Board hears budget update, approves 2025–26 audit contract and tables procurement-card policy

Finance staff updated the board on the district’s fiscal status and audits and recommended board action on contracting and procurement policy.

Mr. Nolan reported the district is about two-thirds through the fiscal year and presented expenditure rates: state funds at 68.54% spent, local funds at 69% and federal funds at 54.2% (federal funds can be rolled forward). He said the 2024–25 audit was accepted by the Local Government Commission and that recent federal appropriations (PL1975) should maintain most PRC grant funding.

The board approved an audit contract with Anderson Smith & White PLC for the 2025–26 audit, with a total not to exceed $65,550. The cost represented a modest increase from the prior year and was approved by voice vote.

Separately, finance staff presented a draft procurement-card policy and related training materials outlining permitted uses, card limits ($500 per transaction, $2,500 monthly), prohibited purchases and reconciliation procedures. Board members identified typographical errors, references to other counties that must be corrected, and asked for attorney review of liability language; the superintendent recommended tabling the item for further revision and attorney review, and the board voted to table the policy.

Why it matters: Audit approval and procurement rules govern fiscal controls. The procurement-card policy sets spending limits, reconciliation expectations and potential employee liability for unauthorized purchases; board members asked for stronger language and attorney review before adoption.

Next steps: Finance will forward the procurement-card draft to the district attorney for review, correct typographical errors and return the policy for board consideration at a future meeting.