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Business office reports year-end balances, bond proceeds and fund trends
Summary
District business manager presented the 2021 investment report showing year-end balances, interest earned and the deposit of reimbursed bond proceeds; board discussed liquidity options for bond proceeds.
Kendra, the corporation business manager, reviewed the district’s bank comparison and investment report for calendar year 2021 and prior years. She said year-to-date interest earned in the district’s SPN banking account totaled $5,741.69 and that proceeds from the reimbursed bond issued in October had earned $2,658.67 since deposit.
Kendra reported checking and fund balances as of Dec. 31, 2021: the FCN checking account and self-insurance checking balances, First Financial checking and bond proceeds and a First Financial flex account. She stated the reimbursed bond balance as $4,793,968.27 and a First Financial checking balance of $2,861,198.11. The district’s invested CD previously at Backstate Bank had been liquidated; that CD earned $5,201.43 during its term and the $1,000,000 CD was moved into the FCN account earlier in the year.
Board members asked whether the reimbursed bond proceeds could be placed in a certificate of deposit to earn more interest; the business manager said liquidity for planned expenditures was the primary concern and recommended discussing options with the administration and the bank.
Kendra also walked the board through the School Corporation Fiscal Indicators annual report for 2020 year end in the packet: average daily membership (ADM) referenced as 2,033 students in fall 2020, revenue sources dominated by state and local tax revenue, fund balance trends over seven years and a discussion of the operations fund and education fund deficits/surpluses in 2020. She said part of the 2021 improvement in the education fund was attributable to ESSER grant reimbursements covering some salaries.
Board discussion and questions focused on liquidity, whether to invest bond proceeds, and clarifications about per-student grant amounts and the composition of deposits and expenditures across bank accounts. The board did not take additional action on investment placement at the meeting; staff were asked to continue discussions with the district’s banker.
Kendra provided detailed figures in the meeting packet for board review.
