Carter County schools move $2.86 million in budget amendments tied to FEMA, insurance and repairs

Carter County school officials reported adjustments totaling $2,864,549.54 to district accounts to pay for emergency repairs, consultant and adjuster fees, temporary relocation costs and project management, and said the district expects much of the spending to be reimbursed by FEMA or state sources.

The amendments move money from fund balance into specific purchase orders and expense accounts so vendors and contractors can be paid as work proceeds. "So what'll happen is this amendment, of course, is moving it from fund balance into these accounts to pay this whenever we know we're not gonna pay them anything, I'll close those POs. That money will then roll back into your fund balance, okay, at the end of the fiscal year for next year because we'll be carrying it over," a staff member said during the meeting.

Officials said FEMA reimbursement rates vary by item: some costs are reimbursed at 100%, others at 90% or 75%. The presenter said the district used a 90% average as an estimate because exact reimbursement rates are not yet certain. "Luckily, some of most of our larger things are a 100 or 90. So that's where we come up with the reimbursable part. That is an estimate because we just we just averaged out 90% across the board," the staff member said.

The package includes a variety of line items: purchases for fencing and accessible facilities; tables, chairs and room-dividing equipment for classrooms; consultant and insurance-adjuster fees (including a purchase order created for $250,000 to cover an adjuster); carpet cleaning, moving and masking costs for temporary locations; environmental testing and cleanup at Hampton; removal and cleaning of AmeriGas tanks; paint and gravel to create a student parking area; architect fees and construction POs for roofing projects at Happy Valley High School and Happy Valley Middle School; evaluation and testing; and a project manager for Hanson High School.

On the buses and vans line item, officials said some bus and van purchases are questionable for FEMA reimbursement. "We're not getting reimbursed for that. We're just paying that to finish that project," the presenter said of a portion of those vehicle costs.

District staff said one large payment expected this month from contractor JE Green related to Hunter will reduce the outstanding estimated amount once it is billed. The presenter gave that expected bill as a separate estimated reduction to the overall figure and said the district must have the budgeted money available when that bill arrives.

Officials also said some previously approved POs exist for the roofing projects and that those project costs are expected to be 100% reimbursable. The presenter said auditors recommended obtaining a PO for an estimated project manager cost tied to Hanson High School and indicated that cost will be fully reimbursed.

Board members and staff asked for clarification on individual line items during the discussion. The presenter reiterated that if the district does not ultimately pay a PO, the district will close the PO and return the funds to fund balance at fiscal year end.

The district also reported it is coordinating with state officials on mitigation funds and said some projects are contingent on state funding arriving to allow work to proceed. "We're still working with the state as far as the state funds to come in to kind of upfront that cost for us," the presenter said, noting the district was told state approval could arrive by July 1.

The board received the finance update and proceeded to other agenda items; no formal vote outcomes were recorded in the meeting transcript for the amendments discussed.

Ending

District staff said they will continue to monitor reimbursements, close unused POs and report back to the board as invoices and reimbursements are finalized.