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Board hears finance update: $3.5M CD, roughly $167,000 interest and $4.5M projected carryover
Summary
District staff reported a matured certificate of deposit that produced approximately $167,000 in interest, approval plans to encumber funds for HVAC, parking lot work and technology, and ongoing negotiation with the state on amended federal grant allowables.
Bethany Public Schools finance staff told the board the district’s investment strategy produced significantly higher interest than a year ago and that the district’s projected carryover is above initial targets.
A district finance staff member said the district placed about $3.5 million into a certificate of deposit (CD) earning 4.8% and that, when the CD matured, the district posted roughly $167,000 in interest earnings. The staff member said the CD was renewed at a similar rate. “We put, about $3,500,000 in a CD earning a 4.8% interest rate… we are showing right now with all that interest, the CD just matured. We have interest earnings of a hundred and 60 7 thousand,” the staff member said during the financial report.
The board was told the district’s projected carryover is about $4.5 million; the finance staff’s goal is to hold roughly $4.0 million as a strategic target. The staff outlined near-term planned encumbrances and purchases that would draw down carryover, including purchase orders for HVAC units (from a recent RFP), resurfacing or repair of a west-side parking lot, and technology purchases. The staff also said district leaders are considering a retention stipend similar to one issued last July if budget allowances permit.
Officials updated the board on federal funding and an amended consolidated application for multiple federal programs (the speaker listed program codes verbally as 4210, 511, 518, 4271 and 4442). Staff said the state reviewer returned the district’s amended budget citing items as unallowable even though the reviewer’s own allowables list showed the items as allowable; the district has continued correspondence with the state to resolve the discrepancy. District staff said collections for some federal program lines are delayed but anticipated before the start of the next fiscal year.
During discussion, a board member praised a staff member’s work negotiating the CD rate, saying the improved return was the result of stronger vendor negotiation.
The finance report noted the activity fund ending balance and that the district is closing out invoices as the fiscal year ends. Staff said general fund tracking currently shows a large encumbrance balance to be cleared before year-end and that they will bring monthly updates to the board until the close of the fiscal year.
