools Board of Education that certain funds showed negative balances that need follow-up. The board approved the financial report as presented by unanimous roll call.

Luca said the new report groups statements into one consolidated view and includes a fund-balance report intended to “give a more accurate picture of all the funds in the district.” She identified two funds by internal code that showed negative balances — referenced in the meeting as “003” and “300” — and said she would investigate them further. “The 003 I’ll look into; the 300 is due to the fact that the athletic fund is gonna be in need of a transfer to cover their expenses,” Luca said.

The treasurer told the board that several other negative balances reflect the timing rules for federal grants. “You cannot draw down ahead of time,” Luca said. “You have to spend the money first and then draw down the money, which is counterintuitive to a negative fund balance.” She said the district typically carries those accounts temporarily negative and then draws down federal reimbursements to replace spent funds.

Board members asked for more detailed breakout reports so they could see which subaccounts and cost centers feed the consolidated numbers. One board member suggested providing both the summary and a detailed activity report so members could identify, for example, specific 902-type or other coded funds within a summarized line item. Luca agreed she could provide a more detailed breakout in future reports.

Board members also raised an older negative balance that the treasurer said had been carried forward for several years. “That was carried over, like, three years now,” Luca said, and she identified the originating school as JFK. She said the district would work with the JFK principal to develop a plan to resolve that deficit and indicated a general-fund transfer may be required if other school-level funds are insufficient.

A motion to approve the consolidated financial report as presented was moved and seconded. Roll call votes recorded by the board were: Miss Moore — yes; Miss Cheeks — yes; Miss Granger — yes; Miss Shepherd — yes; Mister Blackwell — yes. The motion carried and the report was approved.

Luca said she will start preparing monthly PCRs (periodic cost reports) and will follow up with staff on timely drawdowns to reduce the size of negative balances resulting from grant timing.