Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the District Finance topic
No spam. Unsubscribe anytime.
MCCSC finance officer reports no signs of DUAB distress but flags headwinds including declining enrollment
Summary
The district’s investing officer and treasurer presented the annual investment and financial-condition reports, showing no signs of financial distress through Dec. 31, 2023, while projecting caution for 2024 due to declining enrollment, referendum effects and rising medical costs.
John Kenny, treasurer and investing officer for the Monroe County Community School Corporation, presented the annual investing officer’s report and the district’s financial condition review to the Board of Finance during the corporation’s annual meeting.
Kenny said the district invested funds at Matrix Trust Company (for VEBA accounts), Old National Bank (checking and savings) and Old National Wealth Management (investments beyond checking and savings). He noted December statements for Matrix Trust were not available and that November 2024 amounts were presented for those trust holdings.
Kenny summarized interest income and the district’s investment strategy. He said interest income received from Old National Bank accounts totaled $458,000 for 2022 and that “interest investment income for 2024 totaled $1,000,989.” He attributed higher investment income to a strategy of keeping some district dollars invested at higher rates using sweep accounts, negotiated rates and treasury bills held through Old National Wealth Management.
Kenny also presented the Distressed Unit Appeals Board, or DUAB, fiscal indicators and a district ‘dashboard’ that covers data through Dec. 31, 2023. He said, “The MCCSC shows no signs of financial distress as of December 31, 2023.” The DUAB slides included average daily membership (ADM) trends, demographics (free and reduced lunch, special education and English-learner services), fund balances and revenues by type. ADM declined beginning in fall 2020 and has held at the lower level through fall 2024, Kenny said.
Kenny and the district’s financial advisors at Baker Tilly also provided a 2024 projection in a stoplight format: green indicates solid, yellow indicates caution and red indicates concern. For 2023 the district’s dashboard showed ADM as yellow, fund balances green and surplus/deficit yellow. The 2024 projection moved several items from green to yellow: fund balances, fund balances as a percent of expenditures and surplus/deficit. Revenue by type remained green and additional indicators such as net assessed value, tax rate and circuit breaker losses remained green.
Kenny listed near-term headwinds to the district’s finances: declining enrollment since 2019, expenditures exceeding revenues in the education and operations funds, property-tax caps affecting referendum funds, potential legislative changes in the upcoming session and year-over-year increases in medical-plan expenses.
The Board of Finance reviewed the written investment policy, the DUAB dashboard and the financial-condition presentation; no board action was taken beyond review. The Board of Finance meeting was then adjourned and the board proceeded to the annual reorganizational meeting.
