Colonial SD finance committee reviews policy 616, budget timeline and federal/state funding risks

Finance staff member Mark opened the finance committee meeting and presented three items: (1) a revision to Policy 616 (payment of bills), (2) the district’s budget timeline and a pending Act 1 index decision, and (3) a 2025–26 budget comparison that highlights risks from the Pennsylvania state budget impasse and a federal funding slowdown.

On Policy 616, Mark said the draft policy updates Pennsylvania School Boards Association (PSBA) language to replace the role of board secretary with board treasurer for certain payment authorities. The change would allow the treasurer to advance payments to capture vendor discounts or to make approved contractor payments for projects such as roofing. Mark described existing internal controls: invoices must still flow through the appropriate department approvals and an assistant business manager and other staff must enter or approve invoices before the treasurer cuts a check. “I personally cannot enter an invoice, approve an invoice, and cut a check, as well as I cannot upload the information to the bank. There’s certain controls in place within the business environment to separate those duties,” Mark said. Mark said the policy will appear as a first read at the October board meeting and as a second read in November.

On the budget timeline, Mark said the district will follow the prior year’s cadence with four budget presentations starting in January and department and school meetings through December. He said the committee must decide whether to opt into the Act 1 index (cited at 3.5% in the transcript) at the November school board meeting. “That’ll be something for committee to give thought to over the next month and a half,” Mark said.

On revenues and federal/state funding, Mark described fiscal pressures from a lack of a Pennsylvania state budget and a federal shutdown that has delayed federal reimbursements. Mark said Title I, II, III, IV and IDEA funds are not being received on a cash basis now; the district can continue programs but is not seeing deposits. He added meal programs are funded for the next three months. “It does not affect the meal programs as they have been funded for the next 3 months,” Mark said. The finance presentation listed local revenues as strong from real estate taxes but lower transfer‑tax receipts compared with September 2024, when a large Conshohocken sale boosted receipts.

Mark reported the district’s interest expense is down due to bond refinancing, noting a reduction of about $300,000 on object 800 related to interest expense. He also said overall revenues are below prior expectations because federal and state funds are frozen: the transcript records figures described by staff as “70 almost 78% of local revenues” and separately “overall revenues are only at 64.7%,” contexts that staff connected to timing and the absence of state and federal deposits.

Committee members asked for clarifications about checks and balances on payment authority, enrollment timing for kindergarten registration, and which object codes cover professional services (object 300). Mark said kindergarten registration opens in January–February, and enrollment typically becomes clearer by the third presentation in March–April. The committee also heard that the Colonial SD Foundation raised more than $10,000 at a recent event to support families facing food insecurity; Lori McCoy and her office are working with the foundation to support families whose incomes are slightly above federal thresholds.

No formal board votes were recorded in the finance committee meeting. Staff framed the policy change as a first read and the Act 1 decision as an upcoming board decision. The finance committee will continue meetings through the budget season with presentations in January and final budget adoption scheduled to meet statutory timelines.