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Board hears finance update, cash‑sweep details and discusses investment advisor options
Summary
District finance staff reviewed cash balances, a monthly cash sweep of about $512,000, and options to move surplus into Treasury instruments; board members discussed choosing advisors Morton (school experience) or UBS and raised fiduciary and legal compliance concerns.
S1, the district finance staff member, told the board the monthly financial reports will match last monthand that an audited cash balance has not yet been finalized: "We still haven't received our audited cash balance...it's marked unread in my folder," S1 said. S1 said the district is using a cash sweep to remain within FDIC coverage and reported that roughly $512,000 of receipts move through the sweep each month.
S1 proposed evaluating U.S. Treasuries and similar fixed investments for larger, unencumbered local revenue balances (S1 referenced "another 6,000,000 in our in 1 bank account") to earn higher fixed rates than variable cash‑sweep returns. Board members questioned timing and payroll posting differences that cause apparent operational variances; S1 explained those variances reflect payroll and liability posting dates.
The board discussed advisor options. S1 and S4 referenced conversations with UBS and Morton; S4 said Morton has school‑finance experience and local references that reduce perceived risk. Concerns about compliance and fiduciary responsibility were raised and the board discussed inviting both firms to present an options briefing before any commitment.
The transcript uses the term "SB9" (lowercase in the record) when discussing bond/cash accounts; staff said SB9 cash was "close to 1,000,000" and a broader bond figure of $23,000,000 was mentioned. The board did not make a formal investment decision in the provided segments; staff were directed to return with more details and presentations.
